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16500.0
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2023-04-04 00:00:00 UTC
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Best & Worst Performing ETF Areas of Q1 2023
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AAPL
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https://www.nasdaq.com/articles/best-worst-performing-etf-areas-of-q1-2023
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A volatile first quarter ended on a strong note for stocks. The Nasdaq posted its strongest quarter since the second quarter of 2020, up more than 20%. The S&P 500 gained 8%, while the Dow returned just about 1%.
Technology and Communication Services were the best performing sectors, followed by Consumer Discretionary. Financials and Energy were the biggest losers.
Tech stocks have been in favor this year as investors believe that the Fed could stop raising rates soon. These stocks also benefited from their safe-haven status amid banking turmoil.
Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively.
Bitcoin soared more than 70% sending the Valkyrie Bitcoin Miners ETF WGMI over 100% during the quarter. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs.
The Noble Absolute Return ETF NOPE plunged about 62% as the hedge fund like ETF made some ill-timed bets.
Regional banks, natural gas, nickel, and cannabis related ETFs were also among the worst performing areas.
To learn more, please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
iShares Semiconductor ETF (SOXX): ETF Research Reports
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
Roundhill Ball Metaverse ETF (METV): ETF Research Reports
Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports
Roundhill Cannabis ETF (WEED): ETF Research Reports
Noble Absolute Return ETF (NOPE): 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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Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs.
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Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. The Noble Absolute Return ETF NOPE plunged about 62% as the hedge fund like ETF made some ill-timed bets.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Financials and Energy were the biggest losers.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs.
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16501.0
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2023-04-04 00:00:00 UTC
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Land a Knockout Punch Against the Bear Market RIGHT NOW!
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AAPL
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https://www.nasdaq.com/articles/land-a-knockout-punch-against-the-bear-market-right-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “Land a Knockout Punch Against the Bear Market RIGHT NOW!” was previously published in January 2023. It has since been updated to include the most relevant information available.
Back in January of this year, I got to unveil the best kept secret on Wall Street – a secret that could help you make big money in any market.
The story here is pretty simple.
Almost two years ago, my team of Caltech quants and I started to get a little bit worried about the state of the stock market. We seemed to be running on “borrowed time,” if you will, and a market downturn appeared imminent.
So, in late summer 2021, we set out to create an algorithmic trading system designed to win big even in a down market. That is, on the idea that there’s always a bull market somewhere (even in broader bear markets), we started to build a system purpose-built to find hidden bull markets in preparation for a coming bear market.
Almost two years later, that bear market struck with full force. It kicked most investors in the teeth and crushed most stock portfolios.
But, also two years later, we’ve finished this bear-market-crushing trading system.
We’ve tested it – in real time – over the past eight months. And its results have blown us away. By using this system, we have been able to identify multiple stocks that have soared 300% or more in a matter of months.
Said differently…
Our greatest weapon to fight back against this bear market has finally arrived!
Every Stock Follows a Pattern
The best-kept secret on Wall Street is that every stock follows a similar pattern. And understanding this secret is the key to consistently scoring big profits in the stock market.
Specifically, every stock goes through four stages:
Stage 1: Consolidation (Basing). This is when a stock is stuck in neutral, and moving sideways, bouncing around a lot but ultimately going nowhere. It’s basically when a stock is neither good nor bad, but simply waiting for something good or bad to happen.
Stage 2: Breakout (Advancing). This is when a stock starts to breakout from its basing phase and starts to move significantly higher. At this stage, the stock is usually benefitting from a lot of good news flows and investors are rushing into the stock hand over fist.
Stage 3: Distribution (Topping). This is when a stock’s uptrend starts to end. The good news flow starts to ease. Investors who bought in Stage 1 and 2 start to take some profits off the table. But the stock isn’t falling, yet. New money is still supporting the stock in a consolidation pattern.
Stage 4: Correction (Declining). This is when the topping pattern breaks, and everyone starts to sell. The stock starts to move significantly lower and in a rapid fashion. It’s the opposite of Stage 2.
