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15900.0
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2023-05-10 00:00:00 UTC
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EU antitrust regulators seeking more info on Apple Pay
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AAPL
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https://www.nasdaq.com/articles/eu-antitrust-regulators-seeking-more-info-on-apple-pay
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nan
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nan
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By Foo Yun Chee
BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker.
The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices.
"We can confirm the sending of requests for information," a commission spokesperson said, while declining to provide details.
Apple declined to comment.
Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq.
Norwegian mobile payment app and complainant Vipps said, however, that alternatives to NFC are cumbersome and not competitive.
The commission's request for information to rivals and retailers is unusual as it comes three months after Apple defended itself at a Feb. 14 hearing.
The regulator, which can fine Apple up to 10% of its global turnover if found guilty of breaching antitrust rules, typically issues decisions after such hearings.
(Reporting by Foo Yun Chee; Editing by Leslie Adler)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq. The regulator, which can fine Apple up to 10% of its global turnover if found guilty of breaching antitrust rules, typically issues decisions after such hearings.
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By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The commission's request for information to rivals and retailers is unusual as it comes three months after Apple defended itself at a Feb. 14 hearing. (Reporting by Foo Yun Chee; Editing by Leslie Adler) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices. Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq.
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By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices. "We can confirm the sending of requests for information," a commission spokesperson said, while declining to provide details.
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15901.0
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2023-05-10 00:00:00 UTC
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US STOCKS-Nasdaq leads gains on Wall St on signs of easing inflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-gains-on-wall-st-on-signs-of-easing-inflation
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result.
The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.17% to its highest intraday level in more than eight months, with large-cap tech stocks including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.6% and 1%, respectively.
The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago and compared with expectations of a 5% increase. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
Fed funds futures traders are now pricing in a pause in rates in the central bank's June meeting, and less than a 10% chance of another 25 basis points hike. FEDWATCH
"There are some fairly encouraging signs underneath the surface when you look at the release. That should be viewed somewhat positively by markets, but muted to a certain extent by some of the risks...most notably the debt ceiling issue."
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.
At 12:07 p.m. ET, the Dow Jones Industrial Average .DJI was down 136.11 points, or 0.41%, at 33,425.70, the S&P 500 .SPX was up 2.17 points, or 0.05%, at 4,121.34, and the Nasdaq Composite .IXIC was up 69.54 points, or 0.57%, at 12,249.09.
The rate-sensitive S&P 500 technology sector index .SPLRCT rose 0.9%, while communication services .SPLRCL rose 0.2%.
Regional bank shares extended declines from volatile sessions last week on concerns about the sector's health. PacWest Bancorp PACW.O lost 2%, while Zions Bancorporation ZION.O and Western Alliance Bank WAL.N inched lower 1.8% and 0.2%, respectively.
Alphabet IncGOOGL.O gained 1.1% as the Google-parent was set to unveil more artificial intelligence in its products to answer the latest competition from Microsoft.
Oil and gas producer Occidental Petroleum CorpOXY.N fell 3.6% after its first-quarter earnings fell short of analysts' estimates.
Livent CorpLTHM.N added 5.4% 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 IncABNB.O lost 10% as the vacation rental booking company saw fewer bookings and lower average daily rates in the second quarter.
Rivian AutomotiveRIVN.O jumped 4.6% after the EV maker beat first-quarter results estimates and reiterated its annual production forecast.
Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE and by a 1.20-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and eight new lows, while the Nasdaq recorded 66 new highs and 101 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; Editing by Anil D'Silva and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.17% to its highest intraday level in more than eight months, with large-cap tech stocks including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.6% and 1%, respectively. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. 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.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.17% to its highest intraday level in more than eight months, with large-cap tech stocks including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.6% and 1%, respectively. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago and compared with expectations of a 5% increase.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.17% to its highest intraday level in more than eight months, with large-cap tech stocks including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.6% and 1%, respectively. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. ET, the Dow Jones Industrial Average .DJI was down 136.11 points, or 0.41%, at 33,425.70, the S&P 500 .SPX was up 2.17 points, or 0.05%, at 4,121.34, and the Nasdaq Composite .IXIC was up 69.54 points, or 0.57%, at 12,249.09.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.17% to its highest intraday level in more than eight months, with large-cap tech stocks including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.6% and 1%, respectively. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago and compared with expectations of a 5% increase.
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15902.0
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2023-05-10 00:00:00 UTC
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Dow Movers: TRV, CRM
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-trv-crm-1
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nan
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nan
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In early trading on Wednesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Salesforce registers a 54.1% gain.
And the worst performing Dow component thus far on the day is Travelers Companies, trading down 1.3%. Travelers Companies is lower by about 3.2% looking at the year to date performance.
Two other components making moves today are Amgen, trading down 1.0%, and Apple, trading up 0.7% on the day.
VIDEO: Dow Movers: TRV, CRM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Wednesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 1.3%. Travelers Companies is lower by about 3.2% looking at the year to date performance.
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In early trading on Wednesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Salesforce registers a 54.1% gain. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 1.3%.
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In early trading on Wednesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 1.3%. Two other components making moves today are Amgen, trading down 1.0%, and Apple, trading up 0.7% on the day.
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And the worst performing Dow component thus far on the day is Travelers Companies, trading down 1.3%. Travelers Companies is lower by about 3.2% looking at the year to date performance. VIDEO: Dow Movers: TRV, CRM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15903.0
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2023-05-10 00:00:00 UTC
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Ex-Dividend Reminder: Rockwell Automation, Apple and MAXIMUS
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AAPL
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-rockwell-automation-apple-and-maximus
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 5/12/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and MAXIMUS Inc. (Symbol: MMS) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. will pay its quarterly dividend of $1.18 on 6/12/23, Apple Inc will pay its quarterly dividend of $0.24 on 5/18/23, and MAXIMUS Inc. will pay its quarterly dividend of $0.28 on 5/31/23. As a percentage of ROK's recent stock price of $276.15, this dividend works out to approximately 0.43%, so look for shares of Rockwell Automation, Inc. to trade 0.43% lower — all else being equal — when ROK shares open for trading on 5/12/23. Similarly, investors should look for AAPL to open 0.14% lower in price and for MMS to open 0.35% lower, all else being equal.
Below are dividend history charts for ROK, AAPL, and MMS, showing historical dividends prior to the most recent ones declared.
Rockwell Automation, Inc. (Symbol: ROK):
Apple Inc (Symbol: AAPL):
MAXIMUS Inc. (Symbol: MMS):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.71% for Rockwell Automation, Inc., 0.55% for Apple Inc, and 1.40% for MAXIMUS Inc..
In Wednesday trading, Rockwell Automation, Inc. shares are currently down about 0.6%, Apple Inc shares are up about 1.1%, and MAXIMUS Inc. shares are up about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Metals Stocks You Can Buy Cheaper Than Insiders Did
ASTI Videos
KOP Historical PE Ratio
The views and 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 the universe of stocks we cover at Dividend Channel, on 5/12/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and MAXIMUS Inc. (Symbol: MMS) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAPL to open 0.14% lower in price and for MMS to open 0.35% lower, all else being equal. Below are dividend history charts for ROK, AAPL, and MMS, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/12/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and MAXIMUS Inc. (Symbol: MMS) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. (Symbol: ROK): Apple Inc (Symbol: AAPL): MAXIMUS Inc. (Symbol: MMS): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAPL to open 0.14% lower in price and for MMS to open 0.35% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 5/12/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and MAXIMUS Inc. (Symbol: MMS) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. (Symbol: ROK): Apple Inc (Symbol: AAPL): MAXIMUS Inc. (Symbol: MMS): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAPL to open 0.14% lower in price and for MMS to open 0.35% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 5/12/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and MAXIMUS Inc. (Symbol: MMS) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAPL to open 0.14% lower in price and for MMS to open 0.35% lower, all else being equal. Below are dividend history charts for ROK, AAPL, and MMS, showing historical dividends prior to the most recent ones declared.
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15904.0
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2023-05-10 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple, Amazon, Nvidia, Elf Beauty and Salesforce
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-amazon-nvidia-elf-beauty-and-salesforce
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nan
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nan
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For Immediate Release
Chicago, IL – May 10, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Amazon AMZN, Nvidia NVDA, Elf Beauty ELF and Salesforce CRM.
Finding the Next Double: 5 Factors to Consider
Every investor who tries their hand at Wall Street is looking for the next stock that will double. However, so few investors are successful in finding a winning stock, let alone holding one. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
Jesse Livermore once said, "Those who can both be right and sit tight are uncommon."
In an interview with Tony Robbins, Paul Tudor Jones said he shoots for a risk-to-reward ratio of 5:1. "Five to one means I'm risking one dollar to make 5."
Buffett proclaimed that "The stock market is a device to transfer money from the impatient to the patient."
Though the advice of running winners may sound evident on the surface, in practice, it is a different story for most investors. How can investors find the next big winner, and more importantly, how can they fight the human emotions of hope, fear, and greed and ride these winners?
Identify a stock in an uptrend: All else equal, it is easier to latch onto an already strong stock than it is to catch a bottom in a weak stock. Stocks like Apple or Amazon that doubled years ago went on to double several more times. In other words, strength begets strength.
Use moving averages: Moving averages can help you in various ways. For example, a bullish "golden cross" occurs when the "faster" 50-day moving average crosses above the "slower" 200-day moving average from below – signaling a bullish trend change. Nvidia, the current market leader, triggered this signal earlier this year.
Beyond getting you into the stock, the 50-day moving average can help you to stay in the stock for the bulk of a move. The 50-day moving average is an area where institutional investors like to "reload on stock". Thus, the strongest trends are contained within the 50-day moving average. If you can buy a stock above the 50-day moving average and hold until your average cost is below the moving average, you put yourself in a position for success. A good recent example is Elf Beauty.
Look for stocks with Zacks Rankings of 3 or better: The Zacks Rank grades stocks based on earnings estimates. Year-over-year, the stocks with rising earnings estimates have significantly outperformed the S&P 500 Index. By combining technicals and fundamentals, you begin to stack the odds in your favor.
Hone your entry points: It is much easier to hang onto a stock if you purchased it correctly. When entering a stock, there is no need to complicate the process. Find an up-trending stock that is consolidating and pulling back to the 50-day moving average. Buy as it breaks out of the consolidation – preferably on heavy volume. A real-time example of a stock trying to do this is Salesforce.
Manage your risk: Anyone who has invested in the stock market for more than a few days knows that you will not always pick winners. Legendary investor Ed Seykota once warned,"If you can't take a small loss, sooner or later, you will take the mother of all losses." Though taking losses is not something investors often talk about, it is a critical part of surviving over the long term and finding investing success. The good news is that if you keep your losses tight and run your winners, you can achieve great success with a hit rate of 40% or even lower.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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
Salesforce Inc. (CRM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – May 10, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Amazon AMZN, Nvidia NVDA, Elf Beauty ELF and Salesforce CRM. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report e.l.f. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
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For Immediate Release Chicago, IL – May 10, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Amazon AMZN, Nvidia NVDA, Elf Beauty ELF and Salesforce CRM. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report e.l.f. For Immediate Release Chicago, IL – May 10, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Amazon AMZN, Nvidia NVDA, Elf Beauty ELF and Salesforce CRM. Beyond getting you into the stock, the 50-day moving average can help you to stay in the stock for the bulk of a move.
|
For Immediate Release Chicago, IL – May 10, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Amazon AMZN, Nvidia NVDA, Elf Beauty ELF and Salesforce CRM. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report e.l.f. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
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15905.0
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2023-05-10 00:00:00 UTC
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Big U.S. firms adopt cautious tone on China recovery
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AAPL
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https://www.nasdaq.com/articles/big-u.s.-firms-adopt-cautious-tone-on-china-recovery
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nan
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nan
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May 10 (Reuters) - Several U.S. companies, including PepsiCo, Qualcomm and Cummins, struck a cautious note on their growth prospects in China, blaming what they said was a slower-than-expected recovery after the country lifted COVID curbs in December.
China's economy grew faster than expected in the first quarter but remarks from American companies with substantial operations in China suggest that demand has not returned to pre-pandemic levels.
In April, China's imports contracted sharply, underscoring signs of weak domestic demand as a battered property market, worries over job stability and global economic uncertainty kept shoppers wary.
"China is getting better, but slowly," PepsiCo PEP.O Chief Financial Officer Hugh Johnston told Reuters late last month.
"We grew mid-single digits in China, which had previously been a double-digit growth market for us pre-pandemic. I think it's going to take some quarters before it really gets back to where it was before."
Rival Coca-Cola KO.N echoed the sentiment.
Starbucks, the world's largest coffeehouse, posted a 3% rise in China comparable sales in its second quarter, but said growth in average weekly sales will be at a more moderate pace in the second half of the year.
Cosmetic maker Estee Lauder Cos Inc EL.N last week forecast weaker sales and profit for the year than previously estimated, blaming slow recovery at duty-free and travel destinations including China.
"Consumer confidence remains weak and shaken because many Chinese faced job and salary cuts in 2022 and Chinese New Year bonuses in 2023 were low," said Shaun Rein, managing director at China Market Research Group.
"The result is Chinese are trading down: think Luckin Coffee over Starbucks, Anta over Adidas. (Consumers) are looking for good value and cheap product lines and cutting big ticket items like cars and houses."
Still, a rapid recovery in domestic travel demand propped up sales at hotels.
Marriott International Inc MAR.O reported better-than-expected quarterly results last week as revenue per available room in mainland China recovered to 2019 levels.
Europe's biggest hotel group Accor ACCP.PA has also said China saw a clear acceleration in the quarter, especially after the Lunar New Year holidays.
NO SUSTAINED IMPROVEMENT
Apple Inc AAPL.O in its latest quarterly report said sales in China fell 2.9%. Chipmaker Qualcomm QCOM.O, which forecast current-quarter results below estimates, said, "We have not seen evidence of meaningful recovery (in China) and are not incorporating improvements into our planning assumptions."
Truck engine maker Cummins CMI.N said truckmakers in China were ramping production to restock inventory but the company was "not yet seeing signs of sustained improvement."
Car maker General Motors GM.N, which faces stiff competition from domestic brands in China's crowded auto market, said it did not expect an improvement in its income from the country until the second half.
"China will be a growth driver for many multi-national companies but will not be at the high growth rates many analysts predict," China Market Research's Rein said.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Anil D'Silva)
((Aishwarya.Venugopal@thomsonreuters.com; within U.S. +1-646-223-8780; outside U.S. +91 80 6749 2830;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O in its latest quarterly report said sales in China fell 2.9%. May 10 (Reuters) - Several U.S. companies, including PepsiCo, Qualcomm and Cummins, struck a cautious note on their growth prospects in China, blaming what they said was a slower-than-expected recovery after the country lifted COVID curbs in December. In April, China's imports contracted sharply, underscoring signs of weak domestic demand as a battered property market, worries over job stability and global economic uncertainty kept shoppers wary.
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Apple Inc AAPL.O in its latest quarterly report said sales in China fell 2.9%. May 10 (Reuters) - Several U.S. companies, including PepsiCo, Qualcomm and Cummins, struck a cautious note on their growth prospects in China, blaming what they said was a slower-than-expected recovery after the country lifted COVID curbs in December. Cosmetic maker Estee Lauder Cos Inc EL.N last week forecast weaker sales and profit for the year than previously estimated, blaming slow recovery at duty-free and travel destinations including China.
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Apple Inc AAPL.O in its latest quarterly report said sales in China fell 2.9%. China's economy grew faster than expected in the first quarter but remarks from American companies with substantial operations in China suggest that demand has not returned to pre-pandemic levels. Starbucks, the world's largest coffeehouse, posted a 3% rise in China comparable sales in its second quarter, but said growth in average weekly sales will be at a more moderate pace in the second half of the year.
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Apple Inc AAPL.O in its latest quarterly report said sales in China fell 2.9%. Cosmetic maker Estee Lauder Cos Inc EL.N last week forecast weaker sales and profit for the year than previously estimated, blaming slow recovery at duty-free and travel destinations including China. "Consumer confidence remains weak and shaken because many Chinese faced job and salary cuts in 2022 and Chinese New Year bonuses in 2023 were low," said Shaun Rein, managing director at China Market Research Group.
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15906.0
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2023-05-10 00:00:00 UTC
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US STOCKS-Futures dip as focus shifts to inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-dip-as-focus-shifts-to-inflation-data
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nan
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nan
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By Shreyashi Sanyal
May 10 (Reuters) - U.S. stock index futures dipped on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve's efforts were successful in cooling rising prices.
The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
The Labor Department report will be released at 0830 ET (1230 GMT). "If CPI comes in hot, coupled with a stable market, decent earnings and stable jobs, it may not look good for the Fed's future actions," said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.
"The direction of rates seems to depend on economic data again, the quasi-banking crisis and liquidity crunch hasn't yet been an active factor that changes Fed course."
The odds favoring a rate cut anytime soon fell after a strong U.S. payrolls report on Friday, with traders now expecting the central bank to hold rates at 5-5.25% till at least July.
Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading.
Yields on short-dated U.S. Treasury bills rose after discussions in Washington over raising the U.S. debt ceiling continued. US/
At 6:51 a.m. ET, Dow e-minis 1YMcv1 were down 62 points, or 0.18%, S&P 500 e-minis EScv1 were down 7.25 points, or 0.18%, and Nasdaq 100 e-minis NQcv1 were down 25.25 points, or 0.19%.
Shares of regional banks were largely mixed after a few volatile sessions from last week amid concerns about the health of the sector. PacWest Bancorp PACW.O fell 2.5%, while Zions Bancorporation ZION.O and Western Alliance Bank WAL.N inched up 0.7% and 0.6%, respectively.
Oil and gas producer Occidental Petroleum Corp OXY.N fell 1.5% after its first-quarter earnings fell short of analysts' estimates.
Livent Corp LTHM.N reversed earlier gains to trade 1.6% lower after Australian lithium miner Allkem Ltd AKE.AX agreed to buy the U.S.-based chemical manufacturing firm to create a $10.6 billion firm.
Airbnb IncABNB.O lost 13.5% as the vacation rental booking company saw fewer bookings and lower average daily rates in the second quarter.
S&P 500 Indexhttps://tmsnrt.rs/3OdX3fd
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. By Shreyashi Sanyal May 10 (Reuters) - U.S. stock index futures dipped on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve's efforts were successful in cooling rising prices. "The direction of rates seems to depend on economic data again, the quasi-banking crisis and liquidity crunch hasn't yet been an active factor that changes Fed course."
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. By Shreyashi Sanyal May 10 (Reuters) - U.S. stock index futures dipped on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve's efforts were successful in cooling rising prices. The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month. The odds favoring a rate cut anytime soon fell after a strong U.S. payrolls report on Friday, with traders now expecting the central bank to hold rates at 5-5.25% till at least July.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. By Shreyashi Sanyal May 10 (Reuters) - U.S. stock index futures dipped on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve's efforts were successful in cooling rising prices. The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
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15907.0
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2023-05-10 00:00:00 UTC
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Crypto vs Stocks: Which is the Better Investment in 2023? We Compare 3 of Each
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AAPL
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https://www.nasdaq.com/articles/crypto-vs-stocks%3A-which-is-the-better-investment-in-2023-we-compare-3-of-each
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Even though I am making a “crypto vs. stock investment comparison,” I would like to make it clear that in no way should cryptocurrencies substitute stocks in your portfolio. Instead, both stocks and cryptos should go hand-in-hand, with stocks taking up the majority of your portfolio and cryptos taking up to 5%, or 15% if you are young. That’s because the stock market has been time-tested for more than a century, while cryptos haven’t even been around for 15 years. There’s no underlying business with most cryptos either, and there’s no guarantee that the ROI will remain consistent.
With that clear, I will be comparing the top three stocks (U.S. only) with the top three cryptos (excluding stablecoins) by market capitalization.
Let’s see what would’ve happened if you had invested $1000 into the following stocks and their returns for various time periods:
AAPL Apple $171.77
MSFT Microsoft $307.00
GOOG Alphabet-C $107.94
GOOGL Alphabet-A $107.35
BTC-USD Bitcoin $27,572.60
ETH-USD Ethereum $1,843.39
BNB-USD Binance Coin $1.0002
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) is the world’s largest company, and it’s no surprise that the tech giant’s stock is often the first pick for both novice and experienced investors. Most equity funds also have AAPL as their largest holding since the company’s powerful brand allows for a lot of pricing power and its financials have consistently appreciated.
If you invested $1,000 into the company 10 years back, you’d have $12,501.62 right now. That’s a 1,150% increase, 28.7% annual for your annual rate of return (ARR).
If you invested $1,000 into AAPL stock five years ago, you’d have $3,960.5, a 296% increase and an ARR of 31.57%.
If you invested $1,000 into Apple a year ago, you’d have $1,108.18. That’s still up double digits at 10.8% despite all the macroeconomic headwinds.
You’d only be making a slight loss here in the low single digits if you invested during the peaks in December 2021 or March 2022.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) has been surging ahead recently as it is contesting all the other tech giants for market share in all tech-related segments. Indeed, it has seen success doing so as its Azure product slowly chips away at Amazon’s (NASDAQ:AMZN) AWS, while the company’s partnership with OpenAI has put Alphabet (NASDAQ:GOOG, GOOGL) into panic mode. Whatever way you put it, Microsoft is firing on all cylinders, and there’s tremendous potential for the company, especially as it spearheads the development of artificial intelligence.
A $1,000 investment into MSFT 10 years back would turn into $11,111.79 right now, a 1,011% return with an ARR of 27.15%.
If you did that five years back, that $1000 would now be $3,437.80, yielding a total 243.78% return, a 27.9% ARR.
If you did the same a year back, you’d have $1,134.64, yielding a 13.46% increase.
However, buying MSFT at its peak back in November 2021 would yield a 10% loss.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet is the third largest U.S. company by market cap, with a solid foothold in the tech industry, which makes it a prime candidate to be analyzed in the crypto vs. stock investment comparison. It owns two of the most visited websites worldwide — Google and YouTube — with advertising making up most of its revenue. The company has been trying to diversify but has been facing headwinds due to strong competition and a tough economic environment.
For starters, the advertising business has been weak in recent quarters due to businesses cutting back on marketing expenditure. Meanwhile, efforts to diversify also has been arduous, especially with two of the hottest segments in 2023. Google Cloud has lagged behind AWS and Azure while it is struggling to beat OpenAI’s GPT-4 with its Bard chatbot.
Still, I see a bright future ahead with Google as it has the tools necessary to catch up to its peers.
A $1000 investment into GOOGL stock 10 years back would be worth $5,081.45 right now. That’s a 408.15% return, an ARR of 17.6%, all of which are significantly lower than other tech peers.
If you did the same five years ago, you’d have $2,050.81. A 105.08% total increase, with an ARR of 15.39%.
Surprisingly, investing $1,000 a year back would only leave you with $931.09, a 6.9% loss. That underperforms not only its tech peers, but the broader market as a whole.
Even worse, buying at its peak in November 2021 would only leave you with $723.65, a 27.64% loss.
That said, I believe Alphabet offers a lot of value right now at its current trough. I expect it to outperform the market when the company’s growth trajectory becomes clearer to investors.
Now let’s look into the top three cryptos, excluding stablecoins.
Bitcoin (BTC)
Source: Sittipong Phokawattana / Shutterstock.com
As we continue our crypto vs. stock investment comparison, we’d be remiss not to begin the crypto evaluation with Bitcoin (BTC-USD). This is the stalwart of the crypto market and among the handful of cryptos that I’d truly consider to be safe investments. It may not be flashy or have lots of Web 3.0 utility, but the blockchain does the job, and it is increasingly becoming a widely-accepted payment method, especially as layer-2 solutions become more popular.
The primary driver of the cryptocurrency’s value is its tokenomics. Bitcoin’s four-year halving cycle will continue to reduce its supply while BTC’s popularity keeps demand high. That has caused the price to increase exponentially so far.
Accordingly, a $1,000 investment 10 years back into this crypto would turn into $245,167.70 today. That’s an eye-watering 24,416.77% gain, with an ARR of 2,439%.
If you did that five years back, you’d have $2,977.50. A 197.75% gain, with an ARR of 39.3%.
However, a $1,000 investment into BC last year would return an 8.24% loss, leaving you with just $917.
If you bought Bitcoin at its peak, you’d be left with just $428.
Ethereum (ETH)
Source: shutterstock.com/BT Side
Ethereum (ETH-USD) is arguably the best cryptocurrency to buy if you’re looking to balance risk and reward. The Ethereum blockchain is packed with utility and leads development in the Web 3.0 sector. This blockchain contains many of the top crypto metaverse projects and is the single-biggest ecosystem for smart contract-based tokens, including non-fungible tokens (NFTs). There are also regular upgrades to the blockchain to improve its scalability and speed.
Regardless, it is a relatively new project, at least when compared to BTC. The price data for Ethereum only goes back to late 2015. With that in mind, I’ll only be looking at the 5-year, 1-year, and peak-to-trough returns/losses.
A $1,000 investment into Ethereum five years back would yield a 146.82% gain, taking your capital to $2,468.20. That’s a 29% ARR.
If you did that a year ago, you’d make a 17.3% loss, leaving you with $827.
Betting $1,000 during ETH’s peak would incur a 60.4% loss, leaving you with $396.
Binance Coin (BNB)
Source: Shutterstock
Binance Coin (BNB-USD) is the third-largest cryptocurrency by market cap if you exclude stablecoins. It is the native currency of the Binance ecosystem and the Binance exchange, the largest worldwide. The exchange has proven to be quite strong in the face of the FTX collapse and the subsequent mass withdrawals.
The price history of the crypto only goes back to July 2017, at its launch, and I consider it to be riskier than its decentralized peers who aren’t subject to the risks that centralized exchanges face.
Still, a $1,000 investment five years ago would turn into $21,364.10 today, with a 2,036.41% return. That’s an ARR of 409%.
Surprisingly, you’d still be up 4.4% if you invested the same amount a year ago, turning it into $1,044.
But if you bought at the peak in November 2021, you’d be left with $484, with a 51.6% loss
Conclusion
In summation, in the crypto vs stock investment comparison, cryptocurrencies have indeed outperformed stocks in the very long run due to their smaller market capitalizations. However, as the crypto industry has grown to be worth hundreds of billions, we’re seeing that sort of growth fade away. Starting with a five-year timeframe, the top stocks have yielded similar returns with significantly less downside risk. The only exception here is Binance, which has likely exhausted its growth potential for the near term with a market cap of $49 billion.
With that in mind, putting a small portion of your portfolio into a mix of big and small crypto projects could pay off greatly. But I don’t expect any of the top cryptos to outperform stocks in the long run, at least not by a considerable margin. The “past performance is no guarantee of future results” quote fits perfectly here.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
The post Crypto vs Stocks: Which is the Better Investment in 2023? We Compare 3 of Each 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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Let’s see what would’ve happened if you had invested $1000 into the following stocks and their returns for various time periods: AAPL Apple $171.77 MSFT Microsoft $307.00 GOOG Alphabet-C $107.94 GOOGL Alphabet-A $107.35 BTC-USD Bitcoin $27,572.60 ETH-USD Ethereum $1,843.39 BNB-USD Binance Coin $1.0002 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and it’s no surprise that the tech giant’s stock is often the first pick for both novice and experienced investors. Most equity funds also have AAPL as their largest holding since the company’s powerful brand allows for a lot of pricing power and its financials have consistently appreciated. If you invested $1,000 into AAPL stock five years ago, you’d have $3,960.5, a 296% increase and an ARR of 31.57%.
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Let’s see what would’ve happened if you had invested $1000 into the following stocks and their returns for various time periods: AAPL Apple $171.77 MSFT Microsoft $307.00 GOOG Alphabet-C $107.94 GOOGL Alphabet-A $107.35 BTC-USD Bitcoin $27,572.60 ETH-USD Ethereum $1,843.39 BNB-USD Binance Coin $1.0002 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and it’s no surprise that the tech giant’s stock is often the first pick for both novice and experienced investors. Most equity funds also have AAPL as their largest holding since the company’s powerful brand allows for a lot of pricing power and its financials have consistently appreciated. If you invested $1,000 into AAPL stock five years ago, you’d have $3,960.5, a 296% increase and an ARR of 31.57%.
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Let’s see what would’ve happened if you had invested $1000 into the following stocks and their returns for various time periods: AAPL Apple $171.77 MSFT Microsoft $307.00 GOOG Alphabet-C $107.94 GOOGL Alphabet-A $107.35 BTC-USD Bitcoin $27,572.60 ETH-USD Ethereum $1,843.39 BNB-USD Binance Coin $1.0002 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and it’s no surprise that the tech giant’s stock is often the first pick for both novice and experienced investors. Most equity funds also have AAPL as their largest holding since the company’s powerful brand allows for a lot of pricing power and its financials have consistently appreciated. If you invested $1,000 into AAPL stock five years ago, you’d have $3,960.5, a 296% increase and an ARR of 31.57%.
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If you invested $1,000 into AAPL stock five years ago, you’d have $3,960.5, a 296% increase and an ARR of 31.57%. Let’s see what would’ve happened if you had invested $1000 into the following stocks and their returns for various time periods: AAPL Apple $171.77 MSFT Microsoft $307.00 GOOG Alphabet-C $107.94 GOOGL Alphabet-A $107.35 BTC-USD Bitcoin $27,572.60 ETH-USD Ethereum $1,843.39 BNB-USD Binance Coin $1.0002 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and it’s no surprise that the tech giant’s stock is often the first pick for both novice and experienced investors. Most equity funds also have AAPL as their largest holding since the company’s powerful brand allows for a lot of pricing power and its financials have consistently appreciated.
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15908.0
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2023-05-10 00:00:00 UTC
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Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-broad-market-index-etf-fndb-a-strong-etf-right-now-7
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nan
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The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Charles Schwab, and has been able to amass over $483.57 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Russell RAFI US Index.
The Russell RAFI US Index measures the performance of the constituent companies by fundamental overall company scores.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.25%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.01%.
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.
Representing 16.90% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.15% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
FNDB's top 10 holdings account for about 18.66% of its total assets under management.
Performance and Risk
The ETF return is roughly 2.58% so far this year and was up about 2.39% in the last one year (as of 05/10/2023). In the past 52-week period, it has traded between $47.13 and $56.94.
FNDB has a beta of 1.02 and standard deviation of 18.87% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1738 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Broad Market Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.45 billion in assets, iShares Core S&P U.S. Value ETF has $13.13 billion. DFAT has an expense ratio of 0.28% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.15% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Representing 16.90% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.15% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.15% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.15% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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15909.0
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2023-05-10 00:00:00 UTC
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US STOCKS-Futures lower as focus shifts to inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-lower-as-focus-shifts-to-inflation-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures dip: Dow 0.10%, S&P 0.11%, Nasdaq 0.16%
May 10 (Reuters) - U.S. stock index futures were lower on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve was successful in bringing down rising prices.
The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month. The Labor Department report will be released at 0830 ET (1230 GMT). "If CPI comes in hot, coupled with a stable market, decent earnings and stable jobs, it may not look good for the Fed's future actions," said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.
"The direction of rates seems to depend on economic data again, the quasi-banking crisis and liquidity crunch hasn't yet been an active factor that changes Fed course."
The odds favoring a rate cut anytime soon fell after a strong U.S. payrolls report on Friday, with traders now expecting the central bank to hold rates at 5-5.25% till at least July.
Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading.
Yields on short-dated U.S. Treasury bills rose after discussions in Washington over raising the U.S. debt ceiling continued.
At 5:34 a.m. ET, Dow e-minis 1YMcv1 were down 34 points, or 0.1%, S&P 500 e-minis EScv1 were down 4.5 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 21.5 points, or 0.16%.
Oil and gas producer Occidental Petroleum Corp OXY.N fell 1.5% after its first-quarter earnings fell short of analysts' estimates.
Livent Corp LTHM.N rose 4.3% after Australian lithium miner Allkem Ltd AKE.AX agreed to buy the U.S.-based chemical manufacturing firm to create a $10.6 billion firm.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. "The direction of rates seems to depend on economic data again, the quasi-banking crisis and liquidity crunch hasn't yet been an active factor that changes Fed course."
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. Futures dip: Dow 0.10%, S&P 0.11%, Nasdaq 0.16% May 10 (Reuters) - U.S. stock index futures were lower on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve was successful in bringing down rising prices. The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. Futures dip: Dow 0.10%, S&P 0.11%, Nasdaq 0.16% May 10 (Reuters) - U.S. stock index futures were lower on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve was successful in bringing down rising prices. The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
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Large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, dipped about 0.4% each in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures dip: Dow 0.10%, S&P 0.11%, Nasdaq 0.16% May 10 (Reuters) - U.S. stock index futures were lower on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve was successful in bringing down rising prices.
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15910.0
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2023-05-10 00:00:00 UTC
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3 Chip Stocks That Crushed Earnings and Are Just Getting Started
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AAPL
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https://www.nasdaq.com/articles/3-chip-stocks-that-crushed-earnings-and-are-just-getting-started
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last month, I wrote a piece on the three best chip stocks with growth potential for long-term investors. In it, I noted the importance of semiconductors in all aspects of our lives, as well as their role in creating new, more powerful technologies in areas such as cloud computing and artificial intelligence (AI).
Despite the crucial role they play, chip companies were battered and bruised in 2022. The iShares Semiconductor ETF (NASDAQ:SOXX) plunged 35% last year. The reasons for the sharp sell-off in chip companies included weakness in consumer electronic sales following a pandemic-related surge and new restrictions on chip exports to China. This led to some less-than-stellar earnings reports and guidance.
However, chip stocks are once again on the rebound, with SOXX up 18% year to date. The renewed interest in chip stocks is being driven in part by the return of the risk-on trade, but also by better-than-expected earnings reports from some of the best chip stocks to buy now.
Here are three that crushed earnings and are just getting started.
NVDA Nvidia $285.71
AMD Advanced Micro Devices $95.06
TSM Taiwan Semiconductor Manufacturing $85.04
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) is the one name on this list of best chip stocks to buy now that has yet to report this earnings season. The maker of advanced chips that are used in AI applications, video games and cloud computing is scheduled to announce first-quarter results on May 24.
On Feb. 22, Nvidia reported better-than-expected Q4 2022 results, causing the stock to pop more than 14% in a single day. This strength was driven by growth in Nvidia’s data center business, which includes AI chips. Revenue for the segment was up 11% from a year ago to $3.62 billion.
Q4 adjusted earnings per share (EPS) of 88 cents compared with a consensus estimate of 81 cents. Revenue of $6.05 billion came in slightly ahead of expectations of $6 billion. While both revenue and net income were down on a year-over-year basis, investors seemed cheered by the company’s first-quarter sales guidance of $6.5 billion, which came in above expectations of $6.33 billion, as well as Nvidia’s bullish outlook on AI.
“AI adoption is at an inflection point,” Chief Executive Officer (CEO) Jensen Huang said on the earnings conference call. “OpenAI’s ChatGPT has captured interest worldwide, allowing people to experience AI firsthand, showing what’s possible with generative AI.”
NVDA stock is up 97% so far this year but could continue to rally based on its central role in powering AI and other cutting-edge technologies. A number of analysts increased their price targets for the stock following Nvidia’s Q4 earnings beat. While their median price target of $300 is less than 5% above the current share price, another earning beat later this month could spur a rally and a fresh round of analyst upgrades.
Advanced Micro Devices (AMD)
Source: Joseph GTK / Shutterstock.com
On May 2, Advanced Micro Devices (NASDAQ:AMD) reported first-quarter earnings that beat the consensus estimate on the top and bottom lines. Adjusted earnings of 60 cents per share were 4 cents better than expected. Meanwhile, revenue of $5.35 billion beat by $50 million despite being down 9% from a year ago.
Yet, the stock sold off following the report, dropping 9% in a single day. Investors seemed displeased with management’s sales guidance for the second quarter. It expects to generate $5.3 billion in revenue versus the $5.48 billion Wall Street had penciled in.
Weakness in the PC sector has weighed on AMD’s results. However, CEO Lisa Su said the company expects “growth in the second half of the year as the PC and server markets strengthen.”
The post-earnings slump in AMD shares didn’t last long. On May 4, the stock rallied following news the company is reportedly joining forces with Microsoft (NASDAQ:MSFT) to develop new AI chips to better compete with Nvidia in the space.
While the companies declined to comment on the report, an AI push could be a boon to AMD’s future earnings, making it less reliant on the PC and server markets. It could also continue to propel shares, which are up 48% year to date, higher.
Taiwan Semiconductor Manufacturing (TSM)
Source: sdx15 / Shutterstock.com
Taiwan Semiconductor Manufacturing (NYSE:TSM), or TSMC as it is popularly known, reported better-than-expected Q1 net income of $6.8 billion on April 20. Management said it expected the PC market to improve in the second half of the year and that it remained committed to spending up to $36 billion on upgrades to expand its capacity this year. The stock closed 2.4% higher on the day.
TSMC is a major supplier to Nvidia, Advanced Micro Devices and Apple (NASDAQ:AAPL), manufacturing some of the world’s most advanced chips. Management expects demand to pick up in the latter half of 2022 as more companies begin to utilize artificial intelligence.
The company is building a new $40 billion foundry operation in Arizona. This should help it meet rising demand for chips.
Up 14% year to date, TSM stock has lagged its sector despite being the largest and arguably most important chip company in the world. I wouldn’t expect this underperformance to continue for long, though.
On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 3 Chip Stocks That Crushed Earnings and Are Just Getting Started 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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TSMC is a major supplier to Nvidia, Advanced Micro Devices and Apple (NASDAQ:AAPL), manufacturing some of the world’s most advanced chips. However, CEO Lisa Su said the company expects “growth in the second half of the year as the PC and server markets strengthen.” The post-earnings slump in AMD shares didn’t last long. On May 4, the stock rallied following news the company is reportedly joining forces with Microsoft (NASDAQ:MSFT) to develop new AI chips to better compete with Nvidia in the space.
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TSMC is a major supplier to Nvidia, Advanced Micro Devices and Apple (NASDAQ:AAPL), manufacturing some of the world’s most advanced chips. NVDA Nvidia $285.71 AMD Advanced Micro Devices $95.06 TSM Taiwan Semiconductor Manufacturing $85.04 Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) is the one name on this list of best chip stocks to buy now that has yet to report this earnings season. Advanced Micro Devices (AMD) Source: Joseph GTK / Shutterstock.com On May 2, Advanced Micro Devices (NASDAQ:AMD) reported first-quarter earnings that beat the consensus estimate on the top and bottom lines.
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TSMC is a major supplier to Nvidia, Advanced Micro Devices and Apple (NASDAQ:AAPL), manufacturing some of the world’s most advanced chips. The renewed interest in chip stocks is being driven in part by the return of the risk-on trade, but also by better-than-expected earnings reports from some of the best chip stocks to buy now. NVDA Nvidia $285.71 AMD Advanced Micro Devices $95.06 TSM Taiwan Semiconductor Manufacturing $85.04 Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) is the one name on this list of best chip stocks to buy now that has yet to report this earnings season.
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TSMC is a major supplier to Nvidia, Advanced Micro Devices and Apple (NASDAQ:AAPL), manufacturing some of the world’s most advanced chips. NVDA Nvidia $285.71 AMD Advanced Micro Devices $95.06 TSM Taiwan Semiconductor Manufacturing $85.04 Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) is the one name on this list of best chip stocks to buy now that has yet to report this earnings season. While both revenue and net income were down on a year-over-year basis, investors seemed cheered by the company’s first-quarter sales guidance of $6.5 billion, which came in above expectations of $6.33 billion, as well as Nvidia’s bullish outlook on AI.
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15911.0
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2023-05-10 00:00:00 UTC
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Apple Unveils Final Cut Pro, Logic Pro For IPad For Video, Music Creators
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-final-cut-pro-logic-pro-for-ipad-for-video-music-creators
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nan
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(RTTNews) - Tech major Apple unveiled Final Cut Pro and Logic Pro for iPad with powerful features to deliver the ultimate mobile studio for video and music creators.
Beginning Tuesday, May 23, Final Cut Pro and Logic Pro for iPad will be available on the App Store as subscriptions.
Final Cut Pro and Logic Pro for iPad will each be available on the App Store for $4.99 per month or $49 per year with a one-month free trial.
The compny noted that these Pro apps bring all-new touch interfaces that allow users to enhance their workflows with the immediacy and intuitiveness of Multi-Touch.
Final Cut Pro for iPad offers a powerful set of tools for video creators to record, edit, finish, and share, all from one portable device. Further, Logic Pro for iPad for professional music creation comes with a complete collection of sophisticated tools for songwriting, beat making, recording, editing, and mixing.
Final Cut Pro is compatible with M1 chip iPad models or later, and Logic Pro will be available on A12 Bionic chip iPad models or later. Apple noted that Final Cut Pro for iPad and Logic Pro for iPad require iPadOS 16.4.
Bob Borchers, Apple's vice president of Worldwide Product Marketing, said, "We're excited to introduce Final Cut Pro and Logic Pro for iPad, allowing creators to unleash their creativity in new ways and in even more places. With a powerful set of intuitive tools designed for the portability, performance, and touch-first interface of iPad, Final Cut Pro and Logic Pro deliver the ultimate mobile studio."
The views and 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 compny noted that these Pro apps bring all-new touch interfaces that allow users to enhance their workflows with the immediacy and intuitiveness of Multi-Touch. Final Cut Pro for iPad offers a powerful set of tools for video creators to record, edit, finish, and share, all from one portable device. Further, Logic Pro for iPad for professional music creation comes with a complete collection of sophisticated tools for songwriting, beat making, recording, editing, and mixing.
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(RTTNews) - Tech major Apple unveiled Final Cut Pro and Logic Pro for iPad with powerful features to deliver the ultimate mobile studio for video and music creators. Final Cut Pro for iPad offers a powerful set of tools for video creators to record, edit, finish, and share, all from one portable device. With a powerful set of intuitive tools designed for the portability, performance, and touch-first interface of iPad, Final Cut Pro and Logic Pro deliver the ultimate mobile studio."
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Final Cut Pro is compatible with M1 chip iPad models or later, and Logic Pro will be available on A12 Bionic chip iPad models or later. Apple noted that Final Cut Pro for iPad and Logic Pro for iPad require iPadOS 16.4. With a powerful set of intuitive tools designed for the portability, performance, and touch-first interface of iPad, Final Cut Pro and Logic Pro deliver the ultimate mobile studio."
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The compny noted that these Pro apps bring all-new touch interfaces that allow users to enhance their workflows with the immediacy and intuitiveness of Multi-Touch. Final Cut Pro for iPad offers a powerful set of tools for video creators to record, edit, finish, and share, all from one portable device. With a powerful set of intuitive tools designed for the portability, performance, and touch-first interface of iPad, Final Cut Pro and Logic Pro deliver the ultimate mobile studio."
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15912.0
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2023-05-10 00:00:00 UTC
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US STOCKS-Tech-heavy Nasdaq jumps on signs of easing inflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-tech-heavy-nasdaq-jumps-on-signs-of-easing-inflation
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday, as a slightly lower-than-expected increase on inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result.
The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.15% to its highest intraday level in more than eight months, with large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.5% each.
The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago and compared with expectations of a 5% increase. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
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 basis points hike. FEDWATCH
"Today's report suggests that the Fed's campaign to quell inflation is working, albeit more slowly than they would like," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"This report will be followed by another one before the Fed meets in June, where expectations are that rent-related inflation will indicate definitive signs of easing, helping to push overall headline inflation lower."
The rate-sensitive S&P 500 technology sector index .SPLRCT rose 0.8%, while communication services .SPLRCL rose 0.9%.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 67.80 points, or 0.20%, at 33,494.01, the S&P 500 .SPX was up 11.08 points, or 0.27%, at 4,130.25, and the Nasdaq Composite .IXIC was up 95.73 points, or 0.79%, at 12,275.29.
Alphabet Inc GOOGL.O gained 1.6% as the Google-parent was set to unveil more artificial intelligence in its products to answer the latest competition from Microsoft.
Oil and gas producer Occidental Petroleum Corp OXY.N fell 2.1% after its first-quarter earnings fell short of analysts' estimates.
Livent Corp LTHM.N added 4.2% 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 11.5% as the vacation rental booking company saw fewer bookings and lower average daily rates in the second quarter.
Rivian Automotive RIVN.O jumped 13% after the EV maker beat first-quarter results estimates and reiterated its annual production forecast.
Advancing issues outnumbered decliners by a 2.28-to-1 ratio on the NYSE and by a 2.15-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and four new lows, while the Nasdaq recorded 50 new highs and 37 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; Editing by Anil D'Silva and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.15% to its highest intraday level in more than eight months, with large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.5% each. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday, as a slightly lower-than-expected increase on inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. FEDWATCH "Today's report suggests that the Fed's campaign to quell inflation is working, albeit more slowly than they would like," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.15% to its highest intraday level in more than eight months, with large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.5% each. The Labor Department's Consumer Price Index (CPI) rose 4.9% in April from a year ago and compared with expectations of a 5% increase. The S&P index recorded 12 new 52-week highs and four new lows, while the Nasdaq recorded 50 new highs and 37 new lows.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.15% to its highest intraday level in more than eight months, with large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.5% each. By Shreyashi Sanyal and Shristi Achar A May 10 (Reuters) - The Nasdaq led gains among Wall Street's main indexes on Wednesday, as a slightly lower-than-expected increase on inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result. 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; Editing by Anil D'Silva and Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S Treasury yields fell while the Nasdaq .IXIC jumped as much as 1.15% to its highest intraday level in more than eight months, with large-cap technology stocks, including Apple Inc AAPL.O and Microsoft Corp MSFT.O up about 0.5% each. 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 basis points hike. "This report will be followed by another one before the Fed meets in June, where expectations are that rent-related inflation will indicate definitive signs of easing, helping to push overall headline inflation lower."
