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16100.0
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2023-05-01 00:00:00 UTC
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B of A Securities Maintains Apple (AAPL) Neutral Recommendation
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AAPL
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https://www.nasdaq.com/articles/b-of-a-securities-maintains-apple-aapl-neutral-recommendation-0
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nan
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nan
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Fintel reports that on May 1, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation.
Analyst Price Forecast Suggests 2.49% 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 2.49% from its latest reported closing price of 169.68.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 6.74%. 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 6412 funds or institutions reporting positions in Apple. This is an increase of 218 owner(s) or 3.52% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 2.90%, a decrease of 12.63%. Total shares owned by institutions increased in the last three months by 0.01% to 10,120,461K shares.
The put/call ratio of AAPL is 1.01, indicating a bearish 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 1, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.90%, a decrease of 12.63%. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
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Fintel reports that on May 1, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.90%, a decrease of 12.63%. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
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Fintel reports that on May 1, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.90%, a decrease of 12.63%. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 2.90%, a decrease of 12.63%. Fintel reports that on May 1, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
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16101.0
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2023-05-01 00:00:00 UTC
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GLOBAL MARKETS-Wall St stocks, dollar gain with data; Fed, earnings in the wings
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-st-stocks-dollar-gain-with-data-fed-earnings-in-the-wings
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nan
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nan
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By Sinéad Carew
May 1 (Reuters) - The S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports.
Crude oil prices were lower as investors waited anxiously for the Fed's interest rate announcement on Wednesday and commentary on its potential next steps. Also, weaker Chinese manufacturing data was outweighing support from OPEC+ supply cuts slated for this month.
U.S. Treasury 10-year yields were higher after falling on Friday with investors eyeing the banking sector and the busy week ahead.
While some overseas markets were closed for the May 1 holiday, U.S. investors were gearing up for earnings reports such as Apple Inc's AAPL.O, due Thursday, and data including April's U.S. non-farm payrolls report due out on Friday.
Offering some support was JPMorgan Chase & Co's JPM.N deal to buy most of the assets of First Republic BankFRC.N after regulators seized the troubled lender, marking the third major U.S. bank failure in two months.
"It clears up the most recent bank uncertainty," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. But Pavlik noted that there's still "good reason to sit back and remain on hold until we get through this week."
"You've a whole stew of data coming out this week. You don't know if the cioppino is going to be hot, mild or somewhere in between, which is why you have the market hanging around this unchanged level," said Pavlik.
Still, Monday's data appeared to give the dollar a boost while the knee-jerk reaction from stocks was less enthusiastic.
The Dow Jones Industrial Average .DJI rose 51.23 points, or 0.15%, to 34,149.39, the S&P 500 .SPX gained 0.19 points, or 0.00%, to 4,169.67 and the Nasdaq Composite .IXIC dropped 35.82 points, or 0.29%, to 12,190.76.
The pan-European STOXX 600 index .STOXX rose 0.02% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.07%. Emerging market stocks .MSCIEF lost 0.10%.
Also, U.S. construction spending increased more than expected in March, boosted by investment in non-residential structures, but single-family homebuilding remained depressed.
In currencies, the dollar index =USD rose 0.383%, with the euro EUR= down 0.45% to $1.097. The Japanese yen weakened 0.78% versus the greenback at 137.35 per dollar, while sterling GBP= was last trading at $1.2498, down 0.59% on the day.
In Treasuries, yields on benchmark 10-year notes US10YT=RR were up 9.7 basis points to 3.549%, from 3.452% late on Friday. The 30-year bond yield US30YT=RR was last up 11.8 basis points at 3.7955%. The yield on the 2-year note US2YT=RR was last was up 7.3 basis points at 4.1366%.
U.S. crude CLc1 fell 2.14% to $75.14 per barrel and Brent LCOc1 was at $78.84, down 1.85% on the day.
Gold gave up all of its gains in volatile trading after the better-than-expected U.S. manufacturing data.
Spot gold XAU= dropped 0.4% to $1,982.50 an ounce while U.S. gold futures GCc1 fell 0.18% to $1,986.60 an ounce.
(Reporting By Sinéad Carew Editing by Christina Fincher)
((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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While some overseas markets were closed for the May 1 holiday, U.S. investors were gearing up for earnings reports such as Apple Inc's AAPL.O, due Thursday, and data including April's U.S. non-farm payrolls report due out on Friday. By Sinéad Carew May 1 (Reuters) - The S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports. Crude oil prices were lower as investors waited anxiously for the Fed's interest rate announcement on Wednesday and commentary on its potential next steps.
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While some overseas markets were closed for the May 1 holiday, U.S. investors were gearing up for earnings reports such as Apple Inc's AAPL.O, due Thursday, and data including April's U.S. non-farm payrolls report due out on Friday. By Sinéad Carew May 1 (Reuters) - The S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports. In currencies, the dollar index =USD rose 0.383%, with the euro EUR= down 0.45% to $1.097.
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While some overseas markets were closed for the May 1 holiday, U.S. investors were gearing up for earnings reports such as Apple Inc's AAPL.O, due Thursday, and data including April's U.S. non-farm payrolls report due out on Friday. By Sinéad Carew May 1 (Reuters) - The S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports. The Dow Jones Industrial Average .DJI rose 51.23 points, or 0.15%, to 34,149.39, the S&P 500 .SPX gained 0.19 points, or 0.00%, to 4,169.67 and the Nasdaq Composite .IXIC dropped 35.82 points, or 0.29%, to 12,190.76.
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While some overseas markets were closed for the May 1 holiday, U.S. investors were gearing up for earnings reports such as Apple Inc's AAPL.O, due Thursday, and data including April's U.S. non-farm payrolls report due out on Friday. By Sinéad Carew May 1 (Reuters) - The S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports. Emerging market stocks .MSCIEF lost 0.10%.
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16102.0
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2023-05-01 00:00:00 UTC
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Apple (AAPL) to Report Q2 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-report-q2-earnings%3A-whats-in-the-offing-0
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nan
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nan
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Apple AAPL is set to report its second-quarter fiscal 2023 results on May 4.
The company expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex.
The Zacks Consensus Estimate for revenues is currently pegged at $93.32 billion, indicating a decline of 4.07% from the year-ago quarter’s reported figure.
The consensus mark for earnings is currently pegged at $1.44 per share, unchanged over the past 30 days and indicating a 5.26% decrease from the figure reported in the year-ago quarter.
Apple’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 2.84% on average.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
iPhone Revenues to Suffer From Low Demand
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 56.1% of net sales in the last reported quarter, wherein sales decreased 8.2% year over year to $65.78 billion.
The Zacks Consensus Estimate for fiscal second-quarter iPhone net sales is pegged at $49.61 billion, down 1.9% year over year.
We expect Apple to have shipped roughly 65 million iPhones in the second quarter of fiscal 2023. It is expected to have suffered from low smartphone demand.
Per the latest Canalys report on worldwide smartphone shipments, Apple’s market share contracted to 21% in first-quarter 2022 from 25% in fourth-quarter 2022, lagging Samsung’s 24%.
Services Growth to Slow Down in Q2
For the fiscal second quarter, Services revenues are expected to grow year over year despite challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
In the fiscal first quarter, Services revenues grew 6.4% from the year-ago quarter to $20.77 billion and accounted for 17.7% of sales.
Nevertheless, an expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store.
Apple has more than 935 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows. The company’s animation movie The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film.
Apple’s impressive run at the Oscars has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN Prime Video, Netflix NFLX and Disney’s DIS Disney+.
Apple shares have outperformed Amazon, Netflix and Disney year to date. AAPL returned 30.6% while AMZN, NFLX and DIS returned 25.5%, 18% and 11.9%, respectively.
The company has been keeping no stone unturned to make the TV+ service a success. At a much more affordable price of $4.99, Apple TV+ has been benefiting from quality content with its strong portfolio of original shows and movies.
Our estimate for fiscal second-quarter Services net sales is pegged at $20.85 billion, up 5.2% year over year, lower than the 6.4% growth reported in the previous quarter and 23.8% in the year-ago quarter.
Wearables’ Growth to Remain Strong
Apple has been dominating the wearables market, thanks to the strong adoption of the Apple Watch.
This Zacks Rank #3 (Hold) company’s Fitness+ subscription service, built on Apple Watch, has been a game changer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Fitness+ tracks health and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
Apple Watch’s adoption rate has been growing rapidly. More than two-thirds of customers, who purchased it in the first quarter of fiscal 2023, were first-time customers.
The Zacks Consensus Estimate for Wearables, Home and Accessories is currently pegged at $8.25 billion, down 38.8% sequentially.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report its second-quarter fiscal 2023 results on May 4. AAPL returned 30.6% while AMZN, NFLX and DIS returned 25.5%, 18% and 11.9%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : 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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its second-quarter fiscal 2023 results on May 4. AAPL returned 30.6% while AMZN, NFLX and DIS returned 25.5%, 18% and 11.9%, respectively.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its second-quarter fiscal 2023 results on May 4. AAPL returned 30.6% while AMZN, NFLX and DIS returned 25.5%, 18% and 11.9%, respectively.
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Apple AAPL is set to report its second-quarter fiscal 2023 results on May 4. AAPL returned 30.6% while AMZN, NFLX and DIS returned 25.5%, 18% and 11.9%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16103.0
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2023-05-01 00:00:00 UTC
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US STOCKS-S&P, Dow edge higher as JPMorgan gains; Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-dow-edge-higher-as-jpmorgan-gains-fed-meet-in-focus
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nan
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nan
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By Ankika Biswas and Sruthi Shankar
May 1 (Reuters) - The S&P 500 and the Dow edged higher on Monday as JPMorgan rose after the bank said it will buy most of First Republic Bank's assets, while caution prevailed ahead of the Federal Reserve's policy decision later this week.
JPMorgan Chase & Co's JPM.N shares rose 3.1% to a near two-month high after the deal was announced earlier in the day. The S&P 500 Banks index .SPXBK gained 1.1%, while the KBW Regional Banking index .KRX shed 1.5%.
Shares of regional banks PNC Financial PNC.N and Citizens Financial CFG.N, that were among the bidders for First Republic, dropped 4.7% and 5.2%, respectively.
The rescue comes less than two months after a deposit flight from U.S. lenders Silicon Valley Bank and Signature Bank forced the Fed to step in with emergency measures to stabilize markets.
"The positive reaction in (JPM) stock is in part a positive reaction to the stabilization in the sector, as much as any kind of advantage gained from the purchase," said Rick Meckler, partner at Cherry Lane Investments.
"But regional banks will face higher cost of doing business for some time until confidence is rebuilt or there is a different regulatory scheme."
Weighing on the market, energy stocks .SPNY fell 1.3% as crude pricesLCOc1, CLc1 dropped nearly 2%, hurt by weak economic data from China and expectations of another U.S. interest rate hike.
Investors are keenly awaiting the conclusion of the Fed's two-day policy meeting on Wednesday for signs that its aggressive monetary policy tightening is coming to an end soon.
Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in a 90% chance of such a move, according to CME Group's FedWatch tool.
First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O helped the benchmark S&P 500 .SPX notch its second consecutive month of gain on Friday.
Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data. Apple Inc AAPL.O is set to report later this week.
At 12:15 a.m. ET, the Dow Jones Industrial Average .DJI was up 87.32 points, or 0.26%, at 34,185.48, the S&P 500 .SPX was up 7.79 points, or 0.19%, at 4,177.27, and the Nasdaq Composite .IXIC was down 2.45 points, or 0.02%, at 12,224.14.
Data on Monday showed U.S. manufacturing pulled off a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed, raising the risk of a recession this year.
Norwegian Cruise Line Holdings NCLH.N rose 8.1% after raising its full-year profit forecast, betting on higher pricing and pent-up demand from wealthy customers.
General Motors Co GM.Ngained 2.4% following reports that Morgan Stanley upgraded the company's shares. The automaker also laid off several hundred full-time contract workers over the weekend including at its engineering hub in suburban Detroit.
Declining issues outnumbered advancers for a 1.05-to-1 ratio on the NYSE. Advancing issues outnumbered decliners for a 1.03-to-1 ratio on the Nasdaq.
The S&P index recorded 32 new 52-week highs and one new low, while the Nasdaq recorded 69 new highs and 107 new lows.
(Reporting by Ankika Biswas and Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty 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 is set to report later this week. Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in a 90% chance of such a move, according to CME Group's FedWatch tool. First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O helped the benchmark S&P 500 .SPX notch its second consecutive month of gain on Friday.
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Apple Inc AAPL.O is set to report later this week. The S&P 500 Banks index .SPXBK gained 1.1%, while the KBW Regional Banking index .KRX shed 1.5%. Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in a 90% chance of such a move, according to CME Group's FedWatch tool.
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Apple Inc AAPL.O is set to report later this week. By Ankika Biswas and Sruthi Shankar May 1 (Reuters) - The S&P 500 and the Dow edged higher on Monday as JPMorgan rose after the bank said it will buy most of First Republic Bank's assets, while caution prevailed ahead of the Federal Reserve's policy decision later this week. The S&P 500 Banks index .SPXBK gained 1.1%, while the KBW Regional Banking index .KRX shed 1.5%.
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Apple Inc AAPL.O is set to report later this week. The S&P 500 Banks index .SPXBK gained 1.1%, while the KBW Regional Banking index .KRX shed 1.5%. Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in a 90% chance of such a move, according to CME Group's FedWatch tool.
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16104.0
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2023-05-01 00:00:00 UTC
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TQQQ, UCYB: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-ucyb%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 13,850,000 units were destroyed, or a 2.8% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is down about 0.4%, and Microsoft is lower by about 0.3%.
And on a percentage change basis, the ETF with the biggest outflow was the ProShares Ultra Nasdaq Cybersecurity, which lost 30,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior.
VIDEO: TQQQ, UCYB: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in morning trading today Apple is down about 0.4%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares Ultra Nasdaq Cybersecurity, which lost 30,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: TQQQ, UCYB: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 13,850,000 units were destroyed, or a 2.8% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the ProShares Ultra Nasdaq Cybersecurity, which lost 30,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: TQQQ, UCYB: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 13,850,000 units were destroyed, or a 2.8% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the ProShares Ultra Nasdaq Cybersecurity, which lost 30,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: TQQQ, UCYB: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 13,850,000 units were destroyed, or a 2.8% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is down about 0.4%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares Ultra Nasdaq Cybersecurity, which lost 30,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior.
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16105.0
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2023-05-01 00:00:00 UTC
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Big Week for Q1 Earnings, Jobs, etc.
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AAPL
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https://www.nasdaq.com/articles/big-week-for-q1-earnings-jobs-etc.
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nan
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nan
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Monday, May 1st, 2023
Who ordered the busy week for market participants? Your shipment is in. The heaviest week yet of Q1 earnings joins with Jobs Week — ADP (ADP) private-sector payrolls Wednesday and U.S. Bureau of Labor Statistics (BLS) nonfarm payrolls Friday, not to mention a new JOLTS report tomorrow and Weekly Jobless Claims Thursday — and the latest monetary policy meeting from the Federal Open Market Committee (FOMC).
First things first, however: the final shoe has dropped for First Republic Bank (FRC), the third Silicon Valley area bank to go under in the past two months. Assets and deposits are being seized by regulators, to be absorbed by JPMorgan JPM, which won itself a bargain even if we don’t see a ripple in the banking giant’s numbers as of its Q2 earnings report. This comes highly reminiscent of when Silicon Valley Bank (SVB) was seized by First Citizens Bank FCNCA directly before the last FOMC meeting.
We don’t expect Wednesday’s decision on interest rates to change from the previously indicated +25 basis points (bps), going back to the Fed’s dot-plot this past winter. This would bring the Fed funds rate to 5.00-5.25%, the highest we’ve seen since prior to the financial crisis ahead of the Great Recession 15 years ago. Inflation metrics have been deflating gradually overall, but consensus is strong the Fed feels it can add another quarter-point — at least. Analysts will be parsing closely the language pertaining to possible further increases in June and beyond.
Markets are flat to start a new trading week on these prospects. Last week was positive for three out of the four major indices (only the mall-cap Russell 2000 dropped nearly 1% over the past five trading days), with strong tech earnings giving the Nasdaq a boost to +2 1/4%. With so much to take in this week — including more than 1600 companies reporting earnings this week, featuring Apple AAPL on Thursday afternoon — it makes sense that traders will keep some powder dry at this early point in the trading week.
Once the market opens, both S&P and ISM Manufacturing PMI numbers come out. Both are expected to tack upward from previous levels; we saw cycle lows in last month’s ISM Manufacturing report, while S&P PMI bottomed out in December of last year. Importantly, S&P PMI is expected to cross over the 50-point threshold between growth and loss, while ISM looks to bounce off lows of 46.3%, but only by 40 bps. That said, these metrics, while demonstrating some relative weakness, are not shabby enough to change the Fed’s mind on rate policy.
Also, its semiconductor week on Q1 earnings, with Lattice Semi LSCC, NXP Semi NXPI and ON Semi ON all putting out results after today’s closing bell. Advance Micro Devices AMD puts out its numbers tomorrow.
Questions or comments about this article and/or its author? Click here>>
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With so much to take in this week — including more than 1600 companies reporting earnings this week, featuring Apple AAPL on Thursday afternoon — it makes sense that traders will keep some powder dry at this early point in the trading week. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Assets and deposits are being seized by regulators, to be absorbed by JPMorgan JPM, which won itself a bargain even if we don’t see a ripple in the banking giant’s numbers as of its Q2 earnings report.
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. With so much to take in this week — including more than 1600 companies reporting earnings this week, featuring Apple AAPL on Thursday afternoon — it makes sense that traders will keep some powder dry at this early point in the trading week. Also, its semiconductor week on Q1 earnings, with Lattice Semi LSCC, NXP Semi NXPI and ON Semi ON all putting out results after today’s closing bell.
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With so much to take in this week — including more than 1600 companies reporting earnings this week, featuring Apple AAPL on Thursday afternoon — it makes sense that traders will keep some powder dry at this early point in the trading week. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. The heaviest week yet of Q1 earnings joins with Jobs Week — ADP (ADP) private-sector payrolls Wednesday and U.S. Bureau of Labor Statistics (BLS) nonfarm payrolls Friday, not to mention a new JOLTS report tomorrow and Weekly Jobless Claims Thursday — and the latest monetary policy meeting from the Federal Open Market Committee (FOMC).
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. With so much to take in this week — including more than 1600 companies reporting earnings this week, featuring Apple AAPL on Thursday afternoon — it makes sense that traders will keep some powder dry at this early point in the trading week. Once the market opens, both S&P and ISM Manufacturing PMI numbers come out.
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16106.0
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2023-05-01 00:00:00 UTC
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After Hours Most Active for May 1, 2023 : AAPL, FRC, AMZN, TLT, BUG, TQQQ, VNO, CHGG, GOOGL, UBER, T, MGM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-1-2023-%3A-aapl-frc-amzn-tlt-bug-tqqq-vno-chgg-googl-uber-t
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The NASDAQ 100 After Hours Indicator is down -9.3 to 13,222.17. The total After hours volume is currently 58,261,591 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.09 at $169.68, with 2,199,248 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 1.44 per share, which represents a 152 percent increase over the EPS one Year Ago
FIRST REPUBLIC BANK (FRC) is -1.3515 at $2.16, with 2,046,422 shares traded. FRC's current last sale is 2.31% of the target price of $93.5.
Amazon.com, Inc. (AMZN) is -0.48 at $101.57, with 2,028,470 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.33. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is +0.46 at $103.59, with 1,988,017 shares traded. This represents a 12.78% increase from its 52 Week Low.
Global X Cybersecurity ETF (BUG) is +0.0143 at $21.24, with 1,615,060 shares traded. This represents a 8.5% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.02 at $28.15, with 1,596,487 shares traded. This represents a 74.84% increase from its 52 Week Low.
Vornado Realty Trust (VNO) is unchanged at $14.68, with 1,345,707 shares traded. VNO's current last sale is 81.56% of the target price of $18.
Chegg, Inc. (CHGG) is -5.62 at $11.98, with 1,330,225 shares traded. CHGG's current last sale is 57.05% of the target price of $21.
Alphabet Inc. (GOOGL) is -0.06 at $107.14, with 1,280,689 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.33. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Uber Technologies, Inc. (UBER) is +0.12 at $32.86, with 1,213,079 shares traded.UBER is scheduled to provide an earnings report on 5/2/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is -0.1 per share, which represents a -304 percent increase over the EPS one Year Ago
AT&T Inc. (T) is unchanged at $17.50, with 1,188,616 shares traded. T's current last sale is 79.55% of the target price of $22.
MGM Resorts International (MGM) is +0.66 at $46.70, with 842,113 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.04. Smarter Analyst Reports: Honeywell Talks About Growth Potential, Long-Term Targets at Investor Conference
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.09 at $169.68, with 2,199,248 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. iShares 20+ Year Treasury Bond ETF (TLT) is +0.46 at $103.59, with 1,988,017 shares traded. Smarter Analyst Reports: Honeywell Talks About Growth Potential, Long-Term Targets at Investor Conference The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.09 at $169.68, with 2,199,248 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 1.44 per share, which represents a 152 percent increase over the EPS one Year Ago Uber Technologies, Inc. (UBER) is +0.12 at $32.86, with 1,213,079 shares traded.UBER is scheduled to provide an earnings report on 5/2/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is +0.09 at $169.68, with 2,199,248 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 1.44 per share, which represents a 152 percent increase over the EPS one Year Ago Uber Technologies, Inc. (UBER) is +0.12 at $32.86, with 1,213,079 shares traded.UBER is scheduled to provide an earnings report on 5/2/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is +0.09 at $169.68, with 2,199,248 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. Amazon.com, Inc. (AMZN) is -0.48 at $101.57, with 2,028,470 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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16107.0
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2023-05-01 00:00:00 UTC
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Big Tech Earnings: Time to Take Another Bite of Apple?
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AAPL
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https://www.nasdaq.com/articles/big-tech-earnings%3A-time-to-take-another-bite-of-apple
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nan
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Earnings season has been in high gear for some time now, with a feared ‘earnings apocalypse’ failing to materialize.
Last week, as many are highly aware, big-tech stole the spotlight, posting results that had the market celebrating and helping keep sentiment lifted heading into this week’s FOMC meeting.
We now have four quarterly prints from the ‘Big 5 Tech Players’, a list that includes Meta Platforms META, Alphabet GOOGL, Microsoft MSFT, Amazon AMZN.
And then there’s Apple AAPL, the last of the group slated to report and arguably the most important of the five. The company will reveal its quarterly results this Thursday, May 4th, after the market’s close.
All styles of investors will be tuning into the quarterly results, as Apple carries the biggest weight in the S&P 500, roughly 7%. Let’s take a closer look at how the mega-cap titan stacks up heading into its quarterly release.
Quarterly Estimates
Since February of this year, the quarterly EPS estimate for Apple’s upcoming release has been revised 0.7% higher to $1.44 per share, with the value reflecting a modest 5.3% year-over-year pullback in earnings.
Image Source: Zacks Investment Research
Regarding the top line, our consensus estimate of $93.3 billion implies a 4% pullback from the year-ago quarter, with analysts revising their quarterly expectations marginally lower since February.
Image Source: Zacks Investment Research
Of course, iPhone revenue will be a focus. Currently, the Zacks Consensus estimate for iPhone revenue sits at $49.6 billion, implying a slight pullback year-over-year. In addition, it’s worth noting that the company has delivered back-to-back negative surprises within this metric.
iPhone Revenue - Surprise %
Image Source: Zacks Investment Research
While iPhone revenue remains important, the company’s Services results will also be closely watched, which includes cloud services, the App store, Apple Music, Apple Pay, and several others. Overall, Apple’s services have gained significant traction and have become a big contributor to the top line.
For the quarter, the Zacks Consensus estimate for Services net sales sits at $20.9 billion, implying growth of 5.5% from the year-ago period. As we can see in the chart below, Apple snapped a negative streak of surprises within the metric in its latest release.
Image Source: Zacks Investment Research
Quarterly Performance
Apple posted results that came in under expectations in its latest release, snapping a long streak of positive surprises on the top and bottom lines. The company reported earnings of $1.88 per share, 2.5% below the Zacks Consensus EPS estimate.
Further, quarterly revenue totaled $117.1 billion, again falling short of expectations by roughly 3.3%. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
As we can see in the chart below, the market has had somewhat mixed reactions to Apple’s quarterly results post-earnings.
Image Source: Zacks Investment Research
Valuation
Apple shares could be seen as a bit expensive, with the 28.2X forward earnings multiple sitting above the 24.2X five-year median by a fair margin. Still, the value remains well below highs of 31.3X in 2022.
Image Source: Zacks Investment Research
Further, the company’s forward price-to-sales ratio presently works out to be 6.9X, again above the 5.8X five-year median and the Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
Bottom Line
Investors of all styles will be tuning into Apple’s AAPL quarterly print, as the stock is one of the most important regarding the direction of the general market.
We’ve already gotten results from the other big-tech guys, including Alphabet GOOGL, Microsoft MSFT, Amazon AMZN, and Meta Platforms META. All five stocks have staged big rebounds in 2023 so far following a forgettable 2022.
Heading into the quarterly release, Apple is a Zacks Rank #3 (Hold) with an Earnings ESP Score of -0.3%.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Bottom Line Investors of all styles will be tuning into Apple’s AAPL quarterly print, as the stock is one of the most important regarding the direction of the general market. And then there’s Apple AAPL, the last of the group slated to report and arguably the most important of the five. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. And then there’s Apple AAPL, the last of the group slated to report and arguably the most important of the five. Image Source: Zacks Investment Research Bottom Line Investors of all styles will be tuning into Apple’s AAPL quarterly print, as the stock is one of the most important regarding the direction of the general 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. And then there’s Apple AAPL, the last of the group slated to report and arguably the most important of the five. Image Source: Zacks Investment Research Bottom Line Investors of all styles will be tuning into Apple’s AAPL quarterly print, as the stock is one of the most important regarding the direction of the general market.
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Image Source: Zacks Investment Research Bottom Line Investors of all styles will be tuning into Apple’s AAPL quarterly print, as the stock is one of the most important regarding the direction of the general market. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. And then there’s Apple AAPL, the last of the group slated to report and arguably the most important of the five.
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16108.0
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2023-05-01 00:00:00 UTC
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US judge declares mistrial in Apple-Masimo smartwatch trade secrets fight
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AAPL
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https://www.nasdaq.com/articles/us-judge-declares-mistrial-in-apple-masimo-smartwatch-trade-secrets-fight
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nan
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By Blake Brittain
May 1 (Reuters) - A U.S. judge in California on Monday declared a mistrial in Masimo Corp's MASI.O potential billion-dollar smartwatch trade secret lawsuit against Apple Inc AAPL.O after jurors failed to reach a unanimous verdict, multiple media outlets reported.
The jury in federal court in Santa Ana could not determine whether Cupertino, California-based Apple misused confidential information from Masimo related to the use of light to measure biomarkers including heart rates and blood-oxygen levels, U.S. District Judge James Selna said.
The jury began deliberating on April 26 after a trial lasting about three weeks.
Apple said in a statement that it "deeply respects intellectual property and innovation and does not take or use confidential information from other companies," and will ask the court to dismiss remaining claims in the case.
A Masimo spokesperson did not immediately respond to requests for comment.
Irvine, California-based Masimo and its spinoff Cercacor Laboratories Inc sued Apple in 2020, accusing it of stealing trade secrets and using them to create and sell several Apple Watch models.
The lawsuit claimed Masimo representatives met with Apple in 2013 about integrating its inventions into Apple products and that Apple subsequently hired away two executives - one from Masimo and one from Cercacor - and used their knowledge to copy the technology.
Masimo asked for more than $1.8 billion in damages, reduced from its initial request for $3.1 billion after the judge dismissed some of its trade-secret claims during trial.
Apple in a court filing called Masimo's lawsuit a "maneuver to clear a path" for its own smartwatch. Apple sued Masimo in Delaware last year, accusing it of patent infringement.
Smartwatches, mobile devices worn on the wrist with an array of capabilities, are a lucrative market, with global sales worth tens of billions of dollars.
Masimo has also sued Apple at the U.S. International Trade Commission over Apple Watch imports that it said violated its patent rights. An ITC judge preliminarily ruled in favor of Masimo in January, which could lead to an import ban on infringing Apple Watches if the full commission affirms the decision.
Apple is facing another potential Apple Watch import ban in a separate patent fight with Mountain View, California-based medical device maker AliveCor Inc over heart-monitoring technology.
(Reporting by Blake Brittain and Stephen Nellis; Editing by Christopher Cushing)
((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 Blake Brittain May 1 (Reuters) - A U.S. judge in California on Monday declared a mistrial in Masimo Corp's MASI.O potential billion-dollar smartwatch trade secret lawsuit against Apple Inc AAPL.O after jurors failed to reach a unanimous verdict, multiple media outlets reported. The jury in federal court in Santa Ana could not determine whether Cupertino, California-based Apple misused confidential information from Masimo related to the use of light to measure biomarkers including heart rates and blood-oxygen levels, U.S. District Judge James Selna said. An ITC judge preliminarily ruled in favor of Masimo in January, which could lead to an import ban on infringing Apple Watches if the full commission affirms the decision.
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By Blake Brittain May 1 (Reuters) - A U.S. judge in California on Monday declared a mistrial in Masimo Corp's MASI.O potential billion-dollar smartwatch trade secret lawsuit against Apple Inc AAPL.O after jurors failed to reach a unanimous verdict, multiple media outlets reported. Masimo has also sued Apple at the U.S. International Trade Commission over Apple Watch imports that it said violated its patent rights. Apple is facing another potential Apple Watch import ban in a separate patent fight with Mountain View, California-based medical device maker AliveCor Inc over heart-monitoring technology.
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By Blake Brittain May 1 (Reuters) - A U.S. judge in California on Monday declared a mistrial in Masimo Corp's MASI.O potential billion-dollar smartwatch trade secret lawsuit against Apple Inc AAPL.O after jurors failed to reach a unanimous verdict, multiple media outlets reported. Irvine, California-based Masimo and its spinoff Cercacor Laboratories Inc sued Apple in 2020, accusing it of stealing trade secrets and using them to create and sell several Apple Watch models. The lawsuit claimed Masimo representatives met with Apple in 2013 about integrating its inventions into Apple products and that Apple subsequently hired away two executives - one from Masimo and one from Cercacor - and used their knowledge to copy the technology.
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By Blake Brittain May 1 (Reuters) - A U.S. judge in California on Monday declared a mistrial in Masimo Corp's MASI.O potential billion-dollar smartwatch trade secret lawsuit against Apple Inc AAPL.O after jurors failed to reach a unanimous verdict, multiple media outlets reported. The jury in federal court in Santa Ana could not determine whether Cupertino, California-based Apple misused confidential information from Masimo related to the use of light to measure biomarkers including heart rates and blood-oxygen levels, U.S. District Judge James Selna said. Masimo has also sued Apple at the U.S. International Trade Commission over Apple Watch imports that it said violated its patent rights.
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16109.0
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2023-05-01 00:00:00 UTC
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2 Robinhood Stocks With Market-Beating Potential
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AAPL
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https://www.nasdaq.com/articles/2-robinhood-stocks-with-market-beating-potential-6
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With its commission-free trading and simplified investment experience, Robinhood Markets emerged over the past several years as a game-changing investment platform for retail investors. One of the services Robinhood offers is a regularly updated list of the top 100 stock holdings of its millions of users. This list provides some insight into what stocks retail investors are buying the most in any given month.
While this list includes some stocks that are speculative trades in whatever meme is popular at the moment, many of the most popular stocks among Robinhood users are in quality companies with solid growth prospects. Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) are popular stocks on the list that also have serious market-beating potential. These two tech giants are excellent cash-flow producers looking to capitalize on an industry that could be worth $13 trillion by 2030. Let's find out a bit more about these two market-beaters.
1. Meta Platforms
Meta Platforms is known for its popular social media platforms, including Facebook, Instagram, and WhatsApp. The company is the second-largest digital advertiser by revenue in the U.S., trailing only Alphabet's Google. In the first quarter, it had over 3.8 billion monthly active users across its family of apps.
In 2022 the company struggled due to rising expenses and slowing growth for its digital advertising efforts. Following its third-quarter earnings report release, the stock fell as low as $88 per share. Since that low point, CEO Mark Zuckerberg has worked on a turnaround of the company. He revealed Meta would be cutting expenses ruthlessly and focusing on high-conviction opportunities.
In November, the company announced 10,000 layoffs, kick-starting a shift toward a "year of efficiency." Earlier this year, the stock popped following its first-quarter 2023 earnings amid revenue growth, better-than-expected second-quarter earnings forecasts, and lower-than-expected expense estimates for the year.
Meta is well positioned in the digital advertising space, which is expected to grow from $521 billion in 2021 to $876 billion by 2026, according to eMarketer. However, what has me most excited is a business segment that is currently losing Meta billions of dollars per year: the metaverse.
Image source: Getty Images.
Last year, its Reality Labs segment, which accounts for metaverse and virtual reality products, lost $13.7 billion. In the first quarter, this segment lost another $4 billion. While its pursuit of the metaverse seems like a money drain, the industry still has the potential to be explosive. According to one estimate by Citigroup, by 2030, the metaverse economy could be worth anywhere from $8 trillion to $13 trillion.
Getting there will require significant investments, which Meta is making today. Reality Labs is likely to remain a money-losing venture for Meta in the coming years. However, its dominant position in digital advertising and stellar cash flows positioned Meta well to deliver market-beating returns over the long haul, with its metaverse venture giving it further upside potential.
2. Apple
Apple stock is tops across several categories. It's the largest stock (by market cap) in the S&P 500 index, the largest holding in Berkshire Hathaway's portfolio of publicly traded companies, and the world's most valuable brand, according to Interbrand.
The company's product offerings include hardware like the MacBook, iPhone, and iPad. Last year, the iPhone grew its share of the U.S. smartphone active user market to 50%, overtaking Android for the top spot. It also sells accessories for those products, including its Airpods and Apple Watch. It also makes money from its services business, which includes iCloud, digital content, and payments, among other services.
Apple is a free-cash-flow behemoth, generating $97 billion last year. This is cash it can use to reinvest in the business, pay dividends, and buy back stock. Apple has spent substantial capital buying back stock over the past 10 years. Since 2013, it has spent $549 billion on buybacks, reducing its share count by 37% -- and it still has over $20 billion in cash on its balance sheet.
AAPL Free Cash Flow data by YCharts. TTM = trailing 12 months.
Analysts expect Apple to announce its virtual reality headset during its June Worldwide Developers Conference. According to a report by Bloomberg, the headset will run hundreds of thousands of apps, including its flagship Camera, FaceTime, and Messaging apps. Users will also reportedly be able to watch sports and use it for fitness workouts.
Apple's strong brand and stellar cash flows ensure it can continue innovating and rewarding its investors, making it another solid stock for the long haul.
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*Stock Advisor returns as of April 24, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Courtney Carlsen has positions in Apple. 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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Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) are popular stocks on the list that also have serious market-beating potential. AAPL Free Cash Flow data by YCharts. Last year, the iPhone grew its share of the U.S. smartphone active user market to 50%, overtaking Android for the top spot.
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Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) are popular stocks on the list that also have serious market-beating potential. AAPL Free Cash Flow data by YCharts. Last year, its Reality Labs segment, which accounts for metaverse and virtual reality products, lost $13.7 billion.
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Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) are popular stocks on the list that also have serious market-beating potential. AAPL Free Cash Flow data by YCharts. While this list includes some stocks that are speculative trades in whatever meme is popular at the moment, many of the most popular stocks among Robinhood users are in quality companies with solid growth prospects.
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Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) are popular stocks on the list that also have serious market-beating potential. AAPL Free Cash Flow data by YCharts. Meta is well positioned in the digital advertising space, which is expected to grow from $521 billion in 2021 to $876 billion by 2026, according to eMarketer.
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2023-05-01 00:00:00 UTC
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Amazon, Alphabet, Apple, Meta and Microsoft are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/amazon-alphabet-apple-meta-and-microsoft-are-part-of-zacks-earnings-preview-1
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For Immediate Release
Chicago, IL – May 1, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Meta META and Microsoft MSFT.
Breaking Down Big Tech Earnings
The market’s contrasting reactions to Q1 results from four of the ‘Big 5 Tech Players’ – Amazon, Alphabet, Meta & Microsoft – provides us a window into what market participants see as essential for these stocks to maintain their recent price momentum. Apple will report Q1 results on Thursday, May 4th.
All of these stocks have been standout performers in 2023. Meta Platforms’ shares were in a league of their own regarding stock market performance, which got a further boost following the Q1 results. The magnitude of the positive reaction to Microsoft’s results wasn’t nearly as strong as it was for Meta, but it was nevertheless very favorable. Amazon and Alphabet shares lost ground following their quarterly releases, although they both exceeded estimates.
The key differentiator among Amazon, Microsoft, and Alphabet are trends in their respective cloud businesses and the perceived headway that each of them is making on the artificial intelligence (AI) front.
The market likes what it is seeing and hearing from Microsoft on both of these fronts and appears somewhat unconvinced of Alphabet and Amazon’s AI efforts. We all know that cloud spending is coming down, but Microsoft is not only seen as gaining share at the expense of Amazon Web Services but is also perceived as getting a growth boost from its AI capabilities.
Looking at the ‘Big 5 Tech Players’ as a whole, combining estimates for Apple with actual results from the others that have reported already, total Q1 earnings for the group are expected to be down -2.5% on +3.8% higher revenues. This is significantly better than the -11.2% decline in earnings on +1.9% higher revenues expected just a week back ahead of these results.
A better-than-expected showing from Apple this week, which is expected to bring in -9.1% lower earnings in Q1 on -4.1% lower revenues, could potentially push the group’s growth rate into positive territory.
With top-line growth hard to come by due to macro factors, the group has responded to the market’s persistent worries about cost controls by announcing payroll reductions. There is a general feeling in the market that all of them could do more on that front, but their steps are nevertheless helping stabilize their margins picture.
Net margins for the group were down -458 basis points in 2022 but are expected to modestly nudge higher in 2023 and improve further in 2024. That said, current net margins embedded in consensus estimates for the next two years remain below the 2021 level. That said, the 2023 net margin estimate of 18% for the group is above the pre-Covid 2019 level of 17.6%.
Beyond the big 5 Tech players, total Q1 earnings for the Technology sector as a whole are expected to be down -13.2% from the same period last year on -3.6% lower revenues.
This big-picture view of the ‘Big 5’ players and the sector as a whole highlight the earnings growth challenge at present. The Tech space is expected to resume its growth-engine status from next year onwards.
Q1 Earnings Season Scorecard
Including all the quarterly reports released through Friday, April 28th, we now have Q1 earnings from 267 S&P 500 members, or 53.4% of the index’s total membership. Total earnings for these companies are down -2.4% from the same period last year on +4.1% higher revenues, with 77.2% beating EPS estimates and 73% beating revenue estimates. The proportion of these companies beating both EPS and revenue estimates is 59.9%.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q1 earnings season as good enough; not great, but not bad either. With results from more than half of the S&P 500 members already out, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears were warning us of.
The way we see it, the ‘better-than-feared’ view of the Q1 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We have a super busy reporting docket this week, with almost 1150 companies reporting Q1 results, including 159 S&P 500 members. In addition to the aforementioned earnings release from Apple, this week’s docket has representation from every sector of the economy.
Below, we compare the Q1 results thus far from what we have seen from this same group of 90 index members in other recent periods.
The Earnings Big Picture
2023 Q1 earnings are expected to be down -5.7% on +2.8% higher revenues. This would follow the -5.4% earnings decline in the preceding period (2022 Q4) on +5.9% higher revenues.
Embedded in these 2023 Q1 earnings and revenue growth projections is the expectation of continued margin pressures, a recurring theme in recent quarters.
Actual results are proving a lot better on the margins front relative to what was expected ahead of the releases.
Estimates for Q1 came down as the quarter got underway, in line with the trend that had been in place since the start of 2022. That said, the magnitude of negative revisions to Q1 estimates was smaller relative to what we had seen in the preceding two periods.
Estimates for full-year 2023 have also been coming down as well, as we have been pointing out consistently in these pages.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>2023 Q1 Earnings: Good Enough, but not Great
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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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This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Meta META and Microsoft MSFT. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The key differentiator among Amazon, Microsoft, and Alphabet are trends in their respective cloud businesses and the perceived headway that each of them is making on the artificial intelligence (AI) front.
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This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Meta META and Microsoft MSFT. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Breaking Down Big Tech Earnings The market’s contrasting reactions to Q1 results from four of the ‘Big 5 Tech Players’ – Amazon, Alphabet, Meta & Microsoft – provides us a window into what market participants see as essential for these stocks to maintain their recent price momentum.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Meta META and Microsoft MSFT. Breaking Down Big Tech Earnings The market’s contrasting reactions to Q1 results from four of the ‘Big 5 Tech Players’ – Amazon, Alphabet, Meta & Microsoft – provides us a window into what market participants see as essential for these stocks to maintain their recent price momentum.
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This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Meta META and Microsoft MSFT. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the ‘Big 5 Tech Players’ as a whole, combining estimates for Apple with actual results from the others that have reported already, total Q1 earnings for the group are expected to be down -2.5% on +3.8% higher revenues.
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2023-05-01 00:00:00 UTC
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The Little Secret About Earnings
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AAPL
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https://www.nasdaq.com/articles/the-little-secret-about-earnings
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TLDR: At first, they seemed like a blowout: Amazon results last Thursday floored the market. Shares rocketed higher. When the earnings call revealed its cloud business was growing at its lowest levels ever, shares immediately dropped 4%. Tech companies are seeing growth slow from post-COVID hard-to-believe levels. But is earnings growth slowdown actually bad for stocks?
Tech companies were literally minting money during the pandemic as COVID drove dramatic behavior changes. They over-hired and over-spent as a result. Eventually, they had to confront bloated payrolls and other cost excesses as earnings growth came down faster than Icarus. They are still down a combined $372 billion in market valuation from a year ago.
When you look at the data, however, you find that a slowdown in earnings growth is not a bad thing. Not a bad thing at all…up to a point. As the chart below shows, when it comes to market performance, the “sweet spot” in earnings growth is actually somewhere between negative and positive growth.
Surprising, right?
The source of this otherwise surprising inverse relationship between the market and earnings growth rates is the stock market’s focus on several quarters into the future.
By the time earnings growth rates are extremely high—as they were until early in 2022—they have long since been reflected in stock prices. During such periods, the market has instead shifted its focus to earnings several quarters hence—to factors such as the Federal Reserve having to put the brakes on an overheating economy.
Note below the insight Toggle’s Investing Copilot generated back in March for Amazon: Analyst forecasts had become too pessimistic, suggesting that there was substantial upside if earnings didn’t turn out to be quite so bad. The rest is history.
The point is the slowdown in earnings growth we are seeing has long been anticipated. Seeing it first hand is actually cathartic for the market - and may well be how the market low is ultimately put in.
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Asset Spotlight: All Eyes on AAPL
TOGGLE analyzed 4 similar occasions in the past where prices for Apple are close to a recent high and historically this led to a median decrease in the stock over the following 1M. Read full insight!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Asset Spotlight: All Eyes on AAPL TOGGLE analyzed 4 similar occasions in the past where prices for Apple are close to a recent high and historically this led to a median decrease in the stock over the following 1M. During such periods, the market has instead shifted its focus to earnings several quarters hence—to factors such as the Federal Reserve having to put the brakes on an overheating economy. Note below the insight Toggle’s Investing Copilot generated back in March for Amazon: Analyst forecasts had become too pessimistic, suggesting that there was substantial upside if earnings didn’t turn out to be quite so bad.
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Asset Spotlight: All Eyes on AAPL TOGGLE analyzed 4 similar occasions in the past where prices for Apple are close to a recent high and historically this led to a median decrease in the stock over the following 1M. But is earnings growth slowdown actually bad for stocks? The source of this otherwise surprising inverse relationship between the market and earnings growth rates is the stock market’s focus on several quarters into the future.
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Asset Spotlight: All Eyes on AAPL TOGGLE analyzed 4 similar occasions in the past where prices for Apple are close to a recent high and historically this led to a median decrease in the stock over the following 1M. But is earnings growth slowdown actually bad for stocks? As the chart below shows, when it comes to market performance, the “sweet spot” in earnings growth is actually somewhere between negative and positive growth.
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Asset Spotlight: All Eyes on AAPL TOGGLE analyzed 4 similar occasions in the past where prices for Apple are close to a recent high and historically this led to a median decrease in the stock over the following 1M. But is earnings growth slowdown actually bad for stocks? The source of this otherwise surprising inverse relationship between the market and earnings growth rates is the stock market’s focus on several quarters into the future.
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2023-05-01 00:00:00 UTC
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If I Could Buy Only 1 Warren Buffett Stock in May, This Would Be It
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AAPL
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https://www.nasdaq.com/articles/if-i-could-buy-only-1-warren-buffett-stock-in-may-this-would-be-it
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It's a new month and a new opportunity to invest. When it comes to investing ideas, I can't think of a better fount of wisdom than Warren Buffett. His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio features plenty of great stocks.
But if I could buy only one Buffett stock in May, which one would it be? It's both a difficult and an easy decision.
Eliminating a few top contenders
Buffett's biggest position in Berkshire's portfolio by far is also my personal biggest individual stock holding -- Apple (NASDAQ: AAPL). Like Buffett, I think that Apple has great long-term prospects. Where I differ from the Oracle of Omaha, though, is in the importance of not having too many eggs in one basket. As much as I like Apple, I already own too big of a stake to feel comfortable buying even more shares right now.
My view is that Buffett's second-largest holding, Bank of America (NYSE: BAC), looks attractively valued after sinking by a double-digit percentage so far this year. The main problem with buying BofA, however, is that the dust hasn't yet settled with the turmoil that has rattled bank stocks in recent months. I expect Bank of America to rebound strongly, but it could take a while.
I also rank Amazon (NASDAQ: AMZN) as one of the best stocks to buy and hold over the long run. In particular, my prediction is that the company's Amazon Web Services (AWS) unit still has massive growth potential with the transition of apps and data to the cloud. But Amazon isn't my top Buffett stock to buy in May for reasons I'll soon explain.
Potential recession picks
The Federal Reserve seems to think that the U.S. economy will likely enter a recession this year. Many economists agree. So do I. With this in mind, I think that a few Buffett stocks should hold up relatively well.
Two of them are healthcare stocks -- Johnson & Johnson (NYSE: JNJ) and McKesson (NYSE: MCK). J&J could have an edge because it's been a longtime go-to pick for investors during times of uncertainty.
The other three are in the consumer defensive sector. The Coca-Cola Company (NYSE: KO), Buffett's longest-held stock, shouldn't miss a beat if a recession comes. Grocery giant Kroger (NYSE: KR) seems likely to perform better than most stocks in an economic downturn. Procter & Gamble (NYSE: PG) would probably be in the same boat with consumers buying its products no matter what macroeconomic conditions are.
I suspect that any of these five stocks would be great picks if a recession is right around the corner. However, none of them is my top Buffett stock to buy this month.
My top Buffett stock for May
Don't worry -- I won't try to build the suspense further. If I could buy only one Buffett stock in May, it would be... Berkshire Hathaway.
My rationale is simple. Investing in Berkshire allows me to scoop up shares of great long-term picks such as Apple, Bank of America, and Amazon. Buying the stock also gives me several solid recession plays, including Johnson & Johnson, McKesson, Coca-Cola, Kroger, and Procter & Gamble. In addition, I get dozens of other stocks plus ownership in Berkshire's own strong insurance, energy, and other businesses.
Buying Berkshire Hathaway shares also puts two of the world's greatest investors -- Buffett and his longtime business partner Charlie Munger -- to work for me. I sort of look forward to seeing what they might do with Berkshire's massive cash stockpile if a recession pulls stock valuations down significantly.
Will Berkshire perform as well over the long run as Apple or Amazon? Will it hold up as well during a recession as Coca-Cola or Johnson & Johnson? The answer is probably no on both questions. However, Berkshire provides a significant level of diversification with exposure to all of these stocks and more. I suspect if Buffett could buy only one stock in May, he'd pick Berkshire too.
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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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Eliminating a few top contenders Buffett's biggest position in Berkshire's portfolio by far is also my personal biggest individual stock holding -- Apple (NASDAQ: AAPL). My view is that Buffett's second-largest holding, Bank of America (NYSE: BAC), looks attractively valued after sinking by a double-digit percentage so far this year. In particular, my prediction is that the company's Amazon Web Services (AWS) unit still has massive growth potential with the transition of apps and data to the cloud.
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Eliminating a few top contenders Buffett's biggest position in Berkshire's portfolio by far is also my personal biggest individual stock holding -- Apple (NASDAQ: AAPL). His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio features plenty of great stocks. Investing in Berkshire allows me to scoop up shares of great long-term picks such as Apple, Bank of America, and Amazon.
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Eliminating a few top contenders Buffett's biggest position in Berkshire's portfolio by far is also my personal biggest individual stock holding -- Apple (NASDAQ: AAPL). But Amazon isn't my top Buffett stock to buy in May for reasons I'll soon explain. If I could buy only one Buffett stock in May, it would be... Berkshire Hathaway.
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Eliminating a few top contenders Buffett's biggest position in Berkshire's portfolio by far is also my personal biggest individual stock holding -- Apple (NASDAQ: AAPL). His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio features plenty of great stocks. But if I could buy only one Buffett stock in May, which one would it be?
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16113.0
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2023-05-01 00:00:00 UTC
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3 ETFs to Diversify Your Portfolio and Minimize Risk
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AAPL
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https://www.nasdaq.com/articles/3-etfs-to-diversify-your-portfolio-and-minimize-risk
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
ETF stocks have a lot of advantages. They provide investors with exposure to a wide assortment of stocks, creating diversification and less risk in the process.
ETFs can also be a great way for investors to gain access to a particular segment of the economy or a specific market. And, ETFs charge fewer fees than actively managed mutual funds.
These facts help to account for the fact that more and more investors are relying on ETFs to grow their nest egg. At the end of 2022, Americans had $6.5 trillion invested in exchange-traded funds, according to data from the Investment Company Institute.
That’s a massive amount of money and it is only getting larger as people realize the many benefits offered by ETFs as an investment vehicle. Here are three ETFs to diversity your portfolio and minimize risk.
BITO ProShares Bitcoin Strategy ETF $17.41
VGT Vanguard Information Technology ETF $384.36
SPEU SPDR Portfolio Europe ETF $39.65
ProShares Bitcoin Strategy ETF (BITO)
Source: shutterstock.com/bangoland
Cryptocurrencies have been the top-performing asset class this year, trouncing the returns of stocks, bonds and commodities.
A great way for investors to play the current rally in crypto is through the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO). The BITO exchange-traded fund (ETF) provides exposure to Bitcoin (BTC-USD) via futures contracts. It doesn’t track the spot price of BTC. Instead, this ETF tracks the price of future-dated Bitcoin index futures.
In some ways, the structure of the BITO ETF is beneficial to investors as it lowers the risk associated with investing directly in physical Bitcoin. Still, the share price of the ProShares Bitcoin Strategy ETF has closely tracked the price movements of BTC, which is the largest cryptocurrency by market capitalization.
Year to date, BITO is up 65%, which is a little less than the rise in Bitcoin. This ETF charges a comparatively low expense ratio of 0.95%, which is another selling feature.
Vanguard Information Technology ETF (VGT)
Source: Shutterstock
Close behind crypto in terms of performance this year have been technology stocks. After a brutal selloff in 2022, tech stocks have risen dramatically in the last six months.
The tech-laden Nasdaq index has gained 16% so far in 2023 and broke above the 12,000 mark for the first time in a year. Doing a little better than the gains in the Nasdaq is the Vanguard Information Technology ETF (NYSEARCA:VGT) that is up 19% on the year.
VGT holds a total of 364 stocks, almost all of them large cap technology concerns. The three biggest holdings in the fund are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA).
As is always the case with Vanguard, the VGT ETF charges a rock bottom expense ratio, in this case just 0.10%. This ETF also offers a quarterly dividend payment of 77 cents per share. This is a great ETF for investors to own as technology stocks come make into favor.
SPDR Portfolio Europe ETF (SPEU)
Source: Shutterstock
Another area of strength this year has come from European stocks. Several indices in Europe have hit new highs in recent months, fueled by improving sentiment.
In February of this year, England’s FTSE 100 index closed above the 8,000 level for the very first time.
Investors looking to gain exposure to Europe should consider a position in the SPDR Portfolio Europe ETF (NYSEARCA:SPEU).
SPEU tracks the STOXX Europe Total Market index and top holdings in the ETF include Nestle (OTCMKTS:NSRGY), Novo Nordisk (NYSE:NVO) and LVMH (EPA:MC), to name only a few. In the last six months, the SPEU ETF has risen 26%, including a 12% gain this year.
The expense ratio on this ETF is even lower than one can find with Vanguard at just 0.09%. It also offers a decent dividend yield of 3.13%. All told, the SPDR Portfolio Europe ETF offers a great way to diversify a portfolio with international stock exposure in a safe market.
On the date of publication, Joel Baglole held long positions in AAPL, MSFT 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 ETFs to Diversify Your Portfolio and Minimize Risk 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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The three biggest holdings in the fund are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA). On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. A great way for investors to play the current rally in crypto is through the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO).
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The three biggest holdings in the fund are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA). On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. BITO ProShares Bitcoin Strategy ETF $17.41 VGT Vanguard Information Technology ETF $384.36 SPEU SPDR Portfolio Europe ETF $39.65 ProShares Bitcoin Strategy ETF (BITO) Source: shutterstock.com/bangoland Cryptocurrencies have been the top-performing asset class this year, trouncing the returns of stocks, bonds and commodities.
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The three biggest holdings in the fund are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA). On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. BITO ProShares Bitcoin Strategy ETF $17.41 VGT Vanguard Information Technology ETF $384.36 SPEU SPDR Portfolio Europe ETF $39.65 ProShares Bitcoin Strategy ETF (BITO) Source: shutterstock.com/bangoland Cryptocurrencies have been the top-performing asset class this year, trouncing the returns of stocks, bonds and commodities.
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The three biggest holdings in the fund are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA). On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. Doing a little better than the gains in the Nasdaq is the Vanguard Information Technology ETF (NYSEARCA:VGT) that is up 19% on the year.
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2023-05-01 00:00:00 UTC
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Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-motley-fool-100-index-etf-tmfc-be-on-your-investing-radar-6
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
The fund is sponsored by Motley Fool Asset Management. It has amassed assets over $424.80 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies 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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
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 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.23%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 40.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG).
The top 10 holdings account for about 56.86% of total assets under management.
Performance and Risk
TMFC seeks to match the performance of the MOTLEY FOOL 100 INDEX before fees and expenses. The Motley Fool 100 Index is an index of US stocks, recommended by The Motley Fool, LLC (TMF) analysts, either in the Motley Fool IQ analyst opinion database or TMF research publications. From this recommendation pool, the index chooses the 100 largest US companies by market cap and weights them according to market capitalization. The index undergoes quarterly reconstitution.
The ETF return is roughly 18.23% so far this year and is down about -2.98% in the last one year (as of 05/01/2023). In the past 52-week period, it has traded between $29.82 and $37.67.
The ETF has a beta of 1.08 and standard deviation of 23.29% for the trailing three-year period. With about 99 holdings, it effectively diversifies company-specific risk.
Alternatives
Motley Fool 100 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, TMFC 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 $82.47 billion in assets, Invesco QQQ has $172.34 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.