Eventually, all stocks in Stage-4 declines stop falling and enter a Stage-1 basing pattern, at which point the cycle starts all over again. Lather. Rinse. Repeat.
That may sound like an oversimplification. But believe it or not, every stock does actually follow this pattern.
Let me show you an example.
Shopify in Its Four Stages
Let’s look at one of the market’s most popular stocks, e-commerce solutions provider Shopify (SHOP).
Shopify stock has been on Wall Street since 2015. Through those seven years, the stock has predictably followed the four stages outlined above. Investors who were able to recognize this would’ve scored gains of 259% and 805% on separate occasions in Shopify stock. Just as important, they would’ve sold before the stock collapsed more than 80% earlier this year!
Let’s look at the chart to see what I’m talking about.
Shopify stock went public in early 2015. It spent most of its first year on Wall Street in Stage 1 (yellow channel in the chart below), bouncing between the same local maximums and minimums.
But then, in 2016, Shopify stock broke above its Stage-1 resistance line and entered a Stage-2 breakout. This is when you should’ve bought the stock. Over the next two years, SHOP soared 260%!
Source: Bloomberg
Shopify stock then took a breather and entered another consolidation period in 2018. This was a Stage-3 topping pattern. At this point, you sell the stock because the rally is over, and the next move is either a Stage-4 decline or another Stage-2 breakout.
Well, the next move ended up being another breakout, with Shopify stock soaring above its Stage 3 resistance line in early 2019. This is when you would buy the stock. Over the next nearly ~30 months, Shopify stock remained in a massive Stage-2 breakout and popped more than 800%!
That rally ended in mid-2021, with upward momentum slowing and Shopify stock entering another Stage-3 topping pattern. This is your sell trigger. Book the 800% profits, and wait for the next signal.
The next signal came in late 2021. Shopify stock broke down. And for the first time in its life on Wall Street, it entered a big Stage-4 decline. This is when you either stay away from the stock or short it. Between late 2021 and mid-2022, Shopify stock dropped 80%.
By following stage analysis, you would’ve avoided this catastrophic crash.
Now, Shopify stock’s ugly Stage-4 decline is over, and, predictably, the stock is in a Stage-1 basing pattern. We are watching the stock very closely here. Soon, it will either stage a big breakout and enter Stage 2 (buy signal) or it will break down and go back into Stage 4 (sell signal).
Either way, by following stage analysis, we should be able to make big money off Shopify stock over the next few months.
The Final Word on Profiting in a Bear Market
By now, you understand the power of stage analysis.
Shopify stock is just an example. You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (META), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results.
Stage analysis works with every stock. And it’s the key to getting rich on Wall Street.
There’s just one tiny problem: It’s really hard to run stage analysis on every stock in the market. There are over 10,000 U.S. stocks. Manually performing stage analysis on one stock can take hours. Doing it on 10,000-plus stocks would take a lifetime.
That’s why we’ve automated that process.
Specifically, we’ve programmed an algorithmic model which automatically runs stage analysis on every stock in the market.
Every single week, more than 10,000 stocks are fed through our model. It runs stage analysis on every single one of them, and produces a list of stock candidates which may be on the cusp of entering Stage 2 breakouts.
It’s a heavy-duty model. It’s all programmatic and automatic, yet it still takes more than six hours to fully run. This is probably the most advanced trading model ever developed at InvestorPlace.
And we use this system to consistently find the fastest-moving and highest-flying stocks on Wall Street for quick gains.
Already, even in a rocky environment, the system is crushing it – and we just now entered a bull market.
I mean, last week, our system found a tiny stock that none of our analysts had ever heard of – and now, it’s already up about 12%.
Last month, it found an AI stock that popped 40% in about a week.
Before that, it found a resources stock that soared 45% in just a few weeks and a biotech stock that roared 100% higher in a little over a month.
Point being: This system works. And it repeatedly produced those types of gains, even in a bear market.
Imagine what it will be capable of during a fortune-making bear-to-bull transition …
That’s why, tomorrow afternoon, we are giving you an exclusive chance to gain direct access to this system and its breakout stock picks.
