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15600.0
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2023-05-31 00:00:00 UTC
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Should Invesco QQQ (QQQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-qqq-qqq-be-on-your-investing-radar-7
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
The fund is sponsored by Invesco. It has amassed assets over $187.66 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
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%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.62%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 51% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.56% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 55.16% of total assets under management.
Performance and Risk
QQQ seeks to match the performance of the NASDAQ-100 Index before fees and expenses. The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
The ETF return is roughly 31.61% so far this year and is up about 13.93% in the last one year (as of 05/31/2023). In the past 52-week period, it has traded between $260.10 and $349.98.
The ETF has a beta of 1.11 and standard deviation of 25.07% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco QQQ 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, QQQ is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. While iShares Russell 1000 Growth ETF has $66.76 billion in assets, Vanguard Growth ETF has $87.31 billion. IWF has an expense ratio of 0.18% and VUG charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco QQQ (QQQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares Russell 1000 Growth ETF (IWF): 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, Microsoft Corp (MSFT) accounts for about 12.56% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $187.66 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.56% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.56% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). While iShares Russell 1000 Growth ETF has $66.76 billion in assets, Vanguard Growth ETF has $87.31 billion.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.56% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
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15601.0
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2023-05-31 00:00:00 UTC
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3 Best Stocks to Buy That Will Get You Through the Day
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AAPL
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https://www.nasdaq.com/articles/3-best-stocks-to-buy-that-will-get-you-through-the-day
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Most investors have heard the advice “buy what you know.” In fact, some in the industry have been recommending this investing style for years. I call it “everyday investing.”
When selecting the best stocks to buy, it’s fair to say familiarity with the companies you own is a wise strategy. But you can’t just pick companies that make products and services you use and expect to do well. Rather, you want to consider whether the companies behind them actually make money.
For instance, who among us hasn’t taken an Uber (NYSE:UBER)? Yet, the company has never turned a profit and is trading 10% below where it went public in 2019.
However, if you shop at Amazon (NASDAQ:AMZN) (and can look past how it treats its workers), buying shares makes tremendous sense. The e-commerce powerhouse generated nearly $12.2 billion in operating income last year and its share price is up 815% over the past decade.
Each of the names on today’s list of the best stocks to buy are companies whose products and services I use on a daily basis.
SBUX Starbucks $97.75
AAPL Apple $177.30
GOOGL Alphabet $123.67
Starbucks (SBUX)
Source: Natee Meepian / Shutterstock.com
Most mornings, I walk three to four miles before starting my workday around 8 a.m. I always stop at my local Starbucks (NASDAQ:SBUX) for a Venti Americano and a quick check of my emails. In one way or another, Starbucks has been a part of my daily life since the early 1990s.
Because I mostly own ETFs to avoid potential conflicts of interest — not to mention it’s much easier to manage ETF portfolios than 20 or 30 stock positions — I’ve never actually held SBUX.
That’s my loss, for sure.
I’ve been working for 37 years. That’s so long that Starbucks hadn’t even gone public when I first started in the business world. The company’s initial public offering happened in June 1992, selling shares for $17. It raised a whopping $29 million in its IPO and the rest, as they say, is history.
In its 31-year history as a public company, its stock has split 2-for-1 six times, the first in 1993 and the last in April 2015. So, if you bought 100 shares in its IPO for $1,700, you’d have 6,400 shares worth $625,600 today, a compound annual growth rate (CAGR) of 21%. A CAGR of half that amount would be good. No wonder why Howard Schultz is a billionaire.
What I’ve learned about Starbucks over the years is that it always rebounds from adversity. In recent years, this has included labor disputes and Covid-19-related lockdowns in the United States and China, its two major markets. In the latest quarter, U.S. same-store sales grew 12%, while they rose 3% in China, the first positive quarter since fiscal Q3 2021.
Apple (AAPL)
Source: mama_mia / Shutterstock.com
Full disclosure: I own an iPhone, two iPads, an Airbook, a Mac desktop and a pair of AirPods. You could say I like Apple’s (NASDAQ:AAPL) products. However, the company’s services have contributed to its above-average growth in recent years.
In early May, Apple reported its fiscal Q2 2023 results. Investors expected a dud of a quarter. Instead, it delivered revenue and earnings that beat analyst estimates. On the top line, it generated $94.8 billion, $1.9 billion higher than the consensus, while earnings per share of $1.52 were 9 cents higher than expectations.
Apple’s Services business generated a record $20.9 billion in revenue, up 5.5% year over year. It includes Apple TV+, Apple Music and Apple Arcade and is the company’s highest-margin business segment.
“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” Apple Chief Executive Officer (CEO) Tim Cook said in the company’s press release.
Of the 40 analysts covering AAPL stock, 30 rate it “overweight” or “buy,” with a median target price of $183.43, which is 3.5% above its current share price.
On May 23, the company announced a multiyear agreement with Broadcom (NASDAQ:AVGO) to develop 5G components that will allow it to develop more advanced products with American-made components, part of Apple’s commitment to invest $430 billion in the U.S. economy over five years.
Apple is Warren Buffett’s largest equity position by a country mile for a reason.
Alphabet (GOOGL)
Source: Koshiro K / Shutterstock.com
As a freelance writer, Google Drive is my savior. I use it eight to nine hours each workday for article writing, billing, etc. I’m sure many of my InvestorPlace colleagues feel the same.
As the parent company of Google, Alphabet (NASDAQ:GOOGL) has spent the last few years working on building revenue streams other than Google Search. It’s had middling success doing so.
In 2022, Alphabet had revenue of $283 billion. Of that, Google advertising accounted for 79%. That’s broken down into three revenue streams: Google Search (72% of Google advertising), YouTube ads (13%) and Google Network (15%). The remaining revenue is split between Google Cloud (nearly 10% overall) and other (a little more than 10%), which includes Google Play, Fitbit, Google Nest, Pixel devices, YouTube Premium and YouTube TV.
I can see from the paragraph above, and knowing how I benefit from Alphabet, the dilemma faced by the company. It generates revenue from me from Google Cloud and Google Workspace, and indirectly through Google Search. But, on the other hand, I don’t spend much time on YouTube, don’t use Google Play, or own any Fitbit or Nest products.
So, how does it grow when other companies such as Meta Platforms (NASDAQ:META), Amazon and Apple are nibbling on its ad business? That’s the million-dollar question.
However, with the company generating more than $60 billion in free cash flow a year, it has the luxury to think further out.
That’s probably one reason Bill Ackman’s Pershing Square Holdings took a $1 billion position in May.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post 3 Best Stocks to Buy That Will Get You Through the Day 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: mama_mia / Shutterstock.com Full disclosure: I own an iPhone, two iPads, an Airbook, a Mac desktop and a pair of AirPods. SBUX Starbucks $97.75 AAPL Apple $177.30 GOOGL Alphabet $123.67 Starbucks (SBUX) Source: Natee Meepian / Shutterstock.com Most mornings, I walk three to four miles before starting my workday around 8 a.m. You could say I like Apple’s (NASDAQ:AAPL) products.
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SBUX Starbucks $97.75 AAPL Apple $177.30 GOOGL Alphabet $123.67 Starbucks (SBUX) Source: Natee Meepian / Shutterstock.com Most mornings, I walk three to four miles before starting my workday around 8 a.m. Apple (AAPL) Source: mama_mia / Shutterstock.com Full disclosure: I own an iPhone, two iPads, an Airbook, a Mac desktop and a pair of AirPods. You could say I like Apple’s (NASDAQ:AAPL) products.
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SBUX Starbucks $97.75 AAPL Apple $177.30 GOOGL Alphabet $123.67 Starbucks (SBUX) Source: Natee Meepian / Shutterstock.com Most mornings, I walk three to four miles before starting my workday around 8 a.m. Apple (AAPL) Source: mama_mia / Shutterstock.com Full disclosure: I own an iPhone, two iPads, an Airbook, a Mac desktop and a pair of AirPods. You could say I like Apple’s (NASDAQ:AAPL) products.
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SBUX Starbucks $97.75 AAPL Apple $177.30 GOOGL Alphabet $123.67 Starbucks (SBUX) Source: Natee Meepian / Shutterstock.com Most mornings, I walk three to four miles before starting my workday around 8 a.m. Apple (AAPL) Source: mama_mia / Shutterstock.com Full disclosure: I own an iPhone, two iPads, an Airbook, a Mac desktop and a pair of AirPods. You could say I like Apple’s (NASDAQ:AAPL) products.
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15602.0
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2023-05-31 00:00:00 UTC
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This Warren Buffett Stock Has a Challenging Road Ahead. Here's Why It's Still a Buy.
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-stock-has-a-challenging-road-ahead.-heres-why-its-still-a-buy.
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nan
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nan
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Investing sage Warren Buffett spent decades investing in sectors such as financial services and industrials. On the surface, having limited exposure to high-growth, flashy technology companies seemed counterintuitive. However, Buffett's investing style has always revolved around cash-flowing businesses. In other words, what good is a company that grows its top line by 50% (or more) if it can't turn a profit?
Well, in 2016 the Oracle of Omaha made a surprising move when he initiated a position in Apple (NASDAQ: AAPL). Over the last several years, Buffett has built such a large position in the company that Apple is now his top holding.
Let's dig into Apple's business and analyze why the traditionally tech-shy Buffett has evolved into a cheerleader for the iPhone maker.
The company's performance is compelling
Apple recently reported earnings for its fiscal 2023 second quarter ended April 1. At first glance, the financial results look somewhat concerning. While the company reported total revenue of $94.8 billion, and reached an all-time record in services revenue and set a March quarter record for iPhone sales, the top line was still down 3% year over year.
Fortunately for investors, Apple breaks out its revenue by product type. For the March quarter, Apple's sales were down for Mac computers, iPads, and wearables devices. During theearnings call management explained that foreign exchange headwinds coupled with macroeconomic volatility contributed to the decline in these hardware categories.
Although investors may be concerned about Apple's growth, it's important to step back and take into account the number of variables at play here. And while Apple produces some of the best products and services on the market, there are less expensive alternatives. Given that inflation is still a big concern for the average consumer, it's not entirely surprising to see some lumpiness in quarter-to-quarter performance.
Image source: Getty Images.
Cash flow is king
Despite Apple's revenue decline, the company's ability to generate profits is astounding. For the quarter ended April 1, Apple reported net income of $24.2 billion, down slightly from the comparable period last year. However, Apple's diluted earnings per share of $1.52 was flat year over year.
As a shareholder, I think it's impressive that even in a declining growth environment, Apple still generates tens of billions of dollars in profits in just one quarter. Furthermore, even during challenging economic times, Apple has found ways to deploy these profits creatively.
During theearnings call investors learned that Apple's board of directors approved a $90 billion share repurchase program. If that weren't compelling enough, Apple also increased its dividend for the 11th year in a row.
Think about this for a minute: Apple's revenue declined year over year and profits were down nominally. And yet, even in a cloudy near-term macroeconomic environment, Apple's management is taking a long-term approach to the business and rewarding investors in the process.
The stock looks like a great buy
At the time of this writing, Apple trades at nearly 28 times its trailing price to earnings (P/E). For context, the long-run average of the S&P 500 is about 15 times P/E. This is an interesting dynamic in that even during a time of declining growth, the capital markets are assigning a premium to Apple stock over the long-run broader market average. Furthermore, Apple is not a growth stock, so it's highly unlikely that investors are buying up the stock in anticipation of high future growth prospects.
Sure, Apple is one of the most innovative companies of all time. It's certainly possible that a new product will hit the market and consumers will flock to buy it. But in my estimation, there's a low probability of that happening.
Apple is one of the pillars of blue chip investments. It's one of those unique companies that is really hard to make a bear case for. There is never a perfect time to buy a stock. Despite Apple trading at a near 52-week high, long-term investors can't really go wrong scooping up some shares.
The long-term road ahead is what should matter most to investors. Perhaps the reason why investors, including Buffett, continue to accumulate shares in Apple is because of its proven ability to generate steady profits and cash flow, and its history of rewarding shareholders. At a time when investors are looking for safe alternatives to high-flying tech stocks or other questionable investments, Apple is as good an opportunity as any despite its quarterly ups and downs.
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 22, 2023
Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Well, in 2016 the Oracle of Omaha made a surprising move when he initiated a position in Apple (NASDAQ: AAPL). During theearnings call management explained that foreign exchange headwinds coupled with macroeconomic volatility contributed to the decline in these hardware categories. Perhaps the reason why investors, including Buffett, continue to accumulate shares in Apple is because of its proven ability to generate steady profits and cash flow, and its history of rewarding shareholders.
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Well, in 2016 the Oracle of Omaha made a surprising move when he initiated a position in Apple (NASDAQ: AAPL). While the company reported total revenue of $94.8 billion, and reached an all-time record in services revenue and set a March quarter record for iPhone sales, the top line was still down 3% year over year. Cash flow is king Despite Apple's revenue decline, the company's ability to generate profits is astounding.
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Well, in 2016 the Oracle of Omaha made a surprising move when he initiated a position in Apple (NASDAQ: AAPL). This is an interesting dynamic in that even during a time of declining growth, the capital markets are assigning a premium to Apple stock over the long-run broader market average. Furthermore, Apple is not a growth stock, so it's highly unlikely that investors are buying up the stock in anticipation of high future growth prospects.
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Well, in 2016 the Oracle of Omaha made a surprising move when he initiated a position in Apple (NASDAQ: AAPL). While the company reported total revenue of $94.8 billion, and reached an all-time record in services revenue and set a March quarter record for iPhone sales, the top line was still down 3% year over year. There is never a perfect time to buy a stock.
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15603.0
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2023-05-31 00:00:00 UTC
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Apple, Alphabet, Meta, and Microsoft Have All Done Major Share Buybacks This Year -- Should You Join Them?
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AAPL
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https://www.nasdaq.com/articles/apple-alphabet-meta-and-microsoft-have-all-done-major-share-buybacks-this-year-should-you
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nan
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nan
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When a company is highly profitable, it sometimes accumulates a pile of cash so large that it can't effectively reinvest it in the business. Therefore, it chooses to return money to shareholders instead.
It can do so by paying a cash dividend or initiating a share repurchase (buyback) program. A buyback involves the company taking a sum of money (usually approved by its board of directors) and buying its own shares in the open market, just like any other investor. This shrinks the number of shares in circulation, organically increasing its price per share.
Here's how it works
If a company has 1 billion shares in circulation and trades at a price of $100 per share, it is worth $100 billion. If it spends $10 billion repurchasing its own stock, it could buy 100 million shares, reducing its share count to 900 million.
But that doesn't change the underlying value of its business. Therefore, to maintain a $100 billion market capitalization, its stock price must organically rise to $111.11 to compensate for the smaller number of shares in circulation.
Every remaining investor is now better off because of the higher stock price.
Image source: Getty Images.
The largest technology companies in the world have done buybacks in 2023
Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are all highly profitable companies, and they've each spent billions of dollars buying back their own shares this year.
Here's how much they allocated to buybacks in the recent quarter alone:
Apple spent $19.6 billion on buybacks in its fiscal 2023 third quarter (ended April 1), equivalent to about 0.7% of its outstanding shares. Apple's board of directors also authorized a brand-new $90 billion buyback program.
Microsoft spent $4.9 billion on buybacks in its fiscal 2023 third quarter (ended March 31), which was equivalent to about 0.2% of its outstanding shares. The company refreshes its buyback program every three years; it last authorized $60 billion in fiscal 2022, so this current program will end in fiscal 2025.
Meta Platforms spent $9.2 billion on buybacks in the first quarter of 2023 (ended March 31), equivalent to about 1.7% of its outstanding shares. It has $41.3 billion remaining under its existing program.
Alphabet spent $14.5 billion on buybacks in the first quarter of 2023 (ended March 31), equivalent to about 1.1% of its outstanding shares. The company also authorized a brand-new program worth $70 billion.
Buybacks alone aren't a reason for investors to rush into a particular stock, but they are an added bonus. Famed investor Warren Buffett is a big fan of them; his Berkshire Hathaway investment company holds nearly 50 stocks and financial securities worth $333 billion, yet just one stock -- Apple -- makes up a whopping 47.5% of the entire portfolio.
Buybacks are one of his favorite reasons to own Apple. In Berkshire's 2020 shareholder letter, Buffett commented that despite selling $11 billion worth of Apple stock that year, the firm's stake in the company had grown to 5.4% over time -- higher than it was (5.2%) when it originally accumulated the position from 2016 to 2018.
How? Because every time Apple repurchases its stock, the remaining investors are left with a larger share of a shrinking pie (the pie being the number of shares in circulation).
Here's why you should buy Apple, Microsoft, Meta, and Alphabet
Apple is the world's largest company today, with a value of $2.7 trillion. It has a strong product portfolio featuring the iPhone, iPad, AirPods wireless headphones, and the Mac line of computers and notebooks. But its services segment, which earns subscription-based revenue from platforms like Apple Music and Apple News, continues to be its main growth driver. When the broader economy bounces back from this difficult period, its hardware sales should find renewed strength.
Microsoft, Meta, and Alphabet are also rapidly progressing in a brand-new area: artificial intelligence (AI).
Microsoft has invested in ChatGPT creator OpenAI this year and is integrating the chatbot into its product portfolio. It now powers Microsoft's Bing search engine, which could revolutionize how consumers access information on the internet. And customers of Microsoft's Azure cloud services platform can access the latest GPT-4 large language model, meaning the company could soon be a primary distributor of the most advanced AI tools to millions of businesses worldwide.
Alphabet is building its own large language models for its Google search engine to fend off the growing threat from Microsoft Bing. Additionally, it's delivering proprietary AI solutions to its customers via the cloud.
Finally, Meta is rapidly developing AI algorithms to more accurately feed content to users on its Instagram and Facebook social media platforms. Thanks to those efforts, the company saw a 24% year-over-year increase in the time users spent on Instagram in Q1 and much higher monetization efficiency.
Overall, buybacks are just one reason to own a stake in these four companies -- and investors should certainly consider doing so.
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
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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The largest technology companies in the world have done buybacks in 2023 Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are all highly profitable companies, and they've each spent billions of dollars buying back their own shares this year. In Berkshire's 2020 shareholder letter, Buffett commented that despite selling $11 billion worth of Apple stock that year, the firm's stake in the company had grown to 5.4% over time -- higher than it was (5.2%) when it originally accumulated the position from 2016 to 2018. And customers of Microsoft's Azure cloud services platform can access the latest GPT-4 large language model, meaning the company could soon be a primary distributor of the most advanced AI tools to millions of businesses worldwide.
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The largest technology companies in the world have done buybacks in 2023 Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are all highly profitable companies, and they've each spent billions of dollars buying back their own shares this year. Here's why you should buy Apple, Microsoft, Meta, and Alphabet Apple is the world's largest company today, with a value of $2.7 trillion. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft.
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The largest technology companies in the world have done buybacks in 2023 Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are all highly profitable companies, and they've each spent billions of dollars buying back their own shares this year. Here's how much they allocated to buybacks in the recent quarter alone: Apple spent $19.6 billion on buybacks in its fiscal 2023 third quarter (ended April 1), equivalent to about 0.7% of its outstanding shares. Famed investor Warren Buffett is a big fan of them; his Berkshire Hathaway investment company holds nearly 50 stocks and financial securities worth $333 billion, yet just one stock -- Apple -- makes up a whopping 47.5% of the entire portfolio.
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The largest technology companies in the world have done buybacks in 2023 Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are all highly profitable companies, and they've each spent billions of dollars buying back their own shares this year. Every remaining investor is now better off because of the higher stock price. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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2023-05-31 00:00:00 UTC
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Nvidia Crossed a $1 Trillion Valuation -- How Overvalued Is This AI Stock?
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AAPL
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https://www.nasdaq.com/articles/nvidia-crossed-a-%241-trillion-valuation-how-overvalued-is-this-ai-stock
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How does Nvidia's (NASDAQ: NVDA) valuation compare to the other companies in the trillion-dollar club? Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of May 30, 2023. The video was published on May 30, 2023.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 30, 2023
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. Jose Najarro has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jose Najarro has positions in Alphabet, Microsoft, and Nvidia.
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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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia.
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Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *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. Jose Najarro has positions in Alphabet, Microsoft, and Nvidia.
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2023-05-30 00:00:00 UTC
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The 25 Best Growth Stocks for the Next 5 Years
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https://www.nasdaq.com/articles/the-25-best-growth-stocks-for-the-next-5-years
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking for the best growth stocks to buy will take much more scrutiny in the current market environment. I wrote a column on Dec. 31, 2022 about 25 tech stocks to “buy before they take off in 2023.” Almost all of them have rallied and are up substantially since they changed hands for peanuts back then. However, the situation now is very different after the rally this year, and most growth stocks do not provide compelling entry points.
This does not mean that investors should shun all growth names. There are still high-quality growth stocks with excellent long-term potential, and jumping on board is a good idea no matter the market conditions. Of course, one may say there are risks of a recession, a debt default, etc. But there will always be some hubbub, and it’s not the best idea to always put too much thought into the worst-case scenarios.
For example, investors who feared the worst in the summer of 2022 and closed their positions on a loss likely regret that decision now. No one has a crystal ball, and trying to avoid near-term losses will likely lead to losing out on future gains. That’s why most well-respected investors have made their fortunes through time in the market, not timing. Naturally, blindly buying does not apply to all growth stocks, and I will not include stocks with price targets too low from the current price point.
That said, let’s look at the 25 best growth stocks to buy for the next five years in no particular order:
Alphabet (GOOG, GOOGL)
Source: salarko / Shutterstock.com
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has repeatedly proven that it can continue competing in all sectors and catch up with new trends. The ad market slowdown since mid-2022 and then OpenAI’s ChatGPT integration with Bing caused panic about Google’s future, and the company did make a blunder by rushing Bard.
However, it has since improved on Bard, and the chatbot is now a serious contender to ChatGPT. It is trained on a larger dataset and can theoretically perform more tasks.
In addition, the initial hype surrounding Bing seems to be nothing more than a fad. Google’s search engine market share has only grown while Bing’s has declined.
Alphabet’s ad revenue still lags behind but that will eventually recover in the long run. Thus, I see GOOG as a strong buy at this level.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Things are only looking up for Microsoft (NASDAQ:MSFT) as the company fires on all cylinders. Microsoft is chipping away at the businesses of other tech giants and is looking to expand and threaten others. For example, Azure has grown to become a major AWS competitor, while Bing has kept Google tense. It is also spearheading development in AI with its investments in OpenAI.
Microsoft is also investing massively in quantum computing, gaming and mixed reality, all of which are high-growth segments that could propel MSFT stock.
Another reason why I like Microsoft is its strength in its core business. The company’s flagship products, such as Windows, Office and Azure, are still generating solid revenue and profit growth. These products are essential for millions of businesses and consumers worldwide, and they create a loyal ecosystem that drives recurring revenue and cross-selling opportunities.
Thus, it’s no surprise that Wall Street is increasingly optimistic about Microsoft. Jeffries recently upped its price target for MSFT to $400, and RBC has reaffirmed its “buy” rating for the stock.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is nearing its all-time high with the current rally, as the company has done exceptionally well compared to other tech giants in recent years and has not enacted mass layoffs. The performance of Apple is a testament to its pricing power, specifically regarding iPhones, which represented 52% of its Q2 sales.
Sure, revenues may have declined in the near term, and earnings per share growth has been flat. But personally, AAPL is a long-term bet from any entry point.
Warren Buffett hits the nail on the head, saying, “If you’re an Apple user and somebody offers you $10,000, but the only proviso is they’ll take away your iPhone and you’ll never be able to buy another, you’re not going to take it. If they tell you if you buy another Ford car, they’ll give you $10,000 not to do that, you’ll take the $10,000 and you’ll buy a Chevy instead.”
Adobe (ADBE)
Source: r.classen / Shutterstock.com
Adobe (NASDAQ:ADBE) is a leading software company that is mostly known for its products, such as Photoshop, Premiere, and After Effects. The flagship product Photoshop is a must for graphics designers worldwide, and it recently introduced AI into the mix. The AI buzzword can catalyize massive growth in the future.
ADBE stock currently trades around the same price as it did during the pre-pandemic period. It is a cash-generating company, which is a rarity regarding tech companies that are still growing near a double-digit clip as the business model relies very little on ads.
Adobe’s Q1 revenue stood at $4.66 billion, of which digital media represented $3.40 billion, while the digital experiences segment bought in $1.18 billion. These are subscriptions that are recurring and sticky sources of revenue for the company, and I believe the underlying strength makes it one of the best growth stocks to buy. According to GuruFocus, a fair value here would be $800 by 2025.
Luminar (LAZR), Ouster (OUST)
Source: Olivier Le Moal / Shutterstock.com
Luminar Technologies (NASDAQ:LAZR) is a stock I’ve been heavily bullish on for the past few weeks, and my recent articles have reflected my faith in this company. It makes little sense why LAZR should be changing hands at this price range.
As I’ve noted before:
“… [T]here may be losses, but these losses are tolerable and normal for a startup that is growing at this pace. The company’s management also sees more than $300 million in liquidity by the end of this year, along with a positive gross margin. By the end of 2025, Luminar Technologies expects to break even, and Luminar’s growth performance should be enough to take on additional debt if needed.
… [T]here is a strong possibility of the stock delivering multibagger gains once Wall Street is more comfortable with growth-at-any-cost companies like Luminar, especially when triple-digit growth is expected for at least the next five years. The environment is unlikely to remain tough forever. In cases like this, sacrificing short-term profitability to capture more of the market for the long-run is a good move for startups that can pull off strong sales growth.”
The growth here is simply astounding. Luminar expects to expand sales by 32x in the next five years. I’m confident that this goal is within reach since LiDAR technology is superior to what self-driving cars currently use. With profits and a triple-digit revenue growth rate, once it breaks even in 2025, this company will be valued much higher. The electric vehicle trend will also only accelerate by then.
Then there is Ouster (NYSE:OUST). The LiDAR company was bleeding in the stock market, but investors seem to be realizing the potential here. OUST is up nearly 90% from its trough in the past month alone. I believe a correction is going to happen, but the long-term potential is similar to LAZR. Investors should load up on LAZR for now, but I recommend snapping up OUST near the $5 range.
The Q1 revenue growth for Ouster is also in the triple digits. It expects similar growth in Q2 as well.
Netflix (NFLX)
Source: Riccosta / Shutterstock.com
Netflix (NASDAQ:NFLX) has nearly doubled since its trough back in mid-2021, and buying the stock before NFLX appreciates more is a good decision. NFLX is a surefire growth stock for the next five years and it is yet to reach its fair price.
I called the stock one of the best buying opportunities back in October 2022. So far, the rally has been extraordinary, and catalysts like its password-sharing ban and rolling in ads on the platform will continue to boost its bottom line. It had 232.5 million subscribers in Q1 2023, and I expect that to balloon going forward.
As for the valuation, I agree that you should not go overweight on NFLX right now. Many other growth stocks are offering better value with higher growth.
Unity (U), Tencent (TCEHY)
Source: Shutterstock
Unity (NYSE:U) and Tencent (OTCMKTS:TCEHY) don’t usually go together as they’re different companies in different countries with very different business models. However, I believe both share the same catalyst for growth, which will be the growing impact of Gen Z and Gen Alpha in the coming years.
Unity and Tencent both benefit from the expansion of the video game industry, which has slumped recently. Unity’s business model works by selling subscriptions to its video game development engine, which is the leading choice for developers. Unlike many other tech companies, Unity’s subscription model keeps it well-insulated from sales declining. Sales growth has accelerated to 56.25% YOY in Q1, and analysts believe it will finish 2023 with 54.8% revenue growth YOY.
On the other hand, Tencent is the largest video game publisher and has stakes in major gaming companies. Still, online games pulled in only around 31% of its revenue, with segments like e-commerce driving more sales growth. Tencent’s ad revenue and revenue from the gaming segment had a rebound this year.
Thus, gaming isn’t the only thing that makes me optimistic about TCEHY stock. The company has diversified into many promising businesses, and I am confident it will continue to be successful in the next five years. GuruFocus believes $90 would be a fair price by 2026. Leo Sun from The Motley Fool believes Tencent’s revenue will surpass $1 trillion in the next five years. If that happens, the stock price would double, given the current price-to-sales ratio.
Upstart (UPST), PayPal (PYPL), Block (SQ)
Source: shutterstock.com/ZinetroN
The big payment platforms like PayPal (NASDAQ:PYPL) and Block (NYSE:SQ), along with AI-based lending platform Upstart (NASDAQ:UPST), also have very compelling entry points right now. Both PayPal and Block are substantially down from their pre-pandemic prices despite increasing their global foothold. I believe a strong rally ahead is certain.
I do not see either PYPL or SQ down at this range, and I strongly recommend that investors snap up the stocks and remain patient. The one-year average analyst price target for PYPL will provide 63% upside and 46% for SQ.
In five years, I share my view with GuruFocus that a fair price would be $300 or more for both PYPL and SQ if the growth trajectory here remains consistent.
As for Upstart, I see that as very undervalued too. The platform and the business model are solid and have outperformed traditional methods for calculating credit risk. However, banks are not in a position right now to experiment with AI and new technology while the sector risks a slump. But once the economy improves and banks feel comfortable lending through Upstart again, I expect UPST to surge.
Roku (ROKU)
Source: JHVEPhoto / Shutterstock.com
Roku (NASDAQ:ROKU) is a leading platform for streaming entertainment in the U.S. and abroad. The company offers a range of devices and software that allow users to access thousands of streaming channels — The Roku Channel features live and on-demand content from hundreds of partners.
Roku has a strong competitive advantage in the streaming industry, as it benefits from both the growth of streaming services and the cord-cutting trend. Roku’s platform is also agnostic to the content providers, meaning it can offer users the most comprehensive and diverse selection of streaming options.
However, Roku’s financial performance has been stagnant so far. In Q1 2023, Roku reported revenue of $741 million, almost unchanged YOY. The company also reported $193.6 million in losses.
With the bad outlook, Roku’s stock has been under pressure lately, and the market seems to be concerned about the increasing competition in the streaming space and the potential slowdown in growth.
Regardless, the near-term headwinds here shouldn’t deter you from dipping your toes into ROKU stock. The advertising industry has been struggling, and that makes up a large chunk of Roku’s sales. Once the ad market returns to its normal growth trajectory, I see ROKU stock going for at least $160 or more by 2025. Thus, ROKU is a top pick among growth stocks to buy.
Nike (NKE) and Crocs (CROX)
Source: It for you / Shutterstock.com
Nike (NYSE:NKE) hasn’t fared as well as Crocs (NASDAQ:CROX) in the stock market. Near-term headwinds here have been stronger. Its earnings for the company’s third quarter, which ended in February, surpassed revenue and profit estimates. However, high inventory levels are causing concerns, and Nike is reducing its margins to eliminate the excess inventory.
Still, the bigger picture looks excellent. Q1 revenue is up almost 20% on a constant-currency basis.
Going forward, Nike has to maintain consistency. I believe it can easily surpass the current price of $107 when it rebounds from the trough. But we are talking about the next five years, and NKE is a buy hand over fist at this range if you hold for that long.
Meanwhile, it would be difficult to pinpoint anything bad about Crocs. The business has seen tremendous growth in the past few years, and the stock has rallied over 211% from trough to peak before its current cool-off. I recommended this stock as a buy exactly one year ago. It no longer offers the deep value it did back then, but I strongly believe that CROX investors will not be disappointed in the next five years.
Amazon (AMZN), Shopify (SHOP), Sea (SE)
Source: William Potter / Shutterstock.com
Amazon (NASDAQ:AMZN), Shopify (NYSE:SHOP) and Sea (NYSE:SE) are e-commerce companies that have seen strong growth during the pandemic but have subsequently plunged back to pre-pandemic levels. Both AMZN and SHOP have been steadily recovering, but SE is yet to deliver a sustained rally.
I strongly believe that e-commerce is the future, no matter the recent slowdown. The sector had unnaturally strong growth during the pandemic. It is only natural that e-commerce sales readjust.
I see substantial rallies here once these e-commerce companies start delivering strong growth again. Out of the three, SE has higher upside potential from the current price point as it focuses on developing markets in Southeast Asia and is still in its growth phase. The average analyst’s one-year price target for SE implies 75% upside potential. I would hold off on buying Shopify until there is some sort of a cooldown. But I still think it will perform great for the next five years.
As for Amazon, its cloud sector is already catalyzing growth despite the e-commerce slump and its heavy investments in AI could also catalyze growth in a few years. Simply put, all three are great growth stocks to buy. Especially for the next five years.
Spotify (SPOT)
Source: Kaspars Grinvalds / Shutterstock.com
Spotify (NYSE:SPOT) has rallied considerably since my last round up of tech stocks, up by more than 87%. Indeed, it is at levels where I would start taking profits if I bought it back at the trough last year, as there’s more downside risk here for the short term. Nevertheless, we’re talking about the best growth stocks to buy for the next five years. That list would be incomplete without Spotify, which has considerable upside potential within that timeframe, even from the current price point.
The correction of the U.S. dollar in recent months has helped Spotify get its financials back on track. As of its Q1 report, revenue grew by 14% YOY, and the platform expanded its monthly active user count by 22% to 515 million users, while premium subscribers grew by 15% YOY to 210 million.
That’s great, but Spotify must consistently increase its ARPU. Its premium ARPU is still near the Q1 2022 range, which isn’t too different from the ARPU back in 2020. In fact, Spotify makes much less per user now than it did back in 2015. Its ARPU was 6.82 euros then, and it is now just 4.52. In five years’ time, it is possible to increase its ARPU back to that level and fully exploit the rapidly growing user base. Thus, it is one of the best growth stocks to buy in my book.
HubSpot (HUBS), The Trade Desk (TTD)
Source: Shutterstock
HubSpot (NYSE:HUBS) and Trade Desk (NASDAQ:TTD) are software companies that provide customer relationship management (CRM) and digital advertising solutions, respectively. They are similar in that they both operate in the fast-growing cloud-based software industry and target mid-market enterprises as their main customers. They also have similar growth trajectories, as they both have been increasing their revenue at a high rate (26.8% and 21.4% YOY, respectively).
Still, HUBS and TTD have been hot this year and no longer offer the value they used to. The average analyst price targets for both stocks do not go over 10%, and holding off until a small correction is a good idea. If you are looking to buy for a five-year timeframe, though, these two are surefire growth stocks to buy that won’t disappoint.
Teladoc (TDOC)
Source: Piotr Swat / Shutterstock.com
Teladoc (NYSE:TDOC) continues languishing at levels where it is a no-brainer buy. If value is your thing, it is one of the top growth stocks, trading at just 1.8 times sales, much lower than its historical 9.37 times.
Teladoc’s top line grew by 11% YOY in Q1 and had $888.6 million in cash, enough to comfortably insulate the company until the storm passes. It also needs to work on the BetterHelp segment more to acquire customers and boost the overall business.
But there is still one caveat I would consider before going heavy on the stock. We are talking about a five-year timeframe, and with AI coming into play in the healthcare sector, this could become a serious issue for Teladoc. It was only back in 2018 that OpenAI introduced GPT-1 with 117 million parameters. It released GPT-4 this year with 170 trillion parameters. If AI development stays consistent, it could threaten Teladoc’s business model.
But that’s also one reason I think the company’s BetterHelp segment is promising. It would be almost impossible for AI to hurt face-to-face counseling and therapy services, and the addressable market here is huge. That’s why I consider it one of the top growth stocks to buy.
Enphase Energy (ENPH), ChargePoint (CHPT), EVgo (EVGO)
Source: Shutterstock
Enphase Energy (NASDAQ:ENPH), ChargePoint (NYSE:CHPT) and EVgo (NASDAQ:EVGO) are three companies that I believe are among the top growth stocks to buy that will benefit from the ongoing electrification of vehicles. I believe electric vehicles are yet to fully take off, and with added subsidies and investments, the next five years could see tremendous growth for EV-related businesses.
One big problem with this shift to electric vehicles is that there is not nearly enough infrastructure in place to support the boom in EVs. Less than 1% of U.S. vehicles are electric, already causing problems regarding chips, lithium, and charging infrastructure.
Even by just 2025, there could be 7.8 million electric vehicles on the road, according to S&P Global.
“To support that vehicle population, we expect there will need to be about 700,000 Level 2 and 70,000 Level 3 chargers deployed, including both public and restricted-use facilities. By 2027, we expect there will be a need for about 1.2 million Level 2 chargers and 109,000 Level 3 chargers deployed nationally. Looking further to 2030, with the assumption of 28.3 million units EVs on US roads, an estimated total of 2.13 million Level 2 and 172,000 Level 3 public chargers will be required – all in addition to the units that consumers put in their own garages.”
The U.S. currently has 20,431 Level 3 chargers. Thus, both EVgo and ChargePoint have a lot more room for growth in the next five years. And despite their elevated valuation, I expect them to appreciate substantially in the long run. As for Enphase Energy, it is not a charging pure-play company, but I believe it will return similar, if not higher, gains from its current trough.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
The post The 25 Best Growth Stocks for the Next 5 Years appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is nearing its all-time high with the current rally, as the company has done exceptionally well compared to other tech giants in recent years and has not enacted mass layoffs. But personally, AAPL is a long-term bet from any entry point. The ad market slowdown since mid-2022 and then OpenAI’s ChatGPT integration with Bing caused panic about Google’s future, and the company did make a blunder by rushing Bard.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is nearing its all-time high with the current rally, as the company has done exceptionally well compared to other tech giants in recent years and has not enacted mass layoffs. But personally, AAPL is a long-term bet from any entry point. Upstart (UPST), PayPal (PYPL), Block (SQ) Source: shutterstock.com/ZinetroN The big payment platforms like PayPal (NASDAQ:PYPL) and Block (NYSE:SQ), along with AI-based lending platform Upstart (NASDAQ:UPST), also have very compelling entry points right now.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is nearing its all-time high with the current rally, as the company has done exceptionally well compared to other tech giants in recent years and has not enacted mass layoffs. But personally, AAPL is a long-term bet from any entry point. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking for the best growth stocks to buy will take much more scrutiny in the current market environment.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is nearing its all-time high with the current rally, as the company has done exceptionally well compared to other tech giants in recent years and has not enacted mass layoffs. But personally, AAPL is a long-term bet from any entry point. Tencent’s ad revenue and revenue from the gaming segment had a rebound this year.
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2023-05-30 00:00:00 UTC
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Dell Technologies (DELL) to Post Q1 Earnings: What's in Store?
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https://www.nasdaq.com/articles/dell-technologies-dell-to-post-q1-earnings%3A-whats-in-store-0
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Dell Technologies DELL is set to report its first-quarter fiscal 2024 results on Jun 1.
Dell expects fiscal first-quarter revenues in the range of $20-$21 billion, suggesting a 21.5% decline on a year-over-year basis at the midpoint. Earnings are expected between positive 80 cents and negative 15 cents per share, down 82% on a year-over-year basis at the midpoint.
The Zacks Consensus Estimate for revenues is pegged at $20.2 billion, suggesting a 22.65% decline from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings is pegged at 86 cents per share, indicating a 53.26% decline from the year-ago quarter’s figure. The consensus estimate for earnings has remained unchanged in the past 30 days.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Dell's earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. The company delivered a trailing four-quarter earnings surprise of 22.48% on average.
Let's see how things have shaped up for DELL before this announcement.
Factors to Watch
Dell is expected to have benefited from the ongoing digital transformation and continued investment in innovation in the to-be-reported quarter.
However, unfavorable foreign exchange is expected to have been a headwind. Dell expects nearly 300 basis points impact on revenues.
Challenging macro environment and cautious storage spending are expected to have hurt Infrastructure Solutions Group’s (ISG) growth in the to-be-reported quarter. Lengthening sales cycles is expected to have hurt the top line. Dell expects ISG revenues to fall sequentially in the mid-20s.
Client Solutions Group (CSG) revenues are expected to have suffered from declining PC demand, both in the customer and enterprise business segments. Dell expects CSG revenues to fall sequentially in the mid-teens.
Per the Gartner report, worldwide PC shipments in the first quarter of 2023 witnessed a year-over-year decline of 30%, reaching 55.2 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.
This Zacks Rank #3 (Hold) company shipped 9.541 million units, witnessing a 30.9% year-over-year decline in the first quarter of 2023, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lenovo, HP and Apple shipped 12.828 million, 12.019 million and 4.819 million units, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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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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Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Watch Dell is expected to have benefited from the ongoing digital transformation and continued investment in innovation in the to-be-reported quarter.
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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. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. The Zacks Consensus Estimate for revenues is pegged at $20.2 billion, suggesting a 22.65% decline from the figure reported in the year-ago quarter.
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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. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Dell expects fiscal first-quarter revenues in the range of $20-$21 billion, suggesting a 21.5% decline on a year-over-year basis at the midpoint.
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Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell expects fiscal first-quarter revenues in the range of $20-$21 billion, suggesting a 21.5% decline on a year-over-year basis at the midpoint.
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15607.0
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2023-05-30 00:00:00 UTC
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The 3 Best Dividend Growth Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/the-3-best-dividend-growth-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A portfolio should have dividends, growth, and penny stocks depending on the risk-taking ability. Within the dividend stock space, there can be potentially two types of stocks. First, blue-chip stocks pay steady dividends. Additionally, emerging blue-chip stocks that have the potential to deliver robust dividend growth. This column focuses on some of the best dividend growth stocks that can give investors high returns.
One of the key screening criteria is a strong balance sheet coupled with robust cash flows. Further, the focus is on companies likely to witness healthy revenue growth. Even with stable margins, cash flows will swell, boosting dividends.
I also believe these top dividend growth stocks to buy now are attractively valued. Capital gains can best index returns consistently.
Let’s discuss the reasons to be bullish on these best dividend growth stocks.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock price trend for year-to-date 2023 indicates that something big might be on the cards. During this period, AAPL stock has surged by 40%. A dividend yield of 0.55% does not look attractive. However, I expect robust dividend growth in the coming years.
To put things into perspective, Apple reported $166.3 billion in cash and marketable securities as of April 2023. Further, for the first half of the financial year, the company reported operating cash flow of $62.6 billion. This implies an annualized OCF of $125 billion. Therefore, there is ample flexibility for dividend growth, aggressive share repurchases, and investment in innovation.
In terms of segments, iPhone remains the cash cow. However, I am bullish on the long-term outlook for the services and wearable segment. The company is also focusing on some big emerging markets like India. In the next five to ten years, emerging markets will likely be key growth drivers.
Albemarle Corporation (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle Corporation (NYSE:ALB) is among the best dividend growth stocks to buy. Currently, ALB stock offers a dividend yield of 0.78%. I, however, expect strong dividend growth on the back of aggressive capital investments.
With lithium price correcting in the recent past, ALB stock also trades at a valuation gap. At a forward price-earnings ratio of 9, the stock is poised to double in the next 24 to 36 months. With strong demand from the EV sector, lithium prices will likely remain in an uptrend.
In terms of expansion, Albemarle reported a lithium conversion capacity of 85ktpa in 2019. At the end of 2022, the company boosted its capacity to 200ktpa. The target is to achieve a capacity of 55ktpa by 2027.
Capacity expansion coupled with a higher realized price would imply robust cash flows. This will translate into sustained dividend growth. The company expects an operating cash flow of over $3 billion for the current year.
Amdocs (DOX)
Source: Fit Ztudio / Shutterstock.com
Amdocs (NASDAQ:DOX) is another name among the best dividend growth stocks for the portfolio. The hidden-gem stock has a current dividend yield of 1.8%. Given the visibility for growth and free cash flow upside, I expect healthy dividend growth.
As an overview, Amdocs provides software and services to communications and media companies. Last year, the company reported $4.58 billion in revenue with 75% recurring income. Further, the free cash flow for the year was $665 million. With steady revenue growth visibility, the FCF upside is likely to sustain. This will provide ample headroom for dividend growth.
Regarding specific business growth triggers, wider adoption of 5G will likely benefit the company’s order inflow. Amdocs has also invested over $1 billion in its next-generation cloud technology. With a presence in 90 countries, the addressable market is significant. By 2025, the company believes the serviceable addressable market will be $57 billion.
Overall, DOX stock has been flying under the radar. The stock upside will be meaningful once this potential cash flow machine is in the limelight.
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 The 3 Best Dividend Growth Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock price trend for year-to-date 2023 indicates that something big might be on the cards. During this period, AAPL stock has surged by 40%. With lithium price correcting in the recent past, ALB stock also trades at a valuation gap.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock price trend for year-to-date 2023 indicates that something big might be on the cards. During this period, AAPL stock has surged by 40%. Further, for the first half of the financial year, the company reported operating cash flow of $62.6 billion.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock price trend for year-to-date 2023 indicates that something big might be on the cards. During this period, AAPL stock has surged by 40%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A portfolio should have dividends, growth, and penny stocks depending on the risk-taking ability.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock price trend for year-to-date 2023 indicates that something big might be on the cards. During this period, AAPL stock has surged by 40%. In terms of expansion, Albemarle reported a lithium conversion capacity of 85ktpa in 2019.
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15608.0
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2023-05-30 00:00:00 UTC
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Why Apple Could Have Trouble Reaching a $3 Trillion Market Cap
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AAPL
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https://www.nasdaq.com/articles/why-apple-could-have-trouble-reaching-a-%243-trillion-market-cap
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nan
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nan
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Stock markets were mixed at midday on Tuesday, as investors came back from the Memorial Day weekend feeling upbeat about technology stocks but worried about the broader economy. Declines for the Dow Jones Industrials offset gains in the Nasdaq Composite to leave the S&P 500 near the unchanged mark early Tuesday afternoon.
Many market commentators have noted that the bulk of the gains in the major indexes has come from a handful of big stocks. You won't find a bigger stock than Apple (NASDAQ: AAPL), as its market capitalization rose to nearly $3 trillion in early 2022. Yet even as other stocks make their push toward trillion-dollar market-cap status, Apple is dealing with a headwind in its efforts to retrace its record run -- and it has only itself to blame. Here's why.
Apple is on the rise
Shares of Apple were higher by between 1% and 2% early Tuesday afternoon. Earlier in the morning, shares of the iPhone maker had risen to $179 per share, their best level in more than a year.
The move upward for Apple stems from a number of factors. Excitement about its multibillion-dollar agreement with semiconductor chipmaker Broadcom (NASDAQ: AVGO) was one positive sign, as the supply agreement to obtain various 5G radio frequency components and other wireless connectivity products will help Apple maintain its superiority in its wireless devices. In particular, by reducing its reliance on Chinese companies to provide supplies of crucial parts and components, Apple expects that it will be positioned to handle any future supply chain problems more effectively than it did during the worst of the pandemic.
Also, artificial intelligence (AI) has been an emerging theme among companies in the tech realm. To a large extent, Apple has been quiet about its own AI plans, preferring instead to let other companies be more public with their proposals in the space.
Yet few investors believe that Apple will stand by and let other companies dominate the AI industry. On many occasions in the past, Apple has chosen not to be the first mover, instead coming in later and releasing products that avoid the steepest part of the learning curve while offering unique features.
Further away from a record market cap
At its highs early Tuesday, Apple's share price was just below its record close of $182 per share in January 2022. That left the company with a market capitalization just under the $3 trillion mark, although it had briefly climbed above the $182.86 per share necessary to surpass that level during the trading session on Jan. 3. So with the stock now about 2% below that mark, it might seem as if breaching $3 trillion once again would be inevitable.
Yet that isn't the case. In order to reach a $3 trillion market cap, Apple stock would have to climb to nearly $190 per share. That's not a huge move, but it's still more than 6% above the $179 price.
The reason for this is that Apple has consistently repurchased shares. As of April 1, the company had about 15.79 billion shares outstanding. That was down from the 16.39 billion shares outstanding as of Dec. 25, 2021, immediately before the record run to $3 trillion. Those 600 million shares represented tens of billions of dollars of stock buybacks that Apple has made in just the past 15 months.
Don't count Apple out
Just because it'll take a little bit more effort doesn't mean that Apple is doomed not to get back to a $3 trillion market cap. If the business remains strong, then it's completely reasonable that the stock could rise another 6%.
The point, though, is that even as many companies continue to issue new shares, Apple has cut its outstanding share count significantly year after year. That keeps it from having as large a market cap as it could, but it makes each share that much more meaningful for shareholders as time passes.
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Dan Caplinger has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Broadcom. 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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You won't find a bigger stock than Apple (NASDAQ: AAPL), as its market capitalization rose to nearly $3 trillion in early 2022. Declines for the Dow Jones Industrials offset gains in the Nasdaq Composite to leave the S&P 500 near the unchanged mark early Tuesday afternoon. Yet even as other stocks make their push toward trillion-dollar market-cap status, Apple is dealing with a headwind in its efforts to retrace its record run -- and it has only itself to blame.
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You won't find a bigger stock than Apple (NASDAQ: AAPL), as its market capitalization rose to nearly $3 trillion in early 2022. Declines for the Dow Jones Industrials offset gains in the Nasdaq Composite to leave the S&P 500 near the unchanged mark early Tuesday afternoon. Further away from a record market cap At its highs early Tuesday, Apple's share price was just below its record close of $182 per share in January 2022.
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You won't find a bigger stock than Apple (NASDAQ: AAPL), as its market capitalization rose to nearly $3 trillion in early 2022. Further away from a record market cap At its highs early Tuesday, Apple's share price was just below its record close of $182 per share in January 2022. In order to reach a $3 trillion market cap, Apple stock would have to climb to nearly $190 per share.
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You won't find a bigger stock than Apple (NASDAQ: AAPL), as its market capitalization rose to nearly $3 trillion in early 2022. Further away from a record market cap At its highs early Tuesday, Apple's share price was just below its record close of $182 per share in January 2022. That was down from the 16.39 billion shares outstanding as of Dec. 25, 2021, immediately before the record run to $3 trillion.
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15609.0
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2023-05-30 00:00:00 UTC
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Foxconn sees AI driving strong server demand, but full year to be flat
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AAPL
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https://www.nasdaq.com/articles/foxconn-sees-ai-driving-strong-server-demand-but-full-year-to-be-flat
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nan
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nan
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TAIPEI, May 31 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes.
Foxconn Chairman Liu Young-way told the company's annual shareholders meeting the firm remained cautious about this year due to monetary policy tightening, geopolitical tensions and uncertainty over inflation, but servers were a bright spot due to surging interest in AI.
"More and more people are using ChatGPT," he said. "You can see the market for AI servers will rise much faster than expected. We expect that in the second half of this year there may be a three digit increase."
The Taiwanese company has a 40%global marketshare for servers and aims to further increase that, Liu added.
In the first quarter, Foxconn's cloud and network products segment, which includes servers, accounted for 22% of revenue, second only to smart consumer electronics - which includes smartphones - at 56%.
Foxconn this month posted a 56% plunge in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, and said visibility for the full year was "limited".
The company, the world's largest contract electronics maker, wants to replicate the success it has had with Apple's iPhone with electric vehicles (EV).
Foxconn, formally called Hon Hai Precision Industry Co Ltd, has acquired the former General Motor Co GM.N plant in Lordstown, Ohio, and has also hired a former Nissan 7201.T executive, Jun Seki, to lead expansion efforts in EVs, where it hopes to become a major manufacturer.
The company is considering expanding its EV battery supply chain beyond Taiwan, possibly into the United States, Indonesia and India, Liu said.
Foxconn, which assembles around 70% of iPhones, has been diversifying production away from China, whose strict COVID-19 restrictions disrupted its biggest iPhone plant last year. The company is also seeking to avoid a potential hit to its business from mounting trade tensions between Beijing and Washington.
Liu said China, including its massive iPhone plant in China's Zhengzhou, remained very important for Foxconn.
"The culture there is very similar, our rules and regulations are a bit different, but there is no problem when it comes to talent. So it's relatively easier for us to start new undertakings there. We'll work hard to keep developing there."
(Reporting by Ben Blanchard and Faith Hung; Editing by Christopher Cushing)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, May 31 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes. The company, the world's largest contract electronics maker, wants to replicate the success it has had with Apple's iPhone with electric vehicles (EV). Foxconn, formally called Hon Hai Precision Industry Co Ltd, has acquired the former General Motor Co GM.N plant in Lordstown, Ohio, and has also hired a former Nissan 7201.T executive, Jun Seki, to lead expansion efforts in EVs, where it hopes to become a major manufacturer.
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TAIPEI, May 31 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes. In the first quarter, Foxconn's cloud and network products segment, which includes servers, accounted for 22% of revenue, second only to smart consumer electronics - which includes smartphones - at 56%. Foxconn, which assembles around 70% of iPhones, has been diversifying production away from China, whose strict COVID-19 restrictions disrupted its biggest iPhone plant last year.
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TAIPEI, May 31 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes. Foxconn Chairman Liu Young-way told the company's annual shareholders meeting the firm remained cautious about this year due to monetary policy tightening, geopolitical tensions and uncertainty over inflation, but servers were a bright spot due to surging interest in AI. Foxconn, which assembles around 70% of iPhones, has been diversifying production away from China, whose strict COVID-19 restrictions disrupted its biggest iPhone plant last year.
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TAIPEI, May 31 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes. We expect that in the second half of this year there may be a three digit increase." The Taiwanese company has a 40%global marketshare for servers and aims to further increase that, Liu added.
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15610.0
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2023-05-30 00:00:00 UTC
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These 3 Companies Generate Substantial Cash
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AAPL
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https://www.nasdaq.com/articles/these-3-companies-generate-substantial-cash
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nan
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nan
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When scouting for stocks, a standard metric that comes into focus is free cash flow. In its simplest form, free cash flow is the total cash a company keeps after operating costs and capital expenditures.
Free cash flow strength allows for more growth opportunities, a higher potential for share buybacks, stable dividend payouts, and the ability to wipe out any debt easily.
For those interested in cash-generating machines, three companies – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – all fit the criteria.
In addition, all three provide exposure to the Technology sector. Let’s take a closer look at each.
Apple
Apple is often labeled the ‘King’ of free cash flow for understandable reasons; the company generated a mighty $25.6 billion in free cash flow throughout its latest quarter. And over the last trailing twelve-months, the tech titan has generated nearly $100 billion of free cash flow.
Image Source: Zacks Investment Research
It’s no secret that Apple shares are pricey, with the current 29.3X forward earnings multiple sitting well above the 24.5X five-year median and the Zacks Computer and Technology sector average. Still, investors have had little issue forking up the premium given Apple’s favorable financial standing.
Image Source: Zacks Investment Research
Microsoft
Microsoft shares have jumped back into favor in 2023 amid the broader technology rebound, with the company’s recent dive into artificial intelligence making investors ecstatic. MSFT posted free cash flow of $17.8 billion in its latest release, recovering nicely from the prior quarter.
Image Source: Zacks Investment Research
MSFT shares also provide a passive income stream, with the company’s dividend currently yielding 0.8% annually. And the company has shown a commitment to increasingly rewarding its shareholders, sporting a 10% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Broadcom
Broadcom shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple for components made in the USA. The semiconductor player posted free cash flow of $3.9 billion in its latest quarter, improving a solid 16% from the year-ago period.
Image Source: Zacks Investment Research
In addition, the company’s 78.6% TTM return on equity is worth highlighting, indicating a higher efficiency level in generating profit from existing assets relative to peers.
Image Source: Zacks Investment Research
Bottom Line
When scouting potential portfolio additions, free cash flow is undoubtedly a metric worth serious attention.
A company displaying free cash flow strength has freedom for growth opportunities, can consistently shell out dividends, and wipe out debt easily.
And all three companies above – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – generate substantial cash and provide exposure to technology.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For those interested in cash-generating machines, three companies – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – all fit the criteria. And all three companies above – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – generate substantial cash and provide exposure to technology. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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And all three companies above – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – generate substantial cash and provide exposure to technology. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in cash-generating machines, three companies – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – all fit the criteria.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in cash-generating machines, three companies – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – all fit the criteria. And all three companies above – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – generate substantial cash and provide exposure to technology.
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For those interested in cash-generating machines, three companies – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – all fit the criteria. And all three companies above – Apple AAPL, Microsoft MSFT, and Broadcom AVGO – generate substantial cash and provide exposure to technology. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15611.0
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2023-05-30 00:00:00 UTC
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After Hours Most Active for May 30, 2023 : OPEN, NVDA, YMM, DXCM, BRMK, PLTR, AMZN, AAPL, MU, SCHW, KO, ZTO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-30-2023-%3A-open-nvda-ymm-dxcm-brmk-pltr-amzn-aapl-mu-schw
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 1.83 to 14,356.82. The total After hours volume is currently 79,772,468 shares traded.
The following are the most active stocks for the after hours session:
Opendoor Technologies Inc (OPEN) is +0.01 at $2.47, with 6,026,785 shares traded. OPEN's current last sale is 123.44% of the target price of $2.001.
NVIDIA Corporation (NVDA) is +1.1799 at $402.29, with 2,624,716 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.73. , following a 52-week high recorded in today's regular session.
Full Truck Alliance Co. Ltd. (YMM) is unchanged at $5.80, with 2,593,942 shares traded. As reported by Zacks, the current mean recommendation for YMM is in the "buy range".
DexCom, Inc. (DXCM) is +0.24 at $113.80, with 2,405,287 shares traded. As reported by Zacks, the current mean recommendation for DXCM is in the "buy range".
Broadmark Realty Capital Inc. (BRMK) is +0.01 at $4.83, with 2,265,461 shares traded. BRMK's current last sale is 96.6% of the target price of $5.
Palantir Technologies Inc. (PLTR) is -0.01 at $14.70, with 2,189,325 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is +0.24 at $121.90, with 2,123,879 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.04 at $177.26, with 1,943,123 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.
Micron Technology, Inc. (MU) is +0.03 at $71.72, with 1,899,334 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
The Charles Schwab Corporation (SCHW) is +0.02 at $53.86, with 1,796,101 shares traded. As reported by Zacks, the current mean recommendation for SCHW is in the "buy range".