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Motley Fool 100 Index ETF (TMFC): ETF Research Reports
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $424.80 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Alternatives Motley Fool 100 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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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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2023-05-01 00:00:00 UTC
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US STOCKS-S&P 500, Dow steady on boost from JPMorgan; Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-steady-on-boost-from-jpmorgan-fed-meet-in-focus
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By Ankika Biswas and Sruthi Shankar
May 1 (Reuters) - The S&P 500 and the Dow edged higher as JPMorgan shares rose after the lender said it will buy most of First Republic Bank's assets, while investors refrained from making big bets ahead of the Federal Reserve's policy decision this week.
JPMorgan Chase & Co's JPM.N shares rose 2.8% on Monday to nearly a two-month high after the deal was announced earlier in the day. The S&P 500 Banks index .SPXBK gained 1.4%.
Shares of regional banks PNC Financial PNC.N and Citizens Financial CFG.N dropped 4.5% and 6.1%, respectively. Big banks such as Bank of America BAC.N and Wells Fargo & Co WFC.N rose 0.3% and 2.8%, respectively.
The KBW Regional Banking index .KRX fell 0.6%.
The rescue comes less than two months after a deposit flight from U.S. lenders Silicon Valley Bank and Signature Bank forced the Fed to step in with emergency measures to stabilize markets.
"When you have the largest bank and probably the most successful bank purchasing First Republic Bank's assets, it shows some confidence in the system and willingness on the part of the government to allow very large players to help stabilize the situation," said Rick Meckler, partner at Cherry Lane Investments.
First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O helped the benchmark S&P 500 .SPX notch its second consecutive month of gain on Friday.
Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data. Apple Inc AAPL.O is set to report later this week.
Investors are keenly awaiting the conclusion of the Fed's two-day policy meeting on Wednesday for signs that its aggressive monetary policy tightening is coming to an end soon.
Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in 90% chances of such a move, according to CME Group's FedWatch tool.
Investors will also focus on Jerome Powell's press conference to assess if the Fed's commentary pushes back market expectations of rate cuts before the year-end amid the recent banking turmoil and threats of an imminent recession.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI was up 40.97 points, or 0.12%, at 34,139.13, the S&P 500 .SPX was up 1.68 points, or 0.04%, at 4,171.16, and the Nasdaq Composite .IXIC was down 16.65 points, or 0.14%, at 12,209.94.
Data on Monday showed U.S. manufacturing pulled off a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed amid higher borrowing costs and tight credit, raising the risk of a recession this year.
Another set of data showed U.S. construction spending increased more than expected in March.
Norwegian Cruise Line Holdings NCLH.N rose 4.8% after raising its full-year profit forecast, betting on higher pricing and pent-up demand from wealthy customers.
General Motors Co GM.Ngained 3.2% following reports that Morgan Stanley upgraded the stock to "overweight".
Advancing issues outnumbered decliners for a 1.32-to-1 ratio on the NYSE and a 1.27-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 48 new highs and 47 new lows.
(Reporting by Ankika Biswas and Sruthi Shankar in Bengaluru, Additional reporting by Manya Saini; Editing by Saumyadeb Chakrabarty 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 is set to report later this week. By Ankika Biswas and Sruthi Shankar May 1 (Reuters) - The S&P 500 and the Dow edged higher as JPMorgan shares rose after the lender said it will buy most of First Republic Bank's assets, while investors refrained from making big bets ahead of the Federal Reserve's policy decision this week. Investors will also focus on Jerome Powell's press conference to assess if the Fed's commentary pushes back market expectations of rate cuts before the year-end amid the recent banking turmoil and threats of an imminent recession.
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Apple Inc AAPL.O is set to report later this week. By Ankika Biswas and Sruthi Shankar May 1 (Reuters) - The S&P 500 and the Dow edged higher as JPMorgan shares rose after the lender said it will buy most of First Republic Bank's assets, while investors refrained from making big bets ahead of the Federal Reserve's policy decision this week. Recent economic data reinforced bets of another 25-basis point interest rate hike, with investors pricing in 90% chances of such a move, according to CME Group's FedWatch tool.
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Apple Inc AAPL.O is set to report later this week. By Ankika Biswas and Sruthi Shankar May 1 (Reuters) - The S&P 500 and the Dow edged higher as JPMorgan shares rose after the lender said it will buy most of First Republic Bank's assets, while investors refrained from making big bets ahead of the Federal Reserve's policy decision this week. "When you have the largest bank and probably the most successful bank purchasing First Republic Bank's assets, it shows some confidence in the system and willingness on the part of the government to allow very large players to help stabilize the situation," said Rick Meckler, partner at Cherry Lane Investments.
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Apple Inc AAPL.O is set to report later this week. By Ankika Biswas and Sruthi Shankar May 1 (Reuters) - The S&P 500 and the Dow edged higher as JPMorgan shares rose after the lender said it will buy most of First Republic Bank's assets, while investors refrained from making big bets ahead of the Federal Reserve's policy decision this week. The S&P 500 Banks index .SPXBK gained 1.4%.
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16116.0
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2023-05-01 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-28
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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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16117.0
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2023-05-01 00:00:00 UTC
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Futures muted as Fed caution sets in, JPMorgan to buy First Republic
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AAPL
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https://www.nasdaq.com/articles/futures-muted-as-fed-caution-sets-in-jpmorgan-to-buy-first-republic
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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
JPMorgan up after it buys First Republic assets
Manufacturing activity data due after opening bell
Fed expected to raise rates later this week
Futures off: Dow 0.04%, S&P 0.09%, Nasdaq 0.10%
Updates prices, adds details
May 1 (Reuters) - U.S. stock index futures were muted on Monday as investors refrained from taking big bets ahead of the Federal Reserve's policy decision this week, while regulators said JPMorgan will buy most of the beleaguered First Republic Bank's assets.
JPMorgan Chase & Co's shares rose 3.7% in premarket trading after the deal was announced early on Monday, while First Republic's stock slumped almost 46% to $1.9 before trading in it was suspended.
Shares of First Republic's regional peers PNC Financial PNC.N and Citizens Financial CFG.N slipped 2.3% and 1.4%, respectively, while other big banks including Bank of America BAC.N edged higher.
The rescue comes less than two months after a deposit flight from U.S. lenders Silicon Valley Bank and Signature Bank forced the Fed to step in with emergency measures to stabilize markets.
First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O helped the benchmark S&P 500 .SPX notch its second consecutive month of gain on Friday.
Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data. Apple Inc AAPL.Ois set to report later this week.
Investors will also focus on Jerome Powell's press conference to assess if the Fed's commentary pushes back market expectations of rate cuts before the year-end amid the recent banking turmoil and threats of an imminent recession.
"While the market has priced in another hike this week, we think the developments over the weekend will cause the FOMC to be more prudent with their guidance and respect the message of the market," said Thomas Hayes, chairman and managing member at Great Hill Capital.
"We would not be surprised to see a "pause" after this final hike. Markets should take today's news in stride knowing that the repeated bank failures should now have the Fed back on its heels and defanged moving forward."
At 7:50 a.m. ET, Dow e-minis 1YMcv1 were down 14 points, or 0.04%, S&P 500 e-minis EScv1 were down 3.75 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were down 13.5 points, or 0.1%.
Manufacturing data from the Institute for Supply Management and S&P Global for April and the Commerce Department's construction spending for March will be released later in the day, offering investors more clues on the state of the economy.
Among earnings-driven moves, Norwegian Cruise Line Holdings NCLH.Nrose 2.7% after the cruise operator raised its full-year profit forecast, betting on higher pricing and pent-up demand from wealthy customers.
ON Semiconductor Corp ON.O, MGM Resorts International MGM.N and Franklin Resources Inc BEN.N are some of the major companies reporting quarterly results before the opening bell.
(Reporting by Ankika Biswas and Sruthi Shankar in Bengaluru, Additional reporting by Manya Saini; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)
((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.Ois set to report later this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window JPMorgan up after it buys First Republic assets Manufacturing activity data due after opening bell Fed expected to raise rates later this week Futures off: Dow 0.04%, S&P 0.09%, Nasdaq 0.10% Updates prices, adds details May 1 (Reuters) - U.S. stock index futures were muted on Monday as investors refrained from taking big bets ahead of the Federal Reserve's policy decision this week, while regulators said JPMorgan will buy most of the beleaguered First Republic Bank's assets. First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O helped the benchmark S&P 500 .SPX notch its second consecutive month of gain on Friday.
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Apple Inc AAPL.Ois set to report later this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window JPMorgan up after it buys First Republic assets Manufacturing activity data due after opening bell Fed expected to raise rates later this week Futures off: Dow 0.04%, S&P 0.09%, Nasdaq 0.10% Updates prices, adds details May 1 (Reuters) - U.S. stock index futures were muted on Monday as investors refrained from taking big bets ahead of the Federal Reserve's policy decision this week, while regulators said JPMorgan will buy most of the beleaguered First Republic Bank's assets. Investors will also focus on Jerome Powell's press conference to assess if the Fed's commentary pushes back market expectations of rate cuts before the year-end amid the recent banking turmoil and threats of an imminent recession.
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Apple Inc AAPL.Ois set to report later this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window JPMorgan up after it buys First Republic assets Manufacturing activity data due after opening bell Fed expected to raise rates later this week Futures off: Dow 0.04%, S&P 0.09%, Nasdaq 0.10% Updates prices, adds details May 1 (Reuters) - U.S. stock index futures were muted on Monday as investors refrained from taking big bets ahead of the Federal Reserve's policy decision this week, while regulators said JPMorgan will buy most of the beleaguered First Republic Bank's assets. Investors will also focus on Jerome Powell's press conference to assess if the Fed's commentary pushes back market expectations of rate cuts before the year-end amid the recent banking turmoil and threats of an imminent recession.
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Apple Inc AAPL.Ois set to report later this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window JPMorgan up after it buys First Republic assets Manufacturing activity data due after opening bell Fed expected to raise rates later this week Futures off: Dow 0.04%, S&P 0.09%, Nasdaq 0.10% Updates prices, adds details May 1 (Reuters) - U.S. stock index futures were muted on Monday as investors refrained from taking big bets ahead of the Federal Reserve's policy decision this week, while regulators said JPMorgan will buy most of the beleaguered First Republic Bank's assets. JPMorgan Chase & Co's shares rose 3.7% in premarket trading after the deal was announced early on Monday, while First Republic's stock slumped almost 46% to $1.9 before trading in it was suspended.
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16118.0
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2023-05-01 00:00:00 UTC
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Good Stocks To Buy Right Now? 3 Tech Stocks In Focus
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AAPL
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https://www.nasdaq.com/articles/good-stocks-to-buy-right-now-3-tech-stocks-in-focus
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nan
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The technology sector has long been a driving force behind the global economy. It has also been a catalyst for innovative breakthroughs across various industries. As one of the fastest-evolving sectors, it encompasses a wide range of industries. Everything from software development and hardware manufacturing to artificial intelligence, cloud computing, cybersecurity, and more. The growth and expansion of the tech sector have been primarily fueled by the exponential increase in internet users, the proliferation of mobile devices, and the growing demand for data-driven solutions. As a result, technology stocks have consistently been a popular choice among investors. This is because they offer significant growth potential and, often, attractive returns on investment.
Investing in tech stocks provides exposure to a diverse set of companies, including well-established market leaders like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). As well as smaller, innovative startups focusing on cutting-edge technologies. While the tech sector is known for its volatility, it has historically delivered robust returns for long-term investors. Particularly those who have been able to identify and capitalize on emerging trends and breakthrough innovations.
However, investing in technology stocks also entails a level of risk. As the sector’s rapid evolution can lead to shifts in competitive dynamics and the potential for disruptive technologies to upend established players. Therefore, it’s crucial for investors to conduct thorough research and due diligence before investing in tech stocks. This will help ensure they’re well-informed about both the opportunities and the risks. Having said that, let’s look at three trending tech stocks to watch in the stock market this week.
Tech Stocks To Watch Right Now
NVIDIA Corporation (NASDAQ: NVDA)
ON Semiconductor Corporation (NASDAQ: ON)
Meta Platforms Inc. (NASDAQ: META)
NVIDIA (NVDA Stock)
Starting off, NVIDIA Corporation (NVDA) is a leading global technology company specializing in the development and production of Graphics Processing Units (GPUs), System on a Chip (SoCs), and AI solutions. NVIDIA’s products have gained significant prominence in various sectors, such as gaming, professional visualization, data center services, and automotive applications.
In the company’s latest news release last month, NVIDIA launched the GeForce RTX 4070 GPU, which brings the advanced capabilities of the Ada Lovelace architecture and DLSS 3 technology to a broader audience of gamers and creators, starting at just $599. The new RTX 4070 offers exceptional performance, enabling real-time ray tracing and delivering more than 100 frames per second at a 1440p resolution in the majority of contemporary games.
Moving along, during Monday morning’s trading session, shares of NVDA stock are up another 1.41% off the open trading at $281.41 a share.
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 2 Undervalued Stocks To Watch
ON Semiconductor (ON Stock)
Next, ON Semiconductor Corporation (ON) is a prominent player in the semiconductor industry, focusing on the design and manufacturing of energy-efficient electronic components and integrated circuits. The company’s product portfolio includes power management solutions, sensors, and connectivity devices, catering to diverse markets such as automotive, industrial, consumer electronics, and communications.
Today, Monday, ON Semiconductor reported a beat for its first quarter 2023 earnings results. Diving in, the semiconductor company posted Q1 2023 earnings of $1.19 per share on revenue of $2.0 billion. This is in comparison with Wall Street’s consensus estimates which were earnings of $1.09 per share. Additionally, the company said it expects Q2 2023 earnings in the range of $1.14 to $1.28 per share, with revenue of approximately $1.975 billion to $2.075 billion.
Following this news release, on Monday morning, shares of ON stock popped higher off the open by 6.49%, trading at $76.69 per share.
Source: TD Ameritrade TOS
[Read More] 2 AI Stocks To Watch In May 2023
Meta Platforms (META Stock)
Last but not least, Meta Platforms Inc. (META), previously known as Facebook Inc., is a global technology giant that owns and operates a wide range of social media platforms and applications, including Facebook, Instagram, WhatsApp, and Messenger. Meta has recently ventured into the development of the metaverse, a virtual shared space that combines aspects of social media, online gaming, and augmented reality.
Last week, Meta reported its first quarter 2023 financial results. Diving in, the company notched in better-than-expected results for the quarter. Specifically, Meta posted Q1 2023 earnings of $2.64 per share on revenue of $28.6 billion. This is versus analysts’ consensus estimates for Q1 2023, which were earnings per share of $1.96 per share along with revenue estimates of $27.6 billion.
Over the past five trading days, shares of META stock have jumped by 13.76%. Meanwhile, during Monday morning’s trading session, META stock opened the day trading day flat trading at $240.14 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investing in tech stocks provides exposure to a diverse set of companies, including well-established market leaders like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). The growth and expansion of the tech sector have been primarily fueled by the exponential increase in internet users, the proliferation of mobile devices, and the growing demand for data-driven solutions. In the company’s latest news release last month, NVIDIA launched the GeForce RTX 4070 GPU, which brings the advanced capabilities of the Ada Lovelace architecture and DLSS 3 technology to a broader audience of gamers and creators, starting at just $599.
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Investing in tech stocks provides exposure to a diverse set of companies, including well-established market leaders like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) ON Semiconductor Corporation (NASDAQ: ON) Meta Platforms Inc. (NASDAQ: META) NVIDIA (NVDA Stock) Starting off, NVIDIA Corporation (NVDA) is a leading global technology company specializing in the development and production of Graphics Processing Units (GPUs), System on a Chip (SoCs), and AI solutions. Source: TD Ameritrade TOS [Read More] 2 AI Stocks To Watch In May 2023 Meta Platforms (META Stock) Last but not least, Meta Platforms Inc. (META), previously known as Facebook Inc., is a global technology giant that owns and operates a wide range of social media platforms and applications, including Facebook, Instagram, WhatsApp, and Messenger.
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Investing in tech stocks provides exposure to a diverse set of companies, including well-established market leaders like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) ON Semiconductor Corporation (NASDAQ: ON) Meta Platforms Inc. (NASDAQ: META) NVIDIA (NVDA Stock) Starting off, NVIDIA Corporation (NVDA) is a leading global technology company specializing in the development and production of Graphics Processing Units (GPUs), System on a Chip (SoCs), and AI solutions. Source: TD Ameritrade TOS [Read More] 2 AI Stocks To Watch In May 2023 Meta Platforms (META Stock) Last but not least, Meta Platforms Inc. (META), previously known as Facebook Inc., is a global technology giant that owns and operates a wide range of social media platforms and applications, including Facebook, Instagram, WhatsApp, and Messenger.
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Investing in tech stocks provides exposure to a diverse set of companies, including well-established market leaders like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) ON Semiconductor Corporation (NASDAQ: ON) Meta Platforms Inc. (NASDAQ: META) NVIDIA (NVDA Stock) Starting off, NVIDIA Corporation (NVDA) is a leading global technology company specializing in the development and production of Graphics Processing Units (GPUs), System on a Chip (SoCs), and AI solutions. Diving in, the semiconductor company posted Q1 2023 earnings of $1.19 per share on revenue of $2.0 billion.
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16119.0
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2023-05-01 00:00:00 UTC
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Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-etf-eps-a-strong-etf-right-now-5
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A smart beta exchange traded fund, the WisdomTree U.S. LargeCap ETF (EPS) debuted on 02/23/2007, and offers broad exposure to the Style Box - Large 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Managed by Wisdomtree, EPS has amassed assets over $674.48 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. Earnings 500 Index.
The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
Cost & Other Expenses
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 cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
EPS's heaviest allocation is in the Information Technology sector, which is about 21.50% of the portfolio. Its Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 29.24% of EPS's total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. LargeCap ETF return is roughly 7.53% so far, and is down about -1.28% over the last 12 months (as of 05/01/2023). EPS has traded between $38.39 and $46.24 in this past 52-week period.
The ETF has a beta of 1 and standard deviation of 18.44% for the trailing three-year period, making it a medium risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.53 billion in assets, Vanguard Value ETF has $102.58 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the WisdomTree U.S. LargeCap ETF (EPS) debuted on 02/23/2007, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). A smart beta exchange traded fund, the WisdomTree U.S. LargeCap ETF (EPS) debuted on 02/23/2007, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Most ETFs are very transparent products, and disclose their holdings on a daily basis.
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16120.0
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2023-05-01 00:00:00 UTC
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2 Red Flags for Broadcom's Future
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https://www.nasdaq.com/articles/2-red-flags-for-broadcoms-future
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Broadcom (NASDAQ: AVGO) is often considered a safe blue chip tech stock for conservative income investors. It produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets, and it also sells infrastructure software through its CA Technologies and Symantec subsidiaries.
Its revenue has grown at a compound annual growth rate (CAGR) of 13% between fiscal 2017 and fiscal 2022 (which ended last October), as its adjusted earnings per share (EPS) rose at a CAGR of 19%. Its diversification shielded it from the PC market's post-pandemic slowdown, and its stock still looks cheap at 15 times forward earnings despite rallying nearly 170% over the past five years. It also pays a forward dividend yield of 3%, and that payout should consume less than half of its projected EPS this year.
Image source: Getty Images.
I've praised Broadcom's strengths in previous articles, but investors should also be aware of its less obvious weaknesses. So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW).
Broadcom's relationship with Apple
Broadcom provides Wi-Fi, Bluetooth, GPS, wireless charging, and radio frequency chips for Apple's iPhones, iPads, Macs, and other devices. Apple accounted for 20% of Broadcom's revenue in fiscal 2022, making it the chipmaker's top customer. Back in early 2020, Broadcom secured several contracts with Apple, which were expected to pay out about $15 billion in revenue through 2023. However, there's no guarantee that Apple will renew those contracts once they expire.
Instead, several reports from earlier this year suggested that Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. That potential switch, along with the iPhone's slowing growth in recent years, indicates that Broadcom needs to proactively diversify its business away from Apple.
Broadcom isn't the only chipmaker that faces the potential loss of Apple as a top customer. Qualcomm, which Broadcom nearly acquired via a hostile takeover in 2018, also faces the looming replacement of its iPhone modems.
The VMware deal could be in trouble
To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. But even after integrating both companies, Broadcom still only generated 29% of its revenue from infrastructure software in fiscal 2022.
To accelerate that expansion, Broadcom agreed to buy Vmware for $61 billion last year. At the time, it expected to close the deal in fiscal 2023. However, that acquisition has run into a gauntlet of regulatory challenges over the past year.
Antitrust regulators in the U.S., U.K., and Europe have all been closely scrutinizing the deal, and a recent decision by the Competition and Markets Authority (CMA) in the U.K. to block Microsoft's planned acquisition of Activision Blizzard raises some serious doubts about Broadcom's ability to seal the deal.
If Broadcom actually buys VMware, it expects to generate nearly half of its annual revenue from software and significantly reduce its dependence on chips. It also believes the acquisition will add roughly $8.5 billion in pro forma earnings before interest, taxes, depreciation, and amortization (EBITDA) to its bottom line within the first three years. By comparison, Broadcom generated an adjusted EBITDA of $21 billion on its own in fiscal 2022.
Do these risks make Broadcom a less attractive stock?
I believe Broadcom can weather the loss of Apple if it acquires VMware. But if antitrust regulators block the VMware deal, I'd avoid investing in Broadcom because it could suffer severe revenue declines in fiscal 2025 and beyond.
However, some of those doubts already seem to be priced into its low valuation -- and Broadcom could still take the cash and make smaller acquisitions or execute some big buybacks to appease investors if the deal falls through. Therefore, Broadcom isn't doomed yet, but investors who are concerned about Apple or VMware should probably stick with more conservative tech stocks until it resolves those near-term challenges.
10 stocks we like better than Broadcom
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Broadcom wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 24, 2023
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, and Qualcomm. The Motley Fool recommends Broadcom and VMware. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). It produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets, and it also sells infrastructure software through its CA Technologies and Symantec subsidiaries. The VMware deal could be in trouble To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019.
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So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Antitrust regulators in the U.S., U.K., and Europe have all been closely scrutinizing the deal, and a recent decision by the Competition and Markets Authority (CMA) in the U.K. to block Microsoft's planned acquisition of Activision Blizzard raises some serious doubts about Broadcom's ability to seal the deal. If Broadcom actually buys VMware, it expects to generate nearly half of its annual revenue from software and significantly reduce its dependence on chips.
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So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Broadcom's relationship with Apple Broadcom provides Wi-Fi, Bluetooth, GPS, wireless charging, and radio frequency chips for Apple's iPhones, iPads, Macs, and other devices. The VMware deal could be in trouble To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019.
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So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Back in early 2020, Broadcom secured several contracts with Apple, which were expected to pay out about $15 billion in revenue through 2023. Broadcom isn't the only chipmaker that faces the potential loss of Apple as a top customer.
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16121.0
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2023-04-30 00:00:00 UTC
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Wall St Week Ahead-Recession worries simmer beneath US stock market rally
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https://www.nasdaq.com/articles/wall-st-week-ahead-recession-worries-simmer-beneath-us-stock-market-rally-0
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By Lewis Krauskopf
NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher.
The S&P 500 is up 8.6% for the year after gaining 1.5% in April, thanks to roaring year-to-date rallies in shares of Microsoft MSFT.O, Amazon AMZN.O and Google-parent Alphabet GOOGL.O and other growth and technology stocks that command heavy weightings in broader indexes.
Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
Investors cited growing caution among market participants faced with a thicket of concerns, from fears of a possible U.S. default this summer to worries that the Federal Reserve’s aggressive monetary tightening could bring on a recession.
“People are starting to more defensively position themselves,” said Aaron Dunn, co-head of the value equity team at Eaton Vance. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.”
Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month. The Dow Jones Transportation Average .DJT, another bellwether of economic health, fell 2.9%.
A 7.3% drop in the Philadelphia SE Semiconductor index .SOX was a worrying sign, as chips are ubiquitous in a wide range of products. The index is still up 18% for the year.
Regional banks are also wobbling, with the KBW Regional Banking index .KRX down 3.5% in April following a rout this week in shares of First Republic Bank FRC.N. At the same time, consumer staples .SPLRCS and healthcare .SPXHC, sectors favored by investors during uncertain times, have rallied in the past month.
Investors will focus on next week's Fed meeting, with the central bank expected to announce another 25 basis point rate hike on Wednesday. A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday.
Though the S&P 500 has shown resilience, just seven stocks -- Apple, Microsoft, Alphabet, Amazon, Tesla TSLA.O Meta Platforms META.O and Nvidia NVDA.O -- were responsible for more than 88% of its year-to-date gain as of Thursday, according to Mike O'Rourke, chief market strategist at Jones Trading.
“It makes me nervous to be honest,” said James Ragan, director of wealth management research at D.A. Davidson. “It just seems like the market gains are being concentrated in fewer and fewer stocks and that is probably unsustainable for too long.”
Ragan is recommending clients overweight defensive sectors such as healthcare, staples and utilities.
While results from megacaps and strong economic reports buoyed optimism among some on Wall Street, others focused on downbeat news from companies in economically sensitive areas.
Shares of United Parcel Service UPS.N tumbled 10% on Tuesday after the world's largest parcel delivery firm pegged annual revenue at the lower end of its forecast and warned of persistent pressure on volumes. The next day, shares of Old Dominion Freight Line ODFL.O also dropped 10% after the trucking firm missed quarterly estimates for profit and revenue.
"They are talking about demand being down and they are ridiculously important shipping companies,” said Matt Maley, chief market strategist at Miller Tabak.
Maley is recommending clients hold higher-than-typical cash levels because of concerns about a recession and because safer assets now have higher yields, while favoring energy and defense stocks.
Of course, not all signs have pointed to economic weakness in recent weeks.
Overall, earnings have come in better than feared for the first quarter. With just over half of the S&P 500 having reported, earnings are on pace to have declined 1.9% for the first quarter from the year earlier period, according to Refinitiv. That is a smaller decline than the 5.1% drop expected at the start of April.
Meanwhile, data on Thursday showed an acceleration in consumer spending in the first quarter as U.S. gross domestic product increased at a 1.1% annualized rate.
"It's hard to have a recession when consumers' incomes are rising, and they are spending more on both goods and services," Yardeni Research said in a note on Friday.
S&P 500 leaves key groups behindhttps://tmsnrt.rs/3nkSyEh
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. Investors cited growing caution among market participants faced with a thicket of concerns, from fears of a possible U.S. default this summer to worries that the Federal Reserve’s aggressive monetary tightening could bring on a recession. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.” Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.” Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
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16122.0
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2023-04-30 00:00:00 UTC
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The 2 Smartest Stocks to Buy in 2023 and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/the-2-smartest-stocks-to-buy-in-2023-and-hold-for-the-next-decade
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Building a profitable and market-beating portfolio doesn't happen overnight. It takes time, consistency, and patience to work toward the returns that you ultimately desire. And despite your best due diligence, not every stock you buy will be the winner you hoped for.
This is why it is crucial to always do your research and make sure you thoroughly understand any stock before you buy it, while also making investing a habit and regularly adding to a wide variety of stocks across a diverse range of sectors. A diversified portfolio can both help you ride out the highs and lows that the market brings, while enabling you to benefit from a variety of growth stories as you work toward your long-term financial goals.
If you're looking for two smart stocks to buy and hold for at least a decade, here are two worthy contenders to consider right now.
1. Pinterest
Pinterest (NYSE: PINS) has capitalized on the impulse that many online users experience in the digital age, to scroll and search visually appealing content for long periods -- sometimes hours -- on end. With an image-and-video-centric design that appeals exactly to this kind of usage, it's no wonder that the platform has grown into an advertising powerhouse used by everyone from household name brands to mom-and-pop businesses.
Monthly active users were up 4% year-over-year and 35% on a three-year clip as of the end of 2022, while the company's ratio of monthly active users to weekly active users reached a record high figure of 61%. Meanwhile, video-focused ads remain key to management's long-term growth vision for Pinterest's future in the competitive advertisement space. In the 2022 earnings calls, CEO Bill Ready noted that:
Our supply of content is growing. Video content is up 30% quarter on quarter. We're finding more efficient ways to get engaging content on Pinterest, serve the need of our pinners you know, from inspiration to action. And importantly, while we're seeing more than 10% of our engagement is on video ... more than 30% of our revenue is on short-form video.
While overall revenue grew 4% year-over-year in the final quarter of 2022, shopping ad revenue jumped by a mouth-watering 50% in the three-month period alone. Pinterest's 2022 revenue of $2.8 billion was up 9% from 2021, but up 150% compared to its revenue in 2019.
The company just reported its financial results for the first quarter of 2023 on April 27, and investors reacted strongly, with the stock falling about 16% on the news. The stock dipped for a few key reasons. First, while Pinterest generated revenue of $603 million in the quarter, up 5% from the year-ago period, and ended the period with 463 million monthly active users, a healthy 7% year-over-year spike, the current weaknesses in ad spending given the macro environment hit the bottom line hard. The company is also investing heavily in the growth of its platform right now, even as ad rates are declining. It reported adjusted EBITDA of $27 million for the three-month period, but a net loss of $209 million.
On Pinterest's platform, clickable ads blend in easily with inspiration-inducing photos and videos, creating a seamless experience for users that can carry them from searching for an idea without an end goal in mind to actually making a purchase. This is a powerful competitive advantage that Pinterest can leverage over the long term. Yes, the current ad spend environment is causing a deceleration in growth. This isn't just true for Pinterest of course, but for any business built around advertising dollars. However, given the long-term growth potential of this platform, its beaten-down share price may be one that investors may want to take note of in the current market environment.
2. Apple
Apple (NASDAQ: AAPL) has long been known for its dominance of the smartphone market, a space in which it accounts for more than 24% of all sales globally. In the first quarter of the company's fiscal 2022, $66 billion of Apple's $117 billion total net sales were derived from iPhone sales.
While sales of these hardware products remain Apple's bread and butter, another segment is quickly catching up. The company's services segment, which is comprised largely of subscription-based offerings like Apple Music, is growing rapidly. This recurring revenue business contributed $21 billion of Apple's total net sales in the first-quarter period, more than sales from its Mac, iPad, or Wearables/Home/Accessories segments.
Apple is also looking to the future as it seeks to build out its competitive advantage in other lucrative markets, including the financial services space. The company launched its own buy now, pay later product last year. And it just launched an interest-bearing savings account in partnership with Goldman Sachs. The account currently boasts an annual percentage yield of 4.15%, while the national average is only around 0.4%.
The company is also looking to other high-octane industries on which to build out its growth story. While it still has a modest footprint in the advertising space, it's estimated that Apple could be generating more than $10 billion in ad revenue alone by the end of next year. Then, there's it's much anticipated virtual reality headset, which by some reports could be out as early as June of this year.
Apple is a business that has stood the test of time in countless economic storms. The diversity of its business offerings, its continued expansion into new areas, and its market-leading products should continue to drive profound growth over the next decade, even if consumer spending slows in the short term. Bear in mind, this is a business that has seen its operating cash flow and profits rise by respective amounts of 51% and 74% in the past three years alone.
10 stocks we like better than Pinterest
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 Pinterest 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 April 24, 2023
Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, and Pinterest. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has long been known for its dominance of the smartphone market, a space in which it accounts for more than 24% of all sales globally. A diversified portfolio can both help you ride out the highs and lows that the market brings, while enabling you to benefit from a variety of growth stories as you work toward your long-term financial goals. On Pinterest's platform, clickable ads blend in easily with inspiration-inducing photos and videos, creating a seamless experience for users that can carry them from searching for an idea without an end goal in mind to actually making a purchase.
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Apple Apple (NASDAQ: AAPL) has long been known for its dominance of the smartphone market, a space in which it accounts for more than 24% of all sales globally. Meanwhile, video-focused ads remain key to management's long-term growth vision for Pinterest's future in the competitive advertisement space. First, while Pinterest generated revenue of $603 million in the quarter, up 5% from the year-ago period, and ended the period with 463 million monthly active users, a healthy 7% year-over-year spike, the current weaknesses in ad spending given the macro environment hit the bottom line hard.
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Apple Apple (NASDAQ: AAPL) has long been known for its dominance of the smartphone market, a space in which it accounts for more than 24% of all sales globally. This is why it is crucial to always do your research and make sure you thoroughly understand any stock before you buy it, while also making investing a habit and regularly adding to a wide variety of stocks across a diverse range of sectors. First, while Pinterest generated revenue of $603 million in the quarter, up 5% from the year-ago period, and ended the period with 463 million monthly active users, a healthy 7% year-over-year spike, the current weaknesses in ad spending given the macro environment hit the bottom line hard.
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Apple Apple (NASDAQ: AAPL) has long been known for its dominance of the smartphone market, a space in which it accounts for more than 24% of all sales globally. Video content is up 30% quarter on quarter. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Pinterest wasn't one of them!
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16123.0
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2023-04-30 00:00:00 UTC
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Investors May Not Have Seen the Worst of Tesla Stock. Here's Why.
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AAPL
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https://www.nasdaq.com/articles/investors-may-not-have-seen-the-worst-of-tesla-stock.-heres-why.
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2023 has not been the best year for serial entrepreneur Elon Musk. Just months after acquiring social media platform Twitter for $44 billion, Musk recently admitted that the company is worth less than half of what he paid for it.
On top of that, his electric vehicle (EV) company, Tesla (NASDAQ: TSLA), has instituted a number of price reductions in an effort to entice buyers. While demand for its vehicles is generally high, consumers are scaling back discretionary spend as fears of recession rise and high inflation lingers.
The company just reported earnings for the first quarter of 2023. The stock has sold off by 12%, but investors may not have seen the worst.
Is now a chance to lower your cost basis? Or should you sit on the sidelines and watch the stock potentially keep dropping? Let's dig in.
Q1 at a glance
For the quarter ended March 31, Tesla's total revenue was $23.3 billion, up 24% year over year. The company's automotive revenue was $19.9 billion, which represented a 19% annual increase.
At first glance, these growth rates look pretty good considering the current macroeconomic environment. However, looking at the income statement on a deeper level is important. Tesla's gross margin under generally accepted accounting principles (GAAP) was 19%. This is a decline of nearly 10 percentage points from Q1 2022. To make matters worse, the company's gross margin has been declining steadily for the last couple of quarters now.
After accounting for operating expenses, Tesla's operating margin came in at 11.4% in Q1. This is nearly an 8% decline year over year, and almost 5% decline from the fourth quarter of 2022.
Given the contraction in margins, investors should not be surprised to learn that Tesla's free cash flow is shrinking dramatically. For Q1 2023, the company reported $441 million in free cash flow, down 80% year over year.
Image source: Getty Images.
What should investors be thinking about?
Following the earnings report, Tesla stock was bombarded with a number of stock price reductions from Wall Street banks. Goldman Sachs reduced its target from $210 per share to $185 per share, but still maintains a buy rating. J.P. Morgan slapped a price target of $115 per share, but believes the stock is undervalued. Perhaps the most concerning sentiment came from Truist Financial, which lowered its price target from $245 per share to $154 per share and downgraded the stock to a hold position.
Within the company's Q1 investor deck, Tesla wrote: "Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale."
The biggest question mark here is when all of the price reductions will be baked into Tesla's financials. Until investors can see how the cost cutting initiatives are translating into a concrete financial picture, it is very difficult to discern what Tesla's profile will look like.
Has this been seen before?
The strategy behind cutting the prices of goods and services is pretty simple. The idea is that the company will make up for the lower sales per unit by generating a higher volume from enticing more people to buy.
For example, back in the 1970s, Domino's Pizza was struggling to keep up with its competition. However, the company eventually developed a game-changing promotion in the same vein as price cuts: 30 minute delivery or your pizza is free. This type of promotion was unheard of at the time and resulted in an avalanche of new customers for the pizza chain.
In more recent history, this Fool contributor keenly pointed out that Apple engaged in price cuts during the early days of iPhone. Again, the thesis was that Apple would make up for the potential drop in revenue from the price reductions by selling more iPhone devices.
One thing to keep in mind with Apple and Domino's is that each of these companies has the luxury of acquiring repeat business from these types of promotions. In the case of Apple, iPhone users tend to upgrade their devices and thereby spend money on new phones every few years. Moreover, Apple has mastered locking users into its ecosystem, generating sales from both additional hardware and services purchases. In the case of Tesla, however, people typically don't buy a new car every Friday night, like they may a pizza.
Although the stock is dropping, it is hard to know with a high degree of confidence if this is an opportunity to buy the dip. Only time will tell if Musk's strategy will work. As of now, despite the decline in margin, the company is still profitable on a per-vehicle basis. However, investors need to be aware of the fact that Tesla's margins could keep contracting in the short term. More importantly, should this be the case, it is paramount to question what this could do to Tesla's roadmap.
Tightening margins will limit Tesla's ability to invest in new products and services. So, being able to visualize and quantify how much the decline in cash flow is impacting the long-term growth prospects of the business will be supremely important in the coming quarters in particular.
Find out why Tesla is one of the 10 best stocks to buy now
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*Stock Advisor returns as of April 24, 2023
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Adam Spatacco has positions in Apple and Tesla. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Goldman Sachs Group, JPMorgan Chase, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On top of that, his electric vehicle (EV) company, Tesla (NASDAQ: TSLA), has instituted a number of price reductions in an effort to entice buyers. Within the company's Q1 investor deck, Tesla wrote: "Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. So, being able to visualize and quantify how much the decline in cash flow is impacting the long-term growth prospects of the business will be supremely important in the coming quarters in particular.
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For Q1 2023, the company reported $441 million in free cash flow, down 80% year over year. Again, the thesis was that Apple would make up for the potential drop in revenue from the price reductions by selling more iPhone devices. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Goldman Sachs Group, JPMorgan Chase, and Tesla.
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On top of that, his electric vehicle (EV) company, Tesla (NASDAQ: TSLA), has instituted a number of price reductions in an effort to entice buyers. Following the earnings report, Tesla stock was bombarded with a number of stock price reductions from Wall Street banks. Within the company's Q1 investor deck, Tesla wrote: "Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate.
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This is nearly an 8% decline year over year, and almost 5% decline from the fourth quarter of 2022. The strategy behind cutting the prices of goods and services is pretty simple. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Goldman Sachs Group, JPMorgan Chase, and Tesla.
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16124.0
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2023-04-30 00:00:00 UTC
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Where Will Apple Stock Be in 3 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-3-years-0
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Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Even legendary investor Warren Buffett has benefited, as Berkshire Hathaway has been a shareholder for over seven years now.
But with a market capitalization of $2.6 trillion (as of this writing), investors are likely wondering what's in store for this dominant enterprise as we look ahead. Along the same line, where will Apple stock be in three years?
Apple's ubiquity
Investors are all too familiar with just how important a single product is to Apple's fortunes. The iPhone represented 56% of total company revenue in the latest fiscal quarter (Q1 2023 ended Dec. 31). And it's the gateway product that brings consumers in.
"We're proud to now have over 2 billion active devices in our installed base," CFO Luca Maestri said on the Q1 2023 earnings call. This massive installed base has doubled over the past seven years, a remarkable feat that exemplifies Apple's ubiquity. While the majority of these devices are iPhones, it's worth noting the success of Apple's other products.
Apple isn't resting on its laurels. It's continuing what it has long been known for -- a relentless focus on innovation. Refreshing existing products, like the iPhone, MacBook, or Apple Watch, is always a part of the game plan. But sometimes, completely new products are introduced. The most anticipated product release in the near term is a headset that combines augmented reality and virtual reality, which is set to launch in June. There are also rumors swirling that Apple could be working on a phone that folds.
There's possibly an even bigger product on the horizon that can be an absolute game changer. It is still believed that Apple is working on an electric vehicle. Unsurprisingly, information about this is scarce, but it's hard to imagine a scenario where an automobile designed and made by Apple, with integration into the software ecosystem, doesn't immediately become a hit. And because the car market is gigantic, this has the potential to move the needle for the business.
Although Apple isn't usually the first to bring a new product to market, it has proven that what it offers can be the best. Finding ways to have a higher number of active devices across the world, whether it's phones, tablets, headsets, or cars, feeds into Apple's powerful ecosystem, making its economic moat that much stronger.
Besides beautiful hardware products, Apple's services segment is becoming a more important part of the business that drives customer loyalty and stickiness. In the latest fiscal quarter, services accounted for 18% of total sales, a percentage that has increased steadily over time. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead.
Moreover, Apple's ongoing foray into financial services has been impressive, with Apple Pay, Apple Card, and now a high-yield savings account added to the mix. The business attracts a more affluent customer base, so these offerings are poised to do well in the long run, providing Apple with another key revenue driver.
Apple's shareholder focus
With its gargantuan size and remarkable historical stock performance, it's hard not to like this company. With the combination of more active devices, proven pricing power, and a burgeoning services segment, Apple's revenue should continue marching higher. And with this, greater profits will follow. Berkshire Hathaway has already made a killing owning the company, and as of Dec. 31, Apple constituted 44% of the overall portfolio. As a result, Buffett is clearly still bullish on the stock.
And for good reason. Apple has rewarded its shareholders in spectacular fashion. The share price is up 132% in just the last three years. And since the start of fiscal 2020, Apple has paid over $47 billion in dividends. But if that isn't enough, the business continues repurchasing shares like there's no tomorrow. Over the past 13 fiscal quarters, Apple has spent a whopping $267 billion on buybacks.
Clearly, this is a cash machine that is well positioned to keep up the outstanding fundamental performance investors have become accustomed to. And this bodes well for the stock.
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 April 24, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Unsurprisingly, information about this is scarce, but it's hard to imagine a scenario where an automobile designed and made by Apple, with integration into the software ecosystem, doesn't immediately become a hit. Finding ways to have a higher number of active devices across the world, whether it's phones, tablets, headsets, or cars, feeds into Apple's powerful ecosystem, making its economic moat that much stronger.
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Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. The iPhone represented 56% of total company revenue in the latest fiscal quarter (Q1 2023 ended Dec. 31). In the latest fiscal quarter, services accounted for 18% of total sales, a percentage that has increased steadily over time.
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Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Apple's ubiquity Investors are all too familiar with just how important a single product is to Apple's fortunes. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead.
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Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Although Apple isn't usually the first to bring a new product to market, it has proven that what it offers can be the best. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead.
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16125.0
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2023-04-30 00:00:00 UTC
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AI Winners Aren't Who You Think
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AAPL
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https://www.nasdaq.com/articles/ai-winners-arent-who-you-think
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nan
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nan
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Artificial intelligence is the biggest buzzword on the market today, and there are a lot of ways to invest in this area of growth. But the biggest winners dominating the discussion today might not be names like NVIDIA (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) but rather companies that haven't even formed yet. In the video below, Travis Hoium covers how the industry could play out.
*Stock prices used were end-of-day prices of April 22, 2023. The video was published on April 24, 2023.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 24, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Intel. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Artificial intelligence is the biggest buzzword on the market today, and there are a lot of ways to invest in this area of growth. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia.
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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. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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See the 10 stocks *Stock Advisor returns as of April 24, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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But the biggest winners dominating the discussion today might not be names like NVIDIA (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) but rather companies that haven't even formed yet. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia.
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16126.0
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2023-04-29 00:00:00 UTC
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3 Stocks to Buy Before They Become the Next Trillion-Dollar Companies
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-before-they-become-the-next-trillion-dollar-companies
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The problem with finding stocks that could be the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) is that you’re looking for a needle in a haystack. How many investors knew they had the tiger by the tail when buying either stock in 2010? Very few. So what should investors look for to find the next trillion-dollar companies? Is it incredible revenue growth? How about big profits? There’s no obvious answer.
Of all the S&P 500 stocks, only four have a market capitalization of more than $1 trillion: Apple, Amazon, Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL, GOOG). Moreover, the average age of these four companies is around 37 years. Therefore, the odds are low that firms founded in the 2000s will be the next trillion-dollar companies.
Of the names below, the latest was founded in 1993. And while other companies may currently have larger market caps, these ones have the best shot at becoming the next trillion-dollar companies.
NVDA Nvidia $277.49
BRK-B Berkshire Hathaway $328.55
V Visa $232.73
Nvidia (NVDA)
Source: JHVEPhoto / Shutterstock.com
Chipmakers Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have batted for supremacy in the graphics processing unit (GPU) market over the past decade. While AMD’s chips are cheaper, Nvidia’s are generally more powerful, with the latter focused on the high-end chip market.
In terms of stock performance, AMD has seriously outperformed NVDA over the past five years, gaining more than 700% while NVDA is up around 400%. Yet, NVDA has outperformed so far in 2023, rallying 90% compared with a 35% advance for AMD. In addition to the broader rally in chip stocks, Nvidia is benefitting from investors’ excitement about artificial intelligence (AI).
As my InvestorPlace colleague Alex Sirois recently noted: “The firm’s H100 graphics cards are required to train and deploy AI software and are in short demand. Those chips are fetching between $36k to $46k through retailers and eBay. Nvidia’s H100 chips are the newest chip from Nvidia and are proving integral to generative AI and large language models like ChatGPT.”
The reality is I like both NVDA and AMD and their chief executive officers (CEOs). AMD CEO Lisa Su has done a masterful job guiding the company through the semiconductor landmines of the past decade. Meanwhile, Nvidia CEO Jensen Huang has done an excellent job capitalizing on secular trends in technology such as artificial intelligence, data centers and cloud computing.
From an investment standpoint, it’s hard to pick a winner between AMD and NVDA, but this is an article about the next trillion-dollar companies. I think Nvidia, which currently has a $685.4 billion market cap, gets to $1 trillion before anyone else.
Berkshire Hathaway (BRK-B)
Source: sdx15 / Shutterstock.com
Of all the companies listed on a U.S. stock exchange, Berkshire Hathaway (NYSE:BRK-B) is the largest without hitting the trillion-dollar mark with a market cap of $723.3 billion. Warren Buffett’s business is a beauty to behold, but it’s not exactly a growth machine in the traditional sense.
A quick look at Berkshire’s 2022 shareholder letter highlights that since 1965, BRK-B stock has delivered an annual gain of 20% on 29 occasions out of 57 years. Over the same time, the S&P 500 has delivered a 20% return, including dividends, in 19 out of 57. Who says Berkshire’s not a growth stock?
Berkshire stock likely doesn’t get as many buyers as it should because investors are worried about the Warren Buffett discount. What’s that, you ask? It’s the amount investors think its share price drops when the Oracle of Omaha finally goes to his maker.
I’ve argued for years that if Berkshire were to systematically dismantle its assets through a carefully planned auction process, the proceeds would be significantly higher than $329 a Class B share.
For example, the 2022 shareholder letter points out that, in 1994, Berkshire completed its seven-year accumulation of Coca-Cola (NYSE:KO) stock, paying $1.3 billion for the 400 million shares. Today, those shares would cost $25.7 billion. In 2022, Coca-Cola paid Berkshire $704 million in dividends, or 54% of its total investment.
You can’t put a price on that kind of value creation.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) would have to more than double its current market cap of $487.4 billion to get to $1 trillion. But, over the past five years, it’s generated a cumulative return of 85%. If it keeps up this pace, it ought to get there by 2030.
How does it get there sooner? It becomes the fintech of all fintech stocks. How likely is that? It’s possible.
Visa reported its fiscal second-quarter results on April 25. Revenue of $8 billion was 11% higher than a year earlier and $200 million better than the analyst estimate. On the bottom line, net income of $4.3 billion was up 17% year over year, good for a 54% net margin. For comparison, Apple’s is less than half that.
“I have been at Visa for nearly a decade and I have never been more excited about the opportunities in front of us,” stated CEO Ryan McInerney in the accompanying press release. “While there is macroeconomic uncertainty, I feel confident in Visa’s ability to manage through changing environments.”
McInerney said in Visa’s analyst conference call that FedNow, the real-time payment system to be introduced by the Federal Reserve in July, is the most significant update to the U.S. payment system in the past 40 years.
“Modernizing the payments infrastructure in the United States is a smart thing to do,” he said. “It’s a necessary thing to do, and it’s good for Americans.”
Rather than be worried about FedNow, he’s excited to see how it can help Visa become even better for its customers. A business that can win in most or all economic environments is a smart long-term bet.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post 3 Stocks to Buy Before They Become the Next Trillion-Dollar Companies appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The problem with finding stocks that could be the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) is that you’re looking for a needle in a haystack. As my InvestorPlace colleague Alex Sirois recently noted: “The firm’s H100 graphics cards are required to train and deploy AI software and are in short demand. Meanwhile, Nvidia CEO Jensen Huang has done an excellent job capitalizing on secular trends in technology such as artificial intelligence, data centers and cloud computing.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The problem with finding stocks that could be the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) is that you’re looking for a needle in a haystack. NVDA Nvidia $277.49 BRK-B Berkshire Hathaway $328.55 V Visa $232.73 Nvidia (NVDA) Source: JHVEPhoto / Shutterstock.com Chipmakers Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have batted for supremacy in the graphics processing unit (GPU) market over the past decade. In addition to the broader rally in chip stocks, Nvidia is benefitting from investors’ excitement about artificial intelligence (AI).
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The problem with finding stocks that could be the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) is that you’re looking for a needle in a haystack. NVDA Nvidia $277.49 BRK-B Berkshire Hathaway $328.55 V Visa $232.73 Nvidia (NVDA) Source: JHVEPhoto / Shutterstock.com Chipmakers Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have batted for supremacy in the graphics processing unit (GPU) market over the past decade. Berkshire Hathaway (BRK-B) Source: sdx15 / Shutterstock.com Of all the companies listed on a U.S. stock exchange, Berkshire Hathaway (NYSE:BRK-B) is the largest without hitting the trillion-dollar mark with a market cap of $723.3 billion.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The problem with finding stocks that could be the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) is that you’re looking for a needle in a haystack. So what should investors look for to find the next trillion-dollar companies? Over the same time, the S&P 500 has delivered a 20% return, including dividends, in 19 out of 57. Who says Berkshire’s not a growth stock?
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16127.0
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2023-04-29 00:00:00 UTC
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The 3 Best Vanguard ETFs for May 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-vanguard-etfs-for-may-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing in ETFs comes with many advantages when compared to buying shares of a company and mutual funds. ETFs (Exchange-Traded-Funds) are groups of investments that typically carry a theme such as a dividend, technology, large-cap, etc. ETFs can be bought and sold on stock exchanges like regular securities.
They offer investors a more stable and efficient form of trading through actively and passively managed funds. ETFs are an excellent vehicle for investing with the benefits of a comprehensive portfolio without the constant upkeep, stress, and research.
Vanguard Russell 1000 Growth ETF (VONG)
Source: Shutterstock
Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) It is an ETF that tracks the Russell 1000 Index that offers exposure to large-cap stocks. It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%.
As of April 26, VONG is trading at $61.76, also a plus in the list of large-cap ETFs. It is relatively inexpensive. Year-to-date, the fund is up almost 12.31%, making it one of the best-performing Vanguard ETFs this year. It has a 0.08% expense ratio and a 0.90% annual dividend yield.
VONG has seen a large amount of growth recently, and it is a stable ETF that follows large-cap companies. This fund is one of Vanguard’s best-performing ETFs this year and carries a decent dividend, making it a perfect portfolio piece.
Vanguard Dividend Appreciation ETF (VIG)
Source: Casimiro PT / Shutterstock.com
Vanguard Dividend Appreciation ETF (NYSE:VIG) It is a large-cap blended fund that tracks the S&P 500 Dividend Growers index. VIG is comprised of 315 stocks, with the largest holdings being Microsoft Inc., which takes up almost 5% of the fund, Apple Inc., which is 4%, and Exxon Mobil Corp. (NYSE:XOM), which is 3%.
As of April 26, the fund is trading at $153.68; it also has a decent amount of volume at over 1 million on average per month. Year-to-date VIG is up approximately 2%; It has a low expense ratio of just 0.06%. Where it shines is the annual dividend yield which is 1.93%, which is nearly double what most other Vanguard ETFs offer.
VIG has tripled in price over the last ten years. With its substantial dividend yield and steady growth, this fund is a perfect addition to an investor’s ETF portfolio.
Vanguard Small-Cap Growth ETF (VBK)
Source: Shutterstock
Vanguard Small-Cap Growth ETF (NYSE:VBK) VBK is a small-cap growth fund that tracks the CRSP U.S. Small-Cap Growth Index. This fund holds 671 stocks, with the three primary holdings being Fair Issac Corp. (NYSE:FICO) which takes up 0.85%, Tanga Resources Corp. (NYSE:TRGP), which is 0.84%, and Liberty Media Corp-Liberty Formula One (NASDAQ:FWONK), which is 0.75%.
As of April 26, the price of VBK sits at $209.67, and its year-to-date return is 4.74%. Its expense ratio is 0.07%.
This fund is best suited for investors looking for exposure to small-cap companies while avoiding the large amount of risk that comes with that investment strategy. VBK has grown consistently over the years since its inception in 2004.
On the date of publication, Noah Bolton 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.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.
The post The 3 Best Vanguard ETFs for May 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%. This fund is one of Vanguard’s best-performing ETFs this year and carries a decent dividend, making it a perfect portfolio piece. VIG is comprised of 315 stocks, with the largest holdings being Microsoft Inc., which takes up almost 5% of the fund, Apple Inc., which is 4%, and Exxon Mobil Corp. (NYSE:XOM), which is 3%.
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It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%. Vanguard Russell 1000 Growth ETF (VONG) Source: Shutterstock Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) It is an ETF that tracks the Russell 1000 Index that offers exposure to large-cap stocks. Vanguard Dividend Appreciation ETF (VIG) Source: Casimiro PT / Shutterstock.com Vanguard Dividend Appreciation ETF (NYSE:VIG) It is a large-cap blended fund that tracks the S&P 500 Dividend Growers index.
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It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%. Vanguard Russell 1000 Growth ETF (VONG) Source: Shutterstock Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) It is an ETF that tracks the Russell 1000 Index that offers exposure to large-cap stocks. Vanguard Dividend Appreciation ETF (VIG) Source: Casimiro PT / Shutterstock.com Vanguard Dividend Appreciation ETF (NYSE:VIG) It is a large-cap blended fund that tracks the S&P 500 Dividend Growers index.
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It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%. Year-to-date, the fund is up almost 12.31%, making it one of the best-performing Vanguard ETFs this year. Vanguard Dividend Appreciation ETF (VIG) Source: Casimiro PT / Shutterstock.com Vanguard Dividend Appreciation ETF (NYSE:VIG) It is a large-cap blended fund that tracks the S&P 500 Dividend Growers index.
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Reviewing Stock Samplers With "Rule Breaker Investing"
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In this podcast, Motley Fool senior analysts Jason Moser and Jim Mueller take a look at two five-stock samplers from the past: 5 Stocks for the Coronavirus and 5 Stocks to Teach You Rule Breakers.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 12, 2023.
David Gardner: Have you ever done something that was absolutely amazing. After a short period of time, I don't know say a year, absolutely amazing for a whole year? But then two years after that, it's like the worst thing you've ever done. The worst. First to worst. We're talking Kodak like first to worst. Richard Nixon, Florida Marlins 1997-1998, they win it all, and then each in their own ways first to worst. I've been there, I've done that, and if you're a vintage Rule Breaker Investing listener, you've been there with me. If you're a Rule Breaker investor, you may have invested here with me. The good news, first to worst is incredibly rare. The Florida Marlins won at all in 1997, but then one year later they became the worst team in baseball largely because they traded off all of their stars, but the reason I remember this is it doesn't happen very often, nor has it for my five-stock samplers, so the good news incredibly rare, the bad news. First to worst happens. Stuff happens. It happened. Five stocks to teach Rule Breakers and five stocks for the coronavirus. Please join me for this special review-a-palooza episode with guest stars Jason Moser and Jim Mueller. Only on this week's Rule Breaker Investing.
Welcome back to Rule Breaker Investing. Thanks for joining in this week. I want to mention something before we go into this week's podcast that's happening on Friday of this week, so I hope you're hearing this podcast as it comes out which it tends to do somewhere around 4:00 P.M Eastern every Wednesday. Well, we have a Motley Fool Foundation celebration. It's our one-year anniversary. You're invited to help celebrate our one-year anniversary and that's this Friday, April 14th at 3:00 P.M Eastern. I get to host a live event. You are invited, it's free. You're going to get to learn about our latest investment in financial freedom. Let's call it three bright sparks in financial freedom today it will be a Foolish conversation between some new Rule Breakers. I'd love for you to meet and little me, David Gardner. You can register now at Fool Foundation. We've talked about our foundation some over the last couple of years now celebrating our first-year anniversary we have some results and some new developments to share and a lot of you are on this journey with me as a community.
I'm delighted to report back, I am the Board Chair of the Motley Fool Foundation and I'm excited about 3:00 P.M. Friday. If you have some time for us, sign up for free fool foundation.org. Well, 30 separate times about every 10 weeks on this podcast over six years, I picked five stocks. I chose a theme that made sense to me at the time, sometimes sublime and sometimes silly, and then I thought to myself, what are the five best recommendations that I can come up with for stocks that fit that theme. Aiming of course always to beat the market, the S&P 500, otherwise hey, why are we bothering? Well, then one year later, we review the picks and then another year passes the two-year review, yeah. Two years later we never forget, we hope you wouldn't also, we score everything transparently and accountably because we're Fools. You've grown to expect that of us. Then the three-year review which is going to be the most telling, and why is that? Well, first because three years have passed since I picked those five stocks, we really can be smarter about what has happened and why and what we can learn, and that's the smarter part. But if I've done my job well then we'll also be happier and richer too.
That three-year review is also telling because most of the time we end the game right there. We're going to keep holding those stocks in real life mind. You should do so too if you own them, but if I kept reviewing all 30 of my samplers in years four, five and six, etc. Well, we wouldn't have time to do much else on this podcast, so 30 separate times I picked five stocks. I've called them my five-stock samplers and we're going to review two of those samplers today. Five stocks that teach Rule Breaker and five stocks for the coronavirus and review them. We will with my two analysts, guest stars Jason Moser and Jim Mueller. Now I already put a spoiler alert out there right up front on this week's podcast. Get ready to witness an unbelievable whipsaw with one of these five-stock samplers which went from the greatest performer of all time to the worst performer all in the space of just three years, and Jim Mueller and I will talk about that on the backend of this podcast.
But first, we're going to lead off with five stocks that teach Rule Breaker, and as I pick this group of stocks two years ago, this very week, the year was of course 2021. I was thinking what are five companies that illustrate what a rule breaker is. A top dog and first-mover in an important emerging industry a company that has strong past price appreciation, visionary leadership, companies that are perceived to be overvalued by many others, all of the classic traits of Rule Breaker stocks. What are some stocks that would teach that, and because I've made a lifetime of finding such stocks, there are dozens and dozens of them that I could draw on from hundreds of recommendations made over the years, but two years ago this week I thought, let's have fun. I'll just randomize. I pick the letter A and so we found five stocks, all of which five companies, all of which began with the letter A and those are the five stock picks. That will be five stocks to teach Rule Breaker. Here to help us learn from five stocks that teach rule-breakers, my friend Jason Moser. Jason, great to have you back on Rule Breaker Investing.
Jason Moser: David, thanks so much for having me. It is wonderful to be in the studio here with you.
David Gardner: You betcha now discerning listeners will note that the sound quality is a little bit better.
Jason Moser: I think so.
David Gardner: Then when it's in our respective dens Jason?
Jason Moser: I think that's a fair statement.
David Gardner: Thank you, and I note that you and this is just an audio podcast, not a YouTube production, but Jason I'll note that you're wearing quite a forest green shirt, and because I know you're a great golfer, which you really are a former golf pro and a golf fan, I thought of the masters green jacket because your shirt is awfully close.
Jason Moser: I wish it were a masters green jacket, but thankfully. This is the lovely shirt that my wife gave me for Christmas and she's thrilled every time I put it on.
David Gardner: Wonderful. Did you watch the Masters over the weekend?
Jason Moser: I watched it all, yeah. It's my favorite sporting event of the year.
David Gardner: Any Hot takes?
Jason Moser: Wow. There are a lot. Unfortunately, I think we probably have seen Tiger Woods' best days are probably behind him. Just injuries I think have caught up with him. I think really for me I know a lot of people wanted to make it about live. I don't really look to that. I think for me the story is more interestingly on the golf ball side. We're seeing more and more talk about these two golf balls Rayva, the golf ball for professionals that doesn't go as far, and then everybody else gets to play the latest and greatest technology that goes as far as you can hit it. I tend to fall on the side. I'm not splitting the golf balls up. I think it's neat that we all get to play with the same equipment. It's going to be very interesting to see how this equipment debate plays out over the next year.
David Gardner: Before we came on the air Jason, you were pointing out that someone like 52-year-old Phil Mickelson really benefits from the technology, the distance the golf balls can go these days, of course, the clubs that drive them as well, so there's so much innovation that's happened in the good old game of golf that it's made us superhuman in some cases. People who like are these courses too short?
Jason Moser: It lets a lot of us old guys keep up which is a lot of fun, [laughs] so I feel like maybe this solution is cap it. Don't let it go any further and then you can probably play with the golf courses that we built but there's so many ways you can defend the golf course, whether it's the rough or the speed of the greens or how wide or narrow the fairways are and there are a lot of variables at play. I don't think the golf ball is necessarily the answer.
David Gardner: I have to admit I have not been keeping up that well with the PGA Tour, but you were mentioning that there are some timing concerns these days. Like the game of baseball, it's taking a little bit longer than it needs to. This is after all a television-driven entertainment phenomenon. All of these sports are, and so a shot clock is being considered.
Jason Moser: I think the pace of play is always a very polarizing issue. Most people like to be able to keep it moving. They do have rules in place to try to account for that. Not very good at it enforcing them David, and that's the problem. You've seen what that pitch clock is done, the baseball and I think for some of us who maybe were a little skeptical of it at first. It really has. The pace of play is far better. I'd love to see them do something like that with golf and sorely needs that they need to pick up the pace a little bit.
David Gardner: Duly noted and I will say that as a baseball fan who probably is more of a purist myself, I was not really looking forward to the rules change. I especially didn't like that you couldn't position your fielders wherever you wanted them to, because I love the analytics and I love the innovation and having four guys on one side of the field and nobody even on the left side of the field. I love that except that I have to admit having watched the first 10 days or so of this new season I'm enjoying watching the second baseman actually play second base and sometimes the ball going up the middle and going between the shortstop and the second basement which wasn't happening as much last year. I actually think even though it felt retro-aggressive to me, I feel as if the game has improved.
Jason Moser: It's funny. Change initially is sometimes difficult for us to accept, particularly with things that we've loved for so long, but then you experienced it and you see how maybe some changes work out pretty well, and I think with baseball and golf and all of these sports. Ultimately you make changes, you tweak them along the way. It's all with the goal of making the game better, and so hopefully that's what they're keeping in mind.
David Gardner: These are both sports where you're clubbing something a little white ball with a bigger implement and so there are some bigger implement. I will say that between the two sports, it feels as if people can keep playing golf at a higher level much longer than baseball, but we don't need to cast dispersions so driving these distinctions. Let's move on to five stocks to teach Rule Breakers, so Jason I pick this group of stocks, this basket two years ago this week it was April 7th, 2021, five stocks to teach Rule Breakers. I've already mentioned that these all start with the letter A because we're having fun on this podcast, and you have taken the time, and thank you, sir, to revisit these stocks now two years later and for each of them, let's focus on the top reason in your mind Jason Moser, that the stock has done what it's done. We'll also be covering the numbers and the performance because that's what I do, and we're going to go through these, Jason, alphabetically. Are you ready?
Jason Moser: I'm ready.
David Gardner: Good. Alphabetical by company name, so the first of the five and I'll just mention right now. The five in order we're going to be talking about Activision Blizzard, and then AeroVironment, Airbnb, Apple, and Axon Enterprise. Those are the five stocks we're checking with. Again this is a three-year journey and we're just at the end of Year 2. They have a year to improve their performance. Let's kick it off with Activision Blizzard. Jason, this stock two years ago, 96.84, $96 a share or so today 85. The stock is down 12 percent. Now the S&P 500 is up 1.1 percent. That's the bogey we're competing against. Jason Moser, the market has been basically flat over these last two years, up one percent, the stock down 12 percent. What hasn't been happening at Activision Blizzard headquarters?
Jason Moser: There's been a lot going on. This one really is right now. It's very tied to Microsoft's efforts to acquire the company outright which I think ultimately my belief is we will ultimately see that happen but right now there is still plenty of uncertainty out there in regard to the deal, and as a reminder this was an acquisition announced in January 2022, and Microsoft's entails.
David Gardner: It feels like a long time ago. [laughs] Actually it was a long time ago.
Jason Moser: Close to two years and a half I guess, so that's been a little while, but they made the offer at $95 per share and so right now the big concern is on the regulatory front which is understandable antitrust concerns and plenty of reviews going. This is a global business, and so it is not something that is tied just to domestic regulators, and with that in mind, we recently saw UK regulators drop their concerns as the company continues to try to do what it can to make the deal happen. There's still a very big sticking point with Sony, and I think that makes a lot of sense because Sony is obviously a very big competitor in this regard with its Play Station. You have Microsoft with Xbox and Sony with Play Station and the big concern there is if Microsoft acquires Activision Blizzard, and it makes all of that content exclusive just to Microsoft platforms as well, you can understand regulators' concerns there.
David Gardner: Sure. Call of Duty is one of Activision's many best-selling titles that have been around for so long. Imagine if that went console exclusive just to the Xbox. Now, it seems unlikely, to me if I'm the CEO of Activision Blizzard, which I'm not, although I've met him before, I'm thinking I want to sell as many copies of this game as possible. Why would I actually not sell to the biggest platform of all Sony's Play Station 5? I even see some of the Microsoft lobbying efforts to suggest that play station is almost a monopoly at the high end of consoles these days with its exclusive content. It's a really interesting world, but for me anyway, I don't think it's in Activision Blizzard's best interests just to sell on Xbox.
Jason Moser: No. I fully agree and I don't think we will see that happen. I agree with you that you'd want to try to get this content out to the biggest audience possible. That's just normal. Think of something like a Netflix. They just want to get that content out to as many people as one, and so I think that's ultimately what we will see, and I think what we're seeing is with regulators, with companies voicing concerns they want to ensure that that won't happen that Microsoft won't build that walled garden once this deal finalizes, and I think in that case if you google the news here, you'll see another headline every day, Activision Blizzard, inks another deal with certain distributor for 10 years. They're going to get this content out they're signing agreements to make sure that it's not something where they do build ultimately that walled garden, and so when you see shares today at $85, that's clearly a discount to the $95 acquisition. Now it's also a good bit higher than the 52-week low for Activision Blizzard which is around 70. I think we're starting to see the market buying into the notion that this deal will ultimately happen.
David Gardner: When you mentioned that low Jason, it sounds fair deal, lower than 85 that lower of 70, but really that's not a very volatile stock, especially during a very volatile year or two. Because of Microsoft's offer it's created a trading pattern for Activision Blizzard ticker symbol ATVI. Basically, it's just been bouncing between 75 and the low 80s pretty much for the last year or so waiting to see if this deal would be consummated. I will mention when the deal was initially announced as you mentioned in January 2022, the stock bounced 65 to 85 overnight, but it's been going sideways for a year-and-a-half now which has not helped its performance for my five-stock sampler. I was not promising a buyout when I pick this dock back in 2021 again, April two years ago this month, but that's what's happened. We're sitting here on a stock that's down 12 percent with the market up one percent, and therefore Activision Blizzard starts us with a -13. We're in the hole on this sampler. Let's move on to stock Number 2. As I mentioned next alphabetically is AeroVironment. Now ticker symbol [inaudible] Jason, not one of the better-known companies in all of Corporate America today, but what does AeroVironment do?
Jason Moser: Well, this is a fascinating little business. They have to deal with some very well-endowed competitors, but they continue to build out the strong line of products on the cutting edge and things like Unmanned Aircraft Systems, tactical missile systems. This is real deal stuff.
David Gardner: The age of drones.
Jason Moser: [laughs] Not everybody can do it and I think that's one of the big parts about this business, and it is just a tiny business too. It's a true small cap. I think the market cap is just over $2 billion. But when you think about a business like this, do you think about what they do you would probably lean to thinking that a lot of their revenue is generated from government partners and you would be right. Close to 60 percent of their sales in 2022 were thanks to the US government. They also have considerable exposure as well to foreign militaries as well, so when you put it all together, I mean this is a business that is very tied to government spending. That's not necessarily a bad thing either reminds me a lot of Booz Allen Hamilton, which is a company that I follow here. In the near-term it's sleepy, but over the long haul you see how it really pays off, and I think that when you look at AeroVironment, you stretch this thing out over five years, it becomes a little bit more obvious. Returns on this stock over the last five years, better than 125 percent, so patience has paid off.
But it's a business we're not immune to the supply chain issues that we've been dealing with, they are not immune to the inflationary concerns that we've been dealing with. The conflict in Ukraine is something that has really impacted this business. In some ways good, some ways bad. I mean this is a company where you see a lot of their equipment being used in this conflict, but by the same token, you're also seeing Department of Defense spending shifting. They're allocating their resources a little bit based on what they need as the conditions evolve and that impacts this business to a degree. Again, that is a near-term concern. That's not something that will last forever and they are continuing to invest heavily in research and development which is the lifeblood of a business like this. I don't hold that against them, but all in all I think that it's one of those businesses where you really do need to stretch out your timeline and look over longer periods of time. It makes a lot more sense to hang onto these.
David Gardner: Well, we can't really do that with a five-stock sampler when I make it a three-year game, but as I mentioned at the top, if we've made it truly a long-term venture, I would never be doing anything else in this podcast, but doing review apaloozas which I don't mind. It's fun. I get to hang out with my friends and talk stocks which is a lot of the reason this podcast exists anyway. Again, thank you for joining in with me. Jason. I'm remiss in not mentioning the performance of the stock. It was at $113 ish two years ago, it's now at 106 ish. The stock is basically down seven percent, the market's up one percent. It did have an upgrade from Raymond James earlier this month. It's a rocking stock if you're just looking at April, but overall down seven percent, so sticking with my numerical accounting here Jason where -7 versus the market's +1, so it's eight points underwater. We're going to add that to the 13 points underwater that Activision Blizzard has set us and we're starting with a -21 as we move on to stock number three. Now stock Number 3, the ticker symbol is A-B-N-B, and this is a much better-known company than AeroVironment Jason do you ever Airbnb as either a customer or maybe a landlord yourself?
Jason Moser: Why David, I have done both as a matter of fact, and I just stayed at an Airbnb last week when we were on spring break with the family.
David Gardner: I'm so glad I picked this stock two years ago and then had you review it this week? It's kismet. Airbnb is a service that you've really enjoyed.
Jason Moser: Very familiar with it. Yes, and it's funny I was talking with Chris Hill just the other day about this. Last year we had the good fortune to take our family to France for spring break. We stayed at an Airbnb and we Ubered everywhere. I came back with the realization that Uber passes your snap test, David.
David Gardner: Great.
Jason Moser: It can't go anywhere. It is too important and that really led me to dig into it and ultimately recommended one of my services here.
David Gardner: Great.
Jason Moser: I got back from spring break this year with the same feelings on Airbnb David. I really do believe that not only from the consumer's perspective is it an important business, but it is also an important business from our business landscape here, domestically and really internationally. This is a global business.
David Gardner: Jason, thank you for calling out the snap test. You know I appreciate that on this podcast. That's one of my past five-stock samplers. It's five stocks that passed the snap tests, but that's not true of this group, although it is true of Airbnb. The snap test of course, if you snapped your fingers and accompany disappeared overnight, would anyone the next day notice, would anyone care in the stocks that I've favorite, I think I can say here we favor Jason are companies where everybody would notice and a lot of people would care. Presumably, they'd be heartbroken if their favorite purveyor of a product or service that they treasure disappears and that is gone, and so those are often in my experience, the companies that you want to own in your portfolio over long periods of time. Now, Airbnb with a market cap of $75 billion today is no spring chicken, even though it's a younger company than many other public companies today. Here's the problem I have with Airbnb Jason. I picked it for this five-stock sampler two years ago this week and this is the single worst performer of the five. I regret to say that Airbnb was at $180 a share two years ago this week. Today it's around 114 or so. I have to admit this one is down 36 percent. The market is up one percent as we've been talking about, so this is 37 percentage points more of negative Alpha and really on its own, Airbnb has exceeded. If you combine the badness, the mediocrity of AeroVironment, Activision Blizzard together, Airbnb has been even worse than those together. What is in your mind Jason, the number one reason that Airbnb has underperformed to the extent that it has losing about a third of its value in the last two years?
Jason Moser: I think with a business like this, it really more than anything, it's timing. I think with a business like this valuation is often going to be one of the bigger near-term risks. Let's put this into perspective. The Airbnb IPO in December of 2020, so I mean from that perspective still very young business getting its sea legs, learning how to live life as a publicly traded company, but it's worth noting like Airbnb opened at $146 per share on its first day of trading, more than double the $68 per share price set at the IPO. Now, this is so much enthusiasm that it actually took Airbnb's market cap beyond the size of another one of your favorites, booking.com. Now think about that for a second. Here you've got booking.com brought in $6.8 billion in revenue in 2020. Immensely profitable, proven, massive network, tremendous business. Here comes to Airbnb with its $3.4 billion in revenue in 2020, it still working, its way to meaningful profitability, and now the market is telling you it's worth more than Booking.com. I love the enthusiasm. I think that one day it is worth more than booking.com. I think there was just a lot of enthusiasm when it went public and I think that's what took the valuation maybe a little bit ahead of itself at the time. So I think the good news for investors really is I think it's just a matter of time. I mean there was a lot of enthusiasm when this company went public, but when you see what the business continues to do, I mean revenue in 2021 was $6 billion. 2022 they grew that to $8.4 billion, net income in 2020, it was a loss of $352 million. In 2022 they brought that up to $1.9 billion of net income. Again, it's a business they're doing the right things. I think this was just a matter of the market, maybe being a little bit overenthusiastic about the IPO.
David Gardner: It hurts a little bit Jason because I was watching the stock and did recommend it for Motley Fool Rule Breakers. It had hit 220 in February of that year and so two months later it was April of 2020 and I'm like, look this thing is now down 220-180, so I felt like I was patiently waiting and yet admittedly, clearly I got it wrong. At least in this 2-year period, it's lost a third of its value, but I hear general bullishness from us both here Jason, that Airbnb is one of those businesses clearly passes the snap test to me and one that we want to own over the longer-term. Do you own shares yourself?
Jason Moser: I do not yet.
David Gardner: Jason.
Jason Moser: I do not yet, but I will tell you, but I agree with you on the snap tests. This is absolutely a snap test stock in talking with Chris Hill about it the other day and I told him about coming back from France, digging into Uber, coming back from spring break this year and I feel the same way about Airbnb. To me this is just one of those businesses the world is not going to be able to do without. I think that l, we love to say, the longer you can stretch out your investing timeline, the better your chances and I think for investors owning this stock today, regardless where you bought it, I think this is one you want to hang on to for as long as you possibly can because it's making a big difference in the travel business.
David Gardner: Well mark it down of course, every one of the podcasts that we've done here at the Motley Fool is permanent, whether it's a Chris Hill lead Motley Fool Money or I started this podcast in 2015. Everything that we've said is out there forever, so we're on record here and we're never going to make a short-term prediction, and arguably even a three-year game of the five-stock sampler is a shorter-term game than we actually play in our portfolio. That makes it a little bit more of a fun game, but Airbnb you and I both like here at $114.62 which is where it's trading as we speak here on Tuesday, April 11th. Well, let's move on to the last two, Jason and speaking of companies that pass the snap test. Stock number four alphabetically, I don't know if you've ever heard of these guys before Apple.
Jason Moser: Sounds familiar.
David Gardner: Sounds familiar? Have you ever tried one of their products, or seen anyone using one?
Jason Moser: Maybe you have one or two lying around the house. [laughs]. Apple is a phenomenal business, isn't it?
David Gardner: It is, and fortunately, it was part of this five-stock sampler because I'm happy to give the numbers right now. Apple was at $127.90 two years ago, this week it's now up to 161.5, so the stock's up 26 percent with the market up one percent that gives us a plus 25. By the way, I did account for Airbnb but when you add it in the minus 37 that Airbnb was bringing into this five-stock sampler. We were at 58 percentage points in total underwater, so getting back 25, thanks to Apple outperforming the market by 25 percentage points, sparks joy.
Jason Moser: It does spark joy. I mean, this is an amazing business in virtually every respect. I mean, it just what they've done through the course of history. I mean, you talk about your snap test, this is leading the pack, this is it. Apple to me, it's like pizza. I mean, it's not always going to be great. Like any other company in the world will witness times that are more challenging and others, it's not always going to be great, but you know what? Hey, it's still pizza, and hey this is still Apple. Even when Apple witnesses challenging times, it's still Apple. Let's not forget that. I mean, you look at the holiday season that they just turned in, I think many would probably focus on the fact that revenue was actually down five percent for the quarter, and to think of a company like Apple with revenue actually shrinking, wow, what happened? Well, as we said before with AeroVironment, they're not immune to the supply chain issues. They're not immune to inflationary concerns and what not, and so they have dealt with those challenges but the good news is, while revenue was down five percent for the quarter, that was still $117 billion of revenue that they chalked up for one single core.
David Gardner: A lot of this is increasingly software and services and the hardware, which is always still how most of us should I think, think about Apple, those smartphones, that hardware, the iMac, the MacBooks, the iPads that I have in my house as well, are all hardware, but a big focus for Apple in recent years has been on services.
Jason Moser: Well, the watches, the AirPods, all of it together.
David Gardner: I've forgot my watch, I've got that on too of course.
Jason Moser: It's tremendous ecosystem and you can be a little bit of an Apple user or you can be a lot of an Apple user. I mean, I have an iPhone and I have a Windows laptop, but everything works together. We've got some Amazon devices in our house, I mean, the beauty of Apple and I think you really keyed on it there with the services for the longest time we've recognized app was primarily a phone company. That's where most of the money came from but slowly they've really done a great job of diversifying away from just being the phone. They now have an installed base of over two billion devices around the world. I mean that's just astounding to think about, and ultimately what that allows them to do is grow that services business. That services business recorded revenue of just under $21 billion for the quarter that was up six percent from the prior year.
David Gardner: Presumably at higher margins than you'd be able to sell hardware at.
Jason Moser: It typically is. I think the nice thing about Apple is it's so premium. It's such good stuff. They are able to maintain some good pricing on that hardware as well. Well, you see a lot of companies hardware is a little bit of a race to the bottom, and with Apple, it's not really that way which I think gives it a little bit of extra staying power there. But in regard to services, they have more than 935 million paid subscriptions across all of the services on their platform now, that's up more than 150 million during the prior 12 months, and it's nearly four times what they had just five years ago. So you're seeing the results of all of these investments into growing that ecosystem beyond hardware. Along the way, they've been very shareholder-friendly. They continue to repurchase shares. Share counts down 16 percent since 2018. That'll continue. While the dividend yield today, which is under one percent. Sure that seems modest. Let's take the glass-half-full approach here, David, in understanding that that dividend yield will continue to grow over time as well, so even big companies can still continue to grow and reward shareholders,.
David Gardner: Two more things to say about Apple before we move on to the final stock, which for the record is Axon Enterprise, and I'm smiling about that, we'll talk about the numbers in a sec. But I'd like to just note that Apple, first of all, as a market cap, is literally 1,000 times AeroVironment, so AeroVironment is about 2.5 billion and Apple is about 2.5 trillion, and that leads to the second point, which, and I think this is very instructive since these are Jason and everyone listening, five stocks to teach Rule Breakers. I think one thing we can all learn is that there is a connection between what I think of as the world's greatest brand and the world's just about greatest stock performer over the course of now, more than a couple of decades. Those things are tied together. I truly believe that companies with great brands are often mistaken for one thing, brand doesn't really show up on the financial statements. I mean, you can do some goodwill if it gets acquired, this or that, but the things that are invisible to people who are looking at the financial statements or dialing their computer algorithms to look for certain numbers, or ratios, they're missing brand, and yet the companies that often have the greatest brands often, and Apple is a great example, are the greatest stocks that you could hold over the course of a long period of time. So Apple is front and center for me, one of those exemplars that do teach Rule Breakers a stock that we've had in our services for well more than 10 years now and a lot of happy Motley Fool members owning Apple. I'm happy to say Jason, as we go here to close with Axon Enterprise that Apple has been a stock that you wanted to hold these last couple of years. The market again up one percent, Apple up 26 percent. Let's close with Axon Enterprise ticker symbol A-X-O-N. Axon Enterprise was at $147.27 a share when I picked it on this podcast on April 7, two years ago, it's gone from 147-225, just about even. That's up 53 percent. I'm going to ask you that in a sec, but to account for the numbers here, that 53 percent gain minus the markets one percent gives me a plus 52. That's exactly what I need for this five-stock sampler to be beating the market two years in now, let's be real clear. This game is not over. It will not be over for another year. I personally, I'm pretty bullish on a number of these companies, so we'll see how it plays out. I'm also excited because what's coming after you, which is Jim Mueller talking about my worst five-stock sampler ever. I am celebrating. I'm looking for the light right now and basking in it with my friend in his green masters jacket with a shirt right across the mic from me. But Jason, what's been happening for Axon Enterprise?
Jason Moser: Thank you for putting me on the good side.
David Gardner: Absolutely. You just looked like a winner in here.
Jason Moser: Oh, I must admit I was following you to lead on this one because Axon I actually recommended shortly thereafter in May 2021 for our augmented reality service.
David Gardner: Awesome.
Jason Moser: Obviously very happy with the returns, very neat business in the virtual reality training tools that they offer. For folks who don't know what Axon does, I think you'd probably be more familiar with it. We just said taser. I mean, they are the company behind the taser stun weapons that we see police forces carrying.
David Gardner: Yeah, that used to be the company name, they changed their name.
Jason Moser: Yeah. I think the neat thing about Axon, this is a top dog, which I know is a trade of a Rule Breaker. This is a top dog and you really can't I don't think anyone can really name off the top of their head the closest competitor to Axon, they really do own this market. I think that's given them the leeway to be a little bit patient in how they develop this business. I think a lot of the strong performance is really coming from not only this market-leading position, but a strong and growing recurring revenue dynamic. There's not just the hardware side of the business, but there's the software and the services that they're providing a law enforcement so they can keep track of what's going on and add that visual documented proof that they may need in certain cases. You go back to April of 2021, annual recurring software revenue at the time it was $242 million, which represented 39 percent growth from prior year. You go to 2021 for the full year beyond just April, that full year of 2021, that recurring revenue was up to 327. A million dollars, 2022, they grew that revenue up to better than $360 million. This is higher-margin revenue. Apple with the services, this is like Axon services. It's higher-margin revenue is growing very quickly. Finally, i mean, this is just a business too. They continue to invest heavily in research and development to the tune of around 20 percent of total revenue every year, makes a lot of sense to me. They understand our market leading position. They are investing in that dominance and, I expect their performance to continue.
David Gardner: Well, thank you for that, Jason, and this is a company, I'm so glad that you brought it to Augmented Reality. Motley Fool members and certainly for Rule Breaker members over the years this has been a stellar performer. In fact, all of these companies well predate for Motley Fool members in their portfolios, the pick that I made two years ago on this five-stock sampler. Basically every stock ever pick for a five-stock sampler, we picked before then somewhere in one of our services, often at much lower cost bases like Apple. But that's irrelevant to the five-stock samplers and to listeners who are following these, because all that really matters is what happened from that point forward. From that 0.2 years ago this week forward, again, Axon, the star performer in this sampler up 53 percent, the market up one percent, take it all-in-all. After two of the three years of five stocks to teach Rule Breakers journey, they're up 4.8 percent on average, the market up now 1.0 percent as we speak. Happy to say 3.8 percent on average, beating the market largely on the strength of just Axon and Apple, the other three underwater, but we'll see a year from now. Jason, you want to hang out with me a year from now this week.
Jason Moser: Count on, and I'll be here.
David Gardner: Let's talk it through five stocks to teach Rule Breakers will close out a year from now, but we're not sending this wonderful Halla yet. There's 12 months ahead of us. Jason Moser, great to see again. Thank you so much for joining us again on Rule Breaker Investing.
Jason Moser: Yes sir. Thanks so much for having me.
David Gardner: I think it's fair to say this sublime, I'm not even sure three percent outperformance per stock is sublime, but compared to what we're about to do from the sublime to the ridiculous. In so many different ways, five stocks for the coronavirus have been ridiculous. I want to welcome in my friend, longtime Motley Fool analyst, Jim Mueller. Jim, welcome back to the show.
Jim Mueller: Thanks, David. Good to be here.
David Gardner: You know these companies.
Jim Mueller: I know a little bit about them.
David Gardner: Enough to explain what you're about to do.
Jim Mueller: Have to go on what's happening.
David Gardner: Why did the stock to what is it? That's what we're going to talk about. But before we just reflect on why, let's say Peloton, the first stock, we'll talk about. Why Peloton primarily did what it did over the last three years. It's necessary briefly to remind everybody what happened over these three years and obviously five stocks for the coronavirus being the name of this five-stock sampler. It was this very week, three years ago, April 8, 2020, and most of us were under a lockdown or we're about to be under lockdown. There were lots of unexpected things happening in the world. Jim, it's almost hard to get back in that mentality. People have said we may never get away from the coronavirus like the fluid may be here the rest of our lives, but at least the sense of pervasive fear in some cases, obviously huge human loss, which is real. But also just that locked down the change of how we do business, which stays with us even to this day. Jim, you and I are here in Fool HQ in Alexandria, Virginia in our lovely studios today. But still many of our fellow employees here at the Fool are working from home. That's not just true of The Motley Fool, that's true of so much of the working world today.
Jim Mueller: Yes, I think, and it's likely to stay that way for a while. But, and this ties into, I think why many of these companies have fallen so badly. Is that humans are human, and we're not tech. We'd like the personal interaction. There's all the body language that comes through and it's not just seeing the person's from the middle chest up. There's all other stuff that goes on, and there's the spontaneity of meeting and just talking with people before we started recording, you and I were chatting about wineries in the state.
David Gardner: We wouldn't have had that. We wouldn't have scheduled Zoom time to talk about Virginia wineries?
Jim Mueller: Exactly.
David Gardner: Well, and that's certainly is true. I do think that we're being whipsawed as a culture. Nine to five, every day for decades and decades and then no office at all. Then trying to find some hybrid middle space, some remote, some not. Lots of businesses have had people working there all the way through. Sometimes here in the greater Washington area, Washington DC, we're surrounded by a lot of lawyers, lots of other information workers, forgetting that so much of the rest of America, there's manufacturing, they're baristas, there's healthcare. There are so many of our fellow Americans who every day have gone to an office for years now.
Jim Mueller: And pay the price, and both getting sick and the worry and a stress and all that.
David Gardner: God bless him. I mean, certainly grateful for all of that sacrifice and necessity. I mean, for a lot if that's your job, you need to go in and serve coffee the others, if you want to be a breached and earn a paycheck. Of course, we're all coming from different places, but these five stocks, after a single year, check it, you can go back and listen to me probably crowing on this podcast two years ago this week. As a group, these five stocks averaged to gain of 240 something percent after a single year.
Jim Mueller: Just incredible. April of 2020 when you pick these, was right near the start of the pandemic and I can't.
David Gardner: The market have been crushed.
Jim Mueller: The market was crushed.
David Gardner: March, it was horrible.
Jim Mueller: February, last half of February, and first half of March, it went down one. A third. The fastest it's ever dropped that much. People were just freaking out and buying up toilet paper and stockpiling this and that.
David Gardner: I remember those days.
Jim Mueller: Man. We thought that we'd be like that for ever and ever. This is one of the biases of being human in that it's called recency bias. We think that what's happened recently is the way the world is going to work from now on. I think a lot of that got baked into many of these companies, Peloton, Teladoc. You're never going to go to your doctor's office again, you're never going to go to the gym again. Teladoc, was actually the worst performer of that group.
David Gardner: We're going to get them in a sec.
Jim Mueller: But Peloton was up 290 percent.
Jim Mueller: Now it's down almost 60 percent.
David Gardner: Let's get into it right now, Jim, because that is Stock Number 1 in this five-stock sampler and this five-stock sampler started on April 8th 2020. We're sending it off to full halla this week technically, it closed out last week. The market was closed on Good Friday so 4/6 2023 are the final prices for each of the stocks I'm quoting in Peloton is alphabetically the first of them, down to the letter P Peloton I picked 27.5 three years ago. It closed out last week, about 11 and a half so you mentioned Jim, the stock had been up more than a triple after its first year and it gave all of that back. It went from near $100 a share down today to 11.5 where Peloton's sits. The market by the way, the bogey we're competing against, the S&P 500 is up 49 percent over that three-year period. Astonishing performance really especially when you consider what happened those three years, but the S&P 500, which has a lot of industrials and other companies, wasn't necessarily as coronavirus proof initially, but as these stocks whipsawed all the way down, stocks like Axon started looking like much more of a safe haven than otherwise Jim, what happened to Peloton over these three years?
Jim Mueller: Peloton, as you know sells these high-end exercise bikes, standing bikes and so they were video linked to, you could watch a trainer running through an exercise routine and you can follow along in the trainer it'd be cheering you on and there'll be other than that.
David Gardner: I feel like you're using the past tense, Jim, but this is still true today. You can do that today and I hope tomorrow.
Jim Mueller: They still do this and so with all the fear and uncertainty, nobody wanted to go to the gyms. Nobody and with six feet distancing and all the super cleaning and everything else and not even knowing if breathing the same air would get you sick and all that stuff so having the idea of a home gym was a fantastic thing and Peloton just ramped it up and really management overplayed it and thought that, hey, this is going to be the way it's going to be the recency bias. We can keep on selling, we can sell more bikes, we can sell more subscriptions and then the pandemic ended and we got back into the gyms and we got back into seeing people exercising as a group and running on trails, but that was also going on during the pandemic, but the whole idea that no one would ever go to the gym again turned out to be false.
David Gardner: Indeed, looking at the stock chart and I highly recommend use your favorite stock chart app or come out to us at fool.com and look at the stock chart for PTON, but we're talking about a stock that three years ago, again right around 40 and within that first nine months from 40 to 160. Basically, it was a four-bagger, and then Jim 160 it was still right around 100 as of Halloween of 2021. It had dropped 160 to 100 a cavernous drop as we entered Thanksgiving of 2021, the stock free fall from about 90 to 55, and then just a slow dropped below 20 and it's been bouncing around 10 sometimes single digits here, Jim, for the better part of the last year now. I personally find myself interested in the stock down here at this level, but hey, I was the guy who liked it way higher than this so of course, I guess it would look better to me at 11 and-a-half.
Jim Mueller: It's certainly not growing like it did back in the heyday.
David Gardner: New CEO?
Jim Mueller: For the year ending March of 2021, this is the best 12 month period they had. They grew revenue by 156 percent and that was almost a double over the revenue growth over the year prior 81 percent. March 2022, four percent growth, 156 four. No wonder the stock is down so much and they've shrunk revenue for all of 2022 their cash flow from operations has been negative. They've had six quarters of slowing revenue growth from 156 all the way down to four percent, still growing, but not nearly at the pace they did. They've had to issue debt because they're not bringing in the cash from their business and so now equity has fallen that's the net worth of the company. Assets minus liabilities has fallen from 2.4 billion a year ago to just 30 million this year at the end of December and it's sad. Barry McCarthy, the new CEO you mentioned.
David Gardner: He basically said we can't be all things to all people here we need to batten down the hatches and really get this business to a point that it's sustainable.
Jim Mueller: He was a solid CFO at Netflix 1999 to 2010, and then did a stint at Spotify, the same role, CFO 2015 to 2021, and he was appointed CEO of Peloton in February 2022. He came in and says, he has a bunch of subscription business background, Netflix and Spotify and he says, we've got to close down a bunch of manufacturing because we're losing money on the bikes and what else you have, focus hard on the subscriptions, but even now, subscriptions are growing. They've been at 6.7 million members for each of the past four quarters and not really growing that.
David Gardner: Thank you for that, Jim. We could go deeper on Peloton certainly for Motley Fool members, we have discussion board, we have ongoing analysis about stocks like Peloton, which I picked for Rule Breakers.
Jim Mueller: I've got one more thing to say.
David Gardner: Sure.
Jim Mueller: There are glimmers of good things going on. Operating expenses are down significantly which you need for this company, but it's in a deep hole and if he can pull off a turnaround, if McCarthy can pull this off, that would be incredible, but Warren Buffett's quote is ringing in my head. Buffett, has said, when a management with a reputation for brilliance tackles a business with a reputation for bad economics, it's the reputation of the business that remains intact. I'm afraid that might be what's going on. We'll end up being what happens with Peloton.
David Gardner: The numbers, the truth of it is with the market up around 50 percent over these three years and Peloton down 58.5 percent, well this five-stock sampler is already in trouble and we haven't even gotten to the other four Jim, let's go to the next alphabetically Roku ticker symbol. Roku. This stock was at $87 plus three years ago, it closed last week around 64 down 27 percent. Jim, in your mind, what is the top reason to explain Roku's 27 percent drop over those three years.
Jim Mueller: I would say increase in competition in streaming and advertising businesses. That would be the main reasons. Roku sells these devices that turn almost any TV into a smart TV.
David Gardner: Do you have one?
Jim Mueller: No, I do not.
David Gardner: I do, I've got like four.
Jim Mueller: That's part of the problem [laughs] They get some revenue from that, but they get a lot more revenue from selling advertising on the various streaming and television that you're watching and they have their own proprietary section of the screen where you can buy products and stuff and I don't know what all but totally I don't have one.
David Gardner: [laughs] You sound a little skeptical.
Jim Mueller: No because what they do is it's a great bundling of all these services for streaming and they give it to you in one device and you have a one-stop shop, but you also have Chromecast and a phone that's how I watch TV. I open up the app on my phone and I cast into my television.
David Gardner: Nice.
Jim Mueller: You have the Apple TV, which is another desktop device that turns your TV into smart TV and offers all things through Apple TV. You've got streaming on Disney and Disney Plus, and now they're adding advertising to Disney Plus. You've got Hulu, which has always been an advertising. You've got Discovery, you've got Netflix who had to start adding advertising. Now everybody is doing targeted advertising, which is what Roku was doing and so competition is ramping up. Roku was actually slightly better than Peloton at the one-year review, 300 percent versus 290.
David Gardner: But who's counting?
Jim Mueller: But after the two-year review, Peloton was down by a third, while Roku was still up by about 20 percent.
David Gardner: That's not the case anymore.
Jim Mueller: It's only been the last year where this other competition has grown up and analyst and investors are worried, but it's still doing well.
David Gardner: Let's point out that the stock was around 40 as this year started in today it's 64, so depending on when you entered, I hope you didn't enter with my five-stock sampler three-years ago although if you had that first year was amazing and maybe you sold, but this is a volatile stock. This is a business with a market cap of about $8.5 billion. It's been all over the map, but mostly down, not up the last three years, but it's a vital business. They're not about to get run out on the rails. It's a brand that people know and we like convenience. Typically as humans, we are as you mentioned earlier, we're humans, not robots. Things that make our lives easier I think Roku is one of those.
Jim Mueller: Roku's are users, the number of users they have signed using their stuff is up 16 percent over 70 million users, over 60 million year before, and it was up 40 percent that year. The total hours streamed over their devices up 24 percent in 2021, up 19 percent more last year in 2022, over almost 90 billion hours total stream through the Roku device.
David Gardner: Now the company is not profitable, which is part of the problem, Jim?
Jim Mueller: That is part of the problem. Their average revenue per user is pretty flat.
David Gardner: But a growing platform.
Jim Mueller: It's growing platform. The platform revenue, which is all the advertising and content distribution, that's up 20 percent revenue-wise. They're shifting more toward the advertising, much more toward the advertising than the device revenue. But as I said, they are competing with Netflix, with Disney, with Apple. It's going to be a struggle for this company.
David Gardner: It's the kind of company that might get bought out by somebody else looking to take leadership or build a big business. In a lot of ways, Roku does what my PlayStation 5 or Xbox do. They also have media apps.
Jim Mueller: About that too.
David Gardner: It's a big world out there. Everybody is streaming these days. They were especially, Jim, streaming during the coronavirus. What a first-year it was for Roku. But let's keep moving because we could go deeply into the misery on all of these and probably spend way too long crying at least, I would, over the performance. But there is a little bit of bright light here. The third stock we're talking about. This is the one that's up. If Harry Potter was the boy who lived, Sea Limited was the coronavirus stock that actually went up. Sea Limited three years ago this week, $45.45. The stock closed out last week just over 84, up 85 percent, not nearly enough to save the sinking ship of five stocks for coronavirus but I guess Jim, what was Sea Limited doing right where it seems like everybody else was doing wrong?
Jim Mueller: Well they've expanded into some things that are still going strong. E-commerce, they now have $7.3 billion of revenue up 774 percent versus three years ago. Remember this is all in Southeast Asia.
David Gardner: That's what Sea Limited stands for. SEA is Southeast Asia. A lot of people probably think this is a shipping container company. Ticker symbol by the way, SE.
Jim Mueller: About two-thirds of the revenue comes from Southeast Asia, about a sixth of the revenue, 16 percent, comes from Latin America, and the rest from other places, mostly the rest of Asia. But gaming is their only profitable segment. Generated $2 billion of operating profit out of $3.9 billion of revenue. But that revenue is up 240 percent over where it was three years ago. Fintech though, they started off at fintech at just barely anything at nine million and now they brought in $1.2 billion in fintech revenue last year.
David Gardner: Fantastic.
Jim Mueller: If they can get that profitable this company will do well.
David Gardner: But these are PayPal-like services when you say fintech, that's what we're talking about.
Jim Mueller: Moving money around via apps and computer system.
David Gardner: Well, we're going to keep moving here, Jim, but Sea Limited again with that plus 36. I want to make sure I get my math back here. Peloton down 108 percent points to the market and Roku is down 76 percent points to the market so that's minus 184. Sea Limited giving us a plus 36 back the other way which makes you feel like maybe we can make a comeback here but no, it's going to get a lot worse from there. Go ahead.
Jim Mueller: Sea Limited was also the biggest winner after the one-year overview, up 420 percent.
David Gardner: What an incredible year the stock market provided for these companies from spring 2020 to spring 2021.
Jim Mueller: What I think is hurting it right now compared to two years ago is that it's still cash-flow negative and last year the market really turns sour on all companies that were cash-flow negative.
David Gardner: Well, the last two we're going to do them both together and you can speak out one side of your mouth for each of these, Jim. But the headliner is that Teladoc ticker symbol TDOC and Zoom Video Communications ticker symbol ZM, one a Teladoc-based company, the other the world's video platform to communicate with each other during the coronavirus, both of these companies were stellar performers in 2020, but both, Teladoc having gone from 139 to 26 and Zoom having gone from 117 down to 70. We're talking about stocks that have declined 80 and 40 percent respectively again against a market that's up 49 percent. These have contributed mightily to the misery of five stocks for the coronavirus. Jim, give me a little bit on what happened to Teladoc.
Jim Mueller: Teladoc again was how the pandemic is going to change the world and how we interact.
David Gardner: I was grateful to be able to work with the doctor remotely when I couldn't go into their facility.
Jim Mueller: But I'd rather meet with my doctor in person.
David Gardner: I think if you're going to have an annual physical, which by the way we all should, I do think it makes more sense to be there in person.
Jim Mueller: Just like with all these others, revenue growth which was high double and triple digits year-over-year has slowed way down and from a high of 127 percent for the year ending June 2021, 18.4 percent last year and they're guiding just nine percent revenue growth this year. Anytime company management pulls back the revenue growth expectations like that, the market is not going to like it. Things have just not done well for that company as far as the share price.
David Gardner: Livongo, this was a merger as well.
Jim Mueller: That turned out to be a major mistake. They wrote down almost the entire purchase price.
David Gardner: Both of those stocks were Rule Breaker picks and I loved it at the time. This is was one when you buy full retsu where one of my companies works with another and they buy each other out. It looked good. It looked like the right move at the time.
Jim Mueller: It did. Teladoc paid $18 and 1/2 billion for Livongo in 2020. Last year they wrote down 13.4 of that. That's not a cash loss this year but it's cash they spent three years ago that's turned out not to have been worth spending. That hurts the company and they're really struggling as a result of that.
David Gardner: Teladoc Jim, now with a market cap and this includes having folded Livongo healthcare into it, Teladoc market cap is just $4.2 billion. It's smaller than Peloton and this is the forefront of the Teladoc industry.
Jim Mueller: Less than 25 percent of what they paid to buy Livongo. It's so sad.
David Gardner: Wow. Again Telehealth for me feels like something the world benefits from and will continue to use in an increasingly virtual world or data-driven world where we can learn a lot without having to be in person with each other. I still want you to give me a blood test. [laughs] I'm not going to do that myself although some others can do that themselves. But I feel as if Jim, Telehealth was additive. It has brought some new into the world which some people can use and it's beneficial and yet, wow, has it ever been degraded and devalued?
Jim Mueller: Definitely. For those who find it hard to take the time to go to a doctor it's a lot easier to go into a conference room with your computer and call them up on the screen.
David Gardner: Feverish child on your knee?
Jim Mueller: Exactly. That's fantastic. For where you need expertise from an expert halfway around the world, that's fantastic. I think the idea that we're going to be working from home forever is we're slowly going to creep back into the office because we want that human interaction. We want that look a person in the eye face-to-face rather than over a screen.
David Gardner: Well, the five-stock sampler I covered earlier with Jason, that one still has another year to mature and do even better. This one is a closed book. But before we fully close the book and send five stocks for the coronavirus to Fool Halla. I'm going to give the final numerical accounting. But I'd love for you to speak to Zoom. I don't want to give short shrift to arguably the best known of all of these five. Jim, what has happened to Zoom ticker symbol ZM over these three years? Or maybe more aptly what hasn't happened to Zoom? It's been such an important service for so many people.
Jim Mueller: For so many people. Hundreds of millions of users most of which were family people talking to each other and so on.
David Gardner: For free.
Jim Mueller: For free. I'm going to concentrate on the paying customers. Companies who are paying.
David Gardner: The Motley Fool is one of them by the way. We were early days. We've been for years paying corporate enterprise customer.
Jim Mueller: They have a metric called customers with 10 or more employees. These are small companies or very large companies. At the end of Q4 2020 which was January 31st, 2020, they have a fiscal year ending in the [inaudible].
David Gardner: Odd fiscal year.
Jim Mueller: They had only 82,000 of these companies paying for their services. That was the very beginning of the pandemic. In fact, when was it announced? February or something. When the shutdowns happened, their user base for companies exploded. They went from 82,000-467,000 a year later. That's just incredible. They got rewarded by the stock market for such phenomenal growth. Unfortunately, that growth can continue. 2022 a year after that,510,000 and now, most recently just this last January, only 478,000.
Jason Moser: Flattish numbers in the face of just incredible growth. Jim, I'm looking just the revenue numbers, they're going from basically 50 million a quarter to all of a sudden 750 million when we were at the height.
Jim Mueller: Exactly.
Jason Moser: This is a company that is maybe the poster child for the coronavirus whipsaw. When I think of all five of these companies and what happened to them over the last three years, and this has not been true of all of corporate America, these are rule-breaker companies, often lighter business models, often with higher multiples and higher things expected of them. This is maybe the ultimate, like it was up so far and now down so far.
Jim Mueller: I think that your word expect of them is a good word. The important word of the sentence in that the stock market is forward-looking.
Jason Moser: You bet.
Jim Mueller: We're looking at what we think will happen in the future. With such a huge amount of growth, and again, that recency bias during the pandemic, we're all going to be working from home forever and ever. Of course, the market expected more of the same and when that didn't happen, the market had to readjust and that's what has brought the stock price back down. Zoom's not in trouble, they have $5.5 billion in cash and short-term investments on their balance sheet.
Jason Moser: Wow, $5.5 billion just sitting there on the balance sheet.
Jim Mueller: They have just under $100 million in leases, that's all their debt, just leases, which they'd be paying for corporate headquarters and stuff like that. They don't have any debt. I don't think they've ever had debt of any large amount if ever. They're still generating over $1 billion in cash flow from operations, over $1 billion of free cash flow. They are very much going concern.
Jason Moser: Yeah, the market cap for the company is just over $20 billion today.
Jim Mueller: Right. But the expectations have ratcheted way back and therefore the share prices ratcheted way back, and Microsoft Teams has grown like gangbusters just as much Zoom has. Microsoft Teams had 20 million daily active users at the end of 2019 where i ticked Zoom, at the end of 2022, 270 million, so up 13, 14-fold. But office, a lot of companies, even the small ones, are paying for office and teams comes free with office. Zoom you have to pay for.
Jason Moser: Understood. Ironically, Jim, as we finish with the tail of the tape for this five-stock sampler, I think what happened because you're talking about expectations and I think you're spot on with that. Am I right that our expectations were not that a vaccine or vaccines would show up as quickly as they did and then become deployed worldwide and we would actually open the world back up, not that it's fully opened up yet faster than anyone expected? Is the good news for society. Maybe ironically, the death nail for this five-stock sampler?
Jim Mueller: Could very well be. The speed at which the vaccines came out only happened because we've had 20 or 30 years of research behind it in developing mRNA technologies and learning how to work with it. Vaccines would take three years to develop under previous technology. The expectation was that we'd be locked up for so long. We'd go stir-crazy. But I truly believe that you're right, the speed at which those vaccines came out and the speed at which they got pushed out to a large percentage of the population here in the US and Europe, to some extent into China.
Jason Moser: Yeah, it was astonishing.
Jim Mueller: It was incredible at the speed at which it happened. I think that's a great thing for humanity.
Jason Moser: It crushed the multiples.
Jim Mueller: That's such a good thing for the set of stocks.
Jason Moser: All right, well, you know what? We take our medicine in every way on this podcast. As a basket to close out, five stocks for the coronavirus averaged losing 24.2 percent. Now, that doesn't even sound that bad to me, some of these again, Teladoc is down 81 percent, but good news, Sea Limited is up 85 percent. Anyway, as a basket, they're down 24.2 percent over the three years. The problem is the market over that three year's up 49.3 percent, which means take it all in all, this is the worst performing five-stock sampler I ever did. Seventy three and a half percent points per stock behind the market averages, which eclipses my previous worse total, which had been five stocks for the age of miracles, my biotech picks, picked in April, is this a bad month for me too? 2019, they had lost the market by 65 percent. The good news is the majority of my samplers beat the market and most of them really beat the market silly. In fact, Jim, I hope this doesn't sound defensive, but I was looking over another April sampler earlier today in preparation for the podcast, longtime listeners will remember April The Giraffe, yup, the giraffe that was born on YouTube and was named April.
But I leveraged off of that important news by picking five stocks that spelled out with their corporate names, the first letter of each April, and I'm really happy to say five stocks for April, the Giraffe that was in April 2017, that ended in April 2020, but we keep holding these stocks, Jim. When I reported on five stocks for April, the Giraffe and I probably was crowing in April 2020, as I announced, they were up 90.6 percent, margin was up 22.8, so we won by 67.8. But importantly, we keep holding these stocks. And so stocks like, I don't know, Axon Enterprise, which were up 237 percent back that are now up 885 percent. This is the key takeaway for me. Keep holding these kinds of companies now, if they never come back and they're already way down, it won't matter that much because as long as you're not adding to them, which i never do to my losers, it really will come irrelevant. But if you keep holding five stocks for April, the Giraffe, for example, what looked like a really good sampler becomes spectacular. Over the course of time. A little bit of positive light here shining at the end of this dark, dark tunnel. Five stocks for the coronavirus.
Jim Mueller: I would add, spread your investments across a wide net.
Jason Moser: Yeah, we're not just building little five-stock portfolios here at the Fool, these are samplers.
Jim Mueller: If you only had, if your entire portfolio was these five, you're hitting life. But if you have 30 or 40 or 50 of these things, yeah. Ten or 15 of them have crashed and burned and might never come back. But 10 or 15 of them are doing really, really well. It's that mathematics, the most you can lose is 100 percent, the most you can gain is infinity.
Jason Moser: That is true and that is profoundly important to understand. If you're going to be what Jim and I are, which are investors by definition, actors over the long term, I say, make a lifetime commitment to the stock market. You will be amply rewarded well, you sure where it by five stocks for the coronavirus. It's time to send this one off to Fool Halla, and Rick Engdahl has painstakingly selected the saddest music you'll ever hear to send a five-stock sampler off to full halla, Rick. Jim, as that sad music continues to play. I want to thank you for helping me in good times and in bad. This was a hard time that we shared together. There have been many good times in the past, there will be in the future.
Jim Mueller: I firmly believe so. Thanks.
Jason Moser: Well, from the top of this week's podcast, I led off with the phrase, first to worst. Indeed it's how I want to close. I really do feel like it's rare that you will see in your life first to worst happen whether we're talking about sports or business, or in this case, the stock market. It does happen, but it's rare. It did happen this week we had a winner, five stocks to teach Rule Breakers, we'll trust the year ahead for those stocks will be even better. But we also had our single worst performer ever. It's one thing to watch bad stock picks just start out bad and keep going down and have a bad three years of it. But what is so astonishing about this group is that after their first year, they weren't just up. They were up by far more than any other sampler has ever started with the stocks tripling on average after just a single year. To report at the end that these stocks went truly from first to worst, still has me scratching my head, but we need to own up to all of the good and all of the bad. The good news is for Foolish investors who are playing the game, as Jim mentioned, diversified and as I'll always mentioned over the long term, you'll be guaranteed yourself. Happy ending have a lovely week, Fools.
David Gardner has positions in Activision Blizzard, Apple, Booking Holdings, Netflix, and Walt Disney. Jason Moser has positions in Apple, PayPal, Teladoc Health, and Walt Disney. Jim Mueller, CFA has positions in PayPal and has the following options: long January 2025 $120 calls on Apple, short January 2025 $130 calls on Apple, short July 2023 $290 puts on Netflix, short July 2023 $80 puts on PayPal, and short May 2023 $190 puts on Axon Enterprise. The Motley Fool has positions in and recommends Activision Blizzard, AeroVironment, Airbnb, Apple, Axon Enterprise, Booking Holdings, Netflix, PayPal, Peloton Interactive, Roku, Sea Limited, Spotify Technology, Teladoc Health, Uber Technologies, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Booz Allen Hamilton and recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, and short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I will say that between the two sports, it feels as if people can keep playing golf at a higher level much longer than baseball, but we don't need to cast dispersions so driving these distinctions. We've got some Amazon devices in our house, I mean, the beauty of Apple and I think you really keyed on it there with the services for the longest time we've recognized app was primarily a phone company. Nobody and with six feet distancing and all the super cleaning and everything else and not even knowing if breathing the same air would get you sick and all that stuff so having the idea of a home gym was a fantastic thing and Peloton just ramped it up and really management overplayed it and thought that, hey, this is going to be the way it's going to be the recency bias.