It could be your key to scoring huge returns in 2023 – and beyond.
Reserve your seat now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Land a Knockout Punch Against the Bear Market 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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You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (META), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results. So, in late summer 2021, we set out to create an algorithmic trading system designed to win big even in a down market. It spent most of its first year on Wall Street in Stage 1 (yellow channel in the chart below), bouncing between the same local maximums and minimums.
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You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (META), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results. Well, the next move ended up being another breakout, with Shopify stock soaring above its Stage 3 resistance line in early 2019. Soon, it will either stage a big breakout and enter Stage 2 (buy signal) or it will break down and go back into Stage 4 (sell signal).
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You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (META), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “Land a Knockout Punch Against the Bear Market RIGHT NOW!” was previously published in January 2023. Every Stock Follows a Pattern The best-kept secret on Wall Street is that every stock follows a similar pattern.
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You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (META), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results. Soon, it will either stage a big breakout and enter Stage 2 (buy signal) or it will break down and go back into Stage 4 (sell signal). Either way, by following stage analysis, we should be able to make big money off Shopify stock over the next few months.
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16502.0
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2023-04-04 00:00:00 UTC
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Apple Music trademark application blocked by U.S. appeals court
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AAPL
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https://www.nasdaq.com/articles/apple-music-trademark-application-blocked-by-u.s.-appeals-court
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nan
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By Blake Brittain
April 4 (Reuters) - Apple Inc AAPL.O lost a bid to register part of a federal trademark for "Apple Music" on Tuesday after a U.S. appeals court ruled for a jazz musician who challenged the tech giant's application.
The U.S. Court of Appeals for the Federal Circuit rejected Apple's argument that it had priority over trumpeter Charlie Bertini's "Apple Jazz" trademark rights based on its ownership of an earlier trademark from the Beatles' music label Apple Corps Ltd.
The court allowed Bertini to block Apple's bid for a federal Apple Music trademark covering live performances, one of several trademark uses Apple sought to secure.
Bertini's attorney, his brother James Bertini, said they were pleased with the decision after a "long and difficult struggle."
"Perhaps this decision will also help other small companies to protect their trademark rights," the attorney said.
Representatives for Apple did not immediately respond to a request for comment.
Apple launched its streaming service in 2015 and applied the same year for a federal "Apple Music" trademark covering several categories of music and entertainment services. Bertini opposed the application, arguing the name would cause confusion with the "Apple Jazz" branding he had used since 1985 to advertise concerts.
Both sides agreed that Apple's mark would likely confuse consumers. But a U.S. Trademark Office tribunal ruled for Apple in 2021, finding it had earlier rights to the name based on a 1968 "Apple" trademark for sound recordings it purchased from Apple Corps in 2007.
A unanimous Federal Circuit panel reversed the decision to dismiss Bertini's opposition Tuesday. It said Apple could not "tack" its trademark rights for live performances to the Apple Corps trademark for sound recordings, a different category of goods.
"Tacking a mark for one good or service does not grant priority for every other good or service in the trademark application," the court said.
The case is Bertini v. Apple Inc, U.S. Court of Appeals for the Federal Circuit, No. 21-2301.
(Reporting by Blake Brittain in Washington Editing by David Bario)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain April 4 (Reuters) - Apple Inc AAPL.O lost a bid to register part of a federal trademark for "Apple Music" on Tuesday after a U.S. appeals court ruled for a jazz musician who challenged the tech giant's application. Bertini opposed the application, arguing the name would cause confusion with the "Apple Jazz" branding he had used since 1985 to advertise concerts. A unanimous Federal Circuit panel reversed the decision to dismiss Bertini's opposition Tuesday.
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By Blake Brittain April 4 (Reuters) - Apple Inc AAPL.O lost a bid to register part of a federal trademark for "Apple Music" on Tuesday after a U.S. appeals court ruled for a jazz musician who challenged the tech giant's application. The court allowed Bertini to block Apple's bid for a federal Apple Music trademark covering live performances, one of several trademark uses Apple sought to secure. It said Apple could not "tack" its trademark rights for live performances to the Apple Corps trademark for sound recordings, a different category of goods.