Coca-Cola Company (The) (KO) is -0.01 at $59.77, with 1,444,598 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
ZTO Express (Cayman) Inc. (ZTO) is -0.015 at $25.21, with 1,382,445 shares traded. ZTO's current last sale is 70.03% of the target price of $36.
The views and 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 -0.04 at $177.26, with 1,943,123 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. Palantir Technologies Inc. (PLTR) is -0.01 at $14.70, with 2,189,325 shares traded., following a 52-week high recorded in today's regular session.
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, following a 52-week high recorded in today's regular session. Apple Inc. (AAPL) is -0.04 at $177.26, with 1,943,123 shares traded. Palantir Technologies Inc. (PLTR) is -0.01 at $14.70, with 2,189,325 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.04 at $177.26, with 1,943,123 shares traded. The total After hours volume is currently 79,772,468 shares traded. Palantir Technologies Inc. (PLTR) is -0.01 at $14.70, with 2,189,325 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.04 at $177.26, with 1,943,123 shares traded. The following are the most active stocks for the after hours session: As reported by Zacks, the current mean recommendation for YMM is in the "buy range".
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15612.0
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2023-05-30 00:00:00 UTC
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NEWSMAKER-Nvidia CEO Jensen Huang: Leather-jacketed boss of trillion-dollar chip firm
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AAPL
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https://www.nasdaq.com/articles/newsmaker-nvidia-ceo-jensen-huang%3A-leather-jacketed-boss-of-trillion-dollar-chip-firm
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nan
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nan
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By Yuvraj Malik, Samrhitha A and Stephen Nellis
May 30 (Reuters) - When the pandemic forced Nvidia Corp NVDA.O to hold a major product launch virtually, CEO Jensen Huang beamed video to promote the event from his kitchen, where he pulled the company's latest chip out of his oven.
On Tuesday, he joined an elite list of tech executives to head a company worth $1 trillion.
Huang, 60, is only the second U.S. CEO after Amazon.com Inc's AMZN.O Jeff Bezos, who helmed the retailer until 2021, to hit such a milestone for a company they co-founded.
The company's shares have been on a tear, rising on stellar sales projections from a boom in AI. Since the launch of OpenAI's ChatGPT on Nov. 30, 2022, Nvidia's value has ballooned from roughly $420 billion to its current level.
Huang's success stems in part from a desire to solve thorny computer science problems with a mix of software and hardware - a vision that has taken him three decades to perfect.
Born in Taiwan, Huang moved to the United States as a child, earning engineering degrees at Oregon State University and Stanford University.
Huang is hugely popular in semiconductor powerhouse Taiwan and received a rock star welcome during a visit to Taipei this week for a trade fair, giving a key note address on Monday attended by thousands of people, some of whom surrounded him for selfies after his two-hour speech.
In 1993, when he was 30, he founded Nvidia along with Curtis Priem and Chris Malachowsky, securing backing from Silicon Valley's Sequoia Capital and others. Its first big hits were specialized chips to power high-intensity motion graphics for computer games called graphics processing units (GPUs). Even then, Huang did not think of Nvidia as just a chip company.
"Computer graphics is one of the most complex parts of computer science," Huang told an audience in Silicon Valley in 2021 while receiving a lifetime achievement award. "You have to understand everything."
By the mid-2000s, Huang and his team realized Nvidia's chips could be used on more general computing problems and released a software platform called CUDA to allow software developers of all stripes to program Nvidia chips.
AN EARLY BET
That kicked off of a wave of new uses, including for cryptocurrency. But Huang recognized that university labs were using his chips for work in AI, a niche in computer science that held promise of powering everything from virtual assistants to self-driving cars. He released a parade of chips for AI, and the bet paid off.
Nvidia also differentiated itself by outsourcing its silicon manufacturing to partners including Taiwan Semiconductor Manufacturing 2330.TW, bucking the model set by Intel, which is now worth a fraction of Nvidia's value - which was just under $1 trillion as of Tuesday's close.
"He has helped enable a revolution that allows phones to answer questions out loud, farms to spray weeds but not crops, doctors to predict the properties of new drugs - with more wonders to come," AI entrepreneur Andrew Ng wrote of Huang in Time magazine when the latter was named one of the 100 most influential people by Time in 2021.
FACTBOX-Nvidia joins tech titans in trillion-dollar club ID:nL4N37R3WM
BREAKINGVIEWS-Nvidia crashes $1 trln party, perhaps not for long ID:nL4N37R3Z4
Nvidia joins $1 trillion valuation club on booming AI demand ID:nL4N37R28Y
EXPLAINER-Why are Nvidia's shares soaring and what is its role in the AI boom? ID:nL4N37R3LZ
Nvidia shorts extend mark-to-market losses as market cap hits $1 trln -S3 Partners ID:nL1N37R254
BREAKINGVIEWS-Nvidia investors price in seven years of AI glory ID:nL4N37M3HX
(Reporting by Yuvraj Malik and Samrhitha Arunasalam in Bengaluru and Stephen Nellis in San Francisco; Additional reporting by Ben Blanchard in Taipei; Editing by Matthew Lewis, Sonali Paul and Jacqueline Wong)
((yuvraj.malik@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 Yuvraj Malik, Samrhitha A and Stephen Nellis May 30 (Reuters) - When the pandemic forced Nvidia Corp NVDA.O to hold a major product launch virtually, CEO Jensen Huang beamed video to promote the event from his kitchen, where he pulled the company's latest chip out of his oven. Huang is hugely popular in semiconductor powerhouse Taiwan and received a rock star welcome during a visit to Taipei this week for a trade fair, giving a key note address on Monday attended by thousands of people, some of whom surrounded him for selfies after his two-hour speech. But Huang recognized that university labs were using his chips for work in AI, a niche in computer science that held promise of powering everything from virtual assistants to self-driving cars.
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Nvidia also differentiated itself by outsourcing its silicon manufacturing to partners including Taiwan Semiconductor Manufacturing 2330.TW, bucking the model set by Intel, which is now worth a fraction of Nvidia's value - which was just under $1 trillion as of Tuesday's close. FACTBOX-Nvidia joins tech titans in trillion-dollar club ID:nL4N37R3WM BREAKINGVIEWS-Nvidia crashes $1 trln party, perhaps not for long ID:nL4N37R3Z4 Nvidia joins $1 trillion valuation club on booming AI demand ID:nL4N37R28Y EXPLAINER-Why are Nvidia's shares soaring and what is its role in the AI boom? ID:nL4N37R3LZ Nvidia shorts extend mark-to-market losses as market cap hits $1 trln -S3 Partners ID:nL1N37R254 BREAKINGVIEWS-Nvidia investors price in seven years of AI glory ID:nL4N37M3HX (Reporting by Yuvraj Malik and Samrhitha Arunasalam in Bengaluru and Stephen Nellis in San Francisco; Additional reporting by Ben Blanchard in Taipei; Editing by Matthew Lewis, Sonali Paul and Jacqueline Wong) ((yuvraj.malik@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 the mid-2000s, Huang and his team realized Nvidia's chips could be used on more general computing problems and released a software platform called CUDA to allow software developers of all stripes to program Nvidia chips. FACTBOX-Nvidia joins tech titans in trillion-dollar club ID:nL4N37R3WM BREAKINGVIEWS-Nvidia crashes $1 trln party, perhaps not for long ID:nL4N37R3Z4 Nvidia joins $1 trillion valuation club on booming AI demand ID:nL4N37R28Y EXPLAINER-Why are Nvidia's shares soaring and what is its role in the AI boom? ID:nL4N37R3LZ Nvidia shorts extend mark-to-market losses as market cap hits $1 trln -S3 Partners ID:nL1N37R254 BREAKINGVIEWS-Nvidia investors price in seven years of AI glory ID:nL4N37M3HX (Reporting by Yuvraj Malik and Samrhitha Arunasalam in Bengaluru and Stephen Nellis in San Francisco; Additional reporting by Ben Blanchard in Taipei; Editing by Matthew Lewis, Sonali Paul and Jacqueline Wong) ((yuvraj.malik@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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Even then, Huang did not think of Nvidia as just a chip company. "Computer graphics is one of the most complex parts of computer science," Huang told an audience in Silicon Valley in 2021 while receiving a lifetime achievement award. By the mid-2000s, Huang and his team realized Nvidia's chips could be used on more general computing problems and released a software platform called CUDA to allow software developers of all stripes to program Nvidia chips.
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15613.0
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2023-05-30 00:00:00 UTC
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7 Hot Stocks to Buy to Make Your Portfolio Sizzle This Summer
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AAPL
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https://www.nasdaq.com/articles/7-hot-stocks-to-buy-to-make-your-portfolio-sizzle-this-summer
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Revenge travel is finally here. And summer 2023 looks like it’s going to be a hot one. In fact, travel numbers for this year’s Memorial Day weekend — which serves as the unofficial start to summer — were exceptionally strong. For example, air travel surpassed pre-pandemic levels. According to the Transportation Security Administration (TSA), 9.8 million people across America passed through airport security during the Memorial Day weekend, which was about 300,000 more people than during the same holiday weekend in 2019, before Covid-19 disrupted all our lives. With those numbers a strong sign of what’s to come for summer 2023, here are seven hot stocks to buy to make your portfolio sizzle.
ABNB Airbnb $109.77
BKNG Booking Holdings $2,508.77
CMG Chipotle $2,076.49
AAPL Apple $177.25
F Ford Motor $12.00
CCL Carnival $11.23
MAR Marriott International $167.79
Airbnb (ABNB)
Source: BigTunaOnline / Shutterstock.com
Summer is the peak season for homestay and rental company Airbnb (NASDAQ:ABNB). And now looks to be a good time to buy following its most recent earnings report. While the company beat analysts’ estimates, the stock got dinged by a cautious outlook for the current second quarter.
In its latest shareholder letter, Airbnb made sure to state that it looks forward to another “strong summer travel season” in Q3 and that it is seeing travelers returning to major cities and they are also booking longer stays. Its Q1 nights and experiences bookings were up 19% from a year ago, with even stronger bookings expected over the busy summer months. The company is concentrating on growing its business in international markets outside the U.S. Long-term, ABNB stock should be fine.
Booking Holdings (BKNG)
Source: Shutterstock
Travel search giant Booking Holdings (NASDAQ:BKNG) is another sizzling summer stock to consider. To date, BKNG stock has gained 26%. The company, which owns fare aggregator and travel websites such as Booking.com, Priceline, Kayak, Cheapflights, and Rentalcars.com has seen its share price rebound along with global travel coming out of the pandemic. Today, Booking Holdings operates travel-focused websites in 200 countries and 40 different languages.
Booking Holdings has reported strong financial results as the travel industry has come storming back following the Covid-19 crisis. The company reported that its Q1 revenue grew 40% from a year earlier, and it has forecast continued strong bookings for the current second quarter and leading into summer. The company also reported a free-cash-flow profit margin of nearly 42% over the last 12 months, which analysts applauded.
Chipotle (CMG)
Source: icemanphotos / Shutterstock.com
Food is part of summer, and few quick-service restaurants are performing as well right now as Chipotle Mexican Grill (NYSE:CMG). YTD, CMG stock is up 52%, bringing its gains over the past five years to 375%. Strong sales and an aggressive growth strategy continue to power the stock to new heights. The company most recently reiterated plans to open as many as 285 new restaurant locations this year. It managed to open 41 new locations during Q1 alone.
The popularity of Chipotle’s Mexican cuisine also shows no signs of abating. In the first quarter, the company reported that its sales rose 17% year-over-year to $2.37 billion, while its same-store sales rose an annualized 10.9%. And while it continues to add physical restaurant locations, Chipotle is also successfully growing its digital business, with digital orders accounting for nearly 40% of the company’s total sales during Q1. All of this growth has been music to the ears of analysts and investors, who continue to bid up CMG stock.
Apple (AAPL)
You don’t get far these days without a smartphone, and Apple (NASDAQ:AAPL) is once again marching higher after trading sideways for most of the past year. Heading into summer, AAPL stock is on an upswing, having risen 18% since mid-March. The stock is recovering as the entire technology sector gets a lift from the hype surrounding artificial intelligence and as concerns about supply chain gluts and Covid-19 lockdowns at the company’s manufacturing sites in China ease.
Going forward, Apple should continue to benefit from continued strong sales of its iconic iPhone, as well as its tablets and laptop computers. While a global recession remains a risk and could lead to a decline in consumer spending, most predictions are for a short and shallow recession at worst. Plus, Apple continues to diversify into new product areas, including streaming and online payments. There are even some analysts forecasting that the company will also be a big beneficiary of new A.I. technologies.
Ford Motor (F)
Source: Jonathan Weiss / Shutterstock.com
There’s nothing like a summer road trip. With that in mind, we turn to Ford Motor (NYSE:F). The automotive giant is seeing its stock get a nice lift after a recent investor day where it outlined its progress on electric vehicles, and on news that it has partnered with Tesla (NASDAQ:TSLA) in a deal that will see Ford use Tesla charging technology going forward. News of the Tesla partnership, in particular, has powered F stock 10% higher.
F stock had been in the doldrums prior to the Tesla deal being announced. But now many skeptical analysts and investors are looking at the automaker and its stock in a new light. Ford is spending $50 billion to ramp up its electric vehicle manufacturing to two million units a year by 2026 as it races to catch up with market leader Tesla. Ford and Tesla had long been intense rivals. But now that the two companies have become frenemies, F stock has caught fire.
Carnival Corp. (CCL)
Source: Shutterstock.com
Summer is the best time of year to be on the ocean, so why not set sail on a cruise ship operated by Carnival Corp. (NYSE:CCL). After two incredibly difficult years in which most of its ships were docked around the world during the pandemic, Carnival is seeing its business come roaring back. As a result, CCL stock is up 42% on the year and nearing a 52-week high. While the stock still has a long way to go to get back to pre-pandemic levels, it is trending in the right direction.
The company’s most recent Q1 earnings told an encouraging story. Carnival reported revenue of $4.4 billion for the January through March period, up 173% from a year earlier and representing 95% of its pre-pandemic sales level. The company also announced record bookings for the remainder of 2023, noting customer deposits of $5.7 billion for Q1 alone, which was a record for the company. Travelers have clearly rediscovered cruising now that Covid-19 is firmly behind us.
Marriott International (MAR)
Source: Boyloso / Shutterstock
Travelers who don’t stay at an Airbnb this summer, will most likely book a hotel, which is reason to consider Marriott International (NASDAQ:MAR). The company, which owns 32 hotel brands that include Courtyard, Delta, Westin, and The Ritz-Carlton, has seen its stock climb 15% higher this year after suffering a steep downturn throughout the pandemic. Analysts and investors have become more bullish on Marriott as its properties have fully reopened not only in the U.S. but in international locations too, especially in China.
Marriott is taking full advantage of the reopening to grow and expand around the world. In Q1, it added 79 new hotel properties with a total of 11,015 rooms to its global portfolio. The company has also stated that it plans to build an additional 3,060 hotels with approximately 502,000 rooms. Nearly half (200,000 hotel rooms) are currently under construction. That kind of demand-driven growth has made more than a few analysts and investors take notice and the stock is trending higher as a result.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 7 Hot Stocks to Buy to Make Your Portfolio Sizzle This Summer 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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ABNB Airbnb $109.77 BKNG Booking Holdings $2,508.77 CMG Chipotle $2,076.49 AAPL Apple $177.25 F Ford Motor $12.00 CCL Carnival $11.23 MAR Marriott International $167.79 Airbnb (ABNB) Source: BigTunaOnline / Shutterstock.com Summer is the peak season for homestay and rental company Airbnb (NASDAQ:ABNB). Apple (AAPL) You don’t get far these days without a smartphone, and Apple (NASDAQ:AAPL) is once again marching higher after trading sideways for most of the past year. Heading into summer, AAPL stock is on an upswing, having risen 18% since mid-March.
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ABNB Airbnb $109.77 BKNG Booking Holdings $2,508.77 CMG Chipotle $2,076.49 AAPL Apple $177.25 F Ford Motor $12.00 CCL Carnival $11.23 MAR Marriott International $167.79 Airbnb (ABNB) Source: BigTunaOnline / Shutterstock.com Summer is the peak season for homestay and rental company Airbnb (NASDAQ:ABNB). Apple (AAPL) You don’t get far these days without a smartphone, and Apple (NASDAQ:AAPL) is once again marching higher after trading sideways for most of the past year. Heading into summer, AAPL stock is on an upswing, having risen 18% since mid-March.
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ABNB Airbnb $109.77 BKNG Booking Holdings $2,508.77 CMG Chipotle $2,076.49 AAPL Apple $177.25 F Ford Motor $12.00 CCL Carnival $11.23 MAR Marriott International $167.79 Airbnb (ABNB) Source: BigTunaOnline / Shutterstock.com Summer is the peak season for homestay and rental company Airbnb (NASDAQ:ABNB). Apple (AAPL) You don’t get far these days without a smartphone, and Apple (NASDAQ:AAPL) is once again marching higher after trading sideways for most of the past year. Heading into summer, AAPL stock is on an upswing, having risen 18% since mid-March.
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ABNB Airbnb $109.77 BKNG Booking Holdings $2,508.77 CMG Chipotle $2,076.49 AAPL Apple $177.25 F Ford Motor $12.00 CCL Carnival $11.23 MAR Marriott International $167.79 Airbnb (ABNB) Source: BigTunaOnline / Shutterstock.com Summer is the peak season for homestay and rental company Airbnb (NASDAQ:ABNB). Apple (AAPL) You don’t get far these days without a smartphone, and Apple (NASDAQ:AAPL) is once again marching higher after trading sideways for most of the past year. Heading into summer, AAPL stock is on an upswing, having risen 18% since mid-March.
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15614.0
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2023-05-30 00:00:00 UTC
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Stock Market News for May 30, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-may-30-2023
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nan
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nan
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Wall Street closed sharply higher on Friday as investors grew hopeful about the lawmakers reaching a deal to raise the U.S. debt ceiling and avoiding a potential crisis. The rally was driven by tech stocks. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1% or 328.69 points to finish at 33,093.34 points, ending its five-day losing streak.
The S&P 500 rose 1.3% or 54.17 points to close at 4,205.45 points. Tech, consumer discretionary and communication services stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) gained 2.8% and 2.4% respectively. The Communication Services Select Sector SPDR (XLC) rose 2%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 2.2% or 277.59 points to end at 12,975.69 points.
The fear-gauge CBOE Volatility Index (VIX) was down 6.22% to 17.95. A total of 9.8 billion shares were traded on Friday, lower than the last 20-session average of 10.5 billion.
Congress Nears U.S. Debt Ceiling Deal
U.S. stocks rallied on Friday on signs that Congress was nearing a deal to raise the U.S. debt ceiling following several rounds of talks between President Joe Biden and top congressional Republican Kevin McCarthy. The deal would increase the $31.4 trillion debt limit for two years.
McCarthy said that talks yielded progress on Thursday night but more progress was still required. This came after Treasury Secretary Janet Yellen warned that if the debt ceiling isn’t raised, the United States could default as early as by Jun 1.
However, the positive comments from McCarthy lifted investors’ sentiment, sending stocks on a rally. The rally was led by tech stocks. Shares of Apple Inc. (AAPL) gained 1.4%, while Microsoft Corporation (MSFT) rose 2.1%. Shares of NVIDIA Corporation (NVDA) gained 2.5%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Intel Corporation’s (INTC) shares jumped 5.8%, leading the Dow higher. Investors are now trying to gauge the Fed’s future rate hike path. Expectations are high that the central bank could finally put a pause on its interest rate hikes, which could be as early as in June.
However, that may not be the case also as fresh economic data showed inflation rose once again in April.
Economic Data
In economic data released on Friday, the Bureau of Economic Analysis said that the personal consumer expenditure (PCE) price index increased 0.4% month over month in April after rising 0.1% in March. On a year-over-year basis, the PCE index climbed 4.4% in April after increasing 4.2% in March.
Core PCE, which excluded the volatile food and energy costs, advanced 0.4% month over month in April and 4.7% from April 2022.
PCE data also showed consumer spending increased in April to 0.8%, its biggest gain in the past three months and exceeding expectations of a 0.5% rise.
Separately, the U.S. Census Bureau said that manufactured durable goods in the United States jumped 1% in April, driven by military spending. U. S. personal income increased 0.4% in April.
Weekly Roundup
The Nasdaq recorded its fifth straight weekly gain, after advancing 2.5% for the week. The S&P 500 closed the week 0.3% higher, while the ended 1% lower for the week.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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Intel Corporation (INTC) : Free Stock Analysis Report
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NVIDIA Corporation (NVDA) : 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 1.4%, while Microsoft Corporation (MSFT) rose 2.1%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street closed sharply higher on Friday as investors grew hopeful about the lawmakers reaching a deal to raise the U.S. debt ceiling and avoiding a potential crisis.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.4%, while Microsoft Corporation (MSFT) rose 2.1%. Congress Nears U.S. Debt Ceiling Deal U.S. stocks rallied on Friday on signs that Congress was nearing a deal to raise the U.S. debt ceiling following several rounds of talks between President Joe Biden and top congressional Republican Kevin McCarthy.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.4%, while Microsoft Corporation (MSFT) rose 2.1%. Congress Nears U.S. Debt Ceiling Deal U.S. stocks rallied on Friday on signs that Congress was nearing a deal to raise the U.S. debt ceiling following several rounds of talks between President Joe Biden and top congressional Republican Kevin McCarthy.
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Shares of Apple Inc. (AAPL) gained 1.4%, while Microsoft Corporation (MSFT) rose 2.1%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Eight of the 11 sectors of the benchmark index ended in positive territory.
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15615.0
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2023-05-30 00:00:00 UTC
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Canadian AI computing startup Tenstorrent and LG partner to build chips
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AAPL
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https://www.nasdaq.com/articles/canadian-ai-computing-startup-tenstorrent-and-lg-partner-to-build-chips
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nan
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nan
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By Jane Lanhee Lee
OAKLAND, California, May 30 (Reuters) - Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc 066570.KS to build chips that power smart TVs, automotive products and data centers.
Tenstorrent, started in 2016, designs computers to train and run artificial intelligence models and works on both the software and hardware, CEO Jim Keller said in an interview. Keller is an engineer best known for his pioneering work in designing chips at Apple IncAAPL.O, Tesla Inc TSLA.O, and chipmaker Advanced Micro Devices Inc AMD.O.
Keller, an early investor in Tenstorrent, took the helm in 2023. The company, already worth $1 billion according to data firm PitchBook, has not revealed any of its customers until now.
LG will initially use Tenstorrent's AI chip blueprint to design its own chips, but the partnership is more strategic, said David Bennett, Tenstorrent's chief customer officer.
"What we're looking at is also some of the technology that LG has developed. Could it not be something that we use either in our own products or potentially with other future customers."
Tenstorrent has also designed a processor chip using RISC-V, a relatively new open standard chip architecture competing with Arm Ltd's Arm architecture. While many chip startups focus on one type of chip, Keller said his team was developing both the AI chip and processor as they will need to work closely together to handle the fast-changing AI models.
"We have to aim at the whole thing. ... It's quite early. And it was built on the available components," said Keller about today's AI and AI hardware landscape.
"In the last five years people learned so much about how this works and made real progress. But it doesn't look like we're anywhere close to 'this is the right way to do it, the best way to do it, or the final thing.'"
(Reporting by Jane Lanhee Lee; Editing by Richard Chang)
((jane.lee@thomsonreuters.com; +1-415-344-3912; Reuters Messaging: jane.lee.thomsonreuters@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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Keller is an engineer best known for his pioneering work in designing chips at Apple IncAAPL.O, Tesla Inc TSLA.O, and chipmaker Advanced Micro Devices Inc AMD.O. By Jane Lanhee Lee OAKLAND, California, May 30 (Reuters) - Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc 066570.KS to build chips that power smart TVs, automotive products and data centers. Tenstorrent, started in 2016, designs computers to train and run artificial intelligence models and works on both the software and hardware, CEO Jim Keller said in an interview.
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Keller is an engineer best known for his pioneering work in designing chips at Apple IncAAPL.O, Tesla Inc TSLA.O, and chipmaker Advanced Micro Devices Inc AMD.O. By Jane Lanhee Lee OAKLAND, California, May 30 (Reuters) - Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc 066570.KS to build chips that power smart TVs, automotive products and data centers. Tenstorrent has also designed a processor chip using RISC-V, a relatively new open standard chip architecture competing with Arm Ltd's Arm architecture.
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Keller is an engineer best known for his pioneering work in designing chips at Apple IncAAPL.O, Tesla Inc TSLA.O, and chipmaker Advanced Micro Devices Inc AMD.O. By Jane Lanhee Lee OAKLAND, California, May 30 (Reuters) - Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc 066570.KS to build chips that power smart TVs, automotive products and data centers. LG will initially use Tenstorrent's AI chip blueprint to design its own chips, but the partnership is more strategic, said David Bennett, Tenstorrent's chief customer officer.
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Keller is an engineer best known for his pioneering work in designing chips at Apple IncAAPL.O, Tesla Inc TSLA.O, and chipmaker Advanced Micro Devices Inc AMD.O. By Jane Lanhee Lee OAKLAND, California, May 30 (Reuters) - Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc 066570.KS to build chips that power smart TVs, automotive products and data centers. LG will initially use Tenstorrent's AI chip blueprint to design its own chips, but the partnership is more strategic, said David Bennett, Tenstorrent's chief customer officer.
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15616.0
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2023-05-30 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-44
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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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15617.0
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2023-05-30 00:00:00 UTC
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For the First Time in 23 Years, the S&P 500 Is Displaying an Ominous Warning to Wall Street
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AAPL
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https://www.nasdaq.com/articles/for-the-first-time-in-23-years-the-sp-500-is-displaying-an-ominous-warning-to-wall-street
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Regardless of how long you've been investing, the pace of change on Wall Street is something to marvel at. In 2021, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) were regularly notching off new all-time closing highs. Just one year later, in 2022, all three indexes were mired in a bear market and delivering their worst full-year returns since the global financial crisis.
This year, the script has flipped, once more. Though the Dow, which outperformed the two other major stock indexes in 2022, is effectively flat on a year-to-date basis, through May 29, the S&P 500 and Nasdaq Composite have surged 9.5% and 24%, respectively.
It would seem the bulls are, once again, running wild -- but looks can be deceiving.
Image source: Getty Images.
Breadth for Wall Street's benchmark stock index is potentially worrisome
For months, I've looked at a broad assortment of stock market indicators, financial metrics, and valuation tools to offer insight as to where stocks may head next. Even though there's no such thing as a foolproof indicator, history has a way of repeating itself on Wall Street, and these indicators and metrics have the potential to give investors who follow them a leg up.
With the S&P 500 hitting a nine-month high this past week, it would appear the worst of the 2022 bear market is over. However, a closer look at the breadth within the S&P 500 reveals a different story.
During a true bull market, we typically see a wide assortment of stocks take part in the upside. This means large-cap, mid-cap, and small-cap stocks from most sectors and industries are going to be rallying. But as you can see in the tweet below from Michael Kantro, the Chief Marketing Strategist at Piper Sandler, the S&P 500 seems to have a clear breadth problem.
Lowest number of S&P 500 stocks beating the "market" $SPY since March 2000. pic.twitter.com/QXpwnPzQ1j
-- Kantro (@MichaelKantro) May 25, 2023
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In 2021, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) were regularly notching off new all-time closing highs. Just one year later, in 2022, all three indexes were mired in a bear market and delivering their worst full-year returns since the global financial crisis. Though the Dow, which outperformed the two other major stock indexes in 2022, is effectively flat on a year-to-date basis, through May 29, the S&P 500 and Nasdaq Composite have surged 9.5% and 24%, respectively.
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Regardless of how long you've been investing, the pace of change on Wall Street is something to marvel at. Breadth for Wall Street's benchmark stock index is potentially worrisome For months, I've looked at a broad assortment of stock market indicators, financial metrics, and valuation tools to offer insight as to where stocks may head next. Even though there's no such thing as a foolproof indicator, history has a way of repeating itself on Wall Street, and these indicators and metrics have the potential to give investors who follow them a leg up.
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Just one year later, in 2022, all three indexes were mired in a bear market and delivering their worst full-year returns since the global financial crisis. Breadth for Wall Street's benchmark stock index is potentially worrisome For months, I've looked at a broad assortment of stock market indicators, financial metrics, and valuation tools to offer insight as to where stocks may head next. During a true bull market, we typically see a wide assortment of stocks take part in the upside.
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Just one year later, in 2022, all three indexes were mired in a bear market and delivering their worst full-year returns since the global financial crisis. Breadth for Wall Street's benchmark stock index is potentially worrisome For months, I've looked at a broad assortment of stock market indicators, financial metrics, and valuation tools to offer insight as to where stocks may head next. During a true bull market, we typically see a wide assortment of stocks take part in the upside.
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15618.0
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2023-05-30 00:00:00 UTC
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Nvidia set to become first US chipmaker valued at over $1 trillion
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AAPL
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https://www.nasdaq.com/articles/nvidia-set-to-become-first-us-chipmaker-valued-at-over-%241-trillion
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Updates shares in paragraph 2, adds background on company and other trillion dollar companies in paragraphs 3-5
May 30 (Reuters) - Nvidia Corp NVDA.O was on track on Tuesday to breach $1 trillion in market capitalization for the first time, making it the first U.S. chipmaker to join the trillion-dollar club.
The company's shares were last up 3.8% at $404.17 in premarket trading.
Meta, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O are the other U.S. companies that are part of the club.
AI took center stage after Nvidia stunned investors with a revenue forecast that surpassed analysts' expectations by more than 50%.
The Philadelphia SE Semiconductor index .SOX closed at its highest in over a year last week after Nvidia's stellar results powered other chipmakers higher.
(Reporting by Medha Singh and Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)
((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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Meta, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O are the other U.S. companies that are part of the club. AI took center stage after Nvidia stunned investors with a revenue forecast that surpassed analysts' expectations by more than 50%. The Philadelphia SE Semiconductor index .SOX closed at its highest in over a year last week after Nvidia's stellar results powered other chipmakers higher.
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Meta, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O are the other U.S. companies that are part of the club. Updates shares in paragraph 2, adds background on company and other trillion dollar companies in paragraphs 3-5 May 30 (Reuters) - Nvidia Corp NVDA.O was on track on Tuesday to breach $1 trillion in market capitalization for the first time, making it the first U.S. chipmaker to join the trillion-dollar club. The company's shares were last up 3.8% at $404.17 in premarket trading.
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Meta, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O are the other U.S. companies that are part of the club. Updates shares in paragraph 2, adds background on company and other trillion dollar companies in paragraphs 3-5 May 30 (Reuters) - Nvidia Corp NVDA.O was on track on Tuesday to breach $1 trillion in market capitalization for the first time, making it the first U.S. chipmaker to join the trillion-dollar club. (Reporting by Medha Singh and Akash Sriram in Bengaluru; Editing by Shounak Dasgupta) ((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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Meta, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O are the other U.S. companies that are part of the club. Updates shares in paragraph 2, adds background on company and other trillion dollar companies in paragraphs 3-5 May 30 (Reuters) - Nvidia Corp NVDA.O was on track on Tuesday to breach $1 trillion in market capitalization for the first time, making it the first U.S. chipmaker to join the trillion-dollar club. The company's shares were last up 3.8% at $404.17 in premarket trading.
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15619.0
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2023-05-30 00:00:00 UTC
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Prediction: These 6 AI Stocks Will Be Worth a Combined $20 Trillion by 2030
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-these-6-ai-stocks-will-be-worth-a-combined-%2420-trillion-by-2030
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Artificial intelligence (AI) is hot right now. Some might argue that it's too hot.
The valuations of many of the biggest AI leaders have skyrocketed so far this year, but there's still a lot of room for them to run over the next few years. My prediction is that six AI stocks will be worth a combined $20 trillion or more by 2030.
AI's big six
It's no coincidence that 6 out of the 7 biggest stocks based on market cap that trade on U.S. exchanges have a major focus on AI. These big six of AI are:
STOCK MARKET CAP
Apple (NASDAQ: AAPL) $2.7 trillion
Microsoft (NASDAQ: MSFT) $2.4 trillion
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion
Amazon (NASDAQ: AMZN) $1.2 trillion
Nvidia (NASDAQ: NVDA) $934 billion
Meta Platforms (NASDAQ: META) $648 billion
Data source: Google Finance. Market caps as of May 26, 2023.
Nvidia has been a monster winner so far this year. The company's guidance in its first-quarter update absolutely stunned investors. Nvidia expects its Q2 revenue to jump 64% year over year, thanks to the soaring demand for AI chips.
Meta Platforms is another shooting star of 2023. Its stock has more than doubled. The AI fervor has helped tremendously, but Meta also beat expectations with its Q1 results, thanks to renewed growth in advertising on its social media platforms.
All of the other big six AI stocks have delivered year-to-date gains of over 30%. Alphabet has been the best performer of the four, with shares rising almost 40%. The company seemed to be initially caught off guard by the launch of OpenAI's ChatGPT but quickly responded with its own products.
Investors applauded Microsoft's rapid moves to integrate OpenAI's technology into its products. Amazon introduced several new generative AI tools in recent months. And while Apple appears to be lagging in its public AI advances, its stock has still benefited from the AI tailwinds.
How they'll get to $20 trillion
Currently, the combined market cap of the six top AI stocks totals around $9.5 trillion. How can they get to $20 trillion by 2030? Their paths will vary.
First, it's important to note that AI isn't the only growth driver for any of these stocks. For example, Apple's iPhone ecosystem and Amazon's e-commerce platform would almost certainly grow significantly throughout the rest of the decade, even without an AI boom.
But AI should provide a massive tailwind for all six top AI stocks. Amazon, Alphabet, and Microsoft stand to especially benefit because all three companies are major cloud services providers. The increased adoption of AI will almost certainly push more organizations to the cloud over the next seven years.
Nvidia should also continue to be a key beneficiary of the AI revolution. The company's graphics processing units (GPUs) remain the go-to option for running servers that power AI apps. Nvidia doesn't just have chips, though; it has a full-blown AI platform, including software, models, and services.
Meta could have an AI advantage that's hiding in plain sight. The company is open-sourcing its AI technology. CEO Mark Zuckerberg thinks this strategy will put Meta at the center of future AI development.
What about Apple, the seeming laggard in the AI race? CEO Tim Cook said in the tech-giant's latest quarterly conference call that the company will "continue weaving [AI] in our products on a very thoughtful basis."
What could get in the way
Lots of predictions ultimately don't come true, and mine could be one of them. There are several things that could potentially get in the way of these six AI stocks reaching a combined market cap of $20 trillion by 2030.
A severe and prolonged economic downturn ranks at the top of the list. All of these big companies would likely be negatively affected by a major recession, and their share prices would reflect that impact.
Significant AI advances might not come as quickly and easily as many expect. As a result, the scramble to use AI could slow instead of accelerate. This scenario would especially hurt the share price of Nvidia, which is arguably in bubble territory already.
We can't rule out the possibility that other companies will rise to the top of the AI world and disrupt the business models of the current tech giants. Bill Gates even thinks that forthcoming AI personal digital assistants could spell doom for Amazon's online shopping and Google Search. He believes there's a 50% chance that the disruptive technology will come from a start-up.
Still, I'm sticking with my prediction. I expect that these six AI stocks really will together be worth at least $20 trillion by 2030. I hope I'm right; I own all six stocks.
10 stocks we like better than Apple
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) $2.7 trillion Microsoft (NASDAQ: MSFT) $2.4 trillion Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion Amazon (NASDAQ: AMZN) $1.2 trillion Nvidia (NASDAQ: NVDA) $934 billion Meta Platforms (NASDAQ: META) $648 billion Data source: Google Finance. CEO Tim Cook said in the tech-giant's latest quarterly conference call that the company will "continue weaving [AI] in our products on a very thoughtful basis." We can't rule out the possibility that other companies will rise to the top of the AI world and disrupt the business models of the current tech giants.
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Apple (NASDAQ: AAPL) $2.7 trillion Microsoft (NASDAQ: MSFT) $2.4 trillion Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion Amazon (NASDAQ: AMZN) $1.2 trillion Nvidia (NASDAQ: NVDA) $934 billion Meta Platforms (NASDAQ: META) $648 billion Data source: Google Finance. See the 10 stocks *Stock Advisor returns as of May 22, 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, Meta Platforms, Microsoft, and Nvidia.
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Apple (NASDAQ: AAPL) $2.7 trillion Microsoft (NASDAQ: MSFT) $2.4 trillion Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion Amazon (NASDAQ: AMZN) $1.2 trillion Nvidia (NASDAQ: NVDA) $934 billion Meta Platforms (NASDAQ: META) $648 billion Data source: Google Finance. AI's big six It's no coincidence that 6 out of the 7 biggest stocks based on market cap that trade on U.S. exchanges have a major focus on AI. But AI should provide a massive tailwind for all six top AI stocks.
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Apple (NASDAQ: AAPL) $2.7 trillion Microsoft (NASDAQ: MSFT) $2.4 trillion Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion Amazon (NASDAQ: AMZN) $1.2 trillion Nvidia (NASDAQ: NVDA) $934 billion Meta Platforms (NASDAQ: META) $648 billion Data source: Google Finance. I expect that these six AI stocks really will together be worth at least $20 trillion by 2030. * 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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15620.0
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2023-05-30 00:00:00 UTC
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Nvidia, Alphabet, Apple, Meta and Microsoft are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/nvidia-alphabet-apple-meta-and-microsoft-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – May 30, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Meta META.
Q1 Earnings: Can A.I. Sustain Momentum?
The analysts covering Nvidia are struggling to come up with superlatives to describe the chipmaker’s blockbuster quarterly results. Coming into Nvidia’s May 26th quarterly numbers, many analysts saw some upside to consensus estimates, given the company’s AI leverage. But the stock had already doubled this year before the Wednesday release on those AI hopes.
It is humbling to acknowledge that I thought the stock was ‘priced for perfection’ and was skeptical that Nvidia could do anything in the quarterly numbers that could satisfy those lofty expectations. Keep in mind that we fall in the Nvidia ‘fan club,’ having held the stock in the Zacks Focus List portfolio since May 2019.
The stock’s performance since the quarterly release is in a class of its own, and for good reasons. In the current uncertain macroeconomic environment, Nvidia raised Q2 revenue guidance by more than +50% on the back of robust data-center demand reflecting momentum in generative AI and large language models. Importantly, Nvidia indicated a high degree of visibility in these demand trends over the coming quarters.
There are legitimate questions as to how sustainable this growth trajectory will prove to be and whether Nvidia will be able to protect its first-mover advantage as the competitive landscape heats up over time.
We have all glimpsed the potential of generative AI by playing around with ChatGPT and Google Bard, allowing us to envision this technology’s ability to enhance efficiencies. But it is reasonable to be skeptical of both the trillions of dollars in TAMs that the AI revolution will unleash or the emerging talk of an ‘AI bubble.’
Nvidia is hardly alone in riding the AI wave, with Microsoft and Alphabet already duking it out for primacy. Alphabet’s earlier AI efforts didn’t impress the market much, and many had started thinking that Microsoft may be able to leverage AI to open up Alphabet’s hold on the search market. But Alphabet appears to have found its mojo back, as the stock’s recent performance shows.
The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple and Meta, in addition to Microsoft and Alphabet, has steadily improved lately. Total Q1 earnings for the group were essentially flat (down -0.4%) on +4.3% higher revenues.
The growth outlook starts improving from the current period (2023 Q2) onwards, with earnings expected to be up +8.9% on +4.9% higher revenues.
Q1 Earnings Season Scorecard
Including all the quarterly reports that came out through Friday, May 26th, we now have Q1 earnings from 486 S&P 500 members, or 97.2% of the index’s total membership. Total earnings for these companies are down -3.7% from the same period last year on +4.5% higher revenues, with 78.2% beating EPS estimates and 75.1% beating revenue estimates.
The proportion of these companies beating both EPS and revenue estimates is 63.2%.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q1 earnings season as good enough; not great, but not bad, either.
With this reporting cycle now largely behind us, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears warned us of.
The way we see it, the ‘better-than-feared’ view of the Q1 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We have about 100 companies on deck to report results, including 9 S&P 500 members. This week’s docket includes Salesforce.com, Macy’s, Broadcom, Lululemon, Dollar General, and others.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Outlook Reflects Stability
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week’s list includes Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In the current uncertain macroeconomic environment, Nvidia raised Q2 revenue guidance by more than +50% on the back of robust data-center demand reflecting momentum in generative AI and large language models.
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This week’s list includes Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for these companies are down -3.7% from the same period last year on +4.5% higher revenues, with 78.2% beating EPS estimates and 75.1% beating revenue estimates.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Meta META. For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Outlook Reflects Stability Why Haven’t You Looked at Zacks' Top Stocks?
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This week’s list includes Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Q1 Earnings: Can A.I.
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15621.0
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2023-05-30 00:00:00 UTC
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If Apple Does This 1 Thing, These 2 Cryptos Could Soar
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AAPL
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https://www.nasdaq.com/articles/if-apple-does-this-1-thing-these-2-cryptos-could-soar
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By now, everyone knows that Apple (NASDAQ: AAPL) is working on a mixed-reality headset that combines elements of virtual reality (VR) and augmented reality (AR). This headset, representing the company's first major product release since the Apple Watch in 2015, could be unveiled as soon as June 5 at the company's Worldwide Developers Conference (WWDC).
While the unveiling of the new headset would indeed be big news for Apple, it might be even bigger news for metaverse cryptos, which rallied earlier this year when rumors first began to surface about Apple's headset. So could an even bigger rally occur if Apple actually releases its new headset this summer?
Decentraland and The Sandbox
The two biggest beneficiaries of any metaverse crypto rally would be Decentraland (CRYPTO: MANA) and The Sandbox (CRYPTO: SAND). By market capitalization, these are two of the biggest metaverse cryptos and have been the focus of investor attention since the concept of the metaverse first broke into the mainstream in 2021.
Image source: Getty Images.
At that time, brands viewed metaverse worlds as a way to connect with digitally savvy customers and spent millions to create their own presence in these worlds. Investors snatched up parcels of virtual land, convinced that being part of the virtual land grab in these worlds was the path to future riches. However, neither Decentraland nor The Sandbox has ever been able to grow their user bases to the size and scale once predicted.
As a result, the price performance of these two metaverse cryptos has been abysmal, to say the least. While Decentraland is up 52% and The Sandbox is up 29% in 2023, that's really just a dead cat bounce. Decentraland is still trading at 92% below its all-time high of $5.90 reached in November 2021. And The Sandbox is trading at 94% below its all-time high of $8.44.
What to look for with Apple
If Apple does announce a new mixed-reality headset at WWDC (the company's big shindig for developers), there are several things to look for. One, of course, is whether Apple actually uses the word "metaverse" in its launch presentation. If it does, that's a huge positive for metaverse cryptos. But given all the problems Meta Platforms has had with launching metaverse initiatives and the skepticism surrounding the term "metaverse" in general, it would be no surprise to anyone if Apple prefers to use terms like mixed-reality and VR.
The second thing to watch for is whether Apple launches its own metaverse world (the Appleverse?) for users of its mixed-reality headset. That would be a tremendous boost to the concept of stand-alone metaverse worlds. It would also be evidence that Decentraland and The Sandbox, though they couldn't make things work the first time, might be able to learn from Apple and come up with a much better user experience.
Right now, the consensus seems to be that Apple will focus on areas such as gaming, fitness, and sports. So these might be areas that Decentraland and The Sandbox could target for metaverse experiences.
A third factor to watch is the cost of the headset. This has always been one of the biggest knocks against VR headsets: They are just too expensive for the average consumer. Sure, hardcore gamers might be willing to shell out several thousand dollars for a premium VR experience, but who else is willing to do that? Apple has already sold us on the concept of the $1,000 phone, so this is probably the upper range of what most consumers would consider affordable.
Should you buy metaverse cryptos?
That being said, that Apple is actually thinking about getting involved in the metaverse is almost certain to boost the fortunes of metaverse cryptos. It might sound simplistic, but it's really just a case of a rising tide lifting all boats. If Apple can make the metaverse work at a relatively affordable cost, it will lift the fortunes of existing metaverse worlds.
Keep in mind that there is still plenty of money sloshing around the crypto markets that might decide to move into the metaverse. Right now, crypto investors are piling into highly speculative meme tokens. If Apple announces a mixed-reality headset, these same investors might be tempted to move that money into Decentraland and The Sandbox.
Of course, that's just the short-term case for investing in metaverse cryptos. Long term, there might be a rehabilitation of the metaverse concept and a rethinking of how to do the metaverse right. Maybe the best approach is based around a single niche segment rather than an entirely new world.
For now, I'm in wait-and-see mode. First, I want to see what Apple actually announces. Then, I'll see how that dovetails with what Decentraland and The Sandbox currently offer. In a best-case scenario, the new mixed-reality headset could be integrated into these metaverse worlds. That would be a tremendously bullish buy signal.
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 22, 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. Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By now, everyone knows that Apple (NASDAQ: AAPL) is working on a mixed-reality headset that combines elements of virtual reality (VR) and augmented reality (AR). It would also be evidence that Decentraland and The Sandbox, though they couldn't make things work the first time, might be able to learn from Apple and come up with a much better user experience. If Apple announces a mixed-reality headset, these same investors might be tempted to move that money into Decentraland and The Sandbox.
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By now, everyone knows that Apple (NASDAQ: AAPL) is working on a mixed-reality headset that combines elements of virtual reality (VR) and augmented reality (AR). Decentraland and The Sandbox The two biggest beneficiaries of any metaverse crypto rally would be Decentraland (CRYPTO: MANA) and The Sandbox (CRYPTO: SAND). What to look for with Apple If Apple does announce a new mixed-reality headset at WWDC (the company's big shindig for developers), there are several things to look for.
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By now, everyone knows that Apple (NASDAQ: AAPL) is working on a mixed-reality headset that combines elements of virtual reality (VR) and augmented reality (AR). While the unveiling of the new headset would indeed be big news for Apple, it might be even bigger news for metaverse cryptos, which rallied earlier this year when rumors first began to surface about Apple's headset. Decentraland and The Sandbox The two biggest beneficiaries of any metaverse crypto rally would be Decentraland (CRYPTO: MANA) and The Sandbox (CRYPTO: SAND).
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By now, everyone knows that Apple (NASDAQ: AAPL) is working on a mixed-reality headset that combines elements of virtual reality (VR) and augmented reality (AR). Decentraland and The Sandbox The two biggest beneficiaries of any metaverse crypto rally would be Decentraland (CRYPTO: MANA) and The Sandbox (CRYPTO: SAND). By market capitalization, these are two of the biggest metaverse cryptos and have been the focus of investor attention since the concept of the metaverse first broke into the mainstream in 2021.
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15622.0
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2023-05-30 00:00:00 UTC
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2 Warren Buffett AI Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-ai-stocks-to-buy-right-now
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nan
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nan
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Berkshire Hathaway CEO Warren Buffett might not be the first name you think of when it comes to cutting edge artificial-intelligence (AI) investments. But while the famously successful moneyman is best known as a value-investing guru, his company also has holdings in promising tech companies that are on track to play big roles in the AI revolution.
If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves.
Playing the long game with Snowflake
Keith Noonan: Snowflake is a provider of big-data analytics tools that have been built from the ground up to power the evolution of machine-learning and AI applications. The company's data-warehousing platform makes it possible to combine and analyze information from disparate cloud infrastructure services, and the software specialist also provides tools for sharing and monetizing data and a platform for building heavily analytics-focused applications.
While the company has seen some volatile trading since it went public in September 2020, it has the distinction of being the only stock to have been purchased at its initial public offering by Berkshire Hathaway, and shares look like a smart buy on the heels of a sell-off following its most recent earnings report.
Snowflake's results for the first quarter of its 2024 fiscal year, which ended April 30, actually crushed the market's expectations. Product revenue increased 50% year over year to reach $590.1 million, and adjusted free cash flow surged 46% to hit $286.9 million.
On the other hand, the company cut its full-year revenue guidance from approximately $2.7 billion to $2.6 billion, and it lowered its projected margin for adjusted operating income from 6% to 5%.
The guidance cut sent the stock of the data-service company tumbling. Following the recent pullback, the software specialist's share price is now down roughly 63% from its high.
With macroeconomic pressures already hitting and many analysts and economists forecasting that the U.S. will slip into recession this year or next, Snowflake has seen customers become more hesitant about entering into multiyear contracts. But even with these headwinds expected to lead to some lumpier growth, the company still thinks it will reach its target of $10 billion in product revenue for its 2029 fiscal year.
The company's data-warehousing and app-building services could play a key role in the AI revolution, and Snowflake stock still looks like one of the most intriguing growth plays in the Berkshire portfolio. For risk-tolerant investors, I think shares will prove to be a smart buy at today's prices.
AI can make Apple's products even more desirable
Parkev Tatevosian: Apple is one of Buffett's largest holdings. The tech company is also one that stands to benefit from the rise in the effectiveness of AI. Apple's devices are some of the most popular in the world. The iPhone, Mac computers, iPads, and Apple Watches could become even more desirable when fueled by artificial intelligence.
Apple's sales increased from $171 billion in 2012 to $394 billion in 2022. Imagine how many more people would buy Apple's devices if its chat assistant Siri was more helpful.
Regardless, people will need more tech hardware to interact with any AI-infused product, even if Apple is only the hardware and not the software used. Judging by Apple's massive revenue base, it stands to be one of the prime beneficiaries of a surge in demand for tech hardware like smartphones or tablets.
AAPL P/E ratio (forward 1-year) data by YCharts. P/E = price to earnings.
Apple has already proved it can deliver excellent profits on a large scale. Indeed, its operating income soared from $49 billion to $119 billion in 2022. And unlike many other businesses that could benefit from AI, the stock is not pricing in all the hype. At a forward price-to-earnings (P/E) ratio of 27, it is not very expensive. Looking across Buffett's portfolio, Apple is my favorite AI stock to buy now.
AI is a huge opportunity for investors
Artificial-intelligence technologies have made incredible leaps forward over the last year, but the AI revolution is just beginning to unfold. While they have very different kinds of exposure to unfolding AI trends, Snowflake and Apple both stand out as worthwhile investments for those looking to capitalize on what will likely wind up being this century's most important technological shift.
These stocks may see some volatile trading in the near term owing to macroeconomic and business-specific conditions, but each has the potential to deliver market-crushing returns for shareholders.
10 stocks we like better than Snowflake
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Snowflake 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 22, 2023
Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, 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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If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves. AAPL P/E ratio (forward 1-year) data by YCharts. With macroeconomic pressures already hitting and many analysts and economists forecasting that the U.S. will slip into recession this year or next, Snowflake has seen customers become more hesitant about entering into multiyear contracts.
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If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves. AAPL P/E ratio (forward 1-year) data by YCharts. Product revenue increased 50% year over year to reach $590.1 million, and adjusted free cash flow surged 46% to hit $286.9 million.
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If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves. AAPL P/E ratio (forward 1-year) data by YCharts. The company's data-warehousing and app-building services could play a key role in the AI revolution, and Snowflake stock still looks like one of the most intriguing growth plays in the Berkshire portfolio.
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If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves. AAPL P/E ratio (forward 1-year) data by YCharts. For risk-tolerant investors, I think shares will prove to be a smart buy at today's prices.
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15623.0
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2023-05-30 00:00:00 UTC
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10x Potential: This Warren Buffett Growth Stock Could Crush the Market
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AAPL
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https://www.nasdaq.com/articles/10x-potential%3A-this-warren-buffett-growth-stock-could-crush-the-market
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nan
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nan
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If you want to know what Berkshire Hathaway CEO Warren Buffett's favorite stock is, you don't have to look hard to find the answer. The investment conglomerate publishes filings after each quarter that break down its equity holdings, and its portfolio weighting allocations make it clear that one company stands above the rest.
Accounting for a staggering 47.5% of Berkshire's equity holdings, Apple (NASDAQ: AAPL) stock has received a stunning vote of confidence from the Oracle of Omaha. It's not hard to see why the famous investor is so enamored with the tech giant. Thanks to its incredibly successful smartphone business, other successful hardware, and high-margin software-and-services business, Apple frequently ranks as the world's most profitable company, and it has seen incredible stock performance over the last decade.
AAPL Total Return Level data by YCharts
Through a combination of incredible share price gains and dividend payments, Apple has delivered total returns of more than 1,150% over the last 10 years -- and its roughly $2.7 trillion market capitalization makes it the world's largest company.
At such a massive size, delivering 10x returns again within this lifetime could be an impossibly tall order for the tech giant, but there are some much smaller companies in the Berkshire portfolio that have the potential to deliver gains on that level within the next decade -- or sooner. If you're on the hunt for explosive growth opportunities, here's a look at one Buffett-backed stock I think can 10x by 2030.
Down 87%, this company is poised for a comeback
StoneCo (NASDAQ: STNE) is a Brazil-based fintech company that provides payment-processing services for small- and medium-sized businesses (SMBs). It also has an SMB-oriented lending business and a unit specialized in software for retail and e-commerce business management.
Early in 2021, the company had a market capitalization of more than $28.5 billion, and its stock climbed to $94 per share. Today, the company has a market cap of approximately $4 billion, and its stock trades at about $13 per share.
Why did StoneCo's stock collapse so dramatically? For starters, the company's peak market cap was at the height of a bullish run for smaller, growth-dependent tech companies. The valuation picture changed quickly after that point.
As pressures from the coronavirus pandemic dragged on and inflation started to rise, StoneCo faced a slew of challenges. Fintech businesses were generally hit hard by the macroeconomic headwinds, and the company's credit unit got crushed by the shifting conditions. StoneCo had relied on Brazil's national registry system to assess whether loan applicants were creditworthy, but many of the businesses it loaned to wound up going out of business -- quickly pushing the value of the company's loan book into negative territory.
StoneCo took a big loss on its credit business and temporarily paused lending. But the company is now in the early stages of relaunching the unit, and its core payments business has continued to put up great results. This beaten-down stock has huge rebound potential.
A little-known fintech that can deliver huge returns
StoneCo grew revenue 31% year over year in the first quarter to reach 2.7 billion Brazilian reals -- or approximately $540 million. Meanwhile, non-GAAP (adjusted) net income grew 5.6 times to reach 237 million reals ($47.3 million).
Total payment volume conducted across the company's platform grew 25% compared to the prior-year period and came in more than two times higher than the industry growth rate. StoneCo added 232,000 net new payments customers in the quarter and ended the period with its merchant partner base up 47% year over year. The fintech company is gaining payments market share at an encouraging pace, and its growth could still just be heating up.
It's even possible that the credit business will bounce back and once again become a positive business contributor. After pausing new credit disbursements in 2021 and taking last year to focus on reorienting the business, StoneCo started issuing new loans on a small scale again early in 2023.
STNE PE Ratio (Forward) data by YCharts
Valued at less than 18 times this year's expected earnings and less than 1.7 times expected sales, StoneCo looks downright cheap in the context of its strong sales and earnings growth and long-term expansion potential.
Compared to many other countries, the adoption for card- and app-based payments and e-commerce remains at a much earlier stage in Brazil. But growth in these categories is heating up quickly. With a population of more than 217 million people, the country presents a large addressable market, and StoneCo may have opportunities to expand its services in other Latin American countries.
StoneCo appears to be on track for strong sales and earnings growth through the end of the decade. Provided that macroeconomic conditions improve and fintech stocks broadly regain favor with investors at some point, I think the stock has a shot at delivering 10x returns by 2030.
10 stocks we like better than StoneCo
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 StoneCo 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
Keith Noonan has positions in StoneCo. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and StoneCo. 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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Accounting for a staggering 47.5% of Berkshire's equity holdings, Apple (NASDAQ: AAPL) stock has received a stunning vote of confidence from the Oracle of Omaha. AAPL Total Return Level data by YCharts Through a combination of incredible share price gains and dividend payments, Apple has delivered total returns of more than 1,150% over the last 10 years -- and its roughly $2.7 trillion market capitalization makes it the world's largest company. The investment conglomerate publishes filings after each quarter that break down its equity holdings, and its portfolio weighting allocations make it clear that one company stands above the rest.
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Accounting for a staggering 47.5% of Berkshire's equity holdings, Apple (NASDAQ: AAPL) stock has received a stunning vote of confidence from the Oracle of Omaha. AAPL Total Return Level data by YCharts Through a combination of incredible share price gains and dividend payments, Apple has delivered total returns of more than 1,150% over the last 10 years -- and its roughly $2.7 trillion market capitalization makes it the world's largest company. A little-known fintech that can deliver huge returns StoneCo grew revenue 31% year over year in the first quarter to reach 2.7 billion Brazilian reals -- or approximately $540 million.
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AAPL Total Return Level data by YCharts Through a combination of incredible share price gains and dividend payments, Apple has delivered total returns of more than 1,150% over the last 10 years -- and its roughly $2.7 trillion market capitalization makes it the world's largest company. Accounting for a staggering 47.5% of Berkshire's equity holdings, Apple (NASDAQ: AAPL) stock has received a stunning vote of confidence from the Oracle of Omaha. Thanks to its incredibly successful smartphone business, other successful hardware, and high-margin software-and-services business, Apple frequently ranks as the world's most profitable company, and it has seen incredible stock performance over the last decade.
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Accounting for a staggering 47.5% of Berkshire's equity holdings, Apple (NASDAQ: AAPL) stock has received a stunning vote of confidence from the Oracle of Omaha. AAPL Total Return Level data by YCharts Through a combination of incredible share price gains and dividend payments, Apple has delivered total returns of more than 1,150% over the last 10 years -- and its roughly $2.7 trillion market capitalization makes it the world's largest company. A little-known fintech that can deliver huge returns StoneCo grew revenue 31% year over year in the first quarter to reach 2.7 billion Brazilian reals -- or approximately $540 million.
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15624.0
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2023-05-30 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-7
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nan
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nan
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The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.12 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.44%.
