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16400.0
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2023-04-11 00:00:00 UTC
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Stock Market News for Apr 11, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-apr-11-2023
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nan
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nan
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Wall Street closed on a mixed note on Monday, led by industrials and energy stocks. Investors remained cautious about interpreting the robust jobs report from Friday and eagerly await the inflation numbers due later this week. Two of the three major indexes ended in the green, while one remained flat.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 101.23 points to close at 33,586.52. Nineteen components of the 30-stock index ended in positive territory, while 11 ended in negative.
The S&P 500 added 0.1% or 4.09 points to close at 4,109.11. Six of the 11 broad sectors of the benchmark index ended in positive territory. The Industrials Select Sector SPDR (XLI), the Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) gained 0.9%, 0.8% and 0.5%, respectively, while the Communication Services Select Sector SPDR (XLC) lost 0.2%.
The tech-heavy Nasdaq remained virtually flat to finish at 12,084.36.
The fear-gauge CBOE Volatility Index (VIX) was up 3.1% to 18.97. A total of 9.1 billion shares were traded on Monday, lower than the last 20-session average of 12.3 billion. Advancers outnumbered decliners on the NYSE by a 1.63-to-1 ratio. On Nasdaq, a 1.39-to-1 ratio favored advancing issues.
Investors Weary of Robust Jobs Report
The jobs report released on Friday interprets into a resilient economy amid moderate inflation. A tight labor market is drawing more people into the workforce. Although annual wage gains slowed from the previous reportage, it remained too high to be consistent with the U.S. central bank's 2% inflation target. This has made investors apprehensive that the Fed might revert to hiking interest rates in its May meeting and not follow up on its rate-pause signal.
Market participants are currently pricing in at least a 25 bps rate hike from the next Fed meeting, following the employment numbers, as they are concerned that the Fed might interpret the report as proof of the fact that the tight monetary policy regime is yet to take effect. This, in turn, further stoked recession fears and growth and tech stocks suffered.
Tech Stocks Struggle on Recession Fear
The tech-heavy Nasdaq closed the session marginally down because of a tech rout. When a recession looms large on an economy, and investors are unsure whether a central bank will be able to attain a soft-landing, high-value growth stocks like tech stocks suffer. Monday was no exception.
Consequently, shares of Alphabet Inc. GOOGL and Apple Inc. AAPL lost 1.8% and 1.6%, respectively. Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Energy Sector Drives Market Even As Oil Prices Fall
Oil prices settled lower on Monday, after rising for three straight weeks, on fear of further interest rate hikes. Brent crude settled down $0.96, or 0.2%, at $84.58/barrel, while WTI crude also fell $0.94, or 0.1%, to $79.74/barrel.
However, expecting the United States’ own stockpile to decrease, especially after the OPEC+ announced production cuts, and considering the fact that demand in emerging markets continues to be strong, energy stocks did well, carrying the day’s trade with them.
Economic Data
The U.S. Census Bureau reported on Monday that total inventories of merchant wholesalers were $919.2 billion in February, up 0.1% from the revised January level. The January number was revised to a 0.6% decrease from the earlier reported 0.4% decrease.
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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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Consequently, shares of Alphabet Inc. GOOGL and Apple Inc. AAPL lost 1.8% and 1.6%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors remained cautious about interpreting the robust jobs report from Friday and eagerly await the inflation numbers due later this week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Alphabet Inc. GOOGL and Apple Inc. AAPL lost 1.8% and 1.6%, respectively. The Industrials Select Sector SPDR (XLI), the Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) gained 0.9%, 0.8% and 0.5%, respectively, while the Communication Services Select Sector SPDR (XLC) lost 0.2%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Alphabet Inc. GOOGL and Apple Inc. AAPL lost 1.8% and 1.6%, respectively. The Industrials Select Sector SPDR (XLI), the Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) gained 0.9%, 0.8% and 0.5%, respectively, while the Communication Services Select Sector SPDR (XLC) lost 0.2%.
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Consequently, shares of Alphabet Inc. GOOGL and Apple Inc. AAPL lost 1.8% and 1.6%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Six of the 11 broad sectors of the benchmark index ended in positive territory.
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16401.0
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2023-04-10 00:00:00 UTC
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3 Dividend Stocks to Buy That Have a Loyal Customer Base
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-that-have-a-loyal-customer-base
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Inflation concerns and continuous interest rate hikes have left investors worried and anxious. The Federal Reserve has been raising the federal funds rate for many months now. In March it raised the interest rate by 0.25%, which was its ninth consecutive increase. Rising interest rates can be challenging but smart investors know where to park their money in uncertain times. The monetary policy might affect every sector, but there are some companies that perform better than others. In times like this, it makes a lot of sense to invest in dividend stocks. They do experience some headwinds in periods of high interest rates but the impact will also depend on the past dividend yields, dividend history and the financial position of the company.
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sheets which can help outperform the broader market while the interest rates are high. One way to pick dividend stocks is to look for companies that have a loyal customer base so that the business never runs out of demand and continues to generate revenue, eventually rewarding the shareholders. Let’s take a look at three dividend stocks to buy.
Coca-Cola (KO)
Source: Jonathan Weiss / Shutterstock
A household name, Coca-Cola (NYSE:KO) is a stable company, and is also a favorite of Warren Buffet. KO stock is one of the oldest position’s held by Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). Coca-Cola is not without its weaknesses, but it has created significant wealth for investors over the years. One thing to keep in mind is that Coca-Cola is not a growth stock, so it will not hit new highs or dazzle every year, but it is one stock that is steady and consistent.
KO stock is up almost 15% in the past six months and its 52-week high is $67.20. The company sells products that satisfy consumers at a low price. While some of its products may have a seasonal demand, Coca-Cola was founded over 100 years ago and still going strong. It has also expanded from producing soley drinks and moved into snack products over the years. Due to the low cost, it is possible for the company to raise prices and handle inflation without a lot of hassle for its customers. Coca-Cola has a dividend yield of 2.93% and it recently paid a dividend of 46 cents. It has raised its payout for 60 consecutive years making it a dividend aristocrat and its financial picture looks solid.
The company has managed to maintain a steady share price despite the pandemic and unfavorable market cycles. It is one stock that will continue to reward, no matter the market. The company reports earnings on April 24, and I see the stock as a buy before that.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Tech giant Apple (NASDAQ:AAPL) is another household name with a loyal customer base. It seems like no matter what Apple launches, people love it and want it. The company has seen revenues dip due to negative macroeconomic conditions and production constraints which has led to a drop in the share price from its 52-week high of $176.15. However, AAPL stock is still up 31% year to date and 17% in the past six months. This shows that the stock is steadily moving in the upward direction and could continue at the same pace.
Despite the market turmoil, Apple is worth considering for its dividends. It has a dividend yield of 0.56% and the recent dividend payout was 23 cents. It might not be as high as other dividend-paying companies, but Apple has a massive customer base and is a top tech firm worldwide. Each product launch generates massive hype worldwide leading to a rise in revenues. The company has devoted fans that are always looking forward to purchasing the latest gadgets with eagerness.
Since the consumers are so loyal to the brand, they do not switch easily. In the current period of rising interest rates, investing in AAPL stock could be a smart choice. My colleague at InvestorPlace Chris MacDonald believes now is a golden opportunity to buy the stock. The company will be able to navigate through the economic cycles with little trouble while continuing to reward shareholders.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
Next on my list is Chevron (NYSE:CVX). While it can be hard to estimate the customer base for this company, one thing is certain oil is in demand, and will continue to be so. The past year saw crude oil hitting new highs and this led to a massive surge in Chevron’s revenue. The energy sector is one of the best-performing since 2020 and Chevron has been a winner throughout.
It has an impressive cash flow and is a great dividend stock to own. One thing to keep in mind is with the fluctuations in oil prices the stock price can also fluctuate, but if you hold it long enough, you can take home significant gains. Despite the rising interest rates and market uncertainty, CVX stock is one to add to your portfolio. It has a dividend yield of 3.60% and has recently paid a dividend of $1.51.
Chevron has raised dividends for the past 25 years and is considered a dividend aristocrat. The company will make money when there is oil demand, and while the overall demand can be hard to predict, the massive growth opportunity is certainly present. Recently, OPEC+ announced that it will be cutting production output by 1.16 million barrels a day starting in May and this led to the crude oil prices hitting $80 again. It means a lot more revenue for Chevron and a sweet dividend for its investors.
On the date of publication, Vandita Jadeja 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.
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 Dividend Stocks to Buy That Have a Loyal Customer Base appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) is another household name with a loyal customer base. However, AAPL stock is still up 31% year to date and 17% in the past six months. In the current period of rising interest rates, investing in AAPL stock could be a smart choice.
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In the current period of rising interest rates, investing in AAPL stock could be a smart choice. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) is another household name with a loyal customer base. However, AAPL stock is still up 31% year to date and 17% in the past six months.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) is another household name with a loyal customer base. However, AAPL stock is still up 31% year to date and 17% in the past six months. In the current period of rising interest rates, investing in AAPL stock could be a smart choice.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) is another household name with a loyal customer base. However, AAPL stock is still up 31% year to date and 17% in the past six months. In the current period of rising interest rates, investing in AAPL stock could be a smart choice.
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16402.0
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2023-04-10 00:00:00 UTC
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3 Stocks Warren Buffett Is Betting Big On Big-Time
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AAPL
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https://www.nasdaq.com/articles/3-stocks-warren-buffett-is-betting-big-on-big-time
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many investors will turn to Warren Buffett and his long-term track record of success when choosing which companies and stocks to invest in
Warren Buffett has had one of the best careers in history as a long-term buy and hold equity investor. Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) has posted some of the most incredible returns since inception. Thus, the company’s investment portfolio is scrutinized by everyone, from seasoned veterans to beginner retail investors.
Berkshire’s holdings include a wide swath of companies in varying sectors. This means picking which stocks are best for any individual investor really depends on their market outlook and risk profile.
There aren’t too many stocks I’d disagree with Warren Buffett on. Here are three of the companies I’m definitely on the same page with, and think are table-pounders right now.
Apple (AAPL)
Source: Hadrian / Shutterstock.com
Apple (NASDAQ:AAPL) is among Buffett’s most profitable investments, even though he started accumulating shares approximately seven years ago. Known for the company’s iPhones, Apple has a burgeoning business which has resulted in incredible revenue and earnings growth over time from multiple divisions.
Apple stock has seen revenue growth really accelerate in its services division. Apple Pay, Apple Music, Apple TV+, and Apple Fitness+ are among the solutions available to meet the varied demands of its consumers. The expansion opportunities are encouraging and show growth potential if the company continues searching for cutting-edge techniques to satisfy its consumers.
Apple’s share price, which fell by more than 25% in 2022, has experienced an incredible comeback, soaring by 27% this year. The iPhone dominates the US smartphone industry, and has resulted in a surging stock price, which has greatly benefited Warren Buffett. The company’s future remains bright, with one of the most loyal customer bases and strongest moats of any of the mega-cap tech companies out there.
Investors in AAPL appear to be paying closer attention to the company’s services division — a significantly higher growth rates than the company’s core iPhone business. While Apple’s smartphones generate the majority of its revenue and earnings, services and accessories are picking up steam faster and could account for greater share over time. That’s a great thing for those bullish on Apple’s overall margins. Warren Buffett appears to be content in his holdings, generally keeping his position intact (or increasing it) in recent years.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Warren Buffett has recently increased his stake in Occidental Petroleum (NYSE:OXY), purchasing almost 5.8 million company shares in various transactions in early March. This recent purchase, valued at over $350 million, is the first time the “Oracle of Omaha” has increased his bet on the oil company since September, bringing Berkshire’s total ownership of Occidental to 200.2 million shares.
After having a remarkable year in 2022, with its share price more than doubling, OXY has fallen about 2.3% this year. Despite this decline, the energy company has secured its position among Berkshire’s top 10 holdings.
During a shareholder meeting in 2021, Buffett expressed his views on the fossil fuel debate, stating that he considers himself a realist and that those on either end of the debate are somewhat unreasonable. Buffett invests in various parts of the energy sector, from utilities to solar power.
In addition to owning a significant amount of Occidental’s common shares, Berkshire Hathaway also possesses $10 billion worth of Occidental preferred stock and holds warrants to purchase another $5 billion worth of common shares. These warrants were obtained as part of the financing agreement between the two companies, which supported Occidental’s acquisition of Anadarko in 2019.
Bank of America (BAC)
Source: Michael Vi / Shutterstock.com
Buffett has retained his stance in Bank of America (NSYE:BAC) amid market volatility. Berkshire’s one billion shares of the bank are valued at approximately $28 billion, even after recent declines.
Buffett has supported Bank of America CEO Brian Moynihan and remains well in the green with the company’s current holdings of 1.03 billion shares, purchased at an average price of around $14 each. Berkshire’s last purchase of Bank of America was around $25 per share in August 2020, but if it were to buy more shares it could potentially lift bank stocks overall.
Bank of America performed well in 2022, average return of investment on 5.07%. However, the bank’s overall performance for the year was negative, with BAC declining approximately 25%.
Bank of America’s credit quality could be a bright spot for the company as its nonperforming loans ratio dropped while its net charge-off ratio increased in Q4. Though the metrics should be monitored in the first few quarters of 2023, the bank has successfully diversified its loan mix over the years which reduces its overall credit risk.
Furthermore, the share price is a good potential asset because of its low forward price-earnings ratio of 8.03-times and a consistent dividend yield of 3.1%, backed by a payout ratio of only 27.1%. Additionally, it is expected to manage well through 2023 and experience growth once the economy improves in 2024 or later.
On the date of publication, Chris MacDonald has a position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Stocks Warren Buffett Is Betting Big On Big-Time appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is among Buffett’s most profitable investments, even though he started accumulating shares approximately seven years ago. Investors in AAPL appear to be paying closer attention to the company’s services division — a significantly higher growth rates than the company’s core iPhone business. On the date of publication, Chris MacDonald has a position in AAPL.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is among Buffett’s most profitable investments, even though he started accumulating shares approximately seven years ago. Investors in AAPL appear to be paying closer attention to the company’s services division — a significantly higher growth rates than the company’s core iPhone business. On the date of publication, Chris MacDonald has a position in AAPL.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is among Buffett’s most profitable investments, even though he started accumulating shares approximately seven years ago. Investors in AAPL appear to be paying closer attention to the company’s services division — a significantly higher growth rates than the company’s core iPhone business. On the date of publication, Chris MacDonald has a position in AAPL.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is among Buffett’s most profitable investments, even though he started accumulating shares approximately seven years ago. Investors in AAPL appear to be paying closer attention to the company’s services division — a significantly higher growth rates than the company’s core iPhone business. On the date of publication, Chris MacDonald has a position in AAPL.
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16403.0
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2023-04-10 00:00:00 UTC
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Notable Monday Option Activity: COST, MU, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-cost-mu-aapl
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Costco Wholesale Corp (Symbol: COST), where a total of 26,151 contracts have traded so far, representing approximately 2.6 million underlying shares. That amounts to about 130.1% of COST's average daily trading volume over the past month of 2.0 million shares. Especially high volume was seen for the $500 strike call option expiring April 14, 2023, with 2,819 contracts trading so far today, representing approximately 281,900 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $500 strike highlighted in orange:
Micron Technology Inc. (Symbol: MU) saw options trading volume of 201,051 contracts, representing approximately 20.1 million underlying shares or approximately 95.8% of MU's average daily trading volume over the past month, of 21.0 million shares. Particularly high volume was seen for the $67 strike call option expiring April 14, 2023, with 18,868 contracts trading so far today, representing approximately 1.9 million underlying shares of MU. Below is a chart showing MU's trailing twelve month trading history, with the $67 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 554,963 contracts, representing approximately 55.5 million underlying shares or approximately 85.6% of AAPL's average daily trading volume over the past month, of 64.9 million shares. Especially high volume was seen for the $162.50 strike call option expiring April 14, 2023, with 50,804 contracts trading so far today, representing approximately 5.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $162.50 strike highlighted in orange:
For the various different available expirations for COST options, MU options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Best Dividend Stocks Analysts Like
SINA YTD Return
PFS YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $162.50 strike call option expiring April 14, 2023, with 50,804 contracts trading so far today, representing approximately 5.1 million underlying shares of AAPL. Below is a chart showing MU's trailing twelve month trading history, with the $67 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 554,963 contracts, representing approximately 55.5 million underlying shares or approximately 85.6% of AAPL's average daily trading volume over the past month, of 64.9 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $162.50 strike highlighted in orange: For the various different available expirations for COST options, MU options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing MU's trailing twelve month trading history, with the $67 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 554,963 contracts, representing approximately 55.5 million underlying shares or approximately 85.6% of AAPL's average daily trading volume over the past month, of 64.9 million shares. Especially high volume was seen for the $162.50 strike call option expiring April 14, 2023, with 50,804 contracts trading so far today, representing approximately 5.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $162.50 strike highlighted in orange: For the various different available expirations for COST options, MU options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing MU's trailing twelve month trading history, with the $67 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 554,963 contracts, representing approximately 55.5 million underlying shares or approximately 85.6% of AAPL's average daily trading volume over the past month, of 64.9 million shares. Especially high volume was seen for the $162.50 strike call option expiring April 14, 2023, with 50,804 contracts trading so far today, representing approximately 5.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $162.50 strike highlighted in orange: For the various different available expirations for COST options, MU options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing MU's trailing twelve month trading history, with the $67 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 554,963 contracts, representing approximately 55.5 million underlying shares or approximately 85.6% of AAPL's average daily trading volume over the past month, of 64.9 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $162.50 strike highlighted in orange: For the various different available expirations for COST options, MU options, or AAPL options, visit StockOptionsChannel.com. Especially high volume was seen for the $162.50 strike call option expiring April 14, 2023, with 50,804 contracts trading so far today, representing approximately 5.1 million underlying shares of AAPL.
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16404.0
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2023-04-10 00:00:00 UTC
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After Hours Most Active for Apr 10, 2023 : F, VTRS, PAA, TAL, T, INTC, BAC, PCG, LI, MRO, AAPL, EMB
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-10-2023-%3A-f-vtrs-paa-tal-t-intc-bac-pcg-li-mro-aapl-emb
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.03 to 13,044.2. The total After hours volume is currently 113,788,030 shares traded.
The following are the most active stocks for the after hours session:
Ford Motor Company (F) is -0.02 at $12.70, with 3,263,737 shares traded. F's current last sale is 90.71% of the target price of $14.
Viatris Inc. (VTRS) is unchanged at $9.85, with 2,363,817 shares traded. VTRS's current last sale is 70.36% of the target price of $14.
Plains All American Pipeline, L.P. (PAA) is unchanged at $13.01, with 2,240,655 shares traded. As reported by Zacks, the current mean recommendation for PAA is in the "buy range".
TAL Education Group (TAL) is unchanged at $6.00, with 2,141,235 shares traded. TAL's current last sale is 100.84% of the target price of $5.95.
AT&T Inc. (T) is -0.02 at $19.55, with 1,891,570 shares traded. T's current last sale is 87.87% of the target price of $22.25.
Intel Corporation (INTC) is +0.01 at $32.53, with 1,752,622 shares traded. INTC's current last sale is 116.18% of the target price of $28.
Bank of America Corporation (BAC) is -0.02 at $27.92, with 1,553,216 shares traded. BAC's current last sale is 73.96% of the target price of $37.75.
Pacific Gas & Electric Co. (PCG) is -0.05 at $16.73, with 1,417,894 shares traded. PCG's current last sale is 92.94% of the target price of $18.
Li Auto Inc. (LI) is -0.07 at $23.56, with 1,372,258 shares traded. LI's current last sale is 72.49% of the target price of $32.5.
Marathon Oil Corporation (MRO) is +0.11 at $25.87, with 1,338,493 shares traded. As reported by Zacks, the current mean recommendation for MRO is in the "buy range".
Apple Inc. (AAPL) is +0.06 at $162.09, with 1,240,426 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is -0.045 at $85.64, with 1,234,360 shares traded. This represents a 12.17% increase from its 52 Week Low.
The views and 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 +0.06 at $162.09, with 1,240,426 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Plains All American Pipeline, L.P. (PAA) is unchanged at $13.01, with 2,240,655 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.06 at $162.09, with 1,240,426 shares traded. As reported by Zacks, the current mean recommendation for PAA is in the "buy range".
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Apple Inc. (AAPL) is +0.06 at $162.09, with 1,240,426 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 113,788,030 shares traded.
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Apple Inc. (AAPL) is +0.06 at $162.09, with 1,240,426 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -7.03 to 13,044.2.
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16405.0
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2023-04-10 00:00:00 UTC
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Several Apple services down for some users - Downdetector
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AAPL
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https://www.nasdaq.com/articles/several-apple-services-down-for-some-users-downdetector-0
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nan
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nan
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April 10 (Reuters) - Several Apple Inc AAPL.O services including Apple Music, the support service and Apple store, were down for thousands of users on late Monday, according to outage tracking website Downdetector.com.
More than 3,300 users reported issues with accessing Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States.
Downdetector tracks outages by collating status reports from several sources including user-submitted errors on its platform. The outage may be affecting a larger number of users.
(Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich)
((Akriti.Sharma@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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April 10 (Reuters) - Several Apple Inc AAPL.O services including Apple Music, the support service and Apple store, were down for thousands of users on late Monday, according to outage tracking website Downdetector.com. More than 3,300 users reported issues with accessing Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States. Downdetector tracks outages by collating status reports from several sources including user-submitted errors on its platform.
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April 10 (Reuters) - Several Apple Inc AAPL.O services including Apple Music, the support service and Apple store, were down for thousands of users on late Monday, according to outage tracking website Downdetector.com. More than 3,300 users reported issues with accessing Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States. Downdetector tracks outages by collating status reports from several sources including user-submitted errors on its platform.
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April 10 (Reuters) - Several Apple Inc AAPL.O services including Apple Music, the support service and Apple store, were down for thousands of users on late Monday, according to outage tracking website Downdetector.com. More than 3,300 users reported issues with accessing Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States. (Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich) ((Akriti.Sharma@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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April 10 (Reuters) - Several Apple Inc AAPL.O services including Apple Music, the support service and Apple store, were down for thousands of users on late Monday, according to outage tracking website Downdetector.com. More than 3,300 users reported issues with accessing Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States. Downdetector tracks outages by collating status reports from several sources including user-submitted errors on its platform.
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16406.0
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2023-04-10 00:00:00 UTC
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MORNING BID ASIA-China focus turns back to the macro
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AAPL
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https://www.nasdaq.com/articles/morning-bid-asia-china-focus-turns-back-to-the-macro
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nan
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nan
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By Jamie McGeever
April 11 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever.
Asian market trading volumes should return to more normal levels on Tuesday as investors around the world return from the Easter break, with Chinese inflation and an interest rate decision in South Korea the key events in a pretty packed regional calendar.
Australian consumer confidence will also be released on Tuesday, along with unemployment and trade data from the Philippines, and trade and inflation reports from Taiwan.
There was nothing from U.S. or global equities on Monday for traders in Asia to hang their hats on, although U.S. bond yields and implied rates continue to inch higher on the view that the Fed will raise rates by a quarter point on May 3.
There was more movement in currency markets, where the dollar rose across the board and the yen sank. The Japanese currency slumped 1% to a four-week low against the dollar following the first public remarks from new Bank of Japan (BOJ) governor Kazuo Ueda.
Ueda said it was appropriate to maintain the bank's ultra-loose monetary policy for now as inflation has yet to hit 2% as a trend, suggesting he will be in no rush to dial back its massive stimulus.
At the same time, the BOJ must also avoid being too late in normalizing monetary policy, a sign he will be more open to tweaking its controversial 'yield curve control' policy than his dovish predecessor Haruhiko Kuroda.
He has his work cut out.
Chinese stock markets, meanwhile, get a chance to recover from Monday's 0.5% fall - the steepest in three weeks - now that Beijing has completed its military drills around Taiwan.
Investors can turn their attention back to the economic data, specifically inflation on Tuesday. Producer price inflation is expected to have fallen further in March, according to analysts' estimates of a year-on-year decline of 2.5%, which would be the fastest pace of deflation since June 2020.
The annual rate of consumer price inflation is expected to remain unchanged at 1.0%, the slowest in a year, and the monthly rate is expected to rise to 0% from -0.5% in February.
If these forecasts are broadly accurate, price pressures in China would appear to be extremely benign, giving the central bank room to loosen policy and stimulate the economy.
In South Korea, the central bank looks to have ended its tightening cycle and will likely keep its main interest rate on hold at a 15-year high of 3.50% on Tuesday. With the economy on the brink of recession, it could well cut rates later this year.
Here are three key developments that could provide more direction to markets on Tuesday:
- IMF/World Bank spring meetings in Washington
- China PPI and CPI (March)
- South Korea interest rate decision (seen on hold)
Chinese consumer price inflationhttps://tmsnrt.rs/43jb4NA
Dollar/yen hits 4-week highhttps://tmsnrt.rs/3ZWiGCI
(By Jamie McGeever; Editing by Josie Kao)
((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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Ueda said it was appropriate to maintain the bank's ultra-loose monetary policy for now as inflation has yet to hit 2% as a trend, suggesting he will be in no rush to dial back its massive stimulus. If these forecasts are broadly accurate, price pressures in China would appear to be extremely benign, giving the central bank room to loosen policy and stimulate the economy. Here are three key developments that could provide more direction to markets on Tuesday: - IMF/World Bank spring meetings in Washington - China PPI and CPI (March) - South Korea interest rate decision (seen on hold) Chinese consumer price inflationhttps://tmsnrt.rs/43jb4NA Dollar/yen hits 4-week highhttps://tmsnrt.rs/3ZWiGCI (By Jamie McGeever; Editing by Josie Kao) ((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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Asian market trading volumes should return to more normal levels on Tuesday as investors around the world return from the Easter break, with Chinese inflation and an interest rate decision in South Korea the key events in a pretty packed regional calendar. The annual rate of consumer price inflation is expected to remain unchanged at 1.0%, the slowest in a year, and the monthly rate is expected to rise to 0% from -0.5% in February. Here are three key developments that could provide more direction to markets on Tuesday: - IMF/World Bank spring meetings in Washington - China PPI and CPI (March) - South Korea interest rate decision (seen on hold) Chinese consumer price inflationhttps://tmsnrt.rs/43jb4NA Dollar/yen hits 4-week highhttps://tmsnrt.rs/3ZWiGCI (By Jamie McGeever; Editing by Josie Kao) ((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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Asian market trading volumes should return to more normal levels on Tuesday as investors around the world return from the Easter break, with Chinese inflation and an interest rate decision in South Korea the key events in a pretty packed regional calendar. The annual rate of consumer price inflation is expected to remain unchanged at 1.0%, the slowest in a year, and the monthly rate is expected to rise to 0% from -0.5% in February. Here are three key developments that could provide more direction to markets on Tuesday: - IMF/World Bank spring meetings in Washington - China PPI and CPI (March) - South Korea interest rate decision (seen on hold) Chinese consumer price inflationhttps://tmsnrt.rs/43jb4NA Dollar/yen hits 4-week highhttps://tmsnrt.rs/3ZWiGCI (By Jamie McGeever; Editing by Josie Kao) ((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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Asian market trading volumes should return to more normal levels on Tuesday as investors around the world return from the Easter break, with Chinese inflation and an interest rate decision in South Korea the key events in a pretty packed regional calendar. The annual rate of consumer price inflation is expected to remain unchanged at 1.0%, the slowest in a year, and the monthly rate is expected to rise to 0% from -0.5% in February. Here are three key developments that could provide more direction to markets on Tuesday: - IMF/World Bank spring meetings in Washington - China PPI and CPI (March) - South Korea interest rate decision (seen on hold) Chinese consumer price inflationhttps://tmsnrt.rs/43jb4NA Dollar/yen hits 4-week highhttps://tmsnrt.rs/3ZWiGCI (By Jamie McGeever; Editing by Josie Kao) ((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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16407.0
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2023-04-10 00:00:00 UTC
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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-3
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $162.03, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 10.88% over the past month. This has outpaced the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 3.13% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be May 4, 2023. In that report, analysts expect Apple to post earnings of $1.44 per share. This would mark a year-over-year decline of 5.26%. Meanwhile, our latest consensus estimate is calling for revenue of $93.39 billion, down 4% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $390.02 billion, which would represent changes of -0.98% and -1.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 27.24. Its industry sports an average Forward P/E of 8.97, so we one might conclude that Apple is trading at a premium comparatively.
Investors should also note that AAPL has a PEG ratio of 2.18 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.73 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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In the latest trading session, Apple (AAPL) closed at $162.03, marking a -1.6% move from the previous day. Investors should also note that AAPL has a PEG ratio of 2.18 right now. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $162.03, marking a -1.6% move from the previous day. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors should also note that AAPL has a PEG ratio of 2.18 right now.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $162.03, marking a -1.6% move from the previous day. Investors should also note that AAPL has a PEG ratio of 2.18 right now.
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In the latest trading session, Apple (AAPL) closed at $162.03, marking a -1.6% move from the previous day. Investors should also note that AAPL has a PEG ratio of 2.18 right now. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16408.0
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2023-04-10 00:00:00 UTC
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Time to Spring-Clean...Your Stock Portfolio
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AAPL
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https://www.nasdaq.com/articles/time-to-spring-clean...your-stock-portfolio
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nan
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nan
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In this podcast, Motley Fool senior analysts Ron Gross and Jason Moser discuss:
Shares of stocks investors should consider trimming.
Two stocks to throw out altogether.
Stocks that spark joy (a la Marie Kondo).
Investments poised for a comeback.
Why Visa, Mastercard, and Berkshire Hathaway are good stocks for a rainy day.
Motley Fool senior analyst Bill Mann talks with Howard Marks, co-founder of Oaktree Capital Management, about China's effect on inflation in the U.S., and the winners and losers in a world of higher interest rates.
To get your copy of our free report "Top Stocks For Rising Interest Rates," just go to fool.com/interest.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
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This video was recorded on April 7, 2023.
Chris Hill: It's time to do a little spring cleaning with your investing life. Motley Fool Money starts now.
Chris Hill: Everybody needs money. That's why they call it money.
Chris Hill: From Fool global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill and I'm joined by Motley Fool senior analysts Jason Moser and Ron Gross. Good to see you both.
Jason Moser: How are you doing Chris?
Ron Gross: Happy spring.
Chris Hill: Happy spring indeed. It is our spring cleaning special. We're using spring break has a chance to lean into the theme of spring cleaning because, let's face it, folks, it is not just our closets and our yards that benefit from spring cleaning, our portfolios do as well. Ron Gross, I'm going to start with you. Thinking about trimming the hedges here. What is a high flier that you think investors might want to consider trimming in their portfolio.
Ron Gross: I'm going to go with Five Below. Now, it's a fine company, I have nothing at all against it. I want to say that at the outset, I'm just saying the shares are up about 85% from its 52-week low. At a market cap of around $11 billion, it's trading at 35 times forward earnings. Forward earnings guidance, actually, from the company of around $310 million. Now that analysts, the company is actually giving you guidance there. Thirty-five times compare that to Dollar General at 18 times, Dollar Tree at 21 times, Ollie's Bargain Outlet at 23 times, selling at a significant premium to similar types of companies. Now things are going well sales for the full year were up 8%, they opened up 150 new stores, they're going to open up another 200 stores. It will grow, they don't have debt, they're buying back stock. Again, nothing wrong with the company. All I'm saying is may have gotten a little bit of ahead of itself if it's now an out-sized position for you as a result, maybe a good one to trim.
Chris Hill: Well, and it's a good reminder, Ron if you're wondering about the valuation of any given stock, taking a moment and comparing it to the valuation in your case with look at Five Below a discount retailer compared to Dollar Tree, Dollar General, and Ollie's Bargain. Jason, what about you?
Jason Moser: Well, don't get angry with me, Chris, please. I am going to just outside. Let's say I don't trim. If you have high fliers in your portfolio, what do we like to say here? Water your flowers, pull the weeds, let those high fliers run. Now in all seriousness, that's great in theory, but there is a point where those high fliers could probably start causing you to lose a little sleep at night. I will say, if you feel like you have overexposure to any highfliers if they've run on you and they remain good businesses with questionable valuations, this could be a good time to right-size that position. I'm not really calling out any names in this case because [OVERLAPPING] it is so specific. Listen, Ron, I'll deal with you later. It is a very personal decision, it is something that everybody kind of has to determine their own allocation and what else makes them sleep at night. I think you spring is a great time to look at that, if you have position that has run beyond your wildest dreams, it could be a good opportunity to take a little bit of that off the table and put that money to good use. But if you've got a high flier and you feel like that business is still doing what you thought it would do, let loose things and keep running.
Ron Gross: My guess is that in this market and the last year or so we've had, there's not a lot of that going on most portfolios, but there could be the outlier there that you got in on something that they're 52-week low, it's now double or even triple, and you never anticipated that, you might want to trim.
Chris Hill: Keep in mind, we're talking about trimming the hedges. We're not talking about ripping the hedges out of the ground and throwing them away unlike this next category, Ron, which is when you're doing some spring cleaning at home, you're probably throwing some stuff out. What is the stock that you think investors should consider throwing out altogether?
Ron Gross: Now, not all of my colleagues agree with me here, but I never did and currently don't like Zillow. For me, too many mistakes from this management team and on this business I don't want to be a part owner of it. As most of us know they had a complete unwind, they're eye buying home business that was a complete debacle. Thankfully, that is behind them. Latest quarter results did exceed their outlook, but total revenue was down 19%. They did better than they thought, but there were still down 19%. Declines in their Internet media technology business, in their mortgage business, mortgage revenue down 65%, their premier agent business down 20%, visits to the site during the quarter down 5%. Their vision is to build the housing super app. Let's see how they execute, I'll be watching alongside with all of you. Trading at 16.5 times adjusted EBITDA, 44 times forward estimates because if you use current estimates, it won't work because they're actually not making any money till you'll get an a or an NM in that category right there. If they perform the stocks, the stock is low and that multiple will come down pretty quickly as earnings rise, I just don't want to be there along for the ride.
Chris Hill: The skepticism just dripping from that whole diatribe. Jason, it was unbelievable. What about you? What's the stock investors might want to throw it all together?
Jason Moser: I will say Ron, I think I agree with you. You said super app. But give us a couple of years ago when we heard super app and we thought wow that all of the opportunity in the world and then a couple of years later, you realize that's just a can statement that doesn't really have any vision so to say. I think I'm on board with you there. Chris, I look at my personal portfolio, I continue to hold a small position in Under Armour and every once in a while I ask myself why? I just don't know. For a long time, it was such a good performer, and then it just fell off a cliff and they've had a number of different thesis-breaking events. I continue to think I'd probably haven't sold it because I'm just lazy. But I also look at it and Chris, we've said before they make good stuff.
Chris Hill: They do.
Jason Moser: I can't understand why they've not been able to get over that hump. To me, the big question really continues to be Kevin Plank and how tough is he actually to work for? They've got a new CEO stepping in, Stephanie Coleman Linnartz. Can she make a difference? Maybe, I don't know but at this point, how big of a difference can she make if Plank is really the one behind the scenes calling the shots because he is really ultimately the owner of the business still. Will I sell these shares? I'm probably going to be lazy and not but still, I will probably ask myself this question again next spring, why haven't I sold these shares yet?
Chris Hill: Let's turn positive, Ron, in the spirit of a recondo. What is a stock or a business that sparks joy in you?
Ron Gross: Well, I am a broken record on Costco, but is truly a company I really admire and I'll go through why. I love the culture that they've created Jim Senegal back in the day and it continues today. They value employees, customers, and shareholders, they offer a tremendous value proposition to the customer, they've got a membership model where 75% of their operating profit actually comes from the membership fee that we all are more than happy to pay each year. They have pricing power it allows them to periodically raise those membership prices, which again, fall right to the bottom line. They average about a price hike about every 5.5 years, I think we're due for one soon, so keep an eye out for that. I love their 90% renewal rate, it keeps those recurring revenues pouring in, they have the ability to continue to expand even online in a big way, I believe, they have 848 warehouses, 584 of them in the U.S. Stocks never cheap because I'm not the only one that loves this company but at 32 times forward earnings, it's cheaper than it has been in the past. You're paying a premium price for premium company.
Chris Hill: On a valuation basis, cheaper than Five Below.
Ron Gross: There you go.
Chris Hill: Jason, what about you?
Jason Moser: Well, this one sparks joy me because it's something that's worked out very well for our members, and Chris, that's ultimately why we're here. I looked at the top performer in my next-gen super-cycle service this one that focuses on 5G and connectivity, the top performer, no Chris, it's not Apple. Ron, it's Cadence Design Systems. I know, probably, no one out there as they've been heard of this business and I think that actually is a little bit of an advantage there. It flies under the radar, but it's got a very strong competitive position has got software, the hardware, the intellectual property that ultimately helps its customers. A lot of these big semiconductor companies, these companies are building these electronic products that we use every day. They serve these end markets from consumers, hyper-scale computing, 5G communications, automotive, industrial the list goes on. If you look at the last five years, the company has grown revenue at an annualized rate of 13% with net income up and even more impressive 33%. That out-performance is no accident and I'm thrilled for all of our members who've been along for the ride on that one.
Chris Hill: Coming up after the break, a few stocks that are poised for a comeback. Details next. Stay right here. You're listening to Motley Fool Money.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money, Chris Hill here with Jason Moser and Ron Gross. It is our spring cleaning special, we're recording this one a little earlier than usual. Springtime is all about rebirth renewals. Jason, what is a stock or industry that you believed is poised for a comeback?
Jason Moser: Well, we talk a lot about the war on cash, and with these two companies I'm choosing here, you would think, over the last year, cash is winning [LAUGHTER] . Let's not be too short short-term focused. I'm looking at big fintech, PayPal, and Block. I think these companies are poised to see better days. You saw a short report recently on Block, we've seen a number of problems over PayPal recently. Clearly, they're undergoing leadership transition and the one-year of both companies is horrendous. They bogged down around 50%, PayPal down something like 36%. These are still both very respectable businesses with tremendous tailwinds that they're playing into. Clearly, some challenges they're dealing with over the last year plus, I think they're poised for better days ahead.
Chris Hill: Ron, what about you?
Ron Gross: I haven't talked much recently about my biotech basket that I started building way back in 2017 and it was on fire for a while, but now after almost six years, it's actually down 2%. The baskets focused on gene therapy to refresh some listeners memories. I'm by no means a biotech expert, but I bought the basket because I felt gene editing would be the future of medicine, and I do still believe that, but biotech is very volatile and the entire sector has been very weak since January 2021. Rising interest rates have been a major headwind, for earlier stage companies, having cash has been helpful. It's really key for these companies but even if you have cash, being five years or so from market is a headwind too. The payoff is just too long versus nearer-term rewards. Working through that all will take some time. Interest rates coming down will help, I do think this will eventually happen. A pickup in M&A would be huge, the recent Pfizer's second deal was encouraging. I'm sticking with my basket, if you don't want to individual stocks, I recommend the XBI ETF as a great way to play the sector.
Chris Hill: Just real quick on the M&A activity, Ron, when you look at this basket of biotech stocks that you have, are there some that part of the thesis for you is they might be an acquisition target?
Ron Gross: Yes, two of them have already been taken out, but that was earlier in the basket, maybe before 2020. Since then, I've had no acquisition activity in my holdings, but some of them are probably ripe. Especially once their cash comes down to a point of where they're somewhat in trouble and easy to bargain with, they make easier acquisition targets.
Chris Hill: April showers bring May flowers, but let's face it, April showers just bring a lot of rain. With that in mind, Jason, what is the stock for a rainy day? And think in terms of 2022, what a rough year for the market and investors it was. A stock for a rainy day for me is a stable stall ward business that provides ballast.
Jason Moser: As you were going through last year, there were some stocks hopefully in your portfolio that helped you sleep at night. I'm going to round out the war on cash basket here, Chris, actually, because when I look to Visa and MasterCard, both actually, in positive return territory over the last year, down only slightly in 2022, outperforming the market handily. I felt really good as an owner of these companies. When you look at the 5 and 10-year charts, it becomes more apparent. You just want to own these and go to sleep at night, and you're going to hold onto them for a long time. People chirping out there about disruption in crypto and they're going to be left behind, and yeah. Again remember, these are big companies with a lot of resources. They're the ones that are investing in a lot of this stuff. These opportunities come along the way, they're not sitting on their collective ducts doing nothing. They got the resources to invest in this evolving space, massive networks of users all around the world, and data indicates that more card users continue to use their cards more. The tailwinds are very clear, it's just so difficult to disrupt massive networks like these. I think that's why we saw these two companies, we saw their shares hold up so well in 2022. I remain an owner of all four that I've mentioned here, and intend to remain a holder for hopefully years to come.
Chris Hill: Ron Gross, what about you?
Ron Gross: Berkshire Hathaway, though, I do know it's growing and Warren and Charlie aren't going to be around forever. But it's a collection of more than 60 wonderful businesses, including BNSF Railway, Geico, MidAmerican Energy, Clayton Homes, my personal favorite, Dairy Queen, love Dairy Queen. Insurance is about 7% of the business, railways and energy 9% each, manufacturing 25% each, nicely diversified across sectors. Obviously from an investment perspective, big positions, dynamics, and Bank of America, and Apple, Occidental Petroleum. A succession plan is in place, Greg Abel will be the head of the company one day. He currently heads up the energy division, he's Vice Chairman of the Board. Investing side is well in hand with Todd Combs and Ted Weschler managing sizable portfolios for Berkshire. Only 1.8 times tangible book value or $129 billion in cash, compounded value at that almost 20% rate over 57 years allows me to sleep well at night. It is my largest position.
Chris Hill: Ron, you're right, Warren Buffett, Charlie Munger, they're not immortal, although. They seem like they are at times, but it really does seem like while they're not going to be around forever. This business and the blueprint for running it, both in terms of the acquisitions they make, and the investments that they make, it seems like that is set up about as well as any succession planning I can think of in recent memory.
Ron Gross: Agree from an operating side of the business, agree. My only concern is future acquisitions, Warren Buffett is a master at identifying the right companies at the right price. Let's hope that continues well into the future.
Chris Hill: All right, last but not least, Jason, one actual cleaning tip. It can be specific, it can be more general, enough with the investing. Let's help folks with an actual cleaning tip.
Jason Moser: Well, this is something my wife a year or so ago turned me onto this thing. I do most of the cooking in the house, and I just do a lot of the cleaning, as well, with the dishes at least. Maybe you could just say the kitchen is my domain, Chris. But one thing she got me turned on to is this dish soap bar. Instead of buying the plastic bottle filled with the dish liquid, you can buy these dish soap bars and it's just like a bar of soap. You're saving having to buy and either trash or, hopefully, recycle that plastic container, I tell you what it last a lot longer, because with the liquid, you just tend to overuse it. I've really become a great proponent of this dish bar and they come in all sorts of different shapes and sizes. Keep on the lookout for me if you find one, give it a try. You may become a believer like I am.
Chris Hill: Ron.
Ron Gross: Two weekends ago, my wife went to visit my son at college, and I had the house to myself. As we do Jason, I cooked up a whole bunch of Italian food in a thick red tomato sauce. Here's where the story goes south, stick with me. I decided I was an adult and I could make the adult decision to eat in the family room in front of the TV. The plan is going perfectly until a big dollop of tomato sauce dropped onto our new carpet. Well, thank goodness for Google, here's what you do. You mix two cups of cold water with one tablespoon of clear liquid detergent, apply a generous amount, bloat it up, rinse. It's like it never happened.
Chris Hill: Let's go to our man behind the glass, Dan Boyd. Dan, any thoughts on what you've heard or a cleaning tip of your own?
Dan Boyd: Recently, I've had to take a part of vacuum to get some crackers that my son had dropped. I realized that you can clean the filters in a lot of these modern vacuums that don't use bag filters. I did that, cleaned it, let it dry for 24 hours, and now my vacuum works like it's brand new.
Chris Hill: You're not getting that on Bloomberg. Jason Moser, Ron Gross. Thanks for being here, more after the break, so stay right here. This is Motley Fool Money.
Chris Hill: Welcome back to Motley Fool Money. I'm Chris Hill. Howard Marks is the co-founder and Co-Chairman of Oaktree Capital Management. Warren Buffett is set of him. When I see memos from Howard Marks in my mail, that's the first thing I open and read. Back in January, Motley Fool Senior Analyst, Bill Mann, caught up with Marks to talk about his recent memo entitled Sea Change, as well as China's effect on inflation here in the US, and the winners and losers in a world of higher interest rates.
Bill Mann: You put out a memo in December. It was called sea change. In sea change, you describe what you see in 53 years of investing. Only the dawn of the third era of investing. Now obviously, in that period of time, we've seen lots of fads, we've seen lots of trends. But in this case, we're talking about something that is a total transformation and we have felt it too. But I wanted to take the opportunity to ask you. To talk about what it is that you see that's happening and why you think it's happening now.
Howard Marks: I think Bill, since the global financial crisis which ended in '09, we've been living in a world which was engineered to be an easy world. Some of the manifestations may not have been intentional. The Fed had to save the country and the world from the global financial prices. It did so by drastically lowering interest rates and increasing liquidity through quantitative easy, the buying of bonds. Those two changes had many ramifications. I would say, they made the world and easy place. Unusually, unnaturally easy place for the 13 years from the '09 through the end of '21. What do I mean? Well, first of all, of course, it was very easy to borrow money and it was cheap to borrow money. Borrowers did not have to commit to extensive documentation or restrictions. What we call covenants tended to disappear. Now the reason for this is largely because the reduction of interest rates reduced the returns on very safe instruments like cash at T-bills, high-grade bonds and to the point where investors, especially institutions that need 6% or 7% or 8% a year couldn't use those things. They had to move out the risk curve in order to get the returns they needed. That made their capital readily available to riskier companies at low interest rates. The accommodative monetary policy that I described supported the economy. We had the longest economic recovery in history. It supported the markets. We had the longest bill market in history. Declining interest rates increased the value of all assets. The theorication says that the value of an asset is the discounted present value of all the future cash flows. If you lower the rate at which you do the discounting, the present value of future cash flows goes up. Assets became more valuable. It was very difficult to default or go bankrupt in this accommodative environment. The rate of defaults and bankruptcies was very low. In the prior crises, I had managed money in 1991 or 1992, we had two years of double-digit defaults in the high-yield bond universe. In this case, we only had one. Again, because of these accommodative policies.
Bill Mann: You can always go get more money.
Howard Marks: Exactly.
Bill Mann: Money was available.
Howard Marks: A zombie company which assumed money where the debt service requirements exceeded the cash-flows, as you say, burden money every quarter, but it was very easy for them to get more money. An easy going environment. The main point of the memo Sea Change is that, number 1, obviously in 1980, I had a loan outstanding from a bank and I got a slip from the bank saying the rate on your loan is now 22 in a quarter. It seems like a lot. Forty years later I was able to borrow at two-and-a-quarter down. I just think that interest rates don't have much further to go on the downside. That phenomenon is largely over. I think that, for various reasons, the Fed is not going to go back to the ultra-low interest rates over the last 13 years. We're back more to, in my opinion, a more normal environment where it's not easy to get financed. Some people can, some can't. It's not as cheap, there may be some covenants involved. It's not so easy to avoid default and bankruptcy, it's not so easy to avoid recession, it's just going to be a little more challenging time. Now, if people say I want to go back to normal, let's go back to normal like 2015, 2016, 2017, that was not normal tunnel.
Bill Mann: We're in normal.
Howard Marks: This is normal.
Bill Mann: Yeah, this is normal.
Howard Marks: The new conditions that I described as normal, the conditions of the last 13 years were abnormal.
Bill Mann: There was a brilliant chart and I should send it to you. It was provided to me that the Bank of Japan did it. It showed that the interest rates over the last 13 years worldwide were at 700-year lows. Probably longer than that. But they ran out of the capacity to track from the beginning of recorded history in which interests was a formalized thing. We're at a 700-year low. What's really interesting to me, so I got my start in investing in Japan and it was the early 1990s. It was a very incredible time to be an investor. Japan never did learn that lesson, or at least, they have pushed it off. That the types of cleansing that you're talking about, bankruptcy is good. Bankruptcy, it hurts, and I think that it feels bad. But in some ways, our country works best because we are really good at rewarding well-invested capital and punishing poorly invested capital. In the last 13 years, that accommodative environment made that something you could step through it.
Bill Mann: I said it in what one of my memos during the pandemic, that fear of bankruptcy is to capitalism as fear of hell is to Catholicism. [laughs] It's what needs on the straighten out. It's what makes us make prudent decisions. If you're not afraid of bankruptcy or default because the conditions are so benign and you believe that there's always input from the Fed in which they'll value and the economy out, then you don't have to be so prudent. That's the downside and that creates moral hazard and all those things.
Chris Hill: More with Howard Marks after the break. This is Motley Fool Money.
Chris Hill: Welcome back to Motley Fool Money. I'm Chris Hill. Let's get back to my colleague Bill Mann's conversation with Howard Marks.
Bill Mann: There is a word that you didn't write in sea change. To me, it was in the background and the word is China. Because when you're talking about a 13 year period, I think you're generally talking about an interest rate environment. But the 40-year period, you're talking about, primarily, the impacts of globalization. For a 40-year period, we had the capacity and the endless desire to export inflation to China. Is that time over as well?
