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15800.0
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2023-05-18 00:00:00 UTC
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2 Dividend Stocks Warren Buffet Loves
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AAPL
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https://www.nasdaq.com/articles/2-dividend-stocks-warren-buffet-loves
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nan
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nan
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Given that Warren Buffett's favorite holding period is forever, dividends have played a big role in the performance of Berkshire Hathaway's stock portfolio. The conglomerate is set to rake in over $6 billion in dividend income this year from its myriad holdings.
Two of Buffett's favorite dividend stocks are Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO). Collectively, these two stocks account for around $1.5 billion of Berkshire's annual dividend income. While dividend investors shouldn't blindly copy Buffett, both stocks have a lot going for them.
Apple
iPhone giant Apple is, by far, the largest position in Berkshire Hathaway's stock portfolio, accounting for nearly half of its total value. As of March 31, the conglomerate owned about 915 million shares of Apple, worth approximately $158 billion.
Apple took a long break from paying dividends from 1995 through 2012, but the unprecedented success of the iPhone generated so much cash that Apple could easily afford to resume shareholder payouts. The company has grown its quarterly dividend over the past decade, although it's been fairly conservative about it. Apple bumped up the quarterly dividend to $0.24 per share earlier this month, a 4% increase.
Based on that new payment, Apple stock sports a dividend yield of just 0.56%. That's much less generous than many of its tech-giant peers. But once you factor in share buybacks, Apple returns a prodigious amount of cash to shareholders. In the six months that ended April 1, Apple sent $7.4 billion to investors in the form of dividends and spent another $39 billion on share buybacks.
Over the years, share buybacks have greatly reduced Apple's share count. The company's diluted share count stood at 15.8 billion at the start of April, down from a peak of nearly 27 billion in 2013. For all shareholders, including Buffett, Apple's prolific buybacks have increased the percentage ownership of the company.
While the company's dividend is somewhat stingy right now, there's plenty of room for it to grow over time. Free cash flow over the six months ended April 1 totaled $55.8 billion, putting the dividend-payout ratio at a measly 13%. Even if free-cash-flow growth is minimal, Apple should be able to grow the dividend for many years to come.
Buffett has hundreds of billions of dollars that must be put somewhere, so it makes sense that he would gravitate toward Apple. The company has major competitive advantages, particularly the utter dominance of the iPhone, and it generates far more cash than it knows what to do with. The stock isn't cheap relative to earnings, but it makes a lot of sense for Berkshire's portfolio.
Coca-Cola
Berkshire has owned a major stake in beverage-giant Coca-Cola for decades. Buffett first invested in the company back in 1988 when stock prices were depressed, and that investment has paid off handsomely in the ensuing years.
Since the beginning of 1988, shares of Coca-Cola have soared about 2,550%. But that's only part of the story.
Coca-Cola has been paying dividends for a very long time and has increased its dividend annually for 60 years in a row. The power of the company's brands fuels its results through good times and bad, allowing it to return an ever-increasing amount of cash to shareholders.
Coca-Cola's total return since the start of 1988, which factors in dividend payments, was an astounding 5,930%. That's more than double the gain when excluding the impact of dividends. The company's most recent quarterly dividend of $0.46 per share works out to a yield of 2.9%, far higher than that of the S&P 500.
Coca-Cola's growth remains solid, even as a tough economy puts pressure on consumers. Global unit case volume grew 3% year over year in the first quarter, and organic revenue jumped 12%. The company was able to pass off price increases to its customers without issue, a testament to the strength of its brands.
Coca-Cola isn't going to be dethroned in the world of soft drinks, at least not anytime soon, and the company's broad catalog of products protects it a bit from any changes in consumer behavior. In addition to its iconic Coca-Cola brand, the company sells bottled water, sparkling water, sports drinks, milk, coffee drinks, and juice.
While Coca-Cola stock is unlikely to replicate its amazing performance since Buffett first bought in, it's well-positioned to continue dominating the beverage industry and return substantial cash to shareholders in the process.
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Timothy Green has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple 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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Two of Buffett's favorite dividend stocks are Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO). Given that Warren Buffett's favorite holding period is forever, dividends have played a big role in the performance of Berkshire Hathaway's stock portfolio. Coca-Cola isn't going to be dethroned in the world of soft drinks, at least not anytime soon, and the company's broad catalog of products protects it a bit from any changes in consumer behavior.
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Two of Buffett's favorite dividend stocks are Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO). Apple iPhone giant Apple is, by far, the largest position in Berkshire Hathaway's stock portfolio, accounting for nearly half of its total value. Based on that new payment, Apple stock sports a dividend yield of just 0.56%.
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Two of Buffett's favorite dividend stocks are Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO). Apple iPhone giant Apple is, by far, the largest position in Berkshire Hathaway's stock portfolio, accounting for nearly half of its total value. In the six months that ended April 1, Apple sent $7.4 billion to investors in the form of dividends and spent another $39 billion on share buybacks.
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Two of Buffett's favorite dividend stocks are Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO). In the six months that ended April 1, Apple sent $7.4 billion to investors in the form of dividends and spent another $39 billion on share buybacks. Over the years, share buybacks have greatly reduced Apple's share count.
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15801.0
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2023-05-17 00:00:00 UTC
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QQQM, MSFT, AAPL, AMZN: Large Inflows Detected at ETF
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AAPL
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https://www.nasdaq.com/articles/qqqm-msft-aapl-amzn%3A-large-inflows-detected-at-etf-0
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $129.2 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 70,950,000 to 71,910,000). Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.1%, Apple Inc (Symbol: AAPL) is down about 0.6%, and Amazon.com Inc (Symbol: AMZN) is up by about 1.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average:
Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $137.55 as the 52 week high point — that compares with a last trade of $134.92. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
PACW Options Chain
OMG Historical Stock Prices
TCS YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.1%, Apple Inc (Symbol: AAPL) is down about 0.6%, and Amazon.com Inc (Symbol: AMZN) is up by about 1.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.1%, Apple Inc (Symbol: AAPL) is down about 0.6%, and Amazon.com Inc (Symbol: AMZN) is up by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $129.2 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 70,950,000 to 71,910,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $137.55 as the 52 week high point — that compares with a last trade of $134.92.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.1%, Apple Inc (Symbol: AAPL) is down about 0.6%, and Amazon.com Inc (Symbol: AMZN) is up by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $129.2 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 70,950,000 to 71,910,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $137.55 as the 52 week high point — that compares with a last trade of $134.92.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.1%, Apple Inc (Symbol: AAPL) is down about 0.6%, and Amazon.com Inc (Symbol: AMZN) is up by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $129.2 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 70,950,000 to 71,910,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $137.55 as the 52 week high point — that compares with a last trade of $134.92.
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15802.0
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2023-05-17 00:00:00 UTC
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These Banking Stocks are Set to Flourish Despite the Banking Crisis
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AAPL
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https://www.nasdaq.com/articles/these-banking-stocks-are-set-to-flourish-despite-the-banking-crisis
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nan
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nan
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As Warren Buffett warns, “Only when the tide goes out do you learn who has been swimming naked.” The recent regional banking crisis is a prime example of this phenomenon. Banks such as Silicon Valley Bank, Signature Bank of New York, and Credit Suisse went under or were purchased for pennies on the dollar (with the FDIC mostly taking the hit on unwanted assets).
Though the phrase “banking crisis” carries a negative connotation, certain well-capitalized, opportunistic banks stand to benefit from the situation. Below, we explore why the banking crisis may positively impact certain parts of the industry and will reveal the banking stocks that stand to benefit the most.
Market Consolidation: As weaker banks crumble and go under, more robust, well-capitalized banks will benefit. The banking industry is essentially a zero-sum game; as weak banks lose, stronger banks will win.
JP Morgan (JPM) is a significant beneficiary of this trend. While weaker banks are burning to the ground, the Zacks Rank #2 (BUY) company is turning the crisis into an opportunity. The company acquired the failed First Republic Bank in an FDIC-assisted deal in May. Furthermore, with legendary CEO Jamie Dimon at the helm, the bank is often considered one of the most well-managed banks on Wall Street. In fact, despite the mayhem in the financial sector, JPM has grown its return-on-equity (ROE) significantly over the past year. JPM’s ROE of 16.02% compares favorably to the 12.05% of the industry.
Image Source: Zacks Investment Research
Beyond ROE, JPM stands out from a relative strength perspective as well. Year-to-date, JPM has eked out a gain of 1.6% while its peer group is lower by 12%.
Image Source: Zacks Investment Research
First Citizen’s Bank (FCNCA) is perhaps the largest winner from the consolidation. The Zacks Rank #1 (Strong Buy) stock acquired failed Silicon Valley Bank for pennies on the dollar (with the help of the FDIC). Since the buyout was announced, shares of FCNCA are higher by more than 100%.
Image Source: Zacks Investment Research
Bargain Basement Valuations: Investors tend to “throw the baby out with the bathwater” when a crisis hits Wall Street. An excellent example occurred after the internet bubble burst when Amazon (AMZN) cratered more than 90%. Amazon was the leader in the e-commerce space, but investors were trying to get out of dodge. The same may be occurring with select banking stocks such as Capital One Financial (COF).
Despite the recent troubles in the sector, COF’s revenues have grown year-over-year and are expected to continue to grow.
Image Source: Zacks Investment Research
Furthermore, the company’s valuation has shrunk dramatically and is now trading at a third of what the S&P 500 Index is trading at (6.37x versus 19.27X)
Image Source: Zacks Investment Research
The low valuation and strong revenue growth may explain why the most recent 13F disclosures for Warren Buffett and Michael Burry reveal new positions in the company.
UK-based HSBC Holding (HSBC) is another banking stock with a strong balance sheet trading at a reasonable valuation.
Innovation:A sleeper beneficiary from the crisis may be Apple (AAPL). In 2019, with help from Goldman Sachs (GS), the tech giant launched made its way into the financial services sector by launching its “Apple Card,” which is accepted at many stores through various payment systems such as Block’s (SQ) Square. Though the company is new in the lending space, it has advantages over traditional banks and credit card companies because of its wide distribution (low acquisition cost). In 2023, Apple launched its “high-yield” savings account which. Because the tech juggernaut has so much cash on hand, it can pay a much higher interest rate than traditional banks.
Takeaway
Though a banking crisis may be daunting to investors, the storm will pass, and strong stocks will benefit dramatically. Industry consolidation, shrinking valuations, and innovation should provide savvy investors ample opportunities over the next few years.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Block, Inc. (SQ) : 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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Innovation:A sleeper beneficiary from the crisis may be Apple (AAPL). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Rank #1 (Strong Buy) stock acquired failed Silicon Valley Bank for pennies on the dollar (with the help of the FDIC).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Innovation:A sleeper beneficiary from the crisis may be Apple (AAPL). The Zacks Rank #1 (Strong Buy) stock acquired failed Silicon Valley Bank for pennies on the dollar (with the help of the FDIC).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Innovation:A sleeper beneficiary from the crisis may be Apple (AAPL). Below, we explore why the banking crisis may positively impact certain parts of the industry and will reveal the banking stocks that stand to benefit the most.
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Innovation:A sleeper beneficiary from the crisis may be Apple (AAPL). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Below, we explore why the banking crisis may positively impact certain parts of the industry and will reveal the banking stocks that stand to benefit the most.
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15803.0
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2023-05-17 00:00:00 UTC
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EXCLUSIVE-Telcos draw up proposal to charge Big Tech for EU 5G rollout
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AAPL
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https://www.nasdaq.com/articles/exclusive-telcos-draw-up-proposal-to-charge-big-tech-for-eu-5g-rollout
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nan
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nan
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By Supantha Mukherjee and Elvira Pollina
STOCKHOLM/MILAN, May 17 (Reuters) - Big tech companies accounting for more than 5% of a telecoms provider's peak average internet traffic should help fund the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry.
Alphabet's GOOGL.O Google, Apple AAPL.O, Facebook-owner Meta META.O, Amazon AMZN.O, Netflix NFLX. and TikTok would most likely be hit with fees, according to industry estimates.
Google, Apple, Meta, Netflix, Amazon and Microsoft MSFT.O together account for more than half of data internet traffic.
Telecom operators have lobbied for years for leading technology companies to help foot the billfor 5G and broadband roll-out, saying that they create a huge part of the region's internet traffic. This is the first time they have tried to define a threshold for who should pay.
"We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," the draft said.
"Large traffic generators would only be those companies that account for more than 5% of an operator's yearly average busy hour traffic measured at the individual network level," it said.
The Commission declined to comment.
In a blog, Markus Reinisch, Meta's VP for Public Policy for Europe, described potential fees as a "private sector handout for selected telecom operators" that would disincentivise innovation and investment, and distort competition.
"We urge the Commission to consider the evidence, listen to the range of organisations who have voiced concerns, and abandon these misguided proposals as quickly as possible," he said.
(Reporting by Supantha Mukherjee in Stockholm and Elvira Pollina in Milan; additional reporting by Foo Yun Chee in Brussels; Editing by Josephine Mason, Christina Fincher and Keith Weir)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.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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Alphabet's GOOGL.O Google, Apple AAPL.O, Facebook-owner Meta META.O, Amazon AMZN.O, Netflix NFLX. Telecom operators have lobbied for years for leading technology companies to help foot the billfor 5G and broadband roll-out, saying that they create a huge part of the region's internet traffic. "We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," the draft said.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Facebook-owner Meta META.O, Amazon AMZN.O, Netflix NFLX. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Big tech companies accounting for more than 5% of a telecoms provider's peak average internet traffic should help fund the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. Google, Apple, Meta, Netflix, Amazon and Microsoft MSFT.O together account for more than half of data internet traffic.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Facebook-owner Meta META.O, Amazon AMZN.O, Netflix NFLX. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Big tech companies accounting for more than 5% of a telecoms provider's peak average internet traffic should help fund the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. "We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," the draft said.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Facebook-owner Meta META.O, Amazon AMZN.O, Netflix NFLX. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Big tech companies accounting for more than 5% of a telecoms provider's peak average internet traffic should help fund the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. "We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," the draft said.
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15804.0
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2023-05-17 00:00:00 UTC
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SPY, KBUY: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-kbuy%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,350,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.6%, and Microsoft is higher by about 0.1%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the KBUY ETF, which added 100,000 units, for a 33.3% increase in outstanding units.
VIDEO: SPY, KBUY: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.6%, and Microsoft is higher by about 0.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the KBUY ETF, which added 100,000 units, for a 33.3% increase in outstanding units. VIDEO: SPY, KBUY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,350,000 units, or a 1.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the KBUY ETF, which added 100,000 units, for a 33.3% increase in outstanding units. VIDEO: SPY, KBUY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,350,000 units, or a 1.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the KBUY ETF, which added 100,000 units, for a 33.3% increase in outstanding units. VIDEO: SPY, KBUY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,350,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.6%, and Microsoft is higher by about 0.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the KBUY ETF, which added 100,000 units, for a 33.3% increase in outstanding units.
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15805.0
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2023-05-17 00:00:00 UTC
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Noteworthy Wednesday Option Activity: AAPL, ICUI, BOOT
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AAPL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-aapl-icui-boot
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 747,404 contracts has been traded thus far today, a contract volume which is representative of approximately 74.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 135.3% of AAPL's average daily trading volume over the past month, of 55.2 million shares. Especially high volume was seen for the $172.50 strike call option expiring May 19, 2023, with 117,769 contracts trading so far today, representing approximately 11.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange:
ICU Medical Inc (Symbol: ICUI) saw options trading volume of 2,306 contracts, representing approximately 230,600 underlying shares or approximately 122.9% of ICUI's average daily trading volume over the past month, of 187,695 shares. Particularly high volume was seen for the $185 strike call option expiring June 16, 2023, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of ICUI. Below is a chart showing ICUI's trailing twelve month trading history, with the $185 strike highlighted in orange:
And Boot Barn Holdings Inc (Symbol: BOOT) saw options trading volume of 7,785 contracts, representing approximately 778,500 underlying shares or approximately 120.4% of BOOT's average daily trading volume over the past month, of 646,465 shares. Especially high volume was seen for the $60 strike put option expiring May 19, 2023, with 3,014 contracts trading so far today, representing approximately 301,400 underlying shares of BOOT. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for AAPL options, ICUI options, or BOOT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
SVBI market cap history
Funds Holding TDI
XEL Dividend Growth Rate
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $172.50 strike call option expiring May 19, 2023, with 117,769 contracts trading so far today, representing approximately 11.8 million underlying shares of AAPL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 747,404 contracts has been traded thus far today, a contract volume which is representative of approximately 74.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 135.3% of AAPL's average daily trading volume over the past month, of 55.2 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 747,404 contracts has been traded thus far today, a contract volume which is representative of approximately 74.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange: ICU Medical Inc (Symbol: ICUI) saw options trading volume of 2,306 contracts, representing approximately 230,600 underlying shares or approximately 122.9% of ICUI's average daily trading volume over the past month, of 187,695 shares. That number works out to 135.3% of AAPL's average daily trading volume over the past month, of 55.2 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 747,404 contracts has been traded thus far today, a contract volume which is representative of approximately 74.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange: ICU Medical Inc (Symbol: ICUI) saw options trading volume of 2,306 contracts, representing approximately 230,600 underlying shares or approximately 122.9% of ICUI's average daily trading volume over the past month, of 187,695 shares. That number works out to 135.3% of AAPL's average daily trading volume over the past month, of 55.2 million shares.
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Especially high volume was seen for the $172.50 strike call option expiring May 19, 2023, with 117,769 contracts trading so far today, representing approximately 11.8 million underlying shares of AAPL. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange: For the various different available expirations for AAPL options, ICUI options, or BOOT options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 747,404 contracts has been traded thus far today, a contract volume which is representative of approximately 74.7 million underlying shares (given that every 1 contract represents 100 underlying shares).
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15806.0
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2023-05-17 00:00:00 UTC
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After Hours Most Active for May 17, 2023 : BAC, MS, AAPL, CSCO, USB, AMD, INTC, AGL, NYCB, APYX, GOOGL, SCHW
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-17-2023-%3A-bac-ms-aapl-csco-usb-amd-intc-agl-nycb-apyx
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -12.07 to 13,577.19. The total After hours volume is currently 80,536,586 shares traded.
The following are the most active stocks for the after hours session:
Bank of America Corporation (BAC) is +0.02 at $28.59, with 5,604,978 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.86. BAC's current last sale is 79.42% of the target price of $36.
Morgan Stanley (MS) is +0.05 at $83.96, with 4,586,852 shares traded. As reported by Zacks, the current mean recommendation for MS is in the "buy range".
Apple Inc. (AAPL) is unchanged at $172.69, with 2,918,352 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".
Cisco Systems, Inc. (CSCO) is -0.23 at $47.40, with 2,750,818 shares traded. Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
U.S. Bancorp (USB) is +0.01 at $30.46, with 2,211,876 shares traded. USB's current last sale is 67.69% of the target price of $45.
Advanced Micro Devices, Inc. (AMD) is -0.02 at $103.73, with 1,975,627 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Intel Corporation (INTC) is unchanged at $28.87, with 1,962,440 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.04. INTC's current last sale is 94.66% of the target price of $30.5.
agilon health, inc. (AGL) is unchanged at $23.11, with 1,956,700 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".
New York Community Bancorp, Inc. (NYCB) is unchanged at $11.20, with 1,859,704 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.33. , following a 52-week high recorded in today's regular session.
Apyx Medical Corporation (APYX) is unchanged at $5.94, with 1,776,093 shares traded. As reported in the last short interest update the days to cover for APYX is 34.930751; this calculation is based on the average trading volume of the stock.
Alphabet Inc. (GOOGL) is unchanged at $120.84, with 1,584,270 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. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
The Charles Schwab Corporation (SCHW) is +0.18 at $52.00, with 1,106,595 shares traded. As reported by Zacks, the current mean recommendation for SCHW 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 unchanged at $172.69, with 2,918,352 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
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Apple Inc. (AAPL) is unchanged at $172.69, with 2,918,352 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is unchanged at $172.69, with 2,918,352 shares traded. As reported by Zacks, the current mean recommendation for MS is in the "buy range".
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Apple Inc. (AAPL) is unchanged at $172.69, with 2,918,352 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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15807.0
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2023-05-17 00:00:00 UTC
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2 Green Flags for Apple Stock Investors in 2023 (and Beyond)
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AAPL
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https://www.nasdaq.com/articles/2-green-flags-for-apple-stock-investors-in-2023-and-beyond
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nan
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nan
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Apple (NASDAQ: AAPL) stock investors can look forward to at least two catalysts that could propel it forward in 2023. Fool.com contributor and finance professor Parkev Tatevosian highlights what those two things are.
*Stock prices used were the afternoon prices of May 15, 2023. The video was published on May 17, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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) stock investors can look forward to at least two catalysts that could propel it forward in 2023. 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!
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Apple (NASDAQ: AAPL) stock investors can look forward to at least two catalysts that could propel it forward in 2023. 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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Apple (NASDAQ: AAPL) stock investors can look forward to at least two catalysts that could propel it forward in 2023. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) stock investors can look forward to at least two catalysts that could propel it forward in 2023. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Parkev Tatevosian, CFA has positions in Apple. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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15808.0
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2023-05-17 00:00:00 UTC
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Advisors Rotating Into These 2 Equal Weight Sector ETFs
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AAPL
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https://www.nasdaq.com/articles/advisors-rotating-into-these-2-equal-weight-sector-etfs
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nan
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Two of Invesco’s equal-weight sector ETFs have seen significant flows recently as advisors allocate to sectors positioned to outperform.
Many advisors utilize sector rotation strategies as a way to generate alpha for clients. Nearly 27% of advisors recently polled said their approach to sector allocation is to rotate sectors that they believe will outperform the broader market in different market scenarios. Conversely, nearly 18% of respondents said they avoid sectors that they believe are likely to underperform the market, according to “How can an equal weight approach lead to potential outperformance?” (Date: May 15, 2023. Sample size: 257 respondents, 37.7% RIAs.)
The Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS) and the Invesco S&P 500 Equal Weight Technology ETF (RYT) are the most popular funds in Invesco’s lineup of equal weight sector ETFs over one-week and four-week periods.
See more: "How Equal Weighting at the Stock Level Impacts Sector Exposures"
RHS has seen $200 million in one-month net flows and $370 million in flows over three months. Meanwhile, RYT has seen $257 million in net flows over one month and $385 million over three months.
“Defensive sectors like consumer staples tend to do better during the historically volatile summer months. It is good to see consistent flows as a sign of broader adoption by advisors,” Todd Rosenbluth, head of research at VettaFi, said.
An equal-weight approach is particularly impactful in the top-heavy information technology and consumer staples sectors. The largest five companies in the S&P 500 information technology sector comprise 66.2% of the index by weight. Meanwhile, the largest five companies in the S&P 500 consumer staples sector comprise 51.2% of the index by weight.
Top-Performing Stocks in RYT and RHS
The top-performing holdings in RYT recently include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL).
The five top-performing stocks in RHS recently include McCormick & Company, Inc. (MKC), Molson Coors Beverage Company (TAP), Mondelez International, Inc. (MDLZ), Monster Beverage Corporation (MNST), and Kimberly-Clark Corporation (KMB).
For more news, information, and analysis, visit the Portfolio Strategies 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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Top-Performing Stocks in RYT and RHS The top-performing holdings in RYT recently include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). Conversely, nearly 18% of respondents said they avoid sectors that they believe are likely to underperform the market, according to “How can an equal weight approach lead to potential outperformance?” (Date: May 15, 2023. It is good to see consistent flows as a sign of broader adoption by advisors,” Todd Rosenbluth, head of research at VettaFi, said.
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Top-Performing Stocks in RYT and RHS The top-performing holdings in RYT recently include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). The Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS) and the Invesco S&P 500 Equal Weight Technology ETF (RYT) are the most popular funds in Invesco’s lineup of equal weight sector ETFs over one-week and four-week periods. See more: "How Equal Weighting at the Stock Level Impacts Sector Exposures" RHS has seen $200 million in one-month net flows and $370 million in flows over three months.
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Top-Performing Stocks in RYT and RHS The top-performing holdings in RYT recently include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). Two of Invesco’s equal-weight sector ETFs have seen significant flows recently as advisors allocate to sectors positioned to outperform. The Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS) and the Invesco S&P 500 Equal Weight Technology ETF (RYT) are the most popular funds in Invesco’s lineup of equal weight sector ETFs over one-week and four-week periods.
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Top-Performing Stocks in RYT and RHS The top-performing holdings in RYT recently include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). Nearly 27% of advisors recently polled said their approach to sector allocation is to rotate sectors that they believe will outperform the broader market in different market scenarios. The Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS) and the Invesco S&P 500 Equal Weight Technology ETF (RYT) are the most popular funds in Invesco’s lineup of equal weight sector ETFs over one-week and four-week periods.
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15809.0
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2023-05-17 00:00:00 UTC
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ANALYSIS-Elon Musk's embrace of advertising at Tesla grabs marketers' attention
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AAPL
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https://www.nasdaq.com/articles/analysis-elon-musks-embrace-of-advertising-at-tesla-grabs-marketers-attention
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nan
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nan
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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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15810.0
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2023-05-17 00:00:00 UTC
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SPY ETF: A Shortcut to the Top 500 U.S. Stocks
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AAPL
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https://www.nasdaq.com/articles/spy-etf%3A-a-shortcut-to-the-top-500-u.s.-stocks
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nan
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nan
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There are hundreds or thousands of famous names for stock investors to choose from, but what if you could get immediate exposure to 500 top U.S. stocks? It's possible with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), and you can own this fund without paying hefty fees. I'm bullish on the SPY ETF because it has an excellent track record of providing returns to shareholders over the long term.
SPY stock is provided and managed by State Street (NYSE:STT), and it's designed to track (i.e., closely follow) the S&P 500 (SPX) index. It's been around since 1993, which makes SPY the first publicly-listed U.S. exchange-traded fund (ETF). Believe it or not, the SPY ETF represents over $380 billion worth of assets under management (AUM).
Of course, being the first and biggest doesn't necessarily make SPY the best U.S. ETF. So, let's see what else sets SPY apart from lesser entrants in the ETF space.
Instant Diversification is Easy with the SPY ETF
If you don't have the desire or the know-how to pick individual stocks, you can simply let the SPY ETF's fund managers do the legwork on your behalf. This fund provides immediate and convenient diversification for your portfolio, and SPY can be bought and sold within many types of investment accounts, including some retirement accounts.
Like the S&P 500 itself, the SPY ETF represents a basket of 500 companies across a broad range of market sectors, from information technology to health care, to consumer discretionary, financials, and more. Be aware, though, that not all of these categories are represented equally; this is a weighted index fund, meaning some sectors and companies have more influence than others do in the SPY ETF.
Notably, the information technology sector comprises around 26% of the weight of the SPY ETF. So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple (NASDAQ:AAPL), which has a 7.14% weighting in SPY; Microsoft (NASDAQ:MSFT), which has a 6.25% weighting; and Amazon (NASDAQ:AMZN), which has a 2.68% weighting in the fund.
SPY is a Historical Winner with Low Fees
While having a mix of 500 stocks helps to reduce the volatility of the SPY ETF, there will still be ups and downs. Yet, if you check the long-term chart of SPY, you'll find that historically, it has always recovered from its downturns (though we should bear in mind that past performance doesn't guarantee future results).
Also, the SPY ETF pays a 1.56% annual dividend yield, so that should enhance investors' returns over the long run. The dividend payments are issued on a quarterly basis, and some shareholders like to reinvest the dividends into more SPY shares in order to achieve a compounding effect.
Here's my favorite feature of the SPY ETF, though -- the rock-bottom fees. Believe it or not, SPY's annual gross expense ratio is just 0.09%. In other words, the SPY ETF's investors pay less than 1/10 of a percent per year for all of the fund managers' hard work and due diligence -- not a bad deal, wouldn't you agree?
Is SPY Stock a Buy, According to Analysts?
On TipRanks, SPY earns a Moderate Buy consensus rating based on the ratings of 6,168 analysts. 59% of ratings are Buys, while 35.51% are Holds and just 5.5% are Sells. The average SPY stock price target of $469.96 implies 13.2% upside potential.
Conclusion: Should You Consider SPY ETF?
If you'd rather let someone else handle the business of picking large-cap U.S. stocks on your behalf, the SPY ETF is definitely worth considering. With SPY, you can get fast exposure to a broad range of well-known businesses.
Plus, investors can collect dividend payouts every quarter. So, as long as you don't mind giving extra weight to tech names in your portfolio, the SPY ETF is a great way to delve into the wide world of American stocks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple (NASDAQ:AAPL), which has a 7.14% weighting in SPY; Microsoft (NASDAQ:MSFT), which has a 6.25% weighting; and Amazon (NASDAQ:AMZN), which has a 2.68% weighting in the fund. Yet, if you check the long-term chart of SPY, you'll find that historically, it has always recovered from its downturns (though we should bear in mind that past performance doesn't guarantee future results). In other words, the SPY ETF's investors pay less than 1/10 of a percent per year for all of the fund managers' hard work and due diligence -- not a bad deal, wouldn't you agree?
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So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple (NASDAQ:AAPL), which has a 7.14% weighting in SPY; Microsoft (NASDAQ:MSFT), which has a 6.25% weighting; and Amazon (NASDAQ:AMZN), which has a 2.68% weighting in the fund. Instant Diversification is Easy with the SPY ETF If you don't have the desire or the know-how to pick individual stocks, you can simply let the SPY ETF's fund managers do the legwork on your behalf. Like the S&P 500 itself, the SPY ETF represents a basket of 500 companies across a broad range of market sectors, from information technology to health care, to consumer discretionary, financials, and more.
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So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple (NASDAQ:AAPL), which has a 7.14% weighting in SPY; Microsoft (NASDAQ:MSFT), which has a 6.25% weighting; and Amazon (NASDAQ:AMZN), which has a 2.68% weighting in the fund. Instant Diversification is Easy with the SPY ETF If you don't have the desire or the know-how to pick individual stocks, you can simply let the SPY ETF's fund managers do the legwork on your behalf. SPY is a Historical Winner with Low Fees While having a mix of 500 stocks helps to reduce the volatility of the SPY ETF, there will still be ups and downs.
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So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple (NASDAQ:AAPL), which has a 7.14% weighting in SPY; Microsoft (NASDAQ:MSFT), which has a 6.25% weighting; and Amazon (NASDAQ:AMZN), which has a 2.68% weighting in the fund. Also, the SPY ETF pays a 1.56% annual dividend yield, so that should enhance investors' returns over the long run. If you'd rather let someone else handle the business of picking large-cap U.S. stocks on your behalf, the SPY ETF is definitely worth considering.
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2023-05-17 00:00:00 UTC
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META Stock Forecast: Will Meta’s Bold Moves Outweigh Its Hurdles?
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https://www.nasdaq.com/articles/meta-stock-forecast%3A-will-metas-bold-moves-outweigh-its-hurdles
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Meta Platforms (NASDAQ:META) stock has multiple, positive, potential catalysts but is facing a few important threats, as I pointed out in a column published on May 14.
While performing research for this article, I identified two more potential, positive catalysts (the monetization of messaging and new virtual reality products) and one more threat (an order against the company by the FTC) for Meta.
Additionally, I have learned that the company is advancing when it comes to utilizing artificial intelligence to enhance the quality of its ads and monetize them. Further, Meta is reportedly continuing to make progress when it comes to combating the negative impact of Apple’s (NASDAQ:AAPL) privacy changes on its business.
However, I still believe that META stock remains a “show-me” story at its current valuation. In other words, the shares aren’t a buy at this point, but if the company shows that it’s effectively exploiting its potential, positive catalysts while its threats are not pulling down its financial results, the shares could be worth buying down the road.
META Meta Platforms $241.55
Meta’s Potential Messaging and AI Catalysts
Increased monetization of Meta’s messaging offerings could positively move the needle for the company’s shares in the not-too-distant future.
On the company’s fourth-quarterearnings call Meta CEO Mark Zuckerberg reported that Meta’s “click to message ads [had] reached a $10 billion revenue [annual] run rate.” On its Q1earnings call the CEO stated that “the number of businesses using our other business messaging service paid messaging on WhatsApp has grown by 40% quarter-over-quarter.”
Messaging has likely already started to positively move the needle for Meta and META stock, and that trend could continue and intensify going forward.
On the AI front, which I explored in my previous column, Meta stated that “it would begin testing artificial intelligence-powered ad tools that can create content like image backgrounds and variations of written text.” That initiative could make the company’s ads more attractive to marketers, meaningfully increasing the number of ads that the company can sell and allowing it to raise the prices of its ads.
Further, Meta is using AI to provide better short-video recommendations to its users. As a result, ” Reelz monetization efficiency is up over 30% on Instagram and over 40% on Facebook quarter-over-quarter,” Zuckerberg reported.
The CEO believes that Reelz could contribute positively to the company’s profits in the short term. Eventually, Reelz’s profitability could become a meaningful, positive catalyst for META stock.
More Potential Positive Catalysts
And according to RBC Capital, a Canadian investment bank, Meta made progress last quarter on reversing the blow to its advertising dealt by the change to Apple’s privacy rules last year.
Finally, although I remain highly skeptical about the ability of the metaverse to positively move the needle for META stock, I’m more upbeat about the prospects of the company’s virtual reality products.
That’s because I believe that, although history shows that many consumers won’t spend much time in the metaverse, they do enjoy short ventures in imaginary worlds, such as those enabled by video games and Snap’s (NYSE:SNAP) augmented reality (AR) products.
As a result, I believe that two of Meta’s upcoming products— smart glasses and AR glasses — due out in 2025 and 2027, respectively, could become upbeat catalysts for META stock.
A Potential Threat
The Federal Trade Commission is proposing that Facebook no longer be allowed to generate profits from its users who are younger than 18. I believe that if the order is issued, it could potentially have a significant, negative impact on Facebook’s profits and on META stock.
The Bottom Line on META Stock
After META stock soared over 97% so far this year, giving the shares a price-earnings ratio of nearly 30, the name definitely isn’t cheap. As a result, before buying META stock, I would wait to see if any of the company’s potential, positive catalysts meaningfully boost its results. I would also wait a while before pulling the trigger on the shares to make sure that the FTC’s order does not pull down its top and bottom lines to a great extent.
On the date of publication, Larry Ramer 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.
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 META Stock Forecast: Will Meta’s Bold Moves Outweigh Its Hurdles? 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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Further, Meta is reportedly continuing to make progress when it comes to combating the negative impact of Apple’s (NASDAQ:AAPL) privacy changes on its business. While performing research for this article, I identified two more potential, positive catalysts (the monetization of messaging and new virtual reality products) and one more threat (an order against the company by the FTC) for Meta. More Potential Positive Catalysts And according to RBC Capital, a Canadian investment bank, Meta made progress last quarter on reversing the blow to its advertising dealt by the change to Apple’s privacy rules last year.
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Further, Meta is reportedly continuing to make progress when it comes to combating the negative impact of Apple’s (NASDAQ:AAPL) privacy changes on its business. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) stock has multiple, positive, potential catalysts but is facing a few important threats, as I pointed out in a column published on May 14. While performing research for this article, I identified two more potential, positive catalysts (the monetization of messaging and new virtual reality products) and one more threat (an order against the company by the FTC) for Meta.
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Further, Meta is reportedly continuing to make progress when it comes to combating the negative impact of Apple’s (NASDAQ:AAPL) privacy changes on its business. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) stock has multiple, positive, potential catalysts but is facing a few important threats, as I pointed out in a column published on May 14. META Meta Platforms $241.55 Meta’s Potential Messaging and AI Catalysts Increased monetization of Meta’s messaging offerings could positively move the needle for the company’s shares in the not-too-distant future.
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Further, Meta is reportedly continuing to make progress when it comes to combating the negative impact of Apple’s (NASDAQ:AAPL) privacy changes on its business. While performing research for this article, I identified two more potential, positive catalysts (the monetization of messaging and new virtual reality products) and one more threat (an order against the company by the FTC) for Meta. META Meta Platforms $241.55 Meta’s Potential Messaging and AI Catalysts Increased monetization of Meta’s messaging offerings could positively move the needle for the company’s shares in the not-too-distant future.
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2023-05-17 00:00:00 UTC
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Here's How Warren Buffett Is Set to Rake in Nearly $6 Billion in Dividend Income This Year
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https://www.nasdaq.com/articles/heres-how-warren-buffett-is-set-to-rake-in-nearly-%246-billion-in-dividend-income-this-year
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It's easy to make billions of dollars when you're Warren Buffett. How? His company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has hundreds of billions of dollars invested in businesses that are continually working hard to make more money.
Some of the big bucks the legendary investor will make this year will come especially easily. Here's how Buffett is set to rake in nearly $6 billion in dividend income this year.
Five heavy lifters
Let's start with the five heavy lifters among Buffett's dividend stocks. Berkshire's second-largest holding, Bank of America (NYSE: BAC), is its biggest source of dividends. BofA should pay close to $909 million in dividends to Berkshire this year.
Apple (NASDAQ: AAPL) is Berkshire's biggest holding and makes up more than 47% of Berkshire's total portfolio. Although Apple's dividend yield of 0.56% is paltry, Buffett will still receive in the ballpark of $879 million in dividends from the tech company.
Chevron (NYSE: CVX) ranks as the sixth-largest holding in Berkshire's portfolio. Thanks to its juicy dividend, though, the oil and gas giant is the second-biggest source of dividends for Buffett. Chevron should fork over roughly $800 million in dividends to Berkshire this year.
Buffett has owned shares of Coca-Cola (NYSE: KO) for a long time. The stock continues to be one of his biggest income machines and should generate dividends of $736 million for Berkshire in 2023.
Berkshire owns such a huge stake in Kraft Heinz (NASDAQ: KHC) that the conglomerate includes Kraft Heinz in its list of subsidiaries. Kraft Heinz should contribute around $521 million in dividend income for Berkshire this year.
The rest of the bunch
The Wall Street Journal recently estimated that Berkshire's entire portfolio will pull in dividend income of roughly $5.7 billion this year. Buffett's top five dividend payers will generate combined dividend income for Berkshire of more than $3.8 billion in 2023. The nearly $2 billion in remaining dividends will come from two dozen or so other stocks in Berkshire's portfolio. Three of those stocks especially stand out.
Like Coca-Cola, American Express (NYSE: AXP) has been a longtime holding for Buffett. The financial services giant should provide dividend income of close to $364 million for Berkshire in 2023.
Buffett has become a big fan of Occidental Petroleum (NYSE: OXY) lately. The oil stock is on track to contribute around $152 million in dividend income for Berkshire this year.
Technology pioneer HP (NYSE: HPQ) ranks as another solid source of dividends for Buffett. The company should kick in roughly $127 million in dividend income for Berkshire in 2023.
An even brighter future
Berkshire's dividend income is likely to increase going forward. While Kraft Heinz cut its dividend a few years ago, it's definitely an outlier.
Bank of America has raised its dividend payouts by nearly 47% over the last five years. Apple and Chevron have increased their dividends by more than 30% during the same period. Coca-Cola is a Dividend King, with 61 consecutive years of dividend hikes. Each of these companies seems likely to continue increasing their dividends in the coming years.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is Berkshire's biggest holding and makes up more than 47% of Berkshire's total portfolio. The rest of the bunch The Wall Street Journal recently estimated that Berkshire's entire portfolio will pull in dividend income of roughly $5.7 billion this year. Technology pioneer HP (NYSE: HPQ) ranks as another solid source of dividends for Buffett.
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Apple (NASDAQ: AAPL) is Berkshire's biggest holding and makes up more than 47% of Berkshire's total portfolio. Kraft Heinz should contribute around $521 million in dividend income for Berkshire this year. American Express is an advertising partner of The Ascent, a Motley Fool company.
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Apple (NASDAQ: AAPL) is Berkshire's biggest holding and makes up more than 47% of Berkshire's total portfolio. Kraft Heinz should contribute around $521 million in dividend income for Berkshire this year. Buffett's top five dividend payers will generate combined dividend income for Berkshire of more than $3.8 billion in 2023.
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Apple (NASDAQ: AAPL) is Berkshire's biggest holding and makes up more than 47% of Berkshire's total portfolio. Kraft Heinz should contribute around $521 million in dividend income for Berkshire this year. The company should kick in roughly $127 million in dividend income for Berkshire in 2023.
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15813.0
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2023-05-17 00:00:00 UTC
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Is Unity Software Stock a Buy Now?
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https://www.nasdaq.com/articles/is-unity-software-stock-a-buy-now-2
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Unity Software (NYSE: U) took investors on a wild ride after its public debut in September 2020. The gaming company priced its initial public offering at $52, and its stock surged to an all-time high of $201.02 in November 2021 amid the buying frenzy in growth and meme stocks.
The bulls initially rushed to Unity because it was growing rapidly and its namesake game development engine was used to produce about half of the world's mobile, PC, and console games. It also locked in those developers with tools for monetizing their games through integrated ads, in-app purchases, and multiplayer features. Furthermore, on the company's fourth-quarter 2021earnings call Unity CEO John Riccitiello repeatedly claimed the company could grow its revenue by 30% annually over the "long term."
Image source: Getty Images.
But today, Unity's stock trades at about $30. The bulls retreated as its growth cooled off, Apple's privacy-oriented iOS changes rendered its advertising algorithms nearly useless, and it diluted its own shares with a $4.4 billion all-stock merger with the adtech company ironSource to address those existential advertising challenges.
At its peak, Unity's enterprise value bubbled to $56 billion -- or 40 times the revenue it would actually generate in 2022. But today, it has an enterprise value of $12 billion -- or 6 times the revenue it expects to generate in 2023. Does that lower valuation make Unity a worthwhile investment in this rough market for out-of-favor growth stocks?
What happened to Unity?
Unity's revenue rose 43% in 2020 and grew 44% in 2021. But in 2022, its revenue only climbed 25% to $1.39 billion as it grappled with the post-pandemic slowdown of the gaming market and Apple's ad-disrupting changes on iOS.
In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). It generated 63% of that revenue from its Grow Solutions, which include its advertising and monetization features. The other 37% came from its Create Solutions, which include its game development engine, Weta theatrical special effects division, and professional services (such as scanning digital twins of real-world objects) for nongaming markets.
During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue.
Has Unity reached an inflection point?
That's a bumpy start for the year, but Unity expects the growth of both the Grow and Create segments to reaccelerate throughout the rest of the year. It expects the combination of ironSource with Unity Ads to boost its market share and drive the growth of its Grow business. As for the Create business, it expects its acceleration to be driven by its recent price hikes, the increased adoption of digital twins across nongaming markets, and the recovery of the Chinese market.
Based on those factors, Unity expects its revenue to rise 3% to 9% on a pro forma basis in 2023. That organic revenue growth seems anemic, but it's also been aggressively cutting its costs with three rounds of layoffs over the past year. As a result, the company expects to generate $250 million to $300 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year -- which would represent its first positive annual adjusted EBITDA as a public company. It also reiterated its long-term goal of achieving a $1 billion adjusted EBITDA run rate by the end of 2024.
Unfortunately, Unity still isn't anywhere close to breaking even on a generally accepted accounting principles (GAAP) basis due to the stock-based compensation expenses that gobbled up nearly a third of its revenue in the first quarter. The company also faces stiff competition from similar game development engines like Epic Games' Unreal Engine, and its freemium model still seems to attract more low-quality "shovelware" developers than higher-value developers.
It's not cheap relative to its near-term growth
Unity's stock still isn't cheap at 6 times this year's sales and 45 times its adjusted EBITDA. Its merger with ironSource might stabilize its advertising business, but it still faces too many near-term headwinds to be considered a viable turnaround play. Investors should stay away from Unity unless its revenue growth actually accelerates on a pro forma basis.
10 stocks we like better than Unity Software
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of May 15, 2023
Leo Sun has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The other 37% came from its Create Solutions, which include its game development engine, Weta theatrical special effects division, and professional services (such as scanning digital twins of real-world objects) for nongaming markets. It expects the combination of ironSource with Unity Ads to boost its market share and drive the growth of its Grow business. Unfortunately, Unity still isn't anywhere close to breaking even on a generally accepted accounting principles (GAAP) basis due to the stock-based compensation expenses that gobbled up nearly a third of its revenue in the first quarter.
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In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. It's not cheap relative to its near-term growth Unity's stock still isn't cheap at 6 times this year's sales and 45 times its adjusted EBITDA.
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In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue.
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In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them!
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2023-05-17 00:00:00 UTC
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EXCLUSIVE-Telcos draw up proposal for charging Big Tech for EU 5G rollout
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https://www.nasdaq.com/articles/exclusive-telcos-draw-up-proposal-for-charging-big-tech-for-eu-5g-rollout
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By Supantha Mukherjee and Elvira Pollina
STOCKHOLM/MILAN, May 17 (Reuters) - Technology companies which account for more than 5% of a telecoms provider's peak average internet traffic should help pay for the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry.
The proposal is part of feedback to the European Commission which launched a consultation into the issue in February. The deadline for responses is Friday.
The document, which was reviewed by Reuters and has not been published, was compiled by lobbying groups GSMA and ETNO.
Their members include Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and Vodafone VOD.L.
Telecom operators have lobbied for years for leading technology companies to contribute to funding 5G and broadband roll-out, saying that they use a huge part of the region's internet traffic.
Alphabet's GOOGL.O Google, Apple AAPL.O, Meta META.O, Netflix NFLX., Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic.
"We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," GSMA said.
"Large traffic generators would only be those companies that account for more than 5% of an operator's yearly average busy hour traffic measured at the individual network level," the draft said.
(Reporting by Supantha Mukherjee in Stockholm and Elvira Pollina in Milan; Editing by Josephine Mason and Christina Fincher)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.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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Alphabet's GOOGL.O Google, Apple AAPL.O, Meta META.O, Netflix NFLX., Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic. Telecom operators have lobbied for years for leading technology companies to contribute to funding 5G and broadband roll-out, saying that they use a huge part of the region's internet traffic. "We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators’ networks, fall within the scope," GSMA said.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Meta META.O, Netflix NFLX., Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Technology companies which account for more than 5% of a telecoms provider's peak average internet traffic should help pay for the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. Telecom operators have lobbied for years for leading technology companies to contribute to funding 5G and broadband roll-out, saying that they use a huge part of the region's internet traffic.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Meta META.O, Netflix NFLX., Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Technology companies which account for more than 5% of a telecoms provider's peak average internet traffic should help pay for the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. Telecom operators have lobbied for years for leading technology companies to contribute to funding 5G and broadband roll-out, saying that they use a huge part of the region's internet traffic.
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Alphabet's GOOGL.O Google, Apple AAPL.O, Meta META.O, Netflix NFLX., Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic. By Supantha Mukherjee and Elvira Pollina STOCKHOLM/MILAN, May 17 (Reuters) - Technology companies which account for more than 5% of a telecoms provider's peak average internet traffic should help pay for the rollout of 5G and broadband across Europe, according to a draft proposal by the telecoms industry. The proposal is part of feedback to the European Commission which launched a consultation into the issue in February.
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2023-05-17 00:00:00 UTC
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At Cannes, independent film firms optimistic as streamers stumble
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https://www.nasdaq.com/articles/at-cannes-independent-film-firms-optimistic-as-streamers-stumble
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By Miranda Murray
CANNES, May 17 (Reuters) - Independent film companies facing a market upended by the entry of streaming services are showing some optimism heading into this year's Cannes Film Festival as the Netflix era has begun flattening out and audiences start trickling back into cinemas post-pandemic.
While buyers are being cautious about purchasing volumes amid a shaky global economy, they are showing up at festivals and being active - a trend that Todd Brown, head of international acquisitions at U.S.-based XYZ Films, said he expects to continue.
Cannes may make headlines for its glitz and glamour, but as the world's largest event for buying and selling movie rights, its importance to the industry is unparalleled.
Some 12,500 industry professionals involved in buying, selling or producing movies in some form show up at the market, where almost 4,000 films and projects are put on display and hundreds of millions of dollars' worth of deals are done.
Except for a handful of titles that will do well no matter what, the market is pretty competitive this year, said Laura Wilson, head of acquisitions at Britain-based Altitude Films.
"It doesn't feel like a buyers' or sellers' market," she said.
Both Brown and Wilson said they are betting on audiences returning to the cinema. "Ultimately, we are optimistic about theatrical," said Wilson.
AMC Entertainment Holdings Inc AMC.Nthis month reported positive quarterly results boosted by "The Super Mario Bros. Movie," and the world's largest cinema chain operator said it expected "The Little Mermaid", "Guardians of the Galaxy Vol. 3" and "Spider-Man: Across the Spider-Verse" to generate box-office sales for the rest of the year.
However, Brian O'Shea, CEO at The Exchange, based in Los Angeles, did not see as much cause for optimism in the numbers.
"The box office that is beneficial to independent film is depressed" as it is primarily older viewers, who wanted to avoid getting sick during the coronavirus pandemic, and have become used to watching movies from the comfort of home, he said.
"It's a transitional time on the business side as the traditional business model that independent buyers use sees lessened value," said O'Shea.
Global film companies like the Walt Disney Co DIS.N, Paramount PARA.O and Warner Bros WBD.O joined the streaming revolution to counter the threat posed by Netflix Inc NFLX.O to traditional TV but are now facing a crowded market where the competition to increase subscriber numbers is fierce.
"Everybody's been really focused on the shock impact of the streamer contraction ... but the other thing it does for traditional theatrical distribution is narrow the focus of what the streamers are doing and what kind of film they want to do and how they want to do them, so for everything else there's ... space for counterprogramming," Brown said.
The similarity among much of the content offered on streaming platforms leaves theatre audiences wanting something different, an unmet appetite that independent companies could fulfil, he said.
Proof of that argument is how well last year's "Triangle of Sadness" and "Joyland" did in Europe, and "Everything Everywhere All at Once" in the United States and worldwide. "Those are movies that are radically not streamer movies," said Brown.
However, in one sign that streamers are focusing more on cinema in a bid to stand out from the crowd, Apple Inc AAPL.O will premiere Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio at Cannes and has teamed up with Paramount to release the film in theatres before streaming it globally in October.
"Something good is happening, and I'm sure other streaming services will follow suit," Cannes Film Festival director Thierry Fremaux said in an interview with Le Film francais magazine in April.
(Reporting by Miranda Murray; editing by Jonathan Oatis)
((Miranda.Murray@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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However, in one sign that streamers are focusing more on cinema in a bid to stand out from the crowd, Apple Inc AAPL.O will premiere Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio at Cannes and has teamed up with Paramount to release the film in theatres before streaming it globally in October. AMC Entertainment Holdings Inc AMC.Nthis month reported positive quarterly results boosted by "The Super Mario Bros. Movie," and the world's largest cinema chain operator said it expected "The Little Mermaid", "Guardians of the Galaxy Vol. Global film companies like the Walt Disney Co DIS.N, Paramount PARA.O and Warner Bros WBD.O joined the streaming revolution to counter the threat posed by Netflix Inc NFLX.O to traditional TV but are now facing a crowded market where the competition to increase subscriber numbers is fierce.
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However, in one sign that streamers are focusing more on cinema in a bid to stand out from the crowd, Apple Inc AAPL.O will premiere Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio at Cannes and has teamed up with Paramount to release the film in theatres before streaming it globally in October. By Miranda Murray CANNES, May 17 (Reuters) - Independent film companies facing a market upended by the entry of streaming services are showing some optimism heading into this year's Cannes Film Festival as the Netflix era has begun flattening out and audiences start trickling back into cinemas post-pandemic. Cannes may make headlines for its glitz and glamour, but as the world's largest event for buying and selling movie rights, its importance to the industry is unparalleled.
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However, in one sign that streamers are focusing more on cinema in a bid to stand out from the crowd, Apple Inc AAPL.O will premiere Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio at Cannes and has teamed up with Paramount to release the film in theatres before streaming it globally in October. By Miranda Murray CANNES, May 17 (Reuters) - Independent film companies facing a market upended by the entry of streaming services are showing some optimism heading into this year's Cannes Film Festival as the Netflix era has begun flattening out and audiences start trickling back into cinemas post-pandemic. Global film companies like the Walt Disney Co DIS.N, Paramount PARA.O and Warner Bros WBD.O joined the streaming revolution to counter the threat posed by Netflix Inc NFLX.O to traditional TV but are now facing a crowded market where the competition to increase subscriber numbers is fierce.
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However, in one sign that streamers are focusing more on cinema in a bid to stand out from the crowd, Apple Inc AAPL.O will premiere Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio at Cannes and has teamed up with Paramount to release the film in theatres before streaming it globally in October. By Miranda Murray CANNES, May 17 (Reuters) - Independent film companies facing a market upended by the entry of streaming services are showing some optimism heading into this year's Cannes Film Festival as the Netflix era has begun flattening out and audiences start trickling back into cinemas post-pandemic. Cannes may make headlines for its glitz and glamour, but as the world's largest event for buying and selling movie rights, its importance to the industry is unparalleled.
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15816.0
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2023-05-17 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-5
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The virtual reality (VR) market has seen massive expansion since Meta Platforms acquired Oculus in 2014. The purchase led to advances in the technology and decreases in headset prices, making them accessible to the mass market. Interest in VR subsequently increased. However, companies still have a long way to go before VR is adopted by consumers on a more widespread basis, suggesting the industry is still in its infancy.
This sentiment aligns with data from GlobeNewswire, which states the virtual reality market hit $17 billion in 2022, and it's projected to expand at a compound annual growth rate of 45% through 2029. As a result, now is a compelling time to consider investing in the burgeoning industry before it's too late.
Here are two stocks to invest in virtual reality.
1. Apple
The VR market looks likely to receive another big boost with Apple (NASDAQ: AAPL) reportedly making moves to venture into the industry this year. The iPhone maker is expected to debut a brand-new headset in June, featuring virtual and augmented reality (AR) capabilities.
A Bloomberg piece from last month revealed the coming device would likely use an iOS-like interface to offer activities such as gaming, watching sports and other entertainment, reading, and more. Apple's long-term plans for the device are unclear, but some reports say the company hopes to eventually replace the iPhone with a future iteration of the AR/VR product.