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 in the Information Technology sector--about 64% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 53.01% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech Sector ETF return is roughly 33.76% so far, and was up about 14.55% over the last 12 months (as of 05/30/2023). IGM has traded between $266.47 and $374.18 in this past 52-week period.
The ETF has a beta of 1.18 and standard deviation of 27.10% for the trailing three-year period, making it a medium risk choice in the space. With about 332 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector 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, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $47.09 billion in assets, Vanguard Information Technology ETF has $50.16 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Expanded Tech Sector ETF (IGM): 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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.12 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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15625.0
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2023-05-29 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-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. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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
The fund is managed by Wisdomtree, and has been able to amass over $8.51 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
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.
Annual operating expenses for DGRW are 0.28%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.09%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 28.30% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Staples and Industrials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ).
DGRW's top 10 holdings account for about 35.12% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Quality Dividend Growth ETF return is roughly 5.38% so far, and was up about 5.86% over the last 12 months (as of 05/29/2023). DGRW has traded between $53.91 and $63.54 in this past 52-week period.
The ETF has a beta of 0.88 and standard deviation of 15.66% for the trailing three-year period, making it a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.76 billion in assets, Vanguard Dividend Appreciation ETF has $65.60 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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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. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): 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. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): 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. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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15626.0
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2023-05-29 00:00:00 UTC
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Top Tech Stocks To Buy Now? 2 To Watch
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AAPL
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https://www.nasdaq.com/articles/top-tech-stocks-to-buy-now-2-to-watch
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nan
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nan
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Imagine if you could buy a piece of the companies that make your favorite smartphone apps, video games, or even your computer’s operating system. Well, that’s precisely what investing in tech stocks is all about. The technology sector comprises companies that are involved in the creation, development, and distribution of technological products and services.
You’ve probably heard the phrase ‘tech is the future’, right? Well, it’s not just a catchy saying. In the stock market, technology companies are often the ones pushing the boundaries and driving significant growth. They’re creating and improving things like artificial intelligence, cloud computing, and data storage. These technologies are changing the way we live and work, and in doing so, are creating substantial financial value. This makes the tech sector a popular choice for investors looking for ‘growth stocks’—companies expected to grow at an above-average rate compared to other companies in the market.
However, like any investment, tech stocks come with their own set of risks. The technology sector is highly competitive and fast-paced, meaning companies have to continuously innovate to stay relevant. Also, because a lot of the value in tech companies is based on future growth, these stocks can be more sensitive to market changes and speculation. But despite these risks, many investors are drawn to the tech sector due to its significant growth potential and its role in shaping the future. With that, here are two tech stocks to watch in the stock market this week.
Tech Stocks To Invest In [Or Avoid] Right Now
Apple Inc. (NASDAQ: AAPL)
Microsoft Corporation (NASDAQ: MSFT)
Apple (AAPL Stock)
Leading off, Apple (AAPL) is one of the most influential tech companies globally. Known for its broad range of consumer electronics and services. Best known for the iPhone, Apple also produces devices like the iPad, Mac computers, and wearable tech like the Apple Watch. Additionally, they provide services such as the App Store, Apple Music, and iCloud.
Earlier this month, Apple announced better-than-expected second-quarter 2023 financial results. In detail, the company revealed earnings of $1.52 per share, surpassing the predicted estimate of $1.44 per share, on total revenue of $94.8 billion, which exceeded anticipated revenues of $92.9 billion. However, this represented a 2.5% drop in revenue from the same quarter the previous year. Looking forward to the third quarter, the company anticipates a similar decline in revenue to the second quarter, expecting roughly $80.88 billion. Factoring in predicted gross margins of between 44.0% and 44.5%.
Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. Additionally, as of this past Friday’s closing bell, Apple stock is trading at $175.43 a share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch In May 2023
Microsoft (MSFT Stock)
Finally, Microsoft (MSFT) is a global tech giant that has been at the forefront of technology for decades. They are primarily known for their Windows operating system and productivity software suite, Office, which includes Word, Excel, and PowerPoint.
At the end of last month, Microsoft announced its earnings for the third quarter of 2023. In detail, the company posted earnings of $2.45 per share on total revenue of $52.9 billion. This performance exceeded consensus estimates, which anticipated earnings of $2.22 per share and revenue of $51.0 billion. On a year-over-year basis, the company managed to boost its revenue by 7.1%. In its conference call, Microsoft provided projections for the fourth quarter, expecting revenue to be between $54.85 billion and $55.85 billion.
Moreover, over the last month of trading, shares of Microsoft stock have increased by 8.94%. With that, as of this past Friday’s closing bell, MSFT stock is trading at around $332.89 per share.
Source: TD Ameritrade TOS
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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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Tech Stocks To Invest In [Or Avoid] Right Now Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Apple (AAPL Stock) Leading off, Apple (AAPL) is one of the most influential tech companies globally. Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. Imagine if you could buy a piece of the companies that make your favorite smartphone apps, video games, or even your computer’s operating system.
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Tech Stocks To Invest In [Or Avoid] Right Now Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Apple (AAPL Stock) Leading off, Apple (AAPL) is one of the most influential tech companies globally. Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. In detail, the company revealed earnings of $1.52 per share, surpassing the predicted estimate of $1.44 per share, on total revenue of $94.8 billion, which exceeded anticipated revenues of $92.9 billion.
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Tech Stocks To Invest In [Or Avoid] Right Now Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Apple (AAPL Stock) Leading off, Apple (AAPL) is one of the most influential tech companies globally. Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. In detail, the company revealed earnings of $1.52 per share, surpassing the predicted estimate of $1.44 per share, on total revenue of $94.8 billion, which exceeded anticipated revenues of $92.9 billion.
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Tech Stocks To Invest In [Or Avoid] Right Now Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Apple (AAPL Stock) Leading off, Apple (AAPL) is one of the most influential tech companies globally. Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. In detail, the company revealed earnings of $1.52 per share, surpassing the predicted estimate of $1.44 per share, on total revenue of $94.8 billion, which exceeded anticipated revenues of $92.9 billion.
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15627.0
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2023-05-29 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-43
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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
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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15628.0
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2023-05-29 00:00:00 UTC
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Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-growth-etf-iwf-be-on-your-investing-radar-7
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nan
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nan
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Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $66.56 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 42.60% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 45.34% of total assets under management.
Performance and Risk
IWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.
The ETF return is roughly 21.17% so far this year and is up about 12.67% in the last one year (as of 05/29/2023). In the past 52-week period, it has traded between $207.03 and $259.07.
The ETF has a beta of 1.08 and standard deviation of 23.32% for the trailing three-year period, making it a medium risk choice in the space. With about 514 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 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, IWF is a sufficient 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 $87 billion in assets, Invesco QQQ has $186.12 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell 1000 Growth ETF (IWF): 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 12.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 $66.56 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 12.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 12.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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. 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.
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15629.0
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2023-05-29 00:00:00 UTC
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Tech-Focused QQQ ETF Crafts New High; Analysts See Further Upside
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AAPL
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https://www.nasdaq.com/articles/tech-focused-qqq-etf-crafts-new-high-analysts-see-further-upside
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nan
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nan
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The recovery in the share prices of large technology companies and the rally in top chip stocks, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), have driven the Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) higher. Up about 31% year-to-date, QQQ recently crafted a new 52-week high of $349.24. Meanwhile, it has significantly outperformed the broader S&P 500 Index (SPX) by a wide margin. While QQQ has gained in value, analysts see further upside.
Lower valuation, significant cost-cutting measures, improving demand trends, and easing inflation have led to a recovery in tech stocks, pushing the QQQ ETF’s stock price higher. For instance, QQQ tracks the Nasdaq-100 index (NDX), and its top five holdings, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia, Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) have delivered substantial gains in 2023. Refer to the image below for the weightage and performance of its top five holdings so far this year.
What’s the Prediction for QQQ ETF?
On TipRanks, the QQQ ETF has an Outperform Smart Score of eight, suggesting it could continue to outperform the broader market averages. Moreover, the ETF has further upside potential based on the analysts' consensus view of nearly 2K ratings.
Per the recommendations of 1,719 analysts giving stock forecasts for the holdings of QQQ, the 12-month average Invesco QQQ Trust ETF price target of $375.77 implies 7.85% upside potential from current levels. Also, the ETF sports a Moderate Buy consensus rating on TipRanks.
Among the analysts providing ratings on its holdings, 66.96% have given a Buy rating, 29.20% have assigned a Hold rating, and 3.84% have given a Sell rating.
Bottom Line
QQQ offers exposure to the top tech stocks with diversification, thus reducing your overall risk. Meanwhile, its market-beating returns, analysts’ optimistic outlook, and low expense ratio make it an attractive tech-focused ETF.
While QQQ has registered significant gains this year, it has lagged behind this tech ETF.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For instance, QQQ tracks the Nasdaq-100 index (NDX), and its top five holdings, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia, Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) have delivered substantial gains in 2023. The recovery in the share prices of large technology companies and the rally in top chip stocks, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), have driven the Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) higher. Bottom Line QQQ offers exposure to the top tech stocks with diversification, thus reducing your overall risk.
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For instance, QQQ tracks the Nasdaq-100 index (NDX), and its top five holdings, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia, Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) have delivered substantial gains in 2023. The recovery in the share prices of large technology companies and the rally in top chip stocks, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), have driven the Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) higher. Lower valuation, significant cost-cutting measures, improving demand trends, and easing inflation have led to a recovery in tech stocks, pushing the QQQ ETF’s stock price higher.
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For instance, QQQ tracks the Nasdaq-100 index (NDX), and its top five holdings, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia, Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) have delivered substantial gains in 2023. The recovery in the share prices of large technology companies and the rally in top chip stocks, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), have driven the Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) higher. Per the recommendations of 1,719 analysts giving stock forecasts for the holdings of QQQ, the 12-month average Invesco QQQ Trust ETF price target of $375.77 implies 7.85% upside potential from current levels.
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For instance, QQQ tracks the Nasdaq-100 index (NDX), and its top five holdings, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia, Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) have delivered substantial gains in 2023. Lower valuation, significant cost-cutting measures, improving demand trends, and easing inflation have led to a recovery in tech stocks, pushing the QQQ ETF’s stock price higher. Moreover, the ETF has further upside potential based on the analysts' consensus view of nearly 2K ratings.
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15630.0
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2023-05-29 00:00:00 UTC
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Like Passive Income? Buy These No-Brainer Warren Buffett Stocks
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AAPL
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https://www.nasdaq.com/articles/like-passive-income-buy-these-no-brainer-warren-buffett-stocks-0
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nan
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nan
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Warren Buffett has long advocated dividend stocks. Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. Buffett's affinity for dividend stocks reflects his preference for companies that exhibit strong fundamentals, generate consistent profits, and distribute a portion of their earnings to shareholders.
Here are three stocks that make up roughly 58% of Berkshire's portfolio and could provide you with a lifetime of passive income.
1. Apple
During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio.
The largest tech company in the world has paid and raised its dividend every year since 2012. Its current quarterly payout is $0.24 per share, generating a yield of 0.55%.
Beyond its dividend, Apple returns an extraordinary amount of capital to shareholders through share repurchases. Over the past five years, the company has lowered its split-adjusted share count from roughly 20 billion to 15.8 billion, a decrease of 21%.
This aggressive capital allocation strategy constantly removes shares from circulation, making existing shares more valuable. It recently announced the authorization of $90 billion in share repurchases in addition to its $23 billion program.
Image source: Getty Images.
If Apple stock has a downside, it's unquestionably the valuation. The price-to-earnings (P/E) ratio is roughly 29, exceeding its five-year average of 24.7. Still, the high valuation stems from its remarkable performance; it has handily beaten the S&P 500 over the past 12 months as well as the previous three, five, and 10 years.
2. Coca-Cola
Buffett hasn't bought a share of Coca-Cola (NYSE: KO) since 1994, but it remains one of his favorite investments. Here's why: In 1994, Berkshire completed its $1.3 billion investment into the company. Since then, that investment has grown to $25 billion, and Berkshire received a remarkable $704 million in 2022 solely from the dividend.
Today, Coca-Cola has a market cap of $263 billion and pays a quarterly dividend of $0.46 per share, representing a yield of roughly 3%, surpassing the S&P 500's 1.6% yield. And it has increased its dividend annually for 61 consecutive years, making it a member of the elite group of Dividend Kings.
The company consistently generates positive free cash flow, underscoring its ability to sustain those dividend payments. For 2023, management guided for $9.5 billion in free cash flow, which will cover its expected $8 billion in dividends.
As for the bear case, Coke has $28 billion in net debt (long-term debt minus cash) and is in an ongoing $3.4 billion tax dispute with the U.S. government. While management feels good about its debt position, it could become a more significant burden if high interest rates persist.
Nonetheless, Coke is an institution worldwide, and it will likely continue its dominance in the soft drink industry for the foreseeable future.
3. Kraft Heinz
Berkshire Hathaway owns roughly 26.5% of Kraft Heinz (NASDAQ: KHC) and has lost billions since it initiated the position in 2015. Still, Buffett has called the food company a "fabulous business" and hasn't sold any shares even though the stock price has fallen and the dividend has been slashed.
So, why does he still believe in Kraft Heinz? It's because the company's products are staples in most households, and it's profitable -- generating $2.4 billion in net income over the trailing 12 months. The company also pays a quarterly dividend of $0.40 per share, for an outsize yield of 4.2%.
As mentioned, Kraft Heinz cut its dividend in 2019 and hasn't raised it since, but that was necessary to pay down its debt. To management's credit, it has done precisely that, lowering its net debt from its peak of roughly $29 billion in 2019 to $19 billion.
Kraft Heinz was ahead of the curve in cutting its debt and is in a better position than companies that are just starting to shore up their balance sheets.
Are these Buffett dividend stocks buys now?
Dividend stocks have a remarkable tendency to exhibit lower volatility than growth stocks and to outperform them as well. These three Warren Buffett stocks present attractive dividend prospects and hold dominant positions within their respective industries, making them worthy additions to any long-term portfolio.
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Collin Brantmeyer has positions in Apple, Berkshire Hathaway, and SPDR S&P 500 ETF Trust. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Buffett's affinity for dividend stocks reflects his preference for companies that exhibit strong fundamentals, generate consistent profits, and distribute a portion of their earnings to shareholders. Still, Buffett has called the food company a "fabulous business" and hasn't sold any shares even though the stock price has fallen and the dividend has been slashed.
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Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. The company consistently generates positive free cash flow, underscoring its ability to sustain those dividend payments.
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Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio.
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Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio.
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15631.0
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2023-05-29 00:00:00 UTC
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Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-8
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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $672.40 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.87%.
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 22.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 29.24% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF return is roughly 7.55% so far this year and it's up approximately 2.98% in the last one year (as of 05/29/2023). In the past 52-week period, it has traded between $38.39 and $46.02.
The ETF has a beta of 1 and standard deviation of 18.07% for the trailing three-year period, making it a medium risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap 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, EPS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $48.52 billion in assets, Vanguard Value ETF has $98.85 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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15632.0
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2023-05-29 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-6
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Making its debut on 09/28/2015, smart beta exchange traded fund John Hancock Multifactor Large Cap ETF (JHML) provides investors broad exposure to the Style Box - Large 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
JHML is managed by John Hancock, and this fund has amassed over $727.80 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.29% for JHML, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.38%.
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.
Representing 22% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
Its top 10 holdings account for approximately 15.01% of JHML's total assets under management.
Performance and Risk
Year-to-date, the John Hancock Multifactor Large Cap ETF has added about 5.71% so far, and is up roughly 2.24% over the last 12 months (as of 05/29/2023). JHML has traded between $45.43 and $54.13 in this past 52-week period.
The ETF has a beta of 1.01 and standard deviation of 18.33% for the trailing three-year period, making it a medium risk choice in the space. With about 771 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $312.89 billion in assets, SPDR S&P 500 ETF has $390.44 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Making its debut on 09/28/2015, smart beta exchange traded fund John Hancock Multifactor Large Cap ETF (JHML) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Making its debut on 09/28/2015, smart beta exchange traded fund John Hancock Multifactor Large Cap ETF (JHML) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 09/28/2015, smart beta exchange traded fund John Hancock Multifactor Large Cap ETF (JHML) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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15633.0
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2023-05-29 00:00:00 UTC
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Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-7
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nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $17.23 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.01%.
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 34.60% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.16% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 42.39% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF return is roughly 14.56% so far this year and is up about 5.44% in the last one year (as of 05/29/2023). In the past 52-week period, it has traded between $49.14 and $61.86.
The ETF has a beta of 1.05 and standard deviation of 22.73% for the trailing three-year period, making it a medium risk choice in the space. With about 233 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 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, SPYG is a sufficient 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 $87 billion in assets, Invesco QQQ has $186.12 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
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.16% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $17.23 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.16% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
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Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.16% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.16% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. 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.
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15634.0
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2023-05-28 00:00:00 UTC
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Could Apple’s 5G Deal Be a Game-Changer for AAPL Stock?
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AAPL
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https://www.nasdaq.com/articles/could-apples-5g-deal-be-a-game-changer-for-aapl-stock
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock has already rallied sharply this year. So, is it too late to invest in Apple now?
It’s a tough call, as some critics might express doubts about the company’s upcoming foray into virtual reality hardware. On the other hand, Apple’s recently announced deal with a famous chip maker could prove to be a major revenue generator.
Since Apple is such a huge and highly revered company, there’s always the concern that Apple could fall from grace. For instance, Loop Capital analyst Ananda Baruah downgraded Apple to “hold” after the company “reduced its iPhone shipping for the June quarter.”
Okay, so Apple will encounter hiccups and missteps just like any other company will. This doesn’t mean Apple shouldn’t take risks and try out audacious ideas. In the end, Apple has always rewarded loyal shareholders with superior returns, so investors have no reason to bail on the company now.
AAPL Apple $175.43
Will Apple’s VR Gear Be a Problem for AAPL Stock?
Since AAPL stock has run higher this year so far, any failure on Apple’s part could prompt a share-price pullback. Concern about Apple’s upcoming mixed-reality headset, which is expected to be introduced sometime this year, makes sense.
It won’t be a simple task for Apple to make VR goggles look cool. Other tech titans have attempted this and failed to make an appreciable dent in the VR hardware market. Will Apple succeed where others didn’t?
I propose it will be challenging, but not impossible. Remember, Apple created and then dominated new markets with the Macintosh computer, the iPod, the Apple Watch and of course, the iPhone.
Besides, Apple doesn’t need to succeed in this niche market. It’s not make-or-break for Apple. The company can always fall back on its other products, which have exhibited year-on-year growth.
Apple Strikes a 5G Hardware Deal
Only time will tell whether Apple’s venture into VR hardware will be a hit or a flop. One foray that will almost certainly be a winner, however, is Apple’s collaboration with chip maker Broadcom (NASDAQ:AVGO).
No exact time frame or dollar figure was revealed, as this is a “new multiyear, multibillion-dollar agreement.” Still, it’s huge news as Apple stands to generate vast revenue from developing 5G hardware with Broadcom.
If you’re interested in the geek-speak, Apple and Broadcom plan to develop “5G radio frequency components — including FBAR filters — and cutting-edge wireless connectivity components.” The companies aren’t starting from scratch, by any means, as Broadcom already has a “major” 5G component production facility in Colorado.
If you agree with me that 5G has a strong future, then this development provides another reason to invest in Apple now. Indeed, I’d consider this news item to be much more impactful than anything related to Apple’s upcoming VR headsets.
So, Is It Too Late to Buy AAPL Stock?
Are you tempted to take profits and bail on your share stake in Apple? The choice is yours, but don’t discount Apple’s relentless drive to grow and innovate.
Sure, Apple’s mixed-reality gear might not be a blockbuster hit. At least, we can commend Apple for taking risks and trying out a variety of ideas.
Long-term, AAPL stock will likely move higher as long as Apple continues to advance cutting-edge products and services. Therefore, it’s definitely not too late to start or add to a share position in Apple.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
The post Could Apple’s 5G Deal Be a Game-Changer for AAPL Stock? 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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Long-term, AAPL stock will likely move higher as long as Apple continues to advance cutting-edge products and services. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has already rallied sharply this year. AAPL Apple $175.43 Will Apple’s VR Gear Be a Problem for AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has already rallied sharply this year. AAPL Apple $175.43 Will Apple’s VR Gear Be a Problem for AAPL Stock? Since AAPL stock has run higher this year so far, any failure on Apple’s part could prompt a share-price pullback.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has already rallied sharply this year. AAPL Apple $175.43 Will Apple’s VR Gear Be a Problem for AAPL Stock? Since AAPL stock has run higher this year so far, any failure on Apple’s part could prompt a share-price pullback.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has already rallied sharply this year. AAPL Apple $175.43 Will Apple’s VR Gear Be a Problem for AAPL Stock? Since AAPL stock has run higher this year so far, any failure on Apple’s part could prompt a share-price pullback.
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15635.0
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2023-05-28 00:00:00 UTC
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3 Undervalued S&P 500 Stocks to Buy Before Wall Street Catches On
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AAPL
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https://www.nasdaq.com/articles/3-undervalued-sp-500-stocks-to-buy-before-wall-street-catches-on-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re looking for undervalued S&P 500 stocks, an interesting place to start would be the AAM S&P 500 High Dividend Value ETF (NYSE:SPDV) from Advisors Asset Management.
No, this isn’t a promotion for the asset manager. However, this fund focuses on something near and dear to me: Free cash flow yield. Well, that and dividend yield.
The passive ETF tracks the performance of the S&P 500 Dividend & Free Cash Flow Yield Index, which was created in October 2017. The ETF came a month later, in November 2017.
The collection of 53 S&P 500 stocks is selected through a rules-based process that takes the product of a company’s dividend yield and free cash flow yield and then ranks all 503 of the S&P 500 stocks. You can read about the exclusions in the summary prospectus.
Once the stocks qualify for inclusion, they are equal-weighted, with rebalancing and reconstitution twice a year in January and July.
Based on the current holdings, I’ve selected three S&P 500 stocks to buy that trade for less than the average S&P 500 ratio of 23.8x.
Even better if they trade below the median of 14.9x.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
The inverse of the price-to-earnings ratio is the earnings yield. Broadcom’s (NASDAQ:AVGO) is 4.4%. To qualify, it has to be 4.2% or higher [100 divided by 23.8]. The artificial intelligence (AI) play is the ETF’s second-largest holding with a weighting of 2.43%. It is somewhat meaningless because they’re equal-weighted, but I digress.
On May 23, the company announced a deal with Apple (NASDAQ:AAPL) to provide it with 5G radio frequency components and wireless chips. The multi-year agreement will see some of the components manufactured in the U.S. at Broadcom’s Colorado facility.
The two companies have partnered since 2020. This announcement adds to the work they’re doing together. According to Barron’s, the two original supply agreements were valued at $15 billion.
Broadcom is trying to acquire VMware (NYSE:VMW) for $61 billion. VMware extended the deadline to close the deal on May 19 because of ongoing regulatory concerns. The deadline is now Aug. 26, although they could extend once more to Nov. 26.
Regulators in the European Union are concerned the tie-up will severely limit competition in the European market. The transaction was first announced in May 2022.
With or without VMware, AVGO is available for a fair price.
HP (HPQ)
Source: Tomasz Wozniak / Shutterstock.com
These days, HP (NYSE:HPQ) gets most of its publicity for being one of Warren Buffett’s largest holdings. As of March 31, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) owned 12.3% of the company, making it the holding company’s 10th-largest equity position, valued at $3.6 billion.
The Oracle of Omaha upped Berkshire’s HPQ position in the first quarter by 16%, one of the few buys it made in Q1 2023.
According to a report from Yahoo Finance Executive Editor Brian Sozzi, Buffett likes HP’s capital allocation strategy.
“‘HP is committed to one of the largest share repurchase programs (relative to market cap) within our coverage, so we think Berkshire’s involvement makes sense,’ pointed out Evercore ISI analyst Amit Daryanani,” Sozzi reported on May 16.
Since 2020, HP has repurchased approximately $13 billion of its stock.
Late last year, the company announced a major cost-cutting program that would see the maker of printers and PCs let as many as 6,000 employees go by fiscal 2025. The move’s intended to cut $1.4 billion in annual expenses.
Down 12% year-to-date, Buffett probably also likes that it’s cheap with an 8.5% earnings yield.
Snap-On (SNA)
Source: RMC42/ShutterStock.com
Snap-On (NYSE:SNA) has been a steady performer for a long time. Its 5-year annualized total return is 13.01%, 258 basis points higher than the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). Yet its earnings yield remains a healthy 6.8%.
I have a remarkably similar philosophy about globalization as Snap-On CEO Nick Pinchuk. For a long time, I’ve praised the business model of A.O. Smith (NYSE:AOS) because most of what it makes in America is sold in America. The same is valid overseas.
Recently, Pinchuk appeared in an interview with Chief Executive, extolling the virtues of American manufacturing.
“‘Eighty percent of what we sell in America is made right here in America,’ says Pinchuk, whose Kenosha, Wisconsin-based company produces high-end tools and equipment for transportation-industry technician. ‘Our plants in Europe make for Europe, our plants in Asia make for Asia,’” Chief Executive reported.
As Pinchuk explained, the company’s tools and equipment are highly customized, and it would be impractical to ship its 85,000 stock-keeping units (SKUs) across the Pacific.
Those sound like identical words to the A.O. Smith CEO. And they make total sense.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post 3 Undervalued S&P 500 Stocks to Buy Before Wall Street Catches On 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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On May 23, the company announced a deal with Apple (NASDAQ:AAPL) to provide it with 5G radio frequency components and wireless chips. According to a report from Yahoo Finance Executive Editor Brian Sozzi, Buffett likes HP’s capital allocation strategy. “‘HP is committed to one of the largest share repurchase programs (relative to market cap) within our coverage, so we think Berkshire’s involvement makes sense,’ pointed out Evercore ISI analyst Amit Daryanani,” Sozzi reported on May 16.
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On May 23, the company announced a deal with Apple (NASDAQ:AAPL) to provide it with 5G radio frequency components and wireless chips. The collection of 53 S&P 500 stocks is selected through a rules-based process that takes the product of a company’s dividend yield and free cash flow yield and then ranks all 503 of the S&P 500 stocks. Snap-On (SNA) Source: RMC42/ShutterStock.com Snap-On (NYSE:SNA) has been a steady performer for a long time.
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On May 23, the company announced a deal with Apple (NASDAQ:AAPL) to provide it with 5G radio frequency components and wireless chips. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re looking for undervalued S&P 500 stocks, an interesting place to start would be the AAM S&P 500 High Dividend Value ETF (NYSE:SPDV) from Advisors Asset Management. The collection of 53 S&P 500 stocks is selected through a rules-based process that takes the product of a company’s dividend yield and free cash flow yield and then ranks all 503 of the S&P 500 stocks.
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On May 23, the company announced a deal with Apple (NASDAQ:AAPL) to provide it with 5G radio frequency components and wireless chips. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re looking for undervalued S&P 500 stocks, an interesting place to start would be the AAM S&P 500 High Dividend Value ETF (NYSE:SPDV) from Advisors Asset Management. Broadcom is trying to acquire VMware (NYSE:VMW) for $61 billion.
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15636.0
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2023-05-28 00:00:00 UTC
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The Best Stocks to Invest $1,000 in Right Now
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AAPL
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https://www.nasdaq.com/articles/the-best-stocks-to-invest-%241000-in-right-now-13
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nan
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nan
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The stock market has been recovering slowly but steadily in 2023 after last year's battering. This is evident from the 7% gains that the S&P 500 has logged so far this year despite facing multiple headwinds -- such as the banking crisis in the U.S., the debt ceiling, and the potential for a recession.
However, this year's stock market recovery is not without reason. Cooling inflation, the Federal Reserve's decision to slow the pace of rate hikes, and hot trends such as artificial intelligence (AI) seem to have encouraged investors to park their funds in stocks once again. And that seems to be the right thing to do, as the stock market has historically averaged robust returns despite periods of volatility.
So if you have $1,000 to spare right now, which means that your bills are paid, you have enough savings for a rainy day, and there is no high-interest loan to service (such as credit card debt), it may be a good time to use that money to buy some top companies that could deliver healthy returns in the long run.
In this article, we will look at a couple of names that you might want to consider buying with $1,000 of your investable cash, either individually or combined.
This tech giant is built for long-term growth
Apple (NASDAQ: AAPL) is the world's most valuable company by market capitalization, and that's not surprising given how it has been navigating a challenging smartphone market. The tech giant's revenue for the second quarter of fiscal 2023 (for the three months ended April 1, 2023) came in at $95 billion, down just 3% from the prior-year period despite its significant reliance on the smartphone market.
That's because Apple's smartphone shipments fell just 2.3% year over year in the first quarter of 2023, which was a much smaller decline compared to the 14.6% decline in overall smartphone shipments. As a result, Apple now controls 20.5% of the smartphone industry's shipments, second only to Samsung, which holds a 22.5% market share.
However, Apple's terrific smartphone pricing power explains why the company has been able to corner nearly half of the industry's revenue and 85% of the profits. The iPhone commands an average selling price (ASP) of almost $1,000, and the figure has been increasing at a time when the industry is under duress.
This bodes well for Apple's future, as the smartphone market's revenue is expected to head significantly higher by the end of the decade. Spherical Insights estimates that the global smartphone market could generate $947 billion in annual revenue by 2030, compared to $520 billion in 2021. If Apple manages to corner half of that massive revenue opportunity, its iPhone revenue could jump to nearly $475 billion a year. That would be more than double the company's fiscal 2022 iPhone revenue of $205.5 billion.
It wouldn't be surprising to see Apple hit that mark considering that it is expanding in lucrative markets such as India and is reportedly looking to enter new smartphone niches such as foldable devices, both of which could substantially boost its revenue in the long run. Throw in the fact that Apple is recording consistent growth in the highly profitable services business, and it is easy to see why the company could be a long-term winner.
Apple has turned a $1,000 investment into more than $3,800 in the past three years (assuming the dividends were reinvested), and it could replicate this terrific performance in the future as well.
Programmatic advertising's growth could help this stock fly higher
The Trade Desk (NASDAQ: TTD) is another high-flying stock that has turned a $1,000 investment into just over $8,000 in the past five years. The company has won big from the growing adoption of programmatic advertising, which allows brands and advertisers to automate their ad buying and campaign management. For instance, programmatic ad spending in the U.S. nearly doubled to $95 billion last year from $49 billion in 2018.
The Trade Desk has benefited substantially from the market's growth.
TTD Revenue (TTM) data by YCharts
The programmatic advertising market still has a lot of room for growth. This space is expected to clock annual growth of 32% over the next five years and generate a whopping $2.7 trillion in revenue. That's not surprising, as The Trade Desk predicts all advertising media will eventually become programmatic and will be transacted digitally.
This explains why the company sees the total global advertising spending of $830 billion as its addressable market. More importantly, The Trade Desk's programmatic platform has allowed it to outgrow the digital ad market significantly. That trend is likely to continue, as the company's use of AI to help advertisers and brands improve their returns on advertising spend is likely to help it attract more users.
In all, considering the huge market opportunity that The Trade Desk is sitting on, it could continue to grow at a terrific pace in the long run. Its trailing 12-month revenue stands at just $1.65 billion, compared to the massive addressable market on offer, which tells us why analysts are expecting an acceleration in the company's growth.
TTD Revenue Estimates for Current Fiscal Year data by YCharts
Of course, investors will have to pay a premium if they want to buy this growth stock. The Trade Desk is trading at an expensive 20 times sales following its terrific gains of 47% so far in 2023. But it is still available at a discount to its five-year average price-to-sales ratio of 26. The company's prospects indicate that it could sustain its impressive growth in the long run, which is why it may be a good idea for growth-oriented investors to put their money in The Trade Desk.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and The Trade Desk. 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 tech giant is built for long-term growth Apple (NASDAQ: AAPL) is the world's most valuable company by market capitalization, and that's not surprising given how it has been navigating a challenging smartphone market. Cooling inflation, the Federal Reserve's decision to slow the pace of rate hikes, and hot trends such as artificial intelligence (AI) seem to have encouraged investors to park their funds in stocks once again. So if you have $1,000 to spare right now, which means that your bills are paid, you have enough savings for a rainy day, and there is no high-interest loan to service (such as credit card debt), it may be a good time to use that money to buy some top companies that could deliver healthy returns in the long run.
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This tech giant is built for long-term growth Apple (NASDAQ: AAPL) is the world's most valuable company by market capitalization, and that's not surprising given how it has been navigating a challenging smartphone market. Spherical Insights estimates that the global smartphone market could generate $947 billion in annual revenue by 2030, compared to $520 billion in 2021. If Apple manages to corner half of that massive revenue opportunity, its iPhone revenue could jump to nearly $475 billion a year.
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This tech giant is built for long-term growth Apple (NASDAQ: AAPL) is the world's most valuable company by market capitalization, and that's not surprising given how it has been navigating a challenging smartphone market. Programmatic advertising's growth could help this stock fly higher The Trade Desk (NASDAQ: TTD) is another high-flying stock that has turned a $1,000 investment into just over $8,000 in the past five years. TTD Revenue Estimates for Current Fiscal Year data by YCharts Of course, investors will have to pay a premium if they want to buy this growth stock.
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This tech giant is built for long-term growth Apple (NASDAQ: AAPL) is the world's most valuable company by market capitalization, and that's not surprising given how it has been navigating a challenging smartphone market. Spherical Insights estimates that the global smartphone market could generate $947 billion in annual revenue by 2030, compared to $520 billion in 2021. Programmatic advertising's growth could help this stock fly higher The Trade Desk (NASDAQ: TTD) is another high-flying stock that has turned a $1,000 investment into just over $8,000 in the past five years.
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15637.0
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2023-05-28 00:00:00 UTC
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2 Winning Stocks to Buy No Matter What the Market Is Doing
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AAPL
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https://www.nasdaq.com/articles/2-winning-stocks-to-buy-no-matter-what-the-market-is-doing-0
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nan
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nan
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Stocks can swing wildly from year to year, as investors were reminded in 2022. While investors can't control the markets, some stocks allow them to sleep well at night better than others.
Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. Here's why these two top stocks will continue winning for investors over the long term.
1. Microsoft
You would be hard-pressed to find a more solid investment than Microsoft. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance.
Microsoft is posting balanced revenue and earnings growth despite a challenging business environment. In the most recent quarter, Office and cloud services growth drove double-digit year-over-year increases in revenue and earnings per share on a constant-currency basis.
Thanks to the company's investment in OpenAI -- the creators behind popular artificial intelligence (AI)-powered text app ChatGPT -- Microsoft is also bringing smart AI tools to its Office suite, which could drive more demand.
Another reason to consider Microsoft a solid investment for the long haul is its booming enterprise cloud services business. Microsoft Azure has soared to second place behind Amazon over the last five years. Microsoft mentioned on the lastearnings callthat it now has more than 2,500 Azure OpenAI customers using the service's advanced language models, up an impressive 10-fold over the previous quarter.
These developments make clear that advancing technology only strengthens Microsoft's competitive moat. Microsoft has the cash flows to invest in the latest technologies fueling demand for its core software services, and that's the main reason investors can rely on the stock to keep reaching new highs over time, no matter what happens in the near term.
2. Apple
The iPhone maker is another solid stock that should continue to grow in value for years to come, regardless of what happens in the markets in the near term. The stock fell in 2022, along with everything else, but has rebounded around 32% this year. Apple generates enormous amounts of cash from operations, pays a regular dividend, and has an enviable brand.
As noted by last year's dip in the stock price, Apple is not immune from market swings, but investors can count on consistent revenue every year from a loyal customer base that continues to buy more devices. This leads to consistent, robust free cash flow the company can return to shareholders through a growing dividend and share repurchases.
AAPL data by YCharts.
Apple said its installed base of devices hit another record in the most recent quarter. It entered the year with more than 2 billion devices across its customer base, up from 1.3 billion at the start of 2018. It's unsurprising that as more customers have purchased an Apple product and spent money on subscriptions and apps, Apple's free cash flow has also grown to $97 billion, or 78% higher than five years ago.
With over 2 billion active devices, you might be wondering how much more Apple can grow. It can keep growing that figure through new product releases and converting customers from competing smartphone manufacturers.
Apple is expected to finally unveil its long-rumored mixed-reality headset next month at the company's annual Worldwide Developers' Conference. While initial sales are expected to be modest at best, especially at the rumored $3,000 price point, the product could grow in importance over the long term like the Apple Watch did after its 2015 launch.
Investors should also expect Apple to find ways to wow customers with new AI features in its existing product lineup, which could convert non-Apple users to try an iPhone. After all, CEO Tim Cook credited the recent increase in the installed base to "a large number of switchers" following the iPhone 14 launch last fall.
Apple's underlying edge over competitors is brand power. And that's why Warren Buffett has sunk billions into the stock in recent years and why investors can expect Apple to keep winning for shareholders for years to come.
10 stocks we like better than Microsoft
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 Microsoft 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, 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.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Apple The iPhone maker is another solid stock that should continue to grow in value for years to come, regardless of what happens in the markets in the near term.
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15638.0
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2023-05-27 00:00:00 UTC
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3 Growth Stocks to Buy to Recession-Proof Your Portfolio
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-to-recession-proof-your-portfolio
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In times of economic uncertainty, it can be wise to invest in recession-proof growth stocks that have the ability to withstand downturns and offer financial stability. Ensuring a portfolio is both robust and has growth potential is crucial. This piece spotlights three exceptional growth stocks that possess these attributes, effectively safeguarding against any potential economic setbacks.
These entities exhibit remarkable performance in terms of their strong foundations, varied sources of revenue, and significant market presence. Their outstanding characteristics make them ideal stocks for steady expansion in the face of economic recessions, presenting stability and growth prospects. Whether you possess prior experience in investment or are a novice, these leading stocks for growth could act as a financial buffer, providing protection during times of economic decline. We invite you to delve deeper into these robust market competitors and understand the rationale behind their inclusion in your investment tactics.
Here are three of the best recession-proof growth stocks that I think are worth holding, despite concerns around an impending recession.
Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
Nvidia’s (NASDAQ:NVDA) stock surged impressively in 2023, surpassing a $700 billion market cap, making it the fifth-largest US company. However, this rise seems unjustified. The company’s latest earnings report showed a steep drop in sales and earnings per share due to declining demand for video cards and price cuts.
AI is a buzzword in 2023, but Nvidia’s graphics cards, its main product, remain significant. It’s unwise to short-sell NVDA stock. Nvidia leads in GPU technology, having broken the 3800 MHz barrier and set to release the potent RTX 4060 Ti graphics card with 16 GB of VRAM and a 165W TDP in July. Such graphics card innovations make Nvidia a power player.
Invest in Nvidia not just for traditional valuation metrics, but for its potential leadership in next-gen GPU and AI hardware. Nvidia shines in these areas. You might consider the stock overpriced right now, so there’s no rush to buy. Yet, expect possible upward momentum. Strong companies, like Nvidia, often yield solid long-term returns.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. With its strong consumer brand, pricing power, and indispensable core product, Apple remains resilient irrespective of broader economic conditions. This is why it’s also a strong pick among our recession-proof growth stocks.
Apple’s strong brand enables it to set high prices, and it shows consistent financial growth. A $1,000 investment in Apple a decade ago could have netted $12,501.62 today, reflecting an annual return of 28.7%. If invested five years ago, the same amount could have grown to $3,960.5, a 31.57% return. Even amid economic challenges, a $1,000 investment made last year would have earned a 10.8% gain, thus making it one of those top growth stocks to buy.
Additionally, rising iPhone sales significantly enhanced Apple’s Q1 revenue. While the U.S. economic downturn impacted iPhone sales in the Americas, the company’s global brand recognition has helped mitigate the decline in its domestic market. Apple boasts a strong and stable business that is poised to maintain a positive outlook for the foreseeable future, which may help you recession-proof your portfolio.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Have you explored the investment potential of Meta Platforms (NASDAQ:META) as one of the top growth stocks in the artificial intelligence sector? Meta Platforms show promising signs of making significant strides in the machine-learning market. While investing in the company is optional at this stage, keep an eye on how AI advancements drive Meta’s growth and transformation as a prominent tech powerhouse in the coming year.
META stock offers an intriguing AI proposition that you shouldn’t overlook. Meta Platforms has introduced its “AI Sandbox,” allowing select advertisers to experiment with advanced AI tools. The company plans to expand access to this suite of tools, beginning in July. Keep an eye out for embedded ads on Meta Platforms’ Facebook and Instagram apps, leveraging generative AI technology. These ads have the potential to be more personalized and dynamic, featuring responsive text and images that deliver a smarter advertising experience.
Investing in recession-proof stocks often requires discipline. In this case, investors should patiently wait for the right time to buy Meta shares. Despite potential short-term fluctuations, Meta’s focus on cost reductions and profit generation sets the stage for long-term growth. Positive sentiment on Wall Street adds to the stock’s appeal and potential upside.
On the date of publication, Chris MacDonald has a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Growth Stocks to Buy to Recession-Proof Your Portfolio 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 The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Whether you possess prior experience in investment or are a novice, these leading stocks for growth could act as a financial buffer, providing protection during times of economic decline.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia’s (NASDAQ:NVDA) stock surged impressively in 2023, surpassing a $700 billion market cap, making it the fifth-largest US company.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In times of economic uncertainty, it can be wise to invest in recession-proof growth stocks that have the ability to withstand downturns and offer financial stability.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Have you explored the investment potential of Meta Platforms (NASDAQ:META) as one of the top growth stocks in the artificial intelligence sector?
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15639.0
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2023-05-27 00:00:00 UTC
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3 High-Growth Stocks to Buy Before They Join the Trillion-Dollar Club
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AAPL
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https://www.nasdaq.com/articles/3-high-growth-stocks-to-buy-before-they-join-the-trillion-dollar-club
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The trillion-dollar club is an exceedingly rare group. In fact, there are only 5 companies on that list currently. Investors can buy shares in 4 of the 5 on U.S. exchanges. The fifth, Saudi Aramco, trades on the Tadawul, Saudi Arabia’s stock exchange. Regardless of where they can be purchased, companies valued at $1 trillion make up a tiny fraction of all firms on the planet, and investors are always looking for the next trillion-dollar companies.
It’s a safe bet that the next trillion-dollar firm already ranks fairly highly by market capitalization. Companies of this magnitude don’t emerge overnight. The firms below have strong chances of joining the short list of trillion-dollar club stocks, perhaps as the next entrant.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) is highly likely to be the next high-growth stock for the trillion-dollar club. It is currently ranked 6th by market cap at $963 billion, roughly $300 billion behind entry number 5, Amazon (NASDAQ:AMZN), valued at $1.2 trillion.
That said, Nvidia still has a long way to go to reach the trillion dollar threshold. Yet, it is the most likely to join the club. Not only because of all the firms below that milestone it is the closest, but also because of artificial intelligence (AI). The emergence of AI has again catalyzed Nvidia into another period of rapid growth.
In 2023 alone Nvidia’s value has increased more than 160%. This could be the fifth year since 2016 that the company has seen its value increase by 100% or more if current trends continue for the year.
The company seems to move by trends more than fundamentals. If 2023’s AI boom continues and markets continue to favor the tech then NVDA shares could reach that threshold quickly.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth Group (NYSE:UNH) stock is a safe bet to cross the $1 trillion threshold at some point. That said, UNH is valued at $448 billion right now. Meaning it’s likely going to take a while before it could reasonably be expected to more than double in value.
Apple (NASDAQ:AAPL) was worth $500 billion in 2012. Apple broke the $1 trillion mark in August 2018. That probably means UNH stock will take longer given that the healthcare sector doesn’t grow nearly as quickly as valuations do in the tech sector. But it at least gives investors some idea of what to expect in regard to the growth trajectory.
What’s more important here is that UnitedHealth will grow steadily to one day reach $1 trillion. Shareholders should expect roughly $25 in earnings for each UNH share they own in 2023. Add to that, its dividend, and UnitedHealth is one of the steadiest companies that will one day reach that valuation.
Eli Lilly (LLY)
Source: Jonathan Weiss / Shutterstock.com
Eli Lilly (NYSE:LLY) is the 15th most valuable firm globally, worth $405 billion. Like UnitedHealth Group, it’s a long way from $1 trillion.
However, Eli Lilly has a potent catalyst on its side in the form of Mounjaro, its diabetes drug that is showing massive promise as a weight loss therapy. It could receive an FDA recommendation as a weight loss drug by the end of this year. If it does, expect share prices to rise. Over time the appetite suppressant has the possibility to become among the best-selling drugs ever.
Analysts believe Mounjaro could reach peak sales of $25 billion. That would be far above the $20.7 billion Humira recorded in 2022, a record aside from Covid-19 vaccines. Eli Lilly’s Alzheimer’s drug, Donanemab, continues to show promising results and is considered to be among the best candidates for treating that disease. A win there would only hasten LLY’s march to $1 trillion. That said, analysts believe that even without an Alzheimer’s breakthrough Eli Lilly will only continue to increase in value. $1 trillion is far away now but breakthrough pharma sales will act as a powerful valuation catalyst.
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 3 High-Growth Stocks to Buy Before They Join the Trillion-Dollar Club appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) was worth $500 billion in 2012. However, Eli Lilly has a potent catalyst on its side in the form of Mounjaro, its diabetes drug that is showing massive promise as a weight loss therapy. Eli Lilly’s Alzheimer’s drug, Donanemab, continues to show promising results and is considered to be among the best candidates for treating that disease.
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Apple (NASDAQ:AAPL) was worth $500 billion in 2012. If 2023’s AI boom continues and markets continue to favor the tech then NVDA shares could reach that threshold quickly. UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group (NYSE:UNH) stock is a safe bet to cross the $1 trillion threshold at some point.
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Apple (NASDAQ:AAPL) was worth $500 billion in 2012. Regardless of where they can be purchased, companies valued at $1 trillion make up a tiny fraction of all firms on the planet, and investors are always looking for the next trillion-dollar companies. Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) is highly likely to be the next high-growth stock for the trillion-dollar club.
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Apple (NASDAQ:AAPL) was worth $500 billion in 2012. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The trillion-dollar club is an exceedingly rare group. That said, UNH is valued at $448 billion right now.
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15640.0
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2023-05-27 00:00:00 UTC
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Take a Look Into How Apple-Broadcom Deal Puts ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/take-a-look-into-how-apple-broadcom-deal-puts-etfs-in-focus
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nan
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nan
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On Tuesday, Apple AAPL revealed a significant partnership with Broadcom AVGO to collaborate on the development of 5G radio frequency components within the United States. The multi-billion dollar deal involves Broadcom working alongside Apple to create and manufacture these components in various American facilities, including their prominent factory in Fort Collins, Colorado.
Following the announcement, shares of Broadcom experienced about a 2.2% increase, reaching an all-time high. The market responded positively to the news, reflecting the favorable perception and confidence in Broadcom's prospects as a result of this development.
Let’s Dive into the Deal
According to an article on Reuters, Apple specifically highlighted its intention to leverage Broadcom's expertise in film bulk acoustic resonator (FBAR) chips. These FBAR chips play a crucial role in the radio-frequency system, enabling seamless connectivity between iPhones and other Apple devices and mobile data networks.
This development signifies the continuation of a longstanding partnership between Apple and Broadcom. Notably, in 2020, Broadcom had disclosed its plans to supply Apple with $15 billion worth of wireless components. As part of the new deal, Apple will not only benefit from Broadcom's components but also utilize the collaboration to invest in important automation projects and skill development for engineers and technicians.
The partnership is mutually beneficial, as Apple's existing support for over 1,100 jobs at Broadcom's Fort Collins, CO facility further strengthens their collaboration in FBAR filter manufacturing. In its most recent two fiscal years, Apple has emerged as a significant revenue contributor for the chipmaker, with roughly 20% of its total revenue stemming from its role as a major supplier of wireless components to Apple.
ETFs in Focus
Below, we highlight a few ETFs with exposure to Broadcom.
iShares U.S. Tech Independence Focused ETF (IETC)
The fund employs an active strategy and has a basket of 163 securities. IETC has a major allocation in the software and services sector, with 42.09% of the assets. It has an exposure of 12.02% in Broadcom, but the top allocation is in Microsoft MSFT, with 14.82%.
The fund has amassed an asset base of $133.63 million and charges an annual fee of 0.18%. IETC has generated 21.90% year to date and is up 14.60% over the past year.
Pacer Data and Digital Revolution ETF (TRFK)
The Pacer Data and Digital Revolution ETF seeks to track the total return performance of the Pacer Data Transmission and Communication Revolution Index. The fund has a basket of 80 securities with a tilt toward information technology, having a share of 91.77%. TRFK has 9.92% of its assets allocated to Broadcom, with NVIDIA NVDA being the top allocation having a share of 10.34%.
The fund has gathered $1.09 million in its asset base and charges an annual fee of 0.60%. TRFK has a Zacks ETF Rank #3 (Hold) and has generated 24.99% year to date. The fund has given returns of 13.31% over the past three months.
First Trust Nasdaq Semiconductor ETF (FTXL)
The First Trust Nasdaq Semiconductor ETF seeks investment results that generally correspond to the performance of the Nasdaq US Smart Semiconductor Index, which provides exposure to U.S. companies within the semiconductor industry.
It has a basket of 31 securities, with 79.07% of the assets allocated to the semiconductor sector. FTXL has an exposure of 8.83% to Broadcom, with the highest allocated company being Intel INTC, with 9.05%.
It has gathered an asset base of $995.72 million and charges an annual fee of 0.60%. Having a Zacks ETF Rank of #3 (Hold), the fund has earned 18.84% year to date and 6.67% over the past year.
IShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF seeks to track the investment results of ICE Semiconductor Index composed of U.S. equities in the semiconductor sector. Having 30 securities in its basket, the fund has major allocation to the semiconductor sector, with 79.67% of the assets of the fund. Broadcom takes up the second place in the list of holdings, with 8.41%. NVIDIA is the top allocation, with 9.89% of the assets.
SOXX has amassed an asset base of $7.97 billion and charges an annual fee of 0.35%. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook. It has generated returns of 27.98% year to date and 13.30% over the past year.
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Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
iShares Semiconductor ETF (SOXX): ETF Research Reports
First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports
iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports
Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Tuesday, Apple AAPL revealed a significant partnership with Broadcom AVGO to collaborate on the development of 5G radio frequency components within the United States. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. The multi-billion dollar deal involves Broadcom working alongside Apple to create and manufacture these components in various American facilities, including their prominent factory in Fort Collins, Colorado.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. On Tuesday, Apple AAPL revealed a significant partnership with Broadcom AVGO to collaborate on the development of 5G radio frequency components within the United States. Pacer Data and Digital Revolution ETF (TRFK) The Pacer Data and Digital Revolution ETF seeks to track the total return performance of the Pacer Data Transmission and Communication Revolution Index.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. On Tuesday, Apple AAPL revealed a significant partnership with Broadcom AVGO to collaborate on the development of 5G radio frequency components within the United States. First Trust Nasdaq Semiconductor ETF (FTXL) The First Trust Nasdaq Semiconductor ETF seeks investment results that generally correspond to the performance of the Nasdaq US Smart Semiconductor Index, which provides exposure to U.S. companies within the semiconductor industry.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. On Tuesday, Apple AAPL revealed a significant partnership with Broadcom AVGO to collaborate on the development of 5G radio frequency components within the United States. TRFK has 9.92% of its assets allocated to Broadcom, with NVIDIA NVDA being the top allocation having a share of 10.34%.
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15641.0
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2023-05-27 00:00:00 UTC
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Is Apple Stock Overbought? The Answer May Surprise You.
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-overbought-the-answer-may-surprise-you.
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nan
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With shares of tech giant Apple (NASDAQ: AAPL) up more than 32% year to date, some investors might be wondering if the stock has become overvalued. After all, revenue or earnings didn't grow during this period. On the contrary, they contracted.
The stock's big gain, therefore, has been driven solely by valuation multiple expansion. Is the big move justified? Or is it time for shareholders to take some profit off the table?
Despite the stock's sharp and rapid rise this year, shares not only don't look overbought, but they arguably appear attractive.
Some context is in order
First, it's worth noting that the stock's recent gain is more of a recovery than a run-up. Put another way, the iPhone maker's shares aren't getting ahead of themselves this year; they're just recovering.
Indeed, Apple shares are still about 5% below their all-time highs. The stock's highest levels were actually more than a year ago, on Jan. 3, 2022. On this day, the stock price crossed $180.
The big thing that pulled Apple stock down leading up to its surge higher during the first half of 2023 was a broader-market decline, particularly in tech. This is evidenced by the S&P 500's 19% pullback last year and the outsize decline of the tech-heavy Nasdaq Composite, which plummeted 33% during the year.
A compelling valuation
Recent stock price movements may provide context, but they lack the substance needed for an investor to be as informed as they need to be in order to form an opinion on whether a stock is a buy, sell, or hold. Investors should go deeper and look at Apple stock's valuation. On this front, the tech stock scores quite well.
At first glance, a price-to-earnings ratio of 29 might seem a bit excessive for a company struggling to grow revenue and earnings in recent quarters. But investors should realize that Apple is coming off of a period of extraordinary growth.
For example, though trailing-six-month revenue and earnings per share declined 4% and 6% year over year, respectively, revenue and earnings per share in the 12-month period ending one year earlier rose 10% and 18% year over year, respectively. Looking further back to the same trailing-six-month period ended two years ago, Apple's revenue grew 34% year over year, and its earnings per share skyrocketed 63%. Growth like this in the rearview mirror is difficult to trump.
Historically, volatility in the company's growth rates has been normal. Apple reported negative year-over-year growth rates in 2016 and 2019, for instance. But when zooming out to Apple's longer-term trends, the tech giant has proven it can steadily grow its top line and earnings per share.
Analysts unsurprisingly expect similar trends over the next few years. The consensus analyst forecast calls for about 7% top-line growth in both fiscal 2024 and fiscal 2025 and earnings-per-share growth rates of 9% and 11% for those same years, respectively.
The stock's valuation is also supported by robust cash flow and an impeccable balance sheet. Apple's trailing-12-month free cash flow was more than $97 billion. Strong cash flow like this has helped the company build a balance sheet with $166 billion of cash and marketable securities.
Net of its long-term debt, Apple still has $57 billion of cash remaining. With a goal for its cash position to eventually equal its debt position, the company has plenty of excess cash -- and management is putting it to work with share buybacks and dividends.
All this said, shares don't look overbought at all. Indeed, today could prove to be a good time to buy in hindsight. There are risks, of course.
Investors, for instance, will want to watch the company's financial results over the next few years to ensure that Apple once again proves it can return to growth as it has following previous slowdowns in its business. If this growth fails to materialize, shares could underperform or even decline.
But given Apple stock's fairly conservative valuation, the company's long history of execution, its strong brand, and loyal customers, there's a lot to like about 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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*Stock Advisor returns as of May 22, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With shares of tech giant Apple (NASDAQ: AAPL) up more than 32% year to date, some investors might be wondering if the stock has become overvalued. But when zooming out to Apple's longer-term trends, the tech giant has proven it can steadily grow its top line and earnings per share. Investors, for instance, will want to watch the company's financial results over the next few years to ensure that Apple once again proves it can return to growth as it has following previous slowdowns in its business.
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With shares of tech giant Apple (NASDAQ: AAPL) up more than 32% year to date, some investors might be wondering if the stock has become overvalued. For example, though trailing-six-month revenue and earnings per share declined 4% and 6% year over year, respectively, revenue and earnings per share in the 12-month period ending one year earlier rose 10% and 18% year over year, respectively. Looking further back to the same trailing-six-month period ended two years ago, Apple's revenue grew 34% year over year, and its earnings per share skyrocketed 63%.
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With shares of tech giant Apple (NASDAQ: AAPL) up more than 32% year to date, some investors might be wondering if the stock has become overvalued. For example, though trailing-six-month revenue and earnings per share declined 4% and 6% year over year, respectively, revenue and earnings per share in the 12-month period ending one year earlier rose 10% and 18% year over year, respectively. Looking further back to the same trailing-six-month period ended two years ago, Apple's revenue grew 34% year over year, and its earnings per share skyrocketed 63%.
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With shares of tech giant Apple (NASDAQ: AAPL) up more than 32% year to date, some investors might be wondering if the stock has become overvalued. A compelling valuation Recent stock price movements may provide context, but they lack the substance needed for an investor to be as informed as they need to be in order to form an opinion on whether a stock is a buy, sell, or hold. For example, though trailing-six-month revenue and earnings per share declined 4% and 6% year over year, respectively, revenue and earnings per share in the 12-month period ending one year earlier rose 10% and 18% year over year, respectively.
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15642.0
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2023-05-27 00:00:00 UTC
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Walmart's Grocery Success and Other Retail News
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AAPL
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https://www.nasdaq.com/articles/walmarts-grocery-success-and-other-retail-news
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nan
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nan
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In this podcast, Motley Fool senior analysts Ron Gross and Jason Moser discuss:
Walmart's grocery division (once again) doing the heavy lifting in the company's latest results.
Reports that Apple will unveil a $3,000 device at its developer conference in early June.
Netflix impressing advertisers and Wall Street.
The latest from Home Depot, Target, Foot Locker, and Deere.
Taco Bell fighting to free the phrase "Taco Tuesday" from its current trademark holder.
Two stocks on their radar: Owens Corning and Lowe's.
Plus, Scott Phillips, chief investment officer at Motley Fool Australia, shares the current state of play for investors Down Under, Australian stocks to watch, and predictions for this year's Rugby World Cup.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 22, 2023
This video was recorded on May 19, 2023.
Chris Hill: We've got a big week for retail and a big debate over Taco Tuesday. Yes, really, Motley Fool Money starts now. It's The Motley Fool Money radio show. I'm Chris Hill, joining me in studio, Motley Fool senior analyst Jason Moser and Ron Gross. Good to see you as always gentlemen.
Jason Moser: Hey.
Ron Gross: How you doing, Chris?