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15913.0
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2023-05-10 00:00:00 UTC
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Apple Is Spending $90 Billion to Buy Back Its Stock: 3 Reasons Not to Follow Its Lead
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AAPL
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https://www.nasdaq.com/articles/apple-is-spending-%2490-billion-to-buy-back-its-stock%3A-3-reasons-not-to-follow-its-lead
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nan
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nan
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Apple (NASDAQ: AAPL) has become somewhat famous for its massive share repurchases, spending $85 billion over the past year buying back its stock.
Who am I to judge? You can do that when your business generates $100 billion in cash profits every year. Apple does it to lower the number of its outstanding shares and increase the value of its stock, benefiting shareholders.
But just because Apple is buying its stock doesn't mean you should. It's a great business, but the stock might not be ripe for the picking. Here are three reasons to pass on it.
1. The valuation is more bitter than sweet
You won't hear an argument for Apple being a bad business. It's one of the most powerful companies on Earth, and the real problem is that everyone knows it.
A turbulent stock market has everyone flocking to dependable stocks like Apple, pushing the valuation increasingly higher. You can see below that the price-to-earnings ratio (P/E) is approaching 30, more than 50% higher than its average over the past 10 years.
AAPL PE Ratio data by YCharts.
Apple wants to reduce its share count, so it'll plow money into share repurchases with sheer force. Individual investors should use a bit more tact and think twice. It could be a disaster for investors buying now if Apple reverted to its long-term averages.
2. Growth is slowing
Not to add salt to the wound, but Apple is having a harder time growing as a company worth nearly $3 trillion. It just reported its operating results for the quarter ending April 1 and posted flat year-over-year earnings per share (EPS). For the long term, analysts have gradually toned down their expectations, now looking for 10% annual earnings growth, on par with the S&P 500's historical average.
AAPL EPS LT Growth Estimates data by YCharts.
Apple will probably hit an eventual growth spurt when a major iPhone upgrade comes out, but it becomes increasingly harder as you get bigger. It puts more pressure on management to deliver growth because the stock trades at a higher valuation. Remember that valuations reflect market expectations, and falling short could mean a brutally quick haircut.
3. Better opportunities elsewhere
Few companies are as good as Apple, but there are plenty of better investment opportunities right now.
Suppose you buy Apple today and hold it for the next five years. Assuming 10% annual earnings growth, the company would generate roughly $10 per share in 2028. If the stock were to trade at its long-term average P/E of 20 at that point, your five-year investment would return a total of just 15% (a tad more, including Apple's 0.5% dividend yield).
In other words, there isn't much more juice to squeeze unless something unexpected happens. So what should investors do? Consider putting Apple on your watch list for now, and move on to better opportunities.
They are out there. Think long term and diversify your stock portfolio; the market's wonkiness will offer you some deals that make you money if you are patient and wait for the right opportunity.
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Justin Pope 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) has become somewhat famous for its massive share repurchases, spending $85 billion over the past year buying back its stock. AAPL PE Ratio data by YCharts. AAPL EPS LT Growth Estimates data by YCharts.
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Apple (NASDAQ: AAPL) has become somewhat famous for its massive share repurchases, spending $85 billion over the past year buying back its stock. AAPL PE Ratio data by YCharts. AAPL EPS LT Growth Estimates data by YCharts.
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Apple (NASDAQ: AAPL) has become somewhat famous for its massive share repurchases, spending $85 billion over the past year buying back its stock. AAPL PE Ratio data by YCharts. AAPL EPS LT Growth Estimates data by YCharts.
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Apple (NASDAQ: AAPL) has become somewhat famous for its massive share repurchases, spending $85 billion over the past year buying back its stock. AAPL PE Ratio data by YCharts. AAPL EPS LT Growth Estimates data by YCharts.
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15914.0
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2023-05-09 00:00:00 UTC
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Finding the Next Double (5 Factors to Consider)
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AAPL
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https://www.nasdaq.com/articles/finding-the-next-double-5-factors-to-consider
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nan
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nan
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Every investor who tries their hand at Wall Street is looking for the next stock that will double. However, so few investors are successful in finding a winning stock, let alone holding one. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
Jesse Livermore once said, “Those who can both be right and sit tight are uncommon.”
In an interview with Tony Robbins, Paul Tudor Jones said he shoots for a risk-to-reward ratio of 5:1. “Five to one means I’m risking one dollar to make 5.”
Buffett proclaimed that “The stock market is a device to transfer money from the impatient to the patient.”
Though the advice of running winners may sound evident on the surface, in practice, it is a different story for most investors. How can investors find the next big winner, and more importantly, how can they fight the human emotions of hope, fear, and greed and ride these winners?
Identify a stock in an uptrend: All else equal, it is easier to latch onto an already strong stock than it is to catch a bottom in a weak stock. Stocks like Apple (AAPL), Amazon (AMZN), or Monster (MNST) that doubled years ago went onto double several more times. In other words, strength begets strength.
Image Source: Zacks Investment Research
Pictured: MNST is up nearly 140,000% since inception!
Use moving averages: Moving averages can help you in various ways. For example, a bullish “golden cross” occurs when the “faster” 50-day moving average crosses above the “slower” 200-day moving average from below – signaling a bullish trend change. Nvidia (NVDA), the current market leader, triggered this signal earlier this year.
Image Source: Zacks Investment Research
Beyond getting you into the stock, the 50-day moving average can help you to stay in the stock for the bulk of a move. The 50-day moving average is an area where institutional investors like to “reload on stock”. Thus, the strongest trends are contained within the 50-day moving average. If you can buy a stock above the 50-day moving average and hold until your average cost is below the moving average, you put yourself in a position for success. A good recent example is Elf Beauty (ELF).
Image Source: Zacks Investment Research
Pictured: ELF has hugged the 50-day moving average for months.
Look for stocks with Zacks Rankings of 3 or better: The Zacks Rank grades stocks based on earnings estimates. Year-over-year, the stocks with rising earnings estimates have significantly outperformed the S&P 500 Index. By combining technicals and fundamentals, you begin to stack the odds in your favor.
Hone your entry points: It is much easier to hang onto a stock if you purchased it correctly. When entering a stock, there is no need to complicate the process. Find an up-trending stock that is consolidating and pulling back to the 50-day moving average. Buy as it breaks out of the consolidation – preferably on heavy volume. A real-time example of a stock trying to do this is Salesforece (CRM).
Image Source: Zacks Investment Research
Pictured: CRM is breaking out of a classic bull flag as turnover picks up. The
Manage your risk: Anyone who has invested in the stock market for more than a few days knows that you will not always pick winners. Legendary investor Ed Seykota once warned,“If you can’t take a small loss, sooner or later, you will take the mother of all losses.” Though taking losses is not something investors often talk about, it is a critical part of surviving over the long term and finding investing success. The good news is that if you keep your losses tight and run your winners, you can achieve great success with a hit rate of 40% or even lower.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks like Apple (AAPL), Amazon (AMZN), or Monster (MNST) that doubled years ago went onto double several more times. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report e.l.f. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report e.l.f. Stocks like Apple (AAPL), Amazon (AMZN), or Monster (MNST) that doubled years ago went onto double several more times. Image Source: Zacks Investment Research Pictured: MNST is up nearly 140,000% since inception!
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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 Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report e.l.f. Stocks like Apple (AAPL), Amazon (AMZN), or Monster (MNST) that doubled years ago went onto double several more times. Image Source: Zacks Investment Research Beyond getting you into the stock, the 50-day moving average can help you to stay in the stock for the bulk of a move.
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Stocks like Apple (AAPL), Amazon (AMZN), or Monster (MNST) that doubled years ago went onto double several more times. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report e.l.f. Though legendary investors such as Jesse Livermore, Paul Tudor Jones, and Warren Buffett have differing strategies, they share a common thought process about how to make big money in the stock market.
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15915.0
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2023-05-09 00:00:00 UTC
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3 AI Stocks That Are Poised to Explode in 2023
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AAPL
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https://www.nasdaq.com/articles/3-ai-stocks-that-are-poised-to-explode-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial Intelligence (or AI) is the latest and greatest buzzword on Wall Street. Given some of the AI-inspired rallies we’ve seen so far this year, it’s no wonder investors are looking for the best AI stocks with huge upside.
According to Bank of America’s Savita Subramani, “AI mentions on corporate earnings calls are up 64% year over year and that should signal spending in the tech sector…We expect more AI-related capex ahead.”
Given the way an AI-related headline can move a stock (more on that in a minute), it’s no surprise that companies and management teams are tapping into this new trend. Many of the best AI stocks have already made big moves, but that doesn’t mean they aren’t without upside.
Let’s look at a few AI stocks to watch in 2023 and beyond.
Best AI Stocks for Long-Term Gains: Microsoft (MSFT)
Source: Ascannio / Shutterstock.com
At this point, Microsoft (NASDAQ:MSFT) is one of the top AI stocks right now. First, shares have been on fire, up four months in a row and 44% from the 2022 low. Second, Microsoft is one of the strongest companies in the world.
It commands a market capitalization of $2.3 trillion, second only to Apple (NASDAQ:AAPL) in the U.S. Too many investors underestimate what Microsoft’s finances look like, particularly on the free cash flow and margin front. In the last 12 months, the firm generated $57.5 billion in free cash flow, and its trailing operating margins of 40.85% were better than all of FAANG (the next closest is Apple at 29.1%).
What I love most, though, is that CEO Satya Nadella refuses to sit back and see how the AI game will play out. The company struck quickly, snatching up a huge investment in ChatGPT parent OpenAI. It’s integrating its technology into its business and is far from done with AI at this point.
Microsoft is looking to dial up its fight in internet search (Bing), its browser (Edge), and its enterprise platforms.
AI Stocks That Could Skyrocket: Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
If there is any doubt about the power of AI when it comes to stocks, Advanced Micro Devices (NASDAQ:AMD) should erase all of it. Last week, shares fell more than 9% in a single session, hitting its lowest level since mid-March after guidance underwhelmed investors.
However, the stock has since rallied 17% in a three-day span after a headline hit last week saying Microsoft and AMD were working together on an AI chip.
According to the report, Microsoft is helping to finance the development. Even though Microsoft currently sources its AI chips from Nvidia (NASDAQ:NVDA), the reports suggest it could turn to AMD as a potential source in the future.
Interestingly, a few days after the reports, Microsoft denied some of it. The firm said it isn’t working with AMD to develop its own processor. However, Microsoft didn’t say it wasn’t involved with AMD or wasn’t helping to finance it. Microsoft has “denied that AMD is involved with Athena” — Athena being the codename for its own in-house AI chips.
The bottom line: The tech world can’t count on Nvidia to produce all the chips for AI, and AMD is a natural rising star to fill the supply gap.
One Stock to Watch: Alphabet (GOOGL, GOOG)
Source: IgorGolovniov / Shutterstock.com
It seems like an obvious choice, but so far, the market has not rewarded Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) for its AI ambitions. Despite this, I think it will be one of the best AI stocks of the future.
Microsoft sunk a multi-billion stake into OpenAI in part for its ChatGPT platform. Given how fast it garnered more than 100 million users, it’s not hard to see why. The way it’s incorporating it into its platforms (like Bing and Edge) is smart too.
However, it’s impossible to ignore Alphabet’s grip on the internet. The two most popular websites on the internet are Google.com and YouTube (literally, not figuratively). Chrome dominates the internet browser market share.
AI is shifting and moving rapidly; there’s no doubt about that. Unless you are an AI expert, it may be impossible to keep up with how fast it’s shifting, growing, and manifesting in different forms and products. But regardless of this speed, people are slower; they are creatures of habit.
While Microsoft may chip away at some of Google’s market share lead in various products, I think Alphabet will keep a hold over its top spots. Not to mention, Alphabet is working on AI solutions of its own. I think this one could be a nice long-term winner.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 AI Stocks That Are Poised to Explode 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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It commands a market capitalization of $2.3 trillion, second only to Apple (NASDAQ:AAPL) in the U.S. Too many investors underestimate what Microsoft’s finances look like, particularly on the free cash flow and margin front. In the last 12 months, the firm generated $57.5 billion in free cash flow, and its trailing operating margins of 40.85% were better than all of FAANG (the next closest is Apple at 29.1%). The bottom line: The tech world can’t count on Nvidia to produce all the chips for AI, and AMD is a natural rising star to fill the supply gap.
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It commands a market capitalization of $2.3 trillion, second only to Apple (NASDAQ:AAPL) in the U.S. Too many investors underestimate what Microsoft’s finances look like, particularly on the free cash flow and margin front. Best AI Stocks for Long-Term Gains: Microsoft (MSFT) Source: Ascannio / Shutterstock.com At this point, Microsoft (NASDAQ:MSFT) is one of the top AI stocks right now. AI Stocks That Could Skyrocket: Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com If there is any doubt about the power of AI when it comes to stocks, Advanced Micro Devices (NASDAQ:AMD) should erase all of it.
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It commands a market capitalization of $2.3 trillion, second only to Apple (NASDAQ:AAPL) in the U.S. Too many investors underestimate what Microsoft’s finances look like, particularly on the free cash flow and margin front. Best AI Stocks for Long-Term Gains: Microsoft (MSFT) Source: Ascannio / Shutterstock.com At this point, Microsoft (NASDAQ:MSFT) is one of the top AI stocks right now. AI Stocks That Could Skyrocket: Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com If there is any doubt about the power of AI when it comes to stocks, Advanced Micro Devices (NASDAQ:AMD) should erase all of it.
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It commands a market capitalization of $2.3 trillion, second only to Apple (NASDAQ:AAPL) in the U.S. Too many investors underestimate what Microsoft’s finances look like, particularly on the free cash flow and margin front. Best AI Stocks for Long-Term Gains: Microsoft (MSFT) Source: Ascannio / Shutterstock.com At this point, Microsoft (NASDAQ:MSFT) is one of the top AI stocks right now. Even though Microsoft currently sources its AI chips from Nvidia (NASDAQ:NVDA), the reports suggest it could turn to AMD as a potential source in the future.
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15916.0
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2023-05-09 00:00:00 UTC
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Income Investing: 3 Technology Stocks Worth Consideration
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AAPL
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https://www.nasdaq.com/articles/income-investing%3A-3-technology-stocks-worth-consideration
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nan
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nan
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When thinking of dividends, common sectors of the market that are popular among investors include utilities, finance, or consumer staples.
However, a fair number of technology companies also reward their investors handsomely.
Technology stocks are generally not targeted by income investors, as it’s common for these companies to utilize cash to fuel growth and future opportunities.
However, three large-cap companies – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of technology stocks that provide shareholders with a passive income stream.
Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those interested in tapping into technology exposure paired with dividends, let’s take a closer look at each.
Apple
In its latest quarterly release, Apple delivered a positive 5.6% EPS surprise and reported revenue 2% above expectations. In a shareholder-friendly move, the company also announced a 4% increase to its quarterly cash dividend, payable on May 18th.
The dividend increases from Apple have definitely added up over time, and this is paired with thestellar pricereturn that shares have provided.
Image Source: Zacks Investment Research
Apple is a cash-generating machine, allowing it the flexibility to reward its shareholders consistently. In FY22, the technology titan generated a mighty $111.4 billion in free cash flow, improving nearly 20% year-over-year.
Image Source: Zacks Investment Research
Microsoft
Microsoft posted quarterly results that impressed the market in its latest release, delivering a 10% EPS beat and reporting revenue nearly 4% above expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
The market has been impressed with MSFT’s quarterly releases in 2023 so far, as we can see by the green arrows circled in the chart below.
Image Source: Zacks Investment Research
The company’s annual dividend presently yields 0.9%, above the Zacks Computer and Technology sector average by a few ticks. Notably, Microsoft has grown its payout by more than 10% over the last five years, fully reflecting its shareholder-friendly nature.
Image Source: Zacks Investment Research
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits.
TXN’s dividend metrics could be the most attractive of all three; TXN’s annual dividend presently yields 3%, more than triple the Zacks sector average. In addition, the company boasts a 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Texas Instrument shares are somewhat cheap on a relative basis, with the current 21.9X forward earnings multiple sitting nicely below the 23.2X five-year median and highs of 24.1X last year.
Image Source: Zacks Investment Research
Bottom Line
Investors shouldn’t forget technology stocks when considering an income-generating portfolio. On top of a passive income stream, market participants receive exposure to the high-flying sector.
And all three companies above – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of dividend-paying technology stocks.
All three have grown their dividend payouts nicely over the years, reflecting a commitment to increasingly rewarding shareholders.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : 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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However, three large-cap companies – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of technology stocks that provide shareholders with a passive income stream. And all three companies above – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of dividend-paying technology stocks. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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However, three large-cap companies – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of technology stocks that provide shareholders with a passive income stream. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. And all three companies above – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of dividend-paying technology stocks.
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Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. However, three large-cap companies – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of technology stocks that provide shareholders with a passive income stream. And all three companies above – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of dividend-paying technology stocks.
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However, three large-cap companies – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of technology stocks that provide shareholders with a passive income stream. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. And all three companies above – Apple AAPL, Microsoft MSFT, and Texas Instruments TXN – are all examples of dividend-paying technology stocks.
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15917.0
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2023-05-09 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-32
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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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15918.0
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2023-05-09 00:00:00 UTC
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PayPal Earnings Review: A Strong Quarter, but Highly Competitive Industry
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AAPL
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https://www.nasdaq.com/articles/paypal-earnings-review%3A-a-strong-quarter-but-highly-competitive-industry
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nan
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nan
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PayPal PYPL is one of the largest online payment solutions provider in the world. PayPal has a robust suite of products to enable smooth and secure transactions for both customers and merchants.
On Monday, May 8, after the market closed PayPal reported better than expected sales and earnings figures, beating analysts estimates. Total payment volume grew 10% YoY to $354.5 billion and EPS climbed 33% YoY to $1.17 per share. Management also raised guidance and announced that they expect to buy back $4 billion in shares by year end.
However, even after posting such strong results PYPL traded lower in after-hours trading. The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others.
Stock Performance
PayPal stock had been on a steady trajectory higher for several years, matching the returns of legacy competitor Visa. However, following the Covid pandemic PayPal skyrocketed as investors blindly bid up shares of growth and technology companies. But the stock subsequently crashed nearly -80% in 2022 and performance is now flat over the last five years.
The stock seems to have put in a floor though and has been building a base over the last 12 months signaling investor interest again. Additionally, PYPL’s valuation is now as low as it has been since it was spun out into a public company in 2015.
Image Source: Zacks Investment Research
Industry Landscape
The payments industry is in the midst of transformation. More than ever, transactions are becoming cashless, whether online or in person. Thus, the competition to capture that shift is vigorous.
PayPal’s most direct competitor Block suffered an equally painful 2022, giving back five years of stock gains. Like PYPL, SQ is a rapidly growing company, with compelling products and a strong business model.
The two compete in several business segments. Primarily, PayPal’s Venmo and Block’s CashApp, are direct competitors in peer-to-peer payments. Both are important contributors to topline growth as well as customer onboarding.
These aren’t the only places where the contest for market share is fraught with contenders. Payment processing, tap and go payments, digital cards, online payments and peer-to-peer involve some of the biggest names in corporate America. Visa, Mastercard, Apple, Alphabet GOOGL, Bank of America BAC and JP Morgan JPM all have a stake in how the industry plays out.
Valuation
PayPal is currently trading at a one-year forward earnings multiple of 20x, which is below its eight-year median of 44x, and just off its low of 19x. Because of PYPL’s historically low valuation it may become an acquisition target. As one of the most competitive industries in the market, and one that is laser focused on network effects, it might make sense for larger incumbents like Visa or Mastercard to come in and buy it.
Image Source: Zacks Investment Research
Bottom Line
PayPal’s quarterly results showed continued strength in key metrics, yet it still wasn’t enough for investors. Shares are down more than -10% on Tuesday following the earnings call. Nonetheless, PYPL still has a compelling business model and is trading at a historically low valuation. PayPal has clearly carved out a niche in online payments, and continues to grow its secondary businesses, and whether it continues on its own, or is acquired it should continue to generate considerable value for investors.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : 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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The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Bottom Line PayPal’s quarterly results showed continued strength in key metrics, yet it still wasn’t enough for investors.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others. Image Source: Zacks Investment Research Industry Landscape The payments industry is in the midst of transformation.
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The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. PayPal has clearly carved out a niche in online payments, and continues to grow its secondary businesses, and whether it continues on its own, or is acquired it should continue to generate considerable value for investors.
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The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Industry Landscape The payments industry is in the midst of transformation.
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15919.0
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2023-05-09 00:00:00 UTC
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Alphabet-backed Anthropic outlines the moral values behind its AI bot
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AAPL
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https://www.nasdaq.com/articles/alphabet-backed-anthropic-outlines-the-moral-values-behind-its-ai-bot
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nan
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nan
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By Stephen Nellis
May 9 (Reuters) - Anthropic, an artificial intelligence startup backed by Google owner Alphabet Inc GOOGL.O, on Tuesday disclosed the set of written moral values that it used to train and make safe Claude, its rival to the technology behind OpenAI's ChatGPT.
The moral values guidelines, which Anthropic calls Claude's constitution, draw from several sources, including the United Nations Declaration on Human Rights and even Apple Inc's AAPL.O data privacy rules.
Safety considerations have come to the fore as U.S. officials study whether and how to regulate AI, with President Joe Biden saying companies have an obligation to ensure their systems are safe before making them public.
Anthropic was founded by former executives from Microsoft Corp-backed MSFT.O OpenAI to focus on creating safe AI systems that will not, for example, tell users how to build a weapon or use racially biased language.
Co-founder Dario Amodei was one of several AI executives who met with Biden last week to discuss potential dangers of AI.
Most AI chatbot systems rely on getting feedback from real humans during their training to decide what responses might be harmful or offensive.
But those systems have a hard time anticipating everything people might ask, so they tend to avoid some potentially contentious topics like politics and race altogether, making them less useful.
Anthropic takes a different approach, giving its Open AI competitor Claude a set of written moral values to read and learn from as it makes decisions on how to respond to questions.
Those values include "choose the response that most discourages and opposes torture, slavery, cruelty, and inhuman or degrading treatment," Anthropic said in a blog post on Tuesday.
Claude has also been told to choose the response least likely to be viewed as offensive to any non-western cultural tradition.
In an interview, Anthropic co-founder Jack Clark said a system's constitution could be modified to perform a balancing act between providing useful answers while also being reliably inoffensive.
"In a few months, I predict that politicians will be quite focused on what the values are of different AI systems, and approaches like constitutional AI will help with that discussion because we can just write down the values," Clark said.
(Reporting by Stephen Nellis in San Francisco; Editing by Sonali Paul)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The moral values guidelines, which Anthropic calls Claude's constitution, draw from several sources, including the United Nations Declaration on Human Rights and even Apple Inc's AAPL.O data privacy rules. By Stephen Nellis May 9 (Reuters) - Anthropic, an artificial intelligence startup backed by Google owner Alphabet Inc GOOGL.O, on Tuesday disclosed the set of written moral values that it used to train and make safe Claude, its rival to the technology behind OpenAI's ChatGPT. Anthropic takes a different approach, giving its Open AI competitor Claude a set of written moral values to read and learn from as it makes decisions on how to respond to questions.
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The moral values guidelines, which Anthropic calls Claude's constitution, draw from several sources, including the United Nations Declaration on Human Rights and even Apple Inc's AAPL.O data privacy rules. By Stephen Nellis May 9 (Reuters) - Anthropic, an artificial intelligence startup backed by Google owner Alphabet Inc GOOGL.O, on Tuesday disclosed the set of written moral values that it used to train and make safe Claude, its rival to the technology behind OpenAI's ChatGPT. Anthropic takes a different approach, giving its Open AI competitor Claude a set of written moral values to read and learn from as it makes decisions on how to respond to questions.
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The moral values guidelines, which Anthropic calls Claude's constitution, draw from several sources, including the United Nations Declaration on Human Rights and even Apple Inc's AAPL.O data privacy rules. By Stephen Nellis May 9 (Reuters) - Anthropic, an artificial intelligence startup backed by Google owner Alphabet Inc GOOGL.O, on Tuesday disclosed the set of written moral values that it used to train and make safe Claude, its rival to the technology behind OpenAI's ChatGPT. Anthropic takes a different approach, giving its Open AI competitor Claude a set of written moral values to read and learn from as it makes decisions on how to respond to questions.
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The moral values guidelines, which Anthropic calls Claude's constitution, draw from several sources, including the United Nations Declaration on Human Rights and even Apple Inc's AAPL.O data privacy rules. Anthropic takes a different approach, giving its Open AI competitor Claude a set of written moral values to read and learn from as it makes decisions on how to respond to questions. Claude has also been told to choose the response least likely to be viewed as offensive to any non-western cultural tradition.
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15920.0
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2023-05-09 00:00:00 UTC
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5 Most-Loved ETFs of Last Week
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AAPL
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https://www.nasdaq.com/articles/5-most-loved-etfs-of-last-week-5
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Overall, ETFs pulled in a modest $260 million in capital for the week (ending May 5), bringing total inflows of $111.7 billion year to date. Commodities led the way higher with $769.5 million in inflows, closely followed by $280.5 million in international equity ETFs and $240.3 million in inverse ETFs, per etf.com.
As such, Invesco QQQ Trust QQQ, iShares Core U.S. Aggregate Bond ETF AGG, Health Care Select Sector SPDR Fund XLV, Vanguard S&P 500 ETF VOO, and BondBloxx Bloomberg One Year Target Duration US Treasury ETF XONE dominated the top creation list last week.
Last week was marked with volatility, and Dow Jones Industrial Average and the S&P 500 logged their worst week since March. The tech-heavy Nasdaq Composite Index managed to end the week in green and move toward yearly highs.
The Nasdaq maintained its strength on better-than-feared results from Apple AAPL. The tech titan beat estimates for both earnings and revenues, powered by a surprise boost in iPhone sales. Additionally, a rebound in regional bank shares after suffering early in the week added to the strength (read: Take a Bite of Apple With These ETFs Post Solid Q2 Earnings).
Further, upbeat job numbers pointed to a resilient labor market. The economy added 253,000 jobs in April, and the unemployment rate dropped to 3.4%.
We have detailed the ETFs below:
Invesco QQQ Trust (QQQ)
Invesco QQQ topped asset flow creation last week, gathering $3.4 billion in capital. QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 6.3% of assets. The product is also heavily tilted toward information technology at 49.5%, while communication services and consumer discretionary round off the next two spots.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $171.2 billion and an average daily volume of 54.6 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: 5 Stocks That Powered Nasdaq ETF Last Week).
iShares Core U.S. Aggregate Bond ETF (AGG)
iShares Core U.S. Aggregate Bond ETF saw an inflow of $804.4 million last week. It offers broad exposure to U.S. investment-grade bonds by tracking the Bloomberg US Aggregate Bond Index. iShares Core U.S. Aggregate Bond ETF holds 10,887 securities in its basket with an average maturity of 8.63 years and an effective duration of 6.28 years.
iShares Core U.S. Aggregate Bond ETF has AUM of $90 billion and an average daily volume of 6.5 million shares. It charges 3 bps in annual fees.
Health Care Select Sector SPDR Fund (XLV)
Health Care Select Sector SPDR Fund saw gathered $756 million last week. It is the most-popular health care ETF and follows the Health Care Select Sector Index. Health Care Select Sector SPDR Fund holds 65 securities in its basket, with pharma companies taking the top spot at 30.5% of assets while health care providers and services, health care equipment and supplies, biotech and life sciences tools & services recieve double-digit exposure each (read: Should ETF Investors at all Worry About Slowing U.S. Economy?).
Health Care Select Sector SPDR Fund manages nearly $40 billion in its asset base and trades in a heavy volume of around 10 million shares. The expense ratio comes in at 0.10%. XLV has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF has gathered $624.9 million in its asset base. It tracks the S&P 500 Index and holds 506 stocks in its basket, each accounting for no more than 7.1% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, financials and consumer discretionary round off its next three spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.6 million shares. It has AUM of $286 billion and a Zacks ETF Rank #2 with a Medium-risk outlook.
BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE)
BondBloxx Bloomberg One Year Target Duration US Treasury ETF has accumulated $451.9 million in capital. It follows the Bloomberg US Treasury One Year Duration Index, which contains U.S. Treasury securities that have an average duration of approximately 1 year. BondBloxx Bloomberg One Year Target Duration US Treasury ETF holds 56 bonds in the basket with an average maturity of one year and a duration of 0.98 years.
BondBloxx Bloomberg One Year Target Duration US Treasury ETF charges investors 3 bps in annual fees and trades in an average daily volume of 257,000 shares. It has AUM of $615.1 billion.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core U.S. Aggregate Bond ETF (AGG): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq maintained its strength on better-than-feared results from Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research Reports BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core U.S. Additionally, a rebound in regional bank shares after suffering early in the week added to the strength (read: Take a Bite of Apple With These ETFs Post Solid Q2 Earnings).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research Reports BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core U.S. The Nasdaq maintained its strength on better-than-feared results from Apple AAPL. Aggregate Bond ETF AGG, Health Care Select Sector SPDR Fund XLV, Vanguard S&P 500 ETF VOO, and BondBloxx Bloomberg One Year Target Duration US Treasury ETF XONE dominated the top creation list last week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research Reports BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core U.S. The Nasdaq maintained its strength on better-than-feared results from Apple AAPL. Aggregate Bond ETF AGG, Health Care Select Sector SPDR Fund XLV, Vanguard S&P 500 ETF VOO, and BondBloxx Bloomberg One Year Target Duration US Treasury ETF XONE dominated the top creation list last week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research Reports BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core U.S. The Nasdaq maintained its strength on better-than-feared results from Apple AAPL. Aggregate Bond ETF AGG, Health Care Select Sector SPDR Fund XLV, Vanguard S&P 500 ETF VOO, and BondBloxx Bloomberg One Year Target Duration US Treasury ETF XONE dominated the top creation list last week.
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15921.0
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2023-05-09 00:00:00 UTC
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Apple Just Upped Its Dividend: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-just-upped-its-dividend%3A-what-you-should-know
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nan
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nan
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Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Investors were impressed with the company's better-than-expected revenue and earnings per share. The upside to the quarter was largely driven by iPhone sales coming in much better than expected. Total iPhone sales were higher than any fiscal second quarter yet. Apple's smartphone revenue rose 2% year over year to $51.3 billion "despite significant foreign exchange headwinds and a challenging macroeconomic environment," said Apple chief financial officer Luca Maestri during the company's earnings call.
While Apple's financial performance for the period was impressive (particularly considering the macroeconomic headwinds the company is facing) there's another facet of the update worth exploring: Yet another dividend increase from the tech giant. The dividend hike meant Apple added to its growing streak of increasing its dividend every year.
Here's a look at the company's dividend increase, as well as another key way the company is using its excess cash to build shareholder value.
Dividend growth
Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. This new quarterly dividend comes out to $0.24, which equals $0.96 of dividends on an annual basis. This payout gives Apple a dividend yield of about 0.6%.
Though this is a small dividend, investors should note that the tech giant makes up for its small payout with prospects for continued dividend growth for years to come. Indeed, Apple has already demonstrated its ability to increase its dividend by raising it each and every year since its dividend was initiated in 2012. That means Apple's latest dividend hike is its eleventh consecutive annual increase.
Apple will pay this dividend on May 18 to shareholders of record as of the close of business on May 15.
The company's history of dividend growth is evidence that management is making a habit of regularly increasing its dividend. But the best case for investors to expect continued dividend growth is Apple's low payout ratio. The iPhone maker is paying out just 16% of its earnings in dividends. This means there is plenty of room for the dividend to increase over the next decade. Contrary to Apple's current payout ratio, many dividend stocks safely operate with payout ratios greater than 50%.
Apple's stock buyback program
Looking beyond Apple's dividend, the primary way the company is returning cash to shareholders (albeit indirectly) is its share repurchase program.
Apple used its fiscal second-quarter update as an opportunity to authorize an additional $90 billion for share repurchases. The move reflects management's "confidence in Apple's future and the value we see in our stock," Maestri said in the earnings release.
The company has been spending huge sums on repurchases. In fiscal Q2, Apple spent $19.1 billion on share repurchases. This compares to $3.7 billion spent on dividends during the quarter.
Looking ahead, Apple is likely to persist in spending massive sums on repurchases and increasing its dividend on an annual basis. The company currently has $166 billion in cash and marketable securities on its balance sheet, with total debt of $110 billion. This leaves Apple with a net cash position of $57 billion. It's management's goal to get to net cash neutral over time. This will take a big effort from the company when it comes to dividends and repurchases since Apple's business generates around $100 billion of free cash flow annually.
10 stocks we like better than Apple
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. While Apple's financial performance for the period was impressive (particularly considering the macroeconomic headwinds the company is facing) there's another facet of the update worth exploring: Yet another dividend increase from the tech giant. Looking ahead, Apple is likely to persist in spending massive sums on repurchases and increasing its dividend on an annual basis.
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Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. But the best case for investors to expect continued dividend growth is Apple's low payout ratio.
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Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. Indeed, Apple has already demonstrated its ability to increase its dividend by raising it each and every year since its dividend was initiated in 2012.
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Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Total iPhone sales were higher than any fiscal second quarter yet. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4.
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15922.0
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2023-05-09 00:00:00 UTC
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Skyworks Solutions: Another Crack in the Consumer Outlook
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AAPL
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https://www.nasdaq.com/articles/skyworks-solutions%3A-another-crack-in-the-consumer-outlook
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nan
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Skyworks Solutions Inc. (NASDAQ: SWKS) does not have a consumer-facing business. Still, it makes many of the gadgets and gizmos used by today’s top consumer-products companies, and the news in the Q2 report does not inspire confidence. News from Packaging Corporation of America and United Parcel Service points to a widespread slowdown in consumer discretionary spending. A larger-than-expected slowdown in volume should impact results, and higher prices will not offset the difference.
In addition, the guidance from United Parcel Service Inc. (NYSE: UPS) and Packaging Corporation of America (NYSE: PKG) was less than hopeful and suggested that volumes will continue to decline — they will focus on operational quality. They, and many other corporations, cut back on spending and staffing in a way that will extend and possibly accelerate the declines in volume already being reported.
What this means for Skyworks Solutions stock is a year-over-year (YOY) decline in revenue and profits, tepid results relative to the analysts' expectations and weak guidance. All sparked another round of price target reductions that will cap gains in 2023. The 25 analysts with current ratings have the stock pegged at a "moderate buy," but even that is slipping. There have been at least 12 new commentaries, including 12 price target reductions and one downgrade from "outperform" to "market perform." The sentiment may not shift much over the next few months, but the price target is down compared to last year and last month and may be expected to fall further as economic data becomes available.
Skyworks Falls on Tepid Results
Given the conditions, Skyworks didn’t have a terrible quarter, but the news suggests the downturn is ongoing. Its revenue of $1.15 billion is down 14.2% compared to last year, and the guidance calls for the same in Q3. The range allows for some strength, but the high end is below the consensus target, and it may be an optimistic outlook.
The company was able to sustain margin compared to last year but even that news is mixed. The gross margin contracted by 200 basis points on rising costs but internal efficiencies, including reduced spending and SG&A expense, offset the decline. This left adjusted earnings at $2.02, down more than 25 cents compared to last year and short of consensus by a penny which is not rally-inducing.
The factor that may keep the stock from falling significantly lower is the dividend. Revenue and earnings are in decline, but cash flow remains robust and sufficient to cover the distribution. The company paid out 62 cents per share for the quarter of $2.48 annualized, or about 30% of the newly reduced earnings outlook.
Institutional Interest to Help Support the Action
The institutions have been buying Skyworks for three consecutive quarters and helped to put a bottom in the stock. Assuming this continues, Skyworks shares can be expected to continue within the current trading range. The second quarter guidance has the market moving lower, so a test of support at $85 is possible, although the $100 level appears to be firm support now. Longer-term, this stock should recover nicely because it is a major supplier to Apple, and Apple will continue to dominate the consumer tech market.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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News from Packaging Corporation of America and United Parcel Service points to a widespread slowdown in consumer discretionary spending. What this means for Skyworks Solutions stock is a year-over-year (YOY) decline in revenue and profits, tepid results relative to the analysts' expectations and weak guidance. The gross margin contracted by 200 basis points on rising costs but internal efficiencies, including reduced spending and SG&A expense, offset the decline.
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News from Packaging Corporation of America and United Parcel Service points to a widespread slowdown in consumer discretionary spending. In addition, the guidance from United Parcel Service Inc. (NYSE: UPS) and Packaging Corporation of America (NYSE: PKG) was less than hopeful and suggested that volumes will continue to decline — they will focus on operational quality. There have been at least 12 new commentaries, including 12 price target reductions and one downgrade from "outperform" to "market perform."
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In addition, the guidance from United Parcel Service Inc. (NYSE: UPS) and Packaging Corporation of America (NYSE: PKG) was less than hopeful and suggested that volumes will continue to decline — they will focus on operational quality. What this means for Skyworks Solutions stock is a year-over-year (YOY) decline in revenue and profits, tepid results relative to the analysts' expectations and weak guidance. Skyworks Falls on Tepid Results Given the conditions, Skyworks didn’t have a terrible quarter, but the news suggests the downturn is ongoing.
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News from Packaging Corporation of America and United Parcel Service points to a widespread slowdown in consumer discretionary spending. What this means for Skyworks Solutions stock is a year-over-year (YOY) decline in revenue and profits, tepid results relative to the analysts' expectations and weak guidance. The company was able to sustain margin compared to last year but even that news is mixed.
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15923.0
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2023-05-09 00:00:00 UTC
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Why AI Is a Game-Changer for the Music Industry
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AAPL
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https://www.nasdaq.com/articles/why-ai-is-a-game-changer-for-the-music-industry
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nan
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nan
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Are you ready to rock, investors?
The music industry is currently experiencing a renaissance, and the maestro behind it all is none other than artificial intelligence (AI). This technological virtuoso has been composing new ways for music platforms to orchestrate the user experience, content creation, and copyright management.
Nobody knows exactly how this grand opus will unfold, but we can certainly appreciate the crescendo of opportunities and controversy AI brings to the table. So let's embark on a melodic journey to explore the harmonious fusion of AI and the music industry. I'll start with the least contentious part of it, digging into the more complicated ideas later on.
AI-powered personalization
In the age of streaming and on-demand content, music lovers have become accustomed to having the world's entire discography at their fingertips. But with so much choice, where does one even begin to explore it all? Enter artificial intelligence, the ultimate maestro, conducting a symphony of personalized recommendations for each listener.
Music-streaming platforms like Sirius XM's (NASDAQ: SIRI) Pandora Radio and Spotify (NYSE: SPOT) have harnessed the power of AI to analyze users' listening habits, preferences, and even their mood to curate playlists that resonate with every individual. Imagine having a virtual DJ who knows your taste so well, it's as if they can read your musical mind. The technology goes beyond just matching similar songs or artists; it considers elements like tempo, key, and lyrical content to create a seamless listening experience that's as unique as you are.
But it's not just about making listeners' lives more melodious. Personalization can strike a powerful chord with artists, too. With the help of AI-powered market analysis tools, platforms can help musicians reach their target audience more effectively, increasing the chances of their work being discovered and appreciated. This, in turn, creates a harmonious ecosystem where artists can flourish and listeners can indulge in a rich, diverse soundscape.
While we can't predict every note in the unfolding AI symphony, it's clear that the personalization crescendo has the potential to make a lasting impact on how we consume and create music. So, let's keep our ears open for the next movement in this AI-powered opus.
Striking a chord with copyright management
In a world where a catchy tune can spread like wildfire across the internet, through channels that often didn't exist a few years earlier, it's more important than ever to ensure artists are fairly compensated for their creative genius. Artificial intelligence can help out with copyright management and enforcement -- but the automated systems are not hitting all the right notes yet.
Enter stage right, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with YouTube's Content ID. This AI-driven system scans millions of videos to identify and manage copyrighted content. Over 500 hours of video is uploaded to the popular video-sharing platform every minute. Those copyright-reviewing robots have a lot of work to do.
So this robotic tool enables rights-holders to keep tabs on their creations, ensuring they receive the recognition and royalties they deserve. Now, the system is far from perfect and backed by the contentious Digital Millennium Copyright Act (DMCA). From songwriters and performers to video creators and educators, every stakeholder in the creative process seems to have a bone to pick with the DMCA and YouTube's Content ID.
Similarly, Shazam -- owned by Apple (NASDAQ: AAPL) since 2018 -- uses its audio fingerprinting technology to help listeners identify songs and, in turn, gives artists a platform to claim their rightful place in the spotlight. There is less money on the line here since Shazam doesn't play music but earns referral fees when its users follow an app link to sign up for a music-streaming service. Still, the service is not without detractors since the song-matching system isn't 100% perfect and some users worry about its privacy implications.
I can't predict AI's detailed role in the future of copyright management, but these tech-savvy solutions are instrumental in protecting creators' rights and fostering a more harmonious music ecosystem. There's room for improvement, and I expect better AI engines to produce more reasonable results over time. And every platform for user-generated media has to automate the review process somehow, because even a literal army of human reviewers could never hope to keep up with the incoming tsunami of incoming content.
So, let's keep our eyes on the stage as AI sings backup to a duet between the legal system and music makers. One of these days, copyright enforcement could become a routine, reliable, uncontroversial process with more fans than objectors. When we get there, AI will probably have played an important part in that development.
Let's just say I don't recommend holding your breath in anticipation.
Composing with AI as a collaborator
As the curtain rises on a new era of music creation, generative AI is poised to take center stage, offering artists innovative ways to produce and share their masterpieces. Yes, machines are already building musical compositions out of the patterns they see in existing works.
But what does this mean for the future of songwriting and human creativity?
Music producer and YouTube personality Rick Beato recently offered a valuable perspective on this issue, emphasizing the importance of originality and innovation in the face of AI-generated compositions. According to Beato, AI-generated music "is just gonna scour what's already been written and mash them all together," so the machines really aren't creating anything new and fresh.
While AI can certainly lend a helping hand in the creative process, Beato insists that it won't replace human songwriters. It's crucial for artists who want to remain relevant to come up with unique melodies, chord sequences, harmonies, and backing tracks. People will still listen to music created entirely by AI, but there will always be a place for human creativity and emotion in the world of music.
As Beato puts it, "it's important not to get distraught about this AI thing because you should just go on and make music yourself and try to make it as original as possible."
Image source: Getty Images.
The key, then, is for artists to embrace AI as a collaborative tool rather than a competitor. Without human creativity somewhere in the chain of events that creates an AI-based song, you can only hope to duplicate popular tropes and trends of the past. By experimenting with sounds, chord progressions, and melodies, creators can find innovative ways to make their music stand out in an increasingly AI-infused industry.
While I can't foresee every note in the future of music creation, one thing is certain: AI is changing the game, and savvy artists who adapt and innovate will be the ones to hit the high notes in this brave new world.
So, let the music play on, and let's see how this AI-driven rock opera unfolds.
10 stocks we like better than Alphabet
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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. Anders Bylund has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Spotify Technology. 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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Similarly, Shazam -- owned by Apple (NASDAQ: AAPL) since 2018 -- uses its audio fingerprinting technology to help listeners identify songs and, in turn, gives artists a platform to claim their rightful place in the spotlight. Music-streaming platforms like Sirius XM's (NASDAQ: SIRI) Pandora Radio and Spotify (NYSE: SPOT) have harnessed the power of AI to analyze users' listening habits, preferences, and even their mood to curate playlists that resonate with every individual. Striking a chord with copyright management In a world where a catchy tune can spread like wildfire across the internet, through channels that often didn't exist a few years earlier, it's more important than ever to ensure artists are fairly compensated for their creative genius.
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Similarly, Shazam -- owned by Apple (NASDAQ: AAPL) since 2018 -- uses its audio fingerprinting technology to help listeners identify songs and, in turn, gives artists a platform to claim their rightful place in the spotlight. This technological virtuoso has been composing new ways for music platforms to orchestrate the user experience, content creation, and copyright management. Enter stage right, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) with YouTube's Content ID.
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Similarly, Shazam -- owned by Apple (NASDAQ: AAPL) since 2018 -- uses its audio fingerprinting technology to help listeners identify songs and, in turn, gives artists a platform to claim their rightful place in the spotlight. Composing with AI as a collaborator As the curtain rises on a new era of music creation, generative AI is poised to take center stage, offering artists innovative ways to produce and share their masterpieces. People will still listen to music created entirely by AI, but there will always be a place for human creativity and emotion in the world of music.
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Similarly, Shazam -- owned by Apple (NASDAQ: AAPL) since 2018 -- uses its audio fingerprinting technology to help listeners identify songs and, in turn, gives artists a platform to claim their rightful place in the spotlight. Composing with AI as a collaborator As the curtain rises on a new era of music creation, generative AI is poised to take center stage, offering artists innovative ways to produce and share their masterpieces. People will still listen to music created entirely by AI, but there will always be a place for human creativity and emotion in the world of music.