Howard Marks: Well, I would rephrase. I wouldn't say we exported inflation. I'd say we exported a sourcing that had the effect of fighting inflation. I think there was a 25-year period there. Maybe it was something like 1990-2015 when consumer durables prices overall declined by 40%. It didn't happen because the OS production got cheaper, it happened because we imported more from Asia. When we're talking about durables, we're talking about appliances and things of that nature, TVs. Raise your hand if you have an American-made TV.
Bill Mann: It's a coffee table if you do.
Howard Marks: By the way, this was the period that coincided with, what I call, China's economic miracle. I'm not going to put you on the spot. But do you know how much Chinese GDP is up in the last 42 years?
Bill Mann: You mean aggregate?
Howard Marks: No, what percentage or how many times? Has it doubled? Has it tripled?
Bill Mann: I think it's like eight times.
Howard Marks: It's a hundred times.
Bill Mann: So I was really wrong?
Howard Marks: Really wrong.
Bill Mann: You did put me on the spot by not putting me on the spot.
Howard Marks: In 1978, as I recall, Chinese GDP was $178 billion. Most recently, it was $17.8 trillion. That's 100 x. Our business made China rich and allowed them to move people from the farms to the cities and into manufacturing from agriculture and so forth. But it's largely over. Ironically, there are a lot of people who want to do outsourcing who say, now, China's too expensive. Because the Chinese miracle raised the per capita income and the wage in China, and you can't get work done as cheaply over there anymore as you used to.
Bill Mann: On a yield basis, it doesn't really work out anymore.
Howard Marks: Exactly. You have people going to countries other than China, Vietnam or Bangladesh are examples. But then you have the fact that the pandemic demonstrated that we have to worry about sources of supply. There was a forest going on now called deep globalization which is a reversal of the sourcing abroad in some small ways. But that will stop or undo the progress against inflation that globalization produced, so you can't have it both ways.
Bill Mann: It can't be both ways. You're exactly right that it was a continuum. If raising China's economic standards was a goal, from both sides, it was a goal. Richard Nixon looked at China and said, having a China in poverty is not helpful for anybody. It was absolutely a policy goal, but they've done it. You are at the point now where China is no longer competing on price.
Howard Marks: I'm not 100% sure on this datum, but if it averaged 2% a year in this country for the last 30 years and that benefited from the process I described in which durables prices went down by 40%, what would inflation have been if durables prices hadn't gone down by 40%? If durables prices are not going to go down by 40% in the years ahead, what will inflation be? I think we may have a slightly higher normal rate of inflation than we did over this period.
Bill Mann: You do agree with me that we exported inflation?
Howard Marks: Yeah.
Bill Mann: I'm still stinging from the fact that my guess that the exponents were for how much China has grown was so far off. But it does so, even if you know your stuff, exponential math or exponential factors are really hard to contemplate. What we're suggesting and what you're suggesting NCE change is that a lot of the things that have not worked for the last 13 years maybe, are about to.
Howard Marks: It's not, yes-no, black-white. The things that were penalized in that period will be less penalized or maybe benefited. Great example, is high-yield bonds. That's really where I started as a money manager in '78, and it's a big part of what we do here at Oaktree. About a year ago, they yielded four something. That was the low-return world. They were not useful to the institutional client trying to make six, seven, or eight. Who would invest in low-quality debt to make four something? Well, today at yields about eight. That's a usable rate of return. That's just very simple example of what you're talking about. The availability of returns now that I would describe as helpful or harmful. They're not the highest I've ever seen. I wouldn't describe them as the most generous, but at least they're usable. Another example is one of the things we invest in here and are well known for is distressed debt. But guess what? There wasn't much distress.
Bill Mann: If you can just keep raising capital.
Howard Marks: In my first 30 years in that position, the default rate averaged around 4% a year and the last 13 years average something more like two. Very little default, not much for default distressed debt funds to do. We raised smallish funds and they had moderate returns. Not our dream environment.
Bill Mann: Yeah, it sounds to me, Howard, like you were describing a much better environment than we've had in a long time for pension, for pulled money. That they have struggled so much for the return for their current obligations. What are some of the other areas you think will benefit from the new world order?
Howard Marks: Well, it's basically everything on the lending side of the equation. That's one. Ranging from cash, which now has a few percent positive return through treasuries, through high-grades, through high yield. Private lending now yields low double-digits. It used to be mid to high single digits. Distressed debt funds should be able to make more money and more target-rich environment. Then there is the one off here and there. If you want to look at the things that have been hurt, an example is the emerging markets. The emerging markets face significant challenges. They've incurred a lot denominated in dollars and they don't have that much access to dollars. This low-return world, the hunt for return on investors part allowed made dollar capital available to the emerging markets through launch, which has not normally been the case.
They'll struggle paying off those loans. But the securities are starting from a cheap place. And often they're going to go up. I'm not saying that. But there are two piles of securities or assets. There's one pile that everybody knows about, feels they understand, feels good about, feels seemly and prudent, and they're optimistic about. Then there's another pile of things that people don't know about, don't understand, don't feel good about, things that are unseemly and they're pessimistic about. Which pile contains the bargains? It's the latter. I want to say very clearly for your viewers and listeners. That's not to say that everything on the latter pile is a bargain. But the bargains are in that pile. I've made a living for 50 years buying things on that pile, doing the things other people didn't want to do. You get to China, what's the word that people have been applying to China for the last year or so? Uninvestable.
Bill Mann: Yeah.
Howard Marks: I like to hear that because I say, nobody else is willing to do it. That means there's not much optimism in the prices. That means the prices may be low, maybe too low. Let's take a hard look. That's it. That's how we think around here.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bill Mann has positions in Alphabet, Berkshire Hathaway, Costco Wholesale, and Mastercard. Chris Hill has positions in Alphabet, Apple, Berkshire Hathaway, Block, Costco Wholesale, PayPal, Under Armour, and Visa. Jason Moser has positions in Alphabet, Apple, Block, Mastercard, PayPal, Under Armour, and Visa. Ron Gross has positions in Apple, Berkshire Hathaway, Block, Costco Wholesale, and Mastercard. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Block, Cadence Design Systems, Costco Wholesale, Mastercard, PayPal, Spdr Series Trust - Spdr S&p Biotech ETF, Under Armour, Visa, and Zillow Group. The Motley Fool recommends Five Below and Ollie's Bargain Outlet and recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, 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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Motley Fool senior analyst Bill Mann talks with Howard Marks, co-founder of Oaktree Capital Management, about China's effect on inflation in the U.S., and the winners and losers in a world of higher interest rates. Back in January, Motley Fool Senior Analyst, Bill Mann, caught up with Marks to talk about his recent memo entitled Sea Change, as well as China's effect on inflation here in the US, and the winners and losers in a world of higher interest rates. Now the reason for this is largely because the reduction of interest rates reduced the returns on very safe instruments like cash at T-bills, high-grade bonds and to the point where investors, especially institutions that need 6% or 7% or 8% a year couldn't use those things.
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Motley Fool senior analyst Bill Mann talks with Howard Marks, co-founder of Oaktree Capital Management, about China's effect on inflation in the U.S., and the winners and losers in a world of higher interest rates. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Block, Cadence Design Systems, Costco Wholesale, Mastercard, PayPal, Spdr Series Trust - Spdr S&p Biotech ETF, Under Armour, Visa, and Zillow Group. The Motley Fool recommends Five Below and Ollie's Bargain Outlet and recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short June 2023 $67.50 puts on PayPal.
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Motley Fool senior analyst Bill Mann talks with Howard Marks, co-founder of Oaktree Capital Management, about China's effect on inflation in the U.S., and the winners and losers in a world of higher interest rates. Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Back in January, Motley Fool Senior Analyst, Bill Mann, caught up with Marks to talk about his recent memo entitled Sea Change, as well as China's effect on inflation here in the US, and the winners and losers in a world of higher interest rates.
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Ron Gross: My guess is that in this market and the last year or so we've had, there's not a lot of that going on most portfolios, but there could be the outlier there that you got in on something that they're 52-week low, it's now double or even triple, and you never anticipated that, you might want to trim. Welcome back to Motley Fool Money, Chris Hill here with Jason Moser and Ron Gross. Howard Marks: In my first 30 years in that position, the default rate averaged around 4% a year and the last 13 years average something more like two.
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16409.0
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2023-04-10 00:00:00 UTC
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US STOCKS-Wall Street drops as job gains fuel rate-hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-as-job-gains-fuel-rate-hike-worries
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nan
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nan
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By Sruthi Shankar and Ankika Biswas
April 10 (Reuters) - U.S. stock indexes fell on Monday on growing concerns that the Federal Reserve will continue to raise interest rates after Friday's jobs data pointed to a resilient labor market.
The tech-heavy Nasdaq <.IXIC> led losses among the major indexes after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 1.7% and 2.1%.
U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
"Investors remain very optimistic that the (rate) increases will come to an end, but the data which the Fed is so dependent on seems to leave room for at least a 25-basis point increase one more time," said Rick Meckler, partner at Cherry Lane Investments.
"One has to step back and look at a bigger picture than just these week-to-week market battles over data. It's going take a few more months to see whether the economic slowdown continues or consumer spending comes back and once again rescues us from a true recession."
Several economic indicators last week, including weak private payrolls and job openings data, had initially raised hopes of a pause to the market-punishing rate hikes amid the recent banking sector turmoil.
However, the odds of a 25-basis point rate hike by the Fed in May rose to more than 65% after Friday's jobs data, according to CME Group's Fedwatch tool, from 57% last week.
The focus this week will shift to U.S. consumer and producer prices data, minutes from the Fed's March meeting and quarterly results from big U.S. banks including JPMorgan Chase & Co JPM.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N.
Analysts expect profits of S&P 500 companies to shrink 5.2% in the first quarter, as per Refinitiv estimates, a reversal from the 1.4% growth forecast at the start of the year.
At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was down 84.51 points, or 0.25%, at 33,400.78, the S&P 500 .SPX was down 28.40 points, or 0.69%, at 4,076.62, and the Nasdaq Composite .IXIC was down 146.94 points, or 1.22%, at 11,941.02.
Eight of the 11 major S&P sectors were trading lower, with consumer discretionary .SPLRCD, technology .SPLRCT and communication services .SPLRCL indexes posting losses of more than 1% each.
Tesla Inc TSLA.O fell 4.2% after the electric-vehicle maker cut prices in the United States between 2% and nearly 6%, a move that analysts cautioned could hurt profitability.
First Republic Bank FRC.N slipped 1.5% as the lender said on Friday it plans to suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight".
The KBW Regional Banking index .KRXfell 0.3% after Fed data on Friday showed overall credit from U.S. banks declined by a record of more than $120 billion in the latest week, on a nonseasonally adjusted basis.
Pioneer Natural Resources Co PXD.N jumped 6.7% after a report that Exxon Mobil Corp XOM.N held preliminary talks with the company about a possible acquisition of the shale oil producer.
Chip stocks such as Micron Technology Inc MU.O and Western Digital Corp WDC.O gained 7.8% and 8.4%, respectively, on Samsung Electronics Co Ltd's 005930.KS plans to cut chip production.
Declining issues outnumbered advancers for a 1.48-to-1 ratio on the NYSE and 1.74-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and no new lows, while the Nasdaq recorded 13 new highs and 57 new lows.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Additional reporting by Medha Singh; Editing by Shounak Dasgupta and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and 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 tech-heavy Nasdaq <.IXIC> led losses among the major indexes after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 1.7% and 2.1%. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes fell on Monday on growing concerns that the Federal Reserve will continue to raise interest rates after Friday's jobs data pointed to a resilient labor market. Several economic indicators last week, including weak private payrolls and job openings data, had initially raised hopes of a pause to the market-punishing rate hikes amid the recent banking sector turmoil.
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The tech-heavy Nasdaq <.IXIC> led losses among the major indexes after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 1.7% and 2.1%. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes fell on Monday on growing concerns that the Federal Reserve will continue to raise interest rates after Friday's jobs data pointed to a resilient labor market. U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
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The tech-heavy Nasdaq <.IXIC> led losses among the major indexes after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 1.7% and 2.1%. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes fell on Monday on growing concerns that the Federal Reserve will continue to raise interest rates after Friday's jobs data pointed to a resilient labor market. U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
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The tech-heavy Nasdaq <.IXIC> led losses among the major indexes after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 1.7% and 2.1%. U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month. However, the odds of a 25-basis point rate hike by the Fed in May rose to more than 65% after Friday's jobs data, according to CME Group's Fedwatch tool, from 57% last week.
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16410.0
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2023-04-10 00:00:00 UTC
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Apple Music down for thousands, other services also affected
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AAPL
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https://www.nasdaq.com/articles/apple-music-down-for-thousands-other-services-also-affected
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nan
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nan
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Updates with details from Apple's status page
April 10 (Reuters) - Apple Inc's AAPL.O music service was facing issues, the iPhone-maker said on its status page on late Monday, while users reported issues with various other services of the company.
According to outage tracking website Downdetector.com, services including the support service and Apple store were down for thousands. More than 3,300 users reported issues with streaming Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States.
Apple's status page indicated that Apple Music, Apple Music Radio, and iTunes Match were facing an ongoing "outage." Additionally, users were reportedly encountering issues with Apple News, the status page showed.
Apple did not immediately respond to a Reuters request for comment regarding the cause of the outage or whether other services were impacted as indicated by Downdetector.
Downdetector tracks outages by collating status reports from several sources including user-submitted errors on its platform. The outage may be affecting a larger number of users.
(Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich)
((Akriti.Sharma@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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Updates with details from Apple's status page April 10 (Reuters) - Apple Inc's AAPL.O music service was facing issues, the iPhone-maker said on its status page on late Monday, while users reported issues with various other services of the company. Additionally, users were reportedly encountering issues with Apple News, the status page showed. Apple did not immediately respond to a Reuters request for comment regarding the cause of the outage or whether other services were impacted as indicated by Downdetector.
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Updates with details from Apple's status page April 10 (Reuters) - Apple Inc's AAPL.O music service was facing issues, the iPhone-maker said on its status page on late Monday, while users reported issues with various other services of the company. According to outage tracking website Downdetector.com, services including the support service and Apple store were down for thousands. Apple's status page indicated that Apple Music, Apple Music Radio, and iTunes Match were facing an ongoing "outage."
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Updates with details from Apple's status page April 10 (Reuters) - Apple Inc's AAPL.O music service was facing issues, the iPhone-maker said on its status page on late Monday, while users reported issues with various other services of the company. More than 3,300 users reported issues with streaming Apple Music at the peak of outage, while nearly 2,200 reported problems with App Store in the United States. Apple's status page indicated that Apple Music, Apple Music Radio, and iTunes Match were facing an ongoing "outage."
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Updates with details from Apple's status page April 10 (Reuters) - Apple Inc's AAPL.O music service was facing issues, the iPhone-maker said on its status page on late Monday, while users reported issues with various other services of the company. According to outage tracking website Downdetector.com, services including the support service and Apple store were down for thousands. The outage may be affecting a larger number of users.
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16411.0
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2023-04-10 00:00:00 UTC
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Dow Movers: AAPL, CAT
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-cat-0
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In early trading on Monday, shares of Caterpillar (CAT) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.8%. Year to date, Caterpillar has lost about 10.3% of its value.
And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.5%. Apple is showing a gain of 23.5% looking at the year to date performance.
Two other components making moves today are Microsoft Corporation (MSFT), trading down 2.0%, and Dow (DOW), trading up 1.8% on the day.
VIDEO: Dow Movers: AAPL, CAT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.5%. VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Caterpillar (CAT) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.8%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.5%. VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Caterpillar (CAT) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.8%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.5%. VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Caterpillar (CAT) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.8%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.5%. VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple is showing a gain of 23.5% looking at the year to date performance.
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16412.0
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2023-04-10 00:00:00 UTC
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US STOCKS-Futures muted after jobs data raises odds of more rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-after-jobs-data-raises-odds-of-more-rate-hikes
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow up 0.04%, S&P flat, Nasdaq down 0.24%
April 10 (Reuters) - U.S. stock index futures were mixed on Monday, as traders returned from Easter break to growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market.
Futures tracking the tech-heavy Nasdaq 100 NQcv1 led modest losses on Wall Street, with shares of growth stocks Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O slipping in early premarket trade.
U.S. employers maintained a strong pace of hiring in March, data released on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
While nonfarm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience.
"We see a disconnect between markets presuming much easier Fed policy on "softer" data and how the Fed will actually see the data," Citi economists said in a note.
"Not only should high inflation and a still-strong labor market keep cuts unlikely, but we see persistently too-strong inflation, including a 0.5% MoM increase in core CPI this week, as leading to further hikes."
Citi expects three 25 basis point rate hikes at the coming Fed meetings with a policy rate reaching 5.50-5.75%.
While U.S. stock markets were closed for Good Friday, Treasury yields surged after the data, with the two-year yield US2YT=RR, which typically moves in step with rate expectations, jumping to 3.993% on Friday. It was last down at 3.9306%. US/
Focus this week will shift to U.S. consumer prices data, the Fed's meeting minutes as well as first-quarter results from big U.S. banks, including JPMorgan Chase & Co JPM.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N.
Analysts expect profits for S&P 500 companies to shrink 5.2% in the first-quarter, as per Refinitiv IBES estimates, a reversal from 1.4% growth forecast at the start of the year.
At 05:03 a.m. ET, Dow e-minis 1YMcv1 were up 12 points, or 0.04%, S&P 500 e-minis EScv1 remained unchanged, and Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%.
First Republic Bank's shares FRC.N slipped 1.4% after the lender said it will suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight."
Shares of other regional banks were also weaker after Fed data released on Friday showed deposits at U.S. commercial banks rose near the end of March for the first time in about a month, showing signs of stabilizing after the recent bank failures rocked the banking system and rattled depositors.
Western Alliance Bancorporation WAL.N slipped 0.8%, while PacWest Bancorp PACW.O was down 0.6%.
(Reporting by Sruthi Shankar in Bengaluru; additional reporting by Medha Singh; Editing by Varun H K)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Futures tracking the tech-heavy Nasdaq 100 NQcv1 led modest losses on Wall Street, with shares of growth stocks Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O slipping in early premarket trade. While nonfarm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience. First Republic Bank's shares FRC.N slipped 1.4% after the lender said it will suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight."
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Futures tracking the tech-heavy Nasdaq 100 NQcv1 led modest losses on Wall Street, with shares of growth stocks Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O slipping in early premarket trade. Futures: Dow up 0.04%, S&P flat, Nasdaq down 0.24% April 10 (Reuters) - U.S. stock index futures were mixed on Monday, as traders returned from Easter break to growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. While nonfarm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience.
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Futures tracking the tech-heavy Nasdaq 100 NQcv1 led modest losses on Wall Street, with shares of growth stocks Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O slipping in early premarket trade. Futures: Dow up 0.04%, S&P flat, Nasdaq down 0.24% April 10 (Reuters) - U.S. stock index futures were mixed on Monday, as traders returned from Easter break to growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. While U.S. stock markets were closed for Good Friday, Treasury yields surged after the data, with the two-year yield US2YT=RR, which typically moves in step with rate expectations, jumping to 3.993% on Friday.
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Futures tracking the tech-heavy Nasdaq 100 NQcv1 led modest losses on Wall Street, with shares of growth stocks Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O slipping in early premarket trade. While nonfarm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience. Citi expects three 25 basis point rate hikes at the coming Fed meetings with a policy rate reaching 5.50-5.75%.
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16413.0
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2023-04-10 00:00:00 UTC
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3 Best Stocks to Buy in April for the Looming Recession
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AAPL
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https://www.nasdaq.com/articles/3-best-stocks-to-buy-in-april-for-the-looming-recession
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many investors believe a recession is imminent. Indeed, there are many reasons for such a view, which makes searching for the best stocks to buy in this environment difficult.
Inflation is high, interest rates are on the rise, geopolitical concerns remain and the yield curve is steeply inverted. The last factor, yield curve inversion, is probably the most indicative of an upcoming recession. Over the last several decades every time the yield curve has been this inverted, there’s been a recession. So if the market is right, and it has an incredible track record, we’re headed for some pain.
With that in mind, picking winning stocks can seem like a fool’s errand.
However, every recession is different, and the shape and breadth of this potential upcoming recession will likely be different from what we’ve seen in the past.
That said, for those seeking a defensive way to manage through this turmoil, here are three of the best stocks for a recession right now.
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
One of the best stocks to buy in any environment has to be McDonald’s (NYSE:MCD). A powerful consumer brand with a global presence, McDonald’s has enriched long-term investors due to its simple menu, strong reputation and consistent profitability. The business has provided distributions since 1976 with a current quarterly distribution of $1.38 per share. Accordingly, with a current yield of around 2.1%, McDonald’s still provides a greater yield than the S&P 500 average.
McDonald’s is a resilient restaurant franchise that can generate strong financial results regardless of the economic climate. With a cash payment percentage of 80% less than its net income during the preceding decade, the business has boosted its distribution by 92% over the same time frame. For those who like total returns, that’s a great thing.
Due to the unpredictability of the future, traders consider the advantages and disadvantages of a potential investment, and many cautious traders favor a stability strategy. Since MCD stock operates well in macroeconomic upswings and downswings, McDonald’s is regarded as a decent investment alternative and a dependable selection for those seeking steadiness.
McDonald’s has proven to be a resilient business that can weather economic ups and downs. Additionally, if the economy improves, McDonald’s is in a position to benefit even more as people tend to eat out more frequently when times are good. Despite some customers upgrading to more expensive restaurants, McDonald’s is still a recognizable food service franchise that offers something for everyone. Even those who trade up are unlikely to completely abandon McDonald’s thanks to its convenience, speed and consistency.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Johnson & Johnson (NYSE:JNJ) stock is a top pick for investors looking to hold a company through to retirement that can weather a negative macro environment. In the healthcare and consumer staples sector, JNJ stock has proven to be a strong financial performer. This is highlighted by its AAA credit rating, one of only a few such companies in its weight class.
Johnson & Johnson has an incredible track record of providing steady and consistent earnings growth. This has allowed the company to weather previous recessions, and provide increasing dividends for 60 consecutive years. That’s no easy feat.
In a recession, consumers cut back on many items. However, essential products such as those provided by Johnson & Johnson, must be bought. The company’s strong brands and pricing power suggests that even in difficult times, this is a company that will come through. Investors need only look to the previous recessions to see how this stock outperformed.
Perhaps much of this sentiment is already baked into JNJ stock. It’s not cheap by any stretch, trading at around 25 times earnings. However, the company has ample growth potential in its biotech division, with an impressive pipeline of almost 50 programs in Phase 3 development, showcasing its continued commitment to innovation.
Moreover, Johnson & Johnson is a reliable company that maintains its dividend payments during challenging times, which can help to offset market losses. Additionally, with a multi-year settlement for the company’s talc powder taking the monkey off of investors’ backs, this stock is free to rise from here. And rise it will, in my view.
Apple (AAPL)
Source: pio3 / Shutterstock.com
Apple (NASDAQ:AAPL) is the world’s largest company, and is a top holding of many of the most prominent investors of all time. One only needs to look to Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) portfolio to see how world-class investors weight this stock.
During a downturn, Apple’s revenues may suffer because fewer people may be willing to spend money on expensive electronic items. Considering that the iPhone generates almost half of the firm’s annual sales, this could be especially bad for the business. Macroeconomic challenges contributed to a year-over-year decline of 8% in iPhone revenue during the fiscal first-quarter.
That said, Apple remains among the most defensive mega-cap tech stocks for a reason. Apple’s loyal customer base highly values their iPhones due to the seamless hardware-software integration that results in high customer satisfaction. Additionally, Apple’s iCloud keeps all devices running in sync, encouraging customers to buy more than one device, ultimately creating a diversified revenue stream.
This strong ecosystem creates network effects and a respective durable competitive advantage, or what Buffett would call a moat, around the business. For those thinking long-term, this company which generates approximately $100 billion in free cash flow annually, is among the best stocks to buy in this market.
On the date of publication, Chris MacDonald has a position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Best Stocks to Buy in April for the Looming Recession appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and is a top holding of many of the most prominent investors of all time. On the date of publication, Chris MacDonald has a position in AAPL. A powerful consumer brand with a global presence, McDonald’s has enriched long-term investors due to its simple menu, strong reputation and consistent profitability.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and is a top holding of many of the most prominent investors of all time. On the date of publication, Chris MacDonald has a position in AAPL. Johnson & Johnson (JNJ) Source: Alexander Tolstykh / Shutterstock.com Johnson & Johnson (NYSE:JNJ) stock is a top pick for investors looking to hold a company through to retirement that can weather a negative macro environment.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and is a top holding of many of the most prominent investors of all time. On the date of publication, Chris MacDonald has a position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many investors believe a recession is imminent.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and is a top holding of many of the most prominent investors of all time. On the date of publication, Chris MacDonald has a position in AAPL. Inflation is high, interest rates are on the rise, geopolitical concerns remain and the yield curve is steeply inverted.
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16414.0
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2023-04-10 00:00:00 UTC
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What To Expect From Netflix's Q1 Earnings?
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AAPL
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https://www.nasdaq.com/articles/what-to-expect-from-netflixs-q1-earnings
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Netflix (NASDAQ:NFLX) is slated to report its Q1 2023 results on April 18th. We estimate that Netflix’s revenue will come in at about $8.2 billion for the quarter, marginally ahead of the consensus estimate of about $8.17 billion. This would mark year-over-year growth of roughly 4%, although it would be down from a growth rate of close to 10% in the same quarter last year. We estimate that earnings will stand at about $2.90 per share, compared to a consensus of $2.86 per share. So what are some of the trends that are likely to drive Netflix results? See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter.
Netflix has stopped providing guidance on subscriber additions – a sign that its years of big growth are clearly cooling. However, the company’s focus has shifted more toward better monetization, and there are some key trends that we will be watching when the company reports earnings. This will be the first full quarter since the launch of the company’s ad-supported plan called “Basic with Ads.” Over its Q4 2022 conference call, Netflix indicated that the plan was helping it to reach out to a new set of more price-sensitive customers, without seeing customers switch to the ad-supported plan from other subscription tiers. Netflix is also looking to boost its monetization of account sharing. While the company introduced paid sharing of accounts in some Latin American countries last year, it expanded these tests to Canada, New Zealand, Portugal, and Spain in February. We will be looking for updates on the same.
Now, Netflix margins could also face some pressure over the quarter due to the timing of the company’s content spending and potentially due to some foreign currency impacts. Netflix’s rollout of the ad-supported tier could also have a temporary impact on margins. For perspective, Netflix sees operating margins of 20%, compared to about 25% in the year-ago quarter.
We were quite bullish on Netflix stock when it fell to five-year lows around mid-2022. However, the stock has recovered considerably since then. At the current market price of about $339 per share, Netflix trades at about 30x forward earnings which is not very attractive considering the company’s slowing subscriber growth and concerns about an economic downturn. We currently remain neutral on Netflix stock, with a price estimate of $340 per share, which is roughly in line with the current market price. See our analysis Netflix Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Netflix. Also, check out the analysis of Netflix Revenue for more details on how Netflix revenues are trending.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Apr 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
NFLX Return -2% 15% 174%
S&P 500 Return 0% 7% 83%
Trefis Multi-Strategy Portfolio -2% 6% 232%
[1] Month-to-date and year-to-date as of 4/8/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix has stopped providing guidance on subscriber additions – a sign that its years of big growth are clearly cooling. While the company introduced paid sharing of accounts in some Latin American countries last year, it expanded these tests to Canada, New Zealand, Portugal, and Spain in February. At the current market price of about $339 per share, Netflix trades at about 30x forward earnings which is not very attractive considering the company’s slowing subscriber growth and concerns about an economic downturn.
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See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter. Also, check out the analysis of Netflix Revenue for more details on how Netflix revenues are trending. Total [2] NFLX Return -2% 15% 174% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -2% 6% 232% [1] Month-to-date and year-to-date as of 4/8/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter. See our analysis Netflix Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Netflix. Total [2] NFLX Return -2% 15% 174% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -2% 6% 232% [1] Month-to-date and year-to-date as of 4/8/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We estimate that earnings will stand at about $2.90 per share, compared to a consensus of $2.86 per share. At the current market price of about $339 per share, Netflix trades at about 30x forward earnings which is not very attractive considering the company’s slowing subscriber growth and concerns about an economic downturn. Total [2] NFLX Return -2% 15% 174% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -2% 6% 232% [1] Month-to-date and year-to-date as of 4/8/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16415.0
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2023-04-10 00:00:00 UTC
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US STOCKS-Wall St set for lower open as jobs report stokes rate-hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-as-jobs-report-stokes-rate-hike-worries
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nan
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By Sruthi Shankar and Ankika Biswas
April 10 (Reuters) - U.S. stock indexes were on track for a lower open on Monday on growing concerns that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market.
Futures tied to the tech-heavy Nasdaq 100 NQcv1 led losses after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 0.7% and 1.3% in premarket trade.
U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
"Investors remain very optimistic that the (rate) increases will come to an end, but the data which the Fed is so dependent on seems to leave room for at least a 25-basis point increase one more time," Rick Meckler, partner at Cherry Lane Investments, said.
"One has to step back and look at a bigger picture than just these week-to-week market battles over data. It's going take a few more months to see whether the economic slowdown continues or consumer spending comes back and once again rescues us from a true recession."
A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
However, the odds of a 25-basis point rate hike by the Fed in May rose to over 65% after the jobs data on Friday, according to CME Group's Fedwatch tool, from 57% last week.
The focus this week will shift to U.S. consumer and producer prices data, minutes from the Fed's March meeting and quarterly results from big U.S. banks including JPMorgan Chase & Co JPM.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N.
Analysts expect S&P 500 companies' profits to shrink 5.2% in the first quarter, as per Refinitiv IBES estimates, a reversal from the 1.4% growth forecast at the start of the year.
At 08:21 a.m. ET, Dow e-minis 1YMcv1 were down 122 points, or 0.36%, S&P 500 e-minis EScv1 were down 21.5 points, or 0.52%, and Nasdaq 100 e-minis NQcv1 were down 107.75 points, or 0.82%.
Tesla Inc TSLA.O fell 2.6% after the electric-vehicle maker cut prices in the United States between 2% and nearly 6%, a move that analysts cautioned could hurt profitability.
First Republic Bank FRC.N fell 4.1% as the lender said on Friday it plans to suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight".
Shares of regional banks slipped after Fed data on Friday showed overall credit from U.S. banks declined by a record of more than $120 billion in the latest week, on a nonseasonally adjusted basis.
Western Alliance Bancorp WAL.N and PacWest Bancorp PACW.O were down 1.4% and 2.5%, respectively.
Pioneer Natural Resources Co PXD.N jumped 6.7% following a report that Exxon Mobil Corp XOM.N held preliminary talks with the company about a possible acquisition of the shale oil producer.
Semiconductor stocks such as Micron Technology Inc MU.O and Western Digital Corp WDC.O gained 5.5% and 4.7%, respectively, following Samsung Electronics Co Ltd's 005930.KS plans to cut chip production.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Additional reporting by Medha Singh; Editing by Varun H K and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Futures tied to the tech-heavy Nasdaq 100 NQcv1 led losses after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 0.7% and 1.3% in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes were on track for a lower open on Monday on growing concerns that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
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Futures tied to the tech-heavy Nasdaq 100 NQcv1 led losses after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 0.7% and 1.3% in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes were on track for a lower open on Monday on growing concerns that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
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Futures tied to the tech-heavy Nasdaq 100 NQcv1 led losses after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 0.7% and 1.3% in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes were on track for a lower open on Monday on growing concerns that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
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Futures tied to the tech-heavy Nasdaq 100 NQcv1 led losses after the long weekend, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping between 0.7% and 1.3% in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock indexes were on track for a lower open on Monday on growing concerns that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
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16416.0
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2023-04-10 00:00:00 UTC
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Global PC shipments slide in Q1, Apple takes biggest hit - IDC
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AAPL
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https://www.nasdaq.com/articles/global-pc-shipments-slide-in-q1-apple-takes-biggest-hit-idc-0
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nan
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Adds graphic
April 10 (Reuters) - Global shipments of personal computers (PCs) fell by 29% in the first quarter of 2023 due to weak demand, excess inventory and a deteriorating macroeconomic climate, with Apple Inc APPL.O taking the largest hit, market research firm IDC said.
In the report published Sunday, the International Data Corporation (IDC) said global PC shipments numbered 56.9 million in the first quarter of this year, down from 80.2 million in the same period last year.
The shipments extended a similar year-on-year decline of 28.1% in the last quarter of 2022.
Of the top five PC companies analysed in the report, Apple's Q1 shipments saw the largest drop of 40.5% from the same period in 2022, with Dell Technologies Inc DELL.N coming in second with a drop of 31%.
Lenovo Group Ltd 0992.HK, Asustek Computer Inc 2357.TW and HP Inc HPQ.N also faced declines in shipments, the IDC said.
In February, Apple reported that sales of its Mac computers, which had boomed during the wave of working from home during the pandemic, declined 29% YoY to $7.7 billion in their most recent quarter.
"The preliminary results also represented a coda to the era of COVID-driven demand and at least a temporary return to pre-COVID patterns. Shipment volume in Q1 2023 was noticeably lower than the 59.2 million units shipped in Q1 2019 and 60.6 million in Q1 2018," IDC said.
"The pause in growth and demand is also giving the supply chain some room to make changes as many factories begin to explore production options outside China."
Concerns over slowdowns in major economies remain, with recent tumult in the banking sector exacerbating worries that runaway inflation and tight monetary policy would hamper growth and financial investments.
If the economy is trending upwards by 2024, "we expect significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks, and businesses move to Windows 11," said Linn Huang, research vice president, Devices and Displays at IDC.
"If recession in key markets drags on into next year, recovery could be a slog."
PC shipments fallhttps://tmsnrt.rs/43ht4YL
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Varun H K)
((BharatGovind.Gautam@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds graphic April 10 (Reuters) - Global shipments of personal computers (PCs) fell by 29% in the first quarter of 2023 due to weak demand, excess inventory and a deteriorating macroeconomic climate, with Apple Inc APPL.O taking the largest hit, market research firm IDC said. Concerns over slowdowns in major economies remain, with recent tumult in the banking sector exacerbating worries that runaway inflation and tight monetary policy would hamper growth and financial investments. If the economy is trending upwards by 2024, "we expect significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks, and businesses move to Windows 11," said Linn Huang, research vice president, Devices and Displays at IDC.
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Adds graphic April 10 (Reuters) - Global shipments of personal computers (PCs) fell by 29% in the first quarter of 2023 due to weak demand, excess inventory and a deteriorating macroeconomic climate, with Apple Inc APPL.O taking the largest hit, market research firm IDC said. In the report published Sunday, the International Data Corporation (IDC) said global PC shipments numbered 56.9 million in the first quarter of this year, down from 80.2 million in the same period last year. Of the top five PC companies analysed in the report, Apple's Q1 shipments saw the largest drop of 40.5% from the same period in 2022, with Dell Technologies Inc DELL.N coming in second with a drop of 31%.
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Adds graphic April 10 (Reuters) - Global shipments of personal computers (PCs) fell by 29% in the first quarter of 2023 due to weak demand, excess inventory and a deteriorating macroeconomic climate, with Apple Inc APPL.O taking the largest hit, market research firm IDC said. In the report published Sunday, the International Data Corporation (IDC) said global PC shipments numbered 56.9 million in the first quarter of this year, down from 80.2 million in the same period last year. PC shipments fallhttps://tmsnrt.rs/43ht4YL (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Varun H K) ((BharatGovind.Gautam@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds graphic April 10 (Reuters) - Global shipments of personal computers (PCs) fell by 29% in the first quarter of 2023 due to weak demand, excess inventory and a deteriorating macroeconomic climate, with Apple Inc APPL.O taking the largest hit, market research firm IDC said. In the report published Sunday, the International Data Corporation (IDC) said global PC shipments numbered 56.9 million in the first quarter of this year, down from 80.2 million in the same period last year. The shipments extended a similar year-on-year decline of 28.1% in the last quarter of 2022.
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16417.0
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2023-04-10 00:00:00 UTC
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ChatGPT Could Break the iOS/Android Duopoly
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AAPL
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https://www.nasdaq.com/articles/chatgpt-could-break-the-ios-android-duopoly
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nan
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nan
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When ChatGPT was launched, it was a great chatbot that captured users' attention, but the introduction of plug-ins has changed the game in technology. If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video.
*Stock prices used were end-of-day prices of April 4, 2023. The video was published on April 6, 2023.
10 stocks we like better than Apple
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*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Shopify. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Shopify. 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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If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. When ChatGPT was launched, it was a great chatbot that captured users' attention, but the introduction of plug-ins has changed the game in technology. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Alphabet, Apple, and Shopify.
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If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. See the 10 stocks *Stock Advisor returns as of March 8, 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, Microsoft, and Shopify.
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If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. That's right -- they think these 10 stocks are even better buys. Travis Hoium has positions in Alphabet, Apple, and Shopify.
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16418.0
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2023-04-10 00:00:00 UTC
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Warren Buffett Has Gained Over $177 Billion From Only 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-has-gained-over-%24177-billion-from-only-4-stocks
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nan
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nan
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For 58 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with his investing prowess. Although he can be wrong just like any other investor, he's managed to lap the total return of the S&P 500, including dividends paid, 153 times. Put another way, Berkshire's stock could drop 99% and Buffett's company would still be comfortably outperforming the broader market over a nearly six-decade stretch.
There are a number of reasons the Oracle of Omaha has vastly outperformed the benchmark S&P 500. Examples include using time as an ally, packing Berkshire's portfolio with cyclical, dividend-paying companies, and focusing on sectors and industries Buffett and his team know well.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But among the many factors that have helped Berkshire Hathaway succeed, portfolio concentration has played a crucial role. By concentrating a sizable percentage of Berkshire's portfolio in a handful of companies, Warren Buffett has been able to deliver outsized gains to his shareholders.
Based on a combination of reported and estimated cost basis data, Warren Buffett is currently sitting on over $177 billion in unrealized gains from only four stocks, not including dividends.
Apple: $116.69 billion in gains (author estimate)
This probably comes as no surprise to anyone who follows the Oracle of Omaha's buying and selling activity, but Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are sitting on well over $116 billion in unrealized gains from tech stock Apple (NASDAQ: AAPL). You'll note this figure is estimated, which is due to the fact that neither Buffett's letter to shareholders, nor the company's operating results, updated the cost basis on Apple following the purchase of shares in 2022.
If you're wondering why Buffett has over 44% of Berkshire Hathaway's invested assets in Apple, it boils down to branding, management, and the company's capital-return program. In terms of the former, Apple is a globally well-recognized brand with an exceptionally loyal customer base. Buffett tends to gravitate to businesses that consumers trust.
Speaking of trust, it's pretty evident that Berkshire's investment team is pleased with Apple CEO Tim Cook. On top of maintaining Apple's leading status in the U.S. smartphone market, Cook is spearheading a multiyear transition that emphasizes subscription services. This natural evolution for Apple is expected to increase the company's operating margin and help buffer sales during physical product replacement cycles.
But let's be honest, Buffett is probably enamored with Apple's capital-return program. Apple is doling out almost $14.6 billion annually in dividends to its shareholders and has repurchased in excess of $550 billion worth of its common stock since 2013 began. The easiest way for businesses to get in Buffett's good graces is to increase Berkshire Hathaway's ownership stake via buybacks.
Coca-Cola: $23.84 billion in gains
With time as an ally, beverage stock Coca-Cola (NYSE: KO) has helped Buffett's company generate close to $24 billion in unrealized gains, not including dividends. Coca-Cola is Berkshire Hathaway's longest continuously held stock (since 1988).
The beauty of consumer staples stocks is that they're often incredibly safe. No matter how well or poorly the U.S. economy performs, there are certain things people still need to buy, such as food, beverages, detergent, toothpaste, toilet paper, and so on. As a beverage provider, Coca-Cola fits in this nondiscretionary niche, which has allowed it to deliver big returns for Berkshire Hathaway.
On a more company-specific level, Coca-Cola benefits from its practically unsurpassed geographic diversity. With the exception of Cuba, North Korea, and Russia, it has ongoing operations in every other country worldwide. This means it's generating relatively predictable cash flow in developed markets, while buoying its organic growth rate developing and emerging markets.
What's more, few companies have done a better job of connecting with and engaging consumers of all ages than Coca-Cola. Whether it's utilizing social media to increase brand awareness and introduce new products, or relying on the holidays to connect with its more mature consumers, Coca-Cola's ability to engage is, arguably, tops among consumer goods brands.
Image source: American Express.
American Express: $22.79 billion in gains
A third stock that's made Warren Buffett and Berkshire Hathaway's shareholders a fortune is credit-services provider American Express (NYSE: AXP). With a cost basis of $1.287 billion, American Express's current value of almost $24.1 billion in Berkshire's portfolio equates to a $22.79 billion gain on investment (not counting dividends).
Out of the 11 sectors Warren Buffett can choose to invest in, financials are, undeniably, his favorite. Even though Apple is Berkshire's largest holding, there's no sector he has a better fundamental grasp on than financials. That helps explain why AmEx has been a continuous holding of Buffett's for 30 years -- and counting.
The top reason to own shares of American Express is its ability to play from both sides of the aisle. In addition to being the third-largest payment processor in the U.S. by credit card network purchase volume, it's also a lender. It charges annual fees and/or interest to its cardholders. Being able to double-dip like this can be particularly profitable during long periods of U.S. and global economic expansion.
But there's another reason AmEx has fared so well over the long run: its affluent clientele. This is a company that has a knack for attracting high earners. The advantage of having high earners and high-net-worth cardholders is that they're less likely to alter their purchasing habits or fail to make their payments if a recession arises or inflation picks up. Targeting a more affluent clientele affords AmEx some level of downside protection that most lenders don't have.
Bank of America: $14.12 billion in gains
The fourth stock that's collectively helped Warren Buffett to more than $177 billion in gains over his company's cost basis is Bank of America (NYSE: BAC). Including shares held by Buffett's secret portfolio, New England Asset Management, Berkshire Hathaway is currently up over $14.1 billion on its BofA stake.
The promise and peril of bank stocks is one and the same: they're cyclical. Although being cyclical exposes bank stocks to possible credit delinquencies and loan losses during recessions, downturns in the U.S. economy don't last very long. Every recession after World War II has lasted just two to 18 months. By comparison, economic expansions have typically been measured in years. Buffett and his team buy bank stocks like BofA to take advantage of this cyclical numbers game over the long term.
What makes Bank of America such an interesting investment among bank stocks is its sensitivity to interest rate movements. Between the end of 2021 and the close of 2022, the company's reported net interest yield rose from 1.67% to 2.22%, all thanks to the Fed rapidly increasing interest rates to tame inflation. For BofA, the result was an increase in net interest income from $11.4 billion in the fourth quarter of 2021, based on generally accepted accounting principles (GAAP), to a GAAP profit of $14.7 billion in Q4 2022. No large bank is reaping the rewards of higher interest rates more than BofA.
Bank of America has also made big strides with its technology investments. It now has 44 million active digital users and closed out 2022 with 49% of its loan sales being completed online or via mobile app. With digital sales costing just a fraction of what in-person interactions run for banks, we're seeing BofA's technology investments pay off in the form of improved operating efficiency.
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 March 8, 2023
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $116.69 billion in gains (author estimate) This probably comes as no surprise to anyone who follows the Oracle of Omaha's buying and selling activity, but Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are sitting on well over $116 billion in unrealized gains from tech stock Apple (NASDAQ: AAPL). Based on a combination of reported and estimated cost basis data, Warren Buffett is currently sitting on over $177 billion in unrealized gains from only four stocks, not including dividends. You'll note this figure is estimated, which is due to the fact that neither Buffett's letter to shareholders, nor the company's operating results, updated the cost basis on Apple following the purchase of shares in 2022.
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Apple: $116.69 billion in gains (author estimate) This probably comes as no surprise to anyone who follows the Oracle of Omaha's buying and selling activity, but Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are sitting on well over $116 billion in unrealized gains from tech stock Apple (NASDAQ: AAPL). For 58 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with his investing prowess. Coca-Cola: $23.84 billion in gains With time as an ally, beverage stock Coca-Cola (NYSE: KO) has helped Buffett's company generate close to $24 billion in unrealized gains, not including dividends.
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Apple: $116.69 billion in gains (author estimate) This probably comes as no surprise to anyone who follows the Oracle of Omaha's buying and selling activity, but Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are sitting on well over $116 billion in unrealized gains from tech stock Apple (NASDAQ: AAPL). Coca-Cola: $23.84 billion in gains With time as an ally, beverage stock Coca-Cola (NYSE: KO) has helped Buffett's company generate close to $24 billion in unrealized gains, not including dividends. Bank of America: $14.12 billion in gains The fourth stock that's collectively helped Warren Buffett to more than $177 billion in gains over his company's cost basis is Bank of America (NYSE: BAC).
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Apple: $116.69 billion in gains (author estimate) This probably comes as no surprise to anyone who follows the Oracle of Omaha's buying and selling activity, but Buffett and his investing lieutenants, Ted Weschler and Todd Combs, are sitting on well over $116 billion in unrealized gains from tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. Bank of America: $14.12 billion in gains The fourth stock that's collectively helped Warren Buffett to more than $177 billion in gains over his company's cost basis is Bank of America (NYSE: BAC).
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16419.0
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2023-04-10 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-7
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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 Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $285.73 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.61%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 25.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 24% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 7.43% so far this year and is down about -7.40% in the last one year (as of 04/10/2023). In the past 52-week period, it has traded between $327.64 and $409.02.
The ETF has a beta of 1 and standard deviation of 19.75% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $305.36 billion in assets, SPDR S&P 500 ETF has $370.84 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): 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 Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 6.53% 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 Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 6.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): 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 Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
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16420.0
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2023-04-10 00:00:00 UTC
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3 Growth Stocks You Should Invest in Now
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-you-should-invest-in-now
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nan
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nan
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A lot of growth stocks have fallen to a point where they look very inexpensive for investors. That creates opportunities for investors who can take a long-term view of companies that are getting stronger each year. In this video, Travis Hoium digs into three companies with low valuations.
*Stock prices used were end-of-day prices of April 5, 2023. The video was published on April 8, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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 Taiwan Semiconductor Manufacturing 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 March 8, 2023
Travis Hoium has positions in Apple, Block, Intel, and Wynn Resorts. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Nvidia, and Taiwan Semiconductor Manufacturing.
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See the 10 stocks *Stock Advisor returns as of March 8, 2023 Travis Hoium has positions in Apple, Block, Intel, and Wynn Resorts. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, 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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10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Travis Hoium has positions in Apple, Block, Intel, and Wynn Resorts. 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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In this video, Travis Hoium digs into three companies with low valuations. * 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! See the 10 stocks *Stock Advisor returns as of March 8, 2023 Travis Hoium has positions in Apple, Block, Intel, and Wynn Resorts.
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16421.0
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2023-04-10 00:00:00 UTC
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US STOCKS-Futures muted after jobs data raises odds of more rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-after-jobs-data-raises-odds-of-more-rate-hikes-0
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nan
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By Sruthi Shankar and Ankika Biswas
April 10 (Reuters) - U.S. stock index futures were subdued on Monday on growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market.
Nasdaq 100 futures NQcv1 were down slightly, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping in premarket trade.
U.S. employers maintained a strong pace of hiring in March, data on Friday showed, pushing the unemployment rate down to 3.5% and raising odds of the Fed hiking rates one more time next month.
While non-farm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience.
"We see a disconnect between markets presuming much easier Fed policy on 'softer' data and how the Fed will actually see the data," Citi economists said.
"Not only should high inflation and a still-strong labor market keep cuts unlikely, but we see persistently too-strong inflation, including a 0.5% MoM increase in core CPI this week, as leading to further hikes."
A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
Traders' bets of a 25-basis point rate hike by the Fed in May have risen to over 65%, according to CME Group's Fedwatch tool, up from 57% last week.
While U.S. stock markets were closed for Good Friday, Treasury yields surged after the data, with the two-year yield US2YT=RR, which typically moves in step with rate expectations, jumping to 3.99% on Friday. It was last down at 3.94%. US/
The focus this week will shift to U.S. consumer and producer prices data, minutes from the Fed's March meeting and quarterly results from big U.S. banks including JPMorgan Chase & Co JPM.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N.
Analysts expect S&P 500 companies' profits to shrink 5.2% in the first quarter, as per Refinitiv IBES estimates, a reversal from the 1.4% growth forecast at the start of the year.
At 6:48 a.m. ET, Dow e-minis 1YMcv1 were up 29 points, or 0.09%, S&P 500 e-minis EScv1 were up 1.25 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were down 17.25 points, or 0.13%.
First Republic Bank's FRC.N shares fell 2% as the lender said on Friday it plans to suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight".
Shares of regional banks were mixed after Fed data on Friday showed deposits at U.S. commercial banks rose near the end of March for the first time in about a month, showing signs of stabilizing after the recent bank failures rocked the banking system and rattled depositors.
Western Alliance Bancorp WAL.N and PacWest Bancorp PACW.O were down 1.2% and 0.5%, respectively, while Comerica Inc CMA rose 0.9%.
Pioneer Natural Resources Co PXD.N jumped 7.4% following a report that Exxon Mobil Corp XOM.N held preliminary talks with the company about a possible acquisition of the shale oil producer.