Chris Hill: We've got the latest headlines from Wall Street. We'll get a check on global markets with our guest, Scott Phillips, and as always, we've got a couple of stocks on our radar, but it was a big week for retail earnings so we're going to start with the biggest one reporting. Walmart raised its full-year guidance after delivering a first-quarter report highlighted by sales up more than 7% and Ron, we've seen this frequently over the past couple of years. Walmart's grocery business, doing the heavy lifting here.
Ron Gross: Yeah, exactly. Shoppers continue to gravitate to smaller package sizes to store brands because they're trying to manage their spending and they continue to favor grocery spending over non-essentials such as apparel, home goods, electronics, those tend to have higher margins. But yes, they're focusing on grocery. This was a strong report, it was actually better than expected as you mentioned, revenue and comp sales up about 7%. Those are pretty strong numbers. Slightly slower growth, I will mention compared with the previous quarter, but just slightly, and they did gain market share or management said they gained market share in groceries so that they continue to execute, their e-commerce was up 27%, that's pretty strong. Lifted by higher advertising revenue as they focused on their marketplace, and also sales through their pickup and delivery services. So strong numbers there, gross margins did narrow just a bit on a different mix in sales, but nothing to be concerned about. Inflation in food, although on its way down, it's still 20% higher than two years ago. But operating up 17%, earnings up 13%. Management lifted its outlook as you say and things look pretty good here at Walmart.
Chris Hill: Are you surprised that they raised their guidance because CEO Doug McMillon, I mean, you mentioned the inflation, McMillon said on the call, inflation is creating uncertainty for us in the second half of this year?
Ron Gross: I think they raised because this quarter was better than expected. So just on that, you can raise, but I do think they're being cautious as are other retailers when they give guidance.
Chris Hill: Home Depot's first-quarter revenue was lower than expected. Same-store sales fell more than 4%, and the company lowered sales guidance for the full fiscal year. Despite all that, Jason, shares of Home Depot up a little bit this week. I'm not complaining, I'm a shareholder, but I'm a little pleasantly surprised.
Jason Moser: I too am a shareholder and I too am very not disappointed with the way this week turned out. I know the stock being up surprised some, I think when you look at everything in total, yeah, sure they guided down, but they really set that tone for the year a quarter ago, and I don't think really there were any surprises as far as trepidation among the consumer, sort of a shift from spending on products to a shift on spending in services. That's all playing out here, but there's nothing fundamentally wrong with the business at all. It's exposed to greater macro forces that it has no control over. The numbers themselves not terribly inspiring, I mean revenue $37.3 billion it was actually down 4.2% from a year ago, comps down 4.5%, U.S. comps down 4.6%. Ultimately earnings per share of $3.82 down from $4.09 a year ago. A lot of the metrics that matter, comp average ticket was up just 0.2%, but the transactions fell 5% and big-ticket item comps were down 6.5%. Management did point out lumber deflation. I know we talk a lot about inflation, but in this case, lumber deflation, which is impacting the company's sales.
Ron Gross: It's my favorite inflation.
Jason Moser: Exactly. It impacted average ticket to the tune of about 335 basis points. Remember, lumber is close to 10% of Home Depot's overall business. Put some numbers around this, they use framing lumber as an example here. Framing lumber was approximately $422 per thousand board feet this quarter. Last year, $1,170 so that's that inflation. It plays out on their top line in a bad way, but actually, it's helpful to their margins so it's not all bad news. They paid out $2.1 billion in dividends, got to love that, repurchased approximately 3 billion dollars in shares. That shares outstanding has come down 8.5% since 2019 so that's all good. I think in regard to guidance, they pulled back a little bit. Earnings per share, they see declining now between 7% and 13% versus 5% just a quarter ago. But even with that guidance, the stock is still valued at around 18 times full-year estimates, which frankly is a pretty opportunistic look at this one.
Chris Hill: Well, and you think about all of the pent-up demand in 2022, particularly over the summer, it makes sense that the guidance would not be amazing.
Jason Moser: Yeah, absolutely.
Chris Hill: Target's first-quarter results were better than expected, with inventory levels continuing to improve. Shares down a little bit this week, Ron, but it seemed like a somewhat similar quarter to what we saw out of Walmart.
Ron Gross: Except that Target focuses more on those bigger-ticket nonessential items and that's where the two diverge. Walmart was strong because they focused on grocery and essential. Target struggled because they focused on the bigger ticket. You can see that showing up in the numbers which are better than expected in some circumstances, but pretty weak in general. Sales only up 0.5%. Comparable sales came in flat, digital sales were down 3.4%, so we're seeing not great numbers here for the quarter. Sales of food and beverage were up as we saw with Walmart, but things like apparel, home goods, electronics fell rather sharply. Discretionary categories make up 54% of Target's annual sales so if those are weak, the numbers are just going to come in weak as well. Inventory was down 16%, they're trying to work through this excess inventory that they've had since the pandemic when they were inventoried in the wrong direction. Earnings down 6%, second-quarter guidance was weak, but management did maintain its full-year guidance. But as we talked about with Walmart and them being conservative, executives used the word cautious 13 times during theearnings call They're not feeling very confident about their visibility into the future. Only 20 times forward guidance, I like the company in general, but they are working through the environment and the inventory problems they had from the past.
Jason Moser: I feel like I'm rubbing off on Ron here a little, they are searching terminology, how many times these things were used in the call?
Ron Gross: The extra mile for the listeners.
Chris Hill: I was just going to say, if you just had the past 15 months that CEO Brian Cornell had had, wouldn't you be using the word cautious over and over again?
Jason Moser: Be very cautious about how many times you use the word cautious.
Chris Hill: On a related note, Cornell, more so than really any other retail CEO this week was talking about organized retail theft. The challenge that they are facing, I know that this is something that every retail business deals with. Cornell was really talking about it as being a significant problem, is that something to watch if you're looking at Target over the next 6-12 months, how they deal with this more so than others?
Ron Gross: Absolutely, because they're calling out a big number, $500 million due to shrink or theft. That's a very big number. I almost can't see how it's going to be that big so let's keep an eye on that, but they're not the only ones. Walmart mentioned it, most major retailers are talking about it. It is a major problem in retail right now.
Chris Hill: If you've got $3,000 burning a hole in your pocket, good news. There's a brand-new gadget coming to market with your name on it. Details after the break so stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser and Ron Gross. Shares of Foot Locker fell 25% on Friday after first-quarter profits were solidly lower than Wall Street was expecting. The athletic apparel retailer also lowered guidance. Ron, CEO Mary Dillon did great things when she was running Ulta Beauty. Boy, she's got our work cut out for her at Foot Locker.
Ron Gross: This is not going to be easy for her. She joined last year and they developed what they're calling their lace-up strategy. Maybe too cute there. But their lace-up strategy, it includes moving away from shopping malls, closing 400 underperforming stores, decreasing their dependence on Nike, which was significant, and improving their digital operation. Not working quite yet, Chris, because these numbers are very weak and they were forced to lower guidance. Total sales down 11%, same-store sales down 9%. They blame macroeconomic headwinds, including lower income tax refunds, changing vendor mix. They're repositioning their Champs brand and they had to take higher markdowns in order to move product, and they also did talk about shrink and theft as well. Adjusted profits down 57%, these are really weak numbers. They cut their guidance, they expect sales for the current year to fall between 6.5% and 8%. They did name a new CFO this week, but they've got their work to do, trading only 15 times guidance, probably appropriate, and maybe should be even cheaper in quotes. To bet on this company would be to bet on a significant turnaround.
Chris Hill: I was just going to say, you look at the stock, the valuation. It's obviously cheaper today than it was last week, but, to use a phrase Jason Moser has used in the past, it seems like you need to pack a lunch on this one.
Ron Gross: It's going to take a while and they don't really seem to be very different to me than a lot of the other apparel stores that you see in the average mall, so they have their work cut out for them.
Chris Hill: Apple is planning to hold its annual developers conference on June 5th, and details of the event are starting to leak out. The Wall Street Journal reported this week that Apple is expected to unveil a mixed-reality headset resembling a pair of ski goggles that comes with an external battery pack at a price tag of $3,000. Jason, I will not be among the first to buy this device, but if any company can pull this off, I have to believe it's Apple.
Jason Moser: Maybe. I think consumer devices for this nascent market in mixed reality, it cannot stay $3,000. I think that's just prohibitively expensive and I don't think very many people will be clamoring to get that device, but it is Apple, there will be some. Then that really is the power of their brand and ultimately the fact that they really make good stuff. As time goes on, we'll see that price come down. We'll see more and more experimentation with core use cases. Is it just that standard hardware thing and they introduce something new that will find its way into the market. Demand either materializes or it doesn't, if it doesn't, you bring the price down. I think at some point, though, the price is only part of the equation. Really, when it comes to this mixed-reality stuff, it's finding the use cases. I think there are two opportunities ultimately in play here and I know a lot of the focus is on the consumer. Getting a headset and escaping off into another world, but you look at industrial augmented virtual mixed reality, industrial has gained far more traction in recent years simply because of the clear and beneficial use cases. You're thinking of things like 3D, step-by-step operating, repair instructions, a dashboard of the analytics data to be able to help assess and complete a task, things like healthcare. If you've got companies like PTC and Ansys on the software side, Microsoft with its HoloLens, a lot of investments they've made there, not really working out either. Apple's just sitting there, biding its time, watching this market unfold and I think that's the right thing to do, particularly with its scale and its resources. But I would imagine $3,000 is not going to have that thing flying off the shelves.
Chris Hill: There are a couple of interesting things at play here. One of which is the fact, at least according to the report in The Wall Street Journal, this is more so than any new device launch that Apple has had probably in its history -- this thing is not ready to go. They are reportedly planning to come out with something that is in the beta phase at this point. The other thing is think back to earlier this month, the response we saw for Alphabet, Google had its annual developers conference. The response was so positive to what they unveiled. By the way, this $3,000 device, this is not going to be the only thing Apple unveils at their developer conference. From a stock perspective, it's going to be interesting to see what happens in early June, the response to this and what may come in in the market?
Jason Moser: I don't think this is anything that is a tailwind or a headwind, either, for the business in the near term, I think it makes sense they need to get into this market at some point sooner rather than later, unless they just get passed by everyone. But again, it does feel like from the consumer's perspective, this really is a market that's still looking for those core use cases and the technology is only going to be able to do so much there.
Chris Hill: Last week on the show, Andy Cross called out Deere as the stock on his radar. On Friday morning, Deere raised guidance after second-quarter profits came in higher than expected. You tell me, Ron, how they do?
Ron Gross: They did well and as you said, they were able to increase their guidance as supply chain problems ease, not go away, but they're easing and the company was able to benefit from higher prices. It's a very cyclical business, but they're in a strong part of the cycle right now, even an upgrade cycle, you could probably call it, sales were up 30%. There's demand by farmers for new equipment and parts to repair aging machinery that they haven't really upgraded in quite some time. Sales rose across each of the company's three segments on higher prices and volume. Their large farm equipment segment, which is their largest, rose 53% from a year earlier and the profits more than doubled for that segment. Real strong. Construction up 23%, small machinery up 16%. Margins widened as they controlled costs and as those supply chain constraints, as I mentioned, started to ease. The one weak part of their business was their financial services business. That's a very small part of the business down significantly because of the movements around interest rates, but nothing to be concerned about. Earnings up 42%, raised guidance, orders remain strong even though crop commodity prices continue to come down. If that continues, that's where the cycle is going to reverse at some point eventually, but for now they felt like they could raise guidance, only trading 12 times forward, which is similar to where Caterpillar is now, so that makes sense.
Chris Hill: John May is one of those executives whose timing is maybe a little unfortunate, he became CEO of Deere right before the pandemic. Impressive that he's raising guidance at a time like this, particularly when you factor in, as Doug McMillon said, the uncertainty around inflation affects every business.
Ron Gross: Deere has done a good job with new products, bringing software to their products in a pretty big way which will impact margins in a good way going forward. But it is cyclical. You can't really escape those macroeconomic cycles, so investing in Deere, you have to understand that.
Chris Hill: On Wednesday, Netflix held its upfront presentation to advertisers and said that its new ad-supported tier has nearly 5 million monthly active users. That must have been music to Wall Street's ears because on Thursday, shares of Netflix up 10%, Jason.
Jason Moser: I understand the enthusiasm here and let's dig into why that's the case. First and foremost, it feels like the honeymoon is over here. If you want ad-free TV, you got to prepare to pay up for it, because a clear strategy here for these businesses going forward, the economics of ad-supported is they're very compelling for these businesses, so they're really trying to push more and more subscribers to those ad-supported models. You start with Netflix, for example in the U.S., they noted in their most recent earnings report that the ads plan has already reached a total average revenue per member, which is the subscription plus the ad revenue that's greater than their standard plan. Thanks to their licensing deals, the ad-supported plan has on average around 95% content parity globally with their ad-free plans. You're getting basically apples-to-apples there. Going to Disney. You're looking at Disney, you've seen the same thing, Iger talked about on the call here. They have realized the economic benefits of the ad-supported plan. They're actually going to raise the price of the ad-free plans in order to create essentially more demand for the ad-supported plan because the ad-supported plan is so economically beneficial to the models there. They're seeing the same thing, average revenue per user's just turning in some very promising numbers there. Then you look at something like Trade Desk, which is the backbone of a lot of those programmatic advertising to begin with. They talk about hearing this language from Netflix regarding programmatic ads, they are obviously partnering with Disney on that front as well. You see a number of different ways to win in this space, but clearly, Netflix, Disney, and The Trade Desk are three of the companies that are really leading the way here it seems.
Ron Gross: I'm so spoiled, every time I hit fast-forward on a show and it says fast-forward is not enabled, I'll just throw the remote.
Jason Moser: Well, and you're seeing more and more content getting on platforms like Freevee, that Amazon-supported Freevee offering. What have you seen Jury Duty? Come on, guys. You got to check that one out.
Chris Hill: Guys. We'll see you later in the show. After the break, gets our man in Australia's Scott Phillips. This is Motley Fool Money. Welcome back to Motley Fool Money, I'm Chris Hill. Scott Phillips is the chief investing officer at Motley Fool Australia. He is also the host of a very popular investing podcast, which also goes by the name of Motley Fool Money. He joins me now from the Gold Coast. Scott, it's been too long. Thanks so much for making the time.
Scott Phillips: Chris, you are very kind man and I'm always humbled to appear on the radio show and can I say, I drafted shamelessly off Motley Fool Money. The original, the OG, called ours the same thing because hey, imitation is the sincerest form of flattery.
Chris Hill: Absolutely, I do want to talk about the market in Australia, but I am curious what the view of the U.S. stock market is from your vantage point. At a high level, 2022 was the worst year in over a decade. 2023 here in the States has been dominated by, yes, on a business level, a lot of talk of AI, but also at a macro level, a lot of discussion of interest rate hikes and the debt ceiling and I'm curious, when you look at stocks in America, what stands out to you?
Scott Phillips: Chris, I still believe that you are, don't let an Australian listen to this. The U.S. economy has some of the very best businesses on the planet. That's no surprise to you or no surprise to your listeners. I think what's been fascinating for Australian investors is the last 12 months, 2022 particular, I should say. In Australia wasn't as bad as in the U.S. because we have an abundance of resources, companies, and banks in Australia. Despite some of the banking dramas you guys have been having, 2022 is actually a relatively good year because the energy sector, which really is big in Australia, was really successful. I look at the U.S. over the last 12-18 months. I think there's been a bit of a surprise. A lot of our growth and tech stocks got smashed as yours did during 2022. The recovery of your market not surprising at all. I am very excited about the future for American companies. I think the work that's being done by some of the very best, biggest, fastest-growing companies on the planet is happening on the Nasdaq and the New York Stock Exchange. While the index itself with great opportunity for Australian investors to jump in the U.S. stocks last year. But I'm every bit as excited as ever have been about the future of U.S.-listed companies, of the value that's being created by some of the best businesses on the planet.
Chris Hill: What is the current state of play these days for Aussie investors? Based on comments that you've made on your show or things that you've written -- we follow each other on Twitter -- based on some of your tweets, I get the sense that, you think the ASX is, I don't know if bargain is the right word, but it seems like an opportunity.
Scott Phillips: I think that's right. I love the way you phrase that, mate. I think there's always someone out there, your listeners know this. There's always someone out there who's prepared to say, the next crash is coming or everything's going to be terrible. Watch out for the next bear market. We know the usual suspects. If you look at the long-term history of the Australian Stock Exchange, the U.S. stock markets, the developed world stock markets, they go up and to the right. Not in a straight line, not without pullbacks, not without years like 2022, but the future is always bright. The best time to buy shares is always today. Not because necessarily I know what's going to happen tomorrow, but because if you look back over any stretch of time, the immense value created by investing in public markets has just been phenomenal. I thought quite honestly mate for the last I've been working for The Motley Fool. Not quite as long as you have, but for a long time now and I've been saying since day 1, and today and hopefully many years into the future, buy stocks today. Not because I'm making any macro forecasts or market forecasts. We all think that's a silly thing to try and do. But because the awesome power of compounding by some of the best companies on the planet is just something you don't want to stand in the way of. Betting against that is crazy. Honestly, I actually do think right now, particularly for stock pickers in the Australian market, some of our companies are very expensive, but there are a lot that are still suffering from market jitters. From pessimism, from concern about what might come next economically, that I think in 3, 5, and 10 years time we'll look back and say, why did we let the next three months worry us when the 10 years followed that are very likely to be very good. I absolutely would be investing in general as always, but I do think there is absolutely a great opportunity for stock pickers in the ASX.
Chris Hill: You and I have talked in the past about Domino's Pizza, among other companies based in the U.S. is doing well in Australia. For folks listening, what's another American business that you think is faring pretty well and connecting with either consumers or businesses in Australia?
Scott Phillips: That's a great question, mate, and I think I hope your listeners know that, no, I haven't seen the numbers recently, but not that many years ago, half of the revenue from the S&P 500 companies came outside the U.S. If you open up any cupboard in Australia, if you work with any business in Australia, the number of U.S. companies that we deal with and work with remains really strong. This won't surprise your listeners, it's not a particularly original answer, but I'm a long-term shareholder of Amazon. I love that business. I think it's an amazing company and it continues to do really well around the world. If I give you all this is an antipodean, a Down Under perspective on Amazon, that it is making every bit of the same inroads here as has been making in the U.S. for many years. It remains an incredibly strong, incredibly successful business. I think it will be for a long time to come. Some other businesses that I think MongoDB, a business that you've talked about a lot is a business that does continue to again, make inroads here.
The world of software is something Australian companies just don't compete anywhere near as well as we do in other industries because the most dominant global software businesses tend to be born over there. Now, where you are and the speed of the internet, we all know is just phenomenally fast. The growth of that has been incredible. I am as you said, interested in AI and the growth of that. Again, think about the cloud, the web businesses, think about Microsoft's cloud business. Amazon's cloud business again, Google, the same thing. I own shares in Alphabet as well. These are just phenomenal businesses and I think the growth of these around the world. I really want your listeners to know you can invest globally from right there at home, because of the sheer scale and breadth of some of your best businesses.
Chris Hill: Speaking of software, one Australian-based business that we talked recently on the show about was Atlassian. Let's go beyond that. What's one or two other publicly traded Australian businesses that you think more Americans should know about?
Scott Phillips: Let me give you two Chris. One is Xero, the code in Australia is XRO. It is a cloud accounting business. Some of your listeners may be using Xero. It is available in the U.S., it's not anywhere near as dominant there as it is here. It's actually a New Zealand business but Australia claims all within New Zealand businesses as our own. We'll keep doing that. It is ASX listed though. It is a company that has something like 70% market share in New Zealand. It's the most dominant cloud accounting software package here in Australia. Big in the U.K., hoping to grow in the U.S. It is a really fantastic business, with visionary leadership. It took the Salesforce software-as-a-service model and really ran with it hard and continues to make every post a winner. The other one's a very different business called TechnologyOne. You guys talk about enterprise resource planning software a lot. This is a company -- TNE is the code on the ASX. It is a company that basically provides enterprise software, as I said, for some really sticky customers and if you're looking for defensive software, these guys provide software for government, education and healthcare. They are three sectors that aren't going away anytime soon. Their customers are pretty sticky and they're going to be around. Their earnings growth has just been almost staircase over the last 10, 15, years. They continue to get customers. Their retention rate is above 99% in terms of number of customers. It's a really great quality Australian software business that I think has a long, long way to run.
Chris Hill: I know you're passionate about investing, but I know there is something else coming up in a few months that you're also passionate about and I'm talking of course, about the Rugby World Cup. It's going to be held in France. It's been 24 years. Scott, since Australia has won the Rugby World Cup and I'm curious how you're feeling about the Wallabies' chances?
Scott Phillips: Mate, we are going to win this one. No, there is no question about it, Chris. We are absolutely lay down [inaudible]. I can also say, by the way, the women's World Cup is being held in Australia very soon, too. We have two big World Cups. I feel very good about our chances in both. I'm sorry to your Kiwi listeners, to your U.K. listeners, to your European listeners, who think their teams are going to win. I hate to break it to them. I'm going to say here first and exclusively, Chris, on Motley Fool Money, Australia will win both rugby World Cups. I have absolutely every confidence. Not even a question, but I might as well about the turning up with that good.
Chris Hill: You can check out the Australian version of Motley Fool Money on whatever podcast app is your favorite. It is free. You get a different perspective on the stock market and you get more insights and analysis from this guy, Scott Phillips. Always great talking to you. Thank you so much for being here.
Scott Phillips: Chris, this is absolutely my pleasure and mate, I will not leave this podcast without thanking you for your many years of loyal service to The Motley Fool. More importantly, I think to Motley Fool Money and to your listeners. I'm a loyal listener, I have always been. We will miss you dearly at the company. Your listeners will miss you even more, mate. Thank you very much for everything you've done for investors and for listeners across your time at The Motley Fool. We are very lucky and grateful for your service.
Chris Hill: I appreciate it, Scott. Thank you so much. Up next, Jason Moser and Ron Gross return. They got a couple of stocks on their radar. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money.
Chris Hill here in studio with Jason Moser and Ron Gross. Guys, where we sit right now in the studio, we're just two blocks away from the U.S. Patent and Trademark Office. This is relevant because this week, Taco Bell petitioned the PTO to be able to use the phrase "Taco Tuesday," which of course begs the question, why can't they? That's because another restaurant chain holds the trademark on the phrase and it is not the restaurant you may have guessed. It is Taco John's, a chain headquartered in Wyoming. They have held the trademark on the phrase Taco Tuesday since 1989, Ron. I'm a little torn here because look, Taco Bell is 20 times the size of Taco John's, this is David versus Goliath. I'm on Goliath's side because Taco Bell isn't saying we want the phrase, they're saying, hey, everybody should get to use this phrase.
Ron Gross: Well, since I own the trademark on the word Tuesday, I'd pay a little bit every time they use Taco Tuesday. Who am I to complain? But it's a little much for me.
Jason Moser: The history, this is fascinating and it started out as Taco Twosday, T-W-O-S-D-A-Y. They were just saying, hey, we're going to say, two tacos for $0.99 to try to gin up some sales back in like 1980 or something like that. It worked out. Then they took it from here. It's fascinating to see the Patent and Trademark Office. They granted this trademark in '89. Attorneys say it's eligible for protection. Other attorneys feel like Taco Bell has a strong case here because U.S. trademark law, "Prevents the registration of common phrases or phrases that become commonplace after a registration is granted." Ultimately Chris, the biggest tragedy of all of this, it seems like the lawyers are ultimately winners here.
Ron Gross: Am I right that LeBron James tried to do this as well unsuccessfully?
Chris Hill: He did. Give it to the people. This should belong to all of us. Before we get to the radar stocks, I need to mention something that came up earlier in the week, an announcement that went out to podcast and radio trade media that I will be leaving The Motley Fool at the end of the month. My last episode on the podcast is going to be May 30th and I will at that time share some thoughts and answer some questions about my departure. But this is my last appearance on our radio show. I wanted to say a quick word of thanks to the people who run our affiliate radio stations. We started Motley Fool Money in February 2009. In January 2010, this became the first podcast to be heard on commercial radio. I know podcasting has grown in popularity over the years, but broadcast radio is an important form of media.
I'm proud of the fact that this show is now heard on more than 75 stations, making it the No. 1 stock investing radio show in America. The economics of weekend talk radio are such that rather than running original programs like ours, a lot of talk stations just sell the time to run things like hour-long commercials for health supplements. I wanted to thank a few of the radio executives who made the decision to make this show available to their audience. Robin Bertolucci in Los Angeles; Russ Reynolds in San Francisco; Lisa Wolf right here in Washington, D.C.; Rene York in Phoenix; Max Miller in Sacramento; and Janine Lee in Hartford, Connecticut. These are the early investors in Motley Fool Money as a radio show. Their stamp of approval helped us get to where we are today. I just wanted to thank them on my last appearance on the radio show.
Ron Gross: Well said, Chris. I'll be brief so I don't get emotional here, but we've been doing this together for around 14 years. It has been a highlight of my time here at the Fool. You've made it so easy and so fun, and it's been a true pleasure. We will miss you, but don't be a stranger, please.
Chris Hill: I won't.
Jason Moser: I will echo those sentiments. I mean, 14 years, it's more great memories that I think probably any of us can really pull. But one that will always stand out was when you and Dan and I loaded up the train and went up to New York City and taped Market Foolery on location at Shake Shack to celebrate their IPO. We had lunch, they brought us one of every desert. It was just a sublime day and that'd be one that always stands out. Thank you for everything and we'll miss you.
Chris Hill: I appreciate that. Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd is going to hit you with a question. Ron, you're up first. What are you looking at this week?
Ron Gross: Dan, you're going to love it. I'm going with good old Owens Corning, OC, largest manufacturer of fiberglass insulation and the second-largest producer of asphalt roofing shingles in the US. If that doesn't get your blood pumping Dan, I don't know what will, 30% of revenue generated internationally. This is the same Owens Corning that had to file for bankruptcy back in 2000 as a result of asbestos-related injuries. The company did reemerge six years later. Their plan to reorganize includes a trust to resolve both the current and that future liability from that. Demand is obviously driven by new residential construction repair and remodelling. Increasingly difficult building codes that require energy efficiency. Since initiating its dividend in 2014, increased its payout every year at a compound annual rate of 12.5%, also reduced its share count by 23% over the same period, currently has a 2% dividend yield, trading for a little over 10 times, which is relatively cheap compared to others in that industry.
Chris Hill: Dan, question about Owens Corning?
Dan Boyd: Ron, what equipment do you have at your house for installation and roofing? I know you're a big DIY guy. You got to be a big fan of some of Owens Corning's products.
Ron Gross: Me and the Pink Panther are constantly insulating my house.
Chris Hill: Jason Moser, what are you looking at this week?
Jason Moser: Well, Dan, I am a little bit more of a DIY guy. I don't know how I can follow up Ron here, but I'm going to try. Lowe's, ticker L-O-W, we've got earnings for Lowe's coming out on Tuesday morning next week. A fun fact for you all, the five-year charts here, we were talking about Home Depot earlier. Lowe's is up 165% over the last five years versus Home Depot's 75%. Now, Lowe's share account is down about 28% compared to Home Depot's 8.5%. That has played into that calculus for sure. But just interesting to see, for all the talk and the credit we give to Home Depot, Lowe's has really brought the results these past five years. The question of course, is, given what we saw with Home Depot this week, what will things look like for Lowe's? Next week they did talk about residential investment being under some pressure. Talked about inflation, higher interest rates, more cautious consumer. They are forecasting a slight decline in the home improvement market. To that end, they did guide for sales ranging in 88-90 billion range, which would be down from a year ago and then comps expected to be flat to down 2%. I think really the big question mark is, will we see revisions to that guidance given what we saw with Home Depot this week? I wouldn't be terribly surprised to see that, but we shall see.
Chris Hill: Dan, question about Lowe's?
Dan Boyd: Not really a question Chris, more of a comment. I always really enjoy Lowe's, a whole lot more than the Home Depot. I think it is a much better shopping experience. The stores are nicer, the staff is more knowledgeable and I think it's just better. I always prefer Lowe's to a Home Depot.
Jason Moser: That's really interesting. I guess I go wherever it's most convenient. I have to go to Home Depot tomorrow. As a matter of fact, to pick up some deck wash -- one hell of a weekend plan and let me tell you.
Ron Gross: By the way, plug for Ace Hardware, don't sleep on Ace Hardware, a very strong experience.
Jason Moser: That's where I go get all my traeger stuff because it's really close to our house. They've got all the traeger goodies.
Chris Hill: What do you want to add to your watch list, Dan.
Dan Boyd: I'm going to go with Lowe's, Chris. I just like going. As a homeowner, I think it's a great place.
Chris Hill: Jason Moser, Ron Gross, guys, thanks for being here.
Ron Gross: Thanks, Chris.
Chris Hill: That's going do it for this week's Motley Fool Money radio show. This show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Hill has positions in Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Lowe's Companies, Microsoft, Nike, Target, The Trade Desk, and Walt Disney. Dan Boyd has positions in Amazon.com and Walt Disney. Jason Moser has positions in Alphabet, Amazon.com, Apple, Home Depot, Nike, The Trade Desk, and Walt Disney. Ron Gross has positions in Amazon.com, Apple, Domino's Pizza, Microsoft, MongoDB, Nike, Target, and Walt Disney. Scott Phillips has positions in Alphabet, Amazon.com, Microsoft, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Domino's Pizza, Home Depot, Microsoft, MongoDB, Netflix, Nike, Salesforce, Target, Technology One, The Trade Desk, Ulta Beauty, Walmart, Walt Disney, and Xero. The Motley Fool recommends Deere, Foot Locker, Lowe's Companies, and Owens Corning and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Plus, Scott Phillips, chief investment officer at Motley Fool Australia, shares the current state of play for investors Down Under, Australian stocks to watch, and predictions for this year's Rugby World Cup. Robin Bertolucci in Los Angeles; Russ Reynolds in San Francisco; Lisa Wolf right here in Washington, D.C.; Rene York in Phoenix; Max Miller in Sacramento; and Janine Lee in Hartford, Connecticut. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Domino's Pizza, Home Depot, Microsoft, MongoDB, Netflix, Nike, Salesforce, Target, Technology One, The Trade Desk, Ulta Beauty, Walmart, Walt Disney, and Xero.
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Chris Hill has positions in Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Lowe's Companies, Microsoft, Nike, Target, The Trade Desk, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Domino's Pizza, Home Depot, Microsoft, MongoDB, Netflix, Nike, Salesforce, Target, Technology One, The Trade Desk, Ulta Beauty, Walmart, Walt Disney, and Xero. The Motley Fool recommends Deere, Foot Locker, Lowe's Companies, and Owens Corning and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney.
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Plus, Scott Phillips, chief investment officer at Motley Fool Australia, shares the current state of play for investors Down Under, Australian stocks to watch, and predictions for this year's Rugby World Cup. I'm Chris Hill, joining me in studio, Motley Fool senior analyst Jason Moser and Ron Gross. Chris Hill: Absolutely, I do want to talk about the market in Australia, but I am curious what the view of the U.S. stock market is from your vantage point.
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Chris Hill: Absolutely, I do want to talk about the market in Australia, but I am curious what the view of the U.S. stock market is from your vantage point. Chris Hill: Jason Moser, Ron Gross, guys, thanks for being here. Chris Hill: That's going do it for this week's Motley Fool Money radio show.
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2023-05-27 00:00:00 UTC
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3 Things About Meta Platforms That Smart Investors Know
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https://www.nasdaq.com/articles/3-things-about-meta-platforms-that-smart-investors-know-2
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Most investors likely recognize Meta Platforms (NASDAQ: META) as the social media titan that reaches more than 3.8 billion people monthly through Facebook, Messenger, Instagram, and WhatsApp. They also probably know it's struggled over the past year with Apple's (NASDAQ: AAPL) privacy update on iOS, which crippled its ability to craft targeted ads from third-party data, and intense competition from ByteDance's TikTok, which lured away a lot of its younger users.
Meta is still a divisive stock. The bulls believe it can overcome its near-term challenges with new advertising tools and Reels' short videos, while the bears see it as an aging tech giant which is losing its relevance in a changing world. I discussed Meta's strengths and weaknesses in previous articles, but today I'll dive deeper into three other aspects of Meta's business that smart investors should also be familiar with: its VR plans, its AI ambitions, and its interest in challenging Twitter.
Image source: Meta Platforms.
1. It will keep burning billions of dollars in the metaverse
Meta's Reality Labs division, which houses its VR and AR products, has burned billions of dollars over the past four years:
REALITY LABS METRIC
2019
2020
2021
2022
Revenue
$501M
$1.14B
$2.27B
$2.16B
Operating Loss
($4.50B)
($6.62B)
($10.19B)
($13.72B)
Data source: Meta Platforms.
That spending might have seemed justified when its Reality Labs revenues were soaring from 2019 through 2021, but the segment's growth ground to a halt in 2022. Meta initially gained some traction among mainstream consumers with its launch of the stand-alone Quest VR headset in 2019, and that momentum continued with the launch of its smaller and more powerful Quest 2 headset in 2020. Meta also attempted to capitalize on the Quest's popularity by launching more VR games and connecting its VR users to each other through its Horizon Worlds VR playground.
Meta recently claimed to have sold about 20 million Quest headsets over the past four years, but Horizon Worlds only reportedly hosted about 200,000 monthly users in late 2022. Therefore, it seems like a lot of people simply tried out the Quest instead of sticking with it. That's troubling since Meta is likely selling the Quest at a loss in hopes of covering its costs through its sales of higher-margin VR applications. There are also other signs this nascent market is flickering out: According to CSS Insight, global shipments of VR and AR devices tumbled 9.6% in 2022.
Yet Meta remains committed to expanding this money-losing business. During its latest conference call in April, CFO Susan Li predicted the Reality Labs segment's operating losses would "increase year over year in 2023." CEO Mark Zuckerberg also reiterated his belief that "building the metaverse is a long-term project."
2. It's developing its own AI chips
Meta's data centers currently use Nvidia's (NASDAQ: NVDA) high-end GPUs to accelerate their machine learning and AI tasks. But it's also been developing an in-house custom AI chip that could replace some of Nvidia's chips by 2025.
These Meta Training and Inference Accelerator (MTIA) chips will be programmable ASIC chips that can be customized for specific tasks. And unlike the current setup for AI processing -- which generally requires a GPU to accelerate tasks for a CPU -- these ASIC chips could handle all of those tasks on their own without stand-alone CPUs or GPUs.
Meta recently poached an AI chipmaking team from the British chip designer Graphcore to accelerate the development of these in-house chips. Nvidia's investors should pay close attention to that move since Graphcore previously claimed its "graph processing" approach can tackle AI tasks more efficiently than CPUs or GPUs. Meta's AI chipmaking efforts might squeeze its near-term margins, but they could also enable its data centers to operate more efficiently over the long term.
3. It could challenge Twitter in the near future
Lastly, Meta has reportedly been testing out a Twitter-like app for Instagram. The details are sparse at the moment, but it could be a decentralized text-based platform that works with Twitter's smaller competitor Mastodon and other apps.
If Instagram actually launches that app, it could capitalize on the chaos at Twitter and gain some traction as an alternative "town square" app. It could also enable it to capture more first-party data to craft better-targeted ads.
Which of these issues will move the needle the most?
These three things probably won't matter as much as Meta's near-term challenges with Apple and TikTok. However, investors should still keep a close eye on its steadfast commitment to AR and VR products -- which will either end in a financial disaster or give it a firm first mover's advantage in those two next-gen markets. Its development of AI chips and a clone of Twitter are worth keeping an eye on, but they probably won't move the needle as much as its ambitious metaverse plans.
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.
See the 10 stocks
*Stock Advisor returns as of May 22, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, Meta Platforms, 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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They also probably know it's struggled over the past year with Apple's (NASDAQ: AAPL) privacy update on iOS, which crippled its ability to craft targeted ads from third-party data, and intense competition from ByteDance's TikTok, which lured away a lot of its younger users. Nvidia's investors should pay close attention to that move since Graphcore previously claimed its "graph processing" approach can tackle AI tasks more efficiently than CPUs or GPUs. However, investors should still keep a close eye on its steadfast commitment to AR and VR products -- which will either end in a financial disaster or give it a firm first mover's advantage in those two next-gen markets.
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They also probably know it's struggled over the past year with Apple's (NASDAQ: AAPL) privacy update on iOS, which crippled its ability to craft targeted ads from third-party data, and intense competition from ByteDance's TikTok, which lured away a lot of its younger users. It will keep burning billions of dollars in the metaverse Meta's Reality Labs division, which houses its VR and AR products, has burned billions of dollars over the past four years: It's developing its own AI chips Meta's data centers currently use Nvidia's (NASDAQ: NVDA) high-end GPUs to accelerate their machine learning and AI tasks.
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They also probably know it's struggled over the past year with Apple's (NASDAQ: AAPL) privacy update on iOS, which crippled its ability to craft targeted ads from third-party data, and intense competition from ByteDance's TikTok, which lured away a lot of its younger users. I discussed Meta's strengths and weaknesses in previous articles, but today I'll dive deeper into three other aspects of Meta's business that smart investors should also be familiar with: its VR plans, its AI ambitions, and its interest in challenging Twitter. It's developing its own AI chips Meta's data centers currently use Nvidia's (NASDAQ: NVDA) high-end GPUs to accelerate their machine learning and AI tasks.
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They also probably know it's struggled over the past year with Apple's (NASDAQ: AAPL) privacy update on iOS, which crippled its ability to craft targeted ads from third-party data, and intense competition from ByteDance's TikTok, which lured away a lot of its younger users. Its development of AI chips and a clone of Twitter are worth keeping an eye on, but they probably won't move the needle as much as its ambitious metaverse plans. See the 10 stocks *Stock Advisor returns as of May 22, 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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15644.0
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2023-05-27 00:00:00 UTC
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The Chip War's Next Chapter
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AAPL
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https://www.nasdaq.com/articles/the-chip-wars-next-chapter
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In this podcast, Motley Fool analysts Asit Sharma and Dylan Lewis discuss:
China's ban on Micron chips for companies working on key infrastructure projects.
Apple's multibillion-dollar deal with Broadcom and the former's increased investment in U.S. manufacturing and supply chain.
How investors should be looking at the tech hardware companies in their portfolios.
Plus, Motley Fool host Deidre Woollard talks with Yanely Espinal, author of Mind Your Money, about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 22, 2023
This video was recorded on May 24, 2023.
Dylan Lewis: We're digging into the chipmakers. Motley Fool Money starts now. I'm Dylan Lewis, and I'm joined over the airwaves by Motley Fool analyst Asit Sharma. Asit, thanks for joining me.
Asit Sharma: Dylan, thanks for having me. Good to be with you.
Dylan Lewis: We want to talk about chip news. There's a lot of it this week in the component and hardware supplier market. Shares of Micron are down 4% this week after the Chinese government effectively banned Chinese companies working on key infrastructure projects from buying Micron's chips. The announcement came after a two-month-long cybersecurity review, and it seems to be an answer to past restrictions the U.S. government set on chips and chipmaking technology. Asit, there is a lot of angles to the story. I think maybe we can start out with the impact, specifically to Micron, and then broaden things out because I think it's an indication of where the chipmaking market is.
Asit Sharma: Sure, Dylan. For Micron, this has been a growth market for them. They tend to add Hong Kong to mainland China when they are discussing their results, so if you look back at 2020, mainland China plus Hong Kong, if we're thinking in terms of companies that are headquartered in these regions, made up about 39% of Micron's sales. Now in the past two years, they make up a smaller percentage, about 25% of total revenue, because Taiwan, which is more of an ally to the U.S. in this big geopolitical game, has taken up some of that slack but is still important markets. Now the CFO of Micron gave a little bit of information at an investor conference, and he said, basically, they're trying to assess the impact. They do not have a lot of specific information from the Chinese government on what constitutes key infrastructure. Based on what they think, they feel that they'll have low-single-digits to maybe high-single-digits, 9 or 10, possibly, percent impact on the revenue. It's not a small bite, but it could be something manageable in the near term.
Dylan Lewis: Now Micron is a big enough company that its exclusion, even if it is limited to those key infrastructure projects and people working on them, however that may be defined, will create some noticeable space in China's semiconductor industry. I'm curious. Do you feel like this is something where we'll see domestic Chinese manufacturers step into that or other providers step into that space?
Asit Sharma: I think this is something where domestic manufacturers can step in. Micron may be a little bit different than some of the other companies that have come to this conversation because they primarily focus on memory modules, which are a little bit easier to backfill in terms of supply. Some of the tit-for-tat between China and the U.S. has to do with chips that are extremely powerful and advanced, or ever-smaller chips where you get to 7 nanometers and below. This is less of a highly technical issue, but we have seen instances in which there have been considerable holes left for the Chinese government right now. Look back at Nvidia last year. The U.S. slapped some export controls over one of Nvidia's most powerful chips because the government is worried about China having access to supercomputing capabilities. Nvidia had a workaround in which they supplied a less powerful version of that same GPU, a graphic processing unit, so I think this is something where it will be relatively manageable for domestic companies to backfill some supply.
Dylan Lewis: I appreciate that nuance there. If I'm hearing you right, it sounds like this was maybe one of the easier ways for the Chinese government to step in and restrict and maybe have an answer to some of the restrictions the U.S. has covered without hindering domestic manufacturing and innovation too much.
Asit Sharma: Totally. I think here China gets a twofer in that the U.S. slapped some import restrictions on Huawei's products. We saw that back, I think, in 2021. That was about national security. The government phrased that as being against our national security interest because some of Huawei's technology was coming into our 5G network. Now similarly China has a bit of a chance to respond to that and also their protest that we are restricting their ability to do their normal technological investment and stuff for them, which has nothing to do with this global proxy war in artificial intelligence. For China, from their perspective, it's just about advancing manufacturing capabilities and R&D capabilities. Of course, this is what they're presenting, but the nuance, when you read into this, is exactly what you're saying, Dylan. It's a way to thumb their nose back without causing major harm to their infrastructure growth.
Dylan Lewis: If you're a tech company not named Micron, how closely are you paying attention to this story?
Asit Sharma: I think you're paying a lot of attention to this story because we understand that the Chinese tech industry is extremely vibrant. There's going to be supply going back and forth. No matter how much these two gargantuan countries try to decouple, it's going to take years. We're very interdependent in that whole chip supply chain. So you're paying attention because you realize you may have at risk, in some cases, but we're just talking about highest single-digits or maybe even to double-digits exposure. But there are going to be workarounds available. There will be ways where companies can continue to sell product. I don't see any companies getting just closed out of supply chains. So I think this is like boardroom strategy. Right now if you're not named Micron, you're seeing that war and thinking, if this particular branch of our product gets hit, how can we do an Nvidia-type workaround and offer the same architecture, but in a way that will comply with whatever the technical barrier is, that the government is pushing up?
Dylan Lewis: I love it when we have the opportunity to tackle a couple of stories that are all swirling in the same space, and this show is one of them. We got the benefit of another news item related to hardware manufacturers and component providers. That was that earlier this week, Broadcom and Apple announced a new multibillion-dollar agreement that will have the chipmaker providing 5G components to the iPhone maker. This new deal deepens the relationship between these two companies, and as a piece of the commitment, Apple announced to spend over $400 billion with domestic manufacturers and suppliers back in 2021. Asit, it seems like, to some extent, Apple is future-proofing some of the things that we were just talking about for its business.
Asit Sharma: Certainly. They're on the move. We've seen them slowly but surely moving supply out of China some of their manufacturing capability for the iPhone into India. That's going to take a while, but they're on that path. This is another way for Apple to diversify its supply chain. Now for Broadcom, that's the opposite. It stopped diversification. They're getting further concentrated. Dylan, as you and I were discussing before taping, they're already at 20% in terms of concentration risk with Apple. Apple makes up 20% of Broadcom revenues. This would seem to increase that. I will point out here that the 8-K release, that's the SEC filing that Broadcom put out, refers to the deal as a statement of work. In the world of procurement, a statement of work is not an ironclad guarantee that you're going to get a certain amount of revenue every year and that it's infallible. It's more like, hey, this is what the company intends to spend with us, and there's a high probability that we're going to realize this revenue, so it's good for Broadcom. You picked up on something I think which is important here for investors of Broadcom to look at, even though this worries you. Let's put it this way. Ten percent is a revenue hit. You can manage that on your P&L. Twenty percent, that's going to dig into earnings if you lose that customer. But the nuance here is that Apple is calling out in their press release that they are going to be buying up these FBAR filters. This is a type of RF filter. Just think of it as a little component in a phone which helps exclude bad signals and just helps with receptivity, so it's something really specialized. Not a lot of other companies can supply at this scale to Apple. I feel, even though it increases that concentration conceivably, maybe it's not so tricky for the Broadcom investor who's been with this company for years anyway living under this shadow.
Dylan Lewis: I was going to ask you about that because I think about the sleep number sometimes that we often suggest people try to find with their investments, and 20% for me in terms of individual stock in my portfolio, it starts to creep to that amount where I'm a little bit concerned. When you see that much reliance on a single customer, I could see how people would worry about that. On the flip side, Broadcom is not a small business. It may seem like a small business, Asit, relative to Apple's, it's about 1/10 the size at 270ish billion. But they are big enough that they are probably pretty meaningful to Apple's supply chain, even as they are so reliant on Apple themselves.
Asit Sharma: I agree, Dylan. The difference between a company that is Broadcom-size and maybe a much smaller company is that you've got the wherewithal to pile the profits onto your balance sheet. So if you do lose that customer where they reduce spend with you, you've already got these other avenues which you're exploring. You've put in the R&D. Big companies in some ways can scale and stay with one or two really big customers for a much longer time than, often, a smaller company can do. Although I will say, in the tech services industry, I like a lot of small consulting companies that are publicly traded that have these concentrations because they leapfrog and grow off the bigger company. That's living on the edge a little bit, but over time, even they broaden out their customer base.
Dylan Lewis: I want to take a step back before we wrap up the show and put these two stories together for a moment and talk a little bit about the state of hardware. There is I think no mistaking it at this point, Asit. Tensions and actions between China and the United States over tech policy continue to escalate. You mentioned tit-for-tat earlier. We're continuing to see that. Back in October, the U.S. government set limits on chips and chip manufacturing equipment that companies can supply to China. This Micron news seems to be China's response, and I think we see Apple putting hundreds of billions of dollars into U.S. manufacturing as a commitment that they're taking this pretty seriously. When you try to absorb all of this and think about, broadly, how people should be looking at the tech hardware companies in their portfolio, are there new or different questions that they should be asking when they're looking at businesses?
Asit Sharma: Dylan, I think investors should be looking at the number of these semiconductor companies they have and their aggregate effect on individual portfolios. There's so many great companies out there with amazing stories, like TSMC, like ASML, which makes the super high-end equipment that you have to have to output very tiny chips. You can easily get concentrated in your own portfolio just because there are so many great options. Nvidia is another one. I like Nvidia so much although their valuation is stretched right now. I think we might all have to do a little bit of Berkshire Hathaway-type exercise. They just trimmed TSMC from their portfolio, I believe, because of geopolitical risks. Maybe it is time to ask ourselves, how much exposure do I have to, like, the worst-case scenario between the U.S. and China? The worst-case scenario is that both of these countries shoot themselves in the foot because they're so eager to decouple, and they are so eager to either try to protect intellectual property or get an edge over the other country that we end up just disrupting supply chains, and we see many of these chipmakers suddenly without those easy markets that they've had access to. You still want to invest in this space, and we are seeing capital flows redirect. TSMC is going to be building plants in the U.S. The European Union is now trying to incentivize its chip industry and foreign companies to come build foundries there because they've seen how the U.S.' incentivizing of capacity is working out, and that there's a lot of uptake of that. So there's going to be, I think, still many places to invest. We're going to have to pay more attention than we were just a couple of years ago.
Dylan Lewis: Asit Sharma, thank you so much for joining me today.
Asit Sharma: Dylan, this is a lot of fun. I appreciate it.
Dylan Lewis: If your parents have trouble saving for the future, what do you do? Deidre Woollard cut up with Yanely Espinal, author of the upcoming book, Mind Your Money, to talk about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later.
Deidre Woollard: One of the things I found really interesting in your book, I don't see a lot of personal finance books do this, you go deep into financial history and that history of money. I love how you call the economists uncles. Why do you think it's so important for people to understand that history of money, even stuff that's maybe even hundreds of years old?
Yanely Espinal: You know what, I think that our human brains have changed a lot given all of the technological advancements that have occurred over the past couple of decades. But ultimately our DNA is wired to do one thing and that's to connect and to survive. When we think about that, how our brains function, especially in relation to money, there are going to be some core things that you just need to know because these are just facts. I feel I was never exposed to that way of thinking or even just exposed to the idea that my brain, when I'm thinking about money, is going to function differently based on my belief systems, based on my values, and based on my perception, so if I could influence and change and take control and power over my beliefs, my values, and my perceptions, then I can actually control my thoughts and feelings and behaviors with money. I feel that all is rooted in history of money, how it works, understanding the behavioral economics component of money, so the psychology of money, and then also understanding the systems that are at play. I mentioned credit and your credit syllabus, but there's a much larger credit system at play which I didn't know about, and I really think more people need to learn about those things because even when you feel like you might be doing everything the right way, the system has certain rules.
If you don't learn that history and those rules and the way the systems work, you might be doing something that's actually jeopardizing your chances of increasing your credit score or having a good financial reputation. A quick example, I'll say, in the book, I mentioned that my mom and dad never had a bank account. They never had credit cards, never had debit cards. They used cash only. It was because they had this fear, I think, that they would do something wrong or that having a credit card was bad. It was automatically going to be debt, and so because of that, it was very difficult for my parents to ever be able to get access to loans or to be able to take on any kind of debt, whether it be people would call it bad debt or good debt or whatever type of debt. They never really had a chance to do that. I think about that now, and I'm, like, the biggest reason why I've been able to advance, move, and have access to social mobility is because I was able to borrow money and use it in a smart and savvy way to make certain financial moves that have helped me to position myself better. I do think that learning that history is going to help us get the information that we need to then be able to thrive financially now, given all of the technological advancement apps now where you can invest and all of these things that help you monitor your credit score. But if you don't have that context, you might miss some of the nuance in terms of the important components of what you should be doing with your money.
Deidre Woollard: It's interesting, too, to think about how our financial evolution has come. Women didn't have access to credit in the 1970s, and that has changed.
Yanely Espinal: Absolutely.
Deidre Woollard: Certainly for different cultures, getting access to home loans, things like that, have been challenging throughout time. Hopefully, the financial history that we're going more toward justice, but knowing the history is important.
Yanely Espinal: It's so important. It's interesting, even just with credit. I know a lot of people will tell me the credit system is inherently against certain communities, whether that's communities of color or lower-income communities. While you may perceive it to be that way, I think it's very important to actually learn about the history, especially of credit, because as I learned more about it myself, I realized that the intention behind developing a credit system with traditional and non-traditional credit types was actually to move away from bias and personal judgments against people for their skin color or for their background or for whatever personality traits they had that you might not have liked. Before the credit system that we currently have in place, you could just choose to not lend money to someone if you didn't like them. Now you can't do that. Now there's a systematized credit score that was intended to get rid of these prejudices that were built into a system that was based on whether you like someone or not, and so I think when you learn that you realize maybe the intention wasn't that but some of the unintended consequences have been that it affects certain communities negatively, which means that there's room for growth. But that doesn't mean that they were designed to be inherently biased against certain types of people. So when I learned that, it helped me to change my perspective and understand that, yes, there's room for growth and improvement, but that doesn't mean that the intention of these systems was to harm certain communities per se. It was actually intended to improve upon how it used to be. So we got to learn all of that. That's why I wanted to make sure to include history in the book as well.
Deidre Woollard: You mentioned earlier about the importance of understanding your own brain. Part of being a better saver is learning to train your brain. How did you learn to shift your mind to be a benefit to future-you rather than present-you?
Yanely Espinal: I got to admit this only happened because I was a critical part of the process when my parents were going through their retirement process. My mom actually didn't qualify for the 40 credits for the retirement system in the United States. Currently, the way it is, you have to work for a certain amount of years. You have to get those 40 credits, and then you can actually qualify for Social Security benefits from the Social Security Administration. But my mom was a stay-at-home mom with nine kids. It was more expensive for her to get child care than it was for her to stay home and watch us herself, so she was that at-home mom. But my dad worked, and he was the sole breadwinner. So when my dad was in his late 60s, we started all thinking about, he's got to get to his retirement soon because he was driving a taxi cab for work after many years of working in the restaurant industry. It was getting to the point where he wasn't able to see as well at night, and it was starting to get unsafe for him to really be on the road, and so we said, I think it's time. Dad, we got to start talking about this thing called retirement. But they didn't have anything put aside for retirement. They didn't have investment accounts. They've never had even bank accounts. When I went online, and I went to ssa.gov, I started to do their application for their Social Security benefits, I recognized, first of all, they couldn't even collect their Social Security benefits because they didn't have bank accounts. Now back in the day, they used to mail out checks for your Social Security benefits. Now you can only claim it with a bank account, so through a wire transfer.
I'm, like, oh my goodness, my dad can't even get the benefits, so we first had to establish his first bank account, which I helped them do online. Once he had his checking account setup and his debit card, then he could get the Social Security benefits direct deposited into his existing bank account. Then my mom applied for supplemental Social Security benefits, which I didn't even know it was a thing. But I learned on the website, doing some research, that if your spouse gets retirement benefits, even if you don't qualify yourself, you could apply for spousal supplemental Social Security benefits, and so my mom did that once she turned 63, and she was able to then get half of the benefits that my dad was collecting. A little bit helps for them because they never had 401(k)s, IRAs, any anything for retirement, and they never knew about that, and they never really had access to that through the types of jobs they had as immigrants. It was very eye-opening for me to go through that process helping them.
I'm, like, oh my goodness, what about when it's my turn, when I'm their age? I got to start taking action now so that I'm not in that same boat as them. I don't blame them. I don't think it's their fault. Again they didn't have access to the education that I've gotten. They didn't have access to the financial tools and accounts that I've had the privilege of opening. But at the same time, I'm not going to continue to repeat the same mistakes. I'm seeing what they've gone through and how it's been so challenging for them in retirement, so I wanted to make sure I prepared my future self to, at least, retire with dignity, first of all, but also have a much easier time and not have to struggle so much and depend on other people to help me navigate this. I just want to do the best that I can today to prepare my future self to coast a little bit and have less stress in my life at that point.
Deidre Woollard: How did you start those conversations with your parents? Because talking about money, especially with parents, they're independent, they're proud, how did you begin that, and how did you navigate that with eight other brothers and sisters in your life?
Yanely Espinal: It's a tough one because I think the first thing is just recognizing why they're afraid to talk about these things. In my case with my parents, I noticed that, like some older parents, they might be afraid of talking about the idea of death or dying. We started mentioning retirement, they were just, like, you think I'm going to die. You're going to put me in a retirement home. I'm, like, no, that's not what this conversation is about. So the first thing we did was actually meet just the siblings. We didn't include my mom and dad in the conversation. I actually arranged this with my siblings a few years before we even knew they were going to start thinking about retirement. We said, listen, let's do this a few years out so that by the time we get serious about dad retiring, we have put some money aside for them to help them when the benefits that they're collecting doesn't cut it, so I started actually creating a high-yield savings online account, where my sister, my brother, and I are all account holders on that account.
My siblings Zelle me or Cash App me or Venmo or PayPal. They send money to me, and it goes into that account every month, and we've been doing that for years before my dad retired. So by the time we had that conversation, we were coming from a place of love. I was coming to my dad saying, "Listen, we know it's challenging, but we, a couple of years ago, decided to put together this savings fund. We've got some money here to help support you if you ever can't make the bills, if you're ever short for groceries, if you ever get a higher-than-usual water bill or electric bill, we have the money to support so that you're not stressed, so that you're not dealing with that." Coming from that place is so different from coming to them with questions and judgments, and then they feel attacked almost. I wanted to make sure we didn't come off that way at all, and it was really important for me to do that by establishing some support for them and showing them, listen, we've been pulling money together because we care so much about helping you. Then the second thing is I always recommend using someone else's story, and feel free to use mine if you're out there listening. You can tell your parents or your uncles and aunts I listened to a podcast, and this girl was talking about how her parents weren't prepared, and I just want to make sure we are prepared. Using someone else's story as a way to say, I just heard someone talking about how there was an unexpected death in their family, and they weren't prepared for the funeral costs, or they hadn't discussed that person's wishes about how to be buried or where to be buried or all of these kinds of things. I feel like if you use someone else as an excuse to say, hey, this is a nudge for me to have this conversation because I want to prevent us from making the mistakes that that person made or that their family experienced. Let's talk about this now so that we can get ahead of it. Or just coming from a place of love and positivity of, hey, this is what we want to do for you to help you. This isn't judgmental. This isn't to criticize you. This isn't to say you haven't done enough. That's not the tone at all. I think, people, honestly, my parents were very grateful and relieved to hear that we were actually there to just help and not to judge.
Deidre Woollard: How concerned are you about the rise of buy now, pay later? It seems that is just grown by leaps and bounds.
Yanely Espinal: It has.
Deidre Woollard: Is that a concern? Do you think that's a danger sign for some people?
Yanely Espinal: I definitely think it's a danger sign for a lot of people, but not everyone. I think it's similar to the usage of credit cards in the sense that a lot of people will say don't use credit, don't swipe plastic, instead, use cash because when you use a plastic card, something psychologically shifts, and it doesn't feel like your real money. It feels like there's a distance between you and your cash, so you're more likely to spend more when you swipe plastic cards versus when you use your own money that you know is coming directly out of your bank account. There's a bit of a mental shift there. It's a psychological aspect. The same thing is true for buy now, pay later. One of the buy now, pay later services, Affirm, they actually had an interview with a journalist from SFGATE. I had a chance to talk to him. His name is Joshua Bote. He was awesome. He's Gen Z, so definitely interested in the buy now, pay later trend. What he found was that the Affirm rep told him that the average shopping cart of the person who uses these buy now, pay later services is about $360 plus. But the average shopping cart if someone not using buy now, pay later is about $100.