Apple's step into the market is favorable for VR investors given the company's past success when entering new product categories. Smartphones, tablets, Bluetooth headphones, and smartwatches all saw consumer adoption skyrocket once Apple launched its own versions.
The biggest players in VR are currently Meta and Sony with their respective headsets. However, it's not out of the realm of possibility that Apple's immense brand loyalty could help it trounce the competition in the long term. As a result, an investment in Apple could be an investment in the future leader of VR.
Looking closer at its stock, Apple's price-to-earnings ratio of 29 makes it seem like a slightly expensive investment right now, as an optimal figure would be below 20. However, with share-price gains of about 267% since 2018 and 988% since 2013, the company is a reliable option likely to offer substantial returns over the long term, no matter its current position.
2. Nvidia
While it's wise to invest in the companies producing fully formed virtual reality headsets, it's also a good idea to consider backing businesses behind the chips that make the technology possible. Nvidia (NASDAQ: NVDA) has made a lot of waves this year for its growing position in artificial intelligence. However, the company also has promising prospects in VR thanks to its dominance in graphics processing units (GPUs), which are necessary for heavy VR workloads.
Nvidia has integrated VR-focused designs in its line of GeForce RTX GPUs, which are offered alongside its software developer kit called VRWorks. The kit is an excellent way for the company to attract developers to its chips by helping users create top-of-the-line VR programs.
Moreover, Nvidia held an 88% market share in consumer GPUs as of the third quarter of 2022, according to Jon Peddie Research. The company's massive presence in the industry could easily see it become the go-to for developers and consumers seeking VR-compatible hardware for their PCs.
Nvidia's stock soared around 94% in 2023 yet remains an attractive investment, with a forward PEG ratio of 0.4. The metric suggests projected growth has not been priced into its shares, making Nvidia an increasingly compelling way to invest in the VR market.
10 stocks we like better than Apple
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple The VR market looks likely to receive another big boost with Apple (NASDAQ: AAPL) reportedly making moves to venture into the industry this year. This sentiment aligns with data from GlobeNewswire, which states the virtual reality market hit $17 billion in 2022, and it's projected to expand at a compound annual growth rate of 45% through 2029. Nvidia While it's wise to invest in the companies producing fully formed virtual reality headsets, it's also a good idea to consider backing businesses behind the chips that make the technology possible.
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Apple The VR market looks likely to receive another big boost with Apple (NASDAQ: AAPL) reportedly making moves to venture into the industry this year. The virtual reality (VR) market has seen massive expansion since Meta Platforms acquired Oculus in 2014. The metric suggests projected growth has not been priced into its shares, making Nvidia an increasingly compelling way to invest in the VR market.
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Apple The VR market looks likely to receive another big boost with Apple (NASDAQ: AAPL) reportedly making moves to venture into the industry this year. The metric suggests projected growth has not been priced into its shares, making Nvidia an increasingly compelling way to invest in the VR market. See the 10 stocks *Stock Advisor returns as of May 8, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple The VR market looks likely to receive another big boost with Apple (NASDAQ: AAPL) reportedly making moves to venture into the industry this year. Here are two stocks to invest in virtual reality. The metric suggests projected growth has not been priced into its shares, making Nvidia an increasingly compelling way to invest in the VR market.
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15817.0
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2023-05-17 00:00:00 UTC
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Warren Buffett Just Offered 4 Billion Additional Reasons for Investors to Be Cautious
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https://www.nasdaq.com/articles/warren-buffett-just-offered-4-billion-additional-reasons-for-investors-to-be-cautious
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is truly in a league of his own when it comes to investing. Since taking over as CEO in 1965, he's overseen an aggregate return in his company's Class A shares (BRK.A) of nearly 4,000,000% as of May 14, 2023. On an annualized basis, as of Dec. 31, 2022, Berkshire Hathaway stock has doubled-up the total return, including dividends paid, of the broad-based S&P 500 (SNPINDEX: ^GSPC) over the past 58 years (19.8% vs. 9.9%).
Although the Oracle of Omaha is just as fallible as any other investor, this incredible track record earns him an audience of more than 30,000 people at Berkshire Hathaway's annual shareholder meeting in Omaha, Nebraska.
However, this vast audience of shareholders and investors, along with Wall Street, may not be thrilled with what they heard from Warren Buffett during the latest annual meeting.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett continues to be a net seller of stocks
To be upfront, Warren Buffett, Executive Vice Chairman Charlie Munger, and Berkshire's other key leaders set an optimistic tone about the U.S. economy and stock market over the long run during the company's recent annual meeting. Buffet has been quite clear to never bet against America.
But what the Oracle of Omaha preaches over the long run and what he does over shorter periods can sometimes be at odds.
For instance, look no further than Berkshire Hathaway's buying and selling activity since the start of October 2022. During the fourth quarter, Buffett and his investing lieutenants, Todd Combs and Ted Weschler, oversaw the purchase of $1.68 billion in equities and a whopping $16.32 billion in equity sales. That equates to $14.64 billion in net-equity sales in the December-ended quarter.
It was much of the same in the recently reported first quarter. Berkshire's quarterly filing showed $2.87 billion in equity-security purchases and $13.28 billion in equity-security sales, which work out to $10.41 billion in net-equity security sales.
And here's what Warren Buffett had to say during his latest annual shareholder meeting, just prior to the question-and-answer session:
So I show at the bottom what's happened with cash and treasury bills through March 31. And I will tell you that the -- in the month of April, we probably added about $7 billion to that factor. Now part of that is because we didn't buy as much stock because that reduces cash and treasury bills. We bought about $400 million worth of stock in the month of April. That's a minus in terms of cash available.
And we, however, sold net some stock, which produced maybe $4 billion. And of course, we had operating earnings, probably $2.5 billion or something in that area. And my guess is we probably increased our cash and treasury both $6 billion and $7 billion in the month.
In other words, Warren Buffett and his team look to have sold a net of $4 billion in equities during the month of April. That's 4 billion additional reasons, atop the $25 billion in net-equity sales between Oct. 1, 2022 and March 31, 2023, for investors to be cautious.
Twenty-nine billion dollars in net-equity sales since October suggest stocks aren't cheap
As noted, Warren Buffett strongly believes in the long-term success of America and views the stock market as one of the top wealth-creating tools on the planet. But after approximately $29 billion in net-equity sales spanning seven months, it's a pretty fair assumption that he and his investment team don't believe stocks are particularly cheap -- and there are certainly data points to back that up.
For example, the Shiller price-to-earnings (P/E) ratio, which is sometimes known as the cyclically adjusted P/E, or CAPE ratio, suggests stocks are pricey. The Shiller P/E is based on average inflation-adjusted earnings over the past 10 years.
S&P 500 Shiller CAPE Ratio data by YCharts.
Back-testing the Shiller P/E all the way to 1870 produces an average P/E ratio of 17. By comparison, the S&P Shiller P/E closed out this past week just shy of 29.
What's even more worrisome is what happens anytime the Shiller P/E ratio surpasses and holds above 30. In the five previous instances where this has occurred, the broad-based S&P 500 eventually went on to lose at least 20% of its value. For what it's worth, the Shiller P/E surpassed 30, once more, in early February 2023.
It's also getting increasingly difficult to find "wonderful companies at a fair price." Apple (NASDAQ: AAPL), which is Berkshire's largest investment holding by a substantial amount, is valued at 32 times Wall Street's consensus-earnings forecast for fiscal 2023. Subdued iPhone sales and the expectation of economic weakness have Wall Street projecting an 11% decline in Apple's full-year revenue in fiscal 2023.
It's a similar story with Coca-Cola (NYSE: KO), which is Berkshire's third-largest holding. Though Coca-Cola is an exceptionally safe stock with a top-tier marketing department and virtually unparalleled geographic diversity, prospective investors are paying 28 times trailing-12-month earnings and nearly 25 times forecast profits in 2023 to own shares of a company growing sales by a modest 4%. Keep in mind this 4% sales growth includes the benefit of above-average inflation.
Warren Buffett and his lieutenants want a good deal, and there simply aren't many to be found on Wall Street at the moment.
Image source: Getty Images.
Warren Buffett's long-term mindset is a winner
While one of Wall Street's most revered investors selling $29 billion in net equities since the start of October isn't encouraging, it's not a major cause for concern either -- if you share the same long-term mindset as the Oracle of Omaha.
In Warren Buffett's view, stock market corrections and bear markets are blessings in disguise. Since Berkshire Hathaway often takes a couple of quarters, or even years, to build positions in the companies it likes, a downtrodden market can be the perfect excuse to go shopping. There have been 39 double-digit percentage corrections in the S&P 500 since the beginning of 1950, meaning Berkshire's CEO has navigated his way through a downturn or two.
Additionally, as I noted earlier this week, Warren Buffett's penchant for pickiness has paid off in a big way. The Oracle of Omaha is willing to wait for a "fair price" before buying stakes in the companies he favors but isn't shy about piling in once he finds a business at a fair price that possesses a sustainable moat, well-known brand, and effective management team. It's precisely why companies like Apple, Bank of America, and Coca-Cola comprise well over half of Berkshire Hathaway's invested assets.
It also pays to be optimistic. Though bears have had their share of the spotlight, the S&P 500 has spent approximately 2.6 calendar days in a bull market for every 1 day spent in a bear market since the beginning of 1950.
This disproportionate optimism can be seen in stock returns, too. While this isn't to say short sellers can't profit, there hasn't been a single 20-year rolling period, backdated to 1900, when the S&P 500 wouldn't have generated a positive total return, including dividends, for investors. Put another way, if you were to have purchased an S&P 500 tracking index at any point since the beginning of 1900 and held that position for 20 years, you made money. It's why the Oracle of Omaha suggests everyday investors purchase index funds, and it perfectly explains why he's so bullish on America over the long run.
Warren Buffett's actions may not always match his words in the short term, but that's never been an issue over longer periods.
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*Stock Advisor returns as of May 8, 2023
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 (NASDAQ: AAPL), which is Berkshire's largest investment holding by a substantial amount, is valued at 32 times Wall Street's consensus-earnings forecast for fiscal 2023. And here's what Warren Buffett had to say during his latest annual shareholder meeting, just prior to the question-and-answer session: So I show at the bottom what's happened with cash and treasury bills through March 31. But after approximately $29 billion in net-equity sales spanning seven months, it's a pretty fair assumption that he and his investment team don't believe stocks are particularly cheap -- and there are certainly data points to back that up.
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Apple (NASDAQ: AAPL), which is Berkshire's largest investment holding by a substantial amount, is valued at 32 times Wall Street's consensus-earnings forecast for fiscal 2023. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is truly in a league of his own when it comes to investing. Twenty-nine billion dollars in net-equity sales since October suggest stocks aren't cheap As noted, Warren Buffett strongly believes in the long-term success of America and views the stock market as one of the top wealth-creating tools on the planet.
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Apple (NASDAQ: AAPL), which is Berkshire's largest investment holding by a substantial amount, is valued at 32 times Wall Street's consensus-earnings forecast for fiscal 2023. Warren Buffett continues to be a net seller of stocks To be upfront, Warren Buffett, Executive Vice Chairman Charlie Munger, and Berkshire's other key leaders set an optimistic tone about the U.S. economy and stock market over the long run during the company's recent annual meeting. Berkshire's quarterly filing showed $2.87 billion in equity-security purchases and $13.28 billion in equity-security sales, which work out to $10.41 billion in net-equity security sales.
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Apple (NASDAQ: AAPL), which is Berkshire's largest investment holding by a substantial amount, is valued at 32 times Wall Street's consensus-earnings forecast for fiscal 2023. Berkshire Hathaway CEO Warren Buffett. And my guess is we probably increased our cash and treasury both $6 billion and $7 billion in the month.
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2023-05-17 00:00:00 UTC
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STMicroelectronics, NetEase, HP Enterprise: Undervalued Techs?
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https://www.nasdaq.com/articles/stmicroelectronics-netease-hp-enterprise%3A-undervalued-techs
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Whether you believe markets are always efficient, or whether you believe some stocks are mispriced, you undoubtedly want to buy low and sell high.
Some stocks are considered mispriced if they are undervalued, relative to their intrinsic value. Typically, value sectors include utilities, industrials, consumer staples, and healthcare. Tech isn’t typically in that list, but STMicroelectronics NV (NYSE: STM), NetEase Inc. (NASDAQ: NTES) and Hewlett Packard Enterprise Co. (NYSE: HPE) appear to be trading below the present value of expected free cash flows, or what’s left after operating expenses and capital expenditures.
Other metrics that can indicate a stock is undervalued include price-to-earnings, price-to-sales and price-to-book ratios. It also helps to evaluate a stock’s ratios relative to its industry peers. For example, techs historically have higher P/Es than utilities or manufacturing.
Here’s a look at three stocks that may be bargain-priced, compared with their potential.
STMicroelectronics
STMicrolectronics analyst ratings show a consensus of “moderate buy” with a price target of $53.50, an upside of 25.91%.
Free cash flow has been growing; over the past 12 months, it was $1.71 billion.
The company topped both earnings and revenue views in the past six quarters, as STMicroelectronics earnings data show. In its most recent quarterly report, the maker of microcontrollers, microprocessors, and other semiconductor products grew earnings by 39% and sales by 20%.
The STMicroelectronics chart shows that shares skidded recently, on worries about weak guidance. However, the company supplies a diverse range of customers, and even slower growth in the near term is likely to be temporary.
In 2022 its largest customer, Apple Inc. (NASDAQ: AAPL), accounted for 16.8% of total revenue. Other significant customers include HP Inc. (NYSE: HPQ), Mobileye Global Inc. (NASDAQ: MBLY), and Tesla Inc. (NASDAQ: TSLA).
NetEase
Chinese game developer NetEase may be undervalued for several reasons. The NetEase chart shows the stock trading below resistance at $94.99. Price appreciation has been uneven, with the stock returning 4.38% in the past six months and 24.12% year-to-date, but declining by 1.29% on a one-year basis.
Revenue growth has been declining, and earnings growth along with it, but NetEase analyst ratings show a consensus of “buy,” with a price target of $108.80, an upside of 21.37%.
Analysts are upbeat about the company’s slate of games. Not only does it own some of the most popular multiplayer titles in China, but it also collaborating with Western game companies including Activision Blizzard Inc. (NASDAQ: ATVI) and Microsoft Corp. (NASDAQ: MSFT).
Free cash flow was $25.07 billion in the past 12 months. That number has grown over the past three years. Its price-to-earnings ratio is 4, well below the higher rates you expect to see in a growing industry like gaming. For example, Activision’s P/E ratio is 26.
HP Enterprise
This company offers hardware, software, and services for businesses. Its offerings include servers, storage solutions, networking equipment, cloud computing services, and cybersecurity solutions. It originated when the Hewlett-Packard Company split into two entities in 2015.
When compared to industry peers, such as International Business Machines (NYSE: IBM), Infosys Ltd. (NYSE: INFY), and Accenture Plc (NYSE: ACN), HPE's valuation metrics, such as P/E ratio or price-to-sales and price-to-book ratios, are lower.
This could indicate that the stock is undervalued compared to similar companies in the enterprise technology sector.
Both sales and earnings growth accelerated in the past two quarters, and Wall Street expects low single-digit earnings increases this year and next.
Hewlett Packard Enterprise analyst ratings show a consensus of “hold,” with a price target of $16.85, an upside of 19.99%. The company reports second-quarter results on May 30, after the market’s close. Analysts expect the company to earn $0.30 a share on revenue of $7.32 billion.
The views and 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 2022 its largest customer, Apple Inc. (NASDAQ: AAPL), accounted for 16.8% of total revenue. STMicroelectronics STMicrolectronics analyst ratings show a consensus of “moderate buy” with a price target of $53.50, an upside of 25.91%. In its most recent quarterly report, the maker of microcontrollers, microprocessors, and other semiconductor products grew earnings by 39% and sales by 20%.
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In 2022 its largest customer, Apple Inc. (NASDAQ: AAPL), accounted for 16.8% of total revenue. Tech isn’t typically in that list, but STMicroelectronics NV (NYSE: STM), NetEase Inc. (NASDAQ: NTES) and Hewlett Packard Enterprise Co. (NYSE: HPE) appear to be trading below the present value of expected free cash flows, or what’s left after operating expenses and capital expenditures. Other metrics that can indicate a stock is undervalued include price-to-earnings, price-to-sales and price-to-book ratios.
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In 2022 its largest customer, Apple Inc. (NASDAQ: AAPL), accounted for 16.8% of total revenue. Tech isn’t typically in that list, but STMicroelectronics NV (NYSE: STM), NetEase Inc. (NASDAQ: NTES) and Hewlett Packard Enterprise Co. (NYSE: HPE) appear to be trading below the present value of expected free cash flows, or what’s left after operating expenses and capital expenditures. The company topped both earnings and revenue views in the past six quarters, as STMicroelectronics earnings data show.
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In 2022 its largest customer, Apple Inc. (NASDAQ: AAPL), accounted for 16.8% of total revenue. Revenue growth has been declining, and earnings growth along with it, but NetEase analyst ratings show a consensus of “buy,” with a price target of $108.80, an upside of 21.37%. This could indicate that the stock is undervalued compared to similar companies in the enterprise technology sector.
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2023-05-17 00:00:00 UTC
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Should You Invest in the iShares U.S. Technology ETF (IYW)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-technology-etf-iyw-7
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Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on 05/15/2000.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $10.89 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.
The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 83.50% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 64.16% of total assets under management.
Performance and Risk
The ETF return is roughly 28.02% and is up about 11.97% so far this year and in the past one year (as of 05/17/2023), respectively. IYW has traded between $70.72 and $95.26 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 27.62% for the trailing three-year period, making it a medium risk choice in the space. With about 144 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IYW is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $43.68 billion in assets, Vanguard Information Technology ETF has $46.56 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Technology ETF (IYW): ETF Research Reports
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
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports 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 Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports 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 Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports 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 Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports 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 Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on 05/15/2000.
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15820.0
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2023-05-17 00:00:00 UTC
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Bull vs. Bear: Playing Earnings Season With Single-Stock ETFs
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AAPL
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https://www.nasdaq.com/articles/bull-vs.-bear%3A-playing-earnings-season-with-single-stock-etfs
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nan
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nan
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Bull vs. Bear is a weekly feature where the VettaFi writers’ room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs. Bear, James Comtois and Elle Caruso discussed the pros and cons of using single-stock ETFs to express opinions on stock earnings.
James Comtois, staff writer, VettaFi: Ahoy, Elle! We’re soon approaching the first anniversary of AXS Investments launching the first single-stock ETFs. And with earnings season upon us, I think it’s high time we looked under the hood of this (relatively) new investment option.
Leveraged and inverse single-stock ETFs can allow short-term tactical investors to express an opinion on volatile stocks of high-profile companies (looking at you, Tesla (TSLA)). This makes these funds particularly appealing during earnings season when the market reacts to a company’s publicly released figures.
But they’re not just appealing during earnings: the current volatile investment environment is ripe for short-term tactical trading opportunities. Take, for example, inverse ETFs. So far this year, investors have pumped $5.8 billion into inverse ETFs. That’s roughly a quarter of inverse funds’ total assets at the start of 2023.
However, as bullish as I am on single-stock ETFs, these are not intended to be long-term holdings. I actually cannot stress this enough. Even issuers of these ETFs argue that they’re designed to be short-term trading tools for sophisticated traders.
Do Single-Stock ETFs Add to Concentration Risk?
Elle Caruso, staff writer, VettaFi: Hi, James! It's a great time to discuss single-stock ETFs as earnings season wraps up and mega caps largely reported better-than-expected numbers. Here’s the thing, though: I’m quite skeptical of these instruments.
I want to start by taking a holistic look at portfolio composition right now. By and large, U.S. portfolios are largely biased toward domestic large-cap stocks. Therefore, U.S. investors are currently facing concentration risk near an all-time high. Apple (AAPL) and Microsoft (MSFT) comprise over 14% of the S&P 500 by weight, the highest level on record for two stocks in the benchmark.
Many portfolios are already overweight the mega-cap names available in single-stock ETFs, and therefore I oppose the idea of increasing a portfolio’s concentration risk further – then adding leveraged/inverse exposure on top.
While these ETFs can be used as a tactical play, it’s imperative investors first consider their total exposure to a security. That means looking under the hood at the other fund exposures in their portfolios. I would expect this may give them pause.
Truly Outsized Returns in Response to Stock Earnings
Comtois: I totally understand the skepticism, Elle. Because you’re right: these funds can be very, very risky. Again, these instruments are designed for traders who understand the risks involved.
But big risks can sometimes yield big rewards. And these single-stock ETFs have an ace up their sleeve that makes them potentially very rewarding: leverage. The leverage used in these funds can amplify the daily exposure of individual stocks, which allows investors to augment potential returns.
Consider the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of Apple (AAPL). The day after the tech giant reported its second-fiscal quarter earnings, AAPU outperformed AAPL by 233 basis points.
[caption id="attachment_518287" align="aligncenter" width="625"] After Apple reported Q2 earnings, AAPU outperformed AAPL by 233 basis points.[/caption]
Now let’s check out an example of a bear fund. The AXS TSLA Bear Daily ETF (TSLQ) provides leveraged short (“bear”) daily exposure to Tesla. Days after the EV company released its Q1 figures, TSLQ returned more than 16%. Meanwhile, Tesla’s stock dropped by more than 14% during that period.
[caption id="attachment_518288" align="aligncenter" width="625"] Tesla’s stock dropped by more than 14% post-earnings, but TSLQ rose 16%.[/caption]
So, clearly, there’s the potential to deliver truly some outsized returns. Provided a.) you time it right, and b.) your conviction is right.
Buy-and-Hold Returns vs. Spikes After Stock Earnings
Caruso: James, you bring up some great use cases for AAPU and TSLQ. However, in both cases, investors would be better rewarded by buying and holding the security for a longer period.
Apple and Tesla have rallied 33% and 35% year to date as of May 15, well outperforming the short-term spike seen after reporting better-than-expected first-quarter earnings.
[caption id="attachment_518290" align="aligncenter" width="625"] As of May 15, Apple and Tesla have rallied 33% and 35% year to date, well out-performing their short-term earnings bump.[/caption]
Setting aside concentration risk, if an investor wanted to express a favorable opinion on Apple, I would instead recommend a fund like the Fidelity MSCI Information Technology Index ETF (FTEC) or the iShares Global Tech ETF (IXN), which gives Apple a weight over 23%. FTEC charges just 8 basis points, while AAPU and TSLQ each charge over 100 basis points, which erodes any positive returns anyway!
The Beauty of ETFs
Comtois: Pricing is absolutely an issue. But I should note that ETFs are still a very cost-efficient way to engage in this type of trading. In fact, that brings me to my third point. Single-stock ETFs provide retail investors access to this space without needing excessive knowledge of futures or derivatives markets.
Remember when I argued these instruments are designed for sophisticated traders? That may have been an overstatement. This type of investing, while complicated, is far less complex when accessed via the ETF wrapper. As we know, that’s the beauty of ETFs: their ease of use, regardless of the strategy.
ETFs are a better option than just buying the stock outright or buying futures on the stock. They’re easier to get leverage with than through the derivatives or futures markets. Investors don’t need to open a futures account with an ETF.
Things Can Go South for Investors in Single-Stock ETFs, Quickly
Caruso: I’m all for the democratization of investment products. However, it should not be understated how challenging it can be for even investment professionals to correctly predict in which direction a security will move. But that’s exactly what you have to do with single-stock ETFs. Investors need to be correct in choosing a leveraged or inverse product, or else they will see magnified losses.
In choppy markets where there is a lot of uncertainty and a security has no clear trend, single-stock ETFs’ daily reset will magnify tiny movements in the stock. This can quickly eat away at returns. Single-stock ETFs’ returns have the potential to diverge significantly from the performance of the underlying stock, especially if being held for longer than a single day, due to the effects of compounding and daily resets.
James, you’ve made a good case, but ultimately, I’m not sold on using these products to express opinions on earnings. Maybe I would feel differently if I had a crystal ball and could accurately predict a stock’s movement, but as of now, it’s all just based on speculation.
Understand the Risks
Comtois: You have made a very compelling case for why to be quite cautious with these funds, Elle. They’re very speculative, which is one of the reasons why I agree they’re not for everyone.
That said, while designed for high-conviction investors who can monitor their positions daily, single-stock ETFs can be a useful short-term tactical vehicle. If you have a strong opinion about how a particular mega-cap stock will move after it releases its quarterly earnings, they may be worth considering. Just remember these are not meant to be held over long periods and are best used by investors who understand the higher risks.
Until next time, Elle!
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) and Microsoft (MSFT) comprise over 14% of the S&P 500 by weight, the highest level on record for two stocks in the benchmark. Consider the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of Apple (AAPL). The day after the tech giant reported its second-fiscal quarter earnings, AAPU outperformed AAPL by 233 basis points.
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[caption id="attachment_518287" align="aligncenter" width="625"] After Apple reported Q2 earnings, AAPU outperformed AAPL by 233 basis points. Apple (AAPL) and Microsoft (MSFT) comprise over 14% of the S&P 500 by weight, the highest level on record for two stocks in the benchmark. Consider the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of Apple (AAPL).
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Apple (AAPL) and Microsoft (MSFT) comprise over 14% of the S&P 500 by weight, the highest level on record for two stocks in the benchmark. Consider the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of Apple (AAPL). The day after the tech giant reported its second-fiscal quarter earnings, AAPU outperformed AAPL by 233 basis points.
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Apple (AAPL) and Microsoft (MSFT) comprise over 14% of the S&P 500 by weight, the highest level on record for two stocks in the benchmark. Consider the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of Apple (AAPL). The day after the tech giant reported its second-fiscal quarter earnings, AAPU outperformed AAPL by 233 basis points.
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15821.0
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2023-05-17 00:00:00 UTC
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DOJ Charges Former Apple Employee With Stealing Autonomous Car Tech
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AAPL
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https://www.nasdaq.com/articles/doj-charges-former-apple-employee-with-stealing-autonomous-car-tech
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nan
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nan
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(RTTNews) - The U.S. Department of Justice has charged a former Apple software engineer with stealing the tech major's autonomous technology for an unnamed Chinese self-driving car company.
Weibao Wang, who worked at Apple from 2016 to 2018, was charged with six counts of theft or attempted theft by prosecutors. He is found to have stolen the entire Project source code on Apple's autonomous technology, which can be used to develop and build self-driving cars, for a Chinese company with which he was in agreement for work.
Wang fled the country to China the same day his home was searched by law enforcement.
As per the DOJ indictment, WANG signed Apple's Confidentiality and Intellectual Property Agreement or IPA in late 2015 and joined Apple in 2016 as a software engineer on the autonomous systems project. Around April 2018, he was one of the around 2,700 of Apple's over 135,000 full time employees to have had access to one or more of the Databases of the autonomous tech project.
In mid April 2018, he resigned from the company without indicating what he planned to do after leaving Apple and where he was going to work.
The DOJ found that without the knowledge of Apple, on or about November 22, 2017, more than four months prior to his resignation email, WANG signed a letter accepting an offer of full-time employment as a Staff Engineer with the U.S.-based subsidiary of a Chinese company working to develop self-driving cars.
In or around May 2018, Apple identified WANG as having accessed large amounts of sensitive Project information in the days leading up to his departure from Apple.
Following this, law enforcement searched Wang's home in California on June 27, 2018, and seized various devices that contained large quantities of data taken from Apple and various confidential and proprietary materials from the Project.
Though he was present at the search and told agents that he had no plans to travel, later on the same day, he traveled from San Francisco International Airport to Guangzhou, China.
Among the materials recovered was the entire Project source code, as it existed at the time surrounding WANG's departure from Apple.
In the indictment, Wang has been charged with six counts involving the theft or attempted theft. These included Apple's entire autonomy source code, tracking for an autonomous system, behavior planning for autonomous systems, descriptions of the hardware that was behind the systems, and motion planner for an autonomous system .
According U.S. Attorney for the Northern District of California Ismail Ramsey, Wang is in China, and if extradited and convicted, would face 10 years in prison for each count.
Wang joins with two other former Apple employees who are accused of stealing autonomous trade secrets for China.
Xiaolang Zhang, who also worked at Apple's autonomous division at the same time as Wang and left employment in 2018, pleaded guilty in San Jose federal court to a similar theft involving trade secrets in Apple's car division.
Jizhong Chen, another Apple employee, is also facing federal charges over his alleged 2019 theft of sensitive information, and the case is proceeding in California federal court.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He is found to have stolen the entire Project source code on Apple's autonomous technology, which can be used to develop and build self-driving cars, for a Chinese company with which he was in agreement for work. The DOJ found that without the knowledge of Apple, on or about November 22, 2017, more than four months prior to his resignation email, WANG signed a letter accepting an offer of full-time employment as a Staff Engineer with the U.S.-based subsidiary of a Chinese company working to develop self-driving cars. Following this, law enforcement searched Wang's home in California on June 27, 2018, and seized various devices that contained large quantities of data taken from Apple and various confidential and proprietary materials from the Project.
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(RTTNews) - The U.S. Department of Justice has charged a former Apple software engineer with stealing the tech major's autonomous technology for an unnamed Chinese self-driving car company. He is found to have stolen the entire Project source code on Apple's autonomous technology, which can be used to develop and build self-driving cars, for a Chinese company with which he was in agreement for work. Xiaolang Zhang, who also worked at Apple's autonomous division at the same time as Wang and left employment in 2018, pleaded guilty in San Jose federal court to a similar theft involving trade secrets in Apple's car division.
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As per the DOJ indictment, WANG signed Apple's Confidentiality and Intellectual Property Agreement or IPA in late 2015 and joined Apple in 2016 as a software engineer on the autonomous systems project. These included Apple's entire autonomy source code, tracking for an autonomous system, behavior planning for autonomous systems, descriptions of the hardware that was behind the systems, and motion planner for an autonomous system . Xiaolang Zhang, who also worked at Apple's autonomous division at the same time as Wang and left employment in 2018, pleaded guilty in San Jose federal court to a similar theft involving trade secrets in Apple's car division.
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As per the DOJ indictment, WANG signed Apple's Confidentiality and Intellectual Property Agreement or IPA in late 2015 and joined Apple in 2016 as a software engineer on the autonomous systems project. Around April 2018, he was one of the around 2,700 of Apple's over 135,000 full time employees to have had access to one or more of the Databases of the autonomous tech project. Among the materials recovered was the entire Project source code, as it existed at the time surrounding WANG's departure from Apple.
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15822.0
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2023-05-17 00:00:00 UTC
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Tech Giants Embrace Stock Buybacks: Its Impact on ETFs
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AAPL
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https://www.nasdaq.com/articles/tech-giants-embrace-stock-buybacks%3A-its-impact-on-etfs
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nan
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nan
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Share repurchases, or stock buybacks, have become increasingly prevalent in tech companies' earnings this year. According to Cornell University assistant professor Nick Guest, buybacks don't create or destroy a lot of wealth. Instead, they serve as an opportunity for management to signal their belief that the stock is undervalued, as quoted on Yahoo Finance.
Some of the biggest buyback announcements this year came from tech giants such as Alphabet (GOOG, GOOGL), Apple AAPL, and Meta Platforms META, formerly known as Facebook.
Understanding the Criticisms and Data
Critics argue that buybacks can be used to manipulate share prices, contribute to excessive executive compensation, and limit cash available for investment opportunities, thereby sacrificing growth and profitability. However, Guest's research comparing companies that repurchase shares with those that don't has found no significant evidence supporting these criticisms.
Major Tech Buybacks: Google and Apple
Recent buyback announcements from Alphabet and Apple, amounting to $70 billion and $90 billion respectively, have drawn significant attention. While these figures may appear large, they represent only 5.2% of Google's market cap, making them relatively moderate when adjusted for market-wide comparisons.
Why Companies Choose Buybacks
Share repurchases, or buybacks, are when a company uses its cash to buy back some of its outstanding shares from the market. This reduces the number of shares in circulation, which increases the ownership stake of existing shareholders and boosts the earnings per share (EPS) ratio.
Guest suggests that stock buybacks offer more flexibility than dividends, as they can be temporarily cut during downtime and reduce the potential for cash misuse on management's pet projects. Additionally, repurchased shares can be used to compensate employees, offering benefits other than improving long-term profitability or creating additional investment opportunities.
Ideal Conditions for Buybacks
Along with Ali Ragih, a VerityData analyst, we also believe that the best time for buybacks is when the company's valuation is low, as they get the most value for their buyback. For example, if Google spends $15 billion on buybacks, a lower stock price would yield more shares for the same dollar value. Companies with high free cash flow and limited investment opportunities, like Alphabet, are well-positioned for buybacks.
Tech Leads Buybacks Most of the Time
We all know that the tech shares were battered massively last year due to rising rates and their valuations got corrected. This opened up opportunities for them to go for solid buybacks this year. According to a recent report by S&P Dow Jones Indices, tech companies accounted for 28.8% of all buybacks in the third quarter quarter of 2022 versus Q2 2022's 32.8% and Q3 2021's 28.2%.
Which ETFs Can Benefit From Tech Buybacks?
There are several ETFs that track indices that focus on companies with high buyback rates. Here are four examples:
Invesco QQQ Trust (QQQ)
This is one of the most popular and liquid ETFs in the market. For instance, Apple, Microsoft (MSFT), and Alphabet, which are among the top holdings of QQQ.
Vanguard Information Technology ETF VGT
This ETF also has exposure to some of the biggest buyback achievers in the tech sector, such as Apple, Microsoft and Cisco Systems (CSCO).
Invesco BuyBack Achievers ETF (PKW)
The NASDAQ US BuyBack Achievers Index comprises of US securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. The fund charges 61 bps in fees.
Any Caveat?
With increasing backlash against buybacks, shareholders may see fewer of them in the future if disincentives increase or restrictions are imposed. In his State of the Union Address in early 2023, U.S. President Joe Biden will urge Congress to pass a 20% minimum tax on billionaires and increase the new 1% tax on corporate stock buybacks to 4%, the White House said.
This could lead to firms retaining cash or switching to dividends, which may have negative consequences, such as higher taxes on dividends compared to repurchases that generate capital gains.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Invesco BuyBack Achievers ETF (PKW): ETF Research Reports
Vanguard Information Technology ETF (VGT): 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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Some of the biggest buyback announcements this year came from tech giants such as Alphabet (GOOG, GOOGL), Apple AAPL, and Meta Platforms META, formerly known as Facebook. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco BuyBack Achievers ETF (PKW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. According to Cornell University assistant professor Nick Guest, buybacks don't create or destroy a lot of wealth.
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Some of the biggest buyback announcements this year came from tech giants such as Alphabet (GOOG, GOOGL), Apple AAPL, and Meta Platforms META, formerly known as Facebook. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco BuyBack Achievers ETF (PKW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Major Tech Buybacks: Google and Apple Recent buyback announcements from Alphabet and Apple, amounting to $70 billion and $90 billion respectively, have drawn significant attention.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco BuyBack Achievers ETF (PKW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Some of the biggest buyback announcements this year came from tech giants such as Alphabet (GOOG, GOOGL), Apple AAPL, and Meta Platforms META, formerly known as Facebook. Why Companies Choose Buybacks Share repurchases, or buybacks, are when a company uses its cash to buy back some of its outstanding shares from the market.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco BuyBack Achievers ETF (PKW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Some of the biggest buyback announcements this year came from tech giants such as Alphabet (GOOG, GOOGL), Apple AAPL, and Meta Platforms META, formerly known as Facebook. Share repurchases, or stock buybacks, have become increasingly prevalent in tech companies' earnings this year.
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15823.0
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2023-05-16 00:00:00 UTC
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Tesla to meet Indian officials this week - source
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AAPL
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https://www.nasdaq.com/articles/tesla-to-meet-indian-officials-this-week-source
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nan
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nan
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By Aditya Kalra and Aditi Shah
NEW DELHI, May 16 (Reuters) - Senior Tesla Inc TSLA.O executives will meet Indian government officials on Wednesday and Thursday to discuss local procurement of parts and other issues, a source with direct knowledge of the matter told Reuters.
The electric carmaker's renewed interest in India comes nearly a year after it put on hold plans to sell cars in the country after failing to secure lower import taxes, which its CEO Elon Musk said are among the highest in the world.
Tesla and an Indian government spokesperson did not immediately respond to a request for comment.
Tesla wanted lower tariffs to be able to test the local market with cars imported from the U.S. and China, but the Indian government wanted it to commit to manufacturing locally before cutting import taxes on cars that can run as high as 100%.
The electric carmaker had hired a local team and begun a search for showroom space, but that was also abandoned last year.
Local sourcing aligns with Modi's pitch to attract manufacturers with his "Make in India" campaign, especially as companies look to diversify their supply chains beyond China.
The meeting comes weeks ahead of Prime Minister Narendra Modi's visit to the United States in June. Bloomberg News first reported the meeting plan.
(Reporting by Aditya Kalra; Additional reporting by Aditi Shah; Editing by Jan Harvey)
((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
The views and 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 electric carmaker's renewed interest in India comes nearly a year after it put on hold plans to sell cars in the country after failing to secure lower import taxes, which its CEO Elon Musk said are among the highest in the world. Local sourcing aligns with Modi's pitch to attract manufacturers with his "Make in India" campaign, especially as companies look to diversify their supply chains beyond China. The meeting comes weeks ahead of Prime Minister Narendra Modi's visit to the United States in June.
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By Aditya Kalra and Aditi Shah NEW DELHI, May 16 (Reuters) - Senior Tesla Inc TSLA.O executives will meet Indian government officials on Wednesday and Thursday to discuss local procurement of parts and other issues, a source with direct knowledge of the matter told Reuters. Tesla wanted lower tariffs to be able to test the local market with cars imported from the U.S. and China, but the Indian government wanted it to commit to manufacturing locally before cutting import taxes on cars that can run as high as 100%. (Reporting by Aditya Kalra; Additional reporting by Aditi Shah; Editing by Jan Harvey) ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Aditya Kalra and Aditi Shah NEW DELHI, May 16 (Reuters) - Senior Tesla Inc TSLA.O executives will meet Indian government officials on Wednesday and Thursday to discuss local procurement of parts and other issues, a source with direct knowledge of the matter told Reuters. Tesla wanted lower tariffs to be able to test the local market with cars imported from the U.S. and China, but the Indian government wanted it to commit to manufacturing locally before cutting import taxes on cars that can run as high as 100%. (Reporting by Aditya Kalra; Additional reporting by Aditi Shah; Editing by Jan Harvey) ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays)) The views and 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 electric carmaker's renewed interest in India comes nearly a year after it put on hold plans to sell cars in the country after failing to secure lower import taxes, which its CEO Elon Musk said are among the highest in the world. Tesla and an Indian government spokesperson did not immediately respond to a request for comment. (Reporting by Aditya Kalra; Additional reporting by Aditi Shah; Editing by Jan Harvey) ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15824.0
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2023-05-16 00:00:00 UTC
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Pre-Market Most Active for May 16, 2023 : SQQQ, APLD, HZNP, AAPL, FUTU, MRVL, AGL, NU, SE, HD, CL, AI
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-16-2023-%3A-sqqq-apld-hznp-aapl-futu-mrvl-agl-nu-se-hd-cl-ai
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -18.87 to 13,394.64. The total Pre-Market volume is currently 25,120,169 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $27.95, with 1,833,307 shares traded. This represents a .54% increase from its 52 Week Low.
Applied Digital Corporation (APLD) is +1.275 at $4.69, with 1,816,264 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
Horizon Therapeutics Public Limited Company (HZNP) is -20.25 at $92.00, with 1,704,565 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 $1.6. HZNP's current last sale is 78.97% of the target price of $116.5.
Apple Inc. (AAPL) is -0.07 at $172.00, with 1,566,401 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".
Futu Holdings Limited (FUTU) is -4.05 at $39.10, with 1,558,667 shares traded. FUTU's current last sale is 77.35% of the target price of $50.55.
Marvell Technology, Inc. (MRVL) is -0.08 at $41.99, with 1,530,973 shares traded. As reported by Zacks, the current mean recommendation for MRVL is in the "buy range".
agilon health, inc. (AGL) is -1.05 at $22.76, with 1,070,942 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 $-0.08. As reported by Zacks, the current mean recommendation for AGL is in the "buy range".
Nu Holdings Ltd. (NU) is +0.34 at $6.43, with 1,013,611 shares traded., following a 52-week high recorded in prior regular session.
Sea Limited (SE) is -5.34 at $82.73, with 686,820 shares traded. As reported by Zacks, the current mean recommendation for SE is in the "buy range".
Home Depot, Inc. (The) (HD) is -7.19 at $281.35, with 536,168 shares traded. As reported by Zacks, the current mean recommendation for HD is in the "buy range".
Colgate-Palmolive Company (CL) is +0.12 at $81.20, with 533,174 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.75. As reported by Zacks, the current mean recommendation for CL is in the "buy range".
C3.ai, Inc. (AI) is -0.47 at $23.50, with 503,089 shares traded. AI's current last sale is 146.88% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Apple Inc. (AAPL) is -0.07 at $172.00, with 1,566,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Apple Inc. (AAPL) is -0.07 at $172.00, with 1,566,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Apple Inc. (AAPL) is -0.07 at $172.00, with 1,566,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is -0.07 at $172.00, with 1,566,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -18.87 to 13,394.64.
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15825.0
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2023-05-16 00:00:00 UTC
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Don’t Panic. 3 Defensive Stocks to Diversify Into ASAP
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AAPL
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https://www.nasdaq.com/articles/dont-panic.-3-defensive-stocks-to-diversify-into-asap
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors seeking to preserve their capital are increasingly turning to defensive stocks amidst the volatility. These stocks have defensive qualities and the potential to grow dividends, supported by strong free cash flow. While they may not be exciting, defensive stocks have a proven track record of profitability and growth, even in challenging economic conditions.
They continuously produce high levels of revenue and cash flow profits, have generally fair price-to-earnings percentages, and offer tempting dividend payouts. As such, defensive stocks can be an excellent choice for long-term investors seeking stability and reliable returns. Accordingly, here’s a list of my top three recommendations for long-term value traders looking to get defensive right now.
KO Coca-Cola $63.22
AAPL Apple $172.07
JNJ Johnson & Johnson $159.34
Coca-Cola (KO)
Source: Vova Shevchuk / Shutterstock.com
Coca-Cola (NYSE:KO) increased 2% in value over the previous month after spending the majority of the previous year in the red. The trade-down effect is expected to push Coca-Cola stock higher as consumers may opt for soda cans at the grocery store instead of expensive coffee shops.
Despite having a low dividend yield of only 3%, Coca-Cola’s appeal lies in its predictability, which is evident in its steady share price and revenue growth. Despite hard times in the economy, the company has regularly increased its earnings and revenues, with a rise in revenue level of 8.3% which is much greater than the 5-year median. The business has produced a total profit of over 100% during the past ten years.
Coca-Cola is a top contender for safe haven stocks due to its consistent profitability, with a high net margin above most competitors. Analysts also predict an over 8% upside potential with a consensus strong buy rating and an average price target of $69.44.
Apple (AAPL)
Source: PX Media / Shutterstock
Apple’s (NASDAQ:AAPL) powerful brand allows for a lot of pricing power. Plus, its financials have consistently appreciated. In fact, it’s been historically lucrative for investors putting money into Apple. For example, an investment of $1,000 made over a decade ago could have increased to $12,501.62 at a rate of return of 28.7% annually. Similarly, a $1,000 investment made five years earlier would’ve generated $3,960.5, or a 31.57%. Even if someone had invested $1,000 in Apple stock a year ago, they would still have gained double digits at 10.8% despite the macroeconomic challenges.
Even better, sales of the iPhone greatly increased the revenue of Apple in Q1, and the U.S. economic downturn on iPhone sales has not affected other regions. Although iPhone sales in the Americas declined, Apple’s global brand recognition has shielded the company from the decline in its domestic market.
Johnson & Johnson (JNJ)
Source: Epic Cure / Shutterstock
Johnson & Johnson (NYSE:JNJ) released outstanding Q1 earnings and increased its full-year expectations. Granted, JNJ still faces challenges. However, there’s still big potential in its pharmaceutical and MedTech segments. Also, despite the slowdown in sales, it maintains an impressive profitability profile.
We should also mention that JNJ spun off its consumer segment into a new entity, Kenvue, to focus on its core businesses. Also, JNJ has a P/E ratio of under 15, with analysts predicting a mid-single-digit growth in revenue and earnings this year. In addition, the company just increased its payout of dividends for the 61st year in a row, displaying its steadfast commitment to its stockholders.
On the date of publication, Chris MacDonald has a position in AAPL, KO. 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 Don’t Panic. 3 Defensive Stocks to Diversify Into ASAP 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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KO Coca-Cola $63.22 AAPL Apple $172.07 JNJ Johnson & Johnson $159.34 Coca-Cola (KO) Source: Vova Shevchuk / Shutterstock.com Coca-Cola (NYSE:KO) increased 2% in value over the previous month after spending the majority of the previous year in the red. Apple (AAPL) Source: PX Media / Shutterstock Apple’s (NASDAQ:AAPL) powerful brand allows for a lot of pricing power. On the date of publication, Chris MacDonald has a position in AAPL, KO.
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KO Coca-Cola $63.22 AAPL Apple $172.07 JNJ Johnson & Johnson $159.34 Coca-Cola (KO) Source: Vova Shevchuk / Shutterstock.com Coca-Cola (NYSE:KO) increased 2% in value over the previous month after spending the majority of the previous year in the red. Apple (AAPL) Source: PX Media / Shutterstock Apple’s (NASDAQ:AAPL) powerful brand allows for a lot of pricing power. On the date of publication, Chris MacDonald has a position in AAPL, KO.
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KO Coca-Cola $63.22 AAPL Apple $172.07 JNJ Johnson & Johnson $159.34 Coca-Cola (KO) Source: Vova Shevchuk / Shutterstock.com Coca-Cola (NYSE:KO) increased 2% in value over the previous month after spending the majority of the previous year in the red. Apple (AAPL) Source: PX Media / Shutterstock Apple’s (NASDAQ:AAPL) powerful brand allows for a lot of pricing power. On the date of publication, Chris MacDonald has a position in AAPL, KO.
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KO Coca-Cola $63.22 AAPL Apple $172.07 JNJ Johnson & Johnson $159.34 Coca-Cola (KO) Source: Vova Shevchuk / Shutterstock.com Coca-Cola (NYSE:KO) increased 2% in value over the previous month after spending the majority of the previous year in the red. Apple (AAPL) Source: PX Media / Shutterstock Apple’s (NASDAQ:AAPL) powerful brand allows for a lot of pricing power. On the date of publication, Chris MacDonald has a position in AAPL, KO.
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15826.0
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2023-05-16 00:00:00 UTC
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After Hours Most Active for May 16, 2023 : NU, BEKE, TAL, MS, GRAB, T, AMZN, ARMK, INTC, SHY, AAPL, PEP
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-16-2023-%3A-nu-beke-tal-ms-grab-t-amzn-armk-intc-shy-aapl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 8.49 to 13,434.51. The total After hours volume is currently 65,317,132 shares traded.
The following are the most active stocks for the after hours session:
Nu Holdings Ltd. (NU) is -0.03 at $6.07, with 4,222,370 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
KE Holdings Inc (BEKE) is +0.03 at $16.85, with 2,582,636 shares traded.BEKE is scheduled to provide an earnings report on 5/18/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.15 per share, which represents a -8 percent increase over the EPS one Year Ago
TAL Education Group (TAL) is unchanged at $5.99, with 2,513,818 shares traded. TAL's current last sale is 103.28% of the target price of $5.8.
Morgan Stanley (MS) is unchanged at $81.86, with 2,355,903 shares traded. As reported by Zacks, the current mean recommendation for MS is in the "buy range".
Grab Holdings Limited (GRAB) is +0.01 at $3.17, with 1,967,618 shares traded.GRAB is scheduled to provide an earnings report on 5/18/2023, for the fiscal quarter ending Mar2023.
AT&T Inc. (T) is +0.01 at $16.54, with 1,951,904 shares traded. T's current last sale is 75.18% of the target price of $22.
Amazon.com, Inc. (AMZN) is +0.06 at $113.46, with 1,835,083 shares traded. Over the last four weeks they have had 9 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".
Aramark (ARMK) is unchanged at $37.84, with 1,578,713 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 $0.55. ARMK's current last sale is 90.1% of the target price of $42.
Intel Corporation (INTC) is +0.07 at $29.29, with 1,567,519 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.04. INTC's current last sale is 96.03% of the target price of $30.5.
iShares 1-3 Year Treasury Bond ETF (SHY) is unchanged at $82.08, with 1,405,327 shares traded. This represents a 1.99% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.08 at $172.15, with 1,375,930 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".
Pepsico, Inc. (PEP) is unchanged at $193.43, with 1,146,575 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.13. As reported by Zacks, the current mean recommendation for PEP 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 +0.08 at $172.15, with 1,375,930 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is +0.03 at $16.85, with 2,582,636 shares traded.BEKE is scheduled to provide an earnings report on 5/18/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is +0.08 at $172.15, with 1,375,930 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is +0.03 at $16.85, with 2,582,636 shares traded.BEKE is scheduled to provide an earnings report on 5/18/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is +0.08 at $172.15, with 1,375,930 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is +0.03 at $16.85, with 2,582,636 shares traded.BEKE is scheduled to provide an earnings report on 5/18/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is +0.08 at $172.15, with 1,375,930 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.01 at $16.54, with 1,951,904 shares traded.
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15827.0
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2023-05-16 00:00:00 UTC
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How to Calculate Stock Growth
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AAPL
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https://www.nasdaq.com/articles/how-to-calculate-stock-growth
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nan
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nan
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Calculating stock growth rates can be challenging and seem intimidating, especially with all the numbers and terminology getting thrown around. Every investor has a preferred way of calculating that works for them to quickly and accurately determine how fast and how much a stock is growing.
But with the right tools and resources, any investor or financial analyst can understand and use the data to their advantage. In this article, we'll explore the various methods for how to calculate stock growth rates and how you can use the information to make informed investment decisions.
How Investing Works
Investing in the stock market is a common way to grow and diversify your financial portfolio. It can be a great way to increase your wealth, but it's important to understand how the stock market works before you dive in. At its most basic level, when you buy or sell stocks, you are buying small pieces of ownership in companies listed on an exchange such as the New York Stock Exchange (NYSE) or NASDAQ.
The company will then use the money they receive from your purchase and those of other investors to fund new projects or expand their business. When they do this successfully, their share price will rise, and you can then make a profit if and when you sell the stock. Investing in stocks can yield high returns if you do it strategically; however, there is also a large element of risk associated due to changes in market conditions and economic trends, which can quickly cause prices to drop dramatically.
What Are Stock Growth Rates?
Calculating growth rates is an essential tool when investing in the stock market. The growth rate of a stock is the percentage change in its value over time, which you can measure over different periods such as a day, week, month, quarter or year. Several methods for calculating growth rates include using logarithmic returns or linear returns.
Stock Growth Rate Formula
Stock growth can be measured by its absolute return, the difference between the starting and ending stock prices, or by its percentage return, calculated by dividing the absolute return by the initial price. Using a stock growth calculator, you may also calculate the average rate of growth between two points in time – quarterly or annually – using either linear or logarithmic methods.
Linear returns are simpler to calculate and involve subtracting the beginning stock price from the ending stock price and dividing by the beginning stock price. This method provides a more straightforward measure of a stock's percentage growth over time.
Using logarithmic returns via an estimated stock growth calculator can provide a more accurate picture of a stock's overall growth over time and is often used by financial analysts. Unlike linear return scales, they show percentage points instead of dollar amounts.
For a more accurate picture of the growth of your investment using a stock portfolio growth calculator, use the compound annual growth rate (CAGR), a metric used to measure the average rate of return for an investment over a specified period. It considers the gains and losses that occur during that period, allowing you to see how well your investments have grown.
Total returns require more complex calculations, as they also consider dividend payments and other market events that could affect the stock price. By understanding these calculations, you can make more informed decisions about when to buy or sell stocks to maximize your returns.
Factors to Consider Before You Invest
Before investing in the stock market, be sure to consider several factors, such as:
Risk tolerance: Knowing your level of risk tolerance is important. Some investors prefer higher-risk investments with the potential for greater returns, while others prefer lower-risk investments with steady returns.
Investment goals: Having a clear investment goal will help you determine which stocks you should be investing in and how long-term or short-term your investments should be.
Diversification: Diversifying your portfolio helps reduce the risks of certain stocks underperforming and allows you to spread out potential losses.
Research: Thoroughly research stocks you're interested in before making any investments. This includes reading reports and financial statements, following news related to the industry and understanding stock analysis tools such as earnings per share (EPS) and price-to-earnings (P/E) ratios. The P/E ratio measures the stock's current market price relative to earnings per share (EPS). You calculate it by dividing the current market price by the last 12 months of reported earnings. In other words, a stock with a P/E ratio of 20 would mean that the stock would trade at 20 times its earnings, meaning that investors are willing to pay 20 times the company's earnings for one share of the stock.
Timing: Timing can have an impact on stock prices, so it's a good idea to keep an eye on market conditions when buying or selling stocks.
Taxes: Investing in the stock market can have tax implications, so ensure you understand how this could affect your bottom line before diving into the market.
How to Calculate Stock Growth
Calculating stock growth can be useful in determining how well a stock has performed over time. You can measure stock growth in terms of absolute return, which is the difference between the beginning and ending stock prices and then dividing by the beginning stock price.
In addition, some investors may also calculate average growth rate over a period — such as quarterly or annually — using either linear or logarithmic methods, including CAGR.
Step 1: Determine beginning and ending prices.
First, you will need to determine the beginning and ending stock prices — that is, the prices of a particular stock at two different points in time. You can find this information on MarketBeat or through data feeds from brokerages.
Step 2: Calculate linear return.
Linear returns are simpler formulas and involve subtracting the beginning stock price (S1) from the ending price (S2), then dividing by S1, like this:
Linear Return Percentage = [(S2 - S1)/S1] x 100%
This method provides a more straightforward measure of a single period's percentage growth over time.
Step 3: Calculate CAGR.