Semiconductor stocks such as Micron Technology Inc MU.O and Western Digital Corp WDC.O gained 6.6% and 5.3%, respectively, following Samsung Electronics Co Ltd's 005930.KS plans to cut chip production.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Additional reporting by Medha Singh; Editing by Varun H K and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nasdaq 100 futures NQcv1 were down slightly, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock index futures were subdued on Monday on growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
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Nasdaq 100 futures NQcv1 were down slightly, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock index futures were subdued on Monday on growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. While non-farm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience.
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Nasdaq 100 futures NQcv1 were down slightly, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping in premarket trade. By Sruthi Shankar and Ankika Biswas April 10 (Reuters) - U.S. stock index futures were subdued on Monday on growing risks that the Federal Reserve will continue to hike interest rates after Friday's jobs data highlighted a still-strong labor market. A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
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Nasdaq 100 futures NQcv1 were down slightly, with growth stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O slipping in premarket trade. While non-farm payrolls increased by 236,000 jobs last month, slightly weaker than economists' expectations, investors focused on the overall data which signaled labor market resilience. A string of reports last week, including weak private payrolls and job openings data, pointed to slowing labor demand and raised hopes of the Fed pausing its market-punishing rate hikes amid the recent banking sector turmoil.
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16422.0
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2023-04-10 00:00:00 UTC
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Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-6
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
The fund is sponsored by Fidelity. It has amassed assets over $4.32 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 45.40% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Common Stock (AAPL) accounts for about 12.67% of total assets, followed by Common Stock (MSFT) and Common Stock (AMZN).
The top 10 holdings account for about 47.38% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has gained about 15.99% so far this year and is down about -11.85% in the last one year (as of 04/10/2023). In the past 52-week period, it has traded between $40.02 and $53.22.
The ETF has a beta of 1.13 and standard deviation of 24.93% for the trailing three-year period, making it a medium risk choice in the space. With about 1016 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite 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, ONEQ is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $80.94 billion in assets, Invesco QQQ has $171.54 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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Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Common Stock (AAPL) accounts for about 12.67% of total assets, followed by Common Stock (MSFT) and Common Stock (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $4.32 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Common Stock (AAPL) accounts for about 12.67% of total assets, followed by Common Stock (MSFT) and Common Stock (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Common Stock (AAPL) accounts for about 12.67% of total assets, followed by Common Stock (MSFT) and Common Stock (AMZN). Alternatives Fidelity Nasdaq Composite 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, Common Stock (AAPL) accounts for about 12.67% of total assets, followed by Common Stock (MSFT) and Common Stock (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
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16423.0
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2023-04-10 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-17
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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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16424.0
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2023-04-09 00:00:00 UTC
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A Bull Market Is Coming: 1 FAANG Stock-Heavy Index Fund to Buy Now
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-1-faang-stock-heavy-index-fund-to-buy-now
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nan
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The S&P 500 nosedived into a bear market last year as recession fears rattled Wall Street, and the benchmark index is still down 15% from all-time highs. But every bear market has ended in a new bull market, and the same outcome is all but inevitable this time around. That makes the current situation a buying opportunity for patient investors, and the FAANG stocks look attractive.
All five FAANG stocks crushed the S&P 500 over the past decade, and each one retains solid prospects for future growth. Investors can get significant exposure to the FAANG stocks through a specific Vanguard index fund. Of course, buying the stocks outright is also an option, but three of the five underperformed the S&P 500 over the past five years, while the Vanguard index fund in question outperformed.
The future looks bright for the FAANG stocks
The bull case for each FAANG stock is detailed below.
Apple (NASDAQ: AAPL) led the world in smartphone and smartwatch sales in the fourth quarter. Its lineup of trendy devices inspired immense consumer loyalty, and the company recently surpassed 2 billion active devices worldwide. That hints at strong growth for its services business in the coming years. Indeed, App Store spending is forecast to climb at 14% annually through 2026, and Apple Pay is the most popular in-store mobile wallet in the U.S., meaning Apple should be a major beneficiary as smartphone payments become more prevalent at physical points of sale.
Amazon (NASDAQ: AMZN) dominates the e-commerce industry. Its marketplace powered 38% of online retail sales in North America and Western Europe last year, and its massive logistics footprint gives the company an edge over its peers. But the company has more exciting growth prospects in the higher-margin industries of cloud computing and digital advertising. Amazon is the largest provider of cloud services, and it has quietly become the fourth-largest digital advertising company in the world in the world.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) dominates the ad tech space, and its valuable internet real estate should keep it at the forefront of the industry for years to come. Google Search holds an astounding 93% share in internet search, which effectively makes it the gateway to the internet, and YouTube is the top U.S. streaming service as measured by viewing time. Additionally, Google Cloud Platform is the third-largest provider of cloud services.
Meta Platforms (NASDAQ: META) is the second-largest digital advertising company in the world. Its family of social media apps reached an incredible 3.7 billion people monthly in the fourth quarter, and Instagram, WhatsApp, and Facebook ranked among the 10 most downloaded mobile apps worldwide last year. Meta should be a major beneficiary of ongoing growth in digital ad spend, but its investments in generative AI and the metaverse could also pay off in the future.
Netflix (NASDAQ: NFLX) leads the streaming industry in global engagement, revenue, and profits, and its ability to create binge-worthy content far surpasses that of its peers. The company accounted for 40% of consumer demand for original content last year, more than the next five streaming services combined, and Netflix produced 13 of the top 15 original streaming programs. While the company eschewed advertising for years, its recent launch of an ad-support service significantly expands its total addressable market.
The Vanguard Mega Cap Growth ETF
The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) tracks nearly 100 of the largest U.S. growth stocks. Its constituents include all five FAANG stocks, which collectively account for 31% of its weighted exposure, but it also includes Microsoft, Tesla, and Nvidia, which account for another 21% of its weighted exposure. That diversity makes the Vanguard ETF a little less risky than owning the FAANG stocks outright, though investors still get heavy FAANG exposure, as detailed below.
Apple: 15.8%
Alphabet: 7.1%
Amazon: 5.8%
Meta Platforms: 1.4%
Netflix: 1.1%
The Vanguard Mega Cap Growth ETF crushed the broader market over the past decade. While the S&P 500 produced a total return of 219%, the Vanguard ETF soared 280%, or 14.2% annually. If that pace continues, $200 invested weekly would grow into $203,000 over the next decade and $969,000 in two decades. Of course, annualized returns of 14.2% are probably unsustainable over a 20-year period, but investors can reasonably expect the Vanguard ETF to beat the broader market in the long run.
The last thing investors need to know is that the Vanguard ETF bears a below-average expense ratio of 0.07%, meaning the annual fees would total $7 on a $10,000 portfolio. In short, this ETF is a cheap way to diversify across dozens of the biggest growth stocks on the market, which makes it a great option for risk-tolerant investors with a long time horizon.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) led the world in smartphone and smartwatch sales in the fourth quarter. Its marketplace powered 38% of online retail sales in North America and Western Europe last year, and its massive logistics footprint gives the company an edge over its peers. Netflix (NASDAQ: NFLX) leads the streaming industry in global engagement, revenue, and profits, and its ability to create binge-worthy content far surpasses that of its peers.
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Apple (NASDAQ: AAPL) led the world in smartphone and smartwatch sales in the fourth quarter. The Vanguard Mega Cap Growth ETF The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) tracks nearly 100 of the largest U.S. growth stocks. Apple: 15.8% Alphabet: 7.1% Amazon: 5.8% Meta Platforms: 1.4% Netflix: 1.1% The Vanguard Mega Cap Growth ETF crushed the broader market over the past decade.
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Apple (NASDAQ: AAPL) led the world in smartphone and smartwatch sales in the fourth quarter. The Vanguard Mega Cap Growth ETF The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) tracks nearly 100 of the largest U.S. growth stocks. Apple: 15.8% Alphabet: 7.1% Amazon: 5.8% Meta Platforms: 1.4% Netflix: 1.1% The Vanguard Mega Cap Growth ETF crushed the broader market over the past decade.
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Apple (NASDAQ: AAPL) led the world in smartphone and smartwatch sales in the fourth quarter. All five FAANG stocks crushed the S&P 500 over the past decade, and each one retains solid prospects for future growth. Google Search holds an astounding 93% share in internet search, which effectively makes it the gateway to the internet, and YouTube is the top U.S. streaming service as measured by viewing time.
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16425.0
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2023-04-09 00:00:00 UTC
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MORNING BID ASIA-China-Taiwan tensions loom ever larger
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AAPL
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https://www.nasdaq.com/articles/morning-bid-asia-china-taiwan-tensions-loom-ever-larger
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nan
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nan
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By Jamie McGeever
April 10 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever.
The dramatic escalation in China-Taiwan tensions will loom large over Asia on Monday, potentially cranking up market volatility in a session with trading volume already likely to be reduced with much of Europe closed for the Easter Monday holiday.
On the economic data front on Monday, Japanese current account figures for February and the possible release of Chinese credit, loan growth and money supply data for March could divert investors' attention away from the geopolitics.
Looking ahead, the major Asian economic and policy calendar events for the rest of the week are: Chinese CPI and PPI inflation, and trade balance; Indian inflation; Australian unemployment; and interest rate decisions from South Korea and Singapore.
Globally, market direction this week will be driven in part by March U.S. consumer price inflation on Wednesday. Headline annual inflation is expected to continue slowing, but core remains sticky. Indeed, headline is expected to fall below core.
The latest U.S. employment data on Friday - on balance, a pretty solid report - didn't really change rates traders' outlook for the Fed much. They still think the Fed has probably peaked and will cut rates by at least 50 basis points this year.
The first-quarter U.S. earnings season gets underway this week too, with major banks including JPMorgan and Citigroup out on Friday. Analysts expect S&P 500 earnings to fall 5.2% from Q1 last year.
More immediately though, attention on Monday will be fixed on the final day of China's three-day military drills around Taiwan.
The exercises, which Beijing launched after Taiwan's President Tsai Ing-wen met with U.S. House Speaker Kevin McCarthy in California last week, involve China simulating precision strikes on Taiwan and encircling the island with around 10 warships and dozens of fighter jets.
The de facto U.S. embassy in Taiwan said on Sunday the U.S. was monitoring China's drills and was "comfortable and confident" it had sufficient resources and capabilities regionally to ensure peace and stability.
Meanwhile, Foxconn2317.TW said on Sunday it is planning to invest $820 million in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions.
Foxconn, a major Apple Inc AAPL.Osupplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base.
Here are three key developments that could provide more direction to markets on Monday:
- Day 3 of China's military exercises around Taiwan
- Japan current account (February)
- China credit, loan growth, money supply (March)
Fed funds rate and implied 2023 rateshttps://tmsnrt.rs/3nXyWpT
China loans ($)https://tmsnrt.rs/3KKZymQ
China loan growthhttps://tmsnrt.rs/3ZYdSN8
(By Jamie McGeever; Editing by Josie Kao)
((email: jamie.mcgeever@thomsonreuters.com;Reuters Messaging: jamie.mcgeever.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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Foxconn, a major Apple Inc AAPL.Osupplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. The latest U.S. employment data on Friday - on balance, a pretty solid report - didn't really change rates traders' outlook for the Fed much. The de facto U.S. embassy in Taiwan said on Sunday the U.S. was monitoring China's drills and was "comfortable and confident" it had sufficient resources and capabilities regionally to ensure peace and stability.
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Foxconn, a major Apple Inc AAPL.Osupplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. By Jamie McGeever April 10 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. On the economic data front on Monday, Japanese current account figures for February and the possible release of Chinese credit, loan growth and money supply data for March could divert investors' attention away from the geopolitics.
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Foxconn, a major Apple Inc AAPL.Osupplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. Looking ahead, the major Asian economic and policy calendar events for the rest of the week are: Chinese CPI and PPI inflation, and trade balance; Indian inflation; Australian unemployment; and interest rate decisions from South Korea and Singapore. The exercises, which Beijing launched after Taiwan's President Tsai Ing-wen met with U.S. House Speaker Kevin McCarthy in California last week, involve China simulating precision strikes on Taiwan and encircling the island with around 10 warships and dozens of fighter jets.
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Foxconn, a major Apple Inc AAPL.Osupplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. Indeed, headline is expected to fall below core. Analysts expect S&P 500 earnings to fall 5.2% from Q1 last year.
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16426.0
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2023-04-09 00:00:00 UTC
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3 Dividend Stocks Billionaires Seem to Love
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-billionaires-seem-to-love
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nan
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nan
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Billionaires make their fortunes in all sorts of ways. For some, it came partly thanks to their ability to lead or invest in excellent companies. These are the billionaires I want to focus on today. That's because the non-billionaires out there (there are way more of us than there are of them), can sometimes learn something by looking at the kinds of equities that billionaires invest in, including dividend stocks.
There is no shortage of corporations that pay dividends, but they aren't all created equal. Which ones do billionaires like? Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL).
1. Gilead Sciences
Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. It also features among the holdings of Citadel Advisors, a hedge fund run by billionaire investor Ken Griffin. What makes Gilead Sciences an attractive dividend stock? It isn't just the company's yield, although, at 3.6%, it is much higher than the average for the S&P 500 of 1.74%.
Neither is it that Gilead Sciences has raised its quarterly payouts by 31.6% in the past five years. The best part about this biotech is how solid and reliable its business is. Gilead Sciences' portfolio of HIV medicines makes it one of the absolute leaders in this market. For instance, Biktarvy is the top prescribed medicine in this area in the U.S. Descovy is equally successful in the HIV PrEP market.
Gilead Sciences' latest breakthrough in this area is called Sunlenca, a six-month, long-acting regimen that happens to be the first of its kind. Many HIV medicines are administered monthly or bi-monthly. A bi-annual option will undoubtedly attract many eligible patients. Meanwhile, Gilead Sciences' oncology unit is making headway thanks to products such as Trodelvy.
The company has plenty of programs in the pipeline that will allow it to increase its revenue and earnings over time. Like its peers in the biotech industry, Gilead Sciences offers essential products -- lifesaving medicines no one wants to cut back on even when the economy is in shambles. This factor allows the drugmaker to generate somewhat stable revenue and earnings.
That's why income-seeking investors definitely can't go wrong with this stock. And with a cash payout ratio of 44.5%, Gilead Sciences has more than enough cash to cover increasing dividend payments.
2. Microsoft
Microsoft needs no introduction, nor does its co-founder and former CEO, Bill Gates. The billionaire largely made his fortune as a major shareholder and the head of this company. Even though he retired from this role long ago, Gates' nonprofit organization, the Bill & Melinda Gates Foundation, owns shares of the tech giant.
Why should dividend-seeking investors consider Microsoft? Let's first look at the company's operations. Microsoft is known for being the leader in computer operating systems, with an undisputed and large lead over any serious competitor.
The suite of productivity tools it offers is ubiquitous and has become entrenched in the lives of millions of people, granting the company high switching costs. That includes some like Microsoft Teams that rose in popularity amid the pandemic. It is difficult to imagine Microsoft being knocked out of its leading position in this market.
But Microsoft's business extends beyond that. It has become one of the largest players in the cloud computing industry through Microsoft Azure. There is a large opportunity here as the cloud market is rapidly expanding thanks to the advantages it confers to businesses, which include lowering costs and improving efficiency.
Then there is Microsoft's gaming unit, which will remain an important player whether or not the blockbuster acquisition of video game giant Activision Blizzard goes through.
Microsoft's leadership in multiple industries, including at least one with excellent prospects (cloud computing), makes its business strong and capable of sustaining its dividend. The company's quarterly payouts have soared by 61.9% in the last half-decade. Even with a low yield of just 0.95%, Microsoft is an excellent dividend stock.
3. Apple
Apple has been a regular on the list of holdings of billionaire Warren Buffett's Berkshire Hathaway for a while now. The Oracle of Omaha has even referred to the tech giant as "probably the best business" he knows in the world. There is a good reason for that. Apple has a knack for transforming (often by improving) already existing tech, putting its own spin on it to render it even more popular.
That's what it did with the iPhone, which remains its biggest money maker. Apple's brand name is so powerful that it generates decent sales even in challenging economic times like last year. Its products hardly fall under the "necessary goods" category and have plenty of cheaper competitors. But beyond Apple's hardware business, the company's services segment is perhaps its most promising.
Apple offers Apple Pay, Apple TV+, iCloud, Apple Music, and much more. Last year, the company's total active devices reached the 2 billion mark. That is a massive number. Investors should expect Apple to find new ways to monetize this ecosystem in this highly profitable and high-margin segment that will continue growing for years. But what about Apple's dividend?
The company's yield of 0.55% does not look very impressive either, but with a solid business backing it and the regular and massive cash flow Apple generates -- which currently stands at $97.5 billion -- Apple's payouts are secure. The tech giant has increased its dividends by 26% in the past five years. Its low cash payout ratio of 15.3% leaves plenty of room for more hikes.
Investors can buy Apple's stock for both growth and income.
10 stocks we like better than Gilead Sciences
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Gilead Sciences, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). There is a large opportunity here as the cloud market is rapidly expanding thanks to the advantages it confers to businesses, which include lowering costs and improving efficiency. Microsoft's leadership in multiple industries, including at least one with excellent prospects (cloud computing), makes its business strong and capable of sustaining its dividend.
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Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Gilead Sciences, and Microsoft.
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Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. The company's yield of 0.55% does not look very impressive either, but with a solid business backing it and the regular and massive cash flow Apple generates -- which currently stands at $97.5 billion -- Apple's payouts are secure.
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Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. What makes Gilead Sciences an attractive dividend stock?
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16427.0
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2023-04-09 00:00:00 UTC
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3 Stocks That Have the Most to Gain From an AI Pause
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-have-the-most-to-gain-from-an-ai-pause
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Since the launch of ChatGPT, talk of artificial intelligence dominated Wall Street.
OpenAI's chatbot has unleashed a world of possibilities, and Microsoft and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are already racing to define the next iteration of search, which will be powered by, or at least assisted by, AI chatbots.
However, not everyone is happy about this development.
The Future of Life Institute issued an open letter calling for AI labs to pause all development of technologies beyond GPT-4 for at least six months, arguing that regulatory frameworks need to improve in order to mitigate the risks from this new technology.
The letter attracted signatures from a number of tech leaders including Elon Musk and Apple (NASDAQ: AAPL) co-founder Steve Wozniak, showing it deserves to be taken seriously. Though it doesn't seem likely at this point that there will be an AI pause, it's worth considering which stocks would benefit if it happened. Let's take a look at three stocks that would respond favorably to a break in AI advances.
Image source: Getty Images.
1. Alphabet
No company has been more threatened by ChatGPT than Alphabet. The Google parent declared a "code red" shortly after its release, and founders Larry Page and Sergey Brin came back to devise the company's AI strategy, as it was clear that the new technology posed a threat to Google Search.
Alphabet unveiled Bard AI, its answer to ChatGPT, in February, but the company's earlier decisions indicate a reluctance to innovate beyond the current version of Google Search, which is a massive profit machine for the company.
In February, Microsoft introduced a new ChatGPT-powered version of Bing, and CEO Satya Nadella declared a new race in search and AI.
Given the high stakes in this new competition and the fact that Alphabet is playing catch-up, the search leader seems like it would be a clear beneficiary from an AI pause. It would give it an opportunity to reset its strategy and protect its lead in search.
2. Baidu
There are a number of reasons why a pause in AI would be problematic, but one is that there's no way to enforce it. It would be voluntary, and it seems unlikely that Chinese companies would go along with it. The U.S. and China are involved in something of a tech Cold War on multiple fronts, and the Biden administration has restricted semiconductor equipment and technology that can be exported to China.
Baidu (NASDAQ: BIDU) is one of the most advanced Chinese companies when it comes to AI. The company has a network of self-driving cars in a number of cities in China, and has also launched its own AI chatbot, Erniebot.
Investors were initially disappointed with Erniebot's capabilities at its release last month, but an AI pause would give the company time to improve Erniebot to better compete with ChatGPT and other U.S.-based competitors.
3. Apple
Apple has been mostly left out of the dialogue around ChatGPT. As a device maker, Apple isn't at risk the way a company like Alphabet is. But it also doesn't want to get left behind by the next major computing platform, and there are plenty of opportunities for it to use AI to its advantage.
For example, Apple was early with its voice assistant Siri, but overall Siri has fallen short of investor hopes. A version of Siri powered by GPT technology, on the other hand, could be transformative for iPhone users.
Apple also benefits from Google's dominance of search, as Alphabet pays Apple dearly to be the default search engine on Safari, Apple's browser. According to some estimates, Alphabet paid Apple $20 billion for that privilege last year. An AI pause would help protect that payment for the meantime, and give Alphabet time to ensure that it remains the leader in search.
Overall, Apple's strategy in AI is still unclear, and one news report said that the company was reevaluating its AI strategy in the wake of the ChatGPT launch. A pause of six months or longer could help the iPhone maker build the momentum it needs to be a leader in AI.
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*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Baidu, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The letter attracted signatures from a number of tech leaders including Elon Musk and Apple (NASDAQ: AAPL) co-founder Steve Wozniak, showing it deserves to be taken seriously. In February, Microsoft introduced a new ChatGPT-powered version of Bing, and CEO Satya Nadella declared a new race in search and AI. Given the high stakes in this new competition and the fact that Alphabet is playing catch-up, the search leader seems like it would be a clear beneficiary from an AI pause.
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The letter attracted signatures from a number of tech leaders including Elon Musk and Apple (NASDAQ: AAPL) co-founder Steve Wozniak, showing it deserves to be taken seriously. Investors were initially disappointed with Erniebot's capabilities at its release last month, but an AI pause would give the company time to improve Erniebot to better compete with ChatGPT and other U.S.-based competitors. Apple also benefits from Google's dominance of search, as Alphabet pays Apple dearly to be the default search engine on Safari, Apple's browser.
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The letter attracted signatures from a number of tech leaders including Elon Musk and Apple (NASDAQ: AAPL) co-founder Steve Wozniak, showing it deserves to be taken seriously. Alphabet unveiled Bard AI, its answer to ChatGPT, in February, but the company's earlier decisions indicate a reluctance to innovate beyond the current version of Google Search, which is a massive profit machine for the company. Apple also benefits from Google's dominance of search, as Alphabet pays Apple dearly to be the default search engine on Safari, Apple's browser.
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The letter attracted signatures from a number of tech leaders including Elon Musk and Apple (NASDAQ: AAPL) co-founder Steve Wozniak, showing it deserves to be taken seriously. Alphabet No company has been more threatened by ChatGPT than Alphabet. Overall, Apple's strategy in AI is still unclear, and one news report said that the company was reevaluating its AI strategy in the wake of the ChatGPT launch.
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16428.0
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2023-04-09 00:00:00 UTC
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Why Has Warren Buffett Invested 44% of His Portfolio in This 1 Stock?
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AAPL
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https://www.nasdaq.com/articles/why-has-warren-buffett-invested-44-of-his-portfolio-in-this-1-stock
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Remember the saying, "Don't put all of your eggs in one basket"? The old adage summarizes the importance of diversification in a nutshell (or maybe in an eggshell). Diversification doesn't eliminate your risk but can help lower the odds of significant losses.
At first glance, you might think that Warren Buffett is a proponent of diversification. His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) holdings include nearly 50 stocks across a variety of industries. But while the legendary investor doesn't have all of his eggs in one basket, a disproportionate number of them are. Why has Buffett invested 44% of his portfolio in just one stock?
Image source: The Motley Fool.
The apple of Buffett's eye
That stock in which so much of Berkshire's money is invested is Apple (NASDAQ: AAPL). Berkshire's position in the tech giant currently totals close to $150 billion.
Buffett first initiated a position in Apple in the first quarter of 2016. And he did so at the time primarily because of the influence of Berkshire's two investment managers, Todd Combs and Ted Weschler.
While it took Buffett a long time to pull the trigger on Apple, he clearly likes the company. In a 2020 interview with CNBC, he stated:
I don't think of Apple as a stock. I think of it as our third business. It's probably the best business I know in the world. And that is a bigger commitment than we have in any business except insurance and the railroad.
There are plenty of reasons why Buffett views Apple with such high regard. He has always loved strong brands and prefers to invest in companies with solid moats. The Oracle of Omaha also especially prioritizes consistent, long-term earnings growth. Apple delivers on all counts.
A big bet that's paid off in a big way
You might still scratch your head that Buffett has put so much of Berkshire's money into one stock. However, it's important to recall something he said years ago: "Diversification is protection against ignorance. It makes little sense if you know what you are doing."
Buffett doesn't have a problem investing heavily in a stock when he has a high degree of confidence in its underlying business. That confidence comes from a careful and detailed evaluation of the company's financials, management team, growth prospects, and competitive landscape.
Clearly, Buffett's big bet on Apple has paid off in a big way. An initial investment in Apple when Berkshire first bought the stock has increased by more than 6x.
The Oracle of Omaha seems to believe Apple has more room to run. Berkshire bought only four stocks in the fourth quarter of 2022. Apple was one of them.
Don't try this at home
I agree with Buffett that Apple is a wonderful business and a great stock. It's the largest stock in my portfolio, as well (although it's not anywhere close to 44% of my total holdings, and my amount invested is a wee bit lower than his investment).
There are several reasons why I think that buying Apple stock now is a smart move. The company has major opportunities in China and India. Its services business should be an especially significant growth driver for years to come. And Apple also has tremendous potential with new products, including its forthcoming augmented-reality headset and a rumored folding iPhone.
However, I don't think that most investors should put nearly as big a percentage of their money into Apple or any other single stock as Buffett has. Few people have the experience and expertise he does in evaluating businesses. And few have the financial cushion that he has if a decision goes awry.
Consider buying Apple, but also build a well-diversified portfolio. Your eggs and baskets are a lot different than Buffett's.
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*Stock Advisor returns as of March 8, 2023
Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The apple of Buffett's eye That stock in which so much of Berkshire's money is invested is Apple (NASDAQ: AAPL). Buffett doesn't have a problem investing heavily in a stock when he has a high degree of confidence in its underlying business. That confidence comes from a careful and detailed evaluation of the company's financials, management team, growth prospects, and competitive landscape.
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The apple of Buffett's eye That stock in which so much of Berkshire's money is invested is Apple (NASDAQ: AAPL). His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) holdings include nearly 50 stocks across a variety of industries. That confidence comes from a careful and detailed evaluation of the company's financials, management team, growth prospects, and competitive landscape.
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The apple of Buffett's eye That stock in which so much of Berkshire's money is invested is Apple (NASDAQ: AAPL). Don't try this at home I agree with Buffett that Apple is a wonderful business and a great stock. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Keith Speights has positions in Apple and Berkshire Hathaway.
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The apple of Buffett's eye That stock in which so much of Berkshire's money is invested is Apple (NASDAQ: AAPL). Why has Buffett invested 44% of his portfolio in just one stock? Apple was one of them.
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16429.0
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2023-04-09 00:00:00 UTC
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Foxconn plans $800 mln investment in southern Taiwan
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AAPL
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https://www.nasdaq.com/articles/foxconn-plans-%24800-mln-investment-in-southern-taiwan
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TAIPEI, April 9 (Reuters) - Foxconn 2317.TW is planning to invest T$25 billion ($820 million) in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions, the company said on Sunday.
The company, formally called Hon Hai Precision Industry Co Ltd, said the investments in Kaohsiung will include plants for making electric buses and batteries for EVs.
Foxconn, a major Apple Inc AAPL.O supplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base.
($1 = 30.3930 Taiwan dollars)
(Reporting by Ben Blanchard and Emily Chan; Editing by William Mallard)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. TAIPEI, April 9 (Reuters) - Foxconn 2317.TW is planning to invest T$25 billion ($820 million) in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions, the company said on Sunday. The company, formally called Hon Hai Precision Industry Co Ltd, said the investments in Kaohsiung will include plants for making electric buses and batteries for EVs.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. TAIPEI, April 9 (Reuters) - Foxconn 2317.TW is planning to invest T$25 billion ($820 million) in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions, the company said on Sunday. ($1 = 30.3930 Taiwan dollars) (Reporting by Ben Blanchard and Emily Chan; Editing by William Mallard) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. TAIPEI, April 9 (Reuters) - Foxconn 2317.TW is planning to invest T$25 billion ($820 million) in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions, the company said on Sunday. The company, formally called Hon Hai Precision Industry Co Ltd, said the investments in Kaohsiung will include plants for making electric buses and batteries for EVs.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone assembler, has big ambitions in the EV market as it seeks to diversify its revenue base. TAIPEI, April 9 (Reuters) - Foxconn 2317.TW is planning to invest T$25 billion ($820 million) in the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions, the company said on Sunday. The company, formally called Hon Hai Precision Industry Co Ltd, said the investments in Kaohsiung will include plants for making electric buses and batteries for EVs.
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16430.0
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2023-04-08 00:00:00 UTC
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Here's How Amazon Could Become a $5 Trillion Stock Within a Decade
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AAPL
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https://www.nasdaq.com/articles/heres-how-amazon-could-become-a-%245-trillion-stock-within-a-decade
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Amazon (NASDAQ: AMZN) stock might be down 44% from its all-time high right now, but it's still the fifth most valuable company in the world, with a market capitalization of $1.06 trillion. It's trailing its American peers in the technology sector, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), yet in 2022, Amazon generated more revenue than all of them.
It operates an incredibly diverse business and is dominating some of the most important areas of the technology industry. With that in mind, there's a clear path for Amazon to achieve a $5 trillion valuation in the next 10 years. If it gets there, investors who buy its stock today would earn a whopping 371% return.
Amazon: Its past and future
Amazon is a widely recognized pioneer in the e-commerce industry. It began selling books online in 1995 and has never looked back. Its website is now home to millions of different products and generated $220 billion in sales in 2022 alone. But the company's expansion into other areas has supercharged its growth.
It's now a leader in the cloud computing industry through its Amazon Web Services (AWS) platform, which helps business customers with their digital transformations. It began as a way to help companies store their data online in 2006 and now offers hundreds of solutions, including advanced artificial intelligence and machine-learning tools. Last year, AWS delivered $80 billion in revenue and is consistently responsible for all of Amazon's operating income.
The cloud attracts more spending from businesses each year as the number of tasks it can migrate online continues to grow. The industry was worth $484 billion in 2022, and an estimate by Grand View Research suggests it could become a $1.5 trillion annual opportunity by 2030.
But Amazon hasn't stopped there. It now reports its advertising revenue as a stand-alone line item (it was once reported under its retail business), and much to investors' delight, it generated $37 billion in revenue last year. Amazon.com is the primary driver, with 2.2 billion monthly website visits, which makes it an ideal place for merchants to market their products.
However, thanks to Amazon's growing portfolio of media assets like streaming -- which includes live sports from the NFL to European soccer -- its ad business might just be getting warmed up. According to Microsoft, digital advertising is a $500 billion annual opportunity, so Amazon has barely scratched the surface.
Amazon attracts more revenue than Apple, Microsoft, and Alphabet
In 2022, Amazon generated $514 billion in total revenue. That was more than Apple ($394 billion), Microsoft ($198 billion), and Alphabet ($282 billion). So why have those three companies attracted higher valuations? In the case of Apple and Microsoft, they're worth more than twice as much as Amazon.
Amazon has typically balanced growth and profitability really well, but unfortunately, due to a paper loss in 2022 on its passive investment in electric-vehicle maker Rivian Automotive, the company delivered its first annual net loss since 2014. That sets it apart from its three tech-giant peers because they all have consistently delivered a profit, even in this difficult economic climate.
Additionally, investors fear there could be a global economic recession on the horizon. Consumers typically suffer the most in those circumstances. Since Amazon is heavily reliant on e-commerce, sales could suffer a slowdown.
Plus, growth in AWS has slowed over the last few quarters. Since that segment is the profitability engine behind Amazon, as a whole, investors might be preparing for sluggish earnings results. However, AWS should be able to use its leadership position to capture an outsized share of the enormous growth forecast for the cloud computing industry over the longer term.
Image source: Getty Images.
Amazon's (mathematical) path to a $5 trillion valuation
Since Amazon didn't generate positive earnings (profit) last year, let's focus on its price-to-sales (P/S) ratio as a valuation metric. This is calculated by dividing the company's current market value of $1.06 trillion by its 2022 revenue of $514 billion.
Based on that equation, its P/S ratio is 2.1 right now. Assuming it remained constant for the next 10 years, Amazon would have to generate $2.5 trillion in revenue in 2033 to justify a $5 trillion valuation. It would have to grow its revenue by 17.1% each year between now and then to achieve that number.
The good news is, since the company's initial public offering (IPO) in 1997, it has grown its revenue at a compound annual rate of 38.5%. That's well above the threshold, but more recently, its revenue growth rate in 2022 was just 8.4% and is expected to come in at 12.4% this year. Granted, that's in the middle of an incredibly difficult economic environment.
Therefore, two pathways could take Amazon to a $5 trillion valuation. First, it might find its e-commerce revenue reaccelerating once the economy improves. Plus, its growth rate could be bolstered by greater cloud adoption and through the expansion of its digital-advertising business.
Second, there's a phenomenon referred to as multiple expansion. Amazon stock has declined so steeply amid the broader tech sell-off that its P/S ratio is near the cheapest levels in nine years. It traded as high as 4.6 in 2020. If it climbs back to that level, Amazon will only need $1.1 trillion in revenue by 2033 to justify a $5 trillion valuation.
Amazon's business mix is dominated by industries of the future, so it has the firepower to deliver robust growth for the decade ahead. But it will likely get some help from an improving economy, which should see Amazon stock attract a higher valuation, especially if the company returns to profitability (as is expected). All in all, there could be exciting gains on the table for Amazon's shareholders.
10 stocks we like better than Amazon.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com 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 March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's trailing its American peers in the technology sector, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), yet in 2022, Amazon generated more revenue than all of them. It's now a leader in the cloud computing industry through its Amazon Web Services (AWS) platform, which helps business customers with their digital transformations. It began as a way to help companies store their data online in 2006 and now offers hundreds of solutions, including advanced artificial intelligence and machine-learning tools.
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It's trailing its American peers in the technology sector, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), yet in 2022, Amazon generated more revenue than all of them. Amazon attracts more revenue than Apple, Microsoft, and Alphabet In 2022, Amazon generated $514 billion in total revenue. Amazon's (mathematical) path to a $5 trillion valuation Since Amazon didn't generate positive earnings (profit) last year, let's focus on its price-to-sales (P/S) ratio as a valuation metric.
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It's trailing its American peers in the technology sector, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), yet in 2022, Amazon generated more revenue than all of them. Amazon attracts more revenue than Apple, Microsoft, and Alphabet In 2022, Amazon generated $514 billion in total revenue. Amazon's (mathematical) path to a $5 trillion valuation Since Amazon didn't generate positive earnings (profit) last year, let's focus on its price-to-sales (P/S) ratio as a valuation metric.
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It's trailing its American peers in the technology sector, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), yet in 2022, Amazon generated more revenue than all of them. Amazon attracts more revenue than Apple, Microsoft, and Alphabet In 2022, Amazon generated $514 billion in total revenue. That was more than Apple ($394 billion), Microsoft ($198 billion), and Alphabet ($282 billion).
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16431.0
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2023-04-08 00:00:00 UTC
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Apple Makes Up Nearly Half of Warren Buffett's Portfolio. Here's Why He Should Consider Selling Some
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AAPL
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https://www.nasdaq.com/articles/apple-makes-up-nearly-half-of-warren-buffetts-portfolio.-heres-why-he-should-consider
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Of all the great investments Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has made, few have been more successful than Apple (NASDAQ: AAPL). Throughout its ownership, Berkshire has done things all investors should take note of: It added to a winner and did not sell even though the stock had increased in price.
However, there comes a time when every portfolio manager should trim their positions, and Apple is certainly at that point for Berkshire. Read on to learn the lessons investors can learn from this and why it may be a great time to reduce your exposure to Apple stock.
Buffett isn't as concerned about diversification as others
Part of the reason Berkshire buys and holds Apple is that Buffett prefers to own businesses, not stocks. Because Apple's business has done so well, he's seen no reason to sell the stock. In fact, he added nearly 334,000 shares (about $55 million worth) during fourth-quarter 2022. This brings Berkshire's Apple stake to 915 million shares, worth more than $150 billion -- about 23% of Berkshire Hathaway's market cap.
This level of concentration may be something that most investors shouldn't try to copy.
If something happens with Apple -- say it produces a lousy phone that destroys its reputation, or someone launches a groundbreaking product that usurps Apple from its throne -- Berkshire is poised to post significant losses in its investment portfolio. With Apple making up nearly 45% of Berkshire's portfolio, it's safe to say it's heavily concentrated into that stock.
Image source: The Motley Fool.
However, Buffett likely doesn't care about concentration, as he once said: "You know, we think diversification is -- as practiced generally -- makes very little sense for anyone that knows what they're doing... it is a protection against ignorance."
Essentially, Buffett is stating that if you've done your homework and know that a stock has upside and is protected from downside risk, there's no limit to how much of your portfolio should be devoted to that stock. For most investors, this may not be the best strategy. Likely, running your retirement portfolio or brokerage account isn't your day job, so you can't keep daily tabs on every company you own.
On the other hand, a company with vast resources like Berkshire Hathaway can. So if something goes wrong, it can get out of the position (although dumping $150 billion worth of Apple stock on the market would undoubtedly cause some panic).
Regardless, I think trimming Berkshire's Apple position would be prudent right now, as its financials are beginning to turn south, and its valuation is quite high.
Apple's stock is expensive
In Apple's first quarter of fiscal year 2023 (ending Dec. 31, 2022), its revenue fell 5.4%. While management noted iPhone 14 shortages during the holiday season, it's still worrisome that Apple's revenue is moving in the wrong direction.
With the consumer's dollar getting stretched thin thanks to inflation and soaring housing costs, expensive devices like iPhones and their accessories may be on the chopping block for many. Investors likely won't see the full effect for at least a couple of years, as people may hold on to their devices for longer. This delayed feedback loop could cause Apple's stock some serious trouble if it turns out to be true.
Earnings also took a hit, thanks to rising operating costs, which were up 12% in Q1. With earnings per share (EPS) falling 10% in Q1, Apple's stock is beginning to look overvalued.
AAPL PE Ratio data by YCharts
Apple's price-to-earnings multiple (P/E) has expanded significantly over the past decade, and its expensive 28 times earnings valuation is well above its pre-COVID highs. With falling revenue and rising expenses, Apple's stock looks quite expensive and, quite frankly, overvalued.
If Berkshire sold some stock here, it could raise more cash at a premium valuation and purchase better values in the market. While I still think Apple has a significant role in the economy, its days of strong growth are likely over, and the stock hasn't come to that reality.
Portfolio concentration can work out fantastically if you're right (as Berkshire has been about Apple since it opened its position in 2016).However, if you're wrong, it can severely hurt an investment portfolio through substantial losses. In my opinion, Apple is too large of a position in Berkshire's portfolio, and there are better stocks out there that Buffett could be deploying his resources toward.
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 March 8, 2023
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of all the great investments Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has made, few have been more successful than Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Apple's price-to-earnings multiple (P/E) has expanded significantly over the past decade, and its expensive 28 times earnings valuation is well above its pre-COVID highs. With the consumer's dollar getting stretched thin thanks to inflation and soaring housing costs, expensive devices like iPhones and their accessories may be on the chopping block for many.
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Of all the great investments Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has made, few have been more successful than Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Apple's price-to-earnings multiple (P/E) has expanded significantly over the past decade, and its expensive 28 times earnings valuation is well above its pre-COVID highs. Buffett isn't as concerned about diversification as others Part of the reason Berkshire buys and holds Apple is that Buffett prefers to own businesses, not stocks.
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Of all the great investments Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has made, few have been more successful than Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Apple's price-to-earnings multiple (P/E) has expanded significantly over the past decade, and its expensive 28 times earnings valuation is well above its pre-COVID highs. Buffett isn't as concerned about diversification as others Part of the reason Berkshire buys and holds Apple is that Buffett prefers to own businesses, not stocks.
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Of all the great investments Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has made, few have been more successful than Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Apple's price-to-earnings multiple (P/E) has expanded significantly over the past decade, and its expensive 28 times earnings valuation is well above its pre-COVID highs. However, there comes a time when every portfolio manager should trim their positions, and Apple is certainly at that point for Berkshire.
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16432.0
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2023-04-08 00:00:00 UTC
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Worried About Elon's AI Pause? 3 Top Stocks You Can Buy That Wouldn't Be Impacted
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AAPL
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https://www.nasdaq.com/articles/worried-about-elons-ai-pause-3-top-stocks-you-can-buy-that-wouldnt-be-impacted
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nan
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nan
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"Should we develop nonhuman minds that might eventually outnumber, outsmart, obsolete and replace us? Should we risk loss of control of our civilization?" These questions were asked in a March open letter referring to artificial-intelligence (AI) technology -- an open letter signed by Tesla CEO Elon Musk, Apple co-founder Steve Wozniak, and thousands of more people. Many of the signatories believe that AI poses an existential threat to humanity and they want to do something about it.
"We call on all AI labs to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4." GPT-4 is the conversational AI chatbot developed by OpenAI in partnership with Microsoft that's taken the world by storm.
This article won't explore the potential impact of this letter on the world of AI. I'm more interested in what companies are promising buys regardless of AI's future. If AI technology were to be paused tomorrow, I wouldn't expect Amazon (NASDAQ: AMZN), Xometry (NASDAQ: XMTR), or CrowdStrike Holdings (NASDAQ: CRWD) to skip a beat. Here's why.
1. Amazon
Don't look now, but Amazon stock is actually underperforming the market over the past five years, just a 46% gain compared to a 55% gain for the S&P 500. There are good reasons the stock is coming up short right now. The bulk of its business is in e-commerce, and e-commerce-related expenses have skyrocketed.
Looking at the 10-year chart of Amazon below, there's an amazingly strong correlation between the company's stock price and its operating income. In 2022, its operating income fell 51% year over year to $12.2 billion, largely because of the aforementioned issues with e-commerce costs in North America. For perspective, full-year operating income for just the North America business segment dropped by more than $10 billion from 2021 to 2022.
AMZN data by YCharts
Operating income for Amazon's North America business segment is poised to rebound in 2023 and beyond regardless of what happens in the world of AI. According to management, its operating profit took a $2.7 billion hit in the fourth quarter of 2022 just from layoffs, property and equipment impairment charges, and changes in liability estimates for self-insurance. Many of these charges should be non-recurring.
Even if Amazon's revenue growth slows to a crawl, merely making improvements to its operating margin should help the stock regain ground. That's a big reason that I believe Amazon stock is undervalued today.
2. Xometry
To be clear, Elon Musk and others aren't necessarily against all forms of AI. The technology exists on a spectrum and many tech companies, if not most, already employ at least some form of AI. And this includes manufacturing marketplace Xometry.
On March 30, Xometry released new product features driven by AI -- the kind that wouldn't be paused under Musk's proposals. The company's technology can now provide buyers with instant quotes for certain custom manufactured items. For buyers, this speed can be an incredible value proposition. Traditionally long lead times in manufacturing can be a source of frustration.
Xometry isn't well known -- it's a marketplace connecting third-party manufacturers with buyers. But its marketplace is fast-growing. Full-year 2022 revenue was up 75% year over year to $381 million. And, importantly, active buyers surpassed 40,000 in 2022, up 45% from the end of 2021. By enhancing the value proposition of its platform with AI upgrades, it could keep gaining adoption for years to come.
If Xometry can continue growing, that would be great for shareholders because it's getting more profitable with scale. The company's gross profit grew 158% year over year in 2022 -- far outpacing revenue growth. And its gross margin in the fourth quarter of 2022 was 37% compared to 31% in the prior-year period.
XMTR Revenue (TTM) data by YCharts
Xometry went public less than two years ago and still has a lot to prove. But it's growing and getting more profitable with scale.
3. CrowdStrike
Cybersecurity is one of the great secular growth trends of our time. And that reality has nothing to do with the rise of AI chatbots. If advancements in AI were paused tomorrow, the cybersecurity market would still be growing by tens of billions of dollars annually. For example, third-party research company Fortune Business Insights believes it will grow from about a $140 billion market in 2021 to a $376 billion market by 2029.
CrowdStrike is a cybersecurity player that investors should take seriously. In the company's latest presentation, it cites third-party data from International Data Corporation (IDC). According to IDC, CrowdStrike grew revenue and market share more than any other endpoint cybersecurity company from July 2021 through the end of June 2022.
CrowdStrike appears to be gaining market share for a simple reason: Its platform has 23 different cybersecurity modules, addressing a wide swath of disparate cybersecurity needs. Over time, its customers keep adding new modules to their subscription packages. At the end of fiscal 2023 (ended Jan. 31), 62% of customers had five or more CrowdStrike modules, up from just 2% of customers in fiscal 2018.
Most of CrowdStrike's customers still have room to add additional modules over time, giving more revenue upside. Moreover, the company is still adding new customers at a rapid pace -- nearly 1,900 net new customers in the most recent quarter alone. And the overall market opportunity is still growing as well, as already mentioned, which points to higher revenue for CrowdStrike long term.
AI may be a hot news topic and one that investors are understandably excited about. But I hope it's clear that CrowdStrike's growth isn't dependent on the adoption of AI -- its development could be paused and CrowdStrike would still have a large growth opportunity. The same is true for Amazon and Xometry.
Therefore, if you're an investor worried that Musk's letter will hit the brakes on AI, then take a look at these three stocks.
10 stocks we like better than Amazon.com
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*Stock Advisor returns as of March 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jon Quast has positions in Amazon.com and CrowdStrike. The Motley Fool has positions in and recommends Amazon.com, Apple, CrowdStrike, Microsoft, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AMZN data by YCharts Operating income for Amazon's North America business segment is poised to rebound in 2023 and beyond regardless of what happens in the world of AI. According to management, its operating profit took a $2.7 billion hit in the fourth quarter of 2022 just from layoffs, property and equipment impairment charges, and changes in liability estimates for self-insurance. On March 30, Xometry released new product features driven by AI -- the kind that wouldn't be paused under Musk's proposals.
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These questions were asked in a March open letter referring to artificial-intelligence (AI) technology -- an open letter signed by Tesla CEO Elon Musk, Apple co-founder Steve Wozniak, and thousands of more people. If AI technology were to be paused tomorrow, I wouldn't expect Amazon (NASDAQ: AMZN), Xometry (NASDAQ: XMTR), or CrowdStrike Holdings (NASDAQ: CRWD) to skip a beat. AMZN data by YCharts Operating income for Amazon's North America business segment is poised to rebound in 2023 and beyond regardless of what happens in the world of AI.
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If AI technology were to be paused tomorrow, I wouldn't expect Amazon (NASDAQ: AMZN), Xometry (NASDAQ: XMTR), or CrowdStrike Holdings (NASDAQ: CRWD) to skip a beat. Amazon Don't look now, but Amazon stock is actually underperforming the market over the past five years, just a 46% gain compared to a 55% gain for the S&P 500. But I hope it's clear that CrowdStrike's growth isn't dependent on the adoption of AI -- its development could be paused and CrowdStrike would still have a large growth opportunity.
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Xometry isn't well known -- it's a marketplace connecting third-party manufacturers with buyers. The company's gross profit grew 158% year over year in 2022 -- far outpacing revenue growth. That's right -- they think these 10 stocks are even better buys.
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16433.0
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2023-04-08 00:00:00 UTC
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ChatGPT Exposes Siri and Alexa's Biggest Flaws
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AAPL
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https://www.nasdaq.com/articles/chatgpt-exposes-siri-and-alexas-biggest-flaws
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nan
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nan
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OpenAI has opened ChatGPT up to developers through the use of plug-ins, and that allows them to build new capabilities for the chatbot. What's amazing is that it's already more capable than Siri and Alexa in a lot of ways, which Travis Hoium thinks will be disruptive to virtual assistants.
*Stock prices used were end-of-day prices of April 4, 2023. The video was published on April 6, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, Shopify, and Snap. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Shopify. 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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What's amazing is that it's already more capable than Siri and Alexa in a lot of ways, which Travis Hoium thinks will be disruptive to virtual assistants. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. 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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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 March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, Shopify, and Snap.
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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 March 8, 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, Amazon.com, Apple, Microsoft, and Shopify.
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That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, Shopify, and Snap.
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16434.0
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2023-04-08 00:00:00 UTC
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This Warren Buffett ETF Could Take You From $5,000 to $87,000 With Next to No Effort
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-etf-could-take-you-from-%245000-to-%2487000-with-next-to-no-effort
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nan
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nan
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The stock market can be intimidating at times, especially during periods of economic uncertainty. With concerns that a recession may be on the horizon, it can be a particularly daunting time to invest.
However, the right investments can keep your money safer, regardless of what the future holds. While there isn't necessarily a right or wrong way to invest, there's one exchange-traded fund (ETF) Warren Buffett highly recommends, and it could take you from $5,000 to more than $87,000 while barely lifting a finger.
A safe (yet powerful) investment
One of Warren Buffett's most highly recommended investments is the S&P 500 ETF. In fact, it's the only ETF in his Berkshire Hathaway portfolio, which invests in both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Buffett has long encouraged investors to opt for an S&P 500 ETF, and he famously put his money where his mouth was in 2008 when he bet that this type of investment would outperform a group of hedge funds.
He won that bet by a landslide, with the S&P 500 fund earning total returns of more than 125% over 10 years. Meanwhile, the five hedge funds' total returns averaged out to only around 36% in that timeframe.
Not only is the S&P 500 a powerful investment, it's also one of the safest options out there. This fund contains stocks from 500 of the largest and strongest companies in the U.S., with the largest holdings including household names like Apple, Amazon, and Microsoft.
This type of fund is also well-diversified, which limits your risk. Because there are hundreds of stocks across a wide variety of industries, this ETF is more protected against market downturns. Even if we do face a recession or more severe bear market, the S&P 500 is almost guaranteed to recover.
Building wealth with the S&P 500 ETF
Perhaps one of the best advantages of this investment, though, is that it's incredibly low maintenance. With just one fund, you'll own a stake in hundreds of different stocks. That means you never need to worry about researching companies or deciding when to buy or sell.
All you have to do, then, is invest consistently and give your money time to grow. Over time, even a relatively small amount of money can grow into tens or even hundreds of thousands of dollars.
For example, say you invested $5,000 in an S&P 500 ETF today. Historically, the index itself has earned an average rate of return of around 10% per year. At that rate, you'd accumulate just over $87,000 after around 30 years -- assuming you just let your money sit and made zero additional contributions.
To really supercharge your savings, though, you can invest a small amount each month in addition to your initial contribution. Say, for instance, you were to invest $5,000 now plus $200 per month. Assuming you're still earning a 10% average annual return, here's approximately how much you'd accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $171,000
25 $290,000
30 $482,000
35 $791,000
40 $1,289,000
Data source: Author's calculations via Investor.gov
For many investors, the S&P 500 ETF is the best of all worlds. It requires minimal effort on your part, it carries less risk than many other investments, and it can potentially help you reach millionaire status over time.
The best way to take advantage of an S&P 500 ETF is to start investing now. Even if you can't afford to contribute much each month, a little can go a long way. And the sooner you get started, the less you'll need to invest monthly to accumulate hundreds of thousands of dollars or more.
10 stocks we like better than Vanguard S&P 500 ETF
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 Vanguard S&P 500 ETF 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 March 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While there isn't necessarily a right or wrong way to invest, there's one exchange-traded fund (ETF) Warren Buffett highly recommends, and it could take you from $5,000 to more than $87,000 while barely lifting a finger. Buffett has long encouraged investors to opt for an S&P 500 ETF, and he famously put his money where his mouth was in 2008 when he bet that this type of investment would outperform a group of hedge funds. It requires minimal effort on your part, it carries less risk than many other investments, and it can potentially help you reach millionaire status over time.
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While there isn't necessarily a right or wrong way to invest, there's one exchange-traded fund (ETF) Warren Buffett highly recommends, and it could take you from $5,000 to more than $87,000 while barely lifting a finger. Meanwhile, the five hedge funds' total returns averaged out to only around 36% in that timeframe. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF.
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A safe (yet powerful) investment One of Warren Buffett's most highly recommended investments is the S&P 500 ETF. In fact, it's the only ETF in his Berkshire Hathaway portfolio, which invests in both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Buffett has long encouraged investors to opt for an S&P 500 ETF, and he famously put his money where his mouth was in 2008 when he bet that this type of investment would outperform a group of hedge funds.
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With just one fund, you'll own a stake in hundreds of different stocks. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF.
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16435.0
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2023-04-08 00:00:00 UTC
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Baidu sues Apple, app developers over fake Ernie bot apps
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AAPL
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https://www.nasdaq.com/articles/baidu-sues-apple-app-developers-over-fake-ernie-bot-apps
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nan
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nan
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SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store.
The company's artificial intelligence powered Ernie bot, launched last month, has been touted as China's closest answer to the U.S.-developed chatbot ChatGPT.
Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company.
"At present, Ernie does not have any official app," Baidu said in a statement late on Friday posted on its official "Baidu AI" WeChat account.
It also posted a photograph of its court filing.
"Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said.
Apple did not immediately respond to a request for comment.
A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store.
The Ernie bot is only available to users who apply for and receive access codes. In its statement, Baidu also warned against people selling access codes.
(Reporting by Jason Xue and Brenda Goh; Editing by Robert Birsel)
((Jason.Xue@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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SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. The company's artificial intelligence powered Ernie bot, launched last month, has been touted as China's closest answer to the U.S.-developed chatbot ChatGPT. Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company.
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SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. "Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said. A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store.
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SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. "Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said. A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store.
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SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company. In its statement, Baidu also warned against people selling access codes.
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16436.0
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2023-04-07 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-16
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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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16437.0
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2023-04-07 00:00:00 UTC
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Stock Split Watch: Is Costco Next?
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AAPL
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https://www.nasdaq.com/articles/stock-split-watch%3A-is-costco-next-1
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nan
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nan
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Stock splits have been popular over the last few years. Among the high-profile stocks that have split their shares since 2020 are Tesla, Apple, Alphabet, Amazon, and Shopify, among others.
Given that hit parade, it's not surprising that investors would be wondering if some other closely watched stocks could follow. One potential candidate is Costco (NASDAQ: COST), which is hovering around $500 a share currently.
Before considering whether Costco will go ahead with a stock split, let's review the reasoning behind stock splits.
Image source: Costco.
Why companies split their stock
Every investor should understand that there's no inherent benefit in a stock split. A stock split simply divides the available pool of shares into more pieces. The total value remains the same.
However, there are some benefits to a stock split. First, it creates the perception that a stock has more room to run. Management is making the decision to lower the stock price, a sign they feel the individual share price has gotten too expensive or has passed some milestone like $500/share, or $1,000/share.
It also makes individual shares more affordable for retail investors. There is some evidence that stocks that do split their shares outperform over the next 12 months, though that could be because of investor perception or because the stock split is representative of momentum in the underlying business. However, investors should remember that there's no direct causal effect from the stock split on the business's fundamentals.
A stock split also gives larger businesses the chance to join the Dow Jones Industrial Average. Since the Dow Jones is a price-weighted index, it avoids adding stocks with excessively high share prices.
Costco's stock split history
You might think that Costco would have a long history of stock splits, given its current price near $500 and its success in the retail industry. But the company hasn't split its stock since 2000, during the dot-com boom, another era when stock splits were popular.
Costco has only split its stock three times in its history since the company went public in 1985.
At the time of writing, Costco's stock is priced at $497.13, a high enough share price to warrant a split. Management hasn't discussed a stock split, but companies generally prefer to split their stocks on strength rather than weakness -- and Costco stock has struggled of late, down 13.6% over the last year and slightly underperforming the S&P 500.
Additionally, the company's performance seems to be weakening, as its March sales report missed expectations. Adjusting for fuel prices and currency exchange, the retailer reported comparable sales growth of just 2.6% in the five weeks ended April 2. Comps were particularly weak in the U.S., up just 0.9% after adjusting for fuel. E-commerce sales were down 11.6%, which is due in part to difficult comparisons, but also shows the company struggling with one of its key growth areas.
Costco stock is now down about 18% from its peak about a year ago.
Will Costco split its stock?
Costco is facing a number of challenges in the macroeconomic environment as the U.S. economy could be headed toward a recession. Though the company sells mostly consumer staples, its sales growth is slowing as consumer spending shifts toward services like travel and restaurants, and as some people may be trading down to cheaper options after two years of high inflation.
Considering that stocks are still in a bear market, Costco shares are well off their 52-week high. Since the company has avoided stock splits for two decades, and the business momentum seems to be fading, a stock split for Costco seems unlikely in the near future.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon.com and Shopify. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Shopify, 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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Adjusting for fuel prices and currency exchange, the retailer reported comparable sales growth of just 2.6% in the five weeks ended April 2. E-commerce sales were down 11.6%, which is due in part to difficult comparisons, but also shows the company struggling with one of its key growth areas. 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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Among the high-profile stocks that have split their shares since 2020 are Tesla, Apple, Alphabet, Amazon, and Shopify, among others. Since the company has avoided stock splits for two decades, and the business momentum seems to be fading, a stock split for Costco seems unlikely in the near future. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Shopify, and Tesla.
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Costco's stock split history You might think that Costco would have a long history of stock splits, given its current price near $500 and its success in the retail industry. Management hasn't discussed a stock split, but companies generally prefer to split their stocks on strength rather than weakness -- and Costco stock has struggled of late, down 13.6% over the last year and slightly underperforming the S&P 500. Since the company has avoided stock splits for two decades, and the business momentum seems to be fading, a stock split for Costco seems unlikely in the near future.
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Adjusting for fuel prices and currency exchange, the retailer reported comparable sales growth of just 2.6% in the five weeks ended April 2. Will Costco split its stock? The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Shopify, and Tesla.
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16438.0
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2023-04-06 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-15
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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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16439.0
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2023-04-06 00:00:00 UTC
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3 Cryptos That Day Traders Love Right Now
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AAPL
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https://www.nasdaq.com/articles/3-cryptos-that-day-traders-love-right-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cryptocurrencies delivered huge gains for investors during the previous bull market. Yet, more than a few got wiped out as they plunged from their late-2021 peaks. But with 2023 looking like it could be the start of the thaw following crypto winter, let’s look at the best cryptos for day trading.
When it comes to ultra-short-term trading, nothing trumps liquidity. In that sense, the best cryptos for day trading are highly liquid and generally well-known. The smaller, low-volume cryptos can work during trending markets over a longer holding period. However, for in-and-out scalps, we need liquid cryptos.
So, you’re likely to recognize all of the best cryptos for day trading below.
BTC Bitcoin $28,031.86
ETH Ethereum $1,871.62
DOGE Dogecoin $0.08
Bitcoin (BTC)
Source: Shutterstock
In the sense of size and liquidity, how can we not kick off the list with Bitcoin (BTC-USD)? Bitcoin is the largest crypto in the world, with a market cap of around $540 billion. It’s the most well-known cryptocurrency out there, garnering the bulk of the industry’s attention. Over the past three months, its trading volume has averaged $25.8 billion a day.
Day traders focused on cryptos must keep Bitcoin on their watchlist, even if they’re not trading it. That’s because the movement in Bitcoin impacts other cryptocurrencies, similar to the way the movement in stocks like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) can impact the rest of the tech sector.
Bitcoin had a stellar first quarter. According to Finbold, “Bitcoin’s return on investment (ROI) was 170.32% more compared to the average of five major stock indexes. During the quarter, Bitcoin’s returns stood at 69.4%, while average returns for the indexes stood at 5.5%.”
The bulls are certainly in charge at the moment, buying the dips and sending the crypto soaring higher. The next important level to watch is $30,000, which is just 7% above where BTC currently trades.
Ethereum (ETH)
Source: Shutterstock
Ethereum (ETH-USD) also had a great Q1, rallying about 50% in the first three months of the year and more than doubling off of its 2022 low. It is the second-largest cryptocurrency after Bitcoin, with a market cap of about $224.5 billion.
Ethereum is also one of the most widely traded cryptocurrencies, with an average daily trading volume of $8.6 billion. That makes the token one of the best cryptos for day trading.
For what it’s worth, Ethereum deserves every bit as much attention as Bitcoin gets given that it has such a wide range of applications. It’s faster when it comes to transactions, and its smart contracts offer real-world solutions as technology continues to evolve.
Dogecoin (DOGE)
Source: Orpheus FX / Shutterstock.com
As silly as Dogecoin (DOGE-USD) is, it’s on the list of the best cryptos for day trading due to its large following and ample liquidity. After the tethered crypto holdings, Bitcoin and Ethereum, Dogecoin is next on the list for daily trading volume.
It has traded an average of $604.6 million a day over the past three months and commands a market cap of $11.9 billion. It may have started off as a joke, but its large following isn’t.
It certainly doesn’t hurt that Tesla (NASDAQ:TSLA) and Twitter CEO Elon Musk has a fascination with the cryptocurrency. In fact, he recently integrated the logo into the Twitter platform, adding a quick $4 billion to the token’s market value.
Day traders thrive on volatility and massive moves like this. While I don’t personally believe in the long-term viability of Dogecoin, this one puts together enough moves for day traders to take advantage of.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Cryptos That Day Traders Love Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That’s because the movement in Bitcoin impacts other cryptocurrencies, similar to the way the movement in stocks like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) can impact the rest of the tech sector. According to Finbold, “Bitcoin’s return on investment (ROI) was 170.32% more compared to the average of five major stock indexes. It certainly doesn’t hurt that Tesla (NASDAQ:TSLA) and Twitter CEO Elon Musk has a fascination with the cryptocurrency.
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That’s because the movement in Bitcoin impacts other cryptocurrencies, similar to the way the movement in stocks like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) can impact the rest of the tech sector. BTC Bitcoin $28,031.86 ETH Ethereum $1,871.62 DOGE Dogecoin $0.08 Bitcoin (BTC) Source: Shutterstock In the sense of size and liquidity, how can we not kick off the list with Bitcoin (BTC-USD)? During the quarter, Bitcoin’s returns stood at 69.4%, while average returns for the indexes stood at 5.5%.” The bulls are certainly in charge at the moment, buying the dips and sending the crypto soaring higher.
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That’s because the movement in Bitcoin impacts other cryptocurrencies, similar to the way the movement in stocks like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) can impact the rest of the tech sector. But with 2023 looking like it could be the start of the thaw following crypto winter, let’s look at the best cryptos for day trading. BTC Bitcoin $28,031.86 ETH Ethereum $1,871.62 DOGE Dogecoin $0.08 Bitcoin (BTC) Source: Shutterstock In the sense of size and liquidity, how can we not kick off the list with Bitcoin (BTC-USD)?
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That’s because the movement in Bitcoin impacts other cryptocurrencies, similar to the way the movement in stocks like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) can impact the rest of the tech sector. In that sense, the best cryptos for day trading are highly liquid and generally well-known. BTC Bitcoin $28,031.86 ETH Ethereum $1,871.62 DOGE Dogecoin $0.08 Bitcoin (BTC) Source: Shutterstock In the sense of size and liquidity, how can we not kick off the list with Bitcoin (BTC-USD)?
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16440.0
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2023-04-06 00:00:00 UTC
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The 3 Biggest Risks Facing GOOG Stock Today
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AAPL
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https://www.nasdaq.com/articles/the-3-biggest-risks-facing-goog-stock-today
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The 2022 tech wreck wiped out 40% of Alphabet’s (NASDAQ:GOOG) equity value. However, 2023 has brought GOOG stock within 3% of where it was two years ago.
The company behind Google is now worth $1.33 trillion, making it the third most-valuable of the “Cloud Czars” behind Apple (NASDAQ:AAPL) at $2.6 trillion and Microsoft (NASDAQ:MSFT) at $2.1 trillion.
But neither of the two leaders are as dependent on their cloud data centers as Google, which mainly offers free services and re-sells access to its cloud.
What investors need to ask now is whether the Cloud is still worth that premium, whether the service revenue can keep expanding, and how productivity will hold up as management clamps down on spending.
Is the Golden Age Over?
Google’s “Golden Age,” the years where management could do no wrong and engineers were treated like gods, ended abruptly in January. This came after CEO Sundar Pichai announced 12,000 layoffs. Additionally, the company followed that up with demands to return to the office, reduced perks, and with limiting promotions.
In response, its Japanese employees joined a labor union. British employees staged a walkout. The layoffs amounted to a 6% workforce reduction, but employment has still more than doubled since 2017.
“Google was beloved as an employer for years. Then it laid off thousands by email,” wrote CNN, summing up the reaction. The company’s old mantra of “don’t be evil” now seems quaint and passe’.
Google’s Three Big Challenges
Despite its comeuppance, GOOG stock still faces huge challenges.
Let’s start with antitrust suits. There’s the big one against its ad business. There’s a suit against its Google Play store by Epic Games. There’s also an Indian suit against the Android operating system. Indeed, Google now has fewer programmers and a lot more lawyers, many of them former Department of Justice attorneys.
The biggest challenge comes from Microsoft in the form of generative AI systems like ChatGPT. Bots that generate full text responses have created an AI “arms race” which Google’s “Bard” seems to be losing.
Then there’s TikTok. The Chinese social networking site has entered the search ad market. Efforts in the U.S. to ban it have placed a spotlight on the use of Google itself as a spy tool.
Is Google Overvalued?
For investors there’s only one question. Is GOOG stock overvalued?
On April 4, Alphabet was selling for nearly 23-times earnings, close to the S&P average. Its market cap was about 4.8-times revenue. The company pays no dividend, but has $131 billion in cash and securities. Its long-term debt of $14.7 billion is relatively miniscule.
Google services like search and YouTube are where the profit is. It’s still losing money in Cloud, partly due to the costs of GMail, which remains free. The $1.9-$2.3 billion cost of layoffs will all be recognized in the March quarter, to be reported April 25. In its December quarter, profits were down by about one-third, so expect more bad news.
That said, Google retains enormous strengths. Its cloud network is now worth over $112 billion. Android still dominates Apple’s iOS in smartphone market share. And generative AI systems should save Google enormous amounts of money, providing lucrative business opportunities, even if the company starts out behind.
What To Do with Google?
I bought some GOOG stock last year while it was falling, and am still down on that investment. My guess is that, after earnings, you’ll be able to get shares for less than their current price.
But the Cloud Era hasn’t ended. With AI, it’s entering a new phase. Through the rest of this decade Google stock will do fine. It’s one of those things you buy rather than trade.
On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post The 3 Biggest Risks Facing GOOG Stock Today 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 behind Google is now worth $1.33 trillion, making it the third most-valuable of the “Cloud Czars” behind Apple (NASDAQ:AAPL) at $2.6 trillion and Microsoft (NASDAQ:MSFT) at $2.1 trillion. On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, and MSFT. Google’s “Golden Age,” the years where management could do no wrong and engineers were treated like gods, ended abruptly in January.
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The company behind Google is now worth $1.33 trillion, making it the third most-valuable of the “Cloud Czars” behind Apple (NASDAQ:AAPL) at $2.6 trillion and Microsoft (NASDAQ:MSFT) at $2.1 trillion. On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, and MSFT. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The 2022 tech wreck wiped out 40% of Alphabet’s (NASDAQ:GOOG) equity value.
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The company behind Google is now worth $1.33 trillion, making it the third most-valuable of the “Cloud Czars” behind Apple (NASDAQ:AAPL) at $2.6 trillion and Microsoft (NASDAQ:MSFT) at $2.1 trillion. On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, and MSFT. Google’s Three Big Challenges Despite its comeuppance, GOOG stock still faces huge challenges.
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The company behind Google is now worth $1.33 trillion, making it the third most-valuable of the “Cloud Czars” behind Apple (NASDAQ:AAPL) at $2.6 trillion and Microsoft (NASDAQ:MSFT) at $2.1 trillion. On the date of publication, Dana Blankenhorn held long positions in AAPL, GOOGL, and MSFT. The $1.9-$2.3 billion cost of layoffs will all be recognized in the March quarter, to be reported April 25.
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16441.0
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2023-04-06 00:00:00 UTC
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After Hours Most Active for Apr 6, 2023 : S, AAPL, ASND, SCHW, LI, COTY, AMZN, QQQ, XOM, MSFT, T, CVX
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-6-2023-%3A-s-aapl-asnd-schw-li-coty-amzn-qqq-xom-msft-t-cvx
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -9.26 to 13,053.34. The total After hours volume is currently 89,680,348 shares traded.
The following are the most active stocks for the after hours session:
SentinelOne, Inc. (S) is unchanged at $16.65, with 3,971,495 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2023. The consensus EPS forecast is $-0.34. As reported by Zacks, the current mean recommendation for S is in the "buy range".
Apple Inc. (AAPL) is -0.04 at $164.62, with 2,162,862 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Ascendis Pharma A/S (ASND) is unchanged at $72.69, with 2,157,840 shares traded. As reported in the last short interest update the days to cover for ASND is 12.855834; this calculation is based on the average trading volume of the stock.
The Charles Schwab Corporation (SCHW) is -0.05 at $49.30, with 2,070,647 shares traded. As reported by Zacks, the current mean recommendation for SCHW is in the "buy range".
Li Auto Inc. (LI) is -0.03 at $23.64, with 1,999,087 shares traded. LI's current last sale is 72.74% of the target price of $32.5.
Coty Inc. (COTY) is unchanged at $11.64, with 1,804,546 shares traded. As reported by Zacks, the current mean recommendation for COTY is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.07 at $101.99, with 1,520,442 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.17 at $317.88, with 1,480,705 shares traded. This represents a 25.02% increase from its 52 Week Low.
Exxon Mobil Corporation (XOM) is -0.03 at $115.02, with 1,354,511 shares traded. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
Microsoft Corporation (MSFT) is +0.04 at $291.64, with 1,292,212 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
AT&T Inc. (T) is unchanged at $19.65, with 1,007,324 shares traded. T's current last sale is 88.31% of the target price of $22.25.
Chevron Corporation (CVX) is -0.02 at $167.63, with 909,069 shares traded. CVX's current last sale is 88.23% of the target price of $190.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.04 at $164.62, with 2,162,862 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2023.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.04 at $164.62, with 2,162,862 shares traded. The total After hours volume is currently 89,680,348 shares traded.
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Apple Inc. (AAPL) is -0.04 at $164.62, with 2,162,862 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2023.
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Apple Inc. (AAPL) is -0.04 at $164.62, with 2,162,862 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2023.
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16442.0
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2023-04-06 00:00:00 UTC
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Banking Crisis: Implications for ETF Investors
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AAPL
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https://www.nasdaq.com/articles/banking-crisis%3A-implications-for-etf-investors
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nan
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nan
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(1:30) - The Repercussions From The Banking Crisis: Is It All Over?
(6:50) - Breaking Down The Federal Reserve Decisions: Is A Soft Landing Possible?
(13:00) - Is This A Good Time To Start Investing Into The Banking Industry?
(15:10) - What Are Preferred Stocks and How Can They Benefit Your Portfolio?
(19:15) - ETFs You Should Keep On Your Watchlist: PFFA, PFF, PFXF, ICAP, AMZA
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, about the banking crisis and its implications for investors.
The banking situation appears to be stabilizing over the past few days, and a full-blown financial meltdown has been avoided, thanks to sweeping measures taken by regulators. However, JPMorgan JPM CEO Jamie Dimon said this week that the crisis is not over and will cause “repercussions for years to come.”
Many depositors are pulling money out of small and medium-sized banks and putting it into big banks or money market funds. Smaller businesses generally bank with local and regional banks, and if they find their access to bank credit restrained, it could cause an economic contraction.
The SPDR S&P Regional Banking ETF KRE and the iShares U.S. Regional Banks ETF IAT have plunged more than 28% year-to-date. The Invesco KBW Bank ETF (KBWB), which focuses on big banks, has lost 21% since the crisis started.
Investors will be keeping a close eye on bank earnings starting next week to assess the impact on individual banks.
As banks have suffered their worst declines since 2008, investors have piled into safe-haven assets and mega-cap tech stocks like Apple AAPL and Microsoft MSFT. The crisis could force the Fed to change its rate hike plans for the rest of the year, which could benefit these areas.
Many income-focused investors look at preferred stock ETFs due to their juicy yields. They should remember that these products have a lot of exposure to banks. The preferred stocks issued by SVB Financial Group and Signature Bank might have little or no recovery value.
Jay manages three ETFs that aim to meet the needs of income-focused investors. These are generally backed by assets that generate substantial streams of free cash flow and use modest leverage or options strategies to enhance income.
The Virtus InfraCap U.S. Preferred Stock ETF PFFA has lower exposure to banks compared to other popular preferred ETFs and higher weights to other financial institutions such as insurance companies.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
iShares U.S. Regional Banks ETF (IAT): ETF Research Reports
Virtus InfraCap U.S. Preferred Stock ETF (PFFA): 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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As banks have suffered their worst declines since 2008, investors have piled into safe-haven assets and mega-cap tech stocks like Apple AAPL and Microsoft MSFT. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports iShares U.S. The banking situation appears to be stabilizing over the past few days, and a full-blown financial meltdown has been avoided, thanks to sweeping measures taken by regulators.
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports iShares U.S. As banks have suffered their worst declines since 2008, investors have piled into safe-haven assets and mega-cap tech stocks like Apple AAPL and Microsoft MSFT. Regional Banks ETF (IAT): ETF Research Reports Virtus InfraCap U.S.
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Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports iShares U.S. As banks have suffered their worst declines since 2008, investors have piled into safe-haven assets and mega-cap tech stocks like Apple AAPL and Microsoft MSFT. Preferred Stock ETF PFFA has lower exposure to banks compared to other popular preferred ETFs and higher weights to other financial institutions such as insurance companies.
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As banks have suffered their worst declines since 2008, investors have piled into safe-haven assets and mega-cap tech stocks like Apple AAPL and Microsoft MSFT. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports iShares U.S. Preferred Stock ETF PFFA has lower exposure to banks compared to other popular preferred ETFs and higher weights to other financial institutions such as insurance companies.
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16443.0
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2023-04-06 00:00:00 UTC
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The 3 Best Ways to Build Generational Wealth In the Stock Market
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AAPL
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https://www.nasdaq.com/articles/the-3-best-ways-to-build-generational-wealth-in-the-stock-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You know how the saying goes. The best time to plant a tree, or build generational wealth, was 30 years ago. The second-best time is right now.
For those looking to pass something down to their grandkids, there’s always the question of what the best sort of investment is. Sure, bonds now carry yields we haven’t seen in quite some time. However, passing down a bond-filled portfolio that may underperform inflation in the long term doesn’t sound enticing.
Indeed, equities have been the best-performing assets over the very long term, for good reason. Those looking to build generational wealth generally do so in stocks and real estate.
Here are three growth stocks I think investors looking to create more than a nest egg should consider. These companies have the sort of growth characteristics and durable competitive advantages that are so rare in this day and age.
Let’s dive in!
Apple (AAPL)
Source: Hadrian / Shutterstock.com
Apple (NASDAQ:AAPL) is the world’s leading publicly-traded company, with a massive market capitalization of $2.6 trillion. Apple is best known for offering a wide range of tech gadgets – from smartphones to wearable tech. However, despite being ubiquitous, Apple’s future is likely to be marked by fierce competition. Indeed, considering Apple’s margins, many competitors will likely continue to pop up, looking to take share away from this leader.
That said, Apple’s iPhone has actually seen its market share expand globally. Recently, the iPhone took more than 50% market share in the U.S., with strong positions forming in other key international markets.
Much of this has to do with Apple’s world-class brand, strong customer loyalty, and product ecosystem. Customers come to Apple knowing they will get some of the highest-quality techs out there. And while innovation has slowed (there’s only so much you can do with a smartphone) in recent years, there are plenty of other exciting improvements the company has made to its other gadgets it hopes will catch on, as the iPhone has.
I think the macro environment will likely remain difficult for Apple and its peers. That said, there’s a reason why analysts such as those at Goldman Sachs are growing bullish on AAPL stock. Over the long term, I think this is the right call, no matter what happens over the next year or two.
Alibaba (BABA)
Source: BigTunaOnline / Shutterstock.com
Alibaba (NYSE:BABA) is a technology and marketing platform provider that operates through seven distinct segments. Its China Commerce segment comprises several retail commerce businesses, including Taobao, Tmall, Freshippo, and wholesale. Alibaba’s International Commerce segment includes AliExpress and Lazada, among other international retail and wholesale commerce businesses.
Notably, Alibaba has recently made a big move, announcing plans to break up its company into six smaller entities. This move appears to be a bid to appease Chinese regulators, who don’t really fancy monopolies or outspoken CEOs (as has been seen with the Alibaba/Jack Ma story).
It’s unclear how BABA shareholders will be compensated for this break-up and how everything will shake out. For now, I think this move is a smart one, as Alibaba’s management team looks to minimize its geopolitical risk, particularly among foreign investors.
My view is that Alibaba isn’t “uninvestable” due to its Chinese base. Quite the opposite – I think growth in China is likely to far outpace that of the U.S. for the long term.
Thus, for those looking to make a significant bet on the strength of the global tech sector, BABA stock is the way I’m playing this trend right now.
Alphabet (GOOG)
Source: Castleski / Shutterstock.com
Among the best ways investors can build generational wealth has been Alphabet (NASDAQ:GOOG). This company, known for its core Google search business, has become a monster in other key segments. The company’s Google Cloud, YouTube, and “Other Bets” make Alphabet a well-diversified and vertically-integrated tech behemoth that’s more than just a search monopoly in most markets.
Of course, the company’s core search business is Alphabet’s core cash flow driver. The company has outperformed roughly 77% of its peers, with impressive growth in the past and a significant growth outlook moving forward.
The company’s growth prospects have been bolstered by increased capital spending last year. Thus, while many of its peers are cutting back, and Alphabet is likely to continue to trim around the edges, this is a company that appears to be invested in its long-term growth, particularly in the company’s Cloud segment.
Over the long term, I think Alphabet remains among the best tech options investors looking to build generational wealth can consider. Indeed, this is a top stock on my watch list right now. Accordingly, I plan on adding exposure to any material market weakness moving forward.
On the date of publication, Chris MacDonald has a position in AAPL, BABA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post The 3 Best Ways to Build Generational Wealth In the Stock Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s leading publicly-traded company, with a massive market capitalization of $2.6 trillion. That said, there’s a reason why analysts such as those at Goldman Sachs are growing bullish on AAPL stock. On the date of publication, Chris MacDonald has a position in AAPL, BABA.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s leading publicly-traded company, with a massive market capitalization of $2.6 trillion. That said, there’s a reason why analysts such as those at Goldman Sachs are growing bullish on AAPL stock. On the date of publication, Chris MacDonald has a position in AAPL, BABA.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s leading publicly-traded company, with a massive market capitalization of $2.6 trillion. That said, there’s a reason why analysts such as those at Goldman Sachs are growing bullish on AAPL stock. On the date of publication, Chris MacDonald has a position in AAPL, BABA.
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Apple (AAPL) Source: Hadrian / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s leading publicly-traded company, with a massive market capitalization of $2.6 trillion. That said, there’s a reason why analysts such as those at Goldman Sachs are growing bullish on AAPL stock. On the date of publication, Chris MacDonald has a position in AAPL, BABA.
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16444.0
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2023-04-06 00:00:00 UTC
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US STOCKS-S&P, Nasdaq reverse early declines to edge higher; monthly jobs data eyed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-reverse-early-declines-to-edge-higher-monthly-jobs-data-eyed
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 6 (Reuters) - The S&P 500 and the Nasdaq reversed early declines on the last day of a holiday-shortened week, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy.
Alphabet Inc GOOGL.O gained 2.4% on Thursday following a report that Google plans to add conversational artificial intelligence features to its search engine.
Other major technology and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Meta Platforms Inc META.O also reversed early losses and gained between 0.5% and 0.8%, boosting the Nasdaq .IXIC.
However, both the S&P 500 .SPX and the Nasdaq are headed for weekly declines for the first time in four weeks.
Adding to a slew of data signaling a weak labor market, initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, versus expectations of 200,000 claims.
The Labor Department's data from the prior week was revised to show 48,000 more applications were received.
Focus now shifts to the more comprehensive report on non-farm payrolls, which are expected to have increased by 239,000 in March, down from the 311,000 jobs added in the prior month.
The report is due on Friday, when the U.S. stock market will be closed for the Good Friday holiday.
Recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes.
However, unlike in the last few months when evidence of a cooling economy was cheered by investors on hopes it would allow for a less hawkish Fed, softer data has added to fears of a recession and pressured equities in recent days.
"The reality of what a recessionary period is like, the impact of rate hikes and the ripple effects we don't know yet (are weighing) on risk assets" said David Keller, chief market strategist at StockCharts.com.
"The Fed's steps appear to be working in terms of slowing down the economy, but the question is how long do they have to keep doing that?"
Fed fund futures are indicating a 52.2% chance of the U.S. central bank pausing rate hikes in May, according to CME Group's Fedwatch tool.
Big banks including JPMorgan Chase & Co JPM.N and Citigroup C.N will be among companies kicking off the quarterly reporting season next week, with investors eager for updates on the health of the sector after a recent banking crisis.
At 11:56 a.m. ET, the Dow Jones Industrial Average .DJI was down 52.07 points, or 0.16%, at 33,430.65, the S&P 500 .SPX was up 2.83 points, or 0.07%, at 4,093.21, and the Nasdaq Composite .IXIC was up 40.02 points, or 0.33%, at 12,036.88.
Among major stock moves, AMC Entertainment Holdings Inc AMC.N jumped 18.3% after a U.S. court denied the theater operator's request to lift a status quo order necessary for its stock conversion plan.
Levi Strauss & Co LEVI.N slid 15.1% after the apparel maker posted a fall in quarterly profit.
Declining issues outnumbered advancers for a 1.07-to-1 ratio on the NYSE and a 1.20-to-1 ratio on the Nasdaq.
The S&P index recorded 5 new 52-week highs and no new low, while the Nasdaq recorded 31 new highs and 137 new lows.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur 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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Other major technology and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Meta Platforms Inc META.O also reversed early losses and gained between 0.5% and 0.8%, boosting the Nasdaq .IXIC. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - The S&P 500 and the Nasdaq reversed early declines on the last day of a holiday-shortened week, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes.
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Other major technology and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Meta Platforms Inc META.O also reversed early losses and gained between 0.5% and 0.8%, boosting the Nasdaq .IXIC. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - The S&P 500 and the Nasdaq reversed early declines on the last day of a holiday-shortened week, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Adding to a slew of data signaling a weak labor market, initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, versus expectations of 200,000 claims.
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Other major technology and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Meta Platforms Inc META.O also reversed early losses and gained between 0.5% and 0.8%, boosting the Nasdaq .IXIC. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - The S&P 500 and the Nasdaq reversed early declines on the last day of a holiday-shortened week, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes.
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Other major technology and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Meta Platforms Inc META.O also reversed early losses and gained between 0.5% and 0.8%, boosting the Nasdaq .IXIC. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - The S&P 500 and the Nasdaq reversed early declines on the last day of a holiday-shortened week, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes.
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16445.0
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2023-04-06 00:00:00 UTC
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US STOCKS-Wall St falls as recession fears rise after jobless claims data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-recession-fears-rise-after-jobless-claims-data
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 6 (Reuters) - Wall Street's main indexes fell on Thursday as latest labor market data pointed to slowing economic growth due to rapid interest rate hikes, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy.
Initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, a Labor Department report showed, but the prior week data was revised to show 48,000 more applications were received.
Economists had expected 200,000 claims for the latest week.
Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 2.1% in early trading, while bond yields inched higher.
The information technology sector .SPLRCT was the biggest sectoral loser on the S&P 500 as investors piled into defensive stocks such as healthcare .SPXHC and utilities .SPLRCU.
A string of recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes.
However, unlike in the last few months when evidence of a cooling economy was cheered by investors on hopes it would allow for a less hawkish Fed, softer data has added to fears of a recession and pressured equities in recent days.
"The last strongholds of the economy are beginning to weaken and that signals recession," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"The labor market is beginning to weaken and that's basically playing into the hands of the Fed."
The S&P 500 .SPX and the tech-heavy Nasdaq .IXIC are headed for weekly declines for the first time in four weeks.
All eyes will now be on the more-comprehensive report on non-farm payrolls, which are expected to have increased by 239,000 in March, down from the 311,000 jobs added in the prior month.
The report is due on Friday, when the U.S. stock market will be shut for the Good Friday holiday.
Fed fund futures are indicating a 54.5% chance of the U.S. central bank pausing rate hikes in May with the remaining betting on a 25 basis point rate hike, according to CME Group's Fedwatch tool.
A slew of major U.S. banks will kick off the first-quarter earnings season for big-ticket companies next week.
At 9:35 a.m. ET, the Dow Jones Industrial Average .DJI was down 38.64 points, or 0.12%, at 33,444.08, the S&P 500 .SPX was down 14.98 points, or 0.37%, at 4,075.40, and the Nasdaq Composite .IXIC was down 89.02 points, or 0.74%, at 11,907.84.
Among major stock moves, AMC Entertainment Holdings Inc AMC.N jumped 8.6% after a U.S. court denied the theater operator's request to lift a status quo order necessary for its stock conversion plan.
Levi Strauss & Co LEVI.N fell 12.7% after the apparel maker posted a fall in quarterly profit.
Declining issues outnumbered advancers for a 1.10-to-1 ratio on the NYSE and for a 1.45-to-1 ratio on the Nasdaq.
The S&P index recorded 5 new 52-week highs and no new lows, while the Nasdaq recorded 14 new highs and 66 new lows.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((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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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 2.1% in early trading, while bond yields inched higher. A string of recent reports, including weak data on private payrolls and job openings earlier this week, have suggested slowing labor demand and raised hopes of a pause in the Federal Reserve's market-punishing rate hikes. However, unlike in the last few months when evidence of a cooling economy was cheered by investors on hopes it would allow for a less hawkish Fed, softer data has added to fears of a recession and pressured equities in recent days.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 2.1% in early trading, while bond yields inched higher. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes fell on Thursday as latest labor market data pointed to slowing economic growth due to rapid interest rate hikes, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, a Labor Department report showed, but the prior week data was revised to show 48,000 more applications were received.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 2.1% in early trading, while bond yields inched higher. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes fell on Thursday as latest labor market data pointed to slowing economic growth due to rapid interest rate hikes, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, a Labor Department report showed, but the prior week data was revised to show 48,000 more applications were received.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 2.1% in early trading, while bond yields inched higher. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes fell on Thursday as latest labor market data pointed to slowing economic growth due to rapid interest rate hikes, with risk-wary investors looking forward to monthly jobs data for a clearer picture of the economy. Initial jobless claims fell to a seasonally adjusted 228,000 for the week ended April 1, a Labor Department report showed, but the prior week data was revised to show 48,000 more applications were received.
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16446.0
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2023-04-06 00:00:00 UTC
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US STOCKS-Wall St set to open lower as jobless claims data fans slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-jobless-claims-data-fans-slowdown-fears
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
U.S. weekly jobless claims fall; layoffs jump in March
Non-farm payrolls data due on Friday
Alphabet up on report Google to add Chat AI to search
AMC jumps as court order hinders stock conversion plan
Futures down: Dow 0.05%, S&P 0.11%, Nasdaq 0.38%
Updates prices throughout; adds details, comments
By Ankika Biswas and Amruta Khandekar
April 6 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a stronger-than-expected weekly jobless claims report pointed to growing signs that rapid interest rate hikes by the Federal Reserve was slowing down economic growth.
Initial claims for state unemployment benefits stood at 228,000 last week, a fresh Labor Department reportshowed, much higher than economists' projection of 200,000 in the latest week.
The latest report adds to evidence of a cooling labor market after weak data on private payrolls and job openings earlier this week fueled hopes of a pause in rate hikes.
"The last strongholds of the economy are beginning to weaken and that signals recession," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"The labor market is beginning to weaken and that's basically playing into the hands of the Fed."
Fed fund futures are indicating a 62.5% chance of the U.S. central bank pausing its rate hikes in May and a 51.3% chance of a rate cut at its July meeting, according to CME Group's Fedwatch tool.
All eyes will now be on the report on non-farm payrolls, which are expected to have increased by 239,000 in March, down from the 311,000 jobs added in the prior month.
At 8:44 a.m. ET, Dow e-minis 1YMcv1 were down 17 points, or 0.05%, S&P 500 e-minis EScv1 were down 4.5 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 50.25 points, or 0.38%.
Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 1.5% in premarket trade.
Bucking the trend, Alphabet Inc GOOGL.O rose 0.8% on report that Google Chief Executive Sundar Pichai said the company plans to add conversational artificial intelligence features to its search engine.
The S&P 500 .SPX and the tech-heavy Nasdaq .IXIC are on track to notch weekly declines for the first time in four weeks.
The U.S. stock market will be shut on Friday for the Good Friday holiday.
Remarks by St. Louis President James Bullard on the economy and monetary policy, later in the day, will also be parsed for clues on the Fed's policy.
A slew of major U.S. banks will kick off the first-quarter earnings season for big-ticket companies next week, providing investors more insight into the health of corporate America.
Among major stock moves, AMC Entertainment Holdings Inc AMC.N jumped 13.6% after a U.S. court denied the theater operator's request to lift a status quo order necessary for its stock conversion plan. The preferred APE stock APE.N dropped 11.1%.
Levi Strauss & Co LEVI.N fell 3.9% after the apparel maker posted a fall in quarterly profit.
Retailer Costco Wholesale Corp COST.O shed 3% on weak comparable sales in March.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((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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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 1.5% in premarket trade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. weekly jobless claims fall; layoffs jump in March Non-farm payrolls data due on Friday Alphabet up on report Google to add Chat AI to search AMC jumps as court order hinders stock conversion plan Futures down: Dow 0.05%, S&P 0.11%, Nasdaq 0.38% Updates prices throughout; adds details, comments By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a stronger-than-expected weekly jobless claims report pointed to growing signs that rapid interest rate hikes by the Federal Reserve was slowing down economic growth. The latest report adds to evidence of a cooling labor market after weak data on private payrolls and job openings earlier this week fueled hopes of a pause in rate hikes.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 1.5% in premarket trade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. weekly jobless claims fall; layoffs jump in March Non-farm payrolls data due on Friday Alphabet up on report Google to add Chat AI to search AMC jumps as court order hinders stock conversion plan Futures down: Dow 0.05%, S&P 0.11%, Nasdaq 0.38% Updates prices throughout; adds details, comments By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a stronger-than-expected weekly jobless claims report pointed to growing signs that rapid interest rate hikes by the Federal Reserve was slowing down economic growth. The latest report adds to evidence of a cooling labor market after weak data on private payrolls and job openings earlier this week fueled hopes of a pause in rate hikes.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 1.5% in premarket trade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. weekly jobless claims fall; layoffs jump in March Non-farm payrolls data due on Friday Alphabet up on report Google to add Chat AI to search AMC jumps as court order hinders stock conversion plan Futures down: Dow 0.05%, S&P 0.11%, Nasdaq 0.38% Updates prices throughout; adds details, comments By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a stronger-than-expected weekly jobless claims report pointed to growing signs that rapid interest rate hikes by the Federal Reserve was slowing down economic growth. The latest report adds to evidence of a cooling labor market after weak data on private payrolls and job openings earlier this week fueled hopes of a pause in rate hikes.
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Major technology and growth stocks such as Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.9% and 1.5% in premarket trade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. weekly jobless claims fall; layoffs jump in March Non-farm payrolls data due on Friday Alphabet up on report Google to add Chat AI to search AMC jumps as court order hinders stock conversion plan Futures down: Dow 0.05%, S&P 0.11%, Nasdaq 0.38% Updates prices throughout; adds details, comments By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a stronger-than-expected weekly jobless claims report pointed to growing signs that rapid interest rate hikes by the Federal Reserve was slowing down economic growth. Initial claims for state unemployment benefits stood at 228,000 last week, a fresh Labor Department reportshowed, much higher than economists' projection of 200,000 in the latest week.
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16447.0
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2023-04-06 00:00:00 UTC
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1 Valuable Lesson the SVB Collapse Taught Growth Investors
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AAPL
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https://www.nasdaq.com/articles/1-valuable-lesson-the-svb-collapse-taught-growth-investors
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nan
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nan
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The banking industry, government regulators, and investors alike are still processing the March 10 collapse of SVB Financial, the parent company of Silicon Valley Bank (SVB). It was the second-largest bank failure in U.S. history, with $175 billion in customer deposits on the line.
But this crisis had one unique (and worrying) feature: Just 6% of those deposits fell within the $250,000 deposit insurance limit mandated by the Federal Deposit Insurance Corporation (FDIC). Most of SVB's customers were technology companies, investors, and high-net-worth individuals, which meant the majority of them faced the prospect of a total loss.
Regulation saved the day
Thanks to prudent regulations that prevent banks like SVB from using customer funds to make risky investments, there actually wasn't an asset shortfall at all -- in other words, the bank was in a position to cover all deposits, it just had to liquidate its investment portfolios (it had an estimated $209 billion in assets at the time of failure).
Those portfolios consisted mostly of bonds and government Treasury bills, which are typically incredibly safe assets. But the rapid increase in interest rates over the last 18 months pushed the value of those bond portfolios lower (when a bond yields a higher interest rate, its value falls, and vice versa). At the same time, SVB's tech-sector customers were raising less money and burning through more cash, which was shrinking its deposit base.
Additionally, customers were moving money to higher-yielding accounts, money market funds, and Treasury bills themselves to earn more interest on their deposits. A combination of those factors forced SVB to liquidate $21 billion worth of bonds and Treasuries at a $1.8 billion loss so it could meet depositors' requests. The bank then attempted to raise money from investors to plug that hole, and when word began to circulate the institution might be in trouble, depositors began to flee en masse.
SVB expected to lose a whopping $100 billion in deposits on the Friday that it failed which it didn't have the liquidity to cover, but thanks to a lightning-fast intervention by the FDIC, the bank was shut down before that could happen. It allowed the federal government to step in and announce deposits of all sizes would be safe, and it also gave the Federal Reserve time to set up an "at-par" lending facility to banks, which meant they could temporarily plug any financial holes caused by the declining values of their bond portfolios. This measure shored up customers' confidence in the rest of the banking system.
But this crisis came with important lessons attached, even if you don't invest in banks or financial sector stocks. Here's one thing technology investors can take away from the SVB collapse.
Invest in companies with ultrastrong balance sheets
A company has a strong balance sheet if it has enough cash and short-term liquidity to comfortably service its liabilities, like loans and other costs. Fortunately, the technology sector is filled with great examples -- two of the best are fierce rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT).
Both have built their fortress balance sheets on the backs of their incredible cash-generating businesses. In fact, Apple brings in so much money it returned $104 billion to shareholders through dividends and share repurchases in fiscal 2022 (ended Sept. 24) alone. The company still has over $51 billion in cash, equivalents, and short-term marketable securities on its balance sheet, and since it spent only $9.5 billion servicing its debts in fiscal 2022, it still has plenty of runway.
Not to mention, Apple brought in $30 billion in net income (profit) in the recent first quarter of fiscal 2023 (ended Dec 31), so it's likely to continue piling up cash this year. Consumers love the company's portfolio of devices like the iPhone, iPad, and Mac computers, and its services including Apple Music, Apple Pay, and iCloud, so it's likely to remain a financial powerhouse for years to come.
Microsoft is in a similar position, though it has a different strategy from Apple in that it invests heavily in entering new industries to expand its footprint in the tech sector. Having started out in software with its Windows operating system, the company now operates one of the largest cloud services platforms in the world, it's a leader in the gaming industry, and it's becoming a front-runner in the artificial intelligence (AI) space. In fact, it recently committed to a multiyear investment deal with ChatGPT creator OpenAI, which is rumored to be worth $10 billion.
But Microsoft does have two things in common with Apple: Its cash position and its profitability. The company is sitting on $99.5 billion in cash, equivalents, and short-term investments, and in the recent fiscal 2023 second quarter (ended Dec. 31), it generated $16.4 billion in net income.
But a strong balance sheet alone won't always make for a great investment
During what can only be described as a frenzy in the stock market during 2020 and 2021, many technology companies took advantage of their sky-high valuations to raise piles of cash from investors. As a result, they're sitting in a great financial position today even if their businesses aren't exactly performing well.
Investment platform to Generation Z Robinhood Markets (NASDAQ: HOOD) is one example. It has over $6.3 billion in cash with no debt, yet investors have sent its stock price plunging 88% from its all-time high, valuing the company at just $8.4 billion as of this writing. That means they attribute only $2.1 billion of value to the business itself -- in other words, the cash on Robinhood's balance sheet is worth three times as much as the business it operates.
When the pandemic era of government stimulus and ultralow interest rates ended in late 2021, Robinhood's young user base became less active in the financial markets. At the end of 2022, its monthly active user base had declined 46% from its peak in the year prior, coming in at 11.4 million. Similarly, the value of the cash and assets customers are holding with Robinhood is down 39% from its peak, to $62 billion. As a result, the company's quarterly revenue remained well below peak 2021 levels throughout last year.
Investors typically don't want to own shares in a shrinking business. Therefore, Robinhood's incredibly strong balance sheet won't be enough to buoy its stock price in the long run, making it a difficult company to invest in.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Fortunately, the technology sector is filled with great examples -- two of the best are fierce rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). SVB expected to lose a whopping $100 billion in deposits on the Friday that it failed which it didn't have the liquidity to cover, but thanks to a lightning-fast intervention by the FDIC, the bank was shut down before that could happen. But a strong balance sheet alone won't always make for a great investment During what can only be described as a frenzy in the stock market during 2020 and 2021, many technology companies took advantage of their sky-high valuations to raise piles of cash from investors.
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Fortunately, the technology sector is filled with great examples -- two of the best are fierce rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Not to mention, Apple brought in $30 billion in net income (profit) in the recent first quarter of fiscal 2023 (ended Dec 31), so it's likely to continue piling up cash this year. The company is sitting on $99.5 billion in cash, equivalents, and short-term investments, and in the recent fiscal 2023 second quarter (ended Dec. 31), it generated $16.4 billion in net income.
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Fortunately, the technology sector is filled with great examples -- two of the best are fierce rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Regulation saved the day Thanks to prudent regulations that prevent banks like SVB from using customer funds to make risky investments, there actually wasn't an asset shortfall at all -- in other words, the bank was in a position to cover all deposits, it just had to liquidate its investment portfolios (it had an estimated $209 billion in assets at the time of failure). The company is sitting on $99.5 billion in cash, equivalents, and short-term investments, and in the recent fiscal 2023 second quarter (ended Dec. 31), it generated $16.4 billion in net income.