Because you are using a service that makes it appear to be much cheaper in the moment, you are more likely to overspend and up to almost 4 times more, 3.6 times more money that you would be willing to spend in this instant because you feel you're committing to less up front. So by splitting your payment into four equal parts, you're seeing the one payment that you're going to make today, and in that instant, you're making a decision with a limited amount of data. People don't think about that number times 4. They just think about, today, this is what I have to pay, and so they're more willing to spend up to 4 times as much money because it doesn't feel like this is a commitment I'm making right now to give all this money. I do think that is a red flag for so many young shoppers who, again, aren't tracking their spending. They're not keeping a detailed budget or prioritizing where every dollar is going, and so, because of that, it's really easy to fall into the habit of just constantly putting everything on buy now, pay later and breaking things up into smaller payments. But the real reason why it's such a bad thing if you don't make one of those payments, it hurts your credit score. It can be sent to collections, you get fined with late fees, so even though it's positioned as an alternative to credit cards, which is I think why so many young people like it.
They're, like, it's not going to hurt my credit score. It's not going to be debt. Technically it could hurt your credit score if it goes the wrong way, and it technically could lead to debt that could go to collections if you don't have the ability to pay it with the funds in your checking account. So it is really important to know that even though they don't mark it as a credit product, it still can have a negative impact on your credit score, even though, by making your payments, you don't boost your credit score. But if you don't make it, it hurts it. It's like getting all the negative aspects of the deal without any of the positive ones, specifically when it comes to credit, so I would say it's very important to just know yourself. If you have the discipline, and you are tracking your spending, and you have a good idea of that long-term payment plan, and it fits into your spending plan, great. But again, that's not everybody, and especially the younger you are, the less likely you are to be that type of person with your finances.
Dylan Lewis: As always, people on the program may own stocks mentioned, and The Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Asit Sharma has positions in Nvidia and PayPal. Deidre Woollard has positions in Apple, Broadcom, and Nvidia. Dylan Lewis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Affirm, Apple, Berkshire Hathaway, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and 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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Plus, Motley Fool host Deidre Woollard talks with Yanely Espinal, author of Mind Your Money, about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later. Deidre Woollard cut up with Yanely Espinal, author of the upcoming book, Mind Your Money, to talk about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later. Now there's a systematized credit score that was intended to get rid of these prejudices that were built into a system that was based on whether you like someone or not, and so I think when you learn that you realize maybe the intention wasn't that but some of the unintended consequences have been that it affects certain communities negatively, which means that there's room for growth.
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In this podcast, Motley Fool analysts Asit Sharma and Dylan Lewis discuss: China's ban on Micron chips for companies working on key infrastructure projects. Plus, Motley Fool host Deidre Woollard talks with Yanely Espinal, author of Mind Your Money, about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later. Deidre Woollard cut up with Yanely Espinal, author of the upcoming book, Mind Your Money, to talk about the unique challenges that immigrant families face while saving for retirement and the dangerous appeal of buy now, pay later.
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We said, listen, let's do this a few years out so that by the time we get serious about dad retiring, we have put some money aside for them to help them when the benefits that they're collecting doesn't cut it, so I started actually creating a high-yield savings online account, where my sister, my brother, and I are all account holders on that account. I think it's similar to the usage of credit cards in the sense that a lot of people will say don't use credit, don't swipe plastic, instead, use cash because when you use a plastic card, something psychologically shifts, and it doesn't feel like your real money. So it is really important to know that even though they don't mark it as a credit product, it still can have a negative impact on your credit score, even though, by making your payments, you don't boost your credit score.
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If you don't learn that history and those rules and the way the systems work, you might be doing something that's actually jeopardizing your chances of increasing your credit score or having a good financial reputation. Dad, we got to start talking about this thing called retirement. This isn't to say you haven't done enough.
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2023-05-27 00:00:00 UTC
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Nvidia CEO Says This Is the Company's "iPhone Moment" -- and Wall Street Agrees
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https://www.nasdaq.com/articles/nvidia-ceo-says-this-is-the-companys-iphone-moment-and-wall-street-agrees
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Nvidia (NASDAQ: NVDA) just rocked the technology world. The company provided an outlook for its second quarter that Wedbush analyst Dan Ives called "guidance for the ages."
But the chipmaker didn't add nearly $184 billion in market cap in a single day just because it expects to have one good quarter. Nvidia CEO Jensen Huang said in the first-quarter conference call that he's calling this the company's "iPhone moment." Wall Street agrees.
Everything coming together
Why did Huang call this an "iPhone moment" for Nvidia? When Apple launched the first iPhone, it brought several kinds of technology together for the first time. That's what Huang believes is happening now thanks to generative AI.
Nvidia has been working on developing a full-stack solution for accelerated computing for years. But he said, "[W]hen generative AI came along, it triggered a killer app for this computing platform that's been in preparation for some time." Huang thinks the opportunity this presents for Nvidia is massive.
Few on Wall Street are arguing with him. Baird analyst Tristan Gerra previously had a "hold" rating for Nvidia. He now sees "continued AI-related momentum." As a result, Gerra upgraded the stock to an "outperform" and boosted his 12-month price target from $300 to $475. Nvidia's share price is currently hovering around $385.
Citi's Atif Malik acknowledged that the "generative AI upside was bigger than we expected." He said that Nvidia's outlook could imply that "AI adoption remains in early innings." Malik promptly raised his price target on the stock from $353 to $420.
Ross Seymore with Deutsche Bank remains cautious, still rating Nvidia stock as a "hold." However, he increased his price target to $390 to reflect the huge post-earnings jump.
Seymore is less enthusiastic than many analysts because he's not sure how sustainable Nvidia's growth will be. But he acknowledged, "With Nvidia's unique AI market leadership and the scarcity of alternative plays, we see little that could diminish investor optimism and recommend continuing to enjoy the ride."
Hype or reality?
Just because an executive says it's an "iPhone moment" and analysts go along with it doesn't necessarily make it true. In this case, though, Nvidia's CEO appears to be onto something.
Huang estimates that there's roughly "$1 trillion worth of infrastructure installed" with the world's data centers. He said, "It's all completely based on CPUs [central processing units] and dumb NICs [network interface cards]. It's basically unaccelerated."
Granted, Huang is exaggerating somewhat. One key reason behind Nvidia's tremendous success is that many data centers now use its graphics processing units (GPUs) instead of CPUs. However, his basic point is valid.
We truly could be at the beginning of a transition of the world's data centers to accelerated computing with generative AI as the chief catalyst. Huang thinks this shift could take around 10 years. Even if his timeline is overly optimistic, hundreds of billions of dollars could be spent over the coming years to upgrade data centers. Nvidia will almost certainly be a huge winner from this shift.
Apples and oranges?
Apple released the first iPhone on Jun. 29, 2007. Its stock has skyrocketed more than 40x since then.
Could Nvidia be in store for similarly jaw-dropping gains? The AI stock's previously impressive returns shouldn't be an impediment based on Apple's precedent. Apple's share price had vaulted nearly 1,300% higher in the five years before its initial iPhone launch. Nvidia stock has risen by "only" 520% over the last five years.
However, Nvidia's valuation is much greater now than Apple's was in 2007. At the time of the first iPhone release, Apple's market cap was around $105 billion. Its shares traded at a price-to-earnings (P/E) multiple of 38.5. Nvidia's market cap stands at nearly $940 billion with a trailing P/E of 218 and a forward P/E of 84.
It's quite possible that Nvidia is having an "iPhone moment" but won't see the iPhone momentum that Apple enjoyed. Still, Nvidia's share price could realistically go even higher than it already has. As Deutsche Bank's Seymore said, "Enjoy the ride."
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Keith Speights 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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The company provided an outlook for its second quarter that Wedbush analyst Dan Ives called "guidance for the ages." But he acknowledged, "With Nvidia's unique AI market leadership and the scarcity of alternative plays, we see little that could diminish investor optimism and recommend continuing to enjoy the ride." One key reason behind Nvidia's tremendous success is that many data centers now use its graphics processing units (GPUs) instead of CPUs.
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Ross Seymore with Deutsche Bank remains cautious, still rating Nvidia stock as a "hold." We truly could be at the beginning of a transition of the world's data centers to accelerated computing with generative AI as the chief catalyst. Even if his timeline is overly optimistic, hundreds of billions of dollars could be spent over the coming years to upgrade data centers.
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Nvidia CEO Jensen Huang said in the first-quarter conference call that he's calling this the company's "iPhone moment." It's quite possible that Nvidia is having an "iPhone moment" but won't see the iPhone momentum that Apple enjoyed. 10 stocks we like better than Nvidia When our analyst team has a stock tip, it can pay to listen.
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Everything coming together Why did Huang call this an "iPhone moment" for Nvidia? At the time of the first iPhone release, Apple's market cap was around $105 billion. It's quite possible that Nvidia is having an "iPhone moment" but won't see the iPhone momentum that Apple enjoyed.
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15646.0
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2023-05-26 00:00:00 UTC
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Alphabet CEO Sundar Pichai Commits to "AI Pact": What Does This Really Mean?
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https://www.nasdaq.com/articles/alphabet-ceo-sundar-pichai-commits-to-ai-pact%3A-what-does-this-really-mean
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The world of artificial intelligence (AI) is moving at a breakneck speed, and top corporate and political leaders are trying to safely guide its evolution. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) CEO Sundar Pichai met with European Commissioner for the internal market Thierry Breton on Wednesday to discuss the progression of AI and map out possible actions to help ensure the emerging technology doesn't get out of hand.
In the meeting, Pichai promised that his company would join an "AI pact" and collaborate with other players in the artificial intelligence space on a volunteer basis to shape and abide by guidelines for tech development. But while there's seemingly a lot to like about the prospect of guardrails being put on AI, it's not clear that voluntary pacts or even strict laws will be able to address many of the potential problems that could arise.
Could an AI pact help stave off potential disasters?
While detailed specifics of what rules and guidelines members of an AI pact would be adhering to haven't been made available, Pichai's discussion with other members of the European Commission suggest that privacy standards and fighting misinformation could be key focuses. The rapid progression for artificial intelligence tech over the last year is unprecedented, and continued advances could be unwieldy.
Because legislative bodies can be slow to act and laws vary between territories, it could be important for technology leaders to attempt to establish some kind of presiding framework for artificial intelligence initiatives. Taking a proactive approach to the problems and questions raised by incredible leaps forward for artificial intelligence could help minimize the possibility of disastrous outcomes stemming from the tech. The AI pact mentioned by Pichai at the meeting with Breton seems to be a step in this direction.
But there's a risk that rules surrounding AI might not amount to much. For one, it's possible that voluntary AI guidelines and restrictions will be followed very loosely or only in the most nominal senses. It's also possible that those who don't abide by rules for the artificial intelligence project, whether self-imposed or through regulations, could actually gain significant competitive advantages.
Controlling AI could be incredibly difficult
The European Parliament is currently finalizing a new set of rules and restrictions that will govern AI technologies. The EU AI Act isn't officially law yet, but it's seemingly headed in that direction and could be a landmark response that plays a big role in the tech's evolution in Europe. But it might not be enough, and it may have unintended consequences.
Developing ways to work around restrictions could be incentivized by the proposed regulations, and the speed at which AI tech has been progressing will make it difficult for regulators to keep up. Additionally, there are already signs that influential players in the space could respond negatively. In response to the legislation, OpenAI CEO Sam Altman said that his company might cease to offer its ChatGPT and Dall-E services in the EU if it can't meet new regulatory requirements.
The European governing body almost certainly doesn't want to fall behind in AI, and regulating the tech is a difficult needle to thread. Regulations will be very difficult to enforce globally, and those who opt not to follow guidelines or regional laws could actually be rewarded.
While an AI pact that includes Alphabet and other large tech companies could be beneficial, it's unlikely to be a panacea and will come with its own set of complications.
Unless provisions for punitive measures were put in place, a company could simply opt out of a potential pact if it didn't agree with new or existing rules. Given the incredible rate at which AI tech has been advancing lately, any organization attempting to regulate the space will likely have to determine what is and isn't allowed and forge restrictions on a continuous basis. In this kind of situation, the potential for a voluntary artificial intelligence pact to fracture could be high.
There's probably no one-size-fits-all solution
It's already proving difficult to get top technology companies and figures on the same page when it comes to how artificial intelligence should be guided. For example, Tesla CEO Elon Musk and Apple co-founder Steve Wozniak called for a temporary pause on AI development in April, but OpenAI CEO Sam Altman and Microsoft co-founder Bill Gates dismissed the feasibility of the proposal. Governments will likely have to play a leading role in keeping artificial intelligence safe and on the rails, but it won't be easy.
Placing restrictions on commercially available AI products and services on a regional basis may be feasible, but regulating the use of internal tools could be a much more difficult matter. When it comes to restricting the use of artificial intelligence by adversarial governments and independent actors around the world, the challenge of governing the progression of these emerging technologies is daunting.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, 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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In the meeting, Pichai promised that his company would join an "AI pact" and collaborate with other players in the artificial intelligence space on a volunteer basis to shape and abide by guidelines for tech development. Because legislative bodies can be slow to act and laws vary between territories, it could be important for technology leaders to attempt to establish some kind of presiding framework for artificial intelligence initiatives. In response to the legislation, OpenAI CEO Sam Altman said that his company might cease to offer its ChatGPT and Dall-E services in the EU if it can't meet new regulatory requirements.
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) CEO Sundar Pichai met with European Commissioner for the internal market Thierry Breton on Wednesday to discuss the progression of AI and map out possible actions to help ensure the emerging technology doesn't get out of hand. The AI pact mentioned by Pichai at the meeting with Breton seems to be a step in this direction. For example, Tesla CEO Elon Musk and Apple co-founder Steve Wozniak called for a temporary pause on AI development in April, but OpenAI CEO Sam Altman and Microsoft co-founder Bill Gates dismissed the feasibility of the proposal.
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) CEO Sundar Pichai met with European Commissioner for the internal market Thierry Breton on Wednesday to discuss the progression of AI and map out possible actions to help ensure the emerging technology doesn't get out of hand. In the meeting, Pichai promised that his company would join an "AI pact" and collaborate with other players in the artificial intelligence space on a volunteer basis to shape and abide by guidelines for tech development. Controlling AI could be incredibly difficult The European Parliament is currently finalizing a new set of rules and restrictions that will govern AI technologies.
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In the meeting, Pichai promised that his company would join an "AI pact" and collaborate with other players in the artificial intelligence space on a volunteer basis to shape and abide by guidelines for tech development. In this kind of situation, the potential for a voluntary artificial intelligence pact to fracture could be high. See the 10 stocks *Stock Advisor returns as of May 22, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors.
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2023-05-26 00:00:00 UTC
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Want Passive Income Forever? Buy These 2 Magnificent Stocks Now
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https://www.nasdaq.com/articles/want-passive-income-forever-buy-these-2-magnificent-stocks-now
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Many investors actively seek dividend stocks, and who can blame them? Nothing beats making money while you sleep. But when investing in dividend-paying companies, there is always the risk that these corporations will reduce or suspend their payouts altogether. Choosing the right dividend stocks is arguably the best way to avoid this risk: Not all dividend stocks are created equal.
With that said, let's turn our attention to two companies that are practically passive income machines and will likely continue rewarding shareholders with payout increases for a long time: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL).
1. Johnson & Johnson
Johnson & Johnson has a history that dates back more than 100 years. Most businesses struggle to survive a decade, so this feat is highly impressive. It's because J&J offers goods that are always in high demand. It is a leading pharmaceutical company with a diversified portfolio of medicines spanning several therapeutic areas, from infectious diseases to oncology, immunology, neuroscience, and more.
Moreover, Johnson & Johnson spends ample money on research and development and routinely adds new products to its vast portfolio. Drugmakers can cease being relevant if they stop innovating. That is unlikely to happen to this pharma giant. The company's medical devices unit also offers a range of products that physicians use to improve health outcomes for their patients.
Furthermore, Johnson & Johnson records consistent revenue, profits, and free cash flow.
JNJ Net Income (Annual) data by YCharts.
Financial health is essential as no company can sustain dividend increases over the long run without that. And as an added piece of evidence of Johnson & Johnson's financial health, the company boasts an AAA rating from Standard & Poor, a testament to its strong balance sheet. Even if the U.S. Federal Reserve's predicted recession hits us before the end of the year, the healthcare giant should be just fine.
Johnson & Johnson has had to navigate various lawsuits against it in recent years regarding opioids as well as its talc-based baby powder, but these processes will play themselves out eventually. The company has survived plenty of downturns and challenges in its long history.
Finally, Johnson & Johnson has been excellent at hiking its payouts. The drugmaker is a Dividend King. It is currently on its 60th consecutive year of dividend increases. Very few corporations have a better track record. Johnson & Johnson's current 3.03% dividend yield is above that of the S&P 500 at 1.66%.
Although its cash payout ratio of 73% seems high, the company has the tools necessary to continue doing what it has been doing for a long time: slowly and steadily growing its dividend. Investors can sleep easy knowing that Johnson & Johnson's payouts are secure.
2. Apple
Apple isn't in the business of selling medicines. Most of the things it offers are, strictly speaking, goods that can eventually become obsolete. But the company is still an excellent stock to buy and hold forever. Here is why: Apple has built an incredibly strong brand name and a culture of technological innovation.
The company is an expert at transforming existing tech into better and more sophisticated versions of essentially the same thing. Cell phones existed before the iPhone, and AirPods are just fancy earbuds, among other examples. Once branded with its logo, these devices typically command high prices, even though plenty of cheaper substitutes are available. That speaks to Apple's customer loyalty, a powerful competitive edge.
That's why the company reports solid financial results even in challenging economic times.
AAPL Net Income (Annual) data by YCharts.
However, Apple has been seeking to diversify its revenue base. It increasingly relies on its services segment, which offers everything from Apple Cloud, Apple TV+, Apple Music, and much more. This business still makes up a small percentage of its top line, but it has grown in importance. Apple's installed base now stands at more than two billion devices worldwide.
The company should benefit from this for years to come as it finds new ways to monetize its large base of customers. Apple is making headway in fintech and has also been looking to enter the healthcare industry in some way. Turning to the company's dividends, its 0.55% yield is low, but it has raised its payouts by 120% in the past decade. With a very modest cash-payout ratio of 15.3%, there are miles of room left for more hikes.
While not primarily known for its dividends, Apple can give passive income seekers exactly what they want while delivering market-beating returns.
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Prosper Junior Bakiny has positions in Johnson & Johnson. 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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With that said, let's turn our attention to two companies that are practically passive income machines and will likely continue rewarding shareholders with payout increases for a long time: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). AAPL Net Income (Annual) data by YCharts. It is a leading pharmaceutical company with a diversified portfolio of medicines spanning several therapeutic areas, from infectious diseases to oncology, immunology, neuroscience, and more.
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With that said, let's turn our attention to two companies that are practically passive income machines and will likely continue rewarding shareholders with payout increases for a long time: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). AAPL Net Income (Annual) data by YCharts. JNJ Net Income (Annual) data by YCharts.
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With that said, let's turn our attention to two companies that are practically passive income machines and will likely continue rewarding shareholders with payout increases for a long time: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). AAPL Net Income (Annual) data by YCharts. Johnson & Johnson Johnson & Johnson has a history that dates back more than 100 years.
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With that said, let's turn our attention to two companies that are practically passive income machines and will likely continue rewarding shareholders with payout increases for a long time: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). AAPL Net Income (Annual) data by YCharts. Johnson & Johnson's current 3.03% dividend yield is above that of the S&P 500 at 1.66%.
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2023-05-26 00:00:00 UTC
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Q1 Earnings: Can Artificial Intelligence (AI) Sustain Momentum?
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https://www.nasdaq.com/articles/q1-earnings%3A-can-artificial-intelligence-ai-sustain-momentum
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The analysts covering Nvidia NVDA are struggling to come up with superlatives to describe the chipmaker’s blockbuster quarterly results. Coming into Nvidia’s May 26th quarterly numbers, many analysts saw some upside to consensus estimates, given the company’s AI leverage. But the stock had already doubled this year before the Wednesday release on those AI hopes.
It is humbling to acknowledge that I thought the stock was ‘priced for perfection’ and was skeptical that Nvidia could do anything in the quarterly numbers that could satisfy those lofty expectations. Keep in mind that we fall in the Nvidia ‘fan club,’ having held the stock in the Zacks Focus List portfolio since May 2019.
The stock’s performance since the quarterly release is in a class of its own, and for good reasons. In the current uncertain macroeconomic environment, Nvidia raised Q2 revenue guidance by more than +50% on the back of robust data-center demand reflecting momentum in generative AI and large language models. Importantly, Nvidia indicated a high degree of visibility in these demand trends over the coming quarters.
There are legitimate questions as to how sustainable this growth trajectory will prove to be and whether Nvidia will be able to protect its first-mover advantage as the competitive landscape heats up over time.
We have all glimpsed the potential of generative AI by playing around with ChatGPT and Google Bard, allowing us to envision this technology’s ability to enhance efficiencies. But it is reasonable to be skeptical of both the trillions of dollars in TAMs that the AI revolution will unleash or the emerging talk of an ‘AI bubble.’
Nvidia is hardly alone in riding the AI wave, with Microsoft MSFT and Alphabet GOOGL already duking it out for primacy. Alphabet’s earlier AI efforts didn’t impress the market much, and many had started thinking that Microsoft may be able to leverage AI to open up Alphabet’s hold on the search market. But Alphabet appears to have found its mojo back, as the stock’s recent performance shows.
The chart below shows the year-to-date performance of Microsoft, Alphabet, and Nvidia.
Image Source: Zacks Investment Research
The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple AAPL, Amazon AMZN, and Meta META, in addition to Microsoft and Alphabet, has steadily improved lately. Total Q1 earnings for the group were essentially flat (down -0.4%) on +4.3% higher revenues.
The growth outlook starts improving from the current period (2023 Q2) onwards, with earnings expected to be up +8.9% on +4.9% higher revenues.
The chart below shows the group’s earnings picture on a quarterly basis.
Image Source: Zacks Investment Research
The chart below shows the group’s earnings picture on an annual basis.
Image Source: Zacks Investment Research
Q1 Earnings Season Scorecard
Including all the quarterly reports that came out through Friday, May 26th, we now have Q1 earnings from 486 S&P 500 members, or 97.2% of the index’s total membership. Total earnings for these companies are down -3.7% from the same period last year on +4.5% higher revenues, with 78.2% beating EPS estimates and 75.1% beating revenue estimates.
The proportion of these companies beating both EPS and revenue estimates is 63.2%.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q1 earnings season as good enough; not great, but not bad, either.
With this reporting cycle now largely behind us, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears warned us of.
The way we see it, the ‘better-than-feared’ view of the Q1 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We have about 100 companies on deck to report results, including 9 S&P 500 members. This week’s docket includes Salesforce.com, Macy’s, Broadcom, Lululemon, Dollar General, and others.
Below, we compare the Q1 results thus far from what we have seen from this same group of companies in other recent periods.
The first set of charts compares the earnings and revenue growth rates for the companies that have reported with what we had seen from the group in other recent quarters.
Image Source: Zacks Investment Research
The comparison charts below put the Q1 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
The Earnings Big Picture
To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2023 Q1 and the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Outlook Reflects Stability
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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Image Source: Zacks Investment Research The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple AAPL, Amazon AMZN, and Meta META, in addition to Microsoft and Alphabet, has steadily improved lately. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In the current uncertain macroeconomic environment, Nvidia raised Q2 revenue guidance by more than +50% on the back of robust data-center demand reflecting momentum in generative AI and large language models.
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Image Source: Zacks Investment Research The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple AAPL, Amazon AMZN, and Meta META, in addition to Microsoft and Alphabet, has steadily improved lately. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research The chart below shows the earnings and revenue growth picture on an annual basis.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple AAPL, Amazon AMZN, and Meta META, in addition to Microsoft and Alphabet, has steadily improved lately. Image Source: Zacks Investment Research The Earnings Big Picture To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2023 Q1 and the following three quarters.
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Image Source: Zacks Investment Research The earnings outlook for the ‘Big 5 Tech Players’ that includes Apple AAPL, Amazon AMZN, and Meta META, in addition to Microsoft and Alphabet, has steadily improved lately. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Coming into Nvidia’s May 26th quarterly numbers, many analysts saw some upside to consensus estimates, given the company’s AI leverage.
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15649.0
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2023-05-26 00:00:00 UTC
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After Hours Most Active for May 26, 2023 : INTC, AAPL, QQQ, T, AMZN, BAC, MRVL, AMD, NRG, WFC, CPNG, PFE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-26-2023-%3A-intc-aapl-qqq-t-amzn-bac-mrvl-amd-nrg-wfc-cpng
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The NASDAQ 100 After Hours Indicator is up 10.41 to 14,308.82. The total After hours volume is currently 77,561,915 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is unchanged at $29.00, with 4,233,908 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 $-0.04. INTC's current last sale is 95.08% of the target price of $30.5.
Apple Inc. (AAPL) is +0.09 at $175.52, with 2,668,245 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".
Invesco QQQ Trust, Series 1 (QQQ) is +0.63 at $349.03, with 2,430,064 shares traded., following a 52-week high recorded in today's regular session.
AT&T Inc. (T) is +0.01 at $15.51, with 2,348,361 shares traded. T's current last sale is 70.5% of the target price of $22.
Amazon.com, Inc. (AMZN) is +0.06 at $120.17, with 1,694,885 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.34. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $28.31, with 1,679,613 shares traded. BAC's current last sale is 80.89% of the target price of $35.
Marvell Technology, Inc. (MRVL) is +0.84 at $66.35, with 1,525,764 shares traded., following a 52-week high recorded in today's regular session.
Advanced Micro Devices, Inc. (AMD) is +0.25 at $127.28, with 1,503,466 shares traded., following a 52-week high recorded in today's regular session.
NRG Energy, Inc. (NRG) is unchanged at $33.94, with 1,301,373 shares traded. NRG's current last sale is 81.78% of the target price of $41.5.
Wells Fargo & Company (WFC) is -0.03 at $41.20, with 1,133,414 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Coupang, Inc. (CPNG) is -0.02 at $15.71, with 1,060,570 shares traded. As reported by Zacks, the current mean recommendation for CPNG is in the "buy range".
Pfizer, Inc. (PFE) is +0.03 at $37.63, with 1,041,571 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.81. PFE's current last sale is 83.62% of the target price of $45.
The views and 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 +0.09 at $175.52, with 2,668,245 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Marvell Technology, Inc. (MRVL) is +0.84 at $66.35, with 1,525,764 shares traded., following a 52-week high recorded in today's regular session.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Apple Inc. (AAPL) is +0.09 at $175.52, with 2,668,245 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is +0.09 at $175.52, with 2,668,245 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 77,561,915 shares traded.
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Apple Inc. (AAPL) is +0.09 at $175.52, with 2,668,245 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 77,561,915 shares traded.
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15650.0
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2023-05-26 00:00:00 UTC
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Top Analyst Reports for Apple, Chevron & Accenture
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AAPL
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https://www.nasdaq.com/articles/top-analyst-reports-for-apple-chevron-accenture
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Friday, May 26, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corp. (CVX) and Accenture plc (ACN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple’s shares have outperformed the Zacks Computer - Mini computers industry over the past year (+16.3% vs. +15.8%). The company’s revenues are expected to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
However, Apple expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
(You can read the full research report on Apple here >>>)
Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-10.1% vs. +1.7%). The company was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too.
Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced. However, Chevron is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022.
(You can read the full research report on Chevron here >>>)
Accenture’s shares have outperformed the Zacks Consulting Services industry over the year-to-date period (+77.0% vs. +46.8%). The company has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships.
The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern.
Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern. Partly due to these headwinds, Accenture shares are down 4.1% in the past year.
(You can read the full research report on Accenture here >>>)
Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Broadcom Inc. (AVGO) and Stryker Corp. (SYK).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Chevron (CVX) to Gain from Massive Permian Acreage
Accenture (ACN) Gains From Service Demand Amid Talent Cost
Featured Reports
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the datacenter and automotive markets is a key growth driver. Partnership with companies like Arrow, Baidu, Daimler and Bosch is a tailwind.
Strong Demand for Networking Products Aids Broadcom (AVGO)
Per the Zacks analyst, Broadcom is riding on robust demand for networking solutions. Strong adoption of next-gen merchant switching and routing solutions is driving top-line growth.
Diversified Product Portfolio Drives Stryker's (SYK) Prospects
Per the Zacks analyst, Stryker's diversified product portfolio, which include the robust Mako total knee platform, should support the growth of its global business.
Ventas (VTR) to Ride on SHOP Recovery, Life Science Assets
Per the Zacks Analyst, Ventas to benefit from the recovery in its senior housing operating portfolio (SHOP) and life science real estate investments. However, rising interest rates are a key woe.
Sarepta's (SRPT) Overdependence on DMD Drugs a Woe
Though Sarepta Therapeutics has a strong commercial portfolio of drugs targeting DMD indication, the Zacks Analyst is concerned about the company's dependence on a single target market for revenues.
Investments, Customer Growth Aid Essential Utilities (WTRG)
Per the Zacks analyst, Essential Utilities' (WTRG) $3.3 billion investment to fortify it water and natural gas infrastructure and demand from expanding customer base are going to boost its performance
Rising Premiums Aid Globe Life (GL), High Expenses Hurt
Per the Zacks analyst, Globe Life's growing premiums from Life and Health insurance and improved investment income have led to significant growth. However, escalating expenses remain a concern.
New Upgrades
Ingersoll Rand (IR) Rides on Industrial Technologies Growth
The Zacks analyst is encouraged by growth in the company's Industrial Technologies & Services segment due to higher orders for compressors, and power tool and lifting.
Skechers' (SKX) Omni-Channel & Other Endeavors Hold Promise
Per Zacks analyst, Skechers is directing resources to boost digital capabilities, including augmenting website features, mobile application and loyalty program. Its international unit is a key driver.
Solid Telecommunications Business Demand Aids Dycom (DY)
Per the Zacks analyst, Dycom benefits from strong telecommunications business demand courtesy of its top five customers reflecting organic contract revenue growth.
New Downgrades
Upstream Budget Tightness to Hurt ProPetro (PUMP)
The Zacks analyst believes that the tightness in the upstream companies' investment budget is likely to continue through this year, which is expected to weigh on ProPetro's revenues.
Escalating Costs and Seasonality Trouble H&R Block (HRB)
Per the Zacks analyst, the increasing costs have been acting as a headwind to H&R Block's performance. The seasonality of the business adds to such friction.
Reduced Chemical Software Spending To Hurt Aspen (AZPN)
Per the Zacks analyst, Aspen's performance is affected due to uncertain macroeconomic environment and cautious software spending in the chemical industry. Stiff competition is a headwind.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Accenture PLC (ACN) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Accenture (ACN) Gains From Service Demand Amid Talent Cost Featured Reports NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the datacenter and automotive markets is a key growth driver. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corp. (CVX) and Accenture plc (ACN). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Accenture (ACN) Gains From Service Demand Amid Talent Cost Featured Reports NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the datacenter and automotive markets is a key growth driver. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corp. (CVX) and Accenture plc (ACN).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Accenture (ACN) Gains From Service Demand Amid Talent Cost Featured Reports NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the datacenter and automotive markets is a key growth driver. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corp. (CVX) and Accenture plc (ACN).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Accenture (ACN) Gains From Service Demand Amid Talent Cost Featured Reports NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the datacenter and automotive markets is a key growth driver. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corp. (CVX) and Accenture plc (ACN).
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2023-05-26 00:00:00 UTC
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Nasdaq Eyes Weekly Win; Dow, SPX Fall on Debt Ceiling Fatigue
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AAPL
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https://www.nasdaq.com/articles/nasdaq-eyes-weekly-win-dow-spx-fall-on-debt-ceiling-fatigue
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This week the U.S. debt ceiling once again took center stage, as multiple meetings between lawmakers failed to produce a resolution. A divided central bank also put pressure on sentiment, with an upward revision to gross domestic product (GDP) and better-than-expected jobs data failing to lift Wall Street's spirits. However, the Nasdaq Composite Index (IXIC) rallied after Nvidia's (NVDA) blowout quarter boosted the tech sector, and is pacing for its fifth-straight weekly win.The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are heading for weekly losses, while the Cboe Volatility index (VIX) is eyeing a win.
Retail Earnings Take Center Stage
The sour sentiment on Wall Street came amid a flood retail reports. Kohl's (KSS) shared an unexpected profit despite higher-than-usual inflation, while Gap (GPS) also posted a surprise earnings beat. Discount retailer Big Lots (BIG) fell to a more than 30-year low, after turning in quarterly losses that nearly doubled expectations.
Home improvement retailer Lowe's (LOW) shared better-than-expected first-quarter results, but lower 2023 forecasts weighed on the results, while strong demand and leaner inventory levels helped Urban Outfitters (URBN) best expectations. Outside of retail, NVDA soared to an all-time high after earnings, while Snowflake (SNOW) eyed its worst day ever following its quarterly results.
Stocks to Watch Right Now
Subscribers to Schaeffer's Weekend Trader got an early look at why eBay (EBAY) is heading for a short-term drop. Conversely, Electronic Arts (EA) and Starbucks (SBUX) both just pulled back to historically bullish trendlines. Yelp (YELP) may also be worth keeping an eye on, as its top shareholder is urging for a sale or merger, calling the stock "shockingly undervalued." Don't forget about our Options Under $5 service, which helped subscribers more than double their money on our KB Home (KBH) recommendation.
How to Play Memorial Day
With markets closed on Monday for Memorial Day, investors will have a shortened week to ponder debt ceiling negotiations and earnings reports. Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the best stocks to own before the holiday, while Schaeffer's Senior V.P. of Research Todd Salamone quantified the latest market sentiment change.
The views and 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 divided central bank also put pressure on sentiment, with an upward revision to gross domestic product (GDP) and better-than-expected jobs data failing to lift Wall Street's spirits. Kohl's (KSS) shared an unexpected profit despite higher-than-usual inflation, while Gap (GPS) also posted a surprise earnings beat. Outside of retail, NVDA soared to an all-time high after earnings, while Snowflake (SNOW) eyed its worst day ever following its quarterly results.
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This week the U.S. debt ceiling once again took center stage, as multiple meetings between lawmakers failed to produce a resolution. Retail Earnings Take Center Stage The sour sentiment on Wall Street came amid a flood retail reports. Home improvement retailer Lowe's (LOW) shared better-than-expected first-quarter results, but lower 2023 forecasts weighed on the results, while strong demand and leaner inventory levels helped Urban Outfitters (URBN) best expectations.
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However, the Nasdaq Composite Index (IXIC) rallied after Nvidia's (NVDA) blowout quarter boosted the tech sector, and is pacing for its fifth-straight weekly win.The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are heading for weekly losses, while the Cboe Volatility index (VIX) is eyeing a win. Retail Earnings Take Center Stage The sour sentiment on Wall Street came amid a flood retail reports. Home improvement retailer Lowe's (LOW) shared better-than-expected first-quarter results, but lower 2023 forecasts weighed on the results, while strong demand and leaner inventory levels helped Urban Outfitters (URBN) best expectations.
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Retail Earnings Take Center Stage The sour sentiment on Wall Street came amid a flood retail reports. Home improvement retailer Lowe's (LOW) shared better-than-expected first-quarter results, but lower 2023 forecasts weighed on the results, while strong demand and leaner inventory levels helped Urban Outfitters (URBN) best expectations. Outside of retail, NVDA soared to an all-time high after earnings, while Snowflake (SNOW) eyed its worst day ever following its quarterly results.
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2023-05-26 00:00:00 UTC
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US judge rejects challenges to Apple's $50 mln keyboard settlement
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https://www.nasdaq.com/articles/us-judge-rejects-challenges-to-apples-%2450-mln-keyboard-settlement
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By Mike Scarcella
May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal.
U.S. District Judge Edward Davila in San Jose, California, federal court in his ruling called the settlement "fair, adequate and reasonable."
Eleven consumers from New York, Florida, California, Michigan and several other states were the lead plaintiffs in the national class action alleging consumer protection and warranty claims.
The lawsuit accused Apple of failing to provide sufficient repairs or troubleshooting help for certain MacBook "butterfly" keyboards made between 2015 and 2019.
An Apple spokesperson on Friday did not immediately respond to a message seeking comment.
The plaintiffs' lawyers announced the deal a year ago. Apple denied any wrongdoing.
Class members will receive $50 up to $395 based on the number and nature of repairs made to a keyboard.
More than 86,000 claims for class member payments were submitted as of early March, Davila's order showed.
One challenge to the settlement said $125 — the compensation for members of one group in the class — was not enough, because keyboard repairs can cost more than $300.
"The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order.
Other challenges argued it was unfair to deny any compensation to MacBook owners who experienced keyboard failures but who did not get them repaired.
Davila said that "while not all who were purportedly injured will receive compensation, the settlement compromise benefits a significant number of individuals."
The court's ruling approved a request from the plaintiffs' lawyers for $15 million in legal fees.
Two lead plaintiffs' lawyers at Girard Sharp and Chimicles Schwartz Kriner & Donaldson-Smith in a statement said they "look forward to getting the money out to our clients."
The case is In re: MacBook Keyboard Litigation, U.S. District Court, Northern District of California, No. 5:18-cv-02813-EJD.
Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. U.S. District Judge Edward Davila in San Jose, California, federal court in his ruling called the settlement "fair, adequate and reasonable." Two lead plaintiffs' lawyers at Girard Sharp and Chimicles Schwartz Kriner & Donaldson-Smith in a statement said they "look forward to getting the money out to our clients."
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By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. The case is In re: MacBook Keyboard Litigation, U.S. District Court, Northern District of California, No. Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. "The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order. Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. One challenge to the settlement said $125 — the compensation for members of one group in the class — was not enough, because keyboard repairs can cost more than $300. "The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order.
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2023-05-26 00:00:00 UTC
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Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-dividend-growth-etf-dgro-a-strong-etf-right-now-6
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nan
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A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $22.58 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DGRO is managed by Blackrock. This particular fund seeks to match the performance of the Morningstar US Dividend Growth Index before fees and expenses.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for DGRO are 0.08%, which makes it one of the least expensive products in the space.
DGRO's 12-month trailing dividend yield is 2.45%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Healthcare sector - about 19.70% of the portfolio. Financials and Information Technology round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.35% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM).
DGRO's top 10 holdings account for about 26.91% of its total assets under management.
Performance and Risk
Year-to-date, the iShares Core Dividend Growth ETF has lost about -1.24% so far, and was up about 0.51% over the last 12 months (as of 05/26/2023). DGRO has traded between $44.47 and $52.73 in this past 52-week period.
DGRO has a beta of 0.89 and standard deviation of 16.72% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 449 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares MSCI EAFE Growth ETF (EFG) tracks MSCI EAFE Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares MSCI EAFE Growth ETF has $13.32 billion in assets, Vanguard Dividend Appreciation ETF has $64.96 billion. EFG has an expense ratio of 0.36% and VIG charges 0.06%.
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
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iShares Core Dividend Growth ETF (DGRO): 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 Dividend Appreciation ETF (VIG): ETF Research Reports
iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.35% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Click to get this free report iShares Core Dividend Growth ETF (DGRO): 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 Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report iShares Core Dividend Growth ETF (DGRO): 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 Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.35% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report iShares Core Dividend Growth ETF (DGRO): 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 Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.35% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.35% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Click to get this free report iShares Core Dividend Growth ETF (DGRO): 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 Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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2023-05-26 00:00:00 UTC
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3 Best Metaverse Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/3-best-metaverse-stocks-to-buy-in-2023-and-beyond
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nan
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nan
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The metaverse is a digital realm that transcends our understanding of reality. In this three-dimensional universe, people immerse themselves in a virtual environment and connect with others in the digital world. The technology has captured the imagination of many tech companies that are striving to make the metaverse a reality.
Investing in metaverse stocks requires patience. Its development could take years before reaching its full potential. According to McKinsey, the metaverse has the potential to generate $5 trillion in value by 2030. Citigroup thinks the opportunity could be worth a staggering $13 trillion by the same year.
There are companies making strides in the space that could be at the forefront of the metaverse's massive opportunity. Here are three stocks you should consider buying today to take advantage of the huge potential of this industry.
Image source: Getty Images.
1. Meta Platforms
Meta Platforms (NASDAQ: META) has made a considerable commitment to the metaverse, rebranding its business from Facebook two years ago. It has poured billions of dollars into chasing the metaverse through its Reality Labs segment.
The company offers its Meta Quest virtual reality devices and software and metaverse-related content through the Meta Quest Store. It offers a platform for people to engage in virtual experiences, from gaming to fitness to entertainment.
The Reality Labs segment has been working on exciting technologies but has been a significant drag on earnings for Meta. Last year the segment lost $14 billion and another $4 billion in the first quarter.
Investing in the metaverse will require significant capital investment and may not be profitable for several years. However, Meta's Family of Apps, including Facebook, Instagram, and WhatsApp, provide significant cash flow. Last year, these segments showed a profit of $43 billion, along with another $11 billion in the first quarter.
Meta Platforms is committed to investing significantly in the metaverse, and its other businesses ensure it can continue to do so -- making it a solid metaverse stock to buy today.
2. Unity Software
Unity Software (NYSE: U) provides creators a platform to create 3D development tools, allowing them to create interactive 3D, augmented, and virtual reality experiences. It expects to play a significant role in expanding metaverse content in the coming years. The company estimates half of the world's mobile, console, and PC games are created with its game development engine.
It offers two products, Unity Personal and Unity Student, for free to content creators who are just getting started. The company generates revenue through subscriptions to its platform, support, and services, and connects advertisers with creators to monetize their content.
Last year, Unity's revenue of $1.4 billion grew 25% from the year before. However, the company has struggled to turn a profit and lost $919 million during the year. In the first quarter, revenue grew 56% from last year, but its net loss increased to $254 million.
Unity is in growth mode and is racking up losses as it faces near-term headwinds. The stock has a promising future as a key player in the metaverse and presents an attractive investment opportunity for those with a long time horizon. Its high valuation and lack of profits make it best suited for investors willing to wait out its near-term growing pains for potentially excellent long-term returns.
3. Apple
The final metaverse stock to buy is Apple (NASDAQ: AAPL). Analysts expect Apple to announce its virtual reality headset during its Worldwide Developers Conference, which will begin on June 5. If it does, this product would be a massive move for Apple to add to its already impressive line of products.
According to Gizmodo, Apple's VR headset would be very different than other offerings in the market today in terms of functionality, available apps, and price. The device would use mixed reality or a combination of augmented and virtual reality and is expected to cost around $3,000. The move would be significant for Apple, which is already a behemoth with its $2.7 trillion market capitalization.
Like Meta, Apple has several other highly profitable businesses that provide excellent cash flow, allowing it to invest in building VR and related apps. Apple is already a stellar company, and its potential role in shaping the metaverse with its products is another reason the stock is solid to buy and hold long term.
10 stocks we like better than Meta Platforms
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of May 22, 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. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Courtney Carlsen has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple The final metaverse stock to buy is Apple (NASDAQ: AAPL). Its high valuation and lack of profits make it best suited for investors willing to wait out its near-term growing pains for potentially excellent long-term returns. Like Meta, Apple has several other highly profitable businesses that provide excellent cash flow, allowing it to invest in building VR and related apps.
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Apple The final metaverse stock to buy is Apple (NASDAQ: AAPL). The company offers its Meta Quest virtual reality devices and software and metaverse-related content through the Meta Quest Store. Unity Software Unity Software (NYSE: U) provides creators a platform to create 3D development tools, allowing them to create interactive 3D, augmented, and virtual reality experiences.
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Apple The final metaverse stock to buy is Apple (NASDAQ: AAPL). Meta Platforms Meta Platforms (NASDAQ: META) has made a considerable commitment to the metaverse, rebranding its business from Facebook two years ago. Meta Platforms is committed to investing significantly in the metaverse, and its other businesses ensure it can continue to do so -- making it a solid metaverse stock to buy today.
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Apple The final metaverse stock to buy is Apple (NASDAQ: AAPL). Meta Platforms is committed to investing significantly in the metaverse, and its other businesses ensure it can continue to do so -- making it a solid metaverse stock to buy today. Last year, Unity's revenue of $1.4 billion grew 25% from the year before.
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2023-05-26 00:00:00 UTC
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Is It Too Late to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-apple-stock-3
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nan
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nan
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Apple (NASDAQ: AAPL) has been on fire in 2023, driven higher by the remarkable resilience of the iPhone and a recovery by a broad cross section of technology stocks. Shares of the iPhone maker are up 32% so far this year, more than four times the 7% gains of the S&P 500. This marks a reversal of fortune for Apple, as its stock lost roughly 27% last year.
The biggest contributor to its gains so far this year was Apple's better-than-expected financial results. Investors were surprised by just how well sales of the iPhone held up, which suggests that the struggling economy -- which has weighed on the stock -- could soon rebound.
What does this mean for those who missed out on Apple's current rally? Is now the time to buy in expectation of additional gains or avoid the stock due to its valuation and the economic volatility that remains? Let's take a look.
Image source: Apple.
What's been weighing on Apple stock?
It's no secret that the principal driver of stocks and the broader market indexes during the past year or so has been the current economic conditions. The bear market was fueled by 40-year-high inflation and the resulting interest rate hikes designed to keep higher prices at bay. The economic uncertainty caused a pullback in consumer spending, which has resulted in slowing sales of the iPhone -- Apple's biggest seller.
This was clear in Apple's performance in fiscal 2022 (ended Sept. 24, 2022). Full-year revenue grew just 8%. While still respectable, it was a far cry from the 33% gains the company generated in 2021. As alarming as this might be for some investors, it's important to note that this is typical of a downturn. History is clear that when the economy begins to recover -- as it no doubt will -- consumers will return to normal spending habits, which will most likely include upgrading to the latest Apple device.
This suggests that pent-up demand could drive Apple stock higher once consumer discretionary spending returns to normal.
What (else) could drive Apple stock higher?
In addition to a recovery in consumer spending, there are other catalysts that could fuel Apple's stock rally.
The tech giant has a large and growing cadre of active devices -- and that number continues to grow. Earlier this year, CEO Tim Cook revealed that Apple had amassed an installed base of 2 billion active devices while also hitting new all-time highs in each of its major product categories.
This translates to more revenue for the company, the result of its growing ecosystem. For example, iPhone users tend to visit the App Store, spending money on apps. They also avail themselves of other services, like paying using Apple Pay, streaming Apple TV+, or subscribing to Apple Music. Each of these apps makes Apple's ecosystem stickier, increasing the likelihood that not only will users stay around, they will also choose from the company's growing list of services -- thereby boosting revenue.
Another potential opportunity is Apple's long-rumored mixed-reality headset, which is expected to combine elements of virtual reality with augmented reality. While the company has yet to confirm the existence of this as-yet-to-be-released product, several major news outlets have suggested the device will be introduced during Apple's developer conference on June 5. Estimates vary widely regarding the expected price for the device, but most reports suggest a cost of about $3,000, with sales of about 1 million during the first year of release.
The jury is still out regarding the potential demand for such a product, but Apple has a strong track record of creating demand for products that many believed would be flops -- including the iPad and Apple Watch.
Apple is also expanding its presence in a number of emerging markets. The company just launched its online store in Vietnam and recently opened its first retail store in India, the world's second-largest smartphone market. These moves will help Apple tap into new and lucrative opportunities.
How to approach Apple stock now
Apple is currently selling for roughly 22 times trailing earnings, a lower valuation than the price-to-earnings (P/E) ratio of 24 sported by the S&P 500. That's a pretty reasonable price to pay for a company with a strong history of growth.
As I illustrated above, Apple has a number of growth drivers that could spark a continuing stock rally over the longer term. Experienced investors with the discipline to withstand a little volatility should consider buying Apple now or adding to a position, particularly given the company's track record and the long runway ahead.
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 22, 2023
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has been on fire in 2023, driven higher by the remarkable resilience of the iPhone and a recovery by a broad cross section of technology stocks. History is clear that when the economy begins to recover -- as it no doubt will -- consumers will return to normal spending habits, which will most likely include upgrading to the latest Apple device. Earlier this year, CEO Tim Cook revealed that Apple had amassed an installed base of 2 billion active devices while also hitting new all-time highs in each of its major product categories.
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Apple (NASDAQ: AAPL) has been on fire in 2023, driven higher by the remarkable resilience of the iPhone and a recovery by a broad cross section of technology stocks. Is now the time to buy in expectation of additional gains or avoid the stock due to its valuation and the economic volatility that remains? This suggests that pent-up demand could drive Apple stock higher once consumer discretionary spending returns to normal.
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Apple (NASDAQ: AAPL) has been on fire in 2023, driven higher by the remarkable resilience of the iPhone and a recovery by a broad cross section of technology stocks. They also avail themselves of other services, like paying using Apple Pay, streaming Apple TV+, or subscribing to Apple Music. How to approach Apple stock now Apple is currently selling for roughly 22 times trailing earnings, a lower valuation than the price-to-earnings (P/E) ratio of 24 sported by the S&P 500.
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Apple (NASDAQ: AAPL) has been on fire in 2023, driven higher by the remarkable resilience of the iPhone and a recovery by a broad cross section of technology stocks. In addition to a recovery in consumer spending, there are other catalysts that could fuel Apple's stock rally. As I illustrated above, Apple has a number of growth drivers that could spark a continuing stock rally over the longer term.
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2023-05-26 00:00:00 UTC
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Amid the Deal with Apple, Is It Too Late to Buy Broadcom Stock?
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AAPL
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https://www.nasdaq.com/articles/amid-the-deal-with-apple-is-it-too-late-to-buy-broadcom-stock
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nan
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nan
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In a move that surprised some investors and analysts, Apple (NASDAQ: AAPL) signed a new multi-billion deal with Broadcom (NASDAQ: AVGO), which will drive the development of components related to 5G radio frequencies. The announcement sent Broadcom stock higher as the relationship between the two companies expanded.
Of course, this semiconductor stock was already on the rise before the announcement, so the added news now has the stock trading at record highs. Given its already elevated stock price, does this latest deal make Broadcom a buy, or did investors miss their opportunity?
The Apple-Broadcom deal
Broadcom's chip segment develops semiconductors for other companies. It invests billions per year in research and development, and it employs engineers near its large clients to develop solutions collaboratively. One fan of its approach is Apple, which was an important Broadcom client before this deal. Broadcom designs the chips that power the Wi-Fi hotspot for the iPhone and other products, and this relationship accounted for about 20% of Broadcom's revenue in 2022.
Much remains unknown about the new deal. Neither company disclosed financial terms, although Apple said the agreement was part of a commitment made in 2021 to invest $430 billion in the U.S. economy.
Moreover, Apple has recently brought more chip development in-house and wanted to develop its own Wi-Fi and Bluetooth chips, according to a Bloomberg report. Until recently, this led to fears that Apple would scale back its relationship with Broadcom. Hence investors probably looked at this perceived turnabout as a surprise.
The state of Broadcom's stock
As mentioned before, investors expressed their surprise at the deal by bidding Broadcom stock up to record highs. Consequently, Broadcom's stock price is up more than 25% over the last 12 months.
And even after declining for most of 2022, revenue and profits continue to surge. In the first quarter of fiscal 2023 (ended Jan. 29), revenue of $8.9 billion rose 12% year over year, primarily driven by a 17% increase in product sales.
During that time, it limited increases in the cost of revenue and reduced operating expenses. That helped it report a quarterly net income of $3.8 billion, rising 57% compared to the same quarter in fiscal 2022.
Surprisingly, its rising stock price has not made Broadcom an expensive stock, as it sells at a P/E ratio of 23. That multiple is above multi-year lows, but it still trades at a lower valuation than Apple, Nvidia, and Advanced Micro Devices. Additionally, Broadcom remains one of the more lucrative dividend stocks in the semiconductor industry. At $18.40 per share annually, it claims a dividend yield of about 2.5%, well above the 1.6% average of the S&P 500.
Also, that payout has risen annually since 2011, with the dividend increasing by 12% after the most recent increase. This cash return provided stability amid the stock's considerable growth. And because the company's $3.9 billion quarterly free cash flow far exceeded the $1.9 billion dividend cost for the period, its payout should stay safe.
Should I consider Broadcom?
Despite a multi-billion deal with Apple, it is not too late to buy Broadcom stock. Admittedly, most investors would probably like more details on the terms of this specific deal.
However, Broadcom posted solid growth in fiscal Q1 before the deal. Due to its P/E ratio of 23 and a high dividend, the stock appears undervalued. And with the company strengthening its relationship with Apple, Broadcom stock will likely continue to move higher over time.
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.
See the 10 stocks
*Stock Advisor returns as of May 22, 2023
Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a move that surprised some investors and analysts, Apple (NASDAQ: AAPL) signed a new multi-billion deal with Broadcom (NASDAQ: AVGO), which will drive the development of components related to 5G radio frequencies. Given its already elevated stock price, does this latest deal make Broadcom a buy, or did investors miss their opportunity? Neither company disclosed financial terms, although Apple said the agreement was part of a commitment made in 2021 to invest $430 billion in the U.S. economy.
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In a move that surprised some investors and analysts, Apple (NASDAQ: AAPL) signed a new multi-billion deal with Broadcom (NASDAQ: AVGO), which will drive the development of components related to 5G radio frequencies. Surprisingly, its rising stock price has not made Broadcom an expensive stock, as it sells at a P/E ratio of 23. And with the company strengthening its relationship with Apple, Broadcom stock will likely continue to move higher over time.
|
In a move that surprised some investors and analysts, Apple (NASDAQ: AAPL) signed a new multi-billion deal with Broadcom (NASDAQ: AVGO), which will drive the development of components related to 5G radio frequencies. The state of Broadcom's stock As mentioned before, investors expressed their surprise at the deal by bidding Broadcom stock up to record highs. Surprisingly, its rising stock price has not made Broadcom an expensive stock, as it sells at a P/E ratio of 23.
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In a move that surprised some investors and analysts, Apple (NASDAQ: AAPL) signed a new multi-billion deal with Broadcom (NASDAQ: AVGO), which will drive the development of components related to 5G radio frequencies. The state of Broadcom's stock As mentioned before, investors expressed their surprise at the deal by bidding Broadcom stock up to record highs. Surprisingly, its rising stock price has not made Broadcom an expensive stock, as it sells at a P/E ratio of 23.
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15657.0
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2023-05-26 00:00:00 UTC
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84% of Warren Buffett's Portfolio Is Invested in These 7 Stocks
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AAPL
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https://www.nasdaq.com/articles/84-of-warren-buffetts-portfolio-is-invested-in-these-7-stocks
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nan
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nan
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Compared to most investors, Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Warren Buffett is in a class of his own. The billionaire CEO of Berkshire who took over in 1965 has overseen a cumulative gain in his company's Class A shares (BRK.A) of nearly 4,100,000% as of last weekend. Jaw-dropping increases like this tend to get you noticed on Wall Street.
But what's truly interesting about the Oracle of Omaha is his transparency. Buffett is an open book who's willingly shared the traits he looks for in businesses when making sizable investment decisions.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
However, the one factor that's made Warren Buffett successful which isn't given nearly enough attention is his penchant for portfolio concentration. Both he and right-hand man Charlie Munger believe that diversification is only necessary if you don't know what you're doing. Despite overseeing a nearly $339 billion investment portfolio at Berkshire Hathaway, Warren Buffett has 84% of invested assets tied up in just seven stocks.
1. Apple: $160.4 billion (47.3% of invested assets)
It takes one short look at Berkshire Hathaway's portfolio to realize the Oracle of Omaha willingly invests big bucks into the businesses he values most. Tech stock Apple (NASDAQ: AAPL) accounting for more than 47% of invested assets, and Buffett and his team adding to Berkshire's position during the first quarter, demonstrates just how highly he thinks of the company.
From brand value to innovation, Apple does it all. According to Interbrand and Kantar BrandZ's ranking, it's the most valuable brand in the world. Apple has an easily recognized brand, a loyal customer base, and is trusted by consumers. The Oracle of Omaha puts a lot of value into businesses that build trust with consumers.
Most importantly, CEO Tim Cook has allowed Apple's innovation to do the talking. The iPhone has been revolutionizing the smartphone market for nearly 16 years, and now Apple's subscription-services segment is rapidly adding new users.
The cherry on top for Apple is that it's repurchased $586 billion worth of its common stock over the past 10 years. That's greater than the market cap of 493 out of 500 S&P 500 companies.
Rapidly rising interest rates have been a boon for Bank of America's net-interest income. Effective Federal Funds Rate data by YCharts.
2. Bank of America: $29 billion (8.6% of invested assets)
Although Apple is viewed as Berkshire Hathaway's best business, there's no sector Warren Buffett is more comfortable investing in than financials. More specifically, he loves dabbling in bank stocks, with Bank of America (NYSE: BAC) being his very clear favorite of the lot.
The simple reason Buffett loves banks is because they're cyclical. Though recessions are inevitable, periods of expansion last considerably longer than downturns. This allows companies like Bank of America (BofA) to expand their loans and deposits (i.e., the bread and butter for banking growth) and grow in lockstep with the U.S. economy.
As I noted earlier this week, BofA's calling card is its sensitivity to interest rates. While the Federal Reserve raising interest rates at the fastest pace in four decades hasn't been pleasant for consumers, it's great news for BofA and the variable-rate loans it has outstanding. BofA is bringing in billions of dollars in added net-interest income each quarter thanks to higher interest rates.
Don't overlook BofA's capital-return program, either. During periods of economic expansion, BofA can comfortably return (with Fed approval) $20 billion to $30 billion annually to its shareholders via dividends and buybacks.
3. Coca-Cola: $25.1 billion (7.4% of invested assets)
The third-largest holding in Warren Buffett's portfolio is Berkshire Hathaway's longest-held stock, Coca-Cola (NYSE: KO). Coke has been a fixture since 1988.