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By Blake Brittain April 4 (Reuters) - Apple Inc AAPL.O lost a bid to register part of a federal trademark for "Apple Music" on Tuesday after a U.S. appeals court ruled for a jazz musician who challenged the tech giant's application. The U.S. Court of Appeals for the Federal Circuit rejected Apple's argument that it had priority over trumpeter Charlie Bertini's "Apple Jazz" trademark rights based on its ownership of an earlier trademark from the Beatles' music label Apple Corps Ltd. The court allowed Bertini to block Apple's bid for a federal Apple Music trademark covering live performances, one of several trademark uses Apple sought to secure.
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By Blake Brittain April 4 (Reuters) - Apple Inc AAPL.O lost a bid to register part of a federal trademark for "Apple Music" on Tuesday after a U.S. appeals court ruled for a jazz musician who challenged the tech giant's application. The U.S. Court of Appeals for the Federal Circuit rejected Apple's argument that it had priority over trumpeter Charlie Bertini's "Apple Jazz" trademark rights based on its ownership of an earlier trademark from the Beatles' music label Apple Corps Ltd. Bertini's attorney, his brother James Bertini, said they were pleased with the decision after a "long and difficult struggle."
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16503.0
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2023-04-04 00:00:00 UTC
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The 7 Best Forever Stocks to Buy for April 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-best-forever-stocks-to-buy-for-april-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The good thing about forever stocks is you only have to buy them once.
A passive, long-term approach to investing has several advantages. For one, it doesn’t rely on predicting difficult, if not impossible, short-term fluctuations.
Buying forever stocks results in a stable core portfolio of investments that repeatedly provide better returns than actively managed investments.
Buying forever stocks is the strategy of legendary names including Warren Buffett and Jack Bogle among others.
The strategy requires a firm belief in the value of well-run companies with established businesses. Most of the forever stocks below have been around for several decades at least.
But there’s also reason to believe that younger companies are worthy of taking a long-term view as well.
MA Mastercard $366.09
MELI MercadoLibre $1,312.08
AAPL Apple $166.06
KO Coca-Cola $62.40
JPM JPMorgan Chase $130.16
COST Costco $497.03
MO Altria $44.98
Mastercard (MA)
Source: David Cardinez / Shutterstock.com
Investing in Mastercard (NYSE:MA) stock right now is a simple decision as this is one of the forever stocks that has staying power. The company is an integral part of the consumer finance industry and connects businesses, consumers, and merchants to one another via payments.
In 2022, Mastercard’s business boomed for a few reasons. When Covid-era restrictions vanished, international travel increased dramatically. Mastercard saw its cross-border volume increase by 45% in 2022. Overall, consumers used their credit cards more, resulting in revenues that increased by 18% at the company.
With consumer credit card debt again reaching new heights post-pandemic, Mastercard looks to be in a sound position.
It wouldn’t be surprising if Mastercard receives very high fee income moving forward if delinquencies rise and higher charges ensue.
It’s difficult to see that not occurring as savings are drawn down and credit card use spikes. The signs are clear and macroeconomic realities make it a good time to buy MA stock.
MercadoLibre (MELI)
Source: rafapress / Shutterstock.com
MercadoLibre (NASDAQ:MELI) is an outlier relative to other stocks on this list. The eCommerce company is by far the youngest listed here and has a far shorter track record.
It is established and stable but is lacking relative to other firms. However, its progress and potential make it a long-term buy despite its relative youth.
The company is the eCommerce champion of the Latin-American region, often referred to as the region’s Amazon.
When you look into the company’s growth and metrics, it’s easy to draw such a comparison. MercadoLibre’s eCommerce revenues grew by an astounding 56.6% in Q4, to $3.0 billion.
Its fintech/payments business is especially impressive, having processed $36 billion of payments, up 80% on a year-over-year basis.