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15924.0
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2023-05-09 00:00:00 UTC
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US STOCKS-Wall St falls on dim earnings forecasts; debt-ceiling talks awaited
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-on-dim-earnings-forecasts-debt-ceiling-talks-awaited
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 9 (Reuters) - U.S. stock indexes fell on Tuesday, weighed down by a slew of dour earnings forecasts from companies such as Paypal and Apple supplier Skyworks, while investors focused on talks to resolve a debt-ceiling deadlock.
Shares of PayPal Holdings PYPL.O dropped 10.5% and led declines on the benchmark S&P 500 index .SPXafter the company cut its margin forecast. They were also among the top drags on the Nasdaq Composite index .IXIC.
Skyworks Solutions Inc SWKS.O shares tumbled 6.9% after forecasting current-quarter revenue and earnings below estimates.
Shares of other Apple suppliers including Qualcomm QCOM.O, Broadcom AVGO.O, Qorvo QRVO.O and Corning GLW.N fell between 0.9% to 2%. The Philadelphia SE Semiconductor Index .SOX was down 1.8%.
Markets are waiting for an update on the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House later in the day.
Worries of a potential government default loom over Washington as early as June 1, if Congress does not act to resolve the deadlock.
Yields on U.S. short-dated Treasury bills US1MT=RR, US2MT=RR jumped sharply as investors sold off bonds, which mature as early as June. That weighed on shares of high-growth companies, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, which fell about 0.3% each.
The action-packed week will see the release of the much-awaited inflation data on Wednesday. The Labor Department's consumer price index (CPI) is expected to climb 0.4% in April after gaining 0.1% in March.
Reports on producer prices, weekly jobless claims and consumer sentiment are all lined up for the week.
"What you're seeing is a market trying to understand where we are economically, with the Federal Reserve raising interest rates to up to 5% in a very short amount of time," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"It would behove the Fed to pause and see what kind of impact their moves have on the overall economy."
At 9:45 a.m. ET the Dow Jones Industrial Average .DJI was down 15.53 points, or 0.05%, at 33,603.16, the S&P 500 .SPX was down 15.56 points, or 0.38%, at 4,122.56 and the Nasdaq Composite .IXIC was down 60.23 points, or 0.49%, at 12,196.68.
Boeing CoBA.N gained 3%, helping take some pressure off the Dow, after budget carrier Ryanair Holdings Plc RYA.I placed a multi-billion dollar order for Boeing jets.
Regional bank shares extended declines, with the KBW Regional Banking index .KRX down 0.7%, after falling 2.8% on Monday. The KBW Banking index lost 1%, extending losses after edging 0.2% lower in the previous session.
NovavaxNVAX.Osurged 38.4% as the drugmaker plans a 25% cut to its global workforce.
Under Armour IncUAA.N lost 4.2% as the sports apparel maker saw its annual sales and profit below street expectations.
Dialysis services provider DaVita IncDVA.N jumped 13.1% on raising its annual profit forecast as demand for procedures pickup in the U.S.
Declining issues outnumbered advancers for a 2.56-to-1 ratio on the NYSE and for a 2.21-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and 10 new lows, while the Nasdaq recorded 20 new highs and 54 new lows.
LPL's Debt ceiling sell-off graphic: April-Oct 2011https://tmsnrt.rs/3M6SRML
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Sonia Cheema and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That weighed on shares of high-growth companies, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, which fell about 0.3% each. By Shreyashi Sanyal and Shristi Achar A May 9 (Reuters) - U.S. stock indexes fell on Tuesday, weighed down by a slew of dour earnings forecasts from companies such as Paypal and Apple supplier Skyworks, while investors focused on talks to resolve a debt-ceiling deadlock. Shares of PayPal Holdings PYPL.O dropped 10.5% and led declines on the benchmark S&P 500 index .SPXafter the company cut its margin forecast.
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That weighed on shares of high-growth companies, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, which fell about 0.3% each. By Shreyashi Sanyal and Shristi Achar A May 9 (Reuters) - U.S. stock indexes fell on Tuesday, weighed down by a slew of dour earnings forecasts from companies such as Paypal and Apple supplier Skyworks, while investors focused on talks to resolve a debt-ceiling deadlock. Regional bank shares extended declines, with the KBW Regional Banking index .KRX down 0.7%, after falling 2.8% on Monday.
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That weighed on shares of high-growth companies, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, which fell about 0.3% each. By Shreyashi Sanyal and Shristi Achar A May 9 (Reuters) - U.S. stock indexes fell on Tuesday, weighed down by a slew of dour earnings forecasts from companies such as Paypal and Apple supplier Skyworks, while investors focused on talks to resolve a debt-ceiling deadlock. Shares of PayPal Holdings PYPL.O dropped 10.5% and led declines on the benchmark S&P 500 index .SPXafter the company cut its margin forecast.
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That weighed on shares of high-growth companies, including Apple Inc AAPL.O and Microsoft Corp MSFT.O, which fell about 0.3% each. By Shreyashi Sanyal and Shristi Achar A May 9 (Reuters) - U.S. stock indexes fell on Tuesday, weighed down by a slew of dour earnings forecasts from companies such as Paypal and Apple supplier Skyworks, while investors focused on talks to resolve a debt-ceiling deadlock. Shares of PayPal Holdings PYPL.O dropped 10.5% and led declines on the benchmark S&P 500 index .SPXafter the company cut its margin forecast.
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15925.0
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2023-05-09 00:00:00 UTC
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Apple Stock: Bear vs. Bull
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-bear-vs.-bull-4
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nan
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nan
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Apple's (NASDAQ: AAPL) stock rallied 5% on May 5 after the tech giant posted its latest earnings report. For the second quarter of fiscal 2023, which ended on April 1, its revenue dipped 2.5% year over year to $94.8 billion but still surpassed analysts' estimates by approximately $2 billion. Its earnings stayed flat at $1.52 per share, but that also cleared the consensus forecast by $0.09 per share.
At first glance, Apple's growth rates seem anemic -- especially for a stock that has already rallied 34% this year versus the S&P 500's 8% gain. But if we dig deeper, we can find plenty of reasons to be both bearish and bullish on its future.
Image source: Apple.
What the bears will tell you about Apple
The bears will point out that Apple is still overwhelmingly dependent on the iPhone, which accounted for 54% of its revenue in the second quarter. Its iPhone sales rose 1.5% year over year, but it will likely face diminishing returns as the aging smartphone market becomes increasingly saturated.
The smartphone market is also still stuck in a cyclical decline after the big 5G upgrade cycle of 2020 and 2021. According to IDC, global smartphone shipments tumbled 11.3% to 1.21 billion units in 2022 -- marking the industry's lowest number of annual shipments since 2013 -- and could slump another 1.1% in 2023 as iPhone and Android shipments decline 0.5% and 1.2%, respectively. In other words, Apple's iPhone sales could still stall out in the second half of fiscal 2023.
Apple's Mac and iPad sales, which together accounted for 15% of its top line in Q2, also declined against difficult comparisons to their launches of M1-powered devices a year earlier, as well as macro and currency headwinds. Those pressures could persist throughout the rest of the year as consumers buy fewer Macs and iPads for remote work and online learning in a post-pandemic market.
Apple's services revenue, which comes from its App Store and subscription-based services, rose 5% year over year in the second quarter and accounted for 22% of its top line. But that also was a slight slowdown from its 6% year-over-year growth in Q4. That deceleration could be a red flag because Apple expects the growth of its services segment to lock in its users and gradually reduce its overall dependence on the iPhone.
Finally, its growth rates might not support its valuation. Analysts expect Apple's revenue and earnings to decline 2% and 3%, respectively, this year as its soft hardware sales offset its rising services revenue. Yet it still trades at 28 times forward earnings -- presumably because it's considered a "safe haven" stock. Microsoft, which is still growing at a faster clip than Apple, trades at just 25 times forward earnings and doesn't rely on a single product line for half its revenue.
What the bulls will tell you about Apple
The bulls will acknowledge that Apple faces a near-term slowdown and relies too much on the iPhone, but they'll also point out its iPhone sales actually just set a new fiscal Q2 record, which suggests the market's appetite for new iPhones won't wane anytime soon. Furthermore, a recent survey by AddictiveTips found that 94% of iPhone users planned to stick with Apple, compared to just 80% of Android users who planned to stick with their current brand.
That brand loyalty, along with the sticky nature of Apple's ecosystem, should lock more users into its subscription-based services. That's why it reached a whopping 975 million paid subscriptions across all of its services in the second quarter, which equaled 18% growth from its 825 million subscribers in the prior-year period.
That massive audience of paid users puts Apple in a prime position to challenge Netflix in the streaming video race with Apple TV+, Spotify in streaming music with Apple Music, and a wide range of video game publishers with Apple Arcade. It's been bundling together all those services -- along with Apple News+, Apple Fitness+, and iCloud+ -- in its Apple One subscription bundles.
As for the company's sluggish hardware sales, the bulls will emphasize that its iPhone, Mac, and iPad sales have bounced back from plenty of cyclical downturns before. They also believe Apple will likely launch new devices -- including its long-rumored mixed-reality headsets -- to diversify that portfolio in the near future.
Last but not least, Apple ended its second quarter with $166 billion in cash and marketable securities, and it bought back nearly 40% of its outstanding shares over the past 10 years. It also just authorized another $90 billion buyback plan, which indicates it aims to return most of its cash to its investors instead of making reckless acquisitions.
Stick with the bulls
Apple has repeatedly proven the bears wrong over the past decade. Its stock isn't cheap and its forward dividend yield of 0.6% seems paltry, but this tech juggernaut still has plenty of room to expand its business. Investors should focus on those long-term strengths -- along with its massive pile of cash -- and stay bullish on this evergreen tech stock.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Microsoft, Netflix, and Spotify Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) stock rallied 5% on May 5 after the tech giant posted its latest earnings report. Apple's Mac and iPad sales, which together accounted for 15% of its top line in Q2, also declined against difficult comparisons to their launches of M1-powered devices a year earlier, as well as macro and currency headwinds. Those pressures could persist throughout the rest of the year as consumers buy fewer Macs and iPads for remote work and online learning in a post-pandemic market.
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Apple's (NASDAQ: AAPL) stock rallied 5% on May 5 after the tech giant posted its latest earnings report. Apple's services revenue, which comes from its App Store and subscription-based services, rose 5% year over year in the second quarter and accounted for 22% of its top line. Analysts expect Apple's revenue and earnings to decline 2% and 3%, respectively, this year as its soft hardware sales offset its rising services revenue.
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Apple's (NASDAQ: AAPL) stock rallied 5% on May 5 after the tech giant posted its latest earnings report. What the bulls will tell you about Apple The bulls will acknowledge that Apple faces a near-term slowdown and relies too much on the iPhone, but they'll also point out its iPhone sales actually just set a new fiscal Q2 record, which suggests the market's appetite for new iPhones won't wane anytime soon. That massive audience of paid users puts Apple in a prime position to challenge Netflix in the streaming video race with Apple TV+, Spotify in streaming music with Apple Music, and a wide range of video game publishers with Apple Arcade.
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Apple's (NASDAQ: AAPL) stock rallied 5% on May 5 after the tech giant posted its latest earnings report. Its iPhone sales rose 1.5% year over year, but it will likely face diminishing returns as the aging smartphone market becomes increasingly saturated. Apple's services revenue, which comes from its App Store and subscription-based services, rose 5% year over year in the second quarter and accounted for 22% of its top line.
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15926.0
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2023-05-09 00:00:00 UTC
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The 7 Best Meme Stocks to Buy for 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-best-meme-stocks-to-buy-for-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Meme stocks comprise a wide spectrum of companies ranging from those sensible investors steer clear of, to firms with near-universal respect. This list of investment ideas sourced from here pulls primarily from the latter.
Several of the stocks listed below are absolute leaders in their respective industries, and among the most important firms globally. The rest have reasonable catalysts, and though somewhat risky, make sense overall. None are firms that have been co-opted by irrational investors with excess money hell-bent on propping up dead firms to spite the powers that be.
All in all, the moderate-risk stocks on this list reflect the overarching truth that meme stocks can’t be bucketed together. Not every meme stock is a laughing stock, and some retail investors’ ideas are as valid.
AAPL Apple $173.50
CMA Comerica $36.15
JPM JPMorgan Chase $137.07
DKNG DraftKings $24.18
CVNA Carvana $11.30
MO Altria $46.61
FSR Fisker $6.62
Apple (AAPL)
Source: mama_mia / Shutterstock.com
First on this list of meme stocks to buy in 2023 is none other than Apple (NASDAQ:AAPL), the largest company in the world. Indeed, AAPL stock continues to be a winner, even as many have suspected it may be ready to tumble. The overarching notion is that a recession poses a major threat to consumer spending, directly threatening Apple and its expensive consumer products in the process.
Indeed, if you were to look at Apple’s top-line results, it might be tempting to conclude that that is the case currently. Q1 sales fell from $97.3 billion in 2022 to $94.83 billion through the first quarter of 2023. Net income fell, and earnings were flat.
But that cursory analysis misses the important details that tell a greater story. iPhone sales improved in Q1, and are by far the most important driver of revenue for Apple. Further, U.S. economic woes aren’t transferring globally based on iPhone sales. In fact, the Americas is the only region where an appreciable decline in iPhone sales occurred in Q1. The key takeaway is that Apple’s global-scale brand recognition is protecting the company from declines seen in its domestic base is suffering.
Comerica (CMA)
Source: fizkes / Shutterstock.com
Comerica (NYSE:CMA) is my choice for investors who want to chase gains from the volatility that continues to affect mid-tier banks.
To understand my point, let’s juxtapose Comerica with Western Alliance Bancorp (NYSE:WAL), another popular regional bank meme stock. In both cases, meme stock investors have identified these stocks as having the potential to provide quick returns.
Both dropped recently, as regional bank fears reemerged. And both rebounded to a significant degree, just as quickly as those fears dissipated. That leaves further rebound potential on the table in both cases.
That said, I think Comerica is the best choice, simply because it’s performing better overall. Both banks saw deposits shrink following the regional banking collapse. And both banks have seen a rapid increase in interest income as rates have increased. However, Comerica has managed to increase its net income in Q1 by $135 million on a year-over-year basis, while Western Alliance Bancorp has seen its income decline by $97.9 million year-over-year. Thus, CMA stock is among the safer bets for those chasing quick returns on a banking rebound.
JPMorgan Chase (JPM)
Source: Shutterstock
JPMorgan Chase (NYSE:JPM) continues to look like the bank to invest in come what may. The largest U.S. bank’s earnings tell a story of the already strong getting even stronger. As we already know, JPMorgan has emerged as a winner from the banking crisis that has affected regional banks.
JPMorgan swooped in, playing the role of big brother, and ultimately saving the day by injecting capital into the banking system. Of course, JPMorgan helped itself along the way, using the crisis to acquire the most desirable parts of First Republic while playing the role of banking savior in the process. It was a win-win situation, if ever there was one.
JPMorgan sifted through the rubble at First Republic selectively acquiring the most attractive branches within the company. Additionally, the bank acquired affluent clientele in attractive markets, and appears focused on turning those branches into JPMorgan wealth centers.
It’s a fine strategy for a company that saw revenues increase by 25% in the first quarter, alongside a spike in net income of 52% in the same period.
DraftKings (DKNG)
Source: Lori Butcher/Shutterstock.com
Online gambling firm DraftKings (NASDAQ:DKNG) just got a lot more attractive following its first-quarter earnings release.
DraftKings reported $770 million in Q1 revenues. That equated to an 85% year-over-year increase, compared to the $417 million in Q1 2022. The results were impressive on their own. However, they also represented an impressive beat on the bottom line. The company was able to narrow its losses to 51 cents, which was much better than the loss of 70 cents analysts had been expecting for the quarter.
These strong results represent a big leap forward for the company, bringing it much closer to breakeven. Management increased its EBITDA midpoint from -$400 million to -$315 million following the positive news.
Further, Draftkings now anticipates that the company will now record $190 million more in midpoint revenues than it had previously expected.
The company attracted more paying customers, while also getting more revenue out of its existing customer base. This winning combination has the company soaring higher, and could lead to more gains down the road.
Carvana (CVNA)
Source: Ken Wolter / Shutterstock.com
Carvana (NYSE:CVNA) continues to sell fewer and fewer vehicles. However, I think this company is among the meme stocks that continues to get stronger in 2023. Carvana sold under 80,000 vehicles this quarter, down from more than 105,000 during the same period a year ago.
In general, that would signal trouble. But Carvana’s issue is less about growth than it is about an unhealthy business model and losses. What matters is the company’s ability to narrow its losses and find ways to drive efficiency from within to achieve that goal.
Indeed, Carvana’s progress toward that goal is very evident in its recent earnings results. The company’s losses narrowed from $506 million in the first quarter of 2022 to $286 million during the same quarter this year. Adjusted EBITDA figures are the real star here though, as Carvana’s $24 million loss this quarter was a huge improvement over the $386 million loss 12 months earlier.
So what is Carvana’s secret? It’s become much more efficient in buying and selling vehicles. Carvana profited $4,303 from each vehicle it sold this quarter, whereas that figure was $2,833 in Q1 2022.
Altria (MO)
Source: Kristi Blokhin / Shutterstock.com
Altria (NYSE:MO) continues to strategically move toward its goals while rewarding stockholders handsomely. Like all big tobacco firms, Altria has suffered a sales decline, as cigarette smoking rates have dropped. Thus, the company has had to pivot its business to better-address changing attitudes about nicotine and tobacco in the process. That has resulted in a number of high-growth opportunities outside of cigarettes, including various smoke-free tobacco products.
Outside of its business shift, MO stock is also a dividend juggernaut. Currently, Altria pays a dividend yielding 8.1%. That’s a high-yield dividend, which generally equates to high risk and the potential for interrupted payments. However, this seems unlikely in the case of Altria, which hasn’t reduced its dividend since 1970.
The company maintains a high payout ratio, but it’s a strategy meant to keep investors engaged with the company as it pivots. That’s why the company has pledged to target mid-single-digit dividend increases through 2030. Altria remains one of the safest high-yield stocks available to investors right now.
Fisker (FSR)
Source: Eric Broder Van Dyke / Shutterstock.com
Rounding out this list of meme stocks to buy is Fisker (NYSE:FSR), another firm that is executing a strategy to grow. The company went public via a SPAC deal in the summer of 2020, at the height of SPAC EV mania. But instead of attempting to build manufacturing operations with the infusion of cash, it adopted a different strategy entirely.
Magna International (NYSE:MGA) was outsourced to build Fisker’s debut Ocean SUV. The Austrian firm has a strong track record as an original equipment manufacturer in the automotive industry. Fisker focused on marketing, while Magna made sure the Ocean would be of higher quality than many other SPAC EV products.
Fisker met its goal to begin November 2022 production of the Ocean SUV. That led to 63,000 orders and the expected production of 42,400 vehicles this year. Fisker just delivered the first of those vehicles to a customer in Denmark. It’s a great example of a business following a reasonable plan while so many other SPAC EV firms have flopped massively.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post The 7 Best Meme Stocks to Buy for 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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AAPL Apple $173.50 CMA Comerica $36.15 JPM JPMorgan Chase $137.07 DKNG DraftKings $24.18 CVNA Carvana $11.30 MO Altria $46.61 FSR Fisker $6.62 Apple (AAPL) Source: mama_mia / Shutterstock.com First on this list of meme stocks to buy in 2023 is none other than Apple (NASDAQ:AAPL), the largest company in the world. Indeed, AAPL stock continues to be a winner, even as many have suspected it may be ready to tumble. To understand my point, let’s juxtapose Comerica with Western Alliance Bancorp (NYSE:WAL), another popular regional bank meme stock.
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AAPL Apple $173.50 CMA Comerica $36.15 JPM JPMorgan Chase $137.07 DKNG DraftKings $24.18 CVNA Carvana $11.30 MO Altria $46.61 FSR Fisker $6.62 Apple (AAPL) Source: mama_mia / Shutterstock.com First on this list of meme stocks to buy in 2023 is none other than Apple (NASDAQ:AAPL), the largest company in the world. Indeed, AAPL stock continues to be a winner, even as many have suspected it may be ready to tumble. JPMorgan Chase (JPM) Source: Shutterstock JPMorgan Chase (NYSE:JPM) continues to look like the bank to invest in come what may.
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AAPL Apple $173.50 CMA Comerica $36.15 JPM JPMorgan Chase $137.07 DKNG DraftKings $24.18 CVNA Carvana $11.30 MO Altria $46.61 FSR Fisker $6.62 Apple (AAPL) Source: mama_mia / Shutterstock.com First on this list of meme stocks to buy in 2023 is none other than Apple (NASDAQ:AAPL), the largest company in the world. Indeed, AAPL stock continues to be a winner, even as many have suspected it may be ready to tumble. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meme stocks comprise a wide spectrum of companies ranging from those sensible investors steer clear of, to firms with near-universal respect.
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AAPL Apple $173.50 CMA Comerica $36.15 JPM JPMorgan Chase $137.07 DKNG DraftKings $24.18 CVNA Carvana $11.30 MO Altria $46.61 FSR Fisker $6.62 Apple (AAPL) Source: mama_mia / Shutterstock.com First on this list of meme stocks to buy in 2023 is none other than Apple (NASDAQ:AAPL), the largest company in the world. Indeed, AAPL stock continues to be a winner, even as many have suspected it may be ready to tumble. The company’s losses narrowed from $506 million in the first quarter of 2022 to $286 million during the same quarter this year.
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15927.0
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2023-05-09 00:00:00 UTC
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Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know
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AAPL
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https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-4
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +7.1%, compared to the Zacks S&P 500 composite's +1.2% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of -2.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.1%.
The consensus earnings estimate of $6.03 for the current fiscal year indicates a year-over-year change of -1.3%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.63 indicates a change of +9.9% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $80.92 billion for the current quarter points to a year-over-year change of -2.5%. The $384.56 billion and $409.65 billion estimates for the current and next fiscal years indicate changes of -2.5% and +6.5%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $94.84 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $1.52 for the same period compares with $1.52 a year ago.
Compared to the Zacks Consensus Estimate of $93.32 billion, the reported revenues represent a surprise of +1.63%. The EPS surprise was +5.56%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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15928.0
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2023-05-09 00:00:00 UTC
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The 7 Best Reddit Stocks to Buy for 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-best-reddit-stocks-to-buy-for-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Reddit has become a treasure trove for investors looking for high-risk/high-reward opportunities, which makes the best Reddit stocks to buy incredibly pertinent. This vibrant community of risk-embracing individuals exchanges valuable insights on stocks that could potentially offer above-average returns. Beneath the humor, these Reddit users also delve into fundamental analysis, sharing practical advice online.
The platform has effectively evolved from a simple information-sharing platform into an essential resource for investors hunting for top Reddit stocks. In fact, a recent survey revealed that more than half of the top institutional investors polled rely on Reddit for decision-making. Therefore, seeking out the best Reddit stock picks is imperative for investors looking to play trends and, in the process, rake in a lot of moolah.
Though Reddit investing traditionally involves wagering on risky stocks, the article’s focus is quite the opposite. The stocks listed below are among the most trending stocks of Reddit, which conflict with the investments its users usually push on the platform.
TSLA Tesla $171.79
SPY SPDR S&P 500 ETF Trust $412.74
DTE DTE Energy $113.00
AAPL Apple $173.50
AI C3.ai $19.23
IBKR Interactive Brokers Group $78.11
AMD Advanced Micro Devices $95.04
Tesla (TSLA)
Source: ssi77 / Shutterstock.com
Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. It continues to forge ahead, despite facing headwinds after its first-quarter earnings miss in mid-April. Moreover, with its stock down over 8% over the past month, it presents an excellent buy-the-dip scenario for savvy investors.
The company delivered a whopping 422,875 cars globally, following price cuts in the first quarter. This number came in comfortably ahead of the 421,164 deliveries expected by its analysts. Moreover, it announced its ambitious production goals of 1.8 million to 2 million vehicles this year, which could be a significant catalyst for its stock. Also, its investors have plenty to look forward to with the company, with the launch of Tesla’s much-awaited Cybertruck and the inauguration of its new manufacturing facility in Mexico.
Furthermore, institutional investor sentiment surrounding the stock remains excellent, with hedge funds adding more than 700,000 of its shares to their portfolios in the first quarter. Following earnings, Maverick stock pickers such as Cathie Wood also doubled down on TSLA stock.
SPDR S&P 500 ETF Trust (SPY)
Source: Shutterstock
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is a leading exchange-traded fund (ETF) that effortlessly tracks the performance of the illustrious S&P 500 index. The S&P 500 index needs no introduction, as it tracks 500 of the most powerful market-cap heavyweights in the U.S. stock market.
After ending 2022 in the red, the SPY ETF is up almost 8% year-to-date. Once markets get more clarity over the interest rate environment, the ETF is likely to reward its shareholders over time. Over the past decade, it’s been an impressive wealth generator for its investors, racking up more than 200% of total returns. Moreover, it boasts a tremendous dividend profile, with almost 30 years of consecutive payments, compared to the sector median of just 2.5 years.
DTE Energy (DTE)
Source: Shutterstock
DTE Energy (NYSE:DTE) is a leading diversified energy company based in Detroit, Michigan. It generates, distributes, and sells electricity and natural gas to millions of customers in Michigan through its regulated subsidiaries.
Due to the nature of its business, DTE offers stable returns to its investors, with healthy price stock price appreciation and a robust dividend. Total returns for the stock over the past decade exceed 150%, including a dividend that’s been growing for 13 consecutive years.
Furthermore, DTE Energy focuses on sustainability through its investments in renewable energy sources. For instance, DTE Electric invested more than a whopping $750 million during the first quarter on the back of continued improvements in clean energy generation for its customers. Moreover, it started operations at Michigan’s largest wind park during the quarter, potentially powering 78,000 homes in the state with this power source alone.
Apple (AAPL)
Source: Hadrian / Shutterstock.com
Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. Additionally, the company’s ability to reward its shareholders with its cash flow-generating machine is second to none in its niche. Apple recently delighted shareholders by announcing a massive $90 billion buyback, while raising its quarterly dividend by 4.3% to 24 cents per share.
Furthermore, it recently posted its relatively strong first quarter results, which beat estimates on sales by $2 billion, and its earnings per share by nine cents per share. Its strong results were driven by encouraging smartphone demand, despite the slowdown in the space.
Furthermore, Apple is making strategic forays into new markets to diversify its revenue base further. Impressively, its partnership with Goldman Sachs (NYSE:GS) to launch a high-yield savings account garnered $1 billion in deposits within four days of launching. Simultaneously, the tech giant is tapping into India’s vast middle-class market, which could lead to it tripling its sales to $20 billion by 2025.
C3.ai (AI)
Source: Shutterstock
C3.ai (NYSE:AI) remains a frontrunner in the realm of hyper-growth stocks, with its shares skyrocketing by over 100% this year on the back of the hullabaloo surrounding artificial intelligence. Keeping a long-term investing horizon in mind is critical in winning big with AI stocks, given this sector’s colossal growth trajectory.
Speaking of growth trajectory, C3.ai’s CEO Tim Siebel envisions a $600 billion market for AI software, foreseeing AI becoming commonplace with the widespread use of enterprise AI applications. Therefore, you’d want to ignore the company’s short-term struggles, and instead focus on its enticing long-term picture.
Its business is currently experiencing slower growth due to a shift from a subscription-based to a consumption-based business model. However, this transition will effectively streamline the sales cycle, and boost revenue and profitability, strengthening the firm’s market position in the long-run.
Interactive Brokers Group (IBKR)
Source: shutterstock.com/eamesBot
Interactive Brokers Group (NASDAQ:IBKR) is a leading dynamic broker-dealer, appealing to traders looking for diverse investment options. Its services encompass stocks, options, futures, forex, bonds, and other investments across 150 exchanges.
Over the years, the firm has enjoyed spectacular customer growth, boasting a 30% increase in total accounts. Moreover, Interactive Brokers remains on track to effectively acquire 80 million accounts in the long term, roughly 1% of the world’s population. Thanks to the firm’s steadfast commitment to engineering, automation, and its capacity to serve customers globally, it’s poised for robust gains over the long-term.
Its valuation is mighty attractive at current prices, with IBKR stock trading at under 2-times trailing-twelve-month cash flows, roughly 66% lower than the sector median. Over the years, it has been an amazing wealth compounder, providing a return of over 430% in the past decade. Also, it’s been paying a dividend for the past couple of years, which should grow in line with its rock-solid business.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) has hit a rough patch of late, on the back of weaker-than-anticipated demand in the PC Client and data center end markets. Nevertheless, its temporary hiccups shouldn’t deter investors from its massive long-term potential.
Indeed, AMD has effectively solidified its position as a leading chip stock with popular Ryzen CPUs and GPUs for personal computers. As my fellow InvestorPlace colleague Chris MacDonald remarked, Ryzen CPUs have allowed AMD to effectively outpace its main rival Intel (NASDAQ:INTC) in sales at a rapid pace.
Additionally, AMD has significantly expanded its integrated solutions and data center segments, gearing up to maximize its potential in the AI market. The rumor mill has been buzzing over its potential partnership with Microsoft (NASDAQ:MSFT) in expanding its push into AI processors, a potentially gigantic opportunity.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post The 7 Best Reddit Stocks to Buy for 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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TSLA Tesla $171.79 SPY SPDR S&P 500 ETF Trust $412.74 DTE DTE Energy $113.00 AAPL Apple $173.50 AI C3.ai $19.23 IBKR Interactive Brokers Group $78.11 AMD Advanced Micro Devices $95.04 Tesla (TSLA) Source: ssi77 / Shutterstock.com Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. Apple (AAPL) Source: Hadrian / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. Keeping a long-term investing horizon in mind is critical in winning big with AI stocks, given this sector’s colossal growth trajectory.
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TSLA Tesla $171.79 SPY SPDR S&P 500 ETF Trust $412.74 DTE DTE Energy $113.00 AAPL Apple $173.50 AI C3.ai $19.23 IBKR Interactive Brokers Group $78.11 AMD Advanced Micro Devices $95.04 Tesla (TSLA) Source: ssi77 / Shutterstock.com Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. Apple (AAPL) Source: Hadrian / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. DTE Energy (DTE) Source: Shutterstock DTE Energy (NYSE:DTE) is a leading diversified energy company based in Detroit, Michigan.
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TSLA Tesla $171.79 SPY SPDR S&P 500 ETF Trust $412.74 DTE DTE Energy $113.00 AAPL Apple $173.50 AI C3.ai $19.23 IBKR Interactive Brokers Group $78.11 AMD Advanced Micro Devices $95.04 Tesla (TSLA) Source: ssi77 / Shutterstock.com Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. Apple (AAPL) Source: Hadrian / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Reddit has become a treasure trove for investors looking for high-risk/high-reward opportunities, which makes the best Reddit stocks to buy incredibly pertinent.
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TSLA Tesla $171.79 SPY SPDR S&P 500 ETF Trust $412.74 DTE DTE Energy $113.00 AAPL Apple $173.50 AI C3.ai $19.23 IBKR Interactive Brokers Group $78.11 AMD Advanced Micro Devices $95.04 Tesla (TSLA) Source: ssi77 / Shutterstock.com Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. Apple (AAPL) Source: Hadrian / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. The stocks listed below are among the most trending stocks of Reddit, which conflict with the investments its users usually push on the platform.
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15929.0
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2023-05-09 00:00:00 UTC
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3 Stocks That Soared After Earnings but Still Have Room to Run
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-soared-after-earnings-but-still-have-room-to-run
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nan
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nan
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So far, this earnings season is chock-full of the usual volatility. It can seem strange that a singleearnings callcan have such a profound effect on a company's valuation. And while it's easy to get caught up in the noise, a better way to view earnings announcements is within the context of the broader investment thesis instead of as stand-alone scorecards.
Apple (NASDAQ: AAPL), Vertiv (NYSE: VRT), and Sunnova (NYSE: NOVA) are three stocks that are rising after earnings but still may be worth buying now because they are fundamentally strong businesses. Here's what makes each stock worth a look.
Image source: Getty Images.
Apple is the gift that keeps on giving
Daniel Foelber (Apple): Apple stock soared 4.7% on Friday in response to strong earnings. Apple stock is now trading within just 5% of its all-time high. The company continues to grow sales despite a slew of headwinds, proving its brand and pricing power are as resilient as ever.
The headline story was record fiscal Q2 iPhone sales of $51.3 billion and all-time high services sales of $20.9 billion. However, the biggest vote of confidence for shareholders may be the company's relentless buybacks.
On its fiscal Q2earnings call Apple said that it returned $23 billion to shareholders in the quarter through $3.7 billion in dividends and $19.1 billion in share repurchases. Apple also said that its board authorized an additional $90 billion in share repurchases.
Apple repurchased 129 million shares in the quarter, which is over 1 million shares a day. Apple's consistent purchase of its own stock provides a willing and able buyer no matter what the stock market is doing, which is both a psychological and technical means of support for the stock.
Apple's confidence in the value of its own stock despite it being near an all-time high is a signal that the company believes it is a good value. Stock buybacks provide a long-term benefit to shareholders by reducing the outstanding share count and boosting earnings per share (EPS). In this vein, stock buybacks can be far more rewarding to shareholders than dividends.
Apple's dividend yield is just 0.6% and has fallen in recent years because dividend raises have not kept up with its stock price. However, Apple has reduced its outstanding share count by a staggering 37.8% over the last decade, which has been a primary catalyst behind its EPS growth.
AAPL EPS Diluted (TTM) data by YCharts
Apple is one of the most powerful brands in the world. It is a well-run business that also rewards its shareholders. Even after its recent run-up, Apple stock remains a buy.
Vertiv is rebuilding confidence with investors
Lee Samaha (Vertiv): Data equipment provider Vertiv's stock looked cheap just before its first-quarter results were announced. After all, management's full-year guidance going into the quarter was for adjusted diluted earnings per share of $1.17-$1.27 and adjusted free cash flow (FCF) of $300 million to $400 million. To put those figures into context, the day before the release of the results, Vertiv traded at $12.46 and had a market cap of $4.64 billion, putting it at 10.2 times forward earnings and 13.3 times forward FCF -- using the midpoints of guidance.
The market was worried about something, and that something was the fact that the company missed its earnings and cash-flow guidance for 2022. Vertiv sells into desirable end markets (colocation data centers and the fast-growing cloud/hyper-scale market). Still, its problem in the last couple of years has been overcoming soaring costs and getting back in front of the inflation curve by raising prices. As such, investors wanted to see if Vertiv would meet its working capital and cash-flow guidance for the first quarter.
The excellent news is Vertiv sailed past both figures and notably delivered $25 million in adjusted FCF compared to guidance for an outflow of $50 million to $100 million. Consequently, management raised its full-year EPS guidance to $1.22-$1.32 and maintained its full-year FCF guidance. As of this writing, the stock trades at $14.91 or 11.7 times forward earnings. That's still too cheap for a company in such attractive end markets.
Sunnova is a clean energy stock that's powering the bulls' excitement
Scott Levine (Sunnova): To be fair, Sunnova's first-quarter 2023 results weren't a total ray of sunshine. The residential solar company reported revenue of $161.7 million, surpassing analysts' top-line expectation of $150 million, but it came up short on the bottom line. While analysts estimated the company would report a loss per share of $0.64, Sunnova reported a loss per share of $0.70. Management's auspicious outlook for 2023, however, paired with the revenue beat was enough to make investors happy, and shares soared in response.
The unambiguously good news that investors received during the earnings report was that management foresees strong customer growth in 2023. During Q1 2023, Sunnova added about 30,000 customers -- about twice the number of customers added during the same period last year. And management sees continued growth in customer acquisitions in the coming months. In fact, it raised its new customer guidance by about 10,000, projecting that it will now add between 125,000 to 135,000 customers in 2023. For context, at the end of 2022, Sunnova had about 280,000 customers.
Should the company succeed in growing its customer base, there's a strong chance that investors will bid the stock higher. There's an even greater chance that shares will rise if Sunnova succeeds in increasing the average number of services per customer. In addition to residential solar systems, Sunnova offers EV charging solutions, generators, and energy storage solutions, to name a few.
Currently, Sunnova's customers have 3.6 services on average, but management targets increasing the average number of services per customer to seven by the end of 2025. If it succeeds in both metrics, the company should make significant progress toward achieving profitability -- and the stock may likewise rise considerably.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 1, 2023
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. 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), Vertiv (NYSE: VRT), and Sunnova (NYSE: NOVA) are three stocks that are rising after earnings but still may be worth buying now because they are fundamentally strong businesses. AAPL EPS Diluted (TTM) data by YCharts Apple is one of the most powerful brands in the world. And while it's easy to get caught up in the noise, a better way to view earnings announcements is within the context of the broader investment thesis instead of as stand-alone scorecards.
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Apple (NASDAQ: AAPL), Vertiv (NYSE: VRT), and Sunnova (NYSE: NOVA) are three stocks that are rising after earnings but still may be worth buying now because they are fundamentally strong businesses. AAPL EPS Diluted (TTM) data by YCharts Apple is one of the most powerful brands in the world. Apple is the gift that keeps on giving Daniel Foelber (Apple): Apple stock soared 4.7% on Friday in response to strong earnings.
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Apple (NASDAQ: AAPL), Vertiv (NYSE: VRT), and Sunnova (NYSE: NOVA) are three stocks that are rising after earnings but still may be worth buying now because they are fundamentally strong businesses. AAPL EPS Diluted (TTM) data by YCharts Apple is one of the most powerful brands in the world. Apple is the gift that keeps on giving Daniel Foelber (Apple): Apple stock soared 4.7% on Friday in response to strong earnings.
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Apple (NASDAQ: AAPL), Vertiv (NYSE: VRT), and Sunnova (NYSE: NOVA) are three stocks that are rising after earnings but still may be worth buying now because they are fundamentally strong businesses. AAPL EPS Diluted (TTM) data by YCharts Apple is one of the most powerful brands in the world. For context, at the end of 2022, Sunnova had about 280,000 customers.
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15930.0
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2023-05-09 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-7
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nan
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nan
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Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $12.47 billion, this makes it one of the largest ETFs in the Style Box - All Cap Growth. IUSG is managed by Blackrock. IUSG, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.04%.
IUSG's 12-month trailing dividend yield is 1.01%.
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.
IUSG's heaviest allocation is in the Information Technology sector, which is about 32.70% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
IUSG's top 10 holdings account for about 40.17% of its total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 10.56% so far, and is down about -1% over the last 12 months (as of 05/09/2023). IUSG has traded between $78.88 and $99.02 in this past 52-week period.
The fund has a beta of 1.06 and standard deviation of 22.64% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 476 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $769.30 million in assets, iShares Morningstar Growth ETF has $1.61 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Performance and Risk Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 10.56% so far, and is down about -1% over the last 12 months (as of 05/09/2023).
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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15931.0
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2023-05-09 00:00:00 UTC
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Is Tech Stocks' Dominance A Warning Signal For The Broad Market?
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AAPL
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https://www.nasdaq.com/articles/is-tech-stocks-dominance-a-warning-signal-for-the-broad-market
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nan
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nan
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Investors sitting on the sidelines, waiting for the next shoe to drop, have missed out on the year-to-date gains of a small number of S&P 500 stocks largely responsible for this year’s 8.31% gain in the large-cap index. Those stocks, and their returns, are:
Apple Inc. (NASDAQ: AAPL): 33.59%
Microsoft Corp. (NASDAQ: MSFT): 29.53%
Nvidia Inc. (NASDAQ: NVDA): 96.25%
Meta Platforms Inc. (NASDAQ: META): 93.44%
Alphabet Inc. (NASDAQ: GOOGL): 19.65%
Amazon.com Inc. (NASDAQ: AMZN): 25.99%
Apple and Microsoft alone account for 14.15% of the entire S&P 500. When you include the other four stocks named above, your total is nearly 24% of index weighting.
That’s a problem for the broad market. The purpose of an index is to track a broad, diversified basket of stocks, which, in theory, offers a wide lens on overall market and business cycle activity.
Are Investors Diversified Now?
For investors who hold ETFs such as the SPDR S&P 500 ETF Trust (NYSEARCA: SPY), the selling point has always been broad sector and industry diversification. The thinking goes, if techs have a rough year, maybe consumer staples or industrials will pick up the slack.
But when a small number of companies, all from the same sector, are so dominant, that changes the role of an index or index fund.
In addition to all of the above stocks hailing from the tech sector, there’s another factor driving much of the growth: AI. With several stocks in the list, it’s pretty clear to see the connection, and it’s been covered extensively by MarketBeat.
Apple hasn’t formally announced AI initiatives, as some of the others have, In the company’s most recentearnings conference call CEO Tim Cook responded to an analysts’s question about AI plans, saying, “I do think it’s very important to be deliberate and thoughtful in how you approach these things. And there’s a number of issues that need to be sorted, as is being talked about in a number of different places, but the potential is certainly very interesting.”
Apple is recruiting for team members with expertise in AI and machine learning in its various groups.
With Amazon, most investors immediately think of the e-commerce applications, and those blue vans pulling up to the driveway. But one big line of business is Amazon Web Services (AWS), which accounts for about 14%, or $21.4 billion in revenue for the company.
Machine Learning In The Spotlight
Amazon touts AWS’ machine-learning services to prospective customers. In addition, its warehouses and other operations are increasingly driven by AI. It’s also boosting its podcast features with a new AI acquisition, a privately held company called Snackable AI.
In an April 25 research note, J.P. Morgan’s global markets strategies team pointed out the lack of market breadth in the S&P 500 this year, calling it the “ narrowest stock leadership in an up market since the 1990s.”
The J.P. Morgan analysts specifically cited market-cap creation of $1.4 trillion among a small number of stocks, due to interest in generative AI and large-language models.
The analysts termed this phenomenon “mega-cap crowding,” and added that the current level of mega-cap crowding implies that the risk of recession is not priced into markets.
They also cited a strong upside in Salesforce Inc. (NYSE: CRM), which is not among the top 10 most heavily weighted S&P 500 stocks, but also benefited from interest in its AI endeavors. Salesforce boasts a year-to-date return of 49.02%, putting it among the index’s top gainers.
Concentration Risk
While concentration risk is very much a real concern in portfolio allocation, there’s also the reality that about three-fourths of stocks tend to follow the market’s direction. While techs got hit especially hard in 2022, energy and utilities were the only sectors with a gain, and utilities eked out a gain of 1.69%, doing their job as defensives, and helped by dividends.
It’s never a bad idea to diversify and spread the risk. Investors with an outsized concentration in large tech stocks that have been going gangbusters this year should monitor their holdings closely. If they show signs of selling off, such as falling below their 50-day averages, it may be time to pare back and take some profits.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those stocks, and their returns, are: Apple Inc. (NASDAQ: AAPL): 33.59% Microsoft Corp. (NASDAQ: MSFT): 29.53% Nvidia Inc. (NASDAQ: NVDA): 96.25% Meta Platforms Inc. (NASDAQ: META): 93.44% Alphabet Inc. (NASDAQ: GOOGL): 19.65% Amazon.com Inc. (NASDAQ: AMZN): 25.99% Apple and Microsoft alone account for 14.15% of the entire S&P 500. The purpose of an index is to track a broad, diversified basket of stocks, which, in theory, offers a wide lens on overall market and business cycle activity. They also cited a strong upside in Salesforce Inc. (NYSE: CRM), which is not among the top 10 most heavily weighted S&P 500 stocks, but also benefited from interest in its AI endeavors.
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Those stocks, and their returns, are: Apple Inc. (NASDAQ: AAPL): 33.59% Microsoft Corp. (NASDAQ: MSFT): 29.53% Nvidia Inc. (NASDAQ: NVDA): 96.25% Meta Platforms Inc. (NASDAQ: META): 93.44% Alphabet Inc. (NASDAQ: GOOGL): 19.65% Amazon.com Inc. (NASDAQ: AMZN): 25.99% Apple and Microsoft alone account for 14.15% of the entire S&P 500. Investors sitting on the sidelines, waiting for the next shoe to drop, have missed out on the year-to-date gains of a small number of S&P 500 stocks largely responsible for this year’s 8.31% gain in the large-cap index. Concentration Risk While concentration risk is very much a real concern in portfolio allocation, there’s also the reality that about three-fourths of stocks tend to follow the market’s direction.
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Those stocks, and their returns, are: Apple Inc. (NASDAQ: AAPL): 33.59% Microsoft Corp. (NASDAQ: MSFT): 29.53% Nvidia Inc. (NASDAQ: NVDA): 96.25% Meta Platforms Inc. (NASDAQ: META): 93.44% Alphabet Inc. (NASDAQ: GOOGL): 19.65% Amazon.com Inc. (NASDAQ: AMZN): 25.99% Apple and Microsoft alone account for 14.15% of the entire S&P 500. Investors sitting on the sidelines, waiting for the next shoe to drop, have missed out on the year-to-date gains of a small number of S&P 500 stocks largely responsible for this year’s 8.31% gain in the large-cap index. In an April 25 research note, J.P. Morgan’s global markets strategies team pointed out the lack of market breadth in the S&P 500 this year, calling it the “ narrowest stock leadership in an up market since the 1990s.” The J.P. Morgan analysts specifically cited market-cap creation of $1.4 trillion among a small number of stocks, due to interest in generative AI and large-language models.
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Those stocks, and their returns, are: Apple Inc. (NASDAQ: AAPL): 33.59% Microsoft Corp. (NASDAQ: MSFT): 29.53% Nvidia Inc. (NASDAQ: NVDA): 96.25% Meta Platforms Inc. (NASDAQ: META): 93.44% Alphabet Inc. (NASDAQ: GOOGL): 19.65% Amazon.com Inc. (NASDAQ: AMZN): 25.99% Apple and Microsoft alone account for 14.15% of the entire S&P 500. Investors sitting on the sidelines, waiting for the next shoe to drop, have missed out on the year-to-date gains of a small number of S&P 500 stocks largely responsible for this year’s 8.31% gain in the large-cap index. Are Investors Diversified Now?
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15932.0
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2023-05-09 00:00:00 UTC
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This Popular Brand Has Better Profit Margins Than Apple or Nike. Is the Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/this-popular-brand-has-better-profit-margins-than-apple-or-nike.-is-the-stock-a-buy
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nan
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nan
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For consumer-goods companies, it's hard to create a business model that has wide profit margins. But it appears that Yeti Holdings (NYSE: YETI) didn't get the memo. The maker of rugged coolers, cups, and other outdoor gear had a gross profit margin of 48% in 2022. And that was actually a bad year by Yeti's standards.
Billionaire investor Warren Buffett has a lot to say about high-margin consumer-goods businesses (more on that in a moment). And just how good are Yeti's margins? Well, when it comes to high-margin businesses in the consumer-goods market, few have performed as well as Apple and Nike over the years. And yet, Yeti easily surpasses both companies.
Data source: YCharts. YETI gross profit margin
In my opinion, this one statistic warrants a closer examination of Yeti stock to see if it can beat the market from here.
Why Buffett could be a fan of Yeti
As a long-term investor, I'm concerned about businesses first, not stock prices. But how do you evaluate a business? Buffett once said: "The single-most important decision in evaluating a business is pricing power. If you've got the power to raise prices without losing business to a competitor, you've got a very good business."
Yeti most certainly has pricing power, as we'll see. In 2022, 59% of the company's sales came from the drinkware category: tumblers, mugs, water bottles, and more. And 38% of sales came from coolers and equipment: hard coolers, soft coolers, dry bags, backpacks, and more. The rest came from goods such as T-shirts and hats.
To be sure, Yeti makes high-quality merchandise. There are fun online videos of people failing to destroy its products despite their best efforts. However, these products are also pricey, as evidenced by the company's high gross margin -- there's a huge markup here. And that worries some investors because there are lower-priced comparable products on the market.
However, this hasn't been a problem for Yeti because it seems to have the pricing power that Buffett loves. Indeed, in 2022, the company's gross margin fell to 48% compared to 58% in 2021. But it's not because it was lowering prices. To the contrary, Yeti raised prices and still increased sales 13% year over year in 2022.
Rather, Yeti is taking a hit right now from a voluntary recall on one of its products. There's a cost to doing this, which does hit margins. But the company maintains it high-quality perception, which is important for maintaining pricing power. This narrowing of gross margin should prove temporary, and management expects it to widen to 55% in 2023. In summary, Yeti is a business with pricing power.
Can Yeti stock beat the market?
If Yeti has pricing power, will the stock outperform the market? Not necessarily. Investors can never take one business metric in isolation when building an investment thesis.
To beat the market over the next five years, I believe Yeti will need to grow substantially. One great growth driver for the company will likely be international expansion. Just 12% of revenue in 2022 came from outside the U.S., which is a smaller percentage than other popular consumer-discretionary brands. But this is a fast-growing part of the business, jumping 42% year over year in 2022.
Yeti doesn't have recurring revenue, so expansion into new markets and product lines won't necessarily drive growth unless it can maintain the business it already has. Without recurring revenue or regular repeat purchases, it's hard for investors to confidently predict sales in the future.
Some might point out that other companies with pricing power such as Apple and Nike face a similar issue. And that's technically true. But consumer-tech devices go through frequent upgrade cycles. And shoes wear out within a couple of years. Fans of the Apple or Nike brand could thus make purchases more frequently than fans of the Yeti brand, with its commitment "to making some of the most durable products on the planet."
Indeed, Yeti's high-quality products are great for consumers. However, even the biggest fans of the brand could go a long time without making repeat purchases because the products hold up so well. And that makes sales and future cash flows tough to predict as an investor.
In 2023, Yeti only expects 3% to 5% year-over-year sales growth. Beyond that, management is forecasting annual "double-digit" percentage growth. If it were to fall on the lower end of those anticipated ranges, the stock might not have enough growth to outperform the market, in my opinion.
In conclusion, the long-term outlook isn't quite inspiring enough for me. And I see its prospects as more unpredictable than what I like in an investment, preventing me from buying shares today.
10 stocks we like better than Yeti
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 Yeti 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 April 24, 2023
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nike. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. 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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Without recurring revenue or regular repeat purchases, it's hard for investors to confidently predict sales in the future. However, even the biggest fans of the brand could go a long time without making repeat purchases because the products hold up so well. If it were to fall on the lower end of those anticipated ranges, the stock might not have enough growth to outperform the market, in my opinion.
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Yeti doesn't have recurring revenue, so expansion into new markets and product lines won't necessarily drive growth unless it can maintain the business it already has. Without recurring revenue or regular repeat purchases, it's hard for investors to confidently predict sales in the future. Fans of the Apple or Nike brand could thus make purchases more frequently than fans of the Yeti brand, with its commitment "to making some of the most durable products on the planet."
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YETI gross profit margin In my opinion, this one statistic warrants a closer examination of Yeti stock to see if it can beat the market from here. Why Buffett could be a fan of Yeti As a long-term investor, I'm concerned about businesses first, not stock prices. Yeti doesn't have recurring revenue, so expansion into new markets and product lines won't necessarily drive growth unless it can maintain the business it already has.
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Why Buffett could be a fan of Yeti As a long-term investor, I'm concerned about businesses first, not stock prices. Indeed, in 2022, the company's gross margin fell to 48% compared to 58% in 2021. If Yeti has pricing power, will the stock outperform the market?
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15933.0
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2023-05-09 00:00:00 UTC
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Apple Stock Is Just Too Expensive
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AAPL
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https://www.nasdaq.com/articles/apple-stock-is-just-too-expensive
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nan
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nan
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There's no question that Apple (NASDAQ: AAPL) is a great company. Warren Buffett certainly agrees: Nearly half of Berkshire Hathaway's stock portfolio is tied up in shares of the company. The iPhone remains a dominant force in the smartphone market, and there's no sign that Apple's most important product is going to be disrupted in the near future.
Sky-high profits and one big problem
Apple's report for the fiscal second quarter, which ended April 1, highlighted the company's industry-leading profitability. On $94.8 billion of revenue, Apple produced operating income of $28.4 billion. That's an operating margin of 30%. Apple is also a cash machine. Free cash flow totaled $55.9 billion in the first six months of the fiscal year.
But growth is becoming a problem. In recent years, the company has greatly expanded its services segment, adding new products like Apple TV+ to extract more ongoing revenue from its enormous install base. The effort has certainly paid off: Services revenue reached $20.9 billion in the second quarter alone, making it the second-largest segment behind the iPhone.
The company is facing two headwinds to growth. The first is its enormous size. The iPhone business is already so big, and the company already has such a high market share, that long-term gains are likely to be sluggish at best. Apple did manage to increase iPhone revenue slightly in the second quarter, but it's down in the first six months of the fiscal year.
The second headwind is the economy. Sales of Macs plunged in the second quarter as the PC market convulsed, sales of iPads were down significantly, and even sales of wearables and other products slipped. Services revenue edged up 5%, but it wasn't enough to offset declines elsewhere. Total revenue dropped 2.5% year over year.
Profits were also down. Operating income dipped 5.5% as the company had increased operating expenses despite the revenue decline. An enormous share-buyback program reduced the share count enough to keep per-share earnings flat compared to the prior-year period.
One potential source of future growth is a new blockbuster product that rivals the iPhone in scale. Apple is reportedly working on a number of things, including a virtual/augmented reality headset and some sort of self-driving electric car project. While the headset could add meaningful incremental revenue, the car project seems like a long shot.
A pricey valuation
Analysts expect Apple to produce earnings of $5.95 per share in fiscal 2023. That puts the forward price-to-earnings (P/E) ratio at about 29.
Excluding the early pandemic period, the P/E ratio is higher than at any time since about 2009. Investors considering paying such a lofty price for Apple stock need to ask themselves whether the company's growth prospects are meaningfully better today than they were a decade ago.
For me, the answer looks like no. Milking the iPhone will continue to produce enormous profits, but I think the chances that the company will cook up something new that ignites an iPhone-scale growth surge are slim. And at some point, just like PCs were disrupted by smartphones, the iPhone will be disrupted. If Apple is not the one doing the disrupting, that will spell trouble.
Right now, the S&P 500 trades at a P/E of about 24. Does it make sense for Apple to be significantly more expensive than the broader market? I'm not so sure.
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 1, 2023
Timothy Green 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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There's no question that Apple (NASDAQ: AAPL) is a great company. In recent years, the company has greatly expanded its services segment, adding new products like Apple TV+ to extract more ongoing revenue from its enormous install base. Investors considering paying such a lofty price for Apple stock need to ask themselves whether the company's growth prospects are meaningfully better today than they were a decade ago.
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There's no question that Apple (NASDAQ: AAPL) is a great company. Sky-high profits and one big problem Apple's report for the fiscal second quarter, which ended April 1, highlighted the company's industry-leading profitability. On $94.8 billion of revenue, Apple produced operating income of $28.4 billion.
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There's no question that Apple (NASDAQ: AAPL) is a great company. Sky-high profits and one big problem Apple's report for the fiscal second quarter, which ended April 1, highlighted the company's industry-leading profitability. In recent years, the company has greatly expanded its services segment, adding new products like Apple TV+ to extract more ongoing revenue from its enormous install base.
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There's no question that Apple (NASDAQ: AAPL) is a great company. Sky-high profits and one big problem Apple's report for the fiscal second quarter, which ended April 1, highlighted the company's industry-leading profitability. In recent years, the company has greatly expanded its services segment, adding new products like Apple TV+ to extract more ongoing revenue from its enormous install base.
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15934.0
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2023-05-09 00:00:00 UTC
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US STOCKS-Futures dip on dim earnings forecasts; debt ceiling in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-dip-on-dim-earnings-forecasts-debt-ceiling-in-focus
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nan
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nan
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By Shreyashi Sanyal
May 9 (Reuters) - U.S. stock index futures were lower on Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock.
Regional bank shares, which failed to hold on to their short-lived bounce a day earlier, extended declines, with Pacwest Bancorp PACW.O falling 12.6% and Western Alliance WAL.N dropping 5.9%.
Markets are waiting for an update on the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House later in the day.
Worries of a potential government default loom over Washington as early as June 1, if Congress does not act to resolve the deadlock.
The data-packed week will see the release of the much-awaited inflation report on Wednesday. The Labor Department's consumer price index (CPI) is expected to climb 0.4% in April after gaining 0.1% in March.
Reports on producer prices, weekly jobless claims and consumer sentiment are all lined up for the week.
"Last week's jobs report appeared to have something for every optimist - indicating that the labor market is slowing, showing Fed policy is pushing in the right direction," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
"The feel-good factor has fizzled out as investors play a waiting game for the next slice of data on the economy, while worries about the U.S. defaulting on its debts edge higher again."
At 6:51 a.m. ET, Dow e-minis 1YMcv1 were down 118 points, or 0.35%, S&P 500 e-minis EScv1 were down 14.75 points, or 0.36%, and Nasdaq 100 e-minis NQcv1 were down 53.25 points, or 0.4%.
Among stocks, chip-gear maker Skyworks Solutions Inc's SWKS.O shares tumbled 10% in premarket trading after forecasting current-quarter revenue and earnings below estimates.
Investors were optimistic about Skyworks after Apple Inc's AAPL.O strong quarterly showing on Thursday. Shares of other Apple suppliers including Qualcomm QCOM.O and Qorvo QRVO.O fell 0.6% and 1.5%, respectively.
PayPal Holdings PYPL.O dropped 4.8% after a cut to its margin forecast.
NovavaxNVAX.Oadded 8.5% as the drugmaker plans a 25% cut to its global workforce.
Wall Street's three main indexes ended the previous session flat, but growth-oriented Nasdaq 100 index .NDX touched a more than eight-month high, while the NYSE FANG+TM index .NYFANG jumped to its highest since April 2022.
LPL's Debt ceiling sell-off graphic: April-Oct 2011https://tmsnrt.rs/3M6SRML
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Sonia Cheema and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were optimistic about Skyworks after Apple Inc's AAPL.O strong quarterly showing on Thursday. By Shreyashi Sanyal May 9 (Reuters) - U.S. stock index futures were lower on Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock. Regional bank shares, which failed to hold on to their short-lived bounce a day earlier, extended declines, with Pacwest Bancorp PACW.O falling 12.6% and Western Alliance WAL.N dropping 5.9%.
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Investors were optimistic about Skyworks after Apple Inc's AAPL.O strong quarterly showing on Thursday. By Shreyashi Sanyal May 9 (Reuters) - U.S. stock index futures were lower on Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock. The Labor Department's consumer price index (CPI) is expected to climb 0.4% in April after gaining 0.1% in March.
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Investors were optimistic about Skyworks after Apple Inc's AAPL.O strong quarterly showing on Thursday. By Shreyashi Sanyal May 9 (Reuters) - U.S. stock index futures were lower on Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock. "Last week's jobs report appeared to have something for every optimist - indicating that the labor market is slowing, showing Fed policy is pushing in the right direction," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
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Investors were optimistic about Skyworks after Apple Inc's AAPL.O strong quarterly showing on Thursday. By Shreyashi Sanyal May 9 (Reuters) - U.S. stock index futures were lower on Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock. Reports on producer prices, weekly jobless claims and consumer sentiment are all lined up for the week.
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15935.0
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2023-05-09 00:00:00 UTC
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With Growth Slowing, Is Apple Stock Still A Buy?
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AAPL
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https://www.nasdaq.com/articles/with-growth-slowing-is-apple-stock-still-a-buy
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nan
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nan
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Apple (NASDAQ:AAPL) published a stronger-than-expected set of Q2 FY’23 results. While revenues declined -2.5% versus last year to $94.84 billion, due to lower Mac and iPad sales as well as currency headwinds, this was partly offset by higher sales of digital services and resilience in the iPhone business. Earnings remained almost flat versus last year at about $1.53 per share. So what are some of the trends that have been driving Apple’s results?
Apple’s iPhone business expanded by about 1.5% versus last year, driven by a strong uptake in emerging markets such as India, Indonesia, and Turkey where the company’s installment plans and trade-in programs are helping drive demand. Moreover, it’s likely that Apple saw availability, particularly of the iPhone 14 Pro devices, which remained undersupplied in late 2022. Apple’s digital services business also grew by about 5.5% versus last year with revenue touching a record high of $20.9 billion, driven by strength in the AppStore as well as other subscription services. However, growth rates remain well below the 17% levels seen in Q2 FY’22, as areas such as gaming see a slowdown with the pandemic easing. Apple’s Mac sales declined by about 31% versus last year as the broader PC market faces macro issues, with the easing of Covid-19 related tailwinds such as the remote working and learning trend. That said, interestingly Apple continued to expand its gross margins, with the metric standing at 44.2%, up from 43.7% in the year-ago quarter driven by a higher mix of services sales, the launch of more premium products, and also due to some cost savings.
So is Apple stock a buy post-earnings? We believe the stock is slightly overvalued at current levels (pre-market Friday) of about $170 per share. The stock trades at over 28x forward earnings, which we believe is high, given that Apple’s earnings are poised to contract this year per consensus estimates, with revenue growth projected to remain slow over the next year as well. We value Apple at about $162 per share, about 5% below the market price. See our analysis of Apple Valuation for more details on what’s driving our price estimate for Apple and how it compares with peers.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return -2% 28% 473%
S&P 500 Return -3% 6% 81%
Trefis Multi-Strategy Portfolio -3% 6% 232%
[1] Month-to-date and year-to-date as of 5/5/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) published a stronger-than-expected set of Q2 FY’23 results. Total [2] AAPL Return -2% 28% 473% S&P 500 Return -3% 6% 81% Trefis Multi-Strategy Portfolio -3% 6% 232% [1] Month-to-date and year-to-date as of 5/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple’s iPhone business expanded by about 1.5% versus last year, driven by a strong uptake in emerging markets such as India, Indonesia, and Turkey where the company’s installment plans and trade-in programs are helping drive demand.
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Total [2] AAPL Return -2% 28% 473% S&P 500 Return -3% 6% 81% Trefis Multi-Strategy Portfolio -3% 6% 232% [1] Month-to-date and year-to-date as of 5/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) published a stronger-than-expected set of Q2 FY’23 results. While revenues declined -2.5% versus last year to $94.84 billion, due to lower Mac and iPad sales as well as currency headwinds, this was partly offset by higher sales of digital services and resilience in the iPhone business.
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Total [2] AAPL Return -2% 28% 473% S&P 500 Return -3% 6% 81% Trefis Multi-Strategy Portfolio -3% 6% 232% [1] Month-to-date and year-to-date as of 5/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) published a stronger-than-expected set of Q2 FY’23 results. Apple’s iPhone business expanded by about 1.5% versus last year, driven by a strong uptake in emerging markets such as India, Indonesia, and Turkey where the company’s installment plans and trade-in programs are helping drive demand.
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Total [2] AAPL Return -2% 28% 473% S&P 500 Return -3% 6% 81% Trefis Multi-Strategy Portfolio -3% 6% 232% [1] Month-to-date and year-to-date as of 5/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) published a stronger-than-expected set of Q2 FY’23 results. So what are some of the trends that have been driving Apple’s results?
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15936.0
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2023-05-09 00:00:00 UTC
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Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-7
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $43.58 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 99.70% of the portfolio.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 66.85% of total assets under management.
Performance and Risk
Year-to-date, the Technology Select Sector SPDR ETF return is roughly 21.73% so far, and it's up approximately 8.47% over the last 12 months (as of 05/09/2023). XLK has traded between $116.56 and $151.56 in this past 52-week period.
The ETF has a beta of 1.14 and standard deviation of 25.83% for the trailing three-year period, making it a medium risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR 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, XLK is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. IShares U.S. Technology ETF has $10.65 billion in assets, Vanguard Information Technology ETF has $46.33 billion. IYW has an expense ratio of 0.39% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
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 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $43.58 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Alternatives Technology Select Sector SPDR ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
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15937.0
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2023-05-09 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-7
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nan
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nan
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The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, 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 Blackrock. It has amassed assets over $30.50 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 34.10% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 42.47% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has gained about 11.02% so far this year and is down about -1.29% in the last one year (as of 05/09/2023). In the past 52-week period, it has traded between $56.73 and $71.43.
The ETF has a beta of 1.05 and standard deviation of 22.90% for the trailing three-year period, making it a medium risk choice in the space. With about 235 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IVW is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $82.78 billion in assets, Invesco QQQ has $175.31 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $30.50 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, 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 iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The top 10 holdings account for about 42.47% of total assets under management.
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15938.0
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2023-05-09 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-6
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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 Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $9.33 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 49.50% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 55.16% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has added about 21.82% so far this year and is up about 5.41% in the last one year (as of 05/09/2023). In the past 52-week period, it has traded between $107 and $137.02.
The ETF has a beta of 1.18 and standard deviation of 24.91% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 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, QQQM is an excellent 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 $82.78 billion in assets, Invesco QQQ has $175.31 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives Invesco NASDAQ 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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15939.0
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2023-05-09 00:00:00 UTC
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US STOCKS-Futures on shaky ground after disappointing earnings forecasts
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-on-shaky-ground-after-disappointing-earnings-forecasts
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow 0.37%, S&P 0.38%, Nasdaq 0.43%
May 9 (Reuters) - U.S. stock index futures fell in the early hours of Tuesday on downbeat earnings forecasts from Apple supplier Skyworks and payments company PayPal, ahead of much-awaited inflation data later in the week.
At 5:26 a.m. ET, Dow e-minis 1YMcv1 were down 123 points, or 0.37%, S&P 500 e-minis EScv1 were down 15.75 points, or 0.38%, and Nasdaq 100 e-minis NQcv1 were down 57.5 points, or 0.43%.
Chip gear maker Skyworks Solutions Inc's SWKS.O shares tumbled 9.8% in premarket trading after projecting its current-quarter revenue and earnings short of estimates.
Investors were hopeful of Skyworks' earnings following Apple Inc's AAPL.O strong quarterly showing on Thursday, but global smartphone sales have been suffering from weak demand.
Shares of other Apple suppliers including Qualcomm QCOM.O and Qorvo QRVO.O fell 0.5% and 1.6%, respectively.
PayPal Holdings PYPL.O dropped 4.5% after a cut to its outlook for annual adjusted operating margin overshadowed its profit forecast raise.
Apart from earnings reports, attention will be on inflation data on Wednesday, which is expected to show the Labor Department's consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data are all lined up for the week.
Such data points will be scrutinized by investors to gauge whether the Federal Reserve's aggressive tightening cycle - including its most recent 25 basis point increase to interest rates last week - is helping bring down inflation.
Markets also cautiously awaited an update on a debt ceiling meeting as U.S. President Joe Biden meets Republican House Speaker Kevin McCarthy and other congressional leaders at the White House.
The meeting at 4 p.m. EDT (2000 GMT) is not expected to produce a final agreement on raising the debt limit.
Regional bank stocks, which enjoyed a short-lived bounce before ending the previous session lower, extended their falls to another day. Shares of Pacwest Bancorp PACW.O slid 11.7% and Western Alliance WAL.N dropped 5.2%.
A Fed survey showed credit conditions for U.S. business and households continued tightening in the first months of the year, but the results seemed to mark the accumulating impact of monetary tightening rather than the cliff-like decline in credit some feared after the March collapse of Silicon Valley Bank.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sonia Cheema)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were hopeful of Skyworks' earnings following Apple Inc's AAPL.O strong quarterly showing on Thursday, but global smartphone sales have been suffering from weak demand. Chip gear maker Skyworks Solutions Inc's SWKS.O shares tumbled 9.8% in premarket trading after projecting its current-quarter revenue and earnings short of estimates. Apart from earnings reports, attention will be on inflation data on Wednesday, which is expected to show the Labor Department's consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March.
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Investors were hopeful of Skyworks' earnings following Apple Inc's AAPL.O strong quarterly showing on Thursday, but global smartphone sales have been suffering from weak demand. Futures: Dow 0.37%, S&P 0.38%, Nasdaq 0.43% May 9 (Reuters) - U.S. stock index futures fell in the early hours of Tuesday on downbeat earnings forecasts from Apple supplier Skyworks and payments company PayPal, ahead of much-awaited inflation data later in the week. ET, Dow e-minis 1YMcv1 were down 123 points, or 0.37%, S&P 500 e-minis EScv1 were down 15.75 points, or 0.38%, and Nasdaq 100 e-minis NQcv1 were down 57.5 points, or 0.43%.
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Investors were hopeful of Skyworks' earnings following Apple Inc's AAPL.O strong quarterly showing on Thursday, but global smartphone sales have been suffering from weak demand. Futures: Dow 0.37%, S&P 0.38%, Nasdaq 0.43% May 9 (Reuters) - U.S. stock index futures fell in the early hours of Tuesday on downbeat earnings forecasts from Apple supplier Skyworks and payments company PayPal, ahead of much-awaited inflation data later in the week. Apart from earnings reports, attention will be on inflation data on Wednesday, which is expected to show the Labor Department's consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March.
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Investors were hopeful of Skyworks' earnings following Apple Inc's AAPL.O strong quarterly showing on Thursday, but global smartphone sales have been suffering from weak demand. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures: Dow 0.37%, S&P 0.38%, Nasdaq 0.43% May 9 (Reuters) - U.S. stock index futures fell in the early hours of Tuesday on downbeat earnings forecasts from Apple supplier Skyworks and payments company PayPal, ahead of much-awaited inflation data later in the week.
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15940.0
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2023-05-08 00:00:00 UTC
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Is Apple Stock a Buy Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-right-now
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nan
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nan
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Apple (NASDAQ: AAPL) has demonstrated an ability to create innovative products consumers are willing to pay premium prices for. Fool.com contributor and finance professor Parkev Tatevosian considers whether Apple's stock is a buy right now.
*Stock prices used were the afternoon prices of May 4, 2023. The video was published on May 6, 2023.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 1, 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 his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has demonstrated an ability to create innovative products consumers are willing to pay premium prices for. Fool.com contributor and finance professor Parkev Tatevosian considers whether Apple's stock is a buy right now. 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) has demonstrated an ability to create innovative products consumers are willing to pay premium prices for. Fool.com contributor and finance professor Parkev Tatevosian considers whether Apple's stock is a buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Apple (NASDAQ: AAPL) has demonstrated an ability to create innovative products consumers are willing to pay premium prices for. Fool.com contributor and finance professor Parkev Tatevosian considers whether Apple's stock is a buy right now. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) has demonstrated an ability to create innovative products consumers are willing to pay premium prices for. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of May 1, 2023 Parkev Tatevosian, CFA has positions in Apple.
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15941.0
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2023-05-08 00:00:00 UTC
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Invest Like Warren Buffett With These 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-3-stocks-2
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nan
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nan
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Warren Buffett, also commonly called the Oracle of Omaha, is a name that jumps to the forefront of many minds when thinking of the financial world.
As we’re all aware, many mimic his portfolio moves.
And just over the weekend, Berkshire Hathaway hosted its annual shareholder meeting, putting the Oracle of Omaha and his go-to man, Charlie Munger, in full focus.
With the legendary investing icon making headlines following the meeting, let’s take a look at three companies that Buffett has placed big bets on.
Apple (AAPL)
Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Over the weekend, the icon spoke positively about the iPhone’s rock-solid status among consumers, a big reason why he believes in the company.
Apple’s quarterly results took the spotlight last week, with the tech titan delivering a positive 5.6% EPS surprise and reporting revenue nearly 2% above expectations. The company also announced a 4% increase to its quarterly cash dividend, payable on May 18th.
Image Source: Zacks Investment Research
In addition, the company posted solid iPhone results; iPhone revenue throughout the reported quarter totaled $51.3 billion, 4% above the Zacks Consensus Estimate and improving 1.5% from the year-ago period.
As we can see from the chart below, the better-than-expected iPhone results snapped a streak of back-to-back negative surprises.
Suprise (%) - iPhone Revenue
Image Source: Zacks Investment Research
Bank of America (BAC)
Despite the recent turmoil within banking, Buffett still remains optimistic about BAC. The legendary investor is well-known for his purchase of BAC shares back in 2011.
Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise.
The market didn’t have a great reaction to the results post-earnings, as we can see by the green arrow in the chart below.
Image Source: Zacks Investment Research
Still, the company has consistently shown a shareholder-friendly nature, carrying a solid 10.8% five-year annualized dividend growth rate. Currently, BAC shares yield 3.2% annually, well above the Zacks Finance sector average.
Image Source: Zacks Investment Research
Occidental Petroleum (OXY)
Buffett’s been in the headlines many times over the last year regarding his OXY purchases. At the annual shareholder meeting, the Oracle of Omaha said that there were no plans to fully acquire the company despite the rapid buying of shares.
Keep an eye out for OXY’s upcoming quarterly release expected on May 9th after the market’s close; the Zacks Consensus EPS Estimate of $1.30 reflects a pullback of roughly 40% from the year-ago period.
Analysts haven’t been bullish for the quarter to be reported, with the quarterly EPS estimate being revised 15% lower since February of this year.
Image Source: Zacks Investment Research
A favorable operating environment has allowed OXY to generate substantial cash over the last year, helping it increase its dividend payout by nearly 40% during the period. The company generated $2.4 billion of free cash flow in its latest quarter, down year-over-year but well above pre-pandemic levels.
Image Source: Zacks Investment Research
Bottom Line
With the Oracle of Omaha making headlines over the weekend following the annual Berkshire Hathaway shareholder meeting, revisiting some of his favorite holdings is beneficial.
And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : 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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Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise.
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Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on.
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15942.0
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2023-05-08 00:00:00 UTC
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3 Stocks Set to Soar After the May 2023 Fed Decision
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AAPL
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https://www.nasdaq.com/articles/3-stocks-set-to-soar-after-the-may-2023-fed-decision
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On May 3, the U.S. Federal Reserve (Fed) hinted that it now plans to pause its monetary tightening regime and assess its impact on the economy. The signal that rates may not go any higher came as the central bank approved its 10th interest rate increase in a little more than a year. This raised the federal funds rate to a target range of 5% to 5.25%, the highest level in 16 years. The announcement caused investors to start looking for the best stocks to buy after the Fed meeting.
The latest decision on interest rates by the Fed and the signals sent to markets are consequential for two reasons. First, interest rates have been ratcheted higher, making borrowing costs for businesses and consumers more expensive and potentially slowing the economy. Second, indications that interest rates are unlikely to go any higher in the near-term is cause for celebration among investors and traders.
On May 5, the Dow Jones Industrial Average rose more than 500 points. Where markets go from here though is not clear. Competing forces continue to gyrate stocks. However, the latest Fed moves are particularly good news for certain companies and their stockholders. Here are three Fed rate hike stocks set to soar after the May 2023 decision.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
The stock of Apple (NASDAQ:AAPL) looks set to take-off after trading sideways for much of this year. On the day after the Fed signaled a likely pause in its interest rate hikes, Apple reported better-than-expected earnings, announced a new $90 billion stock buyback program and raised its quarterly dividend by 4% to 24 cents per share. AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5.
Additionally, APPL stock has been upgraded all over Wall Street both before and after the company’s latest earnings release. Many price targets on the stock now exceed $200 a share, suggesting at least 15% upside from current levels. In the past six months, Apple’s stock has rallied 25%. While decent, the gains in Apple’s share price have trailed the recovery seen in other tech stocks such as Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META), which have gained 100% or more in the same timeframe.
Looking ahead, it appears that Apple is once again ready to take center stage among large cap tech securities.
Fair Isaac (FICO)
Source: Teerasak Ladnongkhun/Shutterstock.com
Looking beyond tech, we have Fair Isaac (NYSE:FICO), which is familiar to most Americans as the company behind their credit score, or FICO score as it is also known. In a high interest rate environment such as the one we’re in now, credit scores become more important. Lenders scrutinize them to determine not only whether a consumer or business gets a loan, but the interest rate they pay on a loan. When interest rates are elevated, banks and other lenders rely more on FICO scores to assess and manage credit risks.
The recent failure of three U.S. regional banks has placed risk assessment under a microscope. Also, while the Fed has signaled that it may hold off on any further rate increases for now, it has given no indication that it plans to cut interest rates anytime soon. The federal funds rate could remain in its current range for some time, keeping a focus on credit scores. While stressful for companies and individuals, the current environment is very positive for Fair Isaac.
FICO stock has risen 109% in the last 12 months, including a 24% gain this year. While the increase has been impressive, the consensus view of analysts is that the stock has more room to run.
Tesla (TSLA)
Source: Zigres / Shutterstock.com
A pause in interest rate increases can only help Tesla (NASDAQ:TSLA). The electric vehicle maker has struggled mightily under the weight of higher rates over the last year, both as it tries to fund its continued expansion and sell its cars to consumers who are sensitive to the interest charged on auto loans. The impact of higher interest rates was reflected in Tesla’s most recent earnings, which missed targets in most segments. The company announced that its first-quarter net income fell 24% from a year earlier to $2.51 billion.
On anearnings call Tesla CEO Elon Musk cited interest rates as an issue affecting the automaker and said he expects 12 months of stormy weather ahead. Tesla continues to slash the prices of its electric vehicles in markets around the world to try and boost sales. A halt to interest rate increase on the part of the Fed could also help the company and its share price. TSLA stock is currently trading 46% below its 52-week high and has slumped 14% in the last six months. Long-term investors might want to view the decline as a buy the dip opportunity.
On the date of publication, Joel Baglole held long positions in AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 3 Stocks Set to Soar After the May 2023 Fed Decision appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com The stock of Apple (NASDAQ:AAPL) looks set to take-off after trading sideways for much of this year. AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5. On the date of publication, Joel Baglole held long positions in AAPL and NVDA.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com The stock of Apple (NASDAQ:AAPL) looks set to take-off after trading sideways for much of this year. AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5. On the date of publication, Joel Baglole held long positions in AAPL and NVDA.
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AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com The stock of Apple (NASDAQ:AAPL) looks set to take-off after trading sideways for much of this year. On the date of publication, Joel Baglole held long positions in AAPL and NVDA.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com The stock of Apple (NASDAQ:AAPL) looks set to take-off after trading sideways for much of this year. AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5. On the date of publication, Joel Baglole held long positions in AAPL and NVDA.
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15943.0
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2023-05-08 00:00:00 UTC
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Apple loses bid to revive US copyright claims over iOS simulation
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AAPL
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https://www.nasdaq.com/articles/apple-loses-bid-to-revive-us-copyright-claims-over-ios-simulation
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nan
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nan
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By Blake Brittain
May 8 (Reuters) - Apple Inc AAPL.O on Monday failed to convince a U.S. appeals court that security startup Corellium Inc infringed its copyrights by simulating its iOS operating system to help researchers find security flaws in Apple devices.
The 11th U.S. Circuit Court of Appeals said Corellium lawfully recreated Apple's system under the U.S. copyright doctrine of fair use, furthering scientific progress by aiding important security research.
Representatives for the companies did not immediately respond to requests for comment on the decision.
Florida-based Corellium's software allows users to run iOS on non-Apple devices and inspect and modify the operating system in ways that allow security researchers to search for vulnerabilities more effectively. Apple sued Corellium for copyright infringement in South Florida federal court in 2019.
Apple unsuccessfully tried to buy Corellium for nearly $23 million before filing the lawsuit, the appeals court said.
The district court dismissed Apple's claims over Corellium's iOS simulator in 2020. Apple appealed in 2021.
The 11th Circuit agreed that Corellium made fair use of iOS on Monday and said Corellium's software adds new features that help security researchers "do their work in a way that physical iPhones just can't."
The appeals court rejected Apple's arguments that Corellium simply repackaged iOS in a different format for profit, harming Apple's market for its operating system and its security-research programs.
Corellium "opened the door for deeper security research into operating systems like iOS," the circuit court said.
The appeals court sent the case back to the district court to consider if Corellium infringed copyrights covering Apple's icons and wallpapers or contributed to infringement by third parties.
(Reporting by Blake Brittain in Washington)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain May 8 (Reuters) - Apple Inc AAPL.O on Monday failed to convince a U.S. appeals court that security startup Corellium Inc infringed its copyrights by simulating its iOS operating system to help researchers find security flaws in Apple devices. Circuit Court of Appeals said Corellium lawfully recreated Apple's system under the U.S. copyright doctrine of fair use, furthering scientific progress by aiding important security research. Florida-based Corellium's software allows users to run iOS on non-Apple devices and inspect and modify the operating system in ways that allow security researchers to search for vulnerabilities more effectively.
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By Blake Brittain May 8 (Reuters) - Apple Inc AAPL.O on Monday failed to convince a U.S. appeals court that security startup Corellium Inc infringed its copyrights by simulating its iOS operating system to help researchers find security flaws in Apple devices. Circuit Court of Appeals said Corellium lawfully recreated Apple's system under the U.S. copyright doctrine of fair use, furthering scientific progress by aiding important security research. Corellium "opened the door for deeper security research into operating systems like iOS," the circuit court said.
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By Blake Brittain May 8 (Reuters) - Apple Inc AAPL.O on Monday failed to convince a U.S. appeals court that security startup Corellium Inc infringed its copyrights by simulating its iOS operating system to help researchers find security flaws in Apple devices. Circuit Court of Appeals said Corellium lawfully recreated Apple's system under the U.S. copyright doctrine of fair use, furthering scientific progress by aiding important security research. The appeals court rejected Apple's arguments that Corellium simply repackaged iOS in a different format for profit, harming Apple's market for its operating system and its security-research programs.
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By Blake Brittain May 8 (Reuters) - Apple Inc AAPL.O on Monday failed to convince a U.S. appeals court that security startup Corellium Inc infringed its copyrights by simulating its iOS operating system to help researchers find security flaws in Apple devices. Apple appealed in 2021. The appeals court sent the case back to the district court to consider if Corellium infringed copyrights covering Apple's icons and wallpapers or contributed to infringement by third parties.
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15944.0
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2023-05-08 00:00:00 UTC
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US STOCKS-Wall Street subdued on bleak earnings ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-subdued-on-bleak-earnings-ahead-of-inflation-data
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nan
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nan
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By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl
May 8 (Reuters) - U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week.
Shares of Catalent Inc CTLT.N tumbled 25.5% as the contract drug manufacturer saw lower revenue and core profit in 2023, while Tyson Foods TSN.N dropped 15.9% on a surprise second-quarter loss and a cut in its annual revenue forecast.
A rebound in regional lenders ran out of steam by midday trading, with the KBW Regional Banking index .KRX falling 1.86% after posting its best single-day performance in seven weeks on Friday.
The struggle for a clearer direction comes after a rally on Friday, when U.S. jobs data pointed to a resilient labor market.
"Whenever you have a big up day, people need more good news to keep the market up every day in a row," said portfolio manager Moez Kassam of Anson Funds.
Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday when it posted upbeat results.
The spotlight this week, however, will be on the Labor Department's inflation reading on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data are all lined up for the week.
Data points this week will help investors not only gauge whether the Federal Reserve's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also if fears of stagflation are founded.
"The bigger picture is inflation will remain higher for longer and that we are heading into a recession," Michael James, managing director of equity trading at Wedbush Securities.
"Whether that's hard or soft remains to be seen, but until there's something to disprove that bigger picture thesis, the overall market is going to remain somewhat range bound."
The Dow Jones Industrial Average .DJI fell 68.99 points, or 0.2%, to 33,605.39, the S&P 500 .SPX gained 0.93 points, or 0.02%, to 4,137.18 and the Nasdaq Composite .IXIC added 10.28 points, or 0.08%, to 12,245.69.
Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
Warren Buffett's Berkshire Hathaway Inc's BRKb.N Class B shares rose 0.9% after posting a $35.5 billion first-quarter profit, boosted by gains from stocks such as Apple.
American Airlines Group Inc AAL.O rose 3.1% after J.P. Morgan raised its rating to "overweight" from "neutral".
Shares of Zscaler IncZS.O rose 3.5% after the cloud security company raised its annual forecast.
Declining issues outnumbered advancing ones on the NYSE by a 1.10-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and seven new lows; the Nasdaq Composite recorded 54 new highs and 73 new lows.
(Reporting by Shreyashi Sanyal and Shristi Achar in Bengaluru; Editing by Nivedita Bhattacharjee, Maju Samuel and Deepa Babington)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday when it posted upbeat results. By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl May 8 (Reuters) - U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week. The spotlight this week, however, will be on the Labor Department's inflation reading on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday when it posted upbeat results. By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl May 8 (Reuters) - U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week. Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday when it posted upbeat results. By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl May 8 (Reuters) - U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week. A rebound in regional lenders ran out of steam by midday trading, with the KBW Regional Banking index .KRX falling 1.86% after posting its best single-day performance in seven weeks on Friday.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday when it posted upbeat results. By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl May 8 (Reuters) - U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week. Data points this week will help investors not only gauge whether the Federal Reserve's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also if fears of stagflation are founded.
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15945.0
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2023-05-08 00:00:00 UTC
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Technology Sector Update for 05/08/2023: AAPL, AMZN, ZS
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-08-2023%3A-aapl-amzn-zs
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nan
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nan
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Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.2% and the Philadelphia Semiconductor index advancing 0.4%.
In company news, Apple (AAPL) plans to raise $5 billion from a five-part bond offering to include a 30-year bond that will pay 1.35% more than the current 30-year Treasury bond. Additionally, Berkshire Hathaway CEO Warren Buffett said he would increase his 5.6% stake in the company. Apple shares were little changed.
Amazon.com (AMZN) is launching a new unit, dubbed Amazon MGM Studios Distribution, to distribute its movies and television shows to third parties, media outlets reported. Amazon shares rose 0.4%.
Zscaler (ZS) shares jumped more than 22% after the cloud security company lifted its fiscal 2023 outlook and said its Q3 results are expected to surpass its own expectations.
The views and 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 company news, Apple (AAPL) plans to raise $5 billion from a five-part bond offering to include a 30-year bond that will pay 1.35% more than the current 30-year Treasury bond. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.2% and the Philadelphia Semiconductor index advancing 0.4%. Additionally, Berkshire Hathaway CEO Warren Buffett said he would increase his 5.6% stake in the company.
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In company news, Apple (AAPL) plans to raise $5 billion from a five-part bond offering to include a 30-year bond that will pay 1.35% more than the current 30-year Treasury bond. Apple shares were little changed. Amazon.com (AMZN) is launching a new unit, dubbed Amazon MGM Studios Distribution, to distribute its movies and television shows to third parties, media outlets reported.
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In company news, Apple (AAPL) plans to raise $5 billion from a five-part bond offering to include a 30-year bond that will pay 1.35% more than the current 30-year Treasury bond. Amazon.com (AMZN) is launching a new unit, dubbed Amazon MGM Studios Distribution, to distribute its movies and television shows to third parties, media outlets reported. Zscaler (ZS) shares jumped more than 22% after the cloud security company lifted its fiscal 2023 outlook and said its Q3 results are expected to surpass its own expectations.
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In company news, Apple (AAPL) plans to raise $5 billion from a five-part bond offering to include a 30-year bond that will pay 1.35% more than the current 30-year Treasury bond. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.2% and the Philadelphia Semiconductor index advancing 0.4%. Additionally, Berkshire Hathaway CEO Warren Buffett said he would increase his 5.6% stake in the company.
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15946.0
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2023-05-08 00:00:00 UTC
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US STOCKS-Wall St edges lower on bleak earnings ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-edges-lower-on-bleak-earnings-ahead-of-inflation-data
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
May 8 (Reuters) - Wall Street's main indexes inched lower on Monday as Tyson Foods and Catalent led falls on the benchmark S&P 500 ahead of a key inflation reading this week, while a rebound in regional lenders ran out of steam by midday trading.
Shares of Catalent Inc CTLT.N tumbled 26.6% as the contract drug manufacturer saw lower revenue and core profit in 2023, while Tyson Foods TSN.N dropped 15.6% on posting a surprise second-quarter loss and cutting its annual revenue forecast.
Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday following upbeat results.
"(Growth stocks are down) on nothing other than a mild profit-taking, given the strong move that we saw last week," said Michael James, managing director of equity trading at Wedbush Securities.
The spotlight this week, however, will be on the Labor Department's inflation reading on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data are all lined up through the week.
Data points this week will help investors not only gauge whether the Federal Reserve's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also if fears of stagflation are founded.
"The bigger picture is inflation will remain higher for longer and that we are heading into a recession. Whether that's hard or soft remains to be seen, but until there's something to disprove that bigger picture thesis, the overall market is going to remain somewhat range bound," James added.
At 11:50 a.m. ET, the Dow Jones Industrial Average .DJI was down 65.63 points, or 0.19%, at 33,608.75, the S&P 500 .SPX was down 1.10 points, or 0.03%, at 4,135.15, and the Nasdaq Composite .IXIC was down 16.93 points, or 0.14%, at 12,218.48.
The KBW Regional Banking index .KRX fell 2.2% after posting its best single-day performance in seven weeks on Friday.
Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
Warren Buffett's Berkshire Hathaway Inc's BRKb.N Class B shares rose 1.4% after posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.
American Airlines Group Inc AAL.O rose 4.1% after J.P. Morgan raised its rating to "overweight" from "neutral".
Shares of Zscaler IncZS.O soared 21.2% after the cloud security company raised its annual forecast.
The S&P index recorded 10 new 52-week highs and four new lows, while the Nasdaq recorded 47 new highs and 53 new lows.
(Reporting by Shreyashi Sanyal and Shristi Achar in Bengaluru; Editing by Nivedita Bhattacharjee and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday following upbeat results. By Shreyashi Sanyal and Shristi Achar A May 8 (Reuters) - Wall Street's main indexes inched lower on Monday as Tyson Foods and Catalent led falls on the benchmark S&P 500 ahead of a key inflation reading this week, while a rebound in regional lenders ran out of steam by midday trading. "(Growth stocks are down) on nothing other than a mild profit-taking, given the strong move that we saw last week," said Michael James, managing director of equity trading at Wedbush Securities.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday following upbeat results. By Shreyashi Sanyal and Shristi Achar A May 8 (Reuters) - Wall Street's main indexes inched lower on Monday as Tyson Foods and Catalent led falls on the benchmark S&P 500 ahead of a key inflation reading this week, while a rebound in regional lenders ran out of steam by midday trading. Warren Buffett's Berkshire Hathaway Inc's BRKb.N Class B shares rose 1.4% after posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday following upbeat results. By Shreyashi Sanyal and Shristi Achar A May 8 (Reuters) - Wall Street's main indexes inched lower on Monday as Tyson Foods and Catalent led falls on the benchmark S&P 500 ahead of a key inflation reading this week, while a rebound in regional lenders ran out of steam by midday trading. Shares of Catalent Inc CTLT.N tumbled 26.6% as the contract drug manufacturer saw lower revenue and core profit in 2023, while Tyson Foods TSN.N dropped 15.6% on posting a surprise second-quarter loss and cutting its annual revenue forecast.