Coca-Cola is another perfect example of a wholesome brand Buffett likes that's built trust with consumers. It's one of the most recognized consumer-staples brands globally and has operations in all but three countries worldwide. Having this sort of geographic diversity, to go along with 26 brands generating at least $1 billion annually, provides the consistency of cash flow that Buffett and his investing lieutenants (Todd Combs and Ted Weschler) have grown to love.
Something else Coca-Cola has is an exceptional marketing team year in and year out. At the moment, Coke is spending more than half of its advertising budget online to connect with a younger audience. But don't overlook its decades of holiday tie-ins and well-known brand ambassadors, which allow the brand to engage consumers of all ages.
Coca-Cola has also increased its base annual dividend for 61 consecutive years, which is an easy way to get on Buffett's good side.
Image source: American Express.
4. American Express: $23.2 billion (6.8% of invested assets)
Credit-services provider American Express (NYSE: AXP) is another long-term holding that's been a marvelous investment for Warren Buffett and his team. AmEx is a continuous holding since 1993, and Berkshire is currently sitting on an unrealized gain (not including dividends) of about 1,700%.
American Express's secret sauce is what I like to call its ability to "double dip." It's the No. 3 payment processor in the U.S. by credit card network-purchase volume, which allows it to generate merchant fees, and benefit as the U.S. and global economy expand. However, it also acts as a lender, which helps the company generate interest income and annual cardholder fees.
Furthermore, American Express is adept at attracting well-to-do clients. Consumers with higher incomes are less likely to change their spending habits when inflation rises or the U.S. economy hits a speed bump. Targeting high earners means fewer disruptions to its cash flow.
Since Berkshire's cost basis on AmEx is just $8.49 per share, its $2.40 annual dividend payout equates to a 28% yield relative to cost.
5. Chevron: $20.6 billion (6.1% of invested assets)
Despite trimming its position in this company by more than 30 million shares during Q1, Berkshire Hathaway's fifth-biggest holding is energy stock Chevron (NYSE: CVX).
The only reason Buffett, Combs, and Weschler would collectively agree to put more than $20 billion to work in an integrated oil and gas company is if they believe the value of energy commodities will remain elevated. Certain macroeconomic factors do suggest crude oil prices could be sticky at high levels. For instance, Russia's invasion of Ukraine, coupled with three years of capital underinvestment by energy majors during the COVID-19 pandemic, should restrict the supply of oil for years to come.
On the flipside, Chevron is an integrated energy company, which is a fancy way of saying it's hedged its operating performance in the event that crude oil and natural gas prices sink. In addition to drilling, Chevron operates transmission pipelines, chemical plants, and refineries. The latter two tend to enjoy lower input costs and higher demand when crude prices dip.
To keep with the theme, Chevron is big on returning capital to its shareholders. It's increased its base annual payout for 36 years in a row, and its board recently approved a $75 billion share-repurchase program.
A historically high spot price for crude oil has helped Occidental Petroleum pay down some of its debt. WTI Crude Oil Spot Price data by YCharts.
6. Occidental Petroleum: $12.9 billion (3.8% of invested assets)
Another energy stock the Oracle of Omaha and his team can't stop buying of late is Occidental Petroleum (NYSE: OXY). Berkshire Hathaway was given the OK from the Federal Energy Regulatory Commission in August to acquire up to a roughly 50% stake in Occidental should it choose to do so.
The investment thesis for Occidental Petroleum somewhat mirrors Chevron in that higher oil prices are favorable, and both are integrated energy operators. However, there are two key differences. The first is that Occidental is far more reliant on its drilling segment as a percentage of net sales. If oil prices rise or fall, Occidental would be expected to see bigger swings in its operating cash flow and probably its share price.
The other big difference can be seen on its balance sheet. Whereas Chevron has one of the lowest net-debt ratios in the oil and gas industry, Occidental Petroleum closed out March 2023 with $19.6 billion in net debt. Even though that's down considerably from two years prior, it's still a sizable hole the company needs to dig itself out of.
I'd be remiss if I didn't also note that Berkshire Hathaway holds $10 billion worth of Occidental preferred stock that yields 8% annually.
7. Kraft Heinz: $12.7 billion (3.8% of invested assets)
The seventh and final company that collectively adds up to 84% of Warren Buffett's investment portfolio at Berkshire Hathaway is consumer-packaged goods company Kraft Heinz (NASDAQ: KHC).
The lure for Kraft Heinz is the company's vast portfolio of well-known, easy-to-prepare meals, snacks, and condiments, such as Oscar Mayer, Velveeta, Kool-Aid, Jell-O, and of course, Grey Poupon. Companies with strong branding typically have the ability to generate predictable cash flow and pay a handsome dividend -- a 4.1% annual yield in Kraft Heinz's case.
Kraft Heinz was in the minority in that it benefited from the COVID-19 pandemic. With people staying home during the pandemic, easy-to-make meals and snacks flew off grocery-store shelves.
But this organic sales boost has its limits. Despite having significant pricing power, Kraft Heinz's volume/mix has declined in successive quarters from the prior-year period. This looks to be a signal that consumers are trading down to cheaper brands, which could mean trouble for Kraft Heinz in the coming quarters.
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech stock Apple (NASDAQ: AAPL) accounting for more than 47% of invested assets, and Buffett and his team adding to Berkshire's position during the first quarter, demonstrates just how highly he thinks of the company. Having this sort of geographic diversity, to go along with 26 brands generating at least $1 billion annually, provides the consistency of cash flow that Buffett and his investing lieutenants (Todd Combs and Ted Weschler) have grown to love. The only reason Buffett, Combs, and Weschler would collectively agree to put more than $20 billion to work in an integrated oil and gas company is if they believe the value of energy commodities will remain elevated.
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Tech stock Apple (NASDAQ: AAPL) accounting for more than 47% of invested assets, and Buffett and his team adding to Berkshire's position during the first quarter, demonstrates just how highly he thinks of the company. Coca-Cola: $25.1 billion (7.4% of invested assets) The third-largest holding in Warren Buffett's portfolio is Berkshire Hathaway's longest-held stock, Coca-Cola (NYSE: KO). Occidental Petroleum: $12.9 billion (3.8% of invested assets) Another energy stock the Oracle of Omaha and his team can't stop buying of late is Occidental Petroleum (NYSE: OXY).
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Tech stock Apple (NASDAQ: AAPL) accounting for more than 47% of invested assets, and Buffett and his team adding to Berkshire's position during the first quarter, demonstrates just how highly he thinks of the company. Bank of America: $29 billion (8.6% of invested assets) Although Apple is viewed as Berkshire Hathaway's best business, there's no sector Warren Buffett is more comfortable investing in than financials. Chevron: $20.6 billion (6.1% of invested assets) Despite trimming its position in this company by more than 30 million shares during Q1, Berkshire Hathaway's fifth-biggest holding is energy stock Chevron (NYSE: CVX).
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Tech stock Apple (NASDAQ: AAPL) accounting for more than 47% of invested assets, and Buffett and his team adding to Berkshire's position during the first quarter, demonstrates just how highly he thinks of the company. From brand value to innovation, Apple does it all. Bank of America: $29 billion (8.6% of invested assets) Although Apple is viewed as Berkshire Hathaway's best business, there's no sector Warren Buffett is more comfortable investing in than financials.
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2023-05-26 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-42
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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
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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15659.0
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2023-05-26 00:00:00 UTC
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Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-7
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nan
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nan
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Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $85.39 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually 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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.62%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 43.90% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.05% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has added roughly 22.57% so far this year and it's up approximately 13.84% in the last one year (as of 05/26/2023). In the past 52-week period, it has traded between $208.44 and $266.28.
The ETF has a beta of 1.11 and standard deviation of 24.40% for the trailing three-year period, making it a medium risk choice in the space. With about 252 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 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, VUG is a sufficient 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 iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $65.41 billion in assets, Invesco QQQ has $181.21 billion. IWF has an expense ratio of 0.18% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Growth ETF (VUG): 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
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.05% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $85.39 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.05% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.05% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.05% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). 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.
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15660.0
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2023-05-25 00:00:00 UTC
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Researchers find Israeli-made spyware deployed across Armenia
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AAPL
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https://www.nasdaq.com/articles/researchers-find-israeli-made-spyware-deployed-across-armenia-0
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By Raphael Satter and James Pearson
LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found.
A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
What researchers were able to confirm "is the tip of the iceberg," said Natalia Krapiva, the tech-legal counsel for Access Now. "The targeting was quite extensive."
Pegasus is one of many advanced espionage tools that affords hackers sweeping access to their targets' smartphones, allowing them to record calls, intercept messages and even transform the phones into portable listening devices.
Researchers, lawmakers, and journalists have repeatedly accused the technology's maker, Israel-based NSO Group, of helping governments spy on political opponents. In 2021, the company was blacklisted by the U.S. government over human rights concerns.
The company has previously disputed accusations of wrongdoing, saying its software is used to fight terrorism and serious crime.
One of the alleged Armenian victims of NSO's spyware said those explanations do not reflect reality.
"That's a kind of ridiculous umbrella for the companies that create these products and the governments that use them," Armenian opposition broadcaster Samvel Farmanyan told Reuters.
He added that his targeting was "totally unacceptable (and had) nothing to do with the prevention of any type of crime or terrorism."
AZERBAIJAN DENIES RESPONSIBILITY
The researchers said they believed neighboring Azerbaijan, which has fought several wars with Armenia over the disputed chunk of territory known as Nagorno-Karabakh or Artsakh, was likely responsible for the hacking activity.
That's in part because of "extensive evidence" that Azerbaijan's government has previously used Pegasus against its domestic opponents, said Amnesty's Donncha O Cearbhaill, referring to a 2021 investigation by Amnesty and other partners that found hundreds of Azeri phone numbers had been selected for targeting with Pegasus spyware.
The Azeri Embassy in London said in a statement that Azerbaijan "does not engage in such practices" and "does not spy on foreign citizens".
The Armenian government has in the past been implicated in the deployment of phone hacking software, including in a report published last year by Alphabet's GOOGL.O Google.
While that report pointed to a different spyware, known as Predator, several Pegasus victims in Armenia said they feared their own government was behind the recent surveillance.
The Armenian Embassy in London said its government rejected the alleged use of spyware at the "highest level".
"Prime Minister Nikol Pashinyan made a strong public statement categorically rejecting the circulating information that the authorities used spyware against opponents and/or journalists," it said in a statement.
Pashinyan and family members had also received messages warning that their devices may have been compromised, it added.
Reuters spoke to several alleged victims identified by the researchers. All said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. They later discovered traces of Pegasus on their devices through forensic analyses.
Two of them were journalists with the U.S. government-funded Radio Free Europe/Radio Liberty (RFE/RL), something RFE/RL executive Patrick Boehler said was "truly terrifying and appalling".
"If we cannot protect our sources, it has consequences for the depth and breadth of our journalism," he said.
Other alleged victims included Varuzhan Geghamyan, an academic and expert on Armenian-Azeri relations, and Ruben Melikyan, a lawyer and human rights activist.
They all condemned the spying.
"Psychologically it's devastating," said Farmanyan, the broadcaster.
(Reporting by Raphael Satter and James Pearson in London; editing by Bill Berkrot and Mark Heinrich)
((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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All said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. Pegasus is one of many advanced espionage tools that affords hackers sweeping access to their targets' smartphones, allowing them to record calls, intercept messages and even transform the phones into portable listening devices. The researchers said they believed neighboring Azerbaijan, which has fought several wars with Armenia over the disputed chunk of territory known as Nagorno-Karabakh or Artsakh, was likely responsible for the hacking activity.
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All said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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All said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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All said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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15661.0
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2023-05-25 00:00:00 UTC
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TikTok tests AI chatbot 'Tako' in the Philippines
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AAPL
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https://www.nasdaq.com/articles/tiktok-tests-ai-chatbot-tako-in-the-philippines
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nan
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nan
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By Josh Ye
HONG KONG, May 25 (Reuters) - Social media platform TikTok said on Thursday it is in the early stages of exploring a chatbot called "Tako" that can converse with users about short videos and help them discover content, and is conducting tests with select users in the Philippines.
OpenAI, backed by Microsoft Corp MSFT.O, last year launched chatbot ChatGPT, offering arguably the most natural interaction to date. That triggered a race to develop features based on game-changing generative artificial intelligence (AI), including TikTok rival Snap Inc SNAP.N whose "My AI" is powered by ChatGPT technology.
TikTok said Tako is designed to help users discover "entertaining and inspiring content" on the app.
Earlier on Thursday, an Israeli-based app intelligence firm Watchful Technologies said it had found Tako on some versions of the TikTok app on Apple Inc AAPL.O mobile devices.
Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on TikTok's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content.
In April, U.S. media outlets reported that TikTok was experimenting with a generative AI tool to allow users to create avatars. China-based parent ByteDance is working on a large AI model, Chinese media reported, but it does not currently offer AI chatbot features on its Chinese equivalent of TikTok, Douyin.
Disclosure filed with the U.S. patent and trademark office last month showed TikTok had submitted a trademark application for "TikTok Tako" in categories including "computer software for the artificial production of human speech and text".
Asked about Tako, a TikTok spokesperson said the social media platform was always exploring new technology.
"In select markets, we're testing new ways to power search and discovery on TikTok, and we look forward to learning from our community as we continue to create a safe place that entertains, inspires creativity, and drives culture," the spokesperson said.
The company did not say why the Philippines was selected.
VIDEO RECOMMENDATIONS
Watchful researcher Daniel Buchuk said his team started to find references to Tako on some versions of the TikTok app earlier this month, including on a test version on an iOS device in the United States.
Watchful uses computer vision as well as data analysis to identify and emulate app changes. It monitors devices in different countries but was unable to establish in which markets TikTok was conducting its tests.
Unlike ChatGPT, which is positioned as an all-purpose chatbot, Tako feels more like a navigation assistant with a focus on encouraging users to watch more videos, Buchuk said.
"So if you're asking 'When was King Charles' coronation?' Tako will tell you the answer, but then you'll also see relevant TikTok videos," he said.
Another demonstration by Watchful showed that when a user asks Tako a question, such as "How can we teach respect to children", the chatbot replies by summarising tips from TikTok users while also recommending related videos.
TikTok has set a disclaimer saying Tako is an experimental chatbot and that responses could be inaccurate. It said it will review conversations with Tako for safety purposes and warned users not to share private information with it.
(Reporting by Josh Ye in Hong Kong and Yana Gaur in Bengaluru; Editing by Brenda Goh, Christopher Cushing and Nick Macfie)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier on Thursday, an Israeli-based app intelligence firm Watchful Technologies said it had found Tako on some versions of the TikTok app on Apple Inc AAPL.O mobile devices. OpenAI, backed by Microsoft Corp MSFT.O, last year launched chatbot ChatGPT, offering arguably the most natural interaction to date. "In select markets, we're testing new ways to power search and discovery on TikTok, and we look forward to learning from our community as we continue to create a safe place that entertains, inspires creativity, and drives culture," the spokesperson said.
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Earlier on Thursday, an Israeli-based app intelligence firm Watchful Technologies said it had found Tako on some versions of the TikTok app on Apple Inc AAPL.O mobile devices. By Josh Ye HONG KONG, May 25 (Reuters) - Social media platform TikTok said on Thursday it is in the early stages of exploring a chatbot called "Tako" that can converse with users about short videos and help them discover content, and is conducting tests with select users in the Philippines. Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on TikTok's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content.
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Earlier on Thursday, an Israeli-based app intelligence firm Watchful Technologies said it had found Tako on some versions of the TikTok app on Apple Inc AAPL.O mobile devices. By Josh Ye HONG KONG, May 25 (Reuters) - Social media platform TikTok said on Thursday it is in the early stages of exploring a chatbot called "Tako" that can converse with users about short videos and help them discover content, and is conducting tests with select users in the Philippines. Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on TikTok's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content.
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Earlier on Thursday, an Israeli-based app intelligence firm Watchful Technologies said it had found Tako on some versions of the TikTok app on Apple Inc AAPL.O mobile devices. By Josh Ye HONG KONG, May 25 (Reuters) - Social media platform TikTok said on Thursday it is in the early stages of exploring a chatbot called "Tako" that can converse with users about short videos and help them discover content, and is conducting tests with select users in the Philippines. Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on TikTok's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content.
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15662.0
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2023-05-25 00:00:00 UTC
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Why Meta Platforms Stock (NASDAQ:META) Can Easily Extend Its Blistering Rally
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-nasdaq%3Ameta-can-easily-extend-its-blistering-rally
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nan
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nan
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Meta Platforms (NASDAQ:META) stock has been an unbelievable performer since bottoming out late last year, now up around 185%+ from its November lows. Though Meta's hot run has been the envy of its FAANG peers, there are still catalysts that could help extend the rally, potentially all the way to all-time highs.
Undoubtedly, artificial intelligence (AI) and Zuckerberg's "year of efficiency" have been responsible for a huge chunk of the relief rally. Looking forward, I'd look to the Metaverse as the fuel that helps the stock move higher from here. Recession or not, the next few months could be exhilarating for Meta as investors pile back into a name that was severely oversold last autumn. As such, I'm staying bullish on the stock.
Meta is Harnessing the Power of AI
With the power of AI, Meta may be able to increase the value of its ads without having to track users across the internet. The company's Advantage+ suite of automation tools could change the landscape of the advertising world once again.
The suite leverages AI to create multiple ad variations to help advertisers find the one that best sticks with any user. Only time will tell how Advantage+ and other AI offerings help jolt Meta's growth. Regardless, it's hard not to be impressed by Meta's ability to innovate through trying times.
Indeed, Apple's privacy-focused iOS updates, which initially cost Meta dearly, may be to thank for pushing Meta to innovate its way out of a mess.
Meta is also getting into the hardware game, with recent news of the firm's plans to develop custom chips tailored for AI. Indeed, many big software companies have been hopping on the hardware bandwagon lately. Meta seeks to launch a new AI chip called the MTIA (Meta Training and Inference Accelerator) in 2025.
Undoubtedly, Meta's AI roadmap is impressive. The monetization possibilities seem tough to fathom at this juncture. Regardless, I still think many may be discounting the potential for AI to re-accelerate growth over the longer term. Meta isn't just a social media or metaverse company anymore; it's a serious AI contender.
June Could be a Big Month for the Metaverse
Many investors may have dismissed the Metaverse in favor of AI as the trend to bet on over the past six months. Looking ahead, the Metaverse may be due for a bit of a comeback. Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5.
If it does, we might all hear about the Metaverse ad nauseam again, and that bodes well for the firms with skin in the game, most notably Meta Platforms.
Of course, it's tough to compete against a proven tech behemoth like Apple. Fintech innovators are feeling increasing pressure from the iPhone maker as it doubles down on its wallet ambitions.
In any case, the VR (virtual reality) and AR (augmented reality) markets look large enough that more than one winner will be minted from its rise over the next decade. Further, it's not hard to imagine that many investors have stuck with Meta for its strong social-media business and its ability to monetize AI rather than its metaverse potential.
Meta may have been punished in the past for blowing billions on metaverse efforts. That said, as the trend heats up again, we may see more investors start to think about such metaverse efforts in a more positive light -- not as a cash sink but as a growth initiative that could help power some serious appreciation.
Is META Stock a Buy, According to Analysts?
Turning to Wall Street, META stock comes in as a Strong Buy. Out of 46 analyst ratings, there are 39 Buys, five Holds, and two Sells. The average Meta stock price target is $281.05, implying upside potential of 11.2%. Analyst price targets range from a low of $220.00 per share to a high of $350.00 per share.
The Takeaway: It's a Mistake to Bet Against Zuckerberg
There's no doubt that META stock has come a long way since the depths of November. Though the price of admission has surged (31.1 times trailing price-to-earnings), I still wouldn't give up on Zuckerberg's empire quite yet.
He was right to pivot Meta into a "year of efficiency," and I believe he'll be right again longer term as he steers the ship toward AI and the Metaverse.
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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Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5. Though Meta's hot run has been the envy of its FAANG peers, there are still catalysts that could help extend the rally, potentially all the way to all-time highs. That said, as the trend heats up again, we may see more investors start to think about such metaverse efforts in a more positive light -- not as a cash sink but as a growth initiative that could help power some serious appreciation.
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Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5. Meta Platforms (NASDAQ:META) stock has been an unbelievable performer since bottoming out late last year, now up around 185%+ from its November lows. The average Meta stock price target is $281.05, implying upside potential of 11.2%.
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Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5. Meta Platforms (NASDAQ:META) stock has been an unbelievable performer since bottoming out late last year, now up around 185%+ from its November lows. Meta is Harnessing the Power of AI With the power of AI, Meta may be able to increase the value of its ads without having to track users across the internet.
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Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5. Regardless, it's hard not to be impressed by Meta's ability to innovate through trying times. June Could be a Big Month for the Metaverse Many investors may have dismissed the Metaverse in favor of AI as the trend to bet on over the past six months.
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15663.0
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2023-05-25 00:00:00 UTC
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Noteworthy Thursday Option Activity: MRNA, AAPL, ANET
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-mrna-aapl-anet
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Moderna Inc (Symbol: MRNA), where a total volume of 35,275 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 104.7% of MRNA's average daily trading volume over the past month, of 3.4 million shares. Especially high volume was seen for the $190 strike put option expiring July 21, 2023, with 6,745 contracts trading so far today, representing approximately 674,500 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 538,107 contracts, representing approximately 53.8 million underlying shares or approximately 95.3% of AAPL's average daily trading volume over the past month, of 56.4 million shares. Particularly high volume was seen for the $175 strike call option expiring May 26, 2023, with 77,689 contracts trading so far today, representing approximately 7.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
And Arista Networks Inc (Symbol: ANET) saw options trading volume of 30,793 contracts, representing approximately 3.1 million underlying shares or approximately 89.2% of ANET's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $150 strike call option expiring June 16, 2023, with 2,614 contracts trading so far today, representing approximately 261,400 underlying shares of ANET. Below is a chart showing ANET's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for MRNA options, AAPL options, or ANET options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
CRON Insider Buying
Top Ten Hedge Funds Holding RWX
Funds Holding FRXB
The views and 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 $175 strike call option expiring May 26, 2023, with 77,689 contracts trading so far today, representing approximately 7.8 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 538,107 contracts, representing approximately 53.8 million underlying shares or approximately 95.3% of AAPL's average daily trading volume over the past month, of 56.4 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: And Arista Networks Inc (Symbol: ANET) saw options trading volume of 30,793 contracts, representing approximately 3.1 million underlying shares or approximately 89.2% of ANET's average daily trading volume over the past month, of 3.5 million shares.
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Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 538,107 contracts, representing approximately 53.8 million underlying shares or approximately 95.3% of AAPL's average daily trading volume over the past month, of 56.4 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: And Arista Networks Inc (Symbol: ANET) saw options trading volume of 30,793 contracts, representing approximately 3.1 million underlying shares or approximately 89.2% of ANET's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $175 strike call option expiring May 26, 2023, with 77,689 contracts trading so far today, representing approximately 7.8 million underlying shares of AAPL.
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Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 538,107 contracts, representing approximately 53.8 million underlying shares or approximately 95.3% of AAPL's average daily trading volume over the past month, of 56.4 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: And Arista Networks Inc (Symbol: ANET) saw options trading volume of 30,793 contracts, representing approximately 3.1 million underlying shares or approximately 89.2% of ANET's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $175 strike call option expiring May 26, 2023, with 77,689 contracts trading so far today, representing approximately 7.8 million underlying shares of AAPL.
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Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 538,107 contracts, representing approximately 53.8 million underlying shares or approximately 95.3% of AAPL's average daily trading volume over the past month, of 56.4 million shares. Particularly high volume was seen for the $175 strike call option expiring May 26, 2023, with 77,689 contracts trading so far today, representing approximately 7.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: And Arista Networks Inc (Symbol: ANET) saw options trading volume of 30,793 contracts, representing approximately 3.1 million underlying shares or approximately 89.2% of ANET's average daily trading volume over the past month, of 3.5 million shares.
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15664.0
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2023-05-25 00:00:00 UTC
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3 Tech Stocks to Buy Before They Soar to New Heights in 2023
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-to-buy-before-they-soar-to-new-heights-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks have had a great start to 2023 after the sell-off in 2022. With the growing demand and success of cloud computing, augmented reality and artificial intelligence, tech companies are ready for a solid comeback. The Nasdaq Composite Index was down 33% in 2022 and several stocks took a beating. Many companies suffered more than expected but things are looking better this year and now is a good time to start looking for the top tech stocks to buy.
With a soft inflation report and the economy slowly getting back to normal, it looks like tech stocks are set to gain. If you are thinking about investing in tech stocks right now, you will be able to take home big gains as they soar to new highs in 2023. With that in mind, let’s take a look at the three tech stocks to add to your portfolio.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
I’ve said it before and I’ll say it again, Nvidia (NASDAQ:NVDA) is one company that can make you a millionaire. NVDA stock has been red hot since the beginning of 2023. Year-to-date (YTD) it has already generated a nearly 160% return. If you missed that opportunity its not too late, now is a good time to buy into one of the soaring tech stocks.
Nvidia reported a blowout first quarter report with top and bottom-line growth. Its revenue stood at $7.19 billion, up 19% from the previous quarter and EPS came in at $1.09. Its data center sales came in at $4.28 billion, a 14% annual increase. The data center sales are running at an annualized rate of $17 billion up to this quarter and management expects the data center numbers to grow throughout 2023.
Nvidia’s numbers show that the future is in artificial intelligence (AI) and its automotive division. That includes both chips and software for self-driving cars and grew by 114% year-over-year (YOY). With the growing AI chip demand, they expect a revenue boom in the coming quarters and this means there is a massive upside potential.
Nvidia has a bullish forecast and a massive demand for its product. The company stated that they are ramping up production to meet the growing demand. Nvidia is at the right place at the right time and it is in a position to make the most of the AI boom.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) is one company that has always been on top of everything tech. It maintained that reputation with the hype surrounding AI and Microsoft’s investment in OpenAI’s ChatGPT. It is set to benefit significantly from this investment and has also unveiled several new AI-based search features for its search engine and internet browser. The best thing about Microsoft is that the management is ready to take on new challenges and adopt the latest technologies to its products. The investment in ChatGPT will give it an edge in the competitive industry and will also help improve the effectiveness of the core products by allowing task automation.
An already established, solid business, Microsoft reported better than expected quarterly results and the management expects that AI will drive future growth. MSFT stock is up 31% YTD. It has generated over 200% returns in the past five years and analysts expect the stock to hit $400 this year.
I believe Microsoft is a solid addition to your portfolio as it is set to benefit from the AI boom. Like Nvidia, the company is growing at a significant rate in the cloud business. Management expects this segment to increase by 15% to 16% YOY in the next quarter. When you invest in Microsoft, you are investing in an already established business and you do not have to worry about the company setting infrastructure or wait for the AI-driven demand to take off so that you can benefit from the stock. This also justifies the high stock price.
Ignore the temporary ups and downs and load up on MSFT stock. This is one to buy and hold for the decade as it will continue to soar.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
One solid reason I’d bet on Apple (NASDAQ:AAPL) is its loyal customer base. No matter the market situation, Apple has remained a favorite. Many Mac and iPhone users are so loyal to the product that they wouldn’t switch to another brand for anything. Investors can turn to AAPL stock if the market is uncertain and you won’t be disappointed.
The tech giant enjoys a lofty valuation today and AAPL stock is up 37% YTD. This shows the solid business model and strength of its products and services. In the recent quarter, the company saw a 3% revenue decline YOY. It reported a revenue of $94.84 billion and enjoys a gross margin of 44%. Its iPhone revenue was the highest at $51.33 billion, followed by the services segment revenue at $20.91 billion. The iPhone revenue grew 2% in the quarter and the company expects the next quarter to be similar to this one.
The potential for Apple to expand is massive. It is working on a self-driving car and hasn’t even touched the foldable phone market. The business is great and the future looks stable. It is growing its services segment which means the company isn’t solely dependent on the iPhones.
AAPL stock is one of the tech stocks to buy before soaring as it inches closer to $200.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
The post 3 Tech Stocks to Buy Before They Soar to New Heights in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One solid reason I’d bet on Apple (NASDAQ:AAPL) is its loyal customer base. Investors can turn to AAPL stock if the market is uncertain and you won’t be disappointed. The tech giant enjoys a lofty valuation today and AAPL stock is up 37% YTD.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One solid reason I’d bet on Apple (NASDAQ:AAPL) is its loyal customer base. Investors can turn to AAPL stock if the market is uncertain and you won’t be disappointed. The tech giant enjoys a lofty valuation today and AAPL stock is up 37% YTD.
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AAPL stock is one of the tech stocks to buy before soaring as it inches closer to $200. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One solid reason I’d bet on Apple (NASDAQ:AAPL) is its loyal customer base. Investors can turn to AAPL stock if the market is uncertain and you won’t be disappointed.
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AAPL stock is one of the tech stocks to buy before soaring as it inches closer to $200. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One solid reason I’d bet on Apple (NASDAQ:AAPL) is its loyal customer base. Investors can turn to AAPL stock if the market is uncertain and you won’t be disappointed.
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15665.0
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2023-05-25 00:00:00 UTC
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Tech Leads the Market
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AAPL
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https://www.nasdaq.com/articles/tech-leads-the-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s been full steam ahead for technology stocks recently.
The tech-heavy NASDAQ has dramatically outperformed the other major indices in May so far, rising 3.9%. In comparison, the S&P 500 has dropped 0.4%, while the Dow has dropped 3.9%.
And mega-cap technology stocks are leading the NASDAQ higher.
It’s worth noting that three of these stocks – namely, Alphabet Inc. (Google), Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) – are prospering from the artificial intelligence (AI) and ChatGPT craze. (Stay tuned! I’ll have more on more on NVIDIA and AI in tomorrow’s Market 360.)
In today’s Market 360, we’ll take a look at what’s driving tech stocks higher… and the “spark” that could flood the market with cash and send stocks even higher to close the year. Plus, I’ll share how you can access my next tech Buy List recommendation tomorrow…
Bigger Than Ever Before
Both Apple’s and Microsoft’s individual capitalizations are bigger than all the stocks in the small-cap Russell 2000 index.
One of the biggest drivers of tech stocks right now is AI.
Microsoft’s investment in ChatGPT has raised excitement about upgrades to all of its software, especially its search engine Bing. The rumblings that Samsung plans to replace Google with Bing as its preferred search engine has also fueled the speculation that ChatGPT will improve Bing’s searchability and help Microsoft become an AI leader.
Right now, every company in America is thinking about how to take existing products, services and business models and add an incredible new “super intelligence” component to them.
Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September.
As investors, we want to make sure we’re prepared to ride stocks higher.
Prepare Now for the Market’s Next Leg Higher
The fact is, that spark could also come from the Federal Reserve commenting that inflation is cooling. Since 2024 is a presidential election year, the Fed does not want to be part of the economic debate, so key interest rate cuts will be forthcoming later this year and in early 2024.
It is important to realize that there is going to be wave-after-wave of positive news on inflation, interest rates and economic growth that will be coaxing investors back into the stock market. The leadership of the stock market will undoubtedly change in the upcoming months, although some of the seven giant technology stocks, like NVIDIA, are expected to continue to prosper from the AI boom.
(Remember, I’ll have more on NVIDIA and AI in tomorrow’s Market 360.)
Whether we’re talking about tech, financial or retail stocks, you always want to make sure you’re invested in fundamentally superior companies that consistently grow their earnings – like the companies on my Growth Investor Buy List.
In the new Growth Investor Monthly Issue, set to be released tomorrow, I’ll be adding one new fundamentally superior tech stock to my Buy List… one that could profit from accelerating AI adaptation. I’ll also be recommending three other companies that are showing superior fundamentals.
My new issue goes live tomorrow.
To ensure you have access to the issue – and my four new buy recommendations – join me at Growth Investor here.
(If you are already a Growth Investor subscriber, I’ll send you the new monthly issue as soon as it’s released tomorrow. In the meantime, you can log in here to view your subscription.)
Sincerely,
Louis Navellier
P.S. Our elected leaders tell us that everything is ok… that the economy is “back on track”… that the worst is behind us.
But the average American knows that deep down things are not OK.
I believe that no responsible, hardworking American should have worry about outliving their money.
That’s why I created this new video.
In this video, I’m going to pull back the curtain and show you what I, and what many people in my inner circle, are doing right now.
Click this link for the full details.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA) and Microsoft Corp. (MSFT)
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Tech Leads the Market 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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Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September. It’s worth noting that three of these stocks – namely, Alphabet Inc. (Google), Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) – are prospering from the artificial intelligence (AI) and ChatGPT craze. In the new Growth Investor Monthly Issue, set to be released tomorrow, I’ll be adding one new fundamentally superior tech stock to my Buy List… one that could profit from accelerating AI adaptation.
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Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s been full steam ahead for technology stocks recently. It’s worth noting that three of these stocks – namely, Alphabet Inc. (Google), Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) – are prospering from the artificial intelligence (AI) and ChatGPT craze.
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Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s been full steam ahead for technology stocks recently. In today’s Market 360, we’ll take a look at what’s driving tech stocks higher… and the “spark” that could flood the market with cash and send stocks even higher to close the year.
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Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September. And mega-cap technology stocks are leading the NASDAQ higher. It’s worth noting that three of these stocks – namely, Alphabet Inc. (Google), Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) – are prospering from the artificial intelligence (AI) and ChatGPT craze.
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15666.0
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2023-05-25 00:00:00 UTC
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After Hours Most Active for May 25, 2023 : UPWK, XYL, AAPL, T, MRVL, AMZN, NVDA, MSFT, TAL, GPS, DVN, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-25-2023-%3A-upwk-xyl-aapl-t-mrvl-amzn-nvda-msft-tal-gps-dvn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 6.54 to 13,945.07. The total After hours volume is currently 102,106,506 shares traded.
The following are the most active stocks for the after hours session:
Upwork Inc. (UPWK) is unchanged at $7.60, with 11,245,676 shares traded. As reported by Zacks, the current mean recommendation for UPWK is in the "buy range".
Xylem Inc. (XYL) is +0.11 at $99.00, with 6,792,307 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 $0.81. XYL's current last sale is 82.5% of the target price of $120.
Apple Inc. (AAPL) is +0.09 at $173.08, with 4,801,485 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".
AT&T Inc. (T) is +0.04 at $15.19, with 4,372,608 shares traded. T's current last sale is 69.05% of the target price of $22.
Marvell Technology, Inc. (MRVL) is +5.99 at $55.46, with 3,468,064 shares traded. Smarter Analyst Reports: Marvell Posts Upbeat Q4 Results, Provides Impressive Projections
Amazon.com, Inc. (AMZN) is -0.04 at $114.96, with 2,945,697 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.34. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
NVIDIA Corporation (NVDA) is -1.1 at $378.70, with 2,633,117 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.73. , following a 52-week high recorded in today's regular session.
Microsoft Corporation (MSFT) is -0.22 at $325.70, with 2,083,242 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $2.56. , following a 52-week high recorded in today's regular session.
TAL Education Group (TAL) is unchanged at $5.52, with 1,986,026 shares traded. TAL's current last sale is 95.17% of the target price of $5.8.
Gap, Inc. (The) (GPS) is +1.09 at $8.51, with 1,788,414 shares traded., following a 52-week high recorded in today's regular session.
Devon Energy Corporation (DVN) is +0.02 at $47.89, with 1,687,748 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.71. DVN's current last sale is 72.56% of the target price of $66.
Bank of America Corporation (BAC) is -0.02 at $28.15, with 1,682,550 shares traded. BAC's current last sale is 80.43% of the target price of $35.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.09 at $173.08, with 4,801,485 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Marvell Posts Upbeat Q4 Results, Provides Impressive Projections
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Apple Inc. (AAPL) is +0.09 at $173.08, with 4,801,485 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is +0.09 at $173.08, with 4,801,485 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 102,106,506 shares traded.
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Apple Inc. (AAPL) is +0.09 at $173.08, with 4,801,485 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.04 at $15.19, with 4,372,608 shares traded.
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15667.0
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2023-05-25 00:00:00 UTC
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3 Long-Term Stocks That You Can Hold for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-long-term-stocks-that-you-can-hold-for-the-long-haul
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Intelligent retail investors embrace long-term investing as a powerful strategy to grow their wealth. Rather than attempting to time the market, they prioritize “time in the market” and make informed investment choices based on their own preferences, not relying on rumors or speculation. Benjamin Graham, the renowned value investing pioneer, emphasized the importance of this intelligent approach to investing.
I’ll show you three of the top and most undervalued securities on the marketplace currently that you can keep for a very long time and reap the rewards of their tremendous development for growth in this post.
Apple (AAPL)
Source: askarim / Shutterstock
When considering stocks for long-term growth, Apple (NASDAQ: AAPL) is a top contender. As one of the few trillion-dollar companies, its market value has more than doubled since 2018, showcasing its potential for further expansion.
With 6.6% of the value in the S&P 500 index, Apple now retains the top spot. The performance of Apple’s stock has a significant impact on the index. Luckily, despite the passing of its inspirational CEO, Steve Jobs, in 2011, the business has constantly dazzled shareholders by producing goods that connect to its devoted consumer base.
The popularity of Apple’s iPhone and iPad gadgets was a key factor in the company’s expansion in the mobile phone industry. However, its existing user base now provides opportunities for expansion into new areas, such as Apple TV and recurring revenue from iCloud storage. Almost 15% of the $265.6 billion in overall income in the 2018 financial year came from offerings, or $39.7 billion. Fast forward to fiscal 2022, and services made up roughly 20% of total sales, bringing in $78.1 billion.
Apple’s remarkable growth and diversification of products have been driving the success of its stock. The company’s history of successful launches, combined with its expanding product mix, indicates its potential for continued growth. Holding onto Apple stock for the long term is a wise choice, as it goes beyond short-term news or product releases.
Restaurant Brands (QSR)
Source: Savvapanf Photo / Shutterstock.com
Firehouse Subs, Burger King, Popeyes Louisiana Kitchen, and Tim Hortons are just a few of the renowned fast-food chains owned by Restaurant Brands International (NYSE: QSR). The stock has increased by 13% thus far this year and by 41% in the last year.
Despite the challenging economic environment, Restaurant Brands has delivered impressive results. Revenues jumped by 13.4% to $6.5 billion, while its earnings per share rose by over 21% to $3.25. All segments of the company performed well, with three achieving double-digit sales growth. Additionally, Restaurant Brands maintains a solid dividend yield of 3.1%.
Restaurant Brands outperformed earnings projections in Q1, with a revenue increase of 9.7% to $1.59 billion, surpassing expectations by $30 million. Earnings per share for the quarter were 75 cents, exceeding predictions by 11 cents. Despite macro challenges such as inflation, the company demonstrated robust growth in comparable and system-wide sales, making a positive start to the year.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
Occidental Petroleum (NYSE:OXY) stocks were purchased by Warren Buffett’s Berkshire Hathaway for more than $200 million in May, totaling 3.46 million shares. Despite Buffett’s previous comments, the buying range for Occidental Petroleum stock by Berkshire Hathaway was between $58.11 and $58.66.
Occidental Petroleum continues to impress with its strong performance in the first quarter, despite the energy price slowdown. The organization is on the right track with a phenomenal free income of $1.7 billion, or a 13% to 14% yearly dividend. Prospective benefits for shareholders include higher repurchases and dividend payments.
Occidental Petroleum closed 2022 with 3.8 billion barrels of proven reserves, highlighting its substantial reserve base. With a favorable asset profile and strong break-even potential, Occidental is primed to generate value for shareholders. The stock holds the fifth position in the Oil & Gas-International Exploration and Production industry. With a Composite Rating of 30, the stock exhibits moderate overall performance. It holds a Relative Strength Rating of 34 and an EPS Rating of 25.
On the date of publication, Chris MacDonald has a position in AAPL, QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Long-Term Stocks That You Can Hold for the Long Haul appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock When considering stocks for long-term growth, Apple (NASDAQ: AAPL) is a top contender. On the date of publication, Chris MacDonald has a position in AAPL, QSR. I’ll show you three of the top and most undervalued securities on the marketplace currently that you can keep for a very long time and reap the rewards of their tremendous development for growth in this post.
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Apple (AAPL) Source: askarim / Shutterstock When considering stocks for long-term growth, Apple (NASDAQ: AAPL) is a top contender. On the date of publication, Chris MacDonald has a position in AAPL, QSR. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intelligent retail investors embrace long-term investing as a powerful strategy to grow their wealth.
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Apple (AAPL) Source: askarim / Shutterstock When considering stocks for long-term growth, Apple (NASDAQ: AAPL) is a top contender. On the date of publication, Chris MacDonald has a position in AAPL, QSR. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intelligent retail investors embrace long-term investing as a powerful strategy to grow their wealth.
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Apple (AAPL) Source: askarim / Shutterstock When considering stocks for long-term growth, Apple (NASDAQ: AAPL) is a top contender. On the date of publication, Chris MacDonald has a position in AAPL, QSR. Almost 15% of the $265.6 billion in overall income in the 2018 financial year came from offerings, or $39.7 billion.
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15668.0
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2023-05-25 00:00:00 UTC
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Fox (FOXA) Nation to Air Second Season of Duck Family Treasure
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AAPL
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https://www.nasdaq.com/articles/fox-foxa-nation-to-air-second-season-of-duck-family-treasure
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nan
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nan
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Fox FOXA announced the premiere date for the second season of Duck Family Treasure at Fox Nation, the subscription-based streaming service owned by FOX News Media.
The show, produced in collaboration with Warm Springs Productions, will follow the Robertson family as they embark on a new adventure in search of hidden treasures.
The five-episode season will debut on Sunday, Jun 11. The second episode will also air on FOX News Channel at 10 PM/ET on the same night.
In the upcoming season of Duck Family Treasure, viewers will be reintroduced to Jase and Jep, accompanied by their wives Missy and Jessica, as well as Uncle Si and history expert Murry Crowe. They will embark on a quest to uncover hidden treasures scattered throughout the southern region.
Warm Springs Productions, in collaboration with executive producer Jase Robertson and Tread Lively Production’s Korie Robertson and Zach Dasher, is producing the second season of Duck Family Treasure.
Fox Corporation Price and Consensus
Fox Corporation price-consensus-chart | Fox Corporation Quote
Fox Faces Stiff Competition in the Streaming Market
Fox has been facing tough competition from the likes of Apple AAPL, Netflix NFLX and Amazon AMZN in the saturated streaming market. Moreover, saturation in the streaming market has been stifling growth.
Nevertheless, Fox Nation, despite being relatively newer streaming service (launched in 2018), has done well thanks to its strong content portfolio.
Fox Nation offers a vast library of content comprising more than 5,000 hours. The subscription service encompasses a range of programming, including conservative opinion shows, lifestyle and entertainment content, historical documentaries and investigative series featuring various FOX News personalities. The subscription is priced at $5.99 per month or $64.99 per year.
However, Netflix and Amazon prime video continues to dominate the streaming market. Apple’s Apple TV+ has also been gaining recognition thanks to a strong content portfolio with award wining movies and shows like CODA and Ted Lasso.
In the streaming industry it is very difficult to retain customers. Streaming service providers create franchises which keep customers hooked on to them. Big players have been doing that since some time now and has created a good number of loyal customers.
Going forward Fox is also focusing on creating franchises which would make customers loyal to them. This would in-turn boost the number of subscribers in the long term
Fox’s Upcoming Contents to Aid Growth
Shares of FOXA have gained 2.2% year to date compared with the Zacks Consumer & Discretionary sector’s growth of 5.2% over the same time frame.
This Zacks Rank #3 (Hold) company’s upcoming contents include 9-1-1: Lone Star, Cleaning Lady, Call Me Kat and Welcome To Flatch.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FOXA’s fourth-quarter fiscal 2023 earnings is pegged at a profit of 72 cents per share, indicating a year-over-year decline of 2.7%. The Zacks Consensus Estimate for revenues is pegged at $14.91 billion, indicating year-over-year growth of 6.69%.
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Fox Corporation (FOXA) : 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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Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Faces Stiff Competition in the Streaming Market Fox has been facing tough competition from the likes of Apple AAPL, Netflix NFLX and Amazon AMZN in the saturated streaming market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. In the upcoming season of Duck Family Treasure, viewers will be reintroduced to Jase and Jep, accompanied by their wives Missy and Jessica, as well as Uncle Si and history expert Murry Crowe.
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Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Faces Stiff Competition in the Streaming Market Fox has been facing tough competition from the likes of Apple AAPL, Netflix NFLX and Amazon AMZN in the saturated streaming market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. Fox FOXA announced the premiere date for the second season of Duck Family Treasure at Fox Nation, the subscription-based streaming service owned by FOX News Media.
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Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Faces Stiff Competition in the Streaming Market Fox has been facing tough competition from the likes of Apple AAPL, Netflix NFLX and Amazon AMZN in the saturated streaming market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. Fox FOXA announced the premiere date for the second season of Duck Family Treasure at Fox Nation, the subscription-based streaming service owned by FOX News Media.
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Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Faces Stiff Competition in the Streaming Market Fox has been facing tough competition from the likes of Apple AAPL, Netflix NFLX and Amazon AMZN in the saturated streaming market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. Fox FOXA announced the premiere date for the second season of Duck Family Treasure at Fox Nation, the subscription-based streaming service owned by FOX News Media.
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15669.0
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2023-05-25 00:00:00 UTC
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3 Semiconductor Stocks to Buy Before They Soar to New Heights in 2023
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AAPL
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https://www.nasdaq.com/articles/3-semiconductor-stocks-to-buy-before-they-soar-to-new-heights-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Semiconductor stocks are on a bull run, as demand explodes with the rapid growth of artificial intelligence applications and platforms. Investors are pouring money into semiconductor stocks at a fevered pace with the expectation that they will take us on a quantum leap forward with AI technology that includes chatbots, digital assistants and robots.
Since January, the stocks of some leading semiconductor companies have more than doubled as the hype builds. Accounting firm Deloitte has issued a report forecasting that the global semiconductor industry will grow to $1 trillion in annual revenues by 2030, doubling in less than a decade. As the entire semiconductor industry explodes, I’ll look at three semiconductor stocks to buy before they soar to new heights in 2023.
AMD Advanced Micro Devices $119.04
AVGO Broadcom $708.70
MRVL Marvell Technology $47.78
Advanced Micro Devices (AMD)
Source: Sundry Photography / Shutterstock.com
Shares of Advanced Micro Devices (NASDAQ:AMD) have been breaking out lately, having gained 23% over the last month. The stock of this leading semiconductor producer has been rising on reports that the company is getting more involved with artificial intelligence. There have been media reports in recent weeks that AMD is partnering with Microsoft (NASDAQ:MSFT) on the development of a new AI processor. There have also been articles saying that AMD is working on a new superchip that could have broad applications in AI.
Artificial intelligence hype aside, AMD stock has also benefitted from the company’s strong financial performance. The company managed to beat Wall Street expectations in its most recent quarter despite slumping personal computer sales weighing on its business. Following the company’s Q1 print, AMD stock received several analyst upgrades, with Bank of America (NYSE:BAC) raising its price target on the shares to $120 from $105.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Shares of semiconductor company Broadcom (NASDAQ:AVGO) have also been on an upswing lately, gaining 23% through nearly five months of the year. However, AVGO stock has not had the huge run that competing semi stocks such as Nvidia (NASDAQ:NVDA), which has more than doubled year to date, have enjoyed. This suggests that Broadcom’s stock could have more room to run. The stock isn’t cheap at nearly $700 a share. But it offers a quarterly dividend that yields 2.7%, which is better than most other semiconductor securities.
AVGO stock also just got a huge catalyst with news that Apple (NASDAQ:AAPL) has signed a deal with Broadcom to have the chipmaker develop 5G radio frequency components in the U.S. The exact value of the deal wasn’t revealed, though Apple said it is a multibillion dollar arrangement and part of its commitment to invest $430 billion in the American economy. Analysts were quick to praise the deal with Apple, saying it positions Broadcom, and its stock, for future growth.
Marvell Technology (MRVL)
Source: Michael Vi / Shutterstock.com
Marvell Technology (NASDAQ:MRVL) is a semiconductor stock that is recovering after a difficult decline last year. So far in 2023, MRVL stock is up 28%. However, it’s still 15% lower than where it was at 12 months ago and is down 50% from the all-time high the stock price reached in December 2021. There is reason to be bullish on Marvell’s stock though as the company continues to focus on developing chips for the fast-growing automotive industry (electric vehicles) and the AI sector.
For its fiscal 2023 earnings, Marvell Technology managed to grow its revenue by 33% year over year to $5.9 billion. The company isn’t profitable and reported a net loss of $164 million for fiscal 2023. However, that was a major improvement from a loss of $421 million recorded a year earlier. The company’s free cash flow rose 69% to $1.07 billion. Marvell has said it sees future growth in not just automotive and AI, but also in cloud computing and 5G mobile networks that use its semiconductors.
On the date of publication, Joel Baglole held long positions in NVDA, MSFT, AAPL and BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 3 Semiconductor Stocks to Buy Before They Soar to New Heights in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AVGO stock also just got a huge catalyst with news that Apple (NASDAQ:AAPL) has signed a deal with Broadcom to have the chipmaker develop 5G radio frequency components in the U.S. On the date of publication, Joel Baglole held long positions in NVDA, MSFT, AAPL and BAC. Investors are pouring money into semiconductor stocks at a fevered pace with the expectation that they will take us on a quantum leap forward with AI technology that includes chatbots, digital assistants and robots.
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AVGO stock also just got a huge catalyst with news that Apple (NASDAQ:AAPL) has signed a deal with Broadcom to have the chipmaker develop 5G radio frequency components in the U.S. On the date of publication, Joel Baglole held long positions in NVDA, MSFT, AAPL and BAC. AMD Advanced Micro Devices $119.04 AVGO Broadcom $708.70 MRVL Marvell Technology $47.78 Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com Shares of Advanced Micro Devices (NASDAQ:AMD) have been breaking out lately, having gained 23% over the last month.
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AVGO stock also just got a huge catalyst with news that Apple (NASDAQ:AAPL) has signed a deal with Broadcom to have the chipmaker develop 5G radio frequency components in the U.S. On the date of publication, Joel Baglole held long positions in NVDA, MSFT, AAPL and BAC. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor stocks are on a bull run, as demand explodes with the rapid growth of artificial intelligence applications and platforms.
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AVGO stock also just got a huge catalyst with news that Apple (NASDAQ:AAPL) has signed a deal with Broadcom to have the chipmaker develop 5G radio frequency components in the U.S. On the date of publication, Joel Baglole held long positions in NVDA, MSFT, AAPL and BAC. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor stocks are on a bull run, as demand explodes with the rapid growth of artificial intelligence applications and platforms.
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15670.0
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2023-05-25 00:00:00 UTC
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Nvidia close to becoming first trillion-dollar chip firm after stellar forecast
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AAPL
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https://www.nasdaq.com/articles/nvidia-close-to-becoming-first-trillion-dollar-chip-firm-after-stellar-forecast-1
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nan
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nan
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By Aditya Soni
May 25 (Reuters) - For Nvidia Corp NVDA.O, the boom in generative artificial intelligence (AI) is everything, everywhere, all at once.
The chip designer's shares extended their rally this year on Thursday, soaring about 28% after a stellar outlook showed that Wall Street has yet to price in the AI potential of the company that has already doubled in value in 2023.
Nvidia was on course to increase its market value by about $210 billion to nearly $970 billion. That would mark the largest one-day value gain for a U.S. company, a record currently held by Apple Inc AAPL.O after the iPhone maker's valuation rose by $190.90 billion on Nov. 10.
Nvidia's rosy earnings also sparked a rally in the chip sector and AI-focused firms, lifting stock markets from Japan to Europe. In the U.S., companies including Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and AMD AMD.O rose between 2% and 9%.
Analysts rushed to raise their price targets on Nvidia stock, with 27 lifting their view on the idea that all roads in AI lead to the company as it provides the chips used to power ChatGPT and many similar services.
The mean price target has more than doubled this year. At the highest view, a $600 price target from Rosenblatt Securities and HSBC, Nvidia will have a value of $1.48 trillion, more than Amazon.com Inc AMZN.O, the fourth-most valuable U.S. company.
"In the 15+ years we have been doing this job, we have never seen a guide like the one Nvidia just put up with the second-quarter outlook that was by all accounts cosmological, and which annihilated expectations," Stacy Rasgon of Bernstein said.
Nvidia, the fifth-most valuable U.S. company, on Wednesday projected quarterly revenue more than 50% above the average Wall Street estimate and said it would have more supply of AI chips in the second half to meet a surge in demand.
CEO Jensen Huang said $1 trillion worth of current equipment in data centers would have to be replaced with AI chips, as generative AI is applied into every product and service.
The results bode well for Big Tech companies, which have shifted focus to AI in hopes the technology would help attract demand at a time their profit engines of digital advertising and cloud computing are under pressure from a weak economy.
"This Nvidia (forecast) changes the whole narrative around AI and demand looking ahead in the enterprise. Historical inflection point possibly in AI Revolution, with Nvidia the key barometer," said Dan Ives of Wedbush.
Nvidia's results spark nearly $300 billion rally in AI stocks
(Reporting by Aditya Soni in Bengaluru; Editing by Rashmi Aich and Shounak Dasgupta)
((aditya.soni@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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That would mark the largest one-day value gain for a U.S. company, a record currently held by Apple Inc AAPL.O after the iPhone maker's valuation rose by $190.90 billion on Nov. 10. Analysts rushed to raise their price targets on Nvidia stock, with 27 lifting their view on the idea that all roads in AI lead to the company as it provides the chips used to power ChatGPT and many similar services. Nvidia, the fifth-most valuable U.S. company, on Wednesday projected quarterly revenue more than 50% above the average Wall Street estimate and said it would have more supply of AI chips in the second half to meet a surge in demand.
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That would mark the largest one-day value gain for a U.S. company, a record currently held by Apple Inc AAPL.O after the iPhone maker's valuation rose by $190.90 billion on Nov. 10. Analysts rushed to raise their price targets on Nvidia stock, with 27 lifting their view on the idea that all roads in AI lead to the company as it provides the chips used to power ChatGPT and many similar services. CEO Jensen Huang said $1 trillion worth of current equipment in data centers would have to be replaced with AI chips, as generative AI is applied into every product and service.
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That would mark the largest one-day value gain for a U.S. company, a record currently held by Apple Inc AAPL.O after the iPhone maker's valuation rose by $190.90 billion on Nov. 10. Analysts rushed to raise their price targets on Nvidia stock, with 27 lifting their view on the idea that all roads in AI lead to the company as it provides the chips used to power ChatGPT and many similar services. Nvidia, the fifth-most valuable U.S. company, on Wednesday projected quarterly revenue more than 50% above the average Wall Street estimate and said it would have more supply of AI chips in the second half to meet a surge in demand.
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That would mark the largest one-day value gain for a U.S. company, a record currently held by Apple Inc AAPL.O after the iPhone maker's valuation rose by $190.90 billion on Nov. 10. By Aditya Soni May 25 (Reuters) - For Nvidia Corp NVDA.O, the boom in generative artificial intelligence (AI) is everything, everywhere, all at once. Nvidia was on course to increase its market value by about $210 billion to nearly $970 billion.
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15671.0
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2023-05-25 00:00:00 UTC
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Is Microsoft Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-microsoft-stock-a-buy-2
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nan
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nan
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Tech investors have had a good year so far, but the 22% surge in the Nasdaq Composite index still pales in comparison to the returns that Microsoft (NASDAQ: MSFT) owners have seen. The software giant is up over 30% through mid-May, in fact.
Wall Street is excited about the prospects for its cloud services division and the potential for a generally strong selling environment ahead for enterprise software. Looking further out, Microsoft might see excellent returns from attractive niches like video games, cybersecurity, and artificial intelligence (AI).
But does the over $2 trillion valuation on the business mean that expectations are too high for investors to see decent returns from here? Let's take a closer look.
More diverse than Apple
Microsoft and Apple (NASDAQ: AAPL) both have valuations over $2 trillion, yet Microsoft delivers more diversification than the iPhone maker does. Owning this stock means an investor is exposed to several growing tech segments like cybersecurity, subscription gaming services, and cloud enterprise software. That range of growth prospects is possible to achieve without owning Microsoft stock, but would require an investor to buy several other niche players.
The company's latest results show the strength of having this deep portfolio. While parts of the business, like games and PC hardware, shrank in early 2023, Microsoft's global revenue still rose 10%. Apple's sales ticked lower by about 3%, by comparison.
Profits and cash flow
The financial risk for Microsoft investors is also relatively low. The tech stock maintains some of the highest profitability on the market, with operating profit margin now sitting above 40% of sales. Microsoft generated $59 billion of operating cash flow over the past nine months, down only slightly from the prior-year period.
MSFT Operating Margin (TTM) data by YCharts
Its ample cash generation has allowed executives to build up a large savings even as they invest in growth initiatives like AI and the Activision Blizzard acquisition. There's always the risk that big moves like this will destroy shareholder value. But Microsoft's track record has been generally positive on this score.
Paying up
That means the biggest risk for prospective investors is paying too high of a price for this profitable business. That's not a hard case to make given that Microsoft shares are valued at over 11 times annual sales compared to the pandemic high of about 13. Apple can be bought for 7 times revenue, by comparison. There are some rational reasons to believe that this premium valuation can drop over the next few years, including a downturn in IT spending or disappointing returns from AI investments and the Activision purchase.
On the other hand, Microsoft can also grow into that valuation by continuing to expand sales at a double-digit rate while maintaining its market-thumping profitability. And, either way, shareholders are likely to see strong returns, including direct cash returns from stock buyback spending and dividends. While Microsoft isn't going to double its market capitalization anytime soon, investors can still generate market-beating returns by holding the stock as part of a diverse growth-focused portfolio.
10 stocks we like better than Microsoft
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 Microsoft 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
Demitri Kalogeropoulos has positions in Activision Blizzard and Apple. The Motley Fool has positions in and recommends Activision Blizzard, 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.
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More diverse than Apple Microsoft and Apple (NASDAQ: AAPL) both have valuations over $2 trillion, yet Microsoft delivers more diversification than the iPhone maker does. MSFT Operating Margin (TTM) data by YCharts Its ample cash generation has allowed executives to build up a large savings even as they invest in growth initiatives like AI and the Activision Blizzard acquisition. There are some rational reasons to believe that this premium valuation can drop over the next few years, including a downturn in IT spending or disappointing returns from AI investments and the Activision purchase.
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More diverse than Apple Microsoft and Apple (NASDAQ: AAPL) both have valuations over $2 trillion, yet Microsoft delivers more diversification than the iPhone maker does. Owning this stock means an investor is exposed to several growing tech segments like cybersecurity, subscription gaming services, and cloud enterprise software. And, either way, shareholders are likely to see strong returns, including direct cash returns from stock buyback spending and dividends.
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More diverse than Apple Microsoft and Apple (NASDAQ: AAPL) both have valuations over $2 trillion, yet Microsoft delivers more diversification than the iPhone maker does. While Microsoft isn't going to double its market capitalization anytime soon, investors can still generate market-beating returns by holding the stock as part of a diverse growth-focused portfolio. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Demitri Kalogeropoulos has positions in Activision Blizzard and Apple.
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More diverse than Apple Microsoft and Apple (NASDAQ: AAPL) both have valuations over $2 trillion, yet Microsoft delivers more diversification than the iPhone maker does. Apple can be bought for 7 times revenue, by comparison. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Demitri Kalogeropoulos has positions in Activision Blizzard and Apple.
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15672.0
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2023-05-25 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-41
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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
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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15673.0
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2023-05-25 00:00:00 UTC
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3 Stocks That Could Be the Next Trillion-Dollar Titans
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-could-be-the-next-trillion-dollar-titans
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If we go back about five months ago, no one was looking for the next trillion-dollar companies. Apple (NASDAQ:AAPL) was making new 52-week lows at the start of 2023, while many mega-cap tech names were rolling over in late December and early January.
It didn’t matter if it was a well-established tech giant or the top companies of the future; investors were selling these names left and right. Now, just a few months later and we’ve had a completely different situation.
Just a handful of tech stocks have driven almost 90% of the gains in the S&P 500, while the Nasdaq is up more than 21% so far for the year. A few of these names have even doubled in price from the 2023 low.
The robust price action has investors looking for the future trillion-dollar companies. There are already a few that have cleared this hurdle and the current ones include: Apple, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
Outside of those, then, what are the next trillion-dollar companies?
NVDA Nvidia $301.31
META Meta $247.38
BRK.B Berkshire Hathaway $319.84
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
I know, I know…everyone’s favorite stock of the moment is Nvidia (NASDAQ:NVDA). There are probably a few readers rolling their eyes saying, “I knew this list would have Nvidia.” To be fair though, I have been a big proponent of Nvidia over the years — even calling it one of the future trillion-dollar companies two years ago.
By now, it’s no secret that Nvidia is helping to power the AI revolution taking place. Will it be the only winner? Of course not. However, it’s one of the primary focuses right now, regardless of any supply related issues or valuation constraints on the stock price.
Back at its high, Nvidia stock commanded a market capitalization north of $800 billion. So it’s really not farfetched to think this company could be one of the future trillion-dollar companies, especially with its work in AI.
Analysts expect impressive growth this year and next, calling for double-digit jumps in earnings and revenue.
Meta (META)
Source: Aleem Zahid Khan / Shutterstock.com
You could put both Meta (NASDAQ:META) and Tesla (NASDAQ:TSLA) in this spot, as both firms have crossed the $1 trillion barrier in the past. I really like the long-term potential of Tesla. While it does have increasing competition in the EV space, it continues to generate strong results and solid growth.
That said, the company leans heavily on Elon Musk as its leader. It also leans heavily on the global economy. That’s not to say Meta would fare any better during a recession. I believe the stock performance leans less heavily on CEO Mark Zuckerberg and its valuation is lower.
Plus, the stock has robust momentum right now. While up just 27% in the past 12 months, shares are up more than 100% so far in 2023.
That’s as the firm continues to slash its costs and focus on the core business. It’s letting all this metaverse talk cool off and is focusing on what everyone else seems to be: AI.
I don’t know if that’s the right call or not. But what I do know is that social media doesn’t seem to be going anywhere anytime soon and that online ads are plenty profitable at the moment.
Berkshire Hathaway (BRK.B)
Source: Jonathan Weiss / Shutterstock.com
The slow-and-steady pick to join the $1 trillion club? Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
Sporting a market cap of more than $700 billion, the firm is on its way. The best part? It’s a total conglomerate with a low valuation.
Berkshire Hathaway has a large portfolio of private and public companies. Of the latter, Apple dominates as the largest position. However, Berkshire is often able to nab deals that regular investors (even institutional investors) don’t have access to.
At the hands of Warren Buffett and Charlie Munger, investors know the firm takes its time to make savvy, smart deals. The duo have trained its up-and-coming portfolio managers under the same principles. While no one will ever be Buffett or Munger, knowing the company has set up a succession plan should help ease the eventual transitions from the top.
As it stands, analysts expect mid-single-digit revenue growth this year and next year (roughly 6.5%) and roughly 13% earnings growth in 2023 and 2024.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Stocks That Could Be the Next Trillion-Dollar Titans appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) was making new 52-week lows at the start of 2023, while many mega-cap tech names were rolling over in late December and early January. At the hands of Warren Buffett and Charlie Munger, investors know the firm takes its time to make savvy, smart deals. While no one will ever be Buffett or Munger, knowing the company has set up a succession plan should help ease the eventual transitions from the top.
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Apple (NASDAQ:AAPL) was making new 52-week lows at the start of 2023, while many mega-cap tech names were rolling over in late December and early January. NVDA Nvidia $301.31 META Meta $247.38 BRK.B Berkshire Hathaway $319.84 Nvidia (NVDA) Source: Michael Vi / Shutterstock.com I know, I know…everyone’s favorite stock of the moment is Nvidia (NASDAQ:NVDA). There are probably a few readers rolling their eyes saying, “I knew this list would have Nvidia.” To be fair though, I have been a big proponent of Nvidia over the years — even calling it one of the future trillion-dollar companies two years ago.
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Apple (NASDAQ:AAPL) was making new 52-week lows at the start of 2023, while many mega-cap tech names were rolling over in late December and early January. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If we go back about five months ago, no one was looking for the next trillion-dollar companies. NVDA Nvidia $301.31 META Meta $247.38 BRK.B Berkshire Hathaway $319.84 Nvidia (NVDA) Source: Michael Vi / Shutterstock.com I know, I know…everyone’s favorite stock of the moment is Nvidia (NASDAQ:NVDA).
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Apple (NASDAQ:AAPL) was making new 52-week lows at the start of 2023, while many mega-cap tech names were rolling over in late December and early January. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If we go back about five months ago, no one was looking for the next trillion-dollar companies. Outside of those, then, what are the next trillion-dollar companies?
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15674.0
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2023-05-25 00:00:00 UTC
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These 3 Dividend Stocks Can Add Some Sizzle to Your Passive Income This Summer
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AAPL
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https://www.nasdaq.com/articles/these-3-dividend-stocks-can-add-some-sizzle-to-your-passive-income-this-summer
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Dividend stocks have been under a lot of pressure over the past year because of rising interest rates. Higher rates give income-focused investors more lower-risk options as the rates on bonds and CDs rise. That weighs on the shares of dividend-paying stocks, causing their yields to rise.
Getty Realty (NYSE: GTY), EPR Properties (NYSE: EPR), and Kimco Realty (NYSE: KIM) currently stand out to a few Fool.com contributors for their attractive dividend yields. Here's why they think this trio can add some sizzle to your passive income this summer.
This REIT is ready to rally as the summer driving season heats up
Marc Rapport (Getty Realty): Getty Realty is a real estate investment trust (REIT) that has a very narrow niche in a very recession- and inflation-resistant business: gas stations, auto parts and related shops, car washes, and convenience stores.
The trust currently owns 1,047 free-standing properties in 39 states and the District of Columbia and its net-lease arrangement with its tenants, primarily national and regional brands, leaves most of the maintenance, taxes, and insurance to them while it rakes in the cash to pump out a consistent stream of passive income and some share price growth, too.
Getty Realty stock has been outperforming the greater market and the REIT sector over the past three years since the initial pandemic plunge, as shown in this chart comparing its total return against a major REIT index and the S&P 500.
Data source: YCharts ^CRUSREIT
The company's properties are nearly 100% occupied and concentrated in urban areas. Seventy percent of them are corner locations and with the average lease having nearly nine years left to run and an annual rent escalator of about 1.6% to help ensure growing income.
What Getty Realty lacks in diversification it makes up for in reliability. REITs are required to pay out most of their taxable income as dividends, and after 10 straight years of dividend increases Getty Realty stock is yielding about 5% with a payout ratio of about 58% based on cash flow that points to the ability of the trust to keep reliably covering that obligation.
Getty stock is trading about 9% below its 52-week high and, with its financial stability and necessity-based business model, could well be set to sizzle as the summer driving season heats up.
The potential for blockbuster total returns
Matt DiLallo (EPR Properties): EPR Properties has taken its investors on a less-than-exhilarating ride in recent years. Shares of the REIT focused on experiential properties, such as movie theaters, plummeted during the pandemic, and recovered in its aftermath, only to fall again after the parent of a key tenant (Regal Entertainment) entered bankruptcy. The company's stock price is currently about 25% below its 52-week high. That has it trading at an enticing dividend yield of 7.8%.
Better days appear to be ahead for this high-yielding REIT. Regal has continued to pay rent throughout the bankruptcy process. Meanwhile, its parent expects to exit bankruptcy this summer. That should help lift some of the weight off EPR's stock price, assuming no major changes to its existing leases with Regal.
Meanwhile, the theater market, which makes up 41% of its income, is improving. Chief Executive Officer Greg Silvers stated on the first-quarter earnings call: "At an industry level, we are encouraged by the continued substantial growth in box office revenues as content production ramps up. Additionally, we are excited to see the significant news of both Amazon and Apple committing to spend $1 billion a year toward movies with theatrical releases."
Box office receipts were up 28% in the first quarter to $1.7 billion, while the second quarter is off to a great start following the blockbuster release of The Super Mario Bros. Movie.
EPR also continues to make strides in its diversification strategy. It's building and buying experiential properties to reduce its dependence on theaters.
With a near-term upside catalyst and a high-yielding monthly dividend, EPR Properties could deliver sizzling total returns this summer.
Omnichannel retailing is benefiting Kimco Realty
Brent Nyitray (Kimco Realty): Kimco Realty is a REIT that focuses on open-air, supermarket-anchored strip malls and mixed-use properties. As of Dec. 31, 2022, the company held full or partial ownership of 532 shopping centers with 90.8 million square feet of gross leasable area in 28 states. The company's major markets are in the Sun Belt and coastal city metropolitan areas, primarily in the suburbs. The biggest tenants include T.J. Maxx parent TJX Cos., Home Depot, and Albertsons.
There is a shortage of high-quality retail space in the U.S., the result of underbuilding over the past decade. Part of this was due to the mistaken idea that e-commerce would displace brick-and-mortar stores. This hasn't happened, and omnichannel retail is taking share. This refers to retailers that sell both in store and online. The buy-online, pick-up-in-store model is attractive for many retailers because it lowers logistics costs and encourages impulse buys in the store. Consumer spending has remained strong, particularly for nondiscretionary items, which benefits Kimco's grocery and drug store anchors.
Kimco is forecasting 2023 funds from operations (FFO) per share of between $1.54 and $1.57 per share. REITs generally use FFO in lieu of net income as reported under generally accepted accounting principles (GAAP) because it better reflects the actual cash flows of the company. Based on the midpoint of this projection, Kimco is trading at 11.7 times estimated FFO per share, which is a reasonable multiple for a high-quality REIT. The dividend, which was last hiked in September 2022, is $0.23 per share, which gives the company a dividend yield of 4.9%.
10 stocks we like better than Getty Realty
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 Getty Realty 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brent Nyitray, CFA has no position in any of the stocks mentioned. Marc Rapport has positions in Amazon.com and Getty Realty. Matthew DiLallo has positions in Amazon.com, Apple, EPR Properties, and Home Depot. The Motley Fool has positions in and recommends Amazon.com, Apple, and Home Depot. The Motley Fool recommends EPR Properties and Tjx Companies. 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 trust currently owns 1,047 free-standing properties in 39 states and the District of Columbia and its net-lease arrangement with its tenants, primarily national and regional brands, leaves most of the maintenance, taxes, and insurance to them while it rakes in the cash to pump out a consistent stream of passive income and some share price growth, too. Getty stock is trading about 9% below its 52-week high and, with its financial stability and necessity-based business model, could well be set to sizzle as the summer driving season heats up. Shares of the REIT focused on experiential properties, such as movie theaters, plummeted during the pandemic, and recovered in its aftermath, only to fall again after the parent of a key tenant (Regal Entertainment) entered bankruptcy.
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Getty Realty (NYSE: GTY), EPR Properties (NYSE: EPR), and Kimco Realty (NYSE: KIM) currently stand out to a few Fool.com contributors for their attractive dividend yields. This REIT is ready to rally as the summer driving season heats up Marc Rapport (Getty Realty): Getty Realty is a real estate investment trust (REIT) that has a very narrow niche in a very recession- and inflation-resistant business: gas stations, auto parts and related shops, car washes, and convenience stores. Omnichannel retailing is benefiting Kimco Realty Brent Nyitray (Kimco Realty): Kimco Realty is a REIT that focuses on open-air, supermarket-anchored strip malls and mixed-use properties.
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Getty Realty (NYSE: GTY), EPR Properties (NYSE: EPR), and Kimco Realty (NYSE: KIM) currently stand out to a few Fool.com contributors for their attractive dividend yields. REITs are required to pay out most of their taxable income as dividends, and after 10 straight years of dividend increases Getty Realty stock is yielding about 5% with a payout ratio of about 58% based on cash flow that points to the ability of the trust to keep reliably covering that obligation. Omnichannel retailing is benefiting Kimco Realty Brent Nyitray (Kimco Realty): Kimco Realty is a REIT that focuses on open-air, supermarket-anchored strip malls and mixed-use properties.
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Regal has continued to pay rent throughout the bankruptcy process. Omnichannel retailing is benefiting Kimco Realty Brent Nyitray (Kimco Realty): Kimco Realty is a REIT that focuses on open-air, supermarket-anchored strip malls and mixed-use properties. The Motley Fool recommends EPR Properties and Tjx Companies.
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15675.0
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2023-05-25 00:00:00 UTC
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Researchers find Israeli-made spyware deployed across Armenia
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AAPL
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https://www.nasdaq.com/articles/researchers-find-israeli-made-spyware-deployed-across-armenia
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nan
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By Raphael Satter and James Pearson
LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found.
A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
What researchers were able to confirm "is the tip of the iceberg," said Natalia Krapiva, the tech-legal counsel for Access Now. "The targeting was quite extensive."
Pegasus is one of many advanced espionage tools that affords hackers sweeping access to their targets' smartphones, allowing them to record calls, intercept messages and even transform the phones into portable listening devices.
Researchers, lawmakers, and journalists have repeatedly accused the technology's maker, Israel-based NSO Group, of helping governments spy on political opponents. In 2021, the company was blacklisted by the U.S. government over human rights concerns.
The company has previously disputed accusations of wrongdoing, saying its software is used to fight terrorism and serious crime.
One of the alleged Armenian victims of NSO's spyware said those explanations do not reflect reality.
"That's a kind of ridiculous umbrella for the companies that create these products and the governments that use them," Armenian opposition broadcaster Samvel Farmanyan told Reuters.
He added that his targeting was "totally unacceptable (and had) nothing to do with the prevention of any type of crime or terrorism."
AZERBAIJAN DENIES RESPONSIBILITY
The researchers said they believed neighboring Azerbaijan, which has fought several wars with Armenia over the disputed chunk of territory known as Nagorno-Karabakh or Artsakh, was likely responsible for the hacking activity.
That's in part because of "extensive evidence" that Azerbaijan's government has previously used Pegasus against its domestic opponents, said Amnesty's Donncha O Cearbhaill, referring to a 2021 investigation by Amnesty and other partners that found hundreds of Azeri phone numbers had been selected for targeting with Pegasus spyware.
The Azeri Embassy in London said in a statement that Azerbaijan "does not engage in such practices" and "does not spy on foreign citizens".
The Armenian Embassy in London said its government rejected the alleged use of spyware at the "highest level".
"Prime Minister Nikol Pashinyan made a strong public statement categorically rejecting the circulating information that the authorities used spyware against opponents and/or journalists," it said in a statement.
Pashinyan and family members had also received messages warning that their devices may have been compromised, it added.
The Armenian government has in the past been implicated in the deployment of phone hacking software, including in a report published last year by Alphabet's GOOGL.O Google.
While that report pointed to a different spyware, known as Predator, several Pegasus victims in Armenia said they feared their own government was behind the recent surveillance.
Reuters interviewed three other alleged victims identified by the researchers - Ruben Melikyan, a lawyer and human rights activist; Varuzhan Geghamyan, an academic and expert on Armenian-Azeri relations; and Astghik Bedevyan, one of two journalists with the U.S. government-funded Radio Free Europe/Radio Liberty (RFE/RL).
RFE/RL executive Patrick Boehler said hacking journalists' phones was "truly terrifying and appalling".
"If we cannot protect our sources, it has consequences for the depth and breadth of our journalism," he said.
They all said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. They later discovered traces of Pegasus on their devices through forensic analyses.
"It's an uncomfortable feeling when you are being spied on," Geghamyan said.
"Psychologically it's devastating," said Farmanyan.
(Reporting by Raphael Satter and James Pearson in London; editing by Bill Berkrot and Mark Heinrich)
((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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They all said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. Pegasus is one of many advanced espionage tools that affords hackers sweeping access to their targets' smartphones, allowing them to record calls, intercept messages and even transform the phones into portable listening devices. The researchers said they believed neighboring Azerbaijan, which has fought several wars with Armenia over the disputed chunk of territory known as Nagorno-Karabakh or Artsakh, was likely responsible for the hacking activity.
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They all said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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They all said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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They all said Apple Inc AAPL.O had sent them warnings in 2021 that their iPhones were at risk from spyware. By Raphael Satter and James Pearson LONDON, May 25 (Reuters) - Researchers have discovered Israeli-made Pegasus phone hacking software deployed against targets across Armenia, including reporters at a U.S. government-funded news organization, a report released on Thursday found. A team of researchers from digital rights group Access Now, human rights organization Amnesty International, Canadian internet watchdog Citizen Lab, Armenian digital defense group CyberHUB-AM and independent researcher Ruben Muradyan, said they had confirmed at least 12 cases in which espionage software made by Israel's NSO Group had been used against Armenian officials, journalists and organizers.
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15676.0
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2023-05-25 00:00:00 UTC
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3 Top AI Stocks That Pay Dividends -- and 1 Yields Over 5%
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AAPL
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https://www.nasdaq.com/articles/3-top-ai-stocks-that-pay-dividends-and-1-yields-over-5
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nan
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nan
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Income investors can find their portfolios loaded with boring companies. That's not a bad thing, though. Boring companies often provide the most reliable dividends.
However, it's possible to receive income and invest in one of the most exciting opportunities on the planet -- artificial intelligence (AI). Here are three top AI stocks that pay dividends.
1. IBM
IBM (NYSE: IBM) has been a favorite for income investors for years, and it still is. The tech giant offers a dividend yield of nearly 5.2%. IBM has paid a dividend in every quarter since 1916 and increased its dividend for 28 consecutive years.
Sure, IBM hasn't been at the center of attention with the recent surge in interest in AI. However, the company has been an AI pioneer for a long time. For example, its Watson technology made headlines in 2011 by beating Jeopardy! champions Brad Rutter and Ken Jennings.
But is IBM still a contender in AI? Yep. IBM remains an industry leader in the number of AI patents held. Gartner's Magic Quadrant ranks the company as a leader in conversational AI. IBM Watson is now being used across of wide range of industries.
2. Microsoft
Unlike IBM, Microsoft (NASDAQ: MSFT) has been at the forefront of the AI world this year. The company has invested billions of dollars in OpenAI, the maker of ChatGPT. Microsoft has also integrated OpenAI's generative AI technology into its products, including its Bing search engine.
These AI efforts have caught investors' attention. Microsoft stock is up more than 30% year to date, largely as a result of its AI-related moves. CEO Satya Nadella proclaimed in Microsoft's recent quarterly conference call that the company is "going to lead in the AI era."
While Microsoft is well-known these days for its AI leadership, it's easy to forget that the company offers a dividend, but its yield of under 0.9% isn't anything to get excited about. However, Microsoft has increased its dividend for 13 consecutive years. It's also in a strong financial position to keep that streak going.
3. Apple
Apple (NASDAQ: AAPL) reigns as the largest company in the world, based on market cap. But the huge technology company doesn't get much attention these days for its AI expertise or its dividend.
The company's Siri virtual assistant is still one of the most widely used AI tools, although it seems dated after the introduction of ChatGPT. Apple CEO Tim Cook recently stated that the company "view[s] AI as huge."
He added that Apple plans to "continue weaving it in our products on a very thoughtful basis." Recent staff recruiting by the company indicates that it's accelerating its efforts in multiple areas of AI development.
Apple's dividend is the lowest of these three AI stocks, with a yield of under 0.6%. But the company has increased its dividend every year since initiating the program in 2012. Apple also has plenty of financial flexibility to continue boosting its dividend payout in the future.
Are they buys?
My view is that all three of these AI dividend stocks are solid picks, depending on your investing style. Income investors will probably like IBM the most since it pays the most attractive dividend. Growth investors will be more interested in Apple and Microsoft, both of which should be able to capitalize on the AI boom in the coming years.
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Keith Speights has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) reigns as the largest company in the world, based on market cap. Microsoft has also integrated OpenAI's generative AI technology into its products, including its Bing search engine. CEO Satya Nadella proclaimed in Microsoft's recent quarterly conference call that the company is "going to lead in the AI era."
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Apple Apple (NASDAQ: AAPL) reigns as the largest company in the world, based on market cap. But the huge technology company doesn't get much attention these days for its AI expertise or its dividend. The Motley Fool has positions in and recommends Apple and Microsoft.
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Apple Apple (NASDAQ: AAPL) reigns as the largest company in the world, based on market cap. Microsoft Unlike IBM, Microsoft (NASDAQ: MSFT) has been at the forefront of the AI world this year. While Microsoft is well-known these days for its AI leadership, it's easy to forget that the company offers a dividend, but its yield of under 0.9% isn't anything to get excited about.
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Apple Apple (NASDAQ: AAPL) reigns as the largest company in the world, based on market cap. IBM (NYSE: IBM) has been a favorite for income investors for years, and it still is. Apple CEO Tim Cook recently stated that the company "view[s] AI as huge."
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2023-05-25 00:00:00 UTC
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Can PayPal Compete With Apple Pay?
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AAPL
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https://www.nasdaq.com/articles/can-paypal-compete-with-apple-pay
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Apple (NASDAQ: AAPL), with its deep pockets and innovative technology, is a threat any time it expands into a new market. PayPal (NASDAQ: PYPL) investors are right to be concerned about the new giant encroaching on its space.
*Stock prices used were the afternoon prices of May 22, 2023. The video was published on May 24, 2023.
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*Stock Advisor returns as of May 22, 2023
Parkev Tatevosian, CFA has positions in Apple and PayPal. The Motley Fool has positions in and recommends Apple and PayPal. The Motley Fool recommends the following options: short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), with its deep pockets and innovative technology, is a threat any time it expands into a new market. PayPal (NASDAQ: PYPL) investors are right to be concerned about the new giant encroaching on its space. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL), with its deep pockets and innovative technology, is a threat any time it expands into a new market. 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 22, 2023 Parkev Tatevosian, CFA has positions in Apple and PayPal.
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Apple (NASDAQ: AAPL), with its deep pockets and innovative technology, is a threat any time it expands into a new market. 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 22, 2023 Parkev Tatevosian, CFA has positions in Apple and PayPal.
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Apple (NASDAQ: AAPL), with its deep pockets and innovative technology, is a threat any time it expands into a new market. See the 10 stocks *Stock Advisor returns as of May 22, 2023 Parkev Tatevosian, CFA has positions in Apple and PayPal. The Motley Fool has positions in and recommends Apple and PayPal.
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15678.0
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2023-05-25 00:00:00 UTC
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1 Green Flag for Broadcom in 2023, and 1 Red Flag
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https://www.nasdaq.com/articles/1-green-flag-for-broadcom-in-2023-and-1-red-flag
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Broadcom's (NASDAQ: AVGO) stock is up about 30% over the past 12 months, bucking the broader slowdown in the semiconductor market. It outperformed most of its peers because its deep diversification across the data center, networking, wireless, storage, and industrial chip markets insulated it from the post-pandemic slowdown of the PC and smartphone markets. It also diversified its business away from semiconductors with the expansion of its infrastructure software business.
Between fiscal 2017 and fiscal 2022 (which ended last October), Broadcom's revenue had a compound annual growth rate (CAGR) of 13%, while its adjusted EPS rose at a CAGR of 19%. Analysts expect its revenue and adjusted EPS to rise 7% and 10%, respectively, this year, even as the macroeconomic headwinds rattle the broader markets.
Image source: Getty Images.
Its stock looks cheap at 16 times forward earnings, and it pays a respectable forward yield of 2.7%. All those facts and figures suggest Broadcom is still worth buying at these levels. But investors should take note of two recent events -- which can be considered as a green flag and a red flag for its future -- before pressing the "sell" button.
The green flag: A new multibillion-dollar deal with Apple
Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Back in 2020, Apple and Broadcom galvanized that long-term relationship with exclusive contracts that would pay the chipmaker approximately $15 billion in revenue through 2023.
However, several reports from earlier this year suggested Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. Those rumors cast dark clouds over Broadcom's future since the company relied on Apple for 20% of revenue in fiscal 2022.
But some of those clouds recently parted when Apple announced that it had inked a new multibillion-dollar agreement to purchase Broadcom's 5G radio frequency components and other wireless connectivity parts from Broadcom over the next few years.
Apple didn't specify the exact value or length of the deal (or if it includes its Wi-Fi and Bluetooth combo chips), but it allays some bearish concerns that Apple could unexpectedly replace all of Broadcom's chips with its own first-party silicon.
The red flag: The VMware deal is still stuck in the mud
To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. In 2022, it agreed to buy the cloud software giant VMware (NYSE: VMW) for $61 billion.
That takeover would enable Broadcom to generate about half of its revenue from infrastructure software, compared to just 29% of its revenue in fiscal 2022. But that deal still faces intense regulatory scrutiny in the U.S., the U.K., and Europe.
In March, the U.K. Competition and Markets Authority launched an investigation into the deal that will last through September. In April, the European Commission (EC) sent Broadcom a "statement of objections" to the deal, saying that it could restrict competition in certain product categories. The EC also recently extended its deadline for making a final call on that deal from June 21 to July 17.
In the United States, the Federal Trade Commission has reportedly been trying to garner enough third-party support to launch a full-blown antitrust lawsuit against Broadcom. In other words, Broadcom's planned takeover of VMware could remain in limbo for a very long time.
Which of these flags should be flown higher?
Broadcom's VMware deal faces a lot of regulatory hurdles, but that isn't all that surprising given the size of the deal. Meanwhile, Apple's big deal with Broadcom is more interesting and newsworthy -- especially since investors had been bracing for a sudden divorce between the two companies. Therefore, I believe that the green flag should fly a lot higher than the red flag.
10 stocks we like better than Broadcom
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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 22, 2023
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple. 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 green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Analysts expect its revenue and adjusted EPS to rise 7% and 10%, respectively, this year, even as the macroeconomic headwinds rattle the broader markets. The red flag: The VMware deal is still stuck in the mud To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019.
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The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. However, several reports from earlier this year suggested Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. Broadcom's VMware deal faces a lot of regulatory hurdles, but that isn't all that surprising given the size of the deal.
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The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Apple didn't specify the exact value or length of the deal (or if it includes its Wi-Fi and Bluetooth combo chips), but it allays some bearish concerns that Apple could unexpectedly replace all of Broadcom's chips with its own first-party silicon. The red flag: The VMware deal is still stuck in the mud To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019.
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The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. That's right -- they think these 10 stocks are even better buys. The Motley Fool recommends Broadcom and VMware.
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2023-05-25 00:00:00 UTC
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TikTok testing AI chatbot called 'Tako', research firm says
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https://www.nasdaq.com/articles/tiktok-testing-ai-chatbot-called-tako-research-firm-says
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By Josh Ye
HONG KONG, May 25 (Reuters) - Social media platform TikTok is testing an artificial intelligence (AI) chatbot that can converse with users about short videos and help them discover content, an app intelligence firm said.
Israeli-based Watchful Technologies said it has found the AI chatbot dubbed "Tako" on some versions of the TikTok app on Apple Inc mobile devices.
Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on the app's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content.
Asked about Tako, a TikTok spokesperson said the social media platform was always exploring new technology.
"In select markets, we're testing new ways to power search and discovery on TikTok, and we look forward to learning from our community as we continue to create a safe place that entertains, inspires creativity, and drives culture," the spokesperson said.
The effort comes after OpenAI, backed by Microsoft Corp , late last year launched next-generation chatbot ChatGPT offering arguably the most natural interaction to date. That triggered a race in the industry to develop features based on game-changing generative AI, including TikTok rival Snap Inc whose "My AI" is powered by ChatGPT technology.
In April, U.S. media outlets reported that TikTok was experimenting with a generative AI tool to allow users to create avatars. China-based parent ByteDance is working on a large AI model, Chinese media reported, but it does not currently offer AI chatbot features on its Chinese equivalent of TikTok, Douyin.
Disclosure filed with the U.S. patent and trademark office last month showed TikTok had submitted a trademark application for "TikTok Tako" in categories including "computer software for the artificial production of human speech and text".
VIDEO RECOMMENDATIONS
Watchful researcher Daniel Buchuk said his team started to find references to Tako on some versions of the TikTok app earlier this month, including on a test version on an iOS device in the United States.
Watchful uses computer vision as well as data analysis to identify and emulate app changes. It monitors devices in different countries but was unable to establish in which markets TikTok was conducting its tests.
Unlike ChatGPT, which is positioned as an all-purpose chatbot, Tako feels more like a navigation assistant with a focus on encouraging users to watch more videos, Buchuk said.
"So if you're asking 'When was King Charles' coronation?' Tako will tell you the answer, but then you'll also see relevant TikTok videos," he said.
Another demonstration by Watchful showed that when a user asks Tako a question, such as "How can we teach respect to children", the chatbot replies by summarising tips from TikTok users while also recommending related videos.
TikTok has set a disclaimer saying Tako is an experimental chatbot and that responses could be inaccurate. It said it will review conversations with Tako for safety purposes and warned users not to share private information with it. (Reporting by Josh Ye; Editing by Brenda Goh and Christopher Cushing) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) Keywords: TIKTOK AI/ (PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"In select markets, we're testing new ways to power search and discovery on TikTok, and we look forward to learning from our community as we continue to create a safe place that entertains, inspires creativity, and drives culture," the spokesperson said. The effort comes after OpenAI, backed by Microsoft Corp , late last year launched next-generation chatbot ChatGPT offering arguably the most natural interaction to date. Unlike ChatGPT, which is positioned as an all-purpose chatbot, Tako feels more like a navigation assistant with a focus on encouraging users to watch more videos, Buchuk said.
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By Josh Ye HONG KONG, May 25 (Reuters) - Social media platform TikTok is testing an artificial intelligence (AI) chatbot that can converse with users about short videos and help them discover content, an app intelligence firm said. Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on the app's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content. Disclosure filed with the U.S. patent and trademark office last month showed TikTok had submitted a trademark application for "TikTok Tako" in categories including "computer software for the artificial production of human speech and text".
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By Josh Ye HONG KONG, May 25 (Reuters) - Social media platform TikTok is testing an artificial intelligence (AI) chatbot that can converse with users about short videos and help them discover content, an app intelligence firm said. Israeli-based Watchful Technologies said it has found the AI chatbot dubbed "Tako" on some versions of the TikTok app on Apple Inc mobile devices. Another demonstration by Watchful showed that when a user asks Tako a question, such as "How can we teach respect to children", the chatbot replies by summarising tips from TikTok users while also recommending related videos.
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Israeli-based Watchful Technologies said it has found the AI chatbot dubbed "Tako" on some versions of the TikTok app on Apple Inc mobile devices. Screenshots and video Watchful shared with Reuters showed the chatbot featuring prominently on the app's interface as a ghost-shaped icon, which users can tap while watching videos to have text-based conversations and get help finding content. That triggered a race in the industry to develop features based on game-changing generative AI, including TikTok rival Snap Inc whose "My AI" is powered by ChatGPT technology.
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15680.0
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2023-05-24 00:00:00 UTC
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7 Stocks That Could Be the First $10 Trillion-Dollar Company
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https://www.nasdaq.com/articles/7-stocks-that-could-be-the-first-%2410-trillion-dollar-company
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s begin by understanding that most of the future $10 trillion companies are those that already have the highest valuations. Even the youngest among these companies have existed for 20 years. The point is that companies valued in the hundreds of billions and trillions take a long time to build: They, therefore, have the best chance of reaching the unthinkable $10 trillion mark first.
To provide further context, no firm is currently valued at $5 trillion. Expectations are that the threshold will be reached in 2028. It seems that it could take decades for a company to reach a valuation twice that level. In truth, it could be a company that bursts onto the scene from relative obscurity. Some now-unknown AI companies could certainly fit the mold. But no one knows.
MSFT Microsoft $313.85
GOOG GOOGL Alphabet $121.64
AAPL Apple $171.84
META Meta Platforms $249.21
NVDA Nvidia $305.38
AMZN Amazon $116.75
TSLA Tesla $182.90
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) stock is the second highest-valued equity globally, at $2.35 trillion. It was actually worth $230 billion more at the height of the pandemic tech bubble before losing ground as rate hikes did their work. It’s another one of the future $10 trillion companies. One thing that is noteworthy about Microsoft’s market cap is just how rapidly it has grown of late. Just before the onset of the pandemic, the total value of all outstanding MSFT stock was approximately $1.3 trillion. So it has gained about $1 trillion in value since.
That is primarily attributable to the fact that the pandemic put tech on steroids. Money was flowing into these companies at an extraordinary pace that no one could have anticipated. While the pandemic was a massive disaster, it was a boon for tech as everyone was forced inside. Companies like Microsoft were gifted accelerated sales and quantities of data that they couldn’t have otherwise. That acceleration of everything explains how Microsoft has grown so quickly. And now it has AI setting it up for its next growth phase.
Alphabet (GOOG,GOOGL)
Source: IgorGolovniov / Shutterstock.com
The story of Alphabet’s (NASDAQ:GOOG,GOOGL) stock and its valuation follows a very similar arc to Microsoft’s. The same overarching catalysts apply to Alphabet and the benefits are similar too. Both companies have become much stronger as a result of the pandemic. It’s another one of the future $10 trillion companies. The difference is basically scale. Alphabet gained roughly $500 billion in value and is now valued near $1.6 trillion. The company has suffered in different ways over the past year. Mainly, Google has seen a massive slide as search revenues have declined on persistent economic fears. Companies are spending less on advertising.
Yet it’s very much worth noting that Google must have collected a massively higher amount of data throughout the pandemic due to the search spike. That will be a huge tailwind for a long time to come. Consider also that the company recently released its AI offerings. It is just getting started on its march to $5 trillion and AI could conceivably accelerate that goal much like the pandemic accelerated Alphabet recently.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) is expected to be the first stock to reach $5 trillion in value. It briefly touched the $3 trillion mark at the apex of the tech boom during the pandemic and was the first to reach that threshold. Now it is worth around $2.75 trillion, roughly doubling since the beginning of the pandemic. Again, the same story: People stuck at home in front of screens was a shot in the arm for Apple.
Current expectations are that Apple will again double in value by 2028 when it is anticipated to cross $5 trillion. Apple reach $1 trillion in 2018 by the way. So if those predictions are accurate it will have multiplied by 10X in value over 10 years. Not too bad. Down the road, it could be one of the future $10 trillion companies.
We know that Apple relies on iPhone sales for the majority of its revenues. Those sales remained somewhat threatened by an economic slowdown in the short term. But Apple’s long-rumored iCar, or Project Titan, could accelerate its growth beyond current expectations.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Some of the shine may have rubbed off of Meta Platforms (NASDAQ:META) stock over the pandemic, sure. The Metaverse-focused rebrand has not been a success. In fact, it seems pretty crazy in hindsight. How could a company with access to resources and some of the brightest minds there are, have missed the mark so badly?
I don’t have the answer but I’m still astounded that as inflation rapidly increased to historic levels during the summer of 2021 that the Meta rebrand plowed forward.
Surely the company has a team of economic advisors watching the market as it relates to its prospects. Surely, too, they could see rate hikes coming. That would have meant speculative growth businesses like the metaverse would dry up as credit tightened and speculative lending slowed. Anyway, I digress. It happened and Meta Platforms fell much faster than the other tech giants as a result. Yet, it remains an advertising giant that reached $1 trillion in the pandemic. It can certainly rebound and become better than it ever was.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) is the gaming and computer graphics giant that seems to be unstoppable. NVDA stock has been going through a growth spurt since 2016 that is matched by few firms ever. It has only had two down years during that span and has more than doubled in five of six of those positive years. During the sole year it didn’t double, it appreciated by 77%.
Nvidia has become one of the clearest companies benefiting from the emergence of AI. Now that AI has become available through OpenAI and Google there’s been an upsurge in interest. The markets realize how great the opportunity is.
Nvidia has been dominating the AI chip market for several years. So it makes sense then that investor capital is again flowing into NVDA shares. The cynic will say that Nvidia’s AI opportunity simply leads to better graphics. The reality is much greater and Nvidia has pricing power on its side.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) remains the largest eCommerce and retail stock by a wide margin. At $1.2 trillion, it’s worth more than double the next retailer, LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY).
It’s also the 5th most valuable company globally which is why it’s likely to someday reach $10 trillion. Yet, the E-commerce world is much bigger than the U.S. market Amazon dominates with 40% of the market. Annual online sales in the U.S. are valued at $843 billion annually. In China, the world’s largest eCommerce market, that number stands at $2.78 trillion annually.
The greater differentiator is that in China eCommerce accounts for 52% of retail sales. In the U.S. that number is 19%. That suggests that for Amazon to continue to grow it has to increase digital penetration. That and expand internationally. There’s no reason to believe it’s impossible and Amazon is far more valuable than Alibaba (NYSE:BABA) which is the largest Chinese eCommerce firm.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
Tesla’s (NASDAQ:TSLA) stock has some really amazing growth history backing its shares. Since going public in 2010 it suffered its first down year in 2022. It is up in 2023. 2020 saw its value increase by nearly 800%. In 2013 it increased by nearly 400%. It has ballooned from $2.5 billion in value to $570 billion in that period. That’s 235X growth. It’ll need to roughly 20X if it’s ever to reach $10 trillion.
Current estimates as to when Tesla could cross the $5 trillion mark vary wildly. One expects that could realistically happen in 2066 while Cathie Wood predicted Tesla will be there 40 years earlier, in 2026. The truth is more likely somewhere in between. Wood is a known tech bull who has been very incorrect recently in judging the market’s direction. Tesla has already eclipsed the $1 trillion mark back in 2021 when shares peaked above $400. If Tesla can ramp up volume production and gain significant market share in the near future, $2 trillion might not be that far away.
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 Stocks That Could Be the First $10 Trillion-Dollar Company 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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MSFT Microsoft $313.85 GOOG GOOGL Alphabet $121.64 AAPL Apple $171.84 META Meta Platforms $249.21 NVDA Nvidia $305.38 AMZN Amazon $116.75 TSLA Tesla $182.90 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is the second highest-valued equity globally, at $2.35 trillion. Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is expected to be the first stock to reach $5 trillion in value. Yet it’s very much worth noting that Google must have collected a massively higher amount of data throughout the pandemic due to the search spike.
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MSFT Microsoft $313.85 GOOG GOOGL Alphabet $121.64 AAPL Apple $171.84 META Meta Platforms $249.21 NVDA Nvidia $305.38 AMZN Amazon $116.75 TSLA Tesla $182.90 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is the second highest-valued equity globally, at $2.35 trillion. Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is expected to be the first stock to reach $5 trillion in value. Alphabet (GOOG,GOOGL) Source: IgorGolovniov / Shutterstock.com The story of Alphabet’s (NASDAQ:GOOG,GOOGL) stock and its valuation follows a very similar arc to Microsoft’s.
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MSFT Microsoft $313.85 GOOG GOOGL Alphabet $121.64 AAPL Apple $171.84 META Meta Platforms $249.21 NVDA Nvidia $305.38 AMZN Amazon $116.75 TSLA Tesla $182.90 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is the second highest-valued equity globally, at $2.35 trillion. Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is expected to be the first stock to reach $5 trillion in value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Let’s begin by understanding that most of the future $10 trillion companies are those that already have the highest valuations.
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MSFT Microsoft $313.85 GOOG GOOGL Alphabet $121.64 AAPL Apple $171.84 META Meta Platforms $249.21 NVDA Nvidia $305.38 AMZN Amazon $116.75 TSLA Tesla $182.90 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is the second highest-valued equity globally, at $2.35 trillion. Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is expected to be the first stock to reach $5 trillion in value. The point is that companies valued in the hundreds of billions and trillions take a long time to build: They, therefore, have the best chance of reaching the unthinkable $10 trillion mark first.
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15681.0
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2023-05-24 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $11,984.30K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%2411984.30k
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nan
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nan
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On May 24, 2023 at 11:12:37 ET an unusually large $11,984.30K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 240 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 6.45 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6369 funds or institutions reporting positions in Apple. This is a decrease of 9 owner(s) or 0.14% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.66%, an increase of 13.62%. Total shares owned by institutions decreased in the last three months by 2.42% to 9,921,364K shares.
The put/call ratio of AAPL is 0.94, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 6.10% 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 6.10% from its latest reported closing price of 171.56.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 459,387K shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 455,109K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AAPL by 12.36% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 345,686K shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 342,454K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AAPL by 12.57% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On May 24, 2023 at 11:12:37 ET an unusually large $11,984.30K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 240 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 6.45 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.66%, an increase of 13.62%.
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On May 24, 2023 at 11:12:37 ET an unusually large $11,984.30K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 240 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 6.45 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.66%, an increase of 13.62%.
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On May 24, 2023 at 11:12:37 ET an unusually large $11,984.30K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 240 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 6.45 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.66%, an increase of 13.62%.
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On May 24, 2023 at 11:12:37 ET an unusually large $11,984.30K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 240 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 6.45 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.66%, an increase of 13.62%.
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15682.0
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2023-05-24 00:00:00 UTC
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Should Apple (AAPL) Buy Roblox (RBLX) as Metaverse M&A Takes Off?
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AAPL
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https://www.nasdaq.com/articles/should-apple-aapl-buy-roblox-rblx-as-metaverse-ma-takes-off
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nan
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nan
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S
hould Apple (AAPL) partner or buy Roblox (RBLX), the fast-growing online gaming platform, to integrate it with its upcoming XR virtual reality (VR) headset as the metaverse gains traction?
“Apple would be smart to buy Roblox,” said Metaverse expert Wagner James Au, noting that absorbing the firm, which has 66 million users, could help the iPhone maker scale in the metaverse where Meta (META) continues to grow as part of its new raison d'être. “Most Roblox users are on Android phones, so it would make sense for Apple to integrate the platform to boost engagement and monetization opportunities for its future iPhones, or Macs. With thousands of games, Roblox could also provide a content treasure trove for the XR.”
Apple has announced a “special event” June 5, which metaverse fans expect will herald the launch of the much-awaited goggles. At $3,000 a pop, they are expected to offer a combination of augmented and VR experiences for Apple product enthusiasts. While Apple has been quiet on the launch, analysts expect it will introduce XR as a metaverse experiment that if successful, will be deployed into the mass market.
Struggling technology
The potential tie-ups come as the metaverse is struggling to find its feet. Essentially, the technology enables people to interact in highly immersive, 3D worlds through avatars or virtual versions of themselves. Metaverse platforms became hugely popular in Covid-19’s aftermath when a slew of start-ups launched celebrity-inspired real-estate properties on Roblox but also on crypto networks such as Decentraland and Sandbox. Rapper Snoop Dog, socialite Paris Hilton and others joined the party, sending digital real-estate property prices into the stratosphere.
Firms including Gucci, Nike and Warner Music also bought land to bolster profits through advertising, marketing, socializing and entertaining strategies. The industry crashed with last year’s tech and crypto meltdown, sending valuations into a tailspin and leaving gaming as its main use case. Amid this trend, VanEck’s Product Manager JP Lee agreed bagging Roblox would add value for Apple, which already rakes in huge fees by offering it on its App store.
“It would make a lot of sense,” he said. “Apple has a ton of users so offering Roblox to them could help enhance their customer experience.” Lee noted Microsoft (MSFT), Amazon (AMZN) and other tech majors could also eye Roblox or other Metaverse plays to “buy into the space versus having to develop their offers from scratch.”
Strong Growth
Roblox’s fast growth makes it an appealing takeover target. For the first quarter of 2023, average daily active users or DAUs soared 22% to 66 million while engagement hours totaled 14.5 billion, up 23% from a year ago and marking a record high for the firm, which stock has soared 34% this year.
“They started as mainly a kids platform but have become more sophisticated with powerful tools and a cross-gaming capabilities (meaning people can play on mobile and PCs) that’s helping them win new users,” said James Au, whose recent book, Making a Metaverse That Matters: From Snow Crash & Second Life to A Virtual World Worth Fighting For, dispels some of the myths surrounding the technology.
Roblox operates the Frontlines game, which experts say has highly customizable avatars and accessories that have won the hearts of gamers, who can also play on external platforms such as Nintendo or Xbox. This advantage sets it apart from Meta’s Horizon Worlds network which does not have cross-gaming or external platform functionalities. Roblox is also free to play while Horizons World requires users plug into a Quest 2 headset at a heavy price tag, according to James Au.
To be fair, Meta plans to launch a Horizon World’s mobile, tablet and PC version in coming months, as well as to improve avatars that have reportedly kept users on the fringes. It also continues to reassure investors that its metaverse vision remains on track. Last week, executives said augmented and virtual reality will have a “transformative” role in job training and education and insisted generative AI, behind the ChatGPT phenomenon, can coexist, not spell death, with the metaverse.
Microsoft’s new targets?
Meanwhile, analysts said Microsoft, which was recently dealt a blow after regulators blocked its $69 billion acquisition of video game maker Activision Blizzard (ATVI), could acquire privately-held VR Chat or Rec Room, two social media and gaming platforms that are popular on its Xbox network.
“VR Chat could be a juicy target for Microsoft,” said one analyst requesting anonymity, “VR Chat is integrated with Xbox and has a very large user community.”
Other tie-ups could see Roblox or Epic Games’ other hugely popular Fortnite game, swallowing the failed crypto start-ups to integrate their non-fungible token (NFT) monetization tokens, added Lee. “If Fortnight turns to NFTs, that could go a long way into metaverse adoption versus some start-up crypto native firm that will have a hard time bringing in gamers,” Lee said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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hould Apple (AAPL) partner or buy Roblox (RBLX), the fast-growing online gaming platform, to integrate it with its upcoming XR virtual reality (VR) headset as the metaverse gains traction? With thousands of games, Roblox could also provide a content treasure trove for the XR.” Apple has announced a “special event” June 5, which metaverse fans expect will herald the launch of the much-awaited goggles. “They started as mainly a kids platform but have become more sophisticated with powerful tools and a cross-gaming capabilities (meaning people can play on mobile and PCs) that’s helping them win new users,” said James Au, whose recent book, Making a Metaverse That Matters: From Snow Crash & Second Life to A Virtual World Worth Fighting For, dispels some of the myths surrounding the technology.
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hould Apple (AAPL) partner or buy Roblox (RBLX), the fast-growing online gaming platform, to integrate it with its upcoming XR virtual reality (VR) headset as the metaverse gains traction? “Apple would be smart to buy Roblox,” said Metaverse expert Wagner James Au, noting that absorbing the firm, which has 66 million users, could help the iPhone maker scale in the metaverse where Meta (META) continues to grow as part of its new raison d'être. “VR Chat could be a juicy target for Microsoft,” said one analyst requesting anonymity, “VR Chat is integrated with Xbox and has a very large user community.” Other tie-ups could see Roblox or Epic Games’ other hugely popular Fortnite game, swallowing the failed crypto start-ups to integrate their non-fungible token (NFT) monetization tokens, added Lee.
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hould Apple (AAPL) partner or buy Roblox (RBLX), the fast-growing online gaming platform, to integrate it with its upcoming XR virtual reality (VR) headset as the metaverse gains traction? “Apple would be smart to buy Roblox,” said Metaverse expert Wagner James Au, noting that absorbing the firm, which has 66 million users, could help the iPhone maker scale in the metaverse where Meta (META) continues to grow as part of its new raison d'être. “Apple has a ton of users so offering Roblox to them could help enhance their customer experience.” Lee noted Microsoft (MSFT), Amazon (AMZN) and other tech majors could also eye Roblox or other Metaverse plays to “buy into the space versus having to develop their offers from scratch.” Strong Growth Roblox’s fast growth makes it an appealing takeover target.
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hould Apple (AAPL) partner or buy Roblox (RBLX), the fast-growing online gaming platform, to integrate it with its upcoming XR virtual reality (VR) headset as the metaverse gains traction? Essentially, the technology enables people to interact in highly immersive, 3D worlds through avatars or virtual versions of themselves. This advantage sets it apart from Meta’s Horizon Worlds network which does not have cross-gaming or external platform functionalities.
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15683.0
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2023-05-24 00:00:00 UTC
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New Banks Look to Shift the Paradigm
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AAPL
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https://www.nasdaq.com/articles/new-banks-look-to-shift-the-paradigm
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nan
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nan
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W
hile much of the financial world is focused on the troubles of the banking industry of late, not all the news is worrisome for consumers.
Fintech, which for so long sat on the outer realm of finance, is beginning to make its push toward the mainstream—and some of the biggest names in industry are signing up to assist.
Apple (AAPL), last month, launched a high-yield savings account, paying an annual percentage yield of 4.15%, while charging no fees, requiring no minimum balance and having no minimum deposit requirements.
Consumers were drawn to that APY, which is well over 10 times higher than the national average (which stands at 0.25%, according to Bankrate.com). In its first four days, Apple’s savings account drew nearly $1 billion in deposits (and with 2 billion iPhone owners, the untapped market is still large).
Apple partnered with Goldman Sachs for the savings option. It’s part of an ongoing drive to nudge iPhone users to view their smartphone as a mobile wallet. Goldman, however, offers consumers a high-interest savings option of its own. Marcus, with $100 billion in deposits, also offers its users a 4.15% APY, with promotions moving that as high as 5.15% for some customers.
There’s something of an arms race among these savings accounts, which are virtually all online only. As fintech operations look to establish a foothold in the financial sector, they’re regularly one-upping each other. Step, a digital bank that’s geared toward young adults, currently pays an APY of 5%, for instance. That fintech has more than 4 million account holders.
The surge in high-APY accounts comes as consumers are looking for some stability amid Wall Street’s volatility of late and overhanging fears of an imminent recession. Aggressive APY rate increases have been made easier by the Federal Reserve’s string of policy hikes this year, but when the Fed finally begins to taper off of that it could be a test of consumer loyalty to these institutions.
In the short term, though, there’s a lot for consumers to gain. Let’s say you have $20,000, for example – and don’t plan on adding to that amount. Having it sit in a traditional savings account will earn you up to $40 in interest over the course of the year (with that amount being slightly higher or lower, based on where you bank). That same deposit in a 4.15% account will earn $830 in 12 months.
And if that rate were to remain consistent for 10 years (again, something that’s neither guaranteed nor likely), you’d see total interest of more than $10,000, versus less than $450 at the national average.
The risk is minimal, if you do your homework. Most of the new banking accounts, including Apple’s, are protected up to $250,000 by the FDIC, thanks to partnerships with existing banks. But it’s critical for consumers to verify whichever high-yield savings account they opt to try is covered by that safeguard.
The drawback, though, is similar to the stock market: volatility. Yields shift regularly with the Fed. And as that body begins to lower rates, which is a very real possibility in the next year, the fintechs will lower their rates as well.
Also, while 4% is certainly better than a quarter-of-a-percent, that’s still notably below last year’s overall inflation rate of 6.5%, so ultimately it won’t provide as much shelter from rising prices as you might hope.
The views and 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), last month, launched a high-yield savings account, paying an annual percentage yield of 4.15%, while charging no fees, requiring no minimum balance and having no minimum deposit requirements. Fintech, which for so long sat on the outer realm of finance, is beginning to make its push toward the mainstream—and some of the biggest names in industry are signing up to assist. The surge in high-APY accounts comes as consumers are looking for some stability amid Wall Street’s volatility of late and overhanging fears of an imminent recession.
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Apple (AAPL), last month, launched a high-yield savings account, paying an annual percentage yield of 4.15%, while charging no fees, requiring no minimum balance and having no minimum deposit requirements. In its first four days, Apple’s savings account drew nearly $1 billion in deposits (and with 2 billion iPhone owners, the untapped market is still large). Goldman, however, offers consumers a high-interest savings option of its own.
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Apple (AAPL), last month, launched a high-yield savings account, paying an annual percentage yield of 4.15%, while charging no fees, requiring no minimum balance and having no minimum deposit requirements. In its first four days, Apple’s savings account drew nearly $1 billion in deposits (and with 2 billion iPhone owners, the untapped market is still large). Having it sit in a traditional savings account will earn you up to $40 in interest over the course of the year (with that amount being slightly higher or lower, based on where you bank).
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Apple (AAPL), last month, launched a high-yield savings account, paying an annual percentage yield of 4.15%, while charging no fees, requiring no minimum balance and having no minimum deposit requirements. Having it sit in a traditional savings account will earn you up to $40 in interest over the course of the year (with that amount being slightly higher or lower, based on where you bank). Most of the new banking accounts, including Apple’s, are protected up to $250,000 by the FDIC, thanks to partnerships with existing banks.
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15684.0
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2023-05-24 00:00:00 UTC
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Amazon (AMZN) Strengthens Tablet Offerings With Fire Max 11
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AAPL
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https://www.nasdaq.com/articles/amazon-amzn-strengthens-tablet-offerings-with-fire-max-11
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nan
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nan
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Amazon AMZN rolled out an advanced tablet, namely Fire Max 11, in a bid to strengthen its tablet offerings.
The tablet, priced at $229.99, features an 11-inch display, a slim aluminum design, a fast octa-core processor with 4GB of RAM, and up to 128GB of storage. It also comes with Wi-Fi 6 connectivity and 8MP cameras.
The tablet is designed to deliver a great entertainment experience by allowing users to stream videos on Prime Video, Disney+, Netflix, Hulu, or Max and enjoy 14 hours of battery life.
Additionally, the tablet boasts Fingerprint Recognition technology for easy unlocking. Also, it offers an enhanced Alexa experience and allows users to manage smart home devices using the inbuilt smart home controls.
Further, the device comes with some optional accessories, including a magnetic keyboard and stylus.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Competitive Scenario
The latest launch of Amazon positions it well to capitalize on the growth prospects in the booming tablet market.
Per a report from The Business Research Company, the global tablet market is expected to reach $147.38 billion by 2027 at a CAGR of 11.6%.
A report from Allied Market Research suggests that the tablet PC market is expected to reach $325.15 billion by 2031, exhibiting a CAGR of 16.7% from 2022 to 2031.
Amazon, which carries a Zacks Rank #3 (Hold) at present, is likely to strengthen its competitive position against contenders like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL on the back of its expanding tablet offerings.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Given the upbeat scenario, the abovementioned peers are also leaving no stone unturned to bolster their presence in the tablet market.
Search giant Google announced its first self-branded tablet, Google Pixel Tablet. Powered by a Tensor G2 chipset, it has an 11-inch LCD panel display and comes with a wireless charging dock/speaker combo. It is priced at $499.
Meanwhile, Lenovo has a strong tablet portfolio, including Lenovo Tab P11 (2nd Gen), Lenovo Tab P11 Pro (2nd Gen), Lenovo Xiaoxin Pad Pro 2022 and more. The company’s latest launch, Lenovo Tab P11 Pro Gen 2, comes with an 11.2-inch OLED display with HDR 10+ and is powered by MediaTek Kompanio 1300T octa-core chipset. The device comes with a massive 8000mAh battery size.
Apple remains a notable player in the tablet market on the back of its strong iPad offerings. Apple offers varieties of iPad of different sizes and specifications. Some of its latest offerings include iPad Pro 6th Gen, iPad Air 5th Gen and iPad Mini 6th Gen. The iPad Pro 6th Gen, starting at $1,099 is the most premium iPad with Apple’s M2 chipset, which is considered to be the fastest and the strongest in the world. The iPad mini, starting at $499, is a smaller-sized tablet with an 8.3-inch display and is powered by Apple’s A15 Bionic chipset.
Expanding Devices Portfolio
The latest move is in sync with Amazon’s focus on expanding its smart devices portfolio.
Apart from the latest launch, Amazon recently expanded its Echo family by launching new Echo Pop, Echo Show 5, Echo Show 5 Kids and Echo Buds.
The Echo Pop is a semi-sphere-shaped device with a front-facing speaker, which allows users to listen to audiobooks, control smart lights, order household essentials and perform other tasks just by giving voice commands to Alexa.
The Echo Show 5 has a redesigned speaker system with better bass and clearer sound quality. It lets users view news clips, Ring doorbell camera clips and view shopping lists via a compact screen on it.