And MercadoLibre continues transforming its logistics into a world-class operation. It handles 2.5X the volume it did in 2019 and now delivers 80% of packages in 48 hours, up from 44% in 2019.
That snapshot of short-term wins alludes to a much greater narrative being built with long term success in mind.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) has been among the greatest success stories in the recent history of the stock market. It has grown at an average annual rate of 27.2% over the past decade.
As a result, it is now the world’s most valuable company based on market capitalization.
The past decade was extraordinarily kind to growth firms, as interest rates remained near zero. While that certainly contributed to Apple’s massive growth during the period, the next decade will undoubtedly be different. T
hat doesn’t mean Apple can’t provide strong returns. The iPhone, Mac, and iPad seller has become integral to society.
My colleague Will Ashworth expects Apple to grow at an annual rate close to 20% over the next decade. That rate will multiply any investment’s value and is a return any investor would gladly receive.
AAPL stock remains the biggest component of Warren Buffett’s portfolio by a long shot. That alone should tell investors a lot about its long-term prospects.
Coca-Cola (KO)
Source: MAHATHIR MOHD YASIN / Shutterstock.com
One way to choose forever stocks is buying iconic brands like Coca-Cola (NYSE:KO). That such companies have been around for so long and have become inseparable from our society speaks volumes.
Those factors suggest that demand is unlikely to decline simply because of how deeply ingrained the company is within our culture. In actuality, no brand may be more iconic than Coca-Cola. Therefore, it’s likely to continue to flourish.
Demand for Coca-Cola brand products grew by 5% in 2022 based on unit case volume. That led to a sales increase of 11%.
However, in Q4 demand actually declined by 1% contradicting my thesis above. The good news is that the companywide revenues increased by 7% in the quarter despite sagging volume.
Whatever the case, KO stock has emerged as an ultra-dependable investment, especially over the past year.
Its dividend is as sure as they come having last been reduced in 1963. It will provide income forever and likely share price appreciation at the same time.
JPMorgan Chase (JPM)
Source: Daryl L / Shutterstock.com
JPMorgan Chase (NYSE:JPM) is the biggest U.S. bank and the third largest bank globally. In recent weeks, it has emerged as a sort of backstop for weaker banks across the U.S.
The firm now looks to become even stronger as a result of overall regional bank weakness. JPMorgan Chase’s dominant position will only increase as a result of current turmoil. It will extend its lead over the U.S. banking sector in the coming years.
The bank recently led the charge to infuse First Republic Bank (NYSE:FRC) with capital. Big banks are better run than they were in the last financial meltdown.
But regional banks lacking in risk management and regulatory oversight foundered. The result played out over the past few weeks.
JPM stock is one of the primary beneficiaries of the debacle. Deposits flooded in following the Silicon Valley Bank collapse. The company is now perceived as a bastion of security in the banking sector.
Costco (COST)
Source: Shutterstock
Costco (NASDAQ:COST) stock has received a lot of attention over the last year as Americans’ finances have weakened. Consumers are seeking deals anywhere they can and Costco’s bulk foods fit that bill.
Costco isn’t just a short-term value. Over the past decade, it has provided a 19.3% average annual return.
Costco currently operates 848 warehouses globally. It is currently the 3rd largest U.S. retailer behind only Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) and the 6th largest globally.
Another thing to note is just how quickly Costco has grown more than doubling its revenue base between 2014 and 2022.
Over the last 24 weeks, sales have grown by 5.9% and 6.8% in the last 12 weeks. Costco simply has so much going that it seems obvious to bet on the company over the long term. Currently, analysts expect approximately $50 of upside beyond its $495 share price over the next 12-18 months.
Altria (MO)
Source: viewimage / Shutterstock.com
Altria (NYSE:MO) remains a very interesting stock to invest in right now. On the one hand, the tobacco giant is clearly facing problems. The war on smoking is working and Altria saw revenues decline by 3.5% in 2022 and 2.3% in the fourth quarter.
The company has rebranded itself toward a primarily smoke-free future. It is enticing current investors with heavy share repurchases and high-yield dividends while also purchