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15700.0
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2023-05-23 00:00:00 UTC
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Technology Sector Update for 05/23/2023: AAPL, AMZN, AVGO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-23-2023%3A-aapl-amzn-avgo
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nan
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nan
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Tech stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1% and the Philadelphia Semiconductor index falling 0.6%.
In company news, EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple shares were shedding 1.2%.
Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) that will see the chipmaker develop and build 5G components and other wireless technology in the US. Broadcom was up 2.4%.
Amazon (AMZN) allegedly violated US federal labor laws by firing union supporters and changing policies unilaterally at its only unionized warehouse, the National Labor Relations Board said in a filing that also accuses Chief Executive Andy Jassy of making illegal anti-union comments, Bloomberg reported. Amazon shares were up 0.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) that will see the chipmaker develop and build 5G components and other wireless technology in the US. In company news, EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Tech stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1% and the Philadelphia Semiconductor index falling 0.6%.
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In company news, EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) that will see the chipmaker develop and build 5G components and other wireless technology in the US. Apple shares were shedding 1.2%.
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In company news, EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) that will see the chipmaker develop and build 5G components and other wireless technology in the US. Amazon (AMZN) allegedly violated US federal labor laws by firing union supporters and changing policies unilaterally at its only unionized warehouse, the National Labor Relations Board said in a filing that also accuses Chief Executive Andy Jassy of making illegal anti-union comments, Bloomberg reported.
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In company news, EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) that will see the chipmaker develop and build 5G components and other wireless technology in the US. Tech stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1% and the Philadelphia Semiconductor index falling 0.6%.
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15701.0
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2023-05-23 00:00:00 UTC
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The 3 Best Income Stocks to Buy in a Rising-Interest-Rate Scenario
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AAPL
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https://www.nasdaq.com/articles/the-3-best-income-stocks-to-buy-in-a-rising-interest-rate-scenario
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Rising rates mean many risk-averse investors are flocking to short-term Treasuries, but for traders who prefer a little more action with greater upside potential, income stocks are having their moment in the spotlight. Dividend and stable, high-yield stocks offer reasonably predictable income without sacrificing market excitement or capital return opportunity.
Although today’s 5.08% Federal Funds rate is closer to the central bank’s stated 5.25% goal, sticky inflation and continued economic concerns mean the rate will likely continue rising or remain elevated even if the pace slows. Rate risk means stocks are still struggling, but signs of recovery are slowly emerging, even as debt-ceiling drama makes the market jittery.
It’s no wonder savvy investors are increasingly drawn to equities with a high dividend yield, but investing in income stocks alone isn’t a winning play. Instead, investors must closely examine underlying fundamentals to ensure their picks are the best income stocks for rising interest rates.
Omnicom Group (OMC)
Source: weedezign via Shutterstock
TTM Yield: 6.35%
Omnicom Group (NYSE:OMC), a major player in the advertising world, operates under the radar but profoundly impacts your daily consumer experience. Serving industry giants such as Apple (NASDAQ:AAPL) and McDonald’s (NYSE:MCD), Omnicom’s impressive adaptation to the digital age means it’s here to stay with plans for Web 3 expansion. This successful transition and continuous innovation hint at sustained growth in an increasingly digitalizedglobal market
Omnicom bolsters a substantial and reliable dividend yield through strategic stock buybacks, reducing the number of shares in circulation and boosting prices for those remaining. Prudently, its management prefers staking excess earnings on improving shareholder positioning instead of speculative expansion in today’s economy. The technique offers an arguably superior return by limiting the tax implications for investors.
Still, with a payout ratio comfortably under 50%, Omnicom retains a significant cash reserve, empowering it to seize opportunities for expansion and acquisitions in the evolving advertising landscape.
A distinguishing feature of Omnicom’s corporate resiliency trajectory is its predominantly organic and grassroots operations rather than a reliance on acquiring smaller companies or merging with rivals. This testifies to the firm’s robust adaptability and potential for future market capture as less well-managed competitors falter when facing higher interest rates.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
TTM Yield: 4.43%
The rollercoaster ride of medical stocks during the pandemic understandably created an air of caution among investors. Medtronic Plc (NYSE:MDT) was not immune, as its share price fell ill compared to its peak during the health crisis. Surprising many, though, Medtronic went off life support and is gradually recovering in 2023.
Despite setbacks, the current pricing offers an income antidote when viewed in conjunction with Medtronic’s steadfast commitment to its dividend program. The firm has a nearly five-decade history of consistent dividend increases. Additionally, the CFO pledged a return of at least half its free cash flow to shareholders through 2023.
As a recognized innovator and medical device industry leader, Medtronic capitalizes on its innovative culture to engage in cooperative, risk-based agreements with hospital networks. These partnerships aim to enhance patient outcomes and curb healthcare costs, making Medtronic an appealing collaborator in a climate of escalating healthcare expenses. This strategy and its continuous technological advancements suggest that Medtronic could be poised for future growth while maintaining its status as a top income stock today.
Realty Income (O)
Source: Shutterstock
TTM Yield: 4.96%
Income-focused investors should also consider Realty Income (NYSE:O), a real estate investment trust (REIT) widely known as the “monthly dividend company.” Its commitment to delivering monthly dividends makes it a unique proposition in an uncertain market environment, even as the broad real estate sector begins stumbling.
With a solid portfolio of commercial properties and consistent occupancy rates, Realty Income consistently distributes dividends to its investors. This consistent income stream and potential capital appreciation make it a go-to option for income-focused investors navigating a rising interest-rate scenario.
For land-shy investors understandably avoiding real estate due to ballooning mortgages, rest assured that Realty Income’s leasees are as reliable as they come and include consumer staples like FedEx (NYSE:FDX), CVS Health (NYSE:CVS) and Lowe’s (NYSE:LOW).
On the date of publication, Jeremy Flint held a long position in MDT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
The post The 3 Best Income Stocks to Buy in a Rising-Interest-Rate Scenario 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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Serving industry giants such as Apple (NASDAQ:AAPL) and McDonald’s (NYSE:MCD), Omnicom’s impressive adaptation to the digital age means it’s here to stay with plans for Web 3 expansion. This successful transition and continuous innovation hint at sustained growth in an increasingly digitalizedglobal market Omnicom bolsters a substantial and reliable dividend yield through strategic stock buybacks, reducing the number of shares in circulation and boosting prices for those remaining. Still, with a payout ratio comfortably under 50%, Omnicom retains a significant cash reserve, empowering it to seize opportunities for expansion and acquisitions in the evolving advertising landscape.
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Serving industry giants such as Apple (NASDAQ:AAPL) and McDonald’s (NYSE:MCD), Omnicom’s impressive adaptation to the digital age means it’s here to stay with plans for Web 3 expansion. Omnicom Group (OMC) Source: weedezign via Shutterstock TTM Yield: 6.35% Omnicom Group (NYSE:OMC), a major player in the advertising world, operates under the radar but profoundly impacts your daily consumer experience. Realty Income (O) Source: Shutterstock TTM Yield: 4.96% Income-focused investors should also consider Realty Income (NYSE:O), a real estate investment trust (REIT) widely known as the “monthly dividend company.” Its commitment to delivering monthly dividends makes it a unique proposition in an uncertain market environment, even as the broad real estate sector begins stumbling.
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Serving industry giants such as Apple (NASDAQ:AAPL) and McDonald’s (NYSE:MCD), Omnicom’s impressive adaptation to the digital age means it’s here to stay with plans for Web 3 expansion. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Rising rates mean many risk-averse investors are flocking to short-term Treasuries, but for traders who prefer a little more action with greater upside potential, income stocks are having their moment in the spotlight. Realty Income (O) Source: Shutterstock TTM Yield: 4.96% Income-focused investors should also consider Realty Income (NYSE:O), a real estate investment trust (REIT) widely known as the “monthly dividend company.” Its commitment to delivering monthly dividends makes it a unique proposition in an uncertain market environment, even as the broad real estate sector begins stumbling.
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Serving industry giants such as Apple (NASDAQ:AAPL) and McDonald’s (NYSE:MCD), Omnicom’s impressive adaptation to the digital age means it’s here to stay with plans for Web 3 expansion. Dividend and stable, high-yield stocks offer reasonably predictable income without sacrificing market excitement or capital return opportunity. This strategy and its continuous technological advancements suggest that Medtronic could be poised for future growth while maintaining its status as a top income stock today.
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15702.0
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2023-05-23 00:00:00 UTC
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US STOCKS-Wall St ends sharply lower on deadlocked debt ceiling talks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-sharply-lower-on-deadlocked-debt-ceiling-talks
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nan
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nan
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By Saeed Azhar and Shreyashi Sanyal
NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks.
Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
Debt limit worries pushed yields on one-month Treasury bills US1MT=RR to record highs at 5.888%. US/
Investors are also waiting for minutes from the Federal Reserve's May 2-3 meeting, due on Wednesday, to assess the central bank's next likely move on interest rates.
Regional Fed Presidents James Bullard and Neel Kashkari on Monday indicated that the U.S. central bank may need to continue hiking rates if inflation remains high.
Michael Wilson, Morgan Stanley's equity strategist, said a U.S. debt default is not priced into the market. Even if the two sides agree on a deal, it could still have implications for economic growth, he said.
"If they come to an agreement on the debt ceiling, there will be some concessions on the fiscal spending. It's an issue for growth," Wilson said. "Is that going to be an immediate impact, or will it be later? We think there's a bit of both. At the end of the day, there's no positive tradeoff."
The S&P 500 benchmark index .SPX declined 1.12% to end at 4,145.58 points. The Nasdaq Composite .IXIC fell 1.26% to 12,560.25 points, and the Dow Jones Industrial Average .DJI slid 0.69% to 33,055.51 points.
Volume on U.S. exchanges was relatively light, with 10.3 billion shares traded, compared to an average of 10.6 billion shares over the previous 20 sessions.
Strategists polled by Reuters see the S&P 500 ending the year at 4,150 points, down slightly from Monday's close of 4,192.63.
Helping limit larger 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 sign 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.Oadvanced 1.2% 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 1.5%.
Zoom Video Communications ZM.O dropped over 8% after the video conferencing platform reported its slowest quarterly revenue growth.
Among retail earnings, Lowe's Companies Inc LOW.N cut its annual comparable sales forecast, as demand dwindles for home improvement goods. Lowe's ended up 1.7%.
Shares of regional lenders extended gains from Monday, led by a 7.9% gain in PacWest Bancorp PACW.O, with the KBW regional banking index <.KRX> rising 0.9%.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 3.5-to-one ratio.
The S&P 500 posted three new highs and one new low; the Nasdaq recorded 90 new highs and 70 new lows.
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and Saeed Azhar and Noel Randewich in New York; Editing by Vinay Dwivedi and Richard Chang)
((Saeed.Azhar@thomsonreuters.com ; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom IncAVGO.Oadvanced 1.2% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
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Broadcom IncAVGO.Oadvanced 1.2% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Volume on U.S. exchanges was relatively light, with 10.3 billion shares traded, compared to an average of 10.6 billion shares over the previous 20 sessions.
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Broadcom IncAVGO.Oadvanced 1.2% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
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Broadcom IncAVGO.Oadvanced 1.2% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. Regional Fed Presidents James Bullard and Neel Kashkari on Monday indicated that the U.S. central bank may need to continue hiking rates if inflation remains high. The S&P 500 benchmark index .SPX declined 1.12% to end at 4,145.58 points.
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15703.0
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2023-05-23 00:00:00 UTC
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US STOCKS-Wall St ends sharply lower as deadlocked debt ceiling talks spook investors
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-sharply-lower-as-deadlocked-debt-ceiling-talks-spook-investors
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nan
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nan
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By Saeed Azhar and Shreyashi Sanyal
NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks.
Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
Debt limit worries pushed yields on one-month Treasury bills US1MT=RR to record highs at 5.888%. US/
Investors are also waiting for minutes from the Federal Reserve's May 2-3 meeting, due on Wednesday, to assess the central bank's next likely move on interest rates.
Regional Fed Presidents James Bullard and Neel Kashkari on Monday indicated that the U.S. central bank may need to continue hiking rates if inflation remains high.
Michael Wilson, Morgan Stanley's equity strategist, said a U.S. debt default is not priced into the market. Even if the two sides agree on a deal, it could still have implications for economic growth, he said.
"If they come to an agreement on the debt ceiling, there will be some concessions on the fiscal spending. It's an issue for growth," Wilson said. "Is that going to be an immediate impact, or will it be later? We think there's a bit of both. At the end of the day, there's no positive tradeoff."
Strategists polled by Reuters see the S&P 500 benchmark index ending the year at 4,150 points, down slightly from Monday's close of 4,192.63.
Helping limit larger 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 sign 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 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.
Zoom Video Communications ZM.O dropped after the video conferencing platform reported its slowest quarterly revenue growth.
Among retail earnings, Lowe's Companies Inc LOW.N cut its annual comparable sales forecast, as demand dwindles for home improvement goods. Lowe's rebounded from initial losses.
Shares of regional lenders extended gains from Monday, led by a sharp rise in PacWest Bancorp PACW.O, with the KBW regional banking index .KRX hitting a three-week high.
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and Saeed Azhar and Noel Randewich in New York; Editing by Vinay Dwivedi and Richard Chang)
((Saeed.Azhar@thomsonreuters.com ; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Broadcom IncAVGO.O advanced after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
|
Broadcom IncAVGO.O advanced after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
|
Broadcom IncAVGO.O advanced after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.
|
Broadcom IncAVGO.O advanced after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 23 (Reuters) - Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Regional Fed Presidents James Bullard and Neel Kashkari on Monday indicated that the U.S. central bank may need to continue hiking rates if inflation remains high.
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15704.0
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2023-05-23 00:00:00 UTC
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Technology Sector Update for 05/23/2023: RKLB, AAPL, AVGO, AMZN
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-23-2023%3A-rklb-aapl-avgo-amzn
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nan
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nan
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Tech stocks were lower late Tuesday with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% and the Philadelphia Semiconductor index shedding 0.9%.
In company news, Rocket Lab USA (RKLB) will buy the primary rocket factory in California of the bankrupt Virgin Orbit for $16 million, Bloomberg reported. Rocket Lab shares fell 9%.
EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple shares were shedding 1.4%.
Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) for the chipmaker to develop and build 5G components and other wireless technology in the US to be used in the iPhone maker's devices. Broadcom was up 1.3%.
Amazon (AMZN) allegedly violated US federal labor laws by firing union supporters and changing policies unilaterally at its only unionized warehouse, the National Labor Relations Board said in a filing that also accuses Chief Executive Officer Andy Jassy of making illegal anti-union comments, Bloomberg reported. Amazon shares were little changed.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) for the chipmaker to develop and build 5G components and other wireless technology in the US to be used in the iPhone maker's devices. EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Tech stocks were lower late Tuesday with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% and the Philadelphia Semiconductor index shedding 0.9%.
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EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) for the chipmaker to develop and build 5G components and other wireless technology in the US to be used in the iPhone maker's devices. Rocket Lab shares fell 9%.
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EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) for the chipmaker to develop and build 5G components and other wireless technology in the US to be used in the iPhone maker's devices. Amazon (AMZN) allegedly violated US federal labor laws by firing union supporters and changing policies unilaterally at its only unionized warehouse, the National Labor Relations Board said in a filing that also accuses Chief Executive Officer Andy Jassy of making illegal anti-union comments, Bloomberg reported.
|
EU regulators appealed to the bloc's highest court to override a lower tribunal and make Apple (AAPL) pay 13 billion euros ($14.3 billion) in Irish taxes, Reuters reported. Apple (AAPL) said it signed a "multibillion-dollar" agreement with Broadcom (AVGO) for the chipmaker to develop and build 5G components and other wireless technology in the US to be used in the iPhone maker's devices. Rocket Lab shares fell 9%.
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15705.0
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2023-05-23 00:00:00 UTC
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Apple Just Announced a Multibillion-Dollar Deal With Broadcom -- Here's What Investors Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-just-announced-a-multibillion-dollar-deal-with-broadcom-heres-what-investors-should
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nan
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nan
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In early 2018, Apple (NASDAQ: AAPL) announced plans to invest $350 billion in the U.S. economy. At the time, the company said this set of investments would be concentrated on those areas where Apple could have the "greatest impact on job creation." These included direct employee hiring, spending and investment involving domestic manufacturers and suppliers, and fueling the "fast-growing app economy."
The tech giant later raised that commitment to $430 billion over five years, including a proposed campus in North Carolina and greater investment in 5G technology.
Apple just took another big step in fulfilling its pledge, striking a multiyear, multibillion-dollar deal with chipmaker Broadcom (NASDAQ: AVGO) to create components for its devices that will be made in the U.S.
Image source: Getty Images.
A big focus on 5G
In a press release on Tuesday, Apple said it struck a major deal with Broadcom for a variety of 5G radio frequency components. The technology, which will be developed by Broadcom, will include Film Bulk Acoustic Resonator (FBAR) filters, which are precision electronic filters that help focus inbound and outbound wireless signals, while reducing interference, which ensures it transmits and receives only those communications intended for that specific device.
The agreement also covers a number of other "cutting-edge wireless connectivity components." Apple noted that the FBAR filters would be "designed and built in several key American manufacturing and technology hubs, including Fort Collins, Colorado, where Broadcom has a major facility." Apple said it already helps support 1,100 jobs at the plant and "the partnership will enable Broadcom to continue to invest in critical automation projects and upskilling with technicians and engineers."
A regulatory filing by Broadcom revealed the company had entered into two separate multiyear agreements with Apple, "for the supply of a range of specified high-performance RF and wireless components and modules for use in Apple products." The filing was mum as to the specific value of each deal.
Apple launched its 5G-enabled iPhone in 2020 and has since expanded the technology to other devices including the iPad Pro and Apple Watch.
Broadcom investors rejoice
This is welcome news for Broadcom shareholders, who have been justifiably concerned about the prospect of losing a large portion of its annual sales from the iPhone maker. In recent months, there have been multiple reports suggesting that Apple planned to part ways with Broadcom, replacing a number of Wi-Fi and Bluetooth processors in favor of chips of its own design.
The iPhone maker is reportedly Broadcom's largest single customer in its most recent fiscal year, representing roughly 20% of Broadcom's revenue, or about $7 billion. If the reports were true, it was expected to hit Broadcom's sales to the tune of $1 billion to $1.5 billion, according to estimates by AB Bernstein analyst Stacy Rasgon.
What it means for Apple
Like so many companies, Apple struggled with supply chain and logistics issues during the pandemic. Over the past couple of years, the company was hit by widespread product delays due to its heavy dependance on manufacturers in China and the concentration of its suppliers.
Since then, Apple has been working to restructure its supply chain to reduce its reliance on the country, after suffering a supply shortage of its signature iPhone during its crucial holiday season as well as longer-than-normal shipping delays. Apple has been expanding its manufacturing into new countries, including Vietnam, Malaysia, and India, to reduce this risk. Furthermore, Apple will be moving the production of some of its semiconductors to a new foundry in Arizona, being constructed by Taiwan Semiconductor Manufacturing.
While there's no way to quantify the deal for Apple, this is just another sign of the progress the company is making to reduce the risk of future supply chain disruptions.
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Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. 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 early 2018, Apple (NASDAQ: AAPL) announced plans to invest $350 billion in the U.S. economy. Apple just took another big step in fulfilling its pledge, striking a multiyear, multibillion-dollar deal with chipmaker Broadcom (NASDAQ: AVGO) to create components for its devices that will be made in the U.S. Apple noted that the FBAR filters would be "designed and built in several key American manufacturing and technology hubs, including Fort Collins, Colorado, where Broadcom has a major facility."
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In early 2018, Apple (NASDAQ: AAPL) announced plans to invest $350 billion in the U.S. economy. 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 Taiwan Semiconductor Manufacturing.
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In early 2018, Apple (NASDAQ: AAPL) announced plans to invest $350 billion in the U.S. economy. A regulatory filing by Broadcom revealed the company had entered into two separate multiyear agreements with Apple, "for the supply of a range of specified high-performance RF and wireless components and modules for use in Apple products." Apple launched its 5G-enabled iPhone in 2020 and has since expanded the technology to other devices including the iPad Pro and Apple Watch.
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In early 2018, Apple (NASDAQ: AAPL) announced plans to invest $350 billion in the U.S. economy. A regulatory filing by Broadcom revealed the company had entered into two separate multiyear agreements with Apple, "for the supply of a range of specified high-performance RF and wireless components and modules for use in Apple products." The iPhone maker is reportedly Broadcom's largest single customer in its most recent fiscal year, representing roughly 20% of Broadcom's revenue, or about $7 billion.
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15706.0
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2023-05-23 00:00:00 UTC
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Apple Announces Deal With Broadcom For Component Manufacturing In U.S.
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AAPL
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https://www.nasdaq.com/articles/apple-announces-deal-with-broadcom-for-component-manufacturing-in-u.s.
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) Tuesday announced a new multiyear, multibillion-dollar agreement with the U.S. technology and manufacturing company Broadcom.
As per the agreement, Broadcom will develop 5G radio frequency components - including FBAR filters - and cutting-edge wireless connectivity components.
The tech major plans to design FBAR filters and manufacture them in several key American manufacturing and technology hubs, including Fort Collins, Colorado.
Apple's CEO Tim Cook said. "All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America's future."
5G technology is shaping the future of next-generation consumer electronics
Apple noted that it is spending tens of billions of dollars to develop this field in the U.S. as 5G technology is shaping the future of next-generation consumer electronics.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) Tuesday announced a new multiyear, multibillion-dollar agreement with the U.S. technology and manufacturing company Broadcom. "All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America's future." 5G technology is shaping the future of next-generation consumer electronics Apple noted that it is spending tens of billions of dollars to develop this field in the U.S. as 5G technology is shaping the future of next-generation consumer electronics.
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(RTTNews) - Apple Inc. (AAPL) Tuesday announced a new multiyear, multibillion-dollar agreement with the U.S. technology and manufacturing company Broadcom. As per the agreement, Broadcom will develop 5G radio frequency components - including FBAR filters - and cutting-edge wireless connectivity components. The tech major plans to design FBAR filters and manufacture them in several key American manufacturing and technology hubs, including Fort Collins, Colorado.
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(RTTNews) - Apple Inc. (AAPL) Tuesday announced a new multiyear, multibillion-dollar agreement with the U.S. technology and manufacturing company Broadcom. The tech major plans to design FBAR filters and manufacture them in several key American manufacturing and technology hubs, including Fort Collins, Colorado. 5G technology is shaping the future of next-generation consumer electronics Apple noted that it is spending tens of billions of dollars to develop this field in the U.S. as 5G technology is shaping the future of next-generation consumer electronics.
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(RTTNews) - Apple Inc. (AAPL) Tuesday announced a new multiyear, multibillion-dollar agreement with the U.S. technology and manufacturing company Broadcom. As per the agreement, Broadcom will develop 5G radio frequency components - including FBAR filters - and cutting-edge wireless connectivity components. The tech major plans to design FBAR filters and manufacture them in several key American manufacturing and technology hubs, including Fort Collins, Colorado.
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15707.0
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2023-05-23 00:00:00 UTC
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3 Chip Stocks Suited Nicely for Income Investors
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AAPL
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https://www.nasdaq.com/articles/3-chip-stocks-suited-nicely-for-income-investors-0
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nan
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nan
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After a rough showing in 2022, many semiconductor stocks are back in style in 2023, delivering outsized gains. SOXX, the iShares Semiconductor ETF, is up more than 25% year-to-date, widely outperforming the S&P 500.
For those with an interest in exposure to chips paired with a passive income stream, three stocks – Texas Instruments TXN, NXP Semiconductors NXPI, and Broadcom AVGO – could all be considerations.
Let’s take a closer look at each.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. AVGO shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple AAPL for components made in the USA.
The company has consistently grown its dividend payout, boasting an impressive 20% five-year annualized dividend growth rate. Shares currently yield 2.7% annually, more than triple the Zacks Computer and Technology sector average.
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
Keep an eye open for Broadcom’s upcoming quarterly release on June 1st; the Zacks Consensus EPS Estimate of $10.13 suggests an 11% climb in earnings year-over-year. It’s worth noting that the quarterly estimate has remained unchanged over the last several months.
NXP Semiconductors
NXP Semiconductors is a global semiconductor company providing high-performance mixed signal and standard product solutions used in various applications. Analysts have raised their expectations across the board, helping land the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares currently yield 2.3% annually, with the company’s payout growing by an impressive 40% over the last five years. Similar to AVGO, NXPI’s current yield easily crushes the Zacks sector average.
Image Source: Zacks Investment Research
NXPI shares could also entice value-focused investors, with the current 13.4X forward earnings multiple sitting nicely beneath the 16.9X five-year median and highs of 25.1X in 2022. The stock carries a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits. Like those above, TXN has had little issue increasingly rewarding its shareholders, sporting a 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The company has a stellar earnings track record, exceeding earnings and revenue expectations in six consecutive quarters. Just in its latest release, TXN posted a 5% EPS surprise and reported revenue modestly above estimates.
Shares didn’t see a great reaction post-earnings but have since found buyers, as we can see illustrated in the chart below.
Image Source: Zacks Investment Research
Bottom Line
Semiconductors are back in style in 2023 after a harsh 2022, with many delivering positive returns year-to-date.
And for those with an appetite for exposure paired with an income stream, all three stocks above – Texas Instruments TXN, NXP Semiconductors NXPI, and Broadcom AVGO – fit the criteria nicely.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI) : 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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AVGO shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple AAPL for components made in the USA. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those with an interest in exposure to chips paired with a passive income stream, three stocks – Texas Instruments TXN, NXP Semiconductors NXPI, and Broadcom AVGO – could all be considerations.
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Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. AVGO shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple AAPL for components made in the USA. Image Source: Zacks Investment Research Texas Instruments Texas Instruments is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits.
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Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. AVGO shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple AAPL for components made in the USA. Image Source: Zacks Investment Research Keep an eye open for Broadcom’s upcoming quarterly release on June 1st; the Zacks Consensus EPS Estimate of $10.13 suggests an 11% climb in earnings year-over-year.
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AVGO shares found plenty of attention following news of a new multiyear, multibillion-dollar deal with heavyweight Apple AAPL for components made in the USA. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Keep an eye open for Broadcom’s upcoming quarterly release on June 1st; the Zacks Consensus EPS Estimate of $10.13 suggests an 11% climb in earnings year-over-year.
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2023-05-23 00:00:00 UTC
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Top Stocks To Buy Now? 3 Tech Stocks To Know
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AAPL
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https://www.nasdaq.com/articles/top-stocks-to-buy-now-3-tech-stocks-to-know
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nan
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nan
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The technology sector is a category of the stock market that encompasses companies that are primarily engaged in the creation, development, and distribution of technological products and services. This can include a diverse range of companies, from giants like Apple (NASDAQ: AAPL), who make gadgets like iPhones and MacBooks, to social media platforms like Meta Platforms (NASDAQ: META). These companies work to innovate and improve our everyday lives, making things easier, faster, and more connected.
Tech stocks are shares in these technology companies that you can buy and sell. When you buy a tech stock, you’re buying a tiny piece of that company, making you a partial owner. If the company does well, the price of the stock might go up and you could make money if you decide to sell your shares. But if the company doesn’t do well, the price of the stock could fall and you could lose money.
The tech sector is known for its potential for high growth. That’s because technology is always changing and evolving, and companies that can keep up with these changes have the potential to grow rapidly. But there’s also risk involved: competition in the tech sector is fierce, and companies that can’t keep up can quickly fall behind. So, while investing in tech stocks can be a good way to potentially make money, it’s also important to do your homework and understand the companies you’re investing in. With that being said, here are three trending tech stocks to watch in thestock market today
Tech Stocks To Watch In The Stock Market Today
Advanced Micro Devices Inc. (NASDAQ: AMD)
Uber Technologies Inc. (NYSE: UBER)
Intuit Inc. (NASDAQ: INTU)
Advanced Micro Devices (AMD Stock)
Starting off, Advanced Micro Devices (AMD) is a multinational company that specializes in developing computer processors and related technologies for both business and consumer markets. Known for its CPU and GPU products, with a significant presence in gaming, professional graphics, and data center industries.
A few weeks ago, Advanced Micro Devices unveiled the financial outcomes for the first quarter of 2023. A closer look shows the tech giant reported earnings of $0.57 for each share, coupled with total revenue of $5.4 billion. This result surpasses the forecasted projections from market analysts, who had anticipated earnings of $0.56 per share and revenue hitting the $5.3 billion mark. Furthermore, AMD provided a projection for its Q2 2023 revenue, estimating it to range between $5.00 and $5.60 billion.
Moving along, during Tuesday’s mid-morning trading session, shares of AMD stock are trading up on the day by 1.92% at $110.07 per share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch In May 2023
Uber Technologies (UBER Stock)
Second, Uber Technologies (UBER) is a well-known tech company that revolutionized the transportation industry by introducing a ride-hailing service through a smartphone app. Besides offering rides, Uber has expanded its services to include food delivery (Uber Eats) and freight transportation.
At the beginning of May, Uber reported its results for the first quarter of 2023. Diving, the company showed a loss of $0.08 per share with revenue of $8.8 billion for Q1 2023. This was versus analysts’ consensus estimates for the quarter which were a loss of $0.10 per share with revenue of $8.7 billion. As a result, revenue increased by 28.7% compared to the same period, the previous year.
Aside from that, during Tuesday’s mid-morning trading session, UBER stock is trading higher off the open by 0.66% at $39.44 per share.
Source: TD Ameritrade TOS
[Read More] 2 AI Stocks To Watch In May 2023
Intuit (INTU Stock)
Last but not least, Intuit (INTU) is a financial software company that provides innovative solutions for personal finance and small business accounting. Some of its most well-known products include TurboTax, software for personal and business tax preparation, and QuickBooks, a comprehensive tool for small business management.
At the end of last month, Intuit reported the date and time it will release its third quarter 2023 financial results. Diving in, the company announced it will report its Q3 2023 earnings results today, Tuesday, May 23, 2023, after the close of the U.S. stock market.
Meanwhile, during Tuesday’s mid-morning trading action, shares of INTU stock are trading up on the day by 0.53% at $456.51 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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This can include a diverse range of companies, from giants like Apple (NASDAQ: AAPL), who make gadgets like iPhones and MacBooks, to social media platforms like Meta Platforms (NASDAQ: META). These companies work to innovate and improve our everyday lives, making things easier, faster, and more connected. This result surpasses the forecasted projections from market analysts, who had anticipated earnings of $0.56 per share and revenue hitting the $5.3 billion mark.
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This can include a diverse range of companies, from giants like Apple (NASDAQ: AAPL), who make gadgets like iPhones and MacBooks, to social media platforms like Meta Platforms (NASDAQ: META). With that being said, here are three trending tech stocks to watch in thestock market today Tech Stocks To Watch In The Stock Market Today Advanced Micro Devices Inc. (NASDAQ: AMD) Uber Technologies Inc. (NYSE: UBER) Intuit Inc. (NASDAQ: INTU) Advanced Micro Devices (AMD Stock) Starting off, Advanced Micro Devices (AMD) is a multinational company that specializes in developing computer processors and related technologies for both business and consumer markets. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch In May 2023 Uber Technologies (UBER Stock) Second, Uber Technologies (UBER) is a well-known tech company that revolutionized the transportation industry by introducing a ride-hailing service through a smartphone app.
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This can include a diverse range of companies, from giants like Apple (NASDAQ: AAPL), who make gadgets like iPhones and MacBooks, to social media platforms like Meta Platforms (NASDAQ: META). With that being said, here are three trending tech stocks to watch in thestock market today Tech Stocks To Watch In The Stock Market Today Advanced Micro Devices Inc. (NASDAQ: AMD) Uber Technologies Inc. (NYSE: UBER) Intuit Inc. (NASDAQ: INTU) Advanced Micro Devices (AMD Stock) Starting off, Advanced Micro Devices (AMD) is a multinational company that specializes in developing computer processors and related technologies for both business and consumer markets. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch In May 2023 Uber Technologies (UBER Stock) Second, Uber Technologies (UBER) is a well-known tech company that revolutionized the transportation industry by introducing a ride-hailing service through a smartphone app.
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This can include a diverse range of companies, from giants like Apple (NASDAQ: AAPL), who make gadgets like iPhones and MacBooks, to social media platforms like Meta Platforms (NASDAQ: META). Tech stocks are shares in these technology companies that you can buy and sell. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch In May 2023 Uber Technologies (UBER Stock) Second, Uber Technologies (UBER) is a well-known tech company that revolutionized the transportation industry by introducing a ride-hailing service through a smartphone app.
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2023-05-23 00:00:00 UTC
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Bulls vs. Bears - Who Will Emerge Victorious?
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AAPL
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https://www.nasdaq.com/articles/bulls-vs.-bears-who-will-emerge-victorious
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nan
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Currently, the stock market is at an interesting crossroads. As investors patiently wait for the outcome of the debt ceiling negotiations from Washington, the U.S. Federal Reserve Meeting Wednesday, and the fallout from the banking crisis, there is a lot to digest. To make matters more confusing, the different equity indexes are diverging from each other in the widest margin seen in years. For example, the tech-heavy Nasdaq 100 Index ETF (QQQ) is higher by an impressive 26% year-to-date while the Russell 2000 Index ETF (IWM) is higher by a measly 1% (albeit it’s had to deal with a regional banking crisis).
From an investor perspective it can seem like a daunting task to try to account for and factor into a strategy monetary policy changes, macro-economic factors, political negotiations, geopolitics, and more. I have found that the best way to overcome this confusion is to factor in historical stats, precedent, and above all, listen to what the price and volume action is telling us. With that in mind, I will break down the bear and bull case for the stock market at this point in time.
Bear Case:
Bearish Divergence: The Relative Strength Index (RSI) measures the momentum of a particular instrument.Presently,The RSI of the S&P 500 Index ETF (SPY) is showing a bearish divergence. Bearish divergences occur when the price of an asset makes new highs while momentum does not – an indication that momentum may be lagging.
Image Source: Zacks Investment Research
“Sell the News” Potential: Wall Street tends to be a discounting device – it prices in highly anticipated events ahead of time. Is the recent melt up in stocks an indication that a resolution is likely to be found for the current debt ceiling negotiations? If so, savvy investors may use the burst of enthusiasm to take some profits. In October of 2022, stocks did the exact opposite and bought the news after the highly anticipated “highest in 40 years” inflation data hit news wires. Consequently, the S&P 500 had a bullish divergence at the time.
Image Source: Zacks Investment Research
Pictured: RSI divergences can be key inflection points.
QQQ Distance from the 50-day Moving Average: Moving averages can be a valuable tool for investors because it can provide a reference point for trends. Uptrends tend to take two steps higher and one step lower, or three steps higher and two steps back. For investors, the best course of action is to avoid chasing trends and instead look to buy into support. Historically, when an index gets extended by 7% or more above the 50-day moving average it needs to correct – either through time or price. Late last week the QQQ index reached extended levels of 7% above the 50-day moving average.
Image Source: Zacks Investment Research
Sentiment: The CNN Fear and Greed Index measures sentiment through seven fear and greed indicators. The index is currently flashing the “greediest” levels since February – just before the market endured a multi-week correction.
Image Source: Zacks Investment Research
Bull Case:
Trends Tend to Persist: As Larry Hite once said, “the trend is your friend until the end when it bends”. Presently, QQQ and SPY are in classic uptrends. Price is above a rising 200-day moving average, the moving averages are stacked (faster moving averages above slower ones), and they are making higher highs and lower lows. Rarely does it pay to fight the predominant trend for more than a short-term trade.
Image Source: Zacks Investment Research
Innovation to Drive Future Earnings and Cut Costs: Many value investors are complaining about big tech valuations in companies such as Microsoft (MSFT) (trades at 34x) and Nvidia (NVDA) (94x). Though the valuations are undoubtedly lofty, using P/E as a timing device is a fool’s errand – especially in bull markets. Firstly, the internet bubble and many bull markets over the years provide investors with proof that p/e ratio can extend to nosebleed levels and stay there for months or years before a stock tops.
Image Source: Zacks Investment Research
Secondly, the AI revolution may boost earnings to a point where innovative companies like NVDA can “grow into them”. Even with this year’s monstrous move in stocks like Alphabet (GOOGL), MSFT, and NVDA, context is important. After the 2022 tech correction, all three stocks remain well below their highs, while growth is expected to catapult higher. For example, NVDA (which reports earnings Wednesday) is expected to announce record earnings in early 2024. Meanwhile, the share price is well below the all-time high price of $346 achieved in late 2021.
Image Source: Zacks Investment Research
History Tells Us that Price Bottoms Well Before Earnings: The past three major bear markets (2020 Covid Crash, 2008 Global Financial Crisis, & 2000 Internet Bubble) saw price bottom before earnings. Will it happen once again?
Image Source: Zacks Investment Research
Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market.
Potential for Broader Participation: Monday, IWM shot higher by 1.22%, outperforming the other major indices. Beaten down ARK Innovation ETF (ARKK) leapt higher by nearly 5%. Troubled auto retailed Carvana (CVNA) has more than doubled off lows. All the above point to evidence that weaker areas of the market may be finally stabilizing.
Putting it All Together
The bull and bear arguments laid out above suggest that the uptrend may need to pause and correct through time or price in the short-term. While there is little evidence to go short, new longs should be avoided until we get a pullback. Longer term, the evidence points to a bull market recovery.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
ARK Innovation ETF (ARKK): ETF Research Reports
Carvana Co. (CVNA) : 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 Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. As investors patiently wait for the outcome of the debt ceiling negotiations from Washington, the U.S. Federal Reserve Meeting Wednesday, and the fallout from the banking crisis, there is a lot to digest.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Image Source: Zacks Investment Research Sentiment: The CNN Fear and Greed Index measures sentiment through seven fear and greed indicators.
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Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research History Tells Us that Price Bottoms Well Before Earnings: The past three major bear markets (2020 Covid Crash, 2008 Global Financial Crisis, & 2000 Internet Bubble) saw price bottom before earnings.
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Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. With that in mind, I will break down the bear and bull case for the stock market at this point in time.
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15710.0
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2023-05-23 00:00:00 UTC
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Apple inks multi-billion-dollar deal with Broadcom for U.S.-made chips
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AAPL
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https://www.nasdaq.com/articles/apple-inks-multi-billion-dollar-deal-with-broadcom-for-u.s.-made-chips
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nan
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nan
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May 23 (Reuters) - Apple Inc AAPL.O on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc AVGO.O to use chips made in the United States.
Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said.
(Reporting by Stephen Nellis; Editing by Chizu Nomiyama)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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May 23 (Reuters) - Apple Inc AAPL.O on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc AVGO.O to use chips made in the United States. Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said. (Reporting by Stephen Nellis; Editing by Chizu Nomiyama) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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May 23 (Reuters) - Apple Inc AAPL.O on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc AVGO.O to use chips made in the United States. Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said. (Reporting by Stephen Nellis; Editing by Chizu Nomiyama) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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May 23 (Reuters) - Apple Inc AAPL.O on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc AVGO.O to use chips made in the United States. Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said. (Reporting by Stephen Nellis; Editing by Chizu Nomiyama) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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May 23 (Reuters) - Apple Inc AAPL.O on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc AVGO.O to use chips made in the United States. Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said. (Reporting by Stephen Nellis; Editing by Chizu Nomiyama) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15711.0
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2023-05-23 00:00:00 UTC
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Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-7
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A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
PRF is managed by Invesco, and this fund has amassed over $5.88 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.39% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.05%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 19.20% of the portfolio, the fund has heaviest allocation to the Financials sector; Information Technology and Healthcare round out the top three.
When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
PRF's top 10 holdings account for about 17.87% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco FTSE RAFI US 1000 ETF has added about 1.51% so far, and is up roughly 2.95% over the last 12 months (as of 05/23/2023). PRF has traded between $138.77 and $165.35 in this past 52-week period.
PRF has a beta of 1 and standard deviation of 18.09% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 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 Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.26 billion in assets, Vanguard Value ETF has $100.05 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, 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 Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, 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 Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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15712.0
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2023-05-23 00:00:00 UTC
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US STOCKS-Wall St set to open lower as debt ceiling talks remain deadlocked
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-debt-ceiling-talks-remain-deadlocked
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By Shreyashi Sanyal and Shristi Achar A
May 23 (Reuters) - Wall Street was set to open lower on Tuesday as another round of inconclusive talks over increasing the U.S. debt limit raised the spectre 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 on Monday, but vowed to keep talking.
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, while a megacaps-led bounce on the Nasdaq .IXIC helped it close the previous day higher.
"The markets have had some nice rallies over the past weeks and the debt ceiling talks are an excuse to be cautious here," said Peter Cardillo, chief market economist at Spartan Capital Securities
"The real reason for stalling the advance is the yields that continue to rise."
Worries over the debt limit pushed yields on one-month Treasury bills US1MT=RR to record highs at 5.888%. US/
Investors also await S&P Global's flash reading of the U.S. Composite PMI Index for May and Dallas Federal Reserve President Lorrie Logan's remarks due later in the day.
The Commerce Department's April personal consumption expenditure (PCE) index reading, the Fed's preferred inflation gauge, is due on Friday.
Megacaps were largely subdued with Meta Platforms Inc META.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O down between 0.2% and 0.4% in premarket trading.
Lowe's Companies Inc LOW.N fell 1.3% after the retailer cut its annual comparable sales forecast, as demand dwindles for home improvement goods with high inflation forcing consumers to cut back on discretionary spending.
Shares of larger rival Home Depot HD.N dipped 0.1%.
Dicks Sporting GoodsDKS.N added 2.5% after the retailer beat first-quarter estimates and reiterated its annual sales forecast.
At 8:28 a.m. ET, Dow e-minis 1YMcv1 were down 65 points, or 0.19%, S&P 500 e-minis EScv1 were down 9.75 points, or 0.23%, and Nasdaq 100 e-minis NQcv1 were down 35.5 points, or 0.26%.
Zoom Video Communications ZM.O fell 2.6% after the video conferencing platform recorded its slowest quarterly revenue growth.
Shares of regional lenders extended gains from the previous session, led by a 16.2% rise in PacWest Bancorp PACW.O.
Western Alliance Bank WAL.N, Zions Bancorporation NA ZION.O and First Horizon Corp FHN.N were up between 1% and 2.3%.
Global business activity https://tmsnrt.rs/3MpQeEJ
(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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Megacaps were largely subdued with Meta Platforms Inc META.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O down between 0.2% and 0.4% in premarket trading. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street was set to open lower on Tuesday as another round of inconclusive talks over increasing the U.S. debt limit raised the spectre of an unprecedented government default. 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, while a megacaps-led bounce on the Nasdaq .IXIC helped it close the previous day higher.
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Megacaps were largely subdued with Meta Platforms Inc META.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O down between 0.2% and 0.4% in premarket trading. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street was set to open lower on Tuesday as another round of inconclusive talks over increasing the U.S. debt limit raised the spectre of an unprecedented government default. Lowe's Companies Inc LOW.N fell 1.3% after the retailer cut its annual comparable sales forecast, as demand dwindles for home improvement goods with high inflation forcing consumers to cut back on discretionary spending.
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Megacaps were largely subdued with Meta Platforms Inc META.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O down between 0.2% and 0.4% in premarket trading. 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, while a megacaps-led bounce on the Nasdaq .IXIC helped it close the previous day higher. "The markets have had some nice rallies over the past weeks and the debt ceiling talks are an excuse to be cautious here," said Peter Cardillo, chief market economist at Spartan Capital Securities "The real reason for stalling the advance is the yields that continue to rise."
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Megacaps were largely subdued with Meta Platforms Inc META.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O down between 0.2% and 0.4% in premarket trading. By Shreyashi Sanyal and Shristi Achar A May 23 (Reuters) - Wall Street was set to open lower on Tuesday as another round of inconclusive talks over increasing the U.S. debt limit raised the spectre 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.
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15713.0
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2023-05-23 00:00:00 UTC
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Tech group AOM's video licensing policy no longer in EU antitrust crosshairs
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https://www.nasdaq.com/articles/tech-group-aoms-video-licensing-policy-no-longer-in-eu-antitrust-crosshairs
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By Foo Yun Chee
BRUSSELS, May 23 (Reuters) - The Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, on Tuesday dodged a possible fine after EU antitrust regulators closed an investigation into its video licensing policy.
The European Commission, which acts as the competition enforcer for the 27-country bloc, had been investigating alleged anti-competitive behaviour related to the licence terms of AOM's new standard software for streaming called AV1 since last year.
"The Alliance for Open Media (AOMedia) welcomes the news that the European Commission has today closed its preliminary review of AOMedia's royalty-free licensing policy without further action," AOM said in a statement.
"Royalty-free licensing forms a foundational element for technological standards and the open internet, fostering innovation, choice and competition in the interests of businesses and consumers in the European Union and worldwide," it said.
The Commission did not immediately respond to a request for comment.
AV1 is an open, royalty-free video coding software designed for video transmission over the internet, and is used by Netflix NFLX.O and YouTube as well as Google Chrome and Firefox.
Other AOM members are Netflix, Broadcom AVGO.O, Cisco CSCO.O, Tencent 0700.HK, Intel INTC.O, Huawei HWT.UL, Mozilla, Samsung 005930.KS and Nvidia NVDA.O.
Companies face fines of as much as 10% of their global turnover for breaching EU antitrust rules.
(Reporting by Foo Yun Chee; editing by Jason Neely)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, May 23 (Reuters) - The Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, on Tuesday dodged a possible fine after EU antitrust regulators closed an investigation into its video licensing policy. The European Commission, which acts as the competition enforcer for the 27-country bloc, had been investigating alleged anti-competitive behaviour related to the licence terms of AOM's new standard software for streaming called AV1 since last year. "Royalty-free licensing forms a foundational element for technological standards and the open internet, fostering innovation, choice and competition in the interests of businesses and consumers in the European Union and worldwide," it said.
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By Foo Yun Chee BRUSSELS, May 23 (Reuters) - The Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, on Tuesday dodged a possible fine after EU antitrust regulators closed an investigation into its video licensing policy. "The Alliance for Open Media (AOMedia) welcomes the news that the European Commission has today closed its preliminary review of AOMedia's royalty-free licensing policy without further action," AOM said in a statement. AV1 is an open, royalty-free video coding software designed for video transmission over the internet, and is used by Netflix NFLX.O and YouTube as well as Google Chrome and Firefox.
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By Foo Yun Chee BRUSSELS, May 23 (Reuters) - The Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, on Tuesday dodged a possible fine after EU antitrust regulators closed an investigation into its video licensing policy. The European Commission, which acts as the competition enforcer for the 27-country bloc, had been investigating alleged anti-competitive behaviour related to the licence terms of AOM's new standard software for streaming called AV1 since last year. "The Alliance for Open Media (AOMedia) welcomes the news that the European Commission has today closed its preliminary review of AOMedia's royalty-free licensing policy without further action," AOM said in a statement.
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By Foo Yun Chee BRUSSELS, May 23 (Reuters) - The Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, on Tuesday dodged a possible fine after EU antitrust regulators closed an investigation into its video licensing policy. The European Commission, which acts as the competition enforcer for the 27-country bloc, had been investigating alleged anti-competitive behaviour related to the licence terms of AOM's new standard software for streaming called AV1 since last year. "Royalty-free licensing forms a foundational element for technological standards and the open internet, fostering innovation, choice and competition in the interests of businesses and consumers in the European Union and worldwide," it said.
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15714.0
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2023-05-23 00:00:00 UTC
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US STOCKS-Wall St falls as deadlocked debt ceiling talks stoke default concerns
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-deadlocked-debt-ceiling-talks-stoke-default-concerns
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By Shreyashi Sanyal and Shristi Achar A
May 23 (Reuters) - Wall Street indexes fell 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. McCarthy said on Tuesday that a debt ceiling deal with the White House was not imminent.
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, while a megacaps-led bounce on the Nasdaq .IXIC helped it close the previous day higher.
"The markets have had some nice rallies over the past weeks and the debt ceiling talks are an excuse to be cautious here," said Peter Cardillo, chief market economist at Spartan Capital Securities
"The real reason for stalling the advance is the yields that continue to rise."
Worries over the debt limit pushed yields on one-month Treasury bills US1MT=RR to record highs at 5.888%. US/
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 1.3% 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 0.8%.
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 2.4%.
BJ's Wholesale Club Holdings IncBJ.N dropped 6.6% after the warehouse club operator missed first-quarter revenue estimates.
At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI was down 52.83 points, or 0.16%, at 33,233.75, the S&P 500 .SPX was down 9.67 points, or 0.23%, at 4,182.96, and the Nasdaq Composite .IXIC was down 21.97 points, or 0.17%, at 12,698.81.
Zoom Video Communications ZM.O fell 5.7% after the video conferencing platform recorded its slowest quarterly revenue growth.
Shares of regional lenders extended gains from the previous session, led by a 19.7% rise in PacWest Bancorp PACW.O.
Western Alliance Bank WAL.N, Zions Bancorp ZION.O, KeyCorp KEY.N and First Horizon Corp FHN.N rose between 2% and 4.6%.
Declining issues outnumbered advancers by a 1.01-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.25-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 31 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 1.3% 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 fell 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 1.3% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. McCarthy said on Tuesday that a debt ceiling deal with the White House was not imminent. Declining issues outnumbered advancers by a 1.01-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.25-to-1 ratio on the Nasdaq.
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Broadcom IncAVGO.O advanced 1.3% 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 fell 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. 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, while a megacaps-led bounce on the Nasdaq .IXIC helped it close the previous day higher.
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Broadcom IncAVGO.O advanced 1.3% after the chipmaker entered into a multi-billion-dollar deal with Apple Inc AAPL.O to use chips made in the United States. McCarthy said on Tuesday that a debt ceiling deal with the White House was not imminent. Apple shares fell 0.8%.
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15715.0
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2023-05-23 00:00:00 UTC
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Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-be-on-your-investing-radar-7
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Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) 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 $12.58 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
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.57%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.50% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 56.41% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has added about 26.20% so far this year and is up roughly 17.30% in the last one year (as of 05/23/2023). In the past 52-week period, it has traded between $168.21 and $217.45.
The ETF has a beta of 1.11 and standard deviation of 24.79% for the trailing three-year period, making it a medium risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap 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, MGK 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 $85.61 billion in assets, Invesco QQQ has $180.57 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.