The Echo Show 5 Kids features a space-themed design, kid-friendly responses and free access to a suite of parental controls.
The new Echo Buds features customizable tap controls, VIP Filter and multipoint pairing.
We believe that the company’s strengthening devices offerings will continue to drive its customer base, which, in turn, will benefit its financial performance.
The Zacks Consensus Estimate for second-quarter 2023 sales is pegged at $131.51 billion, indicating growth of 8.5% from the year-ago reported figure.
Coming to the price performance, AMZN has gained 37.5% in the year-to-date period compared with the industry’s rise of 19.7%.
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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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Amazon, which carries a Zacks Rank #3 (Hold) at present, is likely to strengthen its competitive position against contenders like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL on the back of its expanding tablet offerings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote Competitive Scenario The latest launch of Amazon positions it well to capitalize on the growth prospects in the booming tablet market.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon, which carries a Zacks Rank #3 (Hold) at present, is likely to strengthen its competitive position against contenders like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL on the back of its expanding tablet offerings. Meanwhile, Lenovo has a strong tablet portfolio, including Lenovo Tab P11 (2nd Gen), Lenovo Tab P11 Pro (2nd Gen), Lenovo Xiaoxin Pad Pro 2022 and more.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon, which carries a Zacks Rank #3 (Hold) at present, is likely to strengthen its competitive position against contenders like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL on the back of its expanding tablet offerings. Meanwhile, Lenovo has a strong tablet portfolio, including Lenovo Tab P11 (2nd Gen), Lenovo Tab P11 Pro (2nd Gen), Lenovo Xiaoxin Pad Pro 2022 and more.
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Amazon, which carries a Zacks Rank #3 (Hold) at present, is likely to strengthen its competitive position against contenders like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL on the back of its expanding tablet offerings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apart from the latest launch, Amazon recently expanded its Echo family by launching new Echo Pop, Echo Show 5, Echo Show 5 Kids and Echo Buds.
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15685.0
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2023-05-24 00:00:00 UTC
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Thanks to VR, the Metaverse Is Still Destined for Greatness
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AAPL
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https://www.nasdaq.com/articles/thanks-to-vr-the-metaverse-is-still-destined-for-greatness
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “Thanks to VR, the Metaverse Is Still Destined for Greatness” was previously published in September 2022. It has since been updated to include the most relevant information available.
Amid the economic chaos of 2022, investors have all but forgotten about VR and the once-promising metaverse. Since late 2021, Google search interest in the metaverse has collapsed by over 90%. And stocks like Roblox (RBLX) and Meta (META) have been absolutely crushed.
But maybe investors shouldn’t have forgotten about the metaverse.
Maybe there’s something to building a virtual world and allowing people to create their own lives within it. Maybe there’s something to using augmented- and extended-reality tech to produce better media, create self-driving simulations, or play games.
Indeed, VR and the metaverse hold great promise.
They were just missing something in 2022.
And if that’s the case, then the “missing link” may have just arrived to the party. And we think it could reignite a Metaverse Gold Rush over the next 12 months.
Let’s take a deeper look.
The Metaverse Is Destined for Greatness
To start, let me make one thing abundantly clear. Our team has always thought that the metaverse is destined for greatness. But we never believed the metaverse “prototype” introduced to the public in 2021 was the version that would succeed.
The metaverse will be big – but it won’t be centered around people wearing headsets and living in virtual worlds. It’ll hinge upon glasses, contacts, and next-gen computer desktops that integrate VR, XR and AR technologies with the real world.
The argument for the metaverse is pretty simple.
It all boils down to one thing: Humans are natural escapists. We like reality, sure. But we also like to escape it a lot of the time.
A few decades ago, we escaped via analog platforms like books, magazines, and movies. They leveraged our imaginations to transport us to places we hadn’t seen and feel things we hadn’t felt.
Today, we escape via 2D-internet platforms, like video games, social media, and streaming shows. They do the same thing as those analog escape mechanisms – but are far more immersive.
In the future, we’ll escape via 3D-internet platforms like VR gaming, virtual bars/clubs, and immersive shows and movies. These experiences will bring an entirely new level of immersion that will massively heighten the consumer experience.
It’s the natural progression of things. 3D-internet platforms represent the next evolution of human escapism.
And our jump to those platforms isn’t a matter of “if.” It’s a matter of “when.”
Technologies Were Always Missing the Right Hardware
The “when” was never going to be 2021.
The version of the metaverse pitched to the world in 2021 was awful for a lot of reasons. Dorky avatars, corny-looking virtual worlds, awkward presentations from Mark Zuckerberg…
None of it was any good.
But chief among the reasons that 2021 version would never succeed was hardware. Put simply, clunky headsets don’t get a lot of people excited.
Remember: The internet didn’t become a ubiquity until a bold company by the name of Apple (AAPL) made a tiny, accessible, convenient, and even stylish hardware device called the iPhone that put the internet in the palms of everyone’s hands.
The point? Even the best software technologies don’t become ubiquitous until the right hardware is invented and deployed. Typically, that “right” hardware involves something unintrusive, inexpensive, accessible, and stylish. It’s something that 99% of consumers wouldn’t mind using on a daily basis.
Headsets aren’t that.
The VR Tech of the Future
But contact lenses are – which is why we’re super-enthused by the work of a tiny startup in California by the name of Mojo Vision. The company was working on AR contact lenses that compress the AR capabilities of a headset into a simple contact lens, then overlay those visuals onto the real world.
Given the tough macro environment of the past few years, Mojo Vision has decelerated work on its contact lens and pivoted to micro LED displays for their near-term market potential. We’re hopeful that when market tailwinds return in force, this company will be able to refocus on its groundbreaking contact lenses.
That’s a version of the metaverse we can get behind. Imagine playing a round of golf with friends. And after every shot, a little contact lens in your right eye displays an unobtrusive overlay of virtual information telling you the characteristics of that shot (power, distance, etc.) and then displays an updated scorecard for that game.
Source: NataliaMalc / Shutterstock
Pretty cool, right?
For Your Consideration: Virtual Desktops
There’s another startup by the name of Brelyon that has designed what we believe will be the future work desktop. Its 30″ Ultra Reality curved screen is intended to be placed on a desk in place of a standard monitor. The idea is you simply put your head into the center of this VR monitor – while sitting or standing at your desk – and plug into a virtual desktop.
According to the company, “Looking through its 30” aperture is like gazing through a window to a 122” screen 5 feet away. And with a depth profile that emulates the curvature of the human eye, it offers unparalleled eye comfort compared to flat monitors.”
I don’t know about you, but as someone with four different computer screens on his desk, this next-gen Brelyon desktop sounds like a perfect fit!
Sure, these technologies are both in their early stages. But these hardware innovations are happening right now. Not tomorrow. Not next year. They’re happening right now.
That means within the next 12 months, we expect a few of these innovations to come to the mass market. And at that point, we think the metaverse will finally start to come into its own.
The VR Gold Rush will begin – and we will be ready to profit big from it.
The Final Word on VR and the Metaverse
Listen; I don’t blame you for giving up on the metaverse. I almost did, too. The version of the metaverse peddled in 2021 by Mark Zuckerberg & Co. was a joke.
But that’s not the version of the metaverse that will succeed.
The one that will is the version that blends innovative, accessible, and unobtrusive hardware with VR and AR technologies, seamlessly integrating virtual information into the real world.
That’s the version of the metaverse I’m excited about. And it’s the one currently being built in engineering labs all across America.
So, no, now is not the time to throw in the towel on the metaverse. On the contrary, now is the time bet big on it.
Pretty much every metaverse stock out there has been crushed in the 2022 stock market selloff. From current levels, some offer generational investment opportunities.
Find out which are the best stocks to buy for $500 or less today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Thanks to VR, the Metaverse Is Still Destined for Greatness 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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Remember: The internet didn’t become a ubiquity until a bold company by the name of Apple (AAPL) made a tiny, accessible, convenient, and even stylish hardware device called the iPhone that put the internet in the palms of everyone’s hands. It’ll hinge upon glasses, contacts, and next-gen computer desktops that integrate VR, XR and AR technologies with the real world. Given the tough macro environment of the past few years, Mojo Vision has decelerated work on its contact lens and pivoted to micro LED displays for their near-term market potential.
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Remember: The internet didn’t become a ubiquity until a bold company by the name of Apple (AAPL) made a tiny, accessible, convenient, and even stylish hardware device called the iPhone that put the internet in the palms of everyone’s hands. It’ll hinge upon glasses, contacts, and next-gen computer desktops that integrate VR, XR and AR technologies with the real world. In the future, we’ll escape via 3D-internet platforms like VR gaming, virtual bars/clubs, and immersive shows and movies.
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Remember: The internet didn’t become a ubiquity until a bold company by the name of Apple (AAPL) made a tiny, accessible, convenient, and even stylish hardware device called the iPhone that put the internet in the palms of everyone’s hands. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “Thanks to VR, the Metaverse Is Still Destined for Greatness” was previously published in September 2022. The Final Word on VR and the Metaverse Listen; I don’t blame you for giving up on the metaverse.
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Remember: The internet didn’t become a ubiquity until a bold company by the name of Apple (AAPL) made a tiny, accessible, convenient, and even stylish hardware device called the iPhone that put the internet in the palms of everyone’s hands. The company was working on AR contact lenses that compress the AR capabilities of a headset into a simple contact lens, then overlay those visuals onto the real world. That’s a version of the metaverse we can get behind.
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2023-05-24 00:00:00 UTC
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Apple Close to Reclaiming $3T Market Cap: Top ETFs to Bet
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AAPL
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https://www.nasdaq.com/articles/apple-close-to-reclaiming-%243t-market-cap%3A-top-etfs-to-bet
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Apple Inc. AAPL has been soaring this year, taking the tech giant back to the brink of a historic threshold of $3 trillion market valuation reached in January 2022. The stock has risen 35% so far this year, adding nearly $690 billion in market value. If the stock climbs another 10%, it will become the first company to ever be valued at $3 trillion (read: Take a Bite of Apple With These ETFs Post Solid Q2 Earnings).
To tap Apple’s huge success, investors could consider the ETFs with the largest allocation to the tech titan. Funds such as Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
The massive gains came amid the big tech rally fueled by hype surrounding artificial intelligence (AI), easing inflation, upbeat corporate earnings, and safety play. In fact, U.S. tech stocks are enjoying their greatest outperformance, relative to the S&P 500, in 97 years, based on data from BofA Global Investment Strategy.
The rise is further supported by the bets that the Fed is nearing the end of its interest rate hiking cycle. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
In particular, investors have flocked to the iPhone maker’s steady revenue and massive cash flows. This is especially true as the tech titan reported solid second-quarter fiscal 2023 results by beating estimates on both earnings and revenues, powered by a surprise boost in iPhone sales.
Per the latest 13F filing, the legendary investor Warren Buffett continued to love Apple and said it is a better business than any other in Berkshire Hathaway Inc.'s portfolio. He revealed a $1-billion stake in Apple in May 2016 and by March 2023, boosted it to $151 billion. Now, Apple makes up about 45% of Buffett’s portfolio. "It's an incredibly valuable utility," Buffett said about the iPhone maker in a recent interview with CNBC (read: Insights Into 13F Filings: ETFs to Bet Like Billionaires).
The latest multibillion-dollar deal with Broadcom AVGO to make 5G radio frequency components and wireless chips would add more strength to the Apple stock. Currently, Apple carries a Zacks Rank #3 (Hold) and a Growth Score of B, suggesting that the iPhone maker is primed for growth. The stock falls under the top Zacks Industry Rank (in the top 27%).
Apple stock is cheap, trading at a P/E ratio of 29.08 compared with other few tech names — Amazon’s AMZN 73.46 times, Netflix’s NFLX 32.44 times and Microsoft’s MSFT 33.27 times (see: all the Technology ETFs here).
ETFs to Buy
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 64 securities in its basket, with Apple making up for a 23.3% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, and semiconductors & semiconductor equipment.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $44 billion and an average daily volume of 6 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $49 billion in its asset base and provides exposure to 364 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 23.5% share. Technology hardware storage & peripheral, systems software, semiconductors and application software are the top four sectors.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 476,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 361 technology stocks, with AUM of $6.4 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 23.4% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 194,000 shares a day (read: Tech ETFs Roaring to New 52-Week Highs).
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 19.1% of the assets.
iShares Dow Jones US Technology ETF has AUM of $11.4 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 486,000 shares a day.
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Broadcom Inc. (AVGO) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL has been soaring this year, taking the tech giant back to the brink of a historic threshold of $3 trillion market valuation reached in January 2022. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The massive gains came amid the big tech rally fueled by hype surrounding artificial intelligence (AI), easing inflation, upbeat corporate earnings, and safety play.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has been soaring this year, taking the tech giant back to the brink of a historic threshold of $3 trillion market valuation reached in January 2022. Funds such as Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has been soaring this year, taking the tech giant back to the brink of a historic threshold of $3 trillion market valuation reached in January 2022. Funds such as Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has been soaring this year, taking the tech giant back to the brink of a historic threshold of $3 trillion market valuation reached in January 2022. Funds such as Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
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2023-05-24 00:00:00 UTC
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Biden administration urges Supreme Court not to hear Apple-Caltech patent case
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AAPL
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https://www.nasdaq.com/articles/biden-administration-urges-supreme-court-not-to-hear-apple-caltech-patent-case
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By Blake Brittain
May 24 (Reuters) - The U.S. solicitor general on Tuesday urged the U.S. Supreme Court to reject an appeal by Apple Inc AAPL.O and Broadcom Inc AVGO.O stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case.
Solicitor General Elizabeth Prelogar said the U.S. Court of Appeals for the Federal Circuit was correct when it ruled last year that the companies could not seek to invalidate Caltech's patents in court after Apple failed to raise its invalidity arguments at the U.S. Patent Office.
Caltech declined to comment on the solicitor general's filing. Representatives for the companies and the solicitor general's office did not immediately respond to requests for comment Wednesday.
Pasadena, California-based Caltech sued Apple and Broadcom in Los Angeles federal court in 2016, alleging millions of iPhones, iPads, Apple Watches and other devices with Broadcom Wi-Fi chips infringed its data-transmission patents.
Caltech has also sued Microsoft Corp, Samsung Electronics Co, Dell Technologies Inc and HP Inc for infringing the same patents in separate cases that are still pending.
A jury in 2020 ordered Apple to pay Caltech $837.8 million and Broadcom to pay $270.2 million. The Federal Circuit took issue with the amount of the award and sent the case back last year for a new trial on damages, which is yet to be scheduled.
Apple and Broadcom had argued at the Federal Circuit that they should have been allowed to challenge the patents' validity at trial. The appeals court upheld the decision to bar the invalidity arguments because Apple previously could have raised them in its petitions for Patent Office review of the patents.
The companies told the justices that the Federal Circuit misread the law, which only bars arguments that could have been raised during the review itself.
Prelogar said in her Tuesday brief that the Federal Circuit interpreted the law correctly.
(Reporting by Blake Brittain in Washington)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and 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 Blake Brittain May 24 (Reuters) - The U.S. solicitor general on Tuesday urged the U.S. Supreme Court to reject an appeal by Apple Inc AAPL.O and Broadcom Inc AVGO.O stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case. Caltech has also sued Microsoft Corp, Samsung Electronics Co, Dell Technologies Inc and HP Inc for infringing the same patents in separate cases that are still pending. The Federal Circuit took issue with the amount of the award and sent the case back last year for a new trial on damages, which is yet to be scheduled.
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By Blake Brittain May 24 (Reuters) - The U.S. solicitor general on Tuesday urged the U.S. Supreme Court to reject an appeal by Apple Inc AAPL.O and Broadcom Inc AVGO.O stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case. Solicitor General Elizabeth Prelogar said the U.S. Court of Appeals for the Federal Circuit was correct when it ruled last year that the companies could not seek to invalidate Caltech's patents in court after Apple failed to raise its invalidity arguments at the U.S. Patent Office. Pasadena, California-based Caltech sued Apple and Broadcom in Los Angeles federal court in 2016, alleging millions of iPhones, iPads, Apple Watches and other devices with Broadcom Wi-Fi chips infringed its data-transmission patents.
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By Blake Brittain May 24 (Reuters) - The U.S. solicitor general on Tuesday urged the U.S. Supreme Court to reject an appeal by Apple Inc AAPL.O and Broadcom Inc AVGO.O stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case. Solicitor General Elizabeth Prelogar said the U.S. Court of Appeals for the Federal Circuit was correct when it ruled last year that the companies could not seek to invalidate Caltech's patents in court after Apple failed to raise its invalidity arguments at the U.S. Patent Office. Pasadena, California-based Caltech sued Apple and Broadcom in Los Angeles federal court in 2016, alleging millions of iPhones, iPads, Apple Watches and other devices with Broadcom Wi-Fi chips infringed its data-transmission patents.
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By Blake Brittain May 24 (Reuters) - The U.S. solicitor general on Tuesday urged the U.S. Supreme Court to reject an appeal by Apple Inc AAPL.O and Broadcom Inc AVGO.O stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case. Solicitor General Elizabeth Prelogar said the U.S. Court of Appeals for the Federal Circuit was correct when it ruled last year that the companies could not seek to invalidate Caltech's patents in court after Apple failed to raise its invalidity arguments at the U.S. Patent Office. Pasadena, California-based Caltech sued Apple and Broadcom in Los Angeles federal court in 2016, alleging millions of iPhones, iPads, Apple Watches and other devices with Broadcom Wi-Fi chips infringed its data-transmission patents.
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2023-05-24 00:00:00 UTC
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2 Dividend Stocks Putting More Money in Investors' Pockets
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https://www.nasdaq.com/articles/2-dividend-stocks-putting-more-money-in-investors-pockets
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Are you a shareholder of either Apple (NASDAQ: AAPL) or ASML Holding (NASDAQ: ASML)? If so, congratulations: You recently became incrementally richer. As is their habit, both companies recently declared dividend raises. Still, while this means a bit more coin in the bank accounts of their investors, it doesn't necessarily mean either company is investment-worthy today.
So let's put Apple and ASML under the microscope and see if they pass inspection.
1. Apple
It's a little hard to imagine these days, but for the first few decades of its existence, Apple was basically a pure-play tech hardware company. It had a regularly refreshed lineup of personal computers that usually won praise for their quality and utility although the company never became a No. 1 producer of mass-market machines.
These days, of course, Apple is an electronics and consumer-goods powerhouse that has sprouted thick branches from that trunk of original computer tech. We see iPhones everywhere, and it's not unusual for a household to have more than a single iPad tablet. Ever bold, the tech giant has pushed confidently into other product categories such as smartwatches and even computer chips.
Apple has cleverly positioned itself as a broadening electronics retailer whose products all operate on the same software platform. With this, its mighty App Store draws billions of dollars in revenue from the software you and I have on our iDevices, be it purchase charges, in-store buys, or subscriptions. The iOS operating system will continue to be foundational, and those apps and commerce opportunities will keep coming.
The King of Cupertino has been on its throne for a long time now, but it still seems like it has plenty of growth in store. Across all of its fiscal 2022, Apple managed to increase its net sales by 8%, with net income improving by 5%.
Macroeconomic strains and supply issues have dinged 2023 results so far, but that should reverse in the next year. On average, analysts are modeling 6% growth on the top line for 2024 and, much better, almost 10% improvement in per-share net income.
So is it any wonder that Apple just pulled the trigger on yet another dividend raise? The new quarterly disbursement is $0.24 per share, 4% higher than its previous payout. This was paid on May 18.
While the enhanced amount doesn't make it the highest yielder on the scene (at under 0.6%), it represents the 11th straight raise for the company, which seems fully determined to keep rewarding its shareholders.
2. ASML
In contrast to the overly familiar Apple, ASML is quite the under-the-radar stock. Based in the Netherlands, the company produces the photolithography machines used to make computer chips. In fact, it's the sole maker of extreme ultraviolet lithography (EUV) devices, the only machines that can produce certain types of advanced chips.
As you might imagine, this is a monster business in a world stuffed full of smart devices, servers, and computers. Enduringly strong demand for chips keeps pushing ASML's financials ever higher. In its first quarter, the company reaped $7.3 billion in revenue, a very high leap over the $3.8 billion a mere one year prior. Not to be outdone, net income came in nearly three times higher, at $2.1 billion, against $750 million from a year ago.
As a result, ASML is a highly profitable company that throws off a lot of cash. It likes to direct some of this to its shareholders, and recently it rewarded them with -- you guessed it -- a dividend raise. The company's quarterly payout now stands at 1.69 euros ($1.82) per share, a robust 23% higher than the 1.37 euros ($1.49) it was distributing previously.
ASML's dividend raise kicked in with the quarterly payout dispensed on May 10. At the most recent closing share price, the new amount yields just over 1%.
None of this is a fluke or a one-off. ASML is facing the "good problem" of being too popular -- to the point where at the end of the first quarter, its order backlog was an intimidating $42 billion. That's nearly double the revenue it earned in all of 2022. How's that for popularity? Particularly with an explosion in the appeal and prominence of artificial intelligence (AI), consumers' devices will need ever more computing power.
ASML is guiding for 25% growth on the top line for 2023 compared to the previous year. Profitability should continue to be strong, ringing in at a gross margin of around 50%. We can easily imagine more double-digit growth in future years. With that kind of potential, ASML looks like a great stock to own, and now looks like a good time to own it.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends ASML and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Are you a shareholder of either Apple (NASDAQ: AAPL) or ASML Holding (NASDAQ: ASML)? With this, its mighty App Store draws billions of dollars in revenue from the software you and I have on our iDevices, be it purchase charges, in-store buys, or subscriptions. While the enhanced amount doesn't make it the highest yielder on the scene (at under 0.6%), it represents the 11th straight raise for the company, which seems fully determined to keep rewarding its shareholders.
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Are you a shareholder of either Apple (NASDAQ: AAPL) or ASML Holding (NASDAQ: ASML)? Based in the Netherlands, the company produces the photolithography machines used to make computer chips. As a result, ASML is a highly profitable company that throws off a lot of cash.
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Are you a shareholder of either Apple (NASDAQ: AAPL) or ASML Holding (NASDAQ: ASML)? Apple It's a little hard to imagine these days, but for the first few decades of its existence, Apple was basically a pure-play tech hardware company. In its first quarter, the company reaped $7.3 billion in revenue, a very high leap over the $3.8 billion a mere one year prior.
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Are you a shareholder of either Apple (NASDAQ: AAPL) or ASML Holding (NASDAQ: ASML)? The new quarterly disbursement is $0.24 per share, 4% higher than its previous payout. With that kind of potential, ASML looks like a great stock to own, and now looks like a good time to own it.
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2023-05-24 00:00:00 UTC
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Netflix (NFLX) Rolls Out Paid Sharing in the United States
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-rolls-out-paid-sharing-in-the-united-states
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Netflix NFLX recently announced its paid sharing model in the United States, alerting members that their accounts cannot be shared for free to users outside their households.
Members who want to share their account with someone outside their household can do so by either transferring the profile to a new membership or buying an extra member on their existing account by paying an additional fee of $7.99 per month.
Members with standard plans can add only one extra viewer, while premium subscribers can add up to two extra viewers. The extra member account must be activated in the same country where the owner created their account.
Paid sharing model is an integral step to tackle widespread account sharing, which erodes the company’s ability to invest and improve content for its paying members. Netflix already launched paid sharing model in Canada, New Zealand, Spain and Portugal in first-quarter 2023.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Strong Portfolio to Aid Netflix’s Prospects
Netflix shares have grown 20.8% year-to-date, outperforming the Zacks Consumer & Discretionary sector, which gained 7.3% over the same time frame.
Netflix’s diversified content portfolio and its customer-centric focus has been a major growth driver in recent times. Hits like The Night Agent, The Glory, Full Swing and That 90s Show helped Netflix win subscribers.
Its global paid subscriber base in first-quarter 2023 increased by 4.9% year over year to 232.5 million.
It continues to serve a wider demography by producing original content with regional creators, writers, cast and production teams, reflecting its values toward diverse cultures.
Netflix’s revenues of $8.16 billion increased 3.7% year over year in first-quarter 2023, owing to strong content diversification and monetization initiatives.
Its monetization initiative includes the new ad-supported plan which has experienced higher user engagement. The plan focuses on key dimensions like member experience, value to advertisers and incremental contribution to business. It is also upgrading its ads experience with more streams and improved video quality to attract a broader range of consumers.
Netflix Suffering From Stiff Competition
Netflix has been suffering from stiff competition from the likes of Apple AAPL, Warner Bros. Discovery WBD and Amazon AMZN in the saturated streaming market. Its average revenues per membership declined 1% year over year during the first-quarter 2023
NFLX shares have underperformed Apple, Warner Bros. and Amazon, which have risen 32%, 23.3% and 36.9% year to date, respectively. These companies continue to invest heavily in their streaming arm while focusing on revenue diversification.
Moreover, its initiative to roll out paid password sharing is expected to hurt subscriber growth in the near term.
This Zacks Rank #3 (Hold) company expects second-quarter 2023 earnings of around $2.84 per share, indicating a 20% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, Netflix expects its second-quarter 2023 revenues to increase 3.4% year over year to around $8.242 billion.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $8.25 billion, indicating a 3.47% growth from the year-ago quarter’s reported figure.
The consensus mark for second-quarter 2023 earnings remained unchanged at $2.80 per share in the past 30 days, indicating a year-over-year decline of 12.5%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix Suffering From Stiff Competition Netflix has been suffering from stiff competition from the likes of Apple AAPL, Warner Bros. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Warner Bros. It continues to serve a wider demography by producing original content with regional creators, writers, cast and production teams, reflecting its values toward diverse cultures.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Warner Bros. Netflix Suffering From Stiff Competition Netflix has been suffering from stiff competition from the likes of Apple AAPL, Warner Bros. Netflix’s revenues of $8.16 billion increased 3.7% year over year in first-quarter 2023, owing to strong content diversification and monetization initiatives.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Warner Bros. Netflix Suffering From Stiff Competition Netflix has been suffering from stiff competition from the likes of Apple AAPL, Warner Bros. Netflix NFLX recently announced its paid sharing model in the United States, alerting members that their accounts cannot be shared for free to users outside their households.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Warner Bros. Netflix Suffering From Stiff Competition Netflix has been suffering from stiff competition from the likes of Apple AAPL, Warner Bros. Netflix NFLX recently announced its paid sharing model in the United States, alerting members that their accounts cannot be shared for free to users outside their households.
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2023-05-24 00:00:00 UTC
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Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-6
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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 iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
The fund is sponsored by Blackrock. It has amassed assets over $7.78 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.40%.
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 32.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 41.16% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has gained about 13.02% so far this year and is up roughly 8.16% in the last one year (as of 05/24/2023). In the past 52-week period, it has traded between $161.29 and $196.83.
The ETF has a beta of 0.99 and standard deviation of 19.31% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 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, OEF 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 $308.69 billion in assets, SPDR S&P 500 ETF has $384.83 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 100 ETF (OEF): 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 10.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): 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 iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
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Click to get this free report iShares S&P 100 ETF (OEF): 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 10.79% 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 iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
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Click to get this free report iShares S&P 100 ETF (OEF): 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 10.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). 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.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.79% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): 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 iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
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15691.0
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2023-05-24 00:00:00 UTC
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2 Leading Tech Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-leading-tech-stocks-to-buy-in-2023-and-beyond-3
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nan
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nan
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After a sell-off in 2022, tech stocks are on the rise this year. Markets such as artificial intelligence (AI), cloud computing, and virtual/augmented reality (VR/AR) have caught the eye of Wall Street. These technologies have the potential to affect the futures of countless industries, from consumer tech to healthcare, machine learning, education, and more. As a result, this year is an exciting time to load up on the tech companies that are building the future.
Here are two leading tech stocks to buy in 2023 and beyond.
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) is one of the world's most in-demand chipmakers, and its stock is an increasingly attractive investment. Technological advances have made more powerful chips crucial to the development of several industries. As a result, demand for AMD's central processing units (CPUs), graphics processing units (GPUs), and data processing units (DPUs) could soar as tech continues to evolve.
The semiconductor company's chips have allowed it to partner with titans of the industry to strengthen and diversify its business. In 2020, AMD became the exclusive supplier of chips for two of the most popular game consoles, Sony's PlayStation 5 and Microsoft's Xbox Series X/S. Meanwhile, the company's data center chips have attracted cloud giants like Microsoft's Azure, Alphabet's Google Cloud, and Oracle as clients.
However, one of the biggest reasons to invest in AMD is the support it is receiving from Microsoft to expand its AI chip offerings. According to a Bloomberg report from May 4, the Windows company is bolstering AMD's AI presence through financing and providing engineering resources in an effort to create an alternative to Nvidia.
The partnership is promising because Microsoft is one of the biggest names in AI right now; it invested $1 billion in ChatGPT developer OpenAI in 2019 and another $10 billion this year. The alliance has allowed Microsoft to integrate the start-up's AI technology into several of its services, such as its Office productivity software, Azure, and search engine Bing. As a result, Microsoft could be an excellent guide to help bolster AMD's AI expansion.
The AI market is projected to expand at a compound annual growth rate (CAGR) of 37% through 2030, suggesting that there will be plenty of market share up for grabs as AMD develops in the sector. Meanwhile, AMD's forward price/earnings-to-growth ratio of 0.2 suggests its stock is still significantly undervalued, making it worth an investment this year.
2. Apple
Apple (NASDAQ: AAPL) is the most valuable company in the world, with a market cap of $2.7 trillion, and it might seem as if the best time to invest in it has passed. However, the company's dominance across several areas of consumer tech and a booming services business make its stock worth considering.
Apple shares have climbed nearly 1,000% since 2013. The company's consistent growth has primarily stemmed from its ability to rise to the top of nearly any industry it enters. It has attained a leading market share in smartphones, tablets, smartwatches, and headphones despite other tech companies controlling those markets before Apple entered the picture.
As a result, the iPhone company's expected venture into the VR/AR market next month is an exciting development. According to data from Statista, the VR/AR market is projected to hit $31 billion this year and grow at a CAGR of 14% through 2027. The sector is currently dominated by Sony and Meta Platforms with their respective headsets. However, Apple's new device will offer connectivity with its other products and is expected to feature an iPhone-like interface, which could go a long way in attracting consumers.
Moreover, Apple services (Apple TV+, Music, iCloud, Fitness+, and more) have become an increasingly lucrative way for the company to diversify its earnings and lean less on product sales in the event of a market downturn. The consistent rise of iPhone adoption has spurred its services business, with the segment's revenue rising 63% since the first quarter of 2020 and offering attractive profit margins of around 70%.
Apple has a reputation for consistent stock growth, making it one of the most reliable investments available. Bolstered by a potential venture into a new market, the company's stock is a stellar buy in 2023 and beyond.
10 stocks we like better than Advanced Micro Devices
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 15, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, with a market cap of $2.7 trillion, and it might seem as if the best time to invest in it has passed. According to a Bloomberg report from May 4, the Windows company is bolstering AMD's AI presence through financing and providing engineering resources in an effort to create an alternative to Nvidia. The alliance has allowed Microsoft to integrate the start-up's AI technology into several of its services, such as its Office productivity software, Azure, and search engine Bing.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, with a market cap of $2.7 trillion, and it might seem as if the best time to invest in it has passed. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) is one of the world's most in-demand chipmakers, and its stock is an increasingly attractive investment. Meanwhile, the company's data center chips have attracted cloud giants like Microsoft's Azure, Alphabet's Google Cloud, and Oracle as clients.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, with a market cap of $2.7 trillion, and it might seem as if the best time to invest in it has passed. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) is one of the world's most in-demand chipmakers, and its stock is an increasingly attractive investment. It has attained a leading market share in smartphones, tablets, smartwatches, and headphones despite other tech companies controlling those markets before Apple entered the picture.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, with a market cap of $2.7 trillion, and it might seem as if the best time to invest in it has passed. After a sell-off in 2022, tech stocks are on the rise this year. However, the company's dominance across several areas of consumer tech and a booming services business make its stock worth considering.
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15692.0
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2023-05-24 00:00:00 UTC
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Under-the-Radar AI Beast and Huge Apple News -- Broadcom Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/under-the-radar-ai-beast-and-huge-apple-news-broadcom-stock-analysis
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nan
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nan
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When looking for the best stocks to buy, it's important to look at megatrends and have a vision for the future. Without question, artificial intelligence is the hottest topic of 2023. The obvious beneficiaries of AI have been identified, but there are several off-the-radar stock picks that could benefit. The video below explains how Broadcom (NASDAQ: AVGO) stock could benefit from AI for your growth stock portfolio while paying a healthy dividend to boot.
*Stock prices used were the morning prices of May 23, 2023. The video was published on May 23, 2023.
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.
See the 10 stocks
*Stock Advisor returns as of May 22, 2023
Eric Cuka has positions in Apple and Broadcom. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The obvious beneficiaries of AI have been identified, but there are several off-the-radar stock picks that could benefit. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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The video below explains how Broadcom (NASDAQ: AVGO) stock could benefit from AI for your growth stock portfolio while paying a healthy dividend to boot. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Broadcom.
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The video below explains how Broadcom (NASDAQ: AVGO) stock could benefit from AI for your growth stock portfolio while paying a healthy dividend to boot. 10 stocks we like better than Broadcom When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of May 22, 2023 Eric Cuka has positions in Apple and Broadcom.
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The video below explains how Broadcom (NASDAQ: AVGO) stock could benefit from AI for your growth stock portfolio while paying a healthy dividend to boot. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Qualcomm.
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15693.0
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2023-05-24 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-40
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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
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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15694.0
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2023-05-24 00:00:00 UTC
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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-growth-etf-vong-be-on-your-investing-radar-7
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nan
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nan
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Launched on 09/22/2010, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $11.70 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.86%.
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 42.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.
The ETF has added roughly 17.50% so far this year and is up about 11.54% in the last one year (as of 05/24/2023). In the past 52-week period, it has traded between $53.17 and $66.18.
The ETF has a beta of 1.08 and standard deviation of 23.27% for the trailing three-year period, making it a medium risk choice in the space. With about 512 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 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, VONG 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 $84.29 billion in assets, Invesco QQQ has $178.78 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
Vanguard Russell 1000 Growth ETF (VONG): 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 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 $11.70 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 Vanguard Russell 1000 Growth ETF (VONG): 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 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 09/22/2010, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 09/22/2010, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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. Launched on 09/22/2010, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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15695.0
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2023-05-24 00:00:00 UTC
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Why AAPL Stock Is Low-Hanging Fruit on Any Weakness
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AAPL
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https://www.nasdaq.com/articles/why-aapl-stock-is-low-hanging-fruit-on-any-weakness
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses. Shares in the iPhone today are just a few dollars below their all-time high.
However, while a satisfying turn of events for AAPL investors, concerns are rising that the FAANG component has gone up too far, too fast.
In their view, after a nearly 40% move higher since the start of 2023, a pullback, or worse, a correction is due. There are several factors that, while not affecting the stock much now, could cause a reversal to happen.
But while some temporary weakness may perhaps lie ahead for Apple, don’t assume that means you need to take profit if you currently own it. If you’ve yet to buy it, this dynamic may create a golden opportunity.
AAPL Apple $171.56
AAPL Stock and Growing Pessimism
Don’t get me wrong. It’s not as if Apple shares are anywhere close to falling out of favor with the market. According to Marketbeat, out of 33 analyst ratings, 26 rate shares a “buy,” with only 5 rating it a “hold,” and 2 rating it a “sell.”
That AAPL stock is back near pre-sell off price levels is a testament to its continued popularity among investors. Still, there are several things that could soon dampen bullishness, a revenue miss for the current quarter (ending June 30), for one. At least, that’s the view of Loop Capital’s Ananda Baruah.
On May 23, the analyst downgraded AAPL from “buy” to “hold.” They cited Apple’s reduction of its iPhone shipment forecast as a sign that revenue this quarter could fall short of expectations. It’s possible this makes the market less bullish on Apple’s Augmented Reality/Virtual reality catalyst.
There is increasing uncertainty over whether this soon-to-be-unveiled product will be a moderate hit, or a massive flop. To top things off, investors could start to adopt analyst firm Bernstein’s more doubtful view of Apple’s growth prospects in non-China emerging markets like India.
Temporary Issues Don’t Change the Story
Despite these many issues that could temporarily sink AAPL stock lower, don’t assume this means middling or weak returns for shares over a longer timeframe. While possible that Apple falls short of guidance this quarter, that doesn’t mean further misses lie ahead in subsequent quarters.
Keep in mind that Apple is only starting to bounce back from the recent tech sector slowdown. Mixed results in 2023 could give way to strong numbers in 2024 and 2025, especially as the company continues to expand the reach of its Services segment. Although Services growth slowed last quarter, it could surge back in a big way as the overall economy normalizes.
Better yet, after success in subscription-based verticals like apps and music, there’s enormous potential for Apple to “disrupt the disruptors” in fintech.
Previously, I’ve talked about Apple’s move into the “buy now, pay later” (or BNPL) space. Apple could also give incumbent fintechs a run for their money in areas like payments, merchant services, and savings accounts.
Add in its strong potential to continue releasing innovative products, even if its AR/VR device flops, and it’s clear that AAPL is far from running out of growth runway.
The Takeaway
On top of these many positives, don’t forget, either, that there’s a project still in the works that later this decade could truly move the needle for this already mammoth-sized company. That would be the Apple car, or the company’s much-anticipated electric vehicle (or EV) with self-driving capabilities.
While AAPL could pull back in the latter half of 2023, growth stands to re-accelerate in the coming years. As discussed above, Apple has many opportunities it can pursue to achieve this.
Once back fully into growth mode, Apple shares are poised to snap back to its high-water mark, then onto new highs.
If you own AAPL stock today, there’s no need to make a hasty exit. If you currently do not own it, feel free to buy at current prices, but consider pouncing on it following any weakness.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Why AAPL Stock Is Low-Hanging Fruit on Any Weakness 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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On May 23, the analyst downgraded AAPL from “buy” to “hold.” They cited Apple’s reduction of its iPhone shipment forecast as a sign that revenue this quarter could fall short of expectations. Add in its strong potential to continue releasing innovative products, even if its AR/VR device flops, and it’s clear that AAPL is far from running out of growth runway. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses. However, while a satisfying turn of events for AAPL investors, concerns are rising that the FAANG component has gone up too far, too fast.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. AAPL Apple $171.56 AAPL Stock and Growing Pessimism Don’t get me wrong. According to Marketbeat, out of 33 analyst ratings, 26 rate shares a “buy,” with only 5 rating it a “hold,” and 2 rating it a “sell.” That AAPL stock is back near pre-sell off price levels is a testament to its continued popularity among investors.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. If you own AAPL stock today, there’s no need to make a hasty exit. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses.
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15696.0
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2023-05-24 00:00:00 UTC
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Here's How Much Warren Buffett's 4 Big Stock Buys Just Boosted Berkshire Hathaway's Dividend Income
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AAPL
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https://www.nasdaq.com/articles/heres-how-much-warren-buffetts-4-big-stock-buys-just-boosted-berkshire-hathaways-dividend
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nan
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nan
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Warren Buffett is a big believer in dividend-paying stocks. Even though the company he leads, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), doesn't pay dividends, many of the businesses in which it invests feature extensive dividend income.
Berkshire Hathaway recently announced its latest individual stock holdings through its 13-F filing with the U.S. Securities and Exchange Commission (SEC). The filing revealed changes to Berkshire's portfolio during the first quarter of 2023, and during that period, Berkshire added shares of several notable dividend payers. By doing so, Berkshire boosted its potential annual dividend income by more than $80 million. Here's the breakdown.
HP: $17.3 million extra
Computer printer and hardware company HP (NYSE: HPQ) has quietly become a major position in Berkshire's portfolio. With almost 121 million shares of HP, Berkshire owns about 12% of the tech business, with a value of about $3.5 billion based on recent prices. Berkshire just bought an additional 16.48 million shares during the first quarter of 2023.
HP pays its shareholders $0.2625 per share in dividends each quarter, which works out to a yield of more than 3%. The position in the printer specialist pays out about $127 million in dividends, and the shares that Berkshire just bought will add $17.3 million in annual dividend income for Berkshire.
Apple: $19.6 million extra
Berkshire's largest individual stock holding by far is Apple (NASDAQ: AAPL). The conglomerate holds a roughly 5.8% stake in the iPhone maker, and the market value of the 915 million Apple shares it owned as of March 31 was more than $150 billion. Buffett made an incremental purchase of 20.42 million shares of Apple stock during the period.
Apple's dividend yield of just over 0.5% isn't all that impressive, but it still puts plenty of cash into Berkshire's coffers. At $0.24 per share each quarter, Apple's dividends amount to nearly $879 million in annual income. The added shares purchased just in the first three months of 2023 should add more than $19.6 million in cash over the next year -- and that's assuming that the tech company doesn't boost its payout even further in the interim.
Bank of America: $20 million extra
Yet beating out Apple in the dividend department is Bank of America (NYSE: BAC). Berkshire added 22.75 million shares of BofA stock during 2023's Q1. With a quarterly dividend of $0.22 per share, that should contribute just over $20 million in additional dividend income annually. Berkshire's total position of 1.033 billion shares generated about $909 billion in dividends.
Buffett has actually sold off many of Berkshire's bank stock holdings recently. But Bank of America remains a favorite, and even though the total market value of Berkshire's BofA position is under $30 billion, the 3.1% dividend yield is much higher than Apple's, allowing the bank stock to cement its position as a leading contributor of dividend income for the Buffett-led insurance giant. Berkshire also controls about 13% of BofA's outstanding shares, which shows the confidence that the Oracle of Omaha has in the Charlotte-based banking giant.
Capital One Financial: $23.8 million extra
Continuing the bank theme, Berkshire added shares of Capital One Financial (NYSE: COF) for the first time during 2023's Q1. Purchases of 9.922 million shares represent just a 2.6% stake in Capital One, but they represent nearly $1 billion in value.
Moreover, with a $0.60 per-share quarterly dividend, Capital One boasts a 2.4% dividend yield. With such a massive investment, Berkshire boosted its annual dividend income by more than $23.8 million. Given an inexpensive valuation, Buffett likely believes Capital One can rise in value at the same time that it keeps paying out dividend income.
Don't forget the dividends
Even if you don't need dividend income from your portfolio to pay for your living expenses, it can still be valuable to invest in dividend stocks. With the cash they pay out, you can make additional investments and increase your income even further. That's been a winning strategy for Warren Buffett , and it's one you should closely consider as well in your own investing.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dan Caplinger has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. 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: $19.6 million extra Berkshire's largest individual stock holding by far is Apple (NASDAQ: AAPL). Berkshire Hathaway recently announced its latest individual stock holdings through its 13-F filing with the U.S. Securities and Exchange Commission (SEC). The conglomerate holds a roughly 5.8% stake in the iPhone maker, and the market value of the 915 million Apple shares it owned as of March 31 was more than $150 billion.
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Apple: $19.6 million extra Berkshire's largest individual stock holding by far is Apple (NASDAQ: AAPL). Even though the company he leads, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), doesn't pay dividends, many of the businesses in which it invests feature extensive dividend income. The position in the printer specialist pays out about $127 million in dividends, and the shares that Berkshire just bought will add $17.3 million in annual dividend income for Berkshire.
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Apple: $19.6 million extra Berkshire's largest individual stock holding by far is Apple (NASDAQ: AAPL). The position in the printer specialist pays out about $127 million in dividends, and the shares that Berkshire just bought will add $17.3 million in annual dividend income for Berkshire. But Bank of America remains a favorite, and even though the total market value of Berkshire's BofA position is under $30 billion, the 3.1% dividend yield is much higher than Apple's, allowing the bank stock to cement its position as a leading contributor of dividend income for the Buffett-led insurance giant.
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Apple: $19.6 million extra Berkshire's largest individual stock holding by far is Apple (NASDAQ: AAPL). The position in the printer specialist pays out about $127 million in dividends, and the shares that Berkshire just bought will add $17.3 million in annual dividend income for Berkshire. But Bank of America remains a favorite, and even though the total market value of Berkshire's BofA position is under $30 billion, the 3.1% dividend yield is much higher than Apple's, allowing the bank stock to cement its position as a leading contributor of dividend income for the Buffett-led insurance giant.
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15697.0
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2023-05-23 00:00:00 UTC
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Don't Count On Apple's New Headset To Move The Needle For The Stock
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AAPL
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https://www.nasdaq.com/articles/dont-count-on-apples-new-headset-to-move-the-needle-for-the-stock
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nan
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nan
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Apple (NASDAQ:AAPL) is widely expected to launch its mixed-reality headset shortly, potentially as early as the beginning of June, when the company holds its annual worldwide developer conference (WWDC). The headset would be Apple’s first all-new product line since the Apple Watch and the potential launch comes at a time when Apple’s bread and butter smartphone and computing product businesses face a slowdown, with Covid-19 tailwinds easing. So will the new device move the needle for Apple stock? We don’t think it will, for a couple of reasons.
While Apple is known for disrupting product categories with highly refined products with great software and design, the new headset appears to be entering a much more nascent market. Smartphone sales were rising and use cases were clear when Apple got into the game in 2007 with a highly refined product. Similarly, the templates for tablets were largely set when Apple launched iPad in 2010. However, the mixed-reality headset appears like a bit more of a speculative bet. While Apple’s products are typically sleek, with high-end industrial design, the headset could be more utilitarian and could resemble a pair of goggles connected to an external battery pack, per the Wall Street Journal. The device is expected to combine virtual reality – used for games and experiences – with augmented reality, which overlays digital information in the real world potentially using cameras. Apple would need to educate consumers on what the device is really for. Companies such as Facebook have invested considerable sums into this space thus far with little success. Worldwide shipments of VR headsets and augmented reality devices actually declined by over 12% year over year to 9.6 million in 2022, per data from analyst firm CCS Insight. Apple’s device is also initially going to be expensive, with reports pointing to a price tag of roughly $3,000, indicating that it will likely focus on a niche audience of early adopters in its first iteration.
Overall, we don’t think the device will help Apple’s stock in the near term. Apple stock already trades at a relatively lofty $175 per share, or almost 30x forward earnings, despite the fact that consensus forecasts point to a revenue decline this year. We don’t think the pricey headset will do much to re-rate Apple stock higher in the near term. That being said, there is good reason to believe that Apple could eventually make its mark in the segment. Apple is known for cutting-edge hardware engineering and also emerging as a leader in semiconductor design. Apple also has a knack of working with developers and building a software ecosystem around its products, while refining future iterations of the device around particular areas that consumers like. For instance, with the Apple Watch, Apple took a few years to zone in that customers really valued the fitness capacities of the device, marketing it as a health-first product. Apple could do something similar with its headset as well, while also bringing down prices as technology matures. We value Apple at about $162 per share, about 10% below the market price. See our analysis of Apple Valuation for more details on what’s driving our price estimate for Apple and how it compares with peers.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return 3% 35% 505%
S&P 500 Return 1% 9% 87%
Trefis Multi-Strategy Portfolio 0% 9% 244%
[1] Month-to-date and year-to-date as of 5/22/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and 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 widely expected to launch its mixed-reality headset shortly, potentially as early as the beginning of June, when the company holds its annual worldwide developer conference (WWDC). Total [2] AAPL Return 3% 35% 505% S&P 500 Return 1% 9% 87% Trefis Multi-Strategy Portfolio 0% 9% 244% [1] Month-to-date and year-to-date as of 5/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. While Apple’s products are typically sleek, with high-end industrial design, the headset could be more utilitarian and could resemble a pair of goggles connected to an external battery pack, per the Wall Street Journal.
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Apple (NASDAQ:AAPL) is widely expected to launch its mixed-reality headset shortly, potentially as early as the beginning of June, when the company holds its annual worldwide developer conference (WWDC). Total [2] AAPL Return 3% 35% 505% S&P 500 Return 1% 9% 87% Trefis Multi-Strategy Portfolio 0% 9% 244% [1] Month-to-date and year-to-date as of 5/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. While Apple is known for disrupting product categories with highly refined products with great software and design, the new headset appears to be entering a much more nascent market.
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Total [2] AAPL Return 3% 35% 505% S&P 500 Return 1% 9% 87% Trefis Multi-Strategy Portfolio 0% 9% 244% [1] Month-to-date and year-to-date as of 5/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) is widely expected to launch its mixed-reality headset shortly, potentially as early as the beginning of June, when the company holds its annual worldwide developer conference (WWDC). The headset would be Apple’s first all-new product line since the Apple Watch and the potential launch comes at a time when Apple’s bread and butter smartphone and computing product businesses face a slowdown, with Covid-19 tailwinds easing.
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Apple (NASDAQ:AAPL) is widely expected to launch its mixed-reality headset shortly, potentially as early as the beginning of June, when the company holds its annual worldwide developer conference (WWDC). Total [2] AAPL Return 3% 35% 505% S&P 500 Return 1% 9% 87% Trefis Multi-Strategy Portfolio 0% 9% 244% [1] Month-to-date and year-to-date as of 5/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. While Apple is known for disrupting product categories with highly refined products with great software and design, the new headset appears to be entering a much more nascent market.
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15698.0
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2023-05-23 00:00:00 UTC
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US STOCKS-Wall St subdued as deadlocked debt ceiling talks stoke default concerns
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-as-deadlocked-debt-ceiling-talks-stoke-default-concerns
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 23 (Reuters) - Wall Street indexes were subdued on Tuesday as talks over increasing the U.S. debt limit stretched to another round, keeping investors jittery on prospects of an unprecedented government default.
White House and congressional Republican will meet again later in the day to discuss how to raise the $31.4 trillion debt ceiling, with just nine days left for the deadline.
This comes after President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement about the debt ceiling in their meeting a day earlier, but vowed to keep talking.
"Both sides are motivated to not default and to work out a compromise, so that's the feeling today at any rate. The markets really never expect a default. Not much is priced in for that and so that's a positive," said Thomas Martin, senior portfolio manager at GLOBALT Investments.
Worries over the debt limit pushed yields on one-month Treasury bills US1MT=RR to record highs at 5.888%, before falling by midday. US/
Trading on the S&P 500 index .SPX was stuck in a 30-point range in the last two sessions as U.S. debt ceiling talks lingered.
Strategists polled by Reuters see the benchmark index ending the year at 4,150 points, down slightly from Monday's close of 4,192.63.
Helping limit losses, the S&P Global data showed U.S. business activity rose to a 13-month high in May, lifted by strong growth in the services sector.
The report was the latest indication that the economy held its momentum early in the second quarter despite rising risks of a recession.
The Commerce Department's April personal consumption expenditure (PCE) index reading, the Fed's preferred inflation gauge, is due on Friday.
Broadcom IncAVGO.O advanced 2.5%, hitting a record high after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. Apple shares fell 0.9%.
Zoom Video Communications ZM.O fell 7.6% after the video conferencing platform recorded its slowest quarterly revenue growth.
At 12:25 p.m. ET, the Dow Jones Industrial Average .DJI was up 3.48 points, or 0.01%, at 33,290.06, the S&P 500 .SPX was down 13.15 points, or 0.31%, at 4,179.48, and the Nasdaq Composite .IXIC was down 41.50 points, or 0.33%, at 12,679.28.
Among retail earnings, Lowe's Companies Inc LOW.N cut its annual comparable sales forecast, as demand dwindles for home improvement goods. Lowe's reverse coursed to gain 2.5%.
BJ's Wholesale Club Holdings IncBJ.N dropped 6.9% after the warehouse club operator missed first-quarter revenue estimates.
Shares of regional lenders extended gains from the previous session, led by a 14.5% rise in PacWest Bancorp PACW.O.
The KBW regional banking index .KRX hit a three-week high, up 2.7%.
Advancing issues outnumbered decliners by a 1.16-to-1 ratio on the NYSE and by a 1.34-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 79 new highs and 44 new lows.
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi; Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom IncAVGO.O advanced 2.5%, hitting a record high after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street indexes were subdued on Tuesday as talks over increasing the U.S. debt limit stretched to another round, keeping investors jittery on prospects of an unprecedented government default. This comes after President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement about the debt ceiling in their meeting a day earlier, but vowed to keep talking.
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Broadcom IncAVGO.O advanced 2.5%, hitting a record high after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. Zoom Video Communications ZM.O fell 7.6% after the video conferencing platform recorded its slowest quarterly revenue growth. The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 79 new highs and 44 new lows.
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Broadcom IncAVGO.O advanced 2.5%, hitting a record high after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street indexes were subdued on Tuesday as talks over increasing the U.S. debt limit stretched to another round, keeping investors jittery on prospects of an unprecedented government default. The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 79 new highs and 44 new lows.
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Broadcom IncAVGO.O advanced 2.5%, hitting a record high after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street indexes were subdued on Tuesday as talks over increasing the U.S. debt limit stretched to another round, keeping investors jittery on prospects of an unprecedented government default. Apple shares fell 0.9%.
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15699.0
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2023-05-23 00:00:00 UTC
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Apple's AI-Powered Initiatives Poised for Big Gains
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AAPL
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https://www.nasdaq.com/articles/apples-ai-powered-initiatives-poised-for-big-gains
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nan
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nan
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It seems like every technology company is now talking about artificial intelligence (AI). However, Apple (NASDAQ: AAPL) remains somewhat tight-lipped on its plans to integrate AI into its business.
That could soon change. Recent reports suggest Apple will unveil a new hardware product, and the speculation is that it's an augmented reality headset. Additionally, Apple steadily introduces new features to existing products that use AI to create a better user experience.
Painting a picture of Apple's plans requires first understanding the company's core business model. Here is how AI can set Apple and its investors up for continued long-term success.
Apple is all about bolstering its ecosystem
Selling smartphones, headphones, and computers is essential to Apple's business. Hardware sales still make up the majority of revenue, about 80% of sales through the six months ending April 1. But services, the other 20%, made up almost a third of Apple's gross profit over that time.
These services include App Store purchases, media, and subscription services like Music and Arcade. Apple makes money on its hardware sales, but the goal is to grow its user base and monetize it as much as possible by getting you to use your iPhone or other Apple device throughout everyday life. You can think of an iPhone as a customer acquisition tool.
There are over 1 billion iPhone users worldwide, and each accessory and device works seamlessly together. For example, you can download a new song to your library on your iPhone, and it will update across your MacBook or other devices. Apple's hardware isn't cheap for most individuals, so someone with an iPhone, AirPods, and an Apple Watch will probably hesitate to switch to another brand once they buy.
Headset incoming?
The iPhone has carried Apple's growth for years. While that's probably not changing anytime soon, Apple isn't sitting on its hands. Forbes reported that Apple could soon reveal a new hardware product, an augmented reality headset.
It will likely start as a niche device; the reported price will come in at around $3,000, something your average consumer may struggle to afford. Apple wants the headset to be a device that users wear throughout their day, even replacing some tasks that people use their iPhones for. While it may not become the next iPhone (or maybe it does), the company has proven its ability to grow hardware categories with products like the Apple Watch and AirPods.
The device's ability to give users an experience that integrates well with existing hardware will be crucial. Remember, every piece of hardware is designed to play nice with other devices and keep users inside the ecosystem.
AI isn't the star, it's the glue that keeps you stuck
Artificial intelligence may not become Apple's front-and-center focus, but it could play a significant role for the company. Apple's most likely strategy is to use AI to augment its user experience, strengthening its ecosystem to make it even more sticky for users.
You've already seen examples of this, such as facial recognition, photo editing features, and more. What if Apple upgraded Siri to give it ChatGPT-like smarts? Or it used AI to better recommend games, apps, music, and movies to users, driving engagement in the Apple iTunes store?
Years from now, your Apple devices might seemingly know you better than you know yourself, perhaps predicting what you want to do or see next based on your daily tendencies. Apple mastered hardware design and built a sticky ecosystem that created staggering success. The next move could be using AI to make its ecosystem an even more integral part of your daily life.
What to do with shares -- today
The AI hype has pushed shares up 30% since January to nearly 30 times earnings. While Apple's potential new headset and AI applications could play a role in the company's long-term growth, it's still very early, so don't tempt yourself into chasing shares at any price. Apple's the world's largest publicly traded company, and dramatically overpaying for the stock could hurt your returns.
AAPL PE Ratio (Forward) data by YCharts
Analysts believe the company's earnings-per-share (EPS) will grow to nearly $9 by 2028. That means investors could see virtually zero price appreciation for the next five years if the stock traded down to its long-term average valuation. Apple is a great business that investors should want to hold more than trade, but the recent hype should push new money to the sidelines until prices come down a bit.
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However, Apple (NASDAQ: AAPL) remains somewhat tight-lipped on its plans to integrate AI into its business. AAPL PE Ratio (Forward) data by YCharts Analysts believe the company's earnings-per-share (EPS) will grow to nearly $9 by 2028. AI isn't the star, it's the glue that keeps you stuck Artificial intelligence may not become Apple's front-and-center focus, but it could play a significant role for the company.
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However, Apple (NASDAQ: AAPL) remains somewhat tight-lipped on its plans to integrate AI into its business. AAPL PE Ratio (Forward) data by YCharts Analysts believe the company's earnings-per-share (EPS) will grow to nearly $9 by 2028. Forbes reported that Apple could soon reveal a new hardware product, an augmented reality headset.
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However, Apple (NASDAQ: AAPL) remains somewhat tight-lipped on its plans to integrate AI into its business. AAPL PE Ratio (Forward) data by YCharts Analysts believe the company's earnings-per-share (EPS) will grow to nearly $9 by 2028. Apple makes money on its hardware sales, but the goal is to grow its user base and monetize it as much as possible by getting you to use your iPhone or other Apple device throughout everyday life.
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However, Apple (NASDAQ: AAPL) remains somewhat tight-lipped on its plans to integrate AI into its business. AAPL PE Ratio (Forward) data by YCharts Analysts believe the company's earnings-per-share (EPS) will grow to nearly $9 by 2028. Apple makes money on its hardware sales, but the goal is to grow its user base and monetize it as much as possible by getting you to use your iPhone or other Apple device throughout everyday life.
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