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Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp MSFT.O, while Apple Inc AAPL.O was flat after rising 4.7% on Friday following upbeat results. By Shreyashi Sanyal and Shristi Achar A May 8 (Reuters) - Wall Street's main indexes inched lower on Monday as Tyson Foods and Catalent led falls on the benchmark S&P 500 ahead of a key inflation reading this week, while a rebound in regional lenders ran out of steam by midday trading. Shares of Catalent Inc CTLT.N tumbled 26.6% as the contract drug manufacturer saw lower revenue and core profit in 2023, while Tyson Foods TSN.N dropped 15.6% on posting a surprise second-quarter loss and cutting its annual revenue forecast.
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15947.0
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2023-05-08 00:00:00 UTC
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Stock Market News for May 8, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-may-8-2023
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nan
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nan
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Wall Street closed sharply higher on Friday, with bank stocks rebounding from their recent lows, Apple posting better-than-expected earnings and jobs data for April hinting at a resilient labor market. All three major indexes ended in positive territory to end a four-day losing streak.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.7% or 546.64 points to end at 33,674.38 points to record its best single-day percentage gain since Jan 6.
The S&P 500 climbed 1.8% or 75.03 points to close at 4,136.25 points. Tech, financials and energy stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Financials Select Sector SPDR (XLF) each gained 2.5%. The Energy Select Sector SPDR (XLE) rose 2.7%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 2.2% or 269.01 points to finish at 12,235.41 points.
The fear-gauge CBOE Volatility Index (VIX) was down 14.44% to 17.19. Advancers outnumbered decliners on the NYSE by a 4.95-to-1 ratio. On Nasdaq, a 2.75-to-1 ratio favored advancing issues. A total of 10.57 billion shares were traded on Friday, lower than the last 20-session average of 10.70 billion.
Apple Drives Market Rally
Stocks rebounded on Friday after four straight days of losses despite jobs data for April coming in stronger than expected, which hinted at a resilient labor market.
Market participants have been concerned over the ongoing turmoil in regional banks which started with the failure of the First Republic Bank earlier this week. The Fed forcibly auctioned the bank which was taken over by JPMorgan Chase & Co. (JPM).
This saw volatile trading on the first four days of the week. However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. Apple reported second-quarter fiscal 2023 earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.44 per share.
The company posted revenues of $94.84 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.63%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The robust earnings from Apple sent tech stocks on a rally, with the tech giant’s shares jumping 4.7%. shares of Netflix, Inc. (NFLX) gained 0.6%, while Microsoft Corporation (MSFT) rose 1.7%.
The upbeat sentiment also helped the battered regional bank stocks rebound on Friday. Shares of Western Alliance Bancorporation (WAL) soared 49.2%, while Zions Bancorporation, National Association (ZION) surged 19.2%. However, the biggest gainer was PacWest Bancorp (PACW), which soared 81.7%.
Economic Data
In economic data released on Friday, April jobs data showed that the U.S. economy added a solid 253,000 jobs, surpassing estimates of 180,000. Annual wage growth increased 4.4% in April, higher than the 4.2% jump in March. Also, the unemployment rate fell to 3.4% from 3.5% recorded in the prior month.
Weekly Roundup
Despite the rebound, the Dow ended the week 1.2% lower, while the S&P 500 was down 0.8%. The Nasdaq managed to end the week up 0.1%.
Zacks Reveals ChatGPT "Sleeper" Stock
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report
Western Alliance Bancorporation (WAL) : Free Stock Analysis Report
PacWest Bancorp (PACW) : 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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However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Zions Bancorporation, N.A. Wall Street closed sharply higher on Friday, with bank stocks rebounding from their recent lows, Apple posting better-than-expected earnings and jobs data for April hinting at a resilient labor market.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Zions Bancorporation, N.A. However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. Wall Street closed sharply higher on Friday, with bank stocks rebounding from their recent lows, Apple posting better-than-expected earnings and jobs data for April hinting at a resilient labor market.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Zions Bancorporation, N.A. However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. Wall Street closed sharply higher on Friday, with bank stocks rebounding from their recent lows, Apple posting better-than-expected earnings and jobs data for April hinting at a resilient labor market.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Zions Bancorporation, N.A. However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. All 11 sectors of the benchmark index ended in positive territory.
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2023-05-08 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-31
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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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15949.0
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2023-05-08 00:00:00 UTC
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US STOCKS-Futures muted, key inflation data on tap
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-key-inflation-data-on-tap
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow up 0.10%, S&P flat, Nasdaq down 0.12%
May 8 (Reuters) - U.S. stock index futures were muted on Monday at the beginning of a week packed with economic data points, including a key inflation reading that will be scrutinized for signs of whether the Federal Reserve is succeeding in its attempt to cool prices.
At 5:06 a.m. ET, Dow e-minis 1YMcv1 were up 33 points, or 0.1%, S&P 500 e-minis EScv1 were up 1 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 15.5 points, or 0.12%.
U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market.
Focus will be on the Labor Department's inflation data on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April, after gaining 0.1% in March, while excluding the volatile food and energy components, the CPI likely increased 0.4% last month.
Data on producer prices, weekly jobless claims, and on consumer sentiment are all lined up through the week.
These data points will help investors not only gauge whether the Fed's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also, if fears of stagflation are founded.
"Market expectation of cuts already in the summer are based on a too-optimistic forecast of a quick disinflation," Paolo Zanghieri Senior economist at Generali Investments wrote in a note. "Anyway, inflation stabilizing at 3% would not be enough for the Fed to start easing rates."
Regional bank shares extended gains in premarket, with PacWest Bancorp PACW.O jumping 13.5% after the company announced quarterly dividend. Peers, Western Alliance Bancorp WAL.N, Comerica Inc CMA.N and Zions Bancorp ZION.O rose between 2.8% and 4.9%.
Shares of such regional lenders rebounded on Friday from declines tied to the collapse of First Republic Bank.
American Airlines Group Inc AAL.O rose 1.9% after J.P. Morgan raised its rating on the company's stock to "overweight" from "neutral", while Southwest Airlines Co LUV.N fell 1.3% as JPM downgraded its stock to "neutral" from "overweight".
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Nivedita Bhattacharjee)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. "Market expectation of cuts already in the summer are based on a too-optimistic forecast of a quick disinflation," Paolo Zanghieri Senior economist at Generali Investments wrote in a note. Regional bank shares extended gains in premarket, with PacWest Bancorp PACW.O jumping 13.5% after the company announced quarterly dividend.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. Futures: Dow up 0.10%, S&P flat, Nasdaq down 0.12% May 8 (Reuters) - U.S. stock index futures were muted on Monday at the beginning of a week packed with economic data points, including a key inflation reading that will be scrutinized for signs of whether the Federal Reserve is succeeding in its attempt to cool prices. ET, Dow e-minis 1YMcv1 were up 33 points, or 0.1%, S&P 500 e-minis EScv1 were up 1 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 15.5 points, or 0.12%.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. Futures: Dow up 0.10%, S&P flat, Nasdaq down 0.12% May 8 (Reuters) - U.S. stock index futures were muted on Monday at the beginning of a week packed with economic data points, including a key inflation reading that will be scrutinized for signs of whether the Federal Reserve is succeeding in its attempt to cool prices. These data points will help investors not only gauge whether the Fed's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also, if fears of stagflation are founded.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. Futures: Dow up 0.10%, S&P flat, Nasdaq down 0.12% May 8 (Reuters) - U.S. stock index futures were muted on Monday at the beginning of a week packed with economic data points, including a key inflation reading that will be scrutinized for signs of whether the Federal Reserve is succeeding in its attempt to cool prices. These data points will help investors not only gauge whether the Fed's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also, if fears of stagflation are founded.
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15950.0
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2023-05-08 00:00:00 UTC
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GLOBAL MARKETS-Shares rise, but dollar sags ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-rise-but-dollar-sags-ahead-of-inflation-data
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nan
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By Amanda Cooper
LONDON, May 8 (Reuters) - Global shares edged up in light trading on Monday, ahead of U.S. inflation data this week that could prove instrumental in setting expectations for the outlook for monetary policy.
The dollar came under pressure as a deadline for lawmakers to resolve a standoff over the U.S. government's borrowing limit drew ever closer.
The MSCI All-World index .MIWD00000PUS, meanwhile, rose 0.2% on the day.
Friday's robust U.S. payrolls report has prompted investors to dial back their expectations for the timing and size of the Federal Reserve's first rate cut. Wednesday's consumer price data is expected to show core inflation slowed moderately.
"With the Fed having hiked by 25 basis points last week and signalled a pause, this week’s inflation report is more about how long the Fed will keep rates at 5.25% before cutting," CityIndex analyst Matt Simpson said.
"A hot print would presumably be bullish for the U.S. dollar as traders push potential cuts further into the future."
Money markets show investors expect U.S. rates to have now peaked and could end this year below 4.40%. Against that backdrop, the dollar is close to its lowest in a year against a basket of major currencies.
The dollar index =USD was last down 0.3% on the day at 101.05, mainly due to gains in the euro EUR=EBS, which rose 0.3% to $1.10495.
Sterling GBP=D3, which has gained 4.5% against the dollar this year, was up 0.3% at $1.2664, at 10-month highs, ahead of a Bank of England policy meeting later this week.
"While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
"Certainly it imposes more growth constraints and a greater stagflationary bias than for major competing economies."
The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy. The dollar rose 0.1% against the yen to 134.98 yen JPY=EBS.
HITTING THE CEILING
In Europe, the STOXX 600 index .STOXX rose 0.4%, although activity was muted by a public holiday in Britain.
S&P 500 futures ESc1 rose 0.1%, while Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results.
Later on Monday, the Federal Reserve's survey of loan officers will draw an unusual amount of attention as markets seek to gauge the impact of regional banking stress on lending.
"The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan.
"Continued stress in the banking system does, of course, increase concern that a disruptive financial market event is on the horizon," he added. "Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited."
Bond markets stabilised after having been rattled by Friday's jobs numbers. Yields on the two-year note were last up 4 bps at 3.9575% US2YT=RR, while those on 10-year debt US10YT=RR were up 2 bps at 3.462%.
U.S. Treasury Secretary Janet Yellen on Sunday warned of a possible crisis should Congress not raise the debt ceiling before the deadline in early June, which has triggered a broad selloff in short-dated U.S. government debt in the past month.
Meanwhile, the prospect of a pause in U.S. rate hikes has pushed gold towards record highs above $2,000 an ounce. Because it bears no yield itself, higher interest rates undermine investor appetite for gold. Spot gold was up 0.4% at $2,025 an ounce XAU=, having topped $2,072 last week, close to 2020's all-time high.
In other commodity markets, oil rose 2.2% to $76.97 a barrel. Brent crude futures LCOc1 have lost 10% in value so far this year, as concern bubbles about the outlook for global energy demand if the economy tilts towards recession.
U.S. unemployment https://reut.rs/2X245ch
Brent oil prices seen averaging above $90/bbl in Q4https://tmsnrt.rs/41YmJQg
(Additional reporting by Wayne Cole; Editing by Shri Navaratnam, Alison Williams and Christina Fincher)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 futures ESc1 rose 0.1%, while Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. By Amanda Cooper LONDON, May 8 (Reuters) - Global shares edged up in light trading on Monday, ahead of U.S. inflation data this week that could prove instrumental in setting expectations for the outlook for monetary policy. Friday's robust U.S. payrolls report has prompted investors to dial back their expectations for the timing and size of the Federal Reserve's first rate cut.
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S&P 500 futures ESc1 rose 0.1%, while Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Money markets show investors expect U.S. rates to have now peaked and could end this year below 4.40%. Meanwhile, the prospect of a pause in U.S. rate hikes has pushed gold towards record highs above $2,000 an ounce.
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S&P 500 futures ESc1 rose 0.1%, while Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Sterling GBP=D3, which has gained 4.5% against the dollar this year, was up 0.3% at $1.2664, at 10-month highs, ahead of a Bank of England policy meeting later this week. "While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
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S&P 500 futures ESc1 rose 0.1%, while Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Against that backdrop, the dollar is close to its lowest in a year against a basket of major currencies. The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy.
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15951.0
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2023-05-08 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-8
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $10.71 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.06%.
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 17.20% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
The top 10 holdings account for about 20.13% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has added roughly 3.12% so far this year and is down about -0.07% in the last one year (as of 05/08/2023). In the past 52-week period, it has traded between $47.76 and $57.54.
The ETF has a beta of 1 and standard deviation of 18.49% for the trailing three-year period, making it a medium risk choice in the space. With about 735 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index 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, FNDX is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.54 billion in assets, Vanguard Value ETF has $100.77 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Alternatives Schwab Fundamental U.S. Large Company Index 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 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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15952.0
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2023-05-08 00:00:00 UTC
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1 Green Flag and 1 Red Flag For Apple Stock
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-and-1-red-flag-for-apple-stock
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Apple (NASDAQ: AAPL) published its earnings results for its second fiscal quarter, which ended April 4, and its sales and earnings results that came in ahead of the market's expectations. The business recorded earnings per share of $1.52 on revenue of $94.94 billion, while the average analyst estimate had called for per-share earnings of $1.43 on sales of approximately $92.9 billion.
Apple delivered solid top- and bottom-line beats in the quarter, but revenue was actually down 2.5% compared to the prior-year period, and earnings per share were flat despite positive impacts from share buybacks and tax advantages. What comes next for the world's largest company and its stock? Read on for one green flag and one red flag to consider following the tech titan's recent earnings results.
Image source: Apple.
Green flag: iPhone continues to power incredible profits
iPhone revenue grew by roughly 1.5% year over year to reach $51.3 billion in the second quarter, setting a new record and bucking a 7% year-over-year global revenue decline for the overall smartphone category. While the iPhone did see unit sales decline in Q2, the product family still managed to grow revenue thanks to increases in average selling price.
According to analysis from Counterpoint, Apple recorded the smallest unit-sales decline of all major phone manufacturers in the quarter, and it increased its global unit share in the market to a best-ever 21%. In terms of profits, the picture is almost certainly even better. Last year, Apple captured roughly 85% of global operating profit on smartphone sales, and it looks like the iPhone will continue dominating the category.
Thanks to incredible profits spurred by the iPhone and other products and services, Apple will continue to support a policy of returning value to shareholders. The company announced it was raising its quarterly dividend 4% to $0.24 per share, and it has now delivered an annual payout increase for 11 years straight. Apple's board of directors also authorized an additional $90 billion in stock buybacks, which should be a positive catalyst for earnings per share as stock will be retired after being repurchased.
Red flag: Macroeconomic headwinds threaten valuation
Apple is facing a tougher economic environment, and sales for Mac computers, iPads, wearables, and home accessories all fell significantly in Q2.
Mac revenue was down 31.3% year over year, and iPad sales fell 12.7%. Meanwhile, sales for the combined wearables, home, and accessories segment were down 0.7%. On the other hand, the company did get some help from its services segment, which saw sales increase 5.4% year over year to reach $20.9 billion.
There are already some signs that tougher economic conditions are making customers more cautious, and these headwinds could get worse before they get better. With many economists and analysts expecting the U.S. to dip into recession later this year, there's a real risk that tougher conditions will have a significant negative impact on Apple's business. Shoppers may opt to hold off on new hardware purchases or upgrades, but the company's current valuation seems to be priced around the business remaining quite sturdy.
AAPL PE Ratio (Forward) data by YCharts
Despite reporting two consecutive quarters of year-over-year sales declines this year, Apple stock has been surging in 2023. Its share price is up roughly 28% year to date as of this writing, and the company is valued at approximately 28 times this year's expected earnings.
While earnings per share were flat year over year in Q2 thanks to buybacks and tax changes, net income actually declined 3.4% to come in at $24.16 billion. There's no doubt that Apple is a great company, but sales and profits have slipped lately, and near-term macroeconomic conditions could be challenging.
What comes next for Apple?
Apple's price-to-earnings ratio should be viewed in the context of the fact that it's already a massive, category-leading company that dependably serves up incredible profits. While macroeconomic pressures could continue to tamp down on sales and earnings in the short term, the business should remain enormously profitable thanks to the iPhone and other hardware and service offerings. The company is clearly valued at a premium, but for long-term investors, Apple's dominant market position and nearly unparalleled profit generation means that premium may be justified.
10 stocks we like better than Apple
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Keith Noonan 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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AAPL PE Ratio (Forward) data by YCharts Despite reporting two consecutive quarters of year-over-year sales declines this year, Apple stock has been surging in 2023. Apple (NASDAQ: AAPL) published its earnings results for its second fiscal quarter, which ended April 4, and its sales and earnings results that came in ahead of the market's expectations. According to analysis from Counterpoint, Apple recorded the smallest unit-sales decline of all major phone manufacturers in the quarter, and it increased its global unit share in the market to a best-ever 21%.
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AAPL PE Ratio (Forward) data by YCharts Despite reporting two consecutive quarters of year-over-year sales declines this year, Apple stock has been surging in 2023. Apple (NASDAQ: AAPL) published its earnings results for its second fiscal quarter, which ended April 4, and its sales and earnings results that came in ahead of the market's expectations. Green flag: iPhone continues to power incredible profits iPhone revenue grew by roughly 1.5% year over year to reach $51.3 billion in the second quarter, setting a new record and bucking a 7% year-over-year global revenue decline for the overall smartphone category.
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AAPL PE Ratio (Forward) data by YCharts Despite reporting two consecutive quarters of year-over-year sales declines this year, Apple stock has been surging in 2023. Apple (NASDAQ: AAPL) published its earnings results for its second fiscal quarter, which ended April 4, and its sales and earnings results that came in ahead of the market's expectations. Green flag: iPhone continues to power incredible profits iPhone revenue grew by roughly 1.5% year over year to reach $51.3 billion in the second quarter, setting a new record and bucking a 7% year-over-year global revenue decline for the overall smartphone category.
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Apple (NASDAQ: AAPL) published its earnings results for its second fiscal quarter, which ended April 4, and its sales and earnings results that came in ahead of the market's expectations. AAPL PE Ratio (Forward) data by YCharts Despite reporting two consecutive quarters of year-over-year sales declines this year, Apple stock has been surging in 2023. The business recorded earnings per share of $1.52 on revenue of $94.94 billion, while the average analyst estimate had called for per-share earnings of $1.43 on sales of approximately $92.9 billion.
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15953.0
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2023-05-08 00:00:00 UTC
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Warren Buffett Collects Nearly $2 Billion in Annual Dividend Income From 2 Stocks (and Neither Is Apple or Bank of America)
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-collects-nearly-%242-billion-in-annual-dividend-income-from-2-stocks-and
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As this past weekend demonstrated, few if any money managers can captivate the attention of investors quite like Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. Since taking over as CEO of Berkshire Hathaway in the mid-1960s, Buffett has overseen a 3,787,464% return on his company's Class A shares (BRK.A). That's 153 times the total return, including dividends, of the benchmark S&P 500 over the same span. It takes more than luck to lap the performance of the S&P 500 by a factor of 153.
Buffett's recipe for success is extensive, but the Oracle of Omaha is more than willing to share the "tricks" he's used to grow his wealth and that of his shareholders. These catalysts include approaching investments with a long-term mindset, gravitating to cyclical businesses, concentrating Berkshire Hathaway's investment portfolio, and putting money to work in brand-name companies with trusted management teams.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Dividend stocks are Berkshire Hathaway's unsung hero
But if there's a reason for Buffett's success that doesn't get nearly enough attention, it's his love of dividend stocks.
Publicly traded companies that regularly pay a dividend are almost always time-tested, profitable on a recurring basis, and offer transparent growth outlooks. Income stocks also have a knack for long-term outperformance and consistently outpace stocks that don't offer a payout.
A majority of the roughly four dozen securities held in Berkshire Hathaway's $335 billion investment portfolio pays a dividend. As of March 31, 2023, I calculated that Buffett's company was on pace to collect almost $6.14 billion in dividend income this year.
However, thanks to portfolio concentration, a small percentage of Berkshire Hathaway's holdings will account for a sizable share of this dividend income. Two stocks that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, have been loading up on in recent years are expected to account for nearly $2 billion in annual dividend income.
Two recent buys will account for close to $2 billion in annual dividend income
Interestingly enough, Berkshire Hathaway's two largest holdings -- tech stock Apple (NASDAQ: AAPL) and bank stock Bank of America (NYSE: BAC) -- aren't the top dividend producers. Although Apple and BofA collectively account for 53.6% of invested assets and will generate an estimated $878.9 million and $908.9 million in respective dividend income this year, the annual income they produce still trails two other holdings.
The two "ATMs" of Warren Buffett's portfolio are energy stocks Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Chevron has been a continuous holding since the fourth quarter of 2020, while Berkshire's Occidental Petroleum stake has been steadily growing since the first quarter of 2022.
Including shares held by Warren Buffett's secret portfolio, New England Asset Management, Chevron should bring in about $1.01 billion in annual dividend income. Oil stocks are known for their robust capital-return programs and Chevron is no slouch. It's increased its base annual dividend for 36 consecutive years.
Meanwhile, Occidental Petroleum is expected to bring in $952.4 million in annual dividend income. The roughly 211.7 million shares of common stock Berkshire owns should produce $152.4 million of this annual payout. The remaining $800 million will come from a $10 billion preferred stock position yielding 8% that Warren Buffett's company has owned since 2019. Occidental used this $10 billion investment to help fund its acquisition of Anadarko.
Collectively, Chevron and Occidental will generate 32% of Berkshire Hathaway's annual dividend income.
Image source: Getty Images.
Here's why Buffett and his team are gushing over Chevron and Occidental Petroleum
In just a few years, energy stocks went from being virtually nonexistent to representing the third-highest weighting by sector in Berkshire Hathaway's portfolio. Make no mistake, Buffett and his team wouldn't have piled the amount of money they did into Chevron and Occidental if they didn't firmly believe that energy commodity prices (specifically oil) would remain elevated. Two macro catalysts support this thesis.
Probably the most obvious catalyst for higher energy commodity prices is Russia's invasion of Ukraine last year. The war between Russia and Ukraine has no clear end date, which puts European oil and gas supply needs into question.
What's arguably the bigger issue is that global energy majors have pared back their capital investments for three years due to the COVID-19 pandemic. Even though we appear to be putting the worst of the pandemic into the rearview mirror, making up for an extended period of reduced capital expenditures will take years. Generally, an environment where oil and/or gas supply is constrained tends to bode well for energy stocks.
Something else to consider is that Chevron and Occidental Petroleum are both integrated operators. Although their best operating margin derives from their upstream drilling segments, Chevron and Occidental also have chemical businesses. Chevron operates transmission pipelines and refineries as well. In the event that the price of crude oil declines, these ancillary operations can partially hedge any weakness from upstream operations.
Another reason Buffett and his team are likely gushing over energy stocks is their improving balance sheets. Chevron closed out 2021 with $25.7 billion in net debt. Thanks to higher energy commodity prices, it's been able to reduce its net debt to just $7.4 billion, as of March 31, 2023. Comparatively, Occidental Petroleum's net long-term debt has fallen from $35.5 billion at the end of March 2021 to $19.7 billion by the close of 2022. Having more flexible balance sheets means both companies can increase their respective share buyback programs.
For the Oracle of Omaha, "big oil" means big dividends.
10 stocks we like better than Chevron
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Chevron wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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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Two recent buys will account for close to $2 billion in annual dividend income Interestingly enough, Berkshire Hathaway's two largest holdings -- tech stock Apple (NASDAQ: AAPL) and bank stock Bank of America (NYSE: BAC) -- aren't the top dividend producers. Two stocks that the Oracle of Omaha and his investing lieutenants, Todd Combs and Ted Weschler, have been loading up on in recent years are expected to account for nearly $2 billion in annual dividend income. Including shares held by Warren Buffett's secret portfolio, New England Asset Management, Chevron should bring in about $1.01 billion in annual dividend income.
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Two recent buys will account for close to $2 billion in annual dividend income Interestingly enough, Berkshire Hathaway's two largest holdings -- tech stock Apple (NASDAQ: AAPL) and bank stock Bank of America (NYSE: BAC) -- aren't the top dividend producers. Although Apple and BofA collectively account for 53.6% of invested assets and will generate an estimated $878.9 million and $908.9 million in respective dividend income this year, the annual income they produce still trails two other holdings. Including shares held by Warren Buffett's secret portfolio, New England Asset Management, Chevron should bring in about $1.01 billion in annual dividend income.
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Two recent buys will account for close to $2 billion in annual dividend income Interestingly enough, Berkshire Hathaway's two largest holdings -- tech stock Apple (NASDAQ: AAPL) and bank stock Bank of America (NYSE: BAC) -- aren't the top dividend producers. Dividend stocks are Berkshire Hathaway's unsung hero But if there's a reason for Buffett's success that doesn't get nearly enough attention, it's his love of dividend stocks. Here's why Buffett and his team are gushing over Chevron and Occidental Petroleum In just a few years, energy stocks went from being virtually nonexistent to representing the third-highest weighting by sector in Berkshire Hathaway's portfolio.
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Two recent buys will account for close to $2 billion in annual dividend income Interestingly enough, Berkshire Hathaway's two largest holdings -- tech stock Apple (NASDAQ: AAPL) and bank stock Bank of America (NYSE: BAC) -- aren't the top dividend producers. Meanwhile, Occidental Petroleum is expected to bring in $952.4 million in annual dividend income. Collectively, Chevron and Occidental will generate 32% of Berkshire Hathaway's annual dividend income.
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15954.0
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2023-05-08 00:00:00 UTC
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GLOBAL MARKETS-Shares rise, but debt crisis and inflation data dent dollar
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-rise-but-debt-crisis-and-inflation-data-dent-dollar
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nan
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By Amanda Cooper
LONDON, May 8 (Reuters) - Global shares edged up in light trading on Monday, ahead of U.S. inflation data this week that could prove instrumental in setting expectations for the outlook for monetary policy.
The dollar came under pressure as a deadline for lawmakers to resolve a standoff over the U.S. government's borrowing limit drew ever closer.
The MSCI All-World index .MIWD00000PUS, meanwhile, rose 0.2% on the day.
Friday's robust U.S. payrolls report has prompted investors to dial back their expectations for the timing and size of the Federal Reserve's first rate cut. Wednesday's consumer price data is expected to show core inflation slowed moderately.
"With the Fed having hiked by 25 basis points last week and signalled a pause, this week’s inflation report is more about how long the Fed will keep rates at 5.25% before cutting," CityIndex analyst Matt Simpson said.
"A hot print would presumably be bullish for the U.S. dollar as traders push potential cuts further into the future."
Money markets show investors expect U.S. rates to have now peaked and could end this year below 4.40%. Against that backdrop, the dollar is close to its lowest in a year against a basket of major currencies.
The dollar index =USD was last down 0.2% on the day at 101.11, mainly due to gains in the euro EUR=EBS, which rose 0.3% to $1.1046.
Sterling GBP=D3, which has gained 4.5% against the dollar this year, was at $1.2641, at 10-month highs, ahead of a Bank of England policy meeting later this week.
"While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
"Certainly it imposes more growth constraints and a greater stagflationary bias than for major competing economies."
The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy. The dollar rose 0.1% against the yen to 134.95 yen JPY=EBS.
HITTING THE CEILING
In Europe, the STOXX 600 index .STOXX rose 0.2%, although activity was muted by a public holiday in Britain.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results.
Later on Monday, the Federal Reserve's survey of loan officers will draw an unusual amount of attention as markets seek to gauge the impact of regional banking stress on lending.
"The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan.
"Continued stress in the banking system does, of course, increase concern that a disruptive financial market event is on the horizon," he added. "Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited."
Bond markets stabilised after having been rattled by Friday's jobs numbers. Yields on the two-year note were last up 1 bp at 3.935% US2YT=RR, while those on 10-year debt US10YT=RR were flat at 3.435%.
U.S. Treasury Secretary Janet Yellen on Sunday warned of a possible crisis should Congress not raise the debt ceiling before the deadline in early June, which has triggered a broad selloff in short-dated U.S. government debt in the past month.
Meanwhile, the prospect of a pause in U.S. rate hikes has pushed gold towards record highs above $2,000 an ounce. Because it bears no yield itself, higher interest rates undermine investor appetite for gold. Spot gold was up 0.2% at $2,020 an ounce XAU=, having topped $2,072 last week, close to 2020's all-time high.
In other commodity markets, oil rose 1.5% to $76.42 a barrel. Brent crude futures LCOc1 have lost 10% in value so far this year, as concern bubbles about the outlook for global energy demand if the economy tilts towards recession.
U.S. unemployment https://reut.rs/2X245ch
Brent oil prices seen averaging above $90/bbl in Q4https://tmsnrt.rs/41YmJQg
(Additional reporting by Wayne Cole; Editing by Shri Navaratnam and Alison Williams)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. By Amanda Cooper LONDON, May 8 (Reuters) - Global shares edged up in light trading on Monday, ahead of U.S. inflation data this week that could prove instrumental in setting expectations for the outlook for monetary policy. Friday's robust U.S. payrolls report has prompted investors to dial back their expectations for the timing and size of the Federal Reserve's first rate cut.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Money markets show investors expect U.S. rates to have now peaked and could end this year below 4.40%. Meanwhile, the prospect of a pause in U.S. rate hikes has pushed gold towards record highs above $2,000 an ounce.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Sterling GBP=D3, which has gained 4.5% against the dollar this year, was at $1.2641, at 10-month highs, ahead of a Bank of England policy meeting later this week. "While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were roughly flat on the day, having jumped on Friday following Apple's AAPL.O upbeat results. Against that backdrop, the dollar is close to its lowest in a year against a basket of major currencies. The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy.
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15955.0
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2023-05-08 00:00:00 UTC
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3 Tech Titans Set to Break Out
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AAPL
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https://www.nasdaq.com/articles/3-tech-titans-set-to-break-out
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Tech Stocks Climb the Wall of Worry
From a macro perspective, investors have deep-rooted concerns about thecurrent stock market including a potential looming recession, stubborn inflation, a debt crisis, geopolitical escalations, and more. Small-cap stocks within the Russell 2000 Index ETF (IWM) have dragged as regional banking stocks within the SPDR Regional Bank ETF (KRE) continue to struggle.
However, despite the fear-mongering from many investors and the underperformance in some regions of the market, tech has marched higher in a stair-stepping fashion thus far in 2023. Currently, it is in the process of breaking out.
Image Source: Zacks Investment Research
Despite a rough period of outperformance in 2022, it’s easy to see why investors are anxious to get exposure to the Nasdaq 100 ETF (QQQ). Over the past 20 years, the returns have been stellar from both a total return and a relative basis. Since 2003, the QQQ has returned 982.8% versus just 541.5% for the S&P 500 Index.
Image Source: Zacks Investment Research
Though tech has dominated in 2023, not all tech stocks are created equally. For example, former high-flying, lesser-quality tech stocks such as Block (SQ) and Zoom (ZM) are still stuck in downtrends. Conversely, stocks such as Apple (AAPL) and Microsoft (MSFT) have performed so well that they now account for nearly 14% of the S&P 500 Index – the highest weighting for two companies in at least 40 years. So, it’s clear - investors are gravitating toward large-cap, institutional quality stocks with loads of cash.
While stocks like AAPL, MSFT, and Shopify (SHOP) have performed well, new buyers looking to enter tech need to be strategic and not chase stretched charts. Below are three high-quality tech stocks setting up:
My first pick is Alphabet (GOOGL). One of my favorite indications that a position will move higher occurs when a stock can shake off bad news quickly. My thinking is that if bad news is no news, no news should equate to good news.
In early February, GOOGL shares tanked more than 10% after its AI chatbot Bard, made a mistake in its public-facing demo. While it was not a good look for the company or the stock, bargain hunters used the sell-off as an opportunity to accumulate shares. Last week, in a show of conviction, insiders scooped up a cool $20 million worth of the company’s stock. GOOGL is a mega-cap tech name that will essentially track the Q’s but should outperform to the upside over the next 6-12 months.
Image Source: Zacks Investment Research
My next choice is Oracle (ORCL). Oracle is one of the largest enterprise-grade database, middleware, and application software providers. In recent years, Oracle has expanded its cloud computing operations dramatically. The company offers cloud solutions and services that are used to build and manage various cloud deployment models. Oracle also entered the hardware business after acquiring Sun Microsystems several years ago.
Despite Oracle’s massive size, it is not talked about as much as stocks such as Microsoft or Amazon Oracle is not as “sexy” as these companies; however, it produces a ton of revenue and is a dominant player in its space. Furthermore, though Oracle has a beta of just 1 (the same volatility as the S&P 500 Index), it has outperformed 92% of stocks. Low volatility and high returns are the combination that makes for an excellent addition to any portfolio. Last week, Oracle broke out of a classic bull flag pattern on expanding volume.
Image Source: Zacks Investment Research
When discussing dominance and quality in the software space, it is impossible to leave out Salesforce (CRM). Salesforce is the world’s leading Customer Relationship Management (CRM) company. Though CRM’s earnings growth slowed briefly during the uncertainty of the pandemic, the company is beginning to reap the benefits of its recent acquisition spree. Over the past few years, CRM has acquired Microsoft Teams competitor Slack, Tableau, ClickSoftware, and Mulesoft. Furthermore, key strategic partnership agreements with Alphabet and Amazon (AMZN) have helped the company to bolster growth. Last quarter, earnings growth rocketed by 100% year-over-year.
Beyond a resumption of strong growth, CRM is very attractive from a valuation perspective. CRM’s P/E ratio of ~37 is the lowest in at least ten years.
Image Source: Zacks Investment Research
Technically, the stock is consolidating in a bullish manner as it approaches its 50-day moving average for the first time since breaking out earlier this year. The first pullback to the 50-day moving average should offer investors a low-risk entry point and give them a chance to gain a cushion in the stock before it reports earnings at the end of the month.
Image Source: Zacks Investment Research
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
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Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Conversely, stocks such as Apple (AAPL) and Microsoft (MSFT) have performed so well that they now account for nearly 14% of the S&P 500 Index – the highest weighting for two companies in at least 40 years. While stocks like AAPL, MSFT, and Shopify (SHOP) have performed well, new buyers looking to enter tech need to be strategic and not chase stretched charts. 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 Salesforce Inc. (CRM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Salesforce Inc. (CRM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Conversely, stocks such as Apple (AAPL) and Microsoft (MSFT) have performed so well that they now account for nearly 14% of the S&P 500 Index – the highest weighting for two companies in at least 40 years. While stocks like AAPL, MSFT, and Shopify (SHOP) have performed well, new buyers looking to enter tech need to be strategic and not chase stretched charts.
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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 Salesforce Inc. (CRM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here. Conversely, stocks such as Apple (AAPL) and Microsoft (MSFT) have performed so well that they now account for nearly 14% of the S&P 500 Index – the highest weighting for two companies in at least 40 years. While stocks like AAPL, MSFT, and Shopify (SHOP) have performed well, new buyers looking to enter tech need to be strategic and not chase stretched charts.
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Conversely, stocks such as Apple (AAPL) and Microsoft (MSFT) have performed so well that they now account for nearly 14% of the S&P 500 Index – the highest weighting for two companies in at least 40 years. While stocks like AAPL, MSFT, and Shopify (SHOP) have performed well, new buyers looking to enter tech need to be strategic and not chase stretched charts. 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 Salesforce Inc. (CRM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15956.0
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2023-05-08 00:00:00 UTC
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GLOBAL MARKETS-Asia shares edge higher, wary of US bank data
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-edge-higher-wary-of-us-bank-data
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nan
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nan
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By Wayne Cole
SYDNEY, May 8 (Reuters) - Asian shares were mostly higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar.
Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
Forecasts are for a rise of 0.4% in April for both the headline and core CPI, with the annual pace of core inflation slowing just a tick to 5.5%.
Later Monday, the Federal Reserve's survey of loan officers will draw an unusual amount of attention as markets seek to gauge the impact of regional banking stress on lending.
"The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan.
"Continued stress in the banking system does, of course, increase concern that a disruptive financial market event is on the horizon," he added. "Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited."
Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.7%, while Japan's Nikkei .N225 eased 0.6%.
Chinese blue chips .CSI300 gained 1.1% ahead of data on trade and inflation due later in the week.
EUROSTOXX 50 futures STXEc1 added 0.1%, while FTSE futures FFIc1 were closed for a holiday.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were both little changed, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. .N
While the S&P 500 is up almost 8% for the year so far, all of that is due to just five mega stocks which have collectively risen by 29% so far this year and trade at a 49% premium to the rest of the index.
HITTING THE CEILING
Bond markets were still stinging from the strong payrolls report with U.S. two-year yields US2YT=RR up at 3.93% after briefly getting as low at 3.657% last week.
Not helping has been the risk of a U.S. government default with U.S. Treasury Secretary Janet Yellen on Sunday warning of a possible crisis should Congress not raise the debt ceiling.
Futures 0#FF: imply a near 90% chance the Fed will keep rates steady at its next meeting in June, and a 75% probability of a cut in September. FEDWATCH
The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday. 0#ECBWATCH, 0#BOEWATCH.
The diverging outlook on rates has underpinned the euro and pound, with the latter hitting a one-year high on the U.S. dollar last week. The euro was holding at $1.1040 EUR=EBS on Monday, just short of its recent top of $1.1096.
"While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
"Certainly it imposes more growth constraints and a greater stagflationary bias than for major competing economies."
The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy. The dollar stood at 134.80 yen JPY=EBS, with the euro at 148.75 EURJPY=R and not far from its recent 15-year peak of 151.55.
The prospect of a pause in U.S. rate hikes has been a boon for non-yielding gold which was holding at $2,021 an ounce XAU= after nearing a record high last week. GOL/
Oil prices have been going the other way as fears of a global economic slowdown eclipsed planned output cuts to see U.S. crude shed more than 7% last week. O/R
Brent LCOc1 was last up 40 cents at $75.70 a barrel, while U.S. crude CLc1 added 42 cents to $71.76 per barrel.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole Editing by Shri Navaratnam)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both little changed, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares were mostly higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both little changed, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.7%, while Japan's Nikkei .N225 eased 0.6%. O/R Brent LCOc1 was last up 40 cents at $75.70 a barrel, while U.S. crude CLc1 added 42 cents to $71.76 per barrel.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both little changed, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares were mostly higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. FEDWATCH The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both little changed, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Futures 0#FF: imply a near 90% chance the Fed will keep rates steady at its next meeting in June, and a 75% probability of a cut in September. The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy.
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15957.0
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2023-05-08 00:00:00 UTC
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US STOCKS-Futures edge higher, key inflation data awaited
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-edge-higher-key-inflation-data-awaited
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nan
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nan
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By Shreyashi Sanyal
May 8 (Reuters) - U.S. stock index futures edged higher on Monday ahead of a key inflation reading during the week that will be scrutinized for whether the Federal Reserve's efforts to cool prices were taking hold, while shares of regional lenders extended gains.
Regional bank shares stretched gains from a rebound on Friday, with PacWest Bancorp PACW.O jumping 33% premarket after the company announced quarterly dividend. Peers Western Alliance Bancorp WAL.N, Comerica Inc CMA.N and Zions Bancorp ZION.O rose between 3.5% and 8.6%.
Shares of such banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market.
At 6:37 a.m. ET, Dow e-minis 1YMcv1 were up 67 points, or 0.2%, S&P 500 e-minis EScv1 were up 6 points, or 0.14%, and Nasdaq 100 e-minis NQcv1 were down 4.25 points, or 0.03%.
Focus will be on the Labor Department's inflation data on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March, while excluding the volatile food and energy components, the CPI likely increased 0.4% last month.
Data on producer prices, weekly jobless claims and on consumer sentiment are all lined up through the week.
These data points will help investors not only gauge whether the Fed's aggressive tightening cycle - including its most recent 25 basis point hike last week - is working towards tamping down inflation but also if fears of stagflation are founded.
"Market expectation of cuts already in the summer are based on a too-optimistic forecast of a quick disinflation," Paolo Zanghieri senior economist at Generali Investments, wrote in a note. "Anyway, inflation stabilizing at 3% would not be enough for the Fed to start easing rates."
American Airlines Group Inc AAL.O rose 3.0% after J.P. Morgan raised its rating on the company's stock to "overweight" from "neutral", while Southwest Airlines Co LUV.N fell 1.1% as JPM downgraded its stock to "neutral" from "overweight".
On earnings, Warren Buffett's Berkshire Hathaway Inc's BRKb.N Class B shares rose 1.5% after the company posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.
Dish NetworkDISH.O lost 4.5% after the pay TV and wireless communications service provider reported first-quarter revenue below estimates.
Tupperware Brands Corp TUP.N tumbled 18.3% after the company said it had engaged investment bank Moelis & Co LLC to explore strategic alternatives.
(Reporting by Shreyashi Sanyal and Shristi Achar in Bengaluru; Editing by Nivedita Bhattacharjee and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. By Shreyashi Sanyal May 8 (Reuters) - U.S. stock index futures edged higher on Monday ahead of a key inflation reading during the week that will be scrutinized for whether the Federal Reserve's efforts to cool prices were taking hold, while shares of regional lenders extended gains. On earnings, Warren Buffett's Berkshire Hathaway Inc's BRKb.N Class B shares rose 1.5% after the company posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. Regional bank shares stretched gains from a rebound on Friday, with PacWest Bancorp PACW.O jumping 33% premarket after the company announced quarterly dividend. ET, Dow e-minis 1YMcv1 were up 67 points, or 0.2%, S&P 500 e-minis EScv1 were up 6 points, or 0.14%, and Nasdaq 100 e-minis NQcv1 were down 4.25 points, or 0.03%.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. By Shreyashi Sanyal May 8 (Reuters) - U.S. stock index futures edged higher on Monday ahead of a key inflation reading during the week that will be scrutinized for whether the Federal Reserve's efforts to cool prices were taking hold, while shares of regional lenders extended gains. Focus will be on the Labor Department's inflation data on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March, while excluding the volatile food and energy components, the CPI likely increased 0.4% last month.
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U.S. stock indexes staged a late-week rally on Friday, with the Dow Jones Industrial Average .DJI posting its biggest one-day percentage gain since Jan. 6 after upbeat results from Apple Inc AAPL.O and U.S. jobs data highlighting a resilient labor market. Regional bank shares stretched gains from a rebound on Friday, with PacWest Bancorp PACW.O jumping 33% premarket after the company announced quarterly dividend. Shares of such banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
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15958.0
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2023-05-07 00:00:00 UTC
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GLOBAL MARKETS-Asia shares mostly higher, focus on US bank data
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-mostly-higher-focus-on-us-bank-data
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nan
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nan
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By Wayne Cole
SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar.
Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
Forecasts are for a rise of 0.4% in April for both the headline and core CPI, with the annual pace of core inflation slowing just a tick to 5.5%.
Later Monday, the Federal Reserve's survey of loan officers will draw an unusual amount of attention as markets seek to gauge the impact of regional banking stress on lending.
"The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan.
"Continued stress in the banking system does, of course, increase concern that a disruptive financial market event is on the horizon," he added. "Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited."
Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.7%, while Japan's Nikkei .N225 eased 0.6%.
Chinese blue chips .CSI300 gained 1.2% ahead of data on trade and inflation due later in the week.
EUROSTOXX 50 futures STXEc1 added 0.2%, while FTSE futures FFIc1 were closed for a holiday.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were both flat, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. .N
While the S&P 500 is up almost 8% for the year so far, all of that is due to just five mega stocks which have collectively risen by 29% so far this year and trade at a 49% premium to the rest of the index.
HITTING THE CEILING
Bond markets were still stinging from the strong payrolls report with U.S. two-year yields US2YT=RR up at 3.93% after briefly getting as low at 3.657% last week.
Not helping has been the risk of a U.S. government default with U.S. Treasury Secretary Janet Yellen on Sunday warning of a possible crisis should Congress not raise the debt ceiling.
Futures 0#FF: imply a near 90% chance the Fed will keep rates steady at its next meeting in June, and a 75% probability of a cut in September. FEDWATCH
The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday. 0#ECBWATCH, 0#BOEWATCH.
The diverging outlook on rates has underpinned the euro and pound, with the latter hitting a one-year high on the U.S. dollar last week. The euro was holding at $1.1034 EUR=EBS on Monday, just short of its recent top of $1.1096.
"While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
"Certainly it imposes more growth constraints and a greater stagflationary bias than for major competing economies."
The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy. The dollar stood at 134.82 yen JPY=EBS, with the euro at 148.75 EURJPY=R and not far from its recent 15-year peak of 151.55.
The prospect of a pause in U.S. rate hikes has been a boon for non-yielding gold which was holding at $2,021 an ounce XAU= after nearing a record high last week. GOL/
Oil prices have been going the other way as fears of a global economic slowdown eclipsed planned output cuts to see U.S. crude shed more than 7% last week. O/R
Brent LCOc1 was last up 14 cents at $75.44 a barrel, while U.S. crude CLc1 added 16 cents to $71.50 per barrel.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole Editing by Shri Navaratnam)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both flat, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both flat, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.7%, while Japan's Nikkei .N225 eased 0.6%. O/R Brent LCOc1 was last up 14 cents at $75.44 a barrel, while U.S. crude CLc1 added 16 cents to $71.50 per barrel.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both flat, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. FEDWATCH The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both flat, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Futures 0#FF: imply a near 90% chance the Fed will keep rates steady at its next meeting in June, and a 75% probability of a cut in September. The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy.
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15959.0
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2023-05-07 00:00:00 UTC
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GLOBAL MARKETS-Asia shares inch higher, U.S. inflation test looms
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-inch-higher-u.s.-inflation-test-looms
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nan
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nan
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By Wayne Cole
SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar.
Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
Forecasts are for a rise of 0.4% in April for both the headline and core CPI, with the annual pace of core inflation slowing just a tick to 5.5%.
Later Monday, the Federal Reserve's survey of loan officers will draw an unusual amount of attention as markets seek to gauge the impact of regional banking stress on lending.
"The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan.
"Continued stress in the banking system does, of course, increase concern that a disruptive financial market event is on the horizon," he added. "Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited."
Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.3%, while Japan's Nikkei .N225 eased 0.3%.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were both off 0.1%, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. .N
While the S&P 500 is up almost 8% for the year so far, all of that is due to just five mega stocks which have collectively risen by 29% so far this year and trade at a 49% premium to the rest of the index.
Bond markets were still stinging from the strong payrolls report with U.S. two-year yields US2YT=RR up at 3.95% after briefly getting as low at 3.657% last week.
Futures 0#FF: imply a near 90% chance the Fed will keep rates steady at its next meeting in June, and a 75% probability of a cut in September. FEDWATCH
The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday. 0#ECBWATCH, 0#BOEWATCH.
The diverging outlook on rates has underpinned the euro and pound, with the latter hitting a one-year high on the U.S. dollar last week. The euro was holding at $1.1018 EUR=EBS on Monday, just short of its recent top of $1.1096.
"While it is premature to get too 'beared up' on the dollar until a clearer peak in U.S. rates is seen, the U.S. banking sector travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story," said Alan Ruskin, head of global FX strategy at Deutsche Bank.
"Certainly it imposes more growth constraints and a greater stagflationary bias than for major competing economies."
The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy. The dollar stood at 135.19 yen JPY=EBS, with the euro at 148.93 EURJPY=R and not far from its recent 15-year peak of 151.55.
The prospect of a pause in U.S. rate hikes has been a boon for non-yielding gold which was holding at $2,015 an ounce XAU= after nearing a record high last week. GOL/
Oil prices have been going the other way as fears of a global economic slowdown outweighed planned output cuts to see U.S. crude shed more than 7% last week. O/R
Brent LCOc1 was last up 3 cents at $75.33 a barrel, while U.S. crude CLc1 added 5 cents to $71.39 per barrel.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole Editing by Shri Navaratnam)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both off 0.1%, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both off 0.1%, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Caution made for a slow start in markets and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.3%, while Japan's Nikkei .N225 eased 0.3%. O/R Brent LCOc1 was last up 3 cents at $75.33 a barrel, while U.S. crude CLc1 added 5 cents to $71.39 per barrel.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both off 0.1%, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. By Wayne Cole SYDNEY, May 8 (Reuters) - Asian shares crept higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while worries about a possible credit crunch weighed on the dollar. FEDWATCH The market is still pricing in at least one more hike from the European Central Bank, while the Bank of England is widely expected to lift its rates by a quarter point on Thursday.
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S&P 500 futures ESc1 and Nasdaq futures NQc1 were both off 0.1%, after jumping on Friday in the wake of Apple's AAPL.O upbeat results. Friday's robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer prices would challenge bets for a rate cut as soon as September. The dollar has fared better on the yen as the Bank of Japan remains the only central bank in the developed world to not have tightened policy.
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15960.0
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2023-05-07 00:00:00 UTC
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Charlie Munger's Advice to Value Investors: "Get Used to Making Less"
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AAPL
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https://www.nasdaq.com/articles/charlie-mungers-advice-to-value-investors%3A-get-used-to-making-less
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nan
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nan
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Warren Buffett got his start by investing in small, unknown companies for less than they were worth. A lot has changed in the decades since, and Buffett has repeatedly said that many of those easy opportunities have long been lost due to a far more sophisticated and informed market.
During Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) annual shareholders meeting on Saturday, Buffett's right-hand man, Charlie Munger, had a warning to investors. "I think value investors are going to have a harder time now that there's so many of them competing for a diminished bunch of opportunities. So my advice to value investors is to get used to making less," Munger said.
But before you despair, consider this piece of good news: Buffett believes that short-term thinking and dumb ideas are running more rampant than ever. Investors who combat these impulses with patience can gain an edge over Wall Street.
Here's what Munger and Buffett said about value investing at the annual meeting -- and how their lessons could help you make wise investment decisions.
Image source: The Motley Fool.
Opportunities occur when people do dumb things
Because Berkshire is so big now, Buffett and Munger can't benefit much from investing in traditional hidden gems. Instead, they have to focus more on finding high-quality companies and letting those investments compound over time. Yet value investors around the world still look up to them for their ability to identify what Buffett would call "a wonderful business at a fair price."
Today's media landscape has more voices preaching fast and easy money. There are plenty of dangerous yet enviable success stories built on a house of lucky cards. Buffett believes that part of the problem is that it is easier for people to get the capital needed to pitch an idea or pursue a bad business plan. When these businesses go public, their financials or path to profitability can be cloudy at best. This presents a challenge for investors that have to filter out the noise and determine if a prospective growth stock can bridge the gap between expectations and reality. On Saturday, Buffett said:
New things coming along don't take away the opportunities. What gives you opportunities is other people doing dumb things. And I would say that the 58 years we've been running Berkshire, I would say there's been a great increase in the number of people doing dumb things, and they do big dumb things. And the reason they do it to some extent is because they can get money from other people so much easier than when we started.
Buffett believes he could do well if he were just starting out in today's market by simply ignoring Wall Street's short-term focus and identifying opportunities based on long-term fundamentals:
The world is overwhelmingly short-term focused. And if you go to an investor relations call ... the management is interested in feeding them expectations that will slightly be beaten. That is a world that is made to order for anybody that's trying to think about what to do that should work over five, or ten, or twenty years. And I just think that I'd love to be born today, and go out with not too much money and hopefully turn it into a lot of money.
When Buffett was first starting out, the greatest advantage a value investor could have was access to information. Today, with information beyond the young Buffett's dreams available without much effort, the greatest advantage is the ability to ignore distractions and the discipline to maintain a long-term time horizon.
Focusing on what matters most
Buffett's disdain for speculative gambles and big companies taking advantage of smaller players has been an ongoing narrative for several years. However, Buffett did provide a reassuring comment for investors that are managing less capital -- such as individual investors.
I think that investing has disappeared so much from this huge capitalistic market, that anybody can play in, but the big money is in selling other people ideas that aren't outperforming. And I think that if you don't if you don't run too much money, which we do, but if you're running small amounts of money, I think the opportunities will be greater. But then Charlie and I have always differed on this subject, he likes to tell me how gloomy the world is and I like to tell him, "We'll find something," and so far we've both been kind of right.
One of the biggest advantages of being an individual investor is that your results aren't measured against peers. All that matters is that you achieve your financial goals. Financial goals and aligning your personal risk tolerance with your investment allocation matter much more than beating the market in a given year or two.
Taking advantage of Wall Street's short-term focus
Despite Buffett's steadfast optimism toward the individual value investor, both Buffett and Munger agreed that investing is far harder today than when they first got their start. Munger said the following during the annual meeting:
There is so much money in the hands of so many smart people, all trying to outsmart one another, and outgrow one another, getting more money out of other people. And it's a radically different world from the world we started in, and I suppose it will have its opportunities, but it's also going to have some unpleasant episodes.
In the pursuit of outsmarting each other, Wall Street can often drastically overvalue or undervalue a stock in the short term -- which can lead to generational wealth for long-term investors. Berkshire has a history of taking advantage of mispriced assets, whether it's swooping in to invest in distressed financial institutions or its relatively recent success with Apple.
Buffet and his team began buying Apple stock during a time when its price to earnings ratio was around 12 and Wall Street was skeptical its ability to scale with services revenue. Fast forward to Apple's latest quarter, and it's notched a staggering $20.9 billion just in services revenue -- an all-time high for the segment.
A vote of confidence for individual investors
It's easy to get discouraged by Wall Street's influence and the growing sophistication of public markets. But if the past few years have taught us anything, it's that markets are more sensitive than ever to short-term performance. It can feel like a lot to handle: the wild price swings of 2020, the tech boom of 2021, the steep sell-off of 2022, and the gradual recovery of 2023. But zoom out, and the volatility for high-quality companies was ultimately just noise.
So while the competition on Wall Street may be more intense than ever before, there's a good argument that individual value investors can still do quite well in the stock market so long as they stay principled and patient.
10 stocks we like better than Berkshire Hathaway
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Daniel Foelber 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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Opportunities occur when people do dumb things Because Berkshire is so big now, Buffett and Munger can't benefit much from investing in traditional hidden gems. Today, with information beyond the young Buffett's dreams available without much effort, the greatest advantage is the ability to ignore distractions and the discipline to maintain a long-term time horizon. Buffet and his team began buying Apple stock during a time when its price to earnings ratio was around 12 and Wall Street was skeptical its ability to scale with services revenue.
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During Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) annual shareholders meeting on Saturday, Buffett's right-hand man, Charlie Munger, had a warning to investors. Buffett believes he could do well if he were just starting out in today's market by simply ignoring Wall Street's short-term focus and identifying opportunities based on long-term fundamentals: The world is overwhelmingly short-term focused. Taking advantage of Wall Street's short-term focus Despite Buffett's steadfast optimism toward the individual value investor, both Buffett and Munger agreed that investing is far harder today than when they first got their start.
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Opportunities occur when people do dumb things Because Berkshire is so big now, Buffett and Munger can't benefit much from investing in traditional hidden gems. Buffett believes he could do well if he were just starting out in today's market by simply ignoring Wall Street's short-term focus and identifying opportunities based on long-term fundamentals: The world is overwhelmingly short-term focused. Taking advantage of Wall Street's short-term focus Despite Buffett's steadfast optimism toward the individual value investor, both Buffett and Munger agreed that investing is far harder today than when they first got their start.
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And I think that if you don't if you don't run too much money, which we do, but if you're running small amounts of money, I think the opportunities will be greater. Taking advantage of Wall Street's short-term focus Despite Buffett's steadfast optimism toward the individual value investor, both Buffett and Munger agreed that investing is far harder today than when they first got their start. * 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!
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15961.0
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2023-05-07 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-5
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Warren Buffett is a name that's synonymous with investing success. Through his company, Berkshire Hathaway, he's managed to amass a fortune in the stock market rivaled by very few in history. Many Berkshire Hathaway shareholders have also gotten rich along the way.
Buffett's investing philosophy has remained simple yet is tried and true: Invest in great businesses and hold them for the long haul.
If you're looking for Buffett stocks to invest in right now, look no further than these three no-brainers.
1. Coca-Cola
Coca-Cola (NYSE: KO) is up the fourth-largest position in Berkshire Hathaway's portfolio, trailing behind only Apple, Bank of America, and Chevron. Buffett likes Coca-Cola because it's a stock he feels comfortable holding forever, primarily because of the company's iconic brand and unrivaled distribution.
Impressively, Coca-Cola has managed to get distribution in more than 200 countries and territories around the world, which isn't easy to do -- especially profitably. In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. That's a decline from its Q4 2022 year-over-year growth, but it still beat earnings-per-share predictions by 5.4%.
The company continues to add to its portfolio by investing in beverage categories outside of soft drinks. Coca-Cola's water and coffee segments unit case volume increased by 5% and 9%, respectively, outpacing its flagship Coca-Cola soda and other sparking soft drinks.
There's no doubt soft drinks are Coca-Cola's main money-maker, but its long-term growth will likely depend on how well it can compete in high-growth categories such as ready-to-drink alcohol. The good news is Coca-Cola's management has shown its willingness to make the necessary investments to maintain its dominance and expand its offerings.
You could argue that Coca-Cola is slightly overvalued, but if you're in it for the long term, you shouldn't be too concerned, given the company's track record. Add in the company's generous dividend, and you can be like Buffett and feel comfortable holding this stock forever.
2. Snowflake
Snowflake (NYSE: SNOW) was a rare investment in an initial public offering (IPO) for Berkshire Hathaway, which purchased about $735 million worth of shares of the company at its $120 IPO price in September 2020. Snowflake's stock is now just over $155, which isn't a loss for Berkshire Hathaway, but it's also a far cry from its November 2021 high of about $392.
Snowflake is a cloud data-warehousing platform that seems to have all the tools needed to be an industry leader for a long time. Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes," and Snowflake should be a stock investors feel comfortable holding for a decade-plus.
As of March 1, the company had just over 7,800 customers (up 31% year over year), with 330 spending at least $1 million annually with the company (up 79% year over year). And one way to know it's not just hype is Snowflake's 158% dollar-based net revenue retention rate. This means customers are spending 58% more each year with the company -- a key to longevity.
Snowflake hasn't reached net profitability yet, but its free cash flow is impressive. In its 2022 investor day presentation, the company said it wanted to achieve 25% free-cash-flow margins (free cash flow as a percentage of revenue) by its 2029 fiscal year. It managed to hit 25% this past fiscal year, so the company is headed in the right direction.
3. Visa
It's been a good few years for Visa (NYSE: V), which has outperformed the S&P 500 over the past five years.
Visa has one of Buffett's favorite qualities in a company: a huge competitive moat. In Visa's case, its competitive moat is its merchant reach. As of the fiscal second-quarter ended March 31, Visa had more than 100 million merchants in its global network.
Because Visa earns money by taking a percentage of the transactions it processes, it could take a slight hit if a recession occurs and causes people and businesses to slow spending. In the meantime, the company's been going strong. In fiscal Q2, Visa brought in $7.9 billion in revenue (up 11% year over year) and increased payments volume by 10%.
Despite its impressive reach, there's still plenty of room for Visa to grow, considering how many countries still operate predominantly with cash. The gap it has on competitors will be all but impossible to close anytime soon -- especially if Visa continues growing at the current rate.
10 stocks we like better than Coca-Cola
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Coca-Cola 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 1, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa. 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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Buffett likes Coca-Cola because it's a stock he feels comfortable holding forever, primarily because of the company's iconic brand and unrivaled distribution. There's no doubt soft drinks are Coca-Cola's main money-maker, but its long-term growth will likely depend on how well it can compete in high-growth categories such as ready-to-drink alcohol. In its 2022 investor day presentation, the company said it wanted to achieve 25% free-cash-flow margins (free cash flow as a percentage of revenue) by its 2029 fiscal year.
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In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. Snowflake hasn't reached net profitability yet, but its free cash flow is impressive. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa.
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In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes," and Snowflake should be a stock investors feel comfortable holding for a decade-plus. As of March 1, the company had just over 7,800 customers (up 31% year over year), with 330 spending at least $1 million annually with the company (up 79% year over year).
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If you're looking for Buffett stocks to invest in right now, look no further than these three no-brainers. Visa It's been a good few years for Visa (NYSE: V), which has outperformed the S&P 500 over the past five years. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa.
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15962.0
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2023-05-06 00:00:00 UTC
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Buffett says debt default would spark turmoil, has confidence in U.S.
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AAPL
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https://www.nasdaq.com/articles/buffett-says-debt-default-would-spark-turmoil-has-confidence-in-u.s.
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(Recasts first paragraph; adds comments from Buffett, Munger
and Abel throughout)
By Jonathan Stempel, Carolina Mandl and John McCrank
OMAHA/NEW YORK, May 6 (Reuters) -
Warren Buffett on Saturday offered a vote of confidence in
the United States, saying he could not imagine the government
letting it default on its debt and risk letting the world's
financial system "go into turmoil."
Speaking at Berkshire Hathaway Inc's annual meeting
in downtown Omaha, Buffett also said it would have been
"catastrophic" for regulators not to step in to protect
depositors of Silicon Valley Bank, which was seized in March
after a bank run.
But he said Berkshire is well-positioned, as rising interest
rates help its insurance units generate more income from
investments, even as partnership in Washington deteriorates into
a form of "tribalism" where people talk past each other.
"We have to refine, in a certain way, our democracy as
we go along," he said. "But if I still had a choice, I would
want to be born in the United States. It is a better world than
we've ever had."
The comments came hours after Berkshire posted a big
jump in quarterly profit and said it bought back $4.4 billion of
its own stock, a sign it considered the shares undervalued. In
contrast, it sold $13.3 billion of other companies' stocks.
Buffett, 92, who is Berkshire's chairman and chief
executive, and Charlie Munger, 99, a vice chairman, are
answering five hours of shareholder questions at the meeting.
Vice Chairman Greg Abel, 60, who would become CEO if Buffett
were no longer in charge, and Vice Chairman Ajit Jain, 71, are
also taking some questions.
Buffett, the world's sixth-richest person, has run Berkshire
since 1965. The company now owns dozens of businesses including
Geico car insurance and the BNSF railroad, and recently owned
$328 billion of stocks including Apple Inc .
MORE PEOPLE
Saturday's meeting is the centerpiece of a weekend Buffett
calls "Woodstock for Capitalists" that draws tens of thousands
of people to Omaha.
Attendance is up significantly from last year, with
Berkshire receiving ticket requests from 45 countries.
Unlike in 2022, the downtown Omaha arena hosting the meeting
was filled to capacity.
Berkshire also issued first-quarter results on Saturday.
Net income increased more than sixfold to $35.5 billion,
largely reflecting gains from Berkshire's stock holdings
including Apple Inc , as well as higher income from
investments and a performance rebound at the Geico car insurer.
GET USED TO LESS
In discussing Berkshire's performance, Buffett said perhaps
a majority of its operating businesses may fare worse in 2023
than in 2022 as economic activity slows, but this can be offset
by rising investment income.
He said it added $7 billion of Treasury bills in April,
and recently bought another $3 billion yielding close to 6%.
Munger said Berkshire is unlikely to make a major foray
into artificial intelligence, saying "old-fashioned intelligence
works pretty well."
But he also said value investors such as himself,
Buffett and many of their fans "should get used to making less"
in part because so many investors are following similar
strategies, prompting muffled groans from the audience.
Abel also said BNSF, which he oversees, is taking steps
to reassure customers following a recent spate industrywide of
train derailments.
WAITING ON LINE
Prior to the meeting, dozens of uniform-clad pilots at
Berkshire-owned NetJets demonstrated outside the arena,
protesting low pay, long hours and fatigue.
Thousands more lined up outside the arena before its 7
a.m. CDT (1200 GMT) opening, often to get seats close to the
stage.
Many recognized it could be one of their last chances to see
Buffett and Munger, given their advanced ages.
Vidhya Vivekananda, an investment associate from Vancouver,
said she and her husband showed up 30 minutes earlier for their
first meeting.
"It has been on our bucket list for a long time," she said.
"We don't know how long it will be with Warren and Charlie
before they pass it on."
Yongsheng Zhao, who lives in Shanghai and is a researcher
for an asset management firm, said he showed up at midnight to
attend his eighth Berkshire meeting. He brought his own chair.
"I am inspired by their passion and normalcy," he said,
referring to Buffett and Munger. "I would hope they can go
another five years, or more."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FACTBOX-Warren Buffett, Berkshire Hathaway at a glance
[nL1N36Z34Q]
Buffett's Berkshire posts $35.5 bln profit, buys back more stock
[nL1N373087]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Jonathan Stempel in Omaha, Nebraska; additional
reporting by Carolina Mandl and John McCrank in New York;
Editing by Megan Davies, Ira Iosebashvili and Diane Craft)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))
Keywords: BERKSHIRE BUFFETT/ (WRAPUP 2, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But he said Berkshire is well-positioned, as rising interest rates help its insurance units generate more income from investments, even as partnership in Washington deteriorates into a form of "tribalism" where people talk past each other. The comments came hours after Berkshire posted a big jump in quarterly profit and said it bought back $4.4 billion of its own stock, a sign it considered the shares undervalued. In discussing Berkshire's performance, Buffett said perhaps a majority of its operating businesses may fare worse in 2023 than in 2022 as economic activity slows, but this can be offset by rising investment income.
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(Recasts first paragraph; adds comments from Buffett, Munger and Abel throughout) By Jonathan Stempel, Carolina Mandl and John McCrank OMAHA/NEW YORK, May 6 (Reuters) - Warren Buffett on Saturday offered a vote of confidence in the United States, saying he could not imagine the government letting it default on its debt and risk letting the world's financial system "go into turmoil." The company now owns dozens of businesses including Geico car insurance and the BNSF railroad, and recently owned $328 billion of stocks including Apple Inc . <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-Warren Buffett, Berkshire Hathaway at a glance [nL1N36Z34Q] Buffett's Berkshire posts $35.5 bln profit, buys back more stock [nL1N373087] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jonathan Stempel in Omaha, Nebraska; additional reporting by Carolina Mandl and John McCrank in New York; Editing by Megan Davies, Ira Iosebashvili and Diane Craft) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
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(Recasts first paragraph; adds comments from Buffett, Munger and Abel throughout) By Jonathan Stempel, Carolina Mandl and John McCrank OMAHA/NEW YORK, May 6 (Reuters) - Warren Buffett on Saturday offered a vote of confidence in the United States, saying he could not imagine the government letting it default on its debt and risk letting the world's financial system "go into turmoil." Buffett, 92, who is Berkshire's chairman and chief executive, and Charlie Munger, 99, a vice chairman, are answering five hours of shareholder questions at the meeting. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-Warren Buffett, Berkshire Hathaway at a glance [nL1N36Z34Q] Buffett's Berkshire posts $35.5 bln profit, buys back more stock [nL1N373087] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jonathan Stempel in Omaha, Nebraska; additional reporting by Carolina Mandl and John McCrank in New York; Editing by Megan Davies, Ira Iosebashvili and Diane Craft) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
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(Recasts first paragraph; adds comments from Buffett, Munger and Abel throughout) By Jonathan Stempel, Carolina Mandl and John McCrank OMAHA/NEW YORK, May 6 (Reuters) - Warren Buffett on Saturday offered a vote of confidence in the United States, saying he could not imagine the government letting it default on its debt and risk letting the world's financial system "go into turmoil." Speaking at Berkshire Hathaway Inc's annual meeting in downtown Omaha, Buffett also said it would have been "catastrophic" for regulators not to step in to protect depositors of Silicon Valley Bank, which was seized in March after a bank run. The company now owns dozens of businesses including Geico car insurance and the BNSF railroad, and recently owned $328 billion of stocks including Apple Inc .
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15963.0
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2023-05-06 00:00:00 UTC
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Buffett says Apple is Berkshire portfolio's best business
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AAPL
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https://www.nasdaq.com/articles/buffett-says-apple-is-berkshire-portfolios-best-business
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nan
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OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio.
"Apple is different than the other businesses we own. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska.
Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio,
Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need.
Berkshire has recently held a 5.6% stake in Apple, and Buffett said it could buy more.
(Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need. (Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft) ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need.
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OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need. (Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft) ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. "Apple is different than the other businesses we own. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska.
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15964.0
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2023-05-06 00:00:00 UTC
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Apple (AAPL) Declares $0.24 Dividend
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-declares-%240.24-dividend
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nan
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Apple said on May 4, 2023 that its board of directors declared a regular quarterly dividend of $0.24 per share ($0.96 annualized). Previously, the company paid $0.23 per share.
Shares must be purchased before the ex-div date of May 12, 2023 to qualify for the dividend. Shareholders of record as of May 15, 2023 will receive the payment on May 18, 2023.
At the current share price of $173.57 / share, the stock's dividend yield is 0.55%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.96%, the lowest has been 0.48%, and the highest has been 1.99%. The standard deviation of yields is 0.42 (n=236).
The current dividend yield is 0.97 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.16. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.17%, demonstrating that it has increased its dividend over time.
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What is the Fund Sentiment?
There are 6411 funds or institutions reporting positions in Apple. This is an increase of 204 owner(s) or 3.29% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.17%, an increase of 3.91%. Total shares owned by institutions decreased in the last three months by 0.23% to 10,097,989K shares.
The put/call ratio of AAPL is 0.99, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 0.19% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 0.19% from its latest reported closing price of 173.57.
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 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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.
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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Average portfolio weight of all funds dedicated to AAPL is 3.17%, an increase of 3.91%. The put/call ratio of AAPL is 0.99, indicating a bullish outlook. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 3.17%, an increase of 3.91%. The put/call ratio of AAPL is 0.99, indicating a bullish outlook. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 3.17%, an increase of 3.91%. The put/call ratio of AAPL is 0.99, indicating a bullish outlook. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 3.17%, an increase of 3.91%. The put/call ratio of AAPL is 0.99, indicating a bullish outlook. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
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15965.0
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2023-05-06 00:00:00 UTC
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Buffett says he cannot imagine a U.S. debt default
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AAPL
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https://www.nasdaq.com/articles/buffett-says-he-cannot-imagine-a-u.s.-debt-default
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nan
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nan
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By Jonathan Stempel
OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett said on Saturday he could not imagine Washington allowing the U.S. to default on its debt by refusing to raise the country's debt ceiling, and risk disrupting the world's financial system by letting the world "go into turmoil."
Speaking at Berkshire Hathaway Inc's annual meeting in downtown Omaha, Buffett also said it would have been "catastrophic" for regulators not to protect depositors of the recently seized Silicon Valley Bank.
Buffett, 92, who is Berkshire's chairman and chief executive, and Charlie Munger, 99, a vice chairman, are answering five hours of shareholder questions at the meeting.
Vice Chairman Greg Abel, 60, who would become CEO if Buffett were no longer in charge, and Vice Chairman Ajit Jain, 71, are also taking some questions.
MORE PEOPLE
The meeting is the centerpiece of a weekend Buffett calls "Woodstock for Capitalists" that draws tens of thousands of people to Omaha. It also includes shopping discounts and events around the city.
Attendance is up significantly from last year, with Berkshire receiving ticket requests from 45 countries.
Unlike in 2022, the downtown Omaha arena hosting the meeting was filled to capacity.
Berkshire also issued first-quarter results on Saturday.
Net income increased more than sixfold to $35.5 billion, largely reflecting gains from Berkshire's stock holdings including Apple Inc , as well as higher income from investments and a performance rebound at the Geico car insurer.
Berkshire also said it bought back $4.4 billion of stock in the quarter and sold $13.3 billion of other company's stock, signaling greater confidence in its own shares.
Buffett said Berkshire's insurance underwriting performance will likely improve in 2023, and Berkshire will generate more income now that interest rates have risen.
He said it added $7 billion of Treasury bills in April, and recently bought another $3 billion yielding close to 6%.
WAITING ON LINE
Prior to the meeting, thousands of people lined up outside the arena before its 7 a.m. CDT (1200 GMT) opening, often to get seats close to the stage.
Many recognized it could be one of their last chances to see Buffett and Munger, given their advanced ages.
Vidhya Vivekananda, an investment associate from Vancouver, said she and her husband showed up 30 minutes earlier for their first meeting.
"It has been on our bucket list for a long time," she said. "We don't know how long it will be with Warren and Charlie before they pass it on."
Yongsheng Zhao, who lives in Shanghai and is a researcher for an asset management firm, said he showed up at midnight to attend his eighth Berkshire meeting. He brought his own chair.
"I am inspired by their passion and normalcy," he said, referring to Buffett and Munger. "I would hope they can go another five years, or more."
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jonathan Stempel in Omaha, Nebraska; additional reporting by Carolina Mandl and John McCrank in New York; Editing by Megan Davies, Ira Iosebashvili and Diane Craft) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) Keywords: BERKSHIRE BUFFETT/ (WRAPUP 1, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Speaking at Berkshire Hathaway Inc's annual meeting in downtown Omaha, Buffett also said it would have been "catastrophic" for regulators not to protect depositors of the recently seized Silicon Valley Bank. Yongsheng Zhao, who lives in Shanghai and is a researcher for an asset management firm, said he showed up at midnight to attend his eighth Berkshire meeting. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jonathan Stempel in Omaha, Nebraska; additional reporting by Carolina Mandl and John McCrank in New York; Editing by Megan Davies, Ira Iosebashvili and Diane Craft) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) Keywords: BERKSHIRE BUFFETT/ (WRAPUP 1, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jonathan Stempel OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett said on Saturday he could not imagine Washington allowing the U.S. to default on its debt by refusing to raise the country's debt ceiling, and risk disrupting the world's financial system by letting the world "go into turmoil." Buffett, 92, who is Berkshire's chairman and chief executive, and Charlie Munger, 99, a vice chairman, are answering five hours of shareholder questions at the meeting. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jonathan Stempel in Omaha, Nebraska; additional reporting by Carolina Mandl and John McCrank in New York; Editing by Megan Davies, Ira Iosebashvili and Diane Craft) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) Keywords: BERKSHIRE BUFFETT/ (WRAPUP 1, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Speaking at Berkshire Hathaway Inc's annual meeting in downtown Omaha, Buffett also said it would have been "catastrophic" for regulators not to protect depositors of the recently seized Silicon Valley Bank. Buffett, 92, who is Berkshire's chairman and chief executive, and Charlie Munger, 99, a vice chairman, are answering five hours of shareholder questions at the meeting. Buffett said Berkshire's insurance underwriting performance will likely improve in 2023, and Berkshire will generate more income now that interest rates have risen.
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Buffett, 92, who is Berkshire's chairman and chief executive, and Charlie Munger, 99, a vice chairman, are answering five hours of shareholder questions at the meeting. Unlike in 2022, the downtown Omaha arena hosting the meeting was filled to capacity. Berkshire also said it bought back $4.4 billion of stock in the quarter and sold $13.3 billion of other company's stock, signaling greater confidence in its own shares.
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15966.0
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2023-05-06 00:00:00 UTC
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Buffett and Munger Talk AI, Robotics, and More at Berkshire Hathaway's Annual Meeting
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AAPL
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https://www.nasdaq.com/articles/buffett-and-munger-talk-ai-robotics-and-more-at-berkshire-hathaways-annual-meeting
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nan
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nan
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Given Warren Buffett's love of good old-fashioned businesses that have proven themselves over decades, it wouldn't be surprising if Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) chairman and CEO were wary of the euphoria over artificial intelligence (AI).
But while Buffett and his longtime vice chairman, Charlie Munger, both expressed caution about these trends at the Berkshire Hathaway annual shareholders meeting on Saturday, they also had some favorable things to say. Here's what Buffett and Munger said about AI and robotics, as well as the role that AI and robotics could play in Berkshire's portfolio going forward.
Image source: The Motley Fool.
AI and robotics are changing business forever
Munger has been a longtime proponent of U.S. cooperation and investment in China. Munger's investment in Chinese tech giant Alibaba and his support of Chinese electric vehicle (EV) maker BYD illustrate the growth opportunities and value that Munger believes China offers investors. "Well, if you went into BYD's factories in China you would see robotics going in at an unbelievable rate," Munger said. "So, we're going to see a lot more robotics in the world. I am personally skeptical of some of the hype that has gone into artificial intelligence. I think old-fashioned intelligence works pretty well."
Put another way, Munger sees the impact that robotics is having on manufacturing but is wary of the risks investors are taking in AI stocks. This is a stark contrast to Munger's past comments on cryptocurrency, where he called it "rat poison" and saw it as both a bad investment and useless relative to the U.S. dollar.
While Buffett shares the same hesitance about getting lost in the AI hype, there was no denying his respect for AI and its possible effects on the economy.
"There won't be anything in AI that replaces the gene. ... I'll state that unqualifiedly. It can do amazing things," said Buffett during the meeting. "Bill Gates brought me out the latest ... maybe not the latest version, but one he thought maybe I could handle. ... And it did these remarkable things, but it couldn't tell jokes."
Buffett is a big believer in human ingenuity. He often quotes American heroes like Abraham Lincoln and marvels at their decision-making ability. Although AI has a great deal of utility, it can't replace human creativity.
Opening Pandora's box
While Munger was more interested in the business benefits of robotics and AI, Buffett seemed to indicate that it could be yet another technology that could do remarkable things but will permanently change the human condition.
When something can do all kinds of things, I get a little bit worried because I know we won't be able to uninvent it. And we did invent for very, very good reason the atom bomb in World War II. And it was enormously important that we did so. But is it good for the next 200 years of the world, that the ability to do so has been unleashed? We didn't have a choice. But when you start something... well, Einstein said after the atom bomb, he says, 'This has changed everything in the world except how men think.' And I would say the same thing may ... not the same thing. I don't mean that. But with AI, it can change everything in the world except how men think and behave. And that's a big step to take.
There is no denying that Pandora's box has been opened for AI. A UBS study noted that OpenAI's ChatGPT reached over 100 million monthly active users (MAU) in January 2023 after launching on Nov. 30, 2022, making it the fastest application to cross the 100 million MAU mark. It then passed 1 billion monthly page visits to its website in February.
AI is having a snowball effect on search engines and consumer products. Rapid AI adoption will lead to technological improvements, and meaningful benefits, but will also make the technology more powerful than ever before.
The role AI and robotics could play in Berkshire Hathaway's portfolio
Throughout the history of Berkshire Hathaway, Buffett has made a habit of never pretending to understand something. And for that reason, Berkshire is built around traditional businesses like railroads, utilities, and insurance companies. Until recently, the vast majority of Berkshire's public equity holdings were also these kinds of businesses. That is, until Buffett started giving more control to other members of his leadership team, who convinced him to invest in Apple (NASDAQ: AAPL).
As of March 31, Berkshire's Apple stake was worth a staggering $151 billion, making it roughly 46% of Berkshire's public equity portfolio. During the annual meeting, Buffett praised Apple for its relentless stock buybacks and called its products extraordinary. "Our criteria for Apple isn't any different than the other businesses we own -- it just happens to be a better business than any we own," Buffett said. Buffett said that although Berkshire has more money invested in BNSF Railway (which it owns fully) than Apple -- and that the railroad is a good business -- BNSF doesn't even come close to how good a business Apple is.
Buffett and his team are often known for being dyed-in-the-wool value investors who are hesitant to change. However, if there is a business that makes sense, Berkshire has shown it will deploy a sizable amount of capital toward a good idea.
The AI opportunity
When the iPhone changed the smartphone market in 2007, few investors, let alone Buffett himself, could have likely imagined that Apple would become Berkshire's largest public equity holding within a generation. Will the same be said for AI and robotics?
If there's one thing Buffett and his team love, it's a good business. If a company makes sense, is well-run, and has the fundamental traits Berkshire Hathaway looks for, then it could become a Buffett holding.
But don't expect Buffett to go chasing AI stocks to make a quick buck. Berkshire Hathaway could have bought Apple earlier on and made a far greater return. Instead, Berkshire waited for Apple to prove its dominance before it began loading up on the stock. The return has still been incredibly impressive.
For that reason, it would be surprising if Berkshire jumped into an AI or robotics stock in the next few years. But 5 to 10 years down the line, it would be equally unsurprising if one of the top five Berkshire Hathaway public equity holdings is an AI or robotics stock.
10 stocks we like better than Berkshire Hathaway
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Daniel Foelber has the following options: long January 2024 $145 calls on Alibaba Group and short January 2024 $150 calls on Alibaba Group. The Motley Fool has positions in and recommends Apple, BYD, 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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That is, until Buffett started giving more control to other members of his leadership team, who convinced him to invest in Apple (NASDAQ: AAPL). But while Buffett and his longtime vice chairman, Charlie Munger, both expressed caution about these trends at the Berkshire Hathaway annual shareholders meeting on Saturday, they also had some favorable things to say. Opening Pandora's box While Munger was more interested in the business benefits of robotics and AI, Buffett seemed to indicate that it could be yet another technology that could do remarkable things but will permanently change the human condition.
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That is, until Buffett started giving more control to other members of his leadership team, who convinced him to invest in Apple (NASDAQ: AAPL). But 5 to 10 years down the line, it would be equally unsurprising if one of the top five Berkshire Hathaway public equity holdings is an AI or robotics stock. See the 10 stocks *Stock Advisor returns as of May 1, 2023 Daniel Foelber has the following options: long January 2024 $145 calls on Alibaba Group and short January 2024 $150 calls on Alibaba Group.
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That is, until Buffett started giving more control to other members of his leadership team, who convinced him to invest in Apple (NASDAQ: AAPL). Given Warren Buffett's love of good old-fashioned businesses that have proven themselves over decades, it wouldn't be surprising if Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) chairman and CEO were wary of the euphoria over artificial intelligence (AI). Here's what Buffett and Munger said about AI and robotics, as well as the role that AI and robotics could play in Berkshire's portfolio going forward.
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That is, until Buffett started giving more control to other members of his leadership team, who convinced him to invest in Apple (NASDAQ: AAPL). Opening Pandora's box While Munger was more interested in the business benefits of robotics and AI, Buffett seemed to indicate that it could be yet another technology that could do remarkable things but will permanently change the human condition. Will the same be said for AI and robotics?
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15967.0
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2023-05-06 00:00:00 UTC
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3 Unstoppable Stocks to Buy in May
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AAPL
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https://www.nasdaq.com/articles/3-unstoppable-stocks-to-buy-in-may-0
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nan
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nan
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While no stock is immune from market swings, investors don't have to worry about short-term dips. Stocks ultimately follow the growth (or lack thereof) of the underlying business. What makes a company unstoppable is its ability to deliver sustainable growth in revenue and profits over the long term. That's what creates lasting wealth for shareholders.
Apple (NASDAQ: AAPL), MercadoLibre (NASDAQ: MELI), and Airbnb (NASDAQ: ABNB) are all showing signs of real staying power, which could lead to many years of magnificent returns. Let's see why these Motley Fool contributors believe these companies are unstoppable.
Invest in the products people can't live without
John Ballard (Apple): When trying to identify a company that could be unstoppable, you want to think of powerful brands that millions of people rely on every day. On that criteria alone, it's hard to not to like Apple, whose flagship product, the iPhone, is an indispensable device for many.
While sales could soften during a severe economic downturn, investors shouldn't be concerned about that, because Apple has a very loyal customer base. This is noted by its consistently high customer satisfaction scores and its growing installed base of active devices, now over 2 billion. Plus, the company introduced several new services in recent years that are driving consistent year-round revenue, like Apple TV+, Apple Card, Apple Pay, and more.
Apple will continue to drive repeat upgrades as it invests in artificial intelligence to make its products even better. This will create a stickier attachment between customers and their devices.
Investors can't go wrong investing in strong brands that generate massive cash flows. Over the last four quarters, Apple generated a whopping $97 billion in free cash flow on $387 billion of revenue. It's got more cash than it knows what to do with, which is why management continues to plow funds into share repurchases and quarterly dividend payments.
It's for these reasons Apple is an unstoppable stock to consider buying this month.
An e-commerce superstar
Jeremy Bowman (MercadoLibre): If you're looking for unstoppable stocks to buy this month, look no further than MercadoLibre, the Latin American e-commerce company that has been a top performer on the stock market over its history.
MercadoLibre just offered a reminder of why the stock is still a top buy in its first-quarter earnings report. Currency-neutral revenue in the quarter jumped 58% to $3 billion with total payment volume nearly doubling, up 96% to $37 billion. Gross merchandise volume, meanwhile, also surged 43% to $9.4 billion. MercadoLibre's strength across e-commerce and digital payments makes it unique, and the company has also built formidable businesses in logistics with Mercado Envios and lending with Mercado Credito.
Unlike its U.S-based e-commerce counterparts, MercadoLibre has continued to put up strong growth over the last year even as the pandemic tailwinds slowed, a sign the company continues to gain market share and is penetrating a large market that is still behind the U.S. in e-commerce adoption. MercadoLibre's profitability also ramped up as it gained scale in e-commerce and payments. Operating margin in the first quarter jumped from 6.2% in the quarter a year ago to 11.2%, giving it an operating income of $340 million.
As the company builds scale with its first-party e-commerce business and digital payments investments, it's been able to layer on higher-margin businesses like its third-party marketplace, its credits business, and advertising, following in the footsteps of Amazon.
The company doesn't provide guidance, but its growth momentum looks as strong as ever, and the company should continue to gain market share as it penetrates the massive Latin American market.
It's about time for travel to be disrupted
Jennifer Saibil (Airbnb): It's not surprising that the travel industry has been upended. For decades it was dominated by large hotel chains, whether of the luxury or budget variety, with a sprinkling of vacation rentals abounding once the internet made them more accessible. Airbnb took that concept to new heights, and its platform, which matches renters and hosts, ballooned into the premier travel site of its kind.
Growth is robust but is easing a bit. Triple-digit sales growth that marked a rebound from the pandemic has decelerated to double digits. Revenue rose 24% year over year in the 2022 fourth quarter to $1.9 billion. But the growth runway is very long. Airbnb offers an agile system that can adapt to changing consumer needs and trends, as opposed to legacy hotel companies that take tons of time and money to get new buildings up.
Travelers are using the platform to vacation in a different way, such as living in new areas. That's both as a vacation, where renters are exploring out-of-the-way areas that the big chains aren't accessing, and full-time living. Rentals of 28 days or more continue to be an important segment, remaining at 21% of bookings in the fourth quarter.
Airbnb has also become sustainably profitable. It posted net income for the past three consecutive quarters as well as an annual profit in 2022. It's also awash in cash, ending the year with $3.4 billion in free cash flow.
Airbnb made a bold move when it went public at the end of 2020 amid heavy sales declines. But investors scooped it up regardless, partially due to its incredible market opportunity, and partially due to the general initial public offering craze and robust bull market that was taking place at that time. The price skyrocketed, and it's now down 44% since its highs in 2021.
At this price, shares trade at a price-to-earnings ratio of 43. That's not incredibly cheap, but it's down to a more reasonable level. With Airbnb's opportunities, investors could consider that valuation low enough to purchase shares.
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 1, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in Airbnb and MercadoLibre. Jeremy Bowman has positions in Airbnb, Amazon.com, and MercadoLibre. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Airbnb, Amazon.com, Apple, and MercadoLibre. 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), MercadoLibre (NASDAQ: MELI), and Airbnb (NASDAQ: ABNB) are all showing signs of real staying power, which could lead to many years of magnificent returns. While sales could soften during a severe economic downturn, investors shouldn't be concerned about that, because Apple has a very loyal customer base. For decades it was dominated by large hotel chains, whether of the luxury or budget variety, with a sprinkling of vacation rentals abounding once the internet made them more accessible.
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Apple (NASDAQ: AAPL), MercadoLibre (NASDAQ: MELI), and Airbnb (NASDAQ: ABNB) are all showing signs of real staying power, which could lead to many years of magnificent returns. Invest in the products people can't live without John Ballard (Apple): When trying to identify a company that could be unstoppable, you want to think of powerful brands that millions of people rely on every day. Investors can't go wrong investing in strong brands that generate massive cash flows.
|
Apple (NASDAQ: AAPL), MercadoLibre (NASDAQ: MELI), and Airbnb (NASDAQ: ABNB) are all showing signs of real staying power, which could lead to many years of magnificent returns. An e-commerce superstar Jeremy Bowman (MercadoLibre): If you're looking for unstoppable stocks to buy this month, look no further than MercadoLibre, the Latin American e-commerce company that has been a top performer on the stock market over its history. Unlike its U.S-based e-commerce counterparts, MercadoLibre has continued to put up strong growth over the last year even as the pandemic tailwinds slowed, a sign the company continues to gain market share and is penetrating a large market that is still behind the U.S. in e-commerce adoption.
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Apple (NASDAQ: AAPL), MercadoLibre (NASDAQ: MELI), and Airbnb (NASDAQ: ABNB) are all showing signs of real staying power, which could lead to many years of magnificent returns. It's for these reasons Apple is an unstoppable stock to consider buying this month. An e-commerce superstar Jeremy Bowman (MercadoLibre): If you're looking for unstoppable stocks to buy this month, look no further than MercadoLibre, the Latin American e-commerce company that has been a top performer on the stock market over its history.
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15968.0
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2023-05-06 00:00:00 UTC
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Buffett's Berkshire posts $35.5 bln profit, buys back more stock
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-posts-%2435.5-bln-profit-buys-back-more-stock
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nan
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nan
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(Adds financial results throughout, reduced Chevron stake, improved Geico results)
By Jonathan Stempel
OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett's Berkshire Hathaway Inc posted a $35.5 billion first-quarter profit on Saturday, reflecting gains from stocks such as Apple Inc, while higher investment income and a rebound at car insurer Geico bolstered operating results.
Berkshire also sped up repurchases of its own stock, buying back $4.4 billion, while paring its investments in other stocks such as Chevron Corp , which is still a major holding.
Net income equaled $24,377 per Class A share and rose from $5.58 billion, or $3,784 per share, a year earlier. That in part reflected a 27% jump in Apple's stock price, leaving Berkshire with a $151 billion stake in the iPhone maker.
Berkshire released results ahead of its annual shareholder meeting in Omaha, part of a weekend that draws tens of thousands of people to the city.
An accounting rule requires Berkshire to report unrealized gains and losses with net results, and Buffett urges investors to ignore the resulting volatility.
Quarterly operating profit increased 13% to $8.07 billion, or about $5,561 per Class A share, from $7.16 billion.
Those results benefited from Geico snapping a six-quarter string of underwriting losses, and a 68% increase in the income Berkshire's insurance units generate from investments.
Berkshire's cash hoard grew $2 billion in the quarter to $130.6 billion as the company sold a net $10.4 billion of stocks. Its stake in Chevron fell 28% to $21.6 billion, though the oil company's stock price dropped just 9%.
The stock sales more than offset the $8.2 billion Berkshire spent to boost its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%, leaving the founding Haslam family with 20%.
Buffett, 92, has run Berkshire since 1965, transforming it from a struggling textile company into a conglomerate with dozens of businesses including the BNSF railroad, Berkshire Hathaway Energy, and manufacturing and retail units including See's Candies and Dairy Queen ice cream.
Berkshire's Class A shares have risen 4.9% this year, trailing the Standard & Poor's 500's 7.7% gain. The index lagged Berkshire by 23.4 percentage points in 2022, excluding dividends. (Reporting by Jonathan Stempel in Omaha, Nebraska; Editing by Alexander Smith) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) Keywords: BERKSHIRE RESULTS/ (UPDATE 1, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire released results ahead of its annual shareholder meeting in Omaha, part of a weekend that draws tens of thousands of people to the city. Those results benefited from Geico snapping a six-quarter string of underwriting losses, and a 68% increase in the income Berkshire's insurance units generate from investments. The stock sales more than offset the $8.2 billion Berkshire spent to boost its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%, leaving the founding Haslam family with 20%.
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(Adds financial results throughout, reduced Chevron stake, improved Geico results) By Jonathan Stempel OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett's Berkshire Hathaway Inc posted a $35.5 billion first-quarter profit on Saturday, reflecting gains from stocks such as Apple Inc, while higher investment income and a rebound at car insurer Geico bolstered operating results. That in part reflected a 27% jump in Apple's stock price, leaving Berkshire with a $151 billion stake in the iPhone maker. Quarterly operating profit increased 13% to $8.07 billion, or about $5,561 per Class A share, from $7.16 billion.
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(Adds financial results throughout, reduced Chevron stake, improved Geico results) By Jonathan Stempel OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett's Berkshire Hathaway Inc posted a $35.5 billion first-quarter profit on Saturday, reflecting gains from stocks such as Apple Inc, while higher investment income and a rebound at car insurer Geico bolstered operating results. Berkshire also sped up repurchases of its own stock, buying back $4.4 billion, while paring its investments in other stocks such as Chevron Corp , which is still a major holding. Berkshire's cash hoard grew $2 billion in the quarter to $130.6 billion as the company sold a net $10.4 billion of stocks.
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(Adds financial results throughout, reduced Chevron stake, improved Geico results) By Jonathan Stempel OMAHA, Nebraska, May 6 (Reuters) - Warren Buffett's Berkshire Hathaway Inc posted a $35.5 billion first-quarter profit on Saturday, reflecting gains from stocks such as Apple Inc, while higher investment income and a rebound at car insurer Geico bolstered operating results. Quarterly operating profit increased 13% to $8.07 billion, or about $5,561 per Class A share, from $7.16 billion. Its stake in Chevron fell 28% to $21.6 billion, though the oil company's stock price dropped just 9%.
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15969.0
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2023-05-05 00:00:00 UTC
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After Hours Most Active for May 5, 2023 : AAPL, QQQ, MSFT, FOLD, AMZN, TSLA, CCL, MS, NI, RRC, EQT, SLCA
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-5-2023-%3A-aapl-qqq-msft-fold-amzn-tsla-ccl-ms-ni-rrc-eqt
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.66 to 13,251.47. The total After hours volume is currently 83,646,329 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is -0.13 at $173.44, with 3,557,335 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.15 at $322.74, with 3,171,518 shares traded. This represents a 26.93% increase from its 52 Week Low.
Microsoft Corporation (MSFT) is +0.21 at $310.86, with 2,166,529 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.
Amicus Therapeutics, Inc. (FOLD) is +0.025 at $12.15, with 2,079,520 shares traded.FOLD is scheduled to provide an earnings report on 5/10/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is -0.13 per share, which represents a -30 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is -0.195 at $105.46, with 1,969,683 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.33. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Tesla, Inc. (TSLA) is -0.09 at $169.97, with 1,846,324 shares traded. TSLA's current last sale is 84.99% of the target price of $200.
Carnival Corporation (CCL) is unchanged at $10.01, with 1,301,261 shares traded. CCL's current last sale is 91% of the target price of $11.
Morgan Stanley (MS) is unchanged at $84.88, with 1,165,204 shares traded. As reported by Zacks, the current mean recommendation for MS is in the "buy range".
NiSource, Inc (NI) is unchanged at $28.54, with 1,165,040 shares traded. As reported by Zacks, the current mean recommendation for NI is in the "strong buy range".
Range Resources Corporation (RRC) is -0.2 at $25.10, with 1,080,308 shares traded. RRC's current last sale is 77.23% of the target price of $32.5.
EQT Corporation (EQT) is +0.02 at $32.37, with 1,046,772 shares traded. As reported by Zacks, the current mean recommendation for EQT is in the "buy range".
U.S. Silica Holdings, Inc. (SLCA) is unchanged at $12.48, with 1,000,852 shares traded. As reported by Zacks, the current mean recommendation for SLCA 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 -0.13 at $173.44, with 3,557,335 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 11 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.13 at $173.44, with 3,557,335 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 11 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.13 at $173.44, with 3,557,335 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,646,329 shares traded.
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Apple Inc. (AAPL) is -0.13 at $173.44, with 3,557,335 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 11 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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15970.0
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2023-05-05 00:00:00 UTC
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US STOCKS-Dow has best day since Jan. 6 after Apple rally, jobs data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-has-best-day-since-jan.-6-after-apple-rally-jobs-data
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nan
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nan
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By Caroline Valetkevitch
NEW YORK May 5 (Reuters) - U.S. stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market.
Adding to the bullish momentum, regional bank shares reboundedfrom declines tied to the collapse of First Republic Bank. Analysts upgraded a number of lenders they said were oversold.
PacWest Bancorp PACW.O rallied 81.7% and Western Alliance Bancorp WAL.Njumped 49.2%, while the KBW regional bank index .KRXadvanced 4.7%.
Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. The iPhone maker's shares hit their highest level in about nine months, and the stock ended up 4.7% in its biggest daily percentage gain since November.
The stock was the biggest positive influence on all three major U.S. stock indexes.
The U.S. Labor Department report showed job growth accelerated in April and wage gains increased solidly, suggesting the labor market has stayed strong despite recent interest rate hikes from the Federal Reserve.
With the jobs report, "it's about the state of the U.S. economy, and what we saw today suggests it's in a better position than previously expected," said Kristina Hooper, chiefglobal marketStrategist at Invesco in New York.
Investors have been worried that the rate hikes may eventually push the economy into recession.
The Dow Jones Industrial Average .DJI rose 546.64 points, or 1.65%, to 33,674.38, the S&P 500 .SPX gained 75.03 points, or 1.85%, to 4,136.25 and the Nasdaq Composite .IXIC added 269.02 points, or 2.25%, to 12,235.41.
The Cboe Volatility index .VIX registered its biggest one-day decline since March 16.
The Dow and S&P 500 still registered losses for the week, however, while the Nasdaq ended with a slight gain for the week.
On Wednesday, the U.S. central bank raised rates by 25 basis points as expected, but Fed Chair Jerome Powell noted it was too early to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
Apple drove gains in other tech shares, but all 11 major S&P sectors were higher on the day.
The estimated decline in first-quarter S&P 500 earnings has been getting smaller since the start of the reporting season and is now at just 0.7% year-over-year, Refinitiv data showed on Friday.
Volume on U.S. exchanges was 10.57 billion shares, compared with the 10.70 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 4.95-to-1 ratio; on Nasdaq, a 2.75-to-1 ratio favored advancers.
The S&P 500 posted 13 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 87 new highs and 104 new lows.
U.S. earnings recession U.S. earnings recessionhttps://tmsnrt.rs/3Hd1frg
(Additional reporting by Ankika Biswas and Sruthi Shankar in Bengaluru and Sinead Carew in New York; Editing by Subhranshu Sahu, Shounak Dasgupta and David Gregorio)
((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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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market. With the jobs report, "it's about the state of the U.S. economy, and what we saw today suggests it's in a better position than previously expected," said Kristina Hooper, chiefglobal marketStrategist at Invesco in New York.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market. The Dow Jones Industrial Average .DJI rose 546.64 points, or 1.65%, to 33,674.38, the S&P 500 .SPX gained 75.03 points, or 1.85%, to 4,136.25 and the Nasdaq Composite .IXIC added 269.02 points, or 2.25%, to 12,235.41.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market. The Dow Jones Industrial Average .DJI rose 546.64 points, or 1.65%, to 33,674.38, the S&P 500 .SPX gained 75.03 points, or 1.85%, to 4,136.25 and the Nasdaq Composite .IXIC added 269.02 points, or 2.25%, to 12,235.41.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market. The stock was the biggest positive influence on all three major U.S. stock indexes.
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15971.0
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2023-05-05 00:00:00 UTC
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GLOBAL MARKETS-Stocks rally while Treasuries fall as US jobs data brightens outlook
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-rally-while-treasuries-fall-as-us-jobs-data-brightens-outlook
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nan
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nan
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By Sinéad Carew and Naomi Rovnick
NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes.
The non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March and exceeding expectations for 180,000.
U.S. Treasury yields rose after the report while the dollar was down very slightly against a basket of major currencies.
Oil prices jumped on signs of economic strength, but registered their third weekly decline in a row. Shares in U.S. banks also erased some losses after a rough week following the collapse of a third major bank.
Since Fed Chair Jerome Powell signaled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group's FedWatch tool. After Friday's data, the probability for a July cut declined.
But still Friday's trading suggested a focus on signs of economic strength rather than on the prospects for tighter policy, which often come with stronger than expected data.
"The pause button has likely been pressed and now it's about the state of the U.S. economy and what we saw today suggests it's in a better position that previously expected," said Kristina Hooper, chiefglobal marketstrategist at Invesco, New York. "The caveats are that one data point does not a picture paint and, to a large extent, employment is a lagging indicator for the state of the economy."
But while decent growth may not lead to more tightening in the short run Sameer Samana, seniorglobal marketstrategist at Wells Fargo Investment Institute in Charlotte, North Carolina, disagrees with the market's "Goldilocks scenario" where growth slows without a hard recession and the Fed can ease policy quickly.
"If the Fed is cutting rates aggressively in the back half of the year, something has gone very wrong economically," he said adding that, for now, the market has a short term focus.
MSCI's gauge of stocks across the globe .MIWD00000PUS was gaining 1.48% and on track for its biggest one-day percentage gain since Jan. 6. However, for the week it still showed a small decline.
The Dow Jones Industrial Average .DJI rose 546.64 points, or 1.65%, to 33,674.38, the S&P 500 .SPX gained 75.03 points, or 1.85%, to 4,136.25 and the Nasdaq Composite .IXIC added 269.02 points, or 2.25%, to 12,235.41.
The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors.
Investors also paused their exit from U.S. banks pushing the KBW regional bank index .KRXup 4.7%. However the regional index was still down almost 8% for the week on sharp declines in the previous four sessions after the weekend collapse of First Republic Bank.
In currencies, the dollar index =USD fell 0.059%, with the euro EUR= up 0.05% to $1.1016. The Japanese yen weakened 0.39% versus the greenback at 134.84 per dollar, while sterling GBP= was last trading at $1.2633, up 0.49% on the day.
In Treasuries, benchmark 10-year notes US10YT=RR were up 7.9 basis points to 3.431%, from 3.352% late on Thursday. The 30-year bond US30YT=RR was last up 2.4 basis points to yield 3.7464%. The 2-year note US2YT=RR was last was up 18.7 basis points to yield 3.9139%.
Spot gold XAU= dropped 1.7% to $2,017.03 an ounce. U.S. gold futures GCc1 fell 1.76% to $2,017.40 an ounce.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banarjee in Singapore. Editing by Jacqueline Wong, Robert Birsel, Keith Weir, Alexander Smith, David Gregorio and Diane Craft)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and 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 biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. Since Fed Chair Jerome Powell signaled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group's FedWatch tool.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. The non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March and exceeding expectations for 180,000.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. Since Fed Chair Jerome Powell signaled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group's FedWatch tool.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. But still Friday's trading suggested a focus on signs of economic strength rather than on the prospects for tighter policy, which often come with stronger than expected data. However, for the week it still showed a small decline.
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15972.0
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2023-05-05 00:00:00 UTC
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Needham Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/needham-maintains-apple-aapl-buy-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Needham maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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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Fintel reports that on May 5, 2023, Needham maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Needham maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Needham maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Needham maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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15973.0
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2023-05-05 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): Still Enticing after Earnings Rally
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-still-enticing-after-earnings-rally
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nan
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nan
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Investors can breathe a sigh of relief, as Apple's (NASDAQ:AAPL) results were good this earnings season. I won't go so far as to say that Apple's earnings report was perfect in every way. However, I am bullish on AAPL stock as the company sold plenty of smartphones during a tough time for the economy. Additionally, Apple is capturing the hearts of analysts and is making headway in India.
Apple is famous for providing the latest and greatest in tech gadgets, including the always-popular iPhone. An argument could be made that Apple's quarterly earnings reports are the most important ones, inside and outside of the technology sector.
In other words, if Apple is doing well, there are larger implications for the U.S. economy as a whole. While some days you'll find a red Apple, today the Apple is green and delicious, and it's likely not too late for investors to take a bite.
Slowing Sales is a Sticking Point for Apple
To be completely fair and balanced, I'll start off with the bearish argument concerning AAPL stock. The skeptics might claim that the stock is too close to its 52-week high to be buyable. However, as we'll discuss, Apple stock could continue to move higher if the company is growing. On the other hand, investors might wonder whether Apple actually is growing, since the company's recently reported sales indicated a year-over-year slowdown.
Here's the breakdown. Apple's second-quarter 2023 total net sales amounted to $94.836 billion, which is less than the $97.278 billion from the comparable year-earlier quarter. This isn't a horrendous slowdown, mind you. Still, some financial traders are spoiled nowadays and they expect Apple to knock it out of the park every time, which isn't realistic.
Before you get bent out of shape because Apple's earnings report wasn't 100% perfect, consider why Apple's total sales declined slightly. It certainly wasn't because of the iPhone. In actuality, Apple's iPhone sales increased moderately on a year-over-year basis, to $51.334 billion -- not too shabby, as this took place during a time of economic uncertainty.
The culprits, it seems, were Apple's old-school gadgets that Zoomers probably don't use much nowadays. Mac sales were down substantially, while iPad sales fell moderately. Since young people use their smartphones for practically everything nowadays, it's understandable that these legacy technologies would fall by the wayside.
India Could be Apple's Next Frontier Market
What will prompt the next leg up for Apple? Global iPhone sales will be pivotal, of course, but investors should look to India to see where Apple might expand the fastest over the coming quarters.
Apple's Q2-2023 EPS came in at $1.52, beating analysts’ consensus estimate of $1.43 per share. It might be tempting to assume that Apple's excellent quarter should be attributed to the iPhone's popularity in the U.S. and other wealthy markets. Emerging markets also played a role, though, and investors should expect India to take a front seat in Apple's growth story. Apple's CEO Tim Cook explained, "There are a lot of people coming into the middle class, and I really feel that India is at a tipping point, and it's great to be there."
This ongoing story is really only getting started, as Apple opened two retail stores in India in April and Cook assured that the company plans to expand its operations in the country. Investors should be patient, though. While D.A. Davidson analyst Tom Forte expects Apple to "mirror its strategy for China for India (from a supply chain and consumer sales standpoint)," he believes "it will take a long time" for Apple "to generate 5%-10% of its sales from the country."
Is AAPL Stock a Buy, According to Analysts?
There's no doubt about it: Apple is still a darling of the analyst community. AAPL has a Strong Buy consensus rating based on 24 Buys, three Holds, and one Sell rating. The average Apple stock price target is $181.51, implying 4.5% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most profitable analyst covering the stock (on a one-year timeframe) is Krish Sankar of Cowen & Co., with an average return of 52.18% per rating. See below.
Conclusion: Should You Consider Apple Stock?
At the very least, keep an eye on Apple as there's a vast market in the nation of India for the company to capture. Also, I wouldn't worry too much about Apple's slowing sales; this shouldn't overshadow the company's excellent EPS result.
All in all, the bullish thesis for AAPL stock is strong, and analysts are generally optimistic. So, unless the recent rally in the stock really bothers you, I believe it's a great time to consider a position in Apple stock.
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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Investors can breathe a sigh of relief, as Apple's (NASDAQ:AAPL) results were good this earnings season. However, I am bullish on AAPL stock as the company sold plenty of smartphones during a tough time for the economy. Slowing Sales is a Sticking Point for Apple To be completely fair and balanced, I'll start off with the bearish argument concerning AAPL stock.
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Investors can breathe a sigh of relief, as Apple's (NASDAQ:AAPL) results were good this earnings season. However, I am bullish on AAPL stock as the company sold plenty of smartphones during a tough time for the economy. Slowing Sales is a Sticking Point for Apple To be completely fair and balanced, I'll start off with the bearish argument concerning AAPL stock.
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Investors can breathe a sigh of relief, as Apple's (NASDAQ:AAPL) results were good this earnings season. However, I am bullish on AAPL stock as the company sold plenty of smartphones during a tough time for the economy. Slowing Sales is a Sticking Point for Apple To be completely fair and balanced, I'll start off with the bearish argument concerning AAPL stock.
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Is AAPL Stock a Buy, According to Analysts? Investors can breathe a sigh of relief, as Apple's (NASDAQ:AAPL) results were good this earnings season. However, I am bullish on AAPL stock as the company sold plenty of smartphones during a tough time for the economy.
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15974.0
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2023-05-05 00:00:00 UTC
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Technology Sector Update for 05/05/2023: MSI, AAPL, LPSN, META
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-05-2023%3A-msi-aapl-lpsn-meta
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nan
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nan
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Tech stocks gained Friday with the Technology Select Sector SPDR Fund (XLK) up 2.5% and the Philadelphia Semiconductor index advancing 2.3%.
In company news, Motorola Solutions (MSI) said it has won a five-year contract from Portugal's Internal Administration Ministry to maintain and improve the country's public safety communications network. The company's shares fell 3.1% at the close.
Apple (AAPL) shares jumped 4.7% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend.
LivePerson (LPSN) shareholder Starboard Value on Friday called for a change in company leadership, saying the performance of the software group's financials and stock continue to "deteriorate rapidly." LivePerson shares rose 15%.
Meta Platforms (META) hired employees who previously worked on artificial intelligence-specific networking technology at British chip company Graphcore's office in Oslo, Reuters reported Friday, citing a company spokesperson. Meta shares fell 0.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) shares jumped 4.7% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks gained Friday with the Technology Select Sector SPDR Fund (XLK) up 2.5% and the Philadelphia Semiconductor index advancing 2.3%. In company news, Motorola Solutions (MSI) said it has won a five-year contract from Portugal's Internal Administration Ministry to maintain and improve the country's public safety communications network.
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Apple (AAPL) shares jumped 4.7% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks gained Friday with the Technology Select Sector SPDR Fund (XLK) up 2.5% and the Philadelphia Semiconductor index advancing 2.3%. The company's shares fell 3.1% at the close.
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Apple (AAPL) shares jumped 4.7% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. LivePerson (LPSN) shareholder Starboard Value on Friday called for a change in company leadership, saying the performance of the software group's financials and stock continue to "deteriorate rapidly." Meta Platforms (META) hired employees who previously worked on artificial intelligence-specific networking technology at British chip company Graphcore's office in Oslo, Reuters reported Friday, citing a company spokesperson.
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Apple (AAPL) shares jumped 4.7% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks gained Friday with the Technology Select Sector SPDR Fund (XLK) up 2.5% and the Philadelphia Semiconductor index advancing 2.3%. LivePerson shares rose 15%.
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15975.0
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2023-05-05 00:00:00 UTC
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US STOCKS-Wall St ends up sharply with Apple; jobs data suggests strength
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-up-sharply-with-apple-jobs-data-suggests-strength
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nan
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nan
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By Caroline Valetkevitch
NEW YORK May 5 (Reuters) - U.S. stocks closed sharply higher on Friday, with shares of Apple Inc rallying after upbeat results, while U.S. jobs data pointed to a resilient labor market.
Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. The iPhone maker's shares were the biggest positive influence on all three major U.S. stock indexes.
The U.S. Labor Department report showed job growth accelerated in April and wage gains increased solidly, suggesting the labor market has stayed strong despite recent interest rate hikes from the Federal Reserve.
With the jobs report, "it's about the state of the U.S. economy, and what we saw today suggests it's in a better position than previously expected," said Kristina Hooper, chiefglobal marketStrategist at Invesco in New York.
Investors have been worried that the rate hikes may eventually push the economy into recession.
Regional bank shares also rebounded after recent weakness tied to the collapse of First Republic Bank. PacWest Bancorp PACW.O rallied along with Western Alliance Bancorp. WAL.N
According to preliminary data, the S&P 500 .SPX gained 74.55 points, or 1.84%, to end at 4,135.77 points, while the Nasdaq Composite .IXIC gained 264.67 points, or 2.21%, to 12,231.07. The Dow Jones Industrial Average .DJI rose 541.01 points, or 1.63%, to 33,668.75.
On Wednesday, the U.S. central bank raised rates by 25 basis points as expected, but Fed Chair Jerome Powell noted it was too early to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
Apple drove gains in other tech shares, but all 11 major S&P sectors were higher on the day.
The estimated decline in first-quarter S&P 500 earnings has been getting smaller since the start of the reporting season and is now at just 0.7% year-over-year, Refinitiv data showed on Friday.
(Additional reporting by Ankika Biswas and Sruthi Shankar in Bengaluru and Sinead Carew in New York; Editing by Subhranshu Sahu, Shounak Dasgupta and David Gregorio)
((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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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks closed sharply higher on Friday, with shares of Apple Inc rallying after upbeat results, while U.S. jobs data pointed to a resilient labor market. With the jobs report, "it's about the state of the U.S. economy, and what we saw today suggests it's in a better position than previously expected," said Kristina Hooper, chiefglobal marketStrategist at Invesco in New York.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks closed sharply higher on Friday, with shares of Apple Inc rallying after upbeat results, while U.S. jobs data pointed to a resilient labor market. The U.S. Labor Department report showed job growth accelerated in April and wage gains increased solidly, suggesting the labor market has stayed strong despite recent interest rate hikes from the Federal Reserve.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. By Caroline Valetkevitch NEW YORK May 5 (Reuters) - U.S. stocks closed sharply higher on Friday, with shares of Apple Inc rallying after upbeat results, while U.S. jobs data pointed to a resilient labor market. The U.S. Labor Department report showed job growth accelerated in April and wage gains increased solidly, suggesting the labor market has stayed strong despite recent interest rate hikes from the Federal Reserve.
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Apple's AAPL.O quarterly resultsalso cheered investors worried about a potential recession. Investors have been worried that the rate hikes may eventually push the economy into recession. WAL.N According to preliminary data, the S&P 500 .SPX gained 74.55 points, or 1.84%, to end at 4,135.77 points, while the Nasdaq Composite .IXIC gained 264.67 points, or 2.21%, to 12,231.07.
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15976.0
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2023-05-05 00:00:00 UTC
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Dividend Watch: 3 Companies Boosting Payouts
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AAPL
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https://www.nasdaq.com/articles/dividend-watch%3A-3-companies-boosting-payouts
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nan
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nan
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Several companies have been delivering positive news to shareholders lately, such as dividend increases.
When a company opts to raise its dividend, it’s an indication of confidence in its current standing and future prospects. In addition, it reflects the company’s commitment to returning value to shareholders, undoubtedly encouraging.
Three companies – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have all recently declared a dividend hike. Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those with an appetite for income, let’s take a closer look at how each company currently stacks up.
Discover Financial Services
Discover raised its quarterly cash dividend by 17% to $0.70 per share following Q1 results, payable on June 8th, 2023. The company posted somewhat-mixed results, exceeding revenue expectations by 2.6% but falling short of the Zacks Consensus EPS Estimate by a fair margin.
As we can see in the chart below, the company has had little issue increasingly rewarding its shareholders.
Image Source: Zacks Investment Research
DFS shares aren’t valuation stretched, with the current 6.8X forward earnings multiple sitting nicely beneath the 2022 high of 9.6X and the Zacks Finance sector average. The company presently sports a Style Score of “A” for value.
Image Source: Zacks Investment Research
And to top it off, the company’s cash-generating abilities are solid; DFS reported free cash flow of $1.7 billion in its latest release, improving modestly from the year-ago quarter.
Image Source: Zacks Investment Research
Apple
Apple’s quarterly results stole the show after yesterday’s close, with the company delivering a positive 5.6% EPS surprise and reporting revenue nearly 2% above expectations. The company also announced a 4% increase to its quarterly cash dividend, payable on May 18th.
The dividend increases from Apple have added up over the years, and this is on top of the unbelievable price return that shares have provided.
Image Source: Zacks Investment Research
Apple shares are currently a bit expensive, trading at a 27.6X forward earnings multiple, well above the 24.3X five-year median. Still, investors have had little issue forking up the premium for Apple shares, as they’ve quickly become a safe haven in a somewhat-cloudy economic outlook.
Image Source: Zacks Investment Research
Costco Wholesale
On April 19th, Costco revealed that its Board of Directors declared a 13% increase to its quarterly dividend, bringing the quarterly payout to $1.02 per share. Impressively, the company’s payout has increased by more than 11% over the last five years.
The company is forecasted to grow steadily, with earnings forecasted to climb nearly 10% in its current fiscal year (FY23) and a further 8% in FY24. The projected earnings improvement comes on top of forecasted Y/Y revenue growth of 6.5% in FY23 and 5.5% in FY24.
Image Source: Zacks Investment Research
Like DFS, Costco’s cash-generating abilities were displayed in its latest quarterly results; free cash flow totaled $2.3 billion, reflecting a sizable jump from the year-ago period.
Image Source: Zacks Investment Research
Bottom Line
Dividend increases are a positive announcement that shareholders can receive as it reflects the current state of business and future expectations. After all, if a company is struggling, why would it raise its dividend?
And all three companies above – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have recently declared a dividend hike.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Discover Financial Services (DFS) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : 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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Three companies – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have all recently declared a dividend hike. And all three companies above – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have recently declared a dividend hike. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Discover Financial Services (DFS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Three companies – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have all recently declared a dividend hike. And all three companies above – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have recently declared a dividend hike. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Discover Financial Services (DFS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Discover Financial Services (DFS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. Three companies – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have all recently declared a dividend hike. And all three companies above – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have recently declared a dividend hike.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Discover Financial Services (DFS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. Three companies – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have all recently declared a dividend hike. And all three companies above – Apple AAPL, Discover Financial Services DFS, and Costco Wholesale COST – have recently declared a dividend hike.
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15977.0
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2023-05-05 00:00:00 UTC
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Friday's ETF with Unusual Volume: PFM
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AAPL
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-pfm-0
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nan
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nan
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The Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Friday, with over 372,000 shares traded versus three month average volume of about 43,000. Shares of PFM were up about 1.4% on the day.
Components of that ETF with the highest volume on Friday were Apple, trading up about 5% with over 80.0 million shares changing hands so far this session, and Keycorp, up about 9.9% on volume of over 22.7 million shares. Zions is the component faring the best Friday, up by about 18.7% on the day, while Telephone and Data Systems is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 21.4%.
VIDEO: Friday's ETF with Unusual Volume: PFM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Friday, with over 372,000 shares traded versus three month average volume of about 43,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 5% with over 80.0 million shares changing hands so far this session, and Keycorp, up about 9.9% on volume of over 22.7 million shares. Zions is the component faring the best Friday, up by about 18.7% on the day, while Telephone and Data Systems is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 21.4%.
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The Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Friday, with over 372,000 shares traded versus three month average volume of about 43,000. Zions is the component faring the best Friday, up by about 18.7% on the day, while Telephone and Data Systems is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 21.4%. VIDEO: Friday's ETF with Unusual Volume: PFM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Friday, with over 372,000 shares traded versus three month average volume of about 43,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 5% with over 80.0 million shares changing hands so far this session, and Keycorp, up about 9.9% on volume of over 22.7 million shares. Zions is the component faring the best Friday, up by about 18.7% on the day, while Telephone and Data Systems is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 21.4%.
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Components of that ETF with the highest volume on Friday were Apple, trading up about 5% with over 80.0 million shares changing hands so far this session, and Keycorp, up about 9.9% on volume of over 22.7 million shares. Zions is the component faring the best Friday, up by about 18.7% on the day, while Telephone and Data Systems is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 21.4%. VIDEO: Friday's ETF with Unusual Volume: PFM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15978.0
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2023-05-05 00:00:00 UTC
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Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE
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AAPL
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https://www.nasdaq.com/articles/daily-dividend-report%3A-mchpaapldukitwnke
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nan
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nan
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Microchip Technology, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 38.3 cents per share. The dividend is payable on June 5, 2023, to stockholders of record on May 22, 2023. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 77 times since its inception. "Microchip's financial performance in the March 2023 quarter was very strong, resulting in solid cash generation and further debt reduction and share repurchases," said Steve Sanghi, Executive Chair. "Today, our Board of Directors approved a year-over-year increase in our dividend of 38.8% to 38.3 cents per share, up from our May 2022 dividend of 27.6 cents per share. This represents 83 consecutive quarters of dividend payments for Microchip and reflects confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning capital to our stockholders."
Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock, an increase of 4 percent. The dividend is payable on May 18, 2023 to shareholders of record as of the close of business on May 15, 2023. The board of directors has also authorized an additional program to repurchase up to $90 billion of the Company's common stock.
Duke Energy today declared a quarterly cash dividend on its common stock of $1.005 per share. This dividend is payable on June 16, 2023, to shareholders of record at the close of business on May 12, 2023. Duke Energy has paid a cash dividend on its common stock for 97 consecutive years.
The Board of Directors of Illinois Tool Works declared a dividend on the company's common stock of $1.31 per share for the second quarter of 2023. The dividend equates to $5.24 per share on a full-year basis. The dividend will be paid on July 13, 2023 to shareholders of record as of June 30, 2023.
NIKE announced today that its Board of Directors has declared a quarterly cash dividend of $0.340 per share on the Company's outstanding Class A and Class B Common Stock payable on July 5, 2023, to shareholders of record at the close of business June 5, 2023.
VIDEO: Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Microchip Technology, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 38.3 cents per share. "Microchip's financial performance in the March 2023 quarter was very strong, resulting in solid cash generation and further debt reduction and share repurchases," said Steve Sanghi, Executive Chair.
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VIDEO: Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Microchip Technology, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 38.3 cents per share. Duke Energy today declared a quarterly cash dividend on its common stock of $1.005 per share.
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VIDEO: Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Microchip Technology, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 38.3 cents per share. "Today, our Board of Directors approved a year-over-year increase in our dividend of 38.8% to 38.3 cents per share, up from our May 2022 dividend of 27.6 cents per share.
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VIDEO: Daily Dividend Report: MCHP,AAPL,DUK,ITW,NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock, an increase of 4 percent. The Board of Directors of Illinois Tool Works declared a dividend on the company's common stock of $1.31 per share for the second quarter of 2023.
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15979.0
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2023-05-05 00:00:00 UTC
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Technology Sector Update for 05/05/2023: AAPL, META, LPSN
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-05-05-2023%3A-aapl-meta-lpsn
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nan
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nan
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Tech stocks were higher Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.3% and the Philadelphia Semiconductor index advancing nearly 2%.
In company news, Apple (AAPL) shares were up 4.9% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend.
LivePerson (LPSN) shareholder Starboard Value on Friday called for a change in company leadership, saying the performance of the software group's financials and stock continue to "deteriorate rapidly." LivePerson shares were up more than 17%.
Meta Platforms (META) hired employees who previously worked on artificial intelligence-specific networking technology at British chip company Graphcore's office in Oslo, Reuters reported Friday, citing a company spokesperson. Meta shares were up 0.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) shares were up 4.9% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks were higher Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.3% and the Philadelphia Semiconductor index advancing nearly 2%. LivePerson (LPSN) shareholder Starboard Value on Friday called for a change in company leadership, saying the performance of the software group's financials and stock continue to "deteriorate rapidly."
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In company news, Apple (AAPL) shares were up 4.9% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks were higher Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.3% and the Philadelphia Semiconductor index advancing nearly 2%. LivePerson shares were up more than 17%.
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In company news, Apple (AAPL) shares were up 4.9% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. LivePerson (LPSN) shareholder Starboard Value on Friday called for a change in company leadership, saying the performance of the software group's financials and stock continue to "deteriorate rapidly." Meta Platforms (META) hired employees who previously worked on artificial intelligence-specific networking technology at British chip company Graphcore's office in Oslo, Reuters reported Friday, citing a company spokesperson.
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In company news, Apple (AAPL) shares were up 4.9% after the tech giant's fiscal Q2 results topped market expectations and it increased its dividend. Tech stocks were higher Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.3% and the Philadelphia Semiconductor index advancing nearly 2%. LivePerson shares were up more than 17%.
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15980.0
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2023-05-05 00:00:00 UTC
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Increase Mega-Caps Exposure With XLG
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AAPL
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https://www.nasdaq.com/articles/increase-mega-caps-exposure-with-xlg
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nan
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nan
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Investors are adding to their mega-caps exposure following strong first quarter earnings reports and a rosier economic outlook.
Apple Inc. (AAPL) was the latest big tech company to report earnings that beat Wall Street’s estimates, reporting an all-time record in services and a March-quarter record for the iPhone, sending shares of the company higher on Friday.
"The U.S. stock market has been led recently by mega-cap companies benefiting from their scale and ability to grow fast,” said Todd Rosenbluth, VettaFi's head of research. “Apple was just the latest company to report stronger than expected earnings this week."
See more: "Invesco Multi-Factor ETF OMFL Sees Spike in Flows”
Apple is the top holding in the Invesco S&P 500 Top 50 ETF (XLG). This fund offers exposure to the 50 largest securities by market capitalization in the Russell 3000 universe. Effectively, XLG delivers concentrated exposure to U.S. mega-cap stocks, something investors increasingly have sought as mega-caps post impressive YTD gains.
XLG took in $276 million in net flows in April, a sharp pivot from the outflows observed during the first quarter. Between January 1 and March 31, XLG saw $171 million in net outflows. In 2022, the fund saw $43 million in net outflows, according to ETF Database.
<span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span>
Over 51% of XLG by weight is in the top 10 securities, whereas the top 10 securities in the S&P 500 comprise approximately 27% of the index by weight. Approximately 62% of XLG by weight is in the top 15 securities.
XLG has $2.2 billion in assets under management and charges 20 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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Apple Inc. (AAPL) was the latest big tech company to report earnings that beat Wall Street’s estimates, reporting an all-time record in services and a March-quarter record for the iPhone, sending shares of the company higher on Friday. Investors are adding to their mega-caps exposure following strong first quarter earnings reports and a rosier economic outlook. "The U.S. stock market has been led recently by mega-cap companies benefiting from their scale and ability to grow fast,” said Todd Rosenbluth, VettaFi's head of research.
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Apple Inc. (AAPL) was the latest big tech company to report earnings that beat Wall Street’s estimates, reporting an all-time record in services and a March-quarter record for the iPhone, sending shares of the company higher on Friday. Investors are adding to their mega-caps exposure following strong first quarter earnings reports and a rosier economic outlook. See more: "Invesco Multi-Factor ETF OMFL Sees Spike in Flows” Apple is the top holding in the Invesco S&P 500 Top 50 ETF (XLG).
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Apple Inc. (AAPL) was the latest big tech company to report earnings that beat Wall Street’s estimates, reporting an all-time record in services and a March-quarter record for the iPhone, sending shares of the company higher on Friday. See more: "Invesco Multi-Factor ETF OMFL Sees Spike in Flows” Apple is the top holding in the Invesco S&P 500 Top 50 ETF (XLG). <span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span> Over 51% of XLG by weight is in the top 10 securities, whereas the top 10 securities in the S&P 500 comprise approximately 27% of the index by weight.
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Apple Inc. (AAPL) was the latest big tech company to report earnings that beat Wall Street’s estimates, reporting an all-time record in services and a March-quarter record for the iPhone, sending shares of the company higher on Friday. “Apple was just the latest company to report stronger than expected earnings this week." Effectively, XLG delivers concentrated exposure to U.S. mega-cap stocks, something investors increasingly have sought as mega-caps post impressive YTD gains.
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15981.0
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2023-05-05 00:00:00 UTC
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Piper Sandler Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/piper-sandler-maintains-apple-aapl-overweight-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Piper Sandler maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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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Fintel reports that on May 5, 2023, Piper Sandler maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Piper Sandler maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Piper Sandler maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Piper Sandler maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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15982.0
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2023-05-05 00:00:00 UTC
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Apple Earnings: Don't Let The iPhone Record Sales Fool You
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AAPL
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https://www.nasdaq.com/articles/apple-earnings%3A-dont-let-the-iphone-record-sales-fool-you
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nan
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nan
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In this video, I will go over Apple's (NASDAQ: AAPL) second-quarter earnings report. It beat expectations, but the company's growth story is plateauing and in some categories down significantly. Given a price-to-earnings (P/E) ratio of 30, declining sales year over year, and a lack of innovation, I found it difficult to call this a good quarter, and I'll explain why.
*Stock prices used were from the trading day of May 4, 2023. The video was published on May 5, 2023.
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 1, 2023
Neil Rozenbaum 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. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In this video, I will go over Apple's (NASDAQ: AAPL) second-quarter earnings report. It beat expectations, but the company's growth story is plateauing and in some categories down significantly. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
In this video, I will go over Apple's (NASDAQ: AAPL) second-quarter earnings report. 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 1, 2023 Neil Rozenbaum has no position in any of the stocks mentioned.
|
In this video, I will go over Apple's (NASDAQ: AAPL) second-quarter earnings report. 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.
|
In this video, I will go over Apple's (NASDAQ: AAPL) second-quarter earnings report. See the 10 stocks *Stock Advisor returns as of May 1, 2023 Neil Rozenbaum has no position in any of the stocks mentioned. His opinions remain his own and are unaffected by The Motley Fool.
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15983.0
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2023-05-05 00:00:00 UTC
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Raymond James Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/raymond-james-maintains-apple-aapl-outperform-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Raymond James maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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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Fintel reports that on May 5, 2023, Raymond James maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Raymond James maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Raymond James maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Raymond James maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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15984.0
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2023-05-05 00:00:00 UTC
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Apple Earnings Suggest A Certain Penny Stock Could Soar
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AAPL
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https://www.nasdaq.com/articles/apple-earnings-suggest-a-certain-penny-stock-could-soar
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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: “Apple Earnings Suggest A Certain Penny Stock Could Soar” was previously published in March 2023. It has since been updated to include the most relevant information available.
Last night, on May 4, the world’s largest company – Apple (AAPL) – reported first-quarter earnings. And while the stock is rising in early morning trade today, the quarterly report did provide some troubling signals for investors.
Namely, the company isn’t growing anymore.
Apple reported that its revenues dropped 2.5% in Q1. Last quarter, revenues dropped about 5%. And the company said revenues will drop again in Q2 as well.
The company isn’t growing anymore.
Why?
Because even the greatest innovations in the world have a shelf life. And Apple’s biggest innovation – the iPhone – is expiring.
Simply consider that when Apple first unveiled the iPhone back in 2007, only business execs had smartphones. That gave Apple a long runway to scale its iPhone business.
Today, however, everyone who wants a smartphone already has one. Indeed, smartphone penetration in the U.S. is 85%. And given how long the iPhone has been around, it’s highly unlikely that the 15% of Americans who are smartphone holdouts suddenly give in over the next few years.
The smartphone market is saturated. You can see this in Apple’s iPhone sales. The number of iPhones sold per year by Apple soared from 11.6 million in 2008 to 231.2 million in 2015. Since then, annual unit sales have plateaued between 200- and 240 million units per year.
The iPhone business simply isn’t growing anymore.
If Apple wants to keep growing and remain the world’s most valuable company, it needs to reaccelerate its growth narrative.
It needs another new product with iPhone potential.
It needs a car.
Introducing “Project Titan,” the Apple Car
In 2008, just a year after the launch of the iPhone, Steve Jobs speculated that the company’s next big breakthrough product would be an Apple car.
Nearly 15 years later, that vision is becoming a reality.
Dubbed “Project Titan” by insiders, Apple has been quietly developing an autonomous electric vehicle for years now.
The development has not been straightforward.
Rumors first broke about an Apple car back in 2015. Then in 2017, the company made a dramatic pivot. It decided to ditch making a car in favor of just developing self-driving technology. In another equally dramatic pivot in 2019, Apple switched back to its plans of making a full-scale EV. And just last year, Digitimes reported that Apple will mass produce its long-awaited and highly anticipated car in 2024.
So, what’s with this whole “car” thing? Why isn’t Apple just making a better iPhone? Why an EV?
The answer has to do with technology adoption rates.
In terms of adoption, EV technology is today where smartphone technology was back when the iPhone launched.
In 2007, smartphone penetration rates in the U.S. were about 10%. Last year, global EV penetration rates were about 10%.
The company has learned from its success with the iPhone. The key to driving long-term growth through a revolutionary product is to launch when that tech’s adoption is around 10%.
That’s exactly where we are today with EVs. Naturally, Apple is planning to soon launch its own EV. It knows that if its car is a hit, it’ll be able to grow that business by leaps and bounds for the next 10-plus years!
Of course, the Apple car will be a hit. Indeed, this is Apple we’re talking about. Everything it does is a hit – the iPhone, iPad, Mac, Watch.
Soon, we’ll be adding the Apple car to that list. And it’ll be the company’s biggest product yet. The auto market is significantly larger than the smartphone, computer, tablet, and smartwatch markets put together!
To play this coming megatrend, you could buy AAPL. But let’s face it. With a $2.5 trillion market cap, Apple stock’s days of scoring investors 10X-plus returns is behind it.
That’s why we’ve identified a far better, far higher-upside way to play the biggest consumer product launch since the iPhone.
Where the Big Bucks Are Made With Apple Products
One thing you have to understand: When it comes to new product launches, Apple never goes at it alone.
That is, the company always wants to create the best product possible. To do that, it knows it needs help. It knows it’s not expert at everything. So, the company tends to partner with other companies to supply critical components to help build top-of-the-line products.
Historically, those suppliers have been fantastic investments.
Check out the stocks of companies that have partnered with the tech titan over the years. They’ve exploded in value. We’re talking investments that can turn $10,000 into as much as $125,000!
In other words, the best way to play a new Apple product launch isn’t to buy AAPL. It’s to buy supplier stocks related to that product launch.
And guess what?
We’ve found the No. 1 under-the-radar supplier stock for Project Titan.
The Final Word on the Apple Car
Want to know a fun fact about the iPhone that hardly anyone remembers? It launched in 2007, just months before the 2008 financial crisis and the worst economic recession since the 1930s.
In other words, it didn’t matter that the housing market was crashing, big banks were going under or unemployment rates were soaring. The story bigger than all that was that Apple was selling a lot of iPhones. And thanks to all those sales, AAPL investors made fortunes.
The lesson? When Apple launches a new product, forget everything else. Forget the economy and the market. Forget it all. Focus on the product – and buy Apple supplier stocks.
Right now, folks, the economy is in trouble. Yet, Apple is about to launch its biggest product since the iPhone. And history tells us that the single best thing we can do right now to not just survive the market volatility but also make fortunes in the long run is buy Apple supplier stocks related to this product launch!
Our top pick? A tiny penny stock that we believe will supply the critical piece of technology that will make the Apple Car go.
This is the stock to own as the Apple Car changes the world in the 2020s like the iPhone changed the world in the 2010s.
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 Apple Earnings Suggest A Certain Penny Stock Could Soar 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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Last night, on May 4, the world’s largest company – Apple (AAPL) – reported first-quarter earnings. To play this coming megatrend, you could buy AAPL. In other words, the best way to play a new Apple product launch isn’t to buy AAPL.
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Last night, on May 4, the world’s largest company – Apple (AAPL) – reported first-quarter earnings. To play this coming megatrend, you could buy AAPL. In other words, the best way to play a new Apple product launch isn’t to buy AAPL.
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Last night, on May 4, the world’s largest company – Apple (AAPL) – reported first-quarter earnings. To play this coming megatrend, you could buy AAPL. In other words, the best way to play a new Apple product launch isn’t to buy AAPL.
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In other words, the best way to play a new Apple product launch isn’t to buy AAPL. Last night, on May 4, the world’s largest company – Apple (AAPL) – reported first-quarter earnings. To play this coming megatrend, you could buy AAPL.
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15985.0
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2023-05-05 00:00:00 UTC
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Apple stakes future growth on emerging markets, starting with India
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AAPL
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https://www.nasdaq.com/articles/apple-stakes-future-growth-on-emerging-markets-starting-with-india-0
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nan
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nan
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By Stephen Nellis
May 5 (Reuters) - When Apple Inc AAPL.O surprised investors this week with a rise in iPhone sales despite a slump in the global smartphone market, Chief Executive Tim Cook credited emerging markets like India where the company is luring away Android phone users.
Cook is betting that those markets will provide more opportunities for growth, with their youthful populations and relatively few iPhones.
Shares of Apple rose more than 4% on Friday, putting the world's most valuable company on track for gains of around $120 billion in market capitalization.
Apple said iPhone sales rose 1.5% to $51.3 billion for its fiscal second quarter even as global smartphone shipments fell 13% in January to March, according to research firm Canalys, whose data showed Apple gained market share from Android phones.
Apple said it set sales records in several countries across South Asia, Latin America and the Middle East.
"We're putting efforts in a number of these markets and really see, particularly given our low share and the dynamics of the demographics, a great opportunity for us in those markets," Cook told investors during a conference call.
India is perhaps Apple's biggest focus. The company recently opened its first two retail stores there, in Mumbai and Delhi, and while Apple does not disclose revenue for the country, Cook told investors that it set a quarterly record and percentage growth was in very strong double digits year-over-year.