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Fortunately, the technology sector is filled with great examples -- two of the best are fierce rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Those portfolios consisted mostly of bonds and government Treasury bills, which are typically incredibly safe assets. The company is sitting on $99.5 billion in cash, equivalents, and short-term investments, and in the recent fiscal 2023 second quarter (ended Dec. 31), it generated $16.4 billion in net income.
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16448.0
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2023-04-06 00:00:00 UTC
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Netflix (NFLX) Expands International Content With Stolen
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-international-content-with-stolen
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nan
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nan
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Netflix NFLX is expanding its international content portfolio with the adaptation of Ann-Helen Laestadius’ acclaimed novel, Stolen. Elin Kristina Oskal is starring in the leading role of Elsa and the movie is directed by Elle Marja Eira. It is slated to release globally on Netflix in 2024.
Originally published in Sweden in 2021, Stolen tells the story of a young woman’s “struggle to defend her indigenous heritage in a world where xenophobia is on the rise, climate change is threatening reindeer herding, and young people choose suicide in the face of collective desperation.”
Netflix producing Stolen reflects its initiatives to expand and diversify international content. Last year, the streaming giant entered into an agreement with the International Sami Film Institute to support Sami talent through investments in training and education.
Recently, the company announced that it would release the Swedish drama film One More Time, globally on Apr 21. It has a couple of Danish titles, including the thriller series, The Nurse, and the feature film, A Beautiful Life, scheduled to be launched in 2023.
Netflix’s latest Korean action-adventure movie, Kill Boksoon, entered Netflix’s top ten list with 19.61 million hours viewed, grabbing the #1 spot.
Strong Portfolio to Drive Growth
Netflix’s strategy to support communities in the regions it operates improves its footprint. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
The company’s strong and diverse content portfolio has been a major growth driver in recent times. It gained 7.66 million paid subscribers globally, higher than its estimate of 4.5 million users in the fourth quarter of 2022. Hits like Wednesday, Harry & Meghan, Troll, and Glass Onion: A Knives Out Mystery helped it win subscribers.
Netflix’s strong content is also helping it win accolades. It scooped six wins out of 16 nominations at the Oscars 2023. Apart from movies and shows, Netflix has started diversifying its portfolio with mobile games. It expects to launch 40 games this year and 70 games are in development.
For the first quarter of 2023, this Zacks Rank #3 (Hold) forecasts earnings of $2.82 per share, indicating a 20% decline from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.172 billion, suggesting year-over-year growth of 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Estimates Steady Prior to Q1 Results
Netflix shares have gained 16.1% year to date, outperforming the Zacks Consumer Discretionary sector’s gain of 8.8%. It has also outperformed Disney and Comcast but underperformed Apple shares. Disney, Comcast, and Apple have returned 15%, 8.8% and 26%, respectively.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.9% growth from the year-ago quarter’s reported figure.
The consensus mark for first-quarter 2023 earnings is pegged at $2.81 per share, unchanged over the past 30 days, indicating a decline of 20.4% from the year-ago quarter reported figure.
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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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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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Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. It has a couple of Danish titles, including the thriller series, The Nurse, and the feature film, A Beautiful Life, scheduled to be launched in 2023.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times.
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Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times.
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16449.0
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2023-04-06 00:00:00 UTC
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3 Reasons Why Apple’s 30% Rally Has Legs
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AAPL
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https://www.nasdaq.com/articles/3-reasons-why-apples-30-rally-has-legs
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nan
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nan
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Despite equities having cooled somewhat this week following a strong end to Q1, Apple Inc’s (NASDAQ: AAPL) 30% rally looks as strong as ever. Since tagging that multi-year low at the start of the year, their shares have tacked on a full 30%, with higher highs and higher lows ensuring a smooth ride.
But as the stock approaches what many might call a solid layer of resistance around the $175 mark, you’d be forgiven for taking a cautious stance right now. However, we see at least three good reasons to believe that Apple’s shares are on track to test and breakthrough that zone in the coming weeks.
Bullish Comments
The first of these comes in the form of bullish analyst comments from the team at Evercore, who earlier this month reiterated their Outperform rating on Apple stock. Analyst Amit Daryanani and his team cited the company's solid performance in the first quarter of 2023. They’re of the opinion that the current premium valuation is more than justified given the company's strong fundamentals, solid free cash flow and return on equity numbers.
In a note to clients, they wrote that "we think Apple deserves a premium to its peer group given its higher ROIC (AAPL at 39% 5-year average vs. peer group at 21%). The team’s $190 price target points to Apple absolutely blowing past that resistance at $175, and indicates an upside of at least 20% from current levels.
It’s a bullish stance that’s since been reinforced by comments from Gene Munster of Deepwater Asset Management. He recently commented that Apple is likely to be the safest tech stock over the next six months, and also highlighted its strong position and outlook against its Big Tech peers. To be fair, Munster doesn’t expect it to be all smooth sailing, especially in the near term given the ongoing economic uncertainty, but he expects Apple to crush through the back half of the year and into 2024.
Bullish Headlines
In addition to both of these positive outlooks, Apple’s also been on a run of positive and bullish headlines. These have come mostly in the form of reports regarding its resilience in the face of challenges. For example, despite the ongoing tensions between China and the US, it’s been reported that Apple has maintained increased market share there. This is due for the most part to its popularity among Chinese consumers, as well as Apple's proactive measures to navigate the changing regulatory environment.
Further good news on that side of things came this week, when we learned that Apple had won a UK antitrust-related appeal. The ruling effectively squashed a probe into mobile browser dominance, which was acting as a sneaky headwind but evolved into a significant victory for the company. The investigation could easily have resulted in fines or other sanctions, not to mention massive investor concern, but Apple successfully argued that it was not dominant in the relevant market and did so convincingly.
In addition, there have been rumors of a potential Apple-Disney merger, which would take the form of an acquisition by Apple of Disney. It’s pie-in-the-sky stuff for now, but Needham analyst Laura Martin raised some interesting points last week when she suggested the two companies could be worth more together, given Apple's strength in hardware and Disney's strength in content. We’re not expecting this to become a reality anytime soon, but can you imagine for a moment if it ever did?
All in all, it’s been pretty much clear sailing for Apple in terms of bullish notes and reports these past few weeks. Using the tools available on MarketBeat.com, we can see the stock overall is ranked as a Moderate Buy. While their shares take a breather heading into Easter, it’s a good time for investors to consider getting involved before the next big push for the $200 level.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite equities having cooled somewhat this week following a strong end to Q1, Apple Inc’s (NASDAQ: AAPL) 30% rally looks as strong as ever. In a note to clients, they wrote that "we think Apple deserves a premium to its peer group given its higher ROIC (AAPL at 39% 5-year average vs. peer group at 21%). They’re of the opinion that the current premium valuation is more than justified given the company's strong fundamentals, solid free cash flow and return on equity numbers.
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In a note to clients, they wrote that "we think Apple deserves a premium to its peer group given its higher ROIC (AAPL at 39% 5-year average vs. peer group at 21%). Despite equities having cooled somewhat this week following a strong end to Q1, Apple Inc’s (NASDAQ: AAPL) 30% rally looks as strong as ever. He recently commented that Apple is likely to be the safest tech stock over the next six months, and also highlighted its strong position and outlook against its Big Tech peers.
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Despite equities having cooled somewhat this week following a strong end to Q1, Apple Inc’s (NASDAQ: AAPL) 30% rally looks as strong as ever. In a note to clients, they wrote that "we think Apple deserves a premium to its peer group given its higher ROIC (AAPL at 39% 5-year average vs. peer group at 21%). Bullish Comments The first of these comes in the form of bullish analyst comments from the team at Evercore, who earlier this month reiterated their Outperform rating on Apple stock.
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Despite equities having cooled somewhat this week following a strong end to Q1, Apple Inc’s (NASDAQ: AAPL) 30% rally looks as strong as ever. In a note to clients, they wrote that "we think Apple deserves a premium to its peer group given its higher ROIC (AAPL at 39% 5-year average vs. peer group at 21%). Bullish Comments The first of these comes in the form of bullish analyst comments from the team at Evercore, who earlier this month reiterated their Outperform rating on Apple stock.
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16450.0
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2023-04-06 00:00:00 UTC
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US STOCKS-Futures muted as focus shifts to jobs data amid recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-as-focus-shifts-to-jobs-data-amid-recession-fears
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nan
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nan
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Corrects to first quarter from second quarter in paragraph 12
Futures mixed: Dow flat, S&P down 0.05%, Nasdaq down 0.24%
April 6 (Reuters) - U.S. stock index futures were subdued on Thursday as investors awaited jobs data to gauge the impact of the Federal Reserve's aggressive policy tightening on the U.S. economy.
Weak data from services and manufacturing sectors this week has pointed to slowing growth, fueling hopes in the market of a pause in interest rate hikes.
"There appears to be a feeling that markets want to believe that the economy is slowing, which it probably is, and that recent rate rises are to blame and the Fed will need to reverse course soon when it comes to rate policy" said Michael Hewson, chief market analyst at CMC Markets UK.
Fed fund futures are indicating a 58.2% chance of the U.S. central bank pausing its monetary tightening in May and a 45% chance of a rate cut at the Fed's July meeting, according to CME Group's Fedwatch tool.
At 5:17 a.m. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%; and S&P 500 e-minis EScv1 were down 2 points, or 0.05%.
Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%, as major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.2% and 1% in premarket trade.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC are on track to notch declines for the first time in four weeks.
The U.S. stock market will be shut on Friday for the Good Friday holiday.
A Labor Department report on initial claims for state unemployment benefits last week is expected to show an increase to 200,000 from the prior period.
The much-awaited non-farm payrolls report for March will be released on Friday.
Remarks by St. Louis President James Bullard on the economy and monetary policy, later in the day, will also be parsed for clues on the Fed's policy.
A slew of major U.S. banks will kick off the first-quarter earnings season next week, providing investors with more insight into the health of corporate America.
(Reporting by Ankika Biswas in Bengaluru; Editing by Anil D'Silva)
((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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Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%, as major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.2% and 1% in premarket trade. Weak data from services and manufacturing sectors this week has pointed to slowing growth, fueling hopes in the market of a pause in interest rate hikes. A slew of major U.S. banks will kick off the first-quarter earnings season next week, providing investors with more insight into the health of corporate America.
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Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%, as major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.2% and 1% in premarket trade. Weak data from services and manufacturing sectors this week has pointed to slowing growth, fueling hopes in the market of a pause in interest rate hikes. Fed fund futures are indicating a 58.2% chance of the U.S. central bank pausing its monetary tightening in May and a 45% chance of a rate cut at the Fed's July meeting, according to CME Group's Fedwatch tool.
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Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%, as major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.2% and 1% in premarket trade. Corrects to first quarter from second quarter in paragraph 12 Futures mixed: Dow flat, S&P down 0.05%, Nasdaq down 0.24% April 6 (Reuters) - U.S. stock index futures were subdued on Thursday as investors awaited jobs data to gauge the impact of the Federal Reserve's aggressive policy tightening on the U.S. economy. Weak data from services and manufacturing sectors this week has pointed to slowing growth, fueling hopes in the market of a pause in interest rate hikes.
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Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.24%, as major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.2% and 1% in premarket trade. "There appears to be a feeling that markets want to believe that the economy is slowing, which it probably is, and that recent rate rises are to blame and the Fed will need to reverse course soon when it comes to rate policy" said Michael Hewson, chief market analyst at CMC Markets UK. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%; and S&P 500 e-minis EScv1 were down 2 points, or 0.05%.
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16451.0
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2023-04-06 00:00:00 UTC
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AAPL, AMZN, META: Will the Rally in Big Tech Stocks Hold?
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AAPL
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https://www.nasdaq.com/articles/aapl-amzn-meta%3A-will-the-rally-in-big-tech-stocks-hold
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nan
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nan
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The macro-uncertainty is keeping the stock market choppy. However, shares of big tech companies have defied the general economic trend and significantly outperformed the broader markets. For instance, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) stocks have gained over 20%, 26%, and 75%, respectively, on a year-to-date basis. However, Morgan Stanley sees the rally in U.S. tech stocks as “overdone.”
Thanks to the rally in large tech stocks, the NASDAQ 100 Index (NDX) has gained over 19% year-to-date. However, according to Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, tech stocks that have increased over 20% this year will not be able to sustain the gains, and the tech sector could see new lows.
Notably, the economy remains weak. However, it hasn’t turned out as bad as many had expected. Meanwhile, expectations of easing monetary policy amid the bank funding program have led investors towards high-growth stocks.
Wilson doesn’t view the bank funding program as a form of quantitative easing. He advises investors to wait for a “durable low” in the broader market before going long on tech stocks.
While Wilson has a bearish view of tech stocks, let’s check what analysts recommend for AAPL, AMZN, and META stocks.
What’s the Prediction for AAPL Stock?
Apple's dominant positioning in the smartphone market and the ongoing strength in the Services segment, with a growing base of over 2 billion active devices, continue to cushion its financials and stock price.
Analysts maintain a bullish outlook on AAPL stock. It has received 23 Buy, five Hold, and one Sell recommendations for a Strong Buy consensus rating. However, analysts’ price target of $170.73 implies a limited upside potential of 4.26%.
Nonetheless, the stock has received positive signals from hedge fund managers, who increased their holdings in the last quarter. AAPL sports an Outperform Smart Score of “Perfect 10.”
Is Amazon Stock Expected to Rise?
Amazon’s leading position in online retail and cloud computing and its growing digital ad business continue to support its financials and analysts’ bull case.
Analysts continue to maintain a bullish outlook on AMZN stock. It has a Strong Buy consensus, reflecting 36 Buy and one Hold recommendations. Analysts’ average price target of $136.92 implies 35.43% upside potential.
Along with analysts, hedge funds are also bullish about AMZN stock. Furthermore, AMZN stock commands an Outperform Smart Score of “Perfect 10” on TipRanks.
Is META Stock a Buy, Sell, or Hold?
The surge in META stock is supported by its deep cost-cutting initiatives aimed at driving profitability. Further, the competitive headwinds are easing. However, given the pressure on ad spending, analysts remain cautiously optimistic about META stock.
It has received 38 Buy, seven Hold, and three Sell recommendations for a Moderate Buy consensus rating. Further, analysts’ average price target of $231.38 implies an upside potential of 9.41%.
While analysts are cautiously optimistic, hedge funds and insiders sold META stock in the last quarter. Overall, the stock has a Neutral Smart Score of six.
Bottom Line
Macro headwinds and valuation concerns could restrict the upside in these large tech stocks. Our data shows that AAPL and AMZN stocks are more likely to beat the broader market average thanks to their “Perfect 10” Smart Score and bullish analysts’ outlook. Meanwhile, AMZN stock offers a higher upside potential from the current levels.
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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Our data shows that AAPL and AMZN stocks are more likely to beat the broader market average thanks to their “Perfect 10” Smart Score and bullish analysts’ outlook. For instance, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) stocks have gained over 20%, 26%, and 75%, respectively, on a year-to-date basis. While Wilson has a bearish view of tech stocks, let’s check what analysts recommend for AAPL, AMZN, and META stocks.
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For instance, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) stocks have gained over 20%, 26%, and 75%, respectively, on a year-to-date basis. Our data shows that AAPL and AMZN stocks are more likely to beat the broader market average thanks to their “Perfect 10” Smart Score and bullish analysts’ outlook. While Wilson has a bearish view of tech stocks, let’s check what analysts recommend for AAPL, AMZN, and META stocks.
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While Wilson has a bearish view of tech stocks, let’s check what analysts recommend for AAPL, AMZN, and META stocks. Our data shows that AAPL and AMZN stocks are more likely to beat the broader market average thanks to their “Perfect 10” Smart Score and bullish analysts’ outlook. For instance, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) stocks have gained over 20%, 26%, and 75%, respectively, on a year-to-date basis.
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While Wilson has a bearish view of tech stocks, let’s check what analysts recommend for AAPL, AMZN, and META stocks. Our data shows that AAPL and AMZN stocks are more likely to beat the broader market average thanks to their “Perfect 10” Smart Score and bullish analysts’ outlook. For instance, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) stocks have gained over 20%, 26%, and 75%, respectively, on a year-to-date basis.
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16452.0
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2023-04-06 00:00:00 UTC
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US STOCKS-Futures muted with all eyes on jobs data amid recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-with-all-eyes-on-jobs-data-amid-recession-fears
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 6 (Reuters) - U.S. stock index futures were subdued on Thursday ahead of a key jobs reading that will be used by investors to assess the fallout of the Federal Reserve'sinterest rate hikes on economic growth.
Weak data on the labor market and business activity this week have fueled hopes of a pause in rate hikes even though equities have been pressured by recession worries after the recent turmoil in the banking sector.
This marks a change from recent months when risk sentiment had increased due to softer economic data, which raised hopes of a halt to rising borrowing costs by the Fed.
"There appears to be a feeling that markets want to believe that the economy is slowing, which it probably is, and that recent rate rises are to blame and the Fed will need to reverse course soon when it comes to rate policy," said Michael Hewson, chief market analyst at CMC Markets UK.
Fed fund futures are indicating a 53.6% chance of the U.S. central bank pausing its rate hikes in May and a 46.4% chance of a rate cut at its July meeting, according to CME Group's Fedwatch tool.
At 7:05 a.m. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 were down 0.25 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 30.75 points, or 0.24%.
Major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.1% and 0.7% in premarket trade.
Bucking the trend, Alphabet Inc GOOGL.O rose 1.1% after Google Chief Executive Sundar Pichai said the company plans to add conversational artificial intelligence features to its search engine, according to a report.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC are on track to notch weekly declines for the first time in four weeks.
The U.S. stock market will be shut on Friday for the Good Friday holiday.
A Labor Department report on initial claims for state unemployment benefits last week is expected to show an increase to 200,000 from the prior period. The much-awaited non-farm payrolls report for March will be released on Friday.
Remarks by St. Louis President James Bullard on the economy and monetary policy, later in the day, will also be parsed for clues on the Fed's policy.
A slew of major U.S. banks will kick off the first-quarter earnings season next week, providing investors more insight into the health of corporate America.
Among major stock moves, AMC Entertainment Holdings Inc AMC.N jumped 11.4% after a U.S. court denied the theater operator's request to lift a status quo order necessary for its stock conversion plan.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((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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Major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.1% and 0.7% in premarket trade. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - U.S. stock index futures were subdued on Thursday ahead of a key jobs reading that will be used by investors to assess the fallout of the Federal Reserve'sinterest rate hikes on economic growth. Weak data on the labor market and business activity this week have fueled hopes of a pause in rate hikes even though equities have been pressured by recession worries after the recent turmoil in the banking sector.
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Major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.1% and 0.7% in premarket trade. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - U.S. stock index futures were subdued on Thursday ahead of a key jobs reading that will be used by investors to assess the fallout of the Federal Reserve'sinterest rate hikes on economic growth. Fed fund futures are indicating a 53.6% chance of the U.S. central bank pausing its rate hikes in May and a 46.4% chance of a rate cut at its July meeting, according to CME Group's Fedwatch tool.
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Major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.1% and 0.7% in premarket trade. By Ankika Biswas and Amruta Khandekar April 6 (Reuters) - U.S. stock index futures were subdued on Thursday ahead of a key jobs reading that will be used by investors to assess the fallout of the Federal Reserve'sinterest rate hikes on economic growth. Weak data on the labor market and business activity this week have fueled hopes of a pause in rate hikes even though equities have been pressured by recession worries after the recent turmoil in the banking sector.
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Major technology and growth shares such as those of Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.1% and 0.7% in premarket trade. Weak data on the labor market and business activity this week have fueled hopes of a pause in rate hikes even though equities have been pressured by recession worries after the recent turmoil in the banking sector. "There appears to be a feeling that markets want to believe that the economy is slowing, which it probably is, and that recent rate rises are to blame and the Fed will need to reverse course soon when it comes to rate policy," said Michael Hewson, chief market analyst at CMC Markets UK.
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16453.0
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2023-04-06 00:00:00 UTC
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Is Apple's Headset a Dud Before It Arrives?
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AAPL
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https://www.nasdaq.com/articles/is-apples-headset-a-dud-before-it-arrives
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nan
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nan
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Apple (NASDAQ: AAPL) is expected to introduce a new VR/AR headset in early June, and it could be available this year. But will this move the needle, or is it a novelty? Travis Hoium digs into what to expect and where Apple has a huge advantage over Meta, maker of Oculus headsets.
*Stock prices used were end-of-day prices of April 1, 2023. The video was published on April 4, 2023.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. 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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Apple (NASDAQ: AAPL) is expected to introduce a new VR/AR headset in early June, and it could be available this year. Travis Hoium digs into what to expect and where Apple has a huge advantage over Meta, maker of Oculus headsets. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) is expected to introduce a new VR/AR headset in early June, and it could be available this year. 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 March 8, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) is expected to introduce a new VR/AR headset in early June, and it could be available this year. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) is expected to introduce a new VR/AR headset in early June, and it could be available this year. Travis Hoium digs into what to expect and where Apple has a huge advantage over Meta, maker of Oculus headsets. That's right -- they think these 10 stocks are even better buys.
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16454.0
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2023-04-06 00:00:00 UTC
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7 Dividend-Paying Large-Cap Stocks to Buy in April
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AAPL
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https://www.nasdaq.com/articles/7-dividend-paying-large-cap-stocks-to-buy-in-april
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend-paying large-cap stocks are some of the best ways to add wealth to your portfolio. That’s because the company pays you to hold your shares when you have a dividend stock. And that’s true of even the biggest of large-cap stocks.
Most dividend-paying large-cap stocks issue payouts on a quarterly or monthly basis. If you are a younger investor, putting those payouts back into the stock makes sense to increase your position and grow your portfolio even faster. Once you get that money, it’s yours to do with as you see fit.
But if you’re a retiree, you’re probably more inclined to take those payouts as income to supplement your other retirement accounts.
Either way works, and I appreciate a company that cares for its shareholders. I’ve used my Portfolio Grader to evaluate some of the most significant dividend-paying large-cap stocks that would make outstanding choices for any dividend portfolio.
NVDA Nvidia $265.27
MSFT Microsoft $283.39
AAPL Apple $162.66
CVX Chevron $169.18
KO Coca-Cola $62.71
VLO Valero Energy $133.31
SBUX Starbucks $104.69
Nvidia (NVDA)
Source: FP Creative / Shutterstock.com
Semiconductor chipmaker Nvidia (NASDAQ:NVDA) is one of the hottest chip makers on the planet. The company’s stock is up nearly 90% in 2023, pushing the market capitalization to $689 billion.
Nvidia produces chips that can produce amazingly advanced graphics highly prized by gaming applications and gaming centers.
But with the popularity of the ChatGPT online chatbot developed by OpenAI, Nvidia is breaking new ground. It’s on Nvidia’s advanced graphics chips OpenAI is training its large language models.
Nvidia is now making its DGX Cloud available online to give more businesses access to the infrastructure to develop artificial intelligence tools for themselves. The sky is the limit for NVDA at this point.
Nvidia currently pays a minimal dividend. The payout ratio is 0.06%, but it’s still one of the more reliable dividend-paying large-cap stocks out there. I hope this company does a better job down the road of rewarding its shareholders with a payout. NVDA stock has a “B” rating in my Portfolio Grader.
Microsoft (MSFT)
Source: rafapress / Shutterstock.com
Microsoft (NASDAQ:MSFT) is another of the dividend-paying large-cap stocks getting huge attention from ChatGPT and the growing AI trend. Microsoft partnered with OpenAI and uses the ChatGPT software to enhance searches on its Bing search engine and Edge web browser.
The excitement helped push Microsoft shares up nearly 20% this year, with a market cap north of $2.1 trillion.
As I wrote recently on my takeout on Microsoft, the company’s stock is also up on some positive news. It recently announced a plan to integrate AI technology into other platforms, including the planned Microsoft 365 Copilot. And these AI headwinds could also breathe new life into the Azure cloud computing segment.
Microsoft, which provides a dividend yield of nearly 1%, has a “B” rating in the Portfolio Grader.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
They don’t get any bigger than Microsoft and the next company on our list. Apple (NASDAQ:AAPL), the maker of the iPhone, wearables and Mac computers, has a market cap of $2.6 trillion.
It’s well on the way to becoming the first $3 trillion stock, particularly after gaining about 30% this year.
Analysts are undoubtedly bullish about AAPL stock, citing robust demand for iPhones and strong interest in China. But I’m much more focused on the upcoming Worldwide Developers Conference in early June. At that event, Apple could very well roll out its augmented reality/virtual reality headset product.
It’s been a while since Apple’s shown us something entirely new, so the reception to such a product will impact AAPL stock. But if you need another reason to like Apple stock, consider the Services segment that includes the App Store and iCloud.
Revenue from Services reached $19.5 billion in the fiscal first quarter, a new record for the company. That’s a significant trend considering that Apple gets a much higher profit margin on Services revenue than from items that require a lot of equipment and research, such as iPhones and headsets.
Apple’s current dividend yield is 0.5%, and it has a “B” rating in the Portfolio Grader.
Chevron (CVX)
Source: tishomir / Shutterstock.com
Chevron (NYSE:CVX) has upstream exploration and production facilities worldwide, including in the U.S., the Gulf of Mexico, Australia, Nigeria, Angola and Kazakhstan, and sports a market cap of $324 billion.
Chevron stock has been treading water the last few weeks, down about 5% on the year but showing a slight increase over the previous month. The stock appears to be gathering some steam to make another run higher, particularly now that OPEC announced it is cutting oil production.
The rising oil price and demand for natural gas make Chevron a cash machine. The company brought in $35.5 billion in earnings in 2022 and doled out $11 billion in dividends while spending another $11.25 billion in share buybacks.
With a dividend yield of 3.5%, CVX stock has a “B” rating in the Portfolio Grader.
Coca-Cola (KO)
Source: MAHATHIR MOHD YASIN / Shutterstock.com
Famed soda maker Coca-Cola (NYSE:KO) may be one of the best-known consumer brands on the planet. From its headquarters in Atlanta, Coca-Cola has become the world’s biggest non-alcoholic beverage company.
That’s helped push Coca-Cola to a market capitalization of $270 billion, selling products in more than 200 countries around the world. But even with that massive footprint, the company believes it has a broad runway for growth.
Coca-Cola claims it has a 14% market share in the developed world. But in the much larger developing and emerging world, Coca-Cola has roughly a 7% share.
It has a vast arsenal of brands to market to those potential customers, including sodas and carbonated beverages, teas, coffees, water, sports drinks and juices. And it’s recently dipped its toes into alcoholic beverages by offering hard seltzers and canned mixed drinks.
Earnings for the fourth quarter were $10.2 billion in revenue, beating analysts’ estimates for $9.93 billion revenue. KO also matched expectations, paying 45 cents in earnings per share.
KO stock is up 5% over the last month, providing a dividend yield of nearly 3%. It gets a “B” rating in the Portfolio Grader.
Valero Energy (VLO)
Source: JustPixs / Shutterstock.com
Valero Energy (NYSE:VLO) is another excellent energy stock, but it’s of a different flavor than Chevron. Instead of oil and gas exploration, Valero is a downstream company that is the world’s largest producer of renewable fuels.
Besides petroleum refineries, Valero has ethanol plants and offers dry distillers’ grains, ethanol and corn oil to gasoline blenders and refiners.
Fourth-quarter earnings included $41.75 billion in revenue, but it missed expectations of $43.32 billion. Earnings per share of $8.45 per share was better than analysts’ expectations of $7.25.
VLO stock is up 25% over the last 12 months, pushing its market capitalization to $47.2 billion. It also provides a healthy dividend yield of nearly 3%.
VLO stock has an “A” rating in the Portfolio Grader.
Starbucks (SBUX)
Source: monticello / Shutterstock.com
Famed coffee chain Starbucks (NASDAQ:SBUX) is one of the world’s biggest restaurant chains, boasting more than 36,000 stores. But it’s also a company in transition.
The company struggled mightily during the Covid-19 pandemic before finally rebounding by mid-2021 to set all-time highs. But since then, Starbucks stock has struggled.
Faced with high inflation and unionization issues, interim CEO Howard Schultz stepped down last month to make way for new CEO Laxman Narasimhan. Previously, Narasimhan was CEO of Reckitt Benckiser Group (OTCMKTS:RGBLY) and had executive positions with PepsiCo (NASDAQ:PEP). Notably, SBUX stock is up 5% since the change in power.
Starbucks is a brand constantly tinkering with its menu to develop something new. The most recent offering is oleato coffee, a coffee drink infused with extra virgin olive oil. It will have to continue to evolve if it will be successful under Narasimhan’s watch.
With a market cap of $119 billion, SBUX offers a dividend yield of 2%. It currently has a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier held NVDA, MSFT and VLO. He did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held AAPL. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 7 Dividend-Paying Large-Cap Stocks to Buy in April 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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NVDA Nvidia $265.27 MSFT Microsoft $283.39 AAPL Apple $162.66 CVX Chevron $169.18 KO Coca-Cola $62.71 VLO Valero Energy $133.31 SBUX Starbucks $104.69 Nvidia (NVDA) Source: FP Creative / Shutterstock.com Semiconductor chipmaker Nvidia (NASDAQ:NVDA) is one of the hottest chip makers on the planet. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com They don’t get any bigger than Microsoft and the next company on our list. Apple (NASDAQ:AAPL), the maker of the iPhone, wearables and Mac computers, has a market cap of $2.6 trillion.
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NVDA Nvidia $265.27 MSFT Microsoft $283.39 AAPL Apple $162.66 CVX Chevron $169.18 KO Coca-Cola $62.71 VLO Valero Energy $133.31 SBUX Starbucks $104.69 Nvidia (NVDA) Source: FP Creative / Shutterstock.com Semiconductor chipmaker Nvidia (NASDAQ:NVDA) is one of the hottest chip makers on the planet. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com They don’t get any bigger than Microsoft and the next company on our list. Apple (NASDAQ:AAPL), the maker of the iPhone, wearables and Mac computers, has a market cap of $2.6 trillion.
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NVDA Nvidia $265.27 MSFT Microsoft $283.39 AAPL Apple $162.66 CVX Chevron $169.18 KO Coca-Cola $62.71 VLO Valero Energy $133.31 SBUX Starbucks $104.69 Nvidia (NVDA) Source: FP Creative / Shutterstock.com Semiconductor chipmaker Nvidia (NASDAQ:NVDA) is one of the hottest chip makers on the planet. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com They don’t get any bigger than Microsoft and the next company on our list. Apple (NASDAQ:AAPL), the maker of the iPhone, wearables and Mac computers, has a market cap of $2.6 trillion.
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NVDA Nvidia $265.27 MSFT Microsoft $283.39 AAPL Apple $162.66 CVX Chevron $169.18 KO Coca-Cola $62.71 VLO Valero Energy $133.31 SBUX Starbucks $104.69 Nvidia (NVDA) Source: FP Creative / Shutterstock.com Semiconductor chipmaker Nvidia (NASDAQ:NVDA) is one of the hottest chip makers on the planet. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com They don’t get any bigger than Microsoft and the next company on our list. Apple (NASDAQ:AAPL), the maker of the iPhone, wearables and Mac computers, has a market cap of $2.6 trillion.
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16455.0
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2023-04-06 00:00:00 UTC
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What's Next For Tesla After Mixed Q1 Delivery Report?
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AAPL
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https://www.nasdaq.com/articles/whats-next-for-tesla-after-mixed-q1-delivery-report
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nan
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nan
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Tesla (NASDAQ:TSLA) reported delivery numbers for Q1 2023, indicating that deliveries grew by about 36% year-over-year to 422,875 cars after it slashed prices on its most popular vehicles. While the company shipped about 412,180 units of the Model 3 and Y vehicle, the Model S and X deliveries stood at about 10,695. However, investors were expecting better, as Tesla stock tumbled by almost 6% in after-hours trading on Monday. For perspective, despite the sizable price cuts (almost 20% on some models), Tesla’s deliveries grew by under 5% versus the December quarter. Moreover, year-over-year growth rates were also well below the 50% long-term compounded growth rates that the company is targeting. At this rate, Tesla’s run-rate growth also falls short of the optimistic two million delivery target for 2023. There are also concerns that Tesla’s inventory is building up as the company has produced more vehicles than it is delivering over the last four quarters.
So what should investors expect from Tesla’s Q1 2023 results, due later this month? While higher volumes should benefit revenue growth, Tesla’s margins are likely to have faced meaningful pressure over the quarter. For perspective, automotive gross margins stood at nearly 33% in Q1 2022, and the number could likely fall below 25% in Q1 2023. That said, Tesla could offset some of the impacts of the price cuts, via better economies of scale and easing supply chain issues.
We remain marginally positive on Tesla stock despite the mixed delivery numbers. There are a couple of factors that could help Tesla in the near term. Firstly, Tesla is likely to bolster its aging model lineup. The Cybertruck pickup truck is likely to go into production this year, while deliveries of the semi-truck recently started. At the current market price of $195 per share, Tesla trades at just over 34x consensus 2024 earnings, which we believe is reasonable versus historical levels. We continue to believe that Tesla will remain a big beneficiary of the long-term transition to electric vehicles given its well-oiled supply chain, superior electric drivetrains, and its lead with software and self-driving technology. We value Tesla stock at $221 per share, which is about 13% ahead of the current market price. See our analysis on Tesla Valuation: Is TSLA Stock Expensive Or Cheap? for more details on Tesla’s valuation and how it compares with peers. For more information on Tesla’s business model and revenue trends, check out our dashboard on Tesla Revenue: How TSLA Makes Money.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Apr 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
TSLA Return -6% 58% 1267%
S&P 500 Return 0% 7% 84%
Trefis Multi-Strategy Portfolio 0% 8% 239%
[1] Month-to-date and year-to-date as of 4/4/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While higher volumes should benefit revenue growth, Tesla’s margins are likely to have faced meaningful pressure over the quarter. That said, Tesla could offset some of the impacts of the price cuts, via better economies of scale and easing supply chain issues. At the current market price of $195 per share, Tesla trades at just over 34x consensus 2024 earnings, which we believe is reasonable versus historical levels.
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Tesla (NASDAQ:TSLA) reported delivery numbers for Q1 2023, indicating that deliveries grew by about 36% year-over-year to 422,875 cars after it slashed prices on its most popular vehicles. At the current market price of $195 per share, Tesla trades at just over 34x consensus 2024 earnings, which we believe is reasonable versus historical levels. Total [2] TSLA Return -6% 58% 1267% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 239% [1] Month-to-date and year-to-date as of 4/4/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tesla (NASDAQ:TSLA) reported delivery numbers for Q1 2023, indicating that deliveries grew by about 36% year-over-year to 422,875 cars after it slashed prices on its most popular vehicles. For more information on Tesla’s business model and revenue trends, check out our dashboard on Tesla Revenue: How TSLA Makes Money. Total [2] TSLA Return -6% 58% 1267% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 239% [1] Month-to-date and year-to-date as of 4/4/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the company shipped about 412,180 units of the Model 3 and Y vehicle, the Model S and X deliveries stood at about 10,695. For perspective, despite the sizable price cuts (almost 20% on some models), Tesla’s deliveries grew by under 5% versus the December quarter. Total [2] TSLA Return -6% 58% 1267% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 239% [1] Month-to-date and year-to-date as of 4/4/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16456.0
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2023-04-06 00:00:00 UTC
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What's New With Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/whats-new-with-apple-stock
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nan
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nan
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Apple stock (NASDAQ:AAPL) had a solid year so far rising by about 27% since early January, outperforming the Nasdaq-100 which remains up by about 20% year-to-date. Now, tech stocks in general have fared well this year, following a tough 2022, as cooling inflation and a slowing pace of interest rate hikes by the Federal Reserve led investors back to the beaten-down sector.
Some other factors have likely helped Apple stock recently. Apple is making deeper inroads into the financial services space, recently launching a “buy now, pay later” offering that enables Apple Pay users to split payments for purchases over several weeks without incurring interest or fees. Investors are looking ahead to potential new product launches from Apple. Apple is poised to launch a new mixed-reality headset sometime this year. Although the device is likely to be expensive, with volumes expected to be limited at launch, it would mark Apple’s first all-new product launch in almost seven years. The device could also give investors a sense of the company’s plans for computing beyond the smartphone and PC era. Moreover, Apple’s next-generation iPhone due this fall, presumably called the iPhone 15, is likely to feature more pronounced updates. There are expectations that Apple will raise prices on the flagship variants of the device, after essentially keeping prices flat for six years.
So, is Apple stock still a buy following the big rally this year? We believe Apple stock is now fully priced. At the current market price of roughly $165 per share, Apple trades at almost 28x consensus FY’23 earnings, which we believe is a relatively high valuation for the company. Apple’s current earnings yields and its position as a safe-haven stock are looking less attractive, with the Federal funds rate standing at between 4.75% to 5.00% presently. Moreover, we have concerns regarding the slowdown in Apple’s services business after years of robust growth. Services revenue grew by just 6.4% in Q1 FY’23, compared to an average growth rate of over 20% each year over the last five years. This is negative for Apple, considering that services are typically Apple’s highest margin segment (over 70% gross margins compared to about 36% for hardware). We value Apple stock at about $160 per share, marginally below the current market price. See our analysis of Apple Valuation: Is AAPL Stock Expensive Or Cheap? for more details of what’s driving our valuation for Apple stock and how it compares to rivals.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Apr 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return 0% 27% 470%
S&P 500 Return 0% 7% 84%
Trefis Multi-Strategy Portfolio 0% 8% 241%
[1] Month-to-date and year-to-date as of 4/3/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple stock (NASDAQ:AAPL) had a solid year so far rising by about 27% since early January, outperforming the Nasdaq-100 which remains up by about 20% year-to-date. See our analysis of Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 0% 27% 470% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 241% [1] Month-to-date and year-to-date as of 4/3/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See our analysis of Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 0% 27% 470% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 241% [1] Month-to-date and year-to-date as of 4/3/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple stock (NASDAQ:AAPL) had a solid year so far rising by about 27% since early January, outperforming the Nasdaq-100 which remains up by about 20% year-to-date.
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Total [2] AAPL Return 0% 27% 470% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 241% [1] Month-to-date and year-to-date as of 4/3/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple stock (NASDAQ:AAPL) had a solid year so far rising by about 27% since early January, outperforming the Nasdaq-100 which remains up by about 20% year-to-date. See our analysis of Apple Valuation: Is AAPL Stock Expensive Or Cheap?
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Total [2] AAPL Return 0% 27% 470% S&P 500 Return 0% 7% 84% Trefis Multi-Strategy Portfolio 0% 8% 241% [1] Month-to-date and year-to-date as of 4/3/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple stock (NASDAQ:AAPL) had a solid year so far rising by about 27% since early January, outperforming the Nasdaq-100 which remains up by about 20% year-to-date. See our analysis of Apple Valuation: Is AAPL Stock Expensive Or Cheap?
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16457.0
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2023-04-06 00:00:00 UTC
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Should WisdomTree U.S. Total Dividend ETF (DTD) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-total-dividend-etf-dtd-be-on-your-investing-radar-7
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nan
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nan
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the WisdomTree U.S. Total Dividend ETF (DTD), a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.08 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.82%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 15.30% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 21.46% of total assets under management.
Performance and Risk
DTD seeks to match the performance of the WisdomTree U.S. Dividend Index before fees and expenses. The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
The ETF has added about 0.59% so far this year and is down about -3.20% in the last one year (as of 04/06/2023). In the past 52-week period, it has traded between $54.26 and $65.68.
The ETF has a beta of 0.91 and standard deviation of 17.42% for the trailing three-year period, making it a medium risk choice in the space. With about 829 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DTD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.58 billion in assets, Vanguard Value ETF has $101.68 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.08 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the WisdomTree U.S. Total Dividend ETF (DTD), a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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16458.0
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2023-04-06 00:00:00 UTC
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How to Find Undervalued Stocks? Here's Where I Start.
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AAPL
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https://www.nasdaq.com/articles/how-to-find-undervalued-stocks-heres-where-i-start.
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nan
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nan
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There are many different styles people take when approaching investing. One of those styles is value investing, which is looking for stocks trading below the price they're really worth.
This can be as complicated as determining a stock's intrinsic value. For example, if a company is trading at $100 per share and an investor believes its intrinsic value is $125, they'd invest, hoping the stock market eventually prices it at $125 and they'll have 25% gains.
But there are simple ways to use value investing principles, too. If you're looking to find undervalued stocks, look no further than a company's price-to-earnings ratio.
Image source: Getty Images.
Don't forget about the earnings
The price-to-earnings ratio, or P/E ratio, is helpful because it tells you how much you're paying for each dollar of a company's earnings. You can find a company's P/E ratio by dividing its current stock price by its earnings per share (EPS). For example, if a stock is trading at $100 and has an EPS of $5, its P/E ratio would be 20, meaning you're paying $20 for each $1 of earnings.
The P/E ratio alone won't tell you a stock's value, because different industries naturally have different P/E ratios. A large reason is that investors of companies in higher-growth industries are more willing to pay a higher price now for future growth. The banking industry, for example, typically operates with low P/E ratios, while healthcare is typically much higher. That's why you wouldn't compare JPMorgan Chase's P/E ratio to Johnson and Johnson's, or Apple's to Walt Disney's. You could, however, compare JPMorgan to Goldman Sachs, or Apple to Microsoft.
If you're examining a company and its P/E ratio is noticeably lower than other companies in its industry, it could be undervalued -- for instance, if a company has a P/E ratio in the 10s but competitors are in the 20s or 30s. It's important to understand the reasons why that might be -- as we'll touch on in the next section -- but if you're looking for undervalued stocks, it's a reason to investigate.
Understanding the why behind a company's P/E ratio
Let's use Alphabet (NASDAQ: GOOGL) as an example. At recent prices, the company has a P/E ratio hovering around 23, less than half as much as just five years ago. That tells you the stock is cheaper than it's been in recent years. That doesn't necessarily make it undervalued. However, when you zoom out and compare it to other Big Tech peers, the argument can be made it's undervalued by comparison.
DATA BY YCharts
Since P/E ratios decrease when stock prices decrease, it's equally important to understand the why behind a stock's current levels. You want to ensure it's truly undervalued and not a justly priced bad investment.
A glance at Alphabet's EPS history shows profit growth has slipped lately. But it's not the only one in that position, and its growth in recent years has still been strong.
DATA BY YCharts
Alphabet's slowing digital ad spending could be a reason why the market has soured. But an argument could be made that with macroeconomic conditions, it doesn't warrant the company losing more than 25% of its market value over the past year -- especially given its track record.
What next?
The P/E ratio isn't the final word on whether a stock is undervalued or not. But understanding what it's telling you about market sentiment is a good place to start your research.
In the case of Alphabet, you might also ask:
What could drive Alphabet's EPS growth higher in the future?
Since the S&P 500's P/E is around 18 lately, will Alphabet grow so much faster that it deserves a higher multiple?
Everyone likes a good value or discount, especially in the stock market. That's most of the appeal behind value investing. It does take time and research, but using a metric like the P/E ratio comparatively gives much more insight -- not only into a specific company, but also its competitors and the industry it operates in.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, JPMorgan Chase, Meta Platforms, Microsoft, and Walt Disney. The Motley Fool recommends Johnson & Johnson and Raytheon Technologies and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, if a company is trading at $100 per share and an investor believes its intrinsic value is $125, they'd invest, hoping the stock market eventually prices it at $125 and they'll have 25% gains. But an argument could be made that with macroeconomic conditions, it doesn't warrant the company losing more than 25% of its market value over the past year -- especially given its track record. The Motley Fool has positions in and recommends Alphabet, Apple, JPMorgan Chase, Meta Platforms, Microsoft, and Walt Disney.
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That's why you wouldn't compare JPMorgan Chase's P/E ratio to Johnson and Johnson's, or Apple's to Walt Disney's. DATA BY YCharts Since P/E ratios decrease when stock prices decrease, it's equally important to understand the why behind a stock's current levels. The Motley Fool has positions in and recommends Alphabet, Apple, JPMorgan Chase, Meta Platforms, Microsoft, and Walt Disney.
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If you're examining a company and its P/E ratio is noticeably lower than other companies in its industry, it could be undervalued -- for instance, if a company has a P/E ratio in the 10s but competitors are in the 20s or 30s. DATA BY YCharts Since P/E ratios decrease when stock prices decrease, it's equally important to understand the why behind a stock's current levels. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors.
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For example, if a company is trading at $100 per share and an investor believes its intrinsic value is $125, they'd invest, hoping the stock market eventually prices it at $125 and they'll have 25% gains. For example, if a stock is trading at $100 and has an EPS of $5, its P/E ratio would be 20, meaning you're paying $20 for each $1 of earnings. The Motley Fool has positions in and recommends Alphabet, Apple, JPMorgan Chase, Meta Platforms, Microsoft, and Walt Disney.
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16459.0
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2023-04-06 00:00:00 UTC
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Wall Street Says 3 of Q1's Hottest Tech Stocks Are Done Rallying... at Least for Now
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AAPL
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https://www.nasdaq.com/articles/wall-street-says-3-of-q1s-hottest-tech-stocks-are-done-rallying...-at-least-for-now
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nan
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nan
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As the old adage goes, "Past performance does not guarantee future results." More to the point, there's no assurance that three of the first quarter's hottest technology stocks will be able to repeat the feat in the second quarter. Each ticker is near, at, or even beyond Wall Street's consensus target price (and it's not like analysts haven't had ample opportunity to raise their targets since these rallies began).
Here's a closer look at these three names and their current situations. If you own any or all of them, it might be smart to reassess your reasons for holding these stocks. If they're a true long-term holding, so be it. If they're more of a trade, though, the trade's likely run its course.
1. Roblox
Q1 gain: 58%
Current price: $46.58
Consensus price target: $39.40
The big gain dished out by metaverse outfit Roblox (NYSE: RBLX) shares since the end of 2022 makes enough sense on the surface. Last year was disastrous for the stock. The company went public at the height of 2021's metaverse mania, but as the COVID-19 pandemic eased and enthusiasm about the metaverse waned, so did investors' interest. The bear market certainly didn't help either. It's easy to look back and think the sellers overshot their target, though. The Q1 rally simply corrects that mistake.
But there are still more questions than answers for Roblox.
Chief among the questions are February's activity measures and their implications. By and large, they were solid. The number of daily active users grew 22% year over year, while the total number of hours spent playing within its virtual worlds improved 24%. The single-digit decline in the number of average sessions for daily users, however, could be a subtle early sign that its reach is peaking. Underscoring this idea is the fact that the same measure was essentially flat for January rather than up.
Perhaps worse, this month's posting of these vital user metrics for March will be the company's last such report, obscuring a full view of the company's health at a time when Roblox should be demonstrating the importance of its role in the metaverse movement.
Indeed, the decision could be interpreted as a deliberate move to obscure slowing growth stemming from weakening interest. NPD Group reports that sales of the virtual reality headsets needed to enter the metaverse actually fell 12% last year. Growing losses in spite of persistent revenue growth, and frequent misses of earnings estimates, are also becoming habits that ultimately work against the stock.
2. Tesla
Q1 gain: 68%
Current price: $191.64
Consensus price target: $205.54
For the record, shares of electric vehicle (EV) maker Tesla (NASDAQ: TSLA) aren't quite to their consensus target of $205.54 just yet. They're close, sitting a mere 7% below that mark after failing to make any forward progress since mid-February's high. That may not be enough upside potential to justify the downside risk of this stock at this time.
For years Elon Musk's Tesla was a company that could do no wrong, represented by a stock that rarely stayed down for long.
As Tesla reached a massive scale and viable competition crept into the EV space, however, the stock's reliable bullishness and the bullish narrative surrounding the company suffered. Case in point: Despite a 44% year-over-year increase to 440,808 manufactured vehicles during Q1 and delivering a record-breaking 422,875 EVs in the same quarter, shares fell following the news.
Why? Analysts were expecting deliveries of more than 430,000 battery-powered cars stemming from demand that was supposed to be spurred by price cuts. The modest inventory buildup further points to a possible slowdown in demand for Tesla's EVs.
These worries are arguably overblown. After all, the Tesla name is nearly synonymous with electric vehicles, accounting for the majority of EV sales after Musk mainstreamed the EV movement. That's apt to remain the case for the indefinite future, too. True long-term investors can confidently step into or stick with the stock here.
If you're only willing or able to hold Tesla shares as a near-term trade, there's above-average danger in doing so right now. This stock's increasingly being treated as a mature growth name rather than the must-have Wall Street darling it was during its earliest years of existence. This new dynamic is vexing investors, leaving shares vulnerable to volatility while the market gets a grip on this stock's new norm.
3. Spotify Technology
Q1 gain: 69%
Current price: $134.66
Consensus price target: $136.44
Shares of Sweden's Spotify Technology (NYSE: SPOT) are rallying for understandable reasons. The digital radio platform passed 500 million listeners last month, and by leveraging AI-powered music suggestions along with short-form video and podcasts, the company believes it can grow its customer headcount to 1 billion by 2030.
With the stock up nearly 70% just over the course of the past three months, though, the bulls have arguably gotten more than a little ahead of themselves.
Don't misunderstand. A billion paying customers isn't an outrageous outlook in light of everything the app does and will eventually offer. Some analysts also argue the service is underpriced in certain markets (including in the U.S.), leaving room for a price increase that won't prompt a wave of cancellations.
Guggenheim's Michael Morris is one of these analysts, upgrading SPOT stock to a buy last month to reflect "our estimate of subscription plan price increases, which we expect will take effect on a broad geographic basis in mid-2023." He adds that "the music business gained scale and we see Spotify leadership continuing to recognize incremental efficiency as a value-creating strength that the company can disproportionally benefit from."
Translation? Look for losses to turn into profits as time marches on.
The widening profit margins Morris believes are in the cards are a slow-moving train, reliant on business development initiatives that are still relatively foreign to Spotify in a market that includes stiff competition like Apple and Amazon. There's plenty of opportunity for stumbles and setbacks in the foreseeable future that could prompt a pullback. Conversely, there's not a lot of additional value left to pack into the stock's present price.
10 stocks we like better than Roblox
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 Roblox 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 March 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Roblox, Spotify Technology, 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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The digital radio platform passed 500 million listeners last month, and by leveraging AI-powered music suggestions along with short-form video and podcasts, the company believes it can grow its customer headcount to 1 billion by 2030. Guggenheim's Michael Morris is one of these analysts, upgrading SPOT stock to a buy last month to reflect "our estimate of subscription plan price increases, which we expect will take effect on a broad geographic basis in mid-2023." The widening profit margins Morris believes are in the cards are a slow-moving train, reliant on business development initiatives that are still relatively foreign to Spotify in a market that includes stiff competition like Apple and Amazon.
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Roblox Q1 gain: 58% Current price: $46.58 Consensus price target: $39.40 The big gain dished out by metaverse outfit Roblox (NYSE: RBLX) shares since the end of 2022 makes enough sense on the surface. Tesla Q1 gain: 68% Current price: $191.64 Consensus price target: $205.54 For the record, shares of electric vehicle (EV) maker Tesla (NASDAQ: TSLA) aren't quite to their consensus target of $205.54 just yet. Spotify Technology Q1 gain: 69% Current price: $134.66 Consensus price target: $136.44 Shares of Sweden's Spotify Technology (NYSE: SPOT) are rallying for understandable reasons.
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Roblox Q1 gain: 58% Current price: $46.58 Consensus price target: $39.40 The big gain dished out by metaverse outfit Roblox (NYSE: RBLX) shares since the end of 2022 makes enough sense on the surface. Tesla Q1 gain: 68% Current price: $191.64 Consensus price target: $205.54 For the record, shares of electric vehicle (EV) maker Tesla (NASDAQ: TSLA) aren't quite to their consensus target of $205.54 just yet. Spotify Technology Q1 gain: 69% Current price: $134.66 Consensus price target: $136.44 Shares of Sweden's Spotify Technology (NYSE: SPOT) are rallying for understandable reasons.
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Each ticker is near, at, or even beyond Wall Street's consensus target price (and it's not like analysts haven't had ample opportunity to raise their targets since these rallies began). * They just revealed what they believe are the ten best stocks for investors to buy right now... and Roblox wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Roblox, Spotify Technology, and Tesla.
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16460.0
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2023-04-06 00:00:00 UTC
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Apple says 'Hello Mumbai' at first India store launch
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AAPL
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https://www.nasdaq.com/articles/apple-says-hello-mumbai-at-first-india-store-launch
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nan
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nan
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By Francis Mascarenhas and Tanvi Mehta
MUMBAI, April 6 (Reuters) - Apple Inc AAPL.O on Wednesday revealed the look of its first retail store in India, as several people tried to catch a glimpse outside the store's black and yellow artwork patterned after Mumbai's iconic taxis.
The store is still in barricades and is likely to open this month, a person familiar with the matter told Reuters.
India has become a big market for the Cupertino, California-based company, which launched an online retail store in the world's second-largest smartphone market in 2020.
Still, due to its high prices, Apple has only a 3% share of India's smartphone market.
Apple has previously faced hurdles in opening physical retail stores in the country, with 2021 launch plans delayed because of the COVID-19 pandemic.
Apple products, however, have been sold in India for years on e-commerce platforms such as Amazon.com Inc AMZN.O and Walmart Inc's WMT.N Flipkart, as well as through resellers.
India is also increasingly becoming a manufacturing base, with some Apple products, including iPhones, assembled in the country by Taiwanese contract electronics manufacturers Foxconn 2317.TW and Wistron Corp 3231.TW. Apple also plans to assemble iPads and AirPods in India.
The first retail store is located in the premier Reliance Jio World Drive mall, home to various luxury clothing and jewellery brands like Michael Kors, Kate Spade and Swarovski.
The brightly-lit store was "inspired by the iconic Kaali Peeli taxi art unique to Mumbai," Apple said in a statement, referring to the city's decades-old yellow and black taxis.
People were taking selfies and recording videos on their smartphones outside the store on Wednesday evening, with the Apple logo decked out in a variety of colours and a version of the classic Apple greeting showing "Hello Mumbai".
(Reporting by Francis Mascarenhas in Mumbai, Aditya Kalra and Tanvi Mehta in New Delhi; additional reporting by Ira Dugal and Varun Vyas; Editing by Rashmi Aich and Jamie Freed)
((varunvyas.hebbalalu@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 Francis Mascarenhas and Tanvi Mehta MUMBAI, April 6 (Reuters) - Apple Inc AAPL.O on Wednesday revealed the look of its first retail store in India, as several people tried to catch a glimpse outside the store's black and yellow artwork patterned after Mumbai's iconic taxis. Apple has previously faced hurdles in opening physical retail stores in the country, with 2021 launch plans delayed because of the COVID-19 pandemic. The first retail store is located in the premier Reliance Jio World Drive mall, home to various luxury clothing and jewellery brands like Michael Kors, Kate Spade and Swarovski.
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By Francis Mascarenhas and Tanvi Mehta MUMBAI, April 6 (Reuters) - Apple Inc AAPL.O on Wednesday revealed the look of its first retail store in India, as several people tried to catch a glimpse outside the store's black and yellow artwork patterned after Mumbai's iconic taxis. India has become a big market for the Cupertino, California-based company, which launched an online retail store in the world's second-largest smartphone market in 2020. Apple has previously faced hurdles in opening physical retail stores in the country, with 2021 launch plans delayed because of the COVID-19 pandemic.
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By Francis Mascarenhas and Tanvi Mehta MUMBAI, April 6 (Reuters) - Apple Inc AAPL.O on Wednesday revealed the look of its first retail store in India, as several people tried to catch a glimpse outside the store's black and yellow artwork patterned after Mumbai's iconic taxis. The brightly-lit store was "inspired by the iconic Kaali Peeli taxi art unique to Mumbai," Apple said in a statement, referring to the city's decades-old yellow and black taxis. People were taking selfies and recording videos on their smartphones outside the store on Wednesday evening, with the Apple logo decked out in a variety of colours and a version of the classic Apple greeting showing "Hello Mumbai".
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By Francis Mascarenhas and Tanvi Mehta MUMBAI, April 6 (Reuters) - Apple Inc AAPL.O on Wednesday revealed the look of its first retail store in India, as several people tried to catch a glimpse outside the store's black and yellow artwork patterned after Mumbai's iconic taxis. The store is still in barricades and is likely to open this month, a person familiar with the matter told Reuters. India has become a big market for the Cupertino, California-based company, which launched an online retail store in the world's second-largest smartphone market in 2020.
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2023-04-06 00:00:00 UTC
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GRAPHIC-World stocks survive banking turmoil - but for how long?
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https://www.nasdaq.com/articles/graphic-world-stocks-survive-banking-turmoil-but-for-how-long
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By Naomi Rovnick and Sumanta Sen
LONDON, April 6 (Reuters) - Banking sector turmoil has not dented demand for equities, with MSCI's world stock index up 7% so far this year.
Hopes that the Federal Reserve and others could soon pause the most aggressive interest rate hiking cycle in decades has supported stocks even as sentiment more generally has been rattled by the failures of two U.S. lenders and Credit Suisse's shotgun merger with UBS.
But under the surface, bad omens for world stocks are building.
1/ TIGHTER CREDIT
Customers have whipped deposits out of U.S. regional banks and Swiss authorities' shock wipeout of $17 billion worth of Credit Suisse bonds has rattled a key market for European bank funding.
Analysts say this undermines the sector's ability to lend money to companies. Central bank surveys show U.S. and European banks are already tightening lending standards, historically a predictor of dismal stock market performance.
When financing is scarcer companies pay more for loans, hurting profits and share prices.
"Tightening lending standards tend to correlate with recessions, and the stock market tends to fall during recessions," said Jason Da Silva, senior research analyst at London bank Arbuthnot Latham. "This is not a good sign."
2/ MANUFACTURING SLOWDOWN
Recessions starting in the United States tend to flow to the rest of the world and consequently global stocks.
The U.S. ISM manufacturing index, a leading indicator of economic activity, dropped to its lowest since May 2020 last month and signaled a fifth straight month of contraction.
The data showed "a recession is due pretty soon in the U.S. and other advanced economies," said Capital Economics senior markets economist Oliver Allen. "That downturn is going to start to weigh on risky assets pretty heavily."
3/ TECH HOLDS THE CARDS
Stock market gains so far in 2023 have been dominated by tech stocks, an industry that may not be immune to recession.
Tech, the largest sub-index .dMIWO0IT00PUS of the MSCI World, has jumped 20% so far this year; other big sector constituents such as banks .dMIWO0BK00PUS , healthcare .dMIWO0HC00GUS and energy .dMIWO0EN00PUS are flat or lower.
The UK S&P 500 index rose 7% in the first quarter .SPX, in a gain it has held onto since. Seven mega-cap tech stocks were responsible for 92% of the S&P 500's first-quarter rise, Citi notes.
The bank's head of U.S. equity trading strategy, Stuart Kaiser, said institutional investors view big tech companies, which generally have strong balance sheets and low debt, as a shield against a credit squeeze.
The defensive tech trade could work in a shallow recession. But in a deep downturn, Kaiser cautioned, money managers may dump tech too: "The next step would be just to sell stocks."
4/ FINANCE WOBBLES
March was the first month in 20 years where financial stocks fell 10% or more and the MSCI World index did not drop, Morgan Stanley research shows.
This historical relationship may have faltered because the market "does not believe there will be meaningful contagion from the financial sector into the broader economy," Morgan Stanley chief European equity strategist Graham Secker said.
Florian Ielpo, head of macro at Lombard Odier Investment Management, who has held an underweight position on global stocks since January 2022, cautioned banking troubles could still pull overall stocks lower.
"Banks are likely to lend a lot less to the economy," Ielpo said. Higher costs of credit will weaken earnings, he added, prompting "a moment of reckoning" when equity holders switch allocations to bonds.
5/ FINALLY, THE YIELD CURVE
U.S. Treasury yields are higher than those on 10-year peers. This so-called yield curve inversion, often a harbinger of recession, last month became the deepest in 42 years US2US10=TWEB.
Since 1967, yield curve inversions have occurred 15 months before recessions, on average, Barclays research shows.
While stocks can rise as the yield curve inverts, the rally is not often sustained. The S&P 500 on average hit a cycle peak just four months before a U.S. recession begins, Barclays found.
"It is not unusual for equities to keep rising even as (the) yield curve inverts," Barclays head of European equity strategy Emmanuel Cau said. "But the bond market is looking ahead and of the view that current activity strength won't last."
Stocks and recession - Credit tighteninghttps://tmsnrt.rs/3U86ygM
Stocks and recession - PMIshttps://tmsnrt.rs/3KzG2cT
World stocks rise as financial shares fallhttps://tmsnrt.rs/3GimiYX
Bond market flashes recession signalhttps://tmsnrt.rs/3zBNSwt
Tech concentration https://tmsnrt.rs/3m7lvTA
(Reporting by Naomi Rovnick; graphics by Sumanta Sen, Editing by Dhara Ranasinghe and Conor Humphries)
((Naomi.Rovnick@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 Naomi Rovnick and Sumanta Sen LONDON, April 6 (Reuters) - Banking sector turmoil has not dented demand for equities, with MSCI's world stock index up 7% so far this year. Hopes that the Federal Reserve and others could soon pause the most aggressive interest rate hiking cycle in decades has supported stocks even as sentiment more generally has been rattled by the failures of two U.S. lenders and Credit Suisse's shotgun merger with UBS. The bank's head of U.S. equity trading strategy, Stuart Kaiser, said institutional investors view big tech companies, which generally have strong balance sheets and low debt, as a shield against a credit squeeze.
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The bank's head of U.S. equity trading strategy, Stuart Kaiser, said institutional investors view big tech companies, which generally have strong balance sheets and low debt, as a shield against a credit squeeze. March was the first month in 20 years where financial stocks fell 10% or more and the MSCI World index did not drop, Morgan Stanley research shows. Stocks and recession - Credit tighteninghttps://tmsnrt.rs/3U86ygM Stocks and recession - PMIshttps://tmsnrt.rs/3KzG2cT World stocks rise as financial shares fallhttps://tmsnrt.rs/3GimiYX Bond market flashes recession signalhttps://tmsnrt.rs/3zBNSwt Tech concentration https://tmsnrt.rs/3m7lvTA (Reporting by Naomi Rovnick; graphics by Sumanta Sen, Editing by Dhara Ranasinghe and Conor Humphries) ((Naomi.Rovnick@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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"Tightening lending standards tend to correlate with recessions, and the stock market tends to fall during recessions," said Jason Da Silva, senior research analyst at London bank Arbuthnot Latham. Stock market gains so far in 2023 have been dominated by tech stocks, an industry that may not be immune to recession. Stocks and recession - Credit tighteninghttps://tmsnrt.rs/3U86ygM Stocks and recession - PMIshttps://tmsnrt.rs/3KzG2cT World stocks rise as financial shares fallhttps://tmsnrt.rs/3GimiYX Bond market flashes recession signalhttps://tmsnrt.rs/3zBNSwt Tech concentration https://tmsnrt.rs/3m7lvTA (Reporting by Naomi Rovnick; graphics by Sumanta Sen, Editing by Dhara Ranasinghe and Conor Humphries) ((Naomi.Rovnick@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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"Tightening lending standards tend to correlate with recessions, and the stock market tends to fall during recessions," said Jason Da Silva, senior research analyst at London bank Arbuthnot Latham. March was the first month in 20 years where financial stocks fell 10% or more and the MSCI World index did not drop, Morgan Stanley research shows. While stocks can rise as the yield curve inverts, the rally is not often sustained.
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16462.0
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2023-04-05 00:00:00 UTC
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Invest with (or Against) Jim Cramer with These New ETFs
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https://www.nasdaq.com/articles/invest-with-or-against-jim-cramer-with-these-new-etfs
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If you’ve ever dreamed of investing alongside CNBC’s Jim Cramer or going against his picks through a single investment vehicle, your oddly-specific dreams have now come true, thanks to two new ETFs from Tuttle Capital.
Long Jim or Short Jim?
The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about. The funds also invest in (or short) stocks that Cramer mentions on Twitter.
Tuttle Capital is also the firm behind the Tuttle Capital Short Innovation ETF (NASDAQ:SARK), which fades the picks of the ARK Invest Innovation ETF (NYSEARCA:ARKK). Like Cramer, ARK’s founder and CIO Cathie Wood is another high-profile, polarizing figure in the investing world, so it appears that Tuttle is going back to the well here with these two Cramer-themed ETFs.
SARK has attracted a decent amount of publicity and managed to accrue over $300 million in assets under management (AUM) so far, but the two Cramer ETFs have a long way to go to this point -- SJIM has about $5.5 million in AUM while LJIM has a microscopic AUM of $1 million.
The pair of ETFs only launched in early March, so their track record is based on a small sample size, but so far, SJIM is up 0.5% since inception, while LJIM is down 2.6%.
Looking into LJIM's Holdings
LJIM holds 36 positions, and its top 10 holdings make up just 35.5% of assets.
Cramer is well-known to be a long-time fan of Nvidia (NASDAQ:NVDA), even going as far as to name his dog after the company, so it is unsurprising that the semiconductor giant is LJIM’s largest holding, with a 5% weighting.
Cramer was pounding the table on Meta Platforms (NASDAQ:META) when it bottomed out in late 2022, and Meta is LJIM’s second-largest position.
Looking at LJIM as a whole, you’ll find an assortment of blue-chip U.S. stocks ranging from Dow components like Boeing (NYSE:BA) and Caterpillar (NYSE:CAT) to more tech and growth names like Advanced Micro Devices (NASDAQ:AMD), Tesla (NASDAQ:TSLA), and the aforementioned Nvidia and Meta Platforms.
Subjectively, just from my own experience watching Mad Money and Squawk on the Street here and there over the years, I would say that this strategy reflects Cramer’s general investment style fairly accurately. Below, you’ll find an overview of LJIM’s top holdings using TipRanks’ holdings screen.
While these picks may not be anything fancy or under the radar, you could do a lot worse than investing in a diversified basket of blue-chip U.S. companies and top growth stocks over the long run, so LJIM actually doesn’t look bad.
In fact, LJIM has managed to accrue an ETF Smart Score of 7 out of 10, which is just on the cusp of an outperform rating based on TipRanks’ proprietary Smart Score system. Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above.
What is the Price Target for LJIM?
LJIM stock has also accrued a Moderate Buy consensus rating from analysts. The average LJIM stock price target of $29.24 implies 17.2% upside potential from current levels.
SJIM's Holdings
On the other hand, SJIM is made up mostly of short positions in the stocks that Cramer touts. There are also smaller positions in companies that Cramer has been bearish on. Below you'll find an overview of SJIM's holdings.
One thing that I find curious about SJIM’s holdings is that it doesn’t have a position in Coinbase (NASDAQ:COIN) (or a crypto-themed ETF), given Cramer’s long-time aversion to crypto, or any Chinese stocks or ETFs, given that Cramer has advised viewers against investing in China for years, so I would think a position in something like an Alibaba (NYSE:BABA) would be a strong fit here.
Size and Fees
With just $5.5 million in assets under management, SJIM is a minuscule ETF, and LJIM is even smaller, with $1 million in assets under management. This minuscule size makes these ETFs particularly susceptible to market volatility.
Another negative here is the high fees. This is an actively-managed, niche-focused ETF, so its fees are going to be higher than a low-fee, broad-market ETF like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), but the expense ratio of 1.2% that both ETFs have still seems a bit steep.
Spare a Thought for Jim
It seems that Cramer has attracted quite a few detractors in recent times; bashing his picks that don’t work out has become a popular pastime on social media. For instance, the “Inverse Cramer” profile on Twitter has accrued over 226,000 followers since 2021.
In fairness to Cramer, Mad Money has been on the air since 2005, and he hosts it almost every day that the market is open (in addition to co-hosting Squawk on the Street most days), so anyone who needs to fill up this much airtime is bound to have their share of hits and misses.
While his strategy of investing in blue-chip U.S. stocks is nothing fancy or complex, for the most part, it has been an effective strategy for investors over the long run. His advice of investing in index funds first and diversifying isn't bad advice for new investors, and he has helped to get many people into investing for the first time, which is a net positive for society as a whole in my view, so I don't think he truly deserves the bad rap that he gets on some of the snarkier corners of the internet.
Additional Thoughts
Cramer can change his mind about a pick whenever he wants, or flip from bullish to bearish on a company on a whim, so there will likely be an elevated level of turnover here, especially in SJIM. According to the ETF's prospectus, "Under normal circumstances, the Fund will hold positions
no longer than a 5-day trading week but could hold a position longer if Cramer continues to have a contrary opinion." This high level of turnover could lead to a higher tax burden for investors holding these vehicles in taxable accounts.
While SARK (the aforementioned ETF that enables investors to fade the ARK Innovation ETF) has garnered a larger AUM, the difference between these ETFs and SARK is that SARK can also be used by investors as a convenient way to short a certain breed of tech stock given ARK’s association with richly-valued tech stocks.
I’m actually more bullish on LJIM than SJIM, based on its relatively high-quality portfolio of holdings with strong Smart Scores. However, given the nature of Cramer’s investment style, investors can probably simply own a cheaper broad-market U.S. ETF and achieve roughly similar results.
There's Always a Bull Market Somewhere
While the idea of the inverse Cramer ETF is entertaining, I don’t really see it as a viable long-term investing strategy. Given their size, fees, and strategies, it seems unlikely that these ETFs will attract significant institutional investments and will likely end up as more of a novelty than a widespread long-term investing strategy.
That said, the goal of the ETFs may simply be to generate more publicity for Tuttle Capital, and they have succeeded in that regard. As Cramer says, "There's always a bull market somewhere."
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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Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. Like Cramer, ARK’s founder and CIO Cathie Wood is another high-profile, polarizing figure in the investing world, so it appears that Tuttle is going back to the well here with these two Cramer-themed ETFs. Cramer is well-known to be a long-time fan of Nvidia (NASDAQ:NVDA), even going as far as to name his dog after the company, so it is unsurprising that the semiconductor giant is LJIM’s largest holding, with a 5% weighting.
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Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about.
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Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. One thing that I find curious about SJIM’s holdings is that it doesn’t have a position in Coinbase (NASDAQ:COIN) (or a crypto-themed ETF), given Cramer’s long-time aversion to crypto, or any Chinese stocks or ETFs, given that Cramer has advised viewers against investing in China for years, so I would think a position in something like an Alibaba (NYSE:BABA) would be a strong fit here.
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Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about. Tuttle Capital is also the firm behind the Tuttle Capital Short Innovation ETF (NASDAQ:SARK), which fades the picks of the ARK Invest Innovation ETF (NYSEARCA:ARKK).
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16463.0
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2023-04-05 00:00:00 UTC
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US STOCKS-S&P 500 ends lower as recession fears take center stage
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-as-recession-fears-take-center-stage-0
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By Noel Randewich and Ankika Biswas
April 5 (Reuters) - The S&P 500 dipped and the Nasdaq ended sharply lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.
Nvidia Corp NVDA.Odropped 2.1% and was among the stocks weighing most on the S&P 500 after Alphabet Inc's GOOGL.O Google unit said the supercomputers it uses to train its artificial intelligence models were faster and more power-efficient than comparable components made by the chipmaker.
Tesla Inc TSLA.Ofell 3.7%, while Amazon AMZN.O and Apple AAPL.O declined more than 1%, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks.
Caterpillar CAT.N, viewed as a bellwether for the industrial sector, dropped 1.8%, bringing its loss over the past two days to 7% as investors fretted about a potential economic downturn.
The S&P 500 declined 0.25% to end the session at 4,090.38 points.
The Nasdaq fell 1.07% to 11,996.86 points, while the Dow Jones Industrial Average rose 0.24% to 33,482.72 points.
Driving the recession fears, the ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March. That followed Tuesday's weak job openings data.
As well, the Institute for Supply Management's survey showed the services sector slowed more than expected last month on cooling demand, while a measure of prices paid by services businesses fell to a near three-year low.
Earlier this week data showed falling factory orders and soft manufacturing activity.
Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
"We may have transitioned from the notion that 'bad news is good news' to 'bad new is bad news'," said Jay Hatfield, chief executive and portfolio manager at InfraCap in New York. "Fear about a recession is the dominant theme."
Reflecting worries about the economy and recent turmoil in the banking sector, interest rate futures imply 61% odds that the Fed will cut interest rates from current levels by the end of its July meeting, according to CME Group's Fedwatch tool.
Of the 11 S&P 500 sector indexes, seven declined, led lower by consumer discretionary .SPLRCD, down 2.04%, followed by a 1.3% loss in industrials .SPLRCI.
Among stocks that kept the Dow Jones Industrial Average in positive territory, Johnson & Johnson > rallied 4.5% after its $8.9 billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue.
Artificial intelligence C3.ai Inc AI.Ntumbled more than 15%, sliding for a second day after a short seller alleged accounting issues. The AI company denied the allegations in an emailed response to Reuters.
FedEx Corp FDX.N rose 1.5% as the freight bellwether firm said it will fold its operating divisions into one organization as it steps up efforts to cut costs and increase efficiency.
Big banks including JPMorgan Chase & Co JPM.N and Citigroup C.N will be among companies kicking off March-quarter reporting season next week, with investors eager for updates on the health of the financial industry.
Analysts on average expect aggregate S&P 500 company earnings for the first quarter to have fallen 5% year-over-year, according to Refinitiv I/B/E/S.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.2-to-one ratio.
The S&P 500 posted 11 new highs and two new lows; the Nasdaq recorded 39 new highs and 269 new lows.
Volume on U.S. exchanges was relatively light, with 10.1 billion shares traded, compared to an average of 12.7 billion shares over the previous 20 sessions.
Traders bet on Fed rate cut by July meeting Traders bet on Fed rate cut by July meetinghttps://tmsnrt.rs/3z2AqBk
S&P 500's busiest tradeshttps://tmsnrt.rs/3zA5eK7
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Nivedita Bhattacharjee, Shounak Dasgupta and Deepa Babington)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tesla Inc TSLA.Ofell 3.7%, while Amazon AMZN.O and Apple AAPL.O declined more than 1%, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 dipped and the Nasdaq ended sharply lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Big banks including JPMorgan Chase & Co JPM.N and Citigroup C.N will be among companies kicking off March-quarter reporting season next week, with investors eager for updates on the health of the financial industry.
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Tesla Inc TSLA.Ofell 3.7%, while Amazon AMZN.O and Apple AAPL.O declined more than 1%, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. The Nasdaq fell 1.07% to 11,996.86 points, while the Dow Jones Industrial Average rose 0.24% to 33,482.72 points. Reflecting worries about the economy and recent turmoil in the banking sector, interest rate futures imply 61% odds that the Fed will cut interest rates from current levels by the end of its July meeting, according to CME Group's Fedwatch tool.
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Tesla Inc TSLA.Ofell 3.7%, while Amazon AMZN.O and Apple AAPL.O declined more than 1%, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 dipped and the Nasdaq ended sharply lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
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Tesla Inc TSLA.Ofell 3.7%, while Amazon AMZN.O and Apple AAPL.O declined more than 1%, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 dipped and the Nasdaq ended sharply lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. The S&P 500 declined 0.25% to end the session at 4,090.38 points.
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2023-04-05 00:00:00 UTC
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These Stocks Are Warren Buffett's 3 Largest AI-Fueled Investments
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https://www.nasdaq.com/articles/these-stocks-are-warren-buffetts-3-largest-ai-fueled-investments
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Despite the recent optimism and hype surrounding stocks associated with artificial intelligence (AI) and machine learning (ML), AI-focused investment strategies probably don't attract much interest from famed investor Warren Buffett -- at least, not directly. Buffett, who has spoken briefly about both the potential and the drawbacks of these technologies, would likely have less interest in being a direct AI investor. Emerging technologies tend to foster money-losing tech stocks, and history has usually proven him right when he was skeptical of such assets.
However, many of the stocks Buffett already owns have made him and the Berkshire Hathaway team into AI investors by default, as many of his smaller investments -- stocks like Amazon, Activision Blizzard, and Snowflake -- make extensive use of the technology. Moreover, three of Berkshire's largest holdings make significant use of AI, and only one would fit the formal definition of a "tech stock."
1. Apple
Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. Nonetheless, AI and ML play roles in enhancing virtually every current product and service offered by Apple. FaceID, voice recognition, and numerous apps are just some of the AI-driven features in its iPhone.
Additionally, the company invested heavily in AI and ML research. It funds Apple Scholars, university students who conduct AI research. Also, its AIML Residency Program works with experts across several disciplines. These industry leaders build new AI and ML-driven products and services. While the results of its programs are difficult to predict, they will likely enhance Apple's influence and leadership in the AI industry.
With the market's focus on AI increasing, Apple's stock is moving in the right direction. It has risen by more than 30% since the beginning of 2023.
The increase in the stock price raised its price-to-earnings (P/E) ratio to 28, making it an increasingly expensive company to buy. But as AI's influence over Apple's products and services grows, market-beating returns are probably still within reach for new investors.
2. Bank of America
Its name may condition investors to see Bank of America (NYSE: BAC) as a bank, but given its heavy investments in technology, it has arguably evolved into more of a fintech stock. Those tech investments came amid its emergence from the 2008-09 financial crisis, and among the largest banks, it has become a fintech leader. Global Finance named it the "Most Innovative Digital Bank" in 2022.
On the AI side, BofA describes Erica, its AI-driven assistant, as the engine that brings "personalized banking" to its clients. Erica delivers personalized insights and helps monitor accounts, identifying issues such as duplicate charges or changes in spending patterns.
Understandably, the liquidity issues that caused the collapses of SVB Financial's Silicon Valley Bank, Silvergate Capital's Silvergate Bank, and others have weighed on the banking sector. Despite BofA's stability, its stock price is down modestly since the beginning of the year. That price drop took its P/E ratio to 9, its lowest level since the beginning of the pandemic.
Even though BofA makes up 9% of Berkshire's portfolio, the recent sell-off could be good news for Buffett and other investors. Since the industry's recent troubles do not affect Bank of America directly, now might be an opportune time to buy shares.
3. Chevron
Chevron's (NYSE: CVX) growing AI capabilities are probably not prominent among the reasons why Buffett's team has continued to add to its large position in the energy giant. Nonetheless, Chevron accounts for 8% of the value in Berkshire's equity portfolio, and the technology will play at least an indirect role in boosting the value of the oil stock.
Today's energy industry relies heavily on technology for various business activities. One area where AI in particular benefits Chevron is data management. To that end, it partnered with Microsoft and UiPath to automate data extraction into back-end systems. Because this process is now being handled automatically, Chevron's business analysts can spend more time on tasks that add more value.
Additionally, Chevron applies AI to extract information from drilling reports. The technology can tell researchers how different types of rocks impact a hydrocarbon reservoir. These studies reduce the need to drill exploratory wells, reducing the environmental impact of Chevron's activities.
Chevron's stock price is down for 2023, and due to that decline, its P/E ratio of around 9 is in the neighborhood of its multiyear low. Still, the recent announcement by several members of OPEC+ (a group of nations allied with OPEC to cut production in order to boost oil prices) that they will cut crude oil output next month has brought investors back to oil stocks, indicating the stock might soon be heading higher.
10 stocks we like better than Apple
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*Stock Advisor returns as of March 8, 2023
SVB Financial provides credit and banking services to The Motley Fool. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Microsoft, SVB Financial, Snowflake, and UiPath. 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 Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. Despite the recent optimism and hype surrounding stocks associated with artificial intelligence (AI) and machine learning (ML), AI-focused investment strategies probably don't attract much interest from famed investor Warren Buffett -- at least, not directly. Nonetheless, Chevron accounts for 8% of the value in Berkshire's equity portfolio, and the technology will play at least an indirect role in boosting the value of the oil stock.
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Apple Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. However, many of the stocks Buffett already owns have made him and the Berkshire Hathaway team into AI investors by default, as many of his smaller investments -- stocks like Amazon, Activision Blizzard, and Snowflake -- make extensive use of the technology. See the 10 stocks *Stock Advisor returns as of March 8, 2023 SVB Financial provides credit and banking services to The Motley Fool.
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Apple Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. However, many of the stocks Buffett already owns have made him and the Berkshire Hathaway team into AI investors by default, as many of his smaller investments -- stocks like Amazon, Activision Blizzard, and Snowflake -- make extensive use of the technology. Bank of America Its name may condition investors to see Bank of America (NYSE: BAC) as a bank, but given its heavy investments in technology, it has arguably evolved into more of a fintech stock.
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Apple Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. Additionally, the company invested heavily in AI and ML research. Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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16465.0
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2023-04-05 00:00:00 UTC
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Why Apple Stock Was Down on Wednesday
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-was-down-on-wednesday
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) traded lower on Wednesday, slipping as much as 2.3%. When the market closed for the day, the stock was still down 1.1%
A broad cross section of stocks ended the day lower, which no doubt helped fuel Apple's decline. More pertinent to Apple investors, one analyst raised the specter of slowing iPhone sales in the face of tough macroeconomic conditions, while another was moderately more bullish.
So what
Jefferies analyst Kyle McNealy dug deep on global web-traffic patterns and concluded that iPhone sales "saw some deceleration" during the month of February. As a result, the firm now believes sales likely ended the quarter in-line with expectations when they were previously ahead.
More recent data suggests that average selling prices (ASPs) are higher than consensus estimates, according to the analyst, so Apple's revenue could still come in ahead of Wall Street's projections. The firm maintained its buy rating and $195 price target on the stock, which suggests potential gains for shareholders of 19% compared to Wednesday's closing price.
At the same time, Bank of America (BofA) raised its price target on Apple to $168 from $158 and maintained a neutral rating on the shares. This suggests the analyst was playing catch up since Apple shares ended Tuesday at $165.63 -- above his previous call.
After reading the tea leaves and checking sales channels, the firm believes the iPhones and services segments are "stable to better," though Mac and iPad sales have suffered. He believes the combination will likely keep gross margins stable, and this stability "modestly" increases his expectations for the full year.
Now what
There's no question that Apple's success or failure rests mostly on iPhone sales, which represented 56% of the company's revenue in its fiscal first quarter ending Dec. 31. High inflation and economic uncertainty will almost certainly weigh on Apple's performance -- at least in the near term.
Seasoned investors are keenly aware that "this too shall pass." By creating some of the most popular technology devices on the planet, it will certainly take more than a downturn to reverse Apple's long-term fortunes.
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 March 8, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple and Bank of America. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Apple (NASDAQ: AAPL) traded lower on Wednesday, slipping as much as 2.3%. More pertinent to Apple investors, one analyst raised the specter of slowing iPhone sales in the face of tough macroeconomic conditions, while another was moderately more bullish. So what Jefferies analyst Kyle McNealy dug deep on global web-traffic patterns and concluded that iPhone sales "saw some deceleration" during the month of February.
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What happened Shares of Apple (NASDAQ: AAPL) traded lower on Wednesday, slipping as much as 2.3%. As a result, the firm now believes sales likely ended the quarter in-line with expectations when they were previously ahead. The firm maintained its buy rating and $195 price target on the stock, which suggests potential gains for shareholders of 19% compared to Wednesday's closing price.
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What happened Shares of Apple (NASDAQ: AAPL) traded lower on Wednesday, slipping as much as 2.3%. When the market closed for the day, the stock was still down 1.1% A broad cross section of stocks ended the day lower, which no doubt helped fuel Apple's decline. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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What happened Shares of Apple (NASDAQ: AAPL) traded lower on Wednesday, slipping as much as 2.3%. As a result, the firm now believes sales likely ended the quarter in-line with expectations when they were previously ahead. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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16466.0
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2023-04-05 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $5,820.00K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%245820.00k
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nan
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nan
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On April 5, 2023 at 12:30:49 ET an unusually large $5,820.00K block of Call contracts in Apple (AAPL) was sold, with a strike price of $110.00 / share, expiring in 345 days (on March 15, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 9.81 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 4.22% Upside
As of March 30, 2023, the average one-year price target for Apple is $172.62. The forecasts range from a low of $119.18 to a high of $208.95. The average price target represents an increase of 4.22% from its latest reported closing price of $165.63.
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 6411 funds or institutions reporting positions in Apple. This is an increase of 212 owner(s) or 3.42% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%. Total shares owned by institutions increased in the last three months by 0.36% to 10,155,536K shares. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
What are Large Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% ownership of the company. In it's prior filing, the firm reported owning 894,802K shares, representing an increase of 0.04%. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 459,387K shares representing 2.90% ownership of the company. In it's prior filing, the firm reported owning 455,109K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AAPL by 12.36% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 345,686K shares representing 2.18% ownership of the company. In it's prior filing, the firm reported owning 342,454K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AAPL by 12.57% over the last quarter.
Geode Capital Management holds 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% ownership of the company. In it's prior filing, the firm reported owning 224,864K shares, representing an increase of 0.63%. The firm decreased its portfolio allocation in AAPL by 7.53% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On April 5, 2023 at 12:30:49 ET an unusually large $5,820.00K block of Call contracts in Apple (AAPL) was sold, with a strike price of $110.00 / share, expiring in 345 days (on March 15, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 9.81 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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On April 5, 2023 at 12:30:49 ET an unusually large $5,820.00K block of Call contracts in Apple (AAPL) was sold, with a strike price of $110.00 / share, expiring in 345 days (on March 15, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 9.81 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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On April 5, 2023 at 12:30:49 ET an unusually large $5,820.00K block of Call contracts in Apple (AAPL) was sold, with a strike price of $110.00 / share, expiring in 345 days (on March 15, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 9.81 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%. On April 5, 2023 at 12:30:49 ET an unusually large $5,820.00K block of Call contracts in Apple (AAPL) was sold, with a strike price of $110.00 / share, expiring in 345 days (on March 15, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 9.81 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options.
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16467.0
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2023-04-05 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
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nan
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nan
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On April 5, 2023, B of A Securities maintained coverage of Apple with a Neutral recommendation.
Analyst Price Forecast Suggests 4.22% Upside
As of March 30, 2023, the average one-year price target for Apple is $172.62. The forecasts range from a low of $119.18 to a high of $208.95. The average price target represents an increase of 4.22% from its latest reported closing price of $165.63.
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 are Other Shareholders Doing?
AABFX - Thrivent Balanced Income Plus Fund holds 20K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 27K shares, representing a decrease of 32.55%. The firm decreased its portfolio allocation in AAPL by 32.39% over the last quarter.
Man Group holds 4,365K shares representing 0.03% ownership of the company. In it's prior filing, the firm reported owning 3,447K shares, representing an increase of 21.03%. The firm decreased its portfolio allocation in AAPL by 8.04% over the last quarter.
ALLIANZ VARIABLE INSURANCE PRODUCTS TRUST - AZL Russell 1000 Growth Index Fund Class 2 holds 614K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 632K shares, representing a decrease of 2.92%. The firm decreased its portfolio allocation in AAPL by 8.38% over the last quarter.
AIM EQUITY FUNDS - Invesco Oppenheimer Main Street All Cap Fund Class R6 holds 390K shares representing 0.00% ownership of the company. No change in the last quarter.
BlueSky Wealth Advisors holds 22K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 23K shares, representing a decrease of 5.12%. The firm decreased its portfolio allocation in AAPL by 14.76% over the last quarter.
What is the Fund Sentiment?
There are 6411 funds or institutions reporting positions in Apple. This is an increase of 212 owner(s) or 3.42% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%. Total shares owned by institutions increased in the last three months by 0.36% to 10,155,536K shares. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
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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The firm decreased its portfolio allocation in AAPL by 32.39% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.04% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.38% over the last quarter.
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The firm decreased its portfolio allocation in AAPL by 32.39% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.04% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.38% over the last quarter.
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The firm decreased its portfolio allocation in AAPL by 32.39% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.04% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.38% over the last quarter.
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The firm decreased its portfolio allocation in AAPL by 32.39% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.04% over the last quarter. The firm decreased its portfolio allocation in AAPL by 8.38% over the last quarter.
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16468.0
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2023-04-05 00:00:00 UTC
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After Hours Most Active for Apr 5, 2023 : SWN, KDP, LI, KBWB, CCL, GENI, ADT, AAPL, AMZN, AMCR, HAYW, TMUS
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-5-2023-%3A-swn-kdp-li-kbwb-ccl-geni-adt-aapl-amzn-amcr-hayw
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -15.66 to 12,951.54. The total After hours volume is currently 74,544,214 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is unchanged at $5.12, with 3,817,795 shares traded. SWN's current last sale is 56.89% of the target price of $9.
Keurig Dr Pepper Inc. (KDP) is unchanged at $35.40, with 2,113,235 shares traded. KDP's current last sale is 88.5% of the target price of $40.
Li Auto Inc. (LI) is unchanged at $23.13, with 2,001,664 shares traded. LI's current last sale is 71.17% of the target price of $32.5.
Invesco KBW Bank ETF (KBWB) is -0.2187 at $40.55, with 1,344,716 shares traded. This represents a 4.19% increase from its 52 Week Low.
Carnival Corporation (CCL) is unchanged at $9.66, with 1,280,392 shares traded. CCL's current last sale is 96.6% of the target price of $10.
Genius Sports Limited (GENI) is unchanged at $4.40, with 1,264,715 shares traded. As reported by Zacks, the current mean recommendation for GENI is in the "buy range".
ADT Inc. (ADT) is unchanged at $6.91, with 1,247,329 shares traded. ADT's current last sale is 72.74% of the target price of $9.5.
Apple Inc. (AAPL) is -0.02 at $163.74, with 1,191,879 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.14 at $100.96, with 1,166,640 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Amcor plc (AMCR) is unchanged at $11.31, with 1,034,412 shares traded. AMCR's current last sale is 95.85% of the target price of $11.8.
Hayward Holdings, Inc. (HAYW) is unchanged at $11.16, with 1,002,861 shares traded. HAYW's current last sale is 91.1% of the target price of $12.25.
T-Mobile US, Inc. (TMUS) is unchanged at $149.12, with 823,481 shares traded. As reported by Zacks, the current mean recommendation for TMUS 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 -0.02 at $163.74, with 1,191,879 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Southwestern Energy Company (SWN) is unchanged at $5.12, with 3,817,795 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.02 at $163.74, with 1,191,879 shares traded. As reported by Zacks, the current mean recommendation for GENI is in the "buy range".
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Apple Inc. (AAPL) is -0.02 at $163.74, with 1,191,879 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Li Auto Inc. (LI) is unchanged at $23.13, with 2,001,664 shares traded.
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Apple Inc. (AAPL) is -0.02 at $163.74, with 1,191,879 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -15.66 to 12,951.54.
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16469.0
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2023-04-05 00:00:00 UTC
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Why Universal Display Stock Gained 14% Last Month
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AAPL
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https://www.nasdaq.com/articles/why-universal-display-stock-gained-14-last-month
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nan
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nan
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What happened
Shares of Universal Display (NASDAQ: OLED) rose 14.2% in March, according to data from S&P Global Market Intelligence. The technology developer behind the organic light-emitting diode (OLED) screen you probably have on your phone nowadays didn't have much news of its own to report last month, but the stock was ready to rise on the slightest hint of good news from the mass-market smartphone and high-end TV-set markets.
So what
Entering March, the stock price had drifted 12.3% lower in 52 weeks. The shares weren't exactly bargain priced, trading at 10 times sales and 31 times adjusted earnings.
However, every valuation ratio was dipping deeper than the stock price since Universal Display's sales and profits have been trending up over the last year. The company's financial performance has been stellar in recent years, despite last year's downturn in the all-important target markets of smartphones and OLED-based TV sets.
OLED revenue (TTM) data by YCharts. TTM = trailing 12 months.
So the stock was looking for any excuse to release more of the market pressure after rising by 25.7% across January and February. As luck would have it, a couple of Universal Display's largest customers had some big news up their sleeves, related to OLED screens.
First, the rumor mill churned out some OLED-based Apple (NASDAQ: AAPL) reports. The low-end iPhone SE 3 currently comes with a high-definition LCD screen, but Cupertino has reportedly ordered OLED screens from a Chinese supplier for the next iteration of this product line. At the other end of the product-pricing spectrum, Apple is said to have its first OLED iPad in the works with a planned price tag of $1,500 and up. For the record, the priciest iPad Pro base model today costs $1,099.
On the TV side of the street, the only serious provider of living-room-scale OLED screens to date has been LG Display. So whether your high-end smart TV comes from LG, Sony, TCL, or Vizio, they all get their OLED screens from LG Display's panel-making factories. But that's about to change, as Samsung (OTC: SSNL.F) threw its hat into the TV-sized OLED manufacturing ring in mid-March. The larger Korean tech titan will offer a mid-priced range of OLED sets and also start reselling those screens to other TV builders. That's a big step forward in a key market.
Now what
Don't forget that Universal Display's patent royalties and OLED material sales are based on the total area of screens being sold, so one 55-inch TV screen is worth as much to this company as 100 5.5-inch smartphone screens. As a result, the unit volumes might be lower in this market than in the smartphone sector, but the company should enjoy a game-changing surge in sales and profits as OLED screens work their way toward affordable consumer prices and mass-market appeal.
Universal Display has been one of my favorite high-growth tech stocks for years, and nothing has changed in that regard. The stock isn't cheap, but the company's long-term business prospects are downright thrilling.
10 stocks we like better than Universal Display
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 Universal Display 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 March 8, 2023
Anders Bylund has positions in Universal Display. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Universal Display. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First, the rumor mill churned out some OLED-based Apple (NASDAQ: AAPL) reports. As luck would have it, a couple of Universal Display's largest customers had some big news up their sleeves, related to OLED screens. The larger Korean tech titan will offer a mid-priced range of OLED sets and also start reselling those screens to other TV builders.
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First, the rumor mill churned out some OLED-based Apple (NASDAQ: AAPL) reports. What happened Shares of Universal Display (NASDAQ: OLED) rose 14.2% in March, according to data from S&P Global Market Intelligence. However, every valuation ratio was dipping deeper than the stock price since Universal Display's sales and profits have been trending up over the last year.
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First, the rumor mill churned out some OLED-based Apple (NASDAQ: AAPL) reports. The technology developer behind the organic light-emitting diode (OLED) screen you probably have on your phone nowadays didn't have much news of its own to report last month, but the stock was ready to rise on the slightest hint of good news from the mass-market smartphone and high-end TV-set markets. Now what Don't forget that Universal Display's patent royalties and OLED material sales are based on the total area of screens being sold, so one 55-inch TV screen is worth as much to this company as 100 5.5-inch smartphone screens.
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First, the rumor mill churned out some OLED-based Apple (NASDAQ: AAPL) reports. Now what Don't forget that Universal Display's patent royalties and OLED material sales are based on the total area of screens being sold, so one 55-inch TV screen is worth as much to this company as 100 5.5-inch smartphone screens. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Anders Bylund has positions in Universal Display.
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16470.0
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2023-04-05 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $13,154.10K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%2413154.10k
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nan
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nan
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On April 5, 2023 at 12:57:26 ET an unusually large $13,154.10K block of Call contracts in Apple (AAPL) was bought, with a strike price of $120.00 / share, expiring in 653 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 22.55 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 4.22% Upside
As of March 30, 2023, the average one-year price target for Apple is $172.62. The forecasts range from a low of $119.18 to a high of $208.95. The average price target represents an increase of 4.22% from its latest reported closing price of $165.63.
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 6411 funds or institutions reporting positions in Apple. This is an increase of 212 owner(s) or 3.42% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%. Total shares owned by institutions increased in the last three months by 0.36% to 10,155,536K shares. The put/call ratio of AAPL is 1.01, indicating a bearish outlook.
What are Large Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% ownership of the company. In it's prior filing, the firm reported owning 894,802K shares, representing an increase of 0.04%. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 459,387K shares representing 2.90% ownership of the company. In it's prior filing, the firm reported owning 455,109K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AAPL by 12.36% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 345,686K shares representing 2.18% ownership of the company. In it's prior filing, the firm reported owning 342,454K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AAPL by 12.57% over the last quarter.
Geode Capital Management holds 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% ownership of the company. In it's prior filing, the firm reported owning 224,864K shares, representing an increase of 0.63%. The firm decreased its portfolio allocation in AAPL by 7.53% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On April 5, 2023 at 12:57:26 ET an unusually large $13,154.10K block of Call contracts in Apple (AAPL) was bought, with a strike price of $120.00 / share, expiring in 653 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 22.55 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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On April 5, 2023 at 12:57:26 ET an unusually large $13,154.10K block of Call contracts in Apple (AAPL) was bought, with a strike price of $120.00 / share, expiring in 653 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 22.55 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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On April 5, 2023 at 12:57:26 ET an unusually large $13,154.10K block of Call contracts in Apple (AAPL) was bought, with a strike price of $120.00 / share, expiring in 653 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 22.55 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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On April 5, 2023 at 12:57:26 ET an unusually large $13,154.10K block of Call contracts in Apple (AAPL) was bought, with a strike price of $120.00 / share, expiring in 653 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 22.55 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.35%.
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16471.0
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2023-04-05 00:00:00 UTC
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US STOCKS-S&P 500 ends lower as recession fears take center stage
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-as-recession-fears-take-center-stage
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nan
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nan
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By Noel Randewich and Ankika Biswas
April 5 (Reuters) - The S&P 500 and the Nasdaq ended lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.
Nvidia Corp NVDA.O was among the stocks weighing most on the S&P 500 after Alphabet Inc's GOOGL.O Google unit said the supercomputers it uses to train its artificial intelligence models were faster and more power-efficient than comparable components made by the chipmaker.
Tesla Inc TSLA.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O all declined, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks.
Caterpillar CAT.N, viewed as a bellwether for the industrial sector, dropped for a second day as investors fretted about a potential economic downturn.
According to preliminary data, the S&P 500 .SPX lost 10.40 points, or 0.25%, to end at 4,090.20 points, while the Nasdaq Composite .IXIC lost 129.46 points, or 1.07%, to 11,996.86. The Dow Jones Industrial Average .DJI rose 81.29 points, or 0.24%, to 33,483.67.
Driving the recession fears, the ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March. That followed Tuesday's weak job openings data.
As well, the Institute for Supply Management's survey showed the services sector slowed more than expected last month on cooling demand, while a measure of prices paid by services businesses fell to a near three-year low.
Earlier this week data showed falling factory orders and soft manufacturing activity.
Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
"We may have transitioned from the notion that 'bad news is good news' to 'bad new is bad news'," said Jay Hatfield, chief executive and portfolio manager at InfraCap in New York. "Fear about a recession is the dominant theme."
Reflecting worries about the economy and recent turmoil in the banking sector, interest rate futures imply 61% odds that the Fed will cut interest rates from current levels by the end of its July meeting, according to CME Group's Fedwatch tool.
Among rising stocks within the Dow Jones Industrial Average, Johnson & Johnson JNJ.N gained after its $8.9 billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue.
Artificial intelligence C3.ai Inc AI.Ntumbled for a second day after a short seller alleged accounting issues. The AI company denied the allegations in an emailed response to Reuters.
FedEx Corp FDX.Nrose as the freight bellwether firm said it will fold its operating divisions into one organization as it steps up efforts to cut costs and increase efficiency.
Traders bet on Fed rate cut by July meeting Traders bet on Fed rate cut by July meetinghttps://tmsnrt.rs/3z2AqBk
S&P 500's busiest tradeshttps://tmsnrt.rs/3zA5eK7
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Nivedita Bhattacharjee, Shounak Dasgupta and Deepa Babington)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tesla Inc TSLA.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O all declined, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 and the Nasdaq ended lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Nvidia Corp NVDA.O was among the stocks weighing most on the S&P 500 after Alphabet Inc's GOOGL.O Google unit said the supercomputers it uses to train its artificial intelligence models were faster and more power-efficient than comparable components made by the chipmaker.
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Tesla Inc TSLA.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O all declined, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation. Among rising stocks within the Dow Jones Industrial Average, Johnson & Johnson JNJ.N gained after its $8.9 billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue.
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Tesla Inc TSLA.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O all declined, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 and the Nasdaq ended lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
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Tesla Inc TSLA.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O all declined, pulling down the Nasdaq and reversing gains in some of Wall Street's most valuable companies in recent weeks. The Dow Jones Industrial Average .DJI rose 81.29 points, or 0.24%, to 33,483.67. Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
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16472.0
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2023-04-05 00:00:00 UTC
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Play AI’s “iPhone Moment” in Cloud Computing ETF WCLD
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AAPL
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https://www.nasdaq.com/articles/play-ais-iphone-moment-in-cloud-computing-etf-wcld
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nan
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nan
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Believe it or not, there was a world before the smart phone, and indeed, before the iPhone. Apple (AAPL) profoundly changed our daily lives with its pocket-sized window into the internet, and AI has the potential for its own “iPhone moment.” ChatGPT and all of the other machine learning AI assistants it has inspired are just the start, with tech firms that are poised to benefit available in cloud computing ETFs like the WisdomTree Cloud Computing Fund (WCLD).
Cloud computing companies were already cooking up their own “Apple-like” cloud ecosystems of networked services before AI entered the public eye so dramatically. The FAANG companies each have the capacity and the vision to not only connect their services with the cloud, but use the cloud and the firms that equip and empower cloud software to train AI and deliver the value of AI software to its networked programs.
Meta (META), for example, has indicated that AI is its biggest investment category in research and development (R&D), according to research from WisdomTree Investments. Alphabet (GOOGL) is also planning to reveal how much it's spending on AI in its Q1 2023 earnings announcement. The products of those investments, including but not limited to generative chatbots like ChatGPT, will not only engage in machine learning on the cloud, but use the processing power of the cloud to reach new heights.
See more: "This AI Value ETF Is Signaling a Buy"
With billions and billions of dollars of value coming from the so-called “app economy,” AI could be ready for an iPhone moment, thanks to ChatGPT creating an “AI economy,” and the right cloud computing ETF could help take advantage. WCLD could be one such strategy to watch, charging 45 basis points (bps) to track the BVP Nasdaq Emerging Cloud Index.
WCLD hit its three-year milestone as an ETF this past September, investing in cloud computing firm stocks that are equally weighted within its index. Firms included in that index have to meet certain standards, with a revenue growth rate of at least 15% for each of the last two full fiscal years for new constituents or a revenue growth rate of at least 7% in at least one of the last two fiscal years for existing constituents. Holdings also have to meet minimum liquidity requirements.
WCLD has outperformed its rival cloud computing ETFs at points YTD, and as of April 5th, it was neck-and-neck with some of its rivals. For those investors and advisors looking for a cloud computing ETF to take advantage of AI and its possible “iPhone moment,” WCLD could be an appealing option to consider given its approach and manageable fee in the weeks and months ahead.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) profoundly changed our daily lives with its pocket-sized window into the internet, and AI has the potential for its own “iPhone moment.” ChatGPT and all of the other machine learning AI assistants it has inspired are just the start, with tech firms that are poised to benefit available in cloud computing ETFs like the WisdomTree Cloud Computing Fund (WCLD). WCLD could be one such strategy to watch, charging 45 basis points (bps) to track the BVP Nasdaq Emerging Cloud Index. WCLD hit its three-year milestone as an ETF this past September, investing in cloud computing firm stocks that are equally weighted within its index.
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Apple (AAPL) profoundly changed our daily lives with its pocket-sized window into the internet, and AI has the potential for its own “iPhone moment.” ChatGPT and all of the other machine learning AI assistants it has inspired are just the start, with tech firms that are poised to benefit available in cloud computing ETFs like the WisdomTree Cloud Computing Fund (WCLD). See more: "This AI Value ETF Is Signaling a Buy" With billions and billions of dollars of value coming from the so-called “app economy,” AI could be ready for an iPhone moment, thanks to ChatGPT creating an “AI economy,” and the right cloud computing ETF could help take advantage. For those investors and advisors looking for a cloud computing ETF to take advantage of AI and its possible “iPhone moment,” WCLD could be an appealing option to consider given its approach and manageable fee in the weeks and months ahead.
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Apple (AAPL) profoundly changed our daily lives with its pocket-sized window into the internet, and AI has the potential for its own “iPhone moment.” ChatGPT and all of the other machine learning AI assistants it has inspired are just the start, with tech firms that are poised to benefit available in cloud computing ETFs like the WisdomTree Cloud Computing Fund (WCLD). The FAANG companies each have the capacity and the vision to not only connect their services with the cloud, but use the cloud and the firms that equip and empower cloud software to train AI and deliver the value of AI software to its networked programs. See more: "This AI Value ETF Is Signaling a Buy" With billions and billions of dollars of value coming from the so-called “app economy,” AI could be ready for an iPhone moment, thanks to ChatGPT creating an “AI economy,” and the right cloud computing ETF could help take advantage.
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Apple (AAPL) profoundly changed our daily lives with its pocket-sized window into the internet, and AI has the potential for its own “iPhone moment.” ChatGPT and all of the other machine learning AI assistants it has inspired are just the start, with tech firms that are poised to benefit available in cloud computing ETFs like the WisdomTree Cloud Computing Fund (WCLD). Believe it or not, there was a world before the smart phone, and indeed, before the iPhone. See more: "This AI Value ETF Is Signaling a Buy" With billions and billions of dollars of value coming from the so-called “app economy,” AI could be ready for an iPhone moment, thanks to ChatGPT creating an “AI economy,” and the right cloud computing ETF could help take advantage.
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16473.0
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2023-04-05 00:00:00 UTC
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Regional Banks vs. Tech: What Lies Ahead?
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AAPL
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https://www.nasdaq.com/articles/regional-banks-vs.-tech%3A-what-lies-ahead
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nan
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nan
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Tech’s Strong 2023
I wrote an article titled “5 Reasons to be Long Tech”, in mid-March. Twenty days later, many of the predictions came true. Mega-cap tech stocks have shined, while small caps have lagged. The reasons presented within the article included:
Positive technical setups and price action:At the time of the writing, the Nasdaq 100 Index was pulling back to its 50-day moving average for the first time since breaking out. Also, the 50-day moving average had just crossed above the 200-day moving average, forming a bullish “golden cross”.
Image Source: Zacks Investment Research
Fed Pivot Potential: While the Fed has not done a complete 360, expectations for the remainder of the year point to a slowdown in rate hikes or a pause.
Money Flow out of Small Caps: Regional banks have acted as the proverbial “pebble in the shoe” for the general market. However, money has flowed out of small-caps and into large-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL).
_______________________________________________________________
What now?
2023’s market is one of the most bifurcated markets in recent memory. The Russell 2000 Small Cap Index ETF (IWM) remains stuck below its 200-day moving average and continues to look vulnerable. Meanwhile, the Nasdaq 100 ETF (QQQ) is coming off a scorching hot 20% first quarter.
Regional Banks are Vulnerable
As long as regional banks have held steady, outside sectors have been able to gain ground. However, any time they break down further, they tend to drag down the entire equities market. The SPDR Regional Bank ETF (KRE) is the most popular proxy for smaller banking stocks in trouble. If you consider KRE’s technical picture, another leg down may be in the works. First, the index is shows a ton of relative weakness – KRE was down 29% in March, while QQQ was up 10%. Second, it continues to lag and is breaking down from a classic bear flag pattern.
Image Source: Zacks Investment Research
Looking deeper, individual banking stocks are still showing concerning price action despite insiders doing their best to defend the stocks. For example, banking and brokerage firm Charles Schwab (SCHW) saw a temporary boost when CEO Walter Bettinger decided to showed that he has skin in the game. Bettinger purchased 50,000 shares for nearly $3 million. Despite the vote of confidence by the CEO, shares are down 6 weeks in a row and look poised to retest the panic lows.
Metropolitan Commercial Bank (MCB) is in a similar situation to Schwab. The stock split wide open a few weeks ago. Then, insiders tried to defend the stock, but it continues to roll over.
Image Source: Zacks Investment Research
The strongest banks in the market currently are the larger, well-capitalized banks such as JP Morgan (JPM), UBS (UBS), and HSBC (HSBC). Based on the price action in regional banks, it would not be a surprise if more banks were to go bankrupt or get purchased for pennies on the dollar like Credit Suisse (CS).
Tech Deserves a Rest
As I mentioned earlier, tech has brushed off the current banking crisis since regional banks have stabilized. That said, another leg lower in regional banks may drag down Nasdaq stocks too. Beyond regional bank weakness, leading stocks such as Nvidia (NVDA) are becoming extended from a technical basis. Earlier this week, NVDA’s relative strength index (RSI) reading flashed the most overbought levels in more than a year.
Image Source: Zacks Investment Research
Bottom Line
As legendary trader Jesse Livermore once warned, “There’s a time to go long, a time to go short, and a time to go fishing.” For traders, being patient and picking spots is a superpower. With tech stocks extended and regional banks breaking down, now may be an excellent time to build a watch list and wait for “your pitch”. While the market may not need to pullback, a reset or a consolidation would be a healthy development and would provide more attractive reward-to-risk zones.
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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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Credit Suisse Group (CS) : Free Stock Analysis Report
UBS Group AG (UBS) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, money has flowed out of small-caps and into large-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Credit Suisse Group (CS) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports HSBC Holdings plc (HSBC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, banking and brokerage firm Charles Schwab (SCHW) saw a temporary boost when CEO Walter Bettinger decided to showed that he has skin in the game.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Credit Suisse Group (CS) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports HSBC Holdings plc (HSBC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report To read this article on Zacks.com click here. However, money has flowed out of small-caps and into large-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL). Image Source: Zacks Investment Research Fed Pivot Potential: While the Fed has not done a complete 360, expectations for the remainder of the year point to a slowdown in rate hikes or a pause.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Credit Suisse Group (CS) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports HSBC Holdings plc (HSBC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report To read this article on Zacks.com click here. However, money has flowed out of small-caps and into large-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL). Image Source: Zacks Investment Research Looking deeper, individual banking stocks are still showing concerning price action despite insiders doing their best to defend the stocks.
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However, money has flowed out of small-caps and into large-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Credit Suisse Group (CS) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports HSBC Holdings plc (HSBC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Looking deeper, individual banking stocks are still showing concerning price action despite insiders doing their best to defend the stocks.
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16474.0
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2023-04-05 00:00:00 UTC
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US STOCKS-S&P 500 drops as recession fears take center stage
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-drops-as-recession-fears-take-center-stage
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nan
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nan
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By Noel Randewich and Ankika Biswas
April 5 (Reuters) - The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.
Nvidia Corp > dropped 2.8% and was among the stocks weighing most on the S&P 500 after Alphabet Inc's GOOGL.O Google unit said the supercomputers it uses to train its artificial intelligence models were faster and more power-efficient than comparable systems made by the chipmaker.
Tesla Inc TSLA.O fell 3.5% while Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O each lost more than 1%.
Caterpillar CAT.N, viewed as a bellwether for the industrial sector, dropped more than 2%, bringing its loss over the past two days to about 7% as investors fretted about a potential economic downturn.
Driving the recession fears, the ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March. That followed Tuesday's weak job openings data.
As well, the Institute for Supply Management's survey showed the services sector slowed more than expected last month on cooling demand, while a measure of prices paid by services businesses fell to a near three-year low.
Earlier this week data showed falling factory orders and soft manufacturing activity.
Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
"We may have transitioned from the notion that 'bad news is good news' to 'bad new is bad news'," said Jay Hatfield, chief executive and portfolio manager at InfraCap in New York. "Fear about a recession is the dominant theme."
Reflecting worries about the economy and recent turmoil in the banking sector, interest rate futures imply 61% odds that the Fed will cut interest rates from current levels by the end of its July meeting, according to CME Group's Fedwatch tool.
Helping keep the Dow Jones Industrial Average in positive territory, Johnson & Johnson JNJ.N gained 3.8% after its $8.9-billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue.
The S&P 500 was down 0.52% at 4,079.37 points.
The Nasdaq declined 1.36% to 11,961.11 points, while the Dow Jones Industrial Average was up 0.04% at 33,415.50 points.
Of the 11 S&P 500 sector indexes, six declined, led lower by consumer discretionary .SPLRCD, down 1.93%, followed by a 1.65% loss in information technology .SPLRCT.
Artificial intelligence C3.ai Inc AI.N dropped 15%, hit for a second day after a short seller alleged accounting issues. The AI company denied the allegations in an emailed response to Reuters.
FedEx Corp FDX.N rose 1.1% as the freight bellwether firm said it will fold its operating divisions into one organization as it steps up efforts to cut costs and increase efficiency.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.5-to-one ratio.
The S&P 500 posted eight new highs and two new lows; the Nasdaq recorded 25 new highs and 218 new lows.
Traders bet on Fed rate cut by July meeting Traders bet on Fed rate cut by July meetinghttps://tmsnrt.rs/3z2AqBk
S&P 500's busiest tradeshttps://tmsnrt.rs/3zA5eK7
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Nivedita Bhattacharjee, Shounak Dasgupta and Deepa Babington)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tesla Inc TSLA.O fell 3.5% while Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O each lost more than 1%. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Nvidia Corp > dropped 2.8% and was among the stocks weighing most on the S&P 500 after Alphabet Inc's GOOGL.O Google unit said the supercomputers it uses to train its artificial intelligence models were faster and more power-efficient than comparable systems made by the chipmaker.
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Tesla Inc TSLA.O fell 3.5% while Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O each lost more than 1%. Helping keep the Dow Jones Industrial Average in positive territory, Johnson & Johnson JNJ.N gained 3.8% after its $8.9-billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue. The Nasdaq declined 1.36% to 11,961.11 points, while the Dow Jones Industrial Average was up 0.04% at 33,415.50 points.
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Tesla Inc TSLA.O fell 3.5% while Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O each lost more than 1%. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. Wall Street's recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed's interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
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Tesla Inc TSLA.O fell 3.5% while Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O each lost more than 1%. By Noel Randewich and Ankika Biswas April 5 (Reuters) - The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession. The Nasdaq declined 1.36% to 11,961.11 points, while the Dow Jones Industrial Average was up 0.04% at 33,415.50 points.
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16475.0
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2023-04-05 00:00:00 UTC
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The Surprising Reason the Dow Jones Industrials Rose in the First Quarter of 2023
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AAPL
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https://www.nasdaq.com/articles/the-surprising-reason-the-dow-jones-industrials-rose-in-the-first-quarter-of-2023
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Investors had hoped that the stock market would find its footing in 2023 after a tough showing last year. So far, the market has done a reasonably good job of delivering. With the first quarter having come to an end last Friday, major market benchmarks performed well, with the S&P 500 (SNPINDEX: ^GSPC) seeing gains of 7% in the first three months of the year.
The Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't held up as well, managing only to post a gain of less than 1% for the quarter. Yet when you look at the stocks that prevented the Dow from losing ground, you might be surprised to see that they all have one thing in common -- and that thing happens to be exactly what many investors thought would hold them back in 2023.
The Dow's top stocks so far in 2023
The one surprising factor in the Dow's rise is that all four of the average's top-performing stocks are in the technology sector. Salesforce.com (NYSE: CRM), Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) were the only Dow components to post gains of 20% or more in the first three months of the year.
^DJI data by YCharts
The gains for all four of these stocks came amid signs that their respective businesses were resisting macroeconomic pressures better than many had expected. At the beginning of March, Salesforce released financial results that showed that it had seen revenue climb 18% in fiscal 2023, with adjusted earnings rising by 10% to $5.24 per share. Moreover, the customer relationship management software specialist projected that it would see accelerating profit growth in fiscal 2024, with guidance for $7.12 to $7.14 per share in earnings on an adjusted basis.
For Apple, sizable gains came late in the period, as investors started to feel more confident about the company's prospects. Worries about the ability to overcome supply chain challenges kept the stock in check for a while, but stock analysts increasingly pointed to signs that demand for its core iPhone line of smartphones remained solid. Moreover, Apple has worked hard to keep costs reined in, and plans to join the virtual revolution with a mixed-reality headset have received a favorable reception.
Perhaps the most surprising winner in this set of four was Intel, because the chipmaker has had a lot of trouble executing on its business opportunities. Yet there was new enthusiasm about the potential for Intel to provide vital semiconductors to innovative tech companies seeking to pursue artificial intelligence initiatives. Moreover, with data centers remaining a key component of digital transformation efforts for countless businesses worldwide, longer-term tailwinds for Intel remain in place. Now, Intel just has to take advantage of them.
Lastly, Microsoft generated plenty of optimism on the AI front as well, with its key partnership with ChatGPT pioneer OpenAI producing meaningful potential. Combined with its core Office software and Azure cloud infrastructure businesses, Microsoft has put itself in position to capture plenty of growth from some of the most cutting-edge ideas in technology, and it's showing signs of pulling away from some of its oldest rivals in the software arena.
Keep watching tech
Many market watchers were surprised to see tech climb even as interest rates continued to move higher. Yet with stress in the financial system, investors saw some of these blue chip tech stocks as safe havens, with reliable business performance plus the possibility of future growth. In a tough market environment, such sentiment could help push the Dow still higher in the second quarter of 2023 and beyond.
10 stocks we like better than Salesforce
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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Dan Caplinger has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Microsoft, and Salesforce. 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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Salesforce.com (NYSE: CRM), Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) were the only Dow components to post gains of 20% or more in the first three months of the year. Moreover, the customer relationship management software specialist projected that it would see accelerating profit growth in fiscal 2024, with guidance for $7.12 to $7.14 per share in earnings on an adjusted basis. Lastly, Microsoft generated plenty of optimism on the AI front as well, with its key partnership with ChatGPT pioneer OpenAI producing meaningful potential.
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Salesforce.com (NYSE: CRM), Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) were the only Dow components to post gains of 20% or more in the first three months of the year. The Motley Fool has positions in and recommends Apple, Microsoft, and Salesforce. 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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Salesforce.com (NYSE: CRM), Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) were the only Dow components to post gains of 20% or more in the first three months of the year. The Dow's top stocks so far in 2023 The one surprising factor in the Dow's rise is that all four of the average's top-performing stocks are in the technology sector. 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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Salesforce.com (NYSE: CRM), Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) were the only Dow components to post gains of 20% or more in the first three months of the year. In a tough market environment, such sentiment could help push the Dow still higher in the second quarter of 2023 and beyond. 10 stocks we like better than Salesforce When our analyst team has a stock tip, it can pay to listen.
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16476.0
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2023-04-05 00:00:00 UTC
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Apple, Intel, and Nvidia Stock: Breaking Down the Latest Semiconductor Updates
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AAPL
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https://www.nasdaq.com/articles/apple-intel-and-nvidia-stock%3A-breaking-down-the-latest-semiconductor-updates
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nan
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Discover the latest updates in the semiconductor sector, including Apple's (NASDAQ: AAPL) shift in its M2 chip production, Intel's (NASDAQ: INTC) future consumer GPU plans, and Nvidia's (NASDAQ: NVDA) upcoming 4070 GPU. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of April 4, 2023. The video was published on April 4, 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.*
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*Stock Advisor returns as of March 8, 2023
Jose Najarro has positions in Nvidia. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Discover the latest updates in the semiconductor sector, including Apple's (NASDAQ: AAPL) shift in its M2 chip production, Intel's (NASDAQ: INTC) future consumer GPU plans, and Nvidia's (NASDAQ: NVDA) upcoming 4070 GPU. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Discover the latest updates in the semiconductor sector, including Apple's (NASDAQ: AAPL) shift in its M2 chip production, Intel's (NASDAQ: INTC) future consumer GPU plans, and Nvidia's (NASDAQ: NVDA) upcoming 4070 GPU. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Nvidia.
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Discover the latest updates in the semiconductor sector, including Apple's (NASDAQ: AAPL) shift in its M2 chip production, Intel's (NASDAQ: INTC) future consumer GPU plans, and Nvidia's (NASDAQ: NVDA) upcoming 4070 GPU. 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 March 8, 2023 Jose Najarro has positions in Nvidia.
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Discover the latest updates in the semiconductor sector, including Apple's (NASDAQ: AAPL) shift in its M2 chip production, Intel's (NASDAQ: INTC) future consumer GPU plans, and Nvidia's (NASDAQ: NVDA) upcoming 4070 GPU. Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Jose Najarro has positions in Nvidia.
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16477.0
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2023-04-05 00:00:00 UTC
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Technology Sector Update for 04/05/2023: AAPL, NNDM, SSYS, PLUS, WATT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-04-05-2023%3A-aapl-nndm-ssys-plus-watt
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Tech stocks fell late Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index dropping 1.8%.
In company news, Apple (AAPL) said that over 250 suppliers in 28 countries have committed to using renewable energy to make its products by 2030. Separately, Apple said it plans to open its first Indian retail store in Mumbai. The tech giant's shares were declining 1.1%.
Nano Dimension (NNDM) said it is preparing to acquire Stratasys (SYSS) and is ready to make a special tender offer that will leave it holding at least 51% ownership in Stratasys. Nano Dimension shares were down over 10% and Stratasys was flat.
Energous (WATT) said that its 1W PowerBridge was approved in Japan for unlimited power distance transmission. The shares were up 0.1%.
ePlus (PLUS) rose 1.7% after saying its board has authorized a stock repurchase program for up to 1 million shares over a 12-month period beginning on May 28.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) said that over 250 suppliers in 28 countries have committed to using renewable energy to make its products by 2030. Tech stocks fell late Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index dropping 1.8%. ePlus (PLUS) rose 1.7% after saying its board has authorized a stock repurchase program for up to 1 million shares over a 12-month period beginning on May 28.
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In company news, Apple (AAPL) said that over 250 suppliers in 28 countries have committed to using renewable energy to make its products by 2030. Tech stocks fell late Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index dropping 1.8%. Nano Dimension (NNDM) said it is preparing to acquire Stratasys (SYSS) and is ready to make a special tender offer that will leave it holding at least 51% ownership in Stratasys.
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In company news, Apple (AAPL) said that over 250 suppliers in 28 countries have committed to using renewable energy to make its products by 2030. Nano Dimension (NNDM) said it is preparing to acquire Stratasys (SYSS) and is ready to make a special tender offer that will leave it holding at least 51% ownership in Stratasys. Nano Dimension shares were down over 10% and Stratasys was flat.
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In company news, Apple (AAPL) said that over 250 suppliers in 28 countries have committed to using renewable energy to make its products by 2030. Tech stocks fell late Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index dropping 1.8%. Nano Dimension shares were down over 10% and Stratasys was flat.
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16478.0
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2023-04-05 00:00:00 UTC
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Is Most-Watched Stock Apple Inc. (AAPL) Worth Betting on Now?
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AAPL
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https://www.nasdaq.com/articles/is-most-watched-stock-apple-inc.-aapl-worth-betting-on-now-3
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of iPhones, iPads and other products have returned +9.3% over the past month versus the Zacks S&P 500 composite's +1.5% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 9.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.44 per share, indicating a change of -5.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.04 points to a change of -1.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.68 indicates a change of +10.5% from what Apple is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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.
In the case of Apple, the consensus sales estimate of $93.39 billion for the current quarter points to a year-over-year change of -4%. The $390.02 billion and $416.7 billion estimates for the current and next fiscal years indicate changes of -1.1% and +6.8%, 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.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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 been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. 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 been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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16479.0
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2023-04-05 00:00:00 UTC
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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-morningstar-u.s.-market-factor-tilt-etf-tilt-a-strong-etf-right-now-6
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nan
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Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund launched on 09/16/2011.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Flexshares, and has been able to amass over $1.42 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. Before fees and expenses, TILT seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
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.
Annual operating expenses for TILT are 0.25%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.53%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 21.10% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 3.74% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN).
The top 10 holdings account for about 9.85% of total assets under management.
Performance and Risk
Year-to-date, the FlexShares Morningstar U.S. Market Factor Tilt ETF has added roughly 5.11% so far, and is down about -9.93% over the last 12 months (as of 04/05/2023). TILT has traded between $138.28 and $172.19 in this past 52-week period.
TILT has a beta of 1.08 and standard deviation of 21.08% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 2134 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt 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 Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $40.99 billion in assets, Vanguard Total Stock Market ETF has $280.58 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
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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FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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 Common Stock Usd 0.00001 (AAPL) accounts for about 3.74% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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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Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 3.74% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 3.74% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 3.74% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund launched on 09/16/2011.
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16480.0
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2023-04-05 00:00:00 UTC
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SGH Bottomed, But Can It Reverse And Move Higher?
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AAPL
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https://www.nasdaq.com/articles/sgh-bottomed-but-can-it-reverse-and-move-higher
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nan
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nan
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SGH (NASDAQ: SGH) shares hit bottom late last year, and this is a chance it will reverse course and begin to rally again. The question is when the rally will happen; the answer may be later this year. The Q2 results were mixed but prove the company’s resilience in uncertain operating conditions. While 2 segments were weak, the 3rd, the company’s growth driver, outperformed expectations and offset the weakness to a degree. The takeaway is that SGH is in a good position relative to its market, its diversified portfolio will help sustain it while the microchip, manufacturing and economy at large reset themselves, and there is a significant opportunity for capital gain.
SGH Is A Smart Investment
The stock trades at only 7X its earnings, about half what you pay for other microchips/component-oriented companies. Skyworks (NASDAQ: SWKS), a supplier to Apple (NASDAQ: AAPL), trades at 12X its earnings, while Alpha And Omega Semiconductor (NASDAQ: AOSL) and Magnachip (NASDAQ: MX) trade near 14X earnings. SGH has other appeals; the Intelligent Platform Solutions segment, the company’s growth driver, has applications in AI, machine learning, analytics, networking and specialty lighting, which are all hot markets today.
We exited Q2 with a strong balance sheet, including $376 million in cash and cash equivalents,” commented CEO Mark Adams. “We remain disciplined in managing our expenses given the continued challenging economic environment, while maintaining strategic investments to capitalize on the tailwinds of AI, machine learning, data analytics, networking and specialty lighting, which we believe will drive long-term growth for SGH and create value for our shareholders.”
The Q2 results are mixed, and the guidance is tepid, but the report has some signs of strength. The revenue fell 4.5% YOY to $429 million and missed the Marketbeat.com consensus estimate, but the miss is slim, and the margin news is good. The legacy Memory and newer LED Solutions segments declined YOY, but ISP grew by 5.4% to 51.8% of the business. GAAP gross margin improved by 60 basis points while the adjusted widened by 290. However, the operating margins declined due to investment in the business and 1-offs related to share-based compensation, restructuring and acquisitions. At least 2 of those reasons are suitable for the company's long-term health and are expected to dissipate.
Analysts Double-Down On SGH
The analysts are doubling down on SGH, although this news is mixed. Marketbeat’s analyst tracking tools have picked up at least 3 new reports, amounting to 3 reiterated Buy ratings and 1 price target reduction. The takeaway is that SGH is pegged at a Buy, which has held firm for the last year. The price target has been moving lower and moved lower with the new target reduction, but the 3 new reports, including the lowered target, all have targets above the consensus figure, which is projecting a 50% upside for this market. SGH may edge lower in the near term, but the bottom is in because even the lowest price target is above the current action.
The charts are favorable and show a Head & Shoulders reversal pattern. The caveat for investors and traders is that this pattern often reverses a market from down to sideways and not down to up. In that scenario, SGH may trend sideways within the trading range established by the pattern. A complete reversal will be in play if the market can get to the pattern's neckline and break out to new highs, but even then, there will be hurdles to cross.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Skyworks (NASDAQ: SWKS), a supplier to Apple (NASDAQ: AAPL), trades at 12X its earnings, while Alpha And Omega Semiconductor (NASDAQ: AOSL) and Magnachip (NASDAQ: MX) trade near 14X earnings. The takeaway is that SGH is in a good position relative to its market, its diversified portfolio will help sustain it while the microchip, manufacturing and economy at large reset themselves, and there is a significant opportunity for capital gain. SGH has other appeals; the Intelligent Platform Solutions segment, the company’s growth driver, has applications in AI, machine learning, analytics, networking and specialty lighting, which are all hot markets today.
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Skyworks (NASDAQ: SWKS), a supplier to Apple (NASDAQ: AAPL), trades at 12X its earnings, while Alpha And Omega Semiconductor (NASDAQ: AOSL) and Magnachip (NASDAQ: MX) trade near 14X earnings. SGH has other appeals; the Intelligent Platform Solutions segment, the company’s growth driver, has applications in AI, machine learning, analytics, networking and specialty lighting, which are all hot markets today. “We remain disciplined in managing our expenses given the continued challenging economic environment, while maintaining strategic investments to capitalize on the tailwinds of AI, machine learning, data analytics, networking and specialty lighting, which we believe will drive long-term growth for SGH and create value for our shareholders.” The Q2 results are mixed, and the guidance is tepid, but the report has some signs of strength.
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Skyworks (NASDAQ: SWKS), a supplier to Apple (NASDAQ: AAPL), trades at 12X its earnings, while Alpha And Omega Semiconductor (NASDAQ: AOSL) and Magnachip (NASDAQ: MX) trade near 14X earnings. SGH (NASDAQ: SGH) shares hit bottom late last year, and this is a chance it will reverse course and begin to rally again. “We remain disciplined in managing our expenses given the continued challenging economic environment, while maintaining strategic investments to capitalize on the tailwinds of AI, machine learning, data analytics, networking and specialty lighting, which we believe will drive long-term growth for SGH and create value for our shareholders.” The Q2 results are mixed, and the guidance is tepid, but the report has some signs of strength.
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Skyworks (NASDAQ: SWKS), a supplier to Apple (NASDAQ: AAPL), trades at 12X its earnings, while Alpha And Omega Semiconductor (NASDAQ: AOSL) and Magnachip (NASDAQ: MX) trade near 14X earnings. SGH (NASDAQ: SGH) shares hit bottom late last year, and this is a chance it will reverse course and begin to rally again. SGH has other appeals; the Intelligent Platform Solutions segment, the company’s growth driver, has applications in AI, machine learning, analytics, networking and specialty lighting, which are all hot markets today.
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16481.0
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2023-04-05 00:00:00 UTC
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Apple says more suppliers committing to renewable energy
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AAPL
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https://www.nasdaq.com/articles/apple-says-more-suppliers-committing-to-renewable-energy
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nan
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nan
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By Stephen Nellis
April 5(Reuters) - Apple Inc AAPL.O on Wednesday said that more of its supply chain is committing to use renewable energy in producing the company's iPhones, Macs and other products.
Apple said suppliers are supporting 13 gigawatts of active renewable energy projects, up from 10 gigawatts last year. Apple suppliers have made commitments to support an eventual total of 20 gigawatts of projects, up from a total of 16 gigawatts a year before, the company said.
Apple says its own operations have been carbon-neutral since 2020, but the company has been working to extend that promise to its entire global supply chain by 2030. Some of Apple's biggest suppliers such as Foxconn have been part of its clean energy program since 2019.
Apple on Wednesday said that 250 of its suppliers have pledged to use renewable energy for Apple production, up from 213 suppliers the year before. The 250 suppliers represent about 85% of Apple's direct manufacturing spending, the company said.
In China, 70 suppliers have made clean energy pledges for Apple production, up from 55 last year, the company said.
(Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis April 5(Reuters) - Apple Inc AAPL.O on Wednesday said that more of its supply chain is committing to use renewable energy in producing the company's iPhones, Macs and other products. Apple says its own operations have been carbon-neutral since 2020, but the company has been working to extend that promise to its entire global supply chain by 2030. In China, 70 suppliers have made clean energy pledges for Apple production, up from 55 last year, the company said.
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By Stephen Nellis April 5(Reuters) - Apple Inc AAPL.O on Wednesday said that more of its supply chain is committing to use renewable energy in producing the company's iPhones, Macs and other products. Apple said suppliers are supporting 13 gigawatts of active renewable energy projects, up from 10 gigawatts last year. Apple suppliers have made commitments to support an eventual total of 20 gigawatts of projects, up from a total of 16 gigawatts a year before, the company said.
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By Stephen Nellis April 5(Reuters) - Apple Inc AAPL.O on Wednesday said that more of its supply chain is committing to use renewable energy in producing the company's iPhones, Macs and other products. Apple said suppliers are supporting 13 gigawatts of active renewable energy projects, up from 10 gigawatts last year. Apple suppliers have made commitments to support an eventual total of 20 gigawatts of projects, up from a total of 16 gigawatts a year before, the company said.
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By Stephen Nellis April 5(Reuters) - Apple Inc AAPL.O on Wednesday said that more of its supply chain is committing to use renewable energy in producing the company's iPhones, Macs and other products. Apple on Wednesday said that 250 of its suppliers have pledged to use renewable energy for Apple production, up from 213 suppliers the year before. In China, 70 suppliers have made clean energy pledges for Apple production, up from 55 last year, the company said.
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16482.0
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2023-04-05 00:00:00 UTC
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Chart of the Week: Advisors Looking to Prevent Losing Q1 Gains
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AAPL
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https://www.nasdaq.com/articles/chart-of-the-week%3A-advisors-looking-to-prevent-losing-q1-gains
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nan
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nan
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At the end of the first quarter, the S&P 500 posted a 7.5% gain, yet many advisors think there’s a limit to the upside for equity markets in 2023. At the end of March, VettaFi hosted a webcast with Innovator ETFs, during which we asked, “Where is the S&P 500 likely to be at the end of 2023, relative to the end of 2022?” The most popular selection was flat (40%), followed by 10% higher (39%).
The favorable news is that only 16% of respondents believed the market would end 2023 lower than it started the year. Yet very few seemed to believe the strong gains achieved in the first three months were likely to persist, while many think we could essentially tread water for the next nine months.
Defined outcome ETFs from Innovator ETFs like the Innovator U.S. Equity Power Buffer ETF – April (PAPR) and products from peers Allianz and First Trust could help advisors better control the outcome of their portfolio to match their expectations by limiting the downside. However, those funds cap the upside potential as well.
In the first quarter, many investors turned to ETFs that invest in higher quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation. Let’s review some of them, including what they own.
The iShares MSCI USA Quality Factor ETF (QUAL) pulled in more money than any ETF in the first three months of 2023 -- $7.2 billion -- even as industrywide U.S. equity ETFs had net outflows. Most of this money moved into QUAL on March 20, when a large institutional investor appeared to shift away from an iShares ESG ETF in attempt tilt toward equity risk reduction favoring large- and mid-cap stocks amid a shifting macroeconomy and the impact of the bank failures on monetary policy.
QUAL owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index. Information technology is the largest sector (23% of assets) but is soon followed by financials (16%). Visa (V) and Mastercard (MA), which recently became classified as financials, are two such top-10 holdings in QUAL.
The Pacer US Cash Cows 100 ETF (COWZ) owns the 100 companies from the Russell 1000 Index that have the highest free cash flow yield. Free cash flow is what a company has left of its revenues after operating and capital expenses are paid. This money can be used for share buybacks, to pay dividends, or to make acquisitions. Energy (36% of assets) and health care (19%) are well represented in COWZ through companies like Occidental Petroleum (OXY) and McKesson (MCK). COWZ gathered $2.5 billion in the first quarter.
The Invesco S&P 500 Quality ETF (SPHQ) owns 100 companies from within the S&P 500 that have strong return on equity, lower debt leverage, and high accruals ratios. The ETF pulled in approximately $750 million of new money to start 2023. SPHQ has more information technology (29% of assets) exposure than its peers, led by Apple (AAPL) and Microsoft (MSFT), but energy is a healthy 13% stake too.
With gains of 9% and 8%, respectively, QUAL and SPHQ outperformed the S&P 500 Index in the first quarter, while COWZ’s more modest 2% return lagged. This isa further reminder to advisors expecting modest equity returns in 2023 that what’s inside an equity ETF is the driver of its performance, more than its broader high-quality approach.
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SPHQ has more information technology (29% of assets) exposure than its peers, led by Apple (AAPL) and Microsoft (MSFT), but energy is a healthy 13% stake too. In the first quarter, many investors turned to ETFs that invest in higher quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation. QUAL owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index.
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SPHQ has more information technology (29% of assets) exposure than its peers, led by Apple (AAPL) and Microsoft (MSFT), but energy is a healthy 13% stake too. In the first quarter, many investors turned to ETFs that invest in higher quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation. The iShares MSCI USA Quality Factor ETF (QUAL) pulled in more money than any ETF in the first three months of 2023 -- $7.2 billion -- even as industrywide U.S. equity ETFs had net outflows.
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SPHQ has more information technology (29% of assets) exposure than its peers, led by Apple (AAPL) and Microsoft (MSFT), but energy is a healthy 13% stake too. Defined outcome ETFs from Innovator ETFs like the Innovator U.S. Equity Power Buffer ETF – April (PAPR) and products from peers Allianz and First Trust could help advisors better control the outcome of their portfolio to match their expectations by limiting the downside. In the first quarter, many investors turned to ETFs that invest in higher quality companies with strong financial profiles such as low debt leverage, consistent earnings, and ample free cash flow generation.
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SPHQ has more information technology (29% of assets) exposure than its peers, led by Apple (AAPL) and Microsoft (MSFT), but energy is a healthy 13% stake too. At the end of the first quarter, the S&P 500 posted a 7.5% gain, yet many advisors think there’s a limit to the upside for equity markets in 2023. The iShares MSCI USA Quality Factor ETF (QUAL) pulled in more money than any ETF in the first three months of 2023 -- $7.2 billion -- even as industrywide U.S. equity ETFs had net outflows.
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16483.0
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2023-04-05 00:00:00 UTC
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Is Pinterest Showing Signs of an Improving Ad Market?
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AAPL
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https://www.nasdaq.com/articles/is-pinterest-showing-signs-of-an-improving-ad-market
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nan
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nan
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Social commerce platform Pinterest Inc. (NASDAQ: PINS) stock has been a stalwart among social media stocks with a 19% year-to-date (YTD) performance and 10.8% one-year performance. Unlike Meta Platform Inc. (NASDAQ: META) Facebook, Alphabet Inc. (NASDAQ: GOOGL) Google, and Snap Inc. (NASDAQ: SNAP), the mature social media platform has kept itself free of controversy and out of the crosshairs of regulators.
Pinterest has grown its global monthly active users (MAUs) to 450 million, mostly comprised of women between 18 to 64 years old. Its global mobile app, which accounts for 80% of its impressions, grew 14% YoY. The company has focused on bolstering its personalization and video content, driving more engagement with a broader audience. Its advertiser mix is also expanding beyond retailers and packaged goods companies.
Shuffles, Collage-Making App
Pinterest continues to expand its target audience to include more Gen-Z users. It released an app called Shuffles to the delight of the Gen-Z population. It's a trendy app that lets users create animated personalized collages comprised of images, cutouts, and music which can then be posted on other social media platforms.
The flexible app has billions of pictures and cutouts available. Each collage piece can be moved around or resized to the user's preference. The app has grown in popularity on the Apple Inc. (NASDAQ: AAPL) App store. It's number 96 in the Apple App store, behind the Pinterest app at number two, as of April 1, 2023. While not available for Android users, Shuffles has a growing wait list in anticipation of it.
GAAP Profits Achieved
On Feb. 6, 2023, Pinterest released its fiscal fourth-quarter 2022 results for the quarter ending December 2022. The company reported an adjusted earnings-per-share (EPS) profit of $0.29, excluding non-recurring items, versus consensus analyst estimates of $0.28, beating estimates by $0.01.
GAAP net income improved to $17 million, while the full-year 2022 GAAP net loss was ($96 million). The company authorized a $500 million stock buyback effective the next 12 months. Revenues rose 3.6% year-over-year (YOY) to $877.21 million, missing analyst estimates of $886.78 million. Global MAUs grew 4% YoY to 450 million. Engagement sessions are growing "significantly faster" than users, which signifies deepening engagement per user, helping drive greater monetization per user.
Converting Intent into Action
Pinterest CEO Bill Ready commented, “2022 was a solid year as we returned to MAU growth, deepened engagement and saw our personalization and relevance investments start to pay off. We’re building upon this foundation by staying focused on growing monetization per user, integrating shopping throughout the core user experience, and increasingly driving operational rigor.” His goal is to convert more intent into action getting users to spend more rather than just window shopping.
Bill Ready was formerly COO of PayPal Holdings Inc. (NASDAQ: PYPL) and Google. He became Pinterest CEO in late June 2022, replacing founder Ben Silberman. This fueled takeover speculation from PayPal during the summer of 2022. The hype has died down now as CEO Ready is proving his muster with his background in e-commerce, payments processing, and end-to-end customer experience.
Flat Guidance
Pinterest expects fiscal Q1 2023 revenue growth in the low single digits, considering lower Forex headwinds than Q4 2022. Non-GAAP operating expenses should fall in the low double digits.
UBS Upgrade
On March 27, 2023, UBS upgraded Pinterest shares to a Buy with a $35 price target, up from Neutral with a $27 price target. Analyst Lloyd Walmsley raised his revenue, and EBITDA estimates for 2024. He cited that the continued improvement in Pinterest's ad tech drives more advertising dollars to the platform as advertisers get more bang for their buck.
Weekly Cup and Handle Breakout Attempt
The weekly candlestick chart on PINS shows a cup and handle breakdown attempt. The cup lip line was formed at $27.95 in April 2022 as shares fell to a low of $16.13 by May 2022. Eventually, a rounded bottom was formed as shares recovered towards the $25.26 market structure low (MSL) breakout trigger to retest the weekly cup line in January 2023. Shares peaked at $29.17 before falling back to $22.95, where they began to form a handle.
PINS climbed back up through the weekly MSL trigger to attempt a breakout again through the cup lip line at $27.95, which peaked at around $29.17. The weekly stochastic has crossed the 50-band, so momentum is still early. The weekly 20-period exponential moving average (EMA) steadily rises to $25.45, followed by the weekly 50-period MA support at $23.21. Shares must hold above $27.95 to sustain the weekly cup and handle breakout. Pullback support levels are $25.26 weekly MSL trigger, $24.31, $22.56, and $20.21.
The views and 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 app has grown in popularity on the Apple Inc. (NASDAQ: AAPL) App store. It's a trendy app that lets users create animated personalized collages comprised of images, cutouts, and music which can then be posted on other social media platforms. Converting Intent into Action Pinterest CEO Bill Ready commented, “2022 was a solid year as we returned to MAU growth, deepened engagement and saw our personalization and relevance investments start to pay off.
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The app has grown in popularity on the Apple Inc. (NASDAQ: AAPL) App store. Unlike Meta Platform Inc. (NASDAQ: META) Facebook, Alphabet Inc. (NASDAQ: GOOGL) Google, and Snap Inc. (NASDAQ: SNAP), the mature social media platform has kept itself free of controversy and out of the crosshairs of regulators. Converting Intent into Action Pinterest CEO Bill Ready commented, “2022 was a solid year as we returned to MAU growth, deepened engagement and saw our personalization and relevance investments start to pay off.
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The app has grown in popularity on the Apple Inc. (NASDAQ: AAPL) App store. Engagement sessions are growing "significantly faster" than users, which signifies deepening engagement per user, helping drive greater monetization per user. We’re building upon this foundation by staying focused on growing monetization per user, integrating shopping throughout the core user experience, and increasingly driving operational rigor.” His goal is to convert more intent into action getting users to spend more rather than just window shopping.
|
The app has grown in popularity on the Apple Inc. (NASDAQ: AAPL) App store. Shuffles, Collage-Making App Pinterest continues to expand its target audience to include more Gen-Z users. It's a trendy app that lets users create animated personalized collages comprised of images, cutouts, and music which can then be posted on other social media platforms.
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16484.0
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2023-04-05 00:00:00 UTC
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3 Thrilling AI Stocks for Aggressive Investors to Buy
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AAPL
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https://www.nasdaq.com/articles/3-thrilling-ai-stocks-for-aggressive-investors-to-buy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Conversation about artificial intelligence and machine learning has been going on for years. While many companies have been making enormous strides in these technologies, it’s just now coming to fruition for the public. Of course, that has them looking up the best AI stocks to buy.
Talk of AI and ML didn’t just start this year, but it has risen substantially over the last few months. That’s after ChatGPT exploded onto the scene. With its easy interface and accurate, timely responses, it quickly racked up millions of users.
Then Microsoft (NASDAQ:MSFT) made a massive investment in ChatGPT’s parent company, OpenAI. That really spoke to the seriousness of this budding business and the role it will play in the future.
That’s what started this frenzy with investors looking for AI stocks to buy.
MSFT Microsoft $287.15
NVDA Nvidia $275.76
BIDU Baidu $148.83
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Microsoft is atop our list of AI stocks to buy because of the role it has played in the AI-narrative this year.
Its investment in ChatGPT didn’t have an immediate impact on its stock price and the increased volatility held its stock price hostage.
However, the banking crisis helped give it a boost.
Here’s the reality. I don’t think Microsoft, Apple (NASDAQ:AAPL) and other mega-cap tech names are completely immune. But when banking worries arose, there was some serious concern about various assets and markets. But one thing there wasn’t a concern over? Microsoft’s balance sheet and cash flow.
Combined with the AI catalyst, shares have exploded to multi-month highs. It would be reasonable for the stock to consolidate and/or pull back, but for the long term, Microsoft is hard to beat.
Analysts expect modest sales and revenue growth this year, but investors are really optimistic about the future. That’s as Microsoft incorporates ChatGPT into its search, browser and enterprise platforms.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
What a superstar Nvidia (NASDAQ:NVDA) has been. The stock is up 91% in 2023 and is up more than 150% from the 2022 low. It helps that tech stocks have been strong and semiconductor stocks have been robust.
Nvidia is a superb company in its own right but its exposure to AI is really helping it lead these two groups higher.
There is a question of sustainability in the current rally, though. Shares are up in 12 of the last 13 weeks and the valuation is getting quite stretched after the current run. After all, AI may be a strong segment for Nvidia in the future, but it’s not that powerful right now.
I am one of the biggest proponents of Nvidia for long-term growth. However, shares hardly look cheap at 62 times this year’s earnings estimates.
That said, it’s a buy-the-dip kind of name.
Baidu (BIDU)
Source: StreetVJ / Shutterstock.com
Everyone seems to forget about Baidu (NASDAQ:BIDU) — AKA the “Google of China.” Could it be the next stock to take off?
Like Google, Baidu focuses on internet search. Like Nvidia (and like Google too), it’s also focused on self-driving cars. Either way, Baidu should be a big winner from the advancements in AI.
While Chinese stocks had been out of favor, that should not be the case forever. Particularly as Baidu continues to improve from a fundamental perspective.
Analysts expect roughly 10% revenue growth this year and next year, along with 14% to 15% earnings growth in 2023 and 2024, respectively. While not explosive growth, it is solid. Particularly at the current valuation.
Shares trade at about 15 times earnings, making Baidu very approachable for those willing to buy Chinese equities. The company also has a strong balance sheet, with roughly $56.8 billion in total assets and just $22.2 billion in total liabilities.
Its current asset to current liabilities ratio is even better at 2.67 (vs. 2.55 for total assets vs. total liabilities).
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Thrilling AI Stocks for Aggressive Investors to Buy 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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I don’t think Microsoft, Apple (NASDAQ:AAPL) and other mega-cap tech names are completely immune. It would be reasonable for the stock to consolidate and/or pull back, but for the long term, Microsoft is hard to beat. Analysts expect modest sales and revenue growth this year, but investors are really optimistic about the future.
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I don’t think Microsoft, Apple (NASDAQ:AAPL) and other mega-cap tech names are completely immune. MSFT Microsoft $287.15 NVDA Nvidia $275.76 BIDU Baidu $148.83 Microsoft (MSFT) Source: NYCStock / Shutterstock.com Microsoft is atop our list of AI stocks to buy because of the role it has played in the AI-narrative this year. Analysts expect roughly 10% revenue growth this year and next year, along with 14% to 15% earnings growth in 2023 and 2024, respectively.