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Jim Mueller, CFA has positions in PayPal and has the following options: long January 2025 $120 calls on Apple, short January 2025 $130 calls on Apple, short July 2023 $290 puts on Netflix, short July 2023 $80 puts on PayPal, and short May 2023 $190 puts on Axon Enterprise. The Motley Fool has positions in and recommends Activision Blizzard, AeroVironment, Airbnb, Apple, Axon Enterprise, Booking Holdings, Netflix, PayPal, Peloton Interactive, Roku, Sea Limited, Spotify Technology, Teladoc Health, Uber Technologies, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Booz Allen Hamilton and recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, and short June 2023 $67.50 puts on PayPal.
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Astonishing performance really especially when you consider what happened those three years, but the S&P 500, which has a lot of industrials and other companies, wasn't necessarily as coronavirus proof initially, but as these stocks whipsawed all the way down, stocks like Axon started looking like much more of a safe haven than otherwise Jim, what happened to Peloton over these three years? David Gardner: Indeed, looking at the stock chart and I highly recommend use your favorite stock chart app or come out to us at fool.com and look at the stock chart for PTON, but we're talking about a stock that three years ago, again right around 40 and within that first nine months from 40 to 160. Jim Mueller: Just like with all these others, revenue growth which was high double and triple digits year-over-year has slowed way down and from a high of 127 percent for the year ending June 2021, 18.4 percent last year and they're guiding just nine percent revenue growth this year.
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Jason Moser: I think with a business like this, it really more than anything, it's timing. Apple was at $127.90 two years ago, this week it's now up to 161.5, so the stock's up 26 percent with the market up one percent that gives us a plus 25. David Gardner: You know these companies.
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16129.0
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2023-04-29 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-4
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nan
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nan
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Virtual reality (VR) has been one of those technologies that always seems close to going mainstream, but has never quite reached the tipping point to make it so. But with Apple (NASDAQ: AAPL) likely on the verge of releasing its VR headset in the next few months, this once-niche segment may finally have its day in the Sun.
Investors looking for a couple of stocks to bet on in this estimated $250 billion-sized VR market of the future should take a closer look at what Apple as well as key chipmaker Nvidia (NASDAQ: NVDA) are doing right now.
Image source: Getty Images.
Apple is about to kick its VR ambitions into high gear
For years, rumors have swirled about Apple working on a virtual reality headset, but to date the device hasn't materialized. This time, it really looks like Apple is on the verge of releasing an AR/VR mixed-reality headset.
Bloomberg has published multiple reports about the device over the past several months and has said that Apple has even shown it off to its board of directors. More recently, the publication said that the device will debut at Apple's Worldwide Developers Conference (WWDC) in June and that it will be able to run hundreds of thousands of iPad apps.
The device, which is dubbed the Reality Pro or Reality One, will reportedly cost $3,000. Apple may focus its capabilities around gaming and fitness, as well as being able to be used as an e-reader or to watch live sports.
Apple entering into an entirely new device category would be a huge step for the company and, of course, there's no guarantee of success. Noted Apple analyst Ming-Chi Kuo thinks the initial rollout of the devices could be slow, with a maximum estimated 300,000 sold in the first year.
But the tech titan also has a long track record of slowly moving into new markets, then dominating them. And if it repeats that success in VR, then Apple could soon become the top VR company that rivals are trying to emulate.
Nvidia could be a core part of virtual reality
Nvidia's VR opportunity comes from its high-powered graphics processing units (GPUs) that are often the go-to choice for many gamers. The company's gaming segment is one of its largest, accounting for 30% of sales in the most recent quarter.
Nvidia's gaming sales have admittedly slowed lately, but it understands that VR could be a catalyst for new growth from its gaming business, and has made moves to tap into it. That's why the company has developed tools for developers to create and launch virtual worlds through Nvidia's Omniverse Cloud. The company has also worked directly with large companies, including Volvo, to show how VR tools can be used to develop products.
Just as companies look to Nvidia to help them power their servers for cloud computing and artificial intelligence services, the growing need for high-end graphics for VR could boost demand for Nvidia's chips. Some estimates put the market size for AR/VR chips at $9.5 billion by 2027, and with Nvidia's early moves, the company is likely to be a key beneficiary in this space.
Virtual reality may have a slow on-ramp
It's still unclear how quickly consumers will adopt new VR technologies. I think Apple launching a mixed reality device could help spread more widespread adoption, but it'll take some time before we see that theory pan out or not. For investors looking to snatch up shares of these two companies based on their virtual reality prospects, you'll probably have to remain patient as this market starts to grow.
10 stocks we like better than Apple
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*Stock Advisor returns as of April 24, 2023
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But with Apple (NASDAQ: AAPL) likely on the verge of releasing its VR headset in the next few months, this once-niche segment may finally have its day in the Sun. Investors looking for a couple of stocks to bet on in this estimated $250 billion-sized VR market of the future should take a closer look at what Apple as well as key chipmaker Nvidia (NASDAQ: NVDA) are doing right now. More recently, the publication said that the device will debut at Apple's Worldwide Developers Conference (WWDC) in June and that it will be able to run hundreds of thousands of iPad apps.
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But with Apple (NASDAQ: AAPL) likely on the verge of releasing its VR headset in the next few months, this once-niche segment may finally have its day in the Sun. Apple is about to kick its VR ambitions into high gear For years, rumors have swirled about Apple working on a virtual reality headset, but to date the device hasn't materialized. Nvidia could be a core part of virtual reality Nvidia's VR opportunity comes from its high-powered graphics processing units (GPUs) that are often the go-to choice for many gamers.
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But with Apple (NASDAQ: AAPL) likely on the verge of releasing its VR headset in the next few months, this once-niche segment may finally have its day in the Sun. Investors looking for a couple of stocks to bet on in this estimated $250 billion-sized VR market of the future should take a closer look at what Apple as well as key chipmaker Nvidia (NASDAQ: NVDA) are doing right now. Apple is about to kick its VR ambitions into high gear For years, rumors have swirled about Apple working on a virtual reality headset, but to date the device hasn't materialized.
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But with Apple (NASDAQ: AAPL) likely on the verge of releasing its VR headset in the next few months, this once-niche segment may finally have its day in the Sun. This time, it really looks like Apple is on the verge of releasing an AR/VR mixed-reality headset. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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16130.0
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2023-04-29 00:00:00 UTC
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Spotify Keeps Beating Expectations. Is It Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/spotify-keeps-beating-expectations.-is-it-time-to-buy
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nan
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nan
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Shares of Spotify (NYSE: SPOT) recently ran up to a 52-week high thanks to another well-received earnings report. Markets cheered because the company's first-quarter results blew the doors off previous expectations.
In January, Spotify told investors to expect around 11 million new monthly active users during the first three months of 2023. Instead, the music streaming service added a whopping 26 million monthly active users. That made it the company's best first quarter ever for member additions.
This wasn't the first time in recent memory that Spotify blasted past expectations, and investors have noticed. The stock has risen around 69% since the beginning of 2023. Is it still a good stock to buy following a giant run-up this year? Let's look a little closer at recent results to find out.
What competition?
Unlike video streamers, which produce original content, the music available from one subscription-based service to the next is nearly identical from the consumer's perspective. Despite the commoditization you might expect in this niche, Spotify is holding its share of the market.
Its biggest competitors, Amazon and Apple, didn't share new-user numbers from their music businesses in their first-quarter reports. But if they were taking market share from Spotify, they would most likely boast about it to investors.
In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). Advertising budgets are under pressure from a looming recession, but revenue from the platform's ad-supported service still grew 17% year over year.
The company is no longer the only music streamer that includes access to podcasts, but that didn't stop first-quarter podcast revenue from rising 20% year over year. At the end of March, the number of publishers and shows participating in the Spotify Audience Network was up by a double-digit percentage compared to the end of last December.
The bad news
Over the past few years, revenue at Spotify has more or less kept up with operating expenses, but not lately. The company hired a lot of new people in 2022, but in January, it turned around and laid off around 6% of its workforce.
SPOT revenue (TTM) data by YCharts. TTM = trailing 12 months.
First-quarter operating expenses jumped 36% year over year, which was much faster than revenue. Altogether, the company's operations lost 156 million euros ($172 million) in the first quarter.
The layoffs Spotify announced in January haven't had a chance to work their magic on the bottom line. It's also been a long time since the company raised subscription prices. With 210 million paid subscribers, a small price increase could quickly push its bottom line into positive territory.
A buy now?
At recent prices, you can buy shares of Spotify for 2.1 times trailing sales. That's a much lower price than investors saw during its first few years as a publicly listed company.
When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses. I'm not about to sell my shares, but I'm probably not going to buy more until recent cost-cutting and price increases actually allow the company to report a sustainable net profit.
10 stocks we like better than Spotify Technology
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 Spotify Technology 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 April 24, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Cory Renauer has positions in Amazon.com and Spotify Technology. The Motley Fool has positions in and recommends Amazon.com, 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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Its biggest competitors, Amazon and Apple, didn't share new-user numbers from their music businesses in their first-quarter reports. With 210 million paid subscribers, a small price increase could quickly push its bottom line into positive territory. When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses.
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In January, Spotify told investors to expect around 11 million new monthly active users during the first three months of 2023. In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). At recent prices, you can buy shares of Spotify for 2.1 times trailing sales.
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In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). The company is no longer the only music streamer that includes access to podcasts, but that didn't stop first-quarter podcast revenue from rising 20% year over year. When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses.
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At recent prices, you can buy shares of Spotify for 2.1 times trailing sales. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Spotify Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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16131.0
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2023-04-28 00:00:00 UTC
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VettaFi Voices On: Smart Beta and Equal-Weight ETFs
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AAPL
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https://www.nasdaq.com/articles/vettafi-voices-on%3A-smart-beta-and-equal-weight-etfs
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nan
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nan
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This week, the VettaFi Voices gather around the water cooler and talk smart beta and equal weight ETFs. With the Invesco S&P 500® Equal Weight ETF (RSP) recently seeing its 20th birthday, how can investors use smart beta ETFs to their advantage? What is their outlook for the rest of the year, and what types of equal weight ETFs are available?
Todd Rosenbluth, head of ETF research: I raised a glass to RSP turning 20 earlier in the week and talked about how the "buy low and sell high" approach to investing is the ideal scenario for many advisors. An equally weighted approach makes sense for those who don't have a perfect crystal ball about what large-cap stocks will lead the market higher in any given year. But RSP was also the first smart beta ETF, a phrase few people like until they realize that is really how active management has worked for decades in a lower-cost, index-based approach. We have ETFs that are constructed based on quality, like the iShares MSCI USA Quality Factor ETF (QUAL) and the Invesco S&P 500® Quality ETF (SPHQ); valuation like the Alpha Architect U.S. Quantitative Value ETF (QVAL) and the Invesco S&P 500® Pure Value ETF (RPV); and momentum like the JPMorgan U.S. Momentum Factor ETF (JMOM) and the First Trust Dorsey Wright Focus 5 ETF (FV) based on the origination of RSP.
Now, of course, equally weighting does not always work, as our VettaFi colleagues covered this week. Mega-caps have been leading the market with Apple (AAPL), Microsoft (MSFT), Meta (META), etc., bouncing back in a return to large-cap growth companies as the darlings of the market. But who knows if this can continue and, if not, if more moderately sized companies like CBOE Global Markets, Eli Lilly (LLY), and McCormick (MKC), which were recent top 10 positions (at 0.23% of assets or higher) for RSP can lead the market.
Dave Nadig, financial futurist: So, RSP was an absolutely incredible tool for a decade. From the March 9, 2009 equity bottom following the global financial crisis, we used to talk about it being an ABMC market -- Anything But Market Cap. Right up until the pandemic sell-off, RSP was a long-term winner:
Rosenbluth: Great use of the newly acquired LOGICLY data, Dave.
Jeremie Capron, director of research of ROBO Global Indexes, a VettaFi business: We use a modified equal weighting to expose best-in-class robotics and automation. We see many benefits, including a fair representation of small- and mid-cap companies, which often deliver superior growth and takeover opportunities compared with large caps.
Avoiding concentration risk is an important part of our methodology. We believe the power of periodic rebalancing in terms of managing risk and taking advantage of short-term stock fluctuations.
Nadig: RSP's very existence was a big part of why this conversation was even possible. I remember countless discussions with advisors where they were literally just trying to understand why they would want to own the "momentum" effects of the market-cap weighting methodology. But that story really reversed at the beginning of the pandemic:
So how should investors think about Smart Beta -- using RSP as perhaps the simplest of the ABMC theme? Regimes. No smart beta product will outperform in every market environment (and if someone sells you one claiming absolute all-weather outperformance, I've got a bridge to sell you). The regime of the pandemic has been narrow markets, where well-capitalized dominant brands could capitalize on pandemic-related opportunities, and smaller firms were at least seen as struggling.
If you believed we were in a "rising tides" market, where news begets volatility and earnings beget investment, then equal weighting can make a lot of sense.
Right now, what's fascinating to me is how funds like QUAL are outperforming (and indeed, they are this year). It comes down almost exclusively to a handful of stock selections: owning more META has been the key driver in most successful strategies this year.
Rosenbluth: I do not need a bridge right now, Dave, but it's lunchtime for me in NY, so I'll happily buy something sweet for dessert if you are selling. Anyway, QUAL is a good example of the fact that not all smart beta ETFs are the same. META is about 4% of the fund assets based on LOGICLY data, so when it is working out, it is a big boost, but more moderately sized companies like Estee Lauder (EL) are much smaller weightings. As you know, equal weight, or using the size factor, differs from the quality factor.
We also see equal weighting often used with thematic and industry ETFs. The Global Robotics & Automation Index ETF (ROBO), which now tracks an index part of the VettaFi family, and iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) take such an approach, while one of their peers, the Global X Robotics & Artificial Intelligence ETF (BOTZ) has position sizes as large as 10%. Meanwhile, biotech ETF XBI, the SPDR S&P Biotech ETF (XBI), is equally weighted, but peer the iShares Biotechnology ETF (IBB) has a market cap-driven approach.
For those that like the approach to equal-weighting ETFs like the Direxion NASDAQ-100 Equal Weighted Index Shares ETF (QQQE) and the ALPS Sector Dividend Dogs ETF (SDOG) might be worth considering. They have a different approach, or focus on a different benchmark, than RSP but the concept is the same. Diversification is queen in the ETF world.
Roxanna Islam, associate director of research: To expand on what Todd said about thematic and industry ETFs, market-cap weighting is also very common in thematic ETFs, but sometimes I have mixed feelings. It can be good when you're trying to represent the theme by its largest constituents and diversify away the risk from new entrants (which may be volatile or even short-lived companies). But for many themes, there just aren't many pure-play companies, so they look similar with large weights toward META, AAPL, Google (GOOGL), etc.
And on the other hand, your thematic exposure could be intended as a high-risk/high-reward allocation, which means equal weight would be useful in spreading that exposure out to small caps. So there's not really a correct answer, but it's definitely something to consider when you're looking at these ETFs.
For sector ETFs, it's a similar story. Many may not be aware that a market-cap-weighted sector communications ETF like the Communications Services Select Sector SPDR Fund (XLC) currently has almost half its weight (47.1%) in Meta and Alphabet. Some investors might want that, but some investors might think that's too much. I always talk about how it's important to know what's in your ETF -- and that's not just what holdings it has but also what weight they carry.
Rosenbluth: Agree on sector ETFs. Some sectors, like communication services and technology, are much more concentrated than others, like industrial and utilities, where there is less benefit from an equal-weighted approach. So taking an equally weighted approach does not make sense across the board.
Circling back to RSP, the launch 20 years ago was a key milestone for the ETF industry because it took index investing out of the market-cap-only world and set the stage for so many alternatively weighted strategies.
Charts provided by LOGICLY, which is a wholly-owned subsidiary of VettaFi.
VettaFi LLC (“VettaFi”) is the index provider for ROBO, for which it receives an index licensing fee. However, ROBO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of ROBO.
For more news, information, and analysis, visit the Portfolio Strategies Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mega-caps have been leading the market with Apple (AAPL), Microsoft (MSFT), Meta (META), etc., bouncing back in a return to large-cap growth companies as the darlings of the market. But for many themes, there just aren't many pure-play companies, so they look similar with large weights toward META, AAPL, Google (GOOGL), etc. Todd Rosenbluth, head of ETF research: I raised a glass to RSP turning 20 earlier in the week and talked about how the "buy low and sell high" approach to investing is the ideal scenario for many advisors.
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Mega-caps have been leading the market with Apple (AAPL), Microsoft (MSFT), Meta (META), etc., bouncing back in a return to large-cap growth companies as the darlings of the market. But for many themes, there just aren't many pure-play companies, so they look similar with large weights toward META, AAPL, Google (GOOGL), etc. The Global Robotics & Automation Index ETF (ROBO), which now tracks an index part of the VettaFi family, and iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) take such an approach, while one of their peers, the Global X Robotics & Artificial Intelligence ETF (BOTZ) has position sizes as large as 10%.
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Mega-caps have been leading the market with Apple (AAPL), Microsoft (MSFT), Meta (META), etc., bouncing back in a return to large-cap growth companies as the darlings of the market. But for many themes, there just aren't many pure-play companies, so they look similar with large weights toward META, AAPL, Google (GOOGL), etc. We have ETFs that are constructed based on quality, like the iShares MSCI USA Quality Factor ETF (QUAL) and the Invesco S&P 500® Quality ETF (SPHQ); valuation like the Alpha Architect U.S. Quantitative Value ETF (QVAL) and the Invesco S&P 500® Pure Value ETF (RPV); and momentum like the JPMorgan U.S.
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Mega-caps have been leading the market with Apple (AAPL), Microsoft (MSFT), Meta (META), etc., bouncing back in a return to large-cap growth companies as the darlings of the market. But for many themes, there just aren't many pure-play companies, so they look similar with large weights toward META, AAPL, Google (GOOGL), etc. With the Invesco S&P 500® Equal Weight ETF (RSP) recently seeing its 20th birthday, how can investors use smart beta ETFs to their advantage?
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16132.0
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2023-04-28 00:00:00 UTC
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US STOCKS-Wall St climbs as strong earnings offset slowdown worries, Fed meeting in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-strong-earnings-offset-slowdown-worries-fed-meeting-in-focus
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nan
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nan
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By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week.
Exxon Mobil Corp XOM.N shares rose to all-time high as the oil company reported a record first-quarter profit on rising oil and gas output, also boosting the S&P energy index .SPNY.
Chipmaker Intel Corp INTC.O gained after it said gross margins will improve in the second half.
Yet Amazon.com Inc AMZN.O fell despite better-than-expected quarterly results, as it signaled its cloud computing business growth would slow further. Its performance weighed on the consumer discretionary index .SPLRCD.
"Markets are building on yesterday's gains a little bit. This week's earnings overall were better than people expected. There was a lot of pessimism going in but the past week has brought home the fact that it's not turning into a bad earnings season at all," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
He suggested investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April.
John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
Other data showed first-quarter U.S. economic growth slowed more than expected, while plunging consumer confidence in April heightened fears of a recession.
The benchmark S&P 500 .SPXregistered a second consecutive monthly gain. It was helped by better-than-expected earnings from megacap companies including Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O.
Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year ago compared with a 5.1% fall expected at the start of April, according to Refinitiv data.
The Fed issued a detailed and scathing assessment of its failure to identify problems and push for fixes at Silicon Valley Bank before the U.S. lender's collapse, and promised tougher supervision and stricter rules for banks.
While the broader banking sector saw some gains on Friday, shares in beleaguered regional lender First Republic Bank FRC.N tumbled after a report it was likely headed for receivership under the U.S. Federal Deposit Insurance Corporation.
Snapchat-owner Snap IncSNAP.N dived after it warned next quarter's results could miss Wall Street targets, while Pinterest IncPINS.N shares sank after the image-sharing platform forecast second-quarter revenue growth below estimates.
Cloudflare Inc NET.Ntumbled on a downbeat revenue forecast from the cloud services provider, while Colgate-Palmolive Co CL.N climbed after lifting its annual organic sales forecast betting on consistent price hikes.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; additional reporting by Johann M Cherian Editing by Vinay Dwivedi and David Gregorio)
((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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He suggested investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
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He suggested investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
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He suggested investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year ago compared with a 5.1% fall expected at the start of April, according to Refinitiv data.
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He suggested investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
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16133.0
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2023-04-28 00:00:00 UTC
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Breaking Down Big Tech Earnings
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AAPL
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https://www.nasdaq.com/articles/breaking-down-big-tech-earnings
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The market’s contrasting reactions to Q1 results from four of the ‘Big 5 Tech Players’ – Amazon AMZN, Alphabet GOOGL, Meta META & Microsoft MSFT – provides us a window into what market participants see as essential for these stocks to maintain their recent price momentum. Apple AAPL will report Q1 results on Thursday, May 4th.
All of these stocks have been standout performers in 2023, as you can see in the chart below that illustrates their year-to-date performance relative to the S&P 500 index (red line at the bottom, up +8.3%).
Image Source: Zacks Investment Research
As you can see in this chart, Meta Platforms’ shares were in a league of their own regarding stock market performance, which got a further boost following the Q1 results. The magnitude of the positive reaction to Microsoft’s results wasn’t nearly as strong as it was for Meta, but it was nevertheless very favorable. Amazon and Alphabet shares lost ground following their quarterly releases, although they both exceeded estimates.
The key differentiator among Amazon, Microsoft, and Alphabet are trends in their respective cloud businesses and the perceived headway that each of them is making on the artificial intelligence (AI) front.
The market likes what it is seeing and hearing from Microsoft on both of these fronts and appears somewhat unconvinced of Alphabet and Amazon’s AI efforts. We all know that cloud spending is coming down, but Microsoft is not only seen as gaining share at the expense of Amazon Web Services but is also perceived as getting a growth boost from its AI capabilities.
Looking at the ‘Big 5 Tech Players’ as a whole, combining estimates for Apple with actual results from the others that have reported already, total Q1 earnings for the group are expected to be down -2.5% on +3.8% higher revenues. This is significantly better than the -11.2% decline in earnings on +1.9% higher revenues expected just a week back ahead of these results.
Image Source: Zacks Investment Research
A better-than-expected showing from Apple this week, which is expected to bring in -9.1% lower earnings in Q1 on -4.1% lower revenues, could potentially push the group’s growth rate into positive territory.
The chart above shows that the group’s growth picture is expected to improve, even though it will be a few more quarters before some of the macroeconomic uncertainties are lifted.
The chart below shows the group’s earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
With top-line growth hard to come by due to macro factors, the group has responded to the market’s persistent worries about cost controls by announcing payroll reductions. There is a general feeling in the market that all of them could do more on that front, but their steps are nevertheless helping stabilize their margins picture.
Net margins for the group were down -458 basis points in 2022 but are expected to modestly nudge higher in 2023 and improve further in 2024. That said, current net margins embedded in consensus estimates for the next two years remain below the 2021 level. That said, the 2023 net margin estimate of 18% for the group is above the pre-Covid 2019 level of 17.6%.
Beyond the big 5 Tech players, total Q1 earnings for the Technology sector as a whole are expected to be down -13.2% from the same period last year on -3.6% lower revenues.
The chart below shows the sector’s Q1 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
Image Source: Zacks Investment Research
This big-picture view of the ‘Big 5’ players and the sector as a whole highlight the earnings growth challenge at present. But as you can see below, the Tech space is expected to resume its growth-engine status from next year onwards.
Image Source: Zacks Investment Research
Q1 Earnings Season Scorecard
Including all the quarterly reports released through Friday, April 28th, we now have Q1 earnings from 267 S&P 500 members, or 53.4% of the index’s total membership. Total earnings for these companies are down -2.4% from the same period last year on +4.1% higher revenues, with 77.2% beating EPS estimates and 73% beating revenue estimates. The proportion of these companies beating both EPS and revenue estimates is 59.9%.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q1 earnings season as good enough; not great, but not bad either. With results from more than half of the S&P 500 members already out, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears were warning us of.
The way we see it, the ‘better-than-feared’ view of the Q1 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We have a super busy reporting docket this week, with almost 1150 companies reporting Q1 results, including 159 S&P 500 members. In addition to the aforementioned earnings release from Apple, this week’s docket has representation from every sector of the economy.
Below, we compare the Q1 results thus far from what we have seen from this same group of 90 index members in other recent periods.
The first set of charts compares the earnings and revenue growth rates for the 90 index members that have reported with what we had seen from the group in other recent quarters.
Image Source: Zacks Investment Research
The comparison charts below put the Q1 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
The Earnings Big Picture
To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2023 Q1 and the following three quarters.
Image Source: Zacks Investment Research
As you can see here, 2023 Q1 earnings are expected to be down -5.7% on +2.8% higher revenues. This would follow the -5.4% earnings decline in the preceding period (2022 Q4) on +5.9% higher revenues.
Embedded in these 2023 Q1 earnings and revenue growth projections is the expectation of continued margin pressures, a recurring theme in recent quarters. The chart below shows the year-over-year change in net income margins for the S&P 500 index.
Image Source: Zacks Investment Research
Actual results are proving a lot better on the margins front relative to what was expected ahead of the releases.
Estimates for Q1 came down as the quarter got underway, in line with the trend that had been in place since the start of 2022. That said, the magnitude of negative revisions to Q1 estimates was smaller relative to what we had seen in the preceding two periods.
Estimates for full-year 2023 have also been coming down as well, as we have been pointing out consistently in these pages.
The chart below shows the earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>2023 Q1 Earnings: Good Enough, but not Great
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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 will report Q1 results on Thursday, May 4th. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research As you can see in this chart, Meta Platforms’ shares were in a league of their own regarding stock market performance, which got a further boost following the Q1 results.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL will report Q1 results on Thursday, May 4th. The market’s contrasting reactions to Q1 results from four of the ‘Big 5 Tech Players’ – Amazon AMZN, Alphabet GOOGL, Meta META & Microsoft MSFT – provides us a window into what market participants see as essential for these stocks to maintain their recent price momentum.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL will report Q1 results on Thursday, May 4th. Image Source: Zacks Investment Research The Earnings Big Picture To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2023 Q1 and the following three quarters.
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Apple AAPL will report Q1 results on Thursday, May 4th. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research As you can see in this chart, Meta Platforms’ shares were in a league of their own regarding stock market performance, which got a further boost following the Q1 results.
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16134.0
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2023-04-28 00:00:00 UTC
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US STOCKS-Wall St climbs as strong earnings offset slowdown worries, Fed meeting in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-strong-earnings-offset-slowdown-worries-fed-meeting-in-focus-0
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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.
Amazon falls ~4% after signaling slower AWS growth
Exxon adds >1% on record first-quarter profit
Intel gains 4% on upbeat view on margins
U.S. consumer spending flat in March
Indexes up: Dow 0.8%, S&P 0.83%, Nasdaq 0.69%
Adds official closing prices, volume and other details
By Sinéad Carew, Sruthi Shankar and Ankika Biswas
April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week.
Exxon Mobil Corp XOM.N shares finished up 1.3% after hitting an all-time high as the oil company reported a record first-quarter profit on rising oil and gas output, also boosting the S&P energy index .SPNY 1.5%.
Chipmaker Intel Corp INTC.O gained 4% after it said gross margins will improve in the second half.
Yet Amazon.com Inc AMZN.O fell 4% in its biggest one-day loss since early February despite better-than-expected quarterly results, as it signaled its cloud computing business growth would slow further. It weighed on the consumer discretionary index .SPLRCD, which finished down 0.04%.
After the market close, First Republic Bank FRC.N tumbled 49% to $1.77 after reports the regional lender was headed for receivership. That was after the bank's 43% decline in the regular trading session.
"This week's earnings overall were better than people expected. There was a lot of pessimism going in but the past week has brought home the fact that it's not turning into a bad earnings season at all," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
He said that investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April.
The Dow Jones Industrial Average .DJI rose 272 points, or 0.8%, to 34,098.16, the S&P 500 .SPX gained 34.13 points, or 0.83%, to 4,169.48 and the Nasdaq Composite .IXIC added 84.35 points, or 0.69%, to 12,226.58.
The CBOE volatility index .VIX, otherwise known as "Wall Street's fear gauge", closed down 1.25 points at 15.78, which was its lowest close since Nov. 2021.
For the month the S&P rose 1.5% while the Dow added 2.5% and the Nasdaq was barely higher. For the week the S&P rose 0.9% in line with the Dow's weekly gain and the Nasdaq rose 1.3%.
Among the S&P 500's 11 industry sectors the biggest gainer was energy .SPNY while the biggest decliner was Utilities .SPLRCU, which fell 0.2%.
The economically sensitive Dow Transportation index .DJT closed up 1.6% for the day but lost 2.7% for the week.
John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
Other data showed first-quarter U.S. economic growth slowed more than expected, while plunging consumer confidence in April heightened fears of a recession.
While the S&P 500 bank index closed up 1.1%, shares in First Republic tumbled in the regular session and after the close. A person familiar with the matter told Reuters the U.S. Federal Deposit Insurance Corporation (FDIC) was preparing to place First Republic under receivership imminently because there was no more time to pursue a private-sector rescue.
Snapchat-owner Snap IncSNAP.N dived 17% after it warned next quarter's results could miss Wall Street targets, while Pinterest IncPINS.N shares sank 15.7% after the image-sharing platform forecast second-quarter revenue growth below estimates.
Cloudflare Inc NET.Ntumbled21% on a downbeat revenue forecast from the cloud services provider, while Colgate-Palmolive Co CL.N climbed 2.4% after lifting its annual organic sales forecast betting on consistent price hikes.
Advancing issues outnumbered declining ones on the NYSE by a 3.00-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favored advancers.
The S&P 500 posted 25 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 66 new highs and 136 new lows.
On U.S. exchanges 11.32 billion shares changed hands compared with the 10.46 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; additional reporting by Johann M Cherian Editing by Vinay Dwivedi and David Gregorio)
((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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He said that investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. Amazon falls ~4% after signaling slower AWS growth Exxon adds >1% on record first-quarter profit Intel gains 4% on upbeat view on margins U.S. consumer spending flat in March Indexes up: Dow 0.8%, S&P 0.83%, Nasdaq 0.69% Adds official closing prices, volume and other details By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. John Praveen, co-CIO at Paleo Leon Inc in Princeton, NJ said Friday's economic data solidified expectations ahead of next week's Fed meeting and eased fears about a sharp slowdown.
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He said that investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. Amazon falls ~4% after signaling slower AWS growth Exxon adds >1% on record first-quarter profit Intel gains 4% on upbeat view on margins U.S. consumer spending flat in March Indexes up: Dow 0.8%, S&P 0.83%, Nasdaq 0.69% Adds official closing prices, volume and other details By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. Other data showed first-quarter U.S. economic growth slowed more than expected, while plunging consumer confidence in April heightened fears of a recession.
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He said that investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. Amazon falls ~4% after signaling slower AWS growth Exxon adds >1% on record first-quarter profit Intel gains 4% on upbeat view on margins U.S. consumer spending flat in March Indexes up: Dow 0.8%, S&P 0.83%, Nasdaq 0.69% Adds official closing prices, volume and other details By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. For the week the S&P rose 0.9% in line with the Dow's weekly gain and the Nasdaq rose 1.3%.
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He said that investors may still be cautious ahead of Apple Inc's AAPL.O results due next week and the Federal Open Market Committee (FOMC) meeting and the U.S. jobs report for April. Amazon falls ~4% after signaling slower AWS growth Exxon adds >1% on record first-quarter profit Intel gains 4% on upbeat view on margins U.S. consumer spending flat in March Indexes up: Dow 0.8%, S&P 0.83%, Nasdaq 0.69% Adds official closing prices, volume and other details By Sinéad Carew, Sruthi Shankar and Ankika Biswas April 28 (Reuters) - U.S. stock indexes advanced on Friday after strong earnings updates from Exxon and Intel offset worries over Amazon's slowdown warning, while economic data reinforced expectations that the Federal Reserve would hike interest rates next week. After the market close, First Republic Bank FRC.N tumbled 49% to $1.77 after reports the regional lender was headed for receivership.
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16135.0
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2023-04-28 00:00:00 UTC
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After Hours Most Active for Apr 28, 2023 : CTKB, EXC, BAC, PFE, TLT, AMZN, AAPL, FRC, BABA, XOM, COP, GOOGL
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-28-2023-%3A-ctkb-exc-bac-pfe-tlt-amzn-aapl-frc-baba-xom-cop
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The NASDAQ 100 After Hours Indicator is down -8.93 to 13,237.06. The total After hours volume is currently 100,003,012 shares traded.
The following are the most active stocks for the after hours session:
Cytek Biosciences, Inc. (CTKB) is -0.16 at $11.32, with 6,906,159 shares traded. As reported in the last short interest update the days to cover for CTKB is 10.118108; this calculation is based on the average trading volume of the stock.
Exelon Corporation (EXC) is unchanged at $42.44, with 3,449,712 shares traded.EXC is scheduled to provide an earnings report on 5/3/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.66 per share, which represents a 64 percent increase over the EPS one Year Ago
Bank of America Corporation (BAC) is unchanged at $29.28, with 2,961,039 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.82. BAC's current last sale is 82.48% of the target price of $35.5.
Pfizer, Inc. (PFE) is unchanged at $38.89, with 2,930,279 shares traded.PFE is scheduled to provide an earnings report on 5/2/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 1 per share, which represents a 162 percent increase over the EPS one Year Ago
iShares 20+ Year Treasury Bond ETF (TLT) is -0.18 at $106.28, with 2,833,782 shares traded. This represents a 15.71% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.19 at $105.26, with 2,733,603 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.28. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.17 at $169.51, with 2,472,493 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 1.44 per share, which represents a 152 percent increase over the EPS one Year Ago
FIRST REPUBLIC BANK (FRC) is -0.51 at $3.00, with 2,311,035 shares traded., following a 52-week high recorded in today's regular session.
Alibaba Group Holding Limited (BABA) is -0.0065 at $84.68, with 2,277,801 shares traded. BABA's current last sale is 58.81% of the target price of $144.
Exxon Mobil Corporation (XOM) is -0.14 at $118.20, with 2,004,869 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $2.65. Smarter Analyst Reports: Report: Exxon Mobil to Exit Russian Operations; Shares Rise 1.4% Pre-Market
ConocoPhillips (COP) is unchanged at $102.89, with 1,691,850 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.81. COP is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 2.02 per share, which represents a 327 percent increase over the EPS one Year Ago
Alphabet Inc. (GOOGL) is -0.11 at $107.23, with 1,680,284 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.32. As reported by Zacks, the current mean recommendation for GOOGL 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 -0.17 at $169.51, with 2,472,493 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. As reported in the last short interest update the days to cover for CTKB is 10.118108; this calculation is based on the average trading volume of the stock. Exelon Corporation (EXC) is unchanged at $42.44, with 3,449,712 shares traded.EXC is scheduled to provide an earnings report on 5/3/2023, for the fiscal quarter ending Mar2023.
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Apple Inc. (AAPL) is -0.17 at $169.51, with 2,472,493 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.66 per share, which represents a 64 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1 per share, which represents a 162 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.17 at $169.51, with 2,472,493 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.66 per share, which represents a 64 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1 per share, which represents a 162 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.17 at $169.51, with 2,472,493 shares traded.AAPL is scheduled to provide an earnings report on 5/4/2023, for the fiscal quarter ending Mar2023. Exelon Corporation (EXC) is unchanged at $42.44, with 3,449,712 shares traded.EXC is scheduled to provide an earnings report on 5/3/2023, for the fiscal quarter ending Mar2023. Bank of America Corporation (BAC) is unchanged at $29.28, with 2,961,039 shares traded.
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16136.0
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2023-04-28 00:00:00 UTC
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Wall St Week Ahead-Recession worries simmer beneath US stock market rally
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-recession-worries-simmer-beneath-us-stock-market-rally
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nan
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nan
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By Lewis Krauskopf
NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher.
The S&P 500 is up 8.6% for the year after gaining 1.5% in April, thanks to roaring year-to-date rallies in shares of Microsoft MSFT.O, Amazon AMZN.O and Google-parent Alphabet GOOGL.O and other growth and technology stocks that command heavy weightings in broader indexes.
Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
Investors cited growing caution among market participants faced with a thicket of concerns, from fears of a possible U.S. default this summer to worries that the Federal Reserve’s aggressive monetary tightening could bring on a recession.
“People are starting to more defensively position themselves,” said Aaron Dunn, co-head of the value equity team at Eaton Vance. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.”
Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month. The Dow Jones Transportation Average .DJT, another bellwether of economic health, fell 2.9%.
A 7.3% drop in the Philadelphia SE Semiconductor index .SOX was a worrying sign, as chips are ubiquitous in a wide range of products. The index is still up 18% for the year.
Regional banks are also wobbling, with the KBW Regional Banking index .KRX down 3.5% in April following a rout this week in shares of First Republic Bank FRC.N. At the same time, consumer staples .SPLRCS and healthcare .SPXHC, sectors favored by investors during uncertain times, have rallied in the past month.
Investors will focus on next week's Fed meeting, with the central bank expected to announce another 25 basis point rate hike on Wednesday. A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday.
Though the S&P 500 has shown resilience, just seven stocks -- Apple, Microsoft, Alphabet, Amazon, Tesla TSLA.O Meta Platforms META.O and Nvidia NVDA.O -- were responsible for more than 88% of its year-to-date gain as of Thursday, according to Mike O'Rourke, chief market strategist at Jones Trading.
“It makes me nervous to be honest,” said James Ragan, director of wealth management research at D.A. Davidson. “It just seems like the market gains are being concentrated in fewer and fewer stocks and that is probably unsustainable for too long.”
Ragan is recommending clients overweight defensive sectors such as healthcare, staples and utilities.
While results from megacaps and strong economic reports buoyed optimism among some on Wall Street, others focused on downbeat news from companies in economically sensitive areas.
Shares of United Parcel Service UPS.N tumbled 10% on Tuesday after the world's largest parcel delivery firm pegged annual revenue at the lower end of its forecast and warned of persistent pressure on volumes. The next day, shares of Old Dominion Freight Line ODFL.O also dropped 10% after the trucking firm missed quarterly estimates for profit and revenue.
"They are talking about demand being down and they are ridiculously important shipping companies,” said Matt Maley, chief market strategist at Miller Tabak.
Maley is recommending clients hold higher-than-typical cash levels because of concerns about a recession and because safer assets now have higher yields, while favoring energy and defense stocks.
Of course, not all signs have pointed to economic weakness in recent weeks.
Overall, earnings have come in better than feared for the first quarter. With just over half of the S&P 500 having reported, earnings are on pace to have declined 1.9% for the first quarter from the year earlier period, according to Refinitiv. That is a smaller decline than the 5.1% drop expected at the start of April.
Meanwhile, data on Thursday showed an acceleration in consumer spending in the first quarter as U.S. gross domestic product increased at a 1.1% annualized rate.
"It's hard to have a recession when consumers' incomes are rising, and they are spending more on both goods and services," Yardeni Research said in a note on Friday.
S&P 500 leaves key groups behindhttps://tmsnrt.rs/3nkSyEh
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. Investors cited growing caution among market participants faced with a thicket of concerns, from fears of a possible U.S. default this summer to worries that the Federal Reserve’s aggressive monetary tightening could bring on a recession. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.” Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. “The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.” Areas of the market showing cracks include the Russell 2000 .RUT, an index populated by smaller, domestically focused companies, which was down 1.9% for the month.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
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A bevy of earnings are also on deck, including results from Apple AAPL.O on Thursday. By Lewis Krauskopf NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.
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16137.0
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2023-04-28 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-27
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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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16138.0
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2023-04-28 00:00:00 UTC
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Is Meta Platforms Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-meta-platforms-stock-a-buy-2
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nan
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nan
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Meta Platforms' (NASDAQ: META) stock jumped 12% during after-hours trading on April 26 following its first-quarter report. The social media giant's revenue rose 3% year over year to $28.65 billion and beat analysts' estimates by $990 million.
Its net income fell 24% to $5.71 billion. Its earnings per share (EPS), which was buoyed by $9.22 billion in buybacks during the quarter, dropped 19% to $2.20 but still cleared the consensus forecast by $0.23.
Those better-than-expected numbers brought back some bulls, but Meta's stock remains nearly 40% below its all-time high. Is it time to hop aboard before Meta's stock recovers, or does it still face too many near-term headwinds?
Image source: Meta Platforms.
Meta's advertising business is stabilizing
Meta's advertising business, which accounted for 98% of its revenues in Q1, suffered a severe slowdown over the past year. After rising 21% in 2020 and 37% in 2021, its ad revenues declined 1% in 2022.
That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. But in Q1, Meta's advertising revenues rose 4% year over year and finally ended the segment's three-quarter streak of declining revenues.
METRIC
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Meta ad revenue
$27.0B
$28.2B
$27.2B
$32.2B
$28.1B
Growth (YOY)
6%
(2%)
(4%)
(4%)
4%
Data source: Meta Platforms. YOY = Year-over-year.
Meta mainly attributed that acceleration to elevated spending from Chinese e-commerce companies, which ramped up their ad purchases on Facebook and Instagram to reach more overseas buyers. That growth offset the macro-induced softness of the financial and tech verticals. A 26% increase in its ad impressions also offset a 17% decline in average ad prices.
Meta's ecosystem also continues to expand. Its Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) served 3.81 billion people on a monthly basis, representing 5% growth from a year earlier. Within that total, Facebook's monthly active users (MAUs) grew 2% year over year to 2.99 billion. That ongoing expansion ensures that Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google for the foreseeable future.
As for Apple's iOS changes, Meta continues to pivot from third-party data to first-party data (gathered within its own apps) to craft more effective targeted ads. To counter TikTok, Meta is expanding its short video platform Reels across Facebook and Instagram. During the conference call, CEO Mark Zuckerberg said its users were "resharing Reels more than two billion times every day" -- and that figure had doubled over the past six months.
But its margins are still declining
The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1. Even if we exclude $1.14 billion in restructuring charges related to its recent layoffs, its operating margin would still have shrunk by two percentage points.
That contraction was largely caused by its Reality Labs segment, which houses its virtual reality and augmented reality (VR/AR) products. Its Reality Labs revenues declined 51% year over year to $339 million as it sold fewer Quest 2 headsets, and the segment's operating loss widened from $2.96 billion to $3.99 billion.
By comparison, Meta's Family of Apps division generated an operating profit of $11.2 billion in Q1, and its operating margin only dipped two percentage points year over year to 40%. That's why some investors argue that Meta should either shutter or spin off the struggling Reality Labs segment to stabilize its margins.
But that won't happen anytime soon. During the call, CFO Susan Li said Meta expected the Reality Labs segment's operating losses to "increase year over year in 2023." Zuckerberg also noted that "building the metaverse is a long-term project."
Meta's commitment to the metaverse will likely remain a divisive topic, but investors should note that Alphabet also posted an operating margin of 25% in Q1. Just as Meta subsidizes the growth of Reality Labs with its higher-margin advertising business, Alphabet subsidizes the expansion of its lower-margin cloud and hardware divisions with its core advertising business. Therefore, Meta's metaverse ambitions don't necessarily make it a worse investment than Alphabet -- as long as you believe Meta can actually turn VR into the next big computing platform.
Brighter days could be ahead
Meta expects its revenue to rise 2% to 11% year over year in the second quarter, compared to the consensus forecast for 2% growth. It also plans to continue repurchasing more shares, and its $37.4 billion in cash, cash equivalents, and marketable securities gives it plenty of room for fresh investments.
Analysts expect Meta's revenue and earnings to rise 5% and 16%, respectively, for the full year. The stock still looks reasonably valued at 22 times forward earnings, and it could easily recover from its slump if the macro environment improves. Therefore, I believe Meta is still worth buying before it overcomes its near-term challenges.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Meta mainly attributed that acceleration to elevated spending from Chinese e-commerce companies, which ramped up their ad purchases on Facebook and Instagram to reach more overseas buyers. During the conference call, CEO Mark Zuckerberg said its users were "resharing Reels more than two billion times every day" -- and that figure had doubled over the past six months.
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That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. During the call, CFO Susan Li said Meta expected the Reality Labs segment's operating losses to "increase year over year in 2023." Just as Meta subsidizes the growth of Reality Labs with its higher-margin advertising business, Alphabet subsidizes the expansion of its lower-margin cloud and hardware divisions with its core advertising business.
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That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Meta's advertising business is stabilizing Meta's advertising business, which accounted for 98% of its revenues in Q1, suffered a severe slowdown over the past year. But its margins are still declining The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1.
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That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. But its margins are still declining The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1.
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16139.0
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2023-04-28 00:00:00 UTC
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Intel Is The Value Play Only Few Can See
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AAPL
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https://www.nasdaq.com/articles/intel-is-the-value-play-only-few-can-see
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nan
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nan
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Shares of Intel (NASDAQ: INTC) are on a swing after the markets closed today; investors are finding footing between disappointing results within the company's first quarter 2023 announcement and the hopes of management delivering their ambitious expansion plans for the future. While CEO Pat Gelsinger attempted to calm markets by stating within the press release that they are heavily focused on "... advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead."
While investors have been slowly getting accustomed to the challenging years that are to come as Intel pivots its business model and takes on extensive capital expenditures, such as a $20 billion investment into new facilities, which will allow the company to expand its IFS (Intel Foundry Services) segment, what lies ahead may be a fundamentally-driven environment, as negative free cash flows become the norm for Intel; investors will need to look deeper into the business to find the right deal.
Capitulation
Intel analyst ratings show signs of capitulation after placing a low single-digit upside from today's closing price. Most of the sentiment has been a resounding 'hold' that overtook the 'buy' consensus starting in 2021. Seeing revenue decline by nearly a third in the 2021-2023 period, coupled with earnings per share of $4.86 and adjusted $5.47 back then, compared to today's loss per share of $0.66, may have added steam to the changing sentiment.
Investors were dealt another blow today, as Intel reports an annual revenue decline of 36%, gross margins compressing from 50% to 34%, and the most significant negative free cash flow figure in company history. Free cash flow for 2022 was a total loss of $9.4 billion; in the first quarter of 2023 alone, Intel posted a negative free cash flow of $9.2 billion, nearly matching the worst 12-month period for the company. Moreover, the losses come amid slowdowns in the electronics industry, with companies like Apple (NASDAQ: AAPL) reporting 40% declines in personal computer shipments.
The industry's capacity utilization readings, a proxy for demand and supply balances, have been reading below 70%, where the typical range tends to be around 77-82%. Intel's capacity utilization has historically been above 100%; thus, the dynamic issuance and repayment of debt securities sported by the company, today's reading is a mere 21.4% to, be the lowest seen in company history.
Returns on invested capital (ROIC) metrics historically hover around 16-22% for shareholders today - and another first - the company reports -1% to -3% returns on capital invested. Adding to the bearish news comes pessimistic - though realistic - guidance from management's presentation, expecting to post no growth of $11.5 to $12.5 billion in revenue and a loss per share of $0.04 rarely excites markets. Investors, who have reason to be clenching jaws today, also digested that Intel issued 175 million shares during the 12-month comparison, diluting their ownership.
Deep(er) Value
Markets are typically forward-looking; the Intel chart shows that the stock had been selling off since the beginning of 2022, where a 52% decline in prices could have been the effects of markets expecting the inevitable deterioration of fundamentals amid macro developments. So why are shares advancing by 8% in the after-market session if all first-quarter financials show the symptoms of a dying business?
The answer to today's odd price action is in Intel's financials, namely the balance sheet. Investors will find that net asset value per share (NAV), computed as total assets minus total debt, stands at $31.30, subsequently taking book value per share of $23.6; there lies the first clue to a ceiling and a basement. Intel shares have been trading in a channel between these two figures, $23 for book value and $31 for NAV, since the first bottom in October of 2022.
Historically, Intel's price-to-book value multiple has hovered around 3x, thus taking today's $23.6 book value per share and applying the historical multiple gives investors a base case value for $70.8, which happens to be quite near the stock's high of $69.29 in 2020. Being more conservative with this multiple will still bring forth upside potential for investors. Taking a second look at the CEO's comment "...capitalize on the $1 trillion market opportunity ahead." How can markets think about this statement?
Foundry Services represent this underlying opportunity, a business that accrued $118 million in revenue for the company and has been making headway in new areas. For example, in April, Intel announced a collaboration deal with U.K.-based ARM, making Intel's 18A process the method of choice for the company's chip production moving forward. While Foundry services represent less than 2% of revenue, the success of collaborations could spill over into spiking adoption rates for IFS, rapidly bringing this service up to par and allowing the capital expenditures in facilities to pay off.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, the losses come amid slowdowns in the electronics industry, with companies like Apple (NASDAQ: AAPL) reporting 40% declines in personal computer shipments. Shares of Intel (NASDAQ: INTC) are on a swing after the markets closed today; investors are finding footing between disappointing results within the company's first quarter 2023 announcement and the hopes of management delivering their ambitious expansion plans for the future. Investors were dealt another blow today, as Intel reports an annual revenue decline of 36%, gross margins compressing from 50% to 34%, and the most significant negative free cash flow figure in company history.
|
Moreover, the losses come amid slowdowns in the electronics industry, with companies like Apple (NASDAQ: AAPL) reporting 40% declines in personal computer shipments. Investors were dealt another blow today, as Intel reports an annual revenue decline of 36%, gross margins compressing from 50% to 34%, and the most significant negative free cash flow figure in company history. Free cash flow for 2022 was a total loss of $9.4 billion; in the first quarter of 2023 alone, Intel posted a negative free cash flow of $9.2 billion, nearly matching the worst 12-month period for the company.
|
Moreover, the losses come amid slowdowns in the electronics industry, with companies like Apple (NASDAQ: AAPL) reporting 40% declines in personal computer shipments. Shares of Intel (NASDAQ: INTC) are on a swing after the markets closed today; investors are finding footing between disappointing results within the company's first quarter 2023 announcement and the hopes of management delivering their ambitious expansion plans for the future. While investors have been slowly getting accustomed to the challenging years that are to come as Intel pivots its business model and takes on extensive capital expenditures, such as a $20 billion investment into new facilities, which will allow the company to expand its IFS (Intel Foundry Services) segment, what lies ahead may be a fundamentally-driven environment, as negative free cash flows become the norm for Intel; investors will need to look deeper into the business to find the right deal.
|
Moreover, the losses come amid slowdowns in the electronics industry, with companies like Apple (NASDAQ: AAPL) reporting 40% declines in personal computer shipments. While CEO Pat Gelsinger attempted to calm markets by stating within the press release that they are heavily focused on "... advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead." While investors have been slowly getting accustomed to the challenging years that are to come as Intel pivots its business model and takes on extensive capital expenditures, such as a $20 billion investment into new facilities, which will allow the company to expand its IFS (Intel Foundry Services) segment, what lies ahead may be a fundamentally-driven environment, as negative free cash flows become the norm for Intel; investors will need to look deeper into the business to find the right deal.
|
16140.0
|
2023-04-28 00:00:00 UTC
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Apple's Magnificent Growth in This Market Could Be a Game Changer in the Long Run
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AAPL
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https://www.nasdaq.com/articles/apples-magnificent-growth-in-this-market-could-be-a-game-changer-in-the-long-run
|
nan
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nan
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Apple (NASDAQ: AAPL) is feeling the heat of the slump in the smartphone market. Shipments of iPhones were down 4% in 2022 to 226.4 million units, which explains why the tech giant's revenue and earnings fell at the end of 2022, even though this period coincided with the seasonally strong holiday sales season.
The bad news for Apple is that smartphone sales reportedly fell 12% year over year in the first quarter of calendar 2023. As the iPhone is Apple's largest source of revenue and accounts for 56% of its top line, it is not surprising that its top and bottom lines are expected to contract in the second quarter of fiscal 2023.
Apple's revenue is expected to dip 4.5% year over year to $93 billion for the three months that ended on March 31, 2023. Wall Street anticipates Apple's earnings will drop to $1.43 per share from $1.52 per share in the year-ago period. However, there's one market where Apple is recording terrific growth despite the smartphone slowdown, and that segment could eventually unlock a multibillion-dollar opportunity for the tech giant.
Apple's revenue reportedly jumped 50% in this fast-growing market
Bloomberg reports that Apple's revenue in India hit $6 billion in the 12-month period from April 2022 to March 2023. Citing a source familiar with Apple's India-specific performance, the publication pointed out that the company enjoyed a 50% revenue bump in India during this period, compared to the previous fiscal year, which ended in March 2022, when the company had enjoyed a 45% revenue jump.
Apple has generated $387 billion in revenue in the trailing 12 months, which means that India is still a very small portion of its business and doesn't account for even 2% of the company's top line. But that doesn't mean investors should discount Apple's massive potential in the India, especially considering the pace that market has been growing at a time when the broader smartphone market is under stress.
Smartphone shipments in India were down 10% in 2022 to 144 million units. But Apple weathered that downturn thanks to its 60% share of India's premium smartphone segment, which includes phones priced at $500 and above. The company reportedly controlled 5.5% of the Indian smartphone market at the end of 2022, according to CyberMedia Research (CMR). It is worth noting that this is Apple's highest-ever share in a price-sensitive market such as India and increased from 4.4% at the end of 2021.
This also tells us that Apple has massive room for growth in India. Only 4% of the country's 700 million smartphone owners have an iPhone. This number also suggests that smartphone penetration in India stands at less than 50%, based on the United Nation's mid-2023 population estimate of 1.42 billion people.
More growth is in the cards in India for the tech giant
It won't be surprising to see Apple further increase its market share in India this year. The company has just opened its first stores in India, one in Delhi and the other one in Mumbai. At the same time, Apple is also increasing its manufacturing footprint in the country. The company reportedly produces between 5% and 7% of its iPhones in India at present, which is a nice jump from just 1% in 2021.
Looking ahead, the Indian government believes that Apple could eventually manufacture a fourth of its iPhones in the country. The focus on increasing local production and enhancing the retail footprint is likely to help Apple increase its India-specific revenue substantially in the long run. Wedbush Securities analyst Dan Ives believes that Apple could generate $20 billion in annual revenue from India by 2025, suggesting that its business there could more than triple within the next three years.
More importantly, the Indian smartphone market is expected to generate $281 billion in revenue in 2028, compared to $139 billion in 2021. So Apple's market share growth and the company's strategy of boosting sales by lowering the price barrier, in addition to the moves discussed above, could make India a much bigger market for the company.
All this indicates why investors would do well to keep an eye on Apple's moves in India, as this market could play a key role in helping this tech stock soar in the long run.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is feeling the heat of the slump in the smartphone market. Apple has generated $387 billion in revenue in the trailing 12 months, which means that India is still a very small portion of its business and doesn't account for even 2% of the company's top line. Wedbush Securities analyst Dan Ives believes that Apple could generate $20 billion in annual revenue from India by 2025, suggesting that its business there could more than triple within the next three years.
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Apple (NASDAQ: AAPL) is feeling the heat of the slump in the smartphone market. Apple's revenue reportedly jumped 50% in this fast-growing market Bloomberg reports that Apple's revenue in India hit $6 billion in the 12-month period from April 2022 to March 2023. Citing a source familiar with Apple's India-specific performance, the publication pointed out that the company enjoyed a 50% revenue bump in India during this period, compared to the previous fiscal year, which ended in March 2022, when the company had enjoyed a 45% revenue jump.
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Apple (NASDAQ: AAPL) is feeling the heat of the slump in the smartphone market. Apple's revenue reportedly jumped 50% in this fast-growing market Bloomberg reports that Apple's revenue in India hit $6 billion in the 12-month period from April 2022 to March 2023. Citing a source familiar with Apple's India-specific performance, the publication pointed out that the company enjoyed a 50% revenue bump in India during this period, compared to the previous fiscal year, which ended in March 2022, when the company had enjoyed a 45% revenue jump.
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Apple (NASDAQ: AAPL) is feeling the heat of the slump in the smartphone market. More growth is in the cards in India for the tech giant It won't be surprising to see Apple further increase its market share in India this year. More importantly, the Indian smartphone market is expected to generate $281 billion in revenue in 2028, compared to $139 billion in 2021.
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16141.0
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2023-04-28 00:00:00 UTC
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Amazon Reports, And It's Mostly Good
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AAPL
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https://www.nasdaq.com/articles/amazon-reports-and-its-mostly-good
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nan
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Amazon.com Inc. (NASDAQ: AMZN) shares have been rallying since January and are up 35% in that timeframe, with more than 10% added in the past fortnight alone. Coming from a multi-year low that had shares trading back at 2018 levels, it meant investors could start to relax just a little bit. For a while last year, it looked like the e-commerce giant, whose shares used to defy gravity, was in trouble.
The company reported its Q1 2023 earnings report after the bell yesterday evening, and it's fair to assume that a large part of the recent rally was fuelled by bullish anticipation of the numbers. Like with Alphabet Inc (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META), the headline figures all beat analyst expectations. The initial reaction from shares in the after-hours session was to jump and jump hard.
They were quickly up more than 10%, but perhaps worryingly for the more bullish among us, they'd given up all their gains by the time the markets shut properly for the night. Let's jump into the numbers and see what it means for Amazon shares going forward, as well as the broader tech market.
The Numbers
For starters, the company's GAAP EPS came in at $0.31, well ahead of the expected $0.20. Revenue for the quarter beat expectations by $2.85 billion and showed year-on-year growth of 9.5%. So far, so good. Amazon's operating income also shone, coming in 60% higher than the consensus mark and well above what the company had previously guided. This, in turn, drove their operating margin to its best level in more than a year.
However, beyond these strong beats, there were some worrying trends. For the first time in its history, the company's AWS product saw a quarter-on-quarter decline, though it was pointed out that Q1 is historically a weak point in its sales cycle. To that point, Amazon's CFO Brian Olsavsky warned investors on theearnings callthat cloud spend was down as more and more companies tightened their belts and trimmed operational expenses. He warned that this is likely to continue, saying that "as expected, customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter. We are seeing these optimizations continue into the second quarter with April revenue growth rates about 500 basis points lower than what we saw in Q1."
It was this bearish tone that undid the initial pop in shares, and investors will be watching closely to see how shares trade into the weekend. Aside from the gloomy cloud outlook, there wasn't much else to worry about.
A strong area of growth for Amazon was its advertising business, a positive trend for the tech industry as a whole that we pointed out yesterday. The company's advertising revenues come from things like sponsored product ads and display ads, and this stream is benefiting from increased adoption by third-party sellers and advertisers. Amazon's e-commerce business remains another pillar of its success, with its Prime membership program continuing to be a key driver of growth.
Looking Ahead
The cloud spending dip will likely hurt earnings for at least the next two quarters. Otherwise, management would likely have flagged it as a shorter-term risk. But remember, the stock has already fallen 55% from 2021's all-time high, and even with the recent rally is still down 40%. It's not like that dip wasn't expected, and you have to think a large portion of that is already baked into the share price.
There were enough bright spots beyond that to justify a broadly bullish outlook, with MarketBeat's Forecasting tool fairly on the money with its Moderate Buy rating and 30% targeted upside. Let's see if shares can hold their ground into the weekend and if Amazon can help add momentum to the wider tech industry earnings beats.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like with Alphabet Inc (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META), the headline figures all beat analyst expectations. To that point, Amazon's CFO Brian Olsavsky warned investors on theearnings callthat cloud spend was down as more and more companies tightened their belts and trimmed operational expenses. Amazon's e-commerce business remains another pillar of its success, with its Prime membership program continuing to be a key driver of growth.
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Like with Alphabet Inc (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META), the headline figures all beat analyst expectations. A strong area of growth for Amazon was its advertising business, a positive trend for the tech industry as a whole that we pointed out yesterday. The company's advertising revenues come from things like sponsored product ads and display ads, and this stream is benefiting from increased adoption by third-party sellers and advertisers.
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Like with Alphabet Inc (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META), the headline figures all beat analyst expectations. The company reported its Q1 2023 earnings report after the bell yesterday evening, and it's fair to assume that a large part of the recent rally was fuelled by bullish anticipation of the numbers. To that point, Amazon's CFO Brian Olsavsky warned investors on theearnings callthat cloud spend was down as more and more companies tightened their belts and trimmed operational expenses.
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Like with Alphabet Inc (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META), the headline figures all beat analyst expectations. Aside from the gloomy cloud outlook, there wasn't much else to worry about. A strong area of growth for Amazon was its advertising business, a positive trend for the tech industry as a whole that we pointed out yesterday.
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16142.0
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2023-04-28 00:00:00 UTC
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Here is What to Know Beyond Why Apple Inc. (AAPL) is a Trending Stock
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AAPL
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-apple-inc.-aapl-is-a-trending-stock-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.
Shares of this maker of iPhones, iPads and other products have returned +3.7% over the past month versus the Zacks S&P 500 composite's +4% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 6.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of -5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.9%.
For the current fiscal year, the consensus earnings estimate of $6.01 points to a change of -1.6% from the prior year. Over the last 30 days, this estimate has changed -0.5%.
For the next fiscal year, the consensus earnings estimate of $6.66 indicates a change of +10.7% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $93.32 billion indicates a year-over-year change of -4.1%. For the current and next fiscal years, $387.99 billion and $414.61 billion estimates indicate -1.6% and +6.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $117.15 billion in the last reported quarter, representing a year-over-year change of -5.5%. EPS of $1.88 for the same period compares with $2.10 a year ago.
Compared to the Zacks Consensus Estimate of $121.21 billion, the reported revenues represent a surprise of -3.34%. The EPS surprise was -2.59%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) 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. For the next fiscal year, the consensus earnings estimate of $6.66 indicates a change of +10.7% from what Apple is expected to report a year ago.
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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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16143.0
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2023-04-27 00:00:00 UTC
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Meta's Earnings; Time To Buckle Up
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AAPL
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https://www.nasdaq.com/articles/metas-earnings-time-to-buckle-up
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Meta Platforms Inc (NASDAQ: META), formerly known as Facebook, had an impressive Q1 2023 earnings report, beating analysts' expectations and showing strong growth in several key areas. As a result, the company's shares gapped up on Thursday's open to the tune of 15%. It was both a remarkable result and a remarkable response, which bodes well for the tech company as a whole.
We wrote yesterday about how both Google and Apple had done just enough to keep the tech industry buoyant with their earnings beats, but this from Meta is a whole other story. The share price action suggests that the positive momentum could continue in the coming days, so get excited. It's a similar gap to what they experienced at the end of Jan, and we could be looking at the start of another fresh multi-month rally.
Smashing Expectations
Digging into the numbers, the company's GAAP EPS came in at $2.20, well ahead of the consensus estimate of $1.97. Meanwhile, the company's revenue of $28.6 billion also beat expectations and showed growth of 2.7% year on year. It wasn't quite the double-digit growth results of yesteryear, but like their tech titan peers yesterday, it will be more than good enough for now. Remember, it's only a few months since people were spelling the end of tech as we knew it, as rising interest rates struck home the nails in many a Silicon Valley company's coffin.
But the recovery story has been truly one for the ages. Since last November, Meta shares have tacked on 175%, including this morning's jump. And the cherry on top? Well, they're still only barely halfway on their journey to undoing all of last year's selloff.
The past quarter's numbers were driven largely by growth in the company's advertising business, which crushed analyst expectations and surprised investors. Meta's user base also continued to grow, with daily active users (DAUs) reaching 2.04 billion. The company also noted that its efforts to increase ad efficiency had paid off, with the average price per ad increasing by 22% year-on-year. In addition, management saw fit to issue forward guidance that also came in hot, with Zuckerberg et al expecting Q2 revenue to be in the region of $29.5-32 billion.
Looking Ahead
In addition to its advertising business, Meta's other business units also showed strong growth. Looking ahead, Meta's CEO, Mark Zuckerberg, highlighted the company's focus on privacy and building a metaverse, a shared virtual space that's expected to be the next big thing in social media. The company is also investing in its messaging platforms, such as WhatsApp and Messenger, to drive further growth and revenue.
Meta's strong earnings report is likely to have a positive impact on the broader tech market, particularly other social media companies. Shortly after the market opened on Thursday, the S&P 500 index was up a cool 1.25%, with most commentators thanking Meta for the boost. Those of us on the sidelines know that analysts are remaining bullish on Meta's prospects for the near and medium term. MarketBeat's MarketRank Forecast has a Moderate Buy rating on the stock, based on 40 Buy recommendations out of a total of 49 market ratings.
Some price targets to be kept in mind include the Royal Bank of Canada's $285, Deutsche Bank's $290 and Guggenheim's $320. The latter of these is pointing to an upside of more than 30%, and that's including this morning's jump.
So get excited, both for Meta and tech as a whole. Their strong earnings report is a positive sign for the company and will reinforce those from their peers yesterday. It will be a while before we're back to the heady heights of 2020 and 2021, but for now, at least, we can cautiously say that tech hasn't looked this promising in a year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Remember, it's only a few months since people were spelling the end of tech as we knew it, as rising interest rates struck home the nails in many a Silicon Valley company's coffin. The past quarter's numbers were driven largely by growth in the company's advertising business, which crushed analyst expectations and surprised investors. Looking ahead, Meta's CEO, Mark Zuckerberg, highlighted the company's focus on privacy and building a metaverse, a shared virtual space that's expected to be the next big thing in social media.
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Meta Platforms Inc (NASDAQ: META), formerly known as Facebook, had an impressive Q1 2023 earnings report, beating analysts' expectations and showing strong growth in several key areas. Meanwhile, the company's revenue of $28.6 billion also beat expectations and showed growth of 2.7% year on year. Looking Ahead In addition to its advertising business, Meta's other business units also showed strong growth.
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Meta Platforms Inc (NASDAQ: META), formerly known as Facebook, had an impressive Q1 2023 earnings report, beating analysts' expectations and showing strong growth in several key areas. Meanwhile, the company's revenue of $28.6 billion also beat expectations and showed growth of 2.7% year on year. Meta's strong earnings report is likely to have a positive impact on the broader tech market, particularly other social media companies.
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Meta Platforms Inc (NASDAQ: META), formerly known as Facebook, had an impressive Q1 2023 earnings report, beating analysts' expectations and showing strong growth in several key areas. As a result, the company's shares gapped up on Thursday's open to the tune of 15%. Meanwhile, the company's revenue of $28.6 billion also beat expectations and showed growth of 2.7% year on year.
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16144.0
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2023-04-27 00:00:00 UTC
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Tech is Back. 3 ETFs to Invest in the Sector
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AAPL
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https://www.nasdaq.com/articles/tech-is-back.-3-etfs-to-invest-in-the-sector
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nan
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After a terrible 2022, the tech sector was left for dead by many investors. But in 2023, tech is back, and big tech stocks are surging after posting positive results during the current round of earnings. Microsoft (NASDAQ:MSFT) kicked things off by beating estimates on earnings and revenue, with its cloud results, in particular, impressing investors and analysts.
Next, while its share price didn’t get as big a boost as Microsoft’s, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) joined Microsoft in beating consensus estimates and added $70 billion to its share repurchase program. Additionally, Meta Platforms (NASDAQ:META) handily beat both top and bottom-line expectations, as daily active users grew and ad revenue recovered, leading shares to surge by 14% at writing.
Investors are awaiting Amazon's (NASDAQ:AMZN) results later today, but in any case, earnings season has given a jolt to the tech sector.
Tech leaders are posting impressive results, and another appealing aspect of the tech sector is that after 2022’s challenges, many of these companies are leaner and more profitable than they were before. Even better for investors, this increased profitability means that valuations are more palatable than they were a few years ago.
For example, even after a massive ~100% gain year-to-date in 2023, Meta Platforms still trades at a P/E of 25 when factoring in its most recent results. While this isn’t dirt cheap, it’s still trading at around the average multiple of the broader market. Meanwhile, Alphabet is even cheaper, trading at 20.3 times earnings even after gaining 22% year-to-date.
For readers who want to invest in this tech resurgence, using ETFs is a convenient and effective way to gain broad exposure to the sector as a whole instead of investing in each individual company. If you are just getting started investing, ETFs can help you to harness the power of the entire sector in your portfolio. Therefore, here are three leading tech-oriented ETFs with investor-friendly expense ratios that give investors undiluted exposure to top tech stocks.
1. Invesco QQQ Trust (NASDAQ:QQQ)
If you’re looking for exposure to top tech stocks, the Invesco QQQ Trust, often called “The Q’s” by investors, is a great place to start. With $169 billion in AUM, this is the fifth-largest ETF in the world and one of the most popular.
Because it invests in the tech-centric Nasdaq 100 (NDX) index, QQQ is a quick and simple ETF for investors to gain exposure to large cap tech as a whole. QQQ holds 102 positions, and its top 10 holdings make up 55% of the fund. This is because tech giants like Apple (NASDAQ:AAPL) and Microsoft have double-digit weightings, while stocks like the aforementioned Meta Platforms, Amazon, and Alphabet also have relatively heavy weightings.
Further, semiconductor giants like Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA) are jointed by Tesla (NASDAQ:TSLA) in the top 10. The only non-tech company in this list is Pepsi (NASDAQ:PEP), which occupies this spot because it is one of the largest stocks listed on the Nasdaq.
Below, you’ll find an overview of QQQ’s top holdings using TipRanks’ Holdings tool, which gives investors key data about an ETF’s portfolio.
QQQ’s top holdings boast an impressive collection of Smart Scores, with 7 out of the 10 enjoying Smart Scores of 8 or better, equivalent to an Outperform rating. QQQ itself has an impressive ETF Smart Score of 8. The Smart Score is TipRanks’ proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The result is data-driven and does not require any human intervention.
In addition to this strong group of holdings and heavy exposure to large cap tech, QQQ features a favorable expense ratio of just 0.2%, meaning that an investor putting $10,000 into QQQ would pay just $20 in fees over the course of the year.
Additionally, QQQ has a great long-term track record, with annualized returns of 19.8%, 15.7% and 17.7% over the last three, five, and 10 years, respectively (as of March 31), becoming the de facto flagship ETF for tech at large, making it a worthy starting point for investors looking to invest in this exciting segment of the market.
Is QQQ Stock a Buy, According to Analysts?
Analysts view QQQ stock as a consensus Moderate Buy, and the average QQQ stock price target of $361.70 implies 13.4% upside potential from here.
2. Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT)
The Vanguard Information Technology Index Fund is a popular tech ETF from ETF and mutual fund manager Vanguard, with $44 billion in assets under management. It has an even lower expense ratio than QQQ at just 0.1%, meaning that if you were to allocate $10,000 into VGT, you’d pay a negligible $10 in fees in year one.
While QQQ gets its tech exposure by investing in the Nasdaq 100, VGT “employs an indexing investment approach designed to track the
performance of the MSCI US Investable Market Index (IMI)/Information
Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector," according to the funds prospectus.
VGT holds even more stocks than QQQ, with 366 positions, although, like QQQ, its top 10 holdings dominate the fund, making up 61.9% of assets. Therefore, for an ETF holding 366 positions, VGT isn’t necessarily as diversified as it looks at first glance, but if you are looking for undiluted exposure to big tech, this isn’t necessarily a bad thing.
Apple makes up an incredible 22.8% of holdings, while Microsoft accounts for 18.1%. VGT shares a few other top holdings with QQQ, including Nvidia and Broadcom. Other top 10 positions include Cisco Systems (NASDAQ:CSCO), Salesforce (NYSE:CRM), Accenture (NYSE:ACN), Adobe (NASDAQ:ADBE), and payment giants Visa (NYSE:V) and Mastercard (NYSE:MA).
While some investors may question why these legacy payments networks are in a technology fund, it's because they are at the forefront of the fintech revolution. Plus, these stocks have been incredible compounders over the years, so having them in the fund is certainly not a bad thing. Check out an overview of VGT's top holdings below.
As is the case with QQQ, VGT's holdings have some impressive Smart Scores, as 8 out of the 10 feature Smart Scores of 8 or better. Apple, Nvidia, Visa and Accenture all feature 'Perfect 10' scores, and VGT itself has an ETF Smart Score of 8.
VGT also has a very solid performance track record, with annualized returns of 23.1%, 18.8%, and 19.5% over the past three, five and 10 years, respectively, making this ETF another solid choice for tech investors.
Is VGT Stock a Buy, According to Analysts?
Like QQQ, analysts view VGT stock as a Moderate Buy, and the average VGT stock price target of $427.70 implies similar upside potential of 13%.
3. Technology Select Sector SPDR Fund (NYSEARCA:XLK)
Lastly, the Technology Select Sector SPDR Fund from State Street Global covers the technology sector of the S&P 500 (SPX). This popular ETF is smaller than QQQ but similar in size to VGT, with $42 billion in AUM.
XLK holds fewer positions than QQQ and VGK with 68 holdings. Furthermore, its top 10 holdings make up 69.3% of the fund. While Apple takes up a large amount of VGT, it occupies an even larger position in XLK, with a 23.6% weighting.
But it isn’t even the largest holding here -- after its recent runup, Microsoft makes up 24.3% of the fund. In essence, Apple and Microsoft together are nearly half of XLK, so despite the fact that it has 68 holdings, this is a very top-heavy ETF.
Below is a look at XLK's top 10 holdings.
XLK also boasts an impressive long-term track record, with annualized returns of 24.5%, 19.5%, and 19.1% over the past three, five and 10 years.
Is XLK Stock a Buy, According to Analysts?
Like the other two funds, analysts collectively rate XLK stock as a Moderate Buy, and the average XLK stock price target of $165.01 represents 11.2% upside potential from current prices.
Investor Takeaway
With low fees, outstanding long-term track records, and significant exposure to tech, all three of these ETFs are great starting points for investors who want to allocate money toward tech. Top tech stocks are leaner and more profitable than they were in the past, and their valuations look more palatable.
Furthermore, over the long term, advances like artificial intelligence (AI), workflow automation, growing cloud adoption, and other emerging tech trends will continue to drive these stocks forward.
My personal favorite of the three is QQQ since it is more diversified and isn't quite as beholden to Microsoft and Apple as XLK and VGT are, reducing the risk of one of these stocks underperforming.
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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This is because tech giants like Apple (NASDAQ:AAPL) and Microsoft have double-digit weightings, while stocks like the aforementioned Meta Platforms, Amazon, and Alphabet also have relatively heavy weightings. Because it invests in the tech-centric Nasdaq 100 (NDX) index, QQQ is a quick and simple ETF for investors to gain exposure to large cap tech as a whole. Additionally, QQQ has a great long-term track record, with annualized returns of 19.8%, 15.7% and 17.7% over the last three, five, and 10 years, respectively (as of March 31), becoming the de facto flagship ETF for tech at large, making it a worthy starting point for investors looking to invest in this exciting segment of the market.
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This is because tech giants like Apple (NASDAQ:AAPL) and Microsoft have double-digit weightings, while stocks like the aforementioned Meta Platforms, Amazon, and Alphabet also have relatively heavy weightings. Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT) The Vanguard Information Technology Index Fund is a popular tech ETF from ETF and mutual fund manager Vanguard, with $44 billion in assets under management. Like QQQ, analysts view VGT stock as a Moderate Buy, and the average VGT stock price target of $427.70 implies similar upside potential of 13%.
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This is because tech giants like Apple (NASDAQ:AAPL) and Microsoft have double-digit weightings, while stocks like the aforementioned Meta Platforms, Amazon, and Alphabet also have relatively heavy weightings. Invesco QQQ Trust (NASDAQ:QQQ) If you’re looking for exposure to top tech stocks, the Invesco QQQ Trust, often called “The Q’s” by investors, is a great place to start. While QQQ gets its tech exposure by investing in the Nasdaq 100, VGT “employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector," according to the funds prospectus.
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This is because tech giants like Apple (NASDAQ:AAPL) and Microsoft have double-digit weightings, while stocks like the aforementioned Meta Platforms, Amazon, and Alphabet also have relatively heavy weightings. QQQ holds 102 positions, and its top 10 holdings make up 55% of the fund. VGT holds even more stocks than QQQ, with 366 positions, although, like QQQ, its top 10 holdings dominate the fund, making up 61.9% of assets.
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2023-04-27 00:00:00 UTC
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7 High-Dividend Growth Stocks for a Profitable Portfolio
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AAPL
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https://www.nasdaq.com/articles/7-high-dividend-growth-stocks-for-a-profitable-portfolio
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
An ideal portfolio is a mix of dividend and growth stocks. Blue-chip stocks offer stable dividend and capital protection through a low-beta. In general, investing in growth stocks is for maximizing capital gains. However, there are high-dividend growth stocks that add diversity to the portfolio.
If business developments remain positive, these growth stocks can be dividend aristocrats in the coming years. The macroeconomic scenario remains uncertain and it’s another reason to be overweight on stocks that provide regular dividends. Additionally, valuation seem to be on the attractive side for most growth stocks. A strong rally from oversold levels would imply high total returns.
I also believe that growth stocks are poised to take-off in the next few quarters. With an impending recession, monetary policy action is likely to shift towards expansionary. This will be positive for the broader equity markets. With these factors in consideration, let’s talk about seven high-dividend growth stocks to buy at current levels.
ALB Albemarle $186.00
DOX Amdocs $90.60
KGC Kinross Gold $5.07
AAPL Apple $168.41
YUMC Yum China $60.58
AKRBF Aker BP ASA $1.40
PCRFY Panasonic $9.50
Albemarle (ALB)
Source: Tendo / Shutterstock
Albemarle (NYSE:ALB) has been trending lower because of a decline in lithium prices. However, the correction is temporary with lithium demand expected to remain robust through the decade. ALB stock looks attractive among high-dividend growth stocks at a forward price-earnings ratio of 6.5. Currently, the stock offers an annualized dividend of $1.60.
Besides the valuation factor, a key reason to like Albemarle is ambitious growth plans. The company boosted lithium conversion capacity to 200ktpa at the end of 2022. Albemarle has further guided for capacity expansion to 550ktpa (mid-range) by 2027. This will ensure steady revenue and dividend growth.
It’s also worth mentioning that Albemarle has a quality balance sheet. As of Q4 2022, Albemarle reported net-debt-to-EBITDA of 0.5. Further, the company had $1.5 billion in cash and equivalents. With visibility of healthy cash flows, I expect capital expenditure from internal accruals.
Amdocs (DOX)
Source: 3rdtimeluckystudio / Shutterstock
Amdocs (NASDAQ:DOX) is another interesting growth story with DOX stock trading at an attractive forward P/E of 15.3. The stock offers a dividend yield of 1.93% and I expect sustained dividend growth. Amdocs is a provider of software solutions and services to the telecommunication and media industry globally. The company believes that the potential addressable market by 2025 for its services will be $57 billion. This provides ample headroom for growth.
Amdocs is well diversified globally with presence in 90 countries. In the coming years, adoption of 5G will be a key growth catalyst. Additionally, Amdocs has invested $1 billion in its next-generation cloud platform.
Another positive is that 75% of the company’s revenue is recurring. This provides clear cash flow visibility. Last year, the company reported free cash flow of $600 million. Amdocs has guided for FCF in excess of $700 million for the year. With a majority being returned to shareholders, there is visibility for healthy dividend growth.
Kinross Gold (KGC)
Source: MEE KO DONG / Shutterstock
Kinross Gold (NYSE:KGC) stock has been sideways, amidst volatility, in the last 12 months. However, with precious metals trending higher, a breakout on the upside seems imminent for this 2.4% dividend yield stock.
One point to note is that Kinross expects to deliver stable gold production through 2025. However, with upside in realized gold prices, the company’s revenue and cash flow growth is likely to be robust. To put things into perspective, Kinross reported free cash flow of $157.5 million for Q4 2022. This would imply an annualized FCF potential in excess of $600 million. I therefore expect healthy dividend growth in 2023 coupled with aggressive share repurchase.
It’s also worth noting that Kinross ended 2022 with a total liquidity buffer of $1.8 billion. Kinross was negatively impacted in 2022 as the company was forced to sell Russian assets due to geopolitical factors. With a strong liquidity buffer, I expect the company to pursue opportunistic acquisition to boost growth.
Apple (AAPL)
Source: smshoot/ShutterStock.com
Considering the market capitalization, Apple (NASDAQ:AAPL) would ideally be among the blue-chip stocks. However, I would include Apple in the list of high-dividend growth stocks for two reasons. First, Apple is expanding through diversification and innovation. I expect earnings growth to remain healthy. Furthermore, AAPL stock has an annualized dividend of 92 cents. With a strong balance sheet and robust cash flows, dividend growth is likely to remain well above the industry average.
An important point to note is that Apple is shifting focus to India to accelerate growth. The country has the among the best demographics in the world with a swelling middle-class. Additionally, the company’s services and wearable segment has sustained growth potential. The company has also been working on car technology and that’s another potential game-changer in the next few years.
Overall, Apple is positioned to deliver value through dividend growth and share repurchases. AAPL stock looks attractive for a rally at a forward P/E of 27.4.
Yum China Holdings (YUMC)
Source: Shutterstock
Yum China (NYSE:YUMC) stock has rallied by 50% in the last 12 months. However, the 0.86% dividend yield stock is poised for further upside in the coming quarters.
It’s worth noting that the company’s performance in 2022 was negatively impacted by covid restrictions. However, there are two positives to note. First, digital orders surged during the pandemic and will continue to support comparable restaurant sales growth. Furthermore, even with the pandemic impact, Yum China opened net new stores of 1,159. New store openings will have a significant impact on revenue growth once covid restrictions are completely lifted.
For the current year, Yum China is planning to open 1,200 net new stores. Therefore, new store openings will continue to boost growth. From the perspective of dividends, Yum China reported $734 million in free cash flow for 2022. It’s likely that FCF will continue to swell and this would imply robust dividend growth.
Aker BP ASA (AKRBF)
Source: Freedom365day / Shutterstock.com
Aker BP ASA (OTCMKTS:AKRBF) is possibly the best pick from growth stocks in the oil and gas sector. The growth stock also offers an attractive dividend yield of 8.79% and dividends are sustainable.
Aker BP ASA is involved in production and exploration activity with a focus on the Norwegian Continental Shelf. For Q4 2022, Aker BP reported production of 432mboepd. From existing projects, the company is targeting to increase production to 525mboepd by 2028.
Additionally, Aker BP has plans for development and operation of projects with 730mmboe in net resources. This will provide further upside visibility to the company’s production target. It’s also worth mentioning that Aker BP is a low-cost producer. Last year, the company reported $13 billion in revenue and $11.8 billion in EBITDA.
It’s not surprising that the dividend pay-out is robust. I expect strong free cash flows to support dividend growth and aggressive capital investments. Aker BP has also been active on the acquisition front in the last decade. The company boosted production from 211mboepd in 2020 to 432mboepd in Q4 2022 with the acquisition of Lundin Energy. Acquisitions will continue to support production upside.
Panasonic Holdings (PCRFY)
Source: Shutterstock
Panasonic Holdings (OTCMKTS:PCRFY) stock looks undervalued at a forward PE of 17.4. PCRFY stock has a current dividend yield of 1.13%. However, I expect healthy dividend growth with the company pursuing aggressive capital investments.
From a growth perspective, Panasonic has one operational battery plant in the U.S. The second plant is under construction in and the company is planning a third plant at Oklahoma. Once operational, these battery plants will ensure that revenue growth accelerates. Further, Toyota (NYSE:TM) and Panasonic are looking to invest $5.6 billion in a new battery plant in Japan.
Panasonic is high on innovation and that’s another reason to be bullish. The company is eyeing a 20% increase in battery density by 2030. This will help in manufacturing of lighter electric vehicles while keeping the range unchanged. Toyota and Panasonic also happen to be leaders in solid-state battery patents.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 7 High-Dividend Growth Stocks for a Profitable Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ALB Albemarle $186.00 DOX Amdocs $90.60 KGC Kinross Gold $5.07 AAPL Apple $168.41 YUMC Yum China $60.58 AKRBF Aker BP ASA $1.40 PCRFY Panasonic $9.50 Albemarle (ALB) Source: Tendo / Shutterstock Albemarle (NYSE:ALB) has been trending lower because of a decline in lithium prices. Apple (AAPL) Source: smshoot/ShutterStock.com Considering the market capitalization, Apple (NASDAQ:AAPL) would ideally be among the blue-chip stocks. Furthermore, AAPL stock has an annualized dividend of 92 cents.
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ALB Albemarle $186.00 DOX Amdocs $90.60 KGC Kinross Gold $5.07 AAPL Apple $168.41 YUMC Yum China $60.58 AKRBF Aker BP ASA $1.40 PCRFY Panasonic $9.50 Albemarle (ALB) Source: Tendo / Shutterstock Albemarle (NYSE:ALB) has been trending lower because of a decline in lithium prices. Apple (AAPL) Source: smshoot/ShutterStock.com Considering the market capitalization, Apple (NASDAQ:AAPL) would ideally be among the blue-chip stocks. Furthermore, AAPL stock has an annualized dividend of 92 cents.
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ALB Albemarle $186.00 DOX Amdocs $90.60 KGC Kinross Gold $5.07 AAPL Apple $168.41 YUMC Yum China $60.58 AKRBF Aker BP ASA $1.40 PCRFY Panasonic $9.50 Albemarle (ALB) Source: Tendo / Shutterstock Albemarle (NYSE:ALB) has been trending lower because of a decline in lithium prices. Apple (AAPL) Source: smshoot/ShutterStock.com Considering the market capitalization, Apple (NASDAQ:AAPL) would ideally be among the blue-chip stocks. Furthermore, AAPL stock has an annualized dividend of 92 cents.
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ALB Albemarle $186.00 DOX Amdocs $90.60 KGC Kinross Gold $5.07 AAPL Apple $168.41 YUMC Yum China $60.58 AKRBF Aker BP ASA $1.40 PCRFY Panasonic $9.50 Albemarle (ALB) Source: Tendo / Shutterstock Albemarle (NYSE:ALB) has been trending lower because of a decline in lithium prices. Apple (AAPL) Source: smshoot/ShutterStock.com Considering the market capitalization, Apple (NASDAQ:AAPL) would ideally be among the blue-chip stocks. Furthermore, AAPL stock has an annualized dividend of 92 cents.
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2023-04-27 00:00:00 UTC
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3 Tech Stocks With Huge Return Potential for Long-Term Investors
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-with-huge-return-potential-for-long-term-investors
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The tech industry is one of the most important growth drivers of our economy and it did suffer more than expected in 2022. However, with the market picking up the pace and companies reporting better-than-expected results, we can see the stock market gearing up for a wonderful rest of the year. Smart investors know that some companies have cemented themselves as cornerstones of the U.S. tech industry and investing in those long-term tech stocks will ensure consistent growth and dividends.
The tech companies we are talking about are the businesses that support other businesses. They bring products and services that are essential for individuals as well as business owners and this means they will continue generating revenue. It is important to focus on the long term and not expect an immediate impact. Investors who buy and hold often see impressive gains in the long run but the trick is to buy the right stocks to add to your portfolio.
If you are looking for solid tech stocks to buy and hold, here are the three top companies to buy for the long-term before they skyrocket.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
If you had to invest in only one stock and hold it for the long-term, I’d recommend Microsoft (NASDAQ:MSFT). The company is a tech dinosaur that has evolved over the years and is a cloud computing leader today. It is pivoting to add artificial intelligence across its business and has invested in OpenAI, the company behind ChatGPT. Its total investment in OpenAI is $13 billion which will pay off further down the road. Microsoft is a company with solid financials and its recent quarterly report is proof that the company can do well, no matter the market conditions.
The company reported a 7% year-over-year revenue growth and hit $52.9 billion. Its profitability was even more robust with diluted EPS of $2.45 per share. Its Intelligent cloud segment was the highest revenue growth driver at 19% led by Azure Cloud which saw a whopping 31% growth. The earnings surge can add a record $151 billion to its market value. After the stellar results, Deutsche Bank raised the price target of the stock to $340 with a buy rating. Microsoft remains one of the best tech stocks to buy and hold in 2023.
The stock is up 23% year-to-date and has generated over 200% returns in the past five years. It hasn’t suffered as much as other stocks in the tech sell-off in 2022. My InvestorPlace colleague Larry Ramer believes that AI is taking the stock higher. If the market continues to improve, we could see MSFT stock gaining strength. The company also has a dividend yield of 0.92% and recently announced a quarterly dividend of $0.68 which makes the stock more attractive.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Next on the list is Apple (NASDAQ:AAPL). The tech giant has become a household name today due to its iPhones. One solid reason to bet on this company is its loyal customer base. It has been noticed that people who are using Apple will resist having to switch to another brand. That said, a lot of loyal customers are eagerly waiting for new models and latest services each year. The company’s steady growth in the services segment makes it a solid buy and hold. The stock is up 30% year to date and up 13% in the past six months.
This is one of the long-term tech stocks to buy and hold for the decade. No matter the market condition, Apple will continue growing strong. Stocks tend to perform better when the company reports profitability and nobody can beat Apple here. The company has a valuation of $2.65 trillion and it maintains a steady rise in revenue quarter after quarter. Fundamentally, Apple is a very stable company and one of the top blue-chip stocks to own. The company reports results on May 4 and buying AAPL stock before the earnings could help make significant gains.
Deutsche Bank has a price target of $170 for AAPL stock with a buy rating. Analysts expect the company to report results in line with estimates.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
The list of top long-term tech stocks remains incomplete without the mention of Nvidia (NASDAQ:NVDA). A strong player in the tech space, Nvidia is here for the long term and it could be the biggest beneficiary of the AI revolution. Despite the massive tech sell off last year, NVDA stock is up 46% year-over-year. It is steadily gaining strength and inching closer to the 52-week high of $281. The stock is up 100% over the past six months. If you haven’t had the chance to buy NVDA stock, now isn’t too late.
Nvidia has a diversified business and it is already using AI across different segments. Plus, as AI technology continues to develop it will need Nvidia. The company’s chips are used to run AI applications and they do not come cheap, which means there is massive revenue opportunity for the company. It is also seeing impressive growth in the data center segment.
NVDA has a lot of potential to outperform the market and no matter how the market moves from here, the stock will stand strong. Recently, HSBC changed its stance on NVDA stock and at the time it was the only institution that had a negative rating on it. That said, the firm also doubled the price target of the stock to $355.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
The post 3 Tech Stocks With Huge Return Potential for Long-Term Investors appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company reports results on May 4 and buying AAPL stock before the earnings could help make significant gains. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Next on the list is Apple (NASDAQ:AAPL). Deutsche Bank has a price target of $170 for AAPL stock with a buy rating.
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The company reports results on May 4 and buying AAPL stock before the earnings could help make significant gains. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Next on the list is Apple (NASDAQ:AAPL). Deutsche Bank has a price target of $170 for AAPL stock with a buy rating.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Next on the list is Apple (NASDAQ:AAPL). The company reports results on May 4 and buying AAPL stock before the earnings could help make significant gains. Deutsche Bank has a price target of $170 for AAPL stock with a buy rating.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Next on the list is Apple (NASDAQ:AAPL). The company reports results on May 4 and buying AAPL stock before the earnings could help make significant gains. Deutsche Bank has a price target of $170 for AAPL stock with a buy rating.
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2023-04-27 00:00:00 UTC
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Tax Efficiency & Trading Tips with ETFs
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AAPL
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https://www.nasdaq.com/articles/tax-efficiency-trading-tips-with-etfs
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nan
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nan
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(1:00) - How Much Can You Save When Investing Into ETFs?
(6:45) - Which Bonds Will Give Your Portfolio The Best Return?
(10:00) - When Is The Best Time To Buy And Sell ETFs?
(14:15) - Can You Time The Market Based On Valuation Analysis?
(18:00) - What Stocks Perform The Best In A Market Recession?
(19:45) - Options Traders Beware: How Much Are You Really Losing?
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Dr. Derek Horstmeyer, Professor of Finance at George Mason University, and a regular contributor to the Wall Street Journal. His research focus areas include ETF & mutual fund performance.
Many investors now prefer ETFs over mutual funds because they are more tax-efficient and usually cheaper. Over the past few years, mutual funds have lost assets at a record pace, while ETFs continue to gain new money. What do investors need to know the exact magnitude of those tax savings?
Investors have poured a lot of money into bond ETFs and money market funds this year as continued market turmoil pushed them away from riskier assets. What types of bonds deliver the best returns?
Many retail investors began trading options to gamble on hot stocks during the pandemic. The boom in options trading shows no signs of slowing down, but recent studies have found that ordinary investors lost billions of dollars in these trades.
Dr. Horstmeyer and his team studied options for the most heavily traded stocks and ETFs like the SPDR S&P 500 ETF SPY, the Invesco QQQ Trust QQQ, Tesla TSLA, Apple AAPL and NVDIA NVDA, and found that trading costs are quite steep.
We also discuss ETF trading practices and whether investors can use a market-valuation strategy to time the market?
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): 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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Dr. Horstmeyer and his team studied options for the most heavily traded stocks and ETFs like the SPDR S&P 500 ETF SPY, the Invesco QQQ Trust QQQ, Tesla TSLA, Apple AAPL and NVDIA NVDA, and found that trading costs are quite steep. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports To read this article on Zacks.com click here. Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Dr. Derek Horstmeyer, Professor of Finance at George Mason University, and a regular contributor to the Wall Street Journal.
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Dr. Horstmeyer and his team studied options for the most heavily traded stocks and ETFs like the SPDR S&P 500 ETF SPY, the Invesco QQQ Trust QQQ, Tesla TSLA, Apple AAPL and NVDIA NVDA, and found that trading costs are quite steep. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports To read this article on Zacks.com click here. Investors have poured a lot of money into bond ETFs and money market funds this year as continued market turmoil pushed them away from riskier assets.
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Dr. Horstmeyer and his team studied options for the most heavily traded stocks and ETFs like the SPDR S&P 500 ETF SPY, the Invesco QQQ Trust QQQ, Tesla TSLA, Apple AAPL and NVDIA NVDA, and found that trading costs are quite steep. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports To read this article on Zacks.com click here. Investors have poured a lot of money into bond ETFs and money market funds this year as continued market turmoil pushed them away from riskier assets.
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Dr. Horstmeyer and his team studied options for the most heavily traded stocks and ETFs like the SPDR S&P 500 ETF SPY, the Invesco QQQ Trust QQQ, Tesla TSLA, Apple AAPL and NVDIA NVDA, and found that trading costs are quite steep. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports To read this article on Zacks.com click here. (14:15) - Can You Time The Market Based On Valuation Analysis?
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2023-04-27 00:00:00 UTC
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VettaFi’s Nadig Talks Price, Bifurcated Tech on Yahoo
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AAPL
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https://www.nasdaq.com/articles/vettafis-nadig-talks-price-bifurcated-tech-on-yahoo
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nan
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nan
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Despite much hand-wringing about a potential recession this year, the market has yet to show the kind of contraction or slowdown that would suggest a recession is imminent, even with a disappointing 1.1 annual growth rate for the first quarter. Understanding that split requires taking a look at a bifurcated tech sector and how firms are pushing price hikes, according to VettaFi’s Dave Nadig, who joined Yahoo Finance’s "ETF Report" program on Monday.
Per Nadig, consumers are partially responsible for the bifurcated market, with the tech names that have been successful being those that rely on consumer support. The likes of Microsoft (MSFT), Apple (AAPL), and Meta (META) have seen all the action and are consumer tech plays “of a sort,” Nadig explained, as opposed to the big tech spends on areas like capital expenditures.
“We recently identified -- picked up a company called LOGICLY, which lets us dig down into portfolios of ETFs and figure out what's driving their returns,” Nadig said. “The biggest winner this year has been QUAL, which is the iShares MSCI USA Quality Factor ETF. When you look at what it holds and what's driving the pattern of returns in it, it's communication services, technology companies -- it's better picks in the consumer discretionary space.”
See more: “Fintech SigmaLogic, Known for Its LOGICLY Platform, Is Now Part of VettaFi’s Suite of Data and Analytics Offerings”
QUAL, Nadig explained, has actually managed to beat the S&P 500 by about 1.5% year-to-date, as well. Responding to a question about the role AI has played and will continue to play in the bifurcated tech story, Nadig underlined its potential to be a force multiplier in non-tech sectors.
“It's going to allow businesses to really change how they do business in a positive way. It speeds up time to market. It speeds up product development and makes marketing better and more targeted. There are real use cases here that are driving real flows,” he said.
Meanwhile, in those other sectors, markets have seen staples and consumer discretionary switch places between this year and last, with some notable price-related action taking place therein. The switch between the two has helped evince the price over volume narrative that is helping to explain how the consumer side of the economy is remaining more resilient.
“Discretionary really took it on the chin, that's flipped around a bit. Staples is actually dragging down the S&P so far this year, and discretionary is really leading,” Nadig said.
“But even saying that if you look inside the staples earnings report, we see a consistent theme of price over volume, meaning everything from Tootsie Roll (TR) to Kimberly Clark (KMB) to Pepsi (PEP) seems to be able to pass not only their increased costs on the consumers, but to juice their margins along the way,” he added. “We've seen no evidence yet that the average consumer is pulling back their spending just because prices are up.”
Those investors who want to play that robust consumer spending as well as so-called “safety plays” that are still in equity, Nadig said, may want to look to strategies like QUAL as well as the JP Morgan Equity Premium Income Fund (JEPI). Despite concerns about a credit-related crunch for firms in a recession, the core S&P 500 firms can still do pretty well despite that thanks to robust consumer spending, Nadig concluded.
For more news, information, and analysis, visit VettaFi | ETF Trends.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The likes of Microsoft (MSFT), Apple (AAPL), and Meta (META) have seen all the action and are consumer tech plays “of a sort,” Nadig explained, as opposed to the big tech spends on areas like capital expenditures. Understanding that split requires taking a look at a bifurcated tech sector and how firms are pushing price hikes, according to VettaFi’s Dave Nadig, who joined Yahoo Finance’s "ETF Report" program on Monday. When you look at what it holds and what's driving the pattern of returns in it, it's communication services, technology companies -- it's better picks in the consumer discretionary space.” See more: “Fintech SigmaLogic, Known for Its LOGICLY Platform, Is Now Part of VettaFi’s Suite of Data and Analytics Offerings” QUAL, Nadig explained, has actually managed to beat the S&P 500 by about 1.5% year-to-date, as well.
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The likes of Microsoft (MSFT), Apple (AAPL), and Meta (META) have seen all the action and are consumer tech plays “of a sort,” Nadig explained, as opposed to the big tech spends on areas like capital expenditures. Meanwhile, in those other sectors, markets have seen staples and consumer discretionary switch places between this year and last, with some notable price-related action taking place therein. Despite concerns about a credit-related crunch for firms in a recession, the core S&P 500 firms can still do pretty well despite that thanks to robust consumer spending, Nadig concluded.
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The likes of Microsoft (MSFT), Apple (AAPL), and Meta (META) have seen all the action and are consumer tech plays “of a sort,” Nadig explained, as opposed to the big tech spends on areas like capital expenditures. Per Nadig, consumers are partially responsible for the bifurcated market, with the tech names that have been successful being those that rely on consumer support. When you look at what it holds and what's driving the pattern of returns in it, it's communication services, technology companies -- it's better picks in the consumer discretionary space.” See more: “Fintech SigmaLogic, Known for Its LOGICLY Platform, Is Now Part of VettaFi’s Suite of Data and Analytics Offerings” QUAL, Nadig explained, has actually managed to beat the S&P 500 by about 1.5% year-to-date, as well.
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The likes of Microsoft (MSFT), Apple (AAPL), and Meta (META) have seen all the action and are consumer tech plays “of a sort,” Nadig explained, as opposed to the big tech spends on areas like capital expenditures. Responding to a question about the role AI has played and will continue to play in the bifurcated tech story, Nadig underlined its potential to be a force multiplier in non-tech sectors. Staples is actually dragging down the S&P so far this year, and discretionary is really leading,” Nadig said.
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16149.0
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2023-04-27 00:00:00 UTC
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As U.S. megacaps soar, some investors are wary of rising valuations
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AAPL
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https://www.nasdaq.com/articles/as-u.s.-megacaps-soar-some-investors-are-wary-of-rising-valuations
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nan
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nan
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By Lewis Krauskopf
NEW YORK, April 27 (Reuters) - Some market participants are warning that the U.S. market's biggest tech and growth stocks may be getting too expensive, even as better-than-expected earnings reports stand to further boost their appeal.
The Nasdaq 100 .NDX has rallied 19% this year, while four stocks that alone have a 40% weight in the index - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O and Amazon AMZN.O - have posted an average gain of about 27%. That compares to a roughly 7% rise for the S&P 500 .SPX.
Those gains have ramped up valuations: the price-to-earnings gap between the Nasdaq 100 and the S&P 500 recently hit its widest since early 2022, with the Nasdaq 100 trading at a P/E of 24.5 times versus 18.4 times for the S&P 500.
Valuations look even more expensive relative to history, given that interest rates were at rock-bottom levels during most of the past decade but soared last year as the Federal Reserve hiked rates to fight inflation. Tech and other high-growth companies generally are expected to bring in bigger profits in the future, but those projected cash flows are worth less in current dollars when interest rates rise.
“I am not sure that from a long-term perspective (buying tech stocks) is the appropriate decision,” said Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest Wealth Management.
Nolte is underweight the tech sector, partially due to concerns about valuations and the expectation that the Fed will keep rates high to fight inflation.
Microsoft, Alphabet and Facebook parent Meta PlatformsMETA.O have reported better-than-expected earnings this week. Amazon will report after the close on Thursday, while Apple is due next week.
The better-than-expected financial numbers have helped justify the sharp rebound in megacap shares this year after a rough 2022. The rally has been driven in part by investors betting the companies’ strong business models would see them through an increasingly shaky economic environment.
Others, however, are more skeptical.
“It is an interesting market when a $2.2 trillion company with low to mid-single digit growth is awarded a multiple in excess of 30x earnings,” wrote Michael O’Rourke of Jones Trading on Wednesday’s rally in Microsoft shares, which rose 7.2% after their results beating revenue and profit estimates.
Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, noted Meta Platforms saw “significant year-over-year declines in earnings per share.”
Shares of Meta were up 15% on Thursday and have roughly doubled year-to-date.
“It's tough to be impressed by companies exceeding already beaten down earnings estimates,” he wrote. “We would not be buyers of big tech stocks, which are extremely overvalued.”
Analysts at UBS Global Wealth Management, meanwhile, said gains in megacap stocks - which are heavily weighted in the S&P 500 - are unlikely to continue sustaining the broader index, noting that the current valuation for the S&P 500 has historically been maintained when earnings expectations were rosier and bond yields were lower.
Of course, concerns regarding tech stocks have been prevalent for months, yet have not stopped investors from piling into what fund managers in a BofA survey named as the markets most crowded trade.
King Lip, chief strategist at BakerAvenue Wealth Management, believes the stocks can rally further, if concerns over economic growth intensify in coming months.
“I do think even in a challenging environment, which likely we are going to be going into, that people are going to look at the megacaps as a place ... to play defense,” he said.
Valuations of Nasdaq 100 and S&P 500https://tmsnrt.rs/3HlQP8B
ANALYSIS-Bearish fundamentals, buoyant charts complicate outlook for US stocks
ANALYSIS-Debt ceiling worries bubble up in US stock options market
ANALYSIS-Banking crisis scars struggling U.S. real estate stocks
ANALYSIS-Gloomy U.S. bank sector could yield payoff for contrarian options bets
ANALYSIS-Heroes or villains: Short sellers' role in the U.S. bank crisis
ANALYSIS-Investors seek value in clobbered U.S. regional bank shares
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Nick Zieminski)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq 100 .NDX has rallied 19% this year, while four stocks that alone have a 40% weight in the index - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O and Amazon AMZN.O - have posted an average gain of about 27%. Tech and other high-growth companies generally are expected to bring in bigger profits in the future, but those projected cash flows are worth less in current dollars when interest rates rise. “It is an interesting market when a $2.2 trillion company with low to mid-single digit growth is awarded a multiple in excess of 30x earnings,” wrote Michael O’Rourke of Jones Trading on Wednesday’s rally in Microsoft shares, which rose 7.2% after their results beating revenue and profit estimates.
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The Nasdaq 100 .NDX has rallied 19% this year, while four stocks that alone have a 40% weight in the index - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O and Amazon AMZN.O - have posted an average gain of about 27%. Microsoft, Alphabet and Facebook parent Meta PlatformsMETA.O have reported better-than-expected earnings this week. Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, noted Meta Platforms saw “significant year-over-year declines in earnings per share.” Shares of Meta were up 15% on Thursday and have roughly doubled year-to-date.
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The Nasdaq 100 .NDX has rallied 19% this year, while four stocks that alone have a 40% weight in the index - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O and Amazon AMZN.O - have posted an average gain of about 27%. By Lewis Krauskopf NEW YORK, April 27 (Reuters) - Some market participants are warning that the U.S. market's biggest tech and growth stocks may be getting too expensive, even as better-than-expected earnings reports stand to further boost their appeal. “We would not be buyers of big tech stocks, which are extremely overvalued.” Analysts at UBS Global Wealth Management, meanwhile, said gains in megacap stocks - which are heavily weighted in the S&P 500 - are unlikely to continue sustaining the broader index, noting that the current valuation for the S&P 500 has historically been maintained when earnings expectations were rosier and bond yields were lower.
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The Nasdaq 100 .NDX has rallied 19% this year, while four stocks that alone have a 40% weight in the index - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O and Amazon AMZN.O - have posted an average gain of about 27%. Microsoft, Alphabet and Facebook parent Meta PlatformsMETA.O have reported better-than-expected earnings this week. King Lip, chief strategist at BakerAvenue Wealth Management, believes the stocks can rally further, if concerns over economic growth intensify in coming months.
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16150.0
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2023-04-27 00:00:00 UTC
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3 Stocks to Buy for Investors Looking for Flight to Safety
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-investors-looking-for-flight-to-safety
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recession fears and mixed earnings have brought a lot of uncertainty in the stock market right now. While inflation is cooling, there are looming concerns of a recession due to several geopolitical conflicts, and banking crises. However, not all is lost. This is a time to consider stocks that can bring stability to your portfolio. Safe stocks with defensive and recession-proof qualities are where you should consider putting your funds.
Here are the three safe stocks to buy in 2023 for investors who are looking for a flight to safety. These stocks will generate consistent dividends and also offer capital appreciation.
Coca-Cola (KO)
Source: Jonathan Weiss / Shutterstock
First on my list is Coca-Cola (NYSE:KO). One of the most safe stocks with strong fundamentals and dividends available today, KO stock is also a favorite of Warren Buffett. It is one stock you can buy and forget. Its brand has delivered massive value over the years and holds a dominant market position. Coca-Cola is already established in the market as one of the solid stock return generators and it is a cash-flow machine. It is one of the safe stocks to buy in 2023, trading at $63 today and could soon hit a new all-time high.
Coca-Cola recently reported earnings and beat expectations. The revenue hit $10.96 billion and EPS came in at 68 cents. Net sales increased to $10.98 billion and organic sales increased by 12%. The management hiked prices due to inflation and enjoyed higher growth due to higher demand. Analysts are bullish on the stock after the strong quarterly results. RBC Capital analyst Nik Modi has an “outperform” rating on the stock with a price target of $69. Evercore ISI analyst Robert Ottenstein also raised the price target to $70 and maintained an Outperform rating after what the firm calls an “encouraging and confident start to 2023.”
It is one of the best safe stocks for risk-averse investors that will thrive, no matter the market conditions. The company has gone out of its way to return large portions of the cash flow to investors in the form of dividends and buybacks which is why it is known as a dividend aristocrat. KO stock has a dividend yield of 2.8% and the future outlook remains strong.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) is a dinosaur when it comes to the tech space. The company has a solid reputation in the industry and an impressive portfolio of businesses that not only bring stability to the current environment but also make MSFT stock one of the safe stocks to buy in 2023 and hold forever. The company has a diversified business that continues to generate revenue, no matter the market conditions. Right from Office365 to its search engine Bing, there is a lot to look forward to when it comes to Microsoft’s business.
Its cloud segment, Azure is making big moves and offers an ideal option for businesses to do more at a lower cost. One of the safe stocks with low volatility and high stability, MSFT stock is trading at $275 today and is up 14% year to date. The stock hasn’t gone below $214 in the past year and has generated 187% returns in the past five years. That said, the company enjoys a dividend yield of 0.99% and recently announced a dividend of $0.68.
The tech giant is sitting on strong financials which makes it possible for strategic investments in AI. Microsoft recently reported quarterly results and beat estimates. It surpassed expectations on top and bottom lines and reported an EPS of $2.45 per share. Its profit grew 9% to $18.3 billion and the revenue increased by 7% to $52.9 billion. The company has had a great start to the year driven by cloud computing and artificial intelligence segments. The long-term outlook is incredibly bright for the computing giant and I believe this is the stock to buy and hold for decades.
Apple (AAPL)
A household name and a tech giant, Apple (NASDAQ:AAPL) is certainly one of the top stocks to buy if you are looking for a flight to safety. The company held up well even during the massive tech selloff last year. AAPL stock changes hands today at $163, much lower than the all-time high of $183. The iPhone maker has made a strong comeback since the beginning of the year and is inching closer to its all-time high. It remains one of the top blue-chip stocks to own and hold.
One solid reason to bet on Apple is its technology innovation. The company is constantly working to bring new products and services to the market and holds a loyal customer base. If someone is using an iPhone, they rarely would be willing to switch to a different phone maker and the loyal customer base benefits the company. With a market cap of $2.65 trillion, AAPL stock has gained 34% since the beginning of 2023. It is the brand that sells and is a powerhouse that constantly introduces new models that attract consumers and grow revenue. Its products are highly addictive and compelling for anyone to ignore.
Fundamentally, Apple has a strong balance sheet that shows double-digit revenue growth. It is showing strong growth in the services unit and I believe the momentum will continue throughout the year. No matter how the market turns from here, Apple stock is a great and very safe addition to your portfolio. The company is set to report second-quarter results on May 4.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
The post 3 Stocks to Buy for Investors Looking for Flight to Safety 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) A household name and a tech giant, Apple (NASDAQ:AAPL) is certainly one of the top stocks to buy if you are looking for a flight to safety. AAPL stock changes hands today at $163, much lower than the all-time high of $183. With a market cap of $2.65 trillion, AAPL stock has gained 34% since the beginning of 2023.
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Apple (AAPL) A household name and a tech giant, Apple (NASDAQ:AAPL) is certainly one of the top stocks to buy if you are looking for a flight to safety. AAPL stock changes hands today at $163, much lower than the all-time high of $183. With a market cap of $2.65 trillion, AAPL stock has gained 34% since the beginning of 2023.
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Apple (AAPL) A household name and a tech giant, Apple (NASDAQ:AAPL) is certainly one of the top stocks to buy if you are looking for a flight to safety. AAPL stock changes hands today at $163, much lower than the all-time high of $183. With a market cap of $2.65 trillion, AAPL stock has gained 34% since the beginning of 2023.
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Apple (AAPL) A household name and a tech giant, Apple (NASDAQ:AAPL) is certainly one of the top stocks to buy if you are looking for a flight to safety. AAPL stock changes hands today at $163, much lower than the all-time high of $183. With a market cap of $2.65 trillion, AAPL stock has gained 34% since the beginning of 2023.
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16151.0
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2023-04-27 00:00:00 UTC
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Taiwan Semiconductor Manufacturing Will Keep Spending on Equipment, but Is the Stock A Buy Now?
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AAPL
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https://www.nasdaq.com/articles/taiwan-semiconductor-manufacturing-will-keep-spending-on-equipment-but-is-the-stock-a-buy
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nan
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nan
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Shares of the world's largest advanced semiconductor manufacturer, Taiwan Semiconductor Manufacturing (NYSE: TSM), have been back on the wane in recent months. TSMC stock got hot with the rest of the chip stock universe starting in autumn 2022 (as measured by the iShares Semiconductor ETF), but a current downturn in the semiconductor market and a lackluster quarterly earnings report from TSMC has sent the share price back down recently.
Data by YCharts.
In spite of troubles, though, TSMC has said it will continue spending lots of money on new chip manufacturing equipment. That looks like a green light for investors in chip fab equipment stocks, as TSMC gears up for lots of new chip demand in the years ahead. But does it make TSMC stock a buy now?
Mixed signals for investors in Taiwan's most important company
Some 90% of all of the world's most advanced semiconductors (think chips powering high-end smartphones like the Apple iPhone, to artificial intelligence chips from Nvidia) are made by Taiwan Semiconductor Manufacturing. Indeed, the advancement of technology itself relies on ever more powerful computing, so it's a bit of an understatement to say that TSMC controls a critical choke point in the global economy.
This incredible position is what has led many investors to drop some serious coin on TSMC stock. Even Warren Buffett's Berkshire Hathaway, noted for its historical aversion to high tech, made a (brief) sizable investment in TSMC in 2022.
However, there are reasons to be wary of investing in this top chipmaker. Perhaps most notably is the threat of China invading Taiwan as it pursues its "One China" policy to reunify the island with mainland China. I'm not a political commentator, but there's constant bluster surrounding this issue that leads many to believe a Chinese invasion of Taiwan is a real possibility within the next decade. Suffice to say that would be disastrous for TSMC -- and the world.
This particular geopolitical risk was apparently just one reason Buffett and company quickly reversed course and sold most of their position in TSMC late in 2022.
For now, though, let's focus on numbers to inform an investment decision.
As expected, TSMC reported a slight year-over-year dip in revenue and earnings per share (down 5% and 6%, respectively) during the first quarter of 2023. Some of this was due to lower shipments of silicon wafers (given the slump in chip demand, driven by lower PC and smartphone sales), as well as negative currency exchange rate effects from a strong U.S. dollar.
But the real metric many investors were eyeing was TSMC's capital expenditures (or capex, spending on property, plant, and equipment) for 2023. Capex plans for 2023 remain unchanged from previous guidance, expected to be in a range of $32 billion to $36 billion, down from $36.7 billion in 2022. This contradicts recent media reports that claimed TSMC was going to slash its capex budget in response to the chip downturn. It also reinforces TSMC's confidence that customer demand will pick up pace the second half of this year and into 2024.
Implications for the chip industry
A wealth of data can be gleaned from TSMC's simple statement that its capex plans remain unchanged despite a nasty looking global economy for 2023.
First, the roadmap for technological advancement isn't taking any detours, owing to the fact that computing technology relies so heavily on the latest and greatest chips made by TSMC.
Second, chipmakers see so much demand beyond any economic weakness in 2023 that they're willing to keep spending heavily to boost their production and manufacturing technology prowess now.
And third, it's full steam ahead for the chip manufacturing industry, since TSMC's leadership -- and willingness to spend heavily to defend that leadership -- will keep pressure on other leading chip manufacturers like Samsung and Intel to keep spending heavily as well.
In other words, TSMC is still the leader in chipmaking, and has the money to sustain that leadership.
Is TSMC the best chip manufacturing stock to buy now?
Given TSMC's rosy outlook beyond the present market slump, shares look like a steal at just 13 times trailing 12-month earnings per share, or 25 times free cash flow. But is the stock a buy now?
That third point above is why I prefer chip fab equipment stocks over the manufacturers. Companies like TSMC make the chips, but they can only do so thanks to incredibly complex pieces of machinery purchased from chip fab equipment businesses. The five largest in this semiconductor sub-industry are ASML (NASDAQ: ASML), Applied Materials (NASDAQ: AMAT), Lam Research, Tokyo Electron, and KLA.
According to industry association SEMI, there's a downturn in revenue brewing for these businesses in 2023 as chip manufacturers manage their spend on equipment (a primary driver of that capex for TSMC). However, TSMC's capex outlook for 2023 remaining unchanged is great news for ASML, Applied Materials, and others. 2023 might be a bumpy year, but hundreds of billions of dollars worth of new chipmaking equipment will be needed in the near future.
Whether it's TSMC, Samsung, Intel, or someone else, all chip fabs need to place orders with ASML, Applied Materials, and friends. And if a Taiwan invasion worries you, any disruption to the island means chip manufacturing operations will need to be shifted elsewhere (an endeavor that's already underway). That means even more new fab equipment will be needed.
In other words, chip fab equipment makers are in a position of control when it comes to development of semiconductors. TSMC's first-quarter 2023 earnings report didn't offer much reason for the stock to command a higher valuation, especially considering geopolitical risks for Taiwan. I remain on hold with TSMC stock. Rather, I believe it gave the green light to buy chip equipment stocks like Applied Materials for this year and beyond, as TSMC will be highly reliant on those suppliers for its future success.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 24, 2023
Nicholas Rossolillo and his clients have positions in ASML, Apple, Applied Materials, Berkshire Hathaway, and Nvidia. The Motley Fool has positions in and recommends ASML, Apple, Applied Materials, Berkshire Hathaway, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to industry association SEMI, there's a downturn in revenue brewing for these businesses in 2023 as chip manufacturers manage their spend on equipment (a primary driver of that capex for TSMC). Rather, I believe it gave the green light to buy chip equipment stocks like Applied Materials for this year and beyond, as TSMC will be highly reliant on those suppliers for its future success. The Motley Fool has positions in and recommends ASML, Apple, Applied Materials, Berkshire Hathaway, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing.
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Shares of the world's largest advanced semiconductor manufacturer, Taiwan Semiconductor Manufacturing (NYSE: TSM), have been back on the wane in recent months. The Motley Fool has positions in and recommends ASML, Apple, Applied Materials, Berkshire Hathaway, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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TSMC stock got hot with the rest of the chip stock universe starting in autumn 2022 (as measured by the iShares Semiconductor ETF), but a current downturn in the semiconductor market and a lackluster quarterly earnings report from TSMC has sent the share price back down recently. That looks like a green light for investors in chip fab equipment stocks, as TSMC gears up for lots of new chip demand in the years ahead. And third, it's full steam ahead for the chip manufacturing industry, since TSMC's leadership -- and willingness to spend heavily to defend that leadership -- will keep pressure on other leading chip manufacturers like Samsung and Intel to keep spending heavily as well.
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That looks like a green light for investors in chip fab equipment stocks, as TSMC gears up for lots of new chip demand in the years ahead. Is TSMC the best chip manufacturing stock to buy now? The Motley Fool has positions in and recommends ASML, Apple, Applied Materials, Berkshire Hathaway, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing.
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16152.0
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2023-04-27 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-26
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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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16153.0
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2023-04-27 00:00:00 UTC
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1 Company That Could Be Worth $1 Trillion by 2033
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AAPL
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https://www.nasdaq.com/articles/1-company-that-could-be-worth-%241-trillion-by-2033
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nan
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nan
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There are only five companies in the $1 trillion market cap club as of this writing, making it one of the most exclusive on the planet. Market cap is something that changes all the time and can drastically shift in a short period. However, most stocks will experience large movement over time as their stock prices move.
For a stock to be worth $1 trillion 10 years from now, it will either be a high-growth stock or already be worth several hundred-billion dollars today. One stock in the latter category that seems a likely candidate is financial powerhouse Visa (NYSE: V). It's already almost half-way there.
Why Visa is a no-brainer for growth
Visa has developed an almost impenetrable network for credit card processing. Although there are other big names in the business that have carved out their own niche in the industry, notably Mastercard and American Express, it's not likely that either of these could displace Visa as the biggest.
Incidentally, shares of all three of these are owned by Warren Buffett, which says a lot about his opinion of this kind of business. Visa and its peers operate in an industry that has a simple recurring-revenue model and straightforward growth opportunities as well as high profit margins.
Visa itself has a moat based on its size, bank partnerships, merchant network of more than 80 million businesses, and commitment to innovation.
It powers 4.1 billion cards globally and processed more than $14 trillion in trailing-12-month payment volume, making it the largest player in the industry. It was an early adopter, and creator, of digital payments technology, and it sits comfortably both as a blue-chip financial company and a fresh fintech.
Investors love Visa because it grows along with the economy. When the economy is in good shape, shoppers spend more, and Visa benefits. That happens most of the time.
Is Visa facing any challenges?
The flip side is that Visa can suffer when the economy worsens. It had wide declines at the beginning of the pandemic despite customer spending on essentials and e-commerce. However, not only has it recovered, it has also continued to post robust performance even as inflation has hurt spending. Revenue increased 11% in its fiscal 2023 second quarter (ended March 31), and earnings per share increased a whopping 20%.
It could also face challenges from emerging payments technologies. As services such as Apple's Apple Pay rise in usage, there's the potential that disruptors could step into Visa's territory. This seems very unlikely right now, though, because Visa typically partners with most of the same companies and fuels their technology.
In fact, new Chief Executive Officer Ryan McInerney, who took the reins in February, attributed Visa's phenomenal second-quarter performance to the "continued focus on our growth levers: consumer payments, new flows, and value-added services." Visa's wide moat covers its unbeatable consumer payments systems, and its new technology and partnerships create value-added services that bring in new business.
The road to $1 trillion is paved with credit card swipes
Visa has a market cap of about $475 billion. To reach $1 trillion by 2033, it has to slightly more than double over the next 10 years. Visa stock gained 465% during the past 10 years -- much more than a doubling -- so it's not hard to imagine that happening.
But let's take a more practical look at how that could play out. The stock trades at less than 32 times trailing-12-month earnings, which is a little lower than its 10-year average. Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. Since net income almost tripled over the past 10 years, it's not hard to envision it doubling by 2033.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
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Although there are other big names in the business that have carved out their own niche in the industry, notably Mastercard and American Express, it's not likely that either of these could displace Visa as the biggest. In fact, new Chief Executive Officer Ryan McInerney, who took the reins in February, attributed Visa's phenomenal second-quarter performance to the "continued focus on our growth levers: consumer payments, new flows, and value-added services." Visa's wide moat covers its unbeatable consumer payments systems, and its new technology and partnerships create value-added services that bring in new business.
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Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard.
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Why Visa is a no-brainer for growth Visa has developed an almost impenetrable network for credit card processing. 10 stocks we like better than Visa When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 21, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. See the 10 stocks *Stock Advisor returns as of April 21, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa.
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16154.0
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2023-04-27 00:00:00 UTC
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Goldman Sachs Is Taking its Medicine. That's Good News for Shareholders.
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https://www.nasdaq.com/articles/goldman-sachs-is-taking-its-medicine.-thats-good-news-for-shareholders.
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After seeing its consumer banking efforts struggle immensely in recent years, the investment banking powerhouse Goldman Sachs (NYSE: GS) announced at its investor day in February that it would pull back from its consumer banking ambitions, which it launched in 2016.
The unit lost billions in recent years with its high expenses, and many shareholders do not appear to have been on board from the get-go. However, at investor day it was somewhat unclear how long it would take Goldman to wind down its consumer banking efforts considering the current environment.
But in its first-quarter earnings report, it is now much more clear that management is taking its medicine and moving to wind down most of the business sooner rather than later. That's good news for shareholders. Here's why.
Image source: Getty Images.
What actions did Goldman take in the quarter?
In the first quarter, Goldman sold about $1 billion of the $4.5 billion loan portfolio associated with its Marcus digital banking platform. Goldman also designated the rest of the Marcus loans as held for sale and marked the remaining loans to market. Both of these actions resulted in a $470 million loss in Goldman's private banking and lending division. However, this loss was mostly offset by Goldman releasing $440 million previously set aside for loan losses in the portfolio.
Goldman also announced that it has now begun the process of exploring a sale of its point-of-sale lending platform GreenSky, which the firm purchased in 2021 for $2.2 billion.
At investor day, executives at Goldman discussed exploring strategic alternatives for GreenSky, but it was unclear how long the process might take. While it's still a question of how quickly Goldman can offload GreenSky, I do think it's good news to see the company firmly say it is exploring a sale. At investor day, executives spent ample time discussing when they could get GreenSky to break-even profitability, which I think confused some analysts and investors.
Goldman does, however, seem to be sticking with its deposit and credit card platform businesses. The bank was already the banking partner for the consumer giant Apple (NASDAQ: AAPL), and helped the company launch a credit card. More recently, Goldman launched a savings account product for Apple card users that offers an annual percentage yield of 4.15%.
Goldman's CEO David Solomon said that the bank continues to focus on the deposit and credit card platforms, and that management sees "opportunities for us to do other interesting things strategically," but the goal right now is to get the card platform to profitability.
Why this is good news for shareholders
For one, it makes the strategic direction of the bank clearer, which may help regain the confidence of investors that were never on board with the idea in the first place. While the consumer business was supposed to add durability to the bank's earnings, it didn't really work out. Now it's time for the bank to wash its hands of the business, or at least most of it. The sooner the bank can sell GreenSky the better.
Additionally, Goldman supports the platform solutions business with roughly $3.9 billion of average common equity, so selling the loans and GreenSky could free up some significant capital.
We know Goldman has spoken about doing accelerated share repurchases, and the bank did buy back $2.5 billion of its own stock in the first quarter. Goldman also wants to continue to grow its dividend, and there may be opportunities to make acquisitions to support asset and wealth management.
Goldman expects share repurchases to moderate in the current quarter from the first quarter. But management is still focused on accelerating buyback activity, so freeing up capital from the platform business will further support this vision, which of course would be great for shareholders.
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The bank was already the banking partner for the consumer giant Apple (NASDAQ: AAPL), and helped the company launch a credit card. More recently, Goldman launched a savings account product for Apple card users that offers an annual percentage yield of 4.15%. Why this is good news for shareholders For one, it makes the strategic direction of the bank clearer, which may help regain the confidence of investors that were never on board with the idea in the first place.
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The bank was already the banking partner for the consumer giant Apple (NASDAQ: AAPL), and helped the company launch a credit card. After seeing its consumer banking efforts struggle immensely in recent years, the investment banking powerhouse Goldman Sachs (NYSE: GS) announced at its investor day in February that it would pull back from its consumer banking ambitions, which it launched in 2016. At investor day, executives at Goldman discussed exploring strategic alternatives for GreenSky, but it was unclear how long the process might take.
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The bank was already the banking partner for the consumer giant Apple (NASDAQ: AAPL), and helped the company launch a credit card. After seeing its consumer banking efforts struggle immensely in recent years, the investment banking powerhouse Goldman Sachs (NYSE: GS) announced at its investor day in February that it would pull back from its consumer banking ambitions, which it launched in 2016. Goldman's CEO David Solomon said that the bank continues to focus on the deposit and credit card platforms, and that management sees "opportunities for us to do other interesting things strategically," but the goal right now is to get the card platform to profitability.
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The bank was already the banking partner for the consumer giant Apple (NASDAQ: AAPL), and helped the company launch a credit card. In the first quarter, Goldman sold about $1 billion of the $4.5 billion loan portfolio associated with its Marcus digital banking platform. We know Goldman has spoken about doing accelerated share repurchases, and the bank did buy back $2.5 billion of its own stock in the first quarter.
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16155.0
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2023-04-27 00:00:00 UTC
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3 Foundational Warren Buffett Dividend Stocks That Are No-Brainer Buys Now
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https://www.nasdaq.com/articles/3-foundational-warren-buffett-dividend-stocks-that-are-no-brainer-buys-now
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Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has produced outsized gains over the course of its nearly 60-year history. 2022 marked Berkshire's best year relative to the stock market since 2007 -- which cast a spotlight on the Oracle of Omaha's investing strategies.
Buffett and his team don't try to beat the stock market in a given quarter or year. Rather, they focus on investing in quality businesses that have the industry leadership, management, and business strategy that can be sustained for decades to come. Top Buffett stocks tend to be companies that are very good at making money and navigating challenges, which tend to perform better during a period of slowing economic growth.
Here's why United Parcel Service (NYSE: UPS), Chevron (NYSE: CVX), and Apple (NASDAQ: AAPL) are three Buffett stocks worth considering now.
Image source: Getty Images.
UPS has the makings of a long-term holding
Daniel Foelber (UPS): This week, UPS stock suffered its largest single-session drop in over three years after the package delivery company posted weaker-than-expected first-quarter 2023 results and revised its guidance.
UPS is now forecasting 2023 revenue of just $97 billion, an adjusted operating margin of 12.8%, and dividend payments of $5.4 billion. The forecast would mark an end to UPS' torrid revenue-growth rate and margin expansion, which included 2022 revenue above $100 billion and an operating margin above 13% -- both 10-year highs.
UPS Revenue (Annual) data by YCharts.
Dividend payments of $5.4 billion would be an all-time high for UPS and indicates the company values returning capital to shareholders. But a small dividend raise is too thin of a silver lining to combat the storm clouds on the horizon. "Over the first quarter of 2023, the global volume environment deteriorated due to challenging macro conditions and changes in consumer behavior," said UPS in its Q1 2023 earnings press release. "As a result, UPS expects full-year revenue and adjusted operating margin to be at the low end of its previously guided range."
Despite its short-term challenges, UPS has the makings of a long-term core holding. Buffett and his team have long stressed the importance of a good management team. And UPS has this in spades. CEO Carol Tomé has the qualities that make a great leader. She focuses on the long-term growth drivers of UPS without losing sight of the company's present performance. She also owns up to mistakes or challenges and holds her ground on earnings calls.
Probably Tomé's greatest achievement since taking over as CEO in March 2022 has been her focus on growing margins instead of revenue. In practice, that means focusing less on package-delivery volume and more on partnering with a variety of customers that require higher-margin services. UPS makes far more money on international deliveries, healthcare, big business customers, and small and medium-sized business than it does on residential deliveries. Differentiating itself in these categories instead of eking out a slight advantage over competitors on residential deliveries has proven to be the right direction for UPS.
Despite the stock's sell-off, UPS remains a long-term value due to its market position, strong leadership, and 3.7% forward dividend yield.
Apple has multiple growth opportunities
Lee Samaha (Apple): Warren Buffett is known for buying stocks with strong market positions, generating excellent cash flows, and with an opportunity to improve their return on assets. On all three counts, Apple fits the bill, and Buffett agrees because the consumer electronics company is Berkshire Hathaway's largest holding, representing around 40% of its holdings.
Apple has a nearly 57% share in the U.S. smartphone market and is also the largest player worldwide with a nearly 28% share of the worldwide smartphone market. It's a market position in an industry trending toward consolidation; Samsung and Xiaomi are the only other players with above 10% worldwide market share.
Meanwhile, Apple does a great job of converting revenue into free cash flow (FCF). Typically, more than a quarter of its revenue drops into FCF. Finally, the smartphone market is increasingly moving toward more value embedded in the services offerings -- another reason the significant players will continue to dominate.
Apple generates almost 20% of its revenue from services, but services are growing faster than product sales and comes with gross profit margins nearly double that of its product revenue.
As such, Apple's overall revenue could stand still, but provided that services grow faster than product growth, Apple should still improve profitability and return on assets.
It all adds up to make the electronics giant a top stock for investors looking to run offense out of Buffett's playbook.
Power your passive income with Chevron
Scott Levine (Chevron): Investing in the stock market can be scary. When volatility emerges, it can quickly rattle investors' nerves. But experienced investors know that having the resilience to withstand downturns is table stakes for building long-term wealth. Following the lead of successful investors, like Warren Buffett, can help steady the nerves of anxious investors, especially when picking up shares of dividend powerhouses like Chevron, which offers a forward yield of 3.5%.
An oil supermajor, Chevron occupies a prominent place -- the stake is valued at about $28.6 billion -- in Warren Buffett's portfolio. The Oracle of Omaha first bought Chevron's stock in the fourth quarter of 2020, and it now represents about 8.2% of the portfolio.
Buffett's enthusiasm for Chevron's stocks is unsurprising as it's one of the premier dividend opportunities among energy stocks. The stock has a distinguished history of raising its dividend in each of the past 36 years, and it's likely that it will continue to do so in the years to come. Management has articulated a dividend policy that includes raising the dividend over the next five years as long as the price of Brent Crude per barrel -- a benchmark oil price -- averages more than $50.
Valued at about 10.9 times forward earnings, shares of Chevron are currently sitting in the bargain bin considering the stock's five-year average forward-earnings multiple is 37.5. Unconvinced that the stock's price is attractive right now? Consider its price tag from a cash-flow perspective. Shares are changing hands today at about 6.7 times operating cash flow, representing a discount to their five-year average cash-flow multiple of 9.4.
10 stocks we like better than United Parcel Service
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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 and Berkshire Hathaway. The Motley Fool recommends United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here's why United Parcel Service (NYSE: UPS), Chevron (NYSE: CVX), and Apple (NASDAQ: AAPL) are three Buffett stocks worth considering now. "Over the first quarter of 2023, the global volume environment deteriorated due to challenging macro conditions and changes in consumer behavior," said UPS in its Q1 2023 earnings press release. Finally, the smartphone market is increasingly moving toward more value embedded in the services offerings -- another reason the significant players will continue to dominate.
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Here's why United Parcel Service (NYSE: UPS), Chevron (NYSE: CVX), and Apple (NASDAQ: AAPL) are three Buffett stocks worth considering now. Despite the stock's sell-off, UPS remains a long-term value due to its market position, strong leadership, and 3.7% forward dividend yield. Apple has multiple growth opportunities Lee Samaha (Apple): Warren Buffett is known for buying stocks with strong market positions, generating excellent cash flows, and with an opportunity to improve their return on assets.
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Here's why United Parcel Service (NYSE: UPS), Chevron (NYSE: CVX), and Apple (NASDAQ: AAPL) are three Buffett stocks worth considering now. UPS has the makings of a long-term holding Daniel Foelber (UPS): This week, UPS stock suffered its largest single-session drop in over three years after the package delivery company posted weaker-than-expected first-quarter 2023 results and revised its guidance. Apple has multiple growth opportunities Lee Samaha (Apple): Warren Buffett is known for buying stocks with strong market positions, generating excellent cash flows, and with an opportunity to improve their return on assets.
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Here's why United Parcel Service (NYSE: UPS), Chevron (NYSE: CVX), and Apple (NASDAQ: AAPL) are three Buffett stocks worth considering now. UPS has the makings of a long-term holding Daniel Foelber (UPS): This week, UPS stock suffered its largest single-session drop in over three years after the package delivery company posted weaker-than-expected first-quarter 2023 results and revised its guidance. Apple has multiple growth opportunities Lee Samaha (Apple): Warren Buffett is known for buying stocks with strong market positions, generating excellent cash flows, and with an opportunity to improve their return on assets.
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16156.0
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2023-04-27 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-5
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Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) track record of success in the investing world is virtually unparalleled. Since CEO Warren Buffett purchased a controlling stake in the company and became its leader in 1965, the investment conglomerate's share price has risen more than 2,768,000%. That means that if you owned and held a $1,000 equity position when the Oracle of Omaha bought the company, it would now be worth roughly $27.7 million.
Berkshire's current size and risk-averse approach to investing mean it's unlikely that the investment conglomerate will manage to match that outsized performance going forward for new investors with $1,000 available to put toward stock purchases. Still, Berkshire continues to grow at a healthy rate and it does happen to own shares in some forward-looking technology companies that could deliver big returns for long-term investors.
If you've got $1,000 available that you don't need to pay bills, bolster an emergency fund, or reduce short-term debts, you might want to put it toward the purchase of some Berkshire-backed stocks that actually could take your portfolio to the next level. Read on for a look at five Berkshire holdings that have the potential to crush the market.
Image source: Getty Images.
1. Apple
If you want to know what Buffett's favorite stock is, you don't have to read tea leaves or check horoscopes and planetary alignments. Berkshire's quarterly 13F portfolio disclosure filings show the obvious answer. Apple (NASDAQ: AAPL) stock is the investment conglomerate's largest holding, by far, and accounts for nearly 44% of its total stock holdings.
Speaking on the company's incredible brand strength and customer loyalty, Buffett recently said, "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it." Apple's dominance in the mobile hardware space has made it one of the world's most profitable companies, and it doesn't look like the tech titan is in any danger of losing its industry-leading position anytime soon.
While Apple's strengths have helped it hold up better than most other tech stocks, shares are still down roughly 9% from their high. Thanks to the company's mobile empire, an impressive software and services ecosystem, and untapped growth opportunities in categories including augmented reality and smart cars, the tech leader has clear avenues to continue beating the market.
2. Amazon
Amazon (NASDAQ: AMZN) spearheaded the growth of the e-commerce and cloud infrastructure services, and there's a very good chance that it will continue to be one of this century's strongest and most influential companies. While the tech giant's core e-commerce and cloud businesses have faced some macroeconomic headwinds over the last year, Amazon retains leadership positions in both categories, and these two business pillars still look poised for big growth over the long term.
Beyond e-commerce and cloud infrastructure services, Amazon also has massive growth opportunities in other categories. The company has already used advantages created by its online retail platform and data expertise to build the U.S.'s third-largest digital advertising business, and it has plenty of untapped expansion potential in the ads market. Amazon's recently announced Bedrock artificial intelligence (AI) service for building and scaling applications could also be a game changer, and it's likely that AI technologies will spur a wide range of improvements across various aspects of the overall business.
With its incredible breadth of competitive advantages and vast long-term growth potential still ahead, Amazon looks like a smart buy for long-term investors.
3. StoneCo
StoneCo (NASDAQ: STNE) is a Brazil-based fintech company that provides small and medium-sized businesses (SMBs) with payment processing services. It's also been a provider of loans for SMBs, but this part of the business has struggled due to challenges related to the coronavirus pandemic and a reliance on data that proved to be insufficient for assessing whether businesses were creditworthy.
StoneCo still carries roughly $79 million in bad debt in its loan portfolio, but the company still managed to grow sales by roughly 99% last year, and non-GAAP (adjusted) net income soared 520% in the period. Yet, despite the business growing at an impressive clip and being on track to cover the remaining debt in its portfolio, the company's share price remains down roughly 87.5% from its high.
STNE PE Ratio (Forward) data by YCharts
With the business growing rapidly, StoneCo looks cheaply valued trading at roughly 19 times this year's expected earnings and 1.6 times expected sales.
4. Nu
Like StoneCo, Nu (NYSE: NU) is a fintech company based in Brazil. The company provides digital banking services and also operates in Mexico and Columbia, and it's been growing at a rapid pace.
The company closed out last year with 74.6 million total customers, up 38.6% year over year, and sales and earnings have soared thanks to new customer additions and higher levels of engagement from those already using its services. Nu's sales surged 128% year over year in the fourth quarter, and net income surged to $113.8 million from $3.2 million in the prior-year period.
Due to macroeconomic pressures, the company's share price trades down roughly 58.5% from its high, and investors have an opportunity to buy the stock at levels that leave room for big upside. Nu is on track to benefit from exploding demand for digital banking services in Latin America, and it could deliver market-crushing returns for long-term shareholders.
5. Snowflake
Snowflake (NYSE: SNOW) is a leading provider of data warehousing and analytics tools. The company's Data Cloud platform makes it possible for businesses to combine and analyze information that comes from distinct cloud infrastructure services.
According to a survey conducted by S&P Global Intelligence, 98% of enterprise respondents said they either intended to use or were already using cloud infrastructure services from two different providers. Some 31% of respondents in the survey were already using four or more cloud infrastructure providers. The business world is already heavily dependent on multi-cloud setups, and Snowflake is positioned to play a key role in fostering the evolution of analytics, machine learning, artificial intelligence, and a wide range of other technologies and services.
Trading down 65% from its high, this Berkshire portfolio component looks like a worthwhile buy for growth-oriented investors.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has positions in StoneCo. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Snowflake, and StoneCo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) stock is the investment conglomerate's largest holding, by far, and accounts for nearly 44% of its total stock holdings. Thanks to the company's mobile empire, an impressive software and services ecosystem, and untapped growth opportunities in categories including augmented reality and smart cars, the tech leader has clear avenues to continue beating the market. The company has already used advantages created by its online retail platform and data expertise to build the U.S.'s third-largest digital advertising business, and it has plenty of untapped expansion potential in the ads market.
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Apple (NASDAQ: AAPL) stock is the investment conglomerate's largest holding, by far, and accounts for nearly 44% of its total stock holdings. StoneCo still carries roughly $79 million in bad debt in its loan portfolio, but the company still managed to grow sales by roughly 99% last year, and non-GAAP (adjusted) net income soared 520% in the period. STNE PE Ratio (Forward) data by YCharts With the business growing rapidly, StoneCo looks cheaply valued trading at roughly 19 times this year's expected earnings and 1.6 times expected sales.
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Apple (NASDAQ: AAPL) stock is the investment conglomerate's largest holding, by far, and accounts for nearly 44% of its total stock holdings. Amazon Amazon (NASDAQ: AMZN) spearheaded the growth of the e-commerce and cloud infrastructure services, and there's a very good chance that it will continue to be one of this century's strongest and most influential companies. StoneCo still carries roughly $79 million in bad debt in its loan portfolio, but the company still managed to grow sales by roughly 99% last year, and non-GAAP (adjusted) net income soared 520% in the period.
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Apple (NASDAQ: AAPL) stock is the investment conglomerate's largest holding, by far, and accounts for nearly 44% of its total stock holdings. Beyond e-commerce and cloud infrastructure services, Amazon also has massive growth opportunities in other categories. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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16157.0
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2023-04-27 00:00:00 UTC
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TMF, QGRW: Big ETF Inflows
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https://www.nasdaq.com/articles/tmf-qgrw%3A-big-etf-inflows
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 17,000,000 units, or a 10.2% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 100,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 1.5%, and Microsoft is higher by about 2.1%.
VIDEO: TMF, QGRW: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 100,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 1.5%, and Microsoft is higher by about 2.1%. VIDEO: TMF, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 17,000,000 units, or a 10.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 100,000 units, for a 40.0% increase in outstanding units. VIDEO: TMF, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 17,000,000 units, or a 10.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 100,000 units, for a 40.0% increase in outstanding units. VIDEO: TMF, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the DIREXION DAILY 20-YR TREASURY BULL 3X Shares, which added 17,000,000 units, or a 10.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 100,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 1.5%, and Microsoft is higher by about 2.1%.
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16158.0
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2023-04-27 00:00:00 UTC
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Analysts Estimate Apple (AAPL) to Report a Decline in Earnings: What to Look Out for
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AAPL
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https://www.nasdaq.com/articles/analysts-estimate-apple-aapl-to-report-a-decline-in-earnings%3A-what-to-look-out-for
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nan
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nan
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 4. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of iPhones, iPads and other products is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of -5.3%.
Revenues are expected to be $93.32 billion, down 4.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.94% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Apple?
For Apple, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.29%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Apple will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Apple would post earnings of $1.93 per share when it actually produced earnings of $1.88, delivering a surprise of -2.59%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Apple doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 4.
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16159.0
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2023-04-26 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $3,040.50K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%243040.50k
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nan
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nan
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On April 26, 2023 at 15:31:16 ET an unusually large $3,040.50K block of Call contracts in Apple (AAPL) was sold, with a strike price of $167.50 / share, expiring in 23 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.98 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6408 funds or institutions reporting positions in Apple. This is an increase of 189 owner(s) or 3.04% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. Total shares owned by institutions increased in the last three months by 0.12% to 10,139,399K shares.
The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 6.19% 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 6.19% from its latest reported closing price of $163.77.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is $413,641MM, an increase of 6.74%. The projected annual non-GAAP EPS is $6.36.
What are Other Shareholders Doing?
MAINSTAY VP FUNDS TRUST - MainStay VP T. Rowe Price Equity Income Portfolio Initial Class holds 144K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 150K shares, representing a decrease of 4.30%. The firm decreased its portfolio allocation in AAPL by 14.11% over the last quarter.
Benchmark Investment Advisors holds 51K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 52K shares, representing a decrease of 1.70%. The firm decreased its portfolio allocation in AAPL by 9.34% over the last quarter.
Lowery Thomas holds 2K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 3K shares, representing a decrease of 17.45%. The firm decreased its portfolio allocation in AAPL by 17.98% over the last quarter.
Rbo & Co holds 105K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 104K shares, representing an increase of 0.40%. The firm decreased its portfolio allocation in AAPL by 99.92% over the last quarter.
Invst holds 58K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 60K shares, representing a decrease of 2.99%. The firm decreased its portfolio allocation in AAPL by 99.91% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
See all Apple regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On April 26, 2023 at 15:31:16 ET an unusually large $3,040.50K block of Call contracts in Apple (AAPL) was sold, with a strike price of $167.50 / share, expiring in 23 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.98 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%.
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On April 26, 2023 at 15:31:16 ET an unusually large $3,040.50K block of Call contracts in Apple (AAPL) was sold, with a strike price of $167.50 / share, expiring in 23 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.98 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%.
|
On April 26, 2023 at 15:31:16 ET an unusually large $3,040.50K block of Call contracts in Apple (AAPL) was sold, with a strike price of $167.50 / share, expiring in 23 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.98 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%.
|
On April 26, 2023 at 15:31:16 ET an unusually large $3,040.50K block of Call contracts in Apple (AAPL) was sold, with a strike price of $167.50 / share, expiring in 23 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.98 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%.
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16160.0
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2023-04-26 00:00:00 UTC
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Barclays Maintains Apple (AAPL) Equal-Weight Recommendation
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AAPL
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https://www.nasdaq.com/articles/barclays-maintains-apple-aapl-equal-weight-recommendation
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nan
|
nan
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Fintel reports that on April 26, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 6.19% 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 6.19% from its latest reported closing price of 163.77.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 6.74%. 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 6408 funds or institutions reporting positions in Apple. This is an increase of 189 owner(s) or 3.04% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. Total shares owned by institutions increased in the last three months by 0.12% to 10,139,399K shares.
The put/call ratio of AAPL is 1.00, 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 April 26, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Fintel reports that on April 26, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Fintel reports that on April 26, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. Fintel reports that on April 26, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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16161.0
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2023-04-26 00:00:00 UTC
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Alphabet, Meta lure back advertisers as smaller rivals expected to struggle
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AAPL
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https://www.nasdaq.com/articles/alphabet-meta-lure-back-advertisers-as-smaller-rivals-expected-to-struggle
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nan
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nan
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By Sheila Dang
April 27 (Reuters) - Advertisers are sticking with safe havens Alphabet GOOGL.O and Meta Platforms META.O in an uncertain economy, their quarterly results showed, likely helping the tech giants take market share away from smaller digital ad sellers such as Snap Inc SNAP.N.
Following a pandemic-led spending bonanza by advertisers who wanted to reach customers online, ad sales-reliant tech firms faced tough comparisons in the past several quarters. Customers cut their ad budgets after interest rates rose and record-high inflation fueled worries about the economy.
This year, though, the social media ad market is expected to grow at a slightly faster pace than in 2022, according to a report last month from media and intelligence firm MAGNA.
"Advertisers are simply going back to platforms they know, like and trust," said Brian Mulberry, a portfolio manager at Zacks Investment Management.
First-quarter ad sales at Google-parent Alphabet slipped from a year earlier to $54.55 billion, but beat what analysts were expecting.
Advertisers are facing an environment where they must "do more with less," Philipp Schindler, Google's chief business officer, said on anearnings conference callon Tuesday.
The company on Tuesday played up its work in artificial intelligence (AI), saying that helped it improve the relevance of ads shown to users and even automatically generate text that can be used in a brand's ads.
Meta, on Wednesday, echoed this, saying AI recommendations had increased the time users spend on Instagram by 24% in the first quarter and that it was investing in AI to lure advertisers to spend more on its platforms.
Meta shares spiked 12% in after hours trade on Wednesday.
The social media advertising market overall is expected to grow 6% this year to $66 billion, according to MAGNA.
Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc AAPL.O made it more difficult for advertisers to gather user data to serve targeted ads.
"There's a lot of inertia to staying put with platforms that you're familiar with and have tools that are well-developed for advertisers," said Insider Intelligence principal analyst Debra Aho Williamson.
Advertisers could snub Snapchat-owner Snap and Pinterest PINS.N, which will report quarterly results on Thursday, as the companies reach only a fraction of potential consumers as their larger rivals, analysts said.
Analysts expect Snap to post a 2% fall in its first-quarter revenue from a year earlier, according to Refinitiv.
Snap has struggled to translate its investment in new technology like augmented reality into revenue, said Jasmine Enberg, another principal analyst at Insider Intelligence.
Digital pinboard company Pinterest is expected to post a 3% year-over-year rise in quarterly revenue on Thursday, according to Refinitiv data.
However, Pinterest's outlook could be volatile as "the competitive landscape remains fierce" and companies are "guarded" with their digital ad budgets, Brian White, an analyst with Monness Crespi Hardt, said in a note on Tuesday.
(Reporting by Sheila Dang in Dallas; Editing by Sayantani Ghosh and Diane Craft)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and 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 year, the social media ad market grew 2% in part because privacy updates by Apple Inc AAPL.O made it more difficult for advertisers to gather user data to serve targeted ads. By Sheila Dang April 27 (Reuters) - Advertisers are sticking with safe havens Alphabet GOOGL.O and Meta Platforms META.O in an uncertain economy, their quarterly results showed, likely helping the tech giants take market share away from smaller digital ad sellers such as Snap Inc SNAP.N. Following a pandemic-led spending bonanza by advertisers who wanted to reach customers online, ad sales-reliant tech firms faced tough comparisons in the past several quarters.
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Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc AAPL.O made it more difficult for advertisers to gather user data to serve targeted ads. By Sheila Dang April 27 (Reuters) - Advertisers are sticking with safe havens Alphabet GOOGL.O and Meta Platforms META.O in an uncertain economy, their quarterly results showed, likely helping the tech giants take market share away from smaller digital ad sellers such as Snap Inc SNAP.N. The social media advertising market overall is expected to grow 6% this year to $66 billion, according to MAGNA.
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Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc AAPL.O made it more difficult for advertisers to gather user data to serve targeted ads. By Sheila Dang April 27 (Reuters) - Advertisers are sticking with safe havens Alphabet GOOGL.O and Meta Platforms META.O in an uncertain economy, their quarterly results showed, likely helping the tech giants take market share away from smaller digital ad sellers such as Snap Inc SNAP.N. This year, though, the social media ad market is expected to grow at a slightly faster pace than in 2022, according to a report last month from media and intelligence firm MAGNA.
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Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc AAPL.O made it more difficult for advertisers to gather user data to serve targeted ads. Meta, on Wednesday, echoed this, saying AI recommendations had increased the time users spend on Instagram by 24% in the first quarter and that it was investing in AI to lure advertisers to spend more on its platforms. The social media advertising market overall is expected to grow 6% this year to $66 billion, according to MAGNA.
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16162.0
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2023-04-26 00:00:00 UTC
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Apple, Android rivals see Q1 drop in China phone shipments - research firm
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AAPL
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https://www.nasdaq.com/articles/apple-android-rivals-see-q1-drop-in-china-phone-shipments-research-firm
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nan
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nan
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SHANGHAI, April 27 (Reuters) - Apple Inc AAPL.O and its Android rivals saw sales slide in the first quarter in China, research firm Canalys reported on Thursday, as consumers continued to tighten their belts following the lifting of COVID-19 restrictions.
The iPhone maker was the top-selling brand over the first three months of the year, with 20% market share. But its overall shipments in China fell to 13.3 million units, a 3% decrease from the same period in 2022.
Sales for all other top-selling brands also fell, with total smartphone shipments dropping 11% year-on-year to 67.2 million units, the lowest quarterly total since 2013.
Despite being the best-selling brand in the quarter, Apple saw its total market share fall 3 percentage points year-on-year.
Oppo and Vivo, Android brands that trail Apple as the second and third best-sellers, saw shipments fall 10% and 7% respectively.
Honor and Xiaomi Corp 1810.HK, which specialize in low-end models, saw shipments fall 35% and 20% respectively, suggesting consumers shied away from phone purchases even at the cheapest prices.
China's GDP grew 4.5% in the first quarter, beating expectations, and policy makers in Beijing are working on plans to further stimulate demand. However, economists expect most Chinese consumers and businesses to spend cautiously over the coming year.
(Reporting by Josh Horwitz Editing by Mark Potter)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SHANGHAI, April 27 (Reuters) - Apple Inc AAPL.O and its Android rivals saw sales slide in the first quarter in China, research firm Canalys reported on Thursday, as consumers continued to tighten their belts following the lifting of COVID-19 restrictions. Honor and Xiaomi Corp 1810.HK, which specialize in low-end models, saw shipments fall 35% and 20% respectively, suggesting consumers shied away from phone purchases even at the cheapest prices. China's GDP grew 4.5% in the first quarter, beating expectations, and policy makers in Beijing are working on plans to further stimulate demand.
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SHANGHAI, April 27 (Reuters) - Apple Inc AAPL.O and its Android rivals saw sales slide in the first quarter in China, research firm Canalys reported on Thursday, as consumers continued to tighten their belts following the lifting of COVID-19 restrictions. But its overall shipments in China fell to 13.3 million units, a 3% decrease from the same period in 2022. Sales for all other top-selling brands also fell, with total smartphone shipments dropping 11% year-on-year to 67.2 million units, the lowest quarterly total since 2013.
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SHANGHAI, April 27 (Reuters) - Apple Inc AAPL.O and its Android rivals saw sales slide in the first quarter in China, research firm Canalys reported on Thursday, as consumers continued to tighten their belts following the lifting of COVID-19 restrictions. Sales for all other top-selling brands also fell, with total smartphone shipments dropping 11% year-on-year to 67.2 million units, the lowest quarterly total since 2013. Despite being the best-selling brand in the quarter, Apple saw its total market share fall 3 percentage points year-on-year.
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SHANGHAI, April 27 (Reuters) - Apple Inc AAPL.O and its Android rivals saw sales slide in the first quarter in China, research firm Canalys reported on Thursday, as consumers continued to tighten their belts following the lifting of COVID-19 restrictions. Sales for all other top-selling brands also fell, with total smartphone shipments dropping 11% year-on-year to 67.2 million units, the lowest quarterly total since 2013. Despite being the best-selling brand in the quarter, Apple saw its total market share fall 3 percentage points year-on-year.
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16163.0
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2023-04-26 00:00:00 UTC
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Amazon to shut down Halo division, lays off some staff
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AAPL
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https://www.nasdaq.com/articles/amazon-to-shut-down-halo-division-lays-off-some-staff
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nan
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nan
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April 26 (Reuters) - Amazon.com Inc AMZN.O said on Wednesday it was shutting down its Halo division that sells health and sleep trackers as the technology giant kicks off wider company layoffs.
The company said it will stop supporting Halo services from July 31, and will fully refund Halo devices purchases made in the preceding 12 months.
"We notified impacted employees in the U.S. and Canada today," the company said in a blog post.
The company had introduced the original Halo band in 2020, which came as a fitness tracker along with a subscription to certain health monitoring and analysis services from Amazon. It later released a new version called Halo View and Halo Rise, a contact-less sleep tracker and smart alarm clock.
Like peers Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, Amazon has invested in health-tracking technology for consumers, at times drawing regulatory scrutiny for sensitive information it aimed to collect – like body fat percentage via its fitness wristband.
Amazon, which in March announced it was laying off 9,000 workers as part of its second retrenchment drive, started informing some of the affected employees on Wednesday. Heads of Amazon Web Services and the People Experience and Technology team emailed affected staff about the cuts, the company said.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shailesh Kuber)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like peers Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, Amazon has invested in health-tracking technology for consumers, at times drawing regulatory scrutiny for sensitive information it aimed to collect – like body fat percentage via its fitness wristband. April 26 (Reuters) - Amazon.com Inc AMZN.O said on Wednesday it was shutting down its Halo division that sells health and sleep trackers as the technology giant kicks off wider company layoffs. The company had introduced the original Halo band in 2020, which came as a fitness tracker along with a subscription to certain health monitoring and analysis services from Amazon.
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Like peers Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, Amazon has invested in health-tracking technology for consumers, at times drawing regulatory scrutiny for sensitive information it aimed to collect – like body fat percentage via its fitness wristband. April 26 (Reuters) - Amazon.com Inc AMZN.O said on Wednesday it was shutting down its Halo division that sells health and sleep trackers as the technology giant kicks off wider company layoffs. The company said it will stop supporting Halo services from July 31, and will fully refund Halo devices purchases made in the preceding 12 months.
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Like peers Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, Amazon has invested in health-tracking technology for consumers, at times drawing regulatory scrutiny for sensitive information it aimed to collect – like body fat percentage via its fitness wristband. April 26 (Reuters) - Amazon.com Inc AMZN.O said on Wednesday it was shutting down its Halo division that sells health and sleep trackers as the technology giant kicks off wider company layoffs. The company said it will stop supporting Halo services from July 31, and will fully refund Halo devices purchases made in the preceding 12 months.
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Like peers Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, Amazon has invested in health-tracking technology for consumers, at times drawing regulatory scrutiny for sensitive information it aimed to collect – like body fat percentage via its fitness wristband. April 26 (Reuters) - Amazon.com Inc AMZN.O said on Wednesday it was shutting down its Halo division that sells health and sleep trackers as the technology giant kicks off wider company layoffs. The company said it will stop supporting Halo services from July 31, and will fully refund Halo devices purchases made in the preceding 12 months.
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16164.0
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2023-04-26 00:00:00 UTC
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Elon, or deepfake? Musk must face questions on Autopilot statements
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AAPL
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https://www.nasdaq.com/articles/elon-or-deepfake-musk-must-face-questions-on-autopilot-statements-0
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nan
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nan
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By Hyunjoo Jin and Dan Levine
April 26 (Reuters) - A California judge on Wednesday ordered Tesla CEO Elon Musk to be interviewed under oath about whether he made certain statements regarding the safety and capabilities of the carmaker’s Autopilot features.
The ruling, first reported by Reuters, came in a lawsuit filed by the family of Walter Huang against Tesla in Santa Clara Superior Court, over a car crash which killed the Apple engineer in 2018. Tesla's lawyers has said Musk cannot recall the details of his statements that the plaintiffs want to ask him about, and that the billionaire celebrity CEO is often the subject of convincing "deepfake" videos.
Huang’s family argues Tesla’s partially automated driving software failed. The carmaker contends Huang was playing a videogame on his phone before the crash and disregarded vehicle warnings.
Plaintiff attorneys sought to depose Musk regarding recorded statements that tout the capabilities of Autopilot. The ruling that Musk must testify was tentative, and a hearing was set for Thursday on whether to depose him. California judges often issue tentative rulings, which are almost always finalized with few major changes after such a hearing.
Musk will likely be asked about a 2016 statement cited by plaintiffs, in which he allegedly said: "A Model S and Model X, at this point, can drive autonomously with greater safety than a person. Right now.”
Tesla opposed the request in court filings, arguing that Musk cannot recall details about statements.
In addition Musk, “like many public figures, is the subject of many ‘deepfake’ videos and audio recordings that purport to show him saying and doing things he never actually said or did,” Tesla said.
Judge Evette Pennypacker tentatively ordered a limited, three-hour deposition where Musk could be asked whether he actually made the statements on the recordings, and called Tesla’s arguments “deeply troubling.”
“Their position is that because Mr. Musk is famous and might be more of a target for deep fakes, his public statements are immune,” Pennypacker wrote, adding that such arguments would allow Musk and other famous people “to avoid taking ownership of what they did actually say and do.”
The plaintiffs also claim that Musk finalized the details of a 2016 promotional video that states, “The car is driving itself." The video displayed some features that did not exist at the time, the plaintiffs said, citing multiple Tesla engineers.
Musk, Tesla and an attorney for Huang’s family did not immediately respond to a request for comment.
The lawsuit is scheduled to go into trial on July 31, adding to growing legal and regulatory scrutiny over Tesla's Autopilot system.
A California state court jury on Friday found Tesla's Autopilot feature did not fail in what appeared to be the first trial related to a crash involving the partially automated driving software.
(Reporting by Dan Levine and Hyunjoo Jin in San Francisco Editing by Marguerita Choy and David Gregorio)
((dan.levine@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 Hyunjoo Jin and Dan Levine April 26 (Reuters) - A California judge on Wednesday ordered Tesla CEO Elon Musk to be interviewed under oath about whether he made certain statements regarding the safety and capabilities of the carmaker’s Autopilot features. The ruling, first reported by Reuters, came in a lawsuit filed by the family of Walter Huang against Tesla in Santa Clara Superior Court, over a car crash which killed the Apple engineer in 2018. A California state court jury on Friday found Tesla's Autopilot feature did not fail in what appeared to be the first trial related to a crash involving the partially automated driving software.
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By Hyunjoo Jin and Dan Levine April 26 (Reuters) - A California judge on Wednesday ordered Tesla CEO Elon Musk to be interviewed under oath about whether he made certain statements regarding the safety and capabilities of the carmaker’s Autopilot features. Huang’s family argues Tesla’s partially automated driving software failed. Right now.” Tesla opposed the request in court filings, arguing that Musk cannot recall details about statements.
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By Hyunjoo Jin and Dan Levine April 26 (Reuters) - A California judge on Wednesday ordered Tesla CEO Elon Musk to be interviewed under oath about whether he made certain statements regarding the safety and capabilities of the carmaker’s Autopilot features. Tesla's lawyers has said Musk cannot recall the details of his statements that the plaintiffs want to ask him about, and that the billionaire celebrity CEO is often the subject of convincing "deepfake" videos. Judge Evette Pennypacker tentatively ordered a limited, three-hour deposition where Musk could be asked whether he actually made the statements on the recordings, and called Tesla’s arguments “deeply troubling.” “Their position is that because Mr. Musk is famous and might be more of a target for deep fakes, his public statements are immune,” Pennypacker wrote, adding that such arguments would allow Musk and other famous people “to avoid taking ownership of what they did actually say and do.” The plaintiffs also claim that Musk finalized the details of a 2016 promotional video that states, “The car is driving itself."
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By Hyunjoo Jin and Dan Levine April 26 (Reuters) - A California judge on Wednesday ordered Tesla CEO Elon Musk to be interviewed under oath about whether he made certain statements regarding the safety and capabilities of the carmaker’s Autopilot features. Huang’s family argues Tesla’s partially automated driving software failed. Right now.” Tesla opposed the request in court filings, arguing that Musk cannot recall details about statements.
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16165.0
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2023-04-26 00:00:00 UTC
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Why Do Tech Stocks Go Down When Interest Rates Rise?
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AAPL
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https://www.nasdaq.com/articles/why-do-tech-stocks-go-down-when-interest-rates-rise
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nan
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nan
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The year 2022 was a brutal one for companies in the tech sector. When tech stocks crash, investors perk up and look for reasons why. In this case, one cause sticks out above the rest — rising interest rates. Why do tech stocks go down when interest rates rise?
Rising interest rates can harm any stock, but tech companies tend to feel the burn more than others.
Overview of Rising Rates
In March 2023, the Federal Reserve raised the federal funds rate by 25 basis points, bringing the benchmark interest rate to 4.5%. The federal funds rate is known as the benchmark because it sets the standard for which banks lend to each other, and this benchmark rate heavily influences most other interest rates (i.e., mortgage rates).
Why does the Federal Reserve raise (and lower) interest rates? Because the Fed has what's known as a dual mandate: keep prices stable and encourage maximum sustainable employment. Price stability means keeping inflation at a moderate level, and the Fed's primary tool for dealing with inflation is setting interest rates. Inflation is a tricky beast, and the Fed aims for a 2% core inflation rate — low enough to keep the economy from overheating but high enough to encourage investment and prevent deflation.
Since the end of the Great Recession into the beginning of the COVID-19 pandemic, inflation has been at or below this 2% target. And with inflation low, the stock market benefitted, especially growth-focused tech stocks that feasted on easy money.
But the pandemic created a massive supply and demand imbalance as prices skyrocketed. In response, the Federal Reserve began raising rates in a hurry to cool demand and bring inflation back to a moderate level. And what cohort of stocks was hurt most by this action? Tech stocks, of course!
Overview of Tech Stocks
So why do interest rates affect tech stocks? Companies in the tech sector are innovators, but innovation doesn't often come cheap. While some tech stocks could be considered value stocks, most companies in the tech sector (especially those covered in financial media) are growth stocks. Companies looking for growth tend to spend lots of money to bring their products and services into the mainstream.
Tech stocks vary from small-cap startups to some of the world's largest and most successful companies. You've probably heard of some of the big ones like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Google, now Alphabet Inc. (NASDAQ: GOOG).
We still haven't answered the question, "why do tech stocks fall when interest rates rise?". While plenty of tech firms are large conglomerates, many more are small to mid-cap firms without endless access to cheap capital. Tech stocks focus heavily on research and development, so they often reinvest excess profits back into the firm and don't keep a lot of cash on hand (well, except Apple). Even large-cap companies launching new products or services must borrow money to finance their ventures.
When interest rates rise, the cost of borrowing capital also increases, which isn't felt evenly throughout the different sectors of the market. Banks like JPMorgan Chase and Co. (NYSE: JPM) or utility providers like Duke Energy Co. (NYSE: DUK) usually don't suffer as much when rates are rising since they don't need capital infusions the way tech stocks do.
Look at the two charts above; Google slumped as rates rose, but JPMorgan Chase was far less affected. Now these are just two examples in a market filled with thousands of different stocks, but tech stocks and rising rates have often been a sour mix.
Rising Rates and Tech Stocks
While tech stocks and high-interest rates don't usually get along, it's not a slam-dunk investment to buy tech when rates fall or sell tech when rates rise. The question of why interest rates affect tech stocks gets murkier when compared on a chart. Here's the Technology Select Sector SDPR Fund (NYSE: XLK), a broad-based tech ETF, compared to the S&P 500 over the last 20 years.
Rates plummeted following the dot-com bust in 2000, but it wasn't enough to save tech stocks from falling harder than the rest of the market. The federal funds rate stayed around 1% until 2004, then steadily rose to 5% in 2007 before the Great Recession. Despite rising rates, the tech sector didn't materially underperform the S&P 500 during that time frame. Following the Great Recession, rates stayed near zero until 2016. From 2016 to 2019, rates jumped over 2% from zero, but tech outperformed the S&P 500 during these three years.
When rates dropped to near zero during the COVID-19 pandemic, tech rapidly outperformed the overall market and stayed ahead of the pack until 2021. Even though the Federal Reserve signaled that rate hikes were coming, the tech bear market began when rates were still effectively zero. In 2022, tech stocks languished as rates rose rapidly but recovered in 2023 when the rate hikes began to slow.
The lesson here? If someone asks why tech stocks are down, the answer isn't automatically high rates. Based on yesterday's strategies, the market enjoys taking advantage of folks to invest, and the relationship between rates and tech stocks can be complicated. Theoretically, it's easy to understand why tech stocks are sensitive to interest rates, but results vary in practice.
Prospects for Tech Stocks in 2023
Despite the rough 2022, the start of 2023 has been promising for the tech sector. The highs of 2021 are still a ways off, but the Invesco QQQ Trust (NASDAQ: QQQ), the large-cap tech ETF, has gained nearly 20% in the first four months of 2023.
With inflation numbers dropping in line with expectations, the rate hike pace has slowed. Unlike 2022, few market prognosticators expect 75 basis point rate hikes in 2023. However, even if the Federal Reserve stops hiking rates this year, they've indicated that 4% to 5% rates will likely be here for some time. As shown in the examples above, (relatively) elevated interest rates are only sometimes a hindrance to tech stocks, but there are better environments for the cash-hungry sector.
Factors Influencing Technology Stocks
Interest rates aren't the only thing weighing on tech stocks. Here are three more factors to consider with tech stock investing.
Economic Uncertainty
Not only do recessions and bear markets hurt the tech sector, but so can macroeconomic and geopolitical events. For instance, the COVID-19 pandemic hampered many different supply chains, including the microprocessors and digital components needed by tech startups.
Inflation
Inflation can hurt any company without the power to raise prices, but tech stocks can be affected even more since inflation is usually followed by periods of rising interest rates. Additionally, smaller tech companies without meaningful profits may be unable to absorb price increases from their suppliers.
Corporate Earnings
Tech investors are looking for companies well positioned for growth, meaning earnings must keep pace with expectations. Tech stocks are often more about potential than profit initially, but eventually, investors will want to see the company grow sales as well as hype.
Future of Investing in Tech Stocks
Investing in tech has always been an exciting proposition. Not only do many of the market's biggest winners, like Apple and Microsoft reside in the sector, but these companies have produced some of the most game-changing innovations of the last 50 years. Think of products and services we depend on today that didn't even exist 20 years ago — smartphones, rideshare, streaming services and wearing medical devices. However, tech is a volatile sector, and many innovations will fail. Never invest in a tech stock without researching the company and ensuring you agree with its mission.
High Rates and Tech Stocks Are a Mixed Bag
High rates have rarely been well-received by the tech sector, but the performance of the stocks shows varied results, especially over the last 20 years. Declining rates didn't help the tech sector following the dot-com bubble, but the low rate environment following the Great Recession led to tech outperforming the S&P 500.
While rising rate environments should hurt tech, you can't use simple heuristics to make investment decisions since markets rarely play out as the crowd predicts.
FAQs
Will tech stocks bounce back? Here are a few common questions about rates and the tech sector.
Do higher interest rates hurt tech stocks?
Higher interest rates often hurt tech since those companies have high borrowing needs, but stock performance doesn't always match rate hikes.
Why do tech stocks fall with higher interest rates?
Tech companies need more frequent capital infusions, and capital gets expensive to acquire when rates are high.
Why does inflation cause tech stocks to drop?
Inflation can hurt tech stocks by increasing the costs of necessary products or services and bringing in higher rates. When inflation is high, the Federal Reserve seeks to limit the money supply through high rates to bring economic forces back into balance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You've probably heard of some of the big ones like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Google, now Alphabet Inc. (NASDAQ: GOOG). In response, the Federal Reserve began raising rates in a hurry to cool demand and bring inflation back to a moderate level. Tech stocks focus heavily on research and development, so they often reinvest excess profits back into the firm and don't keep a lot of cash on hand (well, except Apple).
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You've probably heard of some of the big ones like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Google, now Alphabet Inc. (NASDAQ: GOOG). Overview of Rising Rates In March 2023, the Federal Reserve raised the federal funds rate by 25 basis points, bringing the benchmark interest rate to 4.5%. Higher interest rates often hurt tech since those companies have high borrowing needs, but stock performance doesn't always match rate hikes.
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You've probably heard of some of the big ones like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Google, now Alphabet Inc. (NASDAQ: GOOG). Overview of Tech Stocks So why do interest rates affect tech stocks? Rising Rates and Tech Stocks While tech stocks and high-interest rates don't usually get along, it's not a slam-dunk investment to buy tech when rates fall or sell tech when rates rise.
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You've probably heard of some of the big ones like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Google, now Alphabet Inc. (NASDAQ: GOOG). Why do tech stocks go down when interest rates rise? Tech stocks, of course!
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16166.0
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2023-04-26 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
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nan
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nan
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Fintel reports that on April 26, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 6.19% 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 6.19% from its latest reported closing price of 163.77.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 6.74%. 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 6408 funds or institutions reporting positions in Apple. This is an increase of 189 owner(s) or 3.04% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. Total shares owned by institutions increased in the last three months by 0.12% to 10,139,399K shares.
The put/call ratio of AAPL is 1.00, 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 April 26, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Fintel reports that on April 26, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Fintel reports that on April 26, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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Average portfolio weight of all funds dedicated to AAPL is 2.79%, a decrease of 26.22%. Fintel reports that on April 26, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
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16167.0
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2023-04-26 00:00:00 UTC
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Activision Blizzard in Trouble After Latest Ruling
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AAPL
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https://www.nasdaq.com/articles/activision-blizzard-in-trouble-after-latest-ruling
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nan
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nan
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Activision Blizzard (NASDAQ: ATVI) faces a new hurdle now that Microsoft's (NASDAQ: MSFT) buyout is in question as British regulators look to block the deal. In this video, Travis Hoium covers why it's Activision Blizzard that may be the big loser if there's no deal.
*Stock prices used were end-of-day prices of April 26, 2023. The video was published on April 26, 2023.
10 stocks we like better than Activision Blizzard
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 Activision Blizzard 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 April 24, 2023
Travis Hoium has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, Take-Two Interactive Software, and Unity Software. The Motley Fool has a disclosure policy.
Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium covers why it's Activision Blizzard that may be the big loser if there's no deal. 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 Activision Blizzard wasn't one of them!
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Travis Hoium has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, Take-Two Interactive Software, and Unity Software.
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10 stocks we like better than Activision Blizzard When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Travis Hoium has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, Take-Two Interactive Software, and Unity Software.
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In this video, Travis Hoium covers why it's Activision Blizzard that may be the big loser if there's no deal. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Travis Hoium has positions in Apple and Unity Software.
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16168.0
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2023-04-26 00:00:00 UTC
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Growth vs Value Investing: What Are the Differences?
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AAPL
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https://www.nasdaq.com/articles/growth-vs-value-investing%3A-what-are-the-differences
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nan
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nan
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Want to learn about growth vs value investing? You've landed on the right page! This article will review the differences between growth and value stocks and discuss which market environments are best for each.
Growth and value may seem at odds initially, but both play an important role in portfolio construction.
Growth vs Value: What Are the Differences?
What is value vs growth investing?
Growth vs. value investing is arguably the biggest rivalry in modern markets. We're talking Yankees vs. Red Sox, Foreman vs. Ali or Elon Musk vs. the SEC. Growth and value have legions of proponents who will fiercely argue the benefits of each investing style over the other. And then some investors are more down the middle, arguing for value or growth depending on the market environment.
As with most debates, the truth likely lies somewhere in the middle. But growth can still outperform value for extended periods or vice versa. Learning the pros and cons of both styles (and when each one is appropriate) is an essential step in becoming a versatile investor. Rigid dogma is often the fast track to underperformance. But for now, let's dig deeper into the meaning of a growth stock vs value stock.
Definition of Growth Investing
Saying that growth investing is all about short-term profits is a misnomer — ask anyone who's spent the last 20 years invested in Apple Inc. (NASDAQ: AAPL) or Amazon Inc. (NASDAQ: AMZN) if short time frames were the only path to success.
The definition of growth investing varies depending on your source. For example, in a recent growth investing vs value investing analysis, Charles Schwab defined growth stocks as companies with five-year average sales growth over 15%. In contrast, value stocks were defined as companies with a price-to-sales rate under 1. But this is just one sample of definitions and growth investing is more about mindset and risk tolerance than fitting rigid criteria.
Growth companies are expected to outperform, so investors don't mind paying a premium to own their stocks. Growth stocks usually look expensive through valuation metrics like the price-to-earnings (P/E) ratio or price-to-book (P/B) ratio because growth investors typically care more about potential sales than current sales. These companies usually reside in volatile sectors like tech or biotech and rarely pay dividends since profits go directly back into the firm. Growth investors should be prepared for volatility since these companies frequently suffer ups and downs as they push new products and innovations to the market.
Definition of Value Investing
Value investing has many famous proponents, like Benjamin Graham, Warren Buffett and Jeremy Grantham. And while value investors are also looking to beat the market average, they approach stocks differently than growth investors. Unlike growth investors, who don't mind paying for pricey valuations, value investors shop in the discount aisle.
Graham is arguably the father of value investing. He coined the term "margin of safety" to describe his investment criteria, which modern investors like Warren Buffett have embraced. One of Buffett's favorite analogies about margin of safety was about building a bridge. If the heaviest truck using the bridge weighs 10,000 pounds, build a bridge that can withstand 30,000 pounds.
One of the key differences between value investing vs growth investing is that value investors won't overpay for innovative companies or exciting new technology. Value investors look for stocks underpriced by fundamental metrics like P/E ratio, price-to-sales (P/S) ratio or price-to-cash flow (P/CF) ratio.
Adopting a value investing mentality means looking for cheap stocks according to traditional valuation metrics. Often, this means buying downtrodden or less exciting stocks like banks, industrials or other dividend-paying companies. Value investors aren't looking for the next big thing, just good companies at fair prices.
Examples of Growth Investing Companies
When choosing between growth or value stocks, you'll need to determine your investment goals and criteria. Are you looking to pick the best individual growth stocks or want to invest in growth stock funds like the SPDR Portfolio S&P 500 Growth ETF (NYSE: SPYG)? Growth ETFs can even have themes, like the Vanguard S&P Small Cap 600 Growth ETF (NYSE: VIOG).
Looking for some specific examples? Here are three companies in different industries that fit the growth stock mold.
NVIDIA Corp.
You'd be hard-pressed to find a more discussed growth stock over the last few years than chipmaker NVIDIA Corp. (NASDAQ: NVDA). The company pays minimal dividends and has a sky-high P/E ratio, but its microchips and AI advances have made it one of the tech sector's darlings. NVIDIA has been a public company for decades, but sales growth has exploded over the last few years.
HealthStream Inc.
HealthStream Inc. (NASDAQ: HSTM) is a mid-cap healthcare staffing solutions company offering training, credentialing and scheduling for medical professionals and data and administrative systems for healthcare providers.
What makes it a growth stock? Despite a P/E ratio over 70 and a minimal dividend yield, HealthStream has increased profits for five consecutive years, and current projections indicate an earnings increase of 15% in 2023.
The Trade Desk Inc.
The priciest stock on our list belongs to The Trade Desk Inc. (NASDAQ: TTD), with a P/E ratio north of 600. But unlike most stocks with a P/E ratio that high, The Trade Desk has a market cap close to $30 billion and a history of providing solutions to advertising clients. The company's projected earnings growth for 2023 is over 63%, and profits have grown substantially, including a boost from $974 million to $1.3 billion in the last year alone.
Examples of Value Investing Companies
Value stocks also have plenty of ETFs and index funds offering exposure to different market sections, depending on certain criteria. Broad index funds like the Schwab U.S. Large Cap Value ETF (NYSE: SCHV) hold big, recognizable companies with good underlying fundamentals. Or you can go the thematic route, like the Vanguard Russell 1000 Value Index (NYSE: VONV), which tracks small and mid-cap value stocks, or the iShares MSCI International Value Factor ETF (NYSE: IVLU), which tracks undervalued stocks outside the United States.
Here are three different stocks that currently fall into the value category based on their fundamentals. Note that many former growth stocks entered value territory following the 2022 bear market (which is a good example of why investors benefit from adopting fluid strategies).
Walmart Inc.
Can the world's largest retailer really be undervalued? By lots of fundamental metrics, yes! Walmart Inc. (NYSE: WMT) generates more revenue and employs more people than any company but trades at a relatively fair valuation. The stock pays a good dividend, and its P/S ratio is under 1, meaning the company produces more than $1 in revenue for every $1 in equity provided by investors.
The Home Depot Inc.
One non-tech stock hit hard in 2022 was The Home Depot Inc. (NYSE: HD), dropping over 30% from its 2021 highs. Check out its most recent earnings. But value investors will like what they see now thanks to a P/E ratio under 20, beta under 1 and history of dividend payment increases. Home Depot is a good example of a company that became a value stock due to factors outside its control.
Bank of America Corp.
You can often find Bank of America Corp. (NYSE: BAC) value in the banking sector, and many financial stocks were hit hard following the collapse of Silicon Valley Bank in early 2023. When events like a banking crisis drag entire sectors down, you can often find deals, and Bank of America fits that bill. The stock has a P/E ratio under 10, a P/B rate under 1 and pays a sustainable dividend.
Pros and Cons of Growth vs. Value Investing
Deciding between growth or value stocks? Here are some pros and cons of each investing style.
Pros of Growth Investing
Take a look at the benefits of growth investing:
Outperformance: It's been a good decade to be a growth investor. Following the end of the financial crisis, growth stocks have consistently outperformed value. Past performance is no barometer of future performance, but the decade between 2011 and 2021 was not kind to value investors.
Exciting new trends: Growth stocks often bring new products or innovations to the market and are frequently priced at a premium.
Beating the market: When the economy is going well and markets rise, the top growth stocks are often the cream of the crop. A good example is the FAANG basket of stocks, which outperformed the S&P 500 substantially from 2012 to 2022.
Cons of Growth Investing
The cons of growth investing include the following:
Expensive valuations: Investors pay for the privilege of growth investing. Growth companies often don't have earnings to match their market cap, so P/E and P/S rates are high.
High volatility: Growth also comes with risk as these companies carry high beta stocks that fluctuate more than the overall market. If you can't stomach volatility, growth investing will be difficult.
Often suffer in rising rate environments: When rates rise, companies that don't have profits matching their valuation can find capital harder to come by, significantly damaging undercapitalized tech firms that may see stricter terms from lenders.
Pros of Value Investing
Now, the benefits of value investing:
Established companies: Value stocks are often older companies that have experienced short-term stagnation, driving their value below where it should be. This allows value investors to buy cheap shares before the market reverses.
Low beta: Value stocks aren't as volatile as growth stocks, offering investors more stability and predictability.
Usually dividend payers: Value stocks can also provide income to investors from dividends since they aren't concerned about reinvesting excess profits into research and development.
Cons of Value Investing
The downsides of value investing include the following:
Underperform in bull markets: Value stocks are great to own when bear markets strike, but when market conditions improve, so do growth stocks' prospects. Value stocks often underperform growth stocks in bull markets.
Value traps: Not every stock with a low P/E ratio or high dividend yield is a value stock. Stocks are sometimes cheap for a reason, and a company with questionable accounting or C-suite controversies may not provide actual value in the future. Value investing requires more due diligence than just memorizing a few ratios.
How Growth and Value Overlap
Growth vs value stocks may seem like two distinct groups, but these companies can sometimes overlap. For example, some former growth stocks like Meta Platforms Inc. (NASDAQ: META) have gone from high-flying tech winners to fundamentally undervalued by many metrics.
Looking through the holdings of many growth vs. value stock ETFs, you'll notice plenty of similar stocks. Each fund uses its own definition of growth or value, and many times, a stock fits value in one fund and then growth in another. The distinctions can be minimal, so investors should have their basic groundwork on growth vs value stock.
Investing in Growth and Value
Growth stocks and value stocks have a place in your portfolio. For example, an investor seeking a diverse portfolio might give 65% weight to growth and 35% to value during bull markets or declining rate environments. If inflation grows and rates go up to combat it (like in 2022), an allocation revision to 35% growth and 65% value might be more beneficial. Use your investing goals and risk tolerance to compare stocks and build your ideal portfolio.
Two Paths to Potential Outperformance
Hopefully, now you'll be able to answer if someone asks about your preferred investment style, growth or value. While these may seem like competing philosophies (and in many ways, they are), both can have a place in your portfolio depending on current events or the market environment. Always be flexible in your investment beliefs that you can pivot when new information deems it appropriate. Growth and value can both work in certain situations.
FAQs
Here are a few commonly asked questions regarding the growth vs value debate:
Are value funds better than growth funds?
Value funds tend to have lower expenses than growth funds, which can lead to better performance over time. However, each fund is different, and you should always research the holdings before buying.
Is value investing riskier than growth?
From a volatility standpoint, growth stocks are riskier than value stocks, since they frequently have larger drawdowns. However, they also tend to outperform in bull markets.
Are value or growth funds better for the long term?
Investment style growth vs value long-term results will vary depending on market conditions and investor risk tolerance. For example, small-cap growth stocks may have better returns, but large-cap value stocks can provide consistent income through dividends.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Definition of Growth Investing Saying that growth investing is all about short-term profits is a misnomer — ask anyone who's spent the last 20 years invested in Apple Inc. (NASDAQ: AAPL) or Amazon Inc. (NASDAQ: AMZN) if short time frames were the only path to success. But unlike most stocks with a P/E ratio that high, The Trade Desk has a market cap close to $30 billion and a history of providing solutions to advertising clients. Examples of Value Investing Companies Value stocks also have plenty of ETFs and index funds offering exposure to different market sections, depending on certain criteria.
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Definition of Growth Investing Saying that growth investing is all about short-term profits is a misnomer — ask anyone who's spent the last 20 years invested in Apple Inc. (NASDAQ: AAPL) or Amazon Inc. (NASDAQ: AMZN) if short time frames were the only path to success. For example, in a recent growth investing vs value investing analysis, Charles Schwab defined growth stocks as companies with five-year average sales growth over 15%. Cons of Growth Investing The cons of growth investing include the following: Expensive valuations: Investors pay for the privilege of growth investing.
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Definition of Growth Investing Saying that growth investing is all about short-term profits is a misnomer — ask anyone who's spent the last 20 years invested in Apple Inc. (NASDAQ: AAPL) or Amazon Inc. (NASDAQ: AMZN) if short time frames were the only path to success. For example, in a recent growth investing vs value investing analysis, Charles Schwab defined growth stocks as companies with five-year average sales growth over 15%. Are you looking to pick the best individual growth stocks or want to invest in growth stock funds like the SPDR Portfolio S&P 500 Growth ETF (NYSE: SPYG)?
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Definition of Growth Investing Saying that growth investing is all about short-term profits is a misnomer — ask anyone who's spent the last 20 years invested in Apple Inc. (NASDAQ: AAPL) or Amazon Inc. (NASDAQ: AMZN) if short time frames were the only path to success. What is value vs growth investing? Pros of Growth Investing Take a look at the benefits of growth investing: Outperformance: It's been a good decade to be a growth investor.
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2023-04-26 00:00:00 UTC
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'AI All-Star' Microsoft's rosy earnings spark rally in tech stocks
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AAPL
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https://www.nasdaq.com/articles/ai-all-star-microsofts-rosy-earnings-spark-rally-in-tech-stocks
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April 26 (Reuters) - Microsoft Corp MSFT.O shares surged 8% premarket on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver.
The Redmond, Washington-based tech giant was set to add nearly $160 billion to its market value and replace Saudi Aramco 2223.SE as the world's second-most valuable company, if premarket gains hold. Its $2.2 trillion valuation trails Apple Inc AAPL.O by about $400 billion.
At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors, who had braced for a weak quarter, with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
Microsoft's results bode well for an industry that has laid off tens of thousands of workers recently as demand fades in the face of a sagging economy.
Shares of Big Tech peers Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose, while those of Alphabet Inc GOOGL.O, which is in a race with Microsoft for AI domination, fell 1.3%.
The parent company of Google had also reported better-than-expected quarterly results, but its search engine grew just 2% compared with the 10% increase for Microsoft's Bing - which is benefiting from the integration of the tech behind ChatGPT.
The Windows maker'searnings callon Wednesday underscored the growing importance of AI, with CEO Satya Nadella referring to 50 times in a 60-minute event.
Nadella said the company had over 2,500 Azure-OpenAI service customers ranging from Coursera and Mercedes-Benz to Snap Inc and that AI was integrated into a wide array of products.
"Given the significant head start OpenAI has over other generative AI engines and Microsoft has over its hyperscaler (large-scale data center) competitors, we believe that Azure may gain share as generative AI continues to proliferate into many more corners of software and the economy," D A Davidson analyst Gil Luria said.
(Reporting by Nivedita Balu and Aditya Soni in Bengaluru; Editing by Subhranshu Sahu)
((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its $2.2 trillion valuation trails Apple Inc AAPL.O by about $400 billion. April 26 (Reuters) - Microsoft Corp MSFT.O shares surged 8% premarket on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. The Redmond, Washington-based tech giant was set to add nearly $160 billion to its market value and replace Saudi Aramco 2223.SE as the world's second-most valuable company, if premarket gains hold.
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Its $2.2 trillion valuation trails Apple Inc AAPL.O by about $400 billion. April 26 (Reuters) - Microsoft Corp MSFT.O shares surged 8% premarket on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors, who had braced for a weak quarter, with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
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Its $2.2 trillion valuation trails Apple Inc AAPL.O by about $400 billion. April 26 (Reuters) - Microsoft Corp MSFT.O shares surged 8% premarket on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors, who had braced for a weak quarter, with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
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Its $2.2 trillion valuation trails Apple Inc AAPL.O by about $400 billion. April 26 (Reuters) - Microsoft Corp MSFT.O shares surged 8% premarket on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. The Redmond, Washington-based tech giant was set to add nearly $160 billion to its market value and replace Saudi Aramco 2223.SE as the world's second-most valuable company, if premarket gains hold.
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2023-04-26 00:00:00 UTC
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'AI All-Star' Microsoft's rosy earnings spark rally in tech stocks
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https://www.nasdaq.com/articles/ai-all-star-microsofts-rosy-earnings-spark-rally-in-tech-stocks-0
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By Nivedita Balu and Aditya Soni
April 26 (Reuters) - Microsoft Corp MSFT.O shares surged about 7% on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver.
The Redmond, Washington-based tech giant is set to add about $160 billion to its market value and replace Saudi Aramco 2223.SE as the world's second-most valuable company, if current gains hold. Its $2.2 trillion valuation trails Apple Inc's AAPL.O by about $300 billion.
At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
Microsoft's results bode well for an industry that has laid off tens of thousands of workers recently as demand fades in the face of a sagging economy.
Shares of Big Tech peers Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O rose between 1% and 3%.
Alphabet, the parent company of Google, had also reported better-than-expected quarterly results, but its search engine grew just 2% compared with the 10% increase for Microsoft's Bing - which is benefiting from the integration of the tech behind ChatGPT.
"Investors didn't really like the Alphabet call as much as the Microsoft call... Microsoft was very aggressive talking about AI and Google was very conservative," said Dennis Dick, a market structure analyst at Triple D Trading.
The Windows maker'searnings callon Wednesday underscored the growing importance of AI, with CEO Satya Nadella mentioning it 50 times in a 60-minute event.
Nadella said the company had more than 2,500 Azure-OpenAI service customers ranging from Coursera and Mercedes-Benz to Snap Inc and that AI was integrated into a wide array of products.
"Given the significant head start OpenAI has over other generative AI engines and Microsoft has over its hyperscaler (large-scale data center) competitors, we believe that Azure may gain share as generative AI continues to proliferate into many more corners of software and the economy," D A Davidson analyst Gil Luria said.
Alphabet and Microsoft talk up AIhttps://tmsnrt.rs/3LvUTpg
Microsoft AIhttps://tmsnrt.rs/41GIPaf
(Reporting by Nivedita Balu and Aditya Soni in Bengaluru, Additional reporting by Ankika Biswas; Editing by Subhranshu Sahu)
((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its $2.2 trillion valuation trails Apple Inc's AAPL.O by about $300 billion. By Nivedita Balu and Aditya Soni April 26 (Reuters) - Microsoft Corp MSFT.O shares surged about 7% on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
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Its $2.2 trillion valuation trails Apple Inc's AAPL.O by about $300 billion. By Nivedita Balu and Aditya Soni April 26 (Reuters) - Microsoft Corp MSFT.O shares surged about 7% on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. At least 18 analysts raised their price targets on the stock, with Piper Sandler's Brent Braceli saying "AI-All Star" Microsoft's results floored investors with better-than-expected growth across several units ranging from cloud computing to Office productivity software.
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Its $2.2 trillion valuation trails Apple Inc's AAPL.O by about $300 billion. "Investors didn't really like the Alphabet call as much as the Microsoft call... Microsoft was very aggressive talking about AI and Google was very conservative," said Dennis Dick, a market structure analyst at Triple D Trading. "Given the significant head start OpenAI has over other generative AI engines and Microsoft has over its hyperscaler (large-scale data center) competitors, we believe that Azure may gain share as generative AI continues to proliferate into many more corners of software and the economy," D A Davidson analyst Gil Luria said.
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Its $2.2 trillion valuation trails Apple Inc's AAPL.O by about $300 billion. By Nivedita Balu and Aditya Soni April 26 (Reuters) - Microsoft Corp MSFT.O shares surged about 7% on Wednesday and lifted tech stocks after the company's robust earnings eased fears of a slowdown in cloud computing and boosted confidence that artificial intelligence will become a major growth driver. The Redmond, Washington-based tech giant is set to add about $160 billion to its market value and replace Saudi Aramco 2223.SE as the world's second-most valuable company, if current gains hold.
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2023-04-26 00:00:00 UTC
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Healthcare: An Essential Sector (3 Stocks to Buy Ahead of Earnings)
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https://www.nasdaq.com/articles/healthcare%3A-an-essential-sector-3-stocks-to-buy-ahead-of-earnings
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Economic Concerns Remain Despite Market Recovery
Though equities markets have recovered thus far in 2023, many economic and macro concerns remain. Geopolitically speaking, the war in Ukraine persists with no end in sight (and potential escalations elsewhere, like Taiwan). Inflation has slowed; however, there are some signs that it may rear its ugly head again. Used car prices, which are often looked at as a leading indicator for inflation, began moving up again in March for the first time in seven months.
Unforeseen Rate Hiking Problems
Meanwhile, the Federal Reserve’s rate-hiking crusade against inflation has caused unanticipated problems in the regional banking sector. The SPDR Regional Bank ETF (KRE) has been under immense pressure. Silicon Valley Bank has already gone bust, and fellow regional bank First Republic Bank (FRC) is on the tipping point – down more than 90% year-to-date, with the deposits dropping rapidly.
Image Source: Zacks Investment Research
Technology is the Leader but is Extended
Conversely, technology and the Nasdaq 100 ETF (QQQ) have been on a tear. Mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) have been on a tear. So far this year, NVDA is up a mind-blowing 85%!
Image Source: Zacks Investment Research
That said, many stocks, such as Apple and Microsoft, have yet to tag their 50-day moving averages since breaking out earlier in the year.
Image Source: Zacks Investment Research
The 50-day tends to act similar to a rubber band. When stocks get stretched too far in one direction, they tend to snap back in the other direction. Couple that with the fact that we are heading into the historically weak period of May, and investors overleveraged in tech stocks may be in for some pain. In pre-election years, like the one we are in now, May tends to be the second weakest month of the year.
Where to Hide?
Like anything in the stock market, a tech pullback is not a foregone conclusion. However, investors will be best served to diversify their portfolios so that they can withstand any potential volatility in the market. Due to the regional banking crisis, many banking and small cap stocks are vulnerable. Meanwhile, investors likely do not want to chase tech here.
An Essential Sector
One intriguing avenue to take is to look at the healthcare sector. The most basic needs of human beings are food, water, shelter, and healthcare. Healthcare is a sector that has stood the test of time and will undoubtedly continue to into the future. Below are some reasons healthcare companies tend to do well in any economy:
Healthcare is a necessity: As I mentioned above, healthcare is a non-negotiable. If you are sick, you will seek healthcare.
Defensive sector: Because healthcare is a necessity, savvy investors understand they can rely on healthcare stocks for steady and stable growth. Unlike other sectors, healthcare stocks will fluctuate less based on the overall economy.
An Aging Population: As the “baby boomer” generation ages, demand for healthcare services will inevitably increase, leading to a surge in healthcare expenditures.
Stocks to Watch
Merck (MRK) has one of the deepest pipelines in the biotech space. The company boasts more than six blockbuster drugs, including Keytruda, which is approved for treating several types of cancer. Through its in-house pipeline and strategic acquisitions over the years, the company has one of the best growth track records of any company in the market, let alone the healthcare sector. Below is a chart of the company’s EPS growth going back to the 90s.
Image Source: Zacks Investment Research
Beyond its impressive pipeline and earnings track record, MRK has an immaculate balance sheet. The company has over $13 billion in cash on hand and only $1.9 billion in short-term debt. MRK will report earnings Thursday.
DexCom (DXCM) develops continuous glucose monitoring systems for diabetes patients. As the number of diabetes patients in the United States and around the world continues to grow, DXCM should be a primary beneficiary. DXCM is setting up in an attractive price pattern and is attempting to break out ahead of its earnings report on Thursday.
Image Source: Zacks Investment Research
Shockwave Medical (SWAV) is a medical device company that develops products for patients with cardiovascular disease. SWAV is one of the fastest-growing companies in the healthcare space. Last quarter, SWAV grew year-over-year EPS 232% on revenue growth of 71%.
Image Source: Zacks Investment Research
Other healthcare stocks, such as Intuitive Surgical (ISRG), Medtronics (MDT), and Stryker (SYK), are also very strong – illustrating the immense investor appetite for this sector currently.
Conclusion
Healthcare stocks are an excellent place to look in the current market environment. The sector tends to do well in almost any economy due to the aging population, the necessity of the space, and the defensive nature of the industry, which is attractive to investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
First Republic Bank (FRC) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
ShockWave Medical, Inc. (SWAV) : 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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Mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) have been on a tear. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research That said, many stocks, such as Apple and Microsoft, have yet to tag their 50-day moving averages since breaking out earlier in the year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report To read this article on Zacks.com click here. Mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) have been on a tear. Image Source: Zacks Investment Research Shockwave Medical (SWAV) is a medical device company that develops products for patients with cardiovascular disease.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report To read this article on Zacks.com click here. Mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) have been on a tear. Defensive sector: Because healthcare is a necessity, savvy investors understand they can rely on healthcare stocks for steady and stable growth.
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Mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) have been on a tear. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report To read this article on Zacks.com click here. Like anything in the stock market, a tech pullback is not a foregone conclusion.
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2023-04-26 00:00:00 UTC
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Sirius XM's (SIRI) Miami Studios to be Launched by Howard Stern
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https://www.nasdaq.com/articles/sirius-xms-siri-miami-studios-to-be-launched-by-howard-stern
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Sirius XM SIRI recently announced that Howard Stern will officially open Sirius XM’s new state-of-the-art complex in Miami. The complex is located in the heart of the South Beach, which is a center for music, entertainment, culture and more.
The Howard Stern Show is a one-of-a-kind show with exclusive interviews and daily entertainment. The show will be aired live from the Miami studios from May 1 to May 3. Stern will be joined live in the studio by special celebrity and music guests.
Miami studios’ official opening week has an exciting schedule of performances and broadcasts across several SiriusXM channels, all originating from the South Beach complex. It also includes the launch of a new Latin Pop Channel, Hits Uno.
Hits Uno will be launched across airwaves to deliver the best of dance, pop, reggaeton and viral Latin music. Listeners will hear hits from Bad Bunny, Becky G, Bizarrap, Camilo, Karol G, Maluma, Rauw Alejandro, Rosalía, Sebastian Yatra and many more.
Starting from May 1, all the programing from the Miami studio will be available to SiriusXM subscribers in their cars and on the SXM app.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
Sirius XM’s Original Content Differentiates It From Competitors
This Zacks Rank #3 (Hold) company is looking to compete in a declining market of satellite radio by focusing on original content. Sirius XM’s most popular shows include Fresh Air, Dr. Laura and The Dave Ramsey Show.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SIRI’s first-quarter 2023 earnings is pegged at 7 cents per share, indicating a year-over-year decline of 12.5%. The consensus estimate for 2023 revenues is pegged at $9.03 billion, indicating a year-over-year increase of 0.26%.
Though there are no direct competitors of satellite radio, Sirius XM faces competition from on-demand music service providers like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music.
According to a Comparably report, music streaming companies are ranked on the basis of CEO Rankings, Product & Services, NPS, Pricing, Customer Services, eNPS, Gender and Diversity Scores and Overall Culture Score. Amazon ranks first followed by Spotify, Apple and SiriusXM.
Amazon Music is one of the best on-demand music application for users. It was the first music store to sell music without digital rights management. Some of the best podcasts include Even the Rich, The Morning Brief and Business Movers.
Spotify is one of the most well-known music brand across the globe. It is a digital music service with a library consisting of millions of songs. Some of the popular podcasts include The Daily, Breaking Bread and Stuff You Should Know.
Apple music is a one-stop solution for audio, video and music services. Apple music is available in Android devices also. Some of the key podcasts include Fresh Air, U Up? and The Handoff.
Shares of SIRI have fallen 39% in the past year compared with the Zacks Consumer Discretionary sector’s decline of 5.9% in the same period.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
Spotify Technology (SPOT) : 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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Though there are no direct competitors of satellite radio, Sirius XM faces competition from on-demand music service providers like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Miami studios’ official opening week has an exciting schedule of performances and broadcasts across several SiriusXM channels, all originating from the South Beach complex.
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Though there are no direct competitors of satellite radio, Sirius XM faces competition from on-demand music service providers like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Sirius XM’s Original Content Differentiates It From Competitors This Zacks Rank #3 (Hold) company is looking to compete in a declining market of satellite radio by focusing on original content.
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Though there are no direct competitors of satellite radio, Sirius XM faces competition from on-demand music service providers like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Sirius XM’s Original Content Differentiates It From Competitors This Zacks Rank #3 (Hold) company is looking to compete in a declining market of satellite radio by focusing on original content.
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Though there are no direct competitors of satellite radio, Sirius XM faces competition from on-demand music service providers like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. The show will be aired live from the Miami studios from May 1 to May 3.
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16173.0
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2023-04-26 00:00:00 UTC
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How to Find Growth Without Mega-Cap Tech
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AAPL
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https://www.nasdaq.com/articles/how-to-find-growth-without-mega-cap-tech
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nan
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nan
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While a slew of exchange traded funds offer exposure to smaller stocks with growth profiles, investors have long embraced large- and mega-cap equivalents.
That’s consistent with market participants’ long-running biases toward larger companies and perhaps the result of the previous bull market -- one in which big growth stocks were market leaders for years on end. There’s also the comfort familiarity provided by the likes of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and other stocks of that ilk.
However, that doesn’t mean investors can’t locate compelling growth opportunities outside of the large/mega-cap arena. Consider the Invesco NASDAQ Next Gen 100 ETF (QQQJ). QQQJ is a “junior varsity” exchange traded fund in that its holdings are the stocks best positioned to eventually join the Nasdaq-100 Index (NDX) -- the home benchmark for Apple, Microsoft and friends.
The average market value of QQQJ’s 105 components is $18.5 billion. While that skews toward the high end of mid-cap territory or, arguably, the lower end of the large-cap realm, it’s still far below the average market capitalization of the members of the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
In the case of QQQJ, smaller, relatively speaking, could be better because some experts see underappreciated opportunity in the mid-cap arena.
“US Mid Cap Growth appears to be an attractive means of narrowing our portfolio’s Growth underweight after we missed the Mega Cap Growth trade driving the large cap indices during Q1. Its blend of attractive fundamentals and solid growth outlook fit our model portfolio’s quality and defensible growth theme,” wrote Citi strategist Scott Chronert in a recent report.
The $728.7 million QQQJ, which turns three years old in October, was among several mid-cap ETFs highlighted by Chronert. True to its Nasdaq-100 DNA, QQQJ has an obvious growth profile, as highlighted by a 32.63% allocation to the technology sector.
That growth purview is enhanced by a more than 25% weight to healthcare stocks. The bulk of QQQJ’s holdings from that sector are biotech names, which speaks to the ETF’s growth status. Another point in QQQJs’ is holding’s level diversification.
“The combined weight of AAPL + MSFT in the Russell 1000 Growth index is nearing 25%. Each individual weight is over 10%, the first time two names have held that kind of influence in the benchmark using 28-years of data,” Strategas ETF strategist Todd Sohn wrote in new report.
Conversely, QQQJ’s largest holding, which ON Semiconductor (ON), commands a weight of just 2.33%.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There’s also the comfort familiarity provided by the likes of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and other stocks of that ilk. “The combined weight of AAPL + MSFT in the Russell 1000 Growth index is nearing 25%. While a slew of exchange traded funds offer exposure to smaller stocks with growth profiles, investors have long embraced large- and mega-cap equivalents.
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There’s also the comfort familiarity provided by the likes of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and other stocks of that ilk. “The combined weight of AAPL + MSFT in the Russell 1000 Growth index is nearing 25%. While a slew of exchange traded funds offer exposure to smaller stocks with growth profiles, investors have long embraced large- and mega-cap equivalents.
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There’s also the comfort familiarity provided by the likes of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and other stocks of that ilk. “The combined weight of AAPL + MSFT in the Russell 1000 Growth index is nearing 25%. That’s consistent with market participants’ long-running biases toward larger companies and perhaps the result of the previous bull market -- one in which big growth stocks were market leaders for years on end.
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There’s also the comfort familiarity provided by the likes of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and other stocks of that ilk. “The combined weight of AAPL + MSFT in the Russell 1000 Growth index is nearing 25%. QQQJ is a “junior varsity” exchange traded fund in that its holdings are the stocks best positioned to eventually join the Nasdaq-100 Index (NDX) -- the home benchmark for Apple, Microsoft and friends.
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16174.0
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2023-04-26 00:00:00 UTC
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Britain's Warren Buffett Recently Bought Stock in This Major Tech Company. Should You?
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AAPL
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https://www.nasdaq.com/articles/britains-warren-buffett-recently-bought-stock-in-this-major-tech-company.-should-you
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nan
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nan
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It's no secret that Warren Buffett is a huge fan of Apple (NASDAQ: AAPL). Through Berkshire Hathaway, the Oracle of Omaha first purchased shares in the iPhone maker in the first quarter of 2016. This has become one of Buffett's greatest investments, and it represented 44% of Berkshire's portfolio at the end of 2022.
There's another prominent investor across the Atlantic Ocean, known as Britain's Warren Buffett, who is starting to warm up to the popular tech stock as well. U.K. fund manager Terry Smith, through his investment vehicle, Fundsmith, bought Apple stock for the first time in the third quarter last year.
Smith has a wonderful track record, so does his latest purchase mean you should buy shares, too?
Image source: Getty Images.
Hate, then love
Terry Smith wasn't always a fan of Apple. He didn't like how the company was so dependent on iPhone sales for its success, which did represent 56% of overall revenue in the most recent quarter, Q1 2023, which ended Dec. 31. And he didn't like that the business constantly had to upgrade the same product and hope that customers would continue to pay up for it. He concluded that this would be another commoditized consumer hardware failure like Nokia, something Smith knows about well. Nokia also tried to sell itself as an entire ecosystem in the 2000s, and it didn't work out well.
The other concern for Smith was that he believed Apple's past success was largely the result of the genius of Steve Jobs. But after rethinking his views, Smith came to the conclusion that Apple is indeed an exceptional business.
Smith loves companies that have a source of recurring revenue. And that's why he's now fond of Apple. The company's services segment, whose popular offerings include iCloud, Apple Music, and Apple Pay, is doing well. Sales of $20.8 billion were up more than 6% in the latest quarter, when the products segment posted a decline. And services revenue has jumped 63% over the past three years, showcasing monster growth. This segment carries a stellar gross margin in excess of 70%.
This is an ecosystem that attracts customers with its fantastic hardware products and keeps them engaged with its valuable services. Apple, in short, has stickiness and loyalty, with more than 2 billion active devices worldwide. And even more impressive, the company's customer base is more affluent, allowing Apple to flex its pricing power, as this group is willing to pay a premium.
And when it comes to Tim Cook's performance thus far, it's hard to understate his success. Apple's share price is up more than 1,000% since he took over the CEO role in August 2011, thanks to burgeoning sales and profits. He's spearheaded the company's push toward services, while also launching hugely popular hardware products, like the AirPods and the Watch. And Buffett has called Cook a "fantastic manager." That's a pretty good endorsement to have.
Following the right fund managers
Without question, following successful fund managers, specifically by looking at their quarterly 13-F filings, can be an effective strategy for individual investors to boost their portfolio returns. But it's critical that you make sure to pick the right investment managers in the first place -- those that have the same philosophy of putting money to work for the long term. Buffett certainly fits this category.
And Terry Smith undoubtedly falls into this category as well. His fund is known for having extremely low turnover on a yearly basis, with his overarching portfolio management strategy being to buy good companies, not overpay for them, and do nothing. This approach has resulted in an annualized return of 15.8% since Fundsmith's inception. This could be a good sign for other investors to consider buying Apple stock.
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Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's no secret that Warren Buffett is a huge fan of Apple (NASDAQ: AAPL). U.K. fund manager Terry Smith, through his investment vehicle, Fundsmith, bought Apple stock for the first time in the third quarter last year. And even more impressive, the company's customer base is more affluent, allowing Apple to flex its pricing power, as this group is willing to pay a premium.
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It's no secret that Warren Buffett is a huge fan of Apple (NASDAQ: AAPL). U.K. fund manager Terry Smith, through his investment vehicle, Fundsmith, bought Apple stock for the first time in the third quarter last year. His fund is known for having extremely low turnover on a yearly basis, with his overarching portfolio management strategy being to buy good companies, not overpay for them, and do nothing.
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It's no secret that Warren Buffett is a huge fan of Apple (NASDAQ: AAPL). U.K. fund manager Terry Smith, through his investment vehicle, Fundsmith, bought Apple stock for the first time in the third quarter last year. The company's services segment, whose popular offerings include iCloud, Apple Music, and Apple Pay, is doing well.
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It's no secret that Warren Buffett is a huge fan of Apple (NASDAQ: AAPL). U.K. fund manager Terry Smith, through his investment vehicle, Fundsmith, bought Apple stock for the first time in the third quarter last year. Sales of $20.8 billion were up more than 6% in the latest quarter, when the products segment posted a decline.
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16175.0
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2023-04-26 00:00:00 UTC
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POLL-Taiwan seen slipping into recession in Q1
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-seen-slipping-into-recession-in-q1
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nan
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nan
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI
Preliminary Q1 GDP seen at -1.25% y/y (prior qtr -0.41%)
Data due Friday, April 28, after 4 p.m. local time (0800 GMT)
TAIPEI, April 26 (Reuters) - Taiwan's export-dependent economy likely slipped into a recession in the first quarter, a Reuters poll showed on Wednesday, weighed down by sluggish demand for technology products amid global economic woes.
Gross domestic product (GDP) likely fell 1.25% in the January-March period versus a year earlier, the poll of 24 economists showed. The GDP had contracted 0.41% year-on-year in the fourth quarter.
The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of
0.2%.
Exports slid annually for a seventh consecutive month in March, with a prognosis from the government that the downturn may continue until at least the fourth quarter.
"Semiconductor exports are facing a severe downturn due to the ending of the pandemic-related demand, a rise in interest rates, and escalation of U.S.-China tech tensions," according to a DBS research report.
The government has said it expects full-year 2023 growth of 2.12%, its slowest pace in nearly eight years and lower than the 2.45% growth for 2022.
Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N.
Taiwan's preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts.
(Poll compiled by Anant Chandak, Madhumita Gokhale and Carol Lee; Reporting by Faith Hung; Editing by Ben Blanchard and Uttaresh Venkateshwaran)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Gross domestic product (GDP) likely fell 1.25% in the January-March period versus a year earlier, the poll of 24 economists showed. Exports slid annually for a seventh consecutive month in March, with a prognosis from the government that the downturn may continue until at least the fourth quarter.
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Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI Preliminary Q1 GDP seen at -1.25% y/y (prior qtr -0.41%) Data due Friday, April 28, after 4 p.m. local time (0800 GMT) TAIPEI, April 26 (Reuters) - Taiwan's export-dependent economy likely slipped into a recession in the first quarter, a Reuters poll showed on Wednesday, weighed down by sluggish demand for technology products amid global economic woes. The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of 0.2%.
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Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI Preliminary Q1 GDP seen at -1.25% y/y (prior qtr -0.41%) Data due Friday, April 28, after 4 p.m. local time (0800 GMT) TAIPEI, April 26 (Reuters) - Taiwan's export-dependent economy likely slipped into a recession in the first quarter, a Reuters poll showed on Wednesday, weighed down by sluggish demand for technology products amid global economic woes. The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of 0.2%.
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Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. The GDP had contracted 0.41% year-on-year in the fourth quarter. The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of 0.2%.
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16176.0
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2023-04-26 00:00:00 UTC
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LG Display posts 4th consecutive quarterly loss on weak gadget demand
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-4th-consecutive-quarterly-loss-on-weak-gadget-demand
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nan
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nan
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SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KS posted on Wednesday its fourth consecutive quarterly loss, as global demand for electronic devices such as computers and monitors remained depressed amid an uncertain economic climate.
LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier.
The result missed a forecast of 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
($1 = 1,337.2400 won)
(Reporting by Joyce Lee; Editing by Himani Sarkar)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KS posted on Wednesday its fourth consecutive quarterly loss, as global demand for electronic devices such as computers and monitors remained depressed amid an uncertain economic climate. ($1 = 1,337.2400 won) (Reporting by Joyce Lee; Editing by Himani Sarkar) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KS posted on Wednesday its fourth consecutive quarterly loss, as global demand for electronic devices such as computers and monitors remained depressed amid an uncertain economic climate. The result missed a forecast of 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KS posted on Wednesday its fourth consecutive quarterly loss, as global demand for electronic devices such as computers and monitors remained depressed amid an uncertain economic climate. ($1 = 1,337.2400 won) (Reporting by Joyce Lee; Editing by Himani Sarkar) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KS posted on Wednesday its fourth consecutive quarterly loss, as global demand for electronic devices such as computers and monitors remained depressed amid an uncertain economic climate. The result missed a forecast of 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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16177.0
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2023-04-26 00:00:00 UTC
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LG Display posts 4th straight quarterly loss on weak gadget demand
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-4th-straight-quarterly-loss-on-weak-gadget-demand
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nan
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nan
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Adds revenue, share move
SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KSon Wednesday posted its fourth straight quarterly loss, trailing estimates, as global demand for devices like computers and monitors remained depressed amid an uncertain economic climate.
LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier.
The result missed a forecast of a 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
Revenue slumped 32% to 4.4 trillion won, LG Display said.
Shares in LG Display widened losses, falling 4% after the results announcement, versus a 0.2% drop in the wider market .KS11.
($1 = 1,337.2400 won)
(Reporting by Joyce Lee and Heekyong Yang; Editing by Himani Sarkar and Kenneth Maxwell)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. Adds revenue, share move SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KSon Wednesday posted its fourth straight quarterly loss, trailing estimates, as global demand for devices like computers and monitors remained depressed amid an uncertain economic climate. Shares in LG Display widened losses, falling 4% after the results announcement, versus a 0.2% drop in the wider market .KS11.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. The result missed a forecast of a 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. Revenue slumped 32% to 4.4 trillion won, LG Display said.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. Adds revenue, share move SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KSon Wednesday posted its fourth straight quarterly loss, trailing estimates, as global demand for devices like computers and monitors remained depressed amid an uncertain economic climate. ($1 = 1,337.2400 won) (Reporting by Joyce Lee and Heekyong Yang; Editing by Himani Sarkar and Kenneth Maxwell) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LG Display, an Apple Inc AAPL.O supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. Adds revenue, share move SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display 034220.KSon Wednesday posted its fourth straight quarterly loss, trailing estimates, as global demand for devices like computers and monitors remained depressed amid an uncertain economic climate. The result missed a forecast of a 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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16178.0
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2023-04-26 00:00:00 UTC
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Montana governor seeks to broaden bill that would ban TikTok to cover other social media platforms - WSJ
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AAPL
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https://www.nasdaq.com/articles/montana-governor-seeks-to-broaden-bill-that-would-ban-tiktok-to-cover-other-social-media
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nan
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nan
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Adds details, background
April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday.
Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state.
TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law.
The governor's proposed language in the broader bill removes app stores from being held liable for offering such social media apps for downloading in the state, WSJ said, citing an amended draft of the bill.
TikTok is facing growing calls from some U.S. lawmakers to ban the app nationwide over concerns about potential Chinese government influence over the platform.
The short-form video app has repeatedly denied that it has ever shared data with the Chinese government and has said the company would not do so if asked.
The governor's office and TikTok did not immediately respond to a Reuters request for comment.
(Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Edmund Klamann and Michael Perry)
((Jahnavi.Nidumolu@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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TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state.
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TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. The governor's proposed language in the broader bill removes app stores from being held liable for offering such social media apps for downloading in the state, WSJ said, citing an amended draft of the bill.
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TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state.
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TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state.
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16179.0
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2023-04-25 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-25
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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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16180.0
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2023-04-25 00:00:00 UTC
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Apple supplier Corning rides on price hikes to beat profit estimates
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-corning-rides-on-price-hikes-to-beat-profit-estimates
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nan
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nan
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April 25 (Reuters) - Specialty glass maker Corning Inc GLW.N beat profit estimates for the first quarter on Tuesday as price hikes more than made up for higher raw material costs and a demand slowdown.
Shares of the company, whose Gorilla glass is used in smartphones of companies including Apple Inc AAPL.O and Samsung Electronics 005930.KS, rose 2% in premarket trading.
Price increases meant that "profitability improved despite sequentially lower sales, which were impacted by recession-level demand in several key markets and overall weakness in China, as anticipated," CEO and Chairman Wendell Weeks said.
Core gross margin increased by 160 basis points sequentially to 35.2% in the first three months of the year, helping Corning post an adjusted profit of 41 cents per share that was more than expectations of 39 cents, according to Refinitiv data.
The company said it expects the pricing action and a recovery in the display technologies business to drive an increase in second-quarter sales and profitability.
Corning has seen demand slide from its consumer electronics customers in recent months as an uncertain economic outlook prompts consumers to cut back on non-essential spending.
IT research firm Gartner estimates that shipments of personal computers and mobile phones will fall for the second straight year in 2023, with phone shipments slumping to a decade low.
Corning's core sales fell 10% to $3.37 billion in the first quarter, but they were better than estimates of $3.34 billion.
Revenue from its optical communications division fell 6% during the quarter, while sales in specialty materials business, which makes Gorilla glass, declined 18%.
Corning said it expects net sales between $3.4 billion and $3.6 billion for the second quarter, compared with analysts' estimate of $3.58 billion.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta)
((tiyashi.datta@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the company, whose Gorilla glass is used in smartphones of companies including Apple Inc AAPL.O and Samsung Electronics 005930.KS, rose 2% in premarket trading. April 25 (Reuters) - Specialty glass maker Corning Inc GLW.N beat profit estimates for the first quarter on Tuesday as price hikes more than made up for higher raw material costs and a demand slowdown. Price increases meant that "profitability improved despite sequentially lower sales, which were impacted by recession-level demand in several key markets and overall weakness in China, as anticipated," CEO and Chairman Wendell Weeks said.
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Shares of the company, whose Gorilla glass is used in smartphones of companies including Apple Inc AAPL.O and Samsung Electronics 005930.KS, rose 2% in premarket trading. Corning's core sales fell 10% to $3.37 billion in the first quarter, but they were better than estimates of $3.34 billion. Revenue from its optical communications division fell 6% during the quarter, while sales in specialty materials business, which makes Gorilla glass, declined 18%.
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Shares of the company, whose Gorilla glass is used in smartphones of companies including Apple Inc AAPL.O and Samsung Electronics 005930.KS, rose 2% in premarket trading. April 25 (Reuters) - Specialty glass maker Corning Inc GLW.N beat profit estimates for the first quarter on Tuesday as price hikes more than made up for higher raw material costs and a demand slowdown. Corning's core sales fell 10% to $3.37 billion in the first quarter, but they were better than estimates of $3.34 billion.
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Shares of the company, whose Gorilla glass is used in smartphones of companies including Apple Inc AAPL.O and Samsung Electronics 005930.KS, rose 2% in premarket trading. Corning's core sales fell 10% to $3.37 billion in the first quarter, but they were better than estimates of $3.34 billion. Revenue from its optical communications division fell 6% during the quarter, while sales in specialty materials business, which makes Gorilla glass, declined 18%.
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16181.0
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2023-04-25 00:00:00 UTC
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Sleep Easy With These 2 Rock-Solid Dividend Stocks
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AAPL
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https://www.nasdaq.com/articles/sleep-easy-with-these-2-rock-solid-dividend-stocks
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nan
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nan
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There's nothing quite as nasty a surprise as seeing one of your investments slash its dividend. It's basically the same feeling as waking up one day and seeing that you got a pay cut when you were expecting a raise. And to make matters worse, if a company was paying a growing dividend for years, a cut typically signals bad financial health that'll be slow to dissipate.
On the bright side, there are quite a few businesses that have the financial stability and long-term growth prospects necessary to keep paying out a solid dividend to shareholders for decades on end. Here are two of the most solid payers on the market right now.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is among the most solid dividend stocks out there. As one of the largest healthcare businesses in the world, with a vast and heavily diversified base of revenue, it isn't too hard to appreciate why it could make for a decent and fairly safe investment.
In 2022, its sales were $43.7 billion, and it generated $6.9 billion in net income along the way. To accomplish that, it sold all manner of diagnostic tests, surgical tools, medical nutrition products, and even medical devices like glucose monitors. And because demand for those goods is fairly consistent from year to year, and slowly growing over time as the healthcare sector expands, Abbott was able to grow its annual free cash flow (FCF) by an average of 11.5% annually over the last 10 years, topping $7.8 billion in 2022.
At the same time, part of Abbott's stability as an investment comes from the fact that many of its customers can't do without its products. Operating rooms can't operate if they don't purchase the company's stents, so the revenue is almost guaranteed to recur. And that makes it easy to predict that this business will continue to be around and flourishing in the future.
The company has a habit of returning more and more capital to its shareholders over time. Since April 2013, its dividend has risen by 264%, and it has a 51-year streak of hiking that payment. Its payout ratio is only 48%, so even if its earnings take a serious hit, it'll still have more than enough money coming in to keep paying investors. And its forward dividend yield is a respectable 2%.
The point is that you don't need to worry about its dividend cratering anytime soon.
2. Apple
Apple (NASDAQ: AAPL) probably isn't the first stock to come to mind for dividend investing, but it's doubtlessly one of the safer investments out there.
As its branded computers, tablets, phones, and software packages are some of the most recognizable and most sought-after in the world, its customers keep coming back again and again, which is how it keeps stacking an average of 25.4% onto its top line every year over the last 20 years, exceeding a whopping $394 billion in 2022.
What's more, as customers integrate Apple products into more and more facets of their lives, the company's software ecosystem helps them to derive more value from their purchases by integrating data across their devices. For example, people who own iPhones can synchronize their applications with their iPad, and they can also use their iPad as an extra screen for their MacBook -- and their MacBook can synchronize their contacts from their iPhone, etc.
That means it effectively has (at least) two powerful competitive advantages in play: high costs for customers to defect to a competitor and a valuable brand that elicits customer loyalty on average. It's no wonder its profit margin is a robust 24.5%.
Furthermore, Apple's payout ratio is a scant 15%, meaning that its earnings could literally be cut in half overnight and it still wouldn't be under a lick of financial pressure to slash the dividend. Sure, its dividend yield is a laughable 0.5%, but you can count on it to get paid into your account no matter what.
Still, while Apple's dividend is beyond pretty much any threat, the stock itself does have some risk right now -- from China. Its manufacturing facilities are largely concentrated there, which means that geopolitical risk could cause some severe turbulence.
But the company is already in the process of diversifying its manufacturing partners into other regions, so this risk is likely to lessen.
10 stocks we like better than Abbott Laboratories
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 Abbott Laboratories 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 10, 2023
Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) probably isn't the first stock to come to mind for dividend investing, but it's doubtlessly one of the safer investments out there. And to make matters worse, if a company was paying a growing dividend for years, a cut typically signals bad financial health that'll be slow to dissipate. As one of the largest healthcare businesses in the world, with a vast and heavily diversified base of revenue, it isn't too hard to appreciate why it could make for a decent and fairly safe investment.