"There are a lot of people coming into the middle class, and I really feel that India is at a tipping point, and it's great to be there," Cook said on the conference call.
Apple was the second biggest revenue generating brand in India in 2022, second only to Samsung as it gained 18% of the total value of smartphone shipments, according to research firm Counterpoint.
For Apple, selling an iPhone in an emerging market represents more than just the sale of one device - it represents the chance to get consumers hooked on Apple devices and services over time. Customers who start with an iPhone might later add an Apple Watch or AirPods or sign up for subscription services.
Cook said he saw opportunities for Apple in India in services but said that average revenue per user - a metric known as ARPU in the subscription business - would take time to catch up to Apple's other markets.
USED IPHONE BOOM
Part of the reason that Apple has been able to gain market share in both emerging and developed markets is the emergence of a booming market for used iPhones.
Sales of refurbished iPhones rose 16% in volume globally during 2022. India led the growth with a 19% jump, according to Counterpoint, with iPhones accounting for 11% of secondary smartphone sales in India.
In an interview with Reuters on Thursday, Apple's Cook said little of Apple's direct iPhone revenue comes from refurbished devices. However he said the company has tried to bolster the used iPhone market by offering trade-in deals on its iPhones and building them sturdy enough to last several owners.
"We encourage the market and it provides us an opportunity to hit some price points that we would not otherwise play in," Cook said in the interview.
(Reporting by Stephen Nellis in San Francisco; Additional reporting by Munsif Vengattil in New Delhi and Akash Sriram in Bengaluru; Editing by Sonali Paul)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis May 5 (Reuters) - When Apple Inc AAPL.O surprised investors this week with a rise in iPhone sales despite a slump in the global smartphone market, Chief Executive Tim Cook credited emerging markets like India where the company is luring away Android phone users. Shares of Apple rose more than 4% on Friday, putting the world's most valuable company on track for gains of around $120 billion in market capitalization. The company recently opened its first two retail stores there, in Mumbai and Delhi, and while Apple does not disclose revenue for the country, Cook told investors that it set a quarterly record and percentage growth was in very strong double digits year-over-year.
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By Stephen Nellis May 5 (Reuters) - When Apple Inc AAPL.O surprised investors this week with a rise in iPhone sales despite a slump in the global smartphone market, Chief Executive Tim Cook credited emerging markets like India where the company is luring away Android phone users. Apple said iPhone sales rose 1.5% to $51.3 billion for its fiscal second quarter even as global smartphone shipments fell 13% in January to March, according to research firm Canalys, whose data showed Apple gained market share from Android phones. The company recently opened its first two retail stores there, in Mumbai and Delhi, and while Apple does not disclose revenue for the country, Cook told investors that it set a quarterly record and percentage growth was in very strong double digits year-over-year.
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By Stephen Nellis May 5 (Reuters) - When Apple Inc AAPL.O surprised investors this week with a rise in iPhone sales despite a slump in the global smartphone market, Chief Executive Tim Cook credited emerging markets like India where the company is luring away Android phone users. Apple said iPhone sales rose 1.5% to $51.3 billion for its fiscal second quarter even as global smartphone shipments fell 13% in January to March, according to research firm Canalys, whose data showed Apple gained market share from Android phones. Part of the reason that Apple has been able to gain market share in both emerging and developed markets is the emergence of a booming market for used iPhones.
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By Stephen Nellis May 5 (Reuters) - When Apple Inc AAPL.O surprised investors this week with a rise in iPhone sales despite a slump in the global smartphone market, Chief Executive Tim Cook credited emerging markets like India where the company is luring away Android phone users. Apple said iPhone sales rose 1.5% to $51.3 billion for its fiscal second quarter even as global smartphone shipments fell 13% in January to March, according to research firm Canalys, whose data showed Apple gained market share from Android phones. "We encourage the market and it provides us an opportunity to hit some price points that we would not otherwise play in," Cook said in the interview.
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15986.0
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2023-05-05 00:00:00 UTC
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CANADA STOCKS-TSX gains on energy boost; Air Canada jumps on forecast raise
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AAPL
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https://www.nasdaq.com/articles/canada-stocks-tsx-gains-on-energy-boost-air-canada-jumps-on-forecast-raise
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nan
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nan
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By Shristi Achar A and Vansh Agarwal
May 5 (Reuters) - Canada's main stock index rose on Friday, as higher crude prices lifted energy shares, while robust earnings from companies including Air Canada beat back concerns over a fallout from the U.S. regional bank turmoil.
At 10:02 a.m. ET (1402 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 174.64 points, or 0.86%, at 20,412.83.
The energy sector .SPTTEN jumped 3.3% as crude prices firmed against the dollar. O/R
South of the border, U.S. stock indexes gained as Apple Inc's AAPL.O upbeat results underscored resilience in corporate earnings and stronger-than-expected jobs data allayed fears of a recession. .N
"Investor sentiment is improving... some of the waves of fear we had relative to U.S. banking and any issues around the Fed meeting have kind of washed through now and we may soon be seeing bargain hunters stepping in," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Shares of Air CanadaAC.TO surged 11.2%, to the top of the index, as the airline carrier raised its full-year forecast for core profit.
Technology stocks .SPTTTK rose 2.2%, lifted by an 11.6% jump in Open Text CorpOTEX.TO after its quarterly results beat.
The materials sector .GSPTTMT was a laggard, down 1.5%, tracking a fall in gold prices. GOL/
Meanwhile, data showed Canada added a net 41,400 jobs in April, far exceeding expectations, while the jobless rate stayed at 5.0% for a fifth consecutive month.
Despite the session's gains, the commodity-heavy TSX is on course to post its biggest weekly drop in over a month, unable to elude the sell-off in energy stocks due to weakness in crude.
Among other major movers, Enbridge IncENB.TO edged 0.9% higher as sustained fuel demand helped the pipeline operator report a rise in first-quarter profit.
Magna International IncMG.TO rose 4.5% after the auto parts maker raised its full-year sales forecast.
(Reporting by Shristi Achar A and Vansh Agarwal in Bengaluru; Editing by Shilpi Majumdar)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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O/R South of the border, U.S. stock indexes gained as Apple Inc's AAPL.O upbeat results underscored resilience in corporate earnings and stronger-than-expected jobs data allayed fears of a recession. .N "Investor sentiment is improving... some of the waves of fear we had relative to U.S. banking and any issues around the Fed meeting have kind of washed through now and we may soon be seeing bargain hunters stepping in," said Colin Cieszynski, chief market strategist at SIA Wealth Management. Despite the session's gains, the commodity-heavy TSX is on course to post its biggest weekly drop in over a month, unable to elude the sell-off in energy stocks due to weakness in crude.
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O/R South of the border, U.S. stock indexes gained as Apple Inc's AAPL.O upbeat results underscored resilience in corporate earnings and stronger-than-expected jobs data allayed fears of a recession. By Shristi Achar A and Vansh Agarwal May 5 (Reuters) - Canada's main stock index rose on Friday, as higher crude prices lifted energy shares, while robust earnings from companies including Air Canada beat back concerns over a fallout from the U.S. regional bank turmoil. The energy sector .SPTTEN jumped 3.3% as crude prices firmed against the dollar.
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O/R South of the border, U.S. stock indexes gained as Apple Inc's AAPL.O upbeat results underscored resilience in corporate earnings and stronger-than-expected jobs data allayed fears of a recession. By Shristi Achar A and Vansh Agarwal May 5 (Reuters) - Canada's main stock index rose on Friday, as higher crude prices lifted energy shares, while robust earnings from companies including Air Canada beat back concerns over a fallout from the U.S. regional bank turmoil. Despite the session's gains, the commodity-heavy TSX is on course to post its biggest weekly drop in over a month, unable to elude the sell-off in energy stocks due to weakness in crude.
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O/R South of the border, U.S. stock indexes gained as Apple Inc's AAPL.O upbeat results underscored resilience in corporate earnings and stronger-than-expected jobs data allayed fears of a recession. By Shristi Achar A and Vansh Agarwal May 5 (Reuters) - Canada's main stock index rose on Friday, as higher crude prices lifted energy shares, while robust earnings from companies including Air Canada beat back concerns over a fallout from the U.S. regional bank turmoil. The energy sector .SPTTEN jumped 3.3% as crude prices firmed against the dollar.
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15987.0
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2023-05-05 00:00:00 UTC
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US STOCKS-Wall Street climbs as investors cheer upbeat Apple earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-as-investors-cheer-upbeat-apple-earnings
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nan
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nan
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By Ankika Biswas and Sruthi Shankar
May 5 (Reuters) - Wall Street's main indexes gained on Friday as Apple's upbeat results underscored resilience in corporate earnings, while a stronger-than-expected jobs report eased fears of an imminent economic downturn.
Apple Inc AAPL.O gained 4.4% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2% advance in technology stocks .SPLRCT.
Investors appeared to take in stride data showing U.S. employers boosted hiring in April while raising wages, pointing to sustained labor market strength that could prompt the Federal Reserve to keep interest rates higher for some time.
The Labor Department's report showed non-farm payrolls increased by 253,000 last month, higher than economists' expectations of 180,000.
Wages increased 4.4% year-on-year in April after climbing 4.3% in March, while the unemployment rate fell to 3.4%.
"This is a strong report and shows that the labor market is resilient. It bails out the Fed for raising another quarter point," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"It's been a tough week for the stock market, the regional banking problems have raised the fear factor, but Apple earnings came in strong. Stocks are coming up from near-term oversold condition."
Traders are betting the Fed will start easing the policy rate by September, according to CME Group's FedWatch Tool, compared with July before the release of the jobs data.
The Fed raised its interest rate by 25 basis points as expected on Wednesday, but Chair Jerome Powell noted it was too early to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
Wall Street fell on Thursday after PacWest Bancorp's PACW.Omove to explore strategic options deepened concerns about the health of regional banks, pulling down shares of peers and big banks such as JPMorgan Chase JPM.N and Wells Fargo & Co WFC.N.
PacWest rebounded on Friday with a 48.3% gain, while Western Alliance Bancorp WAL.N bounced back 32.0%. Western Alliance on Thursday denied a report that it was exploring a potential sale.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 459.05 points, or 1.39%, at 33,586.79, the S&P 500 .SPX was up 50.85 points, or 1.25%, at 4,112.07, and the Nasdaq Composite .IXIC was up 141.80 points, or 1.19%, at 12,108.20.
Following upbeat results from megacap companies, analysts expect profits for S&P 500 companies in the first quarter to decline 0.9% from a year earlier, according to Refinitiv data, compared with a 5.1% drop expected at the start of April.
Used-car retailer Carvana Co CVNA.N jumped 30.8% as it expects to post a profit in the current quarter and plans to further bring down excess used-car inventory.
Lyft Inc LYFT.O slumped 19% as the ride-hailing company's strategy to claw back market share from rival Uber Technologies Inc UBER.N with lower fares stoked concerns about a hit to its profit margins.
Advancing issues outnumbered decliners for a 6.06-to-1 ratio on the NYSE and a 3.47-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and two new lows, while the Nasdaq recorded 37 new highs and 43 new lows.
(Reporting by Ankika Biswas and Sruthi Shankar in Bengaluru; Additional reporting by Stephen Culp in New York; Editing by Subhranshu Sahu and Shounak Dasgupta)
((Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O gained 4.4% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - Wall Street's main indexes gained on Friday as Apple's upbeat results underscored resilience in corporate earnings, while a stronger-than-expected jobs report eased fears of an imminent economic downturn. Investors appeared to take in stride data showing U.S. employers boosted hiring in April while raising wages, pointing to sustained labor market strength that could prompt the Federal Reserve to keep interest rates higher for some time.
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Apple Inc AAPL.O gained 4.4% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - Wall Street's main indexes gained on Friday as Apple's upbeat results underscored resilience in corporate earnings, while a stronger-than-expected jobs report eased fears of an imminent economic downturn. "It's been a tough week for the stock market, the regional banking problems have raised the fear factor, but Apple earnings came in strong.
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Apple Inc AAPL.O gained 4.4% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - Wall Street's main indexes gained on Friday as Apple's upbeat results underscored resilience in corporate earnings, while a stronger-than-expected jobs report eased fears of an imminent economic downturn. Investors appeared to take in stride data showing U.S. employers boosted hiring in April while raising wages, pointing to sustained labor market strength that could prompt the Federal Reserve to keep interest rates higher for some time.
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Apple Inc AAPL.O gained 4.4% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2% advance in technology stocks .SPLRCT. Investors appeared to take in stride data showing U.S. employers boosted hiring in April while raising wages, pointing to sustained labor market strength that could prompt the Federal Reserve to keep interest rates higher for some time. "This is a strong report and shows that the labor market is resilient.
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15988.0
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2023-05-05 00:00:00 UTC
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Why Apple Stock Rallied Friday Morning
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-rallied-friday-morning
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) are ending the week on a high note, gaining as much as 5.1%. As of 10:53 a.m. ET, the stock was still up 4.8%.
The broader market was solidly in rally mode, which no doubt contributed to tech giant's rise. However, the biggest news was Apple's quarterly results, which were far better than many feared.
So what
In its fiscal second quarter (ended April 1), Apple generated revenue of $94.8 billion, down 3% year over year, resulting in earnings per share (EPS) of $1.52, level with the year-ago period. Apple shareholders breathed a sigh of relief, having feared the combination of high inflation, rising interest rates, and continued economic uncertainty would have weighed more heavily on sales.
To put the results in the context of Wall Street's expectations, analysts' consensus estimates were calling for revenue of $92.9 billion and EPS of $1.43, so the tech titan cleared both hurdles with ease.
Apple fans had other reasons to celebrate. Services was the highlight, with revenue rising to $20.9 billion -- an all-time record for the segment. iPhone sales also jumped, as revenue set a record of $51.3 billion, the highest ever for the fiscal second quarter.
On the heels of its strong performance, Apple said it was raising its dividend to $0.24, an increase of 4%, payable on May 18 to shareholders of record as of the market close on May 15. This marks the 11th consecutive annual increase.
The company also announced an additional $90 billion share repurchase plan, which will entitle remaining shareholders to an incrementally larger slice of its profits.
Now what
Naysayers have been waiting for the other shoe to drop, but Apple continues to largely defy the downturn. CEO Tim Cook suggested that consumer demand was holding up well and was particularly strong in emerging markets.
Given the current economic headwinds, Apple was reticent to provide many specifics for the upcoming quarter, but analysts' consensus estimates are calling for revenue of $84.5 billion, an increase of about 2%, and EPS of $1.20, essentially flat.
The consistent strength of Apple's business in the face of headwinds is a remarkable achievement. Its strong performance, industry-leading position, and shareholder-friendly practices make the stock a buy.
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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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What happened Shares of Apple (NASDAQ: AAPL) are ending the week on a high note, gaining as much as 5.1%. Apple shareholders breathed a sigh of relief, having feared the combination of high inflation, rising interest rates, and continued economic uncertainty would have weighed more heavily on sales. To put the results in the context of Wall Street's expectations, analysts' consensus estimates were calling for revenue of $92.9 billion and EPS of $1.43, so the tech titan cleared both hurdles with ease.
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What happened Shares of Apple (NASDAQ: AAPL) are ending the week on a high note, gaining as much as 5.1%. So what In its fiscal second quarter (ended April 1), Apple generated revenue of $94.8 billion, down 3% year over year, resulting in earnings per share (EPS) of $1.52, level with the year-ago period. To put the results in the context of Wall Street's expectations, analysts' consensus estimates were calling for revenue of $92.9 billion and EPS of $1.43, so the tech titan cleared both hurdles with ease.
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What happened Shares of Apple (NASDAQ: AAPL) are ending the week on a high note, gaining as much as 5.1%. So what In its fiscal second quarter (ended April 1), Apple generated revenue of $94.8 billion, down 3% year over year, resulting in earnings per share (EPS) of $1.52, level with the year-ago period. Given the current economic headwinds, Apple was reticent to provide many specifics for the upcoming quarter, but analysts' consensus estimates are calling for revenue of $84.5 billion, an increase of about 2%, and EPS of $1.20, essentially flat.
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What happened Shares of Apple (NASDAQ: AAPL) are ending the week on a high note, gaining as much as 5.1%. So what In its fiscal second quarter (ended April 1), Apple generated revenue of $94.8 billion, down 3% year over year, resulting in earnings per share (EPS) of $1.52, level with the year-ago period. Its strong performance, industry-leading position, and shareholder-friendly practices make the stock a buy.
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15989.0
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2023-05-05 00:00:00 UTC
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Dow Movers: INTC, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-intc-aapl
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nan
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nan
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In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.4%. Year to date, Apple registers a 33.3% gain.
And the worst performing Dow component thus far on the day is Intel, trading down 0.4%. Intel is showing a gain of 17.8% looking at the year to date performance.
Two other components making moves today are Merck, trading down 0.3%, and American Express, trading up 2.9% on the day.
VIDEO: Dow Movers: INTC, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: INTC, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.4%. And the worst performing Dow component thus far on the day is Intel, trading down 0.4%.
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VIDEO: Dow Movers: INTC, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.4%. And the worst performing Dow component thus far on the day is Intel, trading down 0.4%.
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VIDEO: Dow Movers: INTC, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.4%. And the worst performing Dow component thus far on the day is Intel, trading down 0.4%.
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VIDEO: Dow Movers: INTC, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Intel, trading down 0.4%. Intel is showing a gain of 17.8% looking at the year to date performance.
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15990.0
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2023-05-05 00:00:00 UTC
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Nasdaq 100 Movers: TEAM, FANG
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-team-fang
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nan
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nan
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In early trading on Friday, shares of Diamondback Energy topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Diamondback Energy, has lost about 3.6% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Atlassian, trading down 10.7%. Atlassian is showing a gain of 4.1% looking at the year to date performance.
Two other components making moves today are Warner Bros Discovery, trading down 2.5%, and Apple, trading up 4.6% on the day.
VIDEO: Nasdaq 100 Movers: TEAM, FANG
The views and 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 the worst performing Nasdaq 100 component thus far on the day is Atlassian, trading down 10.7%. Atlassian is showing a gain of 4.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: TEAM, FANG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Diamondback Energy topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Diamondback Energy, has lost about 3.6% of its value. And the worst performing Nasdaq 100 component thus far on the day is Atlassian, trading down 10.7%.
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In early trading on Friday, shares of Diamondback Energy topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. And the worst performing Nasdaq 100 component thus far on the day is Atlassian, trading down 10.7%. Two other components making moves today are Warner Bros Discovery, trading down 2.5%, and Apple, trading up 4.6% on the day.
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In early trading on Friday, shares of Diamondback Energy topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. And the worst performing Nasdaq 100 component thus far on the day is Atlassian, trading down 10.7%. VIDEO: Nasdaq 100 Movers: TEAM, FANG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15991.0
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2023-05-05 00:00:00 UTC
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Wall St climbs as Apple, regional banks rally; jobs data eases recession worries
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AAPL
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https://www.nasdaq.com/articles/wall-st-climbs-as-apple-regional-banks-rally-jobs-data-eases-recession-worries
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nan
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nan
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By Ankika Biswas and Sruthi Shankar
May 5 (Reuters) - U.S. stocks gained on Friday lifted by strong results from Apple and rebounding shares of regional banks, while a stronger-than-expected jobs report eased worries of an imminent economic downturn.
Apple Inc AAPL.O gained 4.7% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a 2.3% advance in technology stocks .SPLRCT.
PacWest Bancorp PACW.O rallied 83.3% and Western Alliance Bancorp WAL.N jumped 39.7% at the end of a bruising week for regional lenders amid the collapse of First Republic Bank.
Meanwhile, investors appeared to take in stride data showing U.S. job growth accelerated in April while wage gains increased solidly, pointing to sustained labor market strength that could compel the Federal Reserve to keep interest rates higher for longer.
"This is a strong report and shows that the labor market is resilient. It bails out the Fed for raising another quarter point," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"It's been a tough week for the stock market, the regional banking problems have raised the fear factor, but Apple earnings came in strong. Stocks are coming up from near-term oversold condition."
Traders are betting the Fed will start easing the policy rate by September, according to CME Group's FedWatch Tool, compared with July before the release of the jobs data.
The U.S. central bank raised its interest rate by 25 basis points as expected on Wednesday, but Chair Jerome Powell noted it was too early to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
The main indexes are set for weekly losses after PacWest's move on Thursday to explore strategic options deepened concerns about the health of regional banks.
The KBW regional index .KRX gained 4.4% after sharp losses earlier this week, while the S&P 500 Banks index .SPXBK was up 3.1%.
"The Fed data about its emergency lending dropping significantly ... I think the market is feeling better about the banks and their situation," said Michael O'Rourke, chief market strategist at JonesTrading.
U.S. central bank data showed lending to banks shrunk a bit in the latest week, as money shifted out of a key lending tool.
Following upbeat results from megacap companies, analysts expect profits for S&P 500 companies in the first quarter to decline 0.7% from a year earlier, according to Refinitiv data, compared with a 5.1% drop expected at the start of April.
At 12:36 p.m. ET, the Dow Jones Industrial Average .DJI was up 397.24 points, or 1.20%, at 33,524.98, the S&P 500 .SPX was up 57.76 points, or 1.42%, at 4,118.98, and the Nasdaq Composite .IXIC was up 207.75 points, or 1.74%, at 12,174.15.
Used-car retailer Carvana Co CVNA.N jumped 29.6% as it expects to post a profit in the current quarter and plans to further bring down excess used-car inventory.
Lyft Inc LYFT.O slumped 21.1% as the ride-hailing company's strategy to claw back market share from rival Uber Technologies Inc UBER.N with lower fares stoked concerns about a hit to its profit margins.
Advancing issues outnumbered decliners for a 4.82-to-1 ratio on the NYSE and a 2.57-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and three new lows, while the Nasdaq recorded 64 new highs and 83 new lows.
(Reporting by Ankika Biswas and Sruthi Shankar in Bengaluru; Additional reporting by Stephen Culp in New York; Editing by Subhranshu Sahu and Shounak Dasgupta)
((Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O gained 4.7% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a 2.3% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - U.S. stocks gained on Friday lifted by strong results from Apple and rebounding shares of regional banks, while a stronger-than-expected jobs report eased worries of an imminent economic downturn. Meanwhile, investors appeared to take in stride data showing U.S. job growth accelerated in April while wage gains increased solidly, pointing to sustained labor market strength that could compel the Federal Reserve to keep interest rates higher for longer.
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Apple Inc AAPL.O gained 4.7% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a 2.3% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - U.S. stocks gained on Friday lifted by strong results from Apple and rebounding shares of regional banks, while a stronger-than-expected jobs report eased worries of an imminent economic downturn. U.S. central bank data showed lending to banks shrunk a bit in the latest week, as money shifted out of a key lending tool.
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Apple Inc AAPL.O gained 4.7% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a 2.3% advance in technology stocks .SPLRCT. By Ankika Biswas and Sruthi Shankar May 5 (Reuters) - U.S. stocks gained on Friday lifted by strong results from Apple and rebounding shares of regional banks, while a stronger-than-expected jobs report eased worries of an imminent economic downturn. Meanwhile, investors appeared to take in stride data showing U.S. job growth accelerated in April while wage gains increased solidly, pointing to sustained labor market strength that could compel the Federal Reserve to keep interest rates higher for longer.
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Apple Inc AAPL.O gained 4.7% on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a 2.3% advance in technology stocks .SPLRCT. "This is a strong report and shows that the labor market is resilient. It bails out the Fed for raising another quarter point," said Peter Cardillo, chief market economist at Spartan Capital Securities.
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15992.0
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2023-05-05 00:00:00 UTC
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Apple's results send shares surging to nine-month high
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AAPL
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https://www.nasdaq.com/articles/apples-results-send-shares-surging-to-nine-month-high
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nan
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nan
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By Noel Randewich
May 5 (Reuters) - Apple's AAPL.O stock surged nearly almost 5% on Friday, hitting a nine-month high and on track for its biggest one-day gain since November after the iPhone maker's quarterly results cheered investors worried about a potential recession.
The rally in Apple's shares buoyed optimism across Wall Street, helping lift the S&P 500 .SPX and Nasdaq .IXIC over 1.5% after CEO Tim Cook's results late on Thursday underscored the resilience of corporate earnings in a quarterly reporting season that so far has been less bad than expected.
"Apple soothed the market because of its consistency of execution. Tim Cook has a steady hand on the helm," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
"Investors in uncertain times want certainty, and Apple, as well as Microsoft MSFT.O, are as close as you can get to certainty," Dollarhide added.
The world's most valuable company reported lower revenue and profits for the quarter ending April 1, but still beat analysts' expectations. With Apple's results helped by emerging markets like India, executives said gross profit margins for the current quarter would be better than forecast.
Apple's stock market value climbed by over $100 billion to about $2.7 trillion, extending its lead over Microsoft, the world's second most valuable company, at $2.3 trillion.
Last trading at $173.48, the Cupertino, California company's shares were set to log their biggest one-day gain since Nov. 30. They were just short of a peak of over $176 last August.
Apple's stock has recovered almost 40% from its closing low in January, and it is now down just 4.7% below its record high close in January 2022. By comparison, the S&P 500 remains down 15% from its record high close, also in January 2022.
At least 13 analysts raised their price targets for Apple's stock following its report, with the median target climbing to $180 from $170 before the report, according to Refinitiv data.
Apple surges as Tim Cook keeps steady hand on helmhttps://tmsnrt.rs/419UP2U
(Reporting by Noel Randewich, editing by Deepa Babington)
((noel.randewich@tr.com; Twitter: @randewich;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich May 5 (Reuters) - Apple's AAPL.O stock surged nearly almost 5% on Friday, hitting a nine-month high and on track for its biggest one-day gain since November after the iPhone maker's quarterly results cheered investors worried about a potential recession. The rally in Apple's shares buoyed optimism across Wall Street, helping lift the S&P 500 .SPX and Nasdaq .IXIC over 1.5% after CEO Tim Cook's results late on Thursday underscored the resilience of corporate earnings in a quarterly reporting season that so far has been less bad than expected. Tim Cook has a steady hand on the helm," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
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By Noel Randewich May 5 (Reuters) - Apple's AAPL.O stock surged nearly almost 5% on Friday, hitting a nine-month high and on track for its biggest one-day gain since November after the iPhone maker's quarterly results cheered investors worried about a potential recession. Apple's stock market value climbed by over $100 billion to about $2.7 trillion, extending its lead over Microsoft, the world's second most valuable company, at $2.3 trillion. Apple surges as Tim Cook keeps steady hand on helmhttps://tmsnrt.rs/419UP2U (Reporting by Noel Randewich, editing by Deepa Babington) ((noel.randewich@tr.com; Twitter: @randewich;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich May 5 (Reuters) - Apple's AAPL.O stock surged nearly almost 5% on Friday, hitting a nine-month high and on track for its biggest one-day gain since November after the iPhone maker's quarterly results cheered investors worried about a potential recession. The rally in Apple's shares buoyed optimism across Wall Street, helping lift the S&P 500 .SPX and Nasdaq .IXIC over 1.5% after CEO Tim Cook's results late on Thursday underscored the resilience of corporate earnings in a quarterly reporting season that so far has been less bad than expected. Apple surges as Tim Cook keeps steady hand on helmhttps://tmsnrt.rs/419UP2U (Reporting by Noel Randewich, editing by Deepa Babington) ((noel.randewich@tr.com; Twitter: @randewich;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich May 5 (Reuters) - Apple's AAPL.O stock surged nearly almost 5% on Friday, hitting a nine-month high and on track for its biggest one-day gain since November after the iPhone maker's quarterly results cheered investors worried about a potential recession. The world's most valuable company reported lower revenue and profits for the quarter ending April 1, but still beat analysts' expectations. With Apple's results helped by emerging markets like India, executives said gross profit margins for the current quarter would be better than forecast.
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15993.0
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2023-05-05 00:00:00 UTC
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GLOBAL MARKETS-Stocks rally while Treasuries fall as U.S. jobs data brightens outlook
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-rally-while-treasuries-fall-as-u.s.-jobs-data-brightens-outlook
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nan
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nan
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By Sinéad Carew and Naomi Rovnick
NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes.
The non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March and exceeding expectations for 180,000.
U.S. Treasury yields rose after the report while the dollar was down very slightly against a basket of major currencies.
Oil prices jumped on signs of economic strength, but remained on track for a weekly decline. Shares in U.S. banks also erased some losses after a rough week following the collapse of a third major bank.
Since Fed Chair Jerome Powell signaled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group's FedWatch tool. After Friday's data, the probability for a July cut declined.
But still Friday's trading suggested relief at signs of economic strength that eased worries about prospects of a recession rather than fears of tighter policy, which often come with stronger than expected data.
"The pause button has likely been pressed and now it's about the state of the U.S. economy and what we saw today suggests it's in a better position that previously expected," said Kristina Hooper, chiefglobal marketstrategist at Invesco, New York. "The caveats are that one data point does not a picture paint and, to a large extent, employment is a lagging indicator for the state of the economy."
But while decent growth may not lead to more tightening in the short run Sameer Samana, seniorglobal marketstrategist at Wells Fargo Investment Institute in Charlotte, NC, disagrees with the market's "Goldilocks scenario" where growth slows without a hard recession and the Fed can ease policy quickly.
"If the Fed is cutting rates aggressively in the back half of the year, something has gone very wrong economically," he said adding that, for now, the market has a short term focus.
MSCI's gauge of stocks across the globe .MIWD00000PUS was gaining 1.57% and on track for its biggest one-day percentage gain since January 6.
The Dow Jones Industrial Average .DJI rose 576.25 points, or 1.74%, to 33,703.99, the S&P 500 .SPX gained 80.24 points, or 1.98%, to 4,141.46 and the Nasdaq Composite .IXIC added 282.82 points, or 2.36%, to 12,249.22.
Under the hood, oil's rebound helped boost the energy equity index .SPNY. U.S. crude CLc1 settled up 4.05% at $71.34 per barrel and Brent LCOc1 ended at $75.30, up 3.86%.
The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors.
Investors also paused their exit from U.S. banks pushing the KBW regional bank index .KRX up 4.4%. However the regional index was still down roughly for the week on sharp declines in the previous four sessions after the weekend collapse of First Republic Bank.
The dollar index =USD fell 0.099%, with the euro EUR= up 0.09% to $1.1021.
The Japanese yen weakened 0.36% versus the greenback at 134.80 per dollar, while Sterling GBP= was last trading at $1.2638, up 0.52% on the day.
Benchmark 10-year notes US10YT=RR were up 8.7 basis points to 3.439%, from 3.352% late on Thursday. The 30-year bond US30YT=RR was last up 3.4 basis points to yield 3.7562%. The 2-year note US2YT=RR was last up 19.1 basis points to yield 3.9181%.
After getting close to a record high in the previous session, gold beat a fast retreat after the payrolls data tempered expectations for Fed rate cuts.
Spot gold XAU= dropped 1.6% to $2,017.55 an ounce. U.S. gold futures GCc1 fell 1.76% to $2,017.40 an ounce.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banarjee in Singapore. Editing by Jacqueline Wong, Robert Birsel, Keith Weir, Alexander Smith, David Gregorio and Diane Craft)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and 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 biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. Since Fed Chair Jerome Powell signaled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group's FedWatch tool.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. But still Friday's trading suggested relief at signs of economic strength that eased worries about prospects of a recession rather than fears of tighter policy, which often come with stronger than expected data.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. By Sinéad Carew and Naomi Rovnick NEW YORK/LONDON, May 5 (Reuters) - A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes. The Dow Jones Industrial Average .DJI rose 576.25 points, or 1.74%, to 33,703.99, the S&P 500 .SPX gained 80.24 points, or 1.98%, to 4,141.46 and the Nasdaq Composite .IXIC added 282.82 points, or 2.36%, to 12,249.22.
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The biggest boost from a single stock for all three major U.S. indexes was from technology heavyweight Apple Inc AAPL.O which soared after its quarterly report impressed investors. But still Friday's trading suggested relief at signs of economic strength that eased worries about prospects of a recession rather than fears of tighter policy, which often come with stronger than expected data. The Dow Jones Industrial Average .DJI rose 576.25 points, or 1.74%, to 33,703.99, the S&P 500 .SPX gained 80.24 points, or 1.98%, to 4,141.46 and the Nasdaq Composite .IXIC added 282.82 points, or 2.36%, to 12,249.22.
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15994.0
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2023-05-05 00:00:00 UTC
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GLOBAL MARKETS-Markets mixed as jobs data brightens outlook, rekindles inflation fears
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AAPL
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https://www.nasdaq.com/articles/global-markets-markets-mixed-as-jobs-data-brightens-outlook-rekindles-inflation-fears
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nan
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nan
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By Naomi Rovnick
LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes.
MSCI's broad index of global equities ..MIWO00000PUS eked out a 0.1% gain ahead of the New York market open, while Wall Street stock futures were firm.
Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. Contracts on the tech-heavy Nasdaq 100 NQc1 added 0.7%.
The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell.
The benchmark 10-year Treasury yield US10YT=RR, which sets the tone for borrowing costs and asset pricing worldwide, was 11 bps higher at 3.4362%. Bond yields move inversely to prices.
The dollar, as measured against a basket of currencies, rose 0.3%, putting it on course for a slim weekly gain.
The official non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March. Economists polled by Reuters expected 180,000 new jobs, in what would have been the smallest gain since December 2020.
Ahead of the jobs data markets were pricing for the Fed, which raised its main funds rate by 25 basis points (bps) to a range of 5%-5.25% on Wednesday, to pause at its next meeting in June and begin rate cuts from July FEDWATCH.
Immediately after the payrolls report, forecasts of a July cut had reduced significantly.
The Fed's recent hiking cycle, started early last year, has been its most aggressive since the 1980s in the face of high inflation, but was called into question with the collapse of Californian lender Silicon Valley Bank in March.
"We're only just entering the phase where monetary policy is having its maximum impact," said UBS head of European equity strategy Gerry Fowler said.
"We expect there will be job losses in the U.S. starting in the third quarter (of this year)," he said, with "concerns about credit quality and how that ripples through the banking system."
Los Angeles-based PacWest Bancorp PACW.O said it was exploring a sale, deepening falls in U.S. regional bank stocks. Shares in smaller U.S. banks .BKX have dropped 11.5% this week, after the weekend collapse of First Republic Bank.
In Europe, the yield on Germany's ten-year Bund DE10YT=RR, a benchmark for euro zone debt costs, rose 9bps to 2.29%.
The euro EUR=EBS dropped 0.4% to $1.0975, reversing a small gain against the dollar from earlier in the day. The Stoxx 600 index of European shares rose 0.6%, tracking Wall Street equity futures.
Spot gold XAU= lost 1.9% to $2,012 an ounce as bets of dollar weakness reduced.
Brent LCOc1 was at $74.49, up 2.7% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Naomi Rovnick. Additional reporting by Ankur Banarjee in Singapore. Editing by Jacqueline Wong, Robert Birsel, Keith Weir and Alexander Smith)
((naomi.rovnick@thomsonreuters.com;; Mobile - +44 7912 164 651; Twitter: @naomi_rovnick;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell.
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Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. MSCI's broad index of global equities ..MIWO00000PUS eked out a 0.1% gain ahead of the New York market open, while Wall Street stock futures were firm. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell.
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Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell.
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Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell. Immediately after the payrolls report, forecasts of a July cut had reduced significantly.
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15995.0
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2023-05-05 00:00:00 UTC
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GLOBAL MARKETS-Shares waver as rate pause bets and Apple earnings clash with U.S. bank rout
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-waver-as-rate-pause-bets-and-apple-earnings-clash-with-u.s.-bank
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nan
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nan
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By Naomi Rovnick
LONDON, May 5 (Reuters) - Global stocks hovered in a tight range on Friday, still on course for a weekly loss, as investors balanced bets of central banks pausing rate increases with the latest rout in shares of U.S. regional lenders.
MSCI's broad index of global equities ..MIWO00000PUS edged 0.1% higher following a four-day losing streak, while Europe's Stoxx 600 share index .STOXX rose 0.2%.
The mood on Wall Street appeared rosier, with futures contracts ESc1 on the benchmark S&P 500 share index adding 0.5% following better than expected earnings from Apple Inc AAPL.O.
Contracts on the tech-heavy Nasdaq 100 NQc1 gained 0.6%, although analysts warned all this could change if U.S. jobs data were stronger than expected, complicating the Federal Reserve's job of soothing banking sector worries while battling still-high inflation.
On Thursday, Los Angeles-based PacWest Bancorp's PACW.O said it was exploring a sale, deepening falls for U.S. regional banking stocks.
Markets are pricing for the Fed, which raised its main funds rate by 25 basis points (bps) to a range of 5%-5.25% on Wednesday, to pause at its next meeting in June and begin rate cuts from July FEDWATCH.
"There will be concerns about credit quality and how that ripples through the banking system," said Gerry Fowler, head of European equity strategy at UBS.
The Fed's recent hiking cycle, started early last year, has been its most aggressive since the 1980. Bets of a pause have risen since the collapse of Californian lender Silicon Valley Bank in March.
"The time-frame for monetary policy (tightening) to impact the economy is around 16 months," Fowler said. "We're only just entering the phase where monetary policy is having its maximum impact."
"We think further (rate) hikes are off the table," said Emmanuel Cau, head of European equity strategy at Barclays. But he cautioned that only a "quick drop in inflation" or a "sharp weakening" of economic growth would lead the Fed to start cutting borrowing costs.
In government debt markets, U.S. Treasuries pared back some price gains after a strong performance all week. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 10 bps to 3.823%. The benchmark 10-year Treasury yield US10YT=RR, which sets the tone for borrowing costs and asset pricing worldwide, was 5 bps higher at 3.4%. Bond yields move inversely to prices.
Germany's 10-year bund yield DE10YT=RR, which reflects euro zone borrowing rates, rose 6 bps to 2.26% after falling for three straight sessions.
The European Central Bank raised its main deposit rate for the seventh time in this cycle on Thursday, to 3.25%, but markets pared back bets of how long it would continue hiking in its fight against high inflation.
Against a basket of currencies, the dollar =USD eased 0.1%, heading for its seventh weekly decline out of the last eight weeks.
Sterling GBP=D3 was last trading at $1.261, up 0.3% on the day, while the euro EUR=EBS firmed 0.1% to $1.1027.
Spot gold XAU= was at $2,037.58 an ounce, not far from its all-time high of $2,072.49.
Brent LCOc1 was at $73.75, up 1.7% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Naomi Rovnick. Additional reporting by Ankur Banarjee in Singapore. Editing by Jacqueline Wong, Robert Birsel and Keith Weir)
((naomi.rovnick@thomsonreuters.com;; Mobile - +44 7912 164 651; Twitter: @naomi_rovnick;))
The views and 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 mood on Wall Street appeared rosier, with futures contracts ESc1 on the benchmark S&P 500 share index adding 0.5% following better than expected earnings from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks hovered in a tight range on Friday, still on course for a weekly loss, as investors balanced bets of central banks pausing rate increases with the latest rout in shares of U.S. regional lenders. The European Central Bank raised its main deposit rate for the seventh time in this cycle on Thursday, to 3.25%, but markets pared back bets of how long it would continue hiking in its fight against high inflation.
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The mood on Wall Street appeared rosier, with futures contracts ESc1 on the benchmark S&P 500 share index adding 0.5% following better than expected earnings from Apple Inc AAPL.O. In government debt markets, U.S. Treasuries pared back some price gains after a strong performance all week. Germany's 10-year bund yield DE10YT=RR, which reflects euro zone borrowing rates, rose 6 bps to 2.26% after falling for three straight sessions.
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The mood on Wall Street appeared rosier, with futures contracts ESc1 on the benchmark S&P 500 share index adding 0.5% following better than expected earnings from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks hovered in a tight range on Friday, still on course for a weekly loss, as investors balanced bets of central banks pausing rate increases with the latest rout in shares of U.S. regional lenders. Markets are pricing for the Fed, which raised its main funds rate by 25 basis points (bps) to a range of 5%-5.25% on Wednesday, to pause at its next meeting in June and begin rate cuts from July FEDWATCH.
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The mood on Wall Street appeared rosier, with futures contracts ESc1 on the benchmark S&P 500 share index adding 0.5% following better than expected earnings from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks hovered in a tight range on Friday, still on course for a weekly loss, as investors balanced bets of central banks pausing rate increases with the latest rout in shares of U.S. regional lenders. The benchmark 10-year Treasury yield US10YT=RR, which sets the tone for borrowing costs and asset pricing worldwide, was 5 bps higher at 3.4%.
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15996.0
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2023-05-05 00:00:00 UTC
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Is It Too Late to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-apple-stock-2
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nan
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nan
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Apple (NASDAQ: AAPL) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. The company attained the largest market cap in the world at $2.7 trillion by consistently making quality products that garnered immense brand loyalty from consumers.
Its stellar stock growth over the years might suggest the best time to invest in Apple was a long time ago. But consumer tech is an ever-evolving market, with the company's dominance likely to provide gains for years to come. Meanwhile, growing ventures into markets like digital services, finance, and virtual/augmented reality (VR/AR) diversify its business and allow it to profit from the development of multiple industries.
Here's why it's not too late to buy Apple stock.
A history of consistent gains
Apple shares climbed about 282% in the last five years, and 960% over the last decade. The reliable growth has given it a reputation for being one of the safest investments around, with exceptionally low volatility.
For instance, in the first quarter of 2023, the company reported its first quarterly revenue decline in years and missed analyst expectations by $4.5 billion. However, its stock has still risen about 12% since its earnings were posted on Feb. 2, with investors trusting its long-term growth.
And when the company's stock does dip, it's rarely down for long, with Wall Street rushing to take advantage of the buying opportunity.
Moreover, consistent growth has led Warren Buffett's holding company Berkshire Hathaway to make Apple over 45% of its portfolio. Since that investment in 2016, Apple shares climbed 547%. Meanwhile, Buffett's company is continuing to grow its 5.8% stake in the MacBook maker, buying more stock as recently as this past February.
Apple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock.
Nearly unrivaled brand loyalty
Last month, Buffett said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." While surprising, the statement rings true for many consumers who would willingly switch brands of other devices before straying from Apple's smartphones.
This immense loyalty gave the company a massive advantage when entering new markets. It has a leading market share in tablets, smartwatches, headphones, and smartphones despite other tech companies leading those industries before Apple entered them. As a result, the company can charge a premium for its products, which partly safeguards it against short-term market headwinds.
According to a Bloomberg report, Apple is gearing up to enter the VR/AR market this June with the release of a new headset. If the company's past success entering new markets is anything to go by, it could soon dethrone companies like Meta Platforms and Sony Group, which are currently leading this quickly expanding $31 billion industry.
Apple's potent brand also boosted its efforts in the world of finance and digital services. After launching a credit card in 2019 and a buy now, pay later program earlier this year, the company recently unveiled its first savings accounts. The new service has been a hit so far, with consumers depositing nearly $1 billion into its accounts within the first four days.
Apple has become a behemoth in the tech market, allowing it to expand into a wide variety of industries, which diversified and strengthened its business. The company's history of consistent stock growth and immense brand loyalty will likely keep it growing for decades. And with that, it's definitely not too late to invest in the stock for the long term.
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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, 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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Apple (NASDAQ: AAPL) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. The company attained the largest market cap in the world at $2.7 trillion by consistently making quality products that garnered immense brand loyalty from consumers. Meanwhile, growing ventures into markets like digital services, finance, and virtual/augmented reality (VR/AR) diversify its business and allow it to profit from the development of multiple industries.
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Apple (NASDAQ: AAPL) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. Moreover, consistent growth has led Warren Buffett's holding company Berkshire Hathaway to make Apple over 45% of its portfolio. Apple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock.
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Apple (NASDAQ: AAPL) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. Apple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock. The company's history of consistent stock growth and immense brand loyalty will likely keep it growing for decades.
|
Apple (NASDAQ: AAPL) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. The company attained the largest market cap in the world at $2.7 trillion by consistently making quality products that garnered immense brand loyalty from consumers. Apple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock.
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15997.0
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2023-05-05 00:00:00 UTC
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Keybanc Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/keybanc-maintains-apple-aapl-overweight-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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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Fintel reports that on May 5, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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15998.0
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2023-05-05 00:00:00 UTC
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Deutsche Bank Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/deutsche-bank-maintains-apple-aapl-buy-recommendation-0
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nan
|
nan
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Fintel reports that on May 5, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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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Fintel reports that on May 5, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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15999.0
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2023-05-05 00:00:00 UTC
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Rosenblatt Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/rosenblatt-maintains-apple-aapl-buy-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Rosenblatt maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 4.90% Upside
As of April 24, 2023, the average one-year price target for Apple is 173.91. The forecasts range from a low of 117.16 to a high of $215.25. The average price target represents an increase of 4.90% from its latest reported closing price of 165.79.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 205 owner(s) or 3.30% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Total shares owned by institutions increased in the last three months by 0.05% to 10,098,362K shares.
The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% 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 2.90% 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 2.18% 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 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% 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.
|
Fintel reports that on May 5, 2023, Rosenblatt maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
|
Fintel reports that on May 5, 2023, Rosenblatt maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
|
Fintel reports that on May 5, 2023, Rosenblatt maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
|
Average portfolio weight of all funds dedicated to AAPL is 3.10%, an increase of 1.71%. Fintel reports that on May 5, 2023, Rosenblatt maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. The put/call ratio of AAPL is 0.98, indicating a bullish outlook.
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