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I don’t think Microsoft, Apple (NASDAQ:AAPL) and other mega-cap tech names are completely immune. MSFT Microsoft $287.15 NVDA Nvidia $275.76 BIDU Baidu $148.83 Microsoft (MSFT) Source: NYCStock / Shutterstock.com Microsoft is atop our list of AI stocks to buy because of the role it has played in the AI-narrative this year. Baidu (BIDU) Source: StreetVJ / Shutterstock.com Everyone seems to forget about Baidu (NASDAQ:BIDU) — AKA the “Google of China.” Could it be the next stock to take off?
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I don’t think Microsoft, Apple (NASDAQ:AAPL) and other mega-cap tech names are completely immune. Of course, that has them looking up the best AI stocks to buy. MSFT Microsoft $287.15 NVDA Nvidia $275.76 BIDU Baidu $148.83 Microsoft (MSFT) Source: NYCStock / Shutterstock.com Microsoft is atop our list of AI stocks to buy because of the role it has played in the AI-narrative this year.
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16485.0
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2023-04-05 00:00:00 UTC
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Should Invesco FTSE RAFI US 1000 ETF (PRF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-ftse-rafi-us-1000-etf-prf-be-on-your-investing-radar-6
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund launched on 12/19/2005.
The fund is sponsored by Invesco. It has amassed assets over $5.89 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.06%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.30% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL).
The top 10 holdings account for about 16.4% of total assets under management.
Performance and Risk
PRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses. The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
The ETF has added roughly 1.26% so far this year and is down about -7.09% in the last one year (as of 04/05/2023). In the past 52-week period, it has traded between $138.77 and $172.75.
The ETF has a beta of 1 and standard deviation of 19.62% for the trailing three-year period, making it a medium risk choice in the space. With about 1004 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PRF is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.43 billion in assets, Vanguard Value ETF has $101.10 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund launched on 12/19/2005.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund launched on 12/19/2005.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Alternatives Invesco FTSE RAFI US 1000 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund launched on 12/19/2005.
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16486.0
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2023-04-05 00:00:00 UTC
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Apple Stock: Bear vs. Bull
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-bear-vs.-bull-3
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nan
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nan
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Last year was tough for the tech industry, with countless stocks affected by a sell-off. Some of the world's most valuable companies were hit hard by steep rises in inflation, curbing consumer spending. However, the economically challenging year brought to light the strengths and weaknesses of many businesses. For instance, Apple (NASDAQ: AAPL) proved its resilience by outperforming many of its peers throughout 2022.
Data by YCharts
Apple amassed immense brand loyalty over the years thanks to the priority it places on quality and an interconnected product strategy, which promotes ease of use. As a result, its stock offers consistent gains over the long term.
However, before investing in this tech giant, you'll want to be aware of both its pros and cons. Here's the bear vs. bull for Apple's stock.
Bear: Potential roadblocks when entering a new market
In January, Bloomberg reported Apple has plans to launch its first virtual/augmented reality (VR/AR) headset in 2023 after years of speculation. The new device is expected to feature VR and AR capabilities, presented with an iPhone-like interface, and cost around $3,000. However, Apple could face obstacles in succeeding in its new venture amid an uncertain time for the industry.
VR has experienced a slight resurgence in recent years, boosted by Meta's Quest line of headsets and its push to grow what it calls the metaverse, or the next version of the internet. As a result, the Facebook owner achieved an 81% market in the VR and AR industry in the fourth quarter of 2022, according to Counterpoint Research. Despite Meta's efforts, however, the technology continues to have low adoption rates from consumers, with Microsoft and Disney recently shuttering their metaverse divisions after seeing a lack of engaging content.
Apple has a long history of succeeding when entering new markets, proven by its leading 34.4% market share in headphones after releasing the first AirPods in 2016, despite the presence of established brands such as Bose and Sony. However, the VR/AR market is still in its infancy, with its future largely uncertain. Apple will have its work cut out for it to overcome Meta's dominance and convince consumers to embrace the technology.
If any company could succeed in VR/AR, it would likely be Apple. However, if its coming headset doesn't pay off, a failed launch could be detrimental to its stock price.
Bull: Apple has a swiftly expanding digital service business
Despite potential trouble in its products, Apple's digital services business holds great promise. The company's current services library includes Apple TV+, Music, Fitness+, iCloud, and more, all accessible through a monthly subscription. In fiscal 2022, Apple's services segment earned the second-largest amount of revenue and reported growth of 14%, double the iPhone's 7%.
Apple's expansion into digital services allows it to lean less on the success of its products, which can fluctuate quarter to quarter and are more prone to disruptions from economic conditions. Services also offer attractive profit margins, with the segment hitting 71.7% profitability in 2022 while physical products' margins were 36.3%.
On March 30, Apple furthered its venture into services by launching its first buy now, pay later (BNPL) program in the U.S., taking on companies like Affirm and Klarna. Named Apple Pay Later, the new program will allow consumers to split purchases costing between $50 and $1,000 over six weeks. Apple Pay Later sees the company using its power in services to boost the sales of its product, which will likely attract more consumers who otherwise would have bought from the competition.
Is Apple stock a buy?
Apple shares soared 294% in the last five years and 977% in the last ten years. The company has built itself into a tech behemoth, amassing the largest market cap in the world and offering investors consistent gains over the long term.
The company may face headwinds in the short term with its coming headset. However, with $20.54 billion in cash and equivalents as of Dec. 30, Apple has the funds and industry dominance to flourish in the long run. Meanwhile, its lucrative services business will likely continue boosting earnings for years.
As a result, Apple's stock is a no-brainer buy right now.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Affirm, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For instance, Apple (NASDAQ: AAPL) proved its resilience by outperforming many of its peers throughout 2022. Data by YCharts Apple amassed immense brand loyalty over the years thanks to the priority it places on quality and an interconnected product strategy, which promotes ease of use. VR has experienced a slight resurgence in recent years, boosted by Meta's Quest line of headsets and its push to grow what it calls the metaverse, or the next version of the internet.
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For instance, Apple (NASDAQ: AAPL) proved its resilience by outperforming many of its peers throughout 2022. Services also offer attractive profit margins, with the segment hitting 71.7% profitability in 2022 while physical products' margins were 36.3%. The Motley Fool has positions in and recommends Affirm, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Walt Disney.
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For instance, Apple (NASDAQ: AAPL) proved its resilience by outperforming many of its peers throughout 2022. Bull: Apple has a swiftly expanding digital service business Despite potential trouble in its products, Apple's digital services business holds great promise. Is Apple stock a buy?
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For instance, Apple (NASDAQ: AAPL) proved its resilience by outperforming many of its peers throughout 2022. If any company could succeed in VR/AR, it would likely be Apple. Meanwhile, its lucrative services business will likely continue boosting earnings for years.
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16487.0
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2023-04-05 00:00:00 UTC
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Foxconn Q1 sales rise 3.9% y/y
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AAPL
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https://www.nasdaq.com/articles/foxconn-q1-sales-rise-3.9-y-y
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nan
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nan
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TAIPEI, April 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year.
For March, revenue fell 21.1% compared with the same period last year, the company said in a statement.
(Reporting by Ben Blanchard, Editing by Louise Heavens)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, April 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year. For March, revenue fell 21.1% compared with the same period last year, the company said in a statement. (Reporting by Ben Blanchard, Editing by Louise Heavens) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, April 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year. For March, revenue fell 21.1% compared with the same period last year, the company said in a statement. (Reporting by Ben Blanchard, Editing by Louise Heavens) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, April 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year. For March, revenue fell 21.1% compared with the same period last year, the company said in a statement. (Reporting by Ben Blanchard, Editing by Louise Heavens) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, April 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year. For March, revenue fell 21.1% compared with the same period last year, the company said in a statement. (Reporting by Ben Blanchard, Editing by Louise Heavens) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16488.0
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2023-04-05 00:00:00 UTC
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US STOCKS-Futures fall as investors await key economic data amid recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-investors-await-key-economic-data-amid-recession-fears
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.14%, S&P 0.21%, Nasdaq 0.23%
April 5 (Reuters) - U.S. stock index futures slipped on Wednesday in the run up to a fresh batch of economic data, expected to give more clarity on the state of the U.S. economy amid worries that rapid rate hikes by the Federal Reserve may trigger a steep downturn.
At 5:03 a.m. ET, Dow e-minis 1YMcv1 were down 46 points, or 0.14%, S&P 500 e-minis EScv1 were down 8.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 30.5 points, or 0.23%.
Weak job openings data and falling factory orders on Tuesday followed soft manufacturing activity data on Monday, sparking fresh concerns about economic outlook and pushing the S&P 500 .SPX to snap a four-day winning streak in the prior session.
On Wednesday, investors will keep a close watch on the ADP National Employment report before the opening bell, expected to show that the rise in private payrolls likely slowed in March.
The S&P Global Composite and Services PMI and the Institute for Supply Management's (ISM) non-manufacturing PMI for March will also be on the watch list.
Expectations of the Fed pausing its aggressive monetary tightening, earlier triggered by the banking sector turmoil, resurfaced.
Traders' bets of a no hike in May stood at 54.6%, with the rest on a 25-basis point hike, according to CME Group's Fedwatch tool.
Escalating oil prices following the OPEC+ group's output cuts have also worsened the outlook for inflation, adding to investors' anxiety.
"The concern is the Federal Reserve might have to sound the retreat before its war on inflation is truly done," said AJ Bell head of financial analysis Danni Hewson.
"This could leave us with the worst of all worlds – the dreaded stagflation where the economy is shrinking but prices are continuing to surge higher."
As U.S. Treasury yields rebounded after falling over the past few sessions, major technology and other growth stocks like Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O fell between 0.2% and 0.8% in premarket trading.
Among individual stocks, Nvidia Corp NVDA.O fell 1.2% after Alphabet Inc's GOOGL.O Google said that its supercomputer-trained artificial intelligence models were better than the chipmaker's comparable systems.
Both the benchmark S&P 500 and tech-heavy Nasdaq .IXIC are on track to notch weekly declines in four in the holiday-shortened week.
Western Alliance Bancorp WAL.Ndropped 2.2% after the bank's first-quarter unrealized losses on securities and held-for-investment (HFI) loans narrowed since 2022 end.
Johnson & Johnson JNJ.N gained 3% after placing its unit in bankruptcy for second time to pay $8.9 billion to settle tens of thousands of lawsuits alleging that talc in its iconic Baby Powder and other products caused cancer.
(Reporting by Ankika Biswas in Bengaluru; Editing by Nivedita Bhattacharjee)
((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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As U.S. Treasury yields rebounded after falling over the past few sessions, major technology and other growth stocks like Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O fell between 0.2% and 0.8% in premarket trading. On Wednesday, investors will keep a close watch on the ADP National Employment report before the opening bell, expected to show that the rise in private payrolls likely slowed in March. Among individual stocks, Nvidia Corp NVDA.O fell 1.2% after Alphabet Inc's GOOGL.O Google said that its supercomputer-trained artificial intelligence models were better than the chipmaker's comparable systems.
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As U.S. Treasury yields rebounded after falling over the past few sessions, major technology and other growth stocks like Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O fell between 0.2% and 0.8% in premarket trading. Futures down: Dow 0.14%, S&P 0.21%, Nasdaq 0.23% April 5 (Reuters) - U.S. stock index futures slipped on Wednesday in the run up to a fresh batch of economic data, expected to give more clarity on the state of the U.S. economy amid worries that rapid rate hikes by the Federal Reserve may trigger a steep downturn. ET, Dow e-minis 1YMcv1 were down 46 points, or 0.14%, S&P 500 e-minis EScv1 were down 8.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 30.5 points, or 0.23%.
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As U.S. Treasury yields rebounded after falling over the past few sessions, major technology and other growth stocks like Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O fell between 0.2% and 0.8% in premarket trading. Futures down: Dow 0.14%, S&P 0.21%, Nasdaq 0.23% April 5 (Reuters) - U.S. stock index futures slipped on Wednesday in the run up to a fresh batch of economic data, expected to give more clarity on the state of the U.S. economy amid worries that rapid rate hikes by the Federal Reserve may trigger a steep downturn. ET, Dow e-minis 1YMcv1 were down 46 points, or 0.14%, S&P 500 e-minis EScv1 were down 8.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 30.5 points, or 0.23%.
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As U.S. Treasury yields rebounded after falling over the past few sessions, major technology and other growth stocks like Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O fell between 0.2% and 0.8% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.14%, S&P 0.21%, Nasdaq 0.23% April 5 (Reuters) - U.S. stock index futures slipped on Wednesday in the run up to a fresh batch of economic data, expected to give more clarity on the state of the U.S. economy amid worries that rapid rate hikes by the Federal Reserve may trigger a steep downturn.
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16489.0
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2023-04-05 00:00:00 UTC
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German antitrust regulator opens door for curbs on Apple
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AAPL
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https://www.nasdaq.com/articles/german-antitrust-regulator-opens-door-for-curbs-on-apple
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nan
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nan
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Adds Apple response, background
BERLIN, April 5 (Reuters) - Germany's antitrust regulator has opened the door for measures to curb Apple AAPL.O after deciding that the U.S. tech giant's market dominance makes it worthy of such measures, the body said in a statement on Wednesday.
The Bundeskartellamt regulator has designated Apple a "company of paramount significance for competition across markets", it said.
"The company is - beginning with its mobile devices such as the iPhone - the operator of a comprehensive digital ecosystem with a high significance for competition not only in Germany, but also in Europe and worldwide," said Bundeskartellamt President Andreas Mundt.
On the basis of the regulator's decision, it can target practices "that pose a threat to competition and practices and effectively prevent them", he added.
Apple said it would continue to work with the cartel office to understand its concerns but that it planned to appeal the decision.
"The (cartel office's) designation misrepresents the fierce competition Apple faces in Germany, and it discounts the value of a business model that puts user privacy and security at its core," an Apple spokesperson said in an emailed statement to Reuters.
The German authority has already declared Google parent Alphabet GOOGL.O and Facebook owner Meta META.O companies of paramount significance for competition across markets.
(Reporting by Rachel More, Editing by Friederike Heine)
((rachel.more@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds Apple response, background BERLIN, April 5 (Reuters) - Germany's antitrust regulator has opened the door for measures to curb Apple AAPL.O after deciding that the U.S. tech giant's market dominance makes it worthy of such measures, the body said in a statement on Wednesday. "The company is - beginning with its mobile devices such as the iPhone - the operator of a comprehensive digital ecosystem with a high significance for competition not only in Germany, but also in Europe and worldwide," said Bundeskartellamt President Andreas Mundt. The German authority has already declared Google parent Alphabet GOOGL.O and Facebook owner Meta META.O companies of paramount significance for competition across markets.
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Adds Apple response, background BERLIN, April 5 (Reuters) - Germany's antitrust regulator has opened the door for measures to curb Apple AAPL.O after deciding that the U.S. tech giant's market dominance makes it worthy of such measures, the body said in a statement on Wednesday. The Bundeskartellamt regulator has designated Apple a "company of paramount significance for competition across markets", it said. "The (cartel office's) designation misrepresents the fierce competition Apple faces in Germany, and it discounts the value of a business model that puts user privacy and security at its core," an Apple spokesperson said in an emailed statement to Reuters.
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Adds Apple response, background BERLIN, April 5 (Reuters) - Germany's antitrust regulator has opened the door for measures to curb Apple AAPL.O after deciding that the U.S. tech giant's market dominance makes it worthy of such measures, the body said in a statement on Wednesday. The Bundeskartellamt regulator has designated Apple a "company of paramount significance for competition across markets", it said. "The (cartel office's) designation misrepresents the fierce competition Apple faces in Germany, and it discounts the value of a business model that puts user privacy and security at its core," an Apple spokesperson said in an emailed statement to Reuters.
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Adds Apple response, background BERLIN, April 5 (Reuters) - Germany's antitrust regulator has opened the door for measures to curb Apple AAPL.O after deciding that the U.S. tech giant's market dominance makes it worthy of such measures, the body said in a statement on Wednesday. The Bundeskartellamt regulator has designated Apple a "company of paramount significance for competition across markets", it said. "The (cartel office's) designation misrepresents the fierce competition Apple faces in Germany, and it discounts the value of a business model that puts user privacy and security at its core," an Apple spokesperson said in an emailed statement to Reuters.
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16490.0
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2023-04-05 00:00:00 UTC
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A Stock That Could Go Up 10x in a Decade
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AAPL
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https://www.nasdaq.com/articles/a-stock-that-could-go-up-10x-in-a-decade
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nan
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nan
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Not every company has the potential to rise in value by 10x in a decade, but Spotify (NYSE: SPOT) is a company that could. It's beating Apple in podcasts and music and is building an advertising business that could be extremely profitable. Travis Hoium covers why this is a great time to buy this industry leader.
*Stock prices used were end-of-day prices of April 1, 2023. The video was published on April 5, 2023.
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 March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Spotify Technology. 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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It's beating Apple in podcasts and music and is building an advertising business that could be extremely profitable. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Spotify Technology.
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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. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Spotify Technology.
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See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Spotify Technology.
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That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology.
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16491.0
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2023-04-05 00:00:00 UTC
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Better Growth Stock: Apple vs. Nvidia
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AAPL
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https://www.nasdaq.com/articles/better-growth-stock%3A-apple-vs.-nvidia
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nan
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nan
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Tech stocks captured Wall Street's attention in 2023 after falling out of favor amid macroeconomic headwinds last year. Developments in artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent shares in several related companies soaring, with Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) stocks up 28% and 90%, respectively, since Jan. 1.
These companies have solid histories of growth thanks to substantial market shares in their respective industries. Apple became a mammoth in tech because of its dominance in consumer products, while Nvidia profited from increasing demand for its chips.
These companies are building the future as the potential leaders of two high-growth markets: AI and VR/AR (aka the global XR market). The question is, which industry is likely to offer more significant gains over the long term?
So let's consider whether Apple or Nvidia is the better growth stock right now.
Apple: The future leader of a $31 billion market
Apple has rallied investors this year with a planned venture into the global XR market, with a new headset projected to launch in 2023. Related acquisitions and patents filed over the years have all but confirmed the company's interest in the industry. However, a Bloomberg report in January revealed new details about the coming device, which is expected to feature virtual and augmented features alongside an iPhone-like OS and retail for around $3,000.
According to Statista, the VR and AR market will achieve a value of $31 billion in 2023, projected to expand at a compound annual growth rate (CAGR) of 13.7% through 2027. The industry's outlook is positive for Apple. However, recent headwinds could prove tricky for the company to overcome.
Meta Platforms achieved an 81% market share in global XR, according to Counterpoint Research, thanks to its line of Quest headsets. The company has sunk billions into growing the market and its metaverse, or what it sees as the next iteration of the internet. However, recent price drops for its headsets suggest encouraging consumers to adopt the technology has been challenging. Meanwhile, Microsoft and Disney recently sunsetting their metaverse divisions speaks volumes about their expectations for the future of AR and VR.
Apple has a solid history of defying expectations when entering new markets. It has been a major driver in the mass adoption of numerous technologies, such as smartphones, tablets, smartwatches, and Bluetooth headphones. However, it likely has a mountain to climb to get its coming VR/AR headset into the hands of consumers.
Nvidia: A crucial role to play in the development of AI
Nvidia's stock skyrocketed in 2023, experiencing a strong recovery after plunging 50% last year. Investors grew particularly bullish over the company's prospects in AI, which has experienced a boom in recent months.
The launch of OpenAI's ChatGPT stunned the tech world last November with its ability to produce human-like dialogue based on prompts. The advanced chatbot prompted numerous tech companies to pivot their businesses toward AI development to join the burgeoning industry.
The AI market hit a value of $137 billion in 2022 and is expected to see a CAGR of 37.3% through 2030 (per Grand View Research). The technology has the potential to enhance countless industries, from cloud computing to education, healthcare, and more. Meanwhile, Nvidia is home to the hardware required to run and develop AI software with its graphics process units (GPUs).
In fact, Nvidia is the primary supplier of GPUs to ChatGPT, which unitized 20,000 units in 2020. According to research from TrendForce, that figure will likely hit 30,000 soon as ChatGPT prepares for commercialization. Alongside competing AI platforms currently in development, demand for Nvidia's GPUs could surge in the coming years.
Is Apple or Nvidia the better growth stock?
Apple's market cap of $2.6 trillion compared to Nvidia's $686 billion make these companies vastly different in size and value. However, that could play in Nvidia's favor, with more room for growth as the less mature company. This is evident by comparing the companies' five-year stock performance, with the chart below showing that Nvidia has outperformed Apple.
Data by YCharts
Moreover, there is very little contest between choosing to invest in the future of the global XR market or AI. VR/AR has vast potential, and if Apple and Meta's hopes for the technology come to fruition, it could change everything. However, AI currently has more tangible applications, already utilized in many industries. Additionally, Nvidia's role as a supplier of GPUs to ChatGPT strengthens the argument for the semiconductor company.
As a result, Nvidia is the better growth stock for now, but keeping an eye on Apple to queue up for future investment is also a great idea.
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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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Developments in artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent shares in several related companies soaring, with Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) stocks up 28% and 90%, respectively, since Jan. 1. According to Statista, the VR and AR market will achieve a value of $31 billion in 2023, projected to expand at a compound annual growth rate (CAGR) of 13.7% through 2027. The launch of OpenAI's ChatGPT stunned the tech world last November with its ability to produce human-like dialogue based on prompts.
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Developments in artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent shares in several related companies soaring, with Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) stocks up 28% and 90%, respectively, since Jan. 1. Meta Platforms achieved an 81% market share in global XR, according to Counterpoint Research, thanks to its line of Quest headsets. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Walt Disney.
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Developments in artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent shares in several related companies soaring, with Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) stocks up 28% and 90%, respectively, since Jan. 1. Apple: The future leader of a $31 billion market Apple has rallied investors this year with a planned venture into the global XR market, with a new headset projected to launch in 2023. Nvidia: A crucial role to play in the development of AI Nvidia's stock skyrocketed in 2023, experiencing a strong recovery after plunging 50% last year.
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Developments in artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent shares in several related companies soaring, with Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) stocks up 28% and 90%, respectively, since Jan. 1. So let's consider whether Apple or Nvidia is the better growth stock right now. The AI market hit a value of $137 billion in 2022 and is expected to see a CAGR of 37.3% through 2030 (per Grand View Research).
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16492.0
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2023-04-05 00:00:00 UTC
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Foxconn Q1 sales edge up, but Q2 outlook poor
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AAPL
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https://www.nasdaq.com/articles/foxconn-q1-sales-edge-up-but-q2-outlook-poor
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nan
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nan
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Recasts, adds details from statement
TAIPEI, April 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year, but that sales for the current quarter would be down.
Revenue last month reached the third highest on record for March at T$400.3 billion ($13.14 billion), though that represented a 21.1% year-on-year fall, the company said in a statement.
The rise in sales for the first three months of the year, to T$1.42 billion, was a fresh record high for the same period, and in line with previous guidance, Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said.
For smart consumer electronics products, which includes smartphones, revenue in March declined due to new product launches in the same period last year.
The outlook for the second quarter is expected to decrease on a quarter-on-quarter and year-on-year basis, the company said, coming off a high base from an "unseasonally strong pull-in in the first half of last year which occurred as the components shortage from 2021 eased".
The company will report first quarter earnings on May 11 when it will also give an update on its outlook for the current quarter and full year.
More than half of Foxconn's revenue comes from consumer electronics.
Foxconn shares have risen 4.1% so far this year, lagging the broader Taiwan market .TWII which is up 12.2%.
The market was closed on Wednesday for a holiday in Taiwan.
($1 = 30.4550 Taiwan dollars)
(Reporting by Ben Blanchard, Editing by Louise Heavens and Christina Fincher)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts, adds details from statement TAIPEI, April 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year, but that sales for the current quarter would be down. The rise in sales for the first three months of the year, to T$1.42 billion, was a fresh record high for the same period, and in line with previous guidance, Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said. The outlook for the second quarter is expected to decrease on a quarter-on-quarter and year-on-year basis, the company said, coming off a high base from an "unseasonally strong pull-in in the first half of last year which occurred as the components shortage from 2021 eased".
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Recasts, adds details from statement TAIPEI, April 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year, but that sales for the current quarter would be down. For smart consumer electronics products, which includes smartphones, revenue in March declined due to new product launches in the same period last year. More than half of Foxconn's revenue comes from consumer electronics.
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Recasts, adds details from statement TAIPEI, April 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year, but that sales for the current quarter would be down. The rise in sales for the first three months of the year, to T$1.42 billion, was a fresh record high for the same period, and in line with previous guidance, Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said. The outlook for the second quarter is expected to decrease on a quarter-on-quarter and year-on-year basis, the company said, coming off a high base from an "unseasonally strong pull-in in the first half of last year which occurred as the components shortage from 2021 eased".
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Recasts, adds details from statement TAIPEI, April 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that revenue in the first quarter rose 3.9% year-on-year, but that sales for the current quarter would be down. Revenue last month reached the third highest on record for March at T$400.3 billion ($13.14 billion), though that represented a 21.1% year-on-year fall, the company said in a statement. The rise in sales for the first three months of the year, to T$1.42 billion, was a fresh record high for the same period, and in line with previous guidance, Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said.
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16493.0
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2023-04-04 00:00:00 UTC
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Wall Street Analysts Think Apple (AAPL) Is a Good Investment: Is It?
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AAPL
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https://www.nasdaq.com/articles/wall-street-analysts-think-apple-aapl-is-a-good-investment%3A-is-it
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nan
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nan
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL).
Apple currently has an average brokerage recommendation (ABR) of 1.35, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.35 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 18 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 75% and 12.5% of all recommendations.
Brokerage Recommendation Trends for AAPL
Check price target & stock forecast for Apple here>>>
The ABR suggests buying Apple, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is AAPL a Good Investment?
Looking at the earnings estimate revisions for Apple, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.04.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Apple.
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
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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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment?
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Brokerage Recommendation Trends for AAPL Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Is AAPL a Good Investment?
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16494.0
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2023-04-04 00:00:00 UTC
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Macy’s Gets Upgrade From JP Morgan On Renewed Confidence
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AAPL
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https://www.nasdaq.com/articles/macys-gets-upgrade-from-jp-morgan-on-renewed-confidence
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nan
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nan
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Heading into the first week of the month, Macy’s, Inc (NYSE: M) demonstrated they are no April fool as their pandemic emergence plan has put them in a furtive position. JP Morgan Analyst Matthew Boss raised Macy’s stock rating from Neutral to Overweight, bumping his price target from $28 to $29. And while so many other analysts may have stuck with their Hold rating, this seemingly innocuous jump also helped bump share value up 5.3%, to $18.42, on the news. Trading activity more than doubled to 21.34 million shares on the news.
The Wall Street investment firm noted that its upgrade came from growing confidence in Macy’s new plan to improve its bottom line. Specifically, the financial advisor anticipates M will provide several years of low-double-digit EBITDA margin. By comparison, the benchmark S&P 500 has maintained an EBITDA between 11 and 14 for the last few years.
Macy’s Has Struggled, but They Are Holding Strong
At first glance, it would appear that Macy’s has been struggling for some time now, so this week's news is a bit of a reprieve from the sustained decline. If you didn’t know, M is down -22.82% on the month, down -13.11% on the quarter, and down -27.85% on the year. At the same time, the retail sector is also down: -13.79%, -8.68%, and -26.76%, respectively.
That said, M’s $23.75 price target represents a solid 26.8% upside, so there’s a lot of light at the end of that tunnel. Although the current $18.80 share value is in the bottom 25% of the 52-week range, the stock is paying a strong dividend yield of 3.5%. Yes, the annual dividend is small–only $0.66–and the 15.75% payout ratio is a bit lighter, but the quarterly payout held strong at $0.16 for at least the last three quarters, only to finally increase to $0.17 recently.
The Strategy Is Paying Off
News of the analyst upgrade is an encouraging change of perspective on a stock that has had some difficulties this year. Indeed, M remains down more than 22% since this time last year, following selloffs in February and March.
However, the liquidation is part of a focused restructuring effort emphasizing cutting costs. In 2020, Macy’s closed at least another 125 stores and cut several thousand corporate positions. Several dozen more followed in 2021, and then another handful in 2022. At the top of 2023, Macy’s had already revealed a plan to close at least another four stores. Selling off unprofitable stores saved the company $1.6 billion in 2016 alone.
Smart Strategies Have Helped Macy’s Recover
The early April 2023 rating boost comes just about one year after Macy’s announced its new customer-focused “Own our Style” brand platform and “Mission Every One” social purpose platform. The initiative aims to reinvest $5 billion of allocated company spending to develop equity and sustainability among “our people, partners, products, and programs” through 2025. It would appear they are on track to achieve these goals.
More importantly, the “Own Your Style” platform and “Mission Every One” platform are part of Macy’s three-year Polaris Strategy. Specifically, this initiative aimed to:
Hone annual EPS guidance at the upper range
Reset the fixed cost base first to stabilize and then encourage profit and cash flow.
Save $1.5 billion in gross annual costs by year-end 2022 but start with $600 million in gross annual cost savings in 2020.
Build a foundation for at least $1 billion in “power private brands.”
Expand “omnichannel” offerings, including digital sales, curbside and in-store pickup, and same-day delivery.
Macy’s Has Big Plans for the Future
Indeed, Macy’s saw 68% of digital sales from mobile devices in Q4 FY 2022. The company now expects to register about the same for fiscal 2023. While growth is always desired, stability in a new program like Polaris is certainly not unwelcome. March 2023 marked the end of Polaris, and the program's successes have given Macy’s, Inc. a new foothold in this evolving retail environment.
On top of this, Macy’s new partnerships could help them to further expand on its new platform. DoorDash, for example, is on board to expedite Macy’s delivery offerings. In addition, Apple Inc. (NASDAQ: AAPL), PayPayl Holdings, Inc. (NASDAQ: PYPL), Venmo (a subsidiary of Paypal), and Klarna Express Checkout have all signed on to provide digital payment options. These expansions warrant a second look at why Boss at JP Morgan boosted M’s rating.
The views and 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 addition, Apple Inc. (NASDAQ: AAPL), PayPayl Holdings, Inc. (NASDAQ: PYPL), Venmo (a subsidiary of Paypal), and Klarna Express Checkout have all signed on to provide digital payment options. Heading into the first week of the month, Macy’s, Inc (NYSE: M) demonstrated they are no April fool as their pandemic emergence plan has put them in a furtive position. Specifically, this initiative aimed to: Hone annual EPS guidance at the upper range Reset the fixed cost base first to stabilize and then encourage profit and cash flow.
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In addition, Apple Inc. (NASDAQ: AAPL), PayPayl Holdings, Inc. (NASDAQ: PYPL), Venmo (a subsidiary of Paypal), and Klarna Express Checkout have all signed on to provide digital payment options. JP Morgan Analyst Matthew Boss raised Macy’s stock rating from Neutral to Overweight, bumping his price target from $28 to $29. More importantly, the “Own Your Style” platform and “Mission Every One” platform are part of Macy’s three-year Polaris Strategy.
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In addition, Apple Inc. (NASDAQ: AAPL), PayPayl Holdings, Inc. (NASDAQ: PYPL), Venmo (a subsidiary of Paypal), and Klarna Express Checkout have all signed on to provide digital payment options. Macy’s Has Struggled, but They Are Holding Strong At first glance, it would appear that Macy’s has been struggling for some time now, so this week's news is a bit of a reprieve from the sustained decline. Smart Strategies Have Helped Macy’s Recover The early April 2023 rating boost comes just about one year after Macy’s announced its new customer-focused “Own our Style” brand platform and “Mission Every One” social purpose platform.
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In addition, Apple Inc. (NASDAQ: AAPL), PayPayl Holdings, Inc. (NASDAQ: PYPL), Venmo (a subsidiary of Paypal), and Klarna Express Checkout have all signed on to provide digital payment options. JP Morgan Analyst Matthew Boss raised Macy’s stock rating from Neutral to Overweight, bumping his price target from $28 to $29. And while so many other analysts may have stuck with their Hold rating, this seemingly innocuous jump also helped bump share value up 5.3%, to $18.42, on the news.
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16495.0
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2023-04-04 00:00:00 UTC
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Foxconn founder Gou says he will seek Taiwan presidency
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AAPL
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https://www.nasdaq.com/articles/foxconn-founder-gou-says-he-will-seek-taiwan-presidency
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nan
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nan
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Recasts, adds quotes from Gou, details
TAOYUAN, Taiwan, April 5 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Wednesday he will seek the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT), for a second time.
Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after losing the race to win the nomination for the KMT, which traditionally favours close ties with China.
Speaking to reporters at a hotel next to Taiwan's main international airport at Taoyuan on his return from a week-long trip to the United States, Gou said the only way to avoid war with China was to lessen Sino-U.S. tensions and get Taiwan's ruling Democratic Progressive Party (DPP) out of office.
"Peace is not taken for granted, and people need to make the correct choice."
The KMT is still in the process of choosing its candidate for the next presidential election, due in January 2024, with Hou Yu-ih, mayor of New Taipei City, broadly considered the current front-runner.
The run up to the election is taking place at a time of increased tensions between Taipei and Beijing, as China stages regular military exercises near the island to assert its sovereignty claims.
The KMT denies being pro-Beijing though it supports maintaining good relations with China. The DPP champions Taiwan's separate identity from China, but the government it leads has repeatedly offered talks with China that have been rebuffed.
Gou said he had to stand up and "resolve the crisis" traditional politicians were not able to, adding he was sorry he left the KMT four years ago.
"If I am nominated by the KMT, I will do my best to unite all the non-green camps and win the 2024 presidential election," he added, referring to the DPP's party colours.
But if opinion polls showed current KMT front-runner Hou led Gou and chose him instead, Gou said he would fully back Hou.
"We can't let the DPP continue to govern, we can't let our children live in a forest of guns and the hail of bullets."
The KMT said it would release a statement later. There was no immediate comment from the DPP to his announcement.
The DPP has already chosen party chairman William Lai, who is also Taiwan's vice president, as its 2024 candidate.
(Reporting by Ben Blanchard; Editing by Tom Hogue and Kenneth Maxwell)
((John.Geddie@thomsonreuters.com; +81 80 7264 2833;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts, adds quotes from Gou, details TAOYUAN, Taiwan, April 5 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Wednesday he will seek the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT), for a second time. Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after losing the race to win the nomination for the KMT, which traditionally favours close ties with China. The KMT is still in the process of choosing its candidate for the next presidential election, due in January 2024, with Hou Yu-ih, mayor of New Taipei City, broadly considered the current front-runner.
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Recasts, adds quotes from Gou, details TAOYUAN, Taiwan, April 5 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Wednesday he will seek the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT), for a second time. "If I am nominated by the KMT, I will do my best to unite all the non-green camps and win the 2024 presidential election," he added, referring to the DPP's party colours. But if opinion polls showed current KMT front-runner Hou led Gou and chose him instead, Gou said he would fully back Hou.
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Recasts, adds quotes from Gou, details TAOYUAN, Taiwan, April 5 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Wednesday he will seek the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT), for a second time. Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after losing the race to win the nomination for the KMT, which traditionally favours close ties with China. Speaking to reporters at a hotel next to Taiwan's main international airport at Taoyuan on his return from a week-long trip to the United States, Gou said the only way to avoid war with China was to lessen Sino-U.S. tensions and get Taiwan's ruling Democratic Progressive Party (DPP) out of office.
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Recasts, adds quotes from Gou, details TAOYUAN, Taiwan, April 5 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Wednesday he will seek the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT), for a second time. Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after losing the race to win the nomination for the KMT, which traditionally favours close ties with China. "Peace is not taken for granted, and people need to make the correct choice."
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16496.0
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2023-04-04 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $1,151.49K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%241151.49k
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nan
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nan
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On April 4, 2023 at 12:38:31 ET an unusually large $1,151.49K block of Call contracts in Apple (AAPL) was sold, with a strike price of $165.00 / share, expiring in 164 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.68 sigmas above the mean, placing it in the 95.25 percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 3.88% Upside
As of March 30, 2023, the average one-year price target for Apple is $172.62. The forecasts range from a low of $119.18 to a high of $208.95. The average price target represents an increase of 3.88% from its latest reported closing price of $166.17.
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 6411 funds or institutions reporting positions in Apple. This is an increase of 213 owner(s) or 3.44% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.52%. Total shares owned by institutions increased in the last three months by 0.36% to 10,155,552K shares. The put/call ratio of AAPL is 1.00, indicating a bullish outlook.
What are Large Shareholders Doing?
Berkshire Hathaway holds 895,136K shares representing 5.66% ownership of the company. In it's prior filing, the firm reported owning 894,802K shares, representing an increase of 0.04%. The firm decreased its portfolio allocation in AAPL by 6.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 459,387K shares representing 2.90% ownership of the company. In it's prior filing, the firm reported owning 455,109K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AAPL by 12.36% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 345,686K shares representing 2.18% ownership of the company. In it's prior filing, the firm reported owning 342,454K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AAPL by 12.57% over the last quarter.
Geode Capital Management holds 282,750K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 279,759K shares, representing an increase of 1.06%. The firm decreased its portfolio allocation in AAPL by 12.15% over the last quarter.
Price T Rowe Associates holds 226,281K shares representing 1.43% ownership of the company. In it's prior filing, the firm reported owning 224,864K shares, representing an increase of 0.63%. The firm decreased its portfolio allocation in AAPL by 7.53% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On April 4, 2023 at 12:38:31 ET an unusually large $1,151.49K block of Call contracts in Apple (AAPL) was sold, with a strike price of $165.00 / share, expiring in 164 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.68 sigmas above the mean, placing it in the 95.25 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.52%.
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On April 4, 2023 at 12:38:31 ET an unusually large $1,151.49K block of Call contracts in Apple (AAPL) was sold, with a strike price of $165.00 / share, expiring in 164 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.68 sigmas above the mean, placing it in the 95.25 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.52%.
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On April 4, 2023 at 12:38:31 ET an unusually large $1,151.49K block of Call contracts in Apple (AAPL) was sold, with a strike price of $165.00 / share, expiring in 164 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.68 sigmas above the mean, placing it in the 95.25 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.52%.
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Average portfolio weight of all funds dedicated to AAPL is 3.02%, a decrease of 22.52%. On April 4, 2023 at 12:38:31 ET an unusually large $1,151.49K block of Call contracts in Apple (AAPL) was sold, with a strike price of $165.00 / share, expiring in 164 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.68 sigmas above the mean, placing it in the 95.25 percentile of all recent large trades made in AAPL options.
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16497.0
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2023-04-04 00:00:00 UTC
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After Hours Most Active for Apr 4, 2023 : PACW, VICI, ATVI, QQQ, IBN, IOVA, AAPL, PARA, UBER, CCL, OWL, LBRT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-4-2023-%3A-pacw-vici-atvi-qqq-ibn-iova-aapl-para-uber-ccl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -1.56 to 13,098.52. The total After hours volume is currently 139,245,326 shares traded.
The following are the most active stocks for the after hours session:
PacWest Bancorp (PACW) is -0.07 at $9.77, with 11,909,906 shares traded. PACW's current last sale is 34.89% of the target price of $28.
VICI Properties Inc. (VICI) is unchanged at $32.35, with 4,544,135 shares traded. As reported by Zacks, the current mean recommendation for VICI is in the "buy range".
Activision Blizzard, Inc (ATVI) is unchanged at $85.11, with 2,906,149 shares traded. As reported by Zacks, the current mean recommendation for ATVI is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.14 at $319.21, with 2,846,999 shares traded. This represents a 25.54% increase from its 52 Week Low.
ICICI Bank Limited (IBN) is unchanged at $21.59, with 2,601,244 shares traded. As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
Iovance Biotherapeutics, Inc. (IOVA) is +0.12 at $6.04, with 2,502,253 shares traded. As reported by Zacks, the current mean recommendation for IOVA is in the "buy range".
Apple Inc. (AAPL) is -0.01 at $165.62, with 1,928,934 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Paramount Global (PARA) is unchanged at $21.61, with 1,906,617 shares traded. As reported in the last short interest update the days to cover for PARA is 9.170814; this calculation is based on the average trading volume of the stock.
Uber Technologies, Inc. (UBER) is unchanged at $31.39, with 1,863,426 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Carnival Corporation (CCL) is -0.03 at $9.82, with 1,676,385 shares traded. CCL's current last sale is 98.2% of the target price of $10.
Blue Owl Capital Inc. (OWL) is unchanged at $10.89, with 1,637,421 shares traded. OWL's current last sale is 68.06% of the target price of $16.
Liberty Energy Inc. (LBRT) is +0.015 at $13.30, with 1,556,971 shares traded. LBRT's current last sale is 60.45% of the target price of $22.
The views and 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 -0.01 at $165.62, with 1,928,934 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ICICI Bank Limited (IBN) is unchanged at $21.59, with 2,601,244 shares traded.
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Apple Inc. (AAPL) is -0.01 at $165.62, with 1,928,934 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 139,245,326 shares traded.
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Apple Inc. (AAPL) is -0.01 at $165.62, with 1,928,934 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 139,245,326 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.01 at $165.62, with 1,928,934 shares traded. As reported by Zacks, the current mean recommendation for IOVA is in the "buy range".
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16498.0
|
2023-04-04 00:00:00 UTC
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Technology Sector Update for 04/04/2023: AAPL, VORB, AI, INTC, TSEM, SIMO, MXL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-04-04-2023%3A-aapl-vorb-ai-intc-tsem-simo-mxl
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nan
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nan
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Tech stocks were lower late Tuesday, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the Philadelphia Semiconductor index falling about 2.0%.
In company news, Apple (AAPL) wasn't able to register part of a trademark for its Apple Music service as a US court ruled in favor of a musician who challenged its application, Reuters reported. Apple shares ended down about 0.3%.
Virgin Orbit (VORB) and its US subsidiaries filed for Chapter 11 bankruptcy, less than a week after the satellite-launch venture failed to raise enough capital to continue business operations. Virgin Orbit shares were down over 23%.
C3.ai (AI) fell over 26% after short-seller Kerrisdale Capital said it sent a letter to the software company's auditor, alleging accounting and disclosure irregularities.
Chinese regulators are slowing down their merger reviews of proposed acquisitions by US companies, including Intel's (INTC) bid for Tower Semiconductor (TSEM) and MaxLinear's (MXL) proposed takeover of Silicon Motion Technology (SIMO), according to The Wall Street Journal. Intel shares were up 0.6%, Tower Semiconductor was up 0.1%, MaxLinear was down 1.6%, and Silicon Motion was down 1.8%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) wasn't able to register part of a trademark for its Apple Music service as a US court ruled in favor of a musician who challenged its application, Reuters reported. Tech stocks were lower late Tuesday, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the Philadelphia Semiconductor index falling about 2.0%. Virgin Orbit (VORB) and its US subsidiaries filed for Chapter 11 bankruptcy, less than a week after the satellite-launch venture failed to raise enough capital to continue business operations.
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In company news, Apple (AAPL) wasn't able to register part of a trademark for its Apple Music service as a US court ruled in favor of a musician who challenged its application, Reuters reported. Virgin Orbit shares were down over 23%. Chinese regulators are slowing down their merger reviews of proposed acquisitions by US companies, including Intel's (INTC) bid for Tower Semiconductor (TSEM) and MaxLinear's (MXL) proposed takeover of Silicon Motion Technology (SIMO), according to The Wall Street Journal.
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In company news, Apple (AAPL) wasn't able to register part of a trademark for its Apple Music service as a US court ruled in favor of a musician who challenged its application, Reuters reported. Virgin Orbit (VORB) and its US subsidiaries filed for Chapter 11 bankruptcy, less than a week after the satellite-launch venture failed to raise enough capital to continue business operations. Chinese regulators are slowing down their merger reviews of proposed acquisitions by US companies, including Intel's (INTC) bid for Tower Semiconductor (TSEM) and MaxLinear's (MXL) proposed takeover of Silicon Motion Technology (SIMO), according to The Wall Street Journal.
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In company news, Apple (AAPL) wasn't able to register part of a trademark for its Apple Music service as a US court ruled in favor of a musician who challenged its application, Reuters reported. Apple shares ended down about 0.3%. Virgin Orbit shares were down over 23%.
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16499.0
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2023-04-04 00:00:00 UTC
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The 3 Best Defensive Stocks to Buy in April 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-defensive-stocks-to-buy-in-april-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While purchasing a stock may seem simple, selecting the correct one without a tried-and-tested approach can be extremely difficult. Therefore, identifying the optimal stocks to acquire presently or monitor requires careful consideration. In times of increased uncertainty, many investors are rightly turning to defensive stocks as a way to play the current market. Unfortunately, defensive stocks are just about as difficult to pick as any other group.
Defensiveness is key to many investors, in light of the ongoing aggressive policy stance taken by the Federal Reserve. In a bid to stomp out inflation, the Fed has raised rates at its fastest pace in decades. For growth stocks and other interest rate sensitive areas of the economy, this has been bad news.
However, these three companies have held up relatively well and have weathered their fair share of previous crises.
Thus, without further ado, let’s dive into three defensive stocks worth buying in April, for those looking to reposition their portfolios.
JPMorgan Chase (JPM)
Source: Bjorn Bakstad / Shutterstock.com
If you identify as a committed contrarian and value investor, JPMorgan Chase (NYSE:JPM) stock is worth considering. Unlike other financial institutions, the company is not excessively reliant on Treasury bonds, thereby minimizing the risk of failure. Additionally, recent turmoil in the banking sector suggests clients also abandon less trustworthy banks, transferring their deposits to established financial powerhouses such as JPMorgan Chase.
With several mid-sized banks failing in recent weeks, consolidation in the financial sector is taking hold once again. Thus, those bullish on JPM from a growth perspective will certainly like how the bank is positioned in this regard.
That said, it’s JPMorgan’s defensive positioning, and size, which allows the bank the optionality to pursue such deals. We’ll see if any additional buyouts take place in the coming weeks. But for now, the company’s rolling 12-month price-to-earnings ratio of just 10.6-times is attractive, considering the expectations for earnings growth on the horizon.
Sure, we may be headed into a recession, and earnings may decline. Perhaps issues within the banking sector are more widespread than many initially thought. Time will tell with respect to these factors.
That said, I think JPM stock is the best-in-class option in the financials sector for those looking to hunker down. With a yield of 3.07%, investors are paid to be patient and ride out any period of uncertainty from here.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Tech giant Apple (NASDAQ:AAPL) has seen revenues dip due to production constraints and negative macroeconomic conditions, which has caused its share price to stagnate over the past year. Despite this, many investors may rightly be contemplating whether AAPL is worth buying. Indeed, the stock has been on an incredible run to start 2023, and this momentum could continue moving forward.
Apple is currently the most prominent firm worldwide, particularly in terms of market weighting. The tech behemoth has amassed a dedicated following of enthusiasts, with each product launch generating immense hype worldwide, bordering on a cult-like fervor. Indeed, Apple is overall met with great excitement from numerous devoted fans, who often purchase the latest gadgets with unwavering eagerness
The current economic period is characterized by high inflation, escalating interest rates, and sluggish growth, which undoubtedly presents significant challenges. Although a recession would undoubtedly hurt the company’s revenue, investors can still count on consistent demand from consumers who consider Apple’s gadgets crucial.
As a result, Apple might navigate through an economic downturn with minimal damage, while reaping the rewards of elevated demand when the economy eventually picks up. There are numerous appealing aspects to investing in AAPL. That said, the company’s status as one of the best defensive stocks to buy now can’t be debated.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Coca-Cola (NYSE:KO) is an ideal option for those seeking a dependable, defensive stock with a steady dividend. The well-known beverage company, favored by Warren Buffett, has gained a significant following as an attractive investment opportunity. With a negligible fall from its peak, and a stock price that’s still hovering around the top end of its five-year band, KO stock is trading at a valuation that’s near its all-time high.
So, then, why is now a great time to consider Coca-Cola?
Well, many of the same arguments are true for KO as with the other stocks on this list. Coca-Cola is one of the world-class defensive stocks that investors flock to in times of trouble. Indeed, as a bastion of stability for top investors, this company has proven its ability to provide very consistent returns over decades. Most other companies can’t say the same thing.
Coke’s business model is less-cyclical, as beverages and snack items sell in good economic times and bad. Thus, Coke’s growth rate has been closely correlated to its ability to grow market share and acquire other brands over time.
I think the underlying investment thesis with owning KO stock remains intact. As far as long-term defensive stocks are concerned, Coca-Cola remains a top pick of mine.
On the date of publication, Chris MacDonald has a position in AAPL, KO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post The 3 Best Defensive Stocks to Buy in April 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) has seen revenues dip due to production constraints and negative macroeconomic conditions, which has caused its share price to stagnate over the past year. Despite this, many investors may rightly be contemplating whether AAPL is worth buying. There are numerous appealing aspects to investing in AAPL.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) has seen revenues dip due to production constraints and negative macroeconomic conditions, which has caused its share price to stagnate over the past year. Despite this, many investors may rightly be contemplating whether AAPL is worth buying. There are numerous appealing aspects to investing in AAPL.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) has seen revenues dip due to production constraints and negative macroeconomic conditions, which has caused its share price to stagnate over the past year. Despite this, many investors may rightly be contemplating whether AAPL is worth buying. There are numerous appealing aspects to investing in AAPL.
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Despite this, many investors may rightly be contemplating whether AAPL is worth buying. On the date of publication, Chris MacDonald has a position in AAPL, KO. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Tech giant Apple (NASDAQ:AAPL) has seen revenues dip due to production constraints and negative macroeconomic conditions, which has caused its share price to stagnate over the past year.
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