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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 15.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 $12.58 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 Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) 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 Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) 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 15.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) 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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15716.0
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2023-05-23 00:00:00 UTC
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Quanta Computer to invest $1 bln in northern Mexico
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AAPL
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https://www.nasdaq.com/articles/quanta-computer-to-invest-%241-bln-in-northern-mexico
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nan
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nan
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Adds comment from Foxconn, details, paragraphs 9-12
MEXICO CITY, May 22 (Reuters) - Taiwan-based electronics manufacturer Quanta Computer 2382.TW will invest $1 billion in the northern Mexican state of Nuevo Leon, the company and state government said Monday.
Nuevo Leon Governor Samuel Garcia first announced the investment in a video shared to Twitter, adding that it would lead to the creation of 2,500 jobs.
Speaking from Quanta Computer's offices in Taiwan, Garcia said the investment reflected the potential of "" and was a sign of an economic boom in the state.
The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company's vice president of manufacturing operations in Mexico, told Reuters.
Campa did not say what the funds would go toward.
A Nuevo Leon spokesperson also confirmed the investment will expand Quanta's existing operations in the state.
Quanta Computer is a supplier to electric vehicle maker Tesla TSLA.O, which earlier this year announced it would build a worth $5 billion in Monterrey, Mexico's third-biggest city and an industrial hub.
Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn 2354.TW, a major Apple AAPL.O supplier, teasing on Twitter a "big announcement" soon.
Foxconn said in a statement that Garcia "comprehensively introduced the environment and opportunities for electric vehicle development in his state", adding the company will release any other information at a future date.
It gave no other details.
Foxconn, better known for assembling iPhones, has ambitions to become a big player in the EV industry as it seeks to diversify its revenue base.
The company, which already has factories in Mexico mainly making televisions and servers, has previously mentioned the country as a possible EV production site
(Reporting by Brendan O'Boyle, Kylie Madry, Valentine Hilaire and Daina Beth Solomon; Additional reporting by Ben Blanchard in Taipei; Editing by Kim Coghill and Stephen Coates)
((Brendan.OBoyle@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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Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn 2354.TW, a major Apple AAPL.O supplier, teasing on Twitter a "big announcement" soon. The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company's vice president of manufacturing operations in Mexico, told Reuters. Quanta Computer is a supplier to electric vehicle maker Tesla TSLA.O, which earlier this year announced it would build a worth $5 billion in Monterrey, Mexico's third-biggest city and an industrial hub.
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Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn 2354.TW, a major Apple AAPL.O supplier, teasing on Twitter a "big announcement" soon. Adds comment from Foxconn, details, paragraphs 9-12 MEXICO CITY, May 22 (Reuters) - Taiwan-based electronics manufacturer Quanta Computer 2382.TW will invest $1 billion in the northern Mexican state of Nuevo Leon, the company and state government said Monday. The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company's vice president of manufacturing operations in Mexico, told Reuters.
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Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn 2354.TW, a major Apple AAPL.O supplier, teasing on Twitter a "big announcement" soon. Adds comment from Foxconn, details, paragraphs 9-12 MEXICO CITY, May 22 (Reuters) - Taiwan-based electronics manufacturer Quanta Computer 2382.TW will invest $1 billion in the northern Mexican state of Nuevo Leon, the company and state government said Monday. The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company's vice president of manufacturing operations in Mexico, told Reuters.
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Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn 2354.TW, a major Apple AAPL.O supplier, teasing on Twitter a "big announcement" soon. Adds comment from Foxconn, details, paragraphs 9-12 MEXICO CITY, May 22 (Reuters) - Taiwan-based electronics manufacturer Quanta Computer 2382.TW will invest $1 billion in the northern Mexican state of Nuevo Leon, the company and state government said Monday. The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company's vice president of manufacturing operations in Mexico, told Reuters.
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15717.0
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2023-05-23 00:00:00 UTC
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3 Stocks Getting a Warren Buffett Boost
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AAPL
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https://www.nasdaq.com/articles/3-stocks-getting-a-warren-buffett-boost
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), led by renowned investor Warren Buffett, regularly updates shareholders with their current quarterly holdings. In the first quarter of 2023, the company reported changes made by Buffett and his investment officers, Todd Combs and Ted Weschler. These investments were disclosed as of March 31, 2023, pursuant to the 13F regulatory filing with the SEC.
If you’re considering improving your approach to investment, taking Buffett’s guidance might be a wise choice. Here are three of Warren Buffett’s favorite stocks in the first quarter of 2023.
Capital One Financial (COF)
Source: Northfoto / Shutterstock.com
Berkshire Hathaway added Capital One Financial (NYSE:COF) to its portfolio during the quarter, amid the regional bank crisis that caused a decline in bank stocks. As of March 31, 2023, Berkshire held over 9.9 million shares in Capital One, valued at $954 million.
Capital One specializes in providing credit cards and auto loans, but has also earned recognition for innovation. The company was featured in Fast Company’s 2023 Most Innovative Companies list for both business services and travel and hospitality. According to Fast Company’s Lydia Dishman, Capital One launched a business to business software in June 2022 that enables other large companies to use cloud and data management tools integral to their transformation into a cloud-based business.
Holdings of COF stock increased following Berkshire Hathaway’s reveal of its nearly $1 billion stake in the credit cards-focused bank. After a few weeks of losses, the price of the shares increased to highs not seen since the beginning of May.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
Considering the low energy costs, Occidental Petroleum (NYSE:OXY) had a great first quarter, generating exceptional free cash flow of $1.7 billion, or a yearly dividend of 13% to 14%. The company is expected to continue on an upward trend, potentially increasing buybacks and dividend payouts for shareholders.
Warren Buffett’s Berkshire Hathaway reportedly invested around $130 million in Occidental Petroleum equities as a component of its strategy to increase its stake in the oil giant.
In March, Berkshire purchased shares of Occidental Petroleum on two separate occasions. As an outcome, they now hold about a 23.6% share in the business, that’s worth $13 billion. Berkshire also has $10 billion in preferred stock and warrants to acquire $5 billion more shares at $59.62. There are speculations that Berkshire may eventually acquire over 50% of Occidental and potentially take over the entire company.
Occidental Petroleum concluded 2022 with robust proven reserves of 3.8 billion barrels of oil equivalent, reflecting a solid reserve foundation. The business has a strong asset inventory and is in a good position to produce profits for its investors.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Considering Apple (NASDAQ:AAPL) a unique blend of tech and consumer companies, AAPL stock started to enter Warren Buffett’s portfolio in 2016. He was impressed with the company’s popularity among his grandchildren who would spend hours on their iPhones. Buffett has also praised Apple’s CEO, Tim Cook.
Apple meets the investment standards of Buffett, including having a recognizable brand, a strong market position, reasonable valuations and an efficient capital return program. The business also boasts an outstanding staff of executives with a track record of paying dividends and purchasing shares to investors. Additionally, Apple has an impressive profit and loss profile in tech, with high gross and operating margins and a large net cash balance.
Apple’s robust brand strength enables it to command higher prices and its financials have been consistently strong. The company has been a historically profitable investment and the recent increase in iPhone sales in Q1 2023 has boosted its revenue. Despite a downturn in the U.S. market, Apple’s global brand recognition has helped mitigate the impact of declining iPhone sales domestically.
During Q2 2023 Apple achieved a revenue of $94.8 billion. Although the economic situation was challenging, Apple still set a record in services revenue. Additionally, the company saw a record March quarter in iPhone sales, generating $51.33 billion in revenue.
On the date of publication, Chris MacDonald has a position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Stocks Getting a Warren Buffett Boost 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 Considering Apple (NASDAQ:AAPL) a unique blend of tech and consumer companies, AAPL stock started to enter Warren Buffett’s portfolio in 2016. On the date of publication, Chris MacDonald has a position in AAPL. Warren Buffett’s Berkshire Hathaway reportedly invested around $130 million in Occidental Petroleum equities as a component of its strategy to increase its stake in the oil giant.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Considering Apple (NASDAQ:AAPL) a unique blend of tech and consumer companies, AAPL stock started to enter Warren Buffett’s portfolio in 2016. On the date of publication, Chris MacDonald has a position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), led by renowned investor Warren Buffett, regularly updates shareholders with their current quarterly holdings.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Considering Apple (NASDAQ:AAPL) a unique blend of tech and consumer companies, AAPL stock started to enter Warren Buffett’s portfolio in 2016. On the date of publication, Chris MacDonald has a position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), led by renowned investor Warren Buffett, regularly updates shareholders with their current quarterly holdings.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Considering Apple (NASDAQ:AAPL) a unique blend of tech and consumer companies, AAPL stock started to enter Warren Buffett’s portfolio in 2016. On the date of publication, Chris MacDonald has a position in AAPL. Warren Buffett’s Berkshire Hathaway reportedly invested around $130 million in Occidental Petroleum equities as a component of its strategy to increase its stake in the oil giant.
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15718.0
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2023-05-23 00:00:00 UTC
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EU seeks top court backing in $14 billion tax fight against Apple
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AAPL
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https://www.nasdaq.com/articles/eu-seeks-top-court-backing-in-%2414-billion-tax-fight-against-apple
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nan
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By Foo Yun Chee
LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes.
The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states.
"Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
The European Commission in a 2016 decision said two Irish tax rulings had for more than two decades artificially reduced Apple's tax burden, which was as low as 0.005% in 2014.
The General Court in 2020 said regulators had not met the legal standard to show Apple had enjoyed an unfair advantage.
But Loewenthal told judges at the Court of Justice that judgment was "legally flawed" and should be set aside.
Apple refuted the Commission's arguments, saying it had paid its fair share of taxes in the appropriate country.
"The profits we are talking about - the profits the Commission said should be attributed to these branches in Ireland - those profits were in fact subject to the U.S. tax regime," Daniel Beard told the Court.
"Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
"Apple has paid the taxes that were due under the Irish tax code."
The EU competition enforcer has suffered court losses in recent months to challenges by Fiat Chrysler, now known as Stellantis STLAM.MI, Amazon AMZN.O and Starbucks SBUX.O, although it had a legal victory when the CJEU in September took its side in a Belgian tax break case against a group of multinationals.
The case being heard on Tuesday is C-465/20 P Commission v Ireland and Others.
A ruling by the Court of Justice is expected in the coming months and would be the final word.
($1 = 0.9084 euros)
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU). "Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU). "Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
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15719.0
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2023-05-23 00:00:00 UTC
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Will Dividends Take Center Stage In The Second Half Of 2023?
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AAPL
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https://www.nasdaq.com/articles/will-dividends-take-center-stage-in-the-second-half-of-2023
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nan
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nan
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Plenty of individual stocks are notching outsized gains this year, with S&P 500 leaders Nvidia Corp. (NASDAQ: NVDA) and Meta Platforms Inc. (NASDAQ: META) more than doubling in price. Advanced Micro Devices Inc. (NASDAQ: AMD) leaped 63.38% higher on AI optimism, while even Royal Caribbean & plc (NYSE: RCL) is powering forward with a 61% year-to-date gain.
While there have certainly been numerous strong performers, could the broader market be flashing warning signs about what’s ahead for the second half of 2023?
Will a dividend strategy play a more prominent role?
A glimpse at the NYSE Composite chart illustrates how risk assets have traded essentially sideways in the past two-and-a-half years.
The NYSE Composite offers a comprehensive view of the broad market, as it includes a wide range of assets, such as common stocks, preferred stocks, real estate investment trusts, and American depositary receipts, which are foreign stocks that are listed on the NYSE.
As a broad market indicator, the NYSE Composite tracks large-cap, mid-cap, and small-cap stocks, providing a holistic view of overall market performance.
No Progress Since Early 2021
As you can see on the attached chart, there’s been no shortage of big up-and-down moves in the NYSE in the past two-and-a-half years, but we’re essentially seeing the same closing levels that we saw in February 2021.
So what could this mean for investors?
To answer that, let’s take a deeper look at the chart. The good news is that the index is holding above a floor set with October 2022 lows. The not-so-great news, at least in the near term, is that the NYSE composite is clearly having trouble overcoming resistance near the 16000 level.
If upside momentum is deteriorating, or at least stalling (which you can also spot using the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chart or the iShares Russell 3000 ETF (NYSEARCA: IWV) chart, then income, rather than pure price appreciation, may be a sound strategy for the second half of the year.
Serious investors who look at a return beyond just chart-chasing understand the importance of dividends.
According to a research report from the Hartford Funds, “The Power of Dividends: Past, Present, and Future,” a dividend reinvestment strategy accounted for 69% of the S&P 500’s total return between 1960 and 2022.
Avoid Chasing Yield
The Hartford report also noted that “investors seeking dividend-paying investments may make the mistake of simply choosing those that offer the highest yields possible.”
Remember: A stock’s yield can increase as its price decreases; it’s important to look at price and dividend in tandem. Ideally, you want to identify companies that can sustain or even grow the shareholder payout.
You can easily find companies with that kind of track record using MarketBeat’s Dividend Kings, Dividend Achievers and Dividend Aristocrats screens. Another screen, Dividend Increases, shows you companies, exchange-traded funds and REITs that recently increased their dividend payments.
You can also check the portfolio composition of the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG). This ETF seeks to track the performance of the S&P U.S. Dividend Growers Index. It’s fully invested with large-cap equity, emphasizing stocks with a record of growing dividends year over year.
Top holdings are some of the usual suspects, including Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), UnitedHealth Group Inc. (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ).
It’s not surprising that there are no “hidden gems” in that group. By their nature, longstanding dividend growers are companies that post increasing profits, year in and year out. Those won’t be young, exciting techs or biotechs that are putting profit back into fast-growth projects.
Pitfalls Of High Yield
One other note regarding dividend yield. Use caution with high-yield stocks. Sure, the idea of high yield sounds great, but that dividend may not be sustainable.
In addition, be aware that ETFs such as the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA: HYG) are comprised of below-investment-grade fixed income. In other words, these are high-yielding bonds of companies that have lower credit ratings because they may have trouble servicing their debt.
There can be a role in a portfolio for high-yield bonds, but it’s generally not a good idea to overload your asset mix with such risky instruments. If you want some high yield, be sure to balance that out with more steady dividend payers that are far more likely to assure you get some income, even if the market declines.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top holdings are some of the usual suspects, including Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), UnitedHealth Group Inc. (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ). Advanced Micro Devices Inc. (NASDAQ: AMD) leaped 63.38% higher on AI optimism, while even Royal Caribbean & plc (NYSE: RCL) is powering forward with a 61% year-to-date gain. A glimpse at the NYSE Composite chart illustrates how risk assets have traded essentially sideways in the past two-and-a-half years.
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Top holdings are some of the usual suspects, including Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), UnitedHealth Group Inc. (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ). As a broad market indicator, the NYSE Composite tracks large-cap, mid-cap, and small-cap stocks, providing a holistic view of overall market performance. If upside momentum is deteriorating, or at least stalling (which you can also spot using the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chart or the iShares Russell 3000 ETF (NYSEARCA: IWV) chart, then income, rather than pure price appreciation, may be a sound strategy for the second half of the year.
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Top holdings are some of the usual suspects, including Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), UnitedHealth Group Inc. (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ). The NYSE Composite offers a comprehensive view of the broad market, as it includes a wide range of assets, such as common stocks, preferred stocks, real estate investment trusts, and American depositary receipts, which are foreign stocks that are listed on the NYSE. Avoid Chasing Yield The Hartford report also noted that “investors seeking dividend-paying investments may make the mistake of simply choosing those that offer the highest yields possible.” Remember: A stock’s yield can increase as its price decreases; it’s important to look at price and dividend in tandem.
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Top holdings are some of the usual suspects, including Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), UnitedHealth Group Inc. (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ). The NYSE Composite offers a comprehensive view of the broad market, as it includes a wide range of assets, such as common stocks, preferred stocks, real estate investment trusts, and American depositary receipts, which are foreign stocks that are listed on the NYSE. As a broad market indicator, the NYSE Composite tracks large-cap, mid-cap, and small-cap stocks, providing a holistic view of overall market performance.
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15720.0
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2023-05-23 00:00:00 UTC
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EU seeks top court backing in $14 billion tax fight against Apple
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AAPL
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https://www.nasdaq.com/articles/eu-seeks-top-court-backing-in-%2414-billion-tax-fight-against-apple-0
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nan
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nan
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By Foo Yun Chee
LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes.
The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states.
"Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
The European Commission in a 2016 decision said two Irish tax rulings had for more than two decades artificially reduced Apple's tax burden, which was as low as 0.005% in 2014.
The General Court in 2020 said regulators had not met the legal standard to show Apple had enjoyed an unfair advantage.
But Loewenthal told judges at the Court of Justice that judgment was "legally flawed" and should be set aside.
Apple refuted the Commission's arguments, saying it had paid its fair share of taxes in the appropriate country.
"The profits we are talking about - the profits the Commission said should be attributed to these branches in Ireland - those profits were in fact subject to the U.S. tax regime," Daniel Beard told the Court.
"Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
"Apple has paid the taxes that were due under the Irish tax code."
The EU competition enforcer has suffered court losses in recent months to challenges by automaker Stellantis STLAM.MI, Amazon AMZN.O and Starbucks SBUX.O, although it had a legal victory when the CJEU in September took its side in a Belgian tax break case against a group of multinationals.
CJEU Advocate General Giovanni Pitruzzella will give a non-binding opinion on Nov. 9, followed by the Court's ruling.
The case being heard on Tuesday is C-465/20 P Commission v Ireland and Others.
($1 = 0.9084 euros)
(Reporting by Foo Yun Chee; editing by Barbara Lewis and Jason Neely)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. The case, which has far-reaching implications for corporate tax bills, is the most high-profile of EU antitrust chief Margrethe Vestager's campaign against sweetheart deals between multinationals and European Union states. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU).
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU). "Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
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By Foo Yun Chee LUXEMBOURG, May 23 (Reuters) - EU competition regulators appealed to the bloc's highest court on Tuesday to override a lower tribunal and make Apple AAPL.O pay a record 13 billion euros ($14.3 billion) in Irish back taxes. "Its outcome will determine whether member states may continue to grant multinational substantial tax breaks in return for jobs and investments," Commission lawyer Paul-John Loewenthal told the Court of Justice of the European Union (CJEU). "Apple built up reserves for the payment of those U.S. taxes and is paying around 20 billion euros in tax in the U.S. on those very same profits that the Commission says should have been taxed by Ireland," he said.
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15721.0
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2023-05-23 00:00:00 UTC
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TipRanks All-Star Analyst – Who is the Best on AAPL Stock?
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AAPL
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https://www.nasdaq.com/articles/tipranks-all-star-analyst-who-is-the-best-on-aapl-stock
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nan
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The TipRanks All-star Analyst of the Day title goes to Krish Sankar of research firm TD Cowen. One of the key stocks in his coverage is Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Sankar ranks #333 out of the 8,406 Wall Street analysts tracked by TipRanks.
Most Profitable and Accurate Analyst on AAPL Stock
When we look at Sankar’s recommendation for the multinational technology company Apple, we see that over the past year, Sankar has had a 96.15% success rate on the stock. Plus, he has earned average returns of 50.78% in the said period. It is noteworthy that about 21 days ago, Sankar reiterated a Buy rating on AAPL stock.
On an overall basis, copying Sankar’s trades and holding them for a year would give you an average return of 16.5%, with 61.11% of your trades generating a profit!
Not Just AAPL
Sankar’s main sector of coverage is Technology, which includes both the U.S. and U.K. markets. To date, Sankar’s most profitable rating was a Buy on solar energy company SolarCity, which was later acquired by Tesla (TSLA) in 2016. The analyst earned a massive 298.9% return on the call between January 7, 2013, and January 7, 2014.
Following phenomenally successful analysts’ ratings can add profit to your portfolio. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
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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One of the key stocks in his coverage is Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for the multinational technology company Apple, we see that over the past year, Sankar has had a 96.15% success rate on the stock. It is noteworthy that about 21 days ago, Sankar reiterated a Buy rating on AAPL stock.
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One of the key stocks in his coverage is Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for the multinational technology company Apple, we see that over the past year, Sankar has had a 96.15% success rate on the stock. It is noteworthy that about 21 days ago, Sankar reiterated a Buy rating on AAPL stock.
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One of the key stocks in his coverage is Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for the multinational technology company Apple, we see that over the past year, Sankar has had a 96.15% success rate on the stock. It is noteworthy that about 21 days ago, Sankar reiterated a Buy rating on AAPL stock.
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Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for the multinational technology company Apple, we see that over the past year, Sankar has had a 96.15% success rate on the stock. It is noteworthy that about 21 days ago, Sankar reiterated a Buy rating on AAPL stock. One of the key stocks in his coverage is Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst.
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15722.0
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2023-05-22 00:00:00 UTC
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Large-Cap Growth ETFs Actively Adding Value
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AAPL
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https://www.nasdaq.com/articles/large-cap-growth-etfs-actively-adding-value
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nan
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nan
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Large-cap growth ETFs continue to lead large-cap value ones in 2023. Through May 16, the iShares Russell 1000 Growth ETF (IWF) was up 16%, beating the iShares Russell 1000 Value ETF (IWD) by 1,700 basis points year-to-date. Meanwhile, the SPDR S&P 500 Growth ETF (SPYG) was up 11%, outperforming the SPDR S&P 500 Value ETF (SPYV) by 700 basis points over the same period.
In a prior research piece, I explored the reasons behind the performance difference of Russell- and S&P-based index products this year. The short version: Index providers disagree on whether stocks like Amazon (AMZN), Exxon Mobil (XOM), or Microsoft (MSFT) should be classified as growth stocks, value stocks, or both.
However, this relatively strong performance difference between growth and value has likely been the reason research into growth straetgies has been increasing recently across VettaFi’s platforms.
Growth ETF Engagement Stronger Than Value
Our Explorer data tool shows advisor research into both large-cap and total market growth ETFs (light purple) has been significantly higher than value ETFs (green) over the last three months. (However, growth strategies remain less popular than broad market products.)
[caption id="attachment_518880" align="aligncenter" width="650"] Over the past three months, growth strategies have seen more research on VettaFi than value strategies.[/caption]
However, if performance is what investors are looking for, then it's worth pointing out that some active ETFs from well-established managers have been performing even better than the index ETFs, easily justifying their premium. Yet many active growth ETFs remain under the radar.
I step through some of these hidden gems below:
T. Rowe Price: Strong Performance For Its Active ETFs
The T. Rowe Price Growth Stock ETF (TGRW) was up 21% to start 2023, but it has flown under the radar. This active equity ETF has just $42 million in assets.
TGRW invests in growth stocks with one or more of the following characteristics: strong cash flow and above-average earnings growth; the ability to sustain earnings momentum in economic downturns; and occupation of a niche in the economy and the ability to expand during times of slow economic growth.
T Rowe Price launched its first ETFs, including TGRW, in August 2020, and recently crossed the $1 billion asset milestone. TGRW is run by Joseph Faith, who has managed the growth strategy since 2014. (The ETF launched in August 2020, but his management history also includes the $47 billion T. Rowe Price Growth Stock Fund (PRGFX).)
Compared to the mutual fund, TGRW offers an alternative for investors who prefer the ETF structure for tax efficiency and cost reasons. The strategy recently had 42% of its assets invested in information technology stocks. Its top three stakes were Apple (AAPL), Intuit (INTU), and Microsoft,
TGRW has a 0.52% expense ratio.
Growth Stalwarts Fidelity, Harbor Capital Now Offer ETFs
Meanwhile, the $150 million Fidelity Growth Opportunities ETF (FGRO) was up 18% year to date. FGRO invests in companies Fidelity believes have above-average growth potential. Management uses fundamental analysis of factors, such as each issuer's financial condition and industry position, in order to select investments. They also take into account market and economic conditions.
FGRO is lead managed by Kyle Weaver, who has also managed the Fidelity Advisor Growth Opportunities Fund (FAGAX), a $15 billion mutual fund, for more than seven years. Like TGRW, FGRO is a separate product from FAGAX but is constructed similarly.
FGRO also recently had a high (43%) stake in information technology stocks. Its top three include Advanced Micro Devices (AMD), Apple, and Microsoft. FGRO has a 0.59% expense ratio.
Another strong performing active large cap growth ETF is the $120 million Harbor Long Term Growers ETF (WINN), up 24% so far in 2023.
Though the ETF has just over a year of history, Harbor and its sub-advisor Jennison Associates has a long-term relationship through separately managed accounts and mutual funds. For example, the Jennision growth equity team managing WINN also runs the nearly 40-year old and $14 billion Harbor Capital Appreciation Fund (HACAX). However, WINN is not a clone of HACAX and has some additional growth stocks inside.
Key Stats of Growth ETFs
All three ETFs recently owned Apple and Microsoft in their top stocks, but their weightings were different.
TGRW and WINN recently had 13% and 11% stakes positions in Microsoft, respectively, and 10% and 12% allocations to Apple. In contrast, FGRO had a 9.3% stake in Microsoft, but a more modest 3.3% position in Apple.
Compare that to the index-based IWF, which, at 13% of assets, had its largest position in Microsoft. Its second largest (11%), was in Apple.
Perhaps that subtle weightings shift made the difference: IWF also has had the lowest YTD return of the four ETFs compared.
Benefits of Active ETFs: Real-Time Expertise
One of the benefits of active ETFs is the ability to real-time tap into management’s efforts to identify which companies are best positioned for growth. They can do this without having to follow reclassifications by index providers.
Managers can also use their discretion to buy or sell stocks at any time when the fundamentals or valuation metrics shift. This usually includes limited capital gain implications.
In the last three years some established growth strategies became available as ETFs. As more investors discover these ETFs, they are likely to appreciate what’s inside.
For more news, information, and analysis, visit the Active ETF Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its top three stakes were Apple (AAPL), Intuit (INTU), and Microsoft, TGRW has a 0.52% expense ratio. (The ETF launched in August 2020, but his management history also includes the $47 billion T. Rowe Price Growth Stock Fund (PRGFX).) Compared to the mutual fund, TGRW offers an alternative for investors who prefer the ETF structure for tax efficiency and cost reasons.
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Its top three stakes were Apple (AAPL), Intuit (INTU), and Microsoft, TGRW has a 0.52% expense ratio. I step through some of these hidden gems below: T. Rowe Price: Strong Performance For Its Active ETFs The T. Rowe Price Growth Stock ETF (TGRW) was up 21% to start 2023, but it has flown under the radar. (The ETF launched in August 2020, but his management history also includes the $47 billion T. Rowe Price Growth Stock Fund (PRGFX).)
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Its top three stakes were Apple (AAPL), Intuit (INTU), and Microsoft, TGRW has a 0.52% expense ratio. Growth ETF Engagement Stronger Than Value Our Explorer data tool shows advisor research into both large-cap and total market growth ETFs (light purple) has been significantly higher than value ETFs (green) over the last three months. Growth Stalwarts Fidelity, Harbor Capital Now Offer ETFs Meanwhile, the $150 million Fidelity Growth Opportunities ETF (FGRO) was up 18% year to date.
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Its top three stakes were Apple (AAPL), Intuit (INTU), and Microsoft, TGRW has a 0.52% expense ratio. This active equity ETF has just $42 million in assets. The strategy recently had 42% of its assets invested in information technology stocks.
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2023-05-22 00:00:00 UTC
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US STOCKS-Nasdaq, S&P 500 rise amid fresh round of debt talks; Micron slides
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-rise-amid-fresh-round-of-debt-talks-micron-slides
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By Shreyashi Sanyal and Shristi Achar A
May 22 (Reuters) - The Nasdaq and the S&P 500 rose on Monday as markets turned to megacap stocks while awaiting updates on a fresh round of talks about raising the U.S. debt ceiling, and shares of Micron fell after China's ban on its memory chips.
President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday after their discussions almost fell apart on Friday. The fresh talks come less than two weeks before a deadline after which the Treasury warned that the federal government will struggle to pay its debts.
A default would cause chaos in financial markets and spike interest rates.
"There certainly is a fair amount of concern related to the debt ceiling, although you would not necessarily see it in the performance of the equity markets over the last couple weeks," said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
"Investors are also looking back to prior periods where the debt ceiling debate ultimately got resolved."
The Nasdaq .IXIC led gains on Wall Street, with Microsoft Inc MSFT.O, Tesla Inc TSLA.O and Alphabet Inc GOOGL.O up between 0.6% and 2.7%.
"Market expectations that the Federal Reserve is going to cut (rates) beginning this summer (is) beneficial for growth oriented technology companies," Palazzolo added.
At 12:36 p.m. ET, the Dow Jones Industrial Average .DJI was down 104.01 points, or 0.31%, at 33,322.62, the S&P 500 .SPX was up 2.98 points, or 0.07%, at 4,194.96, and the Nasdaq Composite .IXIC was up 46.11 points, or 0.36%, at 12,704.01.
In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 2.4%.
Apple Inc AAPL.O slipped 0.6% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy", its first rating cut in five months, according to Refinitiv data.
Dow component Chevron CorpCVX.N fell 0.7% as the oil major said it would buy PDC Energy Inc PDCE.O in a stock-and-debt transaction for $7.6 billion.
PacWest BancorpPACW.O rose nearly 15% after the regional lender entered into an agreement to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc KW.N.
Investors now await key data points this week, including a reading on April personal consumption expenditure (PCE) index, considered to be the Fed's preferred inflation gauge, due on Friday.
Minneapolis Fed President Neel Kashkari told CNBC in an interview that it was a "close call" on whether to raise rates at the Fed's June meeting or take a pause, while St. Louis Fed chief James Bullard said the central bank might have to hike rates by 50 basis points this year.
Advancing issues outnumbered decliners by a 1.83-to-1 ratio on the NYSE and by a 1.86-to-1 ratio on the Nasdaq.
The S&P index recorded 18 new 52-week highs and nine new lows, while the Nasdaq recorded 68 new highs and 63 new lows.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Dhanya Ann Thoppil and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O slipped 0.6% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy", its first rating cut in five months, according to Refinitiv data. By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The Nasdaq and the S&P 500 rose on Monday as markets turned to megacap stocks while awaiting updates on a fresh round of talks about raising the U.S. debt ceiling, and shares of Micron fell after China's ban on its memory chips. "There certainly is a fair amount of concern related to the debt ceiling, although you would not necessarily see it in the performance of the equity markets over the last couple weeks," said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
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Apple Inc AAPL.O slipped 0.6% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy", its first rating cut in five months, according to Refinitiv data. By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The Nasdaq and the S&P 500 rose on Monday as markets turned to megacap stocks while awaiting updates on a fresh round of talks about raising the U.S. debt ceiling, and shares of Micron fell after China's ban on its memory chips. In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 2.4%.
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Apple Inc AAPL.O slipped 0.6% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy", its first rating cut in five months, according to Refinitiv data. By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The Nasdaq and the S&P 500 rose on Monday as markets turned to megacap stocks while awaiting updates on a fresh round of talks about raising the U.S. debt ceiling, and shares of Micron fell after China's ban on its memory chips. Minneapolis Fed President Neel Kashkari told CNBC in an interview that it was a "close call" on whether to raise rates at the Fed's June meeting or take a pause, while St. Louis Fed chief James Bullard said the central bank might have to hike rates by 50 basis points this year.
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Apple Inc AAPL.O slipped 0.6% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy", its first rating cut in five months, according to Refinitiv data. By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The Nasdaq and the S&P 500 rose on Monday as markets turned to megacap stocks while awaiting updates on a fresh round of talks about raising the U.S. debt ceiling, and shares of Micron fell after China's ban on its memory chips. A default would cause chaos in financial markets and spike interest rates.
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15724.0
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2023-05-22 00:00:00 UTC
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Trillion Is the New Billion: 3 Stocks Poised to Join the Trillion Dollar Company Club
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AAPL
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https://www.nasdaq.com/articles/trillion-is-the-new-billion%3A-3-stocks-poised-to-join-the-trillion-dollar-company-club
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A cursory glance at this list of the world’s largest companies by market capitalization yields some interesting data. There are currently only five companies valued at $1 trillion or greater.
Berkshire Hathaway (NYSE:BRK.B) occupies the 6th spot with a $711 billion valuation based on its public equity. I guess that Berkshire Hathaway is unlikely to be the next company to join the trillion-dollar club simply because it’s so heavily invested in U.S. companies, and the economy is increasingly likely to tank.
So, instead, investors should consider that the next 3 three companies on that list are the most likely to become the next trillion-dollar firms. And as an FYI, Apple (NASDAQ:AAPL) was the first company to reach that threshold back in the summer of 2018, and United States Steel (NYSE:X) was the first to be valued at $1 billion in 1901.
Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
Nvidia (NASDAQ:NVDA) is currently the 7th most highly valued stock with a market cap of approximately $700 billion. The graphical processor unit (GPU) and chipset giant is an excellent case study of how quickly perception changes and how drastically that can affect a company’s value.
Nvidia was valued at less than $10 billion as recently as 2014. It has had an amazing run since then, increasing in value more than 70X in the interim.
That said, Nvidia isn’t currently at its highest valuation historically. That moment occurred in November of 2021, just prior to the onset of the tech downturn. Peak quantitative easing brought Nvidia above $820 billion then. The realization that runaway inflation would prompt what would be the most rapid series of rate hikes by the Fed sent NVDA plummeting.
Less than a year later, it was worth less than $300 billion. Slowing rate hikes combined with a heavy presence in AI and its application to computer graphics have NVDA back above $700 billion today.
That AI presence promises to push Nvidia north of $1 trillion. That probably won’t happen soon, as most of the hype is cooling. Instead, Nvidia will have to prove that AI-driven graphics can truly result in greater sales. That will or won’t push the company above that threshold for the first time ever.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) stock isn’t new to the trillion-dollar valuation club. It was briefly valued above $1 trillion from July to September of 2021.
The company rebranded at the end of October to fully take advantage of the metaverse craze, which hasn’t really worked out. Its value dipped below $1 trillion before that announcement, and the tech collapse that ensued only made Zuckerberg’s rebrand look that much worse.
Recent data indicates that Meta’s VR losses continue to be a problem. Yet Zuckerberg remains intent on pursuing the strategy set in motion more than a year ago. Meta expects losses from the business unit this year to exceed the $13.7 billion that it lost last year.
None of that necessarily suggests that Meta then should be expected to rise from $600 billion to $1 trillion soon. But advertising revenues have surprised, and 2023 is the year of efficiency at the company. The company will be lighter by 21,000 people or more when all is said and done. A drive toward greater production with lowered headcount costs could drive it above $1 trillion again.
Tesla (TSLA)
Source: ssi77 / Shutterstock.com
Tesla (NASDAQ:TSLA), like Meta Platforms, was once a trillionaire that currently finds itself worth much less at $540 billion.
The rise and fall of Tesla’s valuation is pretty much the same story as that of the other companies above. Quantitative easing and pandemic-era spending resulted in an unsustainable period of largesse.
Tesla benefited from the EV craze that truly cemented the push toward electrification as more than a fad. The U.S. crossed the 5% new car EV sales tipping point in 2022. Once more than 5% of a country’s new car sales are EVs, conditions for mass adoption are in place. The U.S. was the 19th country to reach that threshold.
That has greatly benefited Tesla, which has pioneered mass EV adoption. It’s also worth noting that Tesla’s growth over the past decade would not have been possible had prevailing rates been higher. Lending was cheap, leading to a strong environment for growth stocks that persisted for a decade-long period.
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 Trillion Is the New Billion: 3 Stocks Poised to Join the Trillion Dollar Company 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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And as an FYI, Apple (NASDAQ:AAPL) was the first company to reach that threshold back in the summer of 2018, and United States Steel (NYSE:X) was the first to be valued at $1 billion in 1901. The graphical processor unit (GPU) and chipset giant is an excellent case study of how quickly perception changes and how drastically that can affect a company’s value. Slowing rate hikes combined with a heavy presence in AI and its application to computer graphics have NVDA back above $700 billion today.
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And as an FYI, Apple (NASDAQ:AAPL) was the first company to reach that threshold back in the summer of 2018, and United States Steel (NYSE:X) was the first to be valued at $1 billion in 1901. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia (NASDAQ:NVDA) is currently the 7th most highly valued stock with a market cap of approximately $700 billion. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) stock isn’t new to the trillion-dollar valuation club.
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And as an FYI, Apple (NASDAQ:AAPL) was the first company to reach that threshold back in the summer of 2018, and United States Steel (NYSE:X) was the first to be valued at $1 billion in 1901. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia (NASDAQ:NVDA) is currently the 7th most highly valued stock with a market cap of approximately $700 billion. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) stock isn’t new to the trillion-dollar valuation club.
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And as an FYI, Apple (NASDAQ:AAPL) was the first company to reach that threshold back in the summer of 2018, and United States Steel (NYSE:X) was the first to be valued at $1 billion in 1901. There are currently only five companies valued at $1 trillion or greater. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia (NASDAQ:NVDA) is currently the 7th most highly valued stock with a market cap of approximately $700 billion.
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2023-05-22 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq rise as investors await debt ceiling talks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-rise-as-investors-await-debt-ceiling-talks
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nan
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nan
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By Saeed Azhar and Shreyashi Sanyal
NEW YORK, May 22 (Reuters) - The S&P 500 .SPX and the Nasdaq .IXIC rose modestly on Monday, helped by gains in Alphabet and Meta Platforms, although some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling.
U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
"The market is in a holding pattern," said Nadia Lovell, senior U.S. equity strategist at UBS Global Wealth Management in New York.
"We have to see how this debt ceiling stuff goes and the resumption of negotiation around that. Also people are waiting to hear more from the Fed."
Comments by St. Louis Fed President James Bullard on Monday that the Federal Reserve may still need to raise its benchmark interest rate by another half-point this year pushed up the U.S. dollar.
Investors will look for clues on the monetary policy path from a slew of Fed speakers and key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
The PCE index reading, the Fed's preferred inflation gauge, is due on Friday.
Technology-related stocks lifted the market, with Alphabet Inc GOOGL.O rising 2.2% and Meta Platforms Inc META.O up 1.7%.
"As debt ceiling drama intensifies mega-cap tech stocks have become Wall Street's new favorite defensive trade," said Edward Moya, senior market analyst at OANDA.
Apple Inc AAPL.O fell 0.5% after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data.
Regional banking stocks were lifted by news that PacWest BancorpPACW.O has agreed to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc KW.N.
Pacwest shares surged 21.5%, Lender Western Alliance WAL.N rose 7% and Comerica Inc CMA.N climbed 3.3%.
Shares of larger lenders were subdued, with JPMorgan Chase & Co JPM.N down 0.7%, despite the company saying its will rise $3 billion as interest payments increase from its purchase of failed First Republic Bank this year.
The Dow Jones Industrial Average .DJI fell 106.01 points, or 0.32%, to 33,320.62; the S&P 500 .SPX gained 5.51 points, or 0.13%, to 4,197.49; and the Nasdaq Composite .IXIC added 64.21 points, or 0.51%, at 12,722.11.
Dow component Chevron Corp > dipped 0.7% after the oil major said it would acquire PDC Energy Inc PDCE.O in an all-stock transaction for $7.6 billion, including debt.
Advancing issues outnumbered decliners on the NYSE by a 1.90-to-1 ratio; on Nasdaq, a 1.99-to-1 ratio favored advancers.
The S&P 500 posted 18 new 52-week highs and nine new lows; the Nasdaq Composite recorded 76 new highs and 69 new lows.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and Saeed Azhar in New York; additional reporting by Sinead Carew; Editing by Dhanya Ann Thoppil, Maju Samuel and Richard Chang)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O fell 0.5% after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - The S&P 500 .SPX and the Nasdaq .IXIC rose modestly on Monday, helped by gains in Alphabet and Meta Platforms, although some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
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Apple Inc AAPL.O fell 0.5% after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - The S&P 500 .SPX and the Nasdaq .IXIC rose modestly on Monday, helped by gains in Alphabet and Meta Platforms, although some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. Technology-related stocks lifted the market, with Alphabet Inc GOOGL.O rising 2.2% and Meta Platforms Inc META.O up 1.7%.
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Apple Inc AAPL.O fell 0.5% after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - The S&P 500 .SPX and the Nasdaq .IXIC rose modestly on Monday, helped by gains in Alphabet and Meta Platforms, although some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. "As debt ceiling drama intensifies mega-cap tech stocks have become Wall Street's new favorite defensive trade," said Edward Moya, senior market analyst at OANDA.
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Apple Inc AAPL.O fell 0.5% after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - The S&P 500 .SPX and the Nasdaq .IXIC rose modestly on Monday, helped by gains in Alphabet and Meta Platforms, although some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. Investors will look for clues on the monetary policy path from a slew of Fed speakers and key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
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2023-05-22 00:00:00 UTC
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US STOCKS-Wall Street ends mixed as investors await debt ceiling talks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-mixed-as-investors-await-debt-ceiling-talks
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By Saeed Azhar and Shreyashi Sanyal
NEW YORK, May 22 (Reuters) - Wall Street finished mixed on Monday, helped by gains in Alphabet and Meta Platforms, while some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling.
U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
"Investors are basically saying, 'We're giving at least a 60:40 likelihood that they will come to an agreement in time,'" said Sam Stovall, chief investment strategist at CFRA Research.
"An agreement could simply be the extension, kicking it down the road to decide on a debt ceiling when they also discuss the budgets in September."
Comments by St. Louis Fed President James Bullard on Monday that the Federal Reserve may still need to raise its benchmark interest rate by another half-point this year pushed up the U.S. dollar.
Investors will look for clues on monetary policy from a slew of Fed speakers and key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
The PCE index reading, the Fed's preferred inflation gauge, is due on Friday.
Technology-related stocks lifted the market, with gains at Alphabet Inc GOOGL.O and Meta Platforms Inc META.O.
"As debt ceiling drama intensifies mega-cap tech stocks have become Wall Street's new favorite defensive trade," said Edward Moya, senior market analyst at OANDA.
Apple Inc AAPL.O dropped after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data.
Regional banking stocks were lifted by news that PacWest BancorpPACW.O has agreed to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc KW.N.
Pacwest shares surged, while other regional lenders such as Western Alliance WAL.N and Comerica Inc CMA.N both climbed.
Shares of larger lenders were subdued, with JPMorgan Chase & Co JPM.N lower despite the company saying its will rise $3 billion as interest payments increase from its purchase of failed First Republic Bank this year.
Shares of Greenhill & Co GHL.N doubled after Mizuho Financial Group Inc 8411.Twill buy the U.S. M&A advisory firm for $550 million including debt.
Japan's No. 3 lender eyes a bigger share of the world's largest investment-banking fee pool.
Dow component Chevron Corp > dipped after the oil major said it would acquire PDC Energy Inc PDCE.O in an all-stock transaction for $7.6 billion, including debt.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and Saeed Azhar in New York; additional reporting by Sinead Carew; Editing by Dhanya Ann Thoppil, Maju Samuel and Richard Chang)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O dropped after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - Wall Street finished mixed on Monday, helped by gains in Alphabet and Meta Platforms, while some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
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Apple Inc AAPL.O dropped after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - Wall Street finished mixed on Monday, helped by gains in Alphabet and Meta Platforms, while some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
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Apple Inc AAPL.O dropped after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - Wall Street finished mixed on Monday, helped by gains in Alphabet and Meta Platforms, while some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. U.S. President Joe Biden and top congressional Republican Kevin McCarthy were set to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the United States could face an unprecedented default.
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Apple Inc AAPL.O dropped after Loop Capital downgraded the iPhone maker's stock to "hold" from "buy," its first rating cut in five months according to Refinitiv data. By Saeed Azhar and Shreyashi Sanyal NEW YORK, May 22 (Reuters) - Wall Street finished mixed on Monday, helped by gains in Alphabet and Meta Platforms, while some investors refrained from big bets ahead of a fresh round of talks about raising the U.S. debt ceiling. Technology-related stocks lifted the market, with gains at Alphabet Inc GOOGL.O and Meta Platforms Inc META.O.
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15727.0
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2023-05-22 00:00:00 UTC
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Small-Cap Russell 2000 Leads Monday Trading; ZM Beats
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AAPL
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https://www.nasdaq.com/articles/small-cap-russell-2000-leads-monday-trading-zm-beats
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nan
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Market indices began the trading day — and week — in the green across the board, with the Dow slipping into the red early and staying there, the S&P 500 fighting to stay above it and the Nasdaq and the small-cap Russell 2000 continuing aloft through the closing bell. The Dow, which had been down -218 points at its session low, finished -140 points, -0.42%. The S&P barely stayed positive, +0.02% (closing a hair shy of 4200), while the Nasdaq gained +0.50% on the day. The Russell gained a healthy +1.22%.
Communications Services and Real Estate posted strong gains for the day, with otherwise a familiar narrative that outperforming mega-stocks — such as Apple AAPL and NVIDIA NVDA — continue to take the lion’s share of market growth. Apple, after starting 2023 at multi-year lows, is already +34% year to date, while NVIDIA, which reports quarterly numbers this week, is already up more than 110% from the start of the year. In a recent survey, nearly 80% of investors believe these leading mega-caps are carrying the rest of the market.
Of course, this doesn’t account for the Russell 2000’s outperformance today. Swinging to the positive for only the second time in the past month — and still well off the early February highs this year — the small-cap index is still making up ground from its larger-cap brethren. Over the past five years, the Russell is up +10%, while the Dow is +34%, the S&P +54% and the Nasdaq up a substantial +71%. Only the Dow and S&P are somewhat close to their multi-year — and all-time — highs.
Zoom Video ZM outperformed Q1 expectations this afternoon, posting earnings of $1.16 per share — above the 99 cents expected and the $1.03 per share reported in the year-ago quarter. Revenues of $1.11 billion surpassed the $1.08 billion in the Zacks consensus. Its important Enterprise business gained +13% year over year in the quarter (better than expected) with strong online revenue. Guidance was basically in-line for the current quarter, but the company has notched up expectations for the full year.
Tomorrow morning, we’ll see new economic reports for S&P flash Manufacturing and Services PMI for May, and New Home Sales for April. The previous month’s print showed PMI above 50 — the demarcation point between growth and loss — while home sales trends are decidedly downward, and are expected to continue in this vein. Earnings Tuesday brings us a variety of retailers — from Lowe’s LOW to Dick’s DKS to Williams-Sonoma WSM, along with enterprise network security firm Palo Alto Networks PANW.
Questions or comments about this article and/or its author? Click here>>
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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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Communications Services and Real Estate posted strong gains for the day, with otherwise a familiar narrative that outperforming mega-stocks — such as Apple AAPL and NVIDIA NVDA — continue to take the lion’s share of market growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Swinging to the positive for only the second time in the past month — and still well off the early February highs this year — the small-cap index is still making up ground from its larger-cap brethren.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Communications Services and Real Estate posted strong gains for the day, with otherwise a familiar narrative that outperforming mega-stocks — such as Apple AAPL and NVIDIA NVDA — continue to take the lion’s share of market growth. Earnings Tuesday brings us a variety of retailers — from Lowe’s LOW to Dick’s DKS to Williams-Sonoma WSM, along with enterprise network security firm Palo Alto Networks PANW.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Communications Services and Real Estate posted strong gains for the day, with otherwise a familiar narrative that outperforming mega-stocks — such as Apple AAPL and NVIDIA NVDA — continue to take the lion’s share of market growth. Apple, after starting 2023 at multi-year lows, is already +34% year to date, while NVIDIA, which reports quarterly numbers this week, is already up more than 110% from the start of the year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Communications Services and Real Estate posted strong gains for the day, with otherwise a familiar narrative that outperforming mega-stocks — such as Apple AAPL and NVIDIA NVDA — continue to take the lion’s share of market growth. Over the past five years, the Russell is up +10%, while the Dow is +34%, the S&P +54% and the Nasdaq up a substantial +71%.
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2023-05-22 00:00:00 UTC
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After Hours Most Active for May 22, 2023 : NU, NI, PFE, QQQ, FOLD, AMZN, ZM, C, UBER, BAC, AAPL, MSFT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-22-2023-%3A-nu-ni-pfe-qqq-fold-amzn-zm-c-uber-bac-aapl-msft
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The NASDAQ 100 After Hours Indicator is down -1.77 to 13,847.97. The total After hours volume is currently 73,872,226 shares traded.
The following are the most active stocks for the after hours session:
Nu Holdings Ltd. (NU) is unchanged at $6.64, with 5,481,958 shares traded. NU's current last sale is 94.86% of the target price of $7.
NiSource, Inc (NI) is unchanged at $27.39, with 3,454,170 shares traded. As reported by Zacks, the current mean recommendation for NI is in the "strong buy range".
Pfizer, Inc. (PFE) is +0.24 at $38.99, with 2,906,454 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 86.64% of the target price of $45.
Invesco QQQ Trust, Series 1 (QQQ) is +0.14 at $337.78, with 2,420,666 shares traded. This represents a 32.85% increase from its 52 Week Low.
Amicus Therapeutics, Inc. (FOLD) is unchanged at $11.80, with 1,989,158 shares traded. As reported in the last short interest update the days to cover for FOLD is 11.5797; this calculation is based on the average trading volume of the stock.
Amazon.com, Inc. (AMZN) is -0.1414 at $114.87, with 1,896,067 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".
Zoom Video Communications, Inc. (ZM) is +1.3 at $72.71, with 1,892,091 shares traded. ZM's current last sale is 90.89% of the target price of $80.
Citigroup Inc. (C) is +0.01 at $45.80, with 1,823,703 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 $1.6. C's current last sale is 86.42% of the target price of $53.
Uber Technologies, Inc. (UBER) is unchanged at $39.17, with 1,786,044 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.04. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Bank of America Corporation (BAC) is -0.02 at $28.32, with 1,662,536 shares traded. BAC's current last sale is 80.91% of the target price of $35.
Apple Inc. (AAPL) is -0.07 at $174.13, with 1,527,591 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".
Microsoft Corporation (MSFT) is unchanged at $321.18, with 1,497,116 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.
The views and 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 -0.07 at $174.13, with 1,527,591 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for NI is in the "strong buy range".
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Apple Inc. (AAPL) is -0.07 at $174.13, with 1,527,591 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.07 at $174.13, with 1,527,591 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 73,872,226 shares traded.
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Apple Inc. (AAPL) is -0.07 at $174.13, with 1,527,591 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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15729.0
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2023-05-22 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq rise amid fresh round of debt talks; Micron slides
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-rise-amid-fresh-round-of-debt-talks-micron-slides
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By Shreyashi Sanyal and Shristi Achar A
May 22 (Reuters) - The S&P 500 and the Nasdaq rose on Monday as markets awaited updates on a fresh round of talks about raising the U.S. debt ceiling, while shares of Micron fell after China's ban on its memory chips.
President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday after their discussions almost fell apart on Friday. The fresh talks come less than two weeks before a deadline after which the Treasury warned that the federal government will struggle to pay its debts.
A default would cause chaos in financial markets and spike interest rates.
"Everybody is paying attention to this Kevin McCarthy-Joe Biden meeting, waiting for some kind of signal as far as the debt ceiling is concerned," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"People are just waiting and watching to see how this plays out."
In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 4.5%.
The Philadelphia SE Semiconductor index .SOX dipped 0.4%.
Apple Inc AAPL.O slipped 0.4% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". This marked its first rating cut in five months, according to Refinitiv data.
At 10:14 a.m. ET, the Dow Jones Industrial Average .DJI was down 96.82 points, or 0.29%, at 33,329.81, the S&P 500 .SPX was up 1.64 points, or 0.04%, at 4,193.62 and the Nasdaq Composite .IXIC was up 46.62 points, or 0.37%, at 12,704.52.
Dow component Chevron CorpCVX.N fell 1.7% as the oil major said it would acquire PDC Energy Inc PDCE.O in an all-stock transaction for $7.6 billion, including debt.
PacWest BancorpPACW.O rose 6.3% after the regional lender entered into an agreement to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc KW.N.
Investors will look for clues on the monetary policy path from a slew of Federal Reserve speakers and key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
The PCE index reading, considered to be the Fed's preferred inflation gauge, is due on Friday.
Minneapolis Fed President Neel Kashkaritold CNBC in an interview that it was a "close call" on whether he would vote to raise rates at the Fed's June meeting or take a pause, while St. Louis Fed chief James Bullard said the central bank might have to hike rates by 50 basis points this year.
Advancing issues outnumbered decliners by a 1.71-to-1 ratio on the NYSE and by a 1.78-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and three new lows, while the Nasdaq recorded 46 new highs and 35 new lows.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Dhanya Ann Thoppil and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O slipped 0.4% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The S&P 500 and the Nasdaq rose on Monday as markets awaited updates on a fresh round of talks about raising the U.S. debt ceiling, while shares of Micron fell after China's ban on its memory chips. In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 4.5%.
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Apple Inc AAPL.O slipped 0.4% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The S&P 500 and the Nasdaq rose on Monday as markets awaited updates on a fresh round of talks about raising the U.S. debt ceiling, while shares of Micron fell after China's ban on its memory chips. Investors will look for clues on the monetary policy path from a slew of Federal Reserve speakers and key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
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Apple Inc AAPL.O slipped 0.4% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The S&P 500 and the Nasdaq rose on Monday as markets awaited updates on a fresh round of talks about raising the U.S. debt ceiling, while shares of Micron fell after China's ban on its memory chips. Minneapolis Fed President Neel Kashkaritold CNBC in an interview that it was a "close call" on whether he would vote to raise rates at the Fed's June meeting or take a pause, while St. Louis Fed chief James Bullard said the central bank might have to hike rates by 50 basis points this year.
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Apple Inc AAPL.O slipped 0.4% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - The S&P 500 and the Nasdaq rose on Monday as markets awaited updates on a fresh round of talks about raising the U.S. debt ceiling, while shares of Micron fell after China's ban on its memory chips. President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday after their discussions almost fell apart on Friday.
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15730.0
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2023-05-22 00:00:00 UTC
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Buyers Swarmed These 3 Stocks Post-Earnings
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https://www.nasdaq.com/articles/buyers-swarmed-these-3-stocks-post-earnings
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With earnings season slowly winding down, one thing is for certain – we saw many surprises. Of course, the period is always hectic, but this cycle was critically important as we wade through a somewhat-cloudy economic outlook.
Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings.
Below is a chart illustrating the year-to-date performance of all three, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at how each currently stacks up.
Apple
Apple’s quarterly results were watched like a hawk, as it was the last of the mega-cap tech giants yet to report. Fortunately for the market, the company delivered, exceeding earnings expectations by nearly 6% and posting revenue 2% ahead of estimates.
Image Source: Zacks Investment Research
It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
Shares recently witnessed the golden cross, as highlighted in the chart below. The golden cross occurs when the shorter 50-day moving average rises above the 200-day moving average, indicating near-term buying pressure.
Image Source: Zacks Investment Research
Uber Technologies
Uber shares found plenty of attention following its latest release; the company posted a positive EPS surprise of 20% and reported revenue modestly above expectations.
Image Source: Zacks Investment Research
Uber shares could entice growth-focused investors, further reinforced by the Style Score of “A” for Value. The company’s earnings are forecasted to skyrocket 100% in its current fiscal year (FY23) and an additional 1,270% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 17% in FY23 and 18% in FY24.
Applied Materials
Like the stocks above, buyers stepped up in a big way post-earnings for AMAT shares, with the company delivering a 9% EPS beat and reporting revenue nearly 4% ahead of expectations.
Image Source: Zacks Investment Research
It’s worth noting that the company’s growth is forecasted to taper off, with earnings forecasted to pull back 6% in its current fiscal year (FY23) and a further 7% in FY23. This is illustrated in the chart below.
Image Source: Zacks Investment Research
Bottom Line
While earnings season is undeniably intense, it’s just the nature of the period. We managed to elude the so-called earnings ‘cliff’ many warned of, with many companies posting better-than-expected results and keeping sentiment in line.
And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings.
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 >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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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Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings.
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Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average.
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Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings.
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Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings.
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15731.0
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2023-05-22 00:00:00 UTC
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TikTok sues Montana after state move to ban app
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AAPL
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https://www.nasdaq.com/articles/tiktok-sues-montana-after-state-move-to-ban-app
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nan
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nan
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By David Shepardson
WASHINGTON, May 22 (Reuters) - TikTok Inc on Monday filed a lawsuit challenging the state of Montana's new ban on use of the Chinese-owned short-video app.
ByteDance-owned TikTok argues the ban, which would take effect on Jan. 1, violates First Amendment rights of the company and users. The lawsuit, filed in U.S. District Court in Montana, also argues the ban is pre-empted by federal law because it intrudes upon matters of exclusive federal concern and violates the Commerce Clause of the U.S. Constitution, which limits the authority of States to enact legislation that unduly burdens interstate and foreign commerce.
Montana is the first U.S. state to attempt to ban TikTok. Former President Donald Trump in 2020 sought to bar new downloads of TikTok and Chinese-owned WeChat and other transactions, which the companies said would have effectively barred use of the apps, but a series of court decisions blocked the bans from taking effect.
The company also argues the state "banishes TikTok, and just TikTok, from the State for purely punitive reasons, as evidenced by the State’s decision to single out Plaintiff for harsh penalties based on speculative concerns about TikTok’s data security and content moderation practices."
Last week, five TikTok users in Montana who create content posted on the short-video app filed a lawsuit in federal court seeking to block the state's ban.
Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state. The law makes it unlawful for TikTok to operate in the state and for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within Montana.
TikTok's lawsuit names Montana Attorney General Austin Knudsen, who is charged with enforcing the law. Knudsen's office did not immediately respond to a request for comment on Monday.
(Reporting by Jasper Ward and David Shepardson in Washington Writing by Paul Grant Editing by Eric Beech and Matthew Lewis)
((paul.grant@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The law makes it unlawful for TikTok to operate in the state and for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within Montana. By David Shepardson WASHINGTON, May 22 (Reuters) - TikTok Inc on Monday filed a lawsuit challenging the state of Montana's new ban on use of the Chinese-owned short-video app. The lawsuit, filed in U.S. District Court in Montana, also argues the ban is pre-empted by federal law because it intrudes upon matters of exclusive federal concern and violates the Commerce Clause of the U.S. Constitution, which limits the authority of States to enact legislation that unduly burdens interstate and foreign commerce.
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The law makes it unlawful for TikTok to operate in the state and for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within Montana. By David Shepardson WASHINGTON, May 22 (Reuters) - TikTok Inc on Monday filed a lawsuit challenging the state of Montana's new ban on use of the Chinese-owned short-video app. The lawsuit, filed in U.S. District Court in Montana, also argues the ban is pre-empted by federal law because it intrudes upon matters of exclusive federal concern and violates the Commerce Clause of the U.S. Constitution, which limits the authority of States to enact legislation that unduly burdens interstate and foreign commerce.
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The law makes it unlawful for TikTok to operate in the state and for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within Montana. By David Shepardson WASHINGTON, May 22 (Reuters) - TikTok Inc on Monday filed a lawsuit challenging the state of Montana's new ban on use of the Chinese-owned short-video app. The company also argues the state "banishes TikTok, and just TikTok, from the State for purely punitive reasons, as evidenced by the State’s decision to single out Plaintiff for harsh penalties based on speculative concerns about TikTok’s data security and content moderation practices."
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The law makes it unlawful for TikTok to operate in the state and for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within Montana. By David Shepardson WASHINGTON, May 22 (Reuters) - TikTok Inc on Monday filed a lawsuit challenging the state of Montana's new ban on use of the Chinese-owned short-video app. Former President Donald Trump in 2020 sought to bar new downloads of TikTok and Chinese-owned WeChat and other transactions, which the companies said would have effectively barred use of the apps, but a series of court decisions blocked the bans from taking effect.
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15732.0
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2023-05-22 00:00:00 UTC
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Wall St set to open flat amid debt limit talks; Micron slides
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AAPL
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https://www.nasdaq.com/articles/wall-st-set-to-open-flat-amid-debt-limit-talks-micron-slides
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 22 (Reuters) - U.S. stock indexes were set to open flat on Monday as markets awaited updates on lawmakers' talks about raising the U.S. debt ceiling, while shares of Micron fell following China's ban on its memory chips.
Hopes that a deal would be struck sometime over the weekend to raise the $31.4 trillion U.S. debt limit helped Wall Street's main indexes end the last week with gains, even as discussions almost fell apart on Friday.
President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday, with less than two weeks before a deadline after which the Treasury warned that the federal government will struggle to pay its debts.
A default would cause chaos in financial markets and spike interest rates.
"Everybody is paying attention to this Kevin McCarthy-Joe Biden meeting, waiting for some kind of signal as far as the debt ceiling is concerned," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"People are just waiting and watching to see how this plays out."
In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 4.0% in premarket trading.
Shares of other semiconductor companies also fell, with Intel Corp INTC.O, Nvidia Corp NVDA.O and Advanced Micro Devices Inc AMD.O down between 0.2% and 1.1%.
Apple Inc AAPL.O fell 0.9% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". This marked its first rating cut in five months, according to Refinitiv data.
At 8:33 a.m. ET, Dow e-minis 1YMcv1 were up 31 points, or 0.09%, S&P 500 e-minis EScv1 were up 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were up 3 points, or 0.02%.
Investors will look for clues on the monetary policy path from a slew of Federal Reserve speakers later in the day, ahead of key data points this week such as the April personal consumption expenditure (PCE) index and durable goods.
The PCE index reading, considered to be the Fed's preferred inflation gauge, is due on Friday.
Minneapolis Fed President Neel Kashkarisaid it was a "close call" on whether he would vote to raise rates at the Fed's June meeting or take a pause and leave rates where they are.
Meta Platforms Inc META.O slipped 0.5% after the European Union privacy regulators slapped a $1.3 billion fine on the company for sending user information to the United States.
Chevron CorpCVX.Ndipped 0.7% as the oil major said it would acquire PDC Energy Inc PDCE.O in an all-stock transaction for $7.6 billion, including debt.
PacWest BancorpPACW.Orose 8.6% after the regional lender entered into an agreement to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc KW.N.
Shares of other regional lenders also gained, with Zions Bancorp ZION.O, KeyCorp KEY.N and Western Alliance Bancorp WAL.N up between 1.3% and 3.1%.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Dhanya Ann Thoppil and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O fell 0.9% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - U.S. stock indexes were set to open flat on Monday as markets awaited updates on lawmakers' talks about raising the U.S. debt ceiling, while shares of Micron fell following China's ban on its memory chips. President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday, with less than two weeks before a deadline after which the Treasury warned that the federal government will struggle to pay its debts.
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Apple Inc AAPL.O fell 0.9% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - U.S. stock indexes were set to open flat on Monday as markets awaited updates on lawmakers' talks about raising the U.S. debt ceiling, while shares of Micron fell following China's ban on its memory chips. In a move that was perceived as ramping up trade tensions between Beijing and Washington, China barred chipmaker Micron Technology Inc MU.O from selling memory chips to key domestic industries, sending its shares down 4.0% in premarket trading.
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Apple Inc AAPL.O fell 0.9% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - U.S. stock indexes were set to open flat on Monday as markets awaited updates on lawmakers' talks about raising the U.S. debt ceiling, while shares of Micron fell following China's ban on its memory chips. Minneapolis Fed President Neel Kashkarisaid it was a "close call" on whether he would vote to raise rates at the Fed's June meeting or take a pause and leave rates where they are.
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Apple Inc AAPL.O fell 0.9% after a report that Loop Capital downgraded the iPhone maker's stock to "hold" from "buy". By Shreyashi Sanyal and Shristi Achar A May 22 (Reuters) - U.S. stock indexes were set to open flat on Monday as markets awaited updates on lawmakers' talks about raising the U.S. debt ceiling, while shares of Micron fell following China's ban on its memory chips. President Joe Biden and House Republican Speaker Kevin McCarthy will meet for talks on Monday, with less than two weeks before a deadline after which the Treasury warned that the federal government will struggle to pay its debts.
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15733.0
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2023-05-22 00:00:00 UTC
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FOCUS-Striking Hollywood writers lament residuals slide
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AAPL
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https://www.nasdaq.com/articles/focus-striking-hollywood-writers-lament-residuals-slide
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nan
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nan
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By Dawn Chmielewski
LOS ANGELES, May 22 (Reuters) - Writer Kyra Jones knew she would be taking a financial hit when she agreed to join the writers' room for the Hulu comedy series "Woke."
The first payment she received for her share of the show's digital rentals was a mere $4, before taxes, barely enough to buy a latte. The streaming residual check amounted to one-third of the $12,000 Jones received in residuals for writing one episode of the ABC drama "Queens."
Jones said she knew it would be lower than broadcast networks paid in residuals. "But I didn’t know it would be that bad."
Residuals have emerged as a central issue in the strike by 11,500 members of the Writers Guild of America, who are seeking better compensation and staffing commitments from Hollywood’s studios.
The writers argue that streaming services, which upended decades of television industry business practices, have significantly undercut their compensation. They say they aim to recover lost income, in part, by proposing streaming payments that take into account the number of times an episode is viewed, and the number of subscribers outside the U.S.
The Alliance of Motion Picture and Television Producers, the group negotiating on behalf of the studios, says streaming has been a boon for writers, giving them more opportunities for assignments and allowing them to earn income on shows that were canceled or would not otherwise reach syndication.
When broadcast networks dominated the living room, writers saw multiple paydays. In addition to their weekly salaries, they would receive a script fee for each episode they wrote, then collect reuse payments known as residuals every time that show aired again, often over the summer months.
Once a show reached the 100-episode mark, it could be sold into syndication, filling up daytime programming schedules for local television stations, rerunning on cable networks or outside of the United States. Writers would receive a check every time their episodes appeared on a TV screen.
RESIDUALS WERE 'VERY HEALTHY'
Streaming changed the compensation structure and now accounts for the largest share of TV residuals.
“We used to get very healthy residuals. A writer might go a year without work or maybe two and you would be able to live off those residuals, comfortably, and you'd still get paid for the work that you have done,” said Kristine Huntley, who worked as a writer and producer on the AppleTV+ series “Surfside Girls.”
Those numbers have "come down so low that, where you would get maybe a five-figure residual now you might get a three-figure residual,” she said.
Writers still collect weekly paychecks and per-episode writing fees, though streaming series typically have fewer episodes per season - meaning fewer opportunities to receive a writing credit, and lower compensation.
With streaming, residual payments are not based on the number of times an episode is viewed. Rather, there is a fixed annual fee that takes into account the number of subscribers, with Netflix, Amazon Prime Video and Disney+ paying more to writers.
One studio executive said writers negotiated a 46% increase in residuals for streaming programs, starting in 2022. Those fatter checks are just kicking in now. Another industry source, who also requested anonymity, said residuals reached an all-time high last year, with almost 45% coming from streaming, the lion’s share from Netflix.
The latest guild proposal would bump foreign streaming residuals by 200%, a number studio executives noted fails to recognize that subscription fees vary from country to country.
The guild says it is looking to close the gap in domestic and international residual payments.
Netflix currently pays a $20,018 residual for a one-hour episode that plays in the United States, but one-third of that amount for the same episode to be streamed by more than 150 million global subscribers.
Over her decade-plus career as a Hollywood writer, Leila Cohan has worked on network TV shows and streaming series, including as co-executive producer on Netflix’s popular period drama “Bridgerton.”
“Bridgerton” is one of Netflix’s most-watched series, though the lower-profile MTV Network comedy “Awkward” produced higher residual payments for Cohan, who wrote five episodes over the show’s final two seasons.
“It wasn’t enough residuals to live off of, but a pretty healthy supplement,” said Cohan. “Even now, I still get a couple thousand from it a year.”
“Bridgerton,” with its eight-episode seasons, led to a single writing credit in 2020, and a royalty check that Cohan said did not reflect the show’s importance to Netflix.
“Residuals are meant to be some level of profit sharing,” Cohan said. “If 'Bridgerton' is one of the most successful shows, and it’s bringing a huge number of subscribers to Netflix or helping them keep their subscribers, I do think I should be compensated for that value.”
(Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Rollo Ross in Los Angeles; Editing by Mary Milliken and Bill Berkrot)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Alliance of Motion Picture and Television Producers, the group negotiating on behalf of the studios, says streaming has been a boon for writers, giving them more opportunities for assignments and allowing them to earn income on shows that were canceled or would not otherwise reach syndication. In addition to their weekly salaries, they would receive a script fee for each episode they wrote, then collect reuse payments known as residuals every time that show aired again, often over the summer months. Once a show reached the 100-episode mark, it could be sold into syndication, filling up daytime programming schedules for local television stations, rerunning on cable networks or outside of the United States.
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The streaming residual check amounted to one-third of the $12,000 Jones received in residuals for writing one episode of the ABC drama "Queens." Writers still collect weekly paychecks and per-episode writing fees, though streaming series typically have fewer episodes per season - meaning fewer opportunities to receive a writing credit, and lower compensation. Over her decade-plus career as a Hollywood writer, Leila Cohan has worked on network TV shows and streaming series, including as co-executive producer on Netflix’s popular period drama “Bridgerton.” “Bridgerton” is one of Netflix’s most-watched series, though the lower-profile MTV Network comedy “Awkward” produced higher residual payments for Cohan, who wrote five episodes over the show’s final two seasons.
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The streaming residual check amounted to one-third of the $12,000 Jones received in residuals for writing one episode of the ABC drama "Queens." A writer might go a year without work or maybe two and you would be able to live off those residuals, comfortably, and you'd still get paid for the work that you have done,” said Kristine Huntley, who worked as a writer and producer on the AppleTV+ series “Surfside Girls.” Those numbers have "come down so low that, where you would get maybe a five-figure residual now you might get a three-figure residual,” she said. Over her decade-plus career as a Hollywood writer, Leila Cohan has worked on network TV shows and streaming series, including as co-executive producer on Netflix’s popular period drama “Bridgerton.” “Bridgerton” is one of Netflix’s most-watched series, though the lower-profile MTV Network comedy “Awkward” produced higher residual payments for Cohan, who wrote five episodes over the show’s final two seasons.
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The streaming residual check amounted to one-third of the $12,000 Jones received in residuals for writing one episode of the ABC drama "Queens." They say they aim to recover lost income, in part, by proposing streaming payments that take into account the number of times an episode is viewed, and the number of subscribers outside the U.S. Writers would receive a check every time their episodes appeared on a TV screen.
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15734.0
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2023-05-22 00:00:00 UTC
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Better Buy: Lemonade or Upstart?
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-lemonade-or-upstart
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nan
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nan
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Both Lemonade (NYSE: LMND) and Upstart (NASDAQ: UPST) made their stock market debuts in 2020. And although shares in these two businesses did well early on, it's been a completely different story in the past couple of years. Lemonade is down about 77% since going public, while Upstart's stock is down a whopping 94% from its all-time high. That's not what shareholders were hoping for.
But there's no doubt that these are innovative companies with the potential for outsized long-term returns. So, which of these fintech stocks is the better buy right now? Let's take a closer look at the bullish cases for both before coming to a conclusion.
The case for Lemonade
Lemonade is trying to change the game of insurance by using artificial intelligence (AI) to better serve customers. The company uses data and machine-learning models to constantly improve all aspects of its operations. In fact, 98% of Lemonade's policies are not sold by a human, with the goal that this automation will reduce costs. Right now, Lemonade offers renters insurance, homeowners insurance, car insurance, pet insurance, and life insurance, which combined create a massive market opportunity.
The insurance industry is one of the oldest, so clearly it has been long overdue for innovation. That bodes well for Lemonade's prospects. In fact, growth has been outstanding. Between 2019 and 2022, customers soared 181%, revenue jumped 281%, and in-force premiums were up 204%. And based on the company's 2023 first-quarter financials, the momentum is still strong.
Integrating technology into the mix and going direct-to-consumer is why Lemonade has a Net Promoter Score that rivals Apple and Tesla. Being a Lemonade policyholder is simply a much better user experience compared to the traditional brick-and-mortar model that relies on sales agents. Prospective customers can sign up for a policy in as little as 90 seconds, while customers can have a claim approved and paid out within three minutes.
Besides offering a tech-enabled platform that is easy to use, which has done a good job at attracting a younger demographic, Lemonade is also focused on giving back. After earning a flat fee to help cover potential claims, the business lets policyholders choose what charities they'd like any unused premiums to go to. Shareholders can appreciate that Lemonade wants to take care of all stakeholders.
The case for Upstart
Like Lemonade, Upstart is a disruptive fintech that utilizes AI in its business model. Upstart offers a lending platform that looks at 1,600 different variables to come to credit-approval decisions about potential borrowers. As of May 9, Upstart had 99 different lending partners using its tool. The premise is that Upstart can allow its partners to approve more customers while keeping default rates in check. It's supposed to be a win-win-win for all three parties -- Upstart, banks, and borrowers.
Currently, the business operates in the markets for personal loans and auto loan refinances. But with ambitions to enter the mortgage market (valued at $2.7 trillion) and the small business loan market (valued at $644 billion), the opportunity is enormous. Unsurprisingly, growth has been impressive. Between 2019 and 2022, revenue skyrocketed 413%. Getting more banking partners using Upstart's technology is critical for the company to keep up these monster gains.
It's also worth pointing out that Upstart doesn't try to hold loans on its own balance sheet. It just provides the tech platform that enables banks to do what they do best, which is to approve borrowers and service loans. However, the amount of loans that Upstart holds has soared 64% year over year to $982 million as of March 31, as a direct result of challenging credit markets. But the hope is that when macro conditions improve, Upstart can sell those loans to institutional investors and not take on credit risk itself, freeing up capital and reducing cyclicality.
Investors can like both
Lemonade and Upstart certainly each have their own investment merits, as I've outlined above. These companies have tremendous growth potential thanks to their disruptive business models, and they were already utilizing AI before it became hot. Moreover, shares of each company are down a lot from their peaks.
Consequently, I don't see a valid argument against owning both stocks, particularly for investors who truly have a long-term mindset.
10 stocks we like better than Lemonade
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 Lemonade 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
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Lemonade, Tesla, and Upstart. 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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Besides offering a tech-enabled platform that is easy to use, which has done a good job at attracting a younger demographic, Lemonade is also focused on giving back. After earning a flat fee to help cover potential claims, the business lets policyholders choose what charities they'd like any unused premiums to go to. But the hope is that when macro conditions improve, Upstart can sell those loans to institutional investors and not take on credit risk itself, freeing up capital and reducing cyclicality.
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The case for Upstart Like Lemonade, Upstart is a disruptive fintech that utilizes AI in its business model. However, the amount of loans that Upstart holds has soared 64% year over year to $982 million as of March 31, as a direct result of challenging credit markets. The Motley Fool has positions in and recommends Apple, Lemonade, Tesla, and Upstart.
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Both Lemonade (NYSE: LMND) and Upstart (NASDAQ: UPST) made their stock market debuts in 2020. Right now, Lemonade offers renters insurance, homeowners insurance, car insurance, pet insurance, and life insurance, which combined create a massive market opportunity. The case for Upstart Like Lemonade, Upstart is a disruptive fintech that utilizes AI in its business model.
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Currently, the business operates in the markets for personal loans and auto loan refinances. These companies have tremendous growth potential thanks to their disruptive business models, and they were already utilizing AI before it became hot. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Neil Patel has no position in any of the stocks mentioned.
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15735.0
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2023-05-22 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-5
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +6.1%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 4.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.18 per share for the current quarter, representing a year-over-year change of -1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
For the current fiscal year, the consensus earnings estimate of $5.99 points to a change of -2% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $6.64 indicates a change of +10.8% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $81.35 billion indicates a year-over-year change of -1.9%. For the current and next fiscal years, $384.71 billion and $410.17 billion estimates indicate -2.4% and +6.6% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $94.84 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $1.52 for the same period compares with $1.52 a year ago.
Compared to the Zacks Consensus Estimate of $93.32 billion, the reported revenues represent a surprise of +1.63%. The EPS surprise was +5.56%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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2023-05-22 00:00:00 UTC
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2 Stocks Up by 40% and 70% This Year That Are Still Worth Buying
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https://www.nasdaq.com/articles/2-stocks-up-by-40-and-70-this-year-that-are-still-worth-buying
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The market is roaring back this year following a paltry performance in 2022. Growth-oriented companies that were hammered during the bear market have been performing especially well. That has been the case with tech giants Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP), which are up by 40% and 70% year to date, respectively. Despite these massive gains, Apple and Shopify remain excellent stocks for investors focused on the long game. Let's consider why.
1. Apple
At first glance, Apple might be a bad business to put one's hard-earned money into in the current environment. We are still dealing with economic problems and the possibility of a recession. Apple's products aren't necessary goods, and many have clear substitutes that are generally cheaper. The conventional wisdom holds that consumers would substantially reduce spending on Apple's gadgets in this environment.
And although we are seeing some of that, the tech giant continues to perform well considering the challenging economy. In the company's second quarter of its fiscal year 2023 -- which ended on April 1 -- Apple's net sales declined by a little under 3% year over year to $94.8 billion. The company's earnings per share remained flat at $1.52. But Apple's most important product, the iPhone, delivered March quarter record sales of $51.3 billion, up 1.5% compared to the year-ago period.
The company's services segment also came out with a record quarter, with its sales growing by 5.5% year over year to $20.9 billion. Consumers continue to buy Apple's products even in challenging economic conditions partly because of its brand loyalty. It has the highest satisfaction rate and loyalty score among the top-selling smartphone manufacturers, according to Statista.
That is a powerful reason it can continue selling products to repeat and new customers. But perhaps the most exciting opportunity for Apple is within its services segment. The company now has an installed base of more than 2 billion devices. It offers cloud services, a digital wallet, music and video streaming platforms, and much more. Apple should continue finding ways to monetize this massive and growing installed base.
The company has sought to innovate in the healthcare field, for instance. Apple's services segment carries much higher margins than its product unit, so as the former becomes a larger part of its operations, the bottom line and total margins should expand. That's how Apple can continue growing its revenue and earnings for years. And despite already being up by 40% this year, the company's shares remain a buy.
2. Shopify
Shopify has been busy since the year started. The e-commerce specialist kicked off 2023 by announcing that it would raise its prices, something it had not done in a while. But the biggest surprise came during Shopify's latest quarterly update. Management announced that it is selling its logistics business to Flexport in an all-stock transaction; Shopify will obtain a 13% stake in Flexport.
Why is this a big deal? Shopify had constantly emphasized its focus on its logistics business to give its merchants fast and reliable shipping options. But between shipping, warehouse, and inventory management, Shopify's logistics operations were expensive and hurt profits and margins. The potential upside was real. Offering fast shipping can be an excellent way for online retailers to attract (repeat) customers, sell more items, and increase their gross merchandise volume (GMV).
However, investors loved the company's move, which should lead to higher profits and margins sooner. Shopify also said it would reduce its workforce by about 20%. These moves will allow Shopify to focus on its core e-commerce operations while decreasing costs. Meanwhile, Shopify continues to record solid growth, at least on the top line. The company's revenue in the first quarter jumped by 25% year over year to $1.5 billion.
Shopify's GMV grew by 15% year over year to $49.6 billion. Gross profits of $717 million jumped by 12% compared to the year-ago period. Shopify still has significant opportunities in e-commerce as the market is on an upward trajectory. The company held a 10% share of the U.S. e-commerce market as of the end of 2022. And the decision to give up most of its logistics business will allow it to free up valuable funds to invest in the future.
Further, the company's platform benefits from high switching costs, a competitive edge that will allow it to remain a major player in the industry for a long time. Investors clearly approve of the moves Shopify has made this year, which is why its stock is up by 70%. Whether that will last in the short run is hard to predict. But Shopify still has the tools to deliver market-beating returns over five years or more.
10 stocks we like better than Apple
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Prosper Junior Bakiny has positions in Shopify. The Motley Fool has positions in and recommends Apple and Shopify. 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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That has been the case with tech giants Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP), which are up by 40% and 70% year to date, respectively. But Apple's most important product, the iPhone, delivered March quarter record sales of $51.3 billion, up 1.5% compared to the year-ago period. Offering fast shipping can be an excellent way for online retailers to attract (repeat) customers, sell more items, and increase their gross merchandise volume (GMV).
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That has been the case with tech giants Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP), which are up by 40% and 70% year to date, respectively. Despite these massive gains, Apple and Shopify remain excellent stocks for investors focused on the long game. But Apple's most important product, the iPhone, delivered March quarter record sales of $51.3 billion, up 1.5% compared to the year-ago period.
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That has been the case with tech giants Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP), which are up by 40% and 70% year to date, respectively. In the company's second quarter of its fiscal year 2023 -- which ended on April 1 -- Apple's net sales declined by a little under 3% year over year to $94.8 billion. The company's services segment also came out with a record quarter, with its sales growing by 5.5% year over year to $20.9 billion.
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That has been the case with tech giants Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP), which are up by 40% and 70% year to date, respectively. The company's services segment also came out with a record quarter, with its sales growing by 5.5% year over year to $20.9 billion. Shopify Shopify has been busy since the year started.
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2023-05-22 00:00:00 UTC
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Warren Buffett's Portfolio Is More Concentrated Than Ever: 3 Stocks Make Up 63% of Invested Assets
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https://www.nasdaq.com/articles/warren-buffetts-portfolio-is-more-concentrated-than-ever%3A-3-stocks-make-up-63-of-invested
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, everyday and professional investors wisely pay attention. Although the Oracle of Omaha, as he's come to be known, isn't infallible, he's crushed the broader market since becoming CEO in 1965. The 3,787,464% cumulative return in Berkshire's Class A shares (BRK.A) through Dec. 31, 2022 was 153 times greater than the total return, including dividends paid, of the S&P 500 over the same span.
What's interesting about Warren Buffett's investment philosophy is that any investor can follow in his footsteps. He's not using any fancy charting tools or software to make his stock selections. Rather, he's buying stakes in what he deems to be "wonderful companies at a fair price" and holding those investments for very long periods.
Berkshire Hathaway CEO, Warren Buffett. Image source: The Motley Fool.
But the "Buffett-ism" that doesn't get nearly enough attention is the Oracle of Omaha's penchant for portfolio concentration. In the view of both Warren Buffett and right-hand man Charlie Munger, diversification is only necessary if you don't know what you're doing. When Buffett and his investment team find a company they really like, they're not afraid to pile in.
Following the latest round of Form 13F filings with the Securities and Exchange Commission, Warren Buffett's portfolio is more concentrated than ever. With additional purchases to two of Berkshire Hathaway's top holdings, just three stocks now comprise 63% of the $333.4 billion investment portfolio. Note, this doesn't include shares held by New England Asset Management (aka, Buffett's secret portfolio).
Apple: $157.4 billion (47.2% of invested assets)
Perhaps it comes as no surprise to those who closely monitor Warren Buffett's buying and selling activity that he and his investing lieutenants (Todd Combs and Ted Weschler) added to one of his favorite businesses during the first quarter: tech stock Apple (NASDAQ: AAPL). The roughly 20.4 million shares purchased in Q1 increased Berkshire Hathaway's holding in the company to nearly 915.6 million shares. As of May 16, Apple accounted for more than 47% of invested assets.
In Warren Buffett's eyes, Apple is "a better business than any we own." He's certainly correct that it checks all the boxes investors would look for in a highly profitable company with a sustainable moat.
For instance, Interbrand has anointed Apple as the world's most-valuable brand for the past 10 years. That doesn't happen by accident. It's a reflection of Apple's innovation driving consumer interest, as well as consumers having trust in the brand. Few companies are more well-known globally, or have a more loyal customer base.
Apple has also been firing on all cylinders for years with its physical products and subscription services. Since releasing a 5G-capable iPhone in late 2020, it's commanded around a 50% share of smartphone sales in the United States. Meanwhile, subscription services are becoming an ever-more-important source of cash flow for Apple. CEO Tim Cook is masterfully leading this transition to a services-driven future.
But the best thing about Apple, at least for Warren Buffett, might be its capital-return program. It's paying out more than $15 billion in dividends to its shareholders each year, and it's repurchased $586 billion worth of its common stock over the past 10 years. These repurchases are increasing Berkshire Hathaway's ownership stake in Apple without Buffett or his team having to do a thing.
Bank of America: $28.3 billion (8.5% of invested assets)
The second top holding Warren Buffett added to during the first quarter is money-center giant Bank of America (NYSE: BAC).
The Oracle of Omaha and his team purchased close to 22.8 million shares of BofA, increasing Berkshire's ownership stake in the company to 12.9%. Although a greater than 10% position in a bank would normally qualify the owner as a bank holding company, the Federal Reserve Bank of Richmond approved Berkshire Hathaway in August 2020 to up its stake in BofA to as much as 24.9% without any constraints.
Though Apple may be viewed as the better business of any Berkshire owns, bank stocks are where Buffett is most-comfortable putting his company's money to work. Despite bank stocks being cyclical, they're able to take advantage of the disproportionate amount of time the U.S. economy spends expanding, relative to contracting. This allows banks to grow their loans and deposits, and therefore their profits, in lockstep with the U.S. economy over the long run.
One of the more unique aspects of Bank of America is its interest rate sensitivity. Among money-center banks, none sees their net interest income fluctuate more because of changes in interest rates. With the Federal Reserve aggressively raising interest rates in response to historically high inflation, BofA's net interest income has jumped significantly. It's possible Bank of America could deliver earnings growth, even if the U.S. economy were to dip into a recession.
However, Bank of America's unsung hero might just be its technology investments. As of the March-ended quarter, BofA had 45 million active digital users, saw 68 million more transactions completed with Zelle than via checks written, and saw 51% of all sales completed online or via mobile app. Digital sales are considerably cheaper for banks than in-person or phone-based interactions. This digital transformation should steadily improve Bank of America's operating efficiency.
Image source: Coca-Cola.
Coca-Cola: $25.3 billion (7.6% of invested assets)
The third stock that collectively accounts for 63% of Berkshire Hathaway's invested assets and shows that Warren Buffett's investment portfolio is more concentrated than ever is beverage company Coca-Cola (NYSE: KO). Although the Oracle of Omaha and his investment team haven't added to their Coca-Cola stake in quite some time, it does have the distinction of being Berkshire Hathaway's longest continually held stock at 35 years.
What makes Coca-Cola such an attractive stock for an investor like Buffett is the predictability of cash flow that it offers. Coke is a consumer staples stock, which means it provides a good or service that tends to be in demand no matter how well or poorly the U.S. or global economy is performing. While consumers can pare back on some discretionary purchases during economic downturns, they still need food and beverages.
Further helping Coca-Cola's cause is the company's virtually unparalleled geographic diversity. With the exception of Cuba, North Korea, and Russia, Coke has operations in every other country worldwide. This means it can count on predictable cash flow from developed markets, while continuing to move the needle with higher organic growth potential in emerging markets. All told, Coca-Cola has 26 global brands that are generating at least $1 billion in annual sales.
Marketing is another reason Coca-Cola keeps delivering for its shareholders. The company is spending more than half of its ad budget on digital messages that are targeting a younger audience. However, Coke also has relatable ambassadors, a globally recognized brand, and decades' worth of holiday tie-ins that help it cross generational gaps with ease.
And did I mention that Coca-Cola is putting some serious cash in the Oracle of Omaha's pockets? Because of Berkshire Hathaway's ultra-low cost basis of $3.2475 per share in Coca-Cola, Buffett's company is enjoying a 57% annual yield relative to its cost basis. There's absolutely no incentive for Buffett or his investing lieutenants to sell this position -- especially with Coke increasing its base annual payout for 61 consecutive years (and counting).
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.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool 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: $157.4 billion (47.2% of invested assets) Perhaps it comes as no surprise to those who closely monitor Warren Buffett's buying and selling activity that he and his investing lieutenants (Todd Combs and Ted Weschler) added to one of his favorite businesses during the first quarter: tech stock Apple (NASDAQ: AAPL). Although the Oracle of Omaha and his investment team haven't added to their Coca-Cola stake in quite some time, it does have the distinction of being Berkshire Hathaway's longest continually held stock at 35 years. However, Coke also has relatable ambassadors, a globally recognized brand, and decades' worth of holiday tie-ins that help it cross generational gaps with ease.
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Apple: $157.4 billion (47.2% of invested assets) Perhaps it comes as no surprise to those who closely monitor Warren Buffett's buying and selling activity that he and his investing lieutenants (Todd Combs and Ted Weschler) added to one of his favorite businesses during the first quarter: tech stock Apple (NASDAQ: AAPL). Bank of America: $28.3 billion (8.5% of invested assets) The second top holding Warren Buffett added to during the first quarter is money-center giant Bank of America (NYSE: BAC). The Oracle of Omaha and his team purchased close to 22.8 million shares of BofA, increasing Berkshire's ownership stake in the company to 12.9%.
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Apple: $157.4 billion (47.2% of invested assets) Perhaps it comes as no surprise to those who closely monitor Warren Buffett's buying and selling activity that he and his investing lieutenants (Todd Combs and Ted Weschler) added to one of his favorite businesses during the first quarter: tech stock Apple (NASDAQ: AAPL). Bank of America: $28.3 billion (8.5% of invested assets) The second top holding Warren Buffett added to during the first quarter is money-center giant Bank of America (NYSE: BAC). Coca-Cola: $25.3 billion (7.6% of invested assets) The third stock that collectively accounts for 63% of Berkshire Hathaway's invested assets and shows that Warren Buffett's investment portfolio is more concentrated than ever is beverage company Coca-Cola (NYSE: KO).
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Apple: $157.4 billion (47.2% of invested assets) Perhaps it comes as no surprise to those who closely monitor Warren Buffett's buying and selling activity that he and his investing lieutenants (Todd Combs and Ted Weschler) added to one of his favorite businesses during the first quarter: tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway CEO, Warren Buffett. The roughly 20.4 million shares purchased in Q1 increased Berkshire Hathaway's holding in the company to nearly 915.6 million shares.
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15738.0
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2023-05-22 00:00:00 UTC
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Taiwan April export orders miss forecast, outlook cautious
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https://www.nasdaq.com/articles/taiwan-april-export-orders-miss-forecast-outlook-cautious
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By Liang-sa Loh and Faith Hung
TAIPEI, May 22 (Reuters) - Taiwan's export orders slipped for an eighth month in April and missed forecasts, pulled down by soft demand for technology products and slowing global growth, with the outlook remaining dim.
The island's export orders, a bellwether for worldwide technology demand, fell 18.1% from a year ago to $42.49 billion, the Ministry of Economic Affairs said on Monday.
April was the eighth straight month of contraction, though improving from a 25.7% plunge in March, the sharpest decline in nearly 14 years. However, April's figure was worse than a drop of 13.9% forecast in a Reuters poll.
The ministry reiterated previous warnings that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to impede economic growth momentum in the months ahead.
Orders will keep contracting in the first half, it added.
The downward trend in orders is expected to continue until the fourth quarter, the government has said.
Orders for telecommunications products shed 0.9% and electronic products fell 21.9% from a year earlier, the statement said.
The ministry also restated its belief that those negative factors could be offset by positive ones such as renewed demand for emerging technologies like AI, high-performance computing, cloud data centres, and automotive electronics.
Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies.
The ministry said it expected export orders in May to fall by 23.3% to 26.9% from a year earlier.
Taiwan's April orders from China were 24.2% lower on year, compared with a 33.8% drop in March.
Orders from the United States fell 15.2% from a year earlier, versus a 20.7% drop in the prior month.
Orders from Europe were down 26.6%, versus March's 33.8% slide. Orders from Japan rose 2.3% year-on-year.
(Reporting by Liang-sa Loh and Faith Hung; Editing by Ben Blanchard and Bernadette Baum)
((faith.hung@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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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. By Liang-sa Loh and Faith Hung TAIPEI, May 22 (Reuters) - Taiwan's export orders slipped for an eighth month in April and missed forecasts, pulled down by soft demand for technology products and slowing global growth, with the outlook remaining dim. The ministry reiterated previous warnings that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to impede economic growth momentum in the months ahead.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. By Liang-sa Loh and Faith Hung TAIPEI, May 22 (Reuters) - Taiwan's export orders slipped for an eighth month in April and missed forecasts, pulled down by soft demand for technology products and slowing global growth, with the outlook remaining dim. Orders for telecommunications products shed 0.9% and electronic products fell 21.9% from a year earlier, the statement said.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. By Liang-sa Loh and Faith Hung TAIPEI, May 22 (Reuters) - Taiwan's export orders slipped for an eighth month in April and missed forecasts, pulled down by soft demand for technology products and slowing global growth, with the outlook remaining dim. The island's export orders, a bellwether for worldwide technology demand, fell 18.1% from a year ago to $42.49 billion, the Ministry of Economic Affairs said on Monday.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. By Liang-sa Loh and Faith Hung TAIPEI, May 22 (Reuters) - Taiwan's export orders slipped for an eighth month in April and missed forecasts, pulled down by soft demand for technology products and slowing global growth, with the outlook remaining dim. The ministry said it expected export orders in May to fall by 23.3% to 26.9% from a year earlier.
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15739.0
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2023-05-22 00:00:00 UTC
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Should Invesco S&P 500 Revenue ETF (RWL) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-invesco-sp-500-revenue-etf-rwl-be-on-your-investing-radar-7
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The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $1.76 billion, 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. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While 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. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.66%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 18.90% of the portfolio. Consumer Staples and Consumer Discretionary round out the top three.
Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 23.33% of total assets under management.
Performance and Risk
RWL seeks to match the performance of the OFI Revenue Weighted Large Cap Index before fees and expenses. The S&P 500 Revenue-Weighted Index is constructed by using a rules-based methodology that re-weights the constituent securities of the S&P 500 Index according to the revenue earned by the companies in the parent index- subject to a maximum 5% per company weighting.
The ETF has added roughly 3.52% so far this year and is up about 6.62% in the last one year (as of 05/22/2023). In the past 52-week period, it has traded between $67.11 and $79.42.
The ETF has a beta of 0.98 and standard deviation of 17.53% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Revenue 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, RWL is a reasonable 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 $49.25 billion in assets, Vanguard Value ETF has $100.22 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : 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, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : 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, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Alternatives Invesco S&P 500 Revenue 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, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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15740.0
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2023-05-22 00:00:00 UTC
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Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-7
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nan
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nan
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The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.43 billion, 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
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 26.1% of total assets under management.
Performance and Risk
DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses. The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
The ETF has lost about -0.05% so far this year and was up about 3.73% in the last one year (as of 05/22/2023). In the past 52-week period, it has traded between $55.26 and $64.63.
The ETF has a beta of 0.89 and standard deviation of 15.74% for the trailing three-year period, making it a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend 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, DLN is a reasonable 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 $49.25 billion in assets, Vanguard Value ETF has $100.22 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. 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.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap Dividend 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, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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15741.0
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2023-05-22 00:00:00 UTC
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3 Stocks and Cryptos That Are Outperforming the Market
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AAPL
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https://www.nasdaq.com/articles/3-stocks-and-cryptos-that-are-outperforming-the-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While diversifying your portfolio and creating balance is important, holding high-quality outperforming stocks is also a great idea. The market always has a few names that not only perform well during the uptrend, but also manage to cushion from volatility and losses during a down cycle.
Of course, such characteristics are hard, if not impossible, to find anywhere in the crypto market. The asset class needs much more time to mature and stabilize before it can deliver reliability during a slump. But one obvious pick still qualifies.
With that said, here are the outperforming stocks and cryptos I’m watching right now.
AAPL Apple $175.16
MSFT Microsoft $318.34
ETH-USD Ethereum $1,818
Apple (AAPL)
Source: Shutterstock
Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. It is hard to be in the red when holding Apple, and most investors are likely in the green, unless they are the unlucky ones to buy this stock right at its peak (and sell when it declines).
This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. That’s outperformed the S&P 500 index, which gained only 8.7% over the same time frame. The company’s financials have been consistently in the green, and although there are some periods where sales or profits may decline, the company’s immense pricing power and brand value guarantees that there’s nothing to worry about in the long-run.
Analysts expect Apple’s sales growth to rebound in a big way next year. The tech giant is expected to see 6.4% revenue growth and an expansion of earrings per share by 61 cents in 2024. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock. However, current estimates still suggest Apple is a long-term buy, and I remain in this camp.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Microsoft (NASDAQ:MSFT) is a tech behemoth that continues to fire on all cylinders. Much like Apple, Microsoft has been an investment that’s stood the test of time. Indeed, investors who have stuck with Microsoft over the long-term have outperformed.
This is a company that’s outperformed most of its peers of late, thanks to the surge in interest around artificial intelligence. The company’s latest foray into AI and its integration with the Bing search engine has caused a 31% gain year-to-date. Meanwhile, Microsoft has been slowly increasing its dominance in the cloud computing and quantum comping sectors. The latter is what I expect to be the next hot thing, after the AI and cloud computing craze dies down a bit.
Regardless, Microsoft has a stake in almost every hot tech-related sector, and can heavily-capitalize on the current and future trends in the tech industry. The company’s top-line growth has consistently been expanding at a double-digit clip and has stayed positive, even in this tough environment. Profits have also bounced back from two-quarters of decline, increasing by 9.4% in the March quarter.
Ethereum (ETH-USD)
Source: viktoryabov / Shutterstock.com
Unlike the stocks I’ve mentioned above, Ethereum (ETH-USD) is either thriving, or in a state of turmoil, due to its cyclical nature. If you invest in crypto, there will always be periods where the asset goes on a tear or loses a third of its value in a flash crash. But if we’re speaking of assets that do outperform in their own niche, Ethereum is certainly a top pick to consider.
Ethereum has outperformed Bitcoin (BTC-USD) in every cycle since its inception. I believe that trend is likely to continue, as the Ethereum blockchain has been capitalizing on up-and-coming Web3 applications, driven by its early adoption of smart contract technology. On the other hand, Bitcoin is indeed safer since it is much more decentralized. However, the blockchain is aging and lacks the tech needed to support the new Web3-centered crypto industry.
Thus, Ethereum is the best crypto to buy in my opinion, for investors seeking outperformance alongside relative stability in this sector.
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 3 Stocks and Cryptos That Are Outperforming 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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AAPL Apple $175.16 MSFT Microsoft $318.34 ETH-USD Ethereum $1,818 Apple (AAPL) Source: Shutterstock Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock.
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AAPL Apple $175.16 MSFT Microsoft $318.34 ETH-USD Ethereum $1,818 Apple (AAPL) Source: Shutterstock Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock.
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AAPL Apple $175.16 MSFT Microsoft $318.34 ETH-USD Ethereum $1,818 Apple (AAPL) Source: Shutterstock Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock.
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AAPL Apple $175.16 MSFT Microsoft $318.34 ETH-USD Ethereum $1,818 Apple (AAPL) Source: Shutterstock Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock.
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15742.0
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2023-05-22 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-39
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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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15743.0
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2023-05-21 00:00:00 UTC
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7 Promising Growth Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/7-promising-growth-stocks-to-buy-hand-over-fist
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As 2023 unfolds, it brings about several new possibilities in the investment arena, breathing new life into promising growth stocks. After tech stocks were punished in 2022, many of the top tech growth stocks are showing signs of a vibrant comeback. However, sectors previously flourishing, such as energy stocks and regional banks, are now facing major headwinds. With investors contemplating the effects of a potential recession and financial system instability, there has been a strategic rotation back into the most enticing growth stocks to buy.
However, there is a note of caution during this shift. The rosy growth scenario of 2021 may not replicate itself during this market resurgence. The remnants of speculative excess during the stock market rally of 2021, but the market has evolved. Now the market harbors a deeper appreciation for profitability and sustainability, along with durable business models, that will guide the selection of future growth stocks.
AAPL Apple $175.16
GOOG GOOGL Alphabet $123.25
DDOG Datadog $92.09
U Unity Software $29.10
SOFI SoFi Technologies $4.93
SNOW Snowflake $176.82
BROS Dutch Bros $28.52
Growth Stocks To Buy: Apple (AAPL)
Source: 3rdtimeluckystudio / Shutterstock
Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Moreover, its financials have been consistently rising, representing steadfast growth. Additionally, it has made bold strides with aggressive share repurchases and dividends, underpinning its impressive $97 billion annual free cash flow balance.
Let’s turn our attention toward the iPhone, a story of triumph amidst turbulence. Despite the U.S. economic downturn casting a shadow over iPhone sales, Apple’s superior brand prowess has acted as a robust shield. IPhone sales increased substantially during the first quarter, despite the slowdown in its underlying market. The spotlight, however, rightfully belongs to Apple’s Services unit, which has delivered an astounding 463% sales growth over the past decade.
Alphabet (GOOG, GOOGL)
Source: Khakimullin Aleksandr / Shutterstock
When the AI wave swept in earlier this year, many felt that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) missed a step. However, Alphabet’s recent I/O developer conference turned the tables, pointing to the tech giant’s retreat. Google unveiled a suite of generative AI tools positioned to dethrone ChatGPT from its perch. Moreover, it’s clear that Google won’t be letting Bing off the hook in establishing its dominance in the search engine battleground.
Alphabet and Microsoft stand on promising ground in the grand scheme of things, with AI presenting a golden growth opportunity. Google’s lackluster earnings report is essentially just a blip on the radar. With flattening interest rates and the firm’s AI aspirations soaring, GOOG stock’s value seems to have hitched a ride on a rocket. Alphabet is charting an exciting course in the ever-evolving tech cosmos as we advance.
Datadog (DDOG)
Source: MEE KO DONG / Shutterstock
Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. The enterprise’s one-stop-shop platform delivers a masterstroke of convenience, enabling firms to watch over and secure their data easily.
Nailing the art of growth, Datadog offers an awe-inspiring trajectory. Revenues have skyrocketed from a humble $101 million in 2017 to an eye-catching $1.7 billion in 2022. Year-over-year growth stands over 50%, roughly 318% higher than the sector median. What’s more impressive is that forward revenue estimates point to more than 37% top-line growth ahead. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
Unity Software (U)
Source: smshoot/ShutterStock.com
Unity Software (NYSE:U) dazzles as a leader in the graphics engine space, forming the digital backbone of the video game sphere. Over the years, it has evolved from being a pure-play game developer effectively branching out into the vibrant worlds of video architecture, animation, and eCommerce.
Over the years, it’s operated a financially resilient business, with average revenue growth of 40% over the past five years. Moreover, forward revenue growth is estimated at over 32%. Additionally, profitability concerns are dissipating as it has significantly expanded its profitability situation in the past year. Also, its belt-tightening measures have borne fruit, with analysts expecting an anticipated swing from a 39-cent loss to a 35-cent profit per share. Furthermore, Tipranks analysts forecast a 26.8% upside from current prices, positioning it for powerful long-term gains ahead.
SoFi Technologies (SOFI)
Source: Shutterstock
Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. It was awarded a bank charter designation, further bolstering its comprehensive range of financial service offerings and solidifying its position in the fintech arena.
Furthermore, unfazed by market headwinds, SoFi Technologies has effectively emerged as a leading contender in personal finance. Its recent earnings release showed remarkable revenue and adjusted profitability beat, besting market projections by a mile. Sales from its lending segment were at $325 million, up 33% from last year’s first quarter. Financial services sales tripled yearly to a whopping $81 million, while technology sales increased by 28% YOY to $78 million. The firm remains on course to achieving quarterly GAAP net income profitability by the fourth quarter of 2023, a testament to its confidence in its future performance. Based on Tipranks analyst estimates, SOFI stock trades at over a 50% upside from current price levels.
Snowflake (SNOW)
Source: Freedom365day / Shutterstock.com
Snowflake (NYSE:SNOW) has established its presence as a cloud data warehousing prodigy, effectively charting a breathtaking course in the cloud realm. Its services enable firms to ingest massive amounts of data, crafting valuable analytics from data sources.
However, its journey isn’t just a flash in the pan; its status tells a compelling story. While the pace at which it grows may be moderating from its lofty triple-digit growth rates, its anticipated 40% revenue surge to $2.88 billion this year indicates an undeniably robust trajectory.
In its most recent quarter, it delivered a whopping 54% fourth-quarter product revenue growth and an enviable net revenue retention rate of 158%. This implies an average growth rate of 58% per customer. Hence, as we advance, Snowflake, no doubt, continues carving out an impressive path in the cloud cosmos.
Dutch Bros (BROS)
Source: Shutterstock
Dutch Bros (NYSE:BROS) has been zipping ahead of its competition with a fresh take on the traditional coffee-shop concept, winning the hearts of the Gen Z demographic with its nimble locations and selfie-ready drinks ideal for its vibrant customer base.
Despite recently unveiling relatively strong first-quarter results, the company is in a spot of bother. Its 30% YOY revenue growth missed the mark, causing its stock to wobble in the process. However, these growing pains are par for the course for young up-and-coming businesses such as Dutch Bros that are sprinting towards success. It added a whopping 45 new stores already in the first quarter and a revenue growth forecast of around 30% for this year and the next. The potential to brew thousands of new stores over the next few years is a perk that’s just too good to pass up.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 Promising Growth Stocks to Buy Hand Over Fist appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. With investors contemplating the effects of a potential recession and financial system instability, there has been a strategic rotation back into the most enticing growth stocks to buy. Additionally, it has made bold strides with aggressive share repurchases and dividends, underpinning its impressive $97 billion annual free cash flow balance.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. SoFi Technologies (SOFI) Source: Shutterstock Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. Snowflake (SNOW) Source: Freedom365day / Shutterstock.com Snowflake (NYSE:SNOW) has established its presence as a cloud data warehousing prodigy, effectively charting a breathtaking course in the cloud realm.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As 2023 unfolds, it brings about several new possibilities in the investment arena, breathing new life into promising growth stocks. SoFi Technologies (SOFI) Source: Shutterstock Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Alphabet (GOOG, GOOGL) Source: Khakimullin Aleksandr / Shutterstock When the AI wave swept in earlier this year, many felt that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) missed a step. It added a whopping 45 new stores already in the first quarter and a revenue growth forecast of around 30% for this year and the next.
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2023-05-21 00:00:00 UTC
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Better Buy: Apple vs. Nvidia
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-nvidia-0
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nan
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After a stock market sell-off last year, the tech industry is on the rise in 2023, alongside innovative developments in consumer tech, artificial intelligence (AI), and more. As a result, the companies leading these sectors make increasingly attractive investments.
Since its founding almost 50 years ago, Apple (NASDAQ: AAPL) has conquered consumer tech by offering quality products across multiple markets. Its success in the industry has helped its stock climb over 1,000% in the last decade, granting investors consistent and reliable gains.
Meanwhile, Nvidia (NASDAQ: NVDA) has captured Wall Street's attention by achieving an over 80% market share in consumer graphic processing units (GPUs) and using it to catapult itself to the top of the booming AI industry.
These companies likely have much to offer investors over the long term, thanks to their positions at the top of multiple lucrative markets. However, if you only have room for one in your portfolio, you'll need to know which is the better buy. So let's determine whether your money is better off with Apple or Nvidia's stock.
Apple offers consistent gains and unrivaled brand loyalty
This month, Apple's stock surpassed its year-over-year record high price of $174, achieved in August 2022, by inching over $175. While a stock reaching such heights might suggest it's too expensive, Apple shares continue to be a buy thanks to their consistent and reliable growth. In the last five years alone, the company's stock has risen 276% despite having to contend with a global pandemic and an economic downturn.
Apple's reliability largely stems from the brand loyalty it has garnered from consumers over the years. Warren Buffett described the company's consumer devotion perfectly last month when he said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." While surprising, the sentiment is true for millions of people who would happily switch brands of other products before abandoning their Apple devices.
The company's immense consumer loyalty has given it the power to rapidly grow public adoption of newer technologies. Markets like smartphones, tablets, Bluetooth headphones, and smartwatches each saw a massive spike in consumer adoption when Apple entered the picture, with the company now holding the largest market share in each of these sectors.
Apple's expected venture into virtual/augmented reality with a new headset later this year could make it the leader of this $31 billion market as well.
Nvidia enjoyed a monster rally in 2023 as it rides the AI wave
Nvidia's stock has skyrocketed 116% since Jan. 1, with bullish investors excited by the company's prospects in AI. The company has taken a top spot in the industry by becoming the primary supplier of GPUs to OpenAI's ChatGPT, an advanced chatbot capable of producing human-like dialogue. Considering ChatGPT was one of the main drivers of the current AI boom, Nvidia is well positioned to become the industry's go-to chip provider.
According to data from Grand View Research, the AI market is projected to develop at a compound annual growth rate of 37% through 2030, valued at about $137 billion last year. GPUs like Nvidia's are crucial to that growth, as the chips' power is required to run and develop AI software.
Moreover, a report from TrendForce in March revealed ChatGPT used about 20,000 GPUs in 2020, with that figure projected to hit 30,000 as it readies for commercialization. As more tech companies pivot their businesses to AI development, Nvidia has a massive advantage with its ability to sell its chips to the entire market. Competition from chipmakers AMD and Intel is growing, but Nvidia has so far built up a lead that will be difficult to beat.
Is Apple or Nvidia stock the better buy?
Apple and Nvidia have vast potential in their respective industries and will likely offer investors considerable gains in the coming years. However, choosing which company is the better buy lies in which is less of a risk and the more reliable choice. In this case, Apple stock is the better buy.
Nvidia has vast potential in AI, but its soaring stock price this year banking on the success of an untested market makes its stock the more volatile option. Meanwhile, Apple has proven time and time again its dominance in consumer tech and its ability to steal a leading market share in nearly any sector it enters.
Moreover, Apple's forward price-to-earnings ratio of 30 compared to Nvidia's 70 makes the iPhone company a better value. So if you can only choose one, go with Apple's stock. However, Nvidia shares are still a compelling option if you're looking to invest in the burgeoning AI industry.
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 15, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since its founding almost 50 years ago, Apple (NASDAQ: AAPL) has conquered consumer tech by offering quality products across multiple markets. Meanwhile, Nvidia (NASDAQ: NVDA) has captured Wall Street's attention by achieving an over 80% market share in consumer graphic processing units (GPUs) and using it to catapult itself to the top of the booming AI industry. The company has taken a top spot in the industry by becoming the primary supplier of GPUs to OpenAI's ChatGPT, an advanced chatbot capable of producing human-like dialogue.
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Since its founding almost 50 years ago, Apple (NASDAQ: AAPL) has conquered consumer tech by offering quality products across multiple markets. Apple offers consistent gains and unrivaled brand loyalty This month, Apple's stock surpassed its year-over-year record high price of $174, achieved in August 2022, by inching over $175. Nvidia has vast potential in AI, but its soaring stock price this year banking on the success of an untested market makes its stock the more volatile option.
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Since its founding almost 50 years ago, Apple (NASDAQ: AAPL) has conquered consumer tech by offering quality products across multiple markets. Nvidia enjoyed a monster rally in 2023 as it rides the AI wave Nvidia's stock has skyrocketed 116% since Jan. 1, with bullish investors excited by the company's prospects in AI. Is Apple or Nvidia stock the better buy?
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Since its founding almost 50 years ago, Apple (NASDAQ: AAPL) has conquered consumer tech by offering quality products across multiple markets. According to data from Grand View Research, the AI market is projected to develop at a compound annual growth rate of 37% through 2030, valued at about $137 billion last year. Is Apple or Nvidia stock the better buy?
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2023-05-21 00:00:00 UTC
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Why Apple, Comcast, and Warner Bros. Discovery Are No-Brainer Buys Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-comcast-and-warner-bros.-discovery-are-no-brainer-buys-right-now
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Earnings season is in full swing this month with countless stocks on the move. The evolving market has created an exciting time to expand your portfolio by investing in companies with massive potential over the long term.
After an economic downturn in 2022, easing inflation is allowing many consumer-reliant businesses to begin recovering. The improving situation suggests markets like consumer tech and entertainment could be on a growth path, with industry leaders becoming increasingly compelling investments.
Here's why Apple (NASDAQ: AAPL), Comcast (NASDAQ: CMCSA), and Warner Bros. Discovery (NASDAQ: WBD) are no-brainer buys right now.
Apple: The king of consumer tech
Apple launched the first iPhone in January 2007, changing the face of consumer tech and the direction of its business forever. The company's stock has skyrocketed over 5,000% since then, with Apple using its smartphone success to dominate multiple other areas of the tech industry.
The brand loyalty Apple has garnered from the iPhone has allowed it to succeed in nearly every subsequent sector it has entered, including achieving leading market shares in tablets, smartwatches, and headphones. In fact, a 2019 report from Fortune magazine revealed that AirPods alone have become an $8 billion business. If separate from Apple, AirPods would have ranked No. 384 on the Fortune 500 list in 2019, ahead of AMD at the time, only three years after the product first launched.
Apple's potent brand and quality products have encouraged consumers to keep returning, which is promising for the company's expected launch of a new virtual/augmented reality (VR/AR) headset this year. Apple could soon dominate the burgeoning market with this device, boosting adoption of the technology and significantly profiting from the industry's growth.
As a result, Apple shares are an immensely compelling buy ahead of the company's venture into the VR/AR market.
Comcast: A lucrative pivot to content production
Comcast has had a rocky few years alongside the declining cable industry as linear offerings have fallen out of favor with consumers. However, the company's gradual transition to content production at the box office and in streaming could be a massive green flag for its future.
The company boasts popular movie franchises such as Jurassic Park, Back to the Future, and Fast & Furious. Meanwhile, Comcast's animation studio Illumination produced April's smash hit film The Super Mario Bros. Movie, which has crossed $1.2 billion since releasing on April 5.
Moreover, Comcast's subsidiary NBCUniversal has produced some of the world's most successful sitcoms, including The Office, Parks and Recreation, and Brooklyn 99. These shows are useful tools for attracting subscribers to the company's streaming service, Peacock. In fact, The Office was the most streamed show in 2020 with audiences watching over 57 billion minutes on Netflix. For reference, the second-most-streamed show was Grey's Anatomy, with 39 billion minutes.
Netflix lost The Office to Comcast's Peacock in 2022, a move that has undoubtedly helped drive the platform's growth. Peacock subscribers increased by over 60% to 22 million in Q1 2023, with revenue rising 45% to $685 million. With an attractive forward price-to-earnings ratio of 11, the company's stock is a stellar buy right now.
Warner Bros. Discovery: A cheap option with a lot of potential
Warner Bros. Discovery shares are an increasingly tempting investment as short-term headwinds have caused its stock to fall 10% in the last month. Investors have pulled back after the company's Q1 2023 revenue missed Wall Street expectations by $70 million. However, the company continues to have a solid long-term outlook thanks to consistent hits in its content offerings and a profitable streaming business.
Despite a revenue miss, Q1 2023 represented a massive achievement for Warner Bros. Discovery. The streaming business turned a profit for the first time, with its direct-to-consumer segment reporting $50 million in EBITDA and 1.6 million new streaming subscribers. The positive development comes earlier than expected, with CEO David Zaslav previously stating the company's streaming business would break even in 2024 and hit profitability by 2025.
In addition to streaming growth, Warner Bros. Discovery has landed multiple wins with its content this year. Its hit HBO series The Last of Us premiered in January and became the most-watched show in the company's history outside of the U.S. Meanwhile, its Harry Potter-themed video game Hogwarts Legacy earned $1 billion in Q1 2023, more than any other game in the quarter.
With content that is grabbing consumers' attention, Warner Bros. Discovery's recent stock tumble has vastly increased its value, and analysts seem to agree. Their average 12-month target for the stock price is $21, or 75% higher than its current position. The optimism isn't farfetched considering Warner Bros. Discovery's potential, and the stock is worth considering for your next investment.
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 15, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Netflix, and Warner Bros. Discovery. The Motley Fool recommends Comcast. 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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Here's why Apple (NASDAQ: AAPL), Comcast (NASDAQ: CMCSA), and Warner Bros. The brand loyalty Apple has garnered from the iPhone has allowed it to succeed in nearly every subsequent sector it has entered, including achieving leading market shares in tablets, smartwatches, and headphones. Apple's potent brand and quality products have encouraged consumers to keep returning, which is promising for the company's expected launch of a new virtual/augmented reality (VR/AR) headset this year.
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Here's why Apple (NASDAQ: AAPL), Comcast (NASDAQ: CMCSA), and Warner Bros. Despite a revenue miss, Q1 2023 represented a massive achievement for Warner Bros. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Netflix, and Warner Bros.
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Here's why Apple (NASDAQ: AAPL), Comcast (NASDAQ: CMCSA), and Warner Bros. Apple: The king of consumer tech Apple launched the first iPhone in January 2007, changing the face of consumer tech and the direction of its business forever. The company's stock has skyrocketed over 5,000% since then, with Apple using its smartphone success to dominate multiple other areas of the tech industry.
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Here's why Apple (NASDAQ: AAPL), Comcast (NASDAQ: CMCSA), and Warner Bros. Discovery's potential, and the stock is worth considering for your next investment. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Netflix, and Warner Bros.
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2023-05-21 00:00:00 UTC
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How to Find the Next Apple, Microsoft, or Netflix
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AAPL
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https://www.nasdaq.com/articles/how-to-find-the-next-apple-microsoft-or-netflix
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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: Yesterday, I introduced Whitney Tilson, an investment analyst friend of mine who has a fantastic track record. As I mentioned, we’re teaming up for a 2 Legends Predict 2023 event. (You can click here to sign up if you haven’t already.)
Today, I want to share a great article by Whitney, where he explains how to find the big stock winners. Check it out below.
First off, let me take a moment to thank my good friend Louis Navellier. Yesterday in this space, Louis was kind enough to introduce me to you – the InvestorPlace readership.
I really appreciate it.
In that article, Louis told you of how I discovered Amazon.com, Inc. (AMZN) before it became the trillion-dollar behemoth we know it as today.
And about how I bought…
Apple, Inc. (AAPL) in 2000…
Microsoft Corporation (MSFT) in 2010…
and Netflix, Inc. (NFLX) in 2012.
These investments were one of the reasons I was able to grow my hedge fund from $1 million in assets in 1999 to more than $200 million at its peak.
In today’s essay, I’ll show you exactly how I spotted these moonshots well before they became the mega-cap blue chips we know them as today.
Let’s look at Apple first.
The “Network Effect” at Work
When I bought shares at a split-adjusted $0.35, legendary founder CEO Steve Jobs had just returned to the struggling company, which had recently launched its iMac desktop computer. This was years before iPods, iPads, iPhones, AirPods, and the App Store ever existed.
But I knew Apple was special at the time for a number of reasons:
It had (and continues to have) a base of fiercely loyal users.
At the time, 50 million U.S. homes in the didn’t have a personal computer (not to mention hundreds of millions of homes overseas). These people were significantly less technologically sophisticated than average, which played into Apple’s strengths: its products being easy to set up and user-friendly.
Apple had a long history of developing stylish, innovative products that differentiated it from its competitors and allowed it to charge a premium price. This is still the case today, and we continue to see this with every new product Apple creates.
The company’s balance sheet was pristine, with a huge cash hoard, little debt, and a “light” business model with low inventories and capital expenditures.
At the time, Apple was sitting on more than $4 billion in cash and short-term investments, and $819 million in long-term investments, offset by a mere $300 million in long-term debt. That added up to more than two-thirds of its share price.
Plus, Apple had the ultimate “wild card” in the form of Jobs, who was a genius and a visionary… and who deserved the lion’s share of the credit for engineering Apple’s comeback.
Jobs sadly passed away in 2011, but Apple continues to execute brilliantly.
The iPhone basically put the nail in the coffin of its top competitor, BlackBerry Limited (BB), which saw its market cap crater from $64 billion when Apple released the first iPhone in 2007 to around $3 billion today.
The iPhone was a total game changer, putting computers in the pockets of millions of Americans that allowed them to use social media, send emails, stream video, and play games anywhere they wanted.
Apple is the prime example of the “network effect” at work: The value of its products and services increases as the number of people who use them increases.
Think about the App Store. Rather than hiring hundreds of thousands of developers to create apps, Apple incentivized outside developers to create apps for its users – growing its ecosystem exponentially.
The more users there are to download apps, the more developers want to create apps for those users, and so forth. That’s why App Store revenues have ballooned from $39 billion in 2017 to more than $85 billion in 2022.
That’s what I mean when I say these companies are hyperscalable.
It was the same case with Microsoft…
How MSFT Unlocked Hyperscalability
I first bought Microsoft in mid-2010 before it went on to be a 17-bagger.
Despite controlling more than 90% of the world’s operating systems and sporting rising profits, the stock had fallen sharply.
Investors were worried that Microsoft was losing to Google in search engines and would lose market share in personal computing to Apple. Plus, its hardware business was struggling.
But backing out its nearly $40 billion pile of cash, MSFT shares were trading for just eight times earnings. As I told a reporter from Reuters at the time, “That’s insanely cheap for a company of this caliber and market position.”
A few years later, Microsoft transitioned to a software-as-a-service (SaaS) model, meaning that it charged a few bucks a month in perpetuity for access to the Microsoft Office Suite.
That allowed Microsoft to become extremely hyperscalable: It didn’t really cost the company anything extra whether it had 1,000 subscribers or 1 billion subscribers.
And like Apple, as more and more people used Word and Excel, other people wanted to share the compatibility, leveraging its network effect tremendously.
These powerful forces propelled MSFT shares higher, and in 2019, Microsoft joined Apple in the $1 trillion market-cap club.
Netflix took a similar path to stardom as Microsoft…
I Was Wrong on NFLX… Before I Was Right
At the turn of the century, Netflix had just 400,000 subscribers. Today, that number has exploded to nearly 233 million… a staggering increase of nearly 58,000%. Take a look…
In the process, Netflix put Blockbuster Video out of business entirely. (Ironically, Blockbuster had the opportunity to buy Netflix for $50 million back in 2000 but passed. A decade later, Blockbuster filed for bankruptcy.)
But as we saw with Apple and Microsoft, Netflix didn’t take a smooth ride up, either. In an ill-fated strategy, the company separated out its DVD-by-mail business from its streaming business in 2011 and gave it a new name – Qwikster – forcing people to subscribe to it separately.
Netflix customers revolted – the company lost 800,000 subscribers in that quarter alone – and in less than a month, CEO Reed Hastings walked back the decision. But the damage was done… Netflix went from growing 30% year over year to just above 10% for three quarters. Shares fell from $43 to less than $10.
I was short Netflix at the time and even published an article called “Why We’re Short Netflix”…
Which prompted Hastings to publish an article of his own, titled “Whitney Tilson: Cover Your Short Position. Now.”
Hastings and I connected through email, and he invited me to brunch at his house in California where he helped me realize I was looking at Netflix with a completely wrong lens.
I was looking at how many people were paying $8 per month and trying to figure out how much each subscriber was worth. Instead, Hastings explained that Netflix’s streaming platform was already built… and now it was enjoying the network effect as more and more people were using it.
Because Netflix paid a fixed amount for its content, it cost Netflix virtually nothing to add a new subscriber. Each new subscription was almost pure profit.
I immediately closed my short and, after the stock fell sharply, backed up the truck on Netflix shares. I went on CNBC the exact day Netflix bottomed following the stock’s crash in 2011 and predicted it would be the coming decade’s Amazon, whose shares were up 1,000% over the past decade.
It turns out I was far too conservative: NFLX shares rose 90-fold over the next nine years!
One Trait in Common
Apple, Microsoft, and Netflix all share one common trait: They’re extremely “hyperscalable.”
To see what I mean, take a look at the following chart…
As you can see, this hyperscalable model has led to massive revenue growth among all three companies over the past several years…
This has, in turn, led to massive returns for shareholders over the same period…
I talk to people all the time who kick themselves for not investing in Amazon, Apple, Microsoft, and Netflix…
Everyone wishes they had the opportunity to invest in these stocks back then. But I believe that right now, investors have a similar opportunity to make a fortune in the markets.
I think people who get into the right stocks today will look back at this the past two years’ volatile market as one of the best things that ever happened to their portfolio.
That’s why I’m joining forces with my friend Louis Navellier, an industry legend and billion-dollar money manager who has found 18 different 100-baggers in his career. We’re putting the finishing touches on a presentation where we’ll explain how a coming event could create a wave of millionaires in the markets.
Louie and I will share the details of our big prediction – and how you can profit from it – during our 2 Legends Predict 2023 event on Tuesday, May 23. Since you’ve already signed up, there’s nothing you need to do. We’ll send you a link to the event as soon as soon as it’s available.
Louie will be back in touch tomorrow with a special essay in which he discusses the first-quarter earnings season and a big catalyst that could boost two tech behemoths higher.
Sincerely,
Whitney Tilson
Editor, Empire Investment Report
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 How to Find the Next Apple, Microsoft, or Netflix 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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And about how I bought… Apple, Inc. (AAPL) in 2000… Microsoft Corporation (MSFT) in 2010… and Netflix, Inc. (NFLX) in 2012. The “Network Effect” at Work When I bought shares at a split-adjusted $0.35, legendary founder CEO Steve Jobs had just returned to the struggling company, which had recently launched its iMac desktop computer. One Trait in Common Apple, Microsoft, and Netflix all share one common trait: They’re extremely “hyperscalable.” To see what I mean, take a look at the following chart… As you can see, this hyperscalable model has led to massive revenue growth among all three companies over the past several years… This has, in turn, led to massive returns for shareholders over the same period… I talk to people all the time who kick themselves for not investing in Amazon, Apple, Microsoft, and Netflix… Everyone wishes they had the opportunity to invest in these stocks back then.
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And about how I bought… Apple, Inc. (AAPL) in 2000… Microsoft Corporation (MSFT) in 2010… and Netflix, Inc. (NFLX) in 2012. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s Note: Yesterday, I introduced Whitney Tilson, an investment analyst friend of mine who has a fantastic track record. One Trait in Common Apple, Microsoft, and Netflix all share one common trait: They’re extremely “hyperscalable.” To see what I mean, take a look at the following chart… As you can see, this hyperscalable model has led to massive revenue growth among all three companies over the past several years… This has, in turn, led to massive returns for shareholders over the same period… I talk to people all the time who kick themselves for not investing in Amazon, Apple, Microsoft, and Netflix… Everyone wishes they had the opportunity to invest in these stocks back then.
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And about how I bought… Apple, Inc. (AAPL) in 2000… Microsoft Corporation (MSFT) in 2010… and Netflix, Inc. (NFLX) in 2012. At the time, Apple was sitting on more than $4 billion in cash and short-term investments, and $819 million in long-term investments, offset by a mere $300 million in long-term debt. I was short Netflix at the time and even published an article called “Why We’re Short Netflix”… Which prompted Hastings to publish an article of his own, titled “Whitney Tilson: Cover Your Short Position.
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And about how I bought… Apple, Inc. (AAPL) in 2000… Microsoft Corporation (MSFT) in 2010… and Netflix, Inc. (NFLX) in 2012. Let’s look at Apple first. This is still the case today, and we continue to see this with every new product Apple creates.
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2023-05-21 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-6
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It's hard to beat Warren Buffett's knack for making money, which is why so many investors keep a sharp eye on the stocks Buffett buys through his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
That doesn't mean every Buffett stock is worth your money, but some of his portfolio looks too good to pass up. Of the nearly 50 stocks Buffett currently owns, here are five you might want to buy now and hold forever.
A longtime Buffett favorite
Johnson & Johnson (NYSE: JNJ) is one of the longest-held stocks in Buffett's portfolio, and there are solid reasons you also might want to buy and hold this healthcare stock.
Johnson & Johnson recently spun off its slow-moving, low-margin consumer health business -- known for brands like Tylenol, Motrin, Neutrogena, and Band-Aid, among others -- into a wholly owned subsidiary called Kenvue. The idea is to focus exclusively on its growth-oriented businesses of pharmaceuticals and medtech, primarily medical devices.
It looks like a smart move. By 2025, Johnson & Johnson expects to generate $60 billion in sales from pharmaceuticals, up from $52 billion in 2022. As for medtech, the acquisition of Abiomed in December added another $1 billion platform and a new vertical, heart recovery, to Johnson & Johnson's portfolio. The healthcare giant estimates the addressable heart-recovery market size in the U.S. to be nearly $35 billion.
These businesses should ensure Johnson & Johnson remains a cash-flow machine -- in just the past five years, it generated nearly $96 billion in free cash flow (FCF) and returned more than 60% of it to shareholders in the form of dividends and share buybacks. This year, Johnson & Johnson increased its dividend for the 61st consecutive year. It's hard to give such a solid Buffett stock a pass.
Betting on oil, and dividends
Buffett went big on oil stocks over the past year or so, with Chevron (NYSE: CVX) turning out to be one of his favorites. Even after the sale of some shares, Chevron was still Berkshire Hathaway's fifth largest holding at the end of the first quarter.
Image source: The Motley Fool.
Chevron has historically shrugged off the volatility in crude oil prices and delivered superior returns to shareholders, with dividends playing a major part. Chevron has increased its annual dividend payout for 36 consecutive years now, including a 6% raise earlier this year.
One of Chevron's biggest strengths is its capability to flex production to adjust to market conditions. So in 2022, it made the most of the boom in oil and gas prices and ended the year with record production, earnings, and FCF.
Over the next five years, Chevron expects its upstream earnings per barrel to nearly double at the Brent crude price of only $60 per barrel. It is also targeting more than 10% growth in annual FCF through 2027. So if you buy Chevron stock now, you don't really have to worry about earnings or dividend growth for years, and that's what makes this 3.8%-yielding Buffett stock such a great long-term buy.
The EV stock you can't afford to miss
Another Buffett stock to buy and hold is BYD (OTC: BYDDY). I don't blame you if you haven't heard about this Buffett holding. It's a Chinese electric-vehicle (EV) maker, and Berkshire Hathaway discloses its position in the company only through filings on the Hong Kong stock exchange. Buffett sold some shares of BYD in recent months, but as of the last filing from early May, Berkshire still owned nearly 10% stake in the EV maker.
BYD isn't just any EV company -- it wants to surpass Tesla (NASDAQ: TSLA) this year in terms of global EV sales. And that's not a farfetched idea. Although Tesla is the world's largest manufacturer of battery electric vehicles (BEVs), BYD's sales for BEVs and plug-ins combined already tops Tesla's. BYD is now eyeing Tesla's crown in EVs and targeting sales of 3 million units in 2023. That's huge.
The biggest reason BYD stands out, though, is that it's also the world's second largest battery manufacturer, after CATL. Batteries are the most important component of EVs, so BYD's vertical integration is a bigger competitive advantage than one could imagine. In fact, just earlier this month, even Tesla started sourcing batteries from BYD for a version of its Model Y SUV.
With BYD's NEV sales jumping 93% year over year in Q1 and gross margin rising significantly to almost 18%, it's the go-to Buffett stock to own if you want to bet on the red-hot EV industry.
The no-brainer Buffett stock
Visa (NYSE: V), the next Buffett stock to buy, has crushed the S&P 500 in the past couple of decades. The stock's superior performance is a reflection of its steady earnings and cash flow growth, hefty margins, and solid growth catalysts. Given the opportunities ahead of Visa, this stock should continue to outperform.
As one of the largest payments processing companies in the world, Visa aims to drive the global shift of trillions of dollars in cash spending to card and digital payments. It's doing so by targeting consumer payments through core products like co-branded credit and debit cards, offering all kinds of payments from person-to-person to government-to-consumer and everything in between, and providing value-added services like open banking, risk management, and advisory.
In its fiscal year that ended Sept. 30, 2022, Visa reported payments volumes of $11.6 trillion, processed transactions worth $193 billion, generated a revenue of $29.3 billion, and earned a solid net profit of $15 billion on it.
Those staggering numbers, and Visa's continued growth in the 2023 -- its revenue hit a record quarterly high of $8 billion in Q2 -- makes it a no-brainer Buffett stock to own.
Buffett loves this investing idea
Although Berkshire Hathaway mostly owns individual stocks, Buffett swears by exchange-traded funds (ETFs). The legendary investor even entered a bet with an active hedge fund manager in 2008, proclaiming that an index fund could beat the manager over the next 10 years. It was a landslide victory for Buffett, and he has consistently owned two ETFs, including the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
The SPDR S&P 500 ETF holds the same stocks in the same proportion as the S&P 500 index. So by buying its units, you can gain immediate exposure to 500 large-cap stocks across 11 sectors and 24 industries. The top five sectors by weight include information technology, healthcare, financials, consumer discretionary, and industrials. Apple and Microsoft are currently the index fund's two largest holdings, followed by Amazon, Nvidia, Alphabet, Tesla, and Berkshire Hathaway.
In a CNBC interview from 2017, Buffett advised investors to "consistently buy an S&P 500 low-cost index fund" through "thick and thin, and especially through the thin." This Buffett advice holds up just as well today, which makes it worth considering putting money into one of Buffett's favorite, the SPDR S&P 500 ETF.
10 stocks we like better than Johnson & Johnson
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*Stock Advisor returns as of May 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Berkshire Hathaway, Microsoft, Nvidia, Tesla, and Visa. 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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Chevron has historically shrugged off the volatility in crude oil prices and delivered superior returns to shareholders, with dividends playing a major part. It's a Chinese electric-vehicle (EV) maker, and Berkshire Hathaway discloses its position in the company only through filings on the Hong Kong stock exchange. Those staggering numbers, and Visa's continued growth in the 2023 -- its revenue hit a record quarterly high of $8 billion in Q2 -- makes it a no-brainer Buffett stock to own.
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In its fiscal year that ended Sept. 30, 2022, Visa reported payments volumes of $11.6 trillion, processed transactions worth $193 billion, generated a revenue of $29.3 billion, and earned a solid net profit of $15 billion on it. Apple and Microsoft are currently the index fund's two largest holdings, followed by Amazon, Nvidia, Alphabet, Tesla, and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Berkshire Hathaway, Microsoft, Nvidia, Tesla, and Visa.
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A longtime Buffett favorite Johnson & Johnson (NYSE: JNJ) is one of the longest-held stocks in Buffett's portfolio, and there are solid reasons you also might want to buy and hold this healthcare stock. So if you buy Chevron stock now, you don't really have to worry about earnings or dividend growth for years, and that's what makes this 3.8%-yielding Buffett stock such a great long-term buy. The no-brainer Buffett stock Visa (NYSE: V), the next Buffett stock to buy, has crushed the S&P 500 in the past couple of decades.
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It's hard to beat Warren Buffett's knack for making money, which is why so many investors keep a sharp eye on the stocks Buffett buys through his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). By 2025, Johnson & Johnson expects to generate $60 billion in sales from pharmaceuticals, up from $52 billion in 2022. So if you buy Chevron stock now, you don't really have to worry about earnings or dividend growth for years, and that's what makes this 3.8%-yielding Buffett stock such a great long-term buy.
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15748.0
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2023-05-21 00:00:00 UTC
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Prediction: These Will Be the First 4 Stocks to Top $5 Trillion
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-these-will-be-the-first-4-stocks-to-top-%245-trillion
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Just how much is $5 trillion? If you could stack 5 trillion $1 bills on top of each other, they'd go all the way to the moon and then some. We're talking about a lot of money.
Right now, no company on the planet has a market cap of anywhere close to $5 trillion. However, it's only a matter of time before the threshold is exceeded. I'm not sure exactly when it will happen. But I predict that four stocks will be the first to top $5 trillion.
1. Apple
My take is that Apple (NASDAQ: AAPL) is practically a no-brainer to be among the initial stocks to reach the $5 trillion mark. The tech giant is currently more than halfway there with a market cap of almost $2.8 trillion.
How will Apple add another $2.2 trillion or so to its valuation? I think the company has three primary paths:
Higher iPhone sales
Higher services revenue
New products and services
Achieving higher iPhone sales shouldn't be too terribly difficult, especially with the increased adoption of 5G networks. Higher services revenue won't be hard to pull off, either.
I'm most intrigued by what new products and services Apple will introduce in the coming years. A mixed-reality headset and expansion into health insurance are already anticipated, but the company could have a few surprises along the way, too.
2. Microsoft
Microsoft (NASDAQ: MSFT) isn't all that far behind Apple (relatively speaking, anyway). Its market cap currently is a little under $2.4 trillion.
You won't find many hot technology areas where Microsoft doesn't already have a significant presence. Artificial intelligence (AI), augmented reality (AR), cloud hosting, and quantum computing are just the tip of the iceberg.
I predict that all of these will be much bigger markets over the next decade. And I fully expect that Microsoft will continue to be a leader in all of them.
3. Alphabet
Much of what I just said about Microsoft also applies to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The Google parent is a pioneer in multiple game-changing technologies. Its market cap currently stands at nearly $1.6 trillion.
Alphabet's Google Cloud should be a huge winner from the AI boom as companies seek to develop AI apps. However, I think that quantum computing could be the less-hyped field that really catapults Alphabet to the next level.
Google proclaimed in 2019 that it was the first to achieve quantum supremacy -- solving a problem that a classical computer couldn't solve within a practical timeframe. Earlier this year, the company made another major advance in quantum computing by reducing processing errors. If Alphabet keeps it up, it could wind up as the dominant player in quantum computing.
4. Amazon
It's pretty much the same song but a different verse with Amazon (NASDAQ: AMZN). Like Microsoft and Alphabet, Amazon is a leader in several hot tech areas. The e-commerce and cloud giant does have a longer road to get to $5 trillion, though, with its market cap currently hovering around $1.2 trillion.
Amazon Web Services (AWS) is practically a sure bet to deliver tremendous growth with the proliferation of AI. My hunch is that AWS by itself could propel Amazon to the $5 trillion threshold.
Don't overlook Amazon's e-commerce business, though. The company's logistics capabilities are unsurpassed -- and e-commerce penetration still remains quite low.
In what order?
I listed these four stocks by descending market cap. However, that doesn't mean I necessarily think that's the order they'll reach a market cap of $5 trillion. A lot could happen over the next few years that might cause some jockeying of positions between these companies.
I also acknowledge that it's possible that other companies could edge out one or more of these tech stocks. For example, Saudi Arabian Oil Company (often referred to as Saudi Aramco) has a current market cap of over $2 trillion.
However, I'm sticking with my prediction that Apple, Microsoft, Alphabet, and Amazon will be the first four to top $5 trillion. And I've put my money where my mouth is: I personally own all four stocks.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has positions in and recommends Alphabet, 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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Apple My take is that Apple (NASDAQ: AAPL) is practically a no-brainer to be among the initial stocks to reach the $5 trillion mark. Artificial intelligence (AI), augmented reality (AR), cloud hosting, and quantum computing are just the tip of the iceberg. *Stock Advisor returns as of May 15, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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Apple My take is that Apple (NASDAQ: AAPL) is practically a no-brainer to be among the initial stocks to reach the $5 trillion mark. I think the company has three primary paths: Higher iPhone sales Higher services revenue New products and services Achieving higher iPhone sales shouldn't be too terribly difficult, especially with the increased adoption of 5G networks. Higher services revenue won't be hard to pull off, either.
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Apple My take is that Apple (NASDAQ: AAPL) is practically a no-brainer to be among the initial stocks to reach the $5 trillion mark. The e-commerce and cloud giant does have a longer road to get to $5 trillion, though, with its market cap currently hovering around $1.2 trillion. However, that doesn't mean I necessarily think that's the order they'll reach a market cap of $5 trillion.
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Apple My take is that Apple (NASDAQ: AAPL) is practically a no-brainer to be among the initial stocks to reach the $5 trillion mark. I listed these four stocks by descending market cap. However, that doesn't mean I necessarily think that's the order they'll reach a market cap of $5 trillion.
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15749.0
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2023-05-21 00:00:00 UTC
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3 Top Buffett Stocks to Buy and Hold for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-top-buffett-stocks-to-buy-and-hold-for-the-long-haul-1
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Warren Buffett's stock portfolio is one of the most scrutinized in the world. Each quarter there are several news stories about what the Oracle of Omaha purchased for his company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Interest in this portfolio shouldn't be a surprise, considering Buffett's track record of success.
Investors should never make a trade only based on what Buffett did, but the Berkshire portfolio is a great place to get ideas. There are many outstanding companies that have been long-term winners for Buffett and Berkshire, but here are three that stand out as stocks worth buying for the long haul.
Apple
There was some surprise when Berkshire added Apple (NASDAQ: AAPL) to its portfolio in 2016. Buffett often speaks about how investors should stay within their circle of competence, and technology was a departure for him. However, in the intervening years, Buffett has praised Apple and its CEO Tim Cook numerous times. At the Berkshire Hathaway annual meeting earlier this month, Buffett called Apple the best business Berkshire owns.
This praise for Apple makes sense considering Buffett's preference for iconic brands with massive consumer appeal. In the most recent quarter, the results suggest there's plenty of room for growth, despite Apple being one of the largest companies in the world.
The headline number was that Apple saw its year-over-year revenue growth decline for the second consecutive quarter. However, that's only part of the story. Apple's two largest product categories, iPhones and Services, saw slight increases compared to the year-ago quarter.
The most exciting story for shareholders is Apple's aggressive return of cash to shareholders. Over the past five years, Apple has grown its free cash flow by 64% and its dividend by 32%. At the same time, the company has repurchased stock and reduced its outstanding share count by 18%. In his 2021 letter to shareholders, Buffett illustrated the impact of this shareholder-friendly activity by pointing out that Berkshire's stake in Apple increased by almost $200 million due to share repurchases alone.
Bank of America
Berkshire's second-largest position by market value is Bank of America (NYSE: BAC), which Buffett added to during the first quarter of 2023. Buffett's interest in banking is no secret, and Bank of America has been in the Berkshire portfolio since 2017.
Considering Buffett is a value investor, the recent increase in Berkshire's Bank of America stake shouldn't be surprising. During Q1, Bank of America's valuation fell pretty steadily, and at times the stock traded for a price-to-book value of less than 1. We don't know when Buffett bought it, but it's reasonable to assume he took advantage of this decrease in valuation.
The Q1 2023 results featured some bright spots. Revenue grew by 13% and net income increased by 15% year over year. This was led in part by a 25% increase in net interest income as a result of rising interest rates. The consumer banking segment set records for its number of checking and investment accounts.
The record consumer accounts are notable because these smaller consumer accounts are stickier. They also provide some insulation against a bank run because most accounts are smaller and fall under the $250,000 Federal Deposit insurance coverage. In light of the recent bank failures, a large consumer deposit base is a strength.
General Motors
Buffett may have sold part of Berkshire's stake in General Motors (NYSE: GM), but that doesn't mean it's not still worth consideration. The first thing that may come to mind is legacy auto manufacturing, but GM is also worth keeping an eye on when it comes to electric vehicles (EVs) and autonomous driving.
General Motors owns a majority stake in autonomous driving company Cruise, which is operating in a handful of U.S. cities and completing more than 1,000 driverless trips per day. This driverless technology is being brought to GM's fleet of consumer vehicles as well. GM is currently the only automaker with level 2 (partial driving automation) and level 4 (high driving automation) autonomous vehicle offerings in consumer vehicles.
GM is now No. 2 in the U.S. EV market and its market share increased by 8% year over year during Q1 of 2023. The pace of EV sales is impressive. In Q1 of 2023, GM sold approximately 20,700 electric vehicles, compared to 16,300 in the previous quarter. The company is building toward the capacity to produce 1 million EVs annually by 2025.
GM may not get the headlines when it comes to electric vehicles, but there's a case to be made that it's on the path to being a major player in this space for years to come.
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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.
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*Stock Advisor returns as of May 15, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jeff Santoro has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. 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 There was some surprise when Berkshire added Apple (NASDAQ: AAPL) to its portfolio in 2016. In his 2021 letter to shareholders, Buffett illustrated the impact of this shareholder-friendly activity by pointing out that Berkshire's stake in Apple increased by almost $200 million due to share repurchases alone. The first thing that may come to mind is legacy auto manufacturing, but GM is also worth keeping an eye on when it comes to electric vehicles (EVs) and autonomous driving.
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Apple There was some surprise when Berkshire added Apple (NASDAQ: AAPL) to its portfolio in 2016. General Motors Buffett may have sold part of Berkshire's stake in General Motors (NYSE: GM), but that doesn't mean it's not still worth consideration. General Motors owns a majority stake in autonomous driving company Cruise, which is operating in a handful of U.S. cities and completing more than 1,000 driverless trips per day.
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Apple There was some surprise when Berkshire added Apple (NASDAQ: AAPL) to its portfolio in 2016. Bank of America Berkshire's second-largest position by market value is Bank of America (NYSE: BAC), which Buffett added to during the first quarter of 2023. Considering Buffett is a value investor, the recent increase in Berkshire's Bank of America stake shouldn't be surprising.
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Apple There was some surprise when Berkshire added Apple (NASDAQ: AAPL) to its portfolio in 2016. Considering Buffett is a value investor, the recent increase in Berkshire's Bank of America stake shouldn't be surprising. 2 in the U.S. EV market and its market share increased by 8% year over year during Q1 of 2023.
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15750.0
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2023-05-20 00:00:00 UTC
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Why Is Everyone Talking About Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-apple-stock
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Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock.
*Stock prices used were the afternoon prices of May 17, 2023. The video was published on May 19, 2023.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 15, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. 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) is building its ecosystem, attracting people with its innovative products. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock. 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) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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15751.0
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2023-05-19 00:00:00 UTC
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Warren Buffett on Apple, Banks, and Value Investing
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https://www.nasdaq.com/articles/warren-buffett-on-apple-banks-and-value-investing
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
Berkshire Hathaway's first-quarter results and highlights from the annual meeting.
Buffett's comments about Apple and the banking industry.
Charlie Munger's warning about overdiversification.
Motley Fool senior analyst Jim Gillies talks about the vibe at the Berkshire Hathaway annual meeting.
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 Berkshire Hathaway
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*Stock Advisor returns as of May 8, 2023
This video was recorded on May 8, 2023.
Chris Hill: Omaha, somewhere in Middle America. We're going to get right to the heart of the matter of the Berkshire Hathaway Annual Meeting. Motley Fool Money starts now.
[music]
I'm Chris Hill. Joining me in studio: Motley Fool Senior Analyst Jason Moser. Thanks for being here.
Jason Moser: Hey, thanks for having me.
Chris Hill: Let's talk a little about Berkshire Hathaway, shall we?
Jason Moser: Sure.
Chris Hill: We're going to get to the Q&A in a second. I do just want to point out, I think it's a sign of what an event the Berkshire Hathaway Annual Meeting is and how much attention is paid to the marathon Q&A session that Buffett and Charlie Munger do that we basically all, as an investment community, just basically missed the fact that they reported first-quarter earnings.
Jason Moser: That is so secondary.
Chris Hill: It's just like, oh, by the way, the results were better than expected. Geico is profitable again after a year and a half of not being profitable. Berkshire Hathaway now has $130 billion in cash. That aside...
Jason Moser: They're in a good spot, Chris.
Chris Hill: Let's get to some of the highlights from the Q&A session. And the thing that stood out to me, both as a Berkshire Hathaway shareholder and as a shareholder of Apple, is the flowers that Buffett was throwing at Apple, basically saying, this is the best business we invest in.
Jason Moser: For the longest time, they really steered clear of "tech stocks" because they just felt like it was outside of their circle of competence, so to speak. I think Apple transcends that. I have always said Apple is literally a company that could stamp its brand on a rock and sell 3 million, no questions asked. It is that powerful, and I'm not even kidding. I absolutely believe that.
Chris Hill: The iRock.
Jason Moser: People just say, hey, it's a special rock.
Chris Hill: It's an iRock.
Jason Moser: It's got some certain quality or property that that brand power alone is phenomenal. It is something that you just don't see every day. And then you add to that the fact that they make really good tech. They make really good stuff. That is just a one-two combo that is just really formidable, especially over long periods of time.
Obviously, you've seen that through the financial performance of the company. It is just unsurpassed. I just can't think of many things in our life that have had the impact on society as a whole, as something like the iPhone. He even made that point, I think, in the conversation, where you've got a family that is weighing the phone versus a second car. They're taking the phone. That phone is just integral to everything that we do, and that obviously is not going to change.
I think the biggest challenge they have is coming up with that next lightning-in-a-bottle product. That's not so easily done.
But in the meantime, what they've really done well is build this collection of really good products along the way that the sum of those parts really does. It's not something that takes the place of what the iPhone is doing. This is still a phone and a services company. It's 76% of the overall revenue that this business makes right now.
But they do a lot of things well, and I think that it makes a lot of sense when he says it's the best business that they've ever owned, because I think it's the best business that a lot of people have ever owned.
Chris Hill: In reference to the share price, he sounds very much like an investor who own shares of Apple and is thinking about buying more shares of Apple.
Jason Moser: I think that would be a reasonable thing to do. I was looking through the quarterly results here recently, and when you see the performance that the business is chalking up today -- and again, we look at it primarily through the lens of a phone and a services company.
But another story that we talked a lot about with Apple here over the past several years is China, not only from the perspective of the consumer but also from the production side. Apple is slowly but surely diversifying their supply chain away from China and more toward India.
I think that the point there with India is even more powerful from the consumer side because when you look at India today, it's around 1.5% of Apple's total business. You look at China, China's around 20% of Apple's total business. It's about $6 billion that they're bringing in from India versus something like some crazy number from China. It's to the point now where you start to see the opportunity that could exist within India.
And granted, this is a much longer time frame that you have to consider, but it shows you the potential there. When you then further look into that, and you see that Indian consumers are becoming more and more willing to pay higher prices for their phones, that plays right into Apple's wheelhouse as well.
So it just goes to show you the opportunity that's still out there on the table for Apple from a geographic perspective, and I certainly understand why he'd be considering adding more.
Chris Hill: We knew Buffett was going to get questions about banks and the banking industry, and he really seemed frustrated by the communication that's been going on from all parties. He didn't hold back from taking some shots at the way banks, like First Republic, had been managed, but he made the broader point of, look, fear is contagious, and pretty much every party involved could be doing a better job of assuring people, like, hey, your deposits are safe.
Jason Moser: It definitely feels that way. Folks like us here, we talk about this stuff a lot, so we know what the deal is. But your everyday American out their working the 9 to 5 and really focused on that paycheck. This is not the stuff that really crosses their radar all that often, and it's very understandable. You want to make sure that your money is safe.
And it was astounding. The more regulators seem to try to help, the more panic they create. Why can't they follow the George Costanza model, Chris, and just do the opposite? For whatever reason, they just can't seem to make that work.
But I'm not just blaming regulators. Clearly, this is on management as well, from the executive suites to the boards. This is all the way around. Not only putting these banks in this type of position but further, the communication that really we watched play out over the last month plus. It's just been less than ideal. We always need to be talking about this stuff because I think that's the one way we can serve folks is to help educate, let them know that this is all going to be OK.
But by the same token, you see the panic that has been created, and once you said it, it's contagious. Once it gets out there, it's really difficult to contain.
Chris Hill: We were chatting earlier today. It sounds like you enjoyed Charlie Munger's comments about diversification.
Jason Moser: Yeah, [laughs] I do. It's always interesting to square his comments with the way that we like to invest here, because really, diversification is a very good thing. I want to lead off with that. But there is a point where you can become too diversified to where you're really starting to introduce some things in your portfolio you probably shouldn't even have.
Now, he did make sure to point out that because this is what they do for a living, they tend to make fewer mistakes. They're better investors than a lot of us because they've been at this for a while. But I think one of the reasons why they're better investors, too, is they realize they don't need to be the smartest guys in the room. They realize that they're not the smartest guys in the room, and that's the point, really. It's knowing your limits. Know what you know, and know what you don't know.
I said to you earlier, before we started taping here, you look at some of these social networks. Twitter is a good example just because it's got such a strong fintech audience there, but it does feel like it's a contest here to see who can be the smartest guy, and the network effects, really, that start to snowball.
I think it's really important just to remember, know what you don't know. When you see something, when you know this is just outside of your circle, you have two choices. You can choose to dig into it and try to learn more, or you can say, you know what, that's just not really worth my time. My time is better served maybe getting a little bit smarter about something that I know really well already.
I think that was his point there, is knowing what you don't know. Diversification is good, but at a point, it can start to be bad, and he just puts it a little bit more bluntly, I guess.
Chris Hill: That's why we love Munger.
Jason Moser: That's right.
Chris Hill: He's 99. He's earned the right to be blunt.
Jason Moser: That's right.
Chris Hill: Jason Moser, thanks for being there.
Jason Moser: Thank you.
Chris Hill: We're sticking with the Berkshire Hathaway meeting in our next segment because this morning on the Motley Fool Live video stream, Nick Sciple, Jim Gillies, and Deidre Woollard share their takeaways and observations, including whether it actually is harder to be a value investor today or if that's just the case for Warren Buffett and Charlie Munger.
[music]
Nick Sciple: Jim, since you were there, what was the vibe of the Berkshire Hathaway meeting this year? I understand you've been to some of the meetings in the past as well, so maybe how does it compare to the vibe to previous meetings?
Jim Gillies: Very optimistic, very much a party. It's very much a lot of old friends getting together, even if you've never met these old friends. There's a very definite sense of community.
I was going in with a little bit of trepidation this year. Let's be honest: Warren is 92, and I've thought the last few meetings, he's been slowing down. I thought the last few times I've seen him on CNBC recently, he's been slowing down. Charlie is 99 and is starting to look it. I was concerned and, to be perfectly honest, and part of my rationale for going was this could be the last meeting of the Warren and Charlie Show.
And I was pleasantly surprised. I thought they were both far sharper than they've been the last couple of years when I've been watching virtually, and of course for a couple of years when we all had to watch virtually. I thought they were sharper. I thought Charlie was especially sharp like rapier sharp. He cut a few sacred cows there. They did slow down in the afternoon, but then again, so did everyone else. I can neither confirm or deny there was a member of the Fool contingent who may have nodded off midway through the afternoon, and we have the picture.
I thought it was a good meeting. If you've watched any of these, you've seen it in the past, the questions are terribly new, so there's a lot of stuff that's a lot of repeats from years prior. Questions and answers.
One very common thing I think I've seen practically every time: What country does Buffett say you should bet on for capitalism? America. Buy America. I'm thinking back to, was it '99 or 2000 when the article on Fortune magazine was "Buy America. I Am." That was very popular.
Buffett has also mastered the art, I think, of occasionally answering the question he wants to answer rather than the question you just asked, which I love. So when people wanted to talk about AI, naturally, Buffett talked about the risk of nuclear.
He did compare AI to nuclear. Some things can't be uninvented. Some things can't be undone once they are known and understood, and he mentioned AI there. And then, of course, went on a bit of a talk about nuclear, and not in the power sense, Nick, which of course, what we're interested in, but in the, shall we say, the weapons potential.
They talk a little bit about value investing. Charlie, I thought was surprisingly dour about the future for value investors. They were both value investors might have to get used to lower returns because there's so many people doing it. I think there was some illusion to AI as well, I don't have my notes in front of me here, and Fools, Nick and I will be doing a session together later today for recording. It'll probably go out to various places about more digging in deep, so I'll destroy the entire show here today talking about this. But just talking about how value investors would have to maybe accept lower returns because there's so many people, there's so much competition, that was Charlie's assertion.
Warren disagreed with him somewhat and I vehemently disagree with Charlie Munger and I love Charlie Munger in fact, I might like Charlie more than Warren, frankly, because he's just more my jam, very acerbic. I very much disagreed with that assertion. But then again, I was never less than lower returns than what, that would be my question, like multi-baggers in 18 months, that's difficult to do for everything including growth or whatever, but I'm not sure I'm buying it. They talked to a lot about deals, they had Jane and Greg Abel in the morning who were talking about the challenges for Burlington Northern Santa Fe, and Berkshire Hathaway Energy and as well as as GEICO. I thought it was a really well-rounded meeting, met a lot of Fools there, a lot of folks I know via other channels as well who may or may not have a connection to the Fool. We had a lot of BFOFS show up, which was a fantastic. We had a impromptu gathering on the Friday at 4 o'clock and a lot of BFOFs made the trek, which we are still stunned and humbled by, frankly. But it might be easier if we just maybe move to Q&A rather than me riffing on the meeting, if that's okay.
Nick Sciple: Obviously, we got five hours of Warren and Charlie. We're not going to talk about all five hours, but maybe a thing that stood out. I have one that Jim mentioned, this idea of Charlie Munger says, maybe we should be expecting lower returns over the long term for value investors than you have seen previously. Warren Buffett, the other side of that exchange was the one that really popped out to me. He said quote, "What gives you opportunities is other people doing dumb things. During the 58 years we've been running Berkshire, I would say there has been a great increase in the number of people doing dumb things and they do big dumb things, and the reason they continue to do it to some extent is because they can get money from people so much easier than when they started."
There's two sides of that coin. Charlie Munger is saying you should expect lower returns over a longer period of time because there's lots of money looking for returns in the market, creating lots of competition for returns. Whereas in the past, Ben Graham before them, but Warren and Charlie could find companies that nobody was paying attention to trading for less than what you could go sell them for cash out in the market. Now, there's a lot of screeners that would probably pick those things out. If they're trading for that level, there's a reason for that.
There's other reasons, Jim is gritting, there's other reasons about liquidity and things like that to create opportunities, but there are certainly more people looking for opportunities than it would have been in the past and more tools to do it versus just flipping through the Moody's manual. But what Buffett is saying is that it's not the fact that there's lots of people looking for opportunities, it's the fact that there are as cognitive biases among those large groups of people that create those opportunities. I think there's a tweet that both Jim and I shared that our old friend John Rotonti put out there just quoting Warren Buffett as well it says, "The investing public does not learn much," was the direct quote. Munger is looking at the amount of cash floating around in the system and Buffett is looking at the people, and while the way people go about investing and things that has changed over time, people are still flawed in very predictable ways and I think that's what creates opportunities in markets. That's why I come out on the Warren Buffett side of things. But those are two very valid perspectives to have, that there is a lot more money chasing investing opportunities than there would have been 50 years ago. But they're the same types of people that are making the same types of mistakes that you can look to find opportunities in. That's an exchange that I thought was interesting.
Jim Gillies: That is excellent. I don't often disagree with Munger, I'll put it that way, but I vehemently disagreed with Munger on this one, which is a nice feeling for me. I don't care how much money is out there. I really don't. Because there's so many opportunities, particularly in small-cap space, the smaller the unloved which Buffett and Munger and Berkshire are going for the bite. They have to bring out the elephant gun, they have to go for the large. There is a company in Canada called Home Capital Group that a few years ago got into trouble. They were down 65-70% in a day. They had some issues, they were trailing down for a while, but they had some issues. I have a small club of companies that get pummeled 40, 50, 60% in a day, and those are fires I like to run to. I'm not talking bank, put banks over here, Fools, we're going to take leverage out of it, the companies that have a very bad quarter or perception of bad quarter and get sold off 40, 50, 60% in a day.
I have a shortlist of those and their six-month and one year returns are outstanding because it scares people away. Why? Because people are herd animals. Sorry, that might not be terribly appropriate to say. People are herd animals, that's why Peter Lynch can put up a what, 13-year track record of 29.2% annualized, and the average investor apocryphal pop perhaps, but the story is raised, the average investor and his fund annualized at about four. Because people buy at the top, they sell at the bottom. They wait for it to rebound, then they go back and buy at the top again, I'll argue and I'm sure going to get trouble for this one. The zebra who breaks from the herd is dinner, but investing we're, not zebras. Investing shouldn't be a herd animal sport. If you are willing to not be a herd animal and you're willing to go to places where other people aren't willing to go to, that is the essence of value investing, and I still think you're going to do all right.
Nick Sciple: Deidre, any exchanges or questions that popped out to you as extra interesting from the weekend or anything like that?
Deidre Woollard: Yeah. I tend to be a Munger fan as well just because Warren will talk for a long time and then Munger will say one sentence and it's just a perfect little jab. The thing I disagree with him about and he's done this before, Munger, about the diworsification. That's something he tends to keep hitting on, is you don't need to invest in a wide variety of things. You just need to have two or three good ideas. I tend to disagree with that, but maybe that's because I don't trust my own ideas as much as I should, but I tend to like to cast a wider net. But overall, one of the things I love from watching this, and I know they do it to leg pull on our heartstrings, but it gets me every damn time is when they have kids asking questions and they had fair dose of that this time. They had a lot of kids asking about climate change and about the future of the country and all of that. That was one of the things that I know why they do it, but I'm still a sucker for it. Just the idea that some of the kids that were asking questions, this was their third or fourth meeting and they're 13, I'm like, yes. That makes me very encouraged the future.
Chris Hill: Remember, Motley Fool Live is available to members of any Motley Fool service. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Chris Hill has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: Berkshire Hathaway's first-quarter results and highlights from the annual meeting. He didn't hold back from taking some shots at the way banks, like First Republic, had been managed, but he made the broader point of, look, fear is contagious, and pretty much every party involved could be doing a better job of assuring people, like, hey, your deposits are safe. Chris Hill: We're sticking with the Berkshire Hathaway meeting in our next segment because this morning on the Motley Fool Live video stream, Nick Sciple, Jim Gillies, and Deidre Woollard share their takeaways and observations, including whether it actually is harder to be a value investor today or if that's just the case for Warren Buffett and Charlie Munger.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: Berkshire Hathaway's first-quarter results and highlights from the annual meeting. Motley Fool senior analyst Jim Gillies talks about the vibe at the Berkshire Hathaway annual meeting. Chris Hill: We're sticking with the Berkshire Hathaway meeting in our next segment because this morning on the Motley Fool Live video stream, Nick Sciple, Jim Gillies, and Deidre Woollard share their takeaways and observations, including whether it actually is harder to be a value investor today or if that's just the case for Warren Buffett and Charlie Munger.
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But they do a lot of things well, and I think that it makes a lot of sense when he says it's the best business that they've ever owned, because I think it's the best business that a lot of people have ever owned. Chris Hill: We're sticking with the Berkshire Hathaway meeting in our next segment because this morning on the Motley Fool Live video stream, Nick Sciple, Jim Gillies, and Deidre Woollard share their takeaways and observations, including whether it actually is harder to be a value investor today or if that's just the case for Warren Buffett and Charlie Munger. Munger is looking at the amount of cash floating around in the system and Buffett is looking at the people, and while the way people go about investing and things that has changed over time, people are still flawed in very predictable ways and I think that's what creates opportunities in markets.
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Chris Hill: We're sticking with the Berkshire Hathaway meeting in our next segment because this morning on the Motley Fool Live video stream, Nick Sciple, Jim Gillies, and Deidre Woollard share their takeaways and observations, including whether it actually is harder to be a value investor today or if that's just the case for Warren Buffett and Charlie Munger. If you've watched any of these, you've seen it in the past, the questions are terribly new, so there's a lot of stuff that's a lot of repeats from years prior. That's why I come out on the Warren Buffett side of things.
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15752.0
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2023-05-19 00:00:00 UTC
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EXCLUSIVE-India's govt plans action against Google after antitrust breaches
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AAPL
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https://www.nasdaq.com/articles/exclusive-indias-govt-plans-action-against-google-after-antitrust-breaches
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nan
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nan
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By Aditya Kalra and Munsif Vengattil
NEW DELHI, May 19 (Reuters) - India's government plans to take action against Alphabet Inc's Google GOOGL.O after an antitrust watchdog last year found the group to have abused its market position by indulging in anti-competitive practices, a top IT minister told Reuters.
Rajeev Chandrasekhar, the federal deputy minister for information technology, told Reuters in an interview at the IT ministry in New Delhi that such findings are "serious" and cause "deep concern" to India's federal government, which will take its own action against Google.
"The ministry has to take action," Chandrasekhar said. "We have thought through it. You will see it in the coming weeks. Certainly it's not something that we will leave and push under the carpet."
The minister declined to specify what sort of policy or regulatory action the government could take.
Chandrasekhar, who is one of the highest-ranking officials in Prime Minister Narendra Modi's administration, said the issue "is worrisome, not just for us, it's worrisome for the entire digital ecosystem in India".
Google did not respond to a request for comment on the minister's remarks. Asked if he had held talks with Google on the issue, Chandrasekhar said "there is no need for any discussion. There is a finding of a court."
While the payments case is still under appeal, an Indian tribunal in March said in response to a legal challenge that the Competition Commission of India's findings of Google's anti-competitive conduct in the Android market were correct.
The comments by the minister come against a backdrop of growing tension between Indian companies and Google.
India's competition watchdog has begun another inquiry into Google after Tinder owner Match Group MTCH.O and many startups alleged that a new service fee system Google uses for in-app payments breaches the competition commission's October decision.
Google has previously said the service fee supports investments in the Google Play app store and the Android mobile operating system, ensuring it can distribute it for free.
Following the Android antitrust order in India, Google was also forced make sweeping changes to how it markets its mobile operating system in the country, even though it warned "no other jurisdiction has ever asked for such far-reaching changes".
About 97% of India's 620 million smartphones run on Android, and the company counts India as a critical growth market.
Other companies such as Apple AAPL.O and Amazon AMZN.O also face cases against them for potential anti-competitive practices in India. Chandrasekhar said the government was keen to take steps to ensure India's digital economy is protected.
"We don’t want it to be growth in a way that distorts consumer choice or free competition," he said.
"We will certainly be looking into what the government needs to do to prevent anybody, including but not limited to Google, from abusing their market power or market dominance."
(Reporting by Aditya Kalra and Munsif Vengattil; Editing by Jan Harvey)
((aditya.kalra@thomsonreuters.com; +91-11-49548021;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other companies such as Apple AAPL.O and Amazon AMZN.O also face cases against them for potential anti-competitive practices in India. By Aditya Kalra and Munsif Vengattil NEW DELHI, May 19 (Reuters) - India's government plans to take action against Alphabet Inc's Google GOOGL.O after an antitrust watchdog last year found the group to have abused its market position by indulging in anti-competitive practices, a top IT minister told Reuters. While the payments case is still under appeal, an Indian tribunal in March said in response to a legal challenge that the Competition Commission of India's findings of Google's anti-competitive conduct in the Android market were correct.
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Other companies such as Apple AAPL.O and Amazon AMZN.O also face cases against them for potential anti-competitive practices in India. By Aditya Kalra and Munsif Vengattil NEW DELHI, May 19 (Reuters) - India's government plans to take action against Alphabet Inc's Google GOOGL.O after an antitrust watchdog last year found the group to have abused its market position by indulging in anti-competitive practices, a top IT minister told Reuters. While the payments case is still under appeal, an Indian tribunal in March said in response to a legal challenge that the Competition Commission of India's findings of Google's anti-competitive conduct in the Android market were correct.
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Other companies such as Apple AAPL.O and Amazon AMZN.O also face cases against them for potential anti-competitive practices in India. By Aditya Kalra and Munsif Vengattil NEW DELHI, May 19 (Reuters) - India's government plans to take action against Alphabet Inc's Google GOOGL.O after an antitrust watchdog last year found the group to have abused its market position by indulging in anti-competitive practices, a top IT minister told Reuters. Rajeev Chandrasekhar, the federal deputy minister for information technology, told Reuters in an interview at the IT ministry in New Delhi that such findings are "serious" and cause "deep concern" to India's federal government, which will take its own action against Google.
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Other companies such as Apple AAPL.O and Amazon AMZN.O also face cases against them for potential anti-competitive practices in India. By Aditya Kalra and Munsif Vengattil NEW DELHI, May 19 (Reuters) - India's government plans to take action against Alphabet Inc's Google GOOGL.O after an antitrust watchdog last year found the group to have abused its market position by indulging in anti-competitive practices, a top IT minister told Reuters. Rajeev Chandrasekhar, the federal deputy minister for information technology, told Reuters in an interview at the IT ministry in New Delhi that such findings are "serious" and cause "deep concern" to India's federal government, which will take its own action against Google.
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15753.0
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2023-05-19 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-38
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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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15754.0
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2023-05-19 00:00:00 UTC
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EU telecoms regulators' group criticises forcing Big Tech to pay 5G rollout
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AAPL
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https://www.nasdaq.com/articles/eu-telecoms-regulators-group-criticises-forcing-big-tech-to-pay-5g-rollout
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nan
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nan
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BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets.
The Body of European Regulators for Electronic Communications (BEREC) said a mandatory financial fee may lead to higher costs for consumers and impact Europe's net neutrality rules.
The comments were part of BEREC's feedback - submitted on Friday - to the European Commission which is looking into the issue.
(Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. The Body of European Regulators for Electronic Communications (BEREC) said a mandatory financial fee may lead to higher costs for consumers and impact Europe's net neutrality rules. The comments were part of BEREC's feedback - submitted on Friday - to the European Commission which is looking into the issue.
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BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. The Body of European Regulators for Electronic Communications (BEREC) said a mandatory financial fee may lead to higher costs for consumers and impact Europe's net neutrality rules. (Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. The Body of European Regulators for Electronic Communications (BEREC) said a mandatory financial fee may lead to higher costs for consumers and impact Europe's net neutrality rules. (Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. The Body of European Regulators for Electronic Communications (BEREC) said a mandatory financial fee may lead to higher costs for consumers and impact Europe's net neutrality rules. The comments were part of BEREC's feedback - submitted on Friday - to the European Commission which is looking into the issue.
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15755.0
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2023-05-19 00:00:00 UTC
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2 Tech Stocks You Can Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/2-tech-stocks-you-can-buy-and-hold-for-the-next-decade-8
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nan
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nan
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Last year wasn't the best year for tech stocks, with many seeing drops into double-digit percentages. Luckily, 2023 has been much better. The tech-heavy Nasdaq Composite -- which tracks almost all stocks on the Nasdaq stock exchange -- is up over 21% year to date.
If you're a long-term investor interested in tech stocks that you can comfortably hold in your portfolio for the next decade, look no further.
1. AT&T
It's been a well-documented regrettable past decade for AT&T (NYSE: T), with the stock down over 40%. After spending over $100 billion to enter the media and entertainment industry, AT&T finally threw in the towel last year, spinning off its WarnerMedia business in a $43 billion deal.
A lot of what has plagued AT&T recently is the large amount of debt it took on with its media and entertainment ambitions. AT&T has had over $100 billion in debt since 2015, which, needless to say, has cost the company a lot in interest. It paid over $6 billion in interest last year alone.
DATA BY YCharts
The company is trimming down its business and refocusing on its core telecom business, which should relieve investors. After a cash infusion from its WarnerMedia spinoff, AT&T paid off a good amount of debt, but it has a ways to go. Still, AT&T management's recent steps to actively address debt problems make the stock attractive if you're in it for the long haul.
AT&T's bread and butter is undoubtedly its telecom business, and it seems the company is again treating it as such, though I'm sure investors would've preferred if it didn't take this long to realize it. This refocus is coming at a great time as the industry progresses toward 5G.
In Q1 2023, AT&T added 424,000 postpaid phone customers (11 straight quarters with at least 400,000 added) and 272,000 AT&T Fiber customers (13 straight quarters with at least 200,000 added).
With a price-to-earnings ratio of around 6.8 (the S&P 500's is over 23) and a 6.5% dividend yield, the potential upside for long-term investors far outweighs the potential downside, in my opinion.
2. Apple
As the most valuable public company in the world, it's hard to believe how much more Apple (NASDAQ: AAPL) can grow, but it's shown time and time again that it will find a way. After losing over a quarter of its value in 2022, it's since changed course, up over 35% year to date.
The iPhone is still Apple's moneymaker, accounting for more than half of its revenue, but its growth will likely depend on how well it can continue to develop and build out its services ecosystem. Its $20.9 billion in services revenue (up over 5.4% year over year) was an all-time high for the company.
What excites me most about Apple's future is its venture into the financial services industry. The signs were always there, beginning with the company's Apple Pay and later with Apple Card. Apple Card was a big step, but Apple used Goldman Sachs to underwrite and fund loans and credit lines.
Apple Pay Later was the first time the company decided to underwrite and fund loans and credit lines by itself -- a pivotal step in making its presence felt in the finance industry. An even bigger step is the high-yield savings account the company launched this year (in partnership with Goldman Sachs), which received close to $1 billion in deposits in its first four days, as reported by Forbes.
Apple's savings account comes at a time when the banking industry -- especially smaller and regional banks -- is going through some public distrust, giving the company a chance to capitalize on its brand and unmatched brand loyalty.
With arguably as good of technical resources available as any company, the rest of the fintech world should be on alert about Apple. Finance is rapidly changing and becoming digital, and who is better equipped to help usher in that change than Apple? It's for sure a buy-and-hold stock over the next decade.
10 stocks we like better than AT&T
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*Stock Advisor returns as of May 15, 2023
Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group. 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 As the most valuable public company in the world, it's hard to believe how much more Apple (NASDAQ: AAPL) can grow, but it's shown time and time again that it will find a way. The iPhone is still Apple's moneymaker, accounting for more than half of its revenue, but its growth will likely depend on how well it can continue to develop and build out its services ecosystem. Apple Pay Later was the first time the company decided to underwrite and fund loans and credit lines by itself -- a pivotal step in making its presence felt in the finance industry.
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Apple As the most valuable public company in the world, it's hard to believe how much more Apple (NASDAQ: AAPL) can grow, but it's shown time and time again that it will find a way. If you're a long-term investor interested in tech stocks that you can comfortably hold in your portfolio for the next decade, look no further. Apple Card was a big step, but Apple used Goldman Sachs to underwrite and fund loans and credit lines.
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Apple As the most valuable public company in the world, it's hard to believe how much more Apple (NASDAQ: AAPL) can grow, but it's shown time and time again that it will find a way. The tech-heavy Nasdaq Composite -- which tracks almost all stocks on the Nasdaq stock exchange -- is up over 21% year to date. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Stefon Walters has positions in Apple.
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Apple As the most valuable public company in the world, it's hard to believe how much more Apple (NASDAQ: AAPL) can grow, but it's shown time and time again that it will find a way. After losing over a quarter of its value in 2022, it's since changed course, up over 35% year to date. Its $20.9 billion in services revenue (up over 5.4% year over year) was an all-time high for the company.
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15756.0
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2023-05-19 00:00:00 UTC
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Hedge Funds Are Buying These AI Stocks
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AAPL
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https://www.nasdaq.com/articles/hedge-funds-are-buying-these-ai-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
What is the one common thread that connects billionaire hedge fund managers Steve Cohen, Stanley Druckenmiller, and David Tepper together? They’re all making a huge push into AI stocks right now.
According to recent 13-F filings, all three fund managers poured millions of dollars into AI stocks in the first quarter of 2023.
Cohen said this week that there is a “big wave” of opportunities emerging in the stock market right now thanks to AI. Last week, Druckenmiller said that AI is “very, very real” and that it could be “every bit as impactful as the internet.”
They aren’t alone in their bullishness.
Hedge funds everywhere are loading up on AI stocks right now.
Collectively, hedge funds increased their holdings in technology stocks by 2.5% last quarter. For context, that’s a huge jump, and it represents the biggest increase among any sector – by a wide margin.
Hedge funds went on a tech stock buying spree.
What tech stocks did they buy specifically? AI stocks.
Take a look at the data table below. It shows the most-bought individual stocks by hedge funds last quarter, which were Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta (META), and Amazon (AMZN).
The common theme? They’re all AI stocks.
The data is crystal clear. Hedge funds are loading up on AI stocks right now.
You should be, too.
The Final Word on AI Stocks
These hedge funds are already making a bunch of money on their AI positions. Year-to-date, the Global X Artificial Intelligence & Technology ETF (AIQ) is up 25%. Meanwhile, Meta stock is up 105%. Nvidia stock has risen nearly 120%!
The AI Revolution has arrived, and AI stocks are soaring.
This revolution will accelerate in the coming weeks, months, and years. As it does, red-hot AI stocks will only get hotter.
It’s time to go “all-in” on AI.
Luckily, we have the top AI stock for you.
It’s a tiny, brand-new firm developing the next-generation computers that we believe will be the foundation for all these breakthrough AI applications.
These computers will be the foundation of the AI Revolution.
And the stock of the firm making these computers is currently trading for less than $10.
But time is of the essence here – because this tiny stock is already up 164% in 2023 alone!
Investors are starting to hear about this tech stock, and they’re buying it up in a hurry amid the AI frenzy.
Find out its name, ticker symbol, and key business details.
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 Hedge Funds Are Buying These AI Stocks 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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It shows the most-bought individual stocks by hedge funds last quarter, which were Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta (META), and Amazon (AMZN). According to recent 13-F filings, all three fund managers poured millions of dollars into AI stocks in the first quarter of 2023. Investors are starting to hear about this tech stock, and they’re buying it up in a hurry amid the AI frenzy.
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It shows the most-bought individual stocks by hedge funds last quarter, which were Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta (META), and Amazon (AMZN). InvestorPlace - Stock Market News, Stock Advice & Trading Tips What is the one common thread that connects billionaire hedge fund managers Steve Cohen, Stanley Druckenmiller, and David Tepper together? Collectively, hedge funds increased their holdings in technology stocks by 2.5% last quarter.
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It shows the most-bought individual stocks by hedge funds last quarter, which were Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta (META), and Amazon (AMZN). AI stocks. The Final Word on AI Stocks These hedge funds are already making a bunch of money on their AI positions.
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It shows the most-bought individual stocks by hedge funds last quarter, which were Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta (META), and Amazon (AMZN). Collectively, hedge funds increased their holdings in technology stocks by 2.5% last quarter. AI stocks.
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15757.0
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2023-05-19 00:00:00 UTC
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EU regulators' group sides with Big Tech against telcos' network fee push
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AAPL
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https://www.nasdaq.com/articles/eu-regulators-group-sides-with-big-tech-against-telcos-network-fee-push
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nan
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nan
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By Foo Yun Chee
BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets.
The comments from The Body of European Regulators for Electronic Communications (BEREC) to the European Commission which is now looking into the issue underscores the high-stakes battle between Big Tech and Europe's major telecoms operators.
Echoing Big Tech's arguments, BEREC said it has its doubts about a mandatory network fee levied on the companies.
"It is questionable that mandatory payments from CAPs (content and application providers) to ISPs (internet service providers) would lead to member states meeting the connectivity targets," BEREC said.
"On the contrary, it is rather likely that ISPs in already well supplied areas would benefit the most."
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI have been actively lobbying for Big Tech to shoulder some of the network costs.
Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, which telcos say account for more than half of data internet traffic, have rejected the proposal.
(Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta, Kirsten Donovan)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, which telcos say account for more than half of data internet traffic, have rejected the proposal. Echoing Big Tech's arguments, BEREC said it has its doubts about a mandatory network fee levied on the companies. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI have been actively lobbying for Big Tech to shoulder some of the network costs.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, which telcos say account for more than half of data internet traffic, have rejected the proposal. By Foo Yun Chee BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. "It is questionable that mandatory payments from CAPs (content and application providers) to ISPs (internet service providers) would lead to member states meeting the connectivity targets," BEREC said.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, which telcos say account for more than half of data internet traffic, have rejected the proposal. By Foo Yun Chee BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. The comments from The Body of European Regulators for Electronic Communications (BEREC) to the European Commission which is now looking into the issue underscores the high-stakes battle between Big Tech and Europe's major telecoms operators.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, which telcos say account for more than half of data internet traffic, have rejected the proposal. By Foo Yun Chee BRUSSELS, May 19 (Reuters) - The EU telecoms regulators' group BEREC on Friday criticised a push by telecoms providers to get Big Tech to help pay for the rollout of 5G and broadband in Europe, saying it doubted whether such a move would help the bloc meet its connectivity targets. Echoing Big Tech's arguments, BEREC said it has its doubts about a mandatory network fee levied on the companies.
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15758.0
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2023-05-19 00:00:00 UTC
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Analysts Love These 3 Berkshire Hathaway-Owned Stocks
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AAPL
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https://www.nasdaq.com/articles/analysts-love-these-3-berkshire-hathaway-owned-stocks
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nan
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nan
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Berkshire Hathaway (NYSE:BRK.B) was back to its market-beating ways last year. With another annual shareholders meeting in the books and the latest 13F filing available for the public to see, we all can get an updated view of what stocks the Oracle of Omaha and his team have.
Though there were some intriguing buys and sells for the first quarter, there were no big surprises. As Berkshire continues to play the long game, investors may wish to give the overall portfolio another look.
Therefore, in this piece, we'll use TipRanks' Comparison Tool to check in with three names in the Berkshire portfolio (one of which saw notable buying activity in the first quarter) that have the confidence of most Wall Street analysts. From largest holding to smallest, here they are.
Apple (NASDAQ:AAPL)
Berkshire added to its stake in Apple shares yet again in the latest quarter. Undoubtedly, Apple stock has been a major winner year-to-date, with shares up a whopping 40%. Though it may be a tad too late to ride on Berkshire's coattails after such a sizeable move, I believe Apple is a name worth keeping on one's radar.
Warren Buffett went as far as to refer to Apple as a "better business" than any that Berkshire owns. That's quite a statement from the legendary investor. Though I wish shares were cheaper, I must stay bullish on Apple stock. Anytime you sour on Apple, you could risk being left behind.
Indeed, Buffett sold some shares a few years ago, admitting that it was "probably a mistake." As Apple inches closer to new highs, I view some catalysts that could help propel it to new heights.
Apple's mixed-reality headset could be unveiled during the June 5 special event. VR guru Palmer Luckey, the man who founded the VR company Oculus, stated that Apple's headset "is so good" in one of his tweets. This comes from the same man who was very critical of Meta Platforms' (NASDAQ:META) metaverse.
Many companies have fumbled when it comes to VR/AR headsets. The billion-dollar question is whether Apple can triumph where many other influential firms have stumbled. Given Apple's track record, I wouldn't be shocked if its headset soars above and beyond our expectations.
The company is a master when it comes to experiences that require expertise in both hardware and software. With a potential library of VR-tailored iPad apps available for the headset, Apple's headset may be the product that puts the metaverse trend back ahead of AI.
Further, look for Apple to get its feet wet in the AI waters as it reveals more detail on its latest version of iOS. Apple hasn't talked as much about AI as its FAANG peers. This is okay, as Apple has always been about walking the walk rather than talking the talk. In that regard, I view Apple as a firm that's very much "up to speed" on AI.
The stock trades at 29.3 times trailing price-to-earnings. That's on the high side of its historical range. However, it deserves to be, given the caliber of revolutionary products that may be up ahead.
Whether we're talking about headsets, AI, fintech, entertainment services, or health, Apple has the strength to compete and dominate in every market it chooses to enter. With that in mind, Apple could be the "best" business in your portfolio as well as Berkshire's.
What is the Price Target for AAPL Stock?
Apple stock has a Strong Buy rating, with 23 Buys, four Holds, and one Sell. The average AAPL stock price target of $182.56 implies 4.1% upside potential.
Coca-Cola (NYSE:KO)
Coke is another long-time Berkshire staple that also happens to be viewed favorably by Wall Street analysts. The business of sugary sodas is not on the cusp of a revolutionary technological trend that will change how we view the firm. However, it remains a resilient cash-flow generative beast amid turbulent, inflationary, and perhaps soon-to-be recessionary times. With that in mind, I remain bullish on one of Berkshire's oldest (and sweetest) investment holdings.
The Coke brand is worth the higher price of admission. Many decades from now, I still think consumers will reach for Coca-Cola over any new entrants into the cola space. Such brand power deserves a fat premium. With shares going for 28.2 times trailing price-to-earings, a case could be made that the premium isn't high enough given the macro headwinds we could encounter in the second half of 2023, which Coca-Cola should be resistant to.
Indeed, the firm doesn't need to do much to continue raking in the cash flow. Still, management is keen on exploring new initiatives to help give sales a nice jolt. The company is even getting in on the AI game!
Reportedly, Coke is partnering with OpenAI on intriguing initiatives that could help enhance brand affinity further. AI can help Coke in many ways in the future. The possibilities are endless, from AI-assisted marketing to AI-assisted new flavors of Coke. The company knows it needs an "AI strategy," and I do think being early in the AI game could pay dividends.
What is the Price Target for KO Stock?
KO stock comes in as a Strong Buy, with 13 Buys and three Holds. At the time of writing, the average KO stock price target of $69.44 implies 10.5% upside potential.
T-Mobile (NASDAQ:TMUS)
Finally, we have telecom firm T-Mobile, which represents a minuscule (around 0.2%) portion of the Berkshire portfolio. Though it's a small holding, I view the business as wonderful. The company has really overpowered its peers in the telecom scene.
With an aggressive expansion plan and a proven strategy, T-Mobile could continue taking market share in the American wireless scene. Indeed, the trend is a friend of TMUS. For that reason, I am bullish.
T-Mobile has no dividend. Unlike its rivals, it's a play on capital appreciation. On that front, T-Mobile stock has not failed to deliver over the years, surging by nearly 150% over the last five years.
At more than 20 times forward price-to-earnings, TMUS trades at a premium to its top two rivals. However, this premium is well-deserved due to the company's growth and could expand further as the company continues to spend wisely in its network.
What is the Price Target for TMUS Stock?
T-Mobile is a Strong Buy, with 13 unanimous Buy ratings. The average TMUS stock price target of $181.42 implies 31.1% upside potential.
Conclusion
All three stocks listed above are attractive in their own way. Of the three Strong-Buy-rated stocks, analysts expect the most upside (31.1%) from T-Mobile stock and the least (4.1%) from Apple.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) Berkshire added to its stake in Apple shares yet again in the latest quarter. What is the Price Target for AAPL Stock? The average AAPL stock price target of $182.56 implies 4.1% upside potential.
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The average AAPL stock price target of $182.56 implies 4.1% upside potential. Apple (NASDAQ:AAPL) Berkshire added to its stake in Apple shares yet again in the latest quarter. What is the Price Target for AAPL Stock?
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Apple (NASDAQ:AAPL) Berkshire added to its stake in Apple shares yet again in the latest quarter. What is the Price Target for AAPL Stock? The average AAPL stock price target of $182.56 implies 4.1% upside potential.
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Apple (NASDAQ:AAPL) Berkshire added to its stake in Apple shares yet again in the latest quarter. What is the Price Target for AAPL Stock? The average AAPL stock price target of $182.56 implies 4.1% upside potential.
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15759.0
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2023-05-19 00:00:00 UTC
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Why Alphabet Stock Keeps Going Up
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AAPL
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https://www.nasdaq.com/articles/why-alphabet-stock-keeps-going-up
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nan
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nan
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What happened
As trading winds down for the week, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) stock is going out with a bang, capping a four-day run of constantly rising stock prices with another 1% gain (as of 11:25 a.m. ET).
And Alphabet can thank Samsung (OTC: SSNL.F) for that.
So what
One month ago -- almost to the day -- Alphabet stock lost $50 billion in a single day when The New York Times reported that key smartphone partner Samsung was considering removing Alphabet's Google as the default search engine on its phones. Enamored of ChatGPT and the potential of artificial intelligence to improve the functionality of search, Samsung was reportedly considering replacing Google with the new ChatGPT-powered Bing from Microsoft (NASDAQ: MSFT). If that happened, Google could conceivably have seen its share of the global search market shrink, unless Samsung users affirmatively chose to download Google as their preferred search app -- a prospect that send Alphabet execs into a "panic," as the NYT reported.
But now it seems Alphabet has dodged this bullet.
This morning, The Wall Street Journal reported that Samsung has "suspended an internal review that had explored replacing Google with Bing on its mobile devices" and decided to stick with Google for the long term.
Now what
But Alphabet's not entirely out of the woods yet. The NYT noted last month that the company has a contract renewal with Apple (NASDAQ: AAPL) on the horizon. Apple might be even more motivated than Samsung to twist the knife into a rival whose Android operating system is its major competitor in smartphones globally. But for the moment, at least, you have to figure that Alphabet (and its shareholders) are breathing a sigh of relief.
WSJ also points out that Alphabet is paying Apple somewhere between $8 billion and $12 billion per year -- apparently significantly more than it pays Samsung -- to keep Google as its default search engine. That essentially free revenue stream might be a second reason Apple wants to stick with Google.
One thing does worry me, though: Why exactly did Samsung suddenly change its mind -- and might the reason be that, quietly, behind the scenes, Alphabet offered to pay Samsung something closer to the fee it pays Apple, to keep Google on its smartphones? No one's confirmed such a move on Alphabet's part, mind you -- but "panicked" companies sometimes do strange things, and I do wonder.
If Alphabet begins to lose pricing power in its negotiations with partners, simply because Microsoft decided to offer a better product in competition, that wouldn't be good news for Alphabet. It would, in fact, be a reason for Alphabet stock to go down, not up.
10 stocks we like better than Alphabet
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 Alphabet 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The NYT noted last month that the company has a contract renewal with Apple (NASDAQ: AAPL) on the horizon. Enamored of ChatGPT and the potential of artificial intelligence to improve the functionality of search, Samsung was reportedly considering replacing Google with the new ChatGPT-powered Bing from Microsoft (NASDAQ: MSFT). Apple might be even more motivated than Samsung to twist the knife into a rival whose Android operating system is its major competitor in smartphones globally.
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The NYT noted last month that the company has a contract renewal with Apple (NASDAQ: AAPL) on the horizon. What happened As trading winds down for the week, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) stock is going out with a bang, capping a four-day run of constantly rising stock prices with another 1% gain (as of 11:25 a.m. So what One month ago -- almost to the day -- Alphabet stock lost $50 billion in a single day when The New York Times reported that key smartphone partner Samsung was considering removing Alphabet's Google as the default search engine on its phones.
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The NYT noted last month that the company has a contract renewal with Apple (NASDAQ: AAPL) on the horizon. What happened As trading winds down for the week, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) stock is going out with a bang, capping a four-day run of constantly rising stock prices with another 1% gain (as of 11:25 a.m. So what One month ago -- almost to the day -- Alphabet stock lost $50 billion in a single day when The New York Times reported that key smartphone partner Samsung was considering removing Alphabet's Google as the default search engine on its phones.
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The NYT noted last month that the company has a contract renewal with Apple (NASDAQ: AAPL) on the horizon. One thing does worry me, though: Why exactly did Samsung suddenly change its mind -- and might the reason be that, quietly, behind the scenes, Alphabet offered to pay Samsung something closer to the fee it pays Apple, to keep Google on its smartphones? After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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15760.0
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2023-05-19 00:00:00 UTC
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Technology Sector Update for 05/19/2023: GOOG, AAPL, WKEY
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-19-2023%3A-goog-aapl-wkey
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nan
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nan
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Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slightly down and the Philadelphia Semiconductor index falling 0.6%.
In company news, Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister. Alphabet shares were down 0.2%.
Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Apple was rising 0.3%.
WISeKey International (WKEY) jumped past 40% after it said that, in collaboration with Fossa Systems, the company will launch new satellites with SpaceX.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slightly down and the Philadelphia Semiconductor index falling 0.6%. WISeKey International (WKEY) jumped past 40% after it said that, in collaboration with Fossa Systems, the company will launch new satellites with SpaceX.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. In company news, Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. In company news, Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slightly down and the Philadelphia Semiconductor index falling 0.6%. In company news, Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister.
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15761.0
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2023-05-19 00:00:00 UTC
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3 Reasons Why You Should NOT Sell in May and Go Away This Year
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AAPL
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https://www.nasdaq.com/articles/3-reasons-why-you-should-not-sell-in-may-and-go-away-this-year
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This May, for many reasons, investors remain skittish. While U.S. equities have had a glorious start to the calendar year, many of the gains have been erased. This may have some investors considering the “sell in May” myth and wondering if they should heed the advice of the old adage.
For example, the Dow Jones Industrial Average and the Russell 2000, which captures the performance of mid-to-small cap companies, ended January up 2.8% and 9.69%, respectively. But year-to-date, investors have begun to sell their holdings and the indices have roughly returned 0.83% and 0.75%, respectively.
The reason why? Noise on the macroeconomic front. In theory, equity investors should put their money in stocks for their intrinsic value and positive fundamentals. Nowadays, however, investors have been charged with parsing through U.S. economic data and predicting the monetary policy of the Federal Reserve.
However, despite all this seemingly bad news, the economy’s surprising resilience and the Federal Reserve’s newly found patience are reasons why investors should keep their money in stocks. Not to mention, the current volatility could bring a wealth of opportunities in the short and medium term.
Therefore, let’s dive into the reasons why the “sell in May” myth is exactly that — a myth.
Reason No. 1: The U.S. Economy Is Resilient
Source: sulit.photos / Shutterstock.com
If you look back at headlines of the major financial newspapers in December 2022, it seemed most economists predicted a recession in both the United States and globally in 2023. Fortunately, the macroeconomic landscape has shifted for the better.
Now, many economists are predicting a recession to come “later than expected.” Additionally, commodities prices are on track to be less elevated this year: gas prices have fallen when compared to their high in 2022, and food prices are beginning to stabilize. This has surely lifted a lot of inflationary pressure off of consumers and will paint a slightly brighter economic picture.
Furthermore, the U.S. labor market has also proven to be a bright spot amid the current backdrop, even if the Fed doesn’t seem to think so. Businesses, particularly in the services sector, are still looking to invest in human capital, given the most recent jobs report. Plus, many publicly listed companies have reported higher-than-expected Q1 earnings. Ultimately, these are indicators of an economy that still has plenty of steam left in it.
Reason No. 2: The Fed Has Signaled a Shift in Strategy
Source: MDart10 / Shutterstock
To fend off domestic inflation brought on by rising commodities prices, the U.S. Federal Reserve began hiking rates in mid-March 2022. Since then, the central bank has hiked the key federal funds rate a whopping total of 10 times, effectively putting the federal funds rate to sit between 5% and 5.25%.
The Fed’s efforts have not gone without consequence. In the most recent consumer price index (CPI) report, headline inflation came in cooler than expected at 4.9% year-over-year, while core inflation remained unchanged. These clear signs of cooling along with possible fragility in the regional banking sector has caused the Federal Reserve to rethink its rate-hike course.
During the Federal Open Market Committee (FOMC) meeting on May 3, the Fed decided to increase interest rates by an additional 25 basis points. But its subsequent press relief omitted the phrase: “the Committee anticipates that some additional policy firming may be appropriate.” This indicates additional rate hikes are not guaranteed; rather, the Fed has adopted a “wait and see” approach.
Despite the uneven economic data, inflation is trending downward, and the Federal Reserve’s decision to switch its approach could bring less volatility to equity markets and give investors less of a reason to sell.
Reason No. 3: Volatility and Patience Bring Opportunities
Source: Maryna Pleshkun/Shutterstock.com
Given that Q1 earnings season is ongoing, May will continue to be a volatile month for stocks. Investors also remain focused on economic data releases, which can add to that volatility. If stockholders were to get fidgety and sell everything this month, they could lose out on potential opportunities in the market.
On the one hand, a host of companies, from large technology behemoths like Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) to large retailers like Target (NYSE:TGT), have performed better than expected for the first three months of 2023. As more companies report and beat expectations, their share prices are likely to rise.
On the other hand, if there is a slew of economic data indicating a negative outlook that sparks a selloff, investors should not follow the herd. Rather, they should be keen to put money into stocks that fare well during recessions, such as defense, utilities or healthcare stocks.
As Warren Buffet has said: “Be fearful when others are greedy, and greedy when others are fearful.”
On the date of publication, Tyrik Torres 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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
The post 3 Reasons Why You Should NOT Sell in May and Go Away This Year 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 the one hand, a host of companies, from large technology behemoths like Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) to large retailers like Target (NYSE:TGT), have performed better than expected for the first three months of 2023. 1: The U.S. Economy Is Resilient Source: sulit.photos / Shutterstock.com If you look back at headlines of the major financial newspapers in December 2022, it seemed most economists predicted a recession in both the United States and globally in 2023. 2: The Fed Has Signaled a Shift in Strategy Source: MDart10 / Shutterstock To fend off domestic inflation brought on by rising commodities prices, the U.S. Federal Reserve began hiking rates in mid-March 2022.
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On the one hand, a host of companies, from large technology behemoths like Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) to large retailers like Target (NYSE:TGT), have performed better than expected for the first three months of 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This May, for many reasons, investors remain skittish. 2: The Fed Has Signaled a Shift in Strategy Source: MDart10 / Shutterstock To fend off domestic inflation brought on by rising commodities prices, the U.S. Federal Reserve began hiking rates in mid-March 2022.
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On the one hand, a host of companies, from large technology behemoths like Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) to large retailers like Target (NYSE:TGT), have performed better than expected for the first three months of 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This May, for many reasons, investors remain skittish. However, despite all this seemingly bad news, the economy’s surprising resilience and the Federal Reserve’s newly found patience are reasons why investors should keep their money in stocks.
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On the one hand, a host of companies, from large technology behemoths like Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) to large retailers like Target (NYSE:TGT), have performed better than expected for the first three months of 2023. However, despite all this seemingly bad news, the economy’s surprising resilience and the Federal Reserve’s newly found patience are reasons why investors should keep their money in stocks. 2: The Fed Has Signaled a Shift in Strategy Source: MDart10 / Shutterstock To fend off domestic inflation brought on by rising commodities prices, the U.S. Federal Reserve began hiking rates in mid-March 2022.
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2023-05-19 00:00:00 UTC
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The Trade Desk Stock: Bear vs. Bull
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https://www.nasdaq.com/articles/the-trade-desk-stock%3A-bear-vs.-bull-0
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If you had invested $1,000 in The Trade Desk (NASDAQ: TTD) when it went public in September 2016, your investment would be worth nearly $37,000 today. The same investment in an S&P 500 index fund would have only grown to about $1,900.
This ad tech company easily outperformed the market because its growth rates were explosive. Between 2016 and 2021, its annual revenue rose at a compound annual growth rate (CAGR) of 43% as its net income grew at a CAGR of 46%. But does The Trade Desk still have room to run after those massive gains? Let's review the bear and bull cases to find out.
Image source: Getty Images.
What the bears will tell you about The Trade Desk
The Trade Desk is the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable advertisers to bid on ad space across desktop, mobile, and connected TV (CTV) platforms. They sit on the opposite end of the ad supply chain from sell-side platforms (SSPs) like Magnite (NASDAQ: MGNI), which enable publishers to sell their own ad inventories.
The bears will point out that other large digital advertising companies, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with its Google and Meta Platforms (NASDAQ: META), already bundle DSPs, SSPs, and other services together on their advertising platforms. Those bundles could be more cost-efficient than stand-alone DSPs and SSPs.
The bears will also note that The Trade Desk's revenue growth is cooling off. Sales rose 43% in 2021 and 32% in 2022, but analysts expect just 21% growth in 2023. So while the company is still growing rapidly, it isn't completely immune to the macro headwinds for the broader advertising sector.
Its margins are also gradually contracting as it ramps up its spending on new features. Its margin on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) held steady at 42% in 2021 and 2022, but analysts expect that metric to dip to 39% this year.
That slowdown seems minor, but the stock is still pricey at 16 times this year's sales and 42 times its adjusted EBITDA. Magnite, which is growing more slowly, trades at three times this year's sales and 11 times its adjusted EBITDA.
What the bulls will tell you about The Trade Desk
The bulls believe The Trade Desk can easily compete against Google, Meta, and other diversified advertising giants with three long-term strategies.
First, it will continue to attract advertisers that want to purchase ads across the vast "open" internet of independent websites, apps, and streaming TV services that haven't been locked into Google's and Meta's walled gardens.
Second, The Trade Desk expects the CTV market to drive its long-term growth as streaming platforms launch more ad-supported tiers. It already struck a big CTV deal with Disney's streaming platforms last year, while Netflix's recent rollout of an ad-supported tier suggests the nascent market is still expanding. According to eMarketer, CTV ad spending in the U.S. alone could more than double from $21.2 billion in 2022 to $43.6 billion in 2026 as linear TV platforms fade away.
Lastly, it's constantly upgrading its platform with innovative new features. Its new artificial intelligence-powered platform, Solimar, helps advertisers gather more first-party data to curb their dependence on third-party data. It's also rolling out a new Unified ID (UID) 2.0 data-tracking technology to eliminate the need for third-party cookies. These moves will counter Apple's privacy changes on iOS as well as Google's planned elimination of all third-party cookies by 2024.
The new OpenPath feature, which directly connects publishers to advertisers, could also render SSPs like Magnite obsolete and make The Trade Desk a more-diversified ad tech player like Google. Therefore, it isn't surprising to see its margins dip slightly as it widens its moat.
The bulls believe those strengths support its higher valuations. Analysts still expect its revenue and adjusted EBITDA to rise at a CAGR of 22% and 21%, respectively, from 2022 to 2025. Therefore, The Trade Desk's stock could still easily outperform Alphabet, Meta, and the broader advertising market over the next few years.
The bulls will remain in charge
The Trade Desk's stock isn't cheap, but its robust growth, constant innovation, and prioritization of the open internet and CTV markets justify its premium valuations. This isn't a stock for conservative investors, but I believe the bulls will stay in charge.
10 stocks we like better than The Trade Desk
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, Magnite, Meta Platforms, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Apple, Magnite, Meta Platforms, Netflix, The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First, it will continue to attract advertisers that want to purchase ads across the vast "open" internet of independent websites, apps, and streaming TV services that haven't been locked into Google's and Meta's walled gardens. The new OpenPath feature, which directly connects publishers to advertisers, could also render SSPs like Magnite obsolete and make The Trade Desk a more-diversified ad tech player like Google. The bulls will remain in charge The Trade Desk's stock isn't cheap, but its robust growth, constant innovation, and prioritization of the open internet and CTV markets justify its premium valuations.
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The bears will point out that other large digital advertising companies, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with its Google and Meta Platforms (NASDAQ: META), already bundle DSPs, SSPs, and other services together on their advertising platforms. Therefore, The Trade Desk's stock could still easily outperform Alphabet, Meta, and the broader advertising market over the next few years. The Motley Fool has positions in and recommends Alphabet, Apple, Magnite, Meta Platforms, Netflix, The Trade Desk, and Walt Disney.
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What the bears will tell you about The Trade Desk The Trade Desk is the world's largest independent demand-side platform (DSP) for digital ads. The bears will point out that other large digital advertising companies, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with its Google and Meta Platforms (NASDAQ: META), already bundle DSPs, SSPs, and other services together on their advertising platforms. What the bulls will tell you about The Trade Desk The bulls believe The Trade Desk can easily compete against Google, Meta, and other diversified advertising giants with three long-term strategies.
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The bears will point out that other large digital advertising companies, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with its Google and Meta Platforms (NASDAQ: META), already bundle DSPs, SSPs, and other services together on their advertising platforms. Therefore, The Trade Desk's stock could still easily outperform Alphabet, Meta, and the broader advertising market over the next few years. The Motley Fool has positions in and recommends Alphabet, Apple, Magnite, Meta Platforms, Netflix, The Trade Desk, and Walt Disney.
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2023-05-19 00:00:00 UTC
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Wall St Week Ahead-Artificial intelligence gives real boost to U.S. stock market
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https://www.nasdaq.com/articles/wall-st-week-ahead-artificial-intelligence-gives-real-boost-to-u.s.-stock-market
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By Lewis Krauskopf
NEW YORK, May 19 (Reuters) - Recent advances in artificial intelligence are fueling optimism over how businesses can operate more productively in the years ahead. They are also providing a big boost to the stock market.
The S&P 500's 9% rally this year has been driven by a handful of the index's biggest stocks, a number of which are at the center of the AI frenzy that has spread in the wake of the chatbot sensation ChatGPT.
Five stocks - Microsoft , Google parent Alphabet , Nvidia , Apple and Meta Platforms - are responsible for the S&P 500's entire year-to-date return, said Jessica Rabe, co-founder of DataTrek Research. About 25% to 50% of those gains are owed to "the buzz around artificial intelligence," she noted.
A recent Societe Generale analysis zeroed in on 20 stocks widely owned by AI-related exchange-traded funds, whose overall assets under management have grown almost 40% this year.
Removing those stocks from the S&P 500 would reduce the index's performance by roughly 10 percentage points, putting stocks in negative territory for the year, SocGen's analysis showed.
"It's the AI-driven stocks that are getting the strongest returns," said Manish Kabra, head of US equity strategy at SocGen. "As a secular theme, for sure, it's attractive."
The rush of AI developments has analysts licking their lips at the profit potential stemming from new revenue opportunities and productivity improvements.
Goldman Sachs strategists estimate that generative AI could create productivity gains that result in S&P 500 companies expanding profit margins by about 4 percentage points in a decade following widespread adoption.
Indeed, optimism over AI is a key factor supporting a stock market facing numerous headwinds. Those include uncertainty over the U.S. Congress coming to agreement to raise the debt ceiling and avoid a default, and worries the economy may be on the verge of a downturn, as the Federal Reserve's interest rate hikes filter through the economy.
"We are strongly of the view that AI will change the world," Jim Reid, strategist at Deutsche Bank, said in a note titled, "Will ChatGPT prevent the US recession?"
The AI excitement has helped propel hefty gains for some stocks. For example, shares of Microsoft, the second-largest U.S. company by market value, have climbed 32% this year. The software giant has grabbed headlines with its partnership with ChatGPT creator OpenAI and sprucing up its Bing search engine with AI.
Shares of Nvidia, the fifth-biggest U.S. company by market value whose chips are central in the AI excitement, have soared 110% this year.
The Global X Robotics & Artificial Intelligence ETF has jumped nearly 30% this year.
Investors next week will be keeping an eye on developments regarding the U.S. debt ceiling, as well as inflation data and corporate earnings including results from Nvidia.
Other factors have supported megacap stocks. Those include a decline in Treasury yields from last year's highs that has soothed concerns over tech valuations and investors viewing megacaps as safety plays in an uncertain environment.
At the same time, even the shares of potentially transformative technologies are vulnerable to price bubbles, as history shows. A dotcom stock mania helped markets roar higher in the late 1990s, but a crash followed a few years later, leaving only a handful of internet names standing.
A BofA Global Research report published Friday said AI stocks were in a "baby bubble" in comparison with far larger asset price moves seen in areas such as internet stocks and bitcoin over the last few decades.
Nonetheless, many investors say that AI is no fad.
King Lip, chief strategist at Baker Avenue Wealth Management in San Francisco, calls the developments in AI a "game changer." His firm owns shares of Microsoft, Nvidia and Alphabet.
"It goes beyond the next shiny object," Lip said. "The path is pretty clear on how generative AI can lead to earnings growth for these companies."
https://tmsnrt.rs/41MDptK
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Five stocks - Microsoft , Google parent Alphabet , Nvidia , Apple and Meta Platforms - are responsible for the S&P 500's entire year-to-date return, said Jessica Rabe, co-founder of DataTrek Research. Goldman Sachs strategists estimate that generative AI could create productivity gains that result in S&P 500 companies expanding profit margins by about 4 percentage points in a decade following widespread adoption. https://tmsnrt.rs/41MDptK ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday.
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Removing those stocks from the S&P 500 would reduce the index's performance by roughly 10 percentage points, putting stocks in negative territory for the year, SocGen's analysis showed. Goldman Sachs strategists estimate that generative AI could create productivity gains that result in S&P 500 companies expanding profit margins by about 4 percentage points in a decade following widespread adoption. A BofA Global Research report published Friday said AI stocks were in a "baby bubble" in comparison with far larger asset price moves seen in areas such as internet stocks and bitcoin over the last few decades.
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The S&P 500's 9% rally this year has been driven by a handful of the index's biggest stocks, a number of which are at the center of the AI frenzy that has spread in the wake of the chatbot sensation ChatGPT. Removing those stocks from the S&P 500 would reduce the index's performance by roughly 10 percentage points, putting stocks in negative territory for the year, SocGen's analysis showed. A BofA Global Research report published Friday said AI stocks were in a "baby bubble" in comparison with far larger asset price moves seen in areas such as internet stocks and bitcoin over the last few decades.
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The rush of AI developments has analysts licking their lips at the profit potential stemming from new revenue opportunities and productivity improvements. Goldman Sachs strategists estimate that generative AI could create productivity gains that result in S&P 500 companies expanding profit margins by about 4 percentage points in a decade following widespread adoption. His firm owns shares of Microsoft, Nvidia and Alphabet.
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15764.0
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2023-05-19 00:00:00 UTC
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Samsung not planning to replace Google with Bing in phones - WSJ
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https://www.nasdaq.com/articles/samsung-not-planning-to-replace-google-with-bing-in-phones-wsj-0
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Adds Microsoft declined to comment in paragraph 3
May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
Google and Samsung did not respond to Reuters requests for comment. Microsoft declined to comment.
A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi.
Google earns an estimated $3 billion in annual revenue from the Samsung contract, according to an April 16 report by the New York Times.
Samsung considering a potential shift to Bing was first reported last month and had weighed on Alphabet's shares at the time.
The integration of OpenAI's artificial intelligence technology into Microsoft-owned Bing has driven people to the little-used search engine and helped it compete better with market leader Google in page visits growth, according to data from analytics firm Similarweb.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((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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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report. The integration of OpenAI's artificial intelligence technology into Microsoft-owned Bing has driven people to the little-used search engine and helped it compete better with market leader Google in page visits growth, according to data from analytics firm Similarweb.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. Adds Microsoft declined to comment in paragraph 3 May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Microsoft declined to comment.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. Adds Microsoft declined to comment in paragraph 3 May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. Adds Microsoft declined to comment in paragraph 3 May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
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2023-05-19 00:00:00 UTC
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Prediction: These 5 Growth Stocks Will Be Worth Over $2 Trillion by 2033
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https://www.nasdaq.com/articles/prediction%3A-these-5-growth-stocks-will-be-worth-over-%242-trillion-by-2033
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A lot can happen in a decade. In early 2013, ExxonMobil was the world's most valuable company, with a market cap of $446 billion. Fast-forward to 2023, and there's been a changing of the guard. Exxon's market cap is back near where it was 10 years ago, coming in at $423 billion. At the same time, Apple (NASDAQ: AAPL) now wears the crown, with a market cap of $2.7 trillion.
Over the coming decade, there will likely be a number of high-profile companies that join this exclusive club. While some of the members won't be a surprise, others could be.
Let's take a look at my predictions for the five companies that will be worth $2 trillion by 2033.
Image source: Getty Images.
The shoo-ins
As I mentioned above, Apple already has a market cap of $2.7 trillion. There's little question that the stock could shed 25% of its value. In fact, as recently as January, shares were down 31% from their peak. However, this ignores any growth that Apple will achieve over the coming decade -- and if history is any indication, it could be significant. Driven by resilient and growing demand for the iPhone and the accompanying services, Apple boasts more than 1 billion active iPhones. Plus, those numbers keep growing, fueling its financial results.
Since 2013, Apple has increased its revenue by 168% and its diluted earnings per share (EPS) by 468%. This has, in turn, fueled stock-price gains of more than 1,000%. Apple currently trades for roughly 7 times sales. If it maintains its valuation, it would take just modest revenue growth to help the tech titan maintain its charter membership in the $2 trillion club.
The only other member of the club (as of this writing) is Microsoft (NASDAQ: MSFT), with a market cap of $2.3 trillion, and its prospects of retaining its membership are equally compelling. To be clear, the company lost about a third of its value during the recent downturn, but the resilience of its suite of products helped spark a rebound.
It's difficult to imagine a world without Windows, not to mention Word, Excel, or Outlook. This makes them -- and other Microsoft products -- staples in the business arena. Plus, the company's Azure cloud computing segment is the second-largest cloud infrastructure provider, partially due to its tight integration with Microsoft's expansive product portfolio.
Over the past decade, the company has increased its revenue by more than 300% and its EPS by 166%, driving its stock price up by more than 800%. The resilience of Microsoft's revenue and the mission-critical nature of its offerings has pushed its valuation to 11 times sales. At its current level of low-double-digit revenue growth, it's highly likely that Microsoft will still be worth more than $2 trillion by 2033, even if there's a bit of multiple compression.
The contenders
Though it's fallen on hard times, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) was a former member of the $2 trillion club and will likely rejoin its ranks in short order. Soon after reaching its zenith in November 2021, the emergence of the bear market stole Alphabet's thunder, driving the stock price down as much as 45% over the coming year. The culprit? Demand for digital advertising plummeted as businesses cut back on spending to shore up their financial positions and ride out the downturn.
There's no evidence that the decrease in demand for advertising is permanent, and history suggests Alphabet will rebound with the broader economy. What's more, Google Cloud is the fastest-growing of the cloud infrastructure providers, riding the digital transformation to new heights. Over the preceding 10 years, Alphabet increased revenue by 432% and EPS by 390%, fueling stock-price gains of over 400%. With its current market cap of $1.5 trillion, it will only take a return to low-double-digit growth at its current valuation of 5.4 times sales for the Google parent to regain its membership in the $2 trillion club.
Amazon (NASDAQ: AMZN) was on the verge of joining its big tech rivals in the $2 trillion club, reaching $1.99 trillion in November 2021 before being ravaged by the bear market. The ensuing macroeconomic headwinds have stifled consumer spending -- and with it much of the company's growth, but this, too, shall pass. Amazon retains its title as the world's largest e-commerce platform, which will no doubt fuel future growth.
But the return of consumer spending is just one catalyst to help drive its rebound. After nearly two decades, Amazon Web Services remains the largest cloud infrastructure provider, with a market share more than Microsoft Azure and Google Cloud combined, making it the name to beat. The company is also a rising star in the field of digital advertising, with captive audiences on its digital retail site, as well as FreeVee, its ad-supported streaming channel.
A return to form will boost Amazon's chances of finally joining the $2 trillion club. Over the past decade, Amazon grew revenue by nearly 650% and EPS by more than 1,100%. The stock currently trades at just 2.2 times sales, so if the company returns to mid-double-digit growth -- with no change in its valuation -- Amazon could easily eclipse that market cap.
The long shot
As I've illustrated above, it won't take much to push Amazon and Alphabet above $2 trillion -- and even less for Microsoft and Apple to stay there. The math is slightly different -- but no less likely -- for Nvidia (NASDAQ: NVDA). The company pioneered the graphics processing unit (GPU) and is the top choice of serious and novice gamers alike. Nvidia has since pivoted its technology to play a key role in cloud computing and artificial intelligence (AI). While it's the most volatile of these five stocks -- the product of its lofty valuation -- Nvidia has catalysts aplenty to help it achieve a $2 trillion market cap.
Nvidia is the undisputed leader in the discrete desktop GPU market with a dominant 88% share. It's also a key player in the cloud computing market, partnering with all the major cloud providers. That's not to mention the accelerating adoption of AI, another area where Nvidia is a standout. While estimates vary, Nvidia controls as much as 95% of the market for machine-learning chips, according to data provided by New Street Research.
Yet these accolades didn't stop Nvidia from being hit hard during the tech meltdown. At one point, the stock had lost more than two-thirds of its value. However, its fundamentals are sound. Over the preceding 10 years, Nvidia grew revenue by 536%, pushing its EPS up by more than 1,300%. This drove stock-price gains of 7,850%. To be clear, Nvidia's stock trades for a lofty 27 times sales, near the peak of its historical valuation range.
With its current market cap of $722 billion, the stock would have to rise by 11% annually to reach a $2 trillion market cap by 2033. Given its historical growth rate, that shouldn't be too difficult. However, there's always the potential that Nvidia suffers from multiple compression. For example, if investors were less generous regarding its growth prospects, and only valued Nvidia at 10 times sales, its market cap would drop to roughly $270 billion. From that level, it would have to grow its revenue by 23% annually to reach $2 trillion by 2033. Still very doable given its history, but you get the point.
10 stocks we like better than Apple
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See the 10 stocks
*Stock Advisor returns as of May 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Amazon.com, Apple, 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the same time, Apple (NASDAQ: AAPL) now wears the crown, with a market cap of $2.7 trillion. The only other member of the club (as of this writing) is Microsoft (NASDAQ: MSFT), with a market cap of $2.3 trillion, and its prospects of retaining its membership are equally compelling. Soon after reaching its zenith in November 2021, the emergence of the bear market stole Alphabet's thunder, driving the stock price down as much as 45% over the coming year.
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At the same time, Apple (NASDAQ: AAPL) now wears the crown, with a market cap of $2.7 trillion. Over the preceding 10 years, Alphabet increased revenue by 432% and EPS by 390%, fueling stock-price gains of over 400%. After nearly two decades, Amazon Web Services remains the largest cloud infrastructure provider, with a market share more than Microsoft Azure and Google Cloud combined, making it the name to beat.
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At the same time, Apple (NASDAQ: AAPL) now wears the crown, with a market cap of $2.7 trillion. With its current market cap of $1.5 trillion, it will only take a return to low-double-digit growth at its current valuation of 5.4 times sales for the Google parent to regain its membership in the $2 trillion club. The stock currently trades at just 2.2 times sales, so if the company returns to mid-double-digit growth -- with no change in its valuation -- Amazon could easily eclipse that market cap.
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At the same time, Apple (NASDAQ: AAPL) now wears the crown, with a market cap of $2.7 trillion. Demand for digital advertising plummeted as businesses cut back on spending to shore up their financial positions and ride out the downturn. With its current market cap of $1.5 trillion, it will only take a return to low-double-digit growth at its current valuation of 5.4 times sales for the Google parent to regain its membership in the $2 trillion club.
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15766.0
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2023-05-19 00:00:00 UTC
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Britain's $1.3 bln semiconductor support plan gets cool response
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AAPL
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https://www.nasdaq.com/articles/britains-%241.3-bln-semiconductor-support-plan-gets-cool-response
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nan
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By Alistair Smout and Kate Holton
LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference.
Chipmakers around the world have poured billions of dollars into the sector in recent years, with the United States and Europe backing the development of new plants after the COVID-19 pandemic showed the risk of relying on Taiwan and China.
Britain's plan, which has been in the works for around two years, is dwarfed by the $52.7 billion of U.S. chip subsidies and 43 billion euros ($47 billion) of proposed EU investment.
But it focuses on the area where Britain excels, the design of semiconductors, used in everything from cars to smartphones and washing machines. Prime Minister Rishi Sunak said it would help Britain build a "competitive edge on the global stage".
While companies in the sector welcomed publication of a strategy, they criticised the scale of support.
AI chip designer Graphcore said it was "modest" compared with countries such as Germany, while the head of graphene maker Paragraf said it was "flaccid".
"The UK's capital commitment is nothing but a rounding error in this industry," said Simon Thomas, CEO and founder of Paragraf, which describes itself as the only company in the world capable of manufacturing graphene to mass produce chips.
UNDERWHELMING
Under the new plan, some 200 million pounds of investment will be available in 2023-25, rising to up to 1 billion pounds in the next decade. While it is focused on research and design for now, Britain said it would support investment in chip manufacturing later this year.
Citi analysts described the focus as "sensible" but the money as "too little to be of significant value to major industry partners".
Sunak, in Japan for a Group of Seven (G7) leaders, also announced a semiconductors partnership with Tokyo, echoing an agreement with South Korea.
Britain is home to Arm, which designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple and Qualcomm.
It was sold to Japan's SoftBank in a 2016 deal that sparked criticism that Britain had allowed its biggest tech success to be bought by foreign investors. SoftBank now plans to list it in the United States.
Business leaders have become increasingly critical of Britain's strategy in recent months, saying they need joined-up support on everything from infrastructure to skills training and investment as they transition to a post-carbon future.
A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier.
($1 = 0.7923 pounds)
($1 = 0.9084 euros)
(Reporting by Alistair Smout and Sachin Ravikumar; Editing by Alexander Smith)
((alistair.smout@thomsonreuters.com; +44 207 542 7064; Reuters Messaging: alistair.smout.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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Chipmakers around the world have poured billions of dollars into the sector in recent years, with the United States and Europe backing the development of new plants after the COVID-19 pandemic showed the risk of relying on Taiwan and China. "The UK's capital commitment is nothing but a rounding error in this industry," said Simon Thomas, CEO and founder of Paragraf, which describes itself as the only company in the world capable of manufacturing graphene to mass produce chips. Business leaders have become increasingly critical of Britain's strategy in recent months, saying they need joined-up support on everything from infrastructure to skills training and investment as they transition to a post-carbon future.
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By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier. ($1 = 0.7923 pounds) ($1 = 0.9084 euros) (Reporting by Alistair Smout and Sachin Ravikumar; Editing by Alexander Smith) ((alistair.smout@thomsonreuters.com; +44 207 542 7064; Reuters Messaging: alistair.smout.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. Britain's plan, which has been in the works for around two years, is dwarfed by the $52.7 billion of U.S. chip subsidies and 43 billion euros ($47 billion) of proposed EU investment. A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier.
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By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. While it is focused on research and design for now, Britain said it would support investment in chip manufacturing later this year. SoftBank now plans to list it in the United States.
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15767.0
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2023-05-19 00:00:00 UTC
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3 Stocks You Can Keep Forever
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AAPL
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https://www.nasdaq.com/articles/3-stocks-you-can-keep-forever-9
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Who wouldn't want stocks they can keep forever? Think of all the trouble you'll save, not having to frequently find new stocks in which to invest.
It makes sense that if you've got great long-term performers in your portfolio, hang on and let them keep working for you, building your wealth. (And if you inherit such stocks, consider hanging on to them, too.) Here are three companies that seem poised to continue building wealth for shareholders over many more years.
1. Apple
Apple (NASDAQ: AAPL) needs little introduction. It has grown into an innovative technological juggernaut with a recent market value north of $2.7 trillion, offering consumer products that millions of people can't do without. (It recently boasted more than 2 billion installed devices worldwide.) A 2020 survey found that 40% of respondents would rather give up their dog for a month than give up their smartphone, while 64% would rather give up coffee than their smartphone. Not many companies have such compelling products.
If you want to hang on to a company forever, you need confidence in its ability to withstand all kinds of economies and changing times. Apple is poised to do so, with ample cash (it generates close to $100 billion of free cash flow annually!) and with strong innovation skills that have helped it introduce many new products, features, and even product categories over the years. Its recent second-quarter earnings report was rather encouraging, too, featuring record revenue for its services and iPhone businesses.
If you're itching to buy shares now, hold on -- because they're not exactly near bargain territory. You'd do well to add Apple to your watch list in order to buy later, or perhaps build a position in the stock gradually.
2. Berkshire Hathaway
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), helmed by Warren Buffett for many decades, is also an Apple shareholder, owning more than 5% of the company. But it's a contender for a berth in your portfolio in its own right, too.
Berkshire is also a massive company, with a recent market value topping $700 billion -- and it's a major employer, as well, employing around 383,000 people as of the end of 2022. The company owns many businesses in their entirety, with focuses on insurance and energy, among other things. Its subsidiaries include GEICO, Benjamin Moore, See's Candies, Fruit of the Loom, Clayton Homes, the McLane trucking company, and the entire BNSF railroad. It also owns sizable stakes in other companies, via stock. Along with its Apple shares, it recently owned roughly 20% of American Express, 8.4% of Chevron, more than 9% of Coca-Cola, and 12.6% of Bank of America.
Berkshire is built to last, with 92-year-old Buffett having designated successors who are already investing billions of company dollars and making some management decisions. (Buffett is still the boss, though.) It's long been conservatively run and maintains a big cash war chest, recently $130.6 billion in cash and short-term investments. On top of that, many of the businesses it owns are very defensive -- in industries, such as utilities and insurance, that tend to do well in any economic environment.
3. Charles Schwab
Charles Schwab (NYSE: SCHW) is another solid business to consider for your long-term portfolio. Like other financial services companies, its fortunes are somewhat tied to prevailing interest rates, but there's much more to the company. It's long been a major brokerage, and is even bigger now, having closed on its acquisition of TD Ameritrade in 2020.
Schwab is sturdy, with tens of billions of dollars in cash and equivalents on its balance sheet. It recently boasted 34.1 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.7 million banking accounts, and $7.58 trillion in client assets. Better still, Schwab collects a sizable chunk of its revenue from fees tied to offerings such as its banking accounts, mutual funds, and exchange-traded funds. (In 2022, more than $5 billion, some 27% of total revenue, came from asset management and administration fees and bank deposit account fees.) That's rather dependable revenue, and it helps make Schwab a company that's likely to perform well for its shareholders for a long time.
Do be careful with the concept of holding a stock forever -- because while you might hope and aim to hold certain securities for the foreseeable future, you still need to keep up with all your holdings. After all, even companies that seem indestructible can end up in trouble.
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 8, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Selena Maranjian has positions in American Express, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Charles Schwab 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 Apple (NASDAQ: AAPL) needs little introduction. It has grown into an innovative technological juggernaut with a recent market value north of $2.7 trillion, offering consumer products that millions of people can't do without. Its subsidiaries include GEICO, Benjamin Moore, See's Candies, Fruit of the Loom, Clayton Homes, the McLane trucking company, and the entire BNSF railroad.
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Apple Apple (NASDAQ: AAPL) needs little introduction. Berkshire Hathaway Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), helmed by Warren Buffett for many decades, is also an Apple shareholder, owning more than 5% of the company. It recently boasted 34.1 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.7 million banking accounts, and $7.58 trillion in client assets.
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Apple Apple (NASDAQ: AAPL) needs little introduction. Berkshire Hathaway Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), helmed by Warren Buffett for many decades, is also an Apple shareholder, owning more than 5% of the company. See the 10 stocks *Stock Advisor returns as of May 8, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Apple Apple (NASDAQ: AAPL) needs little introduction. That's rather dependable revenue, and it helps make Schwab a company that's likely to perform well for its shareholders for a long time. See the 10 stocks *Stock Advisor returns as of May 8, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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15768.0
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2023-05-19 00:00:00 UTC
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ANALYSIS-US debt ceiling deal could stall safety flight fueling megacap rally
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AAPL
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https://www.nasdaq.com/articles/analysis-us-debt-ceiling-deal-could-stall-safety-flight-fueling-megacap-rally
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By David Randall
NEW YORK, May 19 (Reuters) - A potential deal to lift the U.S. debt ceiling could spur money managers to pare holdings in the massive technology and growth stocks that have been havens this year and shift into the rest of the market, some investors believe.
Strong balance sheets and predictable cash flows have made megacap stocks such as Google parent Alphabet GOOGL.O, Microsoft Corp MSFT.O and Amazon.com AMZN.Oattractive places to hide over the last few months as investors worried about everything from the debt ceiling to a U.S. banking mess.
That has boosted their share price and buoyed market indexes, while leaving other stocks behind.
Megacap tech stocks command heavy weightings in major indexes. Their rally has been responsible for all of the 8.3% year-to-date gain in the S&P 500 .SPX through Wednesday's close, a Deutsche Bank report showed. Without them, the index would be down 0.5% for the year otherwise, according to the research. Through Thursday's close, the index was up 9.3%.
Should a deal on the debt ceiling be reached, "the pattern that we've seen over the last few months will reverse," said Michael O'Rourke, chief market strategist at Jones Trading, who is more bullish on equal-weighted S&P 500 exchange-traded funds than the market-cap weighted index. "The market as a whole is pricing in a lot more risk than those mega-cap names, and going forward a resolution could mean the market broadens out and outperforms that group."
Investors are watching Washington for signals that the White House will come to an agreement with congressional Republicans to increase the U.S. borrowing limit before the so-called X-date of June 1, which the Treasury Department has said is the day the federal government will run out of money to pay its bills. President Joe Biden and top U.S. congressional Republican Kevin McCarthy both expressed confidence Wednesday that a deal would be reached, avoiding fallout that would be sure to roil financial markets.
Spreads on U.S. government one-year credit default swaps - market-based gauges of the risk of a default – have been declining over the past few days amid signs of progress on debt ceiling discussions, standing at 154 basis points on Thursday, about 20 basis points below last week’s levels, according to S&P Global Market Intelligence data.
A recent survey of global fund managers from BofA Global Research showed that 71% believe a deal to raise the debt ceiling will be reached before the X-date.
Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research, believes a deal would prompt investors to move back into shorter-term U.S. Treasury maturities, which some have been avoiding due to debt ceiling concerns. A deal could also boost shares of companies in sectors that are benefiting from the continued strength in the U.S. economy, such as consumer discretionary, Frederick said.
“Giant mega cap companies that have huge balance sheets have been a nice place to hide," he said. "We expect to see some movement back into Treasuries because you're getting a nice yield, and some other parts of the equity market that have lagged behind.”
Of course, investors are unlikely to abandon tech stocks entirely, after a decade during which the category has led markets higher. Excitement over artificial intelligence, which has boosted some megacap names this year, is another factor that could support the category.
Many would also view a broadening of the equity rally as an encouraging sign of the market’s overall health.
“For the market to send a stronger signal substantiating direction, we will need to see ... improved breadth/participation,” John Lynch, chief investment officer at Comerica Wealth Management wrote earlier this week.
At the same time, the debt ceiling has been only one of of several worries weighing on the market. Concerns that the Federal Reserve’s aggressive monetary policy tightening could reduce economic growth, and worries about the recent tumult in the banking sector are likely to remain, even if a default is avoided.
Paul Christopher, head ofglobal marketstrategy at Wells Fargo Investment Institute, expects lawmakers will reach an agreement to extend the debt ceiling through September.
Among the sectors he is bullish on is healthcare, a part of the market seen as a haven during troubled economic times.
“It’s been a very tilted market,” he said. "We think investors are going to look through this soon and try to find areas that are going to generate revenue if growth comes down."
(Reporting by David Randall; Additional reporting by Davide Barbuscia; Editing by Ira Iosebashvili and David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, May 19 (Reuters) - A potential deal to lift the U.S. debt ceiling could spur money managers to pare holdings in the massive technology and growth stocks that have been havens this year and shift into the rest of the market, some investors believe. Investors are watching Washington for signals that the White House will come to an agreement with congressional Republicans to increase the U.S. borrowing limit before the so-called X-date of June 1, which the Treasury Department has said is the day the federal government will run out of money to pay its bills. Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research, believes a deal would prompt investors to move back into shorter-term U.S. Treasury maturities, which some have been avoiding due to debt ceiling concerns.
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Their rally has been responsible for all of the 8.3% year-to-date gain in the S&P 500 .SPX through Wednesday's close, a Deutsche Bank report showed. Spreads on U.S. government one-year credit default swaps - market-based gauges of the risk of a default – have been declining over the past few days amid signs of progress on debt ceiling discussions, standing at 154 basis points on Thursday, about 20 basis points below last week’s levels, according to S&P Global Market Intelligence data. A recent survey of global fund managers from BofA Global Research showed that 71% believe a deal to raise the debt ceiling will be reached before the X-date.
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By David Randall NEW YORK, May 19 (Reuters) - A potential deal to lift the U.S. debt ceiling could spur money managers to pare holdings in the massive technology and growth stocks that have been havens this year and shift into the rest of the market, some investors believe. Should a deal on the debt ceiling be reached, "the pattern that we've seen over the last few months will reverse," said Michael O'Rourke, chief market strategist at Jones Trading, who is more bullish on equal-weighted S&P 500 exchange-traded funds than the market-cap weighted index. "We expect to see some movement back into Treasuries because you're getting a nice yield, and some other parts of the equity market that have lagged behind.” Of course, investors are unlikely to abandon tech stocks entirely, after a decade during which the category has led markets higher.
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That has boosted their share price and buoyed market indexes, while leaving other stocks behind. Megacap tech stocks command heavy weightings in major indexes. Without them, the index would be down 0.5% for the year otherwise, according to the research.
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15769.0
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2023-05-19 00:00:00 UTC
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Krafton says India revoked ban on its battle-royale game
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AAPL
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https://www.nasdaq.com/articles/krafton-says-india-revoked-ban-on-its-battle-royale-game
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nan
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Adds details from statement in paragraph 4, and background in paragraph 2, 3, 5 and 6
May 19 (Reuters) - South Korea's Krafton Inc 259960.KS, a company backed by China's Tencent 0700.HK on Friday said it received approval from Indian authorities to resume its popular battle-royale format game in the country after being banned for nearly a year.
The government had in July blockedKrafton's titleBattlegrounds Mobile India (BGMI), citing concerns about its data-sharing and mining in China.
BGMI had more than 100 million users in India at the time of removal. Following a government directive, the app was removed from Alphabet Inc's GOOGL.O Google Play Store and Apple Inc's AAPL.O App Store.
A Facebook page for the title says the game will be available for download soon.
New Delhi had, back in 2020, banned another Krafton title, PlayerUnknown's Battlegrounds (PUBG) following which the company launched BGMI.
India had ramped up scrutiny of Chinese businesses since a 2020 border clash between the neighbours that led to a ban of more than 300 Chinese apps, including TikTok. The government also intensified the scrutiny of investments by Chinese firms.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Dhanya Ann Thoppil)
((Mrinmay.Dey@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following a government directive, the app was removed from Alphabet Inc's GOOGL.O Google Play Store and Apple Inc's AAPL.O App Store. Adds details from statement in paragraph 4, and background in paragraph 2, 3, 5 and 6 May 19 (Reuters) - South Korea's Krafton Inc 259960.KS, a company backed by China's Tencent 0700.HK on Friday said it received approval from Indian authorities to resume its popular battle-royale format game in the country after being banned for nearly a year. The government had in July blockedKrafton's titleBattlegrounds Mobile India (BGMI), citing concerns about its data-sharing and mining in China.
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Following a government directive, the app was removed from Alphabet Inc's GOOGL.O Google Play Store and Apple Inc's AAPL.O App Store. Adds details from statement in paragraph 4, and background in paragraph 2, 3, 5 and 6 May 19 (Reuters) - South Korea's Krafton Inc 259960.KS, a company backed by China's Tencent 0700.HK on Friday said it received approval from Indian authorities to resume its popular battle-royale format game in the country after being banned for nearly a year. The government had in July blockedKrafton's titleBattlegrounds Mobile India (BGMI), citing concerns about its data-sharing and mining in China.
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Following a government directive, the app was removed from Alphabet Inc's GOOGL.O Google Play Store and Apple Inc's AAPL.O App Store. Adds details from statement in paragraph 4, and background in paragraph 2, 3, 5 and 6 May 19 (Reuters) - South Korea's Krafton Inc 259960.KS, a company backed by China's Tencent 0700.HK on Friday said it received approval from Indian authorities to resume its popular battle-royale format game in the country after being banned for nearly a year. India had ramped up scrutiny of Chinese businesses since a 2020 border clash between the neighbours that led to a ban of more than 300 Chinese apps, including TikTok.
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Following a government directive, the app was removed from Alphabet Inc's GOOGL.O Google Play Store and Apple Inc's AAPL.O App Store. Adds details from statement in paragraph 4, and background in paragraph 2, 3, 5 and 6 May 19 (Reuters) - South Korea's Krafton Inc 259960.KS, a company backed by China's Tencent 0700.HK on Friday said it received approval from Indian authorities to resume its popular battle-royale format game in the country after being banned for nearly a year. The government had in July blockedKrafton's titleBattlegrounds Mobile India (BGMI), citing concerns about its data-sharing and mining in China.
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15770.0
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2023-05-19 00:00:00 UTC
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3 Stocks to Add to Your Portfolio in a Market Pull-Back
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-add-to-your-portfolio-in-a-market-pull-back-1
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nan
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Last year, the Nasdaq Composite index plunged 33% as macroeconomic headwinds brought down the whole market. The pull-back caused stocks in some of the world's most valuable companies to effectively go on sale, prompting countless buying opportunities.
The market has gradually begun recovering alongside easing inflation in 2023. However, the cost of living remains high, with the consumer price index rising 4.9% in April. As a result, it's not too late to take advantage of stocks that could soar once economic challenges subside.
Here are three stocks to add to your portfolio in a market pull-back.
1. Amazon
With Amazon's (NASDAQ: AMZN) business focused on e-commerce and cloud computing, an economic downturn has hit the company particularly hard. High inflation reduced consumer spending on its online retail site, while businesses tightened their budgets on cloud spending.
However, both markets have vast potential over the long term. The e-commerce market on its own is projected to achieve a value of $4 trillion this year. Meanwhile, online sales only made up about 15% of all retail purchases last year, indicating the market is nowhere near hitting its ceiling. As a result, Amazon's leading market share in the sector could massively pay off once inflation improves and consumers can spend more freely.
Moreover, the company's cloud platform, Amazon Web Services, has similar potential thanks to its dominance in the industry. Data from Grand View Research states the cloud market is projected to grow at a compound annual growth rate of 14% through 2030 and could be further boosted by a current boom in artificial intelligence.
Amazon's stock climbed 35% in 2023 as investors have rallied as inflation's eased. However, at about $113 a share, it still has a long way to go before returning to its year-over-year high of $145 it achieved last August. As a result, Amazon is a bargain buy compared to its potential.
2. Disney
The challenges facing e-commerce and the cloud market have similarly affected entertainment companies as consumers pulled back on discretionary spending. Consequently, Disney (NYSE: DIS) shares fell 44% in 2022 and remain down 14% for the year. However, the company's valuable content library and dominance at the box office and in theme parks suggest it has much to offer once the market improves.
In Disney's second quarter of 2023, all eyes were on its loss of 4 million subscribers from its flagship streaming service, Disney+. While the decline is a short-term concern, not all hope is lost for the digital business. Financially, Disney's direct-to-consumer (streaming) segment seems to be on a growth track. Second-quarter 2023 saw Disney's streaming revenue rise 12% year over year while operating losses improved by 26%.
As Disney's direct-to-consumer segment heads toward profitability, the company's parks business continued to thrive since they reopened in 2022. The most recent quarter saw revenue rise 17% year over year for Disney parks, hitting close to $8 billion.
Disney has had a rough few years with the COVID-19 pandemic, followed by an economic tumble. Yet, its average 12-month price target of $126 projects stock growth of 38%, making this entertainment giant's stock a must-buy after a sell-off.
3. Apple
While Amazon and Disney make excellent investment options because of their potential once market headwinds improve, Apple (NASDAQ: AAPL) is a smart option for building stability into your portfolio.
The chart below shows that Apple was one of the only companies to outperform the Nasdaq last year amid a sell-off.
Data by YCharts
The iPhone company has continued to beat the market in 2023, with its stock up 32% year to date compared to the Nasdaq Composite's rise of 18%. Apple's reliable growth over the years makes it one of the best investments to keep your portfolio in good form, no matter the economic climate.
The company's reliability is primarily thanks to its almost unparalleled brand loyalty, which has kept product sales high despite its competitors suffering from reduced spending. For instance, Q1 2023 saw smartphone shipments from companies like Samsung and Xiaomi fall by 18.9% and 23.5%, respectively (per IDC). However, in the same time frame, Apple reported a 2% year-over-year rise in revenue in its iPhone segment.
As a result, a market pull-back is an excellent time to buy Apple, with its industry dominance likely to fortify your holdings.
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 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple While Amazon and Disney make excellent investment options because of their potential once market headwinds improve, Apple (NASDAQ: AAPL) is a smart option for building stability into your portfolio. Data from Grand View Research states the cloud market is projected to grow at a compound annual growth rate of 14% through 2030 and could be further boosted by a current boom in artificial intelligence. Disney The challenges facing e-commerce and the cloud market have similarly affected entertainment companies as consumers pulled back on discretionary spending.
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Apple While Amazon and Disney make excellent investment options because of their potential once market headwinds improve, Apple (NASDAQ: AAPL) is a smart option for building stability into your portfolio. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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Apple While Amazon and Disney make excellent investment options because of their potential once market headwinds improve, Apple (NASDAQ: AAPL) is a smart option for building stability into your portfolio. Disney The challenges facing e-commerce and the cloud market have similarly affected entertainment companies as consumers pulled back on discretionary spending. Data by YCharts The iPhone company has continued to beat the market in 2023, with its stock up 32% year to date compared to the Nasdaq Composite's rise of 18%.
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Apple While Amazon and Disney make excellent investment options because of their potential once market headwinds improve, Apple (NASDAQ: AAPL) is a smart option for building stability into your portfolio. As a result, Amazon is a bargain buy compared to its potential. The most recent quarter saw revenue rise 17% year over year for Disney parks, hitting close to $8 billion.
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2023-05-19 00:00:00 UTC
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1 FAANG Stock Warren Buffett Is Buying Hand Over Fist and Another He's Selling
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https://www.nasdaq.com/articles/1-faang-stock-warren-buffett-is-buying-hand-over-fist-and-another-hes-selling
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Just in case you missed it, one of the most important data releases of the quarter occurred on Monday, May 15. Monday marked the deadline for money managers with at least $100 million in assets under management to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot that allows investors to easily determine what stocks Wall Street's top money managers bought and sold in the most recent quarter (in this instance, the first quarter).
After the closing bell on May 15, Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) 13F hit the newswires and showed an abundance of activity. There are three entirely new positions, four prior holdings that were completely sold, and quite a few adds and subtractions to existing holdings. Perhaps the most notable is what Warren Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are doing with their FAANG stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett and his team are making moves among the FAANG stocks
When I say FAANG, I'm talking about:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)
Including Warren Buffett's secret portfolio and Berkshire Hathaway's ownership stake in Markel, which owns a diversified array of securities, Buffett and his team directly or indirectly have exposure to all five FAANG stocks.
AAPL data by YCharts.
Generally speaking, that's not a bad thing. All five companies are industry leaders that have vastly outperformed the benchmark S&P 500 over the trailing-10-year period. Here's a look at each company:
Meta lured 3.81 billion unique users to its popular social media platforms during the first quarter.
Apple sports a mammoth share buyback program and is the runaway leader in U.S. smartphone market share.
Amazon's online marketplace was expected to account for nearly 40% of U.S. online retail sales in 2022, according to a report from eMarketer.
Netflix is the clear leader in U.S. and international streaming market share.
Alphabet's internet search engine Google hasn't accounted for less than 90% of global monthly search share in over eight years.
Berkshire Hathaway's 13F shows that one of these FAANG stocks is being bought hand over fist, while another was modestly trimmed.
The FAANG stock Warren Buffett can't stop buying
If you've been following the Oracle of Omaha's buying activity over the past seven years, you're likely well aware of his affinity for tech stock Apple, which he summarized as "a better business than any we own" during his company's recent annual shareholder meeting. With feelings this strong about Apple, it should come as no shock that Buffett continued to be a buyer.
During the first quarter, Buffett and his team purchased more than 20.4 million shares of Apple. Excluding the shares owned by New England Asset Management (aka Buffett's secret portfolio), Berkshire's stake in the largest U.S. company by market cap is now north of 915 million shares.
The Oracle of Omaha loves Apple because it checks each and every box that matters to him and his investing lieutenants. It has an exceptionally strong and valuable brand, as well as a highly loyal customer base that regularly gobbles up new product releases. It's impossible to have a valuable brand without trust -- and it's quite clear that businesses and consumers trust Apple's products and management team.
That leads to the next point: Warren Buffett trusts Apple CEO Tim Cook and appreciates the direction in which he's taking the company. In particular, Cook is overseeing a steady transition that emphasizes subscription services. Although Apple isn't abandoning the products that allowed it to first resonate with consumers, it's evolving to include higher-margin revenue streams that'll further enhance customer loyalty and minimize the sales lumpiness associated with iPhone replacement cycles.
Another driving force behind Berkshire Hathaway's ever-growing stake in FAANG stock Apple is the company's aggressive capital-return program. Aside from having one of the largest nominal-dollar annual dividends on the planet, Apple has repurchased $586 billion of its common stock over the past 10 years. These buybacks are steadily increasing Berkshire Hathaway's ownership in Apple without Buffett and his team having to lift a finger.
However, I'd be remiss if I didn't also point out that Apple is historically pricey. After trading at a price-to-earnings ratio of 10 to 15 from 2013 through 2018, investors are now paying a multiple of 32 times earnings for a company expected to see its sales slide 11% in fiscal 2023 (Apple's fiscal year ends in late September). Apple doesn't exactly fit the mold of a stock the usually value-centric Warren Buffett would target.
Image source: Getty Images.
The one FAANG stock Buffett and his team are modestly selling
On the other side of the aisle, Warren Buffett and his lieutenants were modestly shrinking their existing stake in FAANG stock Amazon. A total of 115,000 shares were sold during the first quarter, which left Berkshire Hathaway with approximately 10.55 million remaining shares.
To be up front, there's a good chance it was either Ted Weschler or Todd Combs overseeing this selling activity. The Oracle of Omaha has gone on record as saying he wasn't responsible for his company initially buying shares of Amazon, and chances are he isn't all too familiar with the different facets of the company's operations. Nevertheless, any company in Berkshire Hathaway's portfolio is going to be dubbed a "Buffett stock."
Now for the all-important question: Why reduce Berkshire's stake in Amazon?
One possible reason could be the growing expectation that the U.S. will fall into a recession. Multiple indicators and metrics have suggested this is likely, and even the Federal Reserve has modeled a "mild recession" into its forecast for later this year. Since Amazon generates most of its revenue from its e-commerce marketplace, Buffett's investing lieutenants may be signaling the expectation of weaker online sales to come.
Valuation is another concern often brought up when discussing Amazon stock. During a bear market and/or recession, it's not uncommon for investors to go back to their roots and focus on traditional fundamental metrics. Those traditional metrics currently have Amazon at a trailing-12-month price-to-earnings ratio of 271 and roughly 71 times consensus earnings per share in 2023.
However, valuing Amazon traditionally has never made much sense. Since Amazon reinvests the bulk of its operating cash flow back into its logistics and other growth initiatives, cash flow tends to be the better measure of success. After closing out the entirety of the 2010s at a multiple of 23 to 37 times cash flow, shares of Amazon can be purchased for under 15 times estimated cash flow in 2023 and less than 10 times forecast cash flow for 2025. Shares are actually cheaper now than they've ever been, relative to Amazon's cash-flow potential.
What's more, cloud infrastructure service Amazon Web Services (AWS) is far more important to the company's profitability and cash flow than its e-commerce marketplace. AWS is No. 1 worldwide, with 32% of cloud infrastructure service spending, according to Canalys, and it regularly accounts for 50% to 100% of Amazon's quarterly operating income.
Frankly, Berkshire Hathaway reducing its stake in Amazon doesn't make a lot of sense.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Markel, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Warren Buffett and his team are making moves among the FAANG stocks When I say FAANG, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Including Warren Buffett's secret portfolio and Berkshire Hathaway's ownership stake in Markel, which owns a diversified array of securities, Buffett and his team directly or indirectly have exposure to all five FAANG stocks. AAPL data by YCharts. That leads to the next point: Warren Buffett trusts Apple CEO Tim Cook and appreciates the direction in which he's taking the company.
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Warren Buffett and his team are making moves among the FAANG stocks When I say FAANG, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Including Warren Buffett's secret portfolio and Berkshire Hathaway's ownership stake in Markel, which owns a diversified array of securities, Buffett and his team directly or indirectly have exposure to all five FAANG stocks. AAPL data by YCharts. Excluding the shares owned by New England Asset Management (aka Buffett's secret portfolio), Berkshire's stake in the largest U.S. company by market cap is now north of 915 million shares.
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Warren Buffett and his team are making moves among the FAANG stocks When I say FAANG, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Including Warren Buffett's secret portfolio and Berkshire Hathaway's ownership stake in Markel, which owns a diversified array of securities, Buffett and his team directly or indirectly have exposure to all five FAANG stocks. AAPL data by YCharts. The FAANG stock Warren Buffett can't stop buying If you've been following the Oracle of Omaha's buying activity over the past seven years, you're likely well aware of his affinity for tech stock Apple, which he summarized as "a better business than any we own" during his company's recent annual shareholder meeting.
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Warren Buffett and his team are making moves among the FAANG stocks When I say FAANG, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Including Warren Buffett's secret portfolio and Berkshire Hathaway's ownership stake in Markel, which owns a diversified array of securities, Buffett and his team directly or indirectly have exposure to all five FAANG stocks. AAPL data by YCharts. Berkshire Hathaway CEO Warren Buffett.
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2023-05-19 00:00:00 UTC
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Technology Sector Update for 05/19/2023: HPE, GOOG, AAPL, WKEY
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https://www.nasdaq.com/articles/technology-sector-update-for-05-19-2023%3A-hpe-goog-aapl-wkey
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Tech stocks were declining late Friday, with the Technology Select Sector SPDR Fund (XLK) edging down 0.2% and the Philadelphia Semiconductor index slipping 0.7%.
In company news, Hewlett Packard (HPE) said it was selected by the Tokyo Institute of Technology to build its supercomputer, Tsubame 4.0, to accelerate artificial intelligence-driven discoveries. Hewlett Packard shares still eased 0.3%.
Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister. Alphabet shares were down 0.3%.
Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Apple shares were almost flat.
WISeKey International (WKEY) jumped 54% after it said that, in collaboration with Fossa Systems, the company will launch new satellites with SpaceX.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Tech stocks were declining late Friday, with the Technology Select Sector SPDR Fund (XLK) edging down 0.2% and the Philadelphia Semiconductor index slipping 0.7%. In company news, Hewlett Packard (HPE) said it was selected by the Tokyo Institute of Technology to build its supercomputer, Tsubame 4.0, to accelerate artificial intelligence-driven discoveries.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Tech stocks were declining late Friday, with the Technology Select Sector SPDR Fund (XLK) edging down 0.2% and the Philadelphia Semiconductor index slipping 0.7%. In company news, Hewlett Packard (HPE) said it was selected by the Tokyo Institute of Technology to build its supercomputer, Tsubame 4.0, to accelerate artificial intelligence-driven discoveries.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. In company news, Hewlett Packard (HPE) said it was selected by the Tokyo Institute of Technology to build its supercomputer, Tsubame 4.0, to accelerate artificial intelligence-driven discoveries. Alphabet's Google (GOOG) may face India government regulatory action after an antitrust watchdog found last year that the tech giant abused its market position and engaged in anti-completive practices, Reuters reported, citing an interview with a government minister.
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Apple (AAPL) has limited the use of ChatGPT and other artificial intelligence tools for part of its staff as the company works on similar technology, The Wall Street Journal reported. Hewlett Packard shares still eased 0.3%. Alphabet shares were down 0.3%.
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2023-05-19 00:00:00 UTC
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3 Stocks Warren Buffett Is Most Likely to Buy If a Recession Comes
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https://www.nasdaq.com/articles/3-stocks-warren-buffett-is-most-likely-to-buy-if-a-recession-comes
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Many economists predict that a U.S. recession is on the way. Even the Federal Reserve now believes that the chances of an economic downturn have increased.
What does Warren Buffett think? He probably wouldn't tell you. The legendary investor maintains that "near-term economic and market forecasts are worse than useless."
However, we can make a pretty good guess as to what Buffett would do if a recession comes. Here are the three stocks he would be most likely to buy.
1. Berkshire Hathaway
Buffett firmly believes that his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is "more broadly aligned with the country's economic future than is the case at any other U.S. company." If the U.S. economy turns south, it's likely that Berkshire stock will, too.
But anytime Berkshire's share price is available at a discount, Buffett pounces. He and his longtime business partner Charlie Munger basically have a blank check to use on stock buybacks when they think Berkshire's price is attractive.
Buffett and Munger clearly thought Berkshire's price was right in the first quarter of 2023. Berkshire repurchased $4.4 billion of its Class A and Class B shares. Last year, the company's stock buybacks totaled $7.9 billion.
Few are as optimistic about the long-term prospects of the U.S. as Buffett. He knows that the economy will bounce back from a recession, just as it always has. And with Berkshire's strong linkage with the U.S. economy, Buffett realizes that the stock is practically a sure-fire bet when its valuation is lower.
2. Occidental Petroleum
Buffett has aggressively bought shares of Occidental Petroleum (NYSE: OXY) more than any other over the last few quarters. He is especially confident in the leadership of the oil company's CEO, Vicki Hollub.
Berkshire invested another $127 million in Occidental in the first quarter of 2023. That increased the conglomerate's stake in the company to 23.8%. Buffett clearly wants to buy even more, though: Berkshire secured regulatory approval last year to acquire up to 50% of the oil producer.
A U.S. recession would give him a great opportunity to add to Berkshire's position in Occidental. The demand for oil and gas typically falls during an economic downturn. This would likely cause Occidental's profits -- and share price -- to decline, as well.
Buffett understands the cyclical nature of fossil fuel prices and the economy. He thinks that Occidental is poised to benefit from positive energy-usage trends over the coming years. Otherwise, he wouldn't be betting so heavily on the stock.
3. Apple
Aside from Berkshire Hathaway itself, Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock. We know that not only from the multibillionaire's words, but also from his actions. Buffett has invested Berkshire's money more heavily in Apple than any other stock -- by far.
Would Buffett buy even more shares of Apple during a recession? It's highly likely.
In the first quarter of 2022, Berkshire purchased around $600 million in additional Apple stock. Buffett told CNBC last year that he would have bought even more if the stock price had remained low.
Like most stocks, Apple would probably fall during a recession. If the decline was significant enough, it's a pretty good bet that Buffett would increase Berkshire's stake in the tech giant.
Importantly, Buffett believes that Apple is a great business with solid long-term prospects. He is also a big fan of Apple CEO Tim Cook, stating in an interview with CNBC last month that Cook has managed the company "in an extraordinary way."
Should you buy these stocks in a recession, too?
As previously mentioned, Berkshire Hathaway, Occidental Petroleum, and Apple shares are likely to fall during an economic downturn. There are other stocks you can buy that should perform much better during a recession.
However, I think that investors wouldn't go wrong by buying any of these three stocks if the U.S. economy enters a recession. Berkshire, Occidental, and Apple should be solid winners over the long term.
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 15, 2023
Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Aside from Berkshire Hathaway itself, Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock. He and his longtime business partner Charlie Munger basically have a blank check to use on stock buybacks when they think Berkshire's price is attractive. And with Berkshire's strong linkage with the U.S. economy, Buffett realizes that the stock is practically a sure-fire bet when its valuation is lower.
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Apple Aside from Berkshire Hathaway itself, Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock. Occidental Petroleum Buffett has aggressively bought shares of Occidental Petroleum (NYSE: OXY) more than any other over the last few quarters. If the decline was significant enough, it's a pretty good bet that Buffett would increase Berkshire's stake in the tech giant.
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Apple Aside from Berkshire Hathaway itself, Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock. Buffett has invested Berkshire's money more heavily in Apple than any other stock -- by far. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Keith Speights has positions in Apple and Berkshire Hathaway.
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Apple Aside from Berkshire Hathaway itself, Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock. Would Buffett buy even more shares of Apple during a recession? Like most stocks, Apple would probably fall during a recession.
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2023-05-19 00:00:00 UTC
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Should Schwab U.S. Large-Cap Growth ETF (SCHG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-growth-etf-schg-be-on-your-investing-radar-0
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The Schwab U.S. Large-Cap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $17.48 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.
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. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.47%.
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 44% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 52.33% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF return is roughly 24.05% so far this year and was up about 16.74% in the last one year (as of 05/19/2023). In the past 52-week period, it has traded between $54.19 and $69.25.
The ETF has a beta of 1.10 and standard deviation of 24.57% for the trailing three-year period, making it a medium risk choice in the space. With about 246 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap 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, SCHG is a reasonable 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 $85.65 billion in assets, Invesco QQQ has $180.88 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 >>
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Schwab U.S. Large-Cap Growth ETF (SCHG): 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 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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 $17.48 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 Schwab U.S. Large-Cap Growth ETF (SCHG): 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 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The Schwab U.S. Large-Cap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer 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 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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. The Schwab U.S. Large-Cap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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15775.0
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2023-05-19 00:00:00 UTC
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Samsung not planning to replace Google with Bing in phones - WSJ
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AAPL
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https://www.nasdaq.com/articles/samsung-not-planning-to-replace-google-with-bing-in-phones-wsj
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nan
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nan
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May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Shares of Google-parent Alphabet Inc GOOGL.O gained more than 1% in premarket trading. Microsoft shares were down about 1%.
Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
Google, Samsung and Microsoft did not immediately respond to Reuters requests for comment.
A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi.
Google earns an estimated $3 billion in annual revenue from the Samsung contract, according to an April 16 report by the New York Times.
Samsung considering a potential shift to Bing was first reported last month and had weighed on Alphabet's shares at the time.
The integration of OpenAI's artificial intelligence technology into Microsoft-owned Bing has driven people to the little-used search engine and helped it compete better with market leader Google in page visits growth, according to data from analytics firm Similarweb.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((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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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Microsoft shares were down about 1%.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Samsung has suspended an internal review that explored replacing Google with Bing on its web-browsing app, which comes pre-installed on the company's smartphones, according to the report.
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A sizable part of the revenue earned by search-engine companies comes from their long-term partnerships with phone makers such as Apple Inc AAPL.O and Xiaomi. May 19 (Reuters) - Samsung Electronics 005930.KS will not change the default search engine on its smartphones from Google to Microsoft Corp's MSFT.O Bing any time soon, the Wall Street Journal reported on Friday, citing people familiar with the matter. Microsoft shares were down about 1%.
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15776.0
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2023-05-19 00:00:00 UTC
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What's Going On With Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/whats-going-on-with-apple-stock
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nan
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nan
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Fool.com contributor and finance professor Parkev Tatevosian digs into Apple's (NASDAQ: AAPL) latest operational results to understand what's going on with the company.
*Stock prices used were the afternoon prices of May 16, 2023. The video was published on May 18, 2023.
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*Stock Advisor returns as of May 15, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. 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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Fool.com contributor and finance professor Parkev Tatevosian digs into Apple's (NASDAQ: AAPL) latest operational results to understand what's going on with the company. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor and finance professor Parkev Tatevosian digs into Apple's (NASDAQ: AAPL) latest operational results to understand what's going on with the company. 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 15, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor and finance professor Parkev Tatevosian digs into Apple's (NASDAQ: AAPL) latest operational results to understand what's going on with the company. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Fool.com contributor and finance professor Parkev Tatevosian digs into Apple's (NASDAQ: AAPL) latest operational results to understand what's going on with the company. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Parkev Tatevosian, CFA has positions in Apple.
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15777.0
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2023-05-18 00:00:00 UTC
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EXPLAINER-How Montana could enforce a TikTok ban
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AAPL
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https://www.nasdaq.com/articles/explainer-how-montana-could-enforce-a-tiktok-ban
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nan
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nan
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May 18 (Reuters) - Montana took the unusual step on Wednesday of banning Chinese-owned short video app TikTok, with lawmakers of the sparsely populated western U.S. state saying they aimed to protect residents from alleged intelligence gathering by China.
TikTok, which is wildly popular with American teens and owned by Chinese tech company ByteDance, is already banned on government-issued devices in around 30 U.S. states and for employees of the country's federal agencies.
While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores.
Montana's ban is set to take effect on Jan. 1 2024.
HAS THIS EVER BEEN DONE BEFORE?
Sort of.
Tech companies are now well-practiced in blocking apps at the country level, mostly to comply with U.S. sanctions or for business purposes, like Apple's blocking of messaging and privacy apps in China upon government request.
Enterprising young people in affected countries have an equally long track record of skirting the bans by downloading the apps while traveling internationally or using tools like virtual private networks (VPNs), which obscure their location.
Within the United States, Pornhub recently disabled its services for IP addresses in Utah ahead of a state law that came into effect requiring adult content platforms to verify users' ages. However, that involved a website only, not an app.
Specifically for apps, Google and Apple appear to have navigated a tangle of different U.S. state rules around online gambling by leaving compliance to individual app developers, according to their app storeguidance.
Google only started allowing gambling apps in its U.S. app store as of 2021, prior to which it restricted the apps in all but four countries: Brazil, France, Ireland and the United Kingdom.
Apple and Google declined to comment on how they approach state rules on gambling.
IS A STATE-LEVEL BAN EVEN TECHNICALLY FEASIBLE?
While TikTok can theoretically block IP addresses registered in Montana, app stores will have a more difficult time.
Apple and Google declined comment on the technical aspects of implementing a ban, but TechNet, a trade group funded by both companies, told Montana lawmakers in March that app stores "do not have the ability to geofence on a state-by-state basis."
"It would thus be impossible for our members to prevent the app from being downloaded specifically in the state of Montana," the TechNet representative testified.
According to cybersecurity researchers, that is likely because companies organize their app stores at the country level, meaning they have systems for shutting off downloads of a given app in some countries while keeping it accessible elsewhere.
The companies do not appear to have built such controls at a more granular level, the researchers said.
"I think it's possible but it's not possible today. It would require a bunch of code to be written," Alex Stamos, the director of the Stanford Internet Observatory and former top security officer at Facebook, said in a recent podcast.
The app stores also would need to monitor more detailed location data from users' phones than they currently use, infringing on users' privacy, Stamos said.
Even if the companies were to make those changes, TikTok-obsessed teens in Montana are likely to follow their peers around the world in learning how to use privacy tools and road trips to get the app onto their phones, said another researcher, John Scott-Railton at Citizen Lab.
"The youth of Montana are about to become America's experts in VPNs," Railton said.
(Reporting by Katie Paul; Editing by Kenneth Li and Anna Driver)
((Katie.Paul@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. May 18 (Reuters) - Montana took the unusual step on Wednesday of banning Chinese-owned short video app TikTok, with lawmakers of the sparsely populated western U.S. state saying they aimed to protect residents from alleged intelligence gathering by China. Enterprising young people in affected countries have an equally long track record of skirting the bans by downloading the apps while traveling internationally or using tools like virtual private networks (VPNs), which obscure their location.
|
While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Apple and Google declined to comment on how they approach state rules on gambling. While TikTok can theoretically block IP addresses registered in Montana, app stores will have a more difficult time.
|
While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Specifically for apps, Google and Apple appear to have navigated a tangle of different U.S. state rules around online gambling by leaving compliance to individual app developers, according to their app storeguidance. Google only started allowing gambling apps in its U.S. app store as of 2021, prior to which it restricted the apps in all but four countries: Brazil, France, Ireland and the United Kingdom.
|
While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Within the United States, Pornhub recently disabled its services for IP addresses in Utah ahead of a state law that came into effect requiring adult content platforms to verify users' ages. Apple and Google declined to comment on how they approach state rules on gambling.
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15778.0
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2023-05-18 00:00:00 UTC
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2 Key Themes From the Q1 Earnings Season
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AAPL
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https://www.nasdaq.com/articles/2-key-themes-from-the-q1-earnings-season
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nan
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nan
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We’ve learned a lot from earnings season so far, primarily that we haven’t faced the ‘earnings apocalypse’ many foretold and warned us of.
Zacks Director of Research, Sheraz Mian, says “The picture emerging from the Q1 earnings season continues to be one of resilience and stability, with companies not only beating estimates but also providing a good-enough outlook in an uncertain macro environment.”
With earnings season winding down, let’s take a look at two key themes from the 2023 Q1 cycle.
Pricing Power
There have been several big surprises from those in the Consumer Staples sector. We’ve seen various companies in the realm come out and post better-than-expected results, with pricing power helping lead the way.
For example, several companies, including PepsiCo PEP, Kimberly-Clark KMB, and Procter & Gamble PG, all raised guidance following strong quarterly results. Impressively, all three posted a double beat, exceeding both earnings and revenue expectations.
A key theme within the earnings releases was management’s commentary on pricing power, with consumers choosing to swallow higher prices. These companies’ products have an advantageous ability to generate consistent and solid demand in the face of many economic situations.
All three have outperformed the S&P 500 over the last month, with buyers stepping up following the results. Still, as we can see in the chart below, shares of all have started to lose steam over the past week.
Image Source: Zacks Investment Research
But the real question is, how long will it be until their pricing power runs out? While their success so far has been undeniably impressive, consumers could eventually reach a breaking point.
Big Tech = Big Surprises
Many feared that the big tech heavyweights, such as Amazon AMZN, Meta Platforms META, Apple AAPL, Alphabet GOOGL, and Microsoft MSFT would bring the market down with them, with bears shouting from the rooftops.
However, quite the opposite happened, with mega-cap tech showcasing their earnings power and buoying the market. All five exceeded earnings and revenue expectations, with buyers stepping up in full force post-earnings.
As we can see in the year-to-date chart below, these mega-cap giants have reflected a ‘flight to safety’ approach for investors in 2023, all widely outperforming the S&P 500 after a brutal 2022.
Image Source: Zacks Investment Research
Regarding their results, total Q1 earnings for the group were down 0.4% year-over-year on 4.3% higher revenues. The growth pace for this group is expected to pick up in the coming quarters, as illustrated in the chart below.
Image Source: Zacks Investment Research
Can their outperformance continue?
Bottom Line
With earnings season winding down, it’s beneficial to take a few steps back and reflect on a few key themes we’ve seen within the market, as it can better prepare us for the coming cycle.
So far, we’ve witnessed those in the Consumer Staples sector showcase their pricing power, whereas big tech showcased their market-moving abilities.
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One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Procter & Gamble Company (The) (PG) : 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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Big Tech = Big Surprises Many feared that the big tech heavyweights, such as Amazon AMZN, Meta Platforms META, Apple AAPL, Alphabet GOOGL, and Microsoft MSFT would bring the market down with them, with bears shouting from the rooftops. 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 Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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. For example, several companies, including PepsiCo PEP, Kimberly-Clark KMB, and Procter & Gamble PG, all raised guidance following strong quarterly results.
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Big Tech = Big Surprises Many feared that the big tech heavyweights, such as Amazon AMZN, Meta Platforms META, Apple AAPL, Alphabet GOOGL, and Microsoft MSFT would bring the market down with them, with bears shouting from the rooftops. 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 Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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. So far, we’ve witnessed those in the Consumer Staples sector showcase their pricing power, whereas big tech showcased their market-moving abilities.
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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 Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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. Big Tech = Big Surprises Many feared that the big tech heavyweights, such as Amazon AMZN, Meta Platforms META, Apple AAPL, Alphabet GOOGL, and Microsoft MSFT would bring the market down with them, with bears shouting from the rooftops. Zacks Director of Research, Sheraz Mian, says “The picture emerging from the Q1 earnings season continues to be one of resilience and stability, with companies not only beating estimates but also providing a good-enough outlook in an uncertain macro environment.” With earnings season winding down, let’s take a look at two key themes from the 2023 Q1 cycle.
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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 Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : 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. Big Tech = Big Surprises Many feared that the big tech heavyweights, such as Amazon AMZN, Meta Platforms META, Apple AAPL, Alphabet GOOGL, and Microsoft MSFT would bring the market down with them, with bears shouting from the rooftops. Image Source: Zacks Investment Research Regarding their results, total Q1 earnings for the group were down 0.4% year-over-year on 4.3% higher revenues.
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15779.0
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2023-05-18 00:00:00 UTC
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Bargain Alert! Buy SNAP Stock Now to Profit From Its Comeback.
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AAPL
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https://www.nasdaq.com/articles/bargain-alert-buy-snap-stock-now-to-profit-from-its-comeback.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Snap (NYSE:SNAP) stock is down and out. Shares have sunk 12% over the past month and many on Wall Street have largely given up on the name. But I believe that SNAP has what it takes to make a fantastic, huge comeback.
Here are four reasons why I believe that buying SNAP on weakness now will turn out to be a great decision for long-term investors.
Snap’s User Growth Is Strong
In the first quarter, Snap’s daily active user growth jumped a very impressive 15% year over year to 383 million. Over the longer term, marketers decide where to spend their ad dollars based on the number of users that platforms attract.
For example, as podcasts have attracted more listeners, the amount of money spent by advertisers on the medium has surged.
Snap’s huge user growth bodes well for its ability to grow its ad revenue over the medium and long term.
Ad Spending by Large Companies Will Rebound
Responding to Snap’s first-quarter results, Truist wrote that Snap had been hurt by its relatively high dependency on large advertisers.
Indeed, many large marketers likely lowered their ad spending last quarter amid the regional crisis and recession fears.
But in recent days, we learned that many large investors bought bank stocks in the first quarter. Moreover, the declines of U.S. bank deposits, which many bears warned would be huge, have turned out to be minimal.
And a recession does not appear to be at all imminent, as the economy grew 1.1% last quarter and, as of May 17, the Fed was predicting that it would expand a robust 2.6% in the current quarter. Further, the central bank was estimating that “real personal consumption expenditures growth” would come in at a strong 1.8%.
Therefore, recession fears are likely to soon greatly ease. As a result, large companies are likely to raise their ad budgets in the not-too-distant future.
Snap Will Make Important Changes
Snap is starting to give marketers the chance to buy ads that it shows in conjunction with its popular short videos. Additionally, the company is allowing marketers to ensure that their ads will be “the first video ad between Friend Stories” viewed by users. And finally, the company has launched a new, free AI chatbot, and it plans to soon start selling ads that will be seen by those who utilize the chatbot.
All of those initiatives, taken together, should positively move the needle for Snap’s financial results and SNAP stock.
Moreover, Truist reported that Snap, as of last quarter, was still having trouble dealing with the ramifications of the changes that Apple (NASDAQ:AAPL) made to its privacy rules. But after Meta Platforms (NASDAQ:META) was able to largely overcome that issue, I’m sure that Snap will be able to follow suit in the medium term.
The Valuation of SNAP Stock Is Attractive
SNAP is changing hands for 2.85 times analysts’ average 2024 revenue estimate. Given that Snap’s user base is growing rapidly and that analysts, on average, expect it to generate earnings per share of 17 cents next year, that’s an attractive valuation.
For long-term investors looking to capitalize on overdone fears about a recession, SNAP stock is a very good name to buy on weakness.
On the date of publication, Larry Ramer 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.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
The post Bargain Alert! Buy SNAP Stock Now to Profit From Its Comeback. 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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Moreover, Truist reported that Snap, as of last quarter, was still having trouble dealing with the ramifications of the changes that Apple (NASDAQ:AAPL) made to its privacy rules. Snap’s huge user growth bodes well for its ability to grow its ad revenue over the medium and long term. Given that Snap’s user base is growing rapidly and that analysts, on average, expect it to generate earnings per share of 17 cents next year, that’s an attractive valuation.
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Moreover, Truist reported that Snap, as of last quarter, was still having trouble dealing with the ramifications of the changes that Apple (NASDAQ:AAPL) made to its privacy rules. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap (NYSE:SNAP) stock is down and out. Snap’s User Growth Is Strong In the first quarter, Snap’s daily active user growth jumped a very impressive 15% year over year to 383 million.
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Moreover, Truist reported that Snap, as of last quarter, was still having trouble dealing with the ramifications of the changes that Apple (NASDAQ:AAPL) made to its privacy rules. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap (NYSE:SNAP) stock is down and out. Snap’s User Growth Is Strong In the first quarter, Snap’s daily active user growth jumped a very impressive 15% year over year to 383 million.
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Moreover, Truist reported that Snap, as of last quarter, was still having trouble dealing with the ramifications of the changes that Apple (NASDAQ:AAPL) made to its privacy rules. Snap’s huge user growth bodes well for its ability to grow its ad revenue over the medium and long term. Indeed, many large marketers likely lowered their ad spending last quarter amid the regional crisis and recession fears.
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15780.0
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2023-05-18 00:00:00 UTC
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3 High-Reward Stocks Riding the Streaming Services Boom
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AAPL
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https://www.nasdaq.com/articles/3-high-reward-stocks-riding-the-streaming-services-boom
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Streaming stocks have not had a very good run lately. For a while, many of these stocks were screaming higher as the companies continued to add tens of millions of new subs. Now though, this group has fallen on hard times. It’s got many investors looking at this group as high-reward stocks.
Here’s the problem.
Many streaming businesses are operating at a loss. Content is expensive and so is building out a platform that millions of people will be using at once. It’s also hard to scale that around the world.
During bull markets, nobody cares about the losses. They care about streaming hours and paying subscribers. When the economy and stock markets come under pressure though, these businesses come under more scrutiny.
Let’s look at a few streaming stocks to buy that could have a notable upside into the next bull market.
Netflix (NFLX)
Source: xalien / Shutterstock
Netflix (NASDAQ:NFLX) leading off this list shouldn’t surprise anyone. It’s become one of the biggest names not only in streaming but in the whole entertainment industry. However, it hasn’t been an easy run for Netflix stock.
The stock suffered a peak-to-trough decline of more than 75%. However, it’s been on fire from the lows, up more than 100%.
While Netflix is the best-performing FAANG stock over the past year, its 15.3% year-to-date return is less than half that of the second worst-performing FAANG holding, which is Apple (NASDAQ:AAPL).
Despite all of that, one has to wonder where Netflix stock goes from here. Those looking for a good value had their chance when shares traded closer to the 15 to 18 times earnings area. Currently it sits at 30 times earnings and there’s less value than before, but if the top and bottom lines accelerate the way analysts expect in 2024, Netflix stock should do well.
Walt Disney (DIS)
Source: Shutterstock
Walt Disney (NYSE:DIS) is not getting any love from Wall Street right now. Shares are up just 10% from its 52-week lows. The firm’s recent earnings report was a big negative catalyst as investors were disappointed by the results.
The company reported in-line revenue results, missed on earnings expectations and lost 4 million streaming subs in the quarter. Ouch. No wonder shares suffered a one-day decline of 8.7% on the news.
That said, Disney still has almost 158 million paying streaming subscribers across its platforms. While it marked a 2% sequential decline, average revenue per user grew.
Further, let’s not forget that Disney is a juggernaut in entertainment. When you ignore its streaming revenue the company still has, studio blockbusters, TV channels, cruise ships and theme parks. It won’t fare well in a recession, but over the long-term Disney is a name to bet on. I personally think that’s particularly true as shares are down more than 50% from the all-time highs.
Warner Bros Discovery (WBD)
Source: Jimmy Tudeschi / Shutterstock.com
There’s a common theme between these three stocks, which is that it hasn’t been an easy run lately and the same can be said for Warner Bros Discovery (NASDAQ:WBD).
Previously kept under the AT&T umbrella, the firm spun off Warner Bros Discovery to help create value for shareholders. Unfortunately, WBD stock has struggled, with shares roughly cut in half since the spinoff about a year ago.
The firm is forecast to lose about 50 cents a share, although next year it’s forecast to earn about 50 cents a share in profit. It generated about $3.3 billion in free cash flow last year and while its debt is high, this is a name that could have big potential down the road for shareholders.
That’s particularly true if the stock takes another trip down into the single digits as Warner Bros has an expansive content library and a new platform via Max. Its streaming service scheduled to launch next week that will merge HBO Max and Discovery+.
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 High-Reward Stocks Riding the Streaming Services Boom 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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While Netflix is the best-performing FAANG stock over the past year, its 15.3% year-to-date return is less than half that of the second worst-performing FAANG holding, which is Apple (NASDAQ:AAPL). The company reported in-line revenue results, missed on earnings expectations and lost 4 million streaming subs in the quarter. It generated about $3.3 billion in free cash flow last year and while its debt is high, this is a name that could have big potential down the road for shareholders.
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While Netflix is the best-performing FAANG stock over the past year, its 15.3% year-to-date return is less than half that of the second worst-performing FAANG holding, which is Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Streaming stocks have not had a very good run lately. Netflix (NFLX) Source: xalien / Shutterstock Netflix (NASDAQ:NFLX) leading off this list shouldn’t surprise anyone.
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While Netflix is the best-performing FAANG stock over the past year, its 15.3% year-to-date return is less than half that of the second worst-performing FAANG holding, which is Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Streaming stocks have not had a very good run lately. Warner Bros Discovery (WBD) Source: Jimmy Tudeschi / Shutterstock.com There’s a common theme between these three stocks, which is that it hasn’t been an easy run lately and the same can be said for Warner Bros Discovery (NASDAQ:WBD).
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While Netflix is the best-performing FAANG stock over the past year, its 15.3% year-to-date return is less than half that of the second worst-performing FAANG holding, which is Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Streaming stocks have not had a very good run lately. Despite all of that, one has to wonder where Netflix stock goes from here.
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15781.0
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2023-05-18 00:00:00 UTC
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After Hours Most Active for May 18, 2023 : AGL, FTCH, AAPL, MTVC, SQQQ, PAGS, TGAA, QQQ, TQQQ, GOOGL, PCG, WFC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-18-2023-%3A-agl-ftch-aapl-mtvc-sqqq-pags-tgaa-qqq-tqqq-googl
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The NASDAQ 100 After Hours Indicator is up 1.15 to 13,835.77. The total After hours volume is currently 62,228,253 shares traded.
The following are the most active stocks for the after hours session:
agilon health, inc. (AGL) is unchanged at $22.61, with 2,560,508 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 $-0.09. As reported by Zacks, the current mean recommendation for AGL is in the "buy range".
Farfetch Limited (FTCH) is +0.8199 at $5.16, with 2,511,784 shares traded. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Apple Inc. (AAPL) is +0.1 at $175.15, with 2,434,749 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.17. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Motive Capital Corp II (MTVC) is +0.0001 at $10.51, with 1,875,000 shares traded.
ProShares UltraPro Short QQQ (SQQQ) is -0.02 at $25.36, with 1,610,530 shares traded., following a 52-week high recorded in today's regular session.
PagSeguro Digital Ltd. (PAGS) is unchanged at $12.44, with 1,581,799 shares traded. PAGS's current last sale is 88.86% of the target price of $14.
Target Global Acquisition I Corp. (TGAA) is -0.01 at $10.51, with 1,550,000 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is +0.08 at $337.35, with 1,541,427 shares traded., following a 52-week high recorded in today's regular session.
ProShares UltraPro QQQ (TQQQ) is +0.04 at $32.00, with 1,492,715 shares traded. This represents a 98.76% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is +0.07 at $122.90, with 1,486,963 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.33. , following a 52-week high recorded in today's regular session.
Pacific Gas & Electric Co. (PCG) is +0.04 at $16.60, with 1,410,724 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Wells Fargo & Company (WFC) is -0.05 at $40.16, with 1,289,509 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.1 at $175.15, with 2,434,749 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is +0.1 at $175.15, with 2,434,749 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is +0.1 at $175.15, with 2,434,749 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is +0.1 at $175.15, with 2,434,749 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 1.15 to 13,835.77.
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15782.0
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2023-05-18 00:00:00 UTC
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Apple restricts use of OpenAI's ChatGPT for employees -WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-restricts-use-of-openais-chatgpt-for-employees-wsj
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Adds details from report, OpenAI announcement
May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools for its employees as Apple develops similar technology, the Wall Street Journal reported on Thursday, citing a document and sources.
Apple is concerned about the leak of confidential data by employees who use the AI programs and has also advised its employees not to use Microsoft-owned <MSFT.O> GitHub's Copilot, used to automate the writing of software code, the report said.
Last month, OpenAI, the creator of ChatGPT, said it had introduced an "incognito mode" for ChatGPT that does not save users’ conversation history or use it to improve its artificial intelligence.
Scrutiny has been growing over how ChatGPT and other chatbots it inspired manage hundreds of millions of users’ data, commonly used to improve, or "train," AI.
Earlier Thursday, OpenAI introduced the ChatGPT app for Apple's iOS in the United States.
Apple, OpenAI and Microsoft did not respond to Reuters request for comment.
(Reporting by Urvi Dugar in Bengaluru; Editing by Leslie Adler)
((UrviManoj.Dugar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report, OpenAI announcement May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools for its employees as Apple develops similar technology, the Wall Street Journal reported on Thursday, citing a document and sources. Scrutiny has been growing over how ChatGPT and other chatbots it inspired manage hundreds of millions of users’ data, commonly used to improve, or "train," AI. Earlier Thursday, OpenAI introduced the ChatGPT app for Apple's iOS in the United States.
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Adds details from report, OpenAI announcement May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools for its employees as Apple develops similar technology, the Wall Street Journal reported on Thursday, citing a document and sources. Last month, OpenAI, the creator of ChatGPT, said it had introduced an "incognito mode" for ChatGPT that does not save users’ conversation history or use it to improve its artificial intelligence. Earlier Thursday, OpenAI introduced the ChatGPT app for Apple's iOS in the United States.
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Adds details from report, OpenAI announcement May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools for its employees as Apple develops similar technology, the Wall Street Journal reported on Thursday, citing a document and sources. Apple is concerned about the leak of confidential data by employees who use the AI programs and has also advised its employees not to use Microsoft-owned <MSFT.O> GitHub's Copilot, used to automate the writing of software code, the report said. Last month, OpenAI, the creator of ChatGPT, said it had introduced an "incognito mode" for ChatGPT that does not save users’ conversation history or use it to improve its artificial intelligence.
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Adds details from report, OpenAI announcement May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools for its employees as Apple develops similar technology, the Wall Street Journal reported on Thursday, citing a document and sources. Apple is concerned about the leak of confidential data by employees who use the AI programs and has also advised its employees not to use Microsoft-owned <MSFT.O> GitHub's Copilot, used to automate the writing of software code, the report said. Last month, OpenAI, the creator of ChatGPT, said it had introduced an "incognito mode" for ChatGPT that does not save users’ conversation history or use it to improve its artificial intelligence.
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15783.0
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2023-05-18 00:00:00 UTC
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TikTok users file lawsuit to block Montana ban
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AAPL
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https://www.nasdaq.com/articles/tiktok-users-file-lawsuit-to-block-montana-ban-0
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By David Shepardson
WASHINGTON, May 18 (Reuters) - Five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana late Wednesday seeking to block the state's new ban on the Chinese-owned platform.
Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state, effective Jan. 1. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within the state.
The video app is used by more than 150 million Americans.
The lawsuit names Montana Attorney General Austin Knudsen. The TikTok users argue the state seeks to "exercise powers over national security that Montana does not have and to ban speech Montana may not suppress." The suit adds users believe the law violates their First Amendment rights.
Knudsen did not immediately comment.
"Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes," the lawsuit said.
The suit is assigned to Judge Donald Molloy, who was nominated to the bench by President Bill Clinton, a Democrat, in 1995.
TikTok, owned by Chinese tech company ByteDance, said Montana's ban "infringes on the First Amendment rights of the people of Montana by unlawfully banning TikTok," and said it will "continue working to defend the rights of our users inside and outside of Montana."
TikTok has faced growing calls from U.S. lawmakers and state officials to ban the app nationwide over concerns about potential Chinese government influence over the platform.
Gianforte, a Republican, said the bill will further "our shared priority to protect Montanans from Chinese Communist Party surveillance."
TikTok has repeatedly denied that it has ever shared data with the Chinese government and has said the company would not do so if asked.
Montana, which has a population of just over 1 million people, said TikTok could face fines for each violation and additional fines of $10,000 per day if it violates the ban.
The American Civil Liberties Union (ACLU) slammed the law as "unconstitutional."
An attempt by former President Donald Trump to ban new downloads of TikTok and WeChat through a Commerce Department order in 2020 was blocked by multiple courts and never took effect.
(Reporting by David Shepardson; Editing by Leslie Adler and Anna Driver)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and 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 five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within the state. By David Shepardson WASHINGTON, May 18 (Reuters) - Five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana late Wednesday seeking to block the state's new ban on the Chinese-owned platform. TikTok has faced growing calls from U.S. lawmakers and state officials to ban the app nationwide over concerns about potential Chinese government influence over the platform.
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The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within the state. By David Shepardson WASHINGTON, May 18 (Reuters) - Five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana late Wednesday seeking to block the state's new ban on the Chinese-owned platform. TikTok, owned by Chinese tech company ByteDance, said Montana's ban "infringes on the First Amendment rights of the people of Montana by unlawfully banning TikTok," and said it will "continue working to defend the rights of our users inside and outside of Montana."
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The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within the state. By David Shepardson WASHINGTON, May 18 (Reuters) - Five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana late Wednesday seeking to block the state's new ban on the Chinese-owned platform. The TikTok users argue the state seeks to "exercise powers over national security that Montana does not have and to ban speech Montana may not suppress."
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The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's GOOGL.O Google and Apple Inc AAPL.O to offer TikTok within the state. By David Shepardson WASHINGTON, May 18 (Reuters) - Five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana late Wednesday seeking to block the state's new ban on the Chinese-owned platform. "Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes," the lawsuit said.
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2023-05-18 00:00:00 UTC
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Apple restricts use of ChatGPT - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-restricts-use-of-chatgpt-wsj
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nan
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May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools as it develops its own similar technology, the Wall Street Journal reported on Thursday.
(Reporting by Urvi Dugar in Bengaluru)
((UrviManoj.Dugar@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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May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools as it develops its own similar technology, the Wall Street Journal reported on Thursday. (Reporting by Urvi Dugar in Bengaluru) ((UrviManoj.Dugar@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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May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools as it develops its own similar technology, the Wall Street Journal reported on Thursday. (Reporting by Urvi Dugar in Bengaluru) ((UrviManoj.Dugar@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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May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools as it develops its own similar technology, the Wall Street Journal reported on Thursday. (Reporting by Urvi Dugar in Bengaluru) ((UrviManoj.Dugar@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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May 18 (Reuters) - Apple Inc AAPL.O has restricted the use of ChatGPT and other external artificial intelligence tools as it develops its own similar technology, the Wall Street Journal reported on Thursday. (Reporting by Urvi Dugar in Bengaluru) ((UrviManoj.Dugar@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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15785.0
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2023-05-18 00:00:00 UTC
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Tech ETFs Roaring to New 52-Week Highs
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AAPL
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https://www.nasdaq.com/articles/tech-etfs-roaring-to-new-52-week-highs
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The hot run for the technology sector is back and dominating the stock market rally once again. The combination of easing inflation, upbeat corporate earnings, the regional bank crisis and the adoption of new-era technologies have been driving the sector higher.
The rally has pushed many stocks and ETFs to new highs. The ultra-popular tech ETFs are at their new highs and have gained more than 20% so far this year. These include iShares U.S. Technology ETF IYW, SPDR NYSE Technology ETF XNTK, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT and Fidelity MSCI Information Technology Index ETF FTEC. Each of these funds has a Zacks ETF Rank #2 (Buy), suggesting their continued outperformance.
Solid Fundamentals
Most of the surge was driven by better-than-feared results from some of the world's largest companies. The five biggest tech players — Microsoft MSFT, Amazon AMZN, Meta Platforms META Alphabet GOOGL and Apple AAPL — came up with strong results, spreading huge optimism into the sector (read: ETFs to Bet on Mega-Cap Tech Stocks).
Total Q1 earnings for 84.2% of the sector’s market cap are down 13.1% on 3.4% lower revenues, with 82% beating EPS estimates and 83.6% beating revenue estimates. The growth rates and beat percentages align with the decelerating trend seen since last year but have shown modest improvement from the preceding period.
Additionally, the sector was powered by investors’ flight to mega-cap, cash-rich technology stocks amid the regional bank crisis and the rising risk of a recession. The mega-cap tech stocks have strong balance sheets, durable revenue streams and robust profit margins and are, thus, better positioned to withstand a possible economic downturn.
The slowdown in inflation has bolstered the appeal for tech stocks. The latest sign of cooling inflation has spurred expectations of easier monetary policy from the Federal Reserve. Bets are rife that the central bank will put a pause on further rate hikes in the June meeting. The move will be positive for technology stocks. 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.
Moreover, the sector outlook remains solid given the global digital shift that has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication, blockchain and 5G technology should drive the sector higher (read: Fintech ETFs: Unleashing the Future of Finance).
Let’s dig into the details of the above-mentioned ETFs:
iShares U.S. Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, gives investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. Software & services, tech hardware & equipment, semiconductors & semiconductor equipment, and media & entertainment are the top four sectors with double-digit exposure each.
iShares Dow Jones US Technology ETF has AUM of $10.8 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 643,000 shares a day.
SPDR NYSE Technology ETF (XNTK)
SPDR NYSE Technology ETF provides exposure to 35 leading U.S.-listed technology-related companies by tracking the NYSE Technology Index. Semiconductors take the largest share at 25.5%, while systems software, application software, semiconductor equipment, and interactive media & services round off the next.
SPDR NYSE Technology ETF has amassed $437.9 million and charges 35 bps in annual fees. It trades in an average daily volume of 7,000 shares.
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund follows the Technology Select Sector Index and holds about 64 securities in its basket. It has key holdings in software, technology hardware, storage & peripherals, and semiconductors & semiconductor equipment (read: Insights Into 13F Filings: ETFs to Bet Like Billionaires).
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $43.6 billion and an average daily volume of 7 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $47 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. 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 503,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 361 technology stocks, with AUM of $6 billion. It follows the MSCI USA IMI Information Technology Index.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 214,000 shares a day.
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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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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
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The five biggest tech players — Microsoft MSFT, Amazon AMZN, Meta Platforms META Alphabet GOOGL and Apple AAPL — came up with strong results, spreading huge optimism into the sector (read: ETFs to Bet on Mega-Cap Tech Stocks). 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report 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 SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the sector was powered by investors’ flight to mega-cap, cash-rich technology stocks amid the regional bank crisis and the rising risk of a recession.
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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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report 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 SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The five biggest tech players — Microsoft MSFT, Amazon AMZN, Meta Platforms META Alphabet GOOGL and Apple AAPL — came up with strong results, spreading huge optimism into the sector (read: ETFs to Bet on Mega-Cap Tech Stocks). These include iShares U.S. Technology ETF IYW, SPDR NYSE Technology ETF XNTK, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT and Fidelity MSCI Information Technology Index ETF FTEC.
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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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report 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 SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The five biggest tech players — Microsoft MSFT, Amazon AMZN, Meta Platforms META Alphabet GOOGL and Apple AAPL — came up with strong results, spreading huge optimism into the sector (read: ETFs to Bet on Mega-Cap Tech Stocks). These include iShares U.S. Technology ETF IYW, SPDR NYSE Technology ETF XNTK, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT and Fidelity MSCI Information Technology Index ETF FTEC.
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The five biggest tech players — Microsoft MSFT, Amazon AMZN, Meta Platforms META Alphabet GOOGL and Apple AAPL — came up with strong results, spreading huge optimism into the sector (read: ETFs to Bet on Mega-Cap Tech Stocks). 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report 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 SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. These include iShares U.S. Technology ETF IYW, SPDR NYSE Technology ETF XNTK, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT and Fidelity MSCI Information Technology Index ETF FTEC.
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2023-05-18 00:00:00 UTC
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Invest in Nvidia Stock with These 5 ETFs
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AAPL
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https://www.nasdaq.com/articles/invest-in-nvidia-stock-with-these-5-etfs
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Perhaps no stock has captured the market’s imagination this year more than semiconductor giant Nvidia (NASDAQ:NVDA). After a challenging 2022, the stock that many perceive as the leader in artificial intelligence (AI) technology is off to a gain of over 120% so far this year, and it's only May.
As the world’s sixth-largest company by market cap, Nvidia is owned by many ETFs, particularly AI, tech, and semiconductor-focused ones, and these ETFs have also performed well.
This article will highlight five ETFs that have large positions in Nvidia, and these could be solid options for investors looking to gain exposure to the stock using ETFs. The upside of investing through an ETF is that investors can also gain exposure to Nvidia's peers and competitors that offer exposure to the same themes, like the rise of AI and the long-term growth of semiconductor demand.
Superinvestors are Flocking to Nvidia
Before delving into the ETFs, let’s take a brief look at the rise of Nvidia itself. The stock boasts an enviable Smart Score of 9 out of 10. The Smart Score is TipRanks’ proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The result is data-driven and does not require any human intervention. A Smart Score of 8 or above is the equivalent of an Outperform rating.
Nvidia has surged this year on the back of excitement about its AI opportunity, but that hasn’t stopped some of the world’s top investors from piling in. According to recent filings, David Tepper of Appaloosa Management, Lee Ainslie’s Maverick Capital, and Chase Coleman’s Tiger Global all initiated new positions in Nvidia during the first quarter of 2023.
Stanley Druckenmiller, who reportedly generated annual returns of 30% for his investors for many years at Duquesne Capital and famously helped George Soros "break" the Bank of England by shorting the pound, also started a position in the company.
Druckenmiller’s involvement is interesting because he is currently less enthusiastic about the market in general. The legendary hedge fund manager believes we are in for a “hard landing.” Therefore, you would likely expect an investor like Druckenmiller to avoid a name like Nvidia that trades at over 60 times forward earnings, but Druckenmiller apparently isn’t dissuaded by Nvidia’s steep valuation multiple or the possibility of a looming recession.
Druckenmiller’s family office bought shares of AI leaders like Nvidia and Microsoft (NASDAQ:MSFT) during the first quarter, putting $220 million into Nvidia. In a recent discussion at the Sohn Conference, he said that he thinks AI is “very real” and that “it could be as impactful as the internet.” He also said that these stocks will present great opportunities coming out of a hard landing. Druckenmiller says that even in the event of a recession, he doesn’t think Nvidia’s stock price will necessarily go down, even given the high valuation multiple.
These top investors appear unfazed by Nvidia’s valuation and its strong year-to-date performance. Therefore, here are five different ways to invest in Nvidia using ETFs.
1. iShares Semiconductor ETF (NASDAQ:SOXX)
One simple and effective way to invest in Nvidia is through the SOXX ETF from iShares. Nvidia is the 800-pound gorilla in the chip space right now, so it is the top holding for this chip-focused ETF, with a weighting of 9.9%. Check out an overview of SOXX’s top 10 holdings below, using TipRanks’ Holdings tool.
A benefit of investing in SOXX is that in addition to this exposure to Nvidia, you also get plenty of exposure to Nvidia's competitor, Advanced Micro Devices (NASDAQ:AMD), which is making its own inroads into AI.
SOXX has a reasonable expense ratio of 0.35%, and it has been a strong performer in recent years, outperforming the S&P 500 and the Nasdaq 100 with an annualized return of 30.7% over the past three years (as of the end of the first quarter).
SOXX has a weighted average P/E ratio of 20.1, meaning that it trades at a slight discount to the broader market (which trades at around 24x earnings). Note that SOXX also has a strong ETF Smart Score of 8 out of 10. With low fees, a reasonable valuation, a strong performance track record, and a large position in Nvidia, SOXX looks like an ideal choice for ETF investors who want to invest in Nvidia.
2. VanEck Semiconductor ETF (NASDAQ:SMH)
Staying in the world of major semiconductor ETFs, VanEck's $7.5 billion SMH ETF also has Nvidia as its largest holding. In fact, it has even more exposure to Nvidia than SOXX does, with a 15.1% weighting. You can gain an overview of SMH's top 10 holdings using the chart below.
As is the case with SOXX, SMH also gives you plenty of exposure to AMD as well as to semiconductor fabricators like Taiwan Semiconductor (NYSE:TSM) and equipment maker Lam Research (NASDAQ:LRCX), which are crucial semiconductor companies.
SMH has the exact same expense ratio as SOXX (0.35%), and that's likely no accident, as they are competing for the same types of investment dollars. SMH's weighted average P/E ratio is a bit higher than SOXX's at 22.8, and while its three-year return of 23.7% lags SOXX's spectacular 30.9% return over the same time frame, this is still an excellent return.
With a similarly modest fee, solid track record, reasonable valuation, and large weighting towards Nvidia, SMH looks like another great choice for investors looking for Nvidia exposure.
3. Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ)
While SOXX makes Nvidia its top holding due to its semiconductor investment universe, BOTZ is an AI-focused ETF from Global X that features Nvidia as its second-largest holding, with a 9.4% weighting. Nvidia trails only Intuitive Surgical (NASDAQ:ISRG), which has a 10.05% weighting. See below for an overview of BOTZ’s top holdings.
In addition to Nvidia and Intuitive Surgical, BOTZ owns quite a few international stocks that are involved in AI, robotics, and automation that may not be familiar to most investors.
BOTZ is off to a nice 25.2% year-to-date gain. However, its three-year annualized return of 6.6% and its five-year annualized return of 2.0% lag those of SOXX, SMH, and the broader market. BOTZ also has an expense ratio that is nearly twice as high as SOXX’s, at 0.69%. Lastly, BOTZ’s weighted average P/E ratio is higher than SOXX’s or SMH's at 38.7 times earnings.
BOTZ stock has performed well this year, and it gives investors undiluted exposure to a lot of under-the-radar AI names. However, based on the aforementioned factors, SOXX and SMH appear to be better choices when it comes to Nvidia-related ETFs.
4. Technology Select Sector SPDR Fund (NYSEARCA:XLK)
Thanks to the fact that Nvidia’s climb has made it one of the world’s largest and most valuable companies, you don’t really have to get too fancy to invest in it using ETFs. This large, tech-centric ETF from State Street with $43.6 billion in assets under management (AUM) is broader in its focus than SOXX or BOTZ, but it still features Nvidia fairly heavily. Nvidia is XLK’s third-largest holding, with a weighting of 4.7%. You’ll find an overview of XLK’s top holdings below.
One thing to note is that while Nvidia is the third-largest position in XLK, it’s dwarfed by the likes of Microsoft and Apple (NASDAQ:AAPL), which have much larger weightings.
XLK has a very favorable expense ratio of just 0.10%. It also has a rock-solid performance track record, providing investors with annualized total returns of 19.2% over the past three years, 19.5% over the past five years, and 18.9% over the past decade (as of the end of the most recent quarter).
While XLK doesn’t have the largest Nvidia weighting on this list, it’s likely a good way to get exposure to the tech sector as a whole, and it’s hard to argue with its long track record of performance.
5. Invesco QQQ Trust (NASDAQ:QQQ)
Last but not least, QQQ is a massive ETF with nearly $175 billion in AUM that invests in the Nasdaq 100. Because Nvidia is a major component of the Nasdaq 100, QQQ has a sizable Nvidia position of 5.5%.
QQQ is similar to XLK in that it holds larger positions in Microsoft and Apple, although they don’t dominate the fund to quite the same extent as they do in XLK, with weightings of 13.3% and 12.5%, respectively.
In the table above, you’ll notice that QQQ’s top holdings have strong Smart Scores -- nine of the top 10 holdings have Smart Scores of 8 or better.
If you are interested in Nvidia for the AI angle, QQQ should appeal to you, as it also holds large positions in other AI leaders like Microsoft, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META).
QQQ offers a modest expense ratio of 0.2%, and it has provided its investors with great returns over the years, posting annualized returns of 19.8% over the past three years, 15.7% over the past five, and 17.7% over the past 10.
For investors looking for Nvidia and a host of other AI leaders, this looks like a solid choice to go with.
Investor Takeaway
Nvidia has captured the attention of retail investors and renowned hedge fund managers alike, taking the market by storm with a gain of over 120% in 2023 so far.
For ETF investors interested in gaining exposure to this powerhouse, the five ETFs above offer different avenues for doing this. Of the five, my top choices would be SOXX or SMH. This is because of their large positions in Nvidia and the fact that Nvidia isn't overshadowed by much larger positions in Microsoft or Apple, as is the case with XLK and, to a lesser extent, QQQ.
I also like SOXX’s and SMH's performance track record, modest fees, valuations, and exposure to other semiconductor companies that could play a role in the AI revolution. SOXX has a slight edge over SMH in most of these categories, making it the winner by a narrow margin, but at the end of the day, both appear to be solid choices for investors looking to add Nvidia to their portfolios.
While SOXX looks like the top choice, XLK or QQQ are attractive based on their broad exposure to tech and other AI leaders in addition to Nvidia, their low fees, and their proven long-term track records. Of the two, I give a slight edge to QQQ just because it isn’t as beholden to just two names (Microsoft and Apple) as XLK is.
BOTZ is not a bad ETF, and it holds a host of interesting AI-related names that are hard to find elsewhere, but given its higher fees and less impressive long-term track record (compared to the other names), this would be my last pick of the five ETFs discussed here.
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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One thing to note is that while Nvidia is the third-largest position in XLK, it’s dwarfed by the likes of Microsoft and Apple (NASDAQ:AAPL), which have much larger weightings. Stanley Druckenmiller, who reportedly generated annual returns of 30% for his investors for many years at Duquesne Capital and famously helped George Soros "break" the Bank of England by shorting the pound, also started a position in the company. Technology Select Sector SPDR Fund (NYSEARCA:XLK) Thanks to the fact that Nvidia’s climb has made it one of the world’s largest and most valuable companies, you don’t really have to get too fancy to invest in it using ETFs.
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One thing to note is that while Nvidia is the third-largest position in XLK, it’s dwarfed by the likes of Microsoft and Apple (NASDAQ:AAPL), which have much larger weightings. VanEck Semiconductor ETF (NASDAQ:SMH) Staying in the world of major semiconductor ETFs, VanEck's $7.5 billion SMH ETF also has Nvidia as its largest holding. With a similarly modest fee, solid track record, reasonable valuation, and large weighting towards Nvidia, SMH looks like another great choice for investors looking for Nvidia exposure.
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One thing to note is that while Nvidia is the third-largest position in XLK, it’s dwarfed by the likes of Microsoft and Apple (NASDAQ:AAPL), which have much larger weightings. With low fees, a reasonable valuation, a strong performance track record, and a large position in Nvidia, SOXX looks like an ideal choice for ETF investors who want to invest in Nvidia. VanEck Semiconductor ETF (NASDAQ:SMH) Staying in the world of major semiconductor ETFs, VanEck's $7.5 billion SMH ETF also has Nvidia as its largest holding.
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One thing to note is that while Nvidia is the third-largest position in XLK, it’s dwarfed by the likes of Microsoft and Apple (NASDAQ:AAPL), which have much larger weightings. SOXX has a reasonable expense ratio of 0.35%, and it has been a strong performer in recent years, outperforming the S&P 500 and the Nasdaq 100 with an annualized return of 30.7% over the past three years (as of the end of the first quarter). Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) While SOXX makes Nvidia its top holding due to its semiconductor investment universe, BOTZ is an AI-focused ETF from Global X that features Nvidia as its second-largest holding, with a 9.4% weighting.
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2023-05-18 00:00:00 UTC
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TikTok users file lawsuit to block Montana ban
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AAPL
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https://www.nasdaq.com/articles/tiktok-users-file-lawsuit-to-block-montana-ban
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WASHINGTON, May 18 (Reuters) - A group of five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana on Thursday seeking to block the state's new ban on the Chinese-owned platform.
Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state, effective Jan. 1. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's Google and Apple Inc to offer TikTok within the state. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) Keywords: USA TIKTOK/MONTANA (URGENT)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, May 18 (Reuters) - A group of five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana on Thursday seeking to block the state's new ban on the Chinese-owned platform. Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state, effective Jan. 1. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's Google and Apple Inc to offer TikTok within the state.
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WASHINGTON, May 18 (Reuters) - A group of five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana on Thursday seeking to block the state's new ban on the Chinese-owned platform. Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state, effective Jan. 1. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's Google and Apple Inc to offer TikTok within the state.
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WASHINGTON, May 18 (Reuters) - A group of five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana on Thursday seeking to block the state's new ban on the Chinese-owned platform. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's Google and Apple Inc to offer TikTok within the state. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) Keywords: USA TIKTOK/MONTANA (URGENT) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, May 18 (Reuters) - A group of five TikTok users, who also create content posted on the short-video app, filed suit in U.S. District Court in Montana on Thursday seeking to block the state's new ban on the Chinese-owned platform. Montana Governor Greg Gianforte on Wednesday signed legislation to ban TikTok in the state, effective Jan. 1. The five users seek to block the law, which makes it unlawful for the app stores of Alphabet Inc's Google and Apple Inc to offer TikTok within the state.
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15788.0
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2023-05-18 00:00:00 UTC
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87 Billion Reasons to Buy Apple Stock Hand Over Fist Right Now
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AAPL
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https://www.nasdaq.com/articles/87-billion-reasons-to-buy-apple-stock-hand-over-fist-right-now
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Apple (NASDAQ: AAPL) has been witnessing resilient demand for its iPhones even though the overall smartphone market is in the soup, as was evident from the company's results for its fiscal 2023 second quarter (ended April 1), which were released on May 4. But there's one niche of the smartphone market the tech giant has yet to tap.
The Cupertino-based company is now the only smartphone original equipment manufacturer (OEM) that's yet to launch a foldable smartphone. This space is currently dominated by Samsung, which is followed by Chinese OEM Huawei. Other Chinese smartphone companies such as Oppo and Vivo also have a presence in the foldable smartphone market.
And now, Alphabet has joined the foldable smartphone bandwagon with the Pixel Fold. So, is Apple's absence from this market a missed opportunity? Let's find out.
The foldable smartphone market could be huge
Market research firm IDC estimates that 14.2 million foldable smartphones were shipped in 2022. That's a small number considering a total of 1.2 billion smartphones were shipped last year, which puts the share of foldable devices at just 1.2%.
IDC forecasts that foldable smartphone shipments could grow at an annual rate of almost 28% over the next five years. By 2027, annual shipments could hit 48 million units, generating $42 billion in annual revenue. This puts the average selling price (ASP) of each foldable smartphone at $875. For comparison, IDC expects the overall smartphone market's ASP to land at $376 in 2027.
It is also worth noting that foldable smartphone shipments are increasing at a difficult time. IDC is expecting a 1.1% drop in smartphone shipments this year, but it expects shipments of foldable smartphones to jump an impressive 50%. When coupled with the higher prices that these devices command, it is easy to see that Apple is missing out on a potentially lucrative opportunity to grow its iPhone revenue.
Apple is late to the game
Samsung is the runaway leader in foldable smartphones with a massive share of 80% in 2022. The South Korean giant is making the most of the absence of its archrival in this niche, but a survey by Counterpoint Research indicates that customers are eagerly waiting for Apple to launch a foldable iPhone.
A consumer study conducted by the market research firm in the U.S. recently revealed that Samsung is the most preferred foldable smartphone brand in the country, with 46% of the respondents opting for the Korean company. Apple, which doesn't have a foldable smartphone yet, wasn't far off as 39% of the respondents chose it as their preferred foldable smartphone brand.
This suggests that if Apple were to launch a foldable smartphone today, it may be able to win a nice share of this fast-growing smartphone segment. The good part is that the company could be working on a foldable iPhone. The company has been filing patents for a foldable device, with a recent application suggesting that the foldable iPhone could fold itself automatically in the event of a fall to protect the screens.
Meanwhile, the rumor mill also suggests that Apple could indeed be working on a foldable smartphone, and it could launch the device by 2025. Apple doesn't comment on products under development, but it won't be surprising to see the company indeed release a foldable device in the foreseeable future given the huge revenue opportunity in this space.
The good part is that even if Apple is late to the foldable smartphone game, it shouldn't be a cause for concern. That's because even in 2027, foldable smartphones would account for only a 3.5% share of the overall smartphone market. So, Apple still has time to perfect its rumored foldable iPhone.
And once such a device does hit the market, it won't be surprising to see it become a big hit for a few simple reasons.
Why a foldable iPhone could become a hit
Foldable smartphones carry a much higher ASP as compared to traditional form factors. The Google Pixel Fold, for instance, is priced at $1,799. The Samsung Galaxy Z Fold 4 carries a similar price tag. Given that Apple enjoys terrific pricing power in the smartphone market with the ASP of each iPhone at almost $1,000, it won't be surprising to see consumers willing to pay a premium for a foldable smartphone from the company.
With the global foldable smartphone market expected to generate $174 billion in revenue by 2031, Apple could give its top line a significant boost if it enters this market. The company captured 50% of the global smartphone market's revenue in the first quarter of 2023 thanks to its high ASP and stable shipments. It is worth noting that Apple cornered such a big chunk of smartphone revenue last quarter despite accounting for just 21% of shipments.
A foldable iPhone could give Apple the opportunity to further increase its ASP and boost its smartphone revenue share. If the company corners half of the foldable smartphone market's revenue in 2031, it could add $87 billion to its top line based on the estimates above. Apple sold $205 billion worth of iPhones last year, indicating that a foldable device could substantially increase the revenue of Apple's biggest product line and help this tech stock become a big winner in the long run.
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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 (NASDAQ: AAPL) has been witnessing resilient demand for its iPhones even though the overall smartphone market is in the soup, as was evident from the company's results for its fiscal 2023 second quarter (ended April 1), which were released on May 4. The South Korean giant is making the most of the absence of its archrival in this niche, but a survey by Counterpoint Research indicates that customers are eagerly waiting for Apple to launch a foldable iPhone. A consumer study conducted by the market research firm in the U.S. recently revealed that Samsung is the most preferred foldable smartphone brand in the country, with 46% of the respondents opting for the Korean company.
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Apple (NASDAQ: AAPL) has been witnessing resilient demand for its iPhones even though the overall smartphone market is in the soup, as was evident from the company's results for its fiscal 2023 second quarter (ended April 1), which were released on May 4. The foldable smartphone market could be huge Market research firm IDC estimates that 14.2 million foldable smartphones were shipped in 2022. With the global foldable smartphone market expected to generate $174 billion in revenue by 2031, Apple could give its top line a significant boost if it enters this market.
|
Apple (NASDAQ: AAPL) has been witnessing resilient demand for its iPhones even though the overall smartphone market is in the soup, as was evident from the company's results for its fiscal 2023 second quarter (ended April 1), which were released on May 4. The foldable smartphone market could be huge Market research firm IDC estimates that 14.2 million foldable smartphones were shipped in 2022. Apple, which doesn't have a foldable smartphone yet, wasn't far off as 39% of the respondents chose it as their preferred foldable smartphone brand.
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Apple (NASDAQ: AAPL) has been witnessing resilient demand for its iPhones even though the overall smartphone market is in the soup, as was evident from the company's results for its fiscal 2023 second quarter (ended April 1), which were released on May 4. Meanwhile, the rumor mill also suggests that Apple could indeed be working on a foldable smartphone, and it could launch the device by 2025. Apple doesn't comment on products under development, but it won't be surprising to see the company indeed release a foldable device in the foreseeable future given the huge revenue opportunity in this space.
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2023-05-18 00:00:00 UTC
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ANALYSIS-Elon Musk's embrace of advertising at Tesla grabs marketers' attention
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https://www.nasdaq.com/articles/analysis-elon-musks-embrace-of-advertising-at-tesla-grabs-marketers-attention-0
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By Akash Sriram and Hyunjoo Jin
May 17 (Reuters) - With Elon Musk outlining plans for Tesla Inc TSLA.O to use traditional advertising for the first time, viewers might see the electric-vehicle maker's Model Y crossover or upcoming Cybertruck pickup - maybe even the billionaire CEO himself - on TV or online.
Musk revealed those plans on Tuesday at the company's annual meeting, an about-face for the celebrity executive who recently acquired social media platform Twitter. He has for years eschewed advertising in favor of seeking to capitalize on his star power and customer enthusiasm for Tesla's vehicles.
"We'll try out a little advertising and see how it goes," he told investors in Austin, Texas.
Tesla shares closed 4.4% higher on Wednesday.
Musk said Tesla is he foresees over the next year. The EV maker's tweaking of prices in its major markets is a symptom of a company that no longer can take ever-higher levels of demand for granted in the face of growing competition.
Whatever advertising path Musk chooses, ad agency executives and investors expect a unique and irreverent take that will clearly communicate Tesla's advantages, including its technology.
"Tesla has not been like every other car company, and he's not going to start now, so expect breakthrough creative that speaks to Tesla's disruptive technology and personality," said Tal Jacobson, incoming CEO at advertising technology company Perion Network PERI.TA.
"His ability to use the media to amplify his brand and his company's brands is an art form," Jacobson said of Musk.
Musk, who could not be reached for comment, told CNBC on Tuesday that he envisioned advertising that emphasized the features, safety and affordability of Tesla vehicles. A Tesla spokesperson declined to add anything beyond Musk's comments.
Musk told CNBC he did not yet have a "fully formed strategy" for Tesla advertising. He said it should be "informative about a product" and "aesthetically pleasing." He added: "It should have some artistic element to it. And it should be something that you don't regret watching after it's done."
While Tesla disseminates information about its vehicles via its Twitter account, Musk told CNBC that approach is "preaching to the converted and not reaching people that are not already convinced."
Last year, Musk touted the company's "$1 (trillion) valuation with $0 advertising spend" on Twitter.
FUTURISTIC ADS?
Some industry officials mused on whether Musk might attempt a memorable TV ad, perhaps akin to the famous "1984" commercial for Apple Inc's AAPL.O Macintosh computer which was directed by Ridley Scott and aired only during the Super Bowl. Many say that commercial, inspired by George Orwell's dystopian novel of the same name, paved the way for big-budget TV commercials.
"I don't think Musk would spend elaborately on a brand mosaic like Apple did, but ... minimalistic while futuristic is the approach I'd see him taking," said Bob Gruters, chief revenue officer at streaming platform Loop Media LPTV.A.
Some wonder whether Musk may feature himself in the ads, although that may carry risk as the executive can be polarizing.
"Is he an effective ambassador? My guess is that there is a less polarizing, more motivating and compelling way to communicate the brand's benefits than using Musk as a spokesperson," said Kimberly Whitler, a professor at the University of Virginia's business school.
While Musk did not outline a marketing budget, Tesla would likely be perceived as a high-profile account for top advertising companies, said Vivek Astvansh, assistant professor of advertising at Indiana University's business school.
Officials with four of the world's top ad-buying firms - WPP WPP.L, Omnicom Group OMC.N, Publicis Groupe PUBP.PA and Dentsu Group 4324.T - could not immediately be reached for comment.
Tesla spent $151,947 on advertising in the U.S. in 2022, according to advertising intelligence firm Vivvix, which measured ads across places including TV, social media, Web banners and billboards. By comparison, Ford and Toyota Motor Corp 7203.T spent $370 million and $1.1 billion, respectively, while the brands of General Motors Co GM.N collectively spent a total of $1.35 billion on U.S. ads last year, Vivvix data showed.
GM last year spent $4 billion globally on advertising and promotions, while Ford Motor Co F.N spent $2.2 billion on advertising, according to U.S. regulatory filings.
TWITTER CONNECTION
Musk's "newfound passion for advertising," in the words of author and venture capitalist Claire Diaz-Ortiz, was not surprising given his takeover of Twitter last fall, she said. Diaz-Ortiz is a former Twitter manager who has written books about the social media company.
Last week, Musk named former NBCUniversal ad chief Linda Yaccarino as Twitter's new CEO.
"It is hard for Musk to own a social media company that requires advertising dollars to survive and then to dismiss, as head of a manufacturing company, the value of advertising," University of Virginia's Whitler said.
Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments, sees Musk's embrace of advertising as a positive. He expects the company to show how its products differ from its competitors'. "Obviously they're going to have to focus on what's good for the environment and also that it is a car of the future as opposed to your father's Oldsmobile," he said.
BREAKINGVIEWS-Tesla’s governance autopilot heads for disaster
Elon Musk says Tesla not immune to tough economy that he foresees
(Reporting Hyunjoo Jin in San Francisco and Akash Sriram in Bengaluru, Additional reporting by Yuvraj Malik and Aditya Soni in Bengaluru, Sheila Dang in Dallas and Victoria Waldersee in Berlin Writing by by Ben Klayman Editing by Matthew Lewis)
((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters Messaging: benjamin.klayman.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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Some industry officials mused on whether Musk might attempt a memorable TV ad, perhaps akin to the famous "1984" commercial for Apple Inc's AAPL.O Macintosh computer which was directed by Ridley Scott and aired only during the Super Bowl. By Akash Sriram and Hyunjoo Jin May 17 (Reuters) - With Elon Musk outlining plans for Tesla Inc TSLA.O to use traditional advertising for the first time, viewers might see the electric-vehicle maker's Model Y crossover or upcoming Cybertruck pickup - maybe even the billionaire CEO himself - on TV or online. "I don't think Musk would spend elaborately on a brand mosaic like Apple did, but ... minimalistic while futuristic is the approach I'd see him taking," said Bob Gruters, chief revenue officer at streaming platform Loop Media LPTV.A.
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Some industry officials mused on whether Musk might attempt a memorable TV ad, perhaps akin to the famous "1984" commercial for Apple Inc's AAPL.O Macintosh computer which was directed by Ridley Scott and aired only during the Super Bowl. By Akash Sriram and Hyunjoo Jin May 17 (Reuters) - With Elon Musk outlining plans for Tesla Inc TSLA.O to use traditional advertising for the first time, viewers might see the electric-vehicle maker's Model Y crossover or upcoming Cybertruck pickup - maybe even the billionaire CEO himself - on TV or online. While Tesla disseminates information about its vehicles via its Twitter account, Musk told CNBC that approach is "preaching to the converted and not reaching people that are not already convinced."
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Some industry officials mused on whether Musk might attempt a memorable TV ad, perhaps akin to the famous "1984" commercial for Apple Inc's AAPL.O Macintosh computer which was directed by Ridley Scott and aired only during the Super Bowl. "Tesla has not been like every other car company, and he's not going to start now, so expect breakthrough creative that speaks to Tesla's disruptive technology and personality," said Tal Jacobson, incoming CEO at advertising technology company Perion Network PERI.TA. While Musk did not outline a marketing budget, Tesla would likely be perceived as a high-profile account for top advertising companies, said Vivek Astvansh, assistant professor of advertising at Indiana University's business school.
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Some industry officials mused on whether Musk might attempt a memorable TV ad, perhaps akin to the famous "1984" commercial for Apple Inc's AAPL.O Macintosh computer which was directed by Ridley Scott and aired only during the Super Bowl. Musk, who could not be reached for comment, told CNBC on Tuesday that he envisioned advertising that emphasized the features, safety and affordability of Tesla vehicles. My guess is that there is a less polarizing, more motivating and compelling way to communicate the brand's benefits than using Musk as a spokesperson," said Kimberly Whitler, a professor at the University of Virginia's business school.
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2023-05-18 00:00:00 UTC
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Pre-Market Most Active for May 18, 2023 : BABA, ALIM, AAPL, VTRS, SQQQ, TQQQ, MRVL, PLTR, KO, GTES, TEVA, IONQ
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-18-2023-%3A-baba-alim-aapl-vtrs-sqqq-tqqq-mrvl-pltr-ko-gtes
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The NASDAQ 100 Pre-Market Indicator is up 21.59 to 13,610.85. The total Pre-Market volume is currently 32,816,759 shares traded.
The following are the most active stocks for the pre-market session:
Alibaba Group Holding Limited (BABA) is +4.49 at $93.25, with 4,064,561 shares traded. Smarter Analyst Reports: Alibaba to Reorganize E-commerce Businesses to Boost Growth — Report
Alimera Sciences, Inc. (ALIM) is +1.04 at $3.10, with 3,794,578 shares traded. As reported in the last short interest update the days to cover for ALIM is 7.382401; this calculation is based on the average trading volume of the stock.
Apple Inc. (AAPL) is -0.03 at $172.66, with 2,373,138 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.17. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Viatris Inc. (VTRS) is +0.05 at $9.35, with 2,035,424 shares traded. VTRS's current last sale is 69.26% of the target price of $13.5.
ProShares UltraPro Short QQQ (SQQQ) is -0.14 at $26.67, with 1,939,686 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro QQQ (TQQQ) is +0.17 at $30.50, with 1,811,926 shares traded. This represents a 89.44% increase from its 52 Week Low.
Marvell Technology, Inc. (MRVL) is -0.3 at $43.29, with 1,672,203 shares traded.MRVL is scheduled to provide an earnings report on 5/25/2023, for the fiscal quarter ending Apr2023. The consensus earnings per share forecast is 0.14 per share, which represents a 37 percent increase over the EPS one Year Ago
Palantir Technologies Inc. (PLTR) is +0.98 at $10.45, with 1,152,426 shares traded. PLTR's current last sale is 130.63% of the target price of $8.
Coca-Cola Company (The) (KO) is -0.05 at $63.17, with 863,358 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.72. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Gates Industrial Corporation plc (GTES) is -1.52 at $11.82, with 770,889 shares traded. GTES's current last sale is 77.51% of the target price of $15.25.
Teva Pharmaceutical Industries Limited (TEVA) is +0.26 at $8.39, with 760,023 shares traded. TEVA's current last sale is 83.9% of the target price of $10.
IonQ, Inc. (IONQ) is +0.86 at $8.85, with 744,360 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.03 at $172.66, with 2,373,138 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for ALIM is 7.382401; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.03 at $172.66, with 2,373,138 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 32,816,759 shares traded.
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Apple Inc. (AAPL) is -0.03 at $172.66, with 2,373,138 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 32,816,759 shares traded.
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Apple Inc. (AAPL) is -0.03 at $172.66, with 2,373,138 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session:
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15791.0
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2023-05-18 00:00:00 UTC
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3 Top Tech Stocks That Could Help Make You Richer by Retirement
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-that-could-help-make-you-richer-by-retirement-0
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nan
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nan
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There are some stocks you can buy that are almost guaranteed to grow over the long term thanks to the innovative nature of their businesses. The tech market is an excellent place to find such stocks, as the industry is in a near-constant state of development. As a result, investing in tech companies active in high-growth sectors can be an effective way to ensure you're well off by retirement.
In 2023, that means investing in companies pushing markets like virtual/augmented reality (VR/AR), artificial intelligence (AI), and cloud computing forward. These technologies are likely to affect the designs and innovation of countless devices going forward, suggesting their industries are nowhere near hitting their ceilings. Consequently, investing in the companies responsible for their future growth could offer substantial gains over the long term.
Here are three top stocks that could help make you rich by retirement.
1. Apple
Apple (NASDAQ: AAPL) shares have long been a haven for investors looking for a reliable long-term buy. The company's stock climbed about 269% in the last five years and over 1,000% in the last decade, offering consistent growth thanks to its priority on delivering quality products. The iPhone maker's strategy has attained immense brand loyalty from consumers, which boosted its ventures into new markets over the years.
As a result, Apple's expected launch of a new VR/AR headset has vast potential. According to a report from Bloomberg last month, the device will debut in June and use an iPad-like 3D interface to display a long list of features, such as gaming, fitness, sports, entertainment, reading, and more. Anticipation for the device is steadily growing, with Oculus VR (now owned by Meta) founder Palmer Luckey praising Apple's coming headset and calling it "so good" in a recent tweet.
The VR/AR market is currently dominated by tech giants Meta and Sony with their respective headsets. However, Apple's history of entering new markets and quickly rising to dominance could see it trounce the competition and lead the $31 billion industry in the coming years.
Alongside a history of consistent growth, Apple stock is an excellent option to boost your portfolio in time for retirement.
2. Advanced Micro Devices
As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) gives investors a chance to back several high-growth markets. The company's hardware powers platforms and devices across the tech industry, such as game consoles and cloud services. Meanwhile, the tech giant is making moves to grow its position in artificial intelligence.
AMD's data center chips have seen it partner with companies like Microsoft and Alphabet, powering their respective cloud platforms. According to Grand View Research, the cloud market hit $484 billion in 2022 and is projected to continue expanding at a compound annual growth rate of 14% through 2030. The sector's development is great news for AMD, which could see demand for its chips soar in the coming years. Additionally, a boom in AI is likely to boost the cloud market as more companies use the technology to enhance their platforms.
Moreover, Microsoft is reportedly helping AMD bolster its AI chip expansion in an effort to create an alternative to the current market leader, Nvidia. If true, the partnership could help AMD gain a larger share in the booming sector.
AMD's stock has soared around 700% since 2018 and more than 2,000% since 2013. Steady growth and the company's ability to supply its chips across multiple areas of tech make its stock a no-brainer buy for those looking for long-term gains.
3. Amazon
As a leader in e-commerce and the cloud market, Amazon is another attractive stock that has the potential to skyrocket over the next decade.
Amazon holds a leading 38% market share in e-commerce in the U.S., with the second-largest share going to Walmart with 6.3%. The company's position at the top of the industry is encouraging, considering the online retail sector is projected to hit $4 trillion this year. Meanwhile, e-commerce sales only made up about 15% of all retail purchases last year, indicating the market still has plenty of room for growth.
The e-commerce market and Amazon's related segments were hit hard last year amid an economic downturn. However, easing inflation suggests the challenges won't last forever, with the company's dominance likely to see it flourish in the long term.
Along with a leading market share in cloud computing with its platform Amazon Web Services, Amazon's stock is an attractive buy for those looking for a solid investment to hold over the next decade or beyond.
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 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) shares have long been a haven for investors looking for a reliable long-term buy. According to a report from Bloomberg last month, the device will debut in June and use an iPad-like 3D interface to display a long list of features, such as gaming, fitness, sports, entertainment, reading, and more. Anticipation for the device is steadily growing, with Oculus VR (now owned by Meta) founder Palmer Luckey praising Apple's coming headset and calling it "so good" in a recent tweet.
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Apple Apple (NASDAQ: AAPL) shares have long been a haven for investors looking for a reliable long-term buy. Advanced Micro Devices As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) gives investors a chance to back several high-growth markets. Along with a leading market share in cloud computing with its platform Amazon Web Services, Amazon's stock is an attractive buy for those looking for a solid investment to hold over the next decade or beyond.
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Apple Apple (NASDAQ: AAPL) shares have long been a haven for investors looking for a reliable long-term buy. Amazon As a leader in e-commerce and the cloud market, Amazon is another attractive stock that has the potential to skyrocket over the next decade. Along with a leading market share in cloud computing with its platform Amazon Web Services, Amazon's stock is an attractive buy for those looking for a solid investment to hold over the next decade or beyond.
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Apple Apple (NASDAQ: AAPL) shares have long been a haven for investors looking for a reliable long-term buy. The company's hardware powers platforms and devices across the tech industry, such as game consoles and cloud services. That's right -- they think these 10 stocks are even better buys.
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15792.0
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2023-05-18 00:00:00 UTC
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QQQ ETF: Is there More Room to Run?
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AAPL
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https://www.nasdaq.com/articles/qqq-etf%3A-is-there-more-room-to-run
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nan
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nan
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The Invesco QQQ Trust (QQQ) ETF (Exchange-Traded Fund) has advanced more than 24% so far in 2023, outperforming the 8% rise in the S&P 500 Index (SPX). Even after the solid year-to-date run, technical indicators reveal further upside.
QQQ tracks the Nasdaq-100 Index (NDX), providing investors exposure to many leading technology stocks. It comprises companies that are at the forefront of innovation and are focusing on attractive themes like cloud computing, augmented reality, mobile payments, streaming services, and electric vehicles.
The top three sectors that QQQ offers exposure to are tech, consumer discretionary, and healthcare, with the tech sector stocks accounting for nearly 66% of the ETF. Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are the top three holdings of QQQ.
It is interesting to note that QQQ has outperformed the S&P 500 Index in nine of the last 10 years. Furthermore, QQQ has a low expense ratio of 0.20%, which makes it an attractive ETF investment.
What do Technical Indicators Signal?
QQQ is a Buy based on TipRanks’ easy-to-understand summary signals that combine the moving averages and technical indicators into a single, summarized signal.
According to TipRanks’ Technical Analysis tool, the Invesco QQQ Trust ETF’s 50-Day EMA (exponential moving average) is 314.21, while its price is $331.12, making it a Buy. Further, QQQ’s shorter duration EMA (20-day) also signals a bullish trend.
Aside from technical indicators, analysts’ consensus also indicates further upside. As per 1,697 analysts providing ratings on QQQ's Holdings, the ETF is a Moderate Buy and the average price target of $365.90 implies 10.5% upside.
Further, of the 1,697 analysts offering recommendations on QQQ’s 102 holdings, 66.65% have a Buy rating, 29.4% have a Hold rating, and nearly 4% have a Sell rating.
Overall, QQQ is a Buy as per technical indicators and Wall Street analysts. Moreover, according to TipRanks’ Smart Score System, QQQ has a smart score of 8 out 10, which indicates that the ETF could outperform the broader market over the long term.
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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Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are the top three holdings of QQQ. It comprises companies that are at the forefront of innovation and are focusing on attractive themes like cloud computing, augmented reality, mobile payments, streaming services, and electric vehicles. According to TipRanks’ Technical Analysis tool, the Invesco QQQ Trust ETF’s 50-Day EMA (exponential moving average) is 314.21, while its price is $331.12, making it a Buy.
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Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are the top three holdings of QQQ. The Invesco QQQ Trust (QQQ) ETF (Exchange-Traded Fund) has advanced more than 24% so far in 2023, outperforming the 8% rise in the S&P 500 Index (SPX). According to TipRanks’ Technical Analysis tool, the Invesco QQQ Trust ETF’s 50-Day EMA (exponential moving average) is 314.21, while its price is $331.12, making it a Buy.
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Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are the top three holdings of QQQ. The Invesco QQQ Trust (QQQ) ETF (Exchange-Traded Fund) has advanced more than 24% so far in 2023, outperforming the 8% rise in the S&P 500 Index (SPX). QQQ is a Buy based on TipRanks’ easy-to-understand summary signals that combine the moving averages and technical indicators into a single, summarized signal.
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Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are the top three holdings of QQQ. What do Technical Indicators Signal? According to TipRanks’ Technical Analysis tool, the Invesco QQQ Trust ETF’s 50-Day EMA (exponential moving average) is 314.21, while its price is $331.12, making it a Buy.
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15793.0
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2023-05-18 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-37
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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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15794.0
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2023-05-18 00:00:00 UTC
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This Wall Street Billionaire Aggressively Sold 3 FAANG Stocks While Piling Into Another
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AAPL
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https://www.nasdaq.com/articles/this-wall-street-billionaire-aggressively-sold-3-faang-stocks-while-piling-into-another
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Between earnings season and a constant barrage of economic data releases, it's easy for investors to feel overwhelmed by the amount of information thrown their way. What you might not realize is that one of the most important information releases of the entire quarter occurred just a few days earlier.
No later than 45 days following the end of a quarter, money managers with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F provides a neat-and-tidy snapshot that investors can use to determine what stocks the brightest minds on Wall Street have been buying and selling. Monday, May 15, marked the deadline for asset managers to file their 13Fs for the first quarter.
Image source: Getty Images.
Amid this vast sea of 13Fs, the filing from billionaire money manager Jim Simons of Renaissance Technologies stands out. Simons is an active fund manager with $106 billion in assets under management and stakes in thousands of companies. But it's what he and his team were busy buying and selling during the first quarter that should catch investors' attention.
In spite of the FAANG stocks leading the broader market higher in 2023, billionaire Jim Simons has been an active seller in all but one component.
Billionaire Jim Simons couldn't hit the sell button fast enough with three FAANG stocks
When I say FAANG stocks, I'm talking about:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
The FAANGs are undisputed market share leaders within their respective industries, and they have an extensive history of outperforming the benchmark S&P 500 over long periods. It's why everyday and professional investors typically flock to the FAANGs. But this hasn't been the case with Simons' Renaissance Technologies.
During the first quarter, Renaissance completely exited its position in Alphabet by selling more than 4.21 million Class A shares (GOOGL) and around 588,000 Class C shares (GOOG). Additionally, Simons' fund sold 7.09 million shares of Apple (nearly its entire stake), and close to 2.35 million shares of Amazon.
AAPL PE Ratio data by YCharts.
Why sell stakes in these amazing businesses? One of the likeliest reasons has to do with the expanding valuations of these three FAANG stocks. On a trailing-12-month basis, Amazon, Apple, and Alphabet were commanding price-to-earnings (P/E) ratios of 263, 29, and 25, respectively, as of this past weekend. That's up considerably from where all three began the year. During a bear market, investors tend to pay more attention to valuation.
To add to this point, tech stocks are as pricey as they've ever been, relative to the S&P 500. Though tech stocks like Apple and Alphabet have led the way over the trailing decade, higher interest rates, coupled with high tech stock P/E ratios, suggest this outperformance may come to an end.
Lastly, the Federal Reserve is now modeling a mild recession into its outlook for later this year. Alphabet, Amazon, and Apple are all cyclical stocks at risk of seeing their sales slump if a recession materializes. Alphabet generates the bulk of its revenue from advertising; Amazon's biggest revenue generator is its e-commerce platform; and despite a big surge in services revenue, Apple still logs the majority of its sales from physical products, such as the iPhone.
Some combination of the above factors likely encouraged Jim Simons and his team to be aggressive sellers of these three FAANG stocks in the first quarter.
Image source: Getty Images.
The one FAANG stock Simons bought hand over fist in the first quarter
However, you'll note there are two other FAANGs I've yet to discuss: social media stock Meta Platforms and streaming services behemoth Netflix. During the first quarter, Renaissance modestly reduced its Meta stake by close to 78,700 shares, and it absolutely piled into Netflix by purchasing more than 624,000 shares.
The reasons Renaissance chose to buy shares of Netflix while selling stakes in the other four FAANGs probably has to do with some combination of profitability, cash flow, and innovation.
Netflix is dealing with plenty of competition in the streaming space from the likes of Walt Disney, Warner Bros. Discovery, and Paramount Global. However, these legacy media companies all share one thing in common: steep losses associated with their streaming segments. After focusing on subscriber growth, Disney, Warner Bros. Discovery, and Paramount all need to turn their attention to streaming profitability. Meanwhile, Netflix has been profitable on a recurring basis for more than a decade.
Netflix has also shown improvements in its cash flow. Following years of cash outflows tied to its international expansion, Netflix logged more than $2.1 billion in free cash flow (FCF) in the first quarter and upped its full-year forecast to at least $3.5 billion in FCF.
There's also Netflix's innovation, which ranges from its mile-long list of original series to its recently launched ad-supported tier that comes with a lower monthly price. The company's willingness to adjust its operating model to fit the demands of consumers is helping to push earnings forecasts higher.
However, I'd be remiss if I didn't also point out that Netflix is, arguably, the priciest FAANG stock relative to its cash flow. Whereas Alphabet and Amazon are valued at well below their historic cash-flow multiples for 2023 and 2024, investors are respectively paying 35 and 25 times forecast cash flow for shares of Netflix in 2023 and 2024. It may be an industry leader, but it's far from cheap.
10 stocks we like better than Netflix
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 Netflix 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 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, Meta Platforms, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Billionaire Jim Simons couldn't hit the sell button fast enough with three FAANG stocks When I say FAANG stocks, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The FAANGs are undisputed market share leaders within their respective industries, and they have an extensive history of outperforming the benchmark S&P 500 over long periods. AAPL PE Ratio data by YCharts. Between earnings season and a constant barrage of economic data releases, it's easy for investors to feel overwhelmed by the amount of information thrown their way.
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Billionaire Jim Simons couldn't hit the sell button fast enough with three FAANG stocks When I say FAANG stocks, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The FAANGs are undisputed market share leaders within their respective industries, and they have an extensive history of outperforming the benchmark S&P 500 over long periods. AAPL PE Ratio data by YCharts. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Walt Disney, and Warner Bros.
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Billionaire Jim Simons couldn't hit the sell button fast enough with three FAANG stocks When I say FAANG stocks, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The FAANGs are undisputed market share leaders within their respective industries, and they have an extensive history of outperforming the benchmark S&P 500 over long periods. AAPL PE Ratio data by YCharts. The one FAANG stock Simons bought hand over fist in the first quarter However, you'll note there are two other FAANGs I've yet to discuss: social media stock Meta Platforms and streaming services behemoth Netflix.
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Billionaire Jim Simons couldn't hit the sell button fast enough with three FAANG stocks When I say FAANG stocks, I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The FAANGs are undisputed market share leaders within their respective industries, and they have an extensive history of outperforming the benchmark S&P 500 over long periods. AAPL PE Ratio data by YCharts. The reasons Renaissance chose to buy shares of Netflix while selling stakes in the other four FAANGs probably has to do with some combination of profitability, cash flow, and innovation.
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15795.0
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2023-05-18 00:00:00 UTC
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Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime
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AAPL
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https://www.nasdaq.com/articles/got-%242500-2-top-stocks-that-you-can-buy-and-hold-for-a-lifetime-4
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nan
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nan
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There are many myths about investing. Some people think they need a lot of money to get started. Others believe that trading in and out of the market is the best way to make a fortune. Neither is true. You actually don't need much money to begin investing. Less frequent trading is usually a much better way to generate long-term gains.
Of course, it's important to find the right stocks to own. That's not a huge challenge, though. If you've got $2,500 to invest, here are two stocks that you can buy and hold for a lifetime.
1. Apple
Who is the most famous buy-and-hold investor on the planet? Warren Buffett. What's his favorite stock? Excluding his own Berkshire Hathaway, the answer would almost certainly be Apple (NASDAQ: AAPL). Buffett has invested more heavily in Apple than any other stock, by far.
A little under half of your initial $2,500 would allow you to buy seven shares of Apple at the current price. You should be able to hold onto those shares for decades, too, because the tech titan's business is built for the long term.
Apple's ecosystem stands out as its not-so-secret ingredient to success. This ecosystem features the company's super-popular devices such as the iPhone, iPad, AirPods, and Apple Watch. Just as important, though, are its services, including the App Store, Apple Music, Apple Pay, Apple TV+, and more.
The company's products enjoy strong brand loyalty. As a result, customers keep coming back to buy new versions -- which Apple regularly introduces.
Apple isn't resting on its laurels, though. It continues to expand into new areas. For example, the company is expected to soon launch an augmented reality/virtual reality headset. There are also rumors that Apple will move into the health insurance business in partnership with a large insurer as soon as 2024.
Don't overlook Apple's opportunities in artificial intelligence (AI), either. The company's AI efforts haven't been at the center of attention given the meteoric rise of OpenAI's ChatGPT. However, Apple CEO Tim Cook stated in February that AI "will affect every product in every service that we have."
Buffett stated in 2020 that Apple is "probably the best business I know in the world." Earlier this year, he said that the company is "a wonderful business, so we own a lot of it." When an investor who made a fortune of over $100 billion by evaluating businesses gives such high praise, it's a stock to buy and hold.
2. Intuitive Surgical
After buying seven shares of Apple, you could scoop up five shares of Intuitive Surgical (NASDAQ: ISRG) and still have a little money left over from your initial $2,500. Why invest in Intuitive Surgical? Its long-term prospects are outstanding.
The company reigns as the 800-pound gorilla in the robotic surgical systems market. Intuitive pioneered this arena with its da Vinci system. It still holds a commanding share more than two decades later.
To be sure, Intuitive Surgical now has more competition with big players including Johnson & Johnson and Medtronic entering the robotic surgical systems market. However, no rival can come close to Intuitive's track record of demonstrating safety and positive returns on investment -- two attributes that are critical for customers.
The market for robotic surgical systems should grow tremendously over the next few decades thanks to aging populations across the world. This demographic trend should drive increased demand for surgeries, including several for which robotic surgery is especially well suited right now.
Intuitive Surgical is also investing in research and development to expand the use of robotic surgery to other procedures. Even with the significant growth in the use of robotic assistance in surgeries, only a small percentage of total procedures performed currently use robots. This percentage will almost certainly increase in the future.
10 stocks we like better than Intuitive Surgical
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*Stock Advisor returns as of May 15, 2023
Keith Speights has positions in Apple, Berkshire Hathaway, and Intuitive Surgical. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Intuitive Surgical. 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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Excluding his own Berkshire Hathaway, the answer would almost certainly be Apple (NASDAQ: AAPL). When an investor who made a fortune of over $100 billion by evaluating businesses gives such high praise, it's a stock to buy and hold. However, no rival can come close to Intuitive's track record of demonstrating safety and positive returns on investment -- two attributes that are critical for customers.
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Excluding his own Berkshire Hathaway, the answer would almost certainly be Apple (NASDAQ: AAPL). See the 10 stocks *Stock Advisor returns as of May 15, 2023 Keith Speights has positions in Apple, Berkshire Hathaway, and Intuitive Surgical. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Intuitive Surgical.
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Excluding his own Berkshire Hathaway, the answer would almost certainly be Apple (NASDAQ: AAPL). Just as important, though, are its services, including the App Store, Apple Music, Apple Pay, Apple TV+, and more. Intuitive Surgical After buying seven shares of Apple, you could scoop up five shares of Intuitive Surgical (NASDAQ: ISRG) and still have a little money left over from your initial $2,500.
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Excluding his own Berkshire Hathaway, the answer would almost certainly be Apple (NASDAQ: AAPL). Buffett stated in 2020 that Apple is "probably the best business I know in the world." Intuitive Surgical After buying seven shares of Apple, you could scoop up five shares of Intuitive Surgical (NASDAQ: ISRG) and still have a little money left over from your initial $2,500.
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15796.0
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2023-05-18 00:00:00 UTC
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Tech Stocks Are Doing Something Not Seen in 97 Years
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AAPL
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https://www.nasdaq.com/articles/tech-stocks-are-doing-something-not-seen-in-97-years
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nan
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As investors likely realized last year, putting your money to work on Wall Street can be an adventure, at least in the short run. In 2022, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) were all (at least briefly) entrenched in a bear market, with the Nasdaq taking the brunt of the pain (down 33%).
But 2023 has been a different story thus far. Whereas the Dow is relatively unchanged for the year, as of this past weekend, the Nasdaq Composite has rocketed higher by 17%. This outperformance is being led by brand-name, megacap companies, predominantly found in the tech sector.
Image source: Getty Images.
Tech stock outperformance is off the charts
It's no secret that tech stocks have been outperformers since the end of the Great Recession. Dovish monetary policy from the Federal Reserve offered more than a decade of historically low borrowing costs that allowed tech companies to hire, acquire, and innovate.
Access to cheap capital has fueled outsized growth rates. Even though value stocks have the edge over growth stocks over the very long term, based on a Bank of America/Merrill Lynch study from 1926 through 2015, it's growth stocks that have handily outperformed since 2009. Investors have had a willing appetite for risk in a low-interest rate environment.
Tech stocks also have a habit of outperforming other sectors during recessionary periods. With a number of indicators and metrics, along with the Federal Reserve, suggesting that a U.S. recession is likely at some point in the not-too-distant future, the expectation would be for tech earnings to decline at a slower pace than other sectors.
This is the greatest outperformance of US Tech versus the S&P 500 we have ever seen. $SPY $QQQ $AAPL $MSFT $NVDA pic.twitter.com/wWSANYLwad
-- David Marlin (@Marlin_Capital) May 5, 2023
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$SPY $QQQ $AAPL $MSFT $NVDA pic.twitter.com/wWSANYLwad -- David Marlin (@Marlin_Capital) May 5, 2023 As investors likely realized last year, putting your money to work on Wall Street can be an adventure, at least in the short run. Dovish monetary policy from the Federal Reserve offered more than a decade of historically low borrowing costs that allowed tech companies to hire, acquire, and innovate.
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$SPY $QQQ $AAPL $MSFT $NVDA pic.twitter.com/wWSANYLwad -- David Marlin (@Marlin_Capital) May 5, 2023 In 2022, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) were all (at least briefly) entrenched in a bear market, with the Nasdaq taking the brunt of the pain (down 33%). Whereas the Dow is relatively unchanged for the year, as of this past weekend, the Nasdaq Composite has rocketed higher by 17%.
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$SPY $QQQ $AAPL $MSFT $NVDA pic.twitter.com/wWSANYLwad -- David Marlin (@Marlin_Capital) May 5, 2023 In 2022, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) were all (at least briefly) entrenched in a bear market, with the Nasdaq taking the brunt of the pain (down 33%). Tech stock outperformance is off the charts It's no secret that tech stocks have been outperformers since the end of the Great Recession.
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$SPY $QQQ $AAPL $MSFT $NVDA pic.twitter.com/wWSANYLwad -- David Marlin (@Marlin_Capital) May 5, 2023 Tech stock outperformance is off the charts It's no secret that tech stocks have been outperformers since the end of the Great Recession. Access to cheap capital has fueled outsized growth rates.
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15797.0
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2023-05-18 00:00:00 UTC
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NVDA Stock Valuation Analysis: What Is Nvidia Really Worth?
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AAPL
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https://www.nasdaq.com/articles/nvda-stock-valuation-analysis%3A-what-is-nvidia-really-worth
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
By any conventional measurement, the current market valuation of Nvidia (NASDAQ:NVDA) stock looks ridiculous.
At $288 per share, you’re paying 167 times earnings. The yield on the 4 cent/quarter dividend is 0.06%. (That may be less than your checking account.)
You’re paying 19 times next year’s expected earnings to own it.
It’s true that I own some. I got in five years ago, sold enough to cover the costs, and didn’t look at it again. Over the long run, Nvidia is not a stock you buy or sell. It’s something you own, like Apple (NASDAQ:AAPL).
A better question might be, what should NVDA stock be worth today? Also, what do we call the “excess” valuation?
NVDA Nvidia $300.03
The Druckenmiller Thesis
Stanley Druckenmiller is one of the brightest guys on Wall Street. The record of his Duquesne Fund is legendary. He closed it in 2010 and now runs it as a “family office.”
Druckenmiller just bought NVDA stock. He bought $200 million of it. His family office also bought Microsoft (NASDAQ:MSFT), which may be just as overvalued. The investment was made, he said, because he wants to be in the long-term leaders of Artificial Intelligence (AI) as it prepares to take over the world. Over the near term he’s bound to get burned.
Druckenmiller’s heirs can afford a defensive play. The trouble is the leaders in tech are seldom the companies you expect. I think he’s buying IBM (NYSE:IBM) in 1981, or Cisco Systems (NASDAQ:CSCO) in 1999.
Microsoft didn’t emerge for years after the PC came along. Meta Platforms (NASDAQ:META) wasn’t even founded until 2004.
Speculative Value
Investors are betting that Nvidia sales will explode over the next two years, by 25%, at scale, with profit growth to match. The fundamental value for a stock growing sales and profits 25% per year could be 10 times current sales, even 50 times earnings.
Right now Nvidia is trading about where Amazon (NASDAQ:AMZN) did at its 2021 high. It’s down over one-third since then.
What remains, beyond the fundamentals, is what I call speculative value. It always exists, in a fast moving market. There’s fear of missing out, along with assumptions about fundamental changes coming in technology and the economy.
Such changes are happening under the surface. Look at the changes just since 2000, or look at your phone. Ask Google, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) was in its infancy then. Amazon was a bookstore in the year 2000. Streaming was still something trout fishermen did. Clouds were all in the sky.
Nvidia is Worried
Over at Nvidia, CEO Jensen Huang is worried. He just took a 25% pay cut. Nvidia’s flagship gaming cards aren’t selling the way they were. The Bitcoin mining boom is over. Apple, Amazon, and Alphabet are starting to make their own Graphics Processing Units (GPUs). Nvidia’s best customers are competing with it.
That’s why Huang is talking up AI. It’s not just for replacing writers and graphic artists, he says. AI can make chips faster and better. Getting Nvidia chips into the hands of those who make its chips open huge new markets.
AI will do its best work in manufacturing and the Intranet of Systems. It makes investing in robots make sense.
The Bottom Line
I believe in Nvidia, and the promise of AI. I believe Nvidia chips will play their part, increasing human productivity as the decade goes forward.
But Nvidia won’t be the only winner. It won’t even be the biggest.
The biggest winners here will be software companies, some of which don’t exist yet. They will work under the surface, in factories, in hospitals, in our infrastructure. Some of this will be powered by Nvidia hardware. Just not all of it.
Nvidia is a marker for this future AI world, but don’t fall in love with the stock. Don’t overpay. It will come down to a buying range again. It was at half its current price in January.
On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, AMZN, MSFT, and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
The post NVDA Stock Valuation Analysis: What Is Nvidia Really Worth? 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 the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, AMZN, MSFT, and NVDA. It’s something you own, like Apple (NASDAQ:AAPL). Speculative Value Investors are betting that Nvidia sales will explode over the next two years, by 25%, at scale, with profit growth to match.
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On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, AMZN, MSFT, and NVDA. It’s something you own, like Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips By any conventional measurement, the current market valuation of Nvidia (NASDAQ:NVDA) stock looks ridiculous.
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It’s something you own, like Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, AMZN, MSFT, and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips By any conventional measurement, the current market valuation of Nvidia (NASDAQ:NVDA) stock looks ridiculous.
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It’s something you own, like Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, AMZN, MSFT, and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips By any conventional measurement, the current market valuation of Nvidia (NASDAQ:NVDA) stock looks ridiculous.
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15798.0
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2023-05-18 00:00:00 UTC
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How Mark Zuckerberg Could Disrupt Artificial Intelligence
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AAPL
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https://www.nasdaq.com/articles/how-mark-zuckerberg-could-disrupt-artificial-intelligence
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nan
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nan
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Meta Platforms (NASDAQ: META) recently open-sourced an artificial intelligence model, allowing other developers to build with it. As big competitors find ways to monetize their AI investments, Mark Zuckerberg's company may "scorch the earth" with its AI technology, which Travis Hoium digs into in the video below.
*Stock prices used were end-of-day prices of May 12, 2023. The video was published on May 15, 2023.
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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 15, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft.
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Meta Platforms (NASDAQ: META) recently open-sourced an artificial intelligence model, allowing other developers to build with it. 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, Apple, Meta Platforms, and Microsoft.
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See the 10 stocks *Stock Advisor returns as of May 15, 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. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft.
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See the 10 stocks *Stock Advisor returns as of May 15, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple.
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15799.0
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2023-05-18 00:00:00 UTC
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3 Stocks That Could Help You Retire a Millionaire
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-could-help-you-retire-a-millionaire-8
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nan
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nan
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Retiring a millionaire is a goal for many investors, because it is a threshold many feel is necessary to retire comfortably. While it's possible to reach this status with market-tracking funds like ETFs, individual stocks can achieve this goal much faster by picking the correct ones.
If that's more your speed, I've got three stocks that I think can supercharge your portfolio returns and help you retire a millionaire someday.
CrowdStrike
When assessing a company's growth potential, it's essential to consider the future operating environment and if the company could be disrupted. CrowdStrike (NASDAQ: CRWD) operates in the cybersecurity industry, which is slated to grow significantly over the coming years due to bad actors ramping up attacks. Another buzzword in the tech industry is artificial intelligence (AI), and companies that don't use it will likely be left in the dust.
Fortunately for investors, CrowdStrike has a top-notch cybersecurity platform based on AI and can prevent and stop breaches thanks to the trillions of signals it analyzes weekly. Its solution is wildly popular, with its customer base growing by 41% to more than 23,000 in fiscal year 2023 (ended Jan. 31). However, it hasn't captured every possible customer, as only 556 of the Global 2000 and 271 of the Fortune 500 are clients. Existing customers also contribute a lot to growth, the the average customer spending $125 in Q4 for every $100 they spent last year.
CrowdStrike also has a huge potential market, and management believes its current offerings constitute a $76 billion total addressable market. However, that figure will rise to $158 billion by 2026 with market growth and planned product launches. Although the company has yet to turn a profit, by other metrics the stock doesn't look all that expensive at 13.5 times sales and 45 times free cash flow.
If you're looking for huge upside in a stock, CrowdStrike should be at the top of your list.
Taiwan Semiconductor
Another cornerstone in stock investing is identifying companies that the market may not appreciate due to short-term conditions. You won't become a millionaire overnight through investing, so taking the long view can reveal some stocks that are genuine bargains.
Taiwan Semiconductor (NYSE: TSM) falls into this category, as the slowing semiconductor market has spurred investors pessimism. TSMC is the world's largest chip contract manufacturing company, so it doesn't market its chips. Instead, it makes chips for customers such as Apple and Nvidia. With world-leading 3 nanometer (nm) chip technology, it's at the cutting edge of its industry.
But, with the PC market affecting every company in the value chain, Taiwan Semiconductor has taken a hit. In Q1, revenue fell 4.8% year over year in U.S. dollars (up 3.6% in local currency). That trend is expected to continue, with analysts predicting revenue to fall by 6% in 2023. However, they forecast revenue growth of 22.2% in 2024.
This increase can be attributed to TSMC's 3 nm chip technology finally contributing to the company's top line, as it generated no revenue in Q1. This indicates a significant upside for TSMC, but the stock is trading as if it will never recover.
Data source: YCharts TSM PE Ratio
Even when its earnings decline during the next 12 months is factored in, Taiwan Semiconductor still trades below where it has over the previous five years. This looks like a strong entry point, and investors should use this short-term weakness to their advantage.
MercadoLibre
I've discussed a stock that has huge upside and a stock that is undervalued, but what about a company that checks both those boxes? I believe MercadoLibre (NASDAQ: MELI) fits that description, and investors should pay attention to this one.
MercadoLibre is the dominant player in Latin American e-commerce. Its offerings include an online store, shipping logistics, digital payments, and a consumer credit division -- kind of like a combination of Amazon and PayPal.
This combination has resulted in explosive growth, and Q1 was no exception. Revenue rose 58% on a currency-neutral basis, and operating margin increased by 5 percentage points to 11.2%. Even with MercadoLibre increasing its profitability, the company can still rapidly increase revenue.
It also has enormous upside, and Latin America has a large population attempting to break through to the middle class.
Fortunately for investors, the stock trades well below its historical valuation range for all of that upside and strong growth.
Data source: YCharts MELI PS Ratio
MercadoLibre looks like a great buy at these prices, and investors who purchase this stock will position themselves well to become a millionaire with a long enough holding period.
10 stocks we like better than CrowdStrike
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 CrowdStrike 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 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Amazon.com, CrowdStrike, MercadoLibre, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon.com, Apple, CrowdStrike, MercadoLibre, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CrowdStrike (NASDAQ: CRWD) operates in the cybersecurity industry, which is slated to grow significantly over the coming years due to bad actors ramping up attacks. Fortunately for investors, CrowdStrike has a top-notch cybersecurity platform based on AI and can prevent and stop breaches thanks to the trillions of signals it analyzes weekly. Data source: YCharts MELI PS Ratio MercadoLibre looks like a great buy at these prices, and investors who purchase this stock will position themselves well to become a millionaire with a long enough holding period.
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Data source: YCharts MELI PS Ratio MercadoLibre looks like a great buy at these prices, and investors who purchase this stock will position themselves well to become a millionaire with a long enough holding period. Keithen Drury has positions in Amazon.com, CrowdStrike, MercadoLibre, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon.com, Apple, CrowdStrike, MercadoLibre, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing.
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Taiwan Semiconductor Another cornerstone in stock investing is identifying companies that the market may not appreciate due to short-term conditions. MercadoLibre I've discussed a stock that has huge upside and a stock that is undervalued, but what about a company that checks both those boxes? See the 10 stocks *Stock Advisor returns as of May 8, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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However, they forecast revenue growth of 22.2% in 2024. Fortunately for investors, the stock trades well below its historical valuation range for all of that upside and strong growth. The Motley Fool has positions in and recommends Amazon.com, Apple, CrowdStrike, MercadoLibre, Nvidia, PayPal, and Taiwan Semiconductor Manufacturing.
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