The CAGR is a metric used to measure the average rate of return for an investment over a specified period. To calculate CAGR, you need to know the starting value of your investment, the ending value of your investment, and the number of years that have passed.
The CAGR is a measure of the growth rate of an investment over years expressed as a single number. Calculate it by taking the nth root of the total return, with "n" being the years you held the investment. This can be useful for comparing investments with different periods and returns, as it allows you to compare apples to apples.
For example, if you invested in stock A for 10 years and earned a total return of 200%, that would be equivalent to 20% per year on average over that 10-year period. However, if you had invested in Stock B for five years and earned a total return of 125%, that would be equivalent to 25% per year on average over those five years. While both investments saw similar total returns, they had very different CAGRs due to their differing holding periods.
Step 4: Consider additional factors.
While the above formulas can provide insight into a stock's growth over a given period, consider additional factors that may impact a stock's performance when calculating your exact returns. For example, macroeconomic events, market volatility and company-specific news can send stocks up or down. Be sure also to consider the company's financial health and future prospects, including possible catalysts for growth or risks that may impact the stock price.
Another factor to consider is the company's dividend policy. If it pays dividends, this can provide additional income for you as an investor and impact your total returns over time. Some investors may even use technical analysis to identify trends or signals in a stock's price chart, which they then use to make buy and sell decisions. You can view all this information on the top of a stock page on MarketBeat or by searching the site for news on a specific stock.
Step 5: Consider taxes.
Finally, remember to factor in taxes when calculating your total returns. Tax rates will vary depending on where you live, your tax bracket and the type of security you invest in.
Example of How to Calculate Stock Growth
The first step in calculating a stock's growth rate is gathering the necessary data. You'll need the beginning and ending prices of the stock, as well as any dividend payments it may have made during the period. You can find these figures on the appropriate stock page on MarketBeat. For example, we'll take Apple Inc. (NASDAQ: AAPL). We can click on "charts" and put in our desired dates to see the stock price on those dates.
Next, use this data to calculate stock growth rate using the linear return method.
Linear returns are simpler to calculate and involve subtracting the beginning stock price (S1) from the ending price (S2), then dividing by S1.
Linear Return Percentage = [(S2 - S1)/S1] x 100%
For example, if you invested $1,000 in Apple stock on January 1, 2020 and sold your shares for $2,000 on December 31, 2020, then your linear return would be [(2,000-1,000)/1,000] x 100, or 100%.
Stock Growth Rates: A Key Figure for Investment Success
In this article, we explored the various methods for how to calculate stock growth rates and how to use the information to make informed investment decisions. However, calculating your return on a stock investment involves more than just looking at its price over time.
It would help if you also considered factors like dividends, taxes, and other market events that may affect the stock price. By understanding the different components of stock returns and learning how to calculate growth rate of a stock, you can make more informed decisions about when to buy or sell shares to maximize your investments.
FAQs
In the following section, we answer some frequently asked questions about stock growth and provide examples of how to calculate different types of returns. By reading this section, you should better understand how to calculate stock growth and make successful investments.
How do you calculate stock growth?
The calculation of stock growth is one of the key elements in investing, as it allows you to understand how your investments are performing over time. To calculate a stock's growth rate, you need to gather relevant data like the beginning and ending prices of the stock and any dividends it may have paid during that period. You can then use this data to calculate linear returns or total returns using a stock portfolio growth rate calculator.
How much will $10,000 be worth in 20 years?
The amount of money that $10,000 would be worth in 20 years depends on various factors, including inflation and investment returns. If invested in stocks or mutual funds, you could see returns anywhere from five to 20% per year, depending on the investment strategy used.
To truly appreciate the future value of your savings, factor in inflation and possible returns from investments. At an inflation rate of 3.5%, the purchasing power of $10,000 in 20 years would be $19,898. With an 8% average return on investments, the value of $10,000 after 20 years — compounded annually — would be $21,589.25.
How do you turn $1,000 into $10,000 in a month?
Making your $1,000 grow into $10,000 in a month is an ambitious goal. Various strategies might help you get there.
However, investing requires research and careful consideration; making investments without those may lead to losses rather than gains. Diversifying your portfolio and understanding risk management can help to mitigate these dangers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, we'll take Apple Inc. (NASDAQ: AAPL). Investing in stocks can yield high returns if you do it strategically; however, there is also a large element of risk associated due to changes in market conditions and economic trends, which can quickly cause prices to drop dramatically. This includes reading reports and financial statements, following news related to the industry and understanding stock analysis tools such as earnings per share (EPS) and price-to-earnings (P/E) ratios.
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For example, we'll take Apple Inc. (NASDAQ: AAPL). Stock Growth Rate Formula Stock growth can be measured by its absolute return, the difference between the starting and ending stock prices, or by its percentage return, calculated by dividing the absolute return by the initial price. Linear returns are simpler to calculate and involve subtracting the beginning stock price from the ending stock price and dividing by the beginning stock price.
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For example, we'll take Apple Inc. (NASDAQ: AAPL). Stock Growth Rate Formula Stock growth can be measured by its absolute return, the difference between the starting and ending stock prices, or by its percentage return, calculated by dividing the absolute return by the initial price. Linear returns are simpler to calculate and involve subtracting the beginning stock price from the ending stock price and dividing by the beginning stock price.
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For example, we'll take Apple Inc. (NASDAQ: AAPL). It would help if you also considered factors like dividends, taxes, and other market events that may affect the stock price. How do you calculate stock growth?
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15828.0
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2023-05-16 00:00:00 UTC
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7 Best Retail Stocks to Invest in
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AAPL
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https://www.nasdaq.com/articles/7-best-retail-stocks-to-invest-in
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nan
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nan
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Consumer spending is the lifeblood of the economy. It's easy to look around and see the numerous brands, products and services circulating in your household. Companies produce these products that employ workers who are also consumers who spend money. What goes around comes around when it comes to the economy.
Strong economies come with solid consumer spending and vice versa. Investing in retail stocks is one way of capitalizing on this dynamic. This article will review seven of the best retail stocks to invest in to help you navigate the retail sector and make more informed decisions.
Retail Stocks: An Overview
Retail stocks produce, market or distribute products and services consumers buy.
It's the oldest game in the book:
Produce and acquire at a lower price and sell at a higher price for a profit.
Use that profit to grow the business.
Rinse and repeat.
Also, keep your customer happy so they keep buying products from your company.
The formula is simple enough, but numerous companies have tried and failed. There are many features to pay attention to when investing in retail stocks.
Features to Look for in Retail Stocks
Buying a retail stock involves researching to ensure you get in on a suitable investment that fits your criteria and investment style. The best online retail stocks for one investor may not suit another investor. There are certain features to look for when you search for the best retail stock. The best performing retail stocks excel in these features, usually better than the competition.
Sales Growth
Retail stocks that have growing sales are significant. Growing sales and revenues are essential drivers for retail stocks. Many retailers report same-store sales monthly so investors can quickly track the pace of growth or contraction.
Margins
While growing sales are a good indicator, the margins are what tell the true story. Retail stocks with growing margins indicate that the company is making more profits on its goods. Be careful when margins are falling while sales are rising, called margin compression, and it reflects a high volume of promotions and discounts to move products even for a loss.
Inventory
Inventory is essential in times of high demand but can be a detriment when consumer demand falls. When consumers tighten their wallets, retailers tend to see a glut of inventory that they must discount heavily to sell, causing margin compression. High inventory levels are a sign of weak consumer demand.
Financial Metrics
You can use widely used financial metrics ratios like price-to-earnings (P/E), price-to-sale (P/S) and cash-per-share (CPS) to measure a retail stock's valuation. These financial metrics enable investors to contrast and compare large-cap retail stocks to see which may have superior fundamentals.
Real Estate
The underlying real estate is an asset that can impact valuations. Many investors consider real estate to be a bonus when buying retail stocks. Real estate has a tangible value. The retail stock could be considered undervalued if it is more significant than the market capitalization. Many retail companies also own the land where stores are located.
Dividends
Retail stocks with a consistent dividend payment history are attractive for investors seeking income and growth from their stocks. Remember that the company must show a profit to maintain the dividend payments. Many of the top retail stocks are blue-chip companies. Be careful to select retail stocks that pay dividends but suffer losses as it may signal an impending dividend cut or termination.
7 Best Retail Stocks
Here's a list of the seven best-performing retail stocks. This list is in no particular order and not by ranking. The list helps you decide the best retail stock to buy. These retail companies vary as to being consumer staples or consumer discretionary stocks.
Amazon.com Inc.
Amazon.com Inc. (NASDAQ: AMZN) sales surged through half a trillion dollars in 2022 and growing. Amazon.com is the world's largest online retailer. This is the go-to website to purchase everything online, from books to smart TVs to toothpaste and device insurance. Amazon is a sum-of-all-parts powerhouse in retailing. It has its own private label brand of products in addition to smart speakers like the Alex and Echo and Fire tablets and Kindle e-readers.
Its Prime membership entitles subscribers to free and low-priced shipping and access to several services, including its streaming video service Amazon Prime and streaming music service Amazon Music. Amazon is considered a blue-chip stock in addition to also being a technology and a retail stock.
The company also owns Whole Foods Market grocery stores and growing its Amazon Fresh business. It's expanded into pharmacy and prescription benefits management enabling users to have their prescriptions delivered. In addition to retail products, it's a leader in cloud computing with its Amazon Web Services (AWS), which continues its double-digit growth driven by the secular tailwind of cloud migration and adoption. Amazon stock has a five-year performance of 32.5% with no dividends.
Check Amazon.com analyst ratings and price targets on MarketBeat.
Walmart Inc.
Walmart Inc. (NYSE: WMT) is the world's largest brick-and-mortar retailer, with sales of $611 billion in 2022. It's the largest employer in the world, with over 2.3 million workers globally. The company has over 10,500 stores globally, serving over 230 million customers weekly across 20 countries. The average Walmart store is roughly 120,000 square feet selling consumer products, including groceries and electronics.
Groceries comprise over half its annual sales, followed by general merchandise and health and wellness products. Its most popular product is bananas selling more than 1.5 billion pounds yearly. Walmart owns much of the land its stores operate on but will often sell the real estate to investment trusts (REITs) and lease the land. Its real estate subsidiary is Walmart Realty.
Walmart also owns and operates over 600 membership-only Sam's Club retail warehouse stores, with plans to open more than 30 new warehouses in the next few years. The new warehouse stores are nearly 160,000 square feet. The company is the largest importer in the U.S. Walmart is a member of the Dow Jones Industrial Index. Walmart stock has a five-year performance of 74.6% with a 1.57% annual dividend yield.
Look for Walmart earnings results, estimates and conference call transcripts on MarketBeat.
Target Corporation
Target Corp. (NYSE: TGT) offers general merchandise and consumer products in the U.S. With over $100 billion in annual sales, the company is the eighth-largest retailer in the country. Target also sells grocery items with pharmacy services. Target owns over 80% of the real estate its more than 1,800 stores are located on. The company plans to invest up to $5 billion in 2023 to expand its locations by adding 20 new large-scale stores and remodeling up to 175 of its existing stores. Target is considered a consumer staples stock selling essential household items and products.
The new stores are designed to be a massive 150,000 square feet featuring store-in-store layouts that include Ulta Beauty and Apple brand products. It will also expand its distribution center locations from nine to over 15 by 2027. This will expedite its next-day delivery for up to 40% of its digital orders. It removes the pressure from its brick-and-mortar retail stores enabling workers to focus solely on its guests. Target stock has a five-year performance of 117% with a 2.79% annual dividend rate.
You can find Target financials, including income statements and balance sheets, on MarketBeat.
Nike Inc.
Nike Inc. (NYSE: NKE) is one of the world's most valuable and iconic brands for sports sneakers, apparel, equipment and accessories. The company had global sales surpassed $45 billion in 2022. Its famous swoosh logo is recognized worldwide. Nike sells its products through multiple channels, including over 1,200 physical stores, retail department and outlet stores, online and direct-to-consumer (DTC). Nike is considered one of the best consumer discretionary stocks to own. The company regularly makes headlines for mega product endorsement deals.
It's been consistently at the forefront of shifting consumer fashion trends. Nike shoes have hit collectibles status. Sneakerheads are hardcore collectors willing to pay thousands for vintage and rare models helping to create a growing secondary market. This enables Nike to sell multiple shoes to collectors who may buy a specific pair to wear and an additional pair as an investment. Nike stock has a five-year performance of 82% with a 1.07% annual dividend rate.
Look for Nike analyst ratings and price targets on MarketBeat.
Costco Wholesale Corp.
Costco Wholesale Corp. (NASDAQ: COST) is one of the world's largest warehouse membership clubs and the third largest retailer in the U.S. It operates more than 580 warehouse stores in the U.S. and over 840 warehouses total worldwide, serving more than 120 million members. Customers pay an annual membership fee to become a member to gain access to the warehouses. Customers usually shop in bulk to save the most amount of money.
The company generated over $220 billion in 2022, with its number one selling item being toilet paper. Unlike big box stores, Costco keeps a smaller product selection to keep the quality and prices low. Its hallmark is offering bulk products at lower prices. It sells everything from office products to smart TVs, household products, fuel and groceries. It's one of the world's largest wine sellers.
Its Kirkland private label brand has been praised for its quality and low prices. Its famous food court is also well-known for its low-priced but high-quality meals. Costco stock has a five-year performance of 159.5% with a 0.83% annual dividend yield. Check out Costco analyst ratings and price targets on MarketBeat.
Ralph Lauren Co.
Ralph Lauren Co. (NYSE: RL), a consumer discretionary company, is a luxury fashion design company that has evolved into a premium lifestyle brand offering products under the Polo, Chaps and Ralph Lauren banners. The company sells apparel, footwear, accessories, fragrances and home furnishings. It's an iconic American brand known for its stylish and high-quality products. It sells at 504 retail locations and 684 store-within-a-store locations, department stores and other retail outlets.
The company also has several restaurants, including the Polo Bar in New York, RL Restaurant in Chicago and the Bar at Ralph Lauren in Milan, Italy. The company generated over $8 billion in revenues in 2022. Ralph Lauren stock has a five-year performance of 3.57% with a 2.67% dividend yield. Check out Ralph Lauren analyst ratings and price targets on MarketBeat.
The Walt Disney Company
The Walt Disney Company (NYSE: DIS) is a significant media and entertainment company well known for its trademark characters and family-friendly entertainment. The company generated over $87 billion in revenues in 2022. Disney owns the Marvel Comics IP and Marvel Studios movie and TV production studio. The company also owns Pixar, the producer of Toy Story. It owns the Star Wars franchise of movies, licenses and products. Disney owns some of the top-grossing movies of all time, like Avengers: Endgame and Avatar.
It has a streaming network with more than 200 million subscribers on the Disney Plus service. It owns ESPN and a stake in Hulu. The company's theme park business has rebounded strongly from the pandemic and is the most profitable segment. Disney plans to invest up to $17 billion in upgrading and expanding its theme parks in the next decade. Disney stock has a five-year performance of down (3.3%) with no dividends. Look for Disney analyst ratings and price targets on MarketBeat.
Consumer Apparel Department Stores
You may have noticed retail apparel department stores have been left off the list for good reason, such as Macy's, Kohl's and Nordstrom, which are going through a secular tailwind of weakening consumer discretionary spending on apparel and falling foot traffic.
More and more shoppers have migrated to online shopping and e-commerce, which is why Amazon.com has grown to be the largest online retailer in the world and as foot traffic to shopping malls and brick-and-mortar stores continues to decline.
Walmart and Target also sell clothing, but their grocery businesses make up for any slack in the apparel sales segment.
FAQs
Here are some answers to frequently asked questions about investing in retail stocks.
What are the best retail stocks to invest in?
It's a common question: What is the best retail stock to buy? That depends on your investment goals and risk tolerance. Investing in an industry leader provides more stability, especially when it has a long history of consistent dividend payments. Consumer discretionary stocks have more stability than consumer discretionary stocks since they carry essential items.
Are retail stocks a good investment?
They can be a good investment depending on the price you got into the stock and how long you plan to hold it. Consider not chasing stocks when prices hit a 52-week high, nor dive in headfirst on a 52-week low.
How do you invest in retail stocks?
Learn about the retail sector first, then review some of the companies above to see if they suit your investment criteria. Have a brokerage account funded and place your trade to invest. If you can't choose one stock, you can always consider a consumer staples index fund that exposes you to a basket of retail stocks.
The views and 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 has its own private label brand of products in addition to smart speakers like the Alex and Echo and Fire tablets and Kindle e-readers. The new stores are designed to be a massive 150,000 square feet featuring store-in-store layouts that include Ulta Beauty and Apple brand products. Sneakerheads are hardcore collectors willing to pay thousands for vintage and rare models helping to create a growing secondary market.
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Retail Stocks: An Overview Retail stocks produce, market or distribute products and services consumers buy. Its Prime membership entitles subscribers to free and low-priced shipping and access to several services, including its streaming video service Amazon Prime and streaming music service Amazon Music. Ralph Lauren Co. Ralph Lauren Co. (NYSE: RL), a consumer discretionary company, is a luxury fashion design company that has evolved into a premium lifestyle brand offering products under the Polo, Chaps and Ralph Lauren banners.
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Retail Stocks: An Overview Retail stocks produce, market or distribute products and services consumers buy. Features to Look for in Retail Stocks Buying a retail stock involves researching to ensure you get in on a suitable investment that fits your criteria and investment style. 7 Best Retail Stocks Here's a list of the seven best-performing retail stocks.
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Target owns over 80% of the real estate its more than 1,800 stores are located on. What are the best retail stocks to invest in? How do you invest in retail stocks?
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15829.0
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2023-05-16 00:00:00 UTC
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Should You Buy Warren Buffett's Favorite Company?
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AAPL
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https://www.nasdaq.com/articles/should-you-buy-warren-buffetts-favorite-company
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nan
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nan
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There are a lot of lessons investors can learn from the Oracle of Omaha, Warren Buffett. His company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has been one of the best and most consistently performing stocks over the past 50 years, making money through insurance, railroads, and stock investing.
When you look at Berkshire's portfolio, there's one company that looks like a clear favorite over any other it owns: Apple (NASDAQ: AAPL). Apple currently makes up an incredible 47% of Berkshire's portfolio, while the next largest component only sits at 8%.
With that said, is Apple a stock you should consider buying right now? Let's find out.
The iPhone has proven resiliency
If you're an American consumer, Apple products likely need no introduction. Whether it's a Macbook, AirPods, or the ever-popular iPhone, Apple products are everywhere and utilized by a large cohort of the population. For the first quarter of 2023, Counterpoint Research found 53% of smartphones sold in the U.S. were iPhones, increasing Apple's market share by four percentage points from last year. With Apple holding 57% of the U.S. smartphone space as a whole and growing, it has a massive foothold in an important market.
It has also proven more resilient. In Q1, U.S. smartphone shipments were down 17% year over year. But don't tell that to Apple. For Apple's Q2 (ending April 1, which coincides with the calendar's Q1), iPhone sales were up 1.4% to $51.3 billion.
While those two stats don't directly correlate (shipment volume isn't equal to sales volume), it shows Apple's pricing power, as it can continue to charge a premium for its products despite falling demand. Pricing power is one of Buffett's favorite business indicators. He once said: "The single most important decision in evaluating a business is pricing power."
Those are powerful words of wisdom from a person who many consider to be one of the greatest investors of all time. But Buffett also is known to be a value investor, which seems to be at odds with Apple's current status.
Apple's stock is extremely expensive
When Berkshire first took a stake in Apple during Q1 2016, Apple was trading for a dirt cheap 10 times earnings. While it may seem like a no-brainer purchase looking back, it's this buy that set up a company-defining investment. However, Apple's stock is no longer anywhere close to that cheap.
AAPL PE Ratio data by YCharts
At 29 times earnings, Apple isn't what anyone would consider a cheap stock. Combine that with falling revenue and earnings, and the stock starts to look a whole lot more expensive.
AAPL Revenue (Quarterly YoY Growth) data by YCharts
Although iPhone revenue was up, Mac, iPad, and wearables, home, and accessories were down. Even though these segments added together sum to less than half of iPhone sales, they are still important for Apple.
Until Apple's stock returns to growth mode, it is a precarious investment, as there isn't any growth to drive it. As to when that will be, I have no clue, as a recession has seemed imminent for the past year yet hasn't surfaced.
But, one thing that will continue to prop up the stock is Buffett's ownership and many investors' decision to stick with the company no matter what. With a large cohort of investors who consider Apple a bedrock in their portfolio, it's unlikely Apple will ever see a mass sell-off, even if the stock remains expensive. Because of that, I also don't think it's a wise decision to sell, either.
Apple stock is expensive and has no growth to show for itself, but its wide ownership makes it a stable company. Investors should continue to hold their shares unless they've found a more lucrative investment (of which there are plenty in today's market).
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
Keithen Drury has no position in any of the stocks mentioned. 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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AAPL PE Ratio data by YCharts At 29 times earnings, Apple isn't what anyone would consider a cheap stock. When you look at Berkshire's portfolio, there's one company that looks like a clear favorite over any other it owns: Apple (NASDAQ: AAPL). AAPL Revenue (Quarterly YoY Growth) data by YCharts Although iPhone revenue was up, Mac, iPad, and wearables, home, and accessories were down.
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AAPL Revenue (Quarterly YoY Growth) data by YCharts Although iPhone revenue was up, Mac, iPad, and wearables, home, and accessories were down. When you look at Berkshire's portfolio, there's one company that looks like a clear favorite over any other it owns: Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts At 29 times earnings, Apple isn't what anyone would consider a cheap stock.
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When you look at Berkshire's portfolio, there's one company that looks like a clear favorite over any other it owns: Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts At 29 times earnings, Apple isn't what anyone would consider a cheap stock. AAPL Revenue (Quarterly YoY Growth) data by YCharts Although iPhone revenue was up, Mac, iPad, and wearables, home, and accessories were down.
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AAPL PE Ratio data by YCharts At 29 times earnings, Apple isn't what anyone would consider a cheap stock. When you look at Berkshire's portfolio, there's one company that looks like a clear favorite over any other it owns: Apple (NASDAQ: AAPL). AAPL Revenue (Quarterly YoY Growth) data by YCharts Although iPhone revenue was up, Mac, iPad, and wearables, home, and accessories were down.
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15830.0
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2023-05-16 00:00:00 UTC
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Apple Unveils Accessibility Features To Support Users With Disabilities
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-accessibility-features-to-support-users-with-disabilities
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nan
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nan
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(RTTNews) - Apple (AAPL) previewed software features for cognitive, vision, hearing, and mobility accessibility, along with tools for individuals who are nonspeaking or at risk of losing their ability to speak. The company said users with cognitive disabilities can use iPhone and iPad with ease and independence with Assistive Access; nonspeaking individuals can type to speak during calls and conversations with Live Speech; and those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends.
For blind, Detection Mode in Magnifier offers Point and Speak, which identifies text users point toward and reads it out loud to help them interact with physical objects such as household appliances.
The views and 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 (AAPL) previewed software features for cognitive, vision, hearing, and mobility accessibility, along with tools for individuals who are nonspeaking or at risk of losing their ability to speak. The company said users with cognitive disabilities can use iPhone and iPad with ease and independence with Assistive Access; nonspeaking individuals can type to speak during calls and conversations with Live Speech; and those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends. For blind, Detection Mode in Magnifier offers Point and Speak, which identifies text users point toward and reads it out loud to help them interact with physical objects such as household appliances.
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(RTTNews) - Apple (AAPL) previewed software features for cognitive, vision, hearing, and mobility accessibility, along with tools for individuals who are nonspeaking or at risk of losing their ability to speak. The company said users with cognitive disabilities can use iPhone and iPad with ease and independence with Assistive Access; nonspeaking individuals can type to speak during calls and conversations with Live Speech; and those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends. For blind, Detection Mode in Magnifier offers Point and Speak, which identifies text users point toward and reads it out loud to help them interact with physical objects such as household appliances.
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(RTTNews) - Apple (AAPL) previewed software features for cognitive, vision, hearing, and mobility accessibility, along with tools for individuals who are nonspeaking or at risk of losing their ability to speak. The company said users with cognitive disabilities can use iPhone and iPad with ease and independence with Assistive Access; nonspeaking individuals can type to speak during calls and conversations with Live Speech; and those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends. The views and 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 (AAPL) previewed software features for cognitive, vision, hearing, and mobility accessibility, along with tools for individuals who are nonspeaking or at risk of losing their ability to speak. The company said users with cognitive disabilities can use iPhone and iPad with ease and independence with Assistive Access; nonspeaking individuals can type to speak during calls and conversations with Live Speech; and those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends. For blind, Detection Mode in Magnifier offers Point and Speak, which identifies text users point toward and reads it out loud to help them interact with physical objects such as household appliances.
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15831.0
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2023-05-16 00:00:00 UTC
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The Biggest Reason Why Warren Buffett Does Not Own Tesla Stock
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AAPL
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https://www.nasdaq.com/articles/the-biggest-reason-why-warren-buffett-does-not-own-tesla-stock
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nan
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nan
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Tesla (NASDAQ: TSLA) is running circles around Warren Buffett these days. The electric vehicle (EV) stock has soared more than 30% year to date, while Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has only risen by around 5%.
Berkshire's performance in 2023 might be significantly better if Tesla was one of its biggest holdings. But it isn't -- and never has been. Buffett hasn't avoided Tesla because he dislikes the company's CEO, Elon Musk. He recently called Musk "a brilliant, brilliant guy."
So why doesn't Buffett own Tesla stock? Here's the biggest reason.
Buffett's top factor
Buffett remains a value investor at heart. His top factor in determining whether or not to buy a stock is valuation. And for the legendary investor, the price simply isn't right with Tesla.
It's not just that Tesla has a high price-to-earnings ratio of 45. Berkshire currently owns a stock that's priced at a much steeper premium: Snowflake. More important to Buffett in assessing a stock's valuation is what its earnings will likely be in the future.
In his 2013 letter to Berkshire Hathaway shareholders, Buffett wrote that he and his longtime business partner, Charlie Munger, only buy stocks that trade at "a reasonable price" relative to the low end of their earnings range for at least five years in the future. If they don't think they can estimate the earnings with a sufficient level of confidence, they pass on the stock.
Buffett essentially revealed his take on Tesla on this front in the recent Berkshire shareholder meeting, saying, "I think I know where Apple (NASDAQ: AAPL) is going to be in five or 10 years, but I don't know where the car companies are going to be in five or 10 years." Based on this statement, it's clear that he doesn't believe that he can estimate what Tesla's earnings will be. That makes the stock an automatic no-go for him.
What would make Buffett change his mind?
Looking back, Buffett has changed his mind about stocks in the past. For example, in 2012, he said that he wouldn't buy Apple. Today, it's the biggest position by far in Berkshire's portfolio. What would potentially make Buffett change his mind about Tesla? I think the Apple precedent is instructive.
Buffett didn't personally make the initial decision to buy Apple. He revealed that the call was made by one of Berkshire's investment managers, either Todd Combs or Ted Weschler. It didn't take long, though, for Buffett to jump aboard the Apple train. I could see a similar scenario potentially happening with Tesla down the road.
By the time Buffett did fully embrace Apple as an investment, the company was the most profitable player in a massive market that had clear and promising prospects. Based on Buffett's comments in the Berkshire shareholder meeting earlier this month, the competitive dynamics of the EV market will have to be much less murky for him to feel comfortable buying Tesla.
That could happen over the next few years. If EV usage grows significantly across the world, with Tesla clearly outmaneuvering its rivals, Buffett could decide the time is right to buy the stock.
The Buffett mindset
It's important to understand Buffett's mindset. He views himself as Berkshire's chief risk officer. His approach is to minimize the risk associated with any move the company makes. As a result, he's willing to take a pass even on stocks that he suspects could be big winners.
That was the case with Apple. In 2012, Buffett acknowledged that Apple "could be worth a lot more money 10 years from now." Yet he still refused to buy the stock then. For what it's worth, Berkshire Hathaway stock delivered much greater gains than Apple did between the time Buffett made that comment and 2016 (when Berkshire initiated its position in the tech giant).
Buffett won't buy Tesla stock until he's comfortable with its valuation. This strategy has worked pretty well for the 92-year-old investor so far. But could Tesla continue to run circles around Buffett's beloved Berkshire Hathaway? Even the Oracle of Omaha might agree that it could.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
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*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, Berkshire Hathaway, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett essentially revealed his take on Tesla on this front in the recent Berkshire shareholder meeting, saying, "I think I know where Apple (NASDAQ: AAPL) is going to be in five or 10 years, but I don't know where the car companies are going to be in five or 10 years." In his 2013 letter to Berkshire Hathaway shareholders, Buffett wrote that he and his longtime business partner, Charlie Munger, only buy stocks that trade at "a reasonable price" relative to the low end of their earnings range for at least five years in the future. By the time Buffett did fully embrace Apple as an investment, the company was the most profitable player in a massive market that had clear and promising prospects.
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Buffett essentially revealed his take on Tesla on this front in the recent Berkshire shareholder meeting, saying, "I think I know where Apple (NASDAQ: AAPL) is going to be in five or 10 years, but I don't know where the car companies are going to be in five or 10 years." What would potentially make Buffett change his mind about Tesla? For what it's worth, Berkshire Hathaway stock delivered much greater gains than Apple did between the time Buffett made that comment and 2016 (when Berkshire initiated its position in the tech giant).
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Buffett essentially revealed his take on Tesla on this front in the recent Berkshire shareholder meeting, saying, "I think I know where Apple (NASDAQ: AAPL) is going to be in five or 10 years, but I don't know where the car companies are going to be in five or 10 years." For what it's worth, Berkshire Hathaway stock delivered much greater gains than Apple did between the time Buffett made that comment and 2016 (when Berkshire initiated its position in the tech giant). Buffett won't buy Tesla stock until he's comfortable with its valuation.
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Buffett essentially revealed his take on Tesla on this front in the recent Berkshire shareholder meeting, saying, "I think I know where Apple (NASDAQ: AAPL) is going to be in five or 10 years, but I don't know where the car companies are going to be in five or 10 years." So why doesn't Buffett own Tesla stock? For example, in 2012, he said that he wouldn't buy Apple.
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15832.0
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2023-05-16 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-36
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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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15833.0
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2023-05-16 00:00:00 UTC
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Akamai Technologies Soars on Robust Cybersecurity and Cloud Sales
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AAPL
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https://www.nasdaq.com/articles/akamai-technologies-soars-on-robust-cybersecurity-and-cloud-sales
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nan
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nan
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Cloud services and content delivery network (CDN) operator Akamai Technologies Inc. (NASDAQ: AKAM) had substantial profits driven by record security services in Q1 2023. Its legacy content delivery network (CDN) comprises more than 300,000 servers in over 135 countries enabling oceans of data, video and web content to stream with reliability and speed. CDNs are essential for media and technology companies.
Akamai’s CDN customers include The Walt Disney Company (NYSE: DIS), Netflix Inc. (NASDAQ: NFLX), Microsoft Co. (NASDAQ: MSFT), International Business Machines Co. (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), and Adobe Inc. (NASDAQ: ADBE). Its cloud and security services are the growth drivers, while its legacy CDN delivery services are a cash cow. Its CDN business enables growth with its security and compute business as customers discover these additional value-added services. Akamai is gaining traction with its security segment, closing customers that don't use its CDN.
Growth in Security Services
Akamai entered the cybersecurity and network security segment over a decade ago. Since then, the segment has grown both organically and through acquisitions. The company acquired the AI-powered SaaS security platform Neosec. It actively hunts threats using artificial intelligence (AI) based behavioral analytics to find APIs and identify and defend vulnerabilities against attacks.
Akamai plans to take to market immediately to provide a service for customers that don't use its CDN services. It joins its previous acquisition Guardicore, a ransomware protection solution, as part of its security suite. Guardicore closed new contracts with one of the largest European banking groups and one of its largest airlines in Q1.
Compute Services
Its compute division provides serverless and edge computing and Kubernetes-as-a-service (KaaS). KaaS enables companies to manage and deploy cloud applications worldwide on Akamai's decentralized edge servers. This is crucial for live and real-time applications like gaming, IoT and video streaming.
Beat and Guide
On May 9, 2023, Akamai released its Q1 2023 earnings for March 2023. The company reported earnings-per-share (EPS) profits of $1.40, beating consensus analyst estimates of $1.32 by $0.08. GAAP net income was $97 million, down (27%) YoY. Non-GAAP income was $218 million, down (3%) YoY. Revenues grew 1.4% year-over-year (YoY) to $916 million, beating $912.13 million consensus analyst estimates. U.S. revenues fell (1%) YoY to $474 million, while international revenues rose 5% to $442 million. Akamai had $45 million in restructuring charges in the quarter, primarily for severance costs related to its workforce reduction plan. The company ended the quarter with $1.1 billion in cash and marketable securities.
Revenues by Segment
Its legacy business continues to fall, but it's benefiting from legacy clients adding new services. Security revenues rose 6% YoY to $406 million. Compute revenues rose 49% to $116 million. Delivery CDN revenues fell (11%) YoY to $394 million. Security and Compute revenues represent 57% of total revenues and rose 13% YoY.
Akamai CEO Dr. Tom Leighton commented on the synergy that still exists with its legacy delivery business, “The synergy is both on the top-line, as long-time delivery customers buy our security and compute products and also on the bottom line as we realize the cost benefits of using a single infrastructure to provide security and compute services as well as delivery.”
Upside Guidance
Akamai raised its Q2 2023 EPS guidance to $1.38 to $1.42 versus $1.35 consensus analyst estimates. Revenues for the second quarter are expected between $923 million to $937 million versus $920.4 million analyst estimates.
Akamai raised its full-year 2023 EPS guidance to $5.69 to $5.84 versus $5.48 consensus analyst estimates. Full-year 2023 revenues are expected between $3.74 billion to $3.785 billion versus $3.73 consensus analyst estimates. Akamai will also be cutting 3% of its workforce in Q2 2023.
Akamai Technologies analyst ratings and price targets can be found at MarketBeat.
Weekly Falling Price Channel Breakout
AKAM has been in a weekly falling price channel since peaking at $122.01 in April 2022. Shares had a downward trajectory, making lower highs and lower lows until forming a swing low of $70.65 in March 2023. It triggered a weekly market structure low (MSL) breakout through the $76.25 as the weekly stochastic bounced through the 20-band and continued to mini-pup towards the 60-band.
The weekly 20-period exponential moving average (EMA) is $81.56, and the 50-period MA resistance is $86.53. AKAM attempts to break out of the falling price channel on the momentum from its Q1 2023 earnings report. The weekly stochastic is attempting to mini-pup towards the 60-band. Pullback support levels are $81.34, $76.25 weekly MSL trigger, $70.65 swing low and $67.28.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Akamai’s CDN customers include The Walt Disney Company (NYSE: DIS), Netflix Inc. (NASDAQ: NFLX), Microsoft Co. (NASDAQ: MSFT), International Business Machines Co. (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), and Adobe Inc. (NASDAQ: ADBE). It actively hunts threats using artificial intelligence (AI) based behavioral analytics to find APIs and identify and defend vulnerabilities against attacks. KaaS enables companies to manage and deploy cloud applications worldwide on Akamai's decentralized edge servers.
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Akamai’s CDN customers include The Walt Disney Company (NYSE: DIS), Netflix Inc. (NASDAQ: NFLX), Microsoft Co. (NASDAQ: MSFT), International Business Machines Co. (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), and Adobe Inc. (NASDAQ: ADBE). Cloud services and content delivery network (CDN) operator Akamai Technologies Inc. (NASDAQ: AKAM) had substantial profits driven by record security services in Q1 2023. Akamai CEO Dr. Tom Leighton commented on the synergy that still exists with its legacy delivery business, “The synergy is both on the top-line, as long-time delivery customers buy our security and compute products and also on the bottom line as we realize the cost benefits of using a single infrastructure to provide security and compute services as well as delivery.” Upside Guidance Akamai raised its Q2 2023 EPS guidance to $1.38 to $1.42 versus $1.35 consensus analyst estimates.
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Akamai’s CDN customers include The Walt Disney Company (NYSE: DIS), Netflix Inc. (NASDAQ: NFLX), Microsoft Co. (NASDAQ: MSFT), International Business Machines Co. (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), and Adobe Inc. (NASDAQ: ADBE). Cloud services and content delivery network (CDN) operator Akamai Technologies Inc. (NASDAQ: AKAM) had substantial profits driven by record security services in Q1 2023. Akamai CEO Dr. Tom Leighton commented on the synergy that still exists with its legacy delivery business, “The synergy is both on the top-line, as long-time delivery customers buy our security and compute products and also on the bottom line as we realize the cost benefits of using a single infrastructure to provide security and compute services as well as delivery.” Upside Guidance Akamai raised its Q2 2023 EPS guidance to $1.38 to $1.42 versus $1.35 consensus analyst estimates.
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Akamai’s CDN customers include The Walt Disney Company (NYSE: DIS), Netflix Inc. (NASDAQ: NFLX), Microsoft Co. (NASDAQ: MSFT), International Business Machines Co. (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), and Adobe Inc. (NASDAQ: ADBE). Its CDN business enables growth with its security and compute business as customers discover these additional value-added services. Revenues grew 1.4% year-over-year (YoY) to $916 million, beating $912.13 million consensus analyst estimates.
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15834.0
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2023-05-16 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-5
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nan
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While last year's economic downturn has created a challenging environment for the entire tech industry, one company has remained resilient and become a haven for investors seeking reliability: Apple (NASDAQ: AAPL).
This company has gained a reputation over the years for offering consistent gains. In fact, amid macroeconomic headwinds in 2022, the iPhone manufacturer was one of the only companies to outperform the Nasdaq Composite index among some of the biggest names in tech -- as seen in the table below.
Data by YCharts
The dominance of Apple's products has allowed the company to expand across multiple markets, making its stock an increasingly compelling investment. As a result, now is a great time to learn more about this tech behemoth.
Here are three things about Apple that smart investors know.
1. A walled garden of products
One of the biggest drivers of Apple's success is its walled garden of products that offer users advanced connectivity between all its devices. This strategic system promotes ease of use for consumers but also makes it difficult to stray from the Apple brand. For instance, iPhone users needing a computer are far more likely to turn to the company's Mac lineup than a competitor almost exclusively because of the connectivity between the two devices.
The company's interconnected ecosystem has been an especially useful tool as the iPhone achieved a leading 24% market share in smartphones. Apple has attracted millions of consumers to its iPhone, who have then stayed within the tech giant's lineup of products with other devices. As a result, Apple achieved the largest market shares in tablets, headphones, and smartwatches as it has climbed to the top of consumer tech.
The company has cultivated immense brand loyalty from its walled garden of products, which will likely factor into Apple's reported venture into virtual/augmented reality later this year. The tech giant is expected to soon launch a new headset, which could see it become the leader of the $31 billion industry projected to hit $52 billion by 2027.
2. Strengthening its business through diversification
Consumers' preference for Apple devices has also boosted the company's growing services business. The iPhone manufacturer's digital services include platforms like Apple TV+, Music, iCloud, Fitness+, News+, and Arcade, quickly becoming the company's second-highest earning segment.
In fiscal 2022, services revenue grew 14% year over year to $78 billion, double the iPhone's growth. The segment also reported the most growth in the fiscal second quarter of 2023, with revenue climbing 5% to $21 billion.
Services are a particularly lucrative way for Apple to diversify its business thanks to attractive profit margins. The segment's profit margin hit 71% in Q2 2023, with the same metric for products coming to 36.7%.
As Apple's digital business continues to develop, it allows the company to lean less on product sales amid short-term economic headwinds. The booming business strengthened Apple's revenue stream and increased reliability in its stock.
3. A history of consistent gains
Apple has become the most valuable company in the world, with a market cap of $2.7 trillion alongside a consistently rising stock. The company's shares have risen about 267% in the last five years and 989% in the last decade as investors have increasingly seen Apple as a haven for reliability.
The company's growth history has attracted some of the market's most prominent investors, with Warren Buffett's Berkshire Hathaway making Apple 39% of its portfolio. The MacBook company is by far Berkshire's biggest holding, dwarfing its second-largest holding Bank of America, which takes up 11% of its portfolio.
Berkshire Hathaway first invested in Apple in 2016, with shares rising 556% since then. However, the holding company continues to prove its faith in the tech giant by consistently increasing its stake and buying more shares as recently as the fourth quarter of 2022.
Apple's ability to outperform the market last year and its history of reliable growth make it an immensely compelling stock at almost any time.
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*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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While last year's economic downturn has created a challenging environment for the entire tech industry, one company has remained resilient and become a haven for investors seeking reliability: Apple (NASDAQ: AAPL). Data by YCharts The dominance of Apple's products has allowed the company to expand across multiple markets, making its stock an increasingly compelling investment. The iPhone manufacturer's digital services include platforms like Apple TV+, Music, iCloud, Fitness+, News+, and Arcade, quickly becoming the company's second-highest earning segment.
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While last year's economic downturn has created a challenging environment for the entire tech industry, one company has remained resilient and become a haven for investors seeking reliability: Apple (NASDAQ: AAPL). The company's growth history has attracted some of the market's most prominent investors, with Warren Buffett's Berkshire Hathaway making Apple 39% of its portfolio. Apple's ability to outperform the market last year and its history of reliable growth make it an immensely compelling stock at almost any time.
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While last year's economic downturn has created a challenging environment for the entire tech industry, one company has remained resilient and become a haven for investors seeking reliability: Apple (NASDAQ: AAPL). Data by YCharts The dominance of Apple's products has allowed the company to expand across multiple markets, making its stock an increasingly compelling investment. A history of consistent gains Apple has become the most valuable company in the world, with a market cap of $2.7 trillion alongside a consistently rising stock.
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While last year's economic downturn has created a challenging environment for the entire tech industry, one company has remained resilient and become a haven for investors seeking reliability: Apple (NASDAQ: AAPL). Apple has attracted millions of consumers to its iPhone, who have then stayed within the tech giant's lineup of products with other devices. The company's shares have risen about 267% in the last five years and 989% in the last decade as investors have increasingly seen Apple as a haven for reliability.
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15835.0
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2023-05-16 00:00:00 UTC
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This Stock Market Indicator Has Never Been Worse. Here's What Could Be Coming.
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AAPL
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https://www.nasdaq.com/articles/this-stock-market-indicator-has-never-been-worse.-heres-what-could-be-coming.
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You don't have to look hard to find discouraging economic and market indicators. For example, the three-month/10-year U.S. Treasury yield curve is inverted the most in decades. This typically portends bad news for the economy.
But there's one stock market indicator that has never been worse. And here's what could be coming.
Image source: Getty Images.
Market breadth
J.P. Morgan recently cautioned its clients that market breadth is "the weakest ever" based on some measures. The firm's chief U.S. equity strategist, Dubravko Lakos-Bujas, warned that this could point to a "bearish outcome for the market."
Market breadth is a term used to describe how many stocks are participating in a move for a stock market index. There are several ways to measure market breadth. One common method is to count the number of stocks that are rising versus the number of stocks that are declining. JPMorgan analysts were particularly looking at the percentage of stocks in the S&P 500 that have outperformed the overall index in the latest rally.
Why is weak market breadth potentially bad news? It reflects that investors are only excited about a relatively small number of stocks rather than the broader market. In the past when this has been the case, economic downturns have often followed. In a truly healthy market, a high percentage of stocks will perform well instead of only a few.
The haves and the have-nots
There are two main reasons why the S&P 500's market breadth is so weak right now. First, a handful of big stocks make up a significant percentage of the total index value. Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. The top 10 companies in the S&P 500 make up nearly one-third of the index's total value.
Second, several of these mega-large-cap stocks have been big winners so far in 2023. Shares of Meta Platforms (NASDAQ: META) and Nvidia (NASDAQ: NVDA) have almost doubled year to date. Apple, Microsoft, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA) stocks are up more than 25%.
AAPL data by YCharts
Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. That's an all-time record.
Meanwhile, 341 stocks that are in the S&P 500 have underperformed the overall index this year. Nearly half of the S&P's member stocks are in negative territory year to date. Well over 100 S&P 500 stocks are down by at least 10%.
We're seeing a market driven by the "haves" and the "have-nots." Many of the "haves" are surging due to investors' enthusiasm for AI. Many of the "have-nots" have fallen as a result of the banking crisis.
What should investors do?
If analysts are right that an economic downturn could be on the way, one pragmatic strategy for investors is to move their money into recession-proof stocks. These include consumer staples, healthcare, and utility stocks.
Perhaps the best approach is the one that Warren Buffett is taking to prepare for a recession. Build up a cash stockpile to take advantage of potential buying opportunities. Don't panic. And, above all, have a long-term outlook. What matters more than the breadth of the market is the length of time you're in the market.
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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*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. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. The firm's chief U.S. equity strategist, Dubravko Lakos-Bujas, warned that this could point to a "bearish outcome for the market."
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. Why is weak market breadth potentially bad news?
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. Market breadth is a term used to describe how many stocks are participating in a move for a stock market index.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. The haves and the have-nots There are two main reasons why the S&P 500's market breadth is so weak right now.
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15836.0
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2023-05-16 00:00:00 UTC
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Is It Time to Sell Shiba Inu?
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AAPL
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https://www.nasdaq.com/articles/is-it-time-to-sell-shiba-inu-0
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nan
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nan
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When crypto investors dream of becoming millionaires, they often think of Shiba Inu (CRYPTO: SHIB). The popular meme token brought some investors wealth when it soared 45,000,000% back in 2021. Since, though, the crypto with a cute dog mascot has lost that momentum. And the big question is whether Shiba Inu will ever get it back.
The crypto actually is better today than when it soared in value. It's launched a metaverse project, and its layer-2 solution, Shibarium, is in beta test mode. Still, these elements have failed to push Shiba Inu higher. Is it time to sell? Let's find out.
Shiba Inu's glory days
First, a look back at Shiba Inu's glory days. A veil of mystery surrounded the crypto from its launch: We know of the founder only by the pseudonym "Ryoshi." That and the mascot helped push Shiba Inu into the spotlight. Some social media attention from Tesla chief executive officer Elon Musk helped too. Finally, loyal fans known as the "Shib Army" supported Shiba Inu across social media platforms -- and helped boost the token's popularity.
Of course, seeing Shiba Inu's enormous gains, investors, fearful of missing out, piled in. And it was easy to do that considering the token traded for a fraction of a cent -- and this is still the case, even after the 2021 gains.
Shiba Inu fulfilled the promise of its whitepaper, becoming an example of "decentralized spontaneous community building."
So, why hasn't Shiba Inu continued climbing? For a few reasons. The general economic environment last year didn't favor risky assets such as cryptocurrencies. When the economy weakens, investors generally head for safety. So assets like dividend stocks or healthcare players benefit. All of this weighed on the entire crypto market.
But that isn't the only problem. In fact, that's probably the smallest problem -- because it's temporary and not linked specifically to Shiba Inu.
The bigger issues for Shiba Inu are the facts that it doesn't stand out from other cryptocurrencies, doesn't have many use cases, and struggles with a huge token supply. Shiba Inu is primarily a payment token -- and even there, only a limited number of merchants accept this kind of payment. Otherwise, investors can stake their holding for passive income. Rivals offer the same opportunities -- and often much more.
An enormous token supply
As for circulating token supply, Shiba Inu's tops 589 trillion. The problem here is that limits gains in value. For example, if Shiba Inu were to climb to $1, its market value would be worth $589 trillion -- way more than the entire cryptocurrency market and even massive companies like Apple or Amazon.
In recent times, though, Shiba Inu has made progress in countering these challenges. The crypto introduced its metaverse project, which today allows people to buy land and later will feature gaming and events. Shiba Inu's Shibarium allows developers to build decentralized applications on the layer-2, is low cost, and has a mechanism for burning tokens (the idea here is to lower token supply).
The good news is Shiba Inu has launched these projects. The bad news is they haven't been catalysts to lift the value of the cryptocurrency. In fact, Shiba Inu has slippped about 20% over the past month. If these efforts weren't enough to give Shiba Inu a boost, it's hard to imagine what might lift this meme token in the coming months.
But it isn't too surprising that these developments haven't driven Shiba Inu higher. They're positive events for sure. But they still don't solve the problems I mentioned above. If Shiba Inu doesn't stand out from rivals and the token supply remains high, it's unlikely this crypto will define the cryptocurrency market of tomorrow.
So, should you sell?
The answer to this depends on your financial situation, comfort with risk, and gains or losses on Shiba Inu so far.
Investors who have won on their investment or haven't lost much probably would be better off selling. If you're looking at a potentially big loss and can accept that, you also may consider exiting now. Otherwise, you may prefer sticking around -- it's possible Shiba Inu will recover somewhat if Shibarium and the metaverse project take off.
In any case, today I wouldn't buy Shiba Inu. The cryptocurrency world offers other better opportunities.
10 stocks we like better than Shiba Inu
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 Shiba Inu 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 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon.com and Tesla. The Motley Fool has positions in and recommends Amazon.com, Apple, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Finally, loyal fans known as the "Shib Army" supported Shiba Inu across social media platforms -- and helped boost the token's popularity. If these efforts weren't enough to give Shiba Inu a boost, it's hard to imagine what might lift this meme token in the coming months. If Shiba Inu doesn't stand out from rivals and the token supply remains high, it's unlikely this crypto will define the cryptocurrency market of tomorrow.
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Shiba Inu's glory days First, a look back at Shiba Inu's glory days. Finally, loyal fans known as the "Shib Army" supported Shiba Inu across social media platforms -- and helped boost the token's popularity. An enormous token supply As for circulating token supply, Shiba Inu's tops 589 trillion.
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Shiba Inu's glory days First, a look back at Shiba Inu's glory days. The bigger issues for Shiba Inu are the facts that it doesn't stand out from other cryptocurrencies, doesn't have many use cases, and struggles with a huge token supply. If Shiba Inu doesn't stand out from rivals and the token supply remains high, it's unlikely this crypto will define the cryptocurrency market of tomorrow.
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The bigger issues for Shiba Inu are the facts that it doesn't stand out from other cryptocurrencies, doesn't have many use cases, and struggles with a huge token supply. The problem here is that limits gains in value. The crypto introduced its metaverse project, which today allows people to buy land and later will feature gaming and events.
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15837.0
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2023-05-16 00:00:00 UTC
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EXCLUSIVE-LG Display to supply OLED TV panels to Samsung Elec - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-lg-display-to-supply-oled-tv-panels-to-samsung-elec-sources-0
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nan
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By Heekyong Yang
SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable.
LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said. Initial supplies to Samsung would likely be 77-inch and 83-inch white OLED (WOLED) TV panels.
For Samsung, the deal highlights how it is looking to expand in high-end organic light emitting diode (OLED) TVs as competition heats up in the lower end with Chinese vendors. OLED panels cost nearly five times more than liquid-crystal display (LCD) panels.
All the sources declined to be named because the deal is not public.
Both LG Display and Samsung Electronics declined to comment.
LG Display shares reversed an earlier 1% drop and jumped 2.4% after the Reuters story. Shares in Samsung, which mainly drives its growth from smartphone and semiconductor business, rose 1.7%, beating a 0.2% gain in the broader market .KS11.
Samsung Electronics, the world's biggest TV manufacturer, has been slower than its hometown rival LG Electronics Inc 066570.KS in embracing OLED TVs, arguing the technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels.
For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20%-30% of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts.
The company has been running its OLED factory below full capacity due to a limited customer base and as a pandemic-driven demand surge for new TVs has tapered off amid soaring inflation and slowing economy.
"LG's production rate will improve and is likely to reach full capacity next year, helping it lay the groundwork to return to profit," said Jeff Kim, an analyst at KB Securities.
The company has been in the red for four consecutive quarters since the second quarter last year due to weakening global demand for electronic devices.
The company supplies OLED TV panels to LG Electronics and Sony. It also supplies smartphone displays to Apple Inc AAPL.O.
Samsung Electronics has its own display-making unit Samsung Display which focuses on OLED screens for mobile phones made by Apple and Samsung.
In OLED TVs Samsung currently has a 6.1% market share, behind LG Electronics with 54.6% and Sony 26.1%, according to market research firm Omdia.
The market is expected to grow nearly 6% to $11.7 billion this year and to $12.9 billion by 2027, according to Omdia.
($1 = 1,320.9300 won)
(Reporting by Heekyong Yang; Editing by Miyoung Kim and Sonali Paul)
((Heekyong.Yang@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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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. The company has been running its OLED factory below full capacity due to a limited customer base and as a pandemic-driven demand surge for new TVs has tapered off amid soaring inflation and slowing economy.
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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said.
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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. Samsung Electronics, the world's biggest TV manufacturer, has been slower than its hometown rival LG Electronics Inc 066570.KS in embracing OLED TVs, arguing the technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels.
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It also supplies smartphone displays to Apple Inc AAPL.O. For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20%-30% of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts. The company has been in the red for four consecutive quarters since the second quarter last year due to weakening global demand for electronic devices.
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15838.0
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2023-05-16 00:00:00 UTC
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Just How Important Is AI for Apple's Future?
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AAPL
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https://www.nasdaq.com/articles/just-how-important-is-ai-for-apples-future
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nan
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nan
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When it comes to artificial intelligence (AI), Apple (NASDAQ: AAPL) does not seem to attract as much attention as its mega-tech counterparts. It does not promote AI to the same extent as Google-parent Alphabet. And unlike Microsoft, it has not built a partnership with ChatGPT developer OpenAI.
Nonetheless, even if it does not necessarily call its features AI, Apple plays a prominent role in the field and will likely continue to do so. A closer look reveals the depth to which Apple's products and services rely on AI.
The products and services
Indeed, one could describe all of Apple's current products as AI tools. The iPhone, which accounts for the majority of Apple's revenue, is the company's most prominent AI device.
Unsurprisingly, much of its AI revolves around language, applying machine learning (ML), a subset of AI, for systems to develop their intelligence. It first incorporated AI into the iPhone in 2011 when it introduced Siri. The speech-based personal assistant relies on AI to recognize and process requests and accurately deliver the requested results in a clear and recognizable voice.
In subsequent years, the company has developed numerous ML application programming interfaces (APIs) usable across all its devices related to vision, sound, natural language, and speech.
Its Core ML app integrates prebuilt ML features into other apps. It runs and personalizes models using advanced neural networks and performs those tasks with minimal memory and power consumption. Likewise, Create ML can train Core ML models on a Mac. Given such offerings, AI and ML undoubtedly help Apple bring added functionality to its products as it makes continual updates.
Apple's AI research
An essential part of that advancement is research. As of its fiscal 2023's second quarter (ended April 1), Apple held approximately $177 billion in liquidity. In light of the optionality its assets provide, the company spent more than $15 billion on research and development in the first six months of fiscal 2023. That was a 20% increase from the same period a year ago, and AI likely claimed much of that spending.
Like its mega-tech peers, Apple employs numerous developers and researchers in the AI field. In this endeavor, AI workers on the hardware and software sides of the business build new experiences in all Apple products. Separate groups specializing in ML infrastructure, deep learning, natural language processing, computer vision, and applied research work together to develop this added functionality.
Still, Apple's most important work may come from its investments in the future of AI, and its focus on academia shows this commitment. The company developed a program called Apple Scholars, offering fellowships to Ph.D. students who pursue the latest ML and AI at many of the world's top universities.
Apple also builds on this academic research through its AIML Residency Program. It brings together experts across numerous fields, applying their theoretical knowledge to create products and experiences powered by AI and ML.
To this end, the company also mentors these residents, sends them to AI- and ML-related conferences, and creates opportunities for them to publish their work. Such investments maintain a long-term research and development pipeline, amounting to a sustained competitive advantage in these fields.
Making sense of Apple AI
Given the level of dependence that Apple's products have on AI, the technology is obviously of tremendous importance to the company. Admittedly, it has not always marketed its innovations as AI. Nonetheless, many advancements in its latest product iterations center on the technology.
Moreover, its considerable work on the academic side deepens its research and development pipeline. Not only does that make Apple one of the most essential AI stocks, but it should also remain so for a long time to come.
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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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When it comes to artificial intelligence (AI), Apple (NASDAQ: AAPL) does not seem to attract as much attention as its mega-tech counterparts. In subsequent years, the company has developed numerous ML application programming interfaces (APIs) usable across all its devices related to vision, sound, natural language, and speech. Separate groups specializing in ML infrastructure, deep learning, natural language processing, computer vision, and applied research work together to develop this added functionality.
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When it comes to artificial intelligence (AI), Apple (NASDAQ: AAPL) does not seem to attract as much attention as its mega-tech counterparts. Given such offerings, AI and ML undoubtedly help Apple bring added functionality to its products as it makes continual updates. Separate groups specializing in ML infrastructure, deep learning, natural language processing, computer vision, and applied research work together to develop this added functionality.
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When it comes to artificial intelligence (AI), Apple (NASDAQ: AAPL) does not seem to attract as much attention as its mega-tech counterparts. Unsurprisingly, much of its AI revolves around language, applying machine learning (ML), a subset of AI, for systems to develop their intelligence. The company developed a program called Apple Scholars, offering fellowships to Ph.D. students who pursue the latest ML and AI at many of the world's top universities.
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When it comes to artificial intelligence (AI), Apple (NASDAQ: AAPL) does not seem to attract as much attention as its mega-tech counterparts. Apple's AI research An essential part of that advancement is research. Like its mega-tech peers, Apple employs numerous developers and researchers in the AI field.
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15839.0
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2023-05-16 00:00:00 UTC
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3 Stocks That Could Power the S&P 500 to 4,500 and Beyond
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-could-power-the-sp-500-to-4500-and-beyond
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After the S&P 500 index closed at 4,124 on May 13, 2023, investors have three stocks to ride the uptrend. The widely held index at 4,500 is within reach, needing a gain of 9.1% more. After rising by 18% from its Oct. 2022 low, the uptrend pattern did not break.
Investors would want to consider companies that have quality and growth. Demanding value is not an option because stock investors will pay a premium for the moderate economic growth ahead.
Companies with strong growth prospects will outperform the sector regardless of the economy.
In a bearish scenario, expect the economy to weaken slightly. This is a soft landing where the central bank’s interest rate increases suffices to stop the economy from overheating. Once banks conquer high inflation, the economy will rebound at a steady pace.
AAPL Apple $171.76
GOOGL Alphabet $116.93
NVDA Nvidia $287.99
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is the best of the technology stocks to buy.
Bloomberg reported it will raise $5 billion through a five-part debt offering of bonds. The 30-year bond will have a yield that is around 135 basis points higher than the 30-year U.S. Treasury.
Apple wants to take advantage of its strong credit rating as a corporate issuer. It does not need the funds to spend more on content for Apple TV+ or research and development.
Instead, it may enhance its earnings per share by buying back shares. Expect strong demand for Apple debt. This is more attractive than buying U.S. government debt. As the debt ceiling unfolds, investors would prefer holding Apple’s debt.
In the second quarter, Apple posted revenue of $94.8 billion. Apple Chief Executive Officer Tim Cook said that despite the challenging macroeconomic environment, Apple still posted a record in services revenue.
It also posted a record March quarter for iPhone sales. iPhone sales accounted for $51.33 billion in revenue.
Alphabet (GOOGL)
Source: salarko / Shutterstock.com
Alphabet (NASDAQ:GOOGL) won back skeptical investors when it hosted Google I/O on May 10. In hardware, Pixel Fold and Pixel Tablet offer customers devices with larger screens and performance.
Bard AI Chatbot stole the show, compelling investors to scoop up GOOG stock. Alphabet will remove the waitlist, speeding up the chatbot’s available to everyone. People from over 180 countries and territories may use Bard.
Bard AI will have a profound impact on Google products. It will include image capabilities, coding features, and app integration.
While Microsoft will offer ChatGPT on Office software, it will charge a few. Google users may draft emails and documents with the help of Bard.
Shareholders were previously fearful that Alphabet’s Google would lose search engine market share. The I/O event reversed that negative sentiment. The company will need people to share positive feedback on Bard AI.
That would further allay fears that Microsoft ChatGPT and its Bing search engine would take any of the advertising that Google earns from the search market.
NVIDIA (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) is the leading hardware provider for powering generative artificial intelligence models and custom large language models.
They need a set of cloud services to enable businesses to build their AI models.
Google launched the A3 supercomputer that has up to 26 exaFlops of AI performance. The machine has eight Nvidia H100 “Hopper” GPUs.
The chips accelerate the training and serving of generative AI applications. Other companies are racing to build AI solutions. Nvidia is ramping up production of AI GPUs to an additional 10,000 wafers in 2023. Taiwan Semiconductor will produce the chips.
At a Technology, Media and Telecom conference in March 2023, Chief Financial Officer Colette Kress said that AI is at an inflection point.
Generative AI, including ChatGPT, offers tremendous benefits for consumers and enterprises. With enterprise CEOs focused on AI, expect Nvidia to raise its revenue guidance for 2023.
On the date of publication, Chris Lau 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.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.
The post 3 Stocks That Could Power the S&P 500 to 4,500 and Beyond 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 $171.76 GOOGL Alphabet $116.93 NVDA Nvidia $287.99 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the best of the technology stocks to buy. Demanding value is not an option because stock investors will pay a premium for the moderate economic growth ahead. This is a soft landing where the central bank’s interest rate increases suffices to stop the economy from overheating.
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AAPL Apple $171.76 GOOGL Alphabet $116.93 NVDA Nvidia $287.99 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the best of the technology stocks to buy. Alphabet (GOOGL) Source: salarko / Shutterstock.com Alphabet (NASDAQ:GOOGL) won back skeptical investors when it hosted Google I/O on May 10. Generative AI, including ChatGPT, offers tremendous benefits for consumers and enterprises.
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AAPL Apple $171.76 GOOGL Alphabet $116.93 NVDA Nvidia $287.99 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the best of the technology stocks to buy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After the S&P 500 index closed at 4,124 on May 13, 2023, investors have three stocks to ride the uptrend. Alphabet (GOOGL) Source: salarko / Shutterstock.com Alphabet (NASDAQ:GOOGL) won back skeptical investors when it hosted Google I/O on May 10.
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AAPL Apple $171.76 GOOGL Alphabet $116.93 NVDA Nvidia $287.99 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the best of the technology stocks to buy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After the S&P 500 index closed at 4,124 on May 13, 2023, investors have three stocks to ride the uptrend. Expect strong demand for Apple debt.
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15840.0
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2023-05-15 00:00:00 UTC
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Capitalize on the Emerging Age of AI for Hefty Profits
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AAPL
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https://www.nasdaq.com/articles/capitalize-on-the-emerging-age-of-ai-for-hefty-profits
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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: “Capitalize on the Emerging Age of AI for Hefty Profits” was previously published in March 2023. It has since been updated to include the most relevant information available.
Crisis creates opportunity. And big crises create big opportunities.
For example, did you know that the Internet Economy – which created the world’s first trillion-dollar companies, churning out multiple 1,000% stock market winners – was born amid the 2008 financial crisis?
Technically, the internet was born in the 1990s – the World Wide Web launched on Aug. 6, 1991.
But it wasn’t until Apple (AAPL) released the first iPhone in 2007 – and put the power of the internet literally in the palms of everyone’s hands – that the Internet Economy really started to blossom.
Just look at how the revenue growth trajectories for internet titans like Amazon (AMZN), Alphabet (GOOGL), and Netflix (NFLX) dramatically changed after the iPhone’s launch.
Before the iPhone, internet companies were growing. After, they started to spread like wildfire and take over the world.
It was a critical inflection point – the “tipping point” for the internet revolution…
The moment when everything changed.
Of course, at the time, it didn’t feel like that.
The financial economy was collapsing because of the subprime loan meltdown. Unemployment rates were soaring. Stocks were crashing. Companies were going bankrupt. Home foreclosures were happening left and right.
It felt like the end times, even for internet stocks like Amazon, Netflix, Alphabet, and the iPhone’s maker, Apple. All those stocks dropped between 50% and 60% in 2008 – the year after the iPhone launched.
What a crisis…
And what an opportunity.
Crisis Begets Opportunity
For investors who were able to zoom out and look at the big picture, the financial crisis created the opportunity of a lifetime.
It left internet stocks trading at dirt-cheap valuations just months after the emergence of the Internet Economy’s biggest catalyst of all time – the iPhone.
Those “big-picture” investors were able to recognize that the economy wasn’t going to collapse and that the 2008 crisis – like all financial crises before it – would pass.
They were able to identify the iPhone’s significance as a critical inflection point for the Internet Economy that would spark 10-plus years of super-charged growth.
They were able to see the deep value in internet stocks. And they were smart enough to buy the dip in names like Amazon, Netflix, Apple, and Alphabet.
As a result, those “big-picture” investors have since made fortunes.
Every $10,000 invested in Alphabet stock in late 2008 would be worth nearly $140,000 today. A $10,000 investment in Amazon or Apple stock in late 2008 would be worth nearly $500,000 today. And a $10,000 investment in Netflix stock in late 2008 would be worth over $1 million today.
Said differently…
Investors who were able to zoom out and see the big picture in 2008 – and were able to realize the impact the iPhone would have on the internet economy – would’ve had the chance to turn $10,000 into a million bucks.
Opportunities like that only come around so often. When they do, you have to capitalize on them.
Well, as luck would have it, one of those opportunities is emerging right now.
AI’s “iPhone Moment”
The burgeoning field of artificial intelligence (AI) just had its iPhone moment last year, when Microsoft-backed OpenAI launched ChatGPT. This put the power of sophisticated AI in the hands of everyone with a computer.
Like the internet in the 2010s, AI promises to change every facet of our global economy in the 2020s. It will represent a massive paradigm shift in the way society operates and the way money flows in our economy.
It will change everything about everything. It will create a $15 trillion market by 2030.
And that revolution just had its iPhone moment.
Of course, it may not feel that way today. Stocks got crushed in 2022 and are still trying to claw their way back here in 2023. Indeed, it’s been a brutal 12 months for investors.
But this is exactly where we were 15 years ago – right after the iPhone’s launch and in the midst of a massive stock market crash.
What’s that thing they say about history? That it likes to repeat itself?
History is repeating right now before our very eyes.
The Final Word on AI
Fifteen years ago, internet stocks were crashing just months after their “iPhone moment,” thanks to an economic crisis.
Today, AI stocks are crashing just months after their own “iPhone moment” because the economy is enduring a crisis.
Back then, “big-picture” investors who were able to zoom out and recognize the importance of the internet and the iPhone – and buy the dip in internet stocks – have since made fortunes.
Today, “big-picture” investors who can recognize the importance of AI – and buy the dip in AI stocks – will give themselves the chance to make fortunes, too.
The choice, of course, is yours.
Let the opportunity of a lifetime pass you by – or capitalize on it now.
If you want to take advantage of this revolutionary moment, then I highly suggest you check out our first-ever AI Super Summit. It’s an event we held specifically to help investors capitalize on what may be the biggest technological paradigm shift of our lifetimes.
We even disclosed a few of our top AI stocks to buy right now.
Check out a replay of that event now.
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 Capitalize on the Emerging Age of AI for Hefty Profits appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But it wasn’t until Apple (AAPL) released the first iPhone in 2007 – and put the power of the internet literally in the palms of everyone’s hands – that the Internet Economy really started to blossom. For example, did you know that the Internet Economy – which created the world’s first trillion-dollar companies, churning out multiple 1,000% stock market winners – was born amid the 2008 financial crisis? Just look at how the revenue growth trajectories for internet titans like Amazon (AMZN), Alphabet (GOOGL), and Netflix (NFLX) dramatically changed after the iPhone’s launch.
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But it wasn’t until Apple (AAPL) released the first iPhone in 2007 – and put the power of the internet literally in the palms of everyone’s hands – that the Internet Economy really started to blossom. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “Capitalize on the Emerging Age of AI for Hefty Profits” was previously published in March 2023. The Final Word on AI Fifteen years ago, internet stocks were crashing just months after their “iPhone moment,” thanks to an economic crisis.
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But it wasn’t until Apple (AAPL) released the first iPhone in 2007 – and put the power of the internet literally in the palms of everyone’s hands – that the Internet Economy really started to blossom. It left internet stocks trading at dirt-cheap valuations just months after the emergence of the Internet Economy’s biggest catalyst of all time – the iPhone. The Final Word on AI Fifteen years ago, internet stocks were crashing just months after their “iPhone moment,” thanks to an economic crisis.
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But it wasn’t until Apple (AAPL) released the first iPhone in 2007 – and put the power of the internet literally in the palms of everyone’s hands – that the Internet Economy really started to blossom. It left internet stocks trading at dirt-cheap valuations just months after the emergence of the Internet Economy’s biggest catalyst of all time – the iPhone. Today, AI stocks are crashing just months after their own “iPhone moment” because the economy is enduring a crisis.
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15841.0
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2023-05-15 00:00:00 UTC
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Cracking the Code: 5 Segments to Determine Future Market Direction
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AAPL
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https://www.nasdaq.com/articles/cracking-the-code%3A-5-segments-to-determine-future-market-direction
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nan
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nan
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A Major Market Dichotomy
In ordinary years on Wall Street, the direction of the stock market dictates the direction of stocks. Typically, three in four stocks follow the general market direction. Furthermore, the broad indices tend to trade in tandem. For example, though they may not replicate each other’s performance exactly, usually, if small caps are higher, the Nasdaq and larger caps are higher too.
Considering the above, 2023 is one of the most unique markets in recent years. While most major indices are higher thus far, 60% of stocks are below their 200-day moving averages. The Russell 2000 Index ETF (IWM) is lower by a half percent, while the S&P 500 Index ETF (SPY) is higher by 8%, and the tech-heavy Nasdaq 100 ETF (QQQ) is higher by more than 20%.
Image Source: Zacks Investment Research
Pictured: Small caps are lagging the other major indices.
Clearly, Wall Street is sending mixed signals. However, investors can get a better idea of where the market is going by looking beyond the major indices and focusing on these 5 segments:
Regional Banks
So far, the “Black Swan” of 2023 is the underperformance in small caps caused by the regional banking sector’s woes. The SPDR Regional Bank ETF (KRE) is lower by nearly 40% year-to-date and is approaching prices not seen since the COVID-19 pandemic.
Image Source: Zacks Investment Research
Pictured: KRE has been a huge weight on the general market indices and investor confidence.
Regional banks such as Silicon Valley Bank (SI), First Republic Bank (FRC), and Signature Bank of New York (SBNY) were not properly positioned for such a “hawkish” Federal Reserve and either went under or got bought for pennies on the dollar by stronger, better-capitalized banks such as JP Morgan (JPM) and First Citizens Bank (FCNCA).
Image Source: Zacks Investment Research
Pictured: FCNCA is up more than 100% since acquiring Silicon Valley Bank.
Though the general market has been able to shrug off the weakness thus far, the sector will need to stabilize if U.S. markets are to continue higher.
Semiconductors
One of the best comeback stories of 2023 is the re-emergence of the semiconductor space. After a brief earnings slowdown in the tech bear market, earnings expectations have increased as AI mania takes hold.
Image Source: Zacks Investment Research
Pictured: Recent revisions paint a rosy picture for chip leader Nvidia.
AI is a key growth driver of the current market and semiconductors play a crucial role in advancing AI technology and are a necessary ingredient for AI players to produce enhanced processing power and increased efficiency. Advanced Micro Devices (AMD), Nvidia (NVDA), and Rambus (RMBS) are three key names in the industry to watch. Investors can also track semiconductor ETFs such as the VanEck Semiconductor ETF (SMH).
Big Tech
Cash-rich, big tech is where all the institutional investors are parking their money. In fact, Apple (AAPL) and Microsoft (MSFT) have grown so large that their combined market cap is larger than all the stocks in the Russell 2000 Index combined. That said, thus far, the performance has not spread to smaller tech stocks. While QQQ is near 52-week highs, the Nasdaq 100 Equal Weight Index ETF (QQQE) is well off the 52-week highs achieved in February. However, Monday, QQQE outperformed and retook its 50-day moving average – a bullish sign.
Image Source: Zacks Investment Research
Pictured: QQQE has lagged but is showing signs of life.
To sustain a market uptrend, bulls will either need to see continued outperformance in mega-cap tech names such as Meta Platforms (META), Alphabet (GOOGL), and Oracle (ORCL) or broader participation from small to mid-cap tech stocks. Ideally, a sustainable bull market would have both parties involved.
Bitcoin & Crypto
Whether you trade crypto or not, it is worth watching for sentiment purposes. Bitcoin and other crypto assets are speculative assets that tends to rise when investors have a larger risk appetite. For much of 2023, when Bitcoin or Bitcoin proxies such as Marathon Digital (MARA), MicroStrategy (MSTR), and ProShares Bitcoin ETF (BITO) have risen, equity markets have followed suit.
Gold
Precious metals are often viewed as safe-haven assets. Countries like Russia and China are trying to break away from the world’s reserve currency, the U.S. dollar. Will they find success? It’s up for debate, but investors can watch the action of gold to find clues. The SPDR Gold Shares ETF (GLD) is attempting to break out of a multi-year base.
Image Source: Zacks Investment Research
Pictured: Gold is on the brink of breaking out of a multi-year base structure.
Regardless of what gold does, investors should remember that occasionally gold and equity markets can march to the same rhythm. In other words, if gold breaks out, it is not necessarily a nail in the coffin for equity markets. Either way, the precious metal provides a good hedge and diversification tool at current levels.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, Apple (AAPL) and Microsoft (MSFT) have grown so large that their combined market cap is larger than all the stocks in the Russell 2000 Index combined. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Signature Bank (SBNY) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Pictured: KRE has been a huge weight on the general market indices and investor confidence.
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Signature Bank (SBNY) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports To read this article on Zacks.com click here. In fact, Apple (AAPL) and Microsoft (MSFT) have grown so large that their combined market cap is larger than all the stocks in the Russell 2000 Index combined. Image Source: Zacks Investment Research Pictured: Small caps are lagging the other major indices.
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Signature Bank (SBNY) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports To read this article on Zacks.com click here. In fact, Apple (AAPL) and Microsoft (MSFT) have grown so large that their combined market cap is larger than all the stocks in the Russell 2000 Index combined. A Major Market Dichotomy In ordinary years on Wall Street, the direction of the stock market dictates the direction of stocks.
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In fact, Apple (AAPL) and Microsoft (MSFT) have grown so large that their combined market cap is larger than all the stocks in the Russell 2000 Index combined. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Signature Bank (SBNY) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports To read this article on Zacks.com click here. For example, though they may not replicate each other’s performance exactly, usually, if small caps are higher, the Nasdaq and larger caps are higher too.
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15842.0
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2023-05-15 00:00:00 UTC
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3 Penny Stocks Backed by Billionaire Investors
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AAPL
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https://www.nasdaq.com/articles/3-penny-stocks-backed-by-billionaire-investors
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Smart money doesn’t only go to large companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). Many investors look for smaller companies poised for a breakout that have reasonable valuations. Still, penny stocks have their risks — over 90% fail. But the stocks that do well can yield respectable returns for investors.
Many retail investors buy penny stocks in the pursuit of high returns, and billionaires are investing right alongside them. Investors can select from many penny stocks, but smart money offers clues. While you shouldn’t buy a stock only because a billionaire put money into it, these investors conduct due diligence before entering and exiting investments. Following billionaire investors can reveal great stock ideas to consider, but you should do your own research to see if their stock picks align with your portfolio goals.
Penny stocks have great potential due to their small market caps. While most penny stocks fail, finding diamonds in the rough can be quite profitable. Billionaire investors have recently poured their cash into these three penny stocks:
Vaalco Energy (EGY)
Source: Shutterstock
Vaalco Energy (NYSE:EGY) acquires and develops properties to produce crude oil, natural gas and natural liquids. The Houston-based company has production sites in West Africa and Western Canada.
Investors may notice a P/E ratio under 6, along with a 6.78% dividend yield. The company recently announced a $0.063 per share dividend, which is almost double last quarter’s dividend of $0.033 per share. The company’s FY22 net income of $51.9 million ($0.73 per diluted share) and debt-free balance sheet suggest the dividend is sustainable.
Billionaires Jim Simons and Howard L. Morgan hold over 2.7 million Vaalco Energy shares in their firm, Renaissance Technologies LLC. Their stake in the company exceeds $11 million, and the firm is set to receive over $168,000 from the quarterly dividend.
The penny stock’s performance is heavily tied to the oil and gas industry. That industry saw record profits in 2022, and many companies have enough cash flow to make bigger investments in 2023. Vaalco Energy ended 2022 with an unrestricted cash balance of $37.2 million and adjusted working capital of $44.2 million.
Arc Document Solutions (ARC)
Source: Shutterstock
Arc Document Solutions (NYSE:ARC) is a digital printing company that converts hardcopy documents into secure and searchable digital libraries. The company serves a wide range of professionals who want to make their graphic designs more tangible. Arc Document Solutions has over 150 digital print shops in the United States.
When looking at any penny stock, it’s important to look at the fundamentals and valuation. The company has a respectable 11.31 P/E ratio and a dividend yield hovering at around 6.82%. It’s rare to find penny stocks that are profitable and give out dividends, but Arc Document Solutions checks both boxes. After pausing its dividend for over a decade, the company reinstated it in 2020. Within three years, the dividend has gone up from $0.01 per share to $0.05 per share. The penny stock’s 80% payout ratio doesn’t suggest much room for the dividend to grow, but the company has experienced seven consecutive quarters of domestic sales growth, which can improve the payout ratio in the future.
David G. Booth and Rex Sinquefield of Dimension Fund Advisors believe in the company’s future. The billionaires have invested over $5 million into the stock through their firm and are set to receive a dividend of over $90,000 from their position this quarter.
Rover Group (ROVR)
Source: rafapress / Shutterstock.com
Rover (NASDAQ:ROVR) is a freelance marketplace where people can buy and sell pet care services. Customers can find dog walkers, pet sitters and other freelancing services on the platform. The penny stock has a market cap just shy of $1 billion and surged over 16% on strong Q1 2023 earnings.
The pet care industry saw a boost during the pandemic as more people became pet owners. Morgan Stanley predicts the pet care industry will grow at 8% per year by 2030. Rover stands to benefit from this tailwind, and the company’s earning estimates project 22% year-over-year revenue growth at the midpoint. If the guidance holds, investors can expect Rover to generate $207-$217 million in 2023. The company also approved a $50 million stock buyback program in an effort to increase share prices by reducing the supply of common stock.
The average analyst price target for Rover is $5.75, which suggests a 23.39% upside over the next 12 months. Vanguard, Blackrock, and Fidelity own Rover shares across several mutual funds.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On this date of publication, Marc Guberti 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.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
The post 3 Penny Stocks Backed by Billionaire Investors 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart money doesn’t only go to large companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). While you shouldn’t buy a stock only because a billionaire put money into it, these investors conduct due diligence before entering and exiting investments. Billionaires Jim Simons and Howard L. Morgan hold over 2.7 million Vaalco Energy shares in their firm, Renaissance Technologies LLC.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart money doesn’t only go to large companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). Billionaire investors have recently poured their cash into these three penny stocks: Vaalco Energy (EGY) Source: Shutterstock Vaalco Energy (NYSE:EGY) acquires and develops properties to produce crude oil, natural gas and natural liquids. Arc Document Solutions (ARC) Source: Shutterstock Arc Document Solutions (NYSE:ARC) is a digital printing company that converts hardcopy documents into secure and searchable digital libraries.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart money doesn’t only go to large companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). The company also approved a $50 million stock buyback program in an effort to increase share prices by reducing the supply of common stock. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart money doesn’t only go to large companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). The company recently announced a $0.063 per share dividend, which is almost double last quarter’s dividend of $0.033 per share. Billionaires Jim Simons and Howard L. Morgan hold over 2.7 million Vaalco Energy shares in their firm, Renaissance Technologies LLC.
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2023-05-15 00:00:00 UTC
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Best Stocks To Invest In Right Now? 2 Blue Chip Stocks To Know
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AAPL
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-2-blue-chip-stocks-to-know
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You can think of blue-chip stocks like the star players on a sports team. Just as a star player is reliable and can be counted on to perform well in a game, a blue-chip company is a large, stable company with a history of dependable performance. These are the companies that have been around for a long time and are leaders in their industries. They’re like the popular kids in school that everyone knows and trusts. You’ve probably heard of many blue-chip companies – they’re names like Apple (NASDAQ: AAPL), Walt Disney Company (NYSE: DIS), and Coca-Cola (NYSE: KO) to name a few.
So why would someone want to invest in blue-chip stocks? Well, these stocks can be a good choice for people who want to make money over time but don’t want to take a lot of risks. These companies often pay out dividends, which is a way of sharing their profits with their shareholders. It’s like if you helped a friend sell lemonade and then they gave you a portion of the money they earned as a thank-you. This makes blue-chip stocks a popular choice for people who want to build up their savings.
However, just like in a sports game, there’s no guarantee of success. Sometimes even star players have off days. Similarly, blue-chip companies can face challenges, such as changes in the economy or new competition. Therefore, it’s important to do your homework and understand the company before you invest in it. Just as you would check the stats of a player before adding them to your fantasy team, you should study a company’s performance before buying its stock. That way, you can make an informed decision and increase your chances of success. With these factors in mind, here are two blue chip stocks to check out in the stock market today.
Blue Chip Stocks To Watch Right Now
The Procter & Gamble Company (NYSE: PG)
Microsoft Corporation (NASDAQ: MSFT)
Procter & Gamble Co. (PG Stock)
First up, The Procter & Gamble Company (PG) is a globally recognized consumer goods corporation with a diverse portfolio of leading brands. This includes household names such as Tide laundry detergent, Pampers baby products, and Gillette grooming supplies, among many others.
Last month, Procter & Gamble reported better-than-expected third-quarter 2023 earnings results. Diving in, the company posted a Q3 2023 EPS of $1.37 per share, on revenue of $20.1 billion. This is versus Wall Street’s estimates which were earnings of $1.32 per share, along with revenue estimates of $19.3 billion.
Looking that the last month of trading action, PG stock is up 3.07%. While, during Monday’s late-morning trading session, shares of PG stock are trading at $155.71 per share.
Source: TD Ameritrade TOS
[Read More] 3 Semiconductor Stocks To Watch In May 2023
Microsoft (MSFT Stock)
Next, Microsoft (MSFT) is one of the largest and most influential tech companies globally, known for its Windows operating system and Office productivity suite. It has successfully diversified its business, with significant growth in cloud computing through its Azure platform.
Just today, Monday, Microsoft announced new Artificial Intelligence (AI) solutions and enhancements for its service, the Microsoft Cloud for Nonprofit. These updates are intended to revolutionize the nonprofit sector by altering how fundraisers connect with donors, organize campaigns, and streamline their operations. Furthermore, Microsoft has initiated a restricted private preview of a new AI-enabled fundraising model. In this test phase, selected nonprofit organizations can experiment with new AI tools that assist in predicting fundraising targets using data modeling and pinpointing the donors who are most likely to contribute to a campaign, cause, or substantial donation.
Over the last month of trading, shares of Microsoft stock have advanced by 7.09%. While, ahead of Monday’s lunchtime trading session, shares of MSFT stock are trading modestly higher by 0.14% at $309.40 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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You’ve probably heard of many blue-chip companies – they’re names like Apple (NASDAQ: AAPL), Walt Disney Company (NYSE: DIS), and Coca-Cola (NYSE: KO) to name a few. These updates are intended to revolutionize the nonprofit sector by altering how fundraisers connect with donors, organize campaigns, and streamline their operations. In this test phase, selected nonprofit organizations can experiment with new AI tools that assist in predicting fundraising targets using data modeling and pinpointing the donors who are most likely to contribute to a campaign, cause, or substantial donation.
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You’ve probably heard of many blue-chip companies – they’re names like Apple (NASDAQ: AAPL), Walt Disney Company (NYSE: DIS), and Coca-Cola (NYSE: KO) to name a few. Blue Chip Stocks To Watch Right Now The Procter & Gamble Company (NYSE: PG) Microsoft Corporation (NASDAQ: MSFT) Procter & Gamble Co. (PG Stock) First up, The Procter & Gamble Company (PG) is a globally recognized consumer goods corporation with a diverse portfolio of leading brands. While, during Monday’s late-morning trading session, shares of PG stock are trading at $155.71 per share.
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You’ve probably heard of many blue-chip companies – they’re names like Apple (NASDAQ: AAPL), Walt Disney Company (NYSE: DIS), and Coca-Cola (NYSE: KO) to name a few. Blue Chip Stocks To Watch Right Now The Procter & Gamble Company (NYSE: PG) Microsoft Corporation (NASDAQ: MSFT) Procter & Gamble Co. (PG Stock) First up, The Procter & Gamble Company (PG) is a globally recognized consumer goods corporation with a diverse portfolio of leading brands. While, during Monday’s late-morning trading session, shares of PG stock are trading at $155.71 per share.
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You’ve probably heard of many blue-chip companies – they’re names like Apple (NASDAQ: AAPL), Walt Disney Company (NYSE: DIS), and Coca-Cola (NYSE: KO) to name a few. So why would someone want to invest in blue-chip stocks? This makes blue-chip stocks a popular choice for people who want to build up their savings.
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15844.0
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2023-05-15 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $2,115.00K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%242115.00k
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nan
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nan
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On May 15, 2023 at 09:42:25 ET an unusually large $2,115.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 67 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.06th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6397 funds or institutions reporting positions in Apple. This is an increase of 138 owner(s) or 2.20% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.55%, an increase of 29.73%. Total shares owned by institutions increased in the last three months by 0.07% to 10,104,746K shares.
The put/call ratio of AAPL is 1.04, indicating a bearish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 5.48% Upside
As of May 11, 2023, the average one-year price target for Apple is 182.03. The forecasts range from a low of 119.18 to a high of $219.45. The average price target represents an increase of 5.48% from its latest reported closing price of 172.57.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.69% ownership of the company. In it's prior filing, the firm reported owning 894,802K shares, representing an increase of 0.04%. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 459,387K shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 455,109K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AAPL by 12.36% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 345,686K shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 342,454K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AAPL by 12.57% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.44% ownership of the company. In it's prior filing, the firm reported owning 224,864K shares, representing an increase of 0.63%. The firm decreased its portfolio allocation in AAPL by 7.53% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
See all Apple regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On May 15, 2023 at 09:42:25 ET an unusually large $2,115.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 67 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.06th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.55%, an increase of 29.73%.
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On May 15, 2023 at 09:42:25 ET an unusually large $2,115.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 67 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.06th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.55%, an increase of 29.73%.
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On May 15, 2023 at 09:42:25 ET an unusually large $2,115.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 67 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.06th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.55%, an increase of 29.73%.
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On May 15, 2023 at 09:42:25 ET an unusually large $2,115.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 67 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.06th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.55%, an increase of 29.73%.
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15845.0
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2023-05-15 00:00:00 UTC
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EXCLUSIVE-LG Display to supply OLED TV panels to Samsung Elec - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-lg-display-to-supply-oled-tv-panels-to-samsung-elec-sources
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nan
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nan
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By Heekyong Yang
SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable.
LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said. Initial supplies to Samsung would likely be 77-inch and 83-inch white OLED (WOLED) TV panels.
For Samsung, the deal highlights how it is looking to expand in high-end organic light emitting diode (OLED) TVs as competition heats up in the lower end with Chinese vendors. OLED panels cost nearly five times more than liquid-crystal display (LCD) panels.
All the sources declined to be named because the deal is not public.
Both LG Display and Samsung Electronics declined to comment.
Samsung Electronics, the world's biggest TV manufacturer, has been slower than its hometown rival LG Electronics Inc 066570.KS in embracing OLED TVs, arguing the technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels.
For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20%-30% of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts.
The company has been running its OLED factory below full capacity due to a limited customer base and as a pandemic-driven demand surge for new TVs has tapered off amid soaring inflation and slowing economy.
LG Display supplies OLED TV panels to LG Electronics and Sony. It also supplies smartphone displays to Apple Inc AAPL.O.
Samsung Electronics has its own display-making unit Samsung Display which focuses on OLED screens for mobile phones made by Apple and Samsung.
In OLED TVs Samsung currently has a 6.1% market share, behind LG Electronics with 54.6% and Sony 26.1%, according to market research firm Omdia.
The market is expected to grow nearly 6% to $11.7 billion this year and to $12.9 billion by 2027, according to Omdia.
($1 = 1,320.9300 won)
(Reporting by Heekyong Yang; Editing by Miyoung Kim and Sonali Paul)
((Heekyong.Yang@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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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. For Samsung, the deal highlights how it is looking to expand in high-end organic light emitting diode (OLED) TVs as competition heats up in the lower end with Chinese vendors.
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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said.
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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. Samsung Electronics, the world's biggest TV manufacturer, has been slower than its hometown rival LG Electronics Inc 066570.KS in embracing OLED TVs, arguing the technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels.
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It also supplies smartphone displays to Apple Inc AAPL.O. By Heekyong Yang SEOUL, May 16 (Reuters) - South Korea's LG Display Co Ltd 034220.KS will start supplying high-end TV panels to Samsung Electronic Co Ltd 005930.KS from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20%-30% of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts.
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15846.0
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2023-05-15 00:00:00 UTC
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5 Stocks to Buy Before They Become the Next Trillion-Dollar Companies
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AAPL
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https://www.nasdaq.com/articles/5-stocks-to-buy-before-they-become-the-next-trillion-dollar-companies
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here.
We’ve recently seen a surge of interest in finding the next trillion-dollar company.
Perhaps it’s the recent successes of current trillion-dollar companies. Microsoft (NASDAQ:MSFT) has risen 28% this year, while Apple (NASDAQ:AAPL) has surged 37%. Or maybe the thought of missing out on a summer rally is becoming too great to ignore. Will any stock be able to ride it to a $1 trillion valuation?
Yet, becoming a trillion-dollar company is hard. A typical corporation needs to generate roughly $30 billion in annual free cash flow to achieve a justified value of $1 trillion, or at least be on track to doing so. This measures the actual amount of cash an enterprise generates after deducting necessary expenses.
Many firms also fail to maintain such lofty valuations.
The inflated $569 billion price tag Cisco (NASDAQ:CSCO) sported in 2000 (or $1 trillion in today’s dollars) lost 85% of its value as the dot-com mania subsided. Adjusted for inflation, the firm was only producing $8.1 billion in free cash flow at the time. Speculative cryptocurrencies like Bitcoin (BTC-USD) can do even worse. The world’s largest crypto has now surpassed the $1 trillion mark twice, only to disappoint investors each time.
The trick, of course, is knowing which companies will generate that magic $30 billion FCF figure, and which will not.
Some require an enormous leap of faith. Firms like Tesla (NASDAQ:TSLA) will need to create yet-to-be-invented streams of revenues to achieve $30 billion FCF, such as renting customer vehicles out as driverless taxis. These bets are only appropriate for risk-tolerant investors who don’t mind buying duds along the way.
Other companies have a far clearer path to $1 trillion. Maturing firms like Amazon in the late 2010s only needed to sell more online goods and cloud computing services. They didn’t have to invent businesses out of thin air.
Today, we’re going to examine five stocks to buy in this increasingly popular field of potential trillion-dollar companies.
Nvidia (NVDA)
Source: Sundry Photography / Shutterstock.com
InvestorPlace analyst Louis Navellier has been bullish on Nvidia (NASDAQ:NVDA) for years. It wasn’t so much the semiconductor designer’s focus on high-end graphic processing units (GPUs) – although that certainly helped.
Instead, Louis realized that the Silicon Valley chip company was incredible at figuring out how to make itself essential.
That ingenuity has transformed Nvidia from a videogame rendering firm into one at the forefront of machine learning. Its high-end processors are now used for everything from training new large language models to helping radiologists identify breast cancer from MRI images.
Essentially, GPUs have a far higher number of cores than ordinary central processing units (CPUs), allowing for simultaneous computations. By some estimates, GPUs are four to five times faster than CPUs – an enormous difference, because most large AI models can take months to train. Nvidia is the dominant firm in the high-end market.
That sets Nvidia, which currently is valued at around $700 billion, on the path to becoming the next trillion-dollar company. The company surpassed Cisco’s (inflation adjusted) $8 billion FCF mark two years ago, and analysts forecast well over $14 billion free cash flow by 2026. With GPU demand forecast to increase at almost 30% annually through 2030, Nvidia is a firm with one of the clearest trajectories to $1 trillion.
You can read Louis’ most recent update on Nvidia here, and a more recent update from InvestorPlace.com writer David Moadel here.
Visa (V)
Source: Kikinunchi / Shutterstock.com
On the other hand, longtime readers will know that Louis has choice words for the banking sector. He spent years at what’s now the FDIC helping banks pass regulatory hurdles. Looking back, he calls it “putting lipstick on a pig.”
Nevertheless, financial firms are still an essential part of any economy. And as the industry develops beyond old-fashioned banking via fintech innovations, investors are beginning to have investment choices beyond risky “lipstick-on-a-pig” banks.
And that brings us to Visa (NYSE:V), a financial processing firm that generates revenues from merchants every time users make a purchase.
From a financial standpoint, Visa has a clear path to a trillion-dollar valuation. The company, whose market cap now stands at around $480 billion, generated $18 billion in free cash flow in 2022, and analysts believe that rate will grow roughly 10% per year as consumers worldwide increasingly abandon cash transactions. Remember that countries like India still lag in contactless payments.
InvestorPlace.com writer Muslim Farooque takes a closer look at Visa – and two other fintech stocks worth looking at – here.
Additionally, InvestorPlace analyst Luke Lango is now seeing a “goldilocks” moment for stocks, where America enjoys a soft landing. This economic stability is important for firms like Visa that rely on lucrative cross-border transactions from travelers. With the economy moving back on track, Visa will likely achieve a $30 billion FCF level by 2028.
Berkshire Hathaway (BRK-A, BRK-B)
Source: IgorGolovniov / Shutterstock.com
Warren Buffett’s financial holding company is an extraordinarily lucrative enterprise that generated $22 billion of FCF in 2022.
Of course, the term “free cash flow” needs to be used loosely here. Berkshire relies on subsidiaries to generate cash, and modern accounting rules treat these figures differently depending on the levels of ownership. A small equity stake, for instance, will only count the equity value of the investment.
Nevertheless, it’s a metric that’s helpful in understanding the value of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). The company’s incoming CEO, Greg Abel, is known as an astute dealmaker. This means Berkshire will likely find ways to expand long after current management at the company retires.
And because the firm distributes only a small fraction of its cash back to shareholders, Berkshire Hathaway naturally grows larger over time. (It currently has a market cap of around $708 billion.) In a sense, it’s like filling an empty swimming pool without draining any water.
That naturally puts the Omaha, Nebraska-based firm on a path to generating $30 billion of cash per year within the decade. For risk-averse investors seeking stable growth, Berkshire Hathaway is an ideal holding for the long run.
Exxon Mobil (XOM)
Source: Harry Green / Shutterstock.com
This is perhaps the strangest company on this list. It’s a company that generated $58 billion in free cash flow in 2022, yet trades well under the $1 trillion mark.
The reason for this mismatch is simple:
Investors don’t believe Exxon Mobil (NYSE:XOM) can maintain a $30 billion-plus FCF for long.
Analysts expect the energy giant will see cash flows shrink to $41 billion this year and $39 billion the next as energy prices stall and electric vehicles replace gas-guzzling ones.
We’re broadly of a different mind here at InvestorPlace.com. This week, Eric Fry notes that the International Energy Agency now believes that the oil market will fall into a 400,000 barrel-per-day (BPD) deficit soon, then swell to a 2-million-BPD deficit in the second half of the year. Reasons include unexpectedly strong Chinese demand, an OPEC+ cut, and a general unwillingness of American drillers to boost production.
That means Louis’ $100-per-barrel oil prediction could happen as soon as this summer, if not by the end of the year. Such a reversal will reduce Exxon’s historic price discount and send shares higher. (Its market cap is now at around $430 billion.)
Longer term, Exxon has also shown an ability to profitably adapt to new situations. InvestorPlace.com’s Josh Enomoto notes that Exxon has 40 years of consecutive annual dividend increases, a feat achieved by expanding into offshore drilling, horizontal fracking, and downstream chemical production.
As governments increasingly push EV adoption, don’t be surprised if Exxon surprises investors once again.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Finally, Facebook’s parent could soon regain its trillion-dollar crown.
Social media giant Meta Platforms (NASDAQ:META) first became worth $1 trillion in June 2021 on an accelerating advertising business. At the time, analysts believed the firm would generate $33 billion the following year.
That didn’t go to plan. The company would instead post $19 billion in free cash flow due to a slowdown in online advertising and mounting losses from its virtual reality business. Meta’s market capitalization sank as low as $250 million last year. (It’s inched back up to around $600 billion.)
Still, Luke sees Meta as a promising bet. Earlier this month, he noted that the firm’s aggressive cost-cutting measures and improving ad business were already showing positive results. And soft inflation figures from earlier this week set the stage for a summer stock surge. Facebook is historically more sensitive than its peers to market cycles.
That means a recovery could happen faster than expected. FCF is now expected to recover to $23 billion this year and hit the “magic” $30 billion level in 2024. Heavy advertising spending from the 2024 presidential election means these figures will likely play out this time around.
Free Cash Flow: Boring, But Vital
There’s nothing attractive about the term “free cash flow.”
It conjures no imagery of “growth” or “innovation.” Nor does it sound much like “intrinsic value” or “cheapness” for the value investors out there.
The term is also merciless in penalizing cash costs as they happen. If a company suffers a fire at a warehouse, FCF doesn’t care that it’s a one-time loss or who started the blaze. It only cares about how much money the insurance firm sends back.
Predicting the next trillion-dollar companies requires this unsparing level of reality.
That’s because hype alone is rarely enough to move companies into the trillion-dollar club. Cisco, Bitcoin, and Tesla joined that group only briefly before reality set in (inflation adjusted, of course, for Cisco).
On the other hand, shares of companies that produce enormous amounts of cash have no choice but to only go up.
For his part, Luke says investors are starting to realize that their dream of a “soft landing” is coming true.
He and his team are confident that over the next few months, the Fed will stop its rate-hiking campaign. Meanwhile, they believe, the economy will avoid a recession due to job market resilience.
And he says you can start capitalizing on them – including our potential trillion-dollar companies – now.
As each economic report makes his predicted outcome more visible and likely, Luke says, stocks will keep pushing higher.
Join the party, and position yourself for potentially huge gains in the coming summer stock rally.
On the date of publication, Tom Yeung held a LONG position in GOOG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
The post 5 Stocks to Buy Before They Become the Next Trillion-Dollar Companies 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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Microsoft (NASDAQ:MSFT) has risen 28% this year, while Apple (NASDAQ:AAPL) has surged 37%. Firms like Tesla (NASDAQ:TSLA) will need to create yet-to-be-invented streams of revenues to achieve $30 billion FCF, such as renting customer vehicles out as driverless taxis. Berkshire Hathaway (BRK-A, BRK-B) Source: IgorGolovniov / Shutterstock.com Warren Buffett’s financial holding company is an extraordinarily lucrative enterprise that generated $22 billion of FCF in 2022.
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Microsoft (NASDAQ:MSFT) has risen 28% this year, while Apple (NASDAQ:AAPL) has surged 37%. The company surpassed Cisco’s (inflation adjusted) $8 billion FCF mark two years ago, and analysts forecast well over $14 billion free cash flow by 2026. The company, whose market cap now stands at around $480 billion, generated $18 billion in free cash flow in 2022, and analysts believe that rate will grow roughly 10% per year as consumers worldwide increasingly abandon cash transactions.
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Microsoft (NASDAQ:MSFT) has risen 28% this year, while Apple (NASDAQ:AAPL) has surged 37%. The company surpassed Cisco’s (inflation adjusted) $8 billion FCF mark two years ago, and analysts forecast well over $14 billion free cash flow by 2026. The company, whose market cap now stands at around $480 billion, generated $18 billion in free cash flow in 2022, and analysts believe that rate will grow roughly 10% per year as consumers worldwide increasingly abandon cash transactions.
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Microsoft (NASDAQ:MSFT) has risen 28% this year, while Apple (NASDAQ:AAPL) has surged 37%. The company surpassed Cisco’s (inflation adjusted) $8 billion FCF mark two years ago, and analysts forecast well over $14 billion free cash flow by 2026. It’s a company that generated $58 billion in free cash flow in 2022, yet trades well under the $1 trillion mark.
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15847.0
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2023-05-15 00:00:00 UTC
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PC Market on the Mend, Benefits Abound for Tech ETFs
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AAPL
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https://www.nasdaq.com/articles/pc-market-on-the-mend-benefits-abound-for-tech-etfs
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nan
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nan
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PCs, be they desktops or laptops, are no longer considered “high tech.” Rather, they’re essential parts of everyday life around the world. As a result, many investors don’t view this as the high-octane market segment it was several decades ago.
That doesn’t mean related investment opportunities are limited. Quite the contrary. While the PC market endured a slump over the past couple of years, some analysts believe it’s primed for a resurgence and that rebound could bring positive implications for exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
Indeed, PCs represent one of the slowest growth corners of the tech sector. But consumers and businesses still need to periodically refresh their tech stack. That upgrade cycle could benefit plenty of members of the QQQ and QQQM rosters.
“If you assume that users replace their PCs every four years, which is the five-year pre-COVID average, that about 65% of the current PC installed base or roughly 760 million units is going to be due for a refresh in 2024 and 2025,” noted Morgan Stanley hardware IT analyst Erik Woodring.
Pulse on PC Market Outlook
For investors looking to capitalize on the PC upgrade cycle, QQQ and QQQM could be ideal options. Both ETFs allocate nearly 49% of their rosters to the tech sector. Within that are plenty of companies with direct ties to PC sales, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and to a lesser extent, Google parent Alphabet (NASDAQ: GOOG).
Add to that, QQQ and QQQM are homes to an array of semiconductor equities with direct ties to the PC space, including Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD). Perhaps adding to prospects of a PC market rebound are expectations that the bounce back will be driven by corporations.
“We think the replacements and upgrades in 2024 and 2025, will come from the commercial market. With 70% of our 2024 PC shipment growth coming from commercial entities. Commercial entities are much more regular when it comes to upgrades. And they need greater memory capacity and compute power to handle their ever-expanding workloads,” added Woodring.
The analyst also points to generative artificial intelligence (AI) as a potential driver of increased PC demand. Because that nascent industry requires increased, higher-cost computing power. That could boost a slew of QQQ and QQQM member firms, including chip makers such as AMD and Nvidia (NASDAQ: NVDA).
For more news, information, and analysis, visit the ETF Education 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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Within that are plenty of companies with direct ties to PC sales, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and to a lesser extent, Google parent Alphabet (NASDAQ: GOOG). PCs, be they desktops or laptops, are no longer considered “high tech.” Rather, they’re essential parts of everyday life around the world. “If you assume that users replace their PCs every four years, which is the five-year pre-COVID average, that about 65% of the current PC installed base or roughly 760 million units is going to be due for a refresh in 2024 and 2025,” noted Morgan Stanley hardware IT analyst Erik Woodring.
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Within that are plenty of companies with direct ties to PC sales, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and to a lesser extent, Google parent Alphabet (NASDAQ: GOOG). While the PC market endured a slump over the past couple of years, some analysts believe it’s primed for a resurgence and that rebound could bring positive implications for exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). That upgrade cycle could benefit plenty of members of the QQQ and QQQM rosters.
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Within that are plenty of companies with direct ties to PC sales, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and to a lesser extent, Google parent Alphabet (NASDAQ: GOOG). While the PC market endured a slump over the past couple of years, some analysts believe it’s primed for a resurgence and that rebound could bring positive implications for exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Pulse on PC Market Outlook For investors looking to capitalize on the PC upgrade cycle, QQQ and QQQM could be ideal options.
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Within that are plenty of companies with direct ties to PC sales, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and to a lesser extent, Google parent Alphabet (NASDAQ: GOOG). Pulse on PC Market Outlook For investors looking to capitalize on the PC upgrade cycle, QQQ and QQQM could be ideal options. Both ETFs allocate nearly 49% of their rosters to the tech sector.
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15848.0
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2023-05-15 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Apple
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AAPL
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-apple-8
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nan
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nan
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At Holdings Channel, we have reviewed the latest batch of the 247 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 97 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Academy Capital Management Inc. TX Existing -2,943 +$12,291
Advisor Group Holdings Inc. Existing -83,099 +$307,542
Advisory Research Inc. Existing -55,146 -$5,361
Algert Global LLC Existing +1,001 +$1,809
Accuvest Global Advisors Existing +110,423 +$19,666
Blackhill Capital Inc. Existing UNCH +$9,197
Boston Financial Mangement LLC Existing -65,979 +$18,156
Blueprint Investment Partners LLC Existing +41,383 +$7,226
Cary Street Partners Asset Management LLC Existing -3,063 +$868
CKW Financial Group Existing +105 +$555
Catalyst Capital Advisors LLC Existing -3,030 +$200
Cercano Management LLC Existing -139,465 -$17,547
Cresta Advisors Ltd. Existing -40 +$1,244
Dimension Capital Management LLC Existing -62 +$960
Dodge & Cox Existing -500 +$797
Elkhorn Partners Limited Partnership Existing -355 +$506
Eldridge Investment Advisors Inc. Existing -170 +$803
First Commonwealth Financial Corp PA Existing -1,197 +$2,749
Fort L.P. Existing -113 +$133
Financial Gravity Asset Management Inc. Existing +7,477 +$14,524
Fort Sheridan Advisors LLC Existing +19,685 +$10,193
Freestone Capital Holdings LLC Existing -4,795 +$11,112
Gitterman Wealth Management LLC Existing -1,744 +$962
Gladstone Institutional Advisory LLC Existing +2,249 +$8,568
Hanseatic Management Services Inc. NEW +6,362 +$1,111
HAP Trading LLC Existing -29,600 +$2,971
HCR Wealth Advisors Existing -2,665 +$19,503
Healthcare of Ontario Pension Plan Trust Fund Existing +966,832 +$295,635
Hoya Capital Real Estate LLC Existing UNCH +$122
Hudson Portfolio Management LLC Existing -500 +$372
ICA Group Wealth Management LLC Existing -83 +$3,134
Intact Investment Management Inc. Existing +1,400 +$2,018
Jacobson & Schmitt Advisors LLC NEW +1,321 +$218
Krane Funds Advisors LLC Existing +8,517 +$1,606
Logan Capital Management Inc. Existing -8,883 +$26,912
Lauer Wealth LLC NEW +3,130 +$517
MAS Advisors LLC Existing -1,585 -$79
Mogy Joel R Investment Counsel Inc. Existing -18,999 +$21,631
Menard Financial Group LLC Existing +337 +$474
Mission Creek Capital Partners Inc. Existing -6,103 +$2,022
Missouri Trust & Investment Co Existing -788 +$725
Nixon Peabody Trust Co. Existing +2,606 +$2,641
Night Owl Capital Management LLC Existing UNCH +$133
Ossiam Existing -212,313 +$7,742
Overbrook Management Corp Existing -5,938 +$3,222
Portland Investment Counsel Inc. Existing +5 +$269
Rational Advisors LLC Existing +2,893 +$1,270
Relative Value Partners Group LLC Existing +2,208 +$1,064
RiverGlades Family Offices LLC Existing -133 +$271
Sheets Smith Wealth Management Existing -80,788 +$2,556
Sand Hill Global Advisors LLC Existing +269 +$5,689
Sandy Cove Advisors LLC Existing +818 +$1,343
Tanaka Capital Management Inc. Existing -85 +$1,606
Trek Financial LLC Existing +8,087 +$5,136
United Bank Existing -1,757 +$1,374
Valueworks LLC Existing -503 +$764
Viawealth LLC Existing +56 +$718
Vancity Investment Management Ltd Existing -2,272 +$8,934
VitalStone Financial LLC Existing -331 +$92
Woodard & Co. Asset Management Group Inc. ADV Existing +496 +$1,645
Wealthgate Family Office LLC Existing UNCH +$545
Cedar Wealth Management LLC Existing +370 +$302
Benchmark Investment Advisors LLC Existing -13,214 -$392
Seven Eight Capital LP Existing -4,950 +$530
DE Burlo Group Inc. Existing -56,407 -$1,029
Infrastructure Capital Advisors LLC NEW +1,400 +$231
Black Swift Group LLC Existing -20,090 -$2,249
Mariner LLC Existing +3,145,937 +$813,155
State of Wyoming Existing -5,524 +$382
Cheviot Value Management LLC Existing +1,936 +$1,964
Needham Investment Management LLC Existing -2,050 +$932
USS Investment Management Ltd Existing +46,085 +$116,617
Schnieders Capital Management LLC Existing -7,107 +$6,502
Meridian Wealth Management LLC Existing +17,133 +$14,228
Cornerstone Advisors LLC Existing UNCH +$35,634
Pointe Capital Management LLC Existing -856 +$427
Symmetry Peak Management LLC Existing -2,500 -$1,549
Alkeon Capital Management LLC Existing +622,700 +$82,887
Sprott Inc. Existing UNCH +$83
Fjarde AP Fonden Fourth Swedish National Pension Fund Existing -67,000 +$94,384
Primecap Management Co. CA Existing -7,200 +$68,466
Maven Securities LTD Existing -277,579 -$37,417
Hsbc Holdings PLC Existing -3,301,551 +$486,235
Noked Israel Ltd Existing -101,000 -$8,359
Verition Fund Management LLC Existing +685,933 +$89,380
Fundsmith LLP Existing +872,745 +$160,324
Boothbay Fund Management LLC Existing +139,687 +$20,677
Williams Jones Wealth Management LLC. Existing -41,107 +$73,444
David R. Rahn & Associates Inc. Existing -20 +$3,181
Fundsmith Investment Services LTD. Existing +202,955 +$42,562
Cullen Capital Management LLC Existing UNCH +$197
Macquarie Group Ltd. Existing -216,749 +$292,262
Livforsakringsbolaget Skandia Omsesidigt Existing UNCH +$17,267
Hikari Tsushin Inc. Existing UNCH +$3,292
Act Two Investors LLC Existing +29,497 +$6,823
Atom Investors LP Existing +4,764 +$852
Beck Capital Management LLC Existing +626 +$790
Aggregate Change: +2,099,497 +$3,216,074
In terms of shares owned, we count 33 of the above funds having increased existing AAPL positions from 12/31/2022 to 03/31/2023, with 51 having decreased their positions and 4 new positions. Worth noting is that XTX Topco Ltd, and CenterBook Partners LP, included in this recent batch of 13F filers, exited AAPL common stock as of 03/31/2023.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the AAPL share count in the aggregate among all of the funds which held AAPL at the 03/31/2023 reporting period (out of the 4,835 we looked at in total). We then compared that number to the sum total of AAPL shares those same funds held back at the 12/31/2022 period, to see how the aggregate share count held by hedge funds has moved for AAPL. We found that between these two periods, funds reduced their holdings by 52,527,379 shares in the aggregate, from 4,227,413,536 down to 4,174,886,157 for a share count decline of approximately -1.24%. The overall top three funds holding AAPL on 03/31/2023 were:
» FUND SHARES OF AAPL HELD
1. BlackRock Inc. 1,035,008,939
2. FMR LLC 311,437,576
3. Bank of America Corp DE 141,923,140
4-10 Find out the full Top 10 Hedge Funds Holding AAPL »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
10 S&P 500 Components Hedge Funds Are Buying »
Also see:
Dividend Calculator
OCUP Historical Stock Prices
Institutional Holders of ORIA
The views and 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 Holdings Channel, we have reviewed the latest batch of the 247 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 97 of these funds. Worth noting is that XTX Topco Ltd, and CenterBook Partners LP, included in this recent batch of 13F filers, exited AAPL common stock as of 03/31/2023. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
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At Holdings Channel, we have reviewed the latest batch of the 247 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 97 of these funds. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers: Existing UNCH +$3,292 Act Two Investors LLC Existing +29,497 +$6,823 Atom Investors LP Existing +4,764 +$852 Beck Capital Management LLC Existing +626 +$790 Aggregate Change: +2,099,497 +$3,216,074 In terms of shares owned, we count 33 of the above funds having increased existing AAPL positions from 12/31/2022 to 03/31/2023, with 51 having decreased their positions and 4 new positions.
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At Holdings Channel, we have reviewed the latest batch of the 247 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 97 of these funds. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers: Existing UNCH +$3,292 Act Two Investors LLC Existing +29,497 +$6,823 Atom Investors LP Existing +4,764 +$852 Beck Capital Management LLC Existing +626 +$790 Aggregate Change: +2,099,497 +$3,216,074 In terms of shares owned, we count 33 of the above funds having increased existing AAPL positions from 12/31/2022 to 03/31/2023, with 51 having decreased their positions and 4 new positions.
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Bank of America Corp DE 141,923,140 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 247 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 97 of these funds. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
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15849.0
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2023-05-15 00:00:00 UTC
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Should Invesco Dynamic Large Cap Growth ETF (PWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-dynamic-large-cap-growth-etf-pwb-be-on-your-investing-radar-7
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nan
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nan
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The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, 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 Invesco. It has amassed assets over $597.18 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
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. Also, growth stocks are a type of equity that carries more risk compared to others. 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.55%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.40%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 33.70% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
The top 10 holdings account for about 34.92% of total assets under management.
Performance and Risk
PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF has gained about 8.87% so far this year and was up about 9.65% in the last one year (as of 05/15/2023). In the past 52-week period, it has traded between $56.26 and $68.41.
The ETF has a beta of 1.01 and standard deviation of 23.01% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PWB is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $83.06 billion in assets, Invesco QQQ has $175.34 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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 $597.18 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, 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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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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 Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, 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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15850.0
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2023-05-15 00:00:00 UTC
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Apple investigated in France over product obsolescence
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AAPL
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https://www.nasdaq.com/articles/apple-investigated-in-france-over-product-obsolescence
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nan
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nan
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PARIS, May 15 (Reuters) - The Paris prosecutor has opened a judicial inquiry into planned obsolescence of Apple products, a spokesperson for the prosecutor said on Monday, confirming an AFP report.
"Following a complaint, an investigation was opened in December 2022 into deceptive marketing practices and programmed obsolescence," the spokesperson said, adding that the complaint had been filed by NGO Halte a L'Obsolescence Programmee (HOP).
(Reporting by GV De Clercq Editing by David Goodman)
((geert.declercq@tr.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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PARIS, May 15 (Reuters) - The Paris prosecutor has opened a judicial inquiry into planned obsolescence of Apple products, a spokesperson for the prosecutor said on Monday, confirming an AFP report. "Following a complaint, an investigation was opened in December 2022 into deceptive marketing practices and programmed obsolescence," the spokesperson said, adding that the complaint had been filed by NGO Halte a L'Obsolescence Programmee (HOP). (Reporting by GV De Clercq Editing by David Goodman) ((geert.declercq@tr.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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PARIS, May 15 (Reuters) - The Paris prosecutor has opened a judicial inquiry into planned obsolescence of Apple products, a spokesperson for the prosecutor said on Monday, confirming an AFP report. "Following a complaint, an investigation was opened in December 2022 into deceptive marketing practices and programmed obsolescence," the spokesperson said, adding that the complaint had been filed by NGO Halte a L'Obsolescence Programmee (HOP). (Reporting by GV De Clercq Editing by David Goodman) ((geert.declercq@tr.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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PARIS, May 15 (Reuters) - The Paris prosecutor has opened a judicial inquiry into planned obsolescence of Apple products, a spokesperson for the prosecutor said on Monday, confirming an AFP report. "Following a complaint, an investigation was opened in December 2022 into deceptive marketing practices and programmed obsolescence," the spokesperson said, adding that the complaint had been filed by NGO Halte a L'Obsolescence Programmee (HOP). (Reporting by GV De Clercq Editing by David Goodman) ((geert.declercq@tr.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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PARIS, May 15 (Reuters) - The Paris prosecutor has opened a judicial inquiry into planned obsolescence of Apple products, a spokesperson for the prosecutor said on Monday, confirming an AFP report. "Following a complaint, an investigation was opened in December 2022 into deceptive marketing practices and programmed obsolescence," the spokesperson said, adding that the complaint had been filed by NGO Halte a L'Obsolescence Programmee (HOP). (Reporting by GV De Clercq Editing by David Goodman) ((geert.declercq@tr.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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15851.0
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2023-05-15 00:00:00 UTC
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Apple supplier Foxconn to invest $500 mln in India's Telangana state
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-to-invest-%24500-mln-in-indias-telangana-state
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nan
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nan
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Adds background, details
BENGALURU, May 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state's IT minister said on Monday.
The investment will create 25,000 jobs in the first phase, K. T. Rama Rao said in a tweet.
Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products.
Apple has been shifting production away from China, where prior COVID restrictions disrupted the manufacturing of new iPhones and other devices. The tech company is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
Foxconn in late March received approval from the Karnataka government for a $968 million investment in the state.
(Reporting by Chris Thomas and Varun Vyas in Bengaluru; Editing by Savio D'Souza and Sonia Cheema)
((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))
The views and 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 background, details BENGALURU, May 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state's IT minister said on Monday. Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products. Apple has been shifting production away from China, where prior COVID restrictions disrupted the manufacturing of new iPhones and other devices.
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Adds background, details BENGALURU, May 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state's IT minister said on Monday. Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products. Foxconn in late March received approval from the Karnataka government for a $968 million investment in the state.
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Adds background, details BENGALURU, May 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state's IT minister said on Monday. Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products. The tech company is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
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Adds background, details BENGALURU, May 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state's IT minister said on Monday. The investment will create 25,000 jobs in the first phase, K. T. Rama Rao said in a tweet. Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products.
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15852.0
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2023-05-15 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-35
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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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15853.0
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2023-05-15 00:00:00 UTC
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Should You Invest in the Vanguard Information Technology ETF (VGT)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-6
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nan
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nan
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The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $46.20 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.78%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 89.40% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
Performance and Risk
The ETF has added about 20.95% and is up roughly 15.09% so far this year and in the past one year (as of 05/15/2023), respectively. VGT has traded between $300.84 and $391.03 during this last 52-week period.
The ETF has a beta of 1.16 and standard deviation of 26.40% for the trailing three-year period, making it a medium risk choice in the space. With about 367 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $10.74 billion in assets, Technology Select Sector SPDR ETF has $43.20 billion. IYW has an expense ratio of 0.39% and XLK charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Information Technology ETF (VGT): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): 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 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $46.20 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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15854.0
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2023-05-15 00:00:00 UTC
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3 Tech Stocks That May Outperform Apple in 2023
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-that-may-outperform-apple-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Because of the possibility for expansion and improvement in the industry, traders are attracted to many of the top tech stocks in the market.
One of the most well-known tech corporations is Apple (NASDAQ:AAPL). In the decades to come, innovation is expected to serve a key part in finding answers to problems including energy conservation, robotics, medical care and housing.
This article highlights the top tech stocks that are expected to lead the market this year. These businesses are renowned for developing ground-breaking goods and solutions that influence the years to come, and their shares provide impressive profits.
Among them are three companies that could outperform Apple in 2023.
META Meta Platforms $233.81
GOOG Alphabet $117.92
TSLA Tesla $167.98
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) has faced criticism for investing heavily in the metaverse project, which has resulted in losses and a decrease in market cap. However, the company’s strong underlying business should make it an attractive buy at its current range, despite ongoing debates about the metaverse’s potential success.
The company faced challenges in 2022 because of the digital advertising market’s decline. The tech giant’s monetary standing has gotten better though, and the value of its stock has increased by nearly 91% since January.
Over the past year, it has grown by 16%, and its high Altman Z-Score of 7.21 indicates strong financial resilience.
With an average three-year sales increase rate of 20.6% and a dragging-year net profit margin of 19.9%, Meta has outperformed the bulk of its rivals in terms of economic performance. Analysts consider it a moderate buy, with an average price target of $263.12, showing potential growth of over 10%.
In the coming years, Meta Platforms, a significant player in the social networking industry, is expected to flourish.
Besides dominating the online networking industry, the corporation is branching out into new industries including augmented realities and simulated reality, making it one of the tech stocks to watch this year.
Alphabet (GOOG)
Source: salarko / Shutterstock.com
Alphabet (NASDAQ:GOOG) has recently reported a strong financial performance but its AI ambitions have been largely overlooked by the financial media.
Despite being one of the top AI stocks of 2023, Alphabet is not getting enough attention.
For those looking to invest in AI stocks for long-term growth, Alphabet should be considered. In the near term, Alphabet announced profits of $1.17 per share, which was 10 cents per share more than analysts’ expectations.
The business’ earnings of $69.8 billion exceeded the average projection by about $1 billion. Alphabet announced a $70 billion buyback, indicating that its strong cash flow and balance sheet will continue to drive gains.
Even with introducing ChatGPT, Google remains the dominant search engine with a 93.37% share of all search queries across all providers. While Microsoft’s Bing may see some growth, it currently only holds less than 10% of Google’s market share, emphasizing Google’s strong position in the search industry.
Tesla (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Tesla (NASDAQ:TSLA) is still the leading electric vehicle manufacturer in the world, despite controversies surrounding the company and its CEO Elon Musk. The stock remains volatile, but Tesla’s growth is uninterrupted.
The company has announced it will produce 1.8 million to two million vehicles this year, making it well ahead of its competitors in terms of EV production.
Tesla’s stock is still at a reasonable price for investors interested in growth, considering the company’s consistently strong growth despite challenging conditions. Tesla is expected to maintain a strong growth trajectory in the long term by taking advantage of the EV opportunity.
After Musk’s acquisition of Twitter last fall, TSLA’s stock took a hit, but it has since rebounded and increased by 45% since January. Despite a recent earnings miss, there are upcoming factors such as the launch of the Cybertruck and a new manufacturing plant in Mexico that could give Tesla a boost. Therefore, it is currently considered one of the top EV stocks to purchase.
On the date of publication, Chris MacDonald has a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Tech Stocks That May Outperform Apple in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. In the decades to come, innovation is expected to serve a key part in finding answers to problems including energy conservation, robotics, medical care and housing.
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One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. META Meta Platforms $233.81 GOOG Alphabet $117.92 TSLA Tesla $167.98 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) has faced criticism for investing heavily in the metaverse project, which has resulted in losses and a decrease in market cap.
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One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Because of the possibility for expansion and improvement in the industry, traders are attracted to many of the top tech stocks in the market.
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One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. This article highlights the top tech stocks that are expected to lead the market this year.
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15855.0
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2023-05-14 00:00:00 UTC
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Is Apple Now a Top Dividend Stock?
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AAPL
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https://www.nasdaq.com/articles/is-apple-now-a-top-dividend-stock
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nan
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nan
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For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Many investors snapping it up for their portfolios still believe this to be so, as the company -- despite being a massive entity -- frequently books double-digit increases in key fundamental metrics.
Recently, though, Apple awarded said investors a relatively generous dividend raise. So perhaps this makes the company a solid dividend stock to own too. Here's a little exploration of this.
Big earner, big spender
Let's get the details out of the way and set some context. Concurrent with the second quarter of fiscal 2023 results published in early May, Apple declared a new quarterly payout of $0.24 per share. This dividend raise shook out to a 4% improvement on its $0.23 per share predecessor. (By the way, that wasn't the only shareholder-pleasing move the company made; it also launched a $90 billion share repurchase program.)
Nobody should worry about whether Apple can afford the extra dividend expense or the new share buyback kitty. In that quarter alone, it generated operating cash flow of almost $29 billion. These days, it's spending around $3.7 billion every quarter on dividends.
We also need to define the idea of a dividend stock. All things being equal, these stocks produce regular dividend income that yields at, or above, the average of a representative group of dividend payers. These days, the average yield of the S&P 500 index sits at just under 1.7%. It also helps greatly if the company enacts a dividend raise at least once every year.
The companies most readily identified with dividend stocks also tend to be well-established ones with modest growth but very strong and reliable free cash flow (FCF).
So does Apple fit this bill? Well, not entirely. That FCF sure is mighty. The company not only sells the enduringly popular suite of iGadgets and has thriving (if relatively niche) businesses in other hardware like desktop and laptop machines, it also makes plenty of coin from its App Store. So we'll put a tick mark next to that criterion.
As for yield, that's a different story. Strictly on that basis, Apple isn't very impressive. Its yield is a rather light 0.6% these days, well under the aforementioned S&P 500 benchmark. So while Apple's figure is in line with the often miserly tech industry, it's a fair distance below that of classic dividend stocks like Coca-Cola (which offers 2.9%), McDonald's (2.1%), and 3M (a meaty 6%).
Finally, by those two other yardsticks, Apple doesn't really fit the mold of a traditional dividend stock. It's still quite a growing company, as noted above, and while it has numerous revenue streams, it remains beholden to consumer fashion and trends.
If an Android phone maker, say, can devise some groundbreaking proprietary technology that leaps ahead of anything an iPhone is able to do, sales of those Apple devices could evaporate. By contrast, no one's yet come up with a "Coca-Cola killer," for example, or a better mass-market Big Mac.
Finally, as for the dividend raise aspect, Apple is indisputably a company that likes its lifts -- with this most recent one, it has now hiked the payout for 11 straight years (since reinstating it in 2012). But that history pales in comparison to those of the most renowned dividend stocks. Again using Coca-Cola and McDonald's as examples, those two giants have current raise streaks stretching back 60 and 46 years, respectively.
Taking stock
So, no, in my view Apple hasn't become a top dividend stock with its recent raise. It is not a compelling investment on that basis alone.
But, of course, that doesn't mean it's a lousy stock to own. Quite the contrary, in fact.
Apple does an admirable job refreshing its product lines, with the iPhone being one of the best and most cutting-edge phones on the market despite the brand's age (nearly 16 years -- wow!). More devices on the market means more purchasing through the App Store, so services revenue is on a growth path too. Apple is also unafraid to enter potentially high-growth new business ventures, such as computer chips.
I'm an Apple stock owner myself, and for me, it's never been about the dividend -- and likely never will be. Instead, I'm excited about the numerous growth opportunities the tech giant has in front of it, and the payout is just a little sweetener in my eyes. I suggest you look at the stock the same way.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends 3M 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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For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. The company not only sells the enduringly popular suite of iGadgets and has thriving (if relatively niche) businesses in other hardware like desktop and laptop machines, it also makes plenty of coin from its App Store. So while Apple's figure is in line with the often miserly tech industry, it's a fair distance below that of classic dividend stocks like Coca-Cola (which offers 2.9%), McDonald's (2.1%), and 3M (a meaty 6%).
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For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise. I'm an Apple stock owner myself, and for me, it's never been about the dividend -- and likely never will be.
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For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Finally, by those two other yardsticks, Apple doesn't really fit the mold of a traditional dividend stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise.
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15856.0
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2023-05-14 00:00:00 UTC
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These 3 Tech Stocks Are Building the Future
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AAPL
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https://www.nasdaq.com/articles/these-3-tech-stocks-are-building-the-future-9
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nan
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nan
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The tech market has long been a haven for investors looking for reliable long-term stocks. The ever-developing nature of the sector has fueled substantial growth over the years, with the Nasdaq-100 index up about 330% over the last decade.
It's a smart move to consider tech stocks active in high-growth markets. In 2023, that means investing in industries such as artificial intelligence (AI), cloud computing, and virtual and augmented reality (VR/AR). These technologies have vast potential in the coming years, likely to affect the development of countless devices. The companies behind these markets could offer substantial gains as consumer adoption soars.
Here are three tech stocks that are building the future.
1. Advanced Micro Devices
As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) develops the hardware necessary to run platforms across various technologies. And the company's stock has climbed around 47% year to date, primarily thanks to its prospects in the future of AI and the cloud market.
Despite Nvidia's current lead in AI as the main provider of graphics processing units (GPUs) to OpenAI's ChatGPT, AMD's long-term outlook in the industry is promising. According to a Bloomberg report from May 4, Microsoft (NASDAQ: MSFT) is working closely with AMD to expand its AI chip division to create an alternative to Nvidia. Microsoft is reportedly supporting the semiconductor company by supplying engineering resources and partnering with AMD to develop homegrown processors for AI workloads.
In addition to AI, AMD is one of the leading chip suppliers in cloud computing, with its data center chips powering platforms such as Microsoft's Azure, Alphabet's Google Cloud, and Oracle. As AI is likely to bolster the cloud market, demand for AMD's hardware could soar in the coming years.
AMD's potential is evident in its forward price/earnings-to-growth ratio of 0.14, which suggests its projected growth is not currently priced into its stock, making it a compelling investment right now.
2. Microsoft
Microsoft seems to have had the foresight of the century by investing $1 billion in OpenAI in 2019. The start-up's launch of ChatGPT in November 2022 led Microsoft to invest a further $10 billion in the company as the advanced chatbot kicked off an AI race among the biggest names in tech.
Microsoft's partnership with OpenAI has paid off considerably, allowing it to upgrade platforms such as its Office productivity suite, cloud service Azure, and search engine Bing with AI technology. These services already have substantial market share in their respective industries but could receive a massive boost alongside AI integrations.
Microsoft could be the company that prompts the mass adoption of AI services by consumers and businesses as it becomes the go-to for anyone looking to enhance their workflow through artificial intelligence.
Moreover, Microsoft's Azure was responsible for a 23% market share in the cloud industry in the first quarter of 2023, second only to Amazon Web Services. AI is projected to vastly expand cloud computing in the coming years, with Microsoft positioned to outperform the competition over the long term.
With a stock that has risen 217% in the last five years and 840% in the last decade, Microsoft has a history of consistent gains thanks to its near-constant focus on innovation. As a result, its stock is an incredibly compelling buy as it continues to build the future.
3. Apple
Apple (NASDAQ: AAPL) may not always be the first to develop a new technology, but it has a proven talent for releasing its own version of a device and boosting it into mainstream use. In doing so, the company has altered the future of many technologies, with a few including smartphones, tablets, smartwatches, and Bluetooth headphones.
The company has attained a leading market share in each of these industries, which bodes well for its expected venture into a totally new market this year: virtual and augmented reality.
Multiple filed patents and related acquisitions over the years have all but confirmed Apple's VR/AR pursuits. However, many reports have suggested 2023 will be the year the company finally debuts its first virtual/augmented reality headset.
According to Statista, the VR/AR market is valued at $31 billion and is projected to see a compound annual growth rate of nearly 14% through 2027.
The sector is currently dominated by offerings from Meta Platforms and Sony, but still has a long way to go before consumers and professionals integrate the technology into their everyday lives. Apple's immense brand loyalty and history of quality products could be just what the market needs to expand further.
As a result, an investment in Apple could be an investment in the future leader of a market expected to hit $52 billion by 2027.
10 stocks we like better than Advanced Micro Devices
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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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) may not always be the first to develop a new technology, but it has a proven talent for releasing its own version of a device and boosting it into mainstream use. Despite Nvidia's current lead in AI as the main provider of graphics processing units (GPUs) to OpenAI's ChatGPT, AMD's long-term outlook in the industry is promising. The start-up's launch of ChatGPT in November 2022 led Microsoft to invest a further $10 billion in the company as the advanced chatbot kicked off an AI race among the biggest names in tech.
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Apple Apple (NASDAQ: AAPL) may not always be the first to develop a new technology, but it has a proven talent for releasing its own version of a device and boosting it into mainstream use. In 2023, that means investing in industries such as artificial intelligence (AI), cloud computing, and virtual and augmented reality (VR/AR). Advanced Micro Devices As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) develops the hardware necessary to run platforms across various technologies.
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Apple Apple (NASDAQ: AAPL) may not always be the first to develop a new technology, but it has a proven talent for releasing its own version of a device and boosting it into mainstream use. Advanced Micro Devices As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) develops the hardware necessary to run platforms across various technologies. And the company's stock has climbed around 47% year to date, primarily thanks to its prospects in the future of AI and the cloud market.
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Apple Apple (NASDAQ: AAPL) may not always be the first to develop a new technology, but it has a proven talent for releasing its own version of a device and boosting it into mainstream use. The companies behind these markets could offer substantial gains as consumer adoption soars. Here are three tech stocks that are building the future.
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15857.0
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2023-05-13 00:00:00 UTC
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One of the Single Most Important Metrics for Apple Investors Just Got Better
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AAPL
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https://www.nasdaq.com/articles/one-of-the-single-most-important-metrics-for-apple-investors-just-got-better
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nan
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nan
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It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Since its debut in mid-2007, the iconic device has become the gold standard for smartphones. As a result of that simple truth, the iPhone continues to command a premium price, which is arguably the reason for the company's unbridled success.
Now, it appears, Apple has set a new benchmark that lays the foundation for the company's future success. The iPhone just proved, in the most unlikely of times, users are willing to pay up for the tech giant's flagship device.
Image source: Apple.
Gauges of iPhone demand
Apple long ago dispensed with reporting on just exactly how many iPhones the company sells in a given quarter. When it stopped providing the unit sales metric in late 2018, CFO Luca Maestri said Apple made the decision because the figure was "not representative of underlying strength of our business." He went on to note that "a unit of sale is less relevant today than it was in our past."
As a result of that decision, investors also lost the ability to calculate the average selling price (ASP), a measure of how much users were willing to pay for the iPhone. Before the change, the calculation could be made by dividing the total amount of iPhone revenue (which the company still breaks out) by the unit sales, which resulted in the ASP. This helped investors gauge the strength of demand for the device, rather than simply relying on the total percentage of revenue gains.
Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales.
Fortunately, a helpful third-party market research company still provides reasonable estimates of the iPhone's ASP.
A new all-time high
During its fiscal 2023 Q2 (ended April 1), Apple reported iPhone revenue of $51.3 billion, an increase of 1.5% year over year, setting a record for the March quarter. For context, iPhone sales accounted for roughly 54% of revenue during the period. That's not far off historical averages, as the iPhone was responsible for 52% of Apple's sales in fiscal 2022.
During Q2, the weighted average retail price (WARP) for the iPhone rose to a new all-time high of $988, according to data compiled by Consumer Intelligence Research Partners (CIRP), up 12% from $882 in the prior-year quarter. The researchers are quick to point out that this doesn't take into account the trade-ins or other promotions that may result in a lower price, though this likely doesn't materially change the estimate.
This is made all the more remarkable by the fact that the WARP has declined in each and every March quarter since CIRP began calculating the metric back in 2015. What's more, the economy has been in downturn mode for more than a year now, suggesting iPhone buyers would be more inclined to purchase less expensive models, but the research simply doesn't support that conclusion. In reality, consumers were trading up to the most expensive models, even in challenging economic circumstances.
Why it matters
If the data is at least directionally accurate, it provides some insight into the state of iPhone demand. The research suggests that iPhone unit sales fell to about 52 million in the quarter, down from 57 million in the prior-year period -- a decline of about 9%. That makes sense given the state of the economy.
It also reveals that the remaining iPhone buyers were willing to pony up over $100 more to buy pricier models, spending nearly $1,000 in all for the device -- even in the face of difficult economic conditions.
Dominant profit share
The willingness of Apple fans to pay up for their devices is important for another reason. The company absolutely dominates the competition in terms of profits, leaving its rivals to fight for scraps.
Last year, Apple set a new high-water mark in terms of global smartphone market share, amassing 85% of the profits for the entire industry, according to estimates provided by Counterpoint Research. What makes this all the more incredible is that the tech titan only accounted for about 18% of global smartphone shipments last year, which speaks to the resilience of iPhone demand and the enduring appeal of the device.
This also suggests that when the economy rebounds, as it no doubt will, unit sales of iPhones will likely increase, helping fuel Apple's future growth.
The stock remains a buy.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of May 8, 2023
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. When it stopped providing the unit sales metric in late 2018, CFO Luca Maestri said Apple made the decision because the figure was "not representative of underlying strength of our business." During Q2, the weighted average retail price (WARP) for the iPhone rose to a new all-time high of $988, according to data compiled by Consumer Intelligence Research Partners (CIRP), up 12% from $882 in the prior-year quarter.
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It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Fortunately, a helpful third-party market research company still provides reasonable estimates of the iPhone's ASP. A new all-time high During its fiscal 2023 Q2 (ended April 1), Apple reported iPhone revenue of $51.3 billion, an increase of 1.5% year over year, setting a record for the March quarter.
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It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Gauges of iPhone demand Apple long ago dispensed with reporting on just exactly how many iPhones the company sells in a given quarter. Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales.
|
It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Before the change, the calculation could be made by dividing the total amount of iPhone revenue (which the company still breaks out) by the unit sales, which resulted in the ASP. Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales.
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15858.0
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2023-05-12 00:00:00 UTC
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Will Warren Buffett and Berkshire Hathaway Start to Invest More in Tech?
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AAPL
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https://www.nasdaq.com/articles/will-warren-buffett-and-berkshire-hathaway-start-to-invest-more-in-tech
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nan
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nan
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By Frank Corva
Warren Buffett is well-known for being a value investor. Value investing refers to purchasing stocks or businesses that appear to be trading for less than their intrinsic value.
If you look through the portfolio of Buffett’s holding company, Berkshire Hathaway, you’ll see that he’s found value in financial, consumer staple and energy stocks in recent years, as the portfolio is dominated by these types of equities.
However, there’s one stock that stands out in Berkshire’s portfolio: Apple (AAPL).
Apple now comprises over 46% of Berkshire Hathaway’s portfolio.
While this might prompt you to run out and buy shares of AAPL, keep in mind that Berkshire first bought the stock at about $23 per share back in Q1 of 2016. As of May 10, 2023, AAPL trades at about $174 per share.
If you were to take the value investing approach to buying AAPL, you might consider buying the stock if its price were to dip considerably. It’s currently trading near its all-time high and is potentially overvalued.
But back to Buffett and Berkshire.
Buffett believes that Apple is the best company in Berkshire’s portfolio.
It’s a bit strange to hear Buffett speak so highly of AAPL — a tech stock — because 1) it wasn’t him that bought AAPL back in 2016; it was one of his lieutenants, and 2) he’s admitted to missing many a tech stock boat in his career.
Buffett’s big misses on tech stocks and technology plays
While Buffett — the “Oracle of Omaha” — surely has an extensive track record of picking the right stocks at the right prices, very few of those stocks have been tech stocks.
The following are a few of Buffett’s big misses when it comes to tech plays:
Microsoft (MSFT): Despite being close friends with Microsoft’s founder Bill Gates, Buffett never took a position in the company. He primarily attributes this to “stupidity,” as he puts it. However, he also acknowledges that his friendship with Gates may have put Gates in a position where he could have been accused of sharing inside information with Buffett, and Buffett didn’t want to create such a scenario.
Amazon (AMZN): Berkshire Hathaway only began buying Amazon stock in 2019 — 22 years after the company IPO’d — and it wasn’t Buffett that called for the purchase; it was one of his deputies. Buffett calls himself an “idiot” (This guy sure is hard on himself, huh?) for not getting in sooner.
Alphabet (GOOGL): Google is another big tech play that Berkshire missed. In reflecting on this miss, though, it was Buffett’s partner Charlie Munger who verbally flogged himself. “I feel like a horse’s ass for not identifying Google,” said Munger back in 2020.
Bitcoin (BTC): Buffett still doesn’t believe in Bitcoin despite its meteoric rise in price over the past 13 years. He actually refers to the asset as “rat poisoned squared.” I guess he’ll just have to have fun staying poor rich investing in other assets.
Buffett’s change in tone regarding tech
At Berkshire Hathaway’s most recent annual shareholder meeting, which took place last weekend, Buffett called Elon Musk, CEO of Tesla, SpaceX and Twitter, a “brilliant, brilliant guy.”
Does this mean Berkshire will take a position in Tesla (TSLA)? Maybe.
Musk pointed out on Twitter that Berkshire would have been up big on its TSLA holdings had it bought when Musk and Munger had lunch together in late 2008.
It could be that Buffett and the team at Berkshire are waiting for a dip in the price of TSLA to take a position, though it would be surprising to see them take a Cathie Wood-sized position in the company.
Buffett also commented on artificial intelligence (AI) at Berkshire’s annual shareholder event last weekend.
He said that AI may change the world, and he had a chance to try out Microsoft’s ChatGPT with his friend Bill Gates a few months back.
However, he’s also skeptical of the technology, as he compared it to the atomic bomb in that we could lose control of it and that we don’t have the power to un-invent it.
And Munger said he’s “personally skeptical of some of the hype that is going into artificial intelligence” and that “old-fashioned intelligence works pretty well.”
So, while Berkshire’s betting on TSLA doesn’t seem to be out of the question, it seems the institution is still a ways off from investing in AI companies.
Berkshire beyond Buffett
While Buffett, 92, has no plans to retire, he has already appointed his successor, Greg Abel.
Abel is the chairman of Berkshire Hathaway Energy and doesn’t seem to have much experience investing in technology outside of the tech used in alternative energy production.
Therefore, if Berkshire is to take some chances on finding value in technology companies, it may have to rely on the types of voices within the firm that recommended buying AAPL and AMZN.
Time will tell as to whether this becomes part of Berkshire’s approach to value investing.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Therefore, if Berkshire is to take some chances on finding value in technology companies, it may have to rely on the types of voices within the firm that recommended buying AAPL and AMZN. However, there’s one stock that stands out in Berkshire’s portfolio: Apple (AAPL). While this might prompt you to run out and buy shares of AAPL, keep in mind that Berkshire first bought the stock at about $23 per share back in Q1 of 2016.
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However, there’s one stock that stands out in Berkshire’s portfolio: Apple (AAPL). While this might prompt you to run out and buy shares of AAPL, keep in mind that Berkshire first bought the stock at about $23 per share back in Q1 of 2016. As of May 10, 2023, AAPL trades at about $174 per share.
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It’s a bit strange to hear Buffett speak so highly of AAPL — a tech stock — because 1) it wasn’t him that bought AAPL back in 2016; it was one of his lieutenants, and 2) he’s admitted to missing many a tech stock boat in his career. However, there’s one stock that stands out in Berkshire’s portfolio: Apple (AAPL). While this might prompt you to run out and buy shares of AAPL, keep in mind that Berkshire first bought the stock at about $23 per share back in Q1 of 2016.
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If you were to take the value investing approach to buying AAPL, you might consider buying the stock if its price were to dip considerably. However, there’s one stock that stands out in Berkshire’s portfolio: Apple (AAPL). While this might prompt you to run out and buy shares of AAPL, keep in mind that Berkshire first bought the stock at about $23 per share back in Q1 of 2016.
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15859.0
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2023-05-12 00:00:00 UTC
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Technology Sector Update for 05/12/2023: CMCSA, AAPL, AMZN
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-12-2023%3A-cmcsa-aapl-amzn
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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) slipping 0.6% and the Philadelphia Semiconductor index falling 0.8%.
In company news, Comcast's (CMCSA) NBCUniversal said Friday that Linda Yaccarino will leave the media and entertainment company, effective immediately. Elon Musk separately said later in the day that Yaccarino would be the new chief executive of social media giant Twitter. Comcast shares were down around 0.5%.
Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. The device, which looks like a pair of ski goggles, is expected to cost about $3,000, the report said. Apple shares were down 1.4%.
Amazon.com's (AMZN) workers at a fulfillment center in the UK on Friday submitted a bid for formal recognition to the Central Arbitration Committee, the official body responsible for regulating collective bargaining negotiations. Amazon was down 2.4%.
The views and 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 preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index falling 0.8%. Amazon.com's (AMZN) workers at a fulfillment center in the UK on Friday submitted a bid for formal recognition to the Central Arbitration Committee, the official body responsible for regulating collective bargaining negotiations.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. In company news, Comcast's (CMCSA) NBCUniversal said Friday that Linda Yaccarino will leave the media and entertainment company, effective immediately. Comcast shares were down around 0.5%.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. In company news, Comcast's (CMCSA) NBCUniversal said Friday that Linda Yaccarino will leave the media and entertainment company, effective immediately. Amazon.com's (AMZN) workers at a fulfillment center in the UK on Friday submitted a bid for formal recognition to the Central Arbitration Committee, the official body responsible for regulating collective bargaining negotiations.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index falling 0.8%. Comcast shares were down around 0.5%.
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15860.0
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2023-05-12 00:00:00 UTC
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US STOCKS-Indexes drop with tech-related shares; consumer sentiment falls
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AAPL
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https://www.nasdaq.com/articles/us-stocks-indexes-drop-with-tech-related-shares-consumer-sentiment-falls
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nan
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nan
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By Caroline Valetkevitch
NEW YORK May 12 (Reuters) - U.S. stocks fell Friday afternoon, led by weaker technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low.
Tesla IncTSLA.Oshares slid 2.4% after jumping more than 2% on Thursday, when Elon Musk announced he had found a new chief executive for Twitter.
Musk tweeted Friday he had picked former NBCUniversal advertising chief Linda Yaccarino as Twitter's new CEO.
The S&P 500 technology sector .SPLRCT was down 0.9%, with shares of Apple IncAAPL.O falling 1.3%. The technology index is still up about 21% so far this year.
"They've had an incredible run, so those valuation concerns are starting to manifest themselves," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook.
Investors worry that the Federal Reserve's aggressive interest rates hikes could push the economy into recession.
The Dow Jones Industrial Average .DJI fell 172.16 points, or 0.52%, to 33,137.35; the S&P 500 .SPX lost 29 points, or 0.70%, at 4,101.62; and the Nasdaq Composite .IXIC dropped 112.30 points, or 0.91%, to 12,216.21.
The Congressional Budget Office said on Friday the U.S. faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase.
Fed Governor Michelle Bowman said the central bank would probably need to raise rates further if inflation stays high.
Among gainers, First Solar Inc FSLR.O shares jumped after the solar panel maker acquired Sweden's thin-film solar cell technology firm Evolar AB.
News CorpNWSA.O gained 5.9% after the media conglomerate beat Wall Street estimates for third-quarter profit.
Declining issues outnumbered advancers on the NYSE by a 2.30-to-1 ratio; on Nasdaq, a 2.08-to-1 ratio favored decliners.
The S&P 500 posted 19 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 51 new highs and 201 new lows.
(Additional reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty, Arun Koyyur, Anil D'Silva and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The S&P 500 technology sector .SPLRCT was down 0.9%, with shares of Apple IncAAPL.O falling 1.3%. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks fell Friday afternoon, led by weaker technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. "They've had an incredible run, so those valuation concerns are starting to manifest themselves," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
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The S&P 500 technology sector .SPLRCT was down 0.9%, with shares of Apple IncAAPL.O falling 1.3%. Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook. The Dow Jones Industrial Average .DJI fell 172.16 points, or 0.52%, to 33,137.35; the S&P 500 .SPX lost 29 points, or 0.70%, at 4,101.62; and the Nasdaq Composite .IXIC dropped 112.30 points, or 0.91%, to 12,216.21.
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The S&P 500 technology sector .SPLRCT was down 0.9%, with shares of Apple IncAAPL.O falling 1.3%. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks fell Friday afternoon, led by weaker technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook.
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The S&P 500 technology sector .SPLRCT was down 0.9%, with shares of Apple IncAAPL.O falling 1.3%. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks fell Friday afternoon, led by weaker technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook.
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15861.0
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2023-05-12 00:00:00 UTC
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Technology Sector Update for 05/12/2023: TSLA, AAPL, AMZN
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-12-2023%3A-tsla-aapl-amzn
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nan
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nan
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Tech stocks were lower late Friday with the Technology Select Sector SPDR Fund (XLK) slipping 0.3% and the Philadelphia Semiconductor index falling 0.4%.
In company news, Tesla (TSLA) Chief Executive Elon Musk said that Linda Yaccarino has been named Twitter's CEO. Yaccarino will primarily focus on business operations, Musk tweeted, adding that he will oversee product design and new technology.
Separately, Tesla (TSLA) was slapped with a class-action lawsuit by a group of Model S and Model X owners in California on Friday, Reuters reported. The shares were down 2.5%.
Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. The device, which looks like a pair of ski goggles, is expected to cost about $3,000, the report said. Apple shares were down 0.7%.
Amazon.com's (AMZN) workers at a fulfillment center in the UK on Friday submitted a bid for formal recognition to the Central Arbitration Committee, the official body responsible for regulating collective bargaining negotiations. Amazon was down 2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. Tech stocks were lower late Friday with the Technology Select Sector SPDR Fund (XLK) slipping 0.3% and the Philadelphia Semiconductor index falling 0.4%. Amazon.com's (AMZN) workers at a fulfillment center in the UK on Friday submitted a bid for formal recognition to the Central Arbitration Committee, the official body responsible for regulating collective bargaining negotiations.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. In company news, Tesla (TSLA) Chief Executive Elon Musk said that Linda Yaccarino has been named Twitter's CEO. Separately, Tesla (TSLA) was slapped with a class-action lawsuit by a group of Model S and Model X owners in California on Friday, Reuters reported.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. Separately, Tesla (TSLA) was slapped with a class-action lawsuit by a group of Model S and Model X owners in California on Friday, Reuters reported. Apple shares were down 0.7%.
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Apple (AAPL) is preparing to unveil a headset combining virtual and augmented reality technology in the coming weeks, the Wall Street Journal reported. Tech stocks were lower late Friday with the Technology Select Sector SPDR Fund (XLK) slipping 0.3% and the Philadelphia Semiconductor index falling 0.4%. In company news, Tesla (TSLA) Chief Executive Elon Musk said that Linda Yaccarino has been named Twitter's CEO.
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15862.0
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2023-05-12 00:00:00 UTC
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Use XMHQ and XSHQ for Quality Exposure Down the Cap Spectrum
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AAPL
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https://www.nasdaq.com/articles/use-xmhq-and-xshq-for-quality-exposure-down-the-cap-spectrum
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nan
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nan
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Advisors looking for quality exposure due to market uncertainty should consider opportunities down the cap spectrum.
SPHQ is a favorite fund among investors for providing quality exposure, but investors may be missing out on smaller capitalization companies. For quality exposure to mid- and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ).
Many investors turned to ETFs in the first quarter that invest in higher-quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation, according to Todd Rosenbluth, head of research at VettaFi.
Comparing SPHQ, XMHQ, and XSHQ
SPHQ is a fund giant with $4.8 billion in assets under management. The fund comprises 100 companies from the S&P 500 that have impressive quality scores. These scores are calculated based on three fundamental measures: return on equity, accruals ratio, and financial leverage ratio.
SPHQ includes many mega caps and household names, such as Microsoft (MSFT) and Apple Inc (AAPL).
XMHQ tracks an index that includes the 80 securities in the S&P Midcap 400 Index that have the highest quality scores, calculated using the same proprietary factors as SPHQ. The fund has $769 million in assets under management.
Names in XMHQ include Manhattan Associates Inc (MANH) and Toro Company (TTC).
XSHQ, the newest of the three funds, launched in 2017, has $29 million in assets. The fund is composed of 120 securities in the S&P SmallCap 600 Index that have the highest quality score, computated in the same way as SPHQ and XMHQ.
XSHQ includes names such as SM Energy Company (SM) and Mueller Industries Inc (MLI).
The quality factor introduces sector tilts to a portfolio. Compared to the cap-weighted S&P 500, SPHQ overweights IT, energy, and consumer staples, and underweights financials, consumer discretionary, and communications, as of December 30.
SPHQ charged 15 basis points, XMHQ charges 25 basis points, and XSHQ charges 30 basis points.
For more news, information, and analysis, visit the Innovative ETFs 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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SPHQ includes many mega caps and household names, such as Microsoft (MSFT) and Apple Inc (AAPL). Many investors turned to ETFs in the first quarter that invest in higher-quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation, according to Todd Rosenbluth, head of research at VettaFi. The fund is composed of 120 securities in the S&P SmallCap 600 Index that have the highest quality score, computated in the same way as SPHQ and XMHQ.
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SPHQ includes many mega caps and household names, such as Microsoft (MSFT) and Apple Inc (AAPL). For quality exposure to mid- and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ). XSHQ includes names such as SM Energy Company (SM) and Mueller Industries Inc (MLI).
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SPHQ includes many mega caps and household names, such as Microsoft (MSFT) and Apple Inc (AAPL). For quality exposure to mid- and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ). Comparing SPHQ, XMHQ, and XSHQ SPHQ is a fund giant with $4.8 billion in assets under management.
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SPHQ includes many mega caps and household names, such as Microsoft (MSFT) and Apple Inc (AAPL). For quality exposure to mid- and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ). Comparing SPHQ, XMHQ, and XSHQ SPHQ is a fund giant with $4.8 billion in assets under management.
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15863.0
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2023-05-12 00:00:00 UTC
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5 Key Takeaways From the Berkshire Hathaway Meeting
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AAPL
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https://www.nasdaq.com/articles/5-key-takeaways-from-the-berkshire-hathaway-meeting
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
“In the 58 years we’ve been running Berkshire, I would say there’s been a great increase in the number people doing dumb things, and they do big dumb things,” said Warren Buffett, CEO of Berkshire Hathaway, at Berkshire Hathaway’s annual meeting last Saturday.
He was speaking on the topic of value investing – an investment strategy that has undoubtedly worked for Buffett over the years.
Buffett’s advice on investing is why many people flocked to Berkshire’s annual meeting nearly a week ago. At the so-called “Woodstock for Capitalists” event, the Oracle of Omaha and Charlie Munger, Berkshire’s vice chairman, answered several hours of questions at the shareholder’s meeting.
So, in today’s Market 360, I’ll review the five key takeaways from last week’s event and Buffet’s comments on the current banking crisis. Plus, I’ll share my own insight on the ongoing banking crisis and how you can be prepared for whatever comes next.
5 Key Meeting Comments
To begin with, Berkshire Hathaway’s first-quarter earnings release coincided with the annual meeting.
For the quarter, the company reported operating earnings of $8.065 billion, up 12.6% from $7.16 billion in the last quarter of 2022. Net earnings, which includes short-term investment gains, came in at $35.5 billion, up substantially from $5.6 billion a year ago. This has to with first-quarter comebacks achieved from Buffett’s equity investments, like Apple Inc. (AAPL), of which Berkshire owns about 6%.
Apple was also one of the many topics covered in the annual meeting.
So, with that, let’s dig into five key takeaways from the meeting…
1. “Apple is Different” – Buffett said, “Our criteria for Apple were different than the other businesses we own. It just happens to be better business than any we own.” He added the iPhone is an “extraordinary product” for its popularity among customers. He even said that he regrets selling some shares of the company years ago. (Apple currently has a B-Rating, or “Buy,” in my Portfolio Grader, up in the last week from the C-Rating, or “Hold,” that it has been at since February.)
2. Deworsification of Portfolios – Munger said, “One of the inane things that’s taught in modern university education is that a vast diversification is absolutely mandatory in investing in common stocks.” He went to say the over-diversifying a portfolio can actually lead to a “deworsification” of an investor’s portfolio.
3. “Old Fashion Intelligence” vs AI – While both Buffett and Munger admitted that they believe AI will “change everything in the world,” Munger expressed that he is “skeptical of some of the hype.” Buffett doesn’t think that AI progress will ever trump human intelligence.
4. Occidental Petroleum – Buffett said that Berkshire Hathaway will not take over Occidental Petroleum Corporation (OXY). He stated, “There’s speculation about us buying control, we’re not going to buy control. … We wouldn’t know what to do with it.”
5. The Reserve Currency – When asked about Bitcoin (BTC) and the dedollarization trend, Buffett said that it is “a joke” to think of any tokens as the reserve currency, and that there is “no option for any other currency to be the reserve currency” besides the dollar. However, both Buffett and Munger did criticize the current over-printing of money.
Plus, given the recent banking crisis, Buffet also shared his thoughts about the banking system…
Buffett and the Banking System
Buffett believes that the banking system “shouldn’t” get stalled, although he said it very well “could.” He also assured depositors that they shouldn’t worry about losing their money.
As we know, though, banks have taken it on the chin recently.
Silicon Valley Bank and Credit Suisse Group AG (CS) collapsed in March, and shares of several regional banks fell near the end of last week. And on Monday, May 1, First Republic Bank (FRC) was sold to JPMorgan Chase (JPM), marking the second-largest bank asset failure in U.S. history.
Buffett did have some hard words about First Republic, saying that the directors and executives who were responsible for mismanagement should face “punishment.”
Then yesterday, shares of PacWest Bankcorp (PACW) ended the day down 23% after the bank announced that deposits dropped 9.5% last week. PacWest said that the outflows of cash started after news hit that the bank was “exploring strategic options.”
So, the banking system has definitely been turbulent lately – and, as I talked about at my Emergency Banking Briefing on Tuesday night, I believe the recent trouble with the banks is just beginning…
In fact, folks, I believe we’re about to see a historic “$8.3 Trillion Banking Shock.”
During Tuesday night’s live event, I’ll discussed in detail about this upcoming banking shock, and how it will leave millions of folks left behind… and why you don’t have to be one of them.
Instead, if you follow my playbook, you’ll have the chance to double your money over and over again in 2023 as the chaos unfolds.
If you missed my Emergency Banking Briefing event, click here for the replay.
Sincerely,
Louis Navellier
Editor, Market 360
P.S. On Tuesday night, I went live on camera to reveal the cold hard facts about the recent banking crisis and revealed 3 things you can do to protect your cash from any future bank failures…
I called the collapse of Silicon Valley Bank and First Republic months before they caught millions of Americans off guard.
And now I’m making what could be the biggest call of my career…
There is no time to waste.
Please click here to watch my Emergency Banking Briefing to prepare for what’s to come…
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
JPMorgan Chase (JPM) and Occidental Petroleum Corporation (OXY)
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 5 Key Takeaways From the Berkshire Hathaway Meeting 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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This has to with first-quarter comebacks achieved from Buffett’s equity investments, like Apple Inc. (AAPL), of which Berkshire owns about 6%. At the so-called “Woodstock for Capitalists” event, the Oracle of Omaha and Charlie Munger, Berkshire’s vice chairman, answered several hours of questions at the shareholder’s meeting. Buffett did have some hard words about First Republic, saying that the directors and executives who were responsible for mismanagement should face “punishment.” Then yesterday, shares of PacWest Bankcorp (PACW) ended the day down 23% after the bank announced that deposits dropped 9.5% last week.
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This has to with first-quarter comebacks achieved from Buffett’s equity investments, like Apple Inc. (AAPL), of which Berkshire owns about 6%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips “In the 58 years we’ve been running Berkshire, I would say there’s been a great increase in the number people doing dumb things, and they do big dumb things,” said Warren Buffett, CEO of Berkshire Hathaway, at Berkshire Hathaway’s annual meeting last Saturday. So, in today’s Market 360, I’ll review the five key takeaways from last week’s event and Buffet’s comments on the current banking crisis.
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This has to with first-quarter comebacks achieved from Buffett’s equity investments, like Apple Inc. (AAPL), of which Berkshire owns about 6%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips “In the 58 years we’ve been running Berkshire, I would say there’s been a great increase in the number people doing dumb things, and they do big dumb things,” said Warren Buffett, CEO of Berkshire Hathaway, at Berkshire Hathaway’s annual meeting last Saturday. Plus, given the recent banking crisis, Buffet also shared his thoughts about the banking system… Buffett and the Banking System Buffett believes that the banking system “shouldn’t” get stalled, although he said it very well “could.” He also assured depositors that they shouldn’t worry about losing their money.
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This has to with first-quarter comebacks achieved from Buffett’s equity investments, like Apple Inc. (AAPL), of which Berkshire owns about 6%. So, in today’s Market 360, I’ll review the five key takeaways from last week’s event and Buffet’s comments on the current banking crisis. (Apple currently has a B-Rating, or “Buy,” in my Portfolio Grader, up in the last week from the C-Rating, or “Hold,” that it has been at since February.)
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15864.0
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2023-05-12 00:00:00 UTC
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US STOCKS-Indexes slip with tech-related shares; consumer sentiment drops
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AAPL
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https://www.nasdaq.com/articles/us-stocks-indexes-slip-with-tech-related-shares-consumer-sentiment-drops
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nan
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nan
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By Caroline Valetkevitch
NEW YORK May 12 (Reuters) - U.S. stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low.
The Dow was barely lower in its fifth straight day of declines, the blue-chip index's longest losing streak in two months.
Tesla IncTSLA.Osharesfell 2.3% after jumping more than 2% on Thursday, when its CEO Elon Musk announced he had found a new chief executive for Twitter. On Friday he tweetedthat the job went to former NBCUniversal advertising chief Linda Yaccarino.
The S&P 500 technology sector .SPLRCTwas down 0.2%, while the consumer discretionary index .SPLRCDfell 0.9%.
Shares of Apple IncAAPL.Oand Amazon.com Inc AMZN.O were among the biggest drags on the S&P 500, along with Tesla. The technology index is still up about 22% so far this year.
"They've had an incredible run, so those valuation concerns are starting to manifest themselves," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
"To their credit, they have strong balance sheets, they had decent first quarters, so their businesses seem to be holding up, but there comes a point where valuations do matter."
May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap added to worries about the economic outlook.
Investors are concerned that the Fed's aggressive interest rate hikes could push the economy into recession. Fed Governor Michelle Bowman said Friday the Fed will probably need to raise rates further if inflation stays high.
The Dow Jones Industrial Average .DJI fell 8.89 points, or 0.03%, to 33,300.62; the S&P 500 .SPX lost 6.54 points, or 0.16%, to 4,124.08; and the Nasdaq Composite .IXIC dropped 43.76 points, or 0.35%, to 12,284.74.
S&P 500 utilities and consumer staples .SPLRCS were the leading sectors, both rising 0.4%.
For the week, the Dow was down 1.1%, the S&P 500 fell 0.3% and the Nasdaq rose 0.4%.
The Congressional Budget Office said on Friday the U.S. faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase.
Among Friday's gainers, News CorpNWSA.O shares rallied 8.5% after the media conglomerate beat Wall Street estimates for third-quarter profit.
First Solar Inc FSLR.O shares jumped 26.5% after the solar panel maker acquired Sweden's thin-film solar cell technology firm Evolar AB.
Volume on U.S. exchanges was 9.33 billion shares, compared with the 10.65 billion full-session average over the last 20 trading days.
Declining issues outnumbered advancers on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored decliners.
The S&P 500 posted 19 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 60 new highs and 239 new lows.