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Apple Apple (NASDAQ: AAPL) probably isn't the first stock to come to mind for dividend investing, but it's doubtlessly one of the safer investments out there. And to make matters worse, if a company was paying a growing dividend for years, a cut typically signals bad financial health that'll be slow to dissipate. Abbott Laboratories Abbott Laboratories (NYSE: ABT) is among the most solid dividend stocks out there.
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Apple Apple (NASDAQ: AAPL) probably isn't the first stock to come to mind for dividend investing, but it's doubtlessly one of the safer investments out there. Abbott Laboratories Abbott Laboratories (NYSE: ABT) is among the most solid dividend stocks out there. And because demand for those goods is fairly consistent from year to year, and slowly growing over time as the healthcare sector expands, Abbott was able to grow its annual free cash flow (FCF) by an average of 11.5% annually over the last 10 years, topping $7.8 billion in 2022.
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Apple Apple (NASDAQ: AAPL) probably isn't the first stock to come to mind for dividend investing, but it's doubtlessly one of the safer investments out there. And to make matters worse, if a company was paying a growing dividend for years, a cut typically signals bad financial health that'll be slow to dissipate. At the same time, part of Abbott's stability as an investment comes from the fact that many of its customers can't do without its products.
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16182.0
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2023-04-25 00:00:00 UTC
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Why Apple's Expansion Into India Is a Great Move
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AAPL
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https://www.nasdaq.com/articles/why-apples-expansion-into-india-is-a-great-move
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nan
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nan
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Apple (NASDAQ: AAPL) has managed an incredible growth story and is worth more than $2 trillion, making it the most valuable company in the world. As a company gets larger, growing at the same pace gets much harder as growth opportunities get exhausted. For a company the size of Apple, it may seem like it's running out of growth opportunities.
Thankfully for Apple investors, there's still room for the business to get bigger. For example, earlier this month, the company launched its first store in India. Here's why continuing efforts to expand into that emerging market will end up being a great move for the tech giant.
India's economy offers growth opportunities for Apple
A big opportunity for Apple is global expansion. Of the $117 billion in revenue it generated in the last three months of 2022, $77 billion came from the Americas and Europe. Greater China brought in just under $24 billion. The remaining markets, Japan and the "Rest of Asia Pacific" region, brought in just over $16 billion and represented 14% of total revenue. India is an insignificant market for Apple right now and is included within its European segment.
But India, one of the largest economies in the world, can open up some big growth potential for Apple and further diversify its global operations. While Apple's growth was strong during the early stages of the pandemic, things have begun to slow down for the company and it could certainly use a growth catalyst.
AAPL Revenue (Quarterly YoY Growth) data by YCharts
Apple is already planning to make India a big part of its manufacturing
In an effort to diversify and lessen its dependence on China, Apple is planning to manufacture more of its products in India. The company plans to make up to one-quarter of its iPhones in India by 2025. Other tech companies are also looking to India as a manufacturing hub, including Alphabet, which plans to make some of its Pixel phones in the country.
Making iPhones in India can make it easier for Apple to offer its products at lower prices there as shipping costs would be minimal and tariffs wouldn't apply. It would also allow the company to more easily grow its market share in the country.
Apple Pay Later could make products more affordable in markets like India
Opening stores in India makes a lot more sense for Apple now that the company has also launched Apple Pay Later, which allows Apple Pay users to spread the cost of their purchases into four payments while incurring no interest and fees. The company introduced the service in the U.S. earlier this year. If it proves to be successful, it's possible for Apple to expand that service and offer it in India, which could make its products and services more affordable in the market.
Although it's still in the early stages, buy now, pay later (BNPL) services have been on the rise in recent years and present a significant growth opportunity. Analysts from Grand View Research project that there were over $200 billion BNPL transactions in 2022. And the market for BNPL will grow at a compound annual growth rate of 26.1% until 2030, so there's a big incentive for Apple to not miss out on this opportunity. By reaching a broader and more diverse customer base, Apple can unlock even more growth opportunities in the future.
Is Apple stock a buy?
Apple's business is already worth a whopping $2.6 trillion, but given the company's vast ecosystem that includes music, streaming, fitness, savings accounts, and many other services, the more users that it can get using iPhones and iPads, the more potential there is for the business to multiply that revenue in the future. And India is a fantastic opportunity for the business to pursue in the long run, especially as it ramps up manufacturing there and if it makes Apple Pay Later available to Indian customers.
While its growth rate has been slowing down in recent quarters, expanding into India could help the company accelerate its top line. And that's why for long-term investors, Apple remains a top tech stock to buy and hold.
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 April 24, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has managed an incredible growth story and is worth more than $2 trillion, making it the most valuable company in the world. AAPL Revenue (Quarterly YoY Growth) data by YCharts Apple is already planning to make India a big part of its manufacturing In an effort to diversify and lessen its dependence on China, Apple is planning to manufacture more of its products in India. Although it's still in the early stages, buy now, pay later (BNPL) services have been on the rise in recent years and present a significant growth opportunity.
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AAPL Revenue (Quarterly YoY Growth) data by YCharts Apple is already planning to make India a big part of its manufacturing In an effort to diversify and lessen its dependence on China, Apple is planning to manufacture more of its products in India. Apple (NASDAQ: AAPL) has managed an incredible growth story and is worth more than $2 trillion, making it the most valuable company in the world. India's economy offers growth opportunities for Apple A big opportunity for Apple is global expansion.
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AAPL Revenue (Quarterly YoY Growth) data by YCharts Apple is already planning to make India a big part of its manufacturing In an effort to diversify and lessen its dependence on China, Apple is planning to manufacture more of its products in India. Apple (NASDAQ: AAPL) has managed an incredible growth story and is worth more than $2 trillion, making it the most valuable company in the world. India's economy offers growth opportunities for Apple A big opportunity for Apple is global expansion.
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AAPL Revenue (Quarterly YoY Growth) data by YCharts Apple is already planning to make India a big part of its manufacturing In an effort to diversify and lessen its dependence on China, Apple is planning to manufacture more of its products in India. Apple (NASDAQ: AAPL) has managed an incredible growth story and is worth more than $2 trillion, making it the most valuable company in the world. India's economy offers growth opportunities for Apple A big opportunity for Apple is global expansion.
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16183.0
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2023-04-25 00:00:00 UTC
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SPLG, TSL: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/splg-tsl%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 13,800,000 units, or a 4.2% increase week over week. Among the largest underlying components of SPLG, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the TSL ETF, which added 110,000 units, for a 39.3% increase in outstanding units.
VIDEO: SPLG, TSL: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 13,800,000 units, or a 4.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the TSL ETF, which added 110,000 units, for a 39.3% increase in outstanding units. VIDEO: SPLG, TSL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 13,800,000 units, or a 4.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the TSL ETF, which added 110,000 units, for a 39.3% increase in outstanding units. VIDEO: SPLG, TSL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 13,800,000 units, or a 4.2% increase week over week. Among the largest underlying components of SPLG, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the TSL ETF, which added 110,000 units, for a 39.3% increase in outstanding units.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 13,800,000 units, or a 4.2% increase week over week. Among the largest underlying components of SPLG, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the TSL ETF, which added 110,000 units, for a 39.3% increase in outstanding units.
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16184.0
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2023-04-25 00:00:00 UTC
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Why Snap May Surprise Investors This Week
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AAPL
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https://www.nasdaq.com/articles/why-snap-may-surprise-investors-this-week
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nan
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nan
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Snap (NYSE: SNAP) announces earnings this week, and the company continues to face pressure to lower costs and improve revenue. But a new product called Snapchat+ is performing better than expected and could drive the company's revenue growth as soon as this quarter. Travis Hoium highlights what there is to be hopeful for in the video below.
*Stock prices used were end-of-day prices of April 22, 2023. The video was published on April 24, 2023.
10 stocks we like better than Snap
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 Snap 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 April 24, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Snap. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But a new product called Snapchat+ is performing better than expected and could drive the company's revenue growth as soon as this quarter. 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 April 24, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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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 April 24, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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10 stocks we like better than Snap 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. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Travis Hoium highlights what there is to be hopeful for in the video below. Travis Hoium has positions in Apple and Snap. Their opinions remain their own and are unaffected by The Motley Fool.
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16185.0
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2023-04-25 00:00:00 UTC
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Nokia says draft EU patent rules one-sided, will undermine Europe
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AAPL
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https://www.nasdaq.com/articles/nokia-says-draft-eu-patent-rules-one-sided-will-undermine-europe
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nan
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nan
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By Foo Yun Chee
BRUSSELS, April 25 (Reuters) - EU draft rules aimed at staving off spats over patents essential to key technologies for telecoms equipment and connected cars appear to put the onus and cost on patent owners, which could undermine Europe's leadership in such areas, Nokia said.
The comments from the Finnish telecoms equipment maker, which makes 40% of its revenues from its portfolio of standard essential patents (SEPs), come two days before the European Commission is scheduled to present the draft rules.
Under the proposal seen by Reuters, patent holders are required to register their patents with the EU Intellectual Property Office (EUIPO) if they want to charge patent fees or take legal action.
EUIPO will also oversee the process to determine fair, reasonable and non-discriminatory (FRAND) royalties, which should be concluded within nine months.
The proposal is unbalanced and ignores a key problem for patent owners, said Nokia's NOKIA.HE head of IP policy Collette Rawnsley.
"The leaked draft regulation appears one-sided with additional obligations, burdens and costs falling on SEP owners rather than implementers," she told Reuters in an interview.
"Unfortunately, there is nothing in the proposal to address the issue of hold-out, where bad faith implementers avoid or delay taking a licence and paying for innovative technology that they are using."
She said Europe, currently home to leaders in cellular standards, could even lose its lead under the draft rules.
"EU regulatory intervention and changes to the framework for SEP licensing risk making European forums for standardisation less attractive. This risks undermining European leadership in these critical technologies," Rawnsley said.
She dismissed regulator's concerns of patent spats which in the previous decade involved Apple AAPL.O, Samsung 005930.KS, Nokia, Microsoft MSFT.O and others.
"The majority of patent licensing agreements are agreed amicably. Litigation is rare and always a last resort. Regrettably, litigation is sometimes necessary to get recalcitrant implementers to the table to negotiate in good faith a FRAND licence," she said.
(Reporting by Foo Yun Chee Editing by Mark Potter)
((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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She dismissed regulator's concerns of patent spats which in the previous decade involved Apple AAPL.O, Samsung 005930.KS, Nokia, Microsoft MSFT.O and others. The comments from the Finnish telecoms equipment maker, which makes 40% of its revenues from its portfolio of standard essential patents (SEPs), come two days before the European Commission is scheduled to present the draft rules. "The leaked draft regulation appears one-sided with additional obligations, burdens and costs falling on SEP owners rather than implementers," she told Reuters in an interview.
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She dismissed regulator's concerns of patent spats which in the previous decade involved Apple AAPL.O, Samsung 005930.KS, Nokia, Microsoft MSFT.O and others. By Foo Yun Chee BRUSSELS, April 25 (Reuters) - EU draft rules aimed at staving off spats over patents essential to key technologies for telecoms equipment and connected cars appear to put the onus and cost on patent owners, which could undermine Europe's leadership in such areas, Nokia said. The comments from the Finnish telecoms equipment maker, which makes 40% of its revenues from its portfolio of standard essential patents (SEPs), come two days before the European Commission is scheduled to present the draft rules.
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She dismissed regulator's concerns of patent spats which in the previous decade involved Apple AAPL.O, Samsung 005930.KS, Nokia, Microsoft MSFT.O and others. By Foo Yun Chee BRUSSELS, April 25 (Reuters) - EU draft rules aimed at staving off spats over patents essential to key technologies for telecoms equipment and connected cars appear to put the onus and cost on patent owners, which could undermine Europe's leadership in such areas, Nokia said. The comments from the Finnish telecoms equipment maker, which makes 40% of its revenues from its portfolio of standard essential patents (SEPs), come two days before the European Commission is scheduled to present the draft rules.
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She dismissed regulator's concerns of patent spats which in the previous decade involved Apple AAPL.O, Samsung 005930.KS, Nokia, Microsoft MSFT.O and others. By Foo Yun Chee BRUSSELS, April 25 (Reuters) - EU draft rules aimed at staving off spats over patents essential to key technologies for telecoms equipment and connected cars appear to put the onus and cost on patent owners, which could undermine Europe's leadership in such areas, Nokia said. The comments from the Finnish telecoms equipment maker, which makes 40% of its revenues from its portfolio of standard essential patents (SEPs), come two days before the European Commission is scheduled to present the draft rules.
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16186.0
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2023-04-25 00:00:00 UTC
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Notable Tuesday Option Activity: AAPL, GS, ATVI
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AAPL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-aapl-gs-atvi
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 436,684 contracts has been traded thus far today, a contract volume which is representative of approximately 43.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.3% of AAPL's average daily trading volume over the past month, of 51.2 million shares. Especially high volume was seen for the $167.50 strike call option expiring April 28, 2023, with 55,809 contracts trading so far today, representing approximately 5.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
Goldman Sachs Group Inc (Symbol: GS) options are showing a volume of 16,972 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 79% of GS's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $345 strike call option expiring April 28, 2023, with 921 contracts trading so far today, representing approximately 92,100 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $345 strike highlighted in orange:
And Activision Blizzard, Inc. (Symbol: ATVI) saw options trading volume of 45,205 contracts, representing approximately 4.5 million underlying shares or approximately 73.6% of ATVI's average daily trading volume over the past month, of 6.1 million shares. Particularly high volume was seen for the $80 strike put option expiring May 19, 2023, with 11,363 contracts trading so far today, representing approximately 1.1 million underlying shares of ATVI. Below is a chart showing ATVI's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for AAPL options, GS options, or ATVI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Warren Buffett Dividend Stocks
IEFA market cap history
SPXU Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $167.50 strike call option expiring April 28, 2023, with 55,809 contracts trading so far today, representing approximately 5.6 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 436,684 contracts has been traded thus far today, a contract volume which is representative of approximately 43.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.3% of AAPL's average daily trading volume over the past month, of 51.2 million shares.
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Especially high volume was seen for the $167.50 strike call option expiring April 28, 2023, with 55,809 contracts trading so far today, representing approximately 5.6 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 436,684 contracts has been traded thus far today, a contract volume which is representative of approximately 43.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.3% of AAPL's average daily trading volume over the past month, of 51.2 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 436,684 contracts has been traded thus far today, a contract volume which is representative of approximately 43.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.3% of AAPL's average daily trading volume over the past month, of 51.2 million shares. Especially high volume was seen for the $167.50 strike call option expiring April 28, 2023, with 55,809 contracts trading so far today, representing approximately 5.6 million underlying shares of AAPL.
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Especially high volume was seen for the $167.50 strike call option expiring April 28, 2023, with 55,809 contracts trading so far today, representing approximately 5.6 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 436,684 contracts has been traded thus far today, a contract volume which is representative of approximately 43.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.3% of AAPL's average daily trading volume over the past month, of 51.2 million shares.
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16187.0
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2023-04-25 00:00:00 UTC
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Will Lower Ad Revenues Hurt Meta Platforms (META) Q1 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-lower-ad-revenues-hurt-meta-platforms-meta-q1-earnings
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nan
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nan
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Meta Platforms’ META first-quarter 2023 results, set to be reported on Apr 26, are expected to suffer from weak advertising revenues.
The Zacks Consensus Estimate for first-quarter advertising is pegged at $26.59 billion, down 1.5% year over year. Our estimate stands at $25.35 billion, down 6.1% year over year.
In the fourth quarter of 2022, advertising revenues (99.4% of Family of Apps revenues) decreased 4.2% year over year to $31.25 billion and accounted for 97.2% of revenues.
Ad targeting-related headwinds are expected to have affected the ad-revenue growth rate in the to-be-reported quarter. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes has also become difficult, thereby hurting its ad revenue growth.
Meta Platforms, Inc. Revenue (TTM)
Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote
Moreover, Meta’s first-quarter results are expected to be adversely affected by higher interest expenses, raging inflation and challenging macroeconomic conditions globally.
Click here to know how Meta’s overall first-quarter performance is likely to be.
AI, ML & Metaverse Driving Prospects
Meta, which currently carries a Zacks Rank #3 (Hold), is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse created using virtual and augmented reality. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moreover, Instagram’s growing popularity in international markets, particularly in Asia, has been helping Meta expand its user base. Much of it can be attributed to the growing popularity of short-form videos, Reels on Instagram. Reels have been attracting Gen-Z to the platform amid competition from Snapchat, Twitter and TikTok.
To increase revenues, Meta has been growing video monetization, especially in short-form videos like Reels using AI and ML.
Meta’s expanding partner base, which includes the like of NVIDIA NVDA and Advanced Micro Devices AMD, is noteworthy in this regard.
AMD collaborated with META as an ecosystem partner to build a metaverse-ready radio access unit. AMD’s radio chip Xilinx Zynq UltraScale RFSoC will be utilized to develop multiple Evenstar radio units to expand 4G/5G mobile network infrastructure, which is crucial for the metaverse.
Meta also collaborated with NVIDIA to build an AI research supercomputer, which is helping its researchers to build different AI models crucial for building the metaverse.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter earnings stands at $1.96 per share, unchanged over the past 30 days but down 27.94% from the figure reported in the year-ago quarter.
Our first-quarter earnings estimate stands at $1.73 per share, indicating a 36.6% year-over-year decline.
The consensus estimate for first-quarter revenues is currently pegged at $26.01 billion, indicating a decline of 6.8% from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s expanding partner base, which includes the like of NVIDIA NVDA and Advanced Micro Devices AMD, is noteworthy in this regard.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Meta Platforms, Inc. Revenue (TTM) Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote Moreover, Meta’s first-quarter results are expected to be adversely affected by higher interest expenses, raging inflation and challenging macroeconomic conditions globally.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Meta Platforms’ META first-quarter 2023 results, set to be reported on Apr 26, are expected to suffer from weak advertising revenues.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter advertising is pegged at $26.59 billion, down 1.5% year over year.
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16188.0
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2023-04-25 00:00:00 UTC
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Google, Amazon, Meta, Microsoft, 15 others subject to EU content rules
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AAPL
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https://www.nasdaq.com/articles/google-amazon-meta-microsoft-15-others-subject-to-eu-content-rules-0
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nan
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nan
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By Foo Yun Chee
BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday.
The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE.
Under the landmark rules known as the Digital Services Act (DSA), the companies, all with more than 45 million monthly active users, are required to do risk management, conduct external and independent auditing, share data with authorities and researchers and adopt a code of conduct.
"We consider these 19 online platforms and search engines have become systematically relevant and have special responsibilities to make the internet safer," Breton told reporters.
He said he was checking to see whether another four to five companies fall under the DSA, with a decision expected in the next few weeks.
(Reporting by Foo Yun Chee Editing by Christina Fincher)
((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, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. Under the landmark rules known as the Digital Services Act (DSA), the companies, all with more than 45 million monthly active users, are required to do risk management, conduct external and independent auditing, share data with authorities and researchers and adopt a code of conduct. "We consider these 19 online platforms and search engines have become systematically relevant and have special responsibilities to make the internet safer," Breton told reporters.
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By Foo Yun Chee BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. (Reporting by Foo Yun Chee Editing by Christina Fincher) ((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, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. Under the landmark rules known as the Digital Services Act (DSA), the companies, all with more than 45 million monthly active users, are required to do risk management, conduct external and independent auditing, share data with authorities and researchers and adopt a code of conduct.
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By Foo Yun Chee BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. Under the landmark rules known as the Digital Services Act (DSA), the companies, all with more than 45 million monthly active users, are required to do risk management, conduct external and independent auditing, share data with authorities and researchers and adopt a code of conduct.
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16189.0
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2023-04-25 00:00:00 UTC
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3 Stocks That Turned $1,000 Into $221,610 (or More) In 20 Years
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-turned-%241000-into-%24221610-or-more-in-20-years
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nan
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nan
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The S&P 500 (SNPINDEX: ^GSPC) market index has grown at a compound average rate of 10% over the last 20 years. If you invested $1,000 in an S&P 500-tracking index fund two decades ago and reinvested your dividends in more stock along the way, you'd have $6,681 today. That's a solid investment, staying far ahead of inflation and taking good care of your wealth.
Woo-hoo!
However, as impressive as that long-term return may be, it pales in comparison to what could have been achieved with a bit of savvy foresight. Had you been able to spot some of the hottest growth stories of recent times at their earliest stages and invested in them before they took off, that $1,000 could have snowballed into a small fortune? To wit:
MNST Total Return Level data by YCharts
That solid return of $6,681 may be hard to spot in this chart. It's the straight line at the bottom, easily confused with the diagram's x-axis. Again, I'm talking about a really nice gain as the S&P 500 doubled your money by 2013, doubled it again in 2019, and climbed another 67% higher from that lofty plateau.
I'm just saying that an elite handful of then-unknown growth stocks made the broader market's big gains look trivial in comparison.
But most people did not make big investments in Monster Energy (NASDAQ: MNST), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL) 20 years ago. What were the signs that something special was brewing in these three companies, way back in 2003?
Apple in 2003: classic iMacs and newfangled iPods
The mobile computing powerhouse we know as Wall Street's most valuable company today was nothing of the sort in 2003.
Four years before the first iPhone, Cupertino was all about the Macintosh family of personal computers. iMacs, PowerBooks, and Power Macintosh towers accounted for $4.5 billion of the company's $6.2 billion in full-year revenues that year. Software and services added up to just 11% of the annual top-line sales.
I mean, mobile devices were barely a blip on Apple's radar. You might recall (if you're old like me) U2 cross-promoting its new single, Vertigo, in an iPod marketing event that helped Apple light a fire under its music-playing gadget's sales trajectory. That event helped Apple's share price soar more than 420% higher in two years as Apple's revenues nearly doubled.
But you couldn't base your 2003 investment on Bono's helpful collab. It hadn't happened yet. If you bought Apple stock 18 years ago instead, with the iPod craze in full swing, but you'd have to settle for a total return of $152,940 on a $1,000 investment. Not too shabby, but a far cry from what I showed you in that chart.
Moreover, the company didn't look like a future winner in 2003. With the aftershocks of the dot-com crash still weighing down the tech sector, Apple's operating income was printed in red ink and nobody knew that the iPod and iPhone ideas would create a market monster.
So if you were buying Apple stock two decades ago, that might have been a stroke of genius or a flash of blind luck. Either way, I can't argue with the results. Visionary leaders like Steve Jobs can pull stupendous growth out of thin air sometimes.
Hansen Natural in 2003: a tiny juice company leans into energy drinks
Monster Beverage didn't adopt its current name until 2012. 20 years ago, the Monster line of caffeine-laced energy drinks had been on the market for just one year. It was a promising new idea, hitting the ground running with strong sales growth, but Monster generated less than 12% of Hansen's total sales in 2002. The company was trying a scattershot strategy to expand its core offerings of natural sodas and fruit juices.
As it turns out, energy drinks became a massive growth story and Monster quickly pushed into a leading role. Mind you, it was a crowded market even in those early days, dominated by Red Bull and featuring long-running rival brands like Rockstar or Amp. Its products stood out from the pack thanks to a picture-perfect brand name, clever marketing, and larger cans than many of the other energy-drink alternatives.
So if you kept a close eye on Hansen Natural in 2003, you may indeed have seen how this long-term story could play out. However, you probably weren't.
You see, Hansen Natural was small even by penny-stock standards. The company was worth $42 million, just one of the many thousand has-beens and wannabes that always hover below the radar of most investors. A few of these tiny companies make it big, as evidenced by Monster-née-Hansen here, but most don't last long and will do bad things to your invested cash.
So if you missed the signs of Hansen Natural evolving into an energy drink titan and a wealth-boosting investment, you are not alone. And I'm sure we are missing the next Monster-grade growth story right now, masked but thousands of future failures in the penny stock swamps. That's OK. I'll gladly wait until the next generation's biggest winner grows up a bit.
Netflix: did you even have a DVD player in 2003?
Here's another microcap from way back when.
Netflix shipped its first red DVD mailer in 1998 and entered the stock market in 2002. By April 2003, the company boasted $178 million in annual sales with a market cap of $576 million. That's large enough to raise some interest, but still too small to earn widespread coverage. To the best of my knowledge, we Fools started covering this stock four months after the two-decades-ago calendar mark we're working with here. And one of our first reports involved the massive short-selling interest Netflix shares had attracted already.
In other words, lots of people didn't see the future king of home entertainment in Netflix. They expected established giants like Blockbuster and Hollywood Video to put this outlandish challenger to bed, and probably quite quickly. Forget the "Albanian army" quips of 2010 -- Netflix hardly looked like a threat to the security team of Albany Mall.
That being said, Netflix was probably the easiest future winner to catch in 2003. Hansen was too small to notice and Apple was just another midcap with flattish sales and negative earnings. Netflix, on the other hand, more than doubled its sales in 2002 and served its first full million active subscribers in the first quarter of 2003.
Then-CEO Reed Hastings sure expected the good times to keep rolling:
"Netflix has and will continue to dominate the category we created," he stated in the Q4 2002 earnings release.
Of course, you would expect that bravado from any microcap's founder and leader and most investors didn't take that vision at face value. But Netflix really did dominate the DVD-by-mail market it created, and then replaced it with an equally successful digital streaming service on a global scale.
I didn't catch wind of Netflix's game-changing ideas until 2006, when I did a deep dive into the video-rental industry. No worries -- Netflix still ended up making me more money than any other stock over the years and I still recommend buying it today. This evolving entertainment empire still has a lot of growing left to do.
10 stocks we like better than Netflix
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Netflix wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 24, 2023
Anders Bylund has positions in Netflix. The Motley Fool has positions in and recommends Apple, Monster Beverage, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But most people did not make big investments in Monster Energy (NASDAQ: MNST), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL) 20 years ago. You might recall (if you're old like me) U2 cross-promoting its new single, Vertigo, in an iPod marketing event that helped Apple light a fire under its music-playing gadget's sales trajectory. With the aftershocks of the dot-com crash still weighing down the tech sector, Apple's operating income was printed in red ink and nobody knew that the iPod and iPhone ideas would create a market monster.
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But most people did not make big investments in Monster Energy (NASDAQ: MNST), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL) 20 years ago. Hansen Natural in 2003: a tiny juice company leans into energy drinks Monster Beverage didn't adopt its current name until 2012. The Motley Fool has positions in and recommends Apple, Monster Beverage, and Netflix.
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But most people did not make big investments in Monster Energy (NASDAQ: MNST), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL) 20 years ago. If you bought Apple stock 18 years ago instead, with the iPod craze in full swing, but you'd have to settle for a total return of $152,940 on a $1,000 investment. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Anders Bylund has positions in Netflix.
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But most people did not make big investments in Monster Energy (NASDAQ: MNST), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL) 20 years ago. 20 years ago, the Monster line of caffeine-laced energy drinks had been on the market for just one year. However, you probably weren't.
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16190.0
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2023-04-25 00:00:00 UTC
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Is iShares Paris-Aligned Climate MSCI USA ETF (PABU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-paris-aligned-climate-msci-usa-etf-pabu-a-strong-etf-right-now-0
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nan
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nan
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Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is sponsored by Blackrock. It has amassed assets over $1.11 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. PABU, before fees and expenses, seeks to match the performance of the MSCI USA CLMT PARIS ALGN BNC EXT SLCT ID.
The MSCI USA Climate Paris Aligned Benchmark Extended Select Index composed of U.S. large & mid-capitalization stocks designed to be compatible with the objectives of the Paris Agreement by following a decarbonization trajectory, reducing exposure to climate-related transition & physical risks & increasing exposure to companies favourably positioned for the transition to a low-carbon economy.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.10% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.20%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 30.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Its top 10 holdings account for approximately 30.65% of PABU's total assets under management.
Performance and Risk
The ETF return is roughly 9.67% so far this year and was up about 0% in the last one year (as of 04/25/2023). In the past 52-week period, it has traded between $38.63 and $47.91.
With about 309 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Paris-Aligned Climate MSCI USA ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $7.43 billion in assets, iShares ESG Aware MSCI USA ETF has $13.92 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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16191.0
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2023-04-25 00:00:00 UTC
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Warren Buffett's Berkshire Could Join Apple, Microsoft, Alphabet, and Amazon in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-berkshire-could-join-apple-microsoft-alphabet-and-amazon-in-the-%241
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nan
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Warren Buffett's illustrious career as an investor began at age 11. He has succeeded through multiple stock market cycles, economic crashes, presidents, and even geopolitical conflicts.
Buffett was around when car giant General Motors became the world's first $10 billion company in 1955. He also watched industrial conglomerate General Electric amass a $100 billion market capitalization in 1995 -- the first ever company to do so.
And when Apple (NASDAQ: AAPL) became the world's first $1 trillion company in 2018, he had a front-row seat because his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company is one of the tech giant's largest investors.
Apple has since been joined by Microsoft, Amazon, and Google parent Alphabet in the $1 trillion club.
But there might be one more member of that exclusive circle in the future. Buffett's very own Berkshire Hathaway is on a clearer trajectory toward a $1 trillion valuation than almost any company in the market today, and here's why.
Image source: The Motley Fool.
It all started in 1965
Berkshire Hathaway was formed in 1929 and operated in the textiles industry. But it was going through a difficult time in 1965, when Buffett stepped in to acquire a controlling stake for $8.3 million. Since taking over, he has transformed it into a holding company that now owns 52 different stock securities spanning the banking, energy, consumer discretionary, media, and technology sectors.
Berkshire's total portfolio is worth $343 billion, including $128 billion in cash and equivalents that it's ready to deploy when the next attractive opportunity comes along.
The company's incredible run of success in Buffett's 58 years at the helm stems from a relatively simple set of principles.
He tends only to invest in businesses he understands. He also prefers those generating a profit (as opposed to high-growth companies reporting losses), and that's especially true if they have a strong balance sheet. A company also gets a tick of approval if it's returning money to shareholders through dividends and share repurchases.
However, Buffett's most important weapon is time. When he buys a stock for Berkshire, his intention is to hold it for decades, if not forever. Berkshire's portfolio offers plenty of examples; it has owned shares in Coca-Cola since 1988, American Express since 1998, and Procter & Gamble since 2005 -- though he acquired those shares when Procter bought razor maker Gillette, which Buffett owned since 1989.
Buffett preaches diversification, but Berkshire's portfolio is highly concentrated
In 2007, Buffett famously made a $1 million bet with asset management firm Protege Partners that index funds would outperform a basket of hedge funds over a 10-year period. Index funds are diversified and use buy-and-hold strategies, which Buffett likes. Hedge funds are actively managed, meaning they try to beat the broader market by focusing on a narrow set of investment ideas.
Buffett won convincingly. The Vanguard 500 Index Fund Admiral Shares, which he selected, returned 7.1% compounded annually over the course of the wager, whereas the basket of hedge funds selected by Protege Partners averaged just 2.2%.
But while Berkshire appears to be diversified, given it owns 52 securities, the value of its portfolio is actually concentrated in just a handful of stocks. In fact, its position in Apple stock alone makes up 44% of the portfolio's value.
Berkshire bought its first share of Apple in 2016 and it was also a net buyer in 2017, 2018, and 2022. Not only has Apple surpassed a $1 trillion valuation since that initial purchase, but it's now the world's largest company with a $2.6 trillion market capitalization. Berkshire's current position amounts to 5.8% of the tech giant's outstanding shares, worth $151 billion.
Apple has all the attributes of a Buffett stock. In fiscal 2022 (ended Sept. 24), Apple generated $99.8 billion in net income. It returned $14.8 billion to shareholders through dividends, and another $89.4 billion through share buybacks during that year. The company's brand has stood the test of time, and many consumers would consider products like the iPhone smartphone as essential.
Berkshire is on track to reach a $1 trillion valuation within two years
Between 1965 and 2022, Berkshire Hathaway's Class A stock has grown in value at a compound annual rate of 19.8%. That's twice the 9.9% annual return of the benchmark S&P 500 stock market index over the same period, but thanks to the effects of compounding, Berkshire's outperformance is completely mind-blowing in dollar terms.
A $1,000 investment in the S&P 500 index in 1965 would've been worth $247,080 at the end of 2022. But $1,000 invested in Berkshire stock in 1965 would've grown into a whopping $39.8 million over the same period!
Few other public companies have achieved such a staggering return, so it's little wonder Berkshire has been an active investor in its own stock. As my Motley Fool colleague Sean Williams points out, the company has repurchased $66 billion worth of its shares in the past five years alone.
Berkshire is currently valued at $716 billion, which is within sight of the $1 trillion mark. If its stock continues to average an annual return of 19.8%, it will surpass the exclusive milestone within the next two years. But even if it doesn't get there within that time frame, it appears inevitable it will over the long run.
10 stocks we like better than Berkshire Hathaway
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 Berkshire Hathaway 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 April 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends General Motors and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And when Apple (NASDAQ: AAPL) became the world's first $1 trillion company in 2018, he had a front-row seat because his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company is one of the tech giant's largest investors. Since taking over, he has transformed it into a holding company that now owns 52 different stock securities spanning the banking, energy, consumer discretionary, media, and technology sectors. Hedge funds are actively managed, meaning they try to beat the broader market by focusing on a narrow set of investment ideas.
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And when Apple (NASDAQ: AAPL) became the world's first $1 trillion company in 2018, he had a front-row seat because his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company is one of the tech giant's largest investors. Buffett preaches diversification, but Berkshire's portfolio is highly concentrated In 2007, Buffett famously made a $1 million bet with asset management firm Protege Partners that index funds would outperform a basket of hedge funds over a 10-year period. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft.
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And when Apple (NASDAQ: AAPL) became the world's first $1 trillion company in 2018, he had a front-row seat because his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company is one of the tech giant's largest investors. Berkshire is on track to reach a $1 trillion valuation within two years Between 1965 and 2022, Berkshire Hathaway's Class A stock has grown in value at a compound annual rate of 19.8%. See the 10 stocks *Stock Advisor returns as of April 21, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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And when Apple (NASDAQ: AAPL) became the world's first $1 trillion company in 2018, he had a front-row seat because his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company is one of the tech giant's largest investors. Apple has all the attributes of a Buffett stock. * 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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16192.0
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2023-04-25 00:00:00 UTC
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Google, Amazon, Meta, Microsoft, 15 others subject to EU content rules
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AAPL
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https://www.nasdaq.com/articles/google-amazon-meta-microsoft-15-others-subject-to-eu-content-rules
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nan
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nan
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BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday.
The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE.
(Reporting by Foo Yun Chee)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. (Reporting by Foo Yun Chee) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. (Reporting by Foo Yun Chee) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. (Reporting by Foo Yun Chee) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, April 25 (Reuters) - Alibaba's 9988.HK AliExpress, Amazon's AMZN.O Marketplace, Apple's APPL.O App Store and 16 other tech companies will be subject to new EU online content rules as of August, EU industry chief Thierry Breton said on Tuesday. The other 16 companies are booking.com BKNG.O, Facebook META.O, Alphabet's GOOGL.O Google Maps, Google Play, Google Search, Google Shopping, Instagram, Linkedin, Pinterest, Snapchat, TikTok, Twitter, Wikipedia, YouTube, Microsoft's Bing and Zalando ZALG.DE. (Reporting by Foo Yun Chee) ((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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16193.0
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2023-04-25 00:00:00 UTC
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Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-2
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nan
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nan
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Making its debut on 03/15/2022, smart beta exchange traded fund Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) provides investors broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $689.18 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. GLOV is managed by Goldman Sachs Funds. Before fees and expenses, this particular fund seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
GLOV's 12-month trailing dividend yield is 2.04%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
The top 10 holdings account for about 13.3% of total assets under management.
Performance and Risk
Year-to-date, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF has added roughly 6.09% so far, and is down about -0.09% over the last 12 months (as of 04/25/2023). GLOV has traded between $34.82 and $41.25 in this past 52-week period.
With about 401 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $18.79 billion in assets, Vanguard Total World Stock ETF has $26.69 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Making its debut on 03/15/2022, smart beta exchange traded fund Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) provides investors broad exposure to the Broad Developed World ETFs category of the market.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Making its debut on 03/15/2022, smart beta exchange traded fund Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) provides investors broad exposure to the Broad Developed World ETFs category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 03/15/2022, smart beta exchange traded fund Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) provides investors broad exposure to the Broad Developed World ETFs category of the market.
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16194.0
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2023-04-25 00:00:00 UTC
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Should Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-marketbeta-u.s.-1000-equity-etf-gusa-be-on-your-investing-radar-0
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.28 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.11%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.29%.
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 25.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 24.23% of total assets under management.
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF has gained about 8.23% so far this year and is down about -3.09% in the last one year (as of 04/25/2023). In the past 52-week period, it has traded between $31.16 and $37.56.
With about 1011 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GUSA is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.02 billion in assets, SPDR S&P 500 ETF has $376.85 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.28 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
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Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
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2023-04-25 00:00:00 UTC
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INSIGHT-Inside Meta's scramble to catch up on AI
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https://www.nasdaq.com/articles/insight-inside-metas-scramble-to-catch-up-on-ai
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By Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong
April 25 (Reuters) - As the summer of 2022 came to a close, Meta CEO Mark Zuckerberg gathered his top lieutenants for a five-hour dissection of the company's computing capacity, focused on its ability to do cutting-edge artificial intelligence work, according to a company memo dated Sept. 20 reviewed by Reuters.
They had a thorny problem: despite high-profile investments in AI research, the social media giant had been slow to adopt expensive AI-friendly hardware and software systems for its main business, hobbling its ability to keep pace with innovation at scale even as it increasingly relied on AI to support its growth, according to the memo, company statements and interviews with 12 people familiar with the changes, who spoke on condition of anonymity to discuss internal company matters.
"We have a significant gap in our tooling, workflows and processes when it comes to developing for AI. We need to invest heavily here," said the memo, written by new head of infrastructure Santosh Janardhan, which was posted on Meta's internal message board in September and is being reported now for the first time.
Supporting AI work would require Meta META.O to "fundamentally shift our physical infrastructure design, our software systems, and our approach to providing a stable platform," it added.
For more than a year, Meta has been engaged in a massive project to whip its AI infrastructure into shape. While the company has publicly acknowledged "playing a little bit of catch-up" on AI hardware trends, details of the overhaul - including capacity crunches, leadership changes and a scrapped AI chip project - have not been reported previously.
Asked about the memo and the restructuring, Meta spokesperson Jon Carvill said the company "has a proven track record in creating and deploying state-of-the-art infrastructure at scale combined with deep expertise in AI research and engineering."
"We're confident in our ability to continue expanding our infrastructure's capabilities to meet our near-term and long-term needs as we bring new AI-powered experiences to our family of apps and consumer products," said Carvill. He declined to comment on whether Meta abandoned its AI chip.
Janardhan and other executives did not grant requests for interviews made via the company.
The overhaul spiked Meta's capital expenditures by about $4 billion a quarter, according to company disclosures - nearly double its spend as of 2021 - and led it to pause or cancel previously planned data center builds in four locations.
Those investments have coincided with a period of severe financial squeeze for Meta, which has been laying off employees since November at a scale not seen since the dotcom bust.
Meanwhile, Microsoft-backed OpenAI's ChatGPT surged to become the fastest-growing consumer application in history after its Nov. 30 debut, triggering an arms race among tech giants to release products using so-called generative AI, which, beyond recognizing patterns in data like other AI, creates human-like written and visual content in response to prompts.
Generative AI gobbles up reams of computing power, amplifying the urgency of Meta's capacity scramble, said five of the sources.
FALLING BEHIND
A key source of the trouble, those five sources said, can be traced back to Meta's belated embrace of the graphics processing unit, or GPU, for AI work.
GPU chips are uniquely well-suited to artificial intelligence processing because they can perform large numbers of tasks simultaneously, reducing the time needed to churn through billions of pieces of data.
However, GPUs are also more expensive than other chips, with chipmaker Nvidia Corp NVDA.O controlling 80% of the market and maintaining a commanding lead on accompanying software, the sources said.
Nvidia did not respond to a request for comment for this story.
Instead, until last year, Meta largely ran AI workloads using the company's fleet of commodity central processing units (CPUs), the workhorse chip of the computing world, which has filled data centers for decades but performs AI work poorly.
According to two of those sources, the company also started using its own custom chip it had designed in-house for inference, an AI process in which algorithms trained on huge amounts of data make judgments and generate responses to prompts.
By 2021, that two-pronged approach proved slower and less efficient than one built around GPUs, which were also more flexible in running different types of models than Meta's chip, the two people said.
Meta declined comment on its AI chip's performance.
As Zuckerberg pivoted the company toward the metaverse - a set of digital worlds enabled by augmented and virtual reality - its capacity crunch was slowing its ability to deploy AI to respond to threats, like the rise of social media rival TikTok and Apple-led ad privacy changes, said four of the sources.
The stumbles caught the attention of former Meta board member Peter Thiel, who resigned in early 2022, without explanation.
At a board meeting before he left, Thiel told Zuckerberg and his executives they were complacent about Meta's core social media business while focusing too much on the metaverse, which he said left the company vulnerable to the challenge from TikTok, according to two sources familiar with the exchange.
Meta declined to comment on the conversation.
CATCH-UP
After pulling the plug on a large-scale rollout of Meta's own custom inference chip, which was planned for 2022, executives instead reversed course and placed orders that year for billions of dollars worth of Nvidia GPUs, one source said.
Meta declined to comment on the order.
By then, Meta was already several steps behind peers like Google, which had begun deploying its own custom-built version of GPUs, called the TPU, in 2015.
Executives also that spring set about reorganizing Meta's AI units, naming two new heads of engineering in the process, including Janardhan, the author of the September memo.
More than a dozen executives left Meta during the months-long upheaval, according to their LinkedIn profiles and a source familiar with the departures, a near-wholesale change of AI infrastructure leadership.
Meta next started retooling its data centers to accommodate the incoming GPUs, which draw more power and produce more heat than CPUs, and which must be clustered closely together with specialized networking between them.
The facilities needed 24 to 32 times the networking capacity and new liquid cooling systems to manage the clusters' heat, requiring them to be "entirely redesigned," according to Janardhan's memo and four sources familiar with the project, details of which have not previously been disclosed.
As the work got underway, Meta made internal plans to start developing a new and more ambitious in-house chip, which, like a GPU, would be capable of both training AI models and performing inference. The project, which has not been reported previously, is set to finish around 2025, two sources said.
Carvill, the Meta spokesperson, said data center construction that was paused while transitioning to the new designs would resume later this year. He declined to comment on the chip project.
TRADE-OFFS
While scaling up its GPU capacity, Meta, for now, has had little to show as competitors like Microsoft and Google promote public launches of commercial generative AI products.
Chief Financial Officer Susan Li acknowledged in February that Meta was not devoting much of its current compute to generative work, saying "basically all of our AI capacity is going towards ads, feeds and Reels," its TikTok-like short video format that is popular with younger users.
According to four of the sources, Meta did not prioritize building generative AI products until after the launch of ChatGPT in November. Even though its research lab FAIR, or Facebook AI Research, has been publishing prototypes of the technology since late 2021, the company was not focused on converting its well-regarded research into products, they said.
As investor interest soars, that is changing. Zuckerberg announced a new top-level generative AI team in February that he said would "turbocharge" the company's work in the area.
Chief Technology Officer Andrew Bosworth likewise said this month that generative AI was the area where he and Zuckerberg were spending the most time, forecasting Meta would release a product this year.
Two people familiar with the new team said its work was in the early stages and focused on building a foundation model, a core program that later can be fine tuned and adapted for different products.
Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year. He confirmed that the work has accelerated in the months since ChatGPT's arrival.
Meta's capex boosthttps://tmsnrt.rs/3AhGHtx
Meta's U.S. data center statushttps://tmsnrt.rs/3LjROZc
(Reporting by Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong; additional reporting by Jeffrey Dastin; editing by Kenneth Li and Claudia Parsons)
((Katie.Paul@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Asked about the memo and the restructuring, Meta spokesperson Jon Carvill said the company "has a proven track record in creating and deploying state-of-the-art infrastructure at scale combined with deep expertise in AI research and engineering." As Zuckerberg pivoted the company toward the metaverse - a set of digital worlds enabled by augmented and virtual reality - its capacity crunch was slowing its ability to deploy AI to respond to threats, like the rise of social media rival TikTok and Apple-led ad privacy changes, said four of the sources. Chief Financial Officer Susan Li acknowledged in February that Meta was not devoting much of its current compute to generative work, saying "basically all of our AI capacity is going towards ads, feeds and Reels," its TikTok-like short video format that is popular with younger users.
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By Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong April 25 (Reuters) - As the summer of 2022 came to a close, Meta CEO Mark Zuckerberg gathered his top lieutenants for a five-hour dissection of the company's computing capacity, focused on its ability to do cutting-edge artificial intelligence work, according to a company memo dated Sept. 20 reviewed by Reuters. While the company has publicly acknowledged "playing a little bit of catch-up" on AI hardware trends, details of the overhaul - including capacity crunches, leadership changes and a scrapped AI chip project - have not been reported previously. Meta's capex boosthttps://tmsnrt.rs/3AhGHtx Meta's U.S. data center statushttps://tmsnrt.rs/3LjROZc (Reporting by Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong; additional reporting by Jeffrey Dastin; editing by Kenneth Li and Claudia Parsons) ((Katie.Paul@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They had a thorny problem: despite high-profile investments in AI research, the social media giant had been slow to adopt expensive AI-friendly hardware and software systems for its main business, hobbling its ability to keep pace with innovation at scale even as it increasingly relied on AI to support its growth, according to the memo, company statements and interviews with 12 people familiar with the changes, who spoke on condition of anonymity to discuss internal company matters. Instead, until last year, Meta largely ran AI workloads using the company's fleet of commodity central processing units (CPUs), the workhorse chip of the computing world, which has filled data centers for decades but performs AI work poorly. Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year.
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As the work got underway, Meta made internal plans to start developing a new and more ambitious in-house chip, which, like a GPU, would be capable of both training AI models and performing inference. According to four of the sources, Meta did not prioritize building generative AI products until after the launch of ChatGPT in November. Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year.
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16196.0
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2023-04-25 00:00:00 UTC
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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-invesco-dynamic-large-cap-growth-etf-pwb-a-strong-etf-right-now-6
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Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Managed by Invesco, PWB has amassed assets over $603.63 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.55% for this ETF, which makes it on par with most peer products in the space.
PWB's 12-month trailing dividend yield is 0.40%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
PWB's heaviest allocation is in the Information Technology sector, which is about 29.70% of the portfolio. Its Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 34.92% of PWB's total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Large Cap Growth ETF has gained about 9.72% so far, and was up about 0.24% over the last 12 months (as of 04/25/2023). PWB has traded between $56.26 and $68.41 in this past 52-week period.
PWB has a beta of 1.01 and standard deviation of 23.11% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $81.22 billion in assets, Invesco QQQ has $169.41 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap 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 >>
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 Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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Taking into account individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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2023-04-25 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-7
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.65 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 25.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 24.86% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF return is roughly 8.03% so far this year and is down about -2.57% in the last one year (as of 04/25/2023). In the past 52-week period, it has traded between $34.56 and $41.69.
The ETF has a beta of 1.02 and standard deviation of 19.42% for the trailing three-year period. With about 991 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 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, SCHK is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.02 billion in assets, SPDR S&P 500 ETF has $376.85 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab 1000 Index ETF (SCHK): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab 1000 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 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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16198.0
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2023-04-25 00:00:00 UTC
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Where to Invest $10,000 in a Bear Market
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AAPL
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https://www.nasdaq.com/articles/where-to-invest-%2410000-in-a-bear-market-7
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nan
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nan
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Last year, investors endured the worst bear market since the Great Recession. And while markets are up so far in 2023, some analysts say a recession could lead to another correction. That's not to say we will get another bear market -- meaning a market that's down 20% or more -- but it remains a very tenuous time for investors.
The market still appears to be overvalued, based on its Shiller price-to-earnings (P/E) ratio of almost 30. The Shiller P/E is the inflation-adjusted, 10-year P/E ratio of the S&P 500, and its average range is somewhere between the high-teens and low-20s. That is another sign that a correction could be coming.
If you are concerned about a correction, or a bear market, but don't want to sit on the sidelines until it is over, here are some suggestions for where to invest in a potential down market.
Look for value
As a general rule, value stocks outperform growth stocks in down markets, and that was particularly true last year, in a period of rising interest rates. High interest rates make it more expensive for companies to invest, build, and expand, which is why most growth stocks struggled last year. Value stocks are typically those of more established companies with high levels of liquidity, often in industries that are more resistant to macroeconomic forces.
Over the past year, as of April 24, large-cap value stocks are up about one-quarter of a percentage point, while large-cap growth stocks are down 7%. Over the past three years, large-cap value is up 14.2% on an annualized basis, compared to 12.5% for large-cap growth.
^IVX data by YCharts
If you are looking for stocks trading at a lower valuation, you'll want to look at a few different metrics. The price-to-earnings (P/E) ratio is one of them. The P/E ratio of a stock that's trading at a low valuation is typically under 15 -- the lower it is, the cheaper it is. Price-to-book (P/B) is another value metric. A P/B ratio below 1 means that the stock is trading at less than the intrinsic value of its assets. The price/earnings-to-growth (PEG) ratio is another metric to watch. It is basically the P/E of the stock based on projected earnings five years out. A PEG under 1 means that the stock is undervalued based on future earnings expectations.
Keep in mind, the P/E ratio is going to be higher for growth stocks, because they are expected to grow their revenue and earnings faster than the market. So investors invest in growth stocks based on their future earnings potential, which means it is not unusual to see the P/E ratios of growth stocks in the 20s, 30s, or higher.
But what you want to avoid are ridiculously high P/E ratios. If a growth stock has a P/E within its historical range, and a solid history of earnings, then it should fit what you're looking for. If the stock still has a P/E higher than average, and, worse yet, doesn't have the earnings to back it up -- that's a red flag. Because if the market does drop again, overvalued stocks are likely going to fall hard.
On the other hand, stocks that are values -- trading at a discount, whether they are true value stocks or discounted growth stocks -- are better positioned to navigate another correction.
Stick with ETFs
While attractively valued stocks in general are a good choice in a bear market, trying to pick the right winners -- those that will perform not just through this period of volatility, but long term -- is no easy task. There are certainly some great options -- names you know well, like Berkshire Hathaway, Visa, and Apple. The latter two attract growth investors, too, but they are great companies and fairly valued.
The key, as always, is to have a diversified portfolio of stocks to provide balance, with stocks that perform differently in different market cycles, yet still have long-term growth potential.
So if you had $10,000 to invest, rather than split it up into six to 12 stocks, I'd invest in three exchange-traded funds (ETFs) for diversification, balance, and growth.
One would be an ETF that tracks growth companies, like the Invesco QQQ (NASDAQ: QQQ), which invests in the Nasdaq 100. The Nasdaq 100 is made up of the 100 largest non-financial companies in the U.S., including its three largest holdings -- Microsoft, Apple, and Amazon. This ETF has been among the best long-term performers on the market.
Next, I would invest in an ETF that tracks the S&P 500 -- like the SPDR S&P 500 ETF (NYSEMKT: SPY), which gives you access to the 500 largest companies in the U.S. While it includes all of the names in the Invesco QQQ, it is much broader and includes financial stocks, which typically perform well in bear markets.
The third ETF would be one that focuses on value stocks, to provide some balance in more volatile markets. A great choice is the Invesco S&P Midcap 400 Pure Value ETF (NYSEMKT: RFV), which not only focuses on value stocks, but provides further diversification by dipping into the midcap universe. This ETF is up 2.7% year to date and nearly 1% over the past year, and has returned 31% per year on an annualized basis over the past three years.
You can do your research and find the best ETFs for you, but I would definitely recommend a diversified mix that includes a healthy dose of value.
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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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High interest rates make it more expensive for companies to invest, build, and expand, which is why most growth stocks struggled last year. Stick with ETFs While attractively valued stocks in general are a good choice in a bear market, trying to pick the right winners -- those that will perform not just through this period of volatility, but long term -- is no easy task. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Invesco Exchange-Traded Fund Trust-Invesco S&p MidCap 400 Pure Value ETF wasn't one of them!
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So investors invest in growth stocks based on their future earnings potential, which means it is not unusual to see the P/E ratios of growth stocks in the 20s, 30s, or higher. One would be an ETF that tracks growth companies, like the Invesco QQQ (NASDAQ: QQQ), which invests in the Nasdaq 100. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Invesco Exchange-Traded Fund Trust-Invesco S&p MidCap 400 Pure Value ETF wasn't one of them!
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Look for value As a general rule, value stocks outperform growth stocks in down markets, and that was particularly true last year, in a period of rising interest rates. So investors invest in growth stocks based on their future earnings potential, which means it is not unusual to see the P/E ratios of growth stocks in the 20s, 30s, or higher. On the other hand, stocks that are values -- trading at a discount, whether they are true value stocks or discounted growth stocks -- are better positioned to navigate another correction.
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So investors invest in growth stocks based on their future earnings potential, which means it is not unusual to see the P/E ratios of growth stocks in the 20s, 30s, or higher. While it includes all of the names in the Invesco QQQ, it is much broader and includes financial stocks, which typically perform well in bear markets. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Visa.
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16199.0
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2023-04-24 00:00:00 UTC
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Meta Platforms (META) to Report Q1 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q1-earnings%3A-what-to-expect
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nan
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nan
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Meta Platforms META is set to report its first-quarter 2023 results on Apr 26.
Meta expects total revenues between $26 billion and $28.5 billion for the first quarter of 2023. Unfavorable forex is expected to hurt year-over-year top-line growth by 2%.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $27.49 billion, indicating a decrease of 1.51% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $1.96 per share, down by a cent over the past 30 days, suggesting a decline of 27.94% from the figure reported in the year-ago quarter.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Meta’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 8.56%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Meta’s first-quarter top line is expected to have been affected by a challenging macroeconomic environment, high inflation, and rising interest rates hurting the ad spending budgets of enterprises. This is expected to have weighed on ad revenues in the to-be-reported quarter.
The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
In the fourth quarter of 2022, Meta’s ad revenues represented 97.2% of total revenues, which decreased 4.2% year over year to $31.25 billion. The declining revenue trend is expected to have continued in the first quarter.
The company’s first-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. It expects Reels to monetize much slower than feed or stories, which is a concern.
Nevertheless, Facebook’s expanding user base (2 billion daily active users) is expected to have benefited top-line growth in the to-be-reported quarter. The growing usage of reels is also noteworthy.
Increased engagement for Meta’s offerings like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver. Effective usage of Artificial Intelligence has been helping the company keep its users engaged. Higher engagement level is helping to steady its user growth across all regions, particularly Asia Pacific.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.
Meta has an Earnings ESP of +11.23% and currently has a Zacks Rank #1 (Strong Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
NETGEAR NTGR has an Earnings ESP of +15.79% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.
NETGEAR shares have declined 4.2% year to date. NTGR is set to report its first-quarter 2023 results on Apr 26.
Cloudflare NET has an Earnings ESP of +14.29% and a Zacks Rank #2.
Cloudflare shares have gained 39.1% year to date. NET is set to report its first-quarter 2023 results on Apr 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
NETGEAR, Inc. (NTGR) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter revenues is pegged at $27.49 billion, indicating a decrease of 1.51% from the year-ago quarter’s reported figure.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Meta’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 8.56%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Meta’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 8.56%.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter revenues is pegged at $27.49 billion, indicating a decrease of 1.51% from the year-ago quarter’s reported figure.
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