(Reporting by Caroline Valetkevithc; additional reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty, Arun Koyyur, Anil D'Silva and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple IncAAPL.Oand Amazon.com Inc AMZN.O were among the biggest drags on the S&P 500, along with Tesla. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap added to worries about the economic outlook.
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Shares of Apple IncAAPL.Oand Amazon.com Inc AMZN.O were among the biggest drags on the S&P 500, along with Tesla. May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap added to worries about the economic outlook. The Dow Jones Industrial Average .DJI fell 8.89 points, or 0.03%, to 33,300.62; the S&P 500 .SPX lost 6.54 points, or 0.16%, to 4,124.08; and the Nasdaq Composite .IXIC dropped 43.76 points, or 0.35%, to 12,284.74.
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Shares of Apple IncAAPL.Oand Amazon.com Inc AMZN.O were among the biggest drags on the S&P 500, along with Tesla. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. The Dow Jones Industrial Average .DJI fell 8.89 points, or 0.03%, to 33,300.62; the S&P 500 .SPX lost 6.54 points, or 0.16%, to 4,124.08; and the Nasdaq Composite .IXIC dropped 43.76 points, or 0.35%, to 12,284.74.
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Shares of Apple IncAAPL.Oand Amazon.com Inc AMZN.O were among the biggest drags on the S&P 500, along with Tesla. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. The Dow was barely lower in its fifth straight day of declines, the blue-chip index's longest losing streak in two months.
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15865.0
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2023-05-12 00:00:00 UTC
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How Apple Pleased Investors
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AAPL
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https://www.nasdaq.com/articles/how-apple-pleased-investors
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nan
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nan
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In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analyst Ron Gross discuss:
The Fed's latest rate hike, April's jobs report, and the latest banking drama.
Apple's surprising quarterly results and $90 billion share buyback plan.
Shopify shares rising 25% due to multiple company announcements.
The latest from Marriott, Booking Holdings, and Starbucks.
MercadoLibre's continued growth and impressive runway.
Warner Bros. Discovery posting a first-quarter profit in its streaming division.
The latest from Uber, Lyft, Atlassian, and Johnson & Johnson.
Two stocks on their radar: Nice and Oxford Industries.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Apple
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This video was recorded on May 05, 2023.
Chris Hill: Is Earnings Palooza, one word or two? Doesn't matter. Motley Fool Money starts now. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill. Joining me in studio, Motley Fool senior analysts, Ron Gross and Andy Cross. Good to see you as always gentlemen.
Ron Gross: How are you doing, Chris?
Chris Hill: We've got the latest headlines from Wall Street. It is such a busy week. We don't even have time for a guest. But as always, we've got a couple of stocks on our radar. We begin with the big macro. On Wednesday, the Federal Reserve raised interest rates by a quarter percent as expected. Friday morning, the Commerce Department announced an additional 253,000 jobs were added in April, sending the unemployment rate down to 3.4% all while the banking industry continues to be more exciting than most investors would like. Ron Gross, where do you want to start?
Ron Gross: Where to begin, Chris? How about that stock market on Friday? Pretty strong. Let's work backwards. Let's start with Friday. As you said, job numbers came in better than expected, although March was revised down. As you said, unemployment remains very low at 3.4%. Wages were up, which does have some economists scratching their heads. You probably wouldn't necessarily predict that, but wages are up. From my perspective, it's really hard to root for a week job market and it's hard to root for wages to come down. But [laughs] in a certain sense, that's what the Fed is going to be looking for in order to stop raising rates and eventually start decreasing rates. I think this strong number gives the Fed some cover in case they wanted to keep increasing. I think the important part is that earlier in the week working backwards after they hiked for the 10th consecutive time, some of the language indicated that perhaps they would pause and you would have expected market to shoot up on that, but no, Chris, it did not because I think some folks were really focused on Powell's speech, which is usually the case where he made some more modest comments and said, don't get too excited yet, we might not be out of this quite yet, but things are certainly moderating with respect to inflation and perhaps good things are ahead. I'll just add that there is a price cut priced in to 2023, statistics would say. I think that's way wrong. I can't imagine we're going to see interest rates cuts in 2023. We might even see another hike or two. I'm not an economist. That's just my read of the data.
Chris Hill: Andy, to Ron's point, what a difference two days make? Because on Wednesday afternoon it was looking like, when we look ahead to June, the Fed is going to come out and pause. We get the jobs report. We get the wage report. It's like the economy is still just humming along nicely, which means we're probably getting another rate hike in June.
Andy Cross: Chris, as I sit on Fool Live this week, I don't know why the Fed felt like they had to get ahead of the jobs report with that announcement, maybe they had some indications inclining of what this strong jobs number is going to look like. But as the chair said in his press conference and as Ron alluded to, we've had 10 straight increases in the federal funds rate and unemployment has just stayed at record lows and they need to see unemployment and the hourly wages with that running at 4.5%, which by the way, I think now so many of us are starting to bake in some of those increases knowing that the inflation numbers are still quite strong. That's really what has the Fed concern that the wage increases are not going to moderate and that's going to keep inflation running hot. That's why now it looks like, as Ron said and I agree, you just have this higher for longer and investors have to recognize that. That might just continue to put this volatility in the markets as they digest this expectation. Wow, and this is what I think is driving Fridays numbers, the economy is actually still and the consumer relatively in good shape.
Ron Gross: Layering the banking crisis. Good case, there wasn't enough going on. The banking crisis is interesting because everyone keeps saying there's nothing to worry about and then a new bank folds every few days. The latest one being First Republic Bank, which eventually ended up being sold to JPMorgan. Friday, the strong market actually is more probably about the rebound in regional bank stocks than it is about anything in the Fed payroll report or in the interest rate cuts. We are seeing some people saying, maybe things aren't necessarily as bad. Perhaps there seems to be an unannounced bailout available for anyone that needs one and it has some investors feeling more calm.
Chris Hill: You used the word rebound, and broadly you're correct about that. But a week ago we have First Republic being seized by regulators. Then as you said, it's sold to JPMorgan Chase. PacWest is the next regional bank that everyone is looking at. This week, Andy, shares of PacWest down 60%. Western Alliance, First Horizon both down more than 35%. Broadly, it seems like things are OK, but we still have regional banks that are right there on the edge.
Andy Cross: Well, the volatility in the stock prices, as I was listening some other analysts talk is, who wants to go long into this weekend? Only one of these banks with just anything can happen over the weekend. It's like get out right now, close your sure position and take whatever maybe little gains you may have had this week. JPMorgan, the deal they got for First Republic, that is a very good and long-term deal they got. While the crisis might be going on for some of the smaller banks, certainly some of the larger banks are still in pretty good shape.
Chris Hill: Yeah. It reminds you when you think back two weeks ago with Silicon Valley Bank and the aftermath of that, and I remember asking someone on this show, where is Jamie Dimon and all this? Usually the smartest person in the room, probably the most respected person in the banking industry, where's Jamie Dimon? Why isn't he talking? The answer was, Jamie Dimon is watching all of this and he's going to make his move when the time is right.
Andy Cross: A hundred percent.
Ron Gross: Yeah, buying assets on the cheap.
Chris Hill: Let's get to some earnings. We're going to start with Apple. Second-quarter results were better than expected, but that took a back seat to Apple's announcement of a $90 billion share buyback plan. They also hiked the dividend another 4%, Andy.
Andy Cross: Yeah, whopping 4%. I like to see that a little bit higher, but clearly it was an earnings report that on the expectations front, I think they exceeded some expectations of worsening iPhone sales. iPhone sales were up 1.5% to 51.3 billion, a Q2 record and ahead of some of the estimates, and that was the big concern. Now you have the iPhone that's so meaningful to Apple's business. Even though sales overall were down 3%, there were a lot of currency impacts there. The real growth angle here, Chris and Ron, were the emerging markets and you got a sense of that because Tim Cook has been talking more about that, the CEO of Apple, traveling over to India and the impact of what India soon to be, if not now the most populous country in the world. They've opened up two stores in India now. The emerging market growth is really impressive across the Philippines, Saudi Arabia, Indonesia, Mexico, UAE, Turkey. China was actually down, so we're still seeing some impacts from the China come through. Mac and iPad met expectations, but really tough comps with last year. Those weren't very impressive. Services continues to be the other side of the coin with iPhone, up 5.5% to 21 billion, another all-time record, and that was on top of 17% growth a year ago. Wearables was about flat at about 8.8 billion on the sales side, 975 million paid subscribers now to services. That is just really impressive when you think about the ecosystem that Apple is building. Apple Pay later they launch, launch shop with video. The high-yield savings account partnership with Goldman Sachs, they said was really incredible. Global manufacturing now supporting 13 gigawatts of renewable energy. Gross margin was up 130 basis points. That was pretty impressive. Even though product gross margin was down a little bit. Add it all together, you have net income down 3%, you buy back a bunch of shares, you put out announcement that you're going to return shareholder to capital and you have a stock that's up 4.5%.
Ron Gross: I'll take the other side of it because we've got an hour here. We'll chat about the other side of it. Don't tweet me, Apple is one of my favorite companies and it's one of my biggest holdings. But what are you going to pay for a company with declining revenue and income, even though yes, they've reduced their share count significantly and they'll pay you a whopping 0.6% yields? Are you going to pay 27 times because that's what you've got to pay right now? Now, I'm not selling, so that means I'm willing to pay 27 times. I'm not probably willing to pay 30, 33, 35 times. I want to see some growth, Apple putting up some growth numbers.
Andy Cross: Well, Ron mentioned the impact of the banks to the market this week. Apple as a $2.7 trillion company, the stock's up almost 40% year-to-date. They represent, I think somewhere around 7% of the S&P 500 of that index and they have a big impact on the dollar too because it's price-weighted. You see the impact this large company with this quarter. Also just a flight to safety I think is also impacting there. You see it with Apple, you see with Microsoft when you're going for quality. Even though people are saying, hey, I'll pay 20 times earnings for that business. That is one of the most respected businesses in the world.
Chris Hill: For those who do want a tweet ad him, @rongross144 is Ron Gross's Twitter handle.
Ron Gross: Please do.
Chris Hill: After the break, we've got the latest in travel stocks, e-commerce and more. We're just getting started, so stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here in studio with Ron Gross and Andy Cross. Marriott's first-quarter revenue rose 34%, fueled by higher consumer demand outside the US. Share us Marriott up a bit this week, Ron.
Ron Gross: It's a strong report and it's been a strong year up 20% the stock so far for Marriott. I think you would expect that as things started to open up and now especially in China, you really seeing that help their results in a pretty big way. First-quarter comparable revenue per room, RevPAR, as we like to say, is up 34% worldwide, 26% in US and Canada, and 63% in international markets. In Greater China, RevPAR rebounded to 95% of pre-pandemic levels and Mainland China recovered fully to 2019 levels. That's a big deal that will show up in the numbers. As you said, revenue was up 34%. US and Canada, Marriott saw solid demand across leisure segment of business demand continued to improve, that obviously will help the bottom line as well. CEO said that global economic picture is uncertain, demand remains strong and we're not seeing signs of a slowdown, so those that are worried about recession one CEO's opinion. They added 11,000 rooms globally adjusted our earnings per share up 67%, raised full-year forecast trading around 21 times full-year earnings guidance, not too bad for me, a little bit less than 1% dividend yield.
Chris Hill: Did they provide any color on the Bonvoy program? Because it seems like from a marketing standpoint, Marriott is pushing that program hard. I'm assuming it is paying off in terms of loyalty program members.
Ron Gross: Yes. I don't have the numbers in front of me, but the program is doing well and numbers are up for sure.
Chris Hill: Sticking with travel, gross bookings for Booking Holdings rose more than 50% in the first quarter, but shares of Booking Holdings were already close to an all-time high before the report, Andy. It probably would have needed to be incredible results and amazing guidance to move the stock meaningfully higher.
Andy Cross: It would have to be beyond amazing, Chris, because this was like with very much with Marriott. This was a very impressive quarter, of course, a lot of those expectations, the stock was up 26% to date so far you mentioned that gross travel bookings up more than 50% if you back out some of the currency impacts. It doubled a year ago, so relatively it's still very impressive, but compared to a year ago, it was down. But at 155% of the first quarter of 2019. It's above where we were pre-pandemic, which is great. The real impressive thing we're seeing with Booking now and with their platform is 45% of all bookings are booked through their payments platform directly with them versus 34% a year ago. That really helps drive efficiencies. They see future bookings out now longer than before. People are planning their trips. Corporations maybe even planning their trips, their bookings, whether it's flights or whether it's rental, hotel stays. They're looking out further now and that's a sign of confidence that Booking is seeing. Asia had more than double when it comes to the room nights booked. That is now at an all-time high total of 274 million. That was up almost 40%. Rental cars were up 23%, airline tickets up 73% versus 69% a year ago. You're just seeing this momentum with the travel industry, EBITDA that the operating profits were up nicely, up almost 90%. It was a little bit below expectations because again, as people are planning those trips further out, Booking will recognize that revenue later, but the marketing expenses happened right now. That might be a little bit of what analysts are paying attention to and investors paying attention to right now. Share count down 8% over the past year, earnings per share up almost 200%, free cash flow up 78%. China's still is not back to where it needs to be and they're excited about what's going to happen in China going forward.
Chris Hill: I know that stock splits don't matter because it doesn't change the underlying value of the business. But a single share of Booking Holdings is $2,500. There are reasons that businesses have for splitting this. Is there any talk of that at the company or even around the company that maybe it gets them into other funds because the share price would be lower if they split it?
Andy Cross: That's right and they don't pay a dividend for a relatively stable company. It can be very cyclical too, but you have a business that sells less than 20 times this year earnings compared to Marriott out at about 21 times. Right in that same ballpark, the market pays about 18 times and this business can grow, I think in the 10-20% range. I think the deal is pretty good whether it splits the stock or not.
Chris Hill: Starbuck's second-quarter results were highlighted by higher profits, same-store sales in the US rising 12%. For the first time in nearly two years, positive same-store sales in China, and despite all that goodness, Ron, shares of Starbucks down 6% this week.
Ron Gross: Yeah, I was scratching my head. It's definitely because investors were not impressed with the guidance. The guidance was cautious, which I don't blame them. There's still a lot of moving pieces here, but they were able to pass through prices. China as you said, operations are becoming more efficient, that did lead to a solid report. I wouldn't have been surprised if the market had taken the stock higher revenue up 14%, same-store sales up 11%. That was driven by a 6% increase in transactions and a 4% increase in the average ticket. US same-store sales up 12%, international up 7%. Now only 3% in China, but growth is growth. We'll take growth and we're seeing that as we discussed with Marriott as well. That will continue to increase. Employee turnover in the US has declined in recent months, they had some issues there. New equipment in stores is helping the workers become more productive, adjusted earnings up 25%. First-time the new CEO was on the call after Howard Schultz stepped down in March, they reaffirmed guidance. That wasn't that exciting as we said to investors though, and the stock sold off a bit 27 times, not cheap, and so people are willing to take money off the table if they don't like what they hear.
Chris Hill: Shopify's first-quarter results were better than Wall Street was expecting, but the report was overshadowed by Shopify's announcement that it's cutting 20% of its workforce. Altogether, investors did like what they heard and shares of Shopify rose 25% this week, Andy.
Andy Cross: Well, almost more importantly, Chris, they are selling their fulfillment business and their logistic business that they just bought a year ago this week when they made an acquisition of deliver for more than two billion dollars. They are now selling that all over to Flexport, a 10-year-old logistics company that they already had an equity investment into. They will now get 13% of that business for selling to Flexport. They are offloading a business that they were very excited to invest in. Logistics, as we've talked about, very expensive, very complicated. There are a lot of players in there. Amazon, the big player and Shopify felt they had to build out a logistics business. Now they're getting out of that. That on top of a very good quarter with gross merchandise volume so the stuff that's sold across Shopify platform up 15%. That was far better than analysts estimates at about 10%. Revenue was up 25% ahead of estimates by about 70 million. Their merchant solution sales is up 31%. Gross payment volumes was 56% of that gross merchandise volume versus 51% a year ago and that payment business is very valuable. Now the big question is for Shopify is they talked a lot about artificial intelligence and AI and the investments they're making there that they are no longer making in the fulfillment business. Will that be enough to continue to propel the business forward? That's what clearly are excited about what they're seeing in Shopify and they've been beating the stock up for the past six months.
Chris Hill: You got to respect CEO Tobi Lütke for cutting bait on an acquisition just one year later.
Andy Cross: Absolutely. They recognize that this was not a business they wanted to be in. They talk about different investments they want to make, and logistics is not the investment that they thought it could be, and now they're going to focus on much more of their core offerings for e-commerce solutions.
Chris Hill: After the break, Earnings Palooza rolls on so stay right here. This is Motley Fool Money.
Chris Hill: Welcome back to Motley Fool Money. Chris Hill here in studio with Ron Gross and Andy Cross. Despite being in the same industry, Uber and Lyft continued to perform as very different businesses. Both reported first-quarter results this week, but the reaction was much more positive toward Uber than Lyft. Ron, it really seems like it largely comes down to the guidance when you consider Lyft forecasting a weak Q2 and Uber CEO basically saying, by the end of this year, we're going to be GAAP profitable.
Ron Gross: Uber is really in control at this point. They haven't diversified model with Uber Eats and Lyft is focused, but Uber now controls 70% of the US rideshare market. I don't think that that's going down. Let's just say Lyft had been cutting prices in order to gain market share. I don't think that can continue because the business model won't support it. This is Uber's game and they're putting up pretty strong results as a result. Revenue up 29% and gross bookings grew 19% increased the number of consumers and trips and the value of the transactions on the platform. Trips were up 24%. Mobility, which is the ride share up 43, delivery, Uber Eats up 12%. They haven't been having trouble finding drivers that had been a challenge across the industry. They added more than one million active drivers during the quarter. That's a 35% increase. Good to see them making headway there. Uber won their membership deal now accounts for 27% of total gross bookings. That's pretty good for the business model as well. CEO indicated that growth no longer takes a back seat to profitability speaking the music of Wall Street, which is what we want to hear nowadays versus a couple of years ago. Although they did report a loss, they had adjusted EBITDA of $760 million better than expected. Guidance is for that to improve. Then you contrast that with Lyft who's guidance is weak stock getting smacked, not profitable, and likely to lose share in the future and it remains Uber's game to lose.
Chris Hill: Shares of Atlassian taking a hit this week, despite the fact that third-quarter profits in revenue came in higher than expected for the software company. This is something that we've seen from companies bigger than Atlassian where the slowing cloud growth outweighs what on paper look like pretty nice results.
Andy Cross: Chris, that's exactly right. The slowing of the expected growth for their cloud business they're looking for this last quarter, they just reported their third fiscal quarter for the fourth-quarter cloud to be 26-28% on the revenue side. That still is about 37% for the year, which is what they guided before. But the deceleration from that growth of what it was this quarter up 34%, along with our data center business, which was up 47%, very impressive, that's really the concern because they are spending a lot of time and money and energy on making this transition over to the Cloud for their clients, moving away from on-premise into the Cloud for their tools. That is starting to show that, maybe this changed a little bit more difficult. They talked about this on their call. The team talked about how they're having still challenges on expanding their seat licenses for the Cloud business and for the subscription business in this macro-environment as companies including Atlassian, which laid off 500 people, aren't hiring as fast and that doesn't equal as many licenses as it did before. Some of the guidance for Atlassian is a little bit weak and that's hit the stock this week.
Chris Hill: This week, Johnson & Johnson spun off the consumer health part of its business under the new name Kenvue. The company is now home to well-known brands like Tylenol, Band-aid, Listerine, and more. Shares of Kenvue rose more than 20% on its first day of trading, resulting in the company having a market cap of $50 billion. Ron, we were talking about this before we started recording. This is a little unusual because it's not exactly a spin-off and it's not exactly an IPO. It's both.
Ron Gross: It feels more like an IPO with the spin to come later. They took the company public, they generated cash as a result of that J&J. The pharmaceutical business will retain that cash as a result of innocent selling Kenvue. Then as they say, they'll distribute the remaining shares of Kenvue to shareholders later this year. I searched and searched and searched for a little bit more meat on the bones there and I could not come up with it. That's a little bit different than perhaps a typical spin where you think I'm going to get a half a share, preferred share or one share for each year. A little bit different. But I think if investors are patient, this will pay off. Kenvue is a strong business. It's not the biggest growth business in the world. It'll be a moderate-growth business. The billion dollars in profits, billion-and-a-half actually, and as you said, very strong brand names, the dividend will likely be the reason most people flock to this stock I would think. Indications are that the yields will probably be around 3% when all is said and done. I think for a stable company with strong brand names and a strong balance sheet, that might be a nice place to put some money in your portfolio.
Chris Hill: But it's going to be interesting to see what happens in the fall because as you said, there are still these details to come out. We don't know exactly how many shares J&J shareholders will get. We don't know exactly what the dividend will be. Because if you think about the IPO that happened this week, there was a lot of built-in enthusiasm in part because we hadn't had a big splashy IPO in a while. This was not some young start-up going from being a private company to a public company. This is an established, well-known business, a lot of transparency and a very experienced management team.
Ron Gross: In this market that's probably like the perfect IPO for this market because I'm not sure how investors would have received something more on the risky side, but J&J retains 90% of this company. We'll see what happens down the road later this year. We'll see what the float looks like. We will see what liquidity in the market looks like, but it's a solid, mature company and I think investors will do fine.
Chris Hill: Another strong report for MercadoLibre, first-quarter reports for the Latin American e-commerce company were much higher-than-expected. Their payments system continues to grow. After a rough 2022 shares, MercadoLibre are up more than 50% year-to-date Andy.
Andy Cross: It sure was a strong quarter Chris, when you look at their gross merchandise. Volume of products sold across the market was up more than 43% and 9.4 billion. That was often a 35% increase just a quarter ago. So sequential goals. Seeing the acceleration and increasing the take rate, which is the revenues they get off of what sold to 17.8% from 16.7% driven by shipping fees, they do have a very logistics-heavy business and they spend a lot of money on their logistics and shipping as well. Ad revenues, they have been spending a lot of effort and resources on building out an ad platform tied to the MercadoLibre platform and they are really excited about that and that's having some marginal improvements. They had some minor price increases to help offset the cost. Really, revenue strength across the entire board up 58% when you back up the strong US dollar up 62% in Mexico, up 26% in Brazil, up 39% in Argentina. Chris, you mentioned the payment volume, that was up 46% or almost a double when you back out the strong dollar. Off-platform payments volume more than doubled for six months consecutive quarters. When you think about the real value that MercadoLibre is building in their platform, you're seeing both the sales growth but what's really impressive is that starting to show up into the profit picture. I think that's what's really getting investors excited.
Chris Hill: What do you think the runway is like for this business? Because it's a $60 billion company. When you think about years ago when MercadoLibre was a smaller business, Amazon essentially tapped out and said we're not going to compete in this region of the world.
Andy Cross: MercadoLibre are often considered the Amazon of Latin America. I mentioned this strength. They really are building up this strength and this brand. There's leadership position in a part of the market that is very unique and require in lots of different unique skill sets. I think that runway just in that Latin American market where so much consumer activity continues to migrate online, really speaks well to the growth avenue for MercadoLibre.
Chris Hill: Warner Brothers Discovery posted a loss in the first quarter that was bigger than Wall Street was expecting, but the streaming division was profitable. CEO David Zaslav says, Warner Brothers Discovery is going to keep focusing on their balance sheet run.
Ron Gross: They should. They ended the first quarter with 2.6 billion in cash and almost 50 billion in debt. That makes good sense to me. That's a fair amount of debt. Just a reminder, the company was formed last year as a result of Discovery's merger with AT&T's Warner Media. The resulting company does have a lot of debt on the balance sheet, so certainly something to focus on. But the highlight was really management's comments that direct-to-consumer business, the DTC business, which includes HBO and Discovery, should be profitable for 2023, all of 2023. That's a year ahead of guidance. A pretty big deal, I think investors certainly were happy to hear that. The rest of the report, not so impressive. Revenue was down 5%. The studio segment, which includes Warner Brothers, a 7% decrease in revenue, networks segment which includes CNN and TNT and networks like that, had a 10% increase in revenue. But direct-to-consumer was the big deal here with adjusted EBITDA of $50 million. Profitable-ish, there are some adjustments in there and it's not net income, it's EBITDA, but still on their way. That was a $700 million year-over-year improvement and on their way to profitability. They're going to launch their Max streaming service on May 23, which is the combination of HBO, Warner Brothers library and some unscripted Discovery shows. Harry Potter content will be in there. No discussion on the call about the writers' strike. CEO David Zaslav did talk about it a bit on CNBC Squawk Box show, said all the right things. Obviously, everyone wants to come to a resolution here, but they are way far apart, the writers and the studios here. I don't see this happen in getting resolved overnight.
Chris Hill: Let's be clear. Warner Brothers Discovery is not the only business that is dealing with this. When you look at Netflix, Paramount Global, which had a rough week in a rough report, Disney, NBC, Universal. For context, the last time there was a writers' strike, it lasted three-and-a-half months. The challenges they were dealing with then Andy seem almost quaint by comparison to, hey, we have this new world, it's all about streaming, we need to figure out how we're going to get paid because say what you want about the old era, but there was more transparency in terms of television ratings and box office receipts.
Andy Cross: A 100%. You also have the generative AI and how people are going to create content and how many people are going to be involved in creating these amazing shows or anything really. That's just putting in a whole Cloud over the entire industry I think.
Chris Hill: Coming up after the break, we have a couple of questions for Warren Buffett. We also have a couple of stocks on our radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about on the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you issue. Welcome back to Motley Fool Money. Chris Hill here in studio with Ron Gross and Andy Cross. You can hear the show every week on radio stations across America, including our brand-new affiliate KAOI in Maui, Hawaii.
Andy Cross: What a hell. Time for a road trip.
Chris Hill: You can also listen to the Motley Fool Money podcasts seven days a week on your favorite podcast app. Earlier in the week on the podcast, our colleagues Deidre Woollard and Matt Frankel were talking about the Berkshire Hathaway meeting which is happening this weekend. Obviously one of the highlights is the marathon Q&A session that Warren Buffett and Charlie Munger do. Matt Frankel submitted a question as hundreds if not thousands of people do, and wanted to get your thoughts on these guys because the question he submitted for Warren Buffett is actually the question I have as a Berkshire Hathaway shareholder, which was essentially and I'm paraphrasing what Matt said on the show. Walk me through the Activision Blizzard stake that you took, which was a year ago, is right before last year's meeting because Matt wants to know, hey, was that just an arbitrage play or was there strength in the underlying business that you were seeing, that thing? That's his question. Ron let me start with you. You get to ask Warren Buffett a question. What are you asking him?
Ron Gross: I think I would say, Mr. Buffett, your ownership of Apple notwithstanding your views on technology are pretty clear. I'm wondering what you think of artificial intelligence and ChatGPT, and whether you think it's good for business and society. What I really want to know is what Munger thinks because he'll go off on or maybe he won't, maybe he thinks it's really interesting and as long as it's positioned correctly and has regulations associated with it, it will be a positive thing for society, but I would actually love to hear what both have to say.
Chris Hill: Well, and beyond that, you have to believe that there are at least looking at the question of what's the best way to invest in this. Andy, what about you?
Andy Cross: Well, the banking crisis and the industry will get a lot of conversation. But what I'm really interested in is I want to know is Mr. Buffett's phone ringing more or less than it was during 2008 crisis. Maybe even pull the audience, what is the over-under on how many times and how many calls per day the Federal Reserve or the Treasury Department or just any bank may have called Warren Buffett and asked him for some help, or as more likely Berkshire Hathaway for some help.
Chris Hill: Well, let's go back to earlier in the show we were talking about Jamie Dimon at JPMorgan Chase. For context, Dimon made very clear at the beginning of the week that the government called him about buying First Republic. Warren Buffett, do you think about how he pounced on those shares back during the Great Recession, 2008-2009? You have to believe he's getting calls about some of these regional.
Andy Cross: I'm sure he is. I'm guessing back then he was almost more like a US citizen, save the financial industry and perhaps even the US economy at that point. Then we're just not in that spot right now.
Ron Gross: He's more interested in injecting capital for some sweet deal, some convertible preferred or some deal that is good for Berkshire. I don't think he's interested in actually buying assets or buying a whole bank to put into the Berkshire fold. But yes, I'm sure he was consulted.
Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd is going to hit you with a question. Ron, you're up first, what are you looking at this week?
Ron Gross: Dan, I've got Oxford Industries. OXM owns a number of high-end apparel brands, the most well-known probably as Tommy Bahama. They've got Lilly Pulitzer, Johnny Was, and Duck Head. The company was founded in 1942. It's paid a dividend every quarter since becoming a public company in 1960. Twenty years ago, they were focused on their Oxford brand. They've divested, they've acquired mostly beginning in 2003 when the Tommy Bahama brand came on board, that now accounts for about 60% of revenue in the most recent quarter, they have 2.3 million customers. Sales were recently up 24%. Their dividend payout has increased by 261% over the last 10 years and they currently yield 2.5%. I will caveat this by saying apparels are rough business, inventory levels are high as is their debt.
Chris Hill: Dan, question about Oxford Industries. Ron, I got to imagine you've got some Tommy Bahama pieces at home in your closet right now. You would not be wrong, Dan. Andy Cross, what are you looking at this week?
Andy Cross: Dan, I'm looking at Nice Limited and Israeli-based company. And here's the deal Dan, if you have integrated or if you've talked to a Fortune 100 company through a chat system or an email or anything that's tied to customer service you likely have dealt with Nice's system. N-I-C-E is simple provides cloud customer service platform and tools through its suite office called CX1 that does all omnichannel contact center software, AI, chat analytics, automation, 27,000 clients, including 85% of the Fortune 100, generates more than two billion annual sales. The mark cap is 13 billion. The stock has actually flat year to date, still has one and a half billion dollars of cash had generated Nice return on equity. You're paying 23 times forward earnings. They'll report earnings next week. What I'm really interested in is just their conversation around generative AI, ChatGPT. They've been very aggressive and investing in artificial intelligence over the years, but I really want to see what they are doing for those investments going forward.
Chris Hill: Dan, question about Nice. Andy, whenever you're in a customer service situation, how quickly are you trying to get to talk to an actual person instead of one of these chatbots or phone trees or whatever else.
Andy Cross: Dan, if I had one of those old dial phones where you dial zero to get to a person, I would be hitting it constantly. You would see my fingerprint in there. I am very actively trying to get to a person, yes. But that's not always going to be the way my friend.
Chris Hill: Two very different businesses. Dan, do you have one you want to add to your watchlist?
Dan Boyd: Listen, I know that AI, and chatbots and stuff, there's no avoiding them. I know that they're here to stay and somebody's going to be making money off of them. But I'll tell you right now, boys, when I'm involved in a customer service situation, I just want to talk to a real person. I'm going with Ron this week to the Oxford Industries.
Ron Gross: Do you own any Tommy Bahama, Dan?
Dan Boyd: I have a couple of pieces myself, Ron.
Andy Cross: I'll just say Dan, that Nice they provide lots of hell for very nice people to be able to talk to people just like you. Lots of curmudgeons out there who want to talk about
Chris Hill: Ron Gross, Andy Cross guys, thanks for being here today.
Andy Cross: Thanks, Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill, thanks for listening. We'll see you next time.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Andy Cross has positions in Activision Blizzard, Atlassian, Berkshire Hathaway, Booking Holdings, Johnson & Johnson, MercadoLibre, Netflix, Starbucks, and Walt Disney. Chris Hill has positions in Activision Blizzard, Amazon.com, Apple, Atlassian, Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson, MercadoLibre, Shopify, Starbucks, and Walt Disney. Dan Boyd has positions in Activision Blizzard, Amazon.com, Berkshire Hathaway, and Walt Disney. Ron Gross has positions in Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase, Marriott International, Starbucks, and Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Atlassian, Berkshire Hathaway, Booking Holdings, Goldman Sachs Group, JPMorgan Chase, MercadoLibre, Netflix, Shopify, Starbucks, Uber Technologies, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends Johnson & Johnson, Marriott International, Nice, Oxford Industries, and Western Alliance Bancorporation and recommends the following options: long January 2024 $145 calls on Walt Disney, short April 2023 $100 calls on Starbucks, 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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The challenges they were dealing with then Andy seem almost quaint by comparison to, hey, we have this new world, it's all about streaming, we need to figure out how we're going to get paid because say what you want about the old era, but there was more transparency in terms of television ratings and box office receipts. N-I-C-E is simple provides cloud customer service platform and tools through its suite office called CX1 that does all omnichannel contact center software, AI, chat analytics, automation, 27,000 clients, including 85% of the Fortune 100, generates more than two billion annual sales. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Atlassian, Berkshire Hathaway, Booking Holdings, Goldman Sachs Group, JPMorgan Chase, MercadoLibre, Netflix, Shopify, Starbucks, Uber Technologies, Walt Disney, and Warner Bros.
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In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analyst Ron Gross discuss: The Fed's latest rate hike, April's jobs report, and the latest banking drama. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Atlassian, Berkshire Hathaway, Booking Holdings, Goldman Sachs Group, JPMorgan Chase, MercadoLibre, Netflix, Shopify, Starbucks, Uber Technologies, Walt Disney, and Warner Bros. The Motley Fool recommends Johnson & Johnson, Marriott International, Nice, Oxford Industries, and Western Alliance Bancorporation and recommends the following options: long January 2024 $145 calls on Walt Disney, short April 2023 $100 calls on Starbucks, and short January 2024 $155 calls on Walt Disney.
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In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analyst Ron Gross discuss: The Fed's latest rate hike, April's jobs report, and the latest banking drama. Chris Hill: Sticking with travel, gross bookings for Booking Holdings rose more than 50% in the first quarter, but shares of Booking Holdings were already close to an all-time high before the report, Andy. Andy Cross: Well, almost more importantly, Chris, they are selling their fulfillment business and their logistic business that they just bought a year ago this week when they made an acquisition of deliver for more than two billion dollars.
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It is such a busy week. For the first time in nearly two years, positive same-store sales in China, and despite all that goodness, Ron, shares of Starbucks down 6% this week. Chris Hill: Two very different businesses.
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2023-05-12 00:00:00 UTC
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US STOCKS-Indexes end down with tech-related shares; consumer sentiment falls
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AAPL
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https://www.nasdaq.com/articles/us-stocks-indexes-end-down-with-tech-related-shares-consumer-sentiment-falls
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By Caroline Valetkevitch
NEW YORK May 12 (Reuters) - U.S. stocks ended lower on Friday, led by weaker big technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low.
Tesla IncTSLA.Oshares fell after jumping more than 2% on Thursday, when Elon Musk announced he had found a new chief executive for Twitter.
Musk tweeted Friday he had picked former NBCUniversal advertising chief Linda Yaccarino as Twitter's new CEO.
The S&P 500 technology sector .SPLRCT was lower, with shares of Apple IncAAPL.O among the biggest drags. The technology index is still up about 22% so far this year.
"They've had an incredible run, so those valuation concerns are starting to manifest themselves," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook.
Investors are concerned that the Federal Reserve's aggressive interest rates hikes could push the economy into recession.
According to preliminary data, the S&P 500 .SPX lost 6.48 points, or 0.16%, to end at 4,124.14 points, while the Nasdaq Composite .IXIC lost 43.76 points, or 0.35%, to 12,284.74. The Dow Jones Industrial Average .DJI fell 8.86 points, or 0.03%, to 33,300.65.
The Congressional Budget Office said on Friday the U.S. faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase.
Among gainers, First Solar Inc FSLR.O shares jumped after the solar panel maker acquired Sweden's thin-film solar cell technology firm Evolar AB.
News CorpNWSA.O shares rallied after the media conglomerate beat Wall Street estimates for third-quarter profit.
(Reporting by Caroline Valetkevithc; additional reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty, Arun Koyyur, Anil D'Silva and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The S&P 500 technology sector .SPLRCT was lower, with shares of Apple IncAAPL.O among the biggest drags. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended lower on Friday, led by weaker big technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. "They've had an incredible run, so those valuation concerns are starting to manifest themselves," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
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The S&P 500 technology sector .SPLRCT was lower, with shares of Apple IncAAPL.O among the biggest drags. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended lower on Friday, led by weaker big technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. Adding to investor worries, May consumer sentiment dropped to its lowest since November as a standoff to raise the federal government's borrowing cap fanned worries about the economic outlook.
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The S&P 500 technology sector .SPLRCT was lower, with shares of Apple IncAAPL.O among the biggest drags. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended lower on Friday, led by weaker big technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. According to preliminary data, the S&P 500 .SPX lost 6.48 points, or 0.16%, to end at 4,124.14 points, while the Nasdaq Composite .IXIC lost 43.76 points, or 0.35%, to 12,284.74.
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The S&P 500 technology sector .SPLRCT was lower, with shares of Apple IncAAPL.O among the biggest drags. By Caroline Valetkevitch NEW YORK May 12 (Reuters) - U.S. stocks ended lower on Friday, led by weaker big technology-related shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low. Tesla IncTSLA.Oshares fell after jumping more than 2% on Thursday, when Elon Musk announced he had found a new chief executive for Twitter.
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2023-05-12 00:00:00 UTC
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3 Technology Stocks That Pay Strong Dividends
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https://www.nasdaq.com/articles/3-technology-stocks-that-pay-strong-dividends
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When investors are looking for dividend stocks to buy, they may not immediately think of technology stocks. After all, tech stocks are generally associated with capital gains through share price appreciation, not dividends, since many tech stocks do not pay dividends.
However, this has begun to change. The technology sector contains many reliable, high-yield dividend stocks. This article will discuss three blue-chip tech stocks with solid dividend yields and high dividend growth potential.
Qualcomm (QCOM)
Source: Michael Vi / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is a semiconductor manufacturer that develops and sells integrated circuits for use in voice and data communications. The chip maker receives royalty payments for its patents used in devices that are on 3G, 4G and 5G networks. Qualcomm has a current market capitalization of $149 billion and has annual sales of about $38 billion.
On May 3, the company reported second-quarter financial results. Revenue of $9.27 billion fell 17% year-over-year as the company faced difficult comparisons to a very successful 2022, as well as the impact of a slowing global economy. Adjusted earnings per share of $2.15 missed estimates by 1 cent. Total QCT revenue and Handsets revenue fell 17%, partially offset by a 20% increase in revenue from its automotive segment. Qualcomm expects quarterly revenue between $8.1 billion and $8.9 billion for the current quarter.
The company has grown EPS at a rate of 6.6% per year over the last decade. An agreement with Apple (NASDAQ:AAPL) and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years.
The components that Qualcomm produces are considered to be the best available, so phone makers will likely continue using the company’s products in future iterations of their devices. This is especially true as 5G launches continue to occur.
Qualcomm has increased its dividend for 21 consecutive years. With a dividend payout ratio under 40%, the dividend appears highly secure. Shares currently yield 2.9%.
International Business Machines (IBM)
Source: Laborant / Shutterstock.com
International Business Machines (NYSE:IBM) is a global information technology company that provides integrated enterprise solutions for software, hardware and services. IBM’s focus is running mission-critical systems for large, multi-national customers and governments. IBM typically provides end-to-end solutions. After the spinoff of Kyndryl, its managed infrastructure business, the company now has four business segments: Software, Consulting, Infrastructure and Financing. IBM had annual revenue of about $60.5 billion in 2022.
IBM reported results for Q1 2023 on April 19. Companywide revenue grew 0.4% to $14.25 million from $14.19 million. Diluted adjusted EPS fell 3% to $1.36 from $1.40 on a year-over-year basis. Diluted GAAP EPS increased to $1.02 in the quarter from 73 cents in the prior year on lower expenses and higher margins on better pricing.
Also, IBM’s revenue and earnings are being impacted by the strong U.S. dollar causing a 4% headwind. Revenue for Software increased 2.6% to $5.92 million from $5.77 million in comparable quarters due to 2% growth in Hybrid Platform & Solutions and a 3% increase in Transaction Processing. Revenue was up 8% for RedHat, down 1% for Automation, up 1% for Data & AI, and down 1% for Security. Consulting revenue increased 2.8% to $4.96 million from $4.82 million due to a 1% rise in Business Transformation, a 1% decline in Technology Consulting, and 7% growth in Application Operations.
IBM’s competitive strength is its brand, entrenched customer relations and extensive patent portfolio. IBM is also the market leader in mainframe computers, where it has 90% of the market and little competition. IBM is a different company after the Kyndryl spinoff, but it should still be recession resistant. The nature of mission-critical IT enterprise systems and software makes this unlikely to change in the near future.
IBM has increased its dividend for over 25 years, making it a Dividend Aristocrat. Shares currently yield 5.4%.
Oracle Corporation (ORCL)
Source: Jonathan Weiss / Shutterstock.com
Oracle (NYSE:ORCL) is an information technology company that provides software, hardware and services. Its offerings include applications, platforms, infrastructure technologies (cloud software), hardware products such as servers, hardware-related software products (e.g., operating systems) and services such as consultation and education.
Oracle reported its most recent quarterly results, for its fiscal third quarter, on March 9. The company announced that it generated revenues of $12.4 billion during the quarter, which represents an increase of 18% YOY. Growth was positively impacted by mergers and acquisitions (M&A), which is why Oracle grew faster than the average over the last couple of years. Oracle generated EPS of $1.22 during the third quarter, which was up 8% versus the prior year’s quarter and beat the consensus estimate slightly.
For the current fiscal year, Oracle is forecasting that it will grow its revenues meaningfully, while EPS should be up slightly this year. Oracle is not operating a cloud business as large as some of its peers, but it still is generating attractive growth in the markets it addresses. Infrastructure-as-a-Service, as well as Platform-as-a-Service, are markets that are growing at a fast pace. They should allow Oracle to maintain an attractive cloud computing growth rate going forward.
Oracle’s dividend payout ratio was extremely low a decade ago, but since then the payout ratio has risen relatively consistently. At a payout ratio of less than 30%, the dividend is very manageable, and there is still a lot of room for further dividend increases. Due to the low payout ratio and the fact that the company was not impacted to a large degree during the last financial crisis, Oracle’s dividend is rated very safe. The stock currently yields 1.7%.
On the date of publication, Bob Ciura 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.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post 3 Technology Stocks That Pay Strong Dividends 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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An agreement with Apple (NASDAQ:AAPL) and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. Diluted GAAP EPS increased to $1.02 in the quarter from 73 cents in the prior year on lower expenses and higher margins on better pricing. Due to the low payout ratio and the fact that the company was not impacted to a large degree during the last financial crisis, Oracle’s dividend is rated very safe.
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An agreement with Apple (NASDAQ:AAPL) and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. International Business Machines (IBM) Source: Laborant / Shutterstock.com International Business Machines (NYSE:IBM) is a global information technology company that provides integrated enterprise solutions for software, hardware and services. After the spinoff of Kyndryl, its managed infrastructure business, the company now has four business segments: Software, Consulting, Infrastructure and Financing.
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An agreement with Apple (NASDAQ:AAPL) and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. After all, tech stocks are generally associated with capital gains through share price appreciation, not dividends, since many tech stocks do not pay dividends. International Business Machines (IBM) Source: Laborant / Shutterstock.com International Business Machines (NYSE:IBM) is a global information technology company that provides integrated enterprise solutions for software, hardware and services.
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An agreement with Apple (NASDAQ:AAPL) and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. With a dividend payout ratio under 40%, the dividend appears highly secure. The nature of mission-critical IT enterprise systems and software makes this unlikely to change in the near future.
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2023-05-12 00:00:00 UTC
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Investors Look to Invesco’s Equal-Weight Tech ETF After Strong Earnings
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https://www.nasdaq.com/articles/investors-look-to-invescos-equal-weight-tech-etf-after-strong-earnings
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Invesco’s equal-weight tech ETF is seeing a notable jump in interest following first quarter earnings.
The Invesco S&P 500 Equal Weight Technology ETF (RYT) saw over $319 million in net flows on May 10, following better-than-expected first quarter earnings reports from companies in the information technology sector.
“A strong earnings season for information technology companies has encouraged investors to take a more diversified approach to the sector,” Todd Rosenbluth, head of research at VettaFi, said.
Under the Hood of Invesco’s Equal-Weight Tech ETF
RYT’s underlying index gives component companies equal allocations at each quarterly rebalance. This results in exposure that is considerably more balanced than other alternatives. An equal-weight approach is particularly impactful in the top-heavy tech sector, which is dominated by just a handful of names.
In a cap-weighted tech sector ETF, just two names -- Microsoft Corporation (MSFT) and Apple Inc (AAPL) -- comprise nearly 50% of the total fund by weight. Just two names largely drive performance despite the fund holding 64 securities in total.
See more: "Invesco’s Nick Kalivas on the Early Days of RSP and Smart Beta”
RYT has climbed 6.5% year-to-date as of May 11 and has rallied 6.6% over a one-year period. The recent top-performing holdings in RYT include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). Tyler Technologies is given a higher weight in RYT compared to a cap-weighted fund, which gives the security a 0.2% weight.
In the upcoming webcast on May 15, "How can an equal weight approach lead to potential outperformance?" Invesco and VettaFi will discuss the potential benefits of using an equal-weight approach in today’s market environment with concentration risk near all-time highs.
For more news, information, and analysis, visit the Portfolio Strategies 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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In a cap-weighted tech sector ETF, just two names -- Microsoft Corporation (MSFT) and Apple Inc (AAPL) -- comprise nearly 50% of the total fund by weight. The recent top-performing holdings in RYT include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). “A strong earnings season for information technology companies has encouraged investors to take a more diversified approach to the sector,” Todd Rosenbluth, head of research at VettaFi, said.
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In a cap-weighted tech sector ETF, just two names -- Microsoft Corporation (MSFT) and Apple Inc (AAPL) -- comprise nearly 50% of the total fund by weight. The recent top-performing holdings in RYT include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). The Invesco S&P 500 Equal Weight Technology ETF (RYT) saw over $319 million in net flows on May 10, following better-than-expected first quarter earnings reports from companies in the information technology sector.
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In a cap-weighted tech sector ETF, just two names -- Microsoft Corporation (MSFT) and Apple Inc (AAPL) -- comprise nearly 50% of the total fund by weight. The recent top-performing holdings in RYT include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). The Invesco S&P 500 Equal Weight Technology ETF (RYT) saw over $319 million in net flows on May 10, following better-than-expected first quarter earnings reports from companies in the information technology sector.
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In a cap-weighted tech sector ETF, just two names -- Microsoft Corporation (MSFT) and Apple Inc (AAPL) -- comprise nearly 50% of the total fund by weight. The recent top-performing holdings in RYT include Tyler Technologies Inc. (TYL), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and Apple Inc. (AAPL). The Invesco S&P 500 Equal Weight Technology ETF (RYT) saw over $319 million in net flows on May 10, following better-than-expected first quarter earnings reports from companies in the information technology sector.
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2023-05-12 00:00:00 UTC
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Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-6
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
The fund is sponsored by Bny Mellon. It has amassed assets over $1.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
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 29.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 32.46% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has added roughly 10.05% so far this year and is up about 7.72% in the last one year (as of 05/12/2023). In the past 52-week period, it has traded between $65.88 and $79.65.
The ETF has a beta of 1.03 and standard deviation of 19.40% for the trailing three-year period. With about 215 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity 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, BKLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.03 billion in assets, SPDR S&P 500 ETF has $380.02 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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5 Top-Ranked ETFs to Tap the Red-Hot Technology Sector
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https://www.nasdaq.com/articles/5-top-ranked-etfs-to-tap-the-red-hot-technology-sector
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The technology sector has once again become an investors’ darling. The combination of easing inflation, upbeat corporate earnings, the regional bank crisis and the adoption of new-era technologies are driving the sector higher.
As a result, investors bullish on the sector may consider tech stocks in a basket form. While there are many options available in the space, we have highlighted five ETFs that are popular and offer broad exposure across different industries in the sector. These include Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, iShares U.S. Technology ETF IYW, MSCI Information Technology Index ETF FTEC and iShares Expanded Tech Sector ETF IGM. These funds have a Zacks ETF Rank #2 (Buy), suggesting their continued outperformance.
Easing Inflation
Inflation in the United States slowed down for the tenth consecutive month in April. The consumer price index rose 4.9% in April, down from a 5% rise in March and a 40-year high of 9.1% last June. This is the smallest yearly increase since April 2021. On a monthly basis, prices rose 0.4% following a 0.1% increase in March. The data strengthened optimism about a Fed pause on rate hikes next month. Fed funds futures traders are now pricing in an 86% chance that the Fed will leave rates unchanged in its June meeting and 14% odds of another 25-bps hike.
A pause in interest rate increases is a positive sign 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.
Upbeat Earnings
Part of the appeal 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 83.9% of the sector’s market cap are down 13.2% on 3.4% lower revenues, with 81.7% beating EPS estimates and 83.3% 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.
Regional Bank Crisis
The sector was also 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.
Other Factors
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:
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: Inflation Drops Below 5% Since 2022: ETFs Set to Gain).
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $43 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 $46 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 511,000 shares.
iShares U.S. Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. 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 $10.6 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 644,000 shares a day.
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 219,000 shares a day.
iShares Expanded Tech Sector ETF (IGM)
iShares Expanded Tech Sector ETF offers broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors. It tracks the S&P North American Expanded Technology Sector Index, holding 327 stocks in its basket. From a sector look, semiconductors, interactive media & services, and systems software make up for double-digit exposure each.
iShares Expanded Tech Sector ETF has AUM of $2.8 billion and charges 40 bps in annual fees. It trades in a moderate volume of nearly 23,000 shares a day on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
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
iShares Expanded Tech Sector ETF (IGM): 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 iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. 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.
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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 iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, iShares U.S. Technology ETF IYW, MSCI Information Technology Index ETF FTEC and iShares Expanded Tech Sector ETF IGM.
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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 iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, iShares U.S. Technology ETF IYW, MSCI Information Technology Index ETF FTEC and iShares Expanded Tech Sector ETF IGM.
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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 iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The combination of easing inflation, upbeat corporate earnings, the regional bank crisis and the adoption of new-era technologies are driving the sector higher.
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15871.0
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2023-05-12 00:00:00 UTC
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Apple to open first online shop in Vietnam in a push to emerging market
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AAPL
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https://www.nasdaq.com/articles/apple-to-open-first-online-shop-in-vietnam-in-a-push-to-emerging-market
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nan
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May 12 (Reuters) - Apple AAPL.O said on Friday it would open its first online store in Vietnam next week, as the iPhone vendor doubles down on emerging markets to drive growth amid slowing sales in China.
The opening on May 18 comes just weeks after the Cupertino, California-based company opened its first Apple stores in India - Mumbai and Delhi.
Apple CEO Tim Cook is betting that emerging markets will provide more opportunities for growth, with younger populations and relatively few iPhones.
Apple did not say when it plans to open physical stores in Vietnam, which has a population of 100 million people.
"We're proud to be expanding in Vietnam," said Deirdre O'Brien, Apple's senior vice president of retail.
Online stores often precede the opening of retail stores. Apple already sells products in Vietnam via licensed vendors and has multiple suppliers that assemble its gadgets in the country for export.
Apple first launched an online store in India in 2020.
(Reporting by Francesco Guarascio. Editing by Gerry Doyle)
((Francesco.Guarascio@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 12 (Reuters) - Apple AAPL.O said on Friday it would open its first online store in Vietnam next week, as the iPhone vendor doubles down on emerging markets to drive growth amid slowing sales in China. Apple CEO Tim Cook is betting that emerging markets will provide more opportunities for growth, with younger populations and relatively few iPhones. Apple already sells products in Vietnam via licensed vendors and has multiple suppliers that assemble its gadgets in the country for export.
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May 12 (Reuters) - Apple AAPL.O said on Friday it would open its first online store in Vietnam next week, as the iPhone vendor doubles down on emerging markets to drive growth amid slowing sales in China. The opening on May 18 comes just weeks after the Cupertino, California-based company opened its first Apple stores in India - Mumbai and Delhi. Online stores often precede the opening of retail stores.
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May 12 (Reuters) - Apple AAPL.O said on Friday it would open its first online store in Vietnam next week, as the iPhone vendor doubles down on emerging markets to drive growth amid slowing sales in China. The opening on May 18 comes just weeks after the Cupertino, California-based company opened its first Apple stores in India - Mumbai and Delhi. Apple did not say when it plans to open physical stores in Vietnam, which has a population of 100 million people.
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May 12 (Reuters) - Apple AAPL.O said on Friday it would open its first online store in Vietnam next week, as the iPhone vendor doubles down on emerging markets to drive growth amid slowing sales in China. The opening on May 18 comes just weeks after the Cupertino, California-based company opened its first Apple stores in India - Mumbai and Delhi. Online stores often precede the opening of retail stores.
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15872.0
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2023-05-12 00:00:00 UTC
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Warren Buffett's Latest $4.4 Billion Buy Brings His Total Investment in This Stock to $70 Billion in Under 5 Years
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-latest-%244.4-billion-buy-brings-his-total-investment-in-this-stock-to-%2470
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nan
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nan
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As we saw this past weekend, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows how to captivate an audience. Over the past 50 years, Berkshire's annual shareholder meetings have grown from a couple dozen people to an event that regularly draws in excess of 30,000 investing enthusiasts and shareholders.
The reason investors flock to Omaha, Nebraska is to hear the Oracle of Omaha discuss everything from his investment philosophy to the state of the U.S. economy and stock market. Since taking the reins at Berkshire in the mid-1960s, Buffett has led his company's Class A shares (BRK.A) to a total return of 3,974,186% as of the closing bell on May 5, 2023.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Riding Warren Buffett's coattails has been a profitable venture for patient investors for nearly six decades, and it's made all the easier due to required quarterly filings by Berkshire Hathaway.
Berkshire Hathaway's 13Fs are invaluable to long-term investors
No later than 45 days after the end of a quarter, money managers with at least $100 million in assets under management (AUM) are required to file Form 13F with the Securities and Exchange Commission (SEC). A 13F provides a snapshot of what the brightest minds on Wall Street bought and sold in the most recent quarter, as well as what stocks, exchange-traded funds (ETFs), and options positions they continue to hold. For decades, Berkshire Hathaway's 13Fs have been telling.
What's plainly evident from Berkshire's required quarterly filings is that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, absolutely love tech stock Apple (NASDAQ: AAPL). Known as one of Berkshire's "four giants," Apple accounts for approximately 45% of the company's invested assets.
Apple is a business that checks all the appropriate boxes for Warren Buffett and his team. It has exceptional branding power, a very loyal customer base, and a management team that can be trusted. CEO Tim Cook allows his company's innovations to do the talking, with iPhone commanding about half of all U.S. smartphone market share and Apple's services segment continuing to grow into a larger percentage of total sales.
Apple is an absolute beast in the capital-return department, too. Following its recent dividend increase, it's on track to dole out roughly $15.2 billion in dividend income over the next 12 months. What's more, Apple has repurchased $586 billion worth of its common stock since the start of 2013.
Berkshire Hathaway's 13Fs also show that Warren Buffett and his investing lieutenants have aggressively added to energy stocks. Chevron (NYSE: CVX), which was first purchased in the fourth quarter of 2020, and Occidental Petroleum (NYSE: OXY), which was initially purchased in the first quarter of 2022, have quickly become core holdings.
As of the end of 2022, energy was the third-largest sector by weighting in Berkshire Hathaway's investment portfolio. This is a pretty clear indication that Buffett, Combs, and/or Weschler anticipate the spot price for crude oil will remain above its historic average. Though Chevron and Occidental are both integrated operators, they generate their most lucrative margins from drilling.
Furthermore, higher energy-commodity prices are helping Chevron and Occidental clean up their balance sheets and reward their shareholders. Chevron and Occidental have increased their respective quarterly dividends and announced share-repurchase programs.
Image source: Getty Images.
The Oracle of Omaha has spent over $70 billion buying one stock (and you won't find it in Berkshire's 13Fs)
But you might be shocked to learn that Berkshire Hathaway's 13Fs fail to tell the complete story of where Buffett and his team are deploying their company's cash. To get that full story, investors will also need to dive into Berkshire's quarterly operating results.
Despite owning sizable stakes in companies like Apple, Chevron, Occidental Petroleum, and Bank of America, none of these holdings comes close to the amount of cash Warren Buffett and Executive Vice Chairman Charlie Munger have spent buying back shares of Berkshire Hathaway stock since mid-July 2018.
Prior to July 17, 2018, the only way Buffett and Munger could proceed with share repurchases was if Berkshire Hathaway's stock traded at or below 120% of book value (i.e., no more than 20% above book value). For years leading up to this mid-July 2018 date, Berkshire stock never fell to or below this line-in-the-sand valuation level, which meant no buybacks were undertaken.
On July 17, 2018, Berkshire Hathaway's board passed new rules governing share repurchases that gave Buffett and Munger more freedom to work their magic. The new rules for buybacks had two simple criteria: As long as Berkshire Hathaway had at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet; and both Buffett and Munger agree shares are trading below their intrinsic value, repurchases can be undertaken without any ceiling.
During the first quarter of 2023, Buffett and Munger gave the green light to repurchase 5,103 Class A shares and 6,716,864 Class B shares (BRK.B). The cost to buy back these shares came to $4,439,586,013! This latest $4.4 billion buy brings the total amount of repurchases since July 17, 2018 to more than $70 billion. For context, that's more than Berkshire's cost basis for Apple, Chevron, and Occidental Petroleum combined!
Since Berkshire Hathaway doesn't pay a dividend, rewarding stakeholders via buybacks serves a number of purposes. Perhaps the most obvious is that it reduces the number of shares outstanding, which for businesses with steady or growing net income should provide a lift to earnings per share. In other words, buybacks are making Berkshire Hathaway stock even more attractive to fundamentally focused investors.
Another benefit to Berkshire Hathaway's aggressive buyback activity is that it's increasing the ownership stakes of existing shareholders. If the outstanding share count falls, each remaining share becomes that much more valuable. For instance, Apple's incredible repurchase program has increased Berkshire Hathaway's ownership stake in the company without Buffett or his team having to lift a finger.
The third purpose served by Warren Buffett and Charlie Munger overseeing more than $70 billion in share repurchases in under five years is to drive home the idea that Berkshire's dynamic duo strongly believe in the company over the long term. Most of the companies Berkshire Hathaway invests in or acquires are cyclical, which means they'll ebb and flow with the U.S. economy. But with periods of expansion lasting substantially longer than recessions, Buffett and his team have set Berkshire up for decades of future success.
Without question, there's no stock Warren Buffett loves purchasing more than his own company.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway 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 has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What's plainly evident from Berkshire's required quarterly filings is that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, absolutely love tech stock Apple (NASDAQ: AAPL). CEO Tim Cook allows his company's innovations to do the talking, with iPhone commanding about half of all U.S. smartphone market share and Apple's services segment continuing to grow into a larger percentage of total sales. Despite owning sizable stakes in companies like Apple, Chevron, Occidental Petroleum, and Bank of America, none of these holdings comes close to the amount of cash Warren Buffett and Executive Vice Chairman Charlie Munger have spent buying back shares of Berkshire Hathaway stock since mid-July 2018.
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What's plainly evident from Berkshire's required quarterly filings is that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, absolutely love tech stock Apple (NASDAQ: AAPL). As we saw this past weekend, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows how to captivate an audience. Despite owning sizable stakes in companies like Apple, Chevron, Occidental Petroleum, and Bank of America, none of these holdings comes close to the amount of cash Warren Buffett and Executive Vice Chairman Charlie Munger have spent buying back shares of Berkshire Hathaway stock since mid-July 2018.
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What's plainly evident from Berkshire's required quarterly filings is that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, absolutely love tech stock Apple (NASDAQ: AAPL). The Oracle of Omaha has spent over $70 billion buying one stock (and you won't find it in Berkshire's 13Fs) But you might be shocked to learn that Berkshire Hathaway's 13Fs fail to tell the complete story of where Buffett and his team are deploying their company's cash. Despite owning sizable stakes in companies like Apple, Chevron, Occidental Petroleum, and Bank of America, none of these holdings comes close to the amount of cash Warren Buffett and Executive Vice Chairman Charlie Munger have spent buying back shares of Berkshire Hathaway stock since mid-July 2018.
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What's plainly evident from Berkshire's required quarterly filings is that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, absolutely love tech stock Apple (NASDAQ: AAPL). Despite owning sizable stakes in companies like Apple, Chevron, Occidental Petroleum, and Bank of America, none of these holdings comes close to the amount of cash Warren Buffett and Executive Vice Chairman Charlie Munger have spent buying back shares of Berkshire Hathaway stock since mid-July 2018. This latest $4.4 billion buy brings the total amount of repurchases since July 17, 2018 to more than $70 billion.
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15873.0
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2023-05-12 00:00:00 UTC
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Why It’s Buyer Beware When It Comes to Nvidia (NVDA) Stock
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AAPL
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https://www.nasdaq.com/articles/why-its-buyer-beware-when-it-comes-to-nvidia-nvda-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze. At some point it ends in tears for someone, even if the underlying trend is in their favor.
There’s no doubt that Nvidia today is priced as a bubble stock. Any stock trading at 162 times current earnings and 26 times sales is overpriced. In October, Nvidia was trading below $120. On May 11 it was at $285. That’s not the move of an investment. That’s the move of a speculation.
Nvidia is next due to report its earnings on May 24. Last quarter it delivered 65 cents per share of net income, 35% more than expected. The April quarter is expected to deliver 61 cents per share on $6 billion in revenue. Nvidia can beat those expectations.
But even if Nvidia meets expectations for all of its fiscal 2024, today’s buyers are paying 84 times those earnings and 23 times those sales. Strange that there are analysts right now recommending you buy NVDA stock today.
Have they learned nothing?
NVDA Stock: Investors Misunderstand the AI Boom
Artificial intelligence has been around for years. What’s new is seeing output in forms people are familiar with like stories, art, music or reams of computer code.
The boom in this “generative AI” is real. But there’s more going on under the surface in the Machine Internet. Making cities, hospitals and factories more fully automated is where the biggest productivity gains will come over the next few years.
Along the way some jobs will disappear. Number-crunching middle managers will be replaced by software. But storytelling won’t be replaced by bots. Companies pushing what Evgeny Morozov calls “solutionism” are likely to fail.
Once analysts recognize that, expect NVDA stock to take a hit. It’s that hit that will be your opportunity.
Focus on the Software Instead of Hardware Hype
Nvidia today is the leading arms merchant for the cloud. It is on the cutting edge of technologies, like inverse lithography, that speed the AI revolution along. Many of these are algorithmic changes, software executed on-chip that can scale beyond the imagination of Moore’s Law. Software is Nvidia’s moat, not hardware.
Nvidia’s software will come to market through alliances with cloud providers. It’s a new era where clouds aren’t just buying the cheapest chips, but a combination of hardware and software.
I have long said Nvidia is a software company. It doesn’t manufacture its chip designs. Taiwan Semiconductor (NYSE:TSM) and, by mid-decade, Intel (NASDSAQ:INTC), will do that, limiting Nvidia’s growth based on their capacity. There will also be competition from Advanced Micro Devices (NASDAQ:AMD), from Intel, and Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), all now designing their own silicon.
There just isn’t anyone selling Nvidia stock right now, except speculators betting on short-term moves. Nvidia’s moves into AI services only increase the buying pressure.
The Bottom Line
Nvidia is a great long-term investment, but it’s a bad trade.
A long-term investor should always have a list of stocks they want to buy on weakness. Nvidia deserves to be on that list. When the market is soft, accept some losses, raise cash, and get into something better. Over the long term, Nvidia fits my definition of better. But the price is no one’s definition of weak today. If you bought Nvidia at the peak of the last tech bubble, in November 2021, you’re still showing a loss.
You had your opportunity last fall. If you took it, congratulations. If you didn’t, don’t buy into the overpriced hype and buy shares today.
Remember: Buy low, sell high.
On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, AMZN 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 Why It’s Buyer Beware When It Comes to Nvidia (NVDA) Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, AMZN and NVDA. There will also be competition from Advanced Micro Devices (NASDAQ:AMD), from Intel, and Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), all now designing their own silicon. Taiwan Semiconductor (NYSE:TSM) and, by mid-decade, Intel (NASDSAQ:INTC), will do that, limiting Nvidia’s growth based on their capacity.
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There will also be competition from Advanced Micro Devices (NASDAQ:AMD), from Intel, and Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), all now designing their own silicon. On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, AMZN and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze.
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There will also be competition from Advanced Micro Devices (NASDAQ:AMD), from Intel, and Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), all now designing their own silicon. On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, AMZN and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze.
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There will also be competition from Advanced Micro Devices (NASDAQ:AMD), from Intel, and Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), all now designing their own silicon. On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, AMZN and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze.
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15874.0
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2023-05-12 00:00:00 UTC
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3 Things You Shouldn't Do if the Stock Market Crashes
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AAPL
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https://www.nasdaq.com/articles/3-things-you-shouldnt-do-if-the-stock-market-crashes-7
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nan
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nan
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The stock market has experienced a sharp decline, or even crashes, several times over the years. No two plunges are alike, and the causes are diverse -- including computerized trading in 1987, the 9/11 attacks in 2001, the global financial crisis in 2008, and the COVID-19 pandemic in 2020. Often, these events are what investors call black swans, meaning they are nearly impossible to anticipate.
Other market shocks are easier to predict. For instance, the current debt ceiling crisis has thrust the possibility of a crash back into the headlines. If the president and Congress cannot reach an agreement, the U.S. could conceivably default on its obligations, and the stock market could plummet. Most agree that a deal will be made because the stakes are so high; however, it could come down to the wire, and investors should be prepared.
So what are the dos and don'ts for investors during a plunge?
1. Don't Panic!
This seems obvious, but it's human nature. We want to take immediate action when threatened. But this is usually a bad idea for investors. The stock market experienced two record-setting down days during March 2020, and things looked dire. Popular and highly successful companies such as Amazon, Microsoft, Apple, and Intuitive Surgical were in free fall, as shown below.
Data source: YCharts AMZN
Panic selling was a poor move as each stock was up less than four months later.
Data source: YCharts AMZN
Keeping a level head when the market turns south is probably the most essential quality of a successful investor. It's often best to just turn off the computer and go for a long walk during these crisis days. As Warren Buffett says, "The most important quality for an investor is temperament, not intellect."
2. Don't lose sight of long-term goals
While busy not panicking, take some time to reaffirm your focus on long-term goals. Wealth creation is a marathon, not a sprint. On Oct. 19, 1987, the stock market plummeted more than 20% in an event dubbed Black Monday. One reason for the crash was automated trading, which was fairly new. A series of news items increased sell orders, the situation snowballed, and many sold in a panic (see rule No. 1).
Companies' fundamentals and long-term investment cases hadn't changed, and the market fully recovered two years later. In one example, Walmart fell 28% during October 1987. But it was still an excellent company and has returned more than 4,700% since.
In fact, looking at the stock market on a long-term timeline makes this "crash" look like a non-event. See if you can spot it on the left side of this chart:
Data source: YCharts ^SPX
The market looks a lot different when viewed through the lens of long-term investment goals. Owning terrific companies for the long haul is a money-making strategy.
3. Don't stop investing
It's tempting to avoid buying stocks altogether when things look uncertain. Who wants to take the risk? Some try to wait until the economic turmoil clears up before diving back in. The problem is that this market-timing strategy is ineffective, as study after study shows. It's just too difficult to accurately and consistently predict ups and downs. Some of the market's best days often come when least expected (and during a bear market), and being out of the market and missing them can decimate long-term returns.
It's also critical to keep investing to take advantage of low stock prices. A strategy such as dollar-cost averaging (buying shares of a company consistently over time) is one way to do this. If you are putting a monthly amount into a 401(k) or similar investment account, this is already a terrific setup. By continuing to invest, we can keep our portfolios intact, continue collecting dividends, not worry about market timing, and benefit from price declines in the long run by buying when stocks are on sale.
Stock market crashes aren't much fun, but they will happen from time to time. The best path to success is keeping a level head, maintaining a long-haul strategy, and continuing to invest. Your future self will thank you.
10 stocks we like better than Walmart
When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of May 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bradley Guichard has positions in Amazon.com, Apple, Intuitive Surgical, and Microsoft. The Motley Fool has positions in and recommends Amazon.com, Apple, Intuitive Surgical, Microsoft, 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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Popular and highly successful companies such as Amazon, Microsoft, Apple, and Intuitive Surgical were in free fall, as shown below. Data source: YCharts AMZN Keeping a level head when the market turns south is probably the most essential quality of a successful investor. See if you can spot it on the left side of this chart: Data source: YCharts ^SPX The market looks a lot different when viewed through the lens of long-term investment goals.
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Popular and highly successful companies such as Amazon, Microsoft, Apple, and Intuitive Surgical were in free fall, as shown below. Data source: YCharts AMZN Panic selling was a poor move as each stock was up less than four months later. Data source: YCharts AMZN Keeping a level head when the market turns south is probably the most essential quality of a successful investor.
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Some of the market's best days often come when least expected (and during a bear market), and being out of the market and missing them can decimate long-term returns. By continuing to invest, we can keep our portfolios intact, continue collecting dividends, not worry about market timing, and benefit from price declines in the long run by buying when stocks are on sale. 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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Some of the market's best days often come when least expected (and during a bear market), and being out of the market and missing them can decimate long-term returns. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Intuitive Surgical, Microsoft, and Walmart.
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15875.0
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2023-05-12 00:00:00 UTC
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Surrounding Crypto ETFs: Metaverse, Web3, and More
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AAPL
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https://www.nasdaq.com/articles/surrounding-crypto-etfs%3A-metaverse-web3-and-more
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nan
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nan
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Last week, I discussed some of the different types of crypto and bitcoin ETFs. The distinction between futures-based ETFs and crypto equity ETFs is clear when you look closely at the two. But even when examining them closely, it may be difficult to distinguish between the different types of blockchain/crypto equity ETFs because of similarities with fintech, metaverse, and Web3 concepts. This note serves as a continuation of last week’s note and looks more closely at the differences between blockchain ETFs, metaverse ETFs, Web3 ETFs, and more.
Blockchain: The Future of Tech and Finance
If you’re already a crypto fan — you should be familiar with the term blockchain. Blockchain is a type of technology where transaction data is stored on a distributed (peer-to-peer) shared ledger. The Bitcoin blockchain is the most well-known blockchain; however, use cases extend beyond digital assets into supply chain and other financial transactions.
Blockchain ETFs are a type of industry ETF or thematic ETF — these typically have high correlation with Bitcoin prices but also play on themes of the crypto economy, digital transformation, or the future of finance.
Generally, these ETFs hold the typical crypto-related equities including Coinbase (COIN), Microstrategy (MSTR), and the crypto miners. Some of these are more specific — for example, the Valkyrie Bitcoin Miners ETF (WGMI) is the only remaining crypto mining ETF after the closures of RIGZ and DAM earlier in 2023. These ETFs may also focus more specifically on the digital economy and fintech like the Grayscale Future of Finance ETF (GFOF) which contains holdings like Robinhood Markets (HOOD) and PayPal Holdings (PYPL). See last week’s note for more details.
Where is the metaverse?
I covered the metaverse briefly in a note last year. While this is a concept that had been around for many years (video games, avatars, social media), the idea became more popular during the pandemic when people had no choice except to interact with each other online. During this time, Roblox Corp (RBLX) grew in popularity and had its IPO on March 10, 2021.
The first true metaverse ETF, the Roundhill Ball Metaverse ETF (METV), was created in June 2021. This is currently the largest metaverse ETF with $439 million in assets. Then in October 2021, Facebook also changed its name to Meta Platforms and emphasized a push for investment into its metaverse and virtual reality platforms — further supporting the idea of the metaverse. Several other metaverse ETFs launched since then including the Fount Metaverse ETF (MTVR) in October 2021, the Proshares Metaverse ETF (VERS) in March 2022, and the First Trust Indxx Metaverse ETF (ARVR), the Fidelity Metaverse ETF (FMET), and the Global X Metaverse ETF (VR) all in April 2022.
Are Crypto And The Metaverse The Same?
Cryptocurrency is loosely related to the metaverse. However, crypto companies are not typically considered part of the metaverse ecosystem and companies like Coinbase, Silvergate, and the crypto miners are not found in metaverse ETFs. Instead, these ETFs hold mostly information technology and communications services stocks like Nvidia Corp (NVDA), Apple Inc (AAPL), RBLX, Meta Platforms (META), Microsoft Corp (MSFT), Adobe Inc (ADBE), and Alphabet Inc (GOOGL).
Along with the metaverse, NFTs also became popular during the peak of the crypto cycle, although there were very few public companies that dealt with NFTs. On December 2, 2021, the Defiance Digital Revolution ETF (NFTZ) launched. This was the first ETF that targeted exposure to NFTs; however, holdings looked very similar to other blockchain ETFs. At its launch it held only a few differentiated companies like PLBY Group (PLBY) and Funko Inc (FNKO). This ETF closed on March 30, 2023 (around the same time as the RIGZ, BTCR, and DAM closures).
What is Web3?
The early days of the internet were considered “Web 1.0” and focused on “read-only” functionality. Web 2.0 evolved into “read and write” with more interactive and social networking apps like Facebook, Google, and Youtube.
Web3 focuses on “reading, write, and own,” and includes content ownership and user creation. Many people use this term interchangeably with the metaverse, but Web3 is a broader term that encompasses the metaverse, blockchain, NFTs, big data, and artificial intelligence.
There are only a couple of ETFs which use Web3 in their name: the SoFi Web 3 ETF (TWEB) and the Bitwise Web3 ETF (BWEB) which launched in August and October 2022, respectively. These ETFs tend to look like a combination of a metaverse ETF and a blockchain ETF. This includes holdings like Riot Platforms (RIOT), NVDA, META, Draftkings (DKNG), Coinbase (COIN), and Shopify (SHOP).
Although TWEB has only $1.2 million assets and BWEB has only $0.7 million in assets, these ETFs have been outperforming broader communication services and technology sector ETFs due to their mix of mega-cap internet/tech stocks and crypto stocks.
Bottom Line
Investors interested in thematic digital transformation equity ETFs have several different options that are very similar but may appeal to different investors. For those that want to invest in crypto-related companies with a high correlation to the price of Bitcoin, blockchain/crypto economy ETFs are the most appropriate. These can serve as a complement to an existing technology sector or financial sector allocation. Those that want to invest in the future of the internet from the perspective of gaming, social media, and virtual reality may prefer an allocation to metaverse ETFs.
Those investors wanting a broader approach to the future digital economy including blockchain, metaverse, and more may consider a Web3 ETF. It is important to note that while Web3 ETFs have been outperforming peers YTD, these ETFs are newer and have significantly less assets.
For more news, information, and analysis, visit the Crypto 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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Instead, these ETFs hold mostly information technology and communications services stocks like Nvidia Corp (NVDA), Apple Inc (AAPL), RBLX, Meta Platforms (META), Microsoft Corp (MSFT), Adobe Inc (ADBE), and Alphabet Inc (GOOGL). Generally, these ETFs hold the typical crypto-related equities including Coinbase (COIN), Microstrategy (MSTR), and the crypto miners. While this is a concept that had been around for many years (video games, avatars, social media), the idea became more popular during the pandemic when people had no choice except to interact with each other online.
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Instead, these ETFs hold mostly information technology and communications services stocks like Nvidia Corp (NVDA), Apple Inc (AAPL), RBLX, Meta Platforms (META), Microsoft Corp (MSFT), Adobe Inc (ADBE), and Alphabet Inc (GOOGL). Generally, these ETFs hold the typical crypto-related equities including Coinbase (COIN), Microstrategy (MSTR), and the crypto miners. Although TWEB has only $1.2 million assets and BWEB has only $0.7 million in assets, these ETFs have been outperforming broader communication services and technology sector ETFs due to their mix of mega-cap internet/tech stocks and crypto stocks.
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Instead, these ETFs hold mostly information technology and communications services stocks like Nvidia Corp (NVDA), Apple Inc (AAPL), RBLX, Meta Platforms (META), Microsoft Corp (MSFT), Adobe Inc (ADBE), and Alphabet Inc (GOOGL). This note serves as a continuation of last week’s note and looks more closely at the differences between blockchain ETFs, metaverse ETFs, Web3 ETFs, and more. Several other metaverse ETFs launched since then including the Fount Metaverse ETF (MTVR) in October 2021, the Proshares Metaverse ETF (VERS) in March 2022, and the First Trust Indxx Metaverse ETF (ARVR), the Fidelity Metaverse ETF (FMET), and the Global X Metaverse ETF (VR) all in April 2022.
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Instead, these ETFs hold mostly information technology and communications services stocks like Nvidia Corp (NVDA), Apple Inc (AAPL), RBLX, Meta Platforms (META), Microsoft Corp (MSFT), Adobe Inc (ADBE), and Alphabet Inc (GOOGL). This note serves as a continuation of last week’s note and looks more closely at the differences between blockchain ETFs, metaverse ETFs, Web3 ETFs, and more. Where is the metaverse?
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15876.0
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2023-05-12 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-34
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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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15877.0
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2023-05-11 00:00:00 UTC
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TMF, SPXN: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/tmf-spxn%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 12,750,000 units, or a 7.0% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares S&P 500 Ex-Financials ETF, which added 80,000 units, for a 37.2% increase in outstanding units. Among the largest underlying components of SPXN, in morning trading today Apple is down about 0.5%, and Microsoft is lower by about 1%.
VIDEO: TMF, SPXN: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares S&P 500 Ex-Financials ETF, which added 80,000 units, for a 37.2% increase in outstanding units. Among the largest underlying components of SPXN, in morning trading today Apple is down about 0.5%, and Microsoft is lower by about 1%. VIDEO: TMF, SPXN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 12,750,000 units, or a 7.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares S&P 500 Ex-Financials ETF, which added 80,000 units, for a 37.2% increase in outstanding units. VIDEO: TMF, SPXN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 12,750,000 units, or a 7.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares S&P 500 Ex-Financials ETF, which added 80,000 units, for a 37.2% increase in outstanding units. VIDEO: TMF, SPXN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 12,750,000 units, or a 7.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares S&P 500 Ex-Financials ETF, which added 80,000 units, for a 37.2% increase in outstanding units. Among the largest underlying components of SPXN, in morning trading today Apple is down about 0.5%, and Microsoft is lower by about 1%.
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15878.0
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2023-05-11 00:00:00 UTC
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Apple supplier Foxconn's Q1 profit slumps 56% y/y, lags forecasts
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconns-q1-profit-slumps-56-y-y-lags-forecasts
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nan
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nan
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Adds details
TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics.
The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year.
It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.
Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter. That group includes smartphones and makes up more than half of Foxconn's total revenue.
It expects revenues for cloud and networking products in 2023 to be flat, compared to a previous forecast of significant growth for those sectors.
Overall, revenues for the second quarter would fall, while full-year revenues would be flat, the Taiwanese company said. Foxconn earlier this year forecast revenue to be flat for 2023.
($1 = 30.6830 Taiwan dollars)
(Reporting by Yimou Lee; Editing by Jacqueline Wong and Sonali Paul)
((ben.blanchard@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics. That group includes smartphones and makes up more than half of Foxconn's total revenue. It expects revenues for cloud and networking products in 2023 to be flat, compared to a previous forecast of significant growth for those sectors.
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Adds details TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics. Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter. Overall, revenues for the second quarter would fall, while full-year revenues would be flat, the Taiwanese company said.
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Adds details TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter.
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Adds details TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter.
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15879.0
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2023-05-11 00:00:00 UTC
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Get Exposure to NVIDIA Stock Price, Options Income in New YieldMax ETF
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AAPL
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https://www.nasdaq.com/articles/get-exposure-to-nvidia-stock-price-options-income-in-new-yieldmax-etf
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nan
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nan
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YieldMax announced the launch of the YieldMax NVDA Option Income Strategy ETF (NYSE Arca: NVDY). The actively managed fund seeks to generate monthly income via a synthetic covered call strategy on NVIDIA (NVDA) stock. The fund, which ZEGA Financial actively manages, does not invest directly in NVDA.
As part of its strategy, NVDY will write (sell) call option contracts on NVDA to generate income. Since the fund does not directly own NVDA, these written call options will be sold short.
The call options that NVDY writes will generally have an expiration of one month or less. They’ll have a strike price that is around 5% to 15% above the then-current NVDA share price at the time of such sales.
To achieve a synthetic long exposure to NVDA, the fund will simultaneously buy call options and sell put options on the fund. This will attempt to replicate the stock price movements.
The call options NVDY purchases and the put options it sells will generally have six-month to one-year terms. They’ll also have strike prices that are roughly equal to the then-current share price when the contracts are purchased and sold, respectively.
The combination of the long call options and sold put options provides the ETF with investment exposure equal to approximately 100% of NVDA for the duration of the applicable options exposure.
“We are seeing growing demand for covered call ETF strategies in 2023 as advisors seek equity income in a risk-controlled manner,” said VettaFi’s head of research Todd Rosenbluth.
See more: “New Active Funds Offer Income and Exposure to Price of TSLA, ARKK”
A Growing Suite of YieldMax ETFs
The launch of NVDY follows the recent listing of the YieldMax AAPL Option Income Strategy ETF (APLY). APLY has a similar strategy to NVDY whereby it seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. And just as NVDY doesn’t invest directly in NVDA, APLY doesn’t invest directly in AAPL.
NVDY joins the suite of YieldMax ETFs. Funds include APLY, the YieldMax TSLA Option Income Strategy ETF (TSLY), and the YieldMax Innovation Option Income Strategy ETF (OARK). All YieldMax ETFs have an expense ratio of 0.99%.
“Given the market volatility expected in 2023, these new ETFs could gain some traction,” Rosenbluth added.
Toroso Investments is the adviser for all YieldMax ETFs. ZEGA Financial is their subadviser.
For more news, information, and analysis, visit VettaFi | ETF Trends.
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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APLY has a similar strategy to NVDY whereby it seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. See more: “New Active Funds Offer Income and Exposure to Price of TSLA, ARKK” A Growing Suite of YieldMax ETFs The launch of NVDY follows the recent listing of the YieldMax AAPL Option Income Strategy ETF (APLY). And just as NVDY doesn’t invest directly in NVDA, APLY doesn’t invest directly in AAPL.
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See more: “New Active Funds Offer Income and Exposure to Price of TSLA, ARKK” A Growing Suite of YieldMax ETFs The launch of NVDY follows the recent listing of the YieldMax AAPL Option Income Strategy ETF (APLY). APLY has a similar strategy to NVDY whereby it seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. And just as NVDY doesn’t invest directly in NVDA, APLY doesn’t invest directly in AAPL.
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See more: “New Active Funds Offer Income and Exposure to Price of TSLA, ARKK” A Growing Suite of YieldMax ETFs The launch of NVDY follows the recent listing of the YieldMax AAPL Option Income Strategy ETF (APLY). APLY has a similar strategy to NVDY whereby it seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. And just as NVDY doesn’t invest directly in NVDA, APLY doesn’t invest directly in AAPL.
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See more: “New Active Funds Offer Income and Exposure to Price of TSLA, ARKK” A Growing Suite of YieldMax ETFs The launch of NVDY follows the recent listing of the YieldMax AAPL Option Income Strategy ETF (APLY). APLY has a similar strategy to NVDY whereby it seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. And just as NVDY doesn’t invest directly in NVDA, APLY doesn’t invest directly in AAPL.
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15880.0
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2023-05-11 00:00:00 UTC
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3 FAANG Stocks For Your May 2023 Watchlist
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AAPL
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https://www.nasdaq.com/articles/3-faang-stocks-for-your-may-2023-watchlist
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nan
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nan
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FAANG is an acronym representing five of the most prominent and influential tech companies in the United States: Facebook, Apple, Amazon, Netflix, and Alphabet. These companies are considered to be some of the largest and most powerful entities in the tech industry and, by extension, the entire stock market. Each of these companies has shown exceptional growth and innovation, leading to significant influence on the economy and financial markets.
Investing in FAANG stocks essentially means investing in the leading tech giants, each with a unique business model. Facebook and Google dominate digital advertising, Apple has a stronghold on tech hardware and software, Amazon is a leader in e-commerce and cloud services, and Netflix is a significant player in the streaming content industry.
However, like any investment, FAANG stocks come with their own set of risks. Factors like regulatory pressures, market saturation, and competition can impact their performance. Therefore, investors need to understand these factors and their potential impact on FAANG stocks. Despite these risks, FAANG stocks have consistently proven to be resilient and have generated substantial returns for their shareholders over the years. All in all, here are three FAANG stocks for your stock market watchlist today.
FAANG Stocks To Invest In [Or Avoid] Today
Amazon.com Inc. (NASDAQ: AMZN)
Apple, Inc. (NASDAQ: AAPL)
Meta Platforms Inc. (NASDAQ: META)
Amazon (AMZN Stock)
First off, Amazon.com Inc. (AMZN) is one of the world’s most influential e-commerce and cloud computing companies. Today, Amazon is a dominant force in online retail, digital streaming, and artificial intelligence, and it is the leading provider of cloud infrastructure through Amazon Web Services.
Late last month, Amazon recently reported its first quarter of 2023 earnings results. In detail, the company announced earnings of $0.31 per share, with revenue of $127.4 billion. For context, Wall Street’s consensus estimates were earnings of $0.21 per share versus revenue of $124.5 billion. Moreover, revenue advanced by 9.4% compared to the same period, the previous year. Furthermore, Amazon said estimated second-quarter revenue of $127.0 billion to $133.0 billion.
On Thursday morning, shares of AMZN stock are trading higher on the day so far by 1.15%, at $111.44 per share.
Source: TD Ameritrade TOS
[Read More] 3 Semiconductor Stocks To Watch In May 2023
Apple (AAPL Stock)
Next, Apple, Inc. (AAPL) is known for its innovative and high-quality products, Apple is a global leader in consumer electronics and software. Some of its flagship products include the iPhone, the iPad, and the Mac computer. Apple is also involved in services like the App Store, Apple Music, and iCloud.
Just last week, Apple released its financial results for the second quarter of 2023. The tech giant reported per-share earnings of $1.52 and total revenue of $94.8 billion, surpassing analysts’ predictions, which had forecasted earnings of $1.44 per share and revenue of $92.9 billion. Moreover, during the earnings call, Apple projected that the third quarter would see a similar dip in revenue, with estimates landing around $80.88 billion.
Moving along, during Thursday morning’s trading session, Apple stock is trading slightly lower off the open by 0.54% at $172.62 per share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch In May 2023
Meta Platforms (META Stock)
Last but not least, Meta Platforms Inc. (META) previously known as Facebook Inc., Meta Platforms is a multinational technology company known for its social networking services. The company owns several popular platforms, including Facebook, Instagram, WhatsApp, and Oculus VR.
In late April, Meta Platforms shared its financial results for the first quarter of 2023. Delving into the details, the company outperformed expectations for the quarter. Particularly, Meta reported earnings of $2.64 per share and revenue of $28.6 billion for the first quarter of 2023. This exceeded the predictions of analysts, who had estimated earnings of $1.96 per share and revenue of $27.6 billion.
That said, during Thursday’s mid-morning trading session, META stock is trading up on the day thus far by 1.23% at $236.15 a 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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FAANG Stocks To Invest In [Or Avoid] Today Amazon.com Inc. (NASDAQ: AMZN) Apple, Inc. (NASDAQ: AAPL) Meta Platforms Inc. (NASDAQ: META) Amazon (AMZN Stock) First off, Amazon.com Inc. (AMZN) is one of the world’s most influential e-commerce and cloud computing companies. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch In May 2023 Apple (AAPL Stock) Next, Apple, Inc. (AAPL) is known for its innovative and high-quality products, Apple is a global leader in consumer electronics and software. FAANG is an acronym representing five of the most prominent and influential tech companies in the United States: Facebook, Apple, Amazon, Netflix, and Alphabet.
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FAANG Stocks To Invest In [Or Avoid] Today Amazon.com Inc. (NASDAQ: AMZN) Apple, Inc. (NASDAQ: AAPL) Meta Platforms Inc. (NASDAQ: META) Amazon (AMZN Stock) First off, Amazon.com Inc. (AMZN) is one of the world’s most influential e-commerce and cloud computing companies. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch In May 2023 Apple (AAPL Stock) Next, Apple, Inc. (AAPL) is known for its innovative and high-quality products, Apple is a global leader in consumer electronics and software. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch In May 2023 Meta Platforms (META Stock) Last but not least, Meta Platforms Inc. (META) previously known as Facebook Inc., Meta Platforms is a multinational technology company known for its social networking services.
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FAANG Stocks To Invest In [Or Avoid] Today Amazon.com Inc. (NASDAQ: AMZN) Apple, Inc. (NASDAQ: AAPL) Meta Platforms Inc. (NASDAQ: META) Amazon (AMZN Stock) First off, Amazon.com Inc. (AMZN) is one of the world’s most influential e-commerce and cloud computing companies. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch In May 2023 Apple (AAPL Stock) Next, Apple, Inc. (AAPL) is known for its innovative and high-quality products, Apple is a global leader in consumer electronics and software. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch In May 2023 Meta Platforms (META Stock) Last but not least, Meta Platforms Inc. (META) previously known as Facebook Inc., Meta Platforms is a multinational technology company known for its social networking services.
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FAANG Stocks To Invest In [Or Avoid] Today Amazon.com Inc. (NASDAQ: AMZN) Apple, Inc. (NASDAQ: AAPL) Meta Platforms Inc. (NASDAQ: META) Amazon (AMZN Stock) First off, Amazon.com Inc. (AMZN) is one of the world’s most influential e-commerce and cloud computing companies. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch In May 2023 Apple (AAPL Stock) Next, Apple, Inc. (AAPL) is known for its innovative and high-quality products, Apple is a global leader in consumer electronics and software. All in all, here are three FAANG stocks for your stock market watchlist today.
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15881.0
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2023-05-11 00:00:00 UTC
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Foxconn shares fall after Apple supplier's Q1 profit plunges
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AAPL
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https://www.nasdaq.com/articles/foxconn-shares-fall-after-apple-suppliers-q1-profit-plunges
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nan
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nan
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TAIPEI, May 12 (Reuters) - Shares of Foxconn 2317.TW fell more than 2% on Friday after the Apple Inc AAPL.O supplier's quarterly profit missed forecasts and it cited a big writedown from its stake in Japan's Sharp Corp 6753.T for the loss.
The stock of Foxconn, the world's largest contract electronics maker, slid 2.4% in early trade, while Sharp's shares plunged 7%.
(Reporting by Yimou Lee in Taipei; Writing by Anne Marie Roantree; Editing by Jacqueline Wong)
((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.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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TAIPEI, May 12 (Reuters) - Shares of Foxconn 2317.TW fell more than 2% on Friday after the Apple Inc AAPL.O supplier's quarterly profit missed forecasts and it cited a big writedown from its stake in Japan's Sharp Corp 6753.T for the loss. The stock of Foxconn, the world's largest contract electronics maker, slid 2.4% in early trade, while Sharp's shares plunged 7%. (Reporting by Yimou Lee in Taipei; Writing by Anne Marie Roantree; Editing by Jacqueline Wong) ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.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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TAIPEI, May 12 (Reuters) - Shares of Foxconn 2317.TW fell more than 2% on Friday after the Apple Inc AAPL.O supplier's quarterly profit missed forecasts and it cited a big writedown from its stake in Japan's Sharp Corp 6753.T for the loss. The stock of Foxconn, the world's largest contract electronics maker, slid 2.4% in early trade, while Sharp's shares plunged 7%. (Reporting by Yimou Lee in Taipei; Writing by Anne Marie Roantree; Editing by Jacqueline Wong) ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.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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TAIPEI, May 12 (Reuters) - Shares of Foxconn 2317.TW fell more than 2% on Friday after the Apple Inc AAPL.O supplier's quarterly profit missed forecasts and it cited a big writedown from its stake in Japan's Sharp Corp 6753.T for the loss. The stock of Foxconn, the world's largest contract electronics maker, slid 2.4% in early trade, while Sharp's shares plunged 7%. (Reporting by Yimou Lee in Taipei; Writing by Anne Marie Roantree; Editing by Jacqueline Wong) ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.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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TAIPEI, May 12 (Reuters) - Shares of Foxconn 2317.TW fell more than 2% on Friday after the Apple Inc AAPL.O supplier's quarterly profit missed forecasts and it cited a big writedown from its stake in Japan's Sharp Corp 6753.T for the loss. The stock of Foxconn, the world's largest contract electronics maker, slid 2.4% in early trade, while Sharp's shares plunged 7%. (Reporting by Yimou Lee in Taipei; Writing by Anne Marie Roantree; Editing by Jacqueline Wong) ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.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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15882.0
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2023-05-11 00:00:00 UTC
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My Top 3 Growth Stock Picks for May 2023
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AAPL
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https://www.nasdaq.com/articles/my-top-3-growth-stock-picks-for-may-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Finding certainty in investing is challenging, as even seemingly stable assets like cash or CDs may not be entirely immune to factors such as inflation, which can lead to a decline in purchasing power over time. One way for investors to add certainty to their portfolio is by focusing on stocks of companies likely to remain relevant for several decades. These are typically companies that pay dividends, have high profitability, and are large enough to withstand market disruptions. For example, here are three of the most promising top growth stock picks for May that you might want to consider.
META Meta Platforms $235.79
GOOG GOOGL Alphabet $116.90
AAPL Apple 173.75
Meta Platforms (META)
Source: Khakimullin Aleksandr / Shutterstock
One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. It also took a hit on concerns over CEO Mark Zuckerberg’s investment in the metaverse.
However while the S&P 500 has climbed by less than 13%, Meta’s stock has increased by more than 60% in the past few months. Now, as the Facebook parent prepares to report its Q1 2023 earnings after the market closes on Wednesday, investors wonder if there’s further room for growth. Meta Platforms is in an excellent position to report robust earnings growth as cost savings boost its profitability. And as the digital ad market rebounds.
Alphabet (GOOG, GOOGL)
Source: MEE KO DONG / Shutterstock
Another tech and AI giant, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has been going through ups and downs recently. The company’s management is taking decisive action to reduce expenses by laying off 6% of its workforce and suspending the development of its next-generation Pixelbook laptop.
These measures are expected to enhance profitability and drive earnings growth over the long run. However, the launch of its AI-powered chatbot earlier this year could have been better received and only added to the company’s challenges. Although Alphabet struggled with missed earnings and negative chatbot feedback, the stock has returned. With a strong foothold in search and cloud computing, Alphabet is poised for significant growth in the AI space.
Sundar Pichai, the CEO of Alphabet, has been regularly talking about AI for several decades, suggesting that Alphabet has given it some serious thought. With Alphabet’s dominance in Google and YouTube, there is optimism that the company will eventually succeed in AI development.
Apple (AAPL)
Source: Shutterstock
Compared to other technology stocks, Apple (NASDAQ:AAPL) performed better during the tech stock sell-off in 2022. While Apple’s past and recent performance have been strong, its long-term potential lies in its growth catalysts, such as its Services unit, according to Louis Navellier. Traders looking for a buy-and-hold potential in the technology sector might consider Apple.
Apple plans to maintain its aggressive approach to share repurchases and dividends. The company generates $97 billion in annual free cash flow, more than enough to support its current policies. Apple’s goal is to eventually reach a cash-neutral financial position, which means its debt will equal its cash. This might require a few years to complete, with $54 billion in net financial resources and $97 billion in yearly free liquidity.
When Apple releases its financial data for its fiscal second quarter on May 4, shareholders can anticipate a clarification on the business’s cash position, repurchases of shares, and payouts.
On the date of publication, Chris MacDonald had a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post My Top 3 Growth Stock Picks for May 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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META Meta Platforms $235.79 GOOG GOOGL Alphabet $116.90 AAPL Apple 173.75 Meta Platforms (META) Source: Khakimullin Aleksandr / Shutterstock One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. Apple (AAPL) Source: Shutterstock Compared to other technology stocks, Apple (NASDAQ:AAPL) performed better during the tech stock sell-off in 2022. On the date of publication, Chris MacDonald had a position in AAPL, META.
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META Meta Platforms $235.79 GOOG GOOGL Alphabet $116.90 AAPL Apple 173.75 Meta Platforms (META) Source: Khakimullin Aleksandr / Shutterstock One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. Apple (AAPL) Source: Shutterstock Compared to other technology stocks, Apple (NASDAQ:AAPL) performed better during the tech stock sell-off in 2022. On the date of publication, Chris MacDonald had a position in AAPL, META.
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META Meta Platforms $235.79 GOOG GOOGL Alphabet $116.90 AAPL Apple 173.75 Meta Platforms (META) Source: Khakimullin Aleksandr / Shutterstock One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. Apple (AAPL) Source: Shutterstock Compared to other technology stocks, Apple (NASDAQ:AAPL) performed better during the tech stock sell-off in 2022. On the date of publication, Chris MacDonald had a position in AAPL, META.
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META Meta Platforms $235.79 GOOG GOOGL Alphabet $116.90 AAPL Apple 173.75 Meta Platforms (META) Source: Khakimullin Aleksandr / Shutterstock One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. Apple (AAPL) Source: Shutterstock Compared to other technology stocks, Apple (NASDAQ:AAPL) performed better during the tech stock sell-off in 2022. On the date of publication, Chris MacDonald had a position in AAPL, META.
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15883.0
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2023-05-11 00:00:00 UTC
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After Hours Most Active for May 11, 2023 : KGC, MSFT, TSLA, INTC, AAPL, SUMO, FOLD, RLJ, FIS, PAGS, IONQ, SCHW
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-11-2023-%3A-kgc-msft-tsla-intc-aapl-sumo-fold-rlj-fis-pags
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The NASDAQ 100 After Hours Indicator is down -3.12 to 13,386.66. The total After hours volume is currently 75,078,239 shares traded.
The following are the most active stocks for the after hours session:
Kinross Gold Corporation (KGC) is unchanged at $5.33, with 2,539,707 shares traded. KGC's current last sale is 97.62% of the target price of $5.46.
Microsoft Corporation (MSFT) is -0.35 at $309.76, with 2,447,622 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 $2.57. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Tesla, Inc. (TSLA) is +1.18 at $173.26, with 2,139,912 shares traded. TSLA's current last sale is 86.63% of the target price of $200.
Intel Corporation (INTC) is -0.12 at $28.74, with 2,134,418 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.04. INTC's current last sale is 94.23% of the target price of $30.5.
Apple Inc. (AAPL) is -0.19 at $173.56, with 2,021,362 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".
Sumo Logic, Inc. (SUMO) is unchanged at $12.04, with 1,967,712 shares traded. SUMO's current last sale is 100.33% of the target price of $12.
Amicus Therapeutics, Inc. (FOLD) is unchanged at $11.68, with 1,944,301 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.
RLJ Lodging Trust (RLJ) is unchanged at $10.71, with 1,625,231 shares traded. RLJ's current last sale is 71.4% of the target price of $15.
Fidelity National Information Services, Inc. (FIS) is unchanged at $55.00, with 1,586,882 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.55. FIS's current last sale is 68.75% of the target price of $80.
PagSeguro Digital Ltd. (PAGS) is -0.03 at $12.23, with 1,055,354 shares traded. PAGS's current last sale is 87.36% of the target price of $14.
IonQ, Inc. (IONQ) is -0.82 at $6.20, with 1,009,698 shares traded. IONQ's current last sale is 68.89% of the target price of $9.
The Charles Schwab Corporation (SCHW) is -0.03 at $47.70, with 944,581 shares traded. As reported by Zacks, the current mean recommendation for SCHW 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 -0.19 at $173.56, with 2,021,362 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 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is -0.19 at $173.56, with 2,021,362 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 75,078,239 shares traded.
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Apple Inc. (AAPL) is -0.19 at $173.56, with 2,021,362 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 75,078,239 shares traded.
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Apple Inc. (AAPL) is -0.19 at $173.56, with 2,021,362 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Kinross Gold Corporation (KGC) is unchanged at $5.33, with 2,539,707 shares traded.
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15884.0
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2023-05-11 00:00:00 UTC
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2 Warren Buffett Stocks to Buy Hand Over Fist in May
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-hand-over-fist-in-may-0
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is a lodestar for many investors, and for good reason. His stock-picking acumen has yielded astounding returns on capital for Berkshire shareholders over the years.
BRK.A data by YCharts.
Which Warren Buffett stocks are worth buying in May? Although the Oracle of Omaha has become decidedly more cautious when it comes to U.S. stocks in recent times, Berkshire's portfolio still contains a handful of outstanding buys for patient investors. Here are two holdings that ought to deliver above-market returns for those with a long-term mindset.
1. Apple
Apple (NASDAQ: AAPL) has built a thriving business with a wide economic moat thanks to its user-friendly Mac and iPhone. These intuitive interfaces seamlessly integrate a diverse array of apps, drastically cut down on conflicts between apps, and most importantly are the basis for the company's reputation for products that "just work" right out of the box.
The sleek design of the iPhone, which raked in an eye-popping $51.3 billion in sales in the most recent quarter, is also a crucial component in its wide competitive moat. Namely, the tech giant's flagship product has become a cultural icon. An iPhone has become a sign of personal financial success in many countries, as well as a must-have fashion accessory.
As a direct result, Apple has been able to rapidly capture market share in key emerging nations like India in recent quarters, despite fierce competition from lower priced alternatives.
Apple's well-earned reputation for making easy-to-use products that are both reliable and stylish is the core reasons Buffett views the company as one of the best businesses in Berkshire's diverse portfolio. What it all boils down to is this: The company's core enormous earnings power ought to remain intact for the foreseeable future due to its lack of viable competition and beloved status among users.
So, even though Apple's stock does have a moderately low earnings yield of 3.77%, its proven ability to fend off competition is arguably worth the price of admission.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) has been among Berkshire's few long-term holdings in healthcare for a couple of solid reasons. Despite the inherent disadvantage of operating in arenas like pharmaceuticals and medtech that are heavily dependent on time-limited patents to protect profits, J&J has been able to build a formidable economic moat, a AAA-rated balance sheet, a 61-year history of annual dividend increases, and a well-earned reputation for savvy capital allocation.
As a recent example, J&J acquired Abiomed late last year in a move that significantly bolstered its cardiovascular medtech portfolio ahead of the spinoff of Kenvue. This latest medtech acquisition opens up another high-growth opportunity for the company in the years ahead.
What's important to understand is that most mergers and acquisitions in healthcare actually turn out to be value sinks due to the high premiums involved, innate regulatory risks, and the ever-present threat of new competitors coming to market. J&J, by contrast, has repeatedly been able to avoid these pitfalls by hitting on winning companies like Abiomed that ultimately enhance its overall value proposition to shareholders.
J&J's successful capital allocation strategy, heavy investment on internal pipeline development, and rich tradition of dividend increases have made its stock a tremendous investment for long-term stakeholders:
JNJ Total Return Price data by YCharts.
As such, this Buffett stock is arguably worth buying in any type of market.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has built a thriving business with a wide economic moat thanks to its user-friendly Mac and iPhone. As a direct result, Apple has been able to rapidly capture market share in key emerging nations like India in recent quarters, despite fierce competition from lower priced alternatives. Despite the inherent disadvantage of operating in arenas like pharmaceuticals and medtech that are heavily dependent on time-limited patents to protect profits, J&J has been able to build a formidable economic moat, a AAA-rated balance sheet, a 61-year history of annual dividend increases, and a well-earned reputation for savvy capital allocation.
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Apple Apple (NASDAQ: AAPL) has built a thriving business with a wide economic moat thanks to its user-friendly Mac and iPhone. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is a lodestar for many investors, and for good reason. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) has been among Berkshire's few long-term holdings in healthcare for a couple of solid reasons.
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Apple Apple (NASDAQ: AAPL) has built a thriving business with a wide economic moat thanks to its user-friendly Mac and iPhone. Apple's well-earned reputation for making easy-to-use products that are both reliable and stylish is the core reasons Buffett views the company as one of the best businesses in Berkshire's diverse portfolio. J&J's successful capital allocation strategy, heavy investment on internal pipeline development, and rich tradition of dividend increases have made its stock a tremendous investment for long-term stakeholders: JNJ Total Return Price data by YCharts.
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Apple Apple (NASDAQ: AAPL) has built a thriving business with a wide economic moat thanks to its user-friendly Mac and iPhone. Apple's well-earned reputation for making easy-to-use products that are both reliable and stylish is the core reasons Buffett views the company as one of the best businesses in Berkshire's diverse portfolio. J&J's successful capital allocation strategy, heavy investment on internal pipeline development, and rich tradition of dividend increases have made its stock a tremendous investment for long-term stakeholders: JNJ Total Return Price data by YCharts.
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15885.0
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2023-05-11 00:00:00 UTC
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COLUMN-U.S. mega tech is expensive, but may be unavoidable: McGeever
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AAPL
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https://www.nasdaq.com/articles/column-u.s.-mega-tech-is-expensive-but-may-be-unavoidable%3A-mcgeever
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nan
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nan
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By Jamie McGeever
ORLANDO, Florida, May 11 (Reuters) - The U.S. stock market rally this year is so narrow that the S&P 500 index's .SPXgains have been entirely driven by just a handful of stocks, which are now significantly more expensive than more than 95% of the broader market.
The question for investors is, does that valuation chasm begin to close, and will it influence the market's direction in the second half of the year as much as it did in the first?
While the gap is extreme, the short-term correlation between valuation and performance is minimal unless you are coming off the sidelines and allocating fresh capital, analysts say. Performance over the next year or so will likely be driven by other factors like positioning and interest rate moves.
Some of the numbers, however, are so startling they cannot be ignored.
The top four stocks in the S&P 500 by weight - Apple Inc AAPL.O, Microsoft CorpMSFT.O, Amazon.com Inc AMZN.O and Nvidia CorpNVDA.O - account for almost 19% of the index's entire $34.4 trillion market cap.
They are up more than 45% this year, while the other 496 are up barely 2% and the index as a whole is up less than 8%.
According to Tajinder Dhillon, a Refinitiv analyst, the aggregate 12-month forward price/earnings (PE) ratio of the top four stocks is 31.6, compared with 16.4 for the other 496 companies and 17.9 for the index as a whole.
Keith Lerner, co-chief investment officer at Truist in Atlanta, calculates that the four stocks' average 12-month forward PE ratio is around 42.0. That compares with the 10-year average of 49.6, and is only lower thanks to Amazon. The other three are all more expensive than before.
The average 12-month forward PE of the other 496 stocks is around 20.8, Lerner says, adding that a 'harmonic' valuation measure stripping out extremely low index weightings and high PE readings reduces it further to 16.3.
Whichever way you cut it, the mega stocks are extremely expensive relative to the rest of the market. The cheaper rump of the market that has essentially flatlined this year should be well poised to pick up the baton.
This may play out if the Fed can engineer an economic 'soft landing'. Unemployment at a 50-year low and inflation cooling to a two-year low strengthen the soft landing argument, but caution is still trumping adventurousness.
"When you look below the surface the picture changes from very expensive to more reasonable valuation, but it still might not be compelling enough relative to the above-average macro risk," Lerner said.
CROWDED TRADE
These risks are real and growing - the U.S. debt ceiling standoff, turmoil in the U.S. regional banking sector, deteriorating credit conditions, and the cumulative hit to activity from 500 basis points of rate hikes in little more than a year.
Analysts at JP Morgan point out that, as a share of total shares outstanding, tech has the lowest short interest across U.S. equity sectors, with funds adding to their net exposure to tech in recent weeks.
Everyone wants a piece of Big Tech, from central banks to mom & pop investors in their 401k accounts, for myriad reasons - safety, liquidity, an interest rate and valuation play, a bet on artificial intelligence, or a nod to ESG.
Apple is turning into a bank too, offering 4.15% on savings accounts.
It is a top-heavy market. Over the last decade Bank of America's monthly global fund managers surveys have often had various cuts of 'long U.S. tech stocks' as the most crowded trade, but April's survey for the first time ever had 'long big Tech'.
The potential upside is more visible in cheaper sectors that have not participated much in the rally - pretty much everything other than Big Tech - and that are more likely to benefit from a 'soft landing'. They could include small caps, cyclicals like financials, materials, and some industrials and energy stocks.
Todd Jablonski, global head of multi asset investing at Principal Asset Management, agrees that mega tech is expensive, and he is underweight U.S. and global equities. He prefers fixed income over stocks by a considerable distance.
But within equities he holds a tactical overweight position in large caps even though they are expensive, because of their relative stability and low standard deviation levels.
"It's going to require a broader market participation to drive the next leg higher," Jablonski said, adding that he does not see it happening this year.
(The opinions expressed here are those of the author, a columnist for Reuters.)
Mega tech vs S&P 500 index - 2023 performancehttps://tmsnrt.rs/3LYNgqw
Big tech regains weight in S&P 500 indexhttps://tmsnrt.rs/44JEZz8
(By Jamie McGeever; Editing by Richard Chang)
((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top four stocks in the S&P 500 by weight - Apple Inc AAPL.O, Microsoft CorpMSFT.O, Amazon.com Inc AMZN.O and Nvidia CorpNVDA.O - account for almost 19% of the index's entire $34.4 trillion market cap. These risks are real and growing - the U.S. debt ceiling standoff, turmoil in the U.S. regional banking sector, deteriorating credit conditions, and the cumulative hit to activity from 500 basis points of rate hikes in little more than a year. Everyone wants a piece of Big Tech, from central banks to mom & pop investors in their 401k accounts, for myriad reasons - safety, liquidity, an interest rate and valuation play, a bet on artificial intelligence, or a nod to ESG.
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The top four stocks in the S&P 500 by weight - Apple Inc AAPL.O, Microsoft CorpMSFT.O, Amazon.com Inc AMZN.O and Nvidia CorpNVDA.O - account for almost 19% of the index's entire $34.4 trillion market cap. Keith Lerner, co-chief investment officer at Truist in Atlanta, calculates that the four stocks' average 12-month forward PE ratio is around 42.0. The average 12-month forward PE of the other 496 stocks is around 20.8, Lerner says, adding that a 'harmonic' valuation measure stripping out extremely low index weightings and high PE readings reduces it further to 16.3.
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The top four stocks in the S&P 500 by weight - Apple Inc AAPL.O, Microsoft CorpMSFT.O, Amazon.com Inc AMZN.O and Nvidia CorpNVDA.O - account for almost 19% of the index's entire $34.4 trillion market cap. By Jamie McGeever ORLANDO, Florida, May 11 (Reuters) - The U.S. stock market rally this year is so narrow that the S&P 500 index's .SPXgains have been entirely driven by just a handful of stocks, which are now significantly more expensive than more than 95% of the broader market. The average 12-month forward PE of the other 496 stocks is around 20.8, Lerner says, adding that a 'harmonic' valuation measure stripping out extremely low index weightings and high PE readings reduces it further to 16.3.
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The top four stocks in the S&P 500 by weight - Apple Inc AAPL.O, Microsoft CorpMSFT.O, Amazon.com Inc AMZN.O and Nvidia CorpNVDA.O - account for almost 19% of the index's entire $34.4 trillion market cap. By Jamie McGeever ORLANDO, Florida, May 11 (Reuters) - The U.S. stock market rally this year is so narrow that the S&P 500 index's .SPXgains have been entirely driven by just a handful of stocks, which are now significantly more expensive than more than 95% of the broader market. According to Tajinder Dhillon, a Refinitiv analyst, the aggregate 12-month forward price/earnings (PE) ratio of the top four stocks is 31.6, compared with 16.4 for the other 496 companies and 17.9 for the index as a whole.
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15886.0
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2023-05-11 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-33
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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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15887.0
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2023-05-11 00:00:00 UTC
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If I Could Buy Just 1 Warren Buffett Stock Right Now, This Would Be It
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AAPL
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https://www.nasdaq.com/articles/if-i-could-buy-just-1-warren-buffett-stock-right-now-this-would-be-it
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nan
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nan
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Those looking to forge a successful path in investing could do worse than mirroring the strategy of legendary Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett, arguably one of the greatest investors of all time. Since taking charge of the company back in 1965, his stock picks have yielded compound annual gains of roughly 20% and have collectively soared a staggering 3,787,464%.
The Oracle of Omaha has more than three dozen stocks in Berkshire's equity portfolio, giving investors plenty to choose from. There's arguably something for every investing taste among Berkshire's most prominent stock holdings.
So, if I could only buy just one Warren Buffett stock right now, my pick would a company with a strong history of growth and a track record of returning capital to shareholders. That's why Apple (NASDAQ: AAPL) would be my top pick.
Image source: The Motley Fool.
Woodstock for capitalists
This past weekend, Berkshire Hathaway held its 2023 annual shareholder meeting and it was clear that the love affair between Buffett and Apple continues, as he continued to heap praise on the company.
Referring to Berkshire's ownership of Apple, which amounts to nearly 6% of the company, Buffett said (emphasis added), "Our criteria for Apple was different than the other businesses we own -- it just happens to be [a] better business than any we own."
He went on to cite the enduring demand for the iPhone as one of the key differentiators:
Apple has a position with consumers where they're paying 1,500 bucks or whatever it may be for a phone. And the same people pay $35,000 for having a second car, and [if] they had to give up a second car or give up their iPhone, they give up their second car. I mean, it's an extraordinary product.
Buffett admitted to selling some shares a few years ago, and his thoughts on that today.
"I made a mistake a couple of years ago and I sold some shares," he said. "I had certain reasons why gains were useful that year from a tax standpoint, but having heard me say that, it was a dumb decision."
It's clear from Buffett's comments that he still believes Apple -- and the iPhone -- are best-in-breed.
Remarkable resilience
Given the current environment of decades-high inflation and rising interest rates, consumer budgets are stretched to their breaking point. Considering those challenges and the uncertainty that remains, it would be easy for investors to conclude iPhone sales would be hit hard, yet that simply wasn't the case.
Even in the face of the ongoing economic headwinds, the resilience of Apple's flagship device was clear. For its fiscal 2023 second quarter (ended April 1), iPhone revenue of $51 billion grew 1.5% year over year, setting a March-quarter record. Services also played its part: Sales of $21 billion climbed 5%, reaching a new all-time high. This helped keep Apple's overall decline to a minimum, with revenue of $94.8 billion dipping just 3% year over year, while its earnings per share of $1.52 were unchanged.
Shareholders benefit
Over time, Apple's consistent strong performance has helped it rise to the top of the heap, becoming the world's largest company, with a market cap of $2.74 trillion. That has translated into share-price gains of 959% over the past decade. But that's just the beginning.
Since Apple resumed paying a dividend in 2012, it has amassed quite a track record. In fact, the company recently announced its 11th consecutive annual increase, with the payout climbing 4% to $0.24.
On a split-adjusted basis, Apple's payout initially began at $0.095, but has soared an impressive 153% since inception (including this most recent increase). Furthermore, the tech titan uses just 16% of its profits to fund the payout, so the company has the resources to continue to raise its dividend for the foreseeable future.
To be clear, the yield might seem paltry at 0.55%, but that's the result of its enormous share-price growth. Combining the dividend and stock appreciation has rewarded Apple shareholders with gains of more than 1,130% over the past 10 years.
Apple has gone even further, with a generous share repurchase plan that it just increased by $90 billion. The company has been buying stock hand over fist, retiring nearly 39% of its outstanding shares since 2013. This gives shareholders a larger slice of its profits.
Buffett has previously commented on Apple's share repurchases, saying he's "wildly in favor of it." He is also a fan of the fact that it increases Berkshire's ownership of every dollar of Apple's profits, without Buffett having to lift a finger.
Every rose has its thorns
Even with the Warren Buffett seal of approval, Apple stock won't appeal to every investor. Some would rightfully argue that with a potential recession on the horizon, demand for the iPhone could wither, and the company's overall sales could falter, potentially denting the stock in the process.
Furthermore, Apple shares aren't especially cheap, selling for 29 times earnings, a bit higher than the price-to-earnings ratio of 25 for the S&P 500. However the S&P's total returns pale in comparison to Apple, up just 208% over the past decade.
That said, given the company's aforementioned history of robust growth and impressive record of shareholder returns, Apple is the one Warren Buffett stock I would buy if I could only buy one.
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Danny Vena has positions in Apple. 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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That's why Apple (NASDAQ: AAPL) would be my top pick. So, if I could only buy just one Warren Buffett stock right now, my pick would a company with a strong history of growth and a track record of returning capital to shareholders. Remarkable resilience Given the current environment of decades-high inflation and rising interest rates, consumer budgets are stretched to their breaking point.
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That's why Apple (NASDAQ: AAPL) would be my top pick. Those looking to forge a successful path in investing could do worse than mirroring the strategy of legendary Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett, arguably one of the greatest investors of all time. So, if I could only buy just one Warren Buffett stock right now, my pick would a company with a strong history of growth and a track record of returning capital to shareholders.
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That's why Apple (NASDAQ: AAPL) would be my top pick. Woodstock for capitalists This past weekend, Berkshire Hathaway held its 2023 annual shareholder meeting and it was clear that the love affair between Buffett and Apple continues, as he continued to heap praise on the company. Referring to Berkshire's ownership of Apple, which amounts to nearly 6% of the company, Buffett said (emphasis added), "Our criteria for Apple was different than the other businesses we own -- it just happens to be [a] better business than any we own."
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That's why Apple (NASDAQ: AAPL) would be my top pick. So, if I could only buy just one Warren Buffett stock right now, my pick would a company with a strong history of growth and a track record of returning capital to shareholders. This helped keep Apple's overall decline to a minimum, with revenue of $94.8 billion dipping just 3% year over year, while its earnings per share of $1.52 were unchanged.
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15888.0
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2023-05-11 00:00:00 UTC
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Apple supplier Foxconn's Q1 profit falls 56% y/y, worse than forecasts
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconns-q1-profit-falls-56-y-y-worse-than-forecasts
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nan
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nan
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TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, as global economic woes hurt demand for smart consumer electronics.
The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year.
It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.
($1 = 30.6830 Taiwan dollars)
(Reporting by Yimou Lee; Editing by Jacqueline Wong)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. ($1 = 30.6830 Taiwan dollars) (Reporting by Yimou Lee; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.
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TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. ($1 = 30.6830 Taiwan dollars) (Reporting by Yimou Lee; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, May 11 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year. It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.
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15889.0
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2023-05-11 00:00:00 UTC
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Green Brick: A Stock You’ve Never Heard Of That’s Rallying 200%
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AAPL
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https://www.nasdaq.com/articles/green-brick%3A-a-stock-youve-never-heard-of-thats-rallying-200
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nan
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nan
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Investors have been focused on the more well-known tech stocks and the financials in recent months, with the former primarily responsible for the S&P 500’s gains this year and the latter for the recent volatility. But as concerns grow about how lopsided the broader rally has been, investors will be inclined to be more picky about their stocks for the rest of the year.
One great way to sort out high-quality stocks from non-performers is to run simple screens for stock performance over the past year. This can be broken down into chunks like the past month, the past three months, the past two quarters, etc., and can quickly turn up some diamonds you’ll never have heard of otherwise.
Finding The Diamond
On one such search recently, we came across Green Brick Partners Inc (NYSE: GRBK), a homebuilder with a market cap of $2.4 billion. It’s no secret that homebuilders have been a well-performing industry of late, with the iShares US Home Construction ETF (BATS: ITB) up a solid 50% since last November. But Green Brick is in a league of its own and can boast a 175% return over the same period. And the good news? It looks like the rally is only getting started.
Green Brick’s shares had been tracking north in line with the ITB ETF through the end of last year, but once January came along, the gap widened considerably. A word from the inside might well have leaked because the company’s February earnings confirmed they’d achieved record home closing revenue for a fourth quarter.
The momentum from this continued through April, and last week’s Q1 report smashed analyst expectations once again. The company’s top-line revenue was up 14% year on year, having actually contracted year on year in the previous quarter, while their bottom-line EPS came in 107% higher than the consensus. In an earnings season where a mild beat on expectations has been good enough for most of the tech giants, this was a stunning result, and Wall Street noticed.
Getting Involved
As of last night’s close, the stock is up about 50% from Tuesday last week, with pretty much every session in between closing out at highs. If this is the first time you’re hearing about Green Brick, you’re probably right to feel cautious about jumping in immediately, as the stock’s RSI is at an eye-watering 90. This suggests the stock is exceptionally overbought right now, and while the longer-term upward trend might well be intact, an RSI of that magnitude can often signal an imminent retracement. This is often little more than some profit taking from those involved earlier, and given the strength in both Green Brick’s report and their shares, any pullback from here should be a welcome buying opportunity.
Despite the near-vertical rally over the past week and the 175% they’ve tacked on since November, it’s still hard to call their shares overvalued even now. Green Brick’s price-to-earnings ratio is only 8.5, a far cry from, say, Apple Inc’s (NASDAQ: AAPL) 30 or Tesla Inc’s (NASDAQ: TSLA) 50. To be sure, they operate in a very different industry, but even against their own home builder peers Green Brick is still attractively valued. NVR Inc (NYSE: NVR), an $18 billion fellow holding in the IBT ETF, has a P/E ratio of 12, as does TopBuild Corp (NYSE: BLD), with a market cap of $7 billion.
So yes, you might not have caught the initial move in Green Brick but rest assured, this home builder’s story is just getting started. Any sign of profit-taking in the coming sessions should be closely watched because it might just be time to start backing up the truck.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Green Brick’s price-to-earnings ratio is only 8.5, a far cry from, say, Apple Inc’s (NASDAQ: AAPL) 30 or Tesla Inc’s (NASDAQ: TSLA) 50. Green Brick’s shares had been tracking north in line with the ITB ETF through the end of last year, but once January came along, the gap widened considerably. A word from the inside might well have leaked because the company’s February earnings confirmed they’d achieved record home closing revenue for a fourth quarter.
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Green Brick’s price-to-earnings ratio is only 8.5, a far cry from, say, Apple Inc’s (NASDAQ: AAPL) 30 or Tesla Inc’s (NASDAQ: TSLA) 50. This can be broken down into chunks like the past month, the past three months, the past two quarters, etc., and can quickly turn up some diamonds you’ll never have heard of otherwise. Finding The Diamond On one such search recently, we came across Green Brick Partners Inc (NYSE: GRBK), a homebuilder with a market cap of $2.4 billion.
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Green Brick’s price-to-earnings ratio is only 8.5, a far cry from, say, Apple Inc’s (NASDAQ: AAPL) 30 or Tesla Inc’s (NASDAQ: TSLA) 50. Finding The Diamond On one such search recently, we came across Green Brick Partners Inc (NYSE: GRBK), a homebuilder with a market cap of $2.4 billion. Green Brick’s shares had been tracking north in line with the ITB ETF through the end of last year, but once January came along, the gap widened considerably.
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Green Brick’s price-to-earnings ratio is only 8.5, a far cry from, say, Apple Inc’s (NASDAQ: AAPL) 30 or Tesla Inc’s (NASDAQ: TSLA) 50. This can be broken down into chunks like the past month, the past three months, the past two quarters, etc., and can quickly turn up some diamonds you’ll never have heard of otherwise. It looks like the rally is only getting started.
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15890.0
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2023-05-11 00:00:00 UTC
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Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-msci-usa-strategicfactors-etf-qus-be-on-your-investing-radar-7
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR MSCI USA StrategicFactors ETF (QUS), a passively managed exchange traded fund launched on 04/15/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $961.08 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.59%.
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 21.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META).
The top 10 holdings account for about 22.14% of total assets under management.
Performance and Risk
QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
The ETF has added roughly 5.99% so far this year and is up about 5.20% in the last one year (as of 05/11/2023). In the past 52-week period, it has traded between $101.25 and $120.35.
The ETF has a beta of 0.91 and standard deviation of 17.07% for the trailing three-year period, making it a medium risk choice in the space. With about 627 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.46 billion in assets, SPDR S&P 500 ETF has $379.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR MSCI USA StrategicFactors ETF (QUS), a passively managed exchange traded fund launched on 04/15/2015.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Alternatives SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). 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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15891.0
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2023-05-11 00:00:00 UTC
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Prediction: Apple Will Become a $5 Trillion Company in 2030
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-apple-will-become-a-%245-trillion-company-in-2030
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nan
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nan
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Apple (NASDAQ: AAPL) is the largest company in the world by market capitalization. That cap currently stands at just over $2.7 trillion and is nearly equal to the size of the economy of France, the world's seventh-largest country as measured by GDP (gross domestic product).
Just seven years ago, Apple's market cap hovered around $500 billion. It was robust demand for the company's products and a solid profit driver in the form of the services business that drove the tech giant's revenue and earnings over the years and led to a five-fold jump in Apple's market cap.
Apple's latest results for the second quarter of fiscal 2023 (ended April 1) suggest that the company isn't going to run out of steam anytime soon. It's on track to potentially hit a market cap of $5 trillion by the end of the decade. Let's look at some of the reasons why that could happen.
2 major catalysts could power Apple higher in the long run
The global smartphone market may have taken a big beating in the first quarter of the year, but that didn't prevent Apple from posting an increase in iPhone revenue. The company generated $51.3 billion in revenue by selling iPhones during the quarter, up slightly from the prior-year period's figure of $50.6 billion.
The iPhone was Apple's biggest source of revenue, producing 54% of its top line during the quarter. What's most impressive though is that Apple's iPhone revenue headed higher even though global smartphone shipments fell 14.6% year over year in the first quarter of 2023, according to IDC. What's more, the market research firm points out that Apple's shipments declined by 2.3%. However, Apple's relatively small drop compared to the overall smartphone market's decline helped it increase its share of the global market to 20.5% from 18% in the year-ago period.
Also, Apple's solid pricing power in the smartphone market helped it deliver an improvement in revenue. Consumer Intelligence Research Partners (CIRP) estimates that the average selling price (ASP) of the iPhone increased to $988 last quarter from $882 in the year-ago period. This 12% year-over-year increase in iPhone ASP is a testament to the fact that consumers are willing to spend more money on iPhones even at a time when the overall smartphone market is in turmoil.
It is also worth noting that Apple dominates the smartphone market's revenue and profits. According to Counterpoint Research, the iPhone cornered 48% of the smartphone market's revenue in 2022, along with a whopping 85% share of the profit. This goes to show how dominant Apple is in smartphones, and this is going to be a big tailwind for the company through the end of the decade.
Spherical Insights predicts that the global smartphone market could generate $947 billion in revenue by 2030, up from $520 billion in 2021. Even if Apple holds on to a 40% revenue share of the global smartphone market by 2030, its iPhone revenue could jump to nearly $380 billion annually. That would be a big increase over the $205 billion in iPhone revenue that the company generated in fiscal 2022.
Apple's focus on emerging markets could help it significantly increase iPhone revenue over the next seven years. CFO Luca Maestri remarked on the company's latest conference call that the iPhone "reached a March quarter revenue record, thanks to very strong performance in emerging markets from South Asia and India to Latin America and the Middle East."
The company sees long-term growth opportunities in these markets given the low share it has over there. For instance, Apple controls just 5.5% of the Indian smartphone market, which is expected to be worth $281 billion in 2028. Apple has been gaining momentum in India thanks to steps such as the opening of new retail stores, an increase in local production, and the addition of pocket-friendly devices that are increasing the iPhone's installed base.
The services business, on the other hand, benefits from an improvement in Apple's iPhone installed base. Services revenue increased to an all-time high of $20.9 billion last quarter, a jump of 5.5% over the prior year. The segment's growth was driven by the increasing adoption of Apple's services. The company reported that it had 975 million paid subscriptions across its range of services at the end of the previous quarter.
More importantly, Apple has added 150 million paid subscriptions in the past year. Its paid subscription count has nearly doubled in the past three years. The company's focus on adding new content to services such as Apple TV+, along with improvements in other areas such as Apple Pay and Apple Music, should allow it to continue increasing the size of its services business.
Apple got 22% of its total revenue from the services business last quarter, up from 20% in the prior-year period. This segment delivered a gross margin of 71%, compared to the 37% gross margin of the products business. So the growing influence of the services business on Apple's top line should help drive stronger profitability.
Why the company could be worth $5 trillion by 2030
The services business and the iPhone together produced just over three-fourths of Apple's total revenue last quarter. The higher margin profile of the services business, Apple's strong iPhone pricing power, and its growing presence in new areas should help the company sustain its robust momentum.
AAPL EPS Estimates for Current Fiscal Year data by YCharts
Analysts forecast Apple's earnings will increase at an annual rate of 8% for the next five years, though it may clock faster growth thanks to new catalysts that may come into play and expand its services revenue. But even if we assume Apple's bottom line grows at 8% annually through 2030, its earnings per share could jump to $11.30 per share at the end of the forecast period (using fiscal 2022's earnings of $6.11 per share as the base).
Multiplying the projected earnings with Apple's forward price-to-earnings ratio of 29.4 would translate into a stock price of $332. That would represent a 91% upside from current levels, which also tells us that Apple's current market cap of $2.7 trillion could easily exceed the $5 trillion mark by 2030. That's why investors who haven't bought this tech stock yet may want to do so, as it has already gained 33% in 2023, and it seems capable of sustaining its solid momentum.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 8, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is the largest company in the world by market capitalization. AAPL EPS Estimates for Current Fiscal Year data by YCharts Analysts forecast Apple's earnings will increase at an annual rate of 8% for the next five years, though it may clock faster growth thanks to new catalysts that may come into play and expand its services revenue. It was robust demand for the company's products and a solid profit driver in the form of the services business that drove the tech giant's revenue and earnings over the years and led to a five-fold jump in Apple's market cap.
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Apple (NASDAQ: AAPL) is the largest company in the world by market capitalization. AAPL EPS Estimates for Current Fiscal Year data by YCharts Analysts forecast Apple's earnings will increase at an annual rate of 8% for the next five years, though it may clock faster growth thanks to new catalysts that may come into play and expand its services revenue. Also, Apple's solid pricing power in the smartphone market helped it deliver an improvement in revenue.
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Apple (NASDAQ: AAPL) is the largest company in the world by market capitalization. AAPL EPS Estimates for Current Fiscal Year data by YCharts Analysts forecast Apple's earnings will increase at an annual rate of 8% for the next five years, though it may clock faster growth thanks to new catalysts that may come into play and expand its services revenue. 2 major catalysts could power Apple higher in the long run The global smartphone market may have taken a big beating in the first quarter of the year, but that didn't prevent Apple from posting an increase in iPhone revenue.
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Apple (NASDAQ: AAPL) is the largest company in the world by market capitalization. AAPL EPS Estimates for Current Fiscal Year data by YCharts Analysts forecast Apple's earnings will increase at an annual rate of 8% for the next five years, though it may clock faster growth thanks to new catalysts that may come into play and expand its services revenue. Even if Apple holds on to a 40% revenue share of the global smartphone market by 2030, its iPhone revenue could jump to nearly $380 billion annually.
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15892.0
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2023-05-11 00:00:00 UTC
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Warren Buffett Thinks This Is Berkshire Hathaway's Best Business
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-thinks-this-is-berkshire-hathaways-best-business
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nan
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nan
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At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent annual meeting, CEO and billionaire investor Warren Buffett answered a question from a shareholder who was concerned with how big the company's Apple (NASDAQ: AAPL) investment had become. And it's not hard to see why the question was asked. With a market value of nearly $158 billion as of this writing, the Apple stock makes up roughly 47% of Berkshire's stock portfolio and is equal to 22% of the conglomerate's entire market cap.
Specifically, the shareholder was quoting another famous investor, Aswath Damodaran, who has said that he isn't comfortable with positions reaching 25%-35% of his portfolio.
Buffett pushed back a bit, defending Berkshire's high exposure to Apple stock. In fact, he went so far to say that Apple is the best business Berkshire owns.
Buffett has high praise for Apple
Of course, Berkshire doesn't own 100% of Apple like it owns 100% of GEICO or any of its other 60+ subsidiaries. Its stake amounts to about 5.8% of Apple. So, Berkshire evaluated Apple somewhat differently than its wholly owned businesses, simply because its ownership could be adjusted up and down.
"Our criteria for Apple was different than the other businesses we own. It just happens to be a better business than any we own," Buffett told investors. He even went so far as to call it a better business than BNSF Railroad, one of Berkshire's key subsidiaries. Buffett said "Apple is a better business. Our railroad is a very good business. It was not remotely as good as Apple's business."
Why does Buffett like Apple so much?
Buffett will be the first to admit that he isn't a tech-savvy investor. In fact, he only got his first smartphone (an iPhone) in 2020. But he still thinks Apple is a fantastic business. As Buffett puts it, "I don't understand the phone at all, but I do understand consumer behavior."
Buffett has spoken many times about the stickiness of Apple's customer base and how the company's phones and other products are considered essentials for its users. At this year's meeting, Buffett said how people would rather give up their second car than their iPhone, which he calls extraordinary. He said that in Berkshire's portfolio of businesses, "we probably don't have anything like that, that we own 100% of."
Apple's aggressive buybacks also have a lot to do with it
Earlier I mentioned that Buffett had different criteria for Apple because Berkshire's ownership stake can change over time. Apple has a notoriously large buyback program, having repurchased a staggering $572 billion of its own stock since 2012, more than three times any other company. Because of this, Berkshire's stake can increase with Berkshire doing nothing at all.
Buffett loves that when Apple buys back its shares, other investors have to sell, such as the index funds that own Apple. "They use their earnings to buy out our partners, which we're glad to see them sell out, too. The index funds have to sell. They bring the number of shares down."
Berkshire's stake in Apple might be relatively small right now. But as the company buys back stock, Berkshire's ownership percentage increases. For example, if Apple were to buy back about 3% of its outstanding shares this year (which isn't a big stretch), Berkshire's stake would increase from 5.8% of the tech giant to 6%, without investing any more money.
Berkshire's Apple stake is larger than any other component of its business, so even though the conglomerate owns a single-digit percentage in its stock portfolio, it makes sense to think of it as a business all by itself.
Finally, Buffett wrote in another recent annual letter that one of Berkshire's main competitive advantages over other conglomerates is its willingness to not own 100% of its businesses. With a profit so far of well over $100 billion on Apple, it's hard to argue against Buffett's logic.
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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*Stock Advisor returns as of May 8, 2023
Matthew Frankel, CFP® has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent annual meeting, CEO and billionaire investor Warren Buffett answered a question from a shareholder who was concerned with how big the company's Apple (NASDAQ: AAPL) investment had become. Buffett has spoken many times about the stickiness of Apple's customer base and how the company's phones and other products are considered essentials for its users. For example, if Apple were to buy back about 3% of its outstanding shares this year (which isn't a big stretch), Berkshire's stake would increase from 5.8% of the tech giant to 6%, without investing any more money.
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At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent annual meeting, CEO and billionaire investor Warren Buffett answered a question from a shareholder who was concerned with how big the company's Apple (NASDAQ: AAPL) investment had become. Buffett loves that when Apple buys back its shares, other investors have to sell, such as the index funds that own Apple. But as the company buys back stock, Berkshire's ownership percentage increases.
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At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent annual meeting, CEO and billionaire investor Warren Buffett answered a question from a shareholder who was concerned with how big the company's Apple (NASDAQ: AAPL) investment had become. Buffett has high praise for Apple Of course, Berkshire doesn't own 100% of Apple like it owns 100% of GEICO or any of its other 60+ subsidiaries. Buffett loves that when Apple buys back its shares, other investors have to sell, such as the index funds that own Apple.
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At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent annual meeting, CEO and billionaire investor Warren Buffett answered a question from a shareholder who was concerned with how big the company's Apple (NASDAQ: AAPL) investment had become. Buffett said "Apple is a better business. Why does Buffett like Apple so much?
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15893.0
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2023-05-11 00:00:00 UTC
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Should Schwab U.S. Large-Cap ETF (SCHX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-etf-schx-be-on-your-investing-radar-0
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $30.84 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.58%.
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 26.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.61% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF return is roughly 8.22% so far this year and is up about 4.74% in the last one year (as of 05/11/2023). In the past 52-week period, it has traded between $42.25 and $51.01.
The ETF has a beta of 1.01 and standard deviation of 19.14% for the trailing three-year period, making it a medium risk choice in the space. With about 760 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.46 billion in assets, SPDR S&P 500 ETF has $379.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
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15894.0
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2023-05-10 00:00:00 UTC
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3 Strong-Buy-Rated Big Tech Stocks with ‘Perfect 10’ Smart Scores
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AAPL
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https://www.nasdaq.com/articles/3-strong-buy-rated-big-tech-stocks-with-perfect-10-smart-scores
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nan
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nan
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The recent rise in big tech stocks is awe-inspiring. Last year, higher rates sent the broader tech sector rolling off a cliff. The more speculative or less profitable the stock, the greater the damage was. Now, the broader markets and tech scene are in recovery mode, but the magnitude of relief gains has not been even.
The bigger the market cap, the larger the gains have been in the tech scene. This makes sense, given the stronger balance sheets, profitability, growth prospects, and potential efficiency gains to be had as the broader economy begins to slump.
Therefore, in this piece, we'll check in with TipRanks' Comparison Tool to observe three impressive tech plays -- AAPL, GOOGL, and NVDA -- in the mega-cap universe that may be worth consideration.
Wall Street has each name at a Strong Buy, even after their sharp ricochets off their respective lows. These three stocks also have 'Perfect 10' Smart Scores, implying that they can outperform the market from here, according to TipRanks. Coincidentally, each tech behemoth has impressive hardware capabilities and upside potential from the AI boom.
Apple (NASDAQ:AAPL)
Apple is a tech juggernaut that's found a way higher after clocking in some very reasonable earnings results. Going into the report, Apple's shares looked pretty "peaky" after surging more than 32% off their January lows. Still, Apple rose over 4% on the earnings beat, likely causing many profit-takers to kick themselves.
Though there has been a valuation multiple expansion in recent months, I remain bullish. The firm looks to be on the cusp of a new product, and its expansion into India could pave the way for greater growth over the next five years.
Warren Buffett gave Apple some pretty high praise over the weekend, going as far as to call it the best business in Berkshire's portfolio. I'm in agreement. Apple has a lot going for it, with one of the best managers in the business and a product that's become more of a staple than a nice-to-have.
It's hard to tell what comes next after the iPhone. Regardless, Apple seems likely to take its fanbase to new waters. Whether we're talking about the next hardware release or new services (think fintech), Apple always seems to find a pathway higher.
Even at 29.1 times trailing price-to-earnings (P/E), I’m enthused by what could lie ahead. The growing services business and a potential mixed-reality headset may be on the radar of some analysts. However, it's what's not yet on any of our radars that may help Apple continue its upward march.
The hardware business, in particular, could have disruptive potential. As AI plays a more prominent role in our everyday lives, I'd look for Apple's Silicon neural engine (which helps Apple devices handle certain tasks faster and more efficiently) to be more of a difference maker.
What is the Price Target for AAPL Stock?
Apple stock comes in at a Strong Buy, with 23 Buys, four Holds, and just one Sell. The average AAPL stock price target of $182.56 entails a mere 5.4% gain from here.
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG)
Alphabet used to be the go-to play for AI. These days, the software behemoth seems to be in a rush to get a product out of the gate to match the likes of OpenAI's ChatGPT. Google has a lot of innovative AI talent behind the scenes. Still, it's up to Google to use AI to defend its turf in the search space.
It's not hard to imagine how AI will change the search market over the next few years. Fortunately for Google, it's ready to defend its search dominance, all while its other businesses (such as its Cloud business) look to gain ground over peers with some help from AI. Therefore, I’m bullish on GOOGL, even if the company is forced to play a bit of defense.
For now, it's ChatGPT that's sparking excitement, but it may or may not be ChatGPT that's the number-one consumer-facing chatbot a year or so from now. The near future still seems uncertain. Arguably, a top-competing product could come out of Google's pipeline.
Google's Bard "experiment" may be off to a mixed start. However, I do think Google is wise to be cautious, given the potential for regulatory backlash in the near future. By ensuring a smooth launch, Google can avoid further scrutiny from regulators, many of whom may already be setting their sights on the firm for its market dominance.
We're going to learn a lot about Google's AI plans today, with the big I/O event nearly underway. I'd look for new developments to boost the stock over the near and medium term.
What is the Price Target for GOOGL Stock?
Alphabet is also a Strong Buy, with 29 unanimous Buy ratings on the name — quite impressive! The average GOOGL stock price target of $129.50 implies a 18.7% gain from current levels.
Nvidia (NASDAQ:NVDA)
Finally, we have hardware play Nvidia, which has been on the hottest run of the tech stocks in this piece. The stock is up a scorching 100% year-to-date. Indeed, new highs seem inevitable, given recent momentum. A big chunk of the rally is courtesy of AI hype.
Though AI opens new doors for Nvidia, a pullback could be lying around the corner. It's not easy to bet against Nvidia, given its impressive position. However, I have to be bearish at these valuations as they make me uncomfortable. That said, I'm more than willing to reconsider at lower prices.
The stock trades at over 160 times trailing earnings, well above the semiconductor industry average. While AI enthusiasm could propel NVDA stock much higher from here, I'd avoid chasing it.
Letting it come back to you may be the best course of action, especially if a recession causes more rumbles in the market.
What is the Price Target for NVDA Stock?
Nvidia stock boasts a Strong Buy consensus rating, with 30 Buys, seven Holds, and one Sell rating assigned in the past three months. Nonetheless, the average NVDA stock price target of $286.94 implies 1.2% downside potential.
Conclusion
Big tech has been delivering big gains. Still, of the three stocks mentioned, Alphabet has the most upside potential, according to analysts. Further, it's the only stock to have all analysts recommending it as a Buy.
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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Therefore, in this piece, we'll check in with TipRanks' Comparison Tool to observe three impressive tech plays -- AAPL, GOOGL, and NVDA -- in the mega-cap universe that may be worth consideration. Apple (NASDAQ:AAPL) Apple is a tech juggernaut that's found a way higher after clocking in some very reasonable earnings results. What is the Price Target for AAPL Stock?
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Therefore, in this piece, we'll check in with TipRanks' Comparison Tool to observe three impressive tech plays -- AAPL, GOOGL, and NVDA -- in the mega-cap universe that may be worth consideration. Apple (NASDAQ:AAPL) Apple is a tech juggernaut that's found a way higher after clocking in some very reasonable earnings results. What is the Price Target for AAPL Stock?
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Therefore, in this piece, we'll check in with TipRanks' Comparison Tool to observe three impressive tech plays -- AAPL, GOOGL, and NVDA -- in the mega-cap universe that may be worth consideration. Apple (NASDAQ:AAPL) Apple is a tech juggernaut that's found a way higher after clocking in some very reasonable earnings results. What is the Price Target for AAPL Stock?
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Apple (NASDAQ:AAPL) Apple is a tech juggernaut that's found a way higher after clocking in some very reasonable earnings results. Therefore, in this piece, we'll check in with TipRanks' Comparison Tool to observe three impressive tech plays -- AAPL, GOOGL, and NVDA -- in the mega-cap universe that may be worth consideration. What is the Price Target for AAPL Stock?
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15895.0
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2023-05-10 00:00:00 UTC
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Corporate bond issuance picks up after slow April
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AAPL
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https://www.nasdaq.com/articles/corporate-bond-issuance-picks-up-after-slow-april
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nan
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nan
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By Matt Tracy
May 10 (Reuters) - Several of the world's largest companies raised billions of dollars in new debt this week and last, in a mini-resurgence of a primary corporate bond market that had been held back by the U.S. regional banking crisis and recession concerns.
On Monday, 11 companies led by iPhone maker Apple AAPL.O, wireless carrier T-Mobile TMUS.O and drugmaker Merck MRK.N, issued $22.55 billion in bonds. The sales followed a similar 11-deal flurry of debt sales on May 1 led by Facebook parent Meta Platforms META.O and Comcast CMCSA.O.
So far in May these and other high-grade companies have raised a total of $57.5 billion, on pace to beat last month's $65.7 billion, which was the slowest April in a decade, according to Informa Global Markets data.
"Corporate bond spreads have retraced from the widening we saw immediately post banking and initial banking failures, so companies are saying now's a good time to come," said Natalie Trevithick, head of investment grade credit strategy at investment management firm Payden & Rygel.
The average investment-grade bond spread on Tuesday was 149 basis points over Treasuries after reaching a high of 164 basis points on March 15, according to ICE BAML data .MERC0A0.
"This month we have seen a wave of issuance from large companies as they have cleared earnings blackouts and are facing a reasonably steady rate backdrop," said Blair Shwedo, head of investment grade trading at U.S Bank.
But spreads remained higher than a February low of 120 basis points, as uncertainty surrounds the direction of Federal Reserve monetary policy and lawmakers on Capitol Hill remain deadlocked over a bill to prevent default on trillions of dollars in U.S. government debt. .
Monday's supply was met with strong investor demand. The bonds received $61.25 billion in orders, almost triple the amount sought.
On Tuesday, however, just four high-grade companies sold new debt led by BP Capital Markets America [RIC:RIC:BPCMA.UL], while four others postponed plans, according to Informa data.
The companies also rushed out on Monday to get ahead of any further market volatility that could come after the release this week of the latest U.S inflation data, according to market participants.
But consumer price index data on Wednesday came in line with market expectations, which could lead to favorable conditions for new bond issuance.
"A worse than expected inflation report would complicate issuer plans to tap the market, however that risk has gone away with this morning’s data release," said Andrzej Skiba, head of BlueBay U.S. fixed income at RBC GAM.
"We see well over $30 billion of new issue supply next week in U.S. investment grade, with upside risk to that number if some of the M&A-related supply decides to tap the market," he said.
(Reporting by Matt Tracy; editing by Shankar Ramakrishnan and David Gregorio)
((Matt.Tracy@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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On Monday, 11 companies led by iPhone maker Apple AAPL.O, wireless carrier T-Mobile TMUS.O and drugmaker Merck MRK.N, issued $22.55 billion in bonds. By Matt Tracy May 10 (Reuters) - Several of the world's largest companies raised billions of dollars in new debt this week and last, in a mini-resurgence of a primary corporate bond market that had been held back by the U.S. regional banking crisis and recession concerns. "This month we have seen a wave of issuance from large companies as they have cleared earnings blackouts and are facing a reasonably steady rate backdrop," said Blair Shwedo, head of investment grade trading at U.S Bank.
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On Monday, 11 companies led by iPhone maker Apple AAPL.O, wireless carrier T-Mobile TMUS.O and drugmaker Merck MRK.N, issued $22.55 billion in bonds. By Matt Tracy May 10 (Reuters) - Several of the world's largest companies raised billions of dollars in new debt this week and last, in a mini-resurgence of a primary corporate bond market that had been held back by the U.S. regional banking crisis and recession concerns. On Tuesday, however, just four high-grade companies sold new debt led by BP Capital Markets America [RIC:RIC:BPCMA.UL], while four others postponed plans, according to Informa data.
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On Monday, 11 companies led by iPhone maker Apple AAPL.O, wireless carrier T-Mobile TMUS.O and drugmaker Merck MRK.N, issued $22.55 billion in bonds. By Matt Tracy May 10 (Reuters) - Several of the world's largest companies raised billions of dollars in new debt this week and last, in a mini-resurgence of a primary corporate bond market that had been held back by the U.S. regional banking crisis and recession concerns. So far in May these and other high-grade companies have raised a total of $57.5 billion, on pace to beat last month's $65.7 billion, which was the slowest April in a decade, according to Informa Global Markets data.
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On Monday, 11 companies led by iPhone maker Apple AAPL.O, wireless carrier T-Mobile TMUS.O and drugmaker Merck MRK.N, issued $22.55 billion in bonds. So far in May these and other high-grade companies have raised a total of $57.5 billion, on pace to beat last month's $65.7 billion, which was the slowest April in a decade, according to Informa Global Markets data. "A worse than expected inflation report would complicate issuer plans to tap the market, however that risk has gone away with this morning’s data release," said Andrzej Skiba, head of BlueBay U.S. fixed income at RBC GAM.
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15896.0
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2023-05-10 00:00:00 UTC
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US STOCKS-Nasdaq rallies as investors cheer inflation data, Alphabet
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-rallies-as-investors-cheer-inflation-data-alphabet
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nan
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nan
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By Carolina Mandl and Shristi Achar A
May 10 (Reuters) - The Nasdaq ended Wednesday at its highest intraday level in more than eight months, boosted by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout.
The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
"Markets reacted positively because they saw the inflation data as a small positive," said Michael Harris, president at hedge fund Quest Partners LLC. "The Fed is in a pause now. They've done their last rate hike and they're going to wait and see for the next couple of months."
The Nasdaq was helped by a 4.10% climb in AlphabetGOOGL.Oas the company rolled out more artificial intelligence for its core search product in response to competition from Microsoft Corp MSFT.O.
Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained 1.04% and 1.73%, respectively.
The rate-sensitive S&P 500 technology sector index .SPLRCT went up 1.22% and the communication services .SPLRCL rose 1.69%.
"The CPI is indicating some sort of relief in inflationary pressure. That would mean the Fed would be toward the end or already at the end of its interest rate cycle, and growth companies are most heavily affected by higher interest rates," said Kevin W. Philip, a partner at investment advisor Bel Air.
Growth companies rely more on borrowed money so they benefit from lower rates.
Fed funds futures traders are pricing in a pause in rate increases at the central bank's June meeting, and less than a 5% chance of another 25 basis point hike.
"The market is pricing in a Fed cut beginning this summer. While inflation is decelerating, it's not decelerating at a pace that would justify cutting the Fed funds rate anytime before the fourth quarter of 2023," said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
Indexes were choppy during the session, as investors digested the positive inflation print with concerns about the looming debt ceiling.
Talks on raising the U.S. federal government's $31.4 trillion debt ceiling entered a new phase on Wednesday as some areas of potential compromise emerged after Tuesday's White House meeting.
The Dow Jones Industrial Average .DJI fell 30.48 points, or 0.09%, to 33,531.33; the S&P 500 .SPX gained 18.47 points, or 0.45%, at 4,137.64; and the Nasdaq Composite .IXIC added 126.89 points, or 1.04%, at 12,306.44.
Volume on U.S. exchanges was 11.04 billion shares, compared with the 10.7 billion average for the full session over the last 20 trading days.
Regional bank shares extended declines from volatile sessions last week on concerns about the sector's health. PacWest Bancorp PACW.O and Zions Bancorporation ZION.O inched lower 0.49% and 2.74% respectively.
Oil and gas producer Occidental Petroleum Corp OXY.N fell 3.58% after its first-quarter earnings fell short of analysts' estimates.
Livent Corp LTHM.N rose 5.24% after Australian lithium miner Allkem Ltd AKE.AX agreed to merge with the U.S.-based chemical manufacturing firm to create a $10.6 billion firm.
Airbnb Inc ABNB.O lost 10.92% as the vacation rental booking company had fewer bookings and lower average daily rates in the second quarter.
Rivian Automotive RIVN.O jumped 1.80% after the electrical vehicle maker beat estimates for its first-quarter results and reiterated its annual production forecast.
Advancing issues outnumbered decliners on the NYSE by a 1.32-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favored advancers.
The S&P 500 posted 18 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 86 new highs and 152 new lows.
As goods inflation eases, services step in As goods inflation eases, services step inhttps://tmsnrt.rs/3NBTf3Z
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru, and Carolina Mandl, in New York; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((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.
|
Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained 1.04% and 1.73%, respectively. By Carolina Mandl and Shristi Achar A May 10 (Reuters) - The Nasdaq ended Wednesday at its highest intraday level in more than eight months, boosted by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained 1.04% and 1.73%, respectively. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. That would mean the Fed would be toward the end or already at the end of its interest rate cycle, and growth companies are most heavily affected by higher interest rates," said Kevin W. Philip, a partner at investment advisor Bel Air.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained 1.04% and 1.73%, respectively. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. That would mean the Fed would be toward the end or already at the end of its interest rate cycle, and growth companies are most heavily affected by higher interest rates," said Kevin W. Philip, a partner at investment advisor Bel Air.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained 1.04% and 1.73%, respectively. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March. Fed funds futures traders are pricing in a pause in rate increases at the central bank's June meeting, and less than a 5% chance of another 25 basis point hike.
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15897.0
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2023-05-10 00:00:00 UTC
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After Hours Most Active for May 10, 2023 : IEF, INTC, VZ, DIS, MSFT, TLT, T, U, CTLT, AAPL, ADCT, TTD
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-10-2023-%3A-ief-intc-vz-dis-msft-tlt-t-u-ctlt-aapl-adct-ttd
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -4.7 to 13,343.13. The total After hours volume is currently 76,944,590 shares traded.
The following are the most active stocks for the after hours session:
iShares 7-10 Year Treasury Bond ETF (IEF) is -0.02 at $99.68, with 3,413,012 shares traded. This represents a 7.79% increase from its 52 Week Low.
Intel Corporation (INTC) is unchanged at $29.97, with 3,346,411 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.04. INTC's current last sale is 98.26% of the target price of $30.5.
Verizon Communications Inc. (VZ) is -0.07 at $37.56, with 2,839,206 shares traded. VZ's current last sale is 88.38% of the target price of $42.5.
Walt Disney Company (The) (DIS) is -3.14 at $98.00, with 2,175,264 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.76. Smarter Analyst Reports: Disney+ to Launch Ad-Supported Subscription Offering
Microsoft Corporation (MSFT) is -0.09 at $312.22, with 2,167,359 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 $2.55. , following a 52-week high recorded in today's regular session.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.05 at $104.00, with 1,987,384 shares traded. This represents a 13.23% increase from its 52 Week Low.
AT&T Inc. (T) is unchanged at $17.04, with 1,969,911 shares traded. T's current last sale is 77.45% of the target price of $22.
Unity Software Inc. (U) is +2.86 at $31.60, with 1,934,177 shares traded. U's current last sale is 79% of the target price of $40.
Catalent, Inc. (CTLT) is -0.19 at $33.40, with 1,702,015 shares traded.CTLT is scheduled to provide an earnings report on 5/15/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.51 per share, which represents a 100 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.025 at $173.53, with 1,652,131 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".
ADC Therapeutics SA (ADCT) is -0.185 at $2.21, with 1,643,314 shares traded. ADCT's current last sale is 18.42% of the target price of $12.
The Trade Desk, Inc. (TTD) is +1.09 at $66.06, with 1,530,166 shares traded. As reported by Zacks, the current mean recommendation for TTD 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.
|
Apple Inc. (AAPL) is -0.025 at $173.53, with 1,652,131 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 7-10 Year Treasury Bond ETF (IEF) is -0.02 at $99.68, with 3,413,012 shares traded.
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Apple Inc. (AAPL) is -0.025 at $173.53, with 1,652,131 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 7-10 Year Treasury Bond ETF (IEF) is -0.02 at $99.68, with 3,413,012 shares traded.
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Apple Inc. (AAPL) is -0.025 at $173.53, with 1,652,131 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 76,944,590 shares traded.
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Apple Inc. (AAPL) is -0.025 at $173.53, with 1,652,131 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is unchanged at $17.04, with 1,969,911 shares traded.
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15898.0
|
2023-05-10 00:00:00 UTC
|
US STOCKS-U.S. stocks end mixed as investors cheer inflation data, Alphabet
|
AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-end-mixed-as-investors-cheer-inflation-data-alphabet
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nan
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nan
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By Carolina Mandl and Shristi Achar A
May 10 (Reuters) - The S&P 500 and Nasdaq indexes rose on Wednesday, helped by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout.
The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
"Markets reacted positively because they saw the inflation data as a small positive," said Michael Harris, president at hedge fund Quest Partners LLC. "The Fed is in a pause now. They've done their last rate hike and they're going to wait and see for the next couple of months."
The lower-than-expected inflation data drove the Nasdaq Composite Index .IXIC up as much as 1.17% to its highest intraday level in more than eight months.
The Nasdaq was helped by a climb in AlphabetGOOGL.Oas the company rolled out more artificial intelligence for its core search product in response to competition from Microsoft Corp MSFT.O.
Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained.
The rate-sensitive S&P 500 technology sector index .SPLRCT and the communication services .SPLRCL rose.
"The CPI is indicating some sort of relief in inflationary pressure. That would mean the Fed would be toward the end or already at the end of its interest rate cycle, and growth companies are most heavily affected by higher interest rates," said Kevin W. Philip, a partner at investment advisor Bel Air.
Growth companies rely more on borrowed money so they benefit from lower rates.
Fed funds futures traders are pricing in a pause in rate increases at the central bank's June meeting, and less than a 5% chance of another 25 basis point hike.
"The market is pricing in a Fed cut beginning this summer. While inflation is decelerating, it's not decelerating at a pace that would justify cutting the Fed funds rate anytime before the fourth quarter of 2023," said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
Indexes were choppy during the session, as investors digested the positive inflation print with concerns about the looming debt ceiling.
Talks on raising the U.S. federal government's $31.4 trillion debt ceiling entered a new phase on Wednesday as some areas of potential compromise emerged after Tuesday's White House meeting.
According to preliminary data, the S&P 500 .SPX gained 17.93 points, or 0.44%, to end at 4,137.10 points, while the Nasdaq Composite .IXIC gained 124.68 points, or 1.04%, to 12,304.23. The Dow Jones Industrial Average .DJI fell 33.45 points, or 0.10%, to 33,528.36.
Regional bank shares extended declines from volatile sessions last week on concerns about the sector's health. PacWest Bancorp PACW.O and Zions Bancorporation ZION.O inched lower.
Oil and gas producer Occidental Petroleum Corp OXY.N fell after its first-quarter earnings fell short of analysts' estimates.
Livent CorpLTHM.N rose after Australian lithium miner Allkem Ltd AKE.AX agreed to merge with the U.S.-based chemical manufacturing firm to create a $10.6 billion firm.
Airbnb Inc ABNB.O lost as the vacation rental booking company had fewer bookings and lower average daily rates in the second quarter.
Rivian Automotive RIVN.O jumped after the electrical vehicle maker beat estimates for its first-quarter results and reiterated its annual production forecast.
As goods inflation eases, services step in As goods inflation eases, services step inhttps://tmsnrt.rs/3NBTf3Z
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru, and Carolina Mandl, in New York; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((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.
|
Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained. By Carolina Mandl and Shristi Achar A May 10 (Reuters) - The S&P 500 and Nasdaq indexes rose on Wednesday, helped by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained. By Carolina Mandl and Shristi Achar A May 10 (Reuters) - The S&P 500 and Nasdaq indexes rose on Wednesday, helped by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout. According to preliminary data, the S&P 500 .SPX gained 17.93 points, or 0.44%, to end at 4,137.10 points, while the Nasdaq Composite .IXIC gained 124.68 points, or 1.04%, to 12,304.23.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. That would mean the Fed would be toward the end or already at the end of its interest rate cycle, and growth companies are most heavily affected by higher interest rates," said Kevin W. Philip, a partner at investment advisor Bel Air.
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Large-cap tech stocks including Apple Inc AAPL.O and Microsoft also gained. By Carolina Mandl and Shristi Achar A May 10 (Reuters) - The S&P 500 and Nasdaq indexes rose on Wednesday, helped by a slightly lower-than-expected increase in April inflation and Alphabet Inc's GOOGL.Olatest artificial intelligence rollout. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
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15899.0
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2023-05-10 00:00:00 UTC
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Notable Wednesday Option Activity: COST, AMZN, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-cost-amzn-aapl
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Costco Wholesale Corp (Symbol: COST), where a total of 20,894 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 130.1% of COST's average daily trading volume over the past month of 1.6 million shares. Particularly high volume was seen for the $460 strike put option expiring May 19, 2023, with 2,130 contracts trading so far today, representing approximately 213,000 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $460 strike highlighted in orange:
Amazon.com Inc (Symbol: AMZN) options are showing a volume of 694,637 contracts thus far today. That number of contracts represents approximately 69.5 million underlying shares, working out to a sizeable 102.4% of AMZN's average daily trading volume over the past month, of 67.8 million shares. Especially high volume was seen for the $110 strike call option expiring May 12, 2023, with 67,648 contracts trading so far today, representing approximately 6.8 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 562,757 contracts thus far today. That number of contracts represents approximately 56.3 million underlying shares, working out to a sizeable 99.1% of AAPL's average daily trading volume over the past month, of 56.8 million shares. Especially high volume was seen for the $175 strike call option expiring May 12, 2023, with 107,708 contracts trading so far today, representing approximately 10.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
For the various different available expirations for COST options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Institutional Holders of Medtronic PLC
Top Ten Hedge Funds Holding XCEM
TSN YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $175 strike call option expiring May 12, 2023, with 107,708 contracts trading so far today, representing approximately 10.8 million underlying shares of AAPL. Below is a chart showing AMZN's trailing twelve month trading history, with the $110 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 562,757 contracts thus far today. That number of contracts represents approximately 56.3 million underlying shares, working out to a sizeable 99.1% of AAPL's average daily trading volume over the past month, of 56.8 million shares.
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That number of contracts represents approximately 56.3 million underlying shares, working out to a sizeable 99.1% of AAPL's average daily trading volume over the past month, of 56.8 million shares. Below is a chart showing AMZN's trailing twelve month trading history, with the $110 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 562,757 contracts thus far today. Especially high volume was seen for the $175 strike call option expiring May 12, 2023, with 107,708 contracts trading so far today, representing approximately 10.8 million underlying shares of AAPL.
|
That number of contracts represents approximately 56.3 million underlying shares, working out to a sizeable 99.1% of AAPL's average daily trading volume over the past month, of 56.8 million shares. Below is a chart showing AMZN's trailing twelve month trading history, with the $110 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 562,757 contracts thus far today. Especially high volume was seen for the $175 strike call option expiring May 12, 2023, with 107,708 contracts trading so far today, representing approximately 10.8 million underlying shares of AAPL.
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Especially high volume was seen for the $175 strike call option expiring May 12, 2023, with 107,708 contracts trading so far today, representing approximately 10.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: For the various different available expirations for COST options, AMZN options, or AAPL options, visit StockOptionsChannel.com. Below is a chart showing AMZN's trailing twelve month trading history, with the $110 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 562,757 contracts thus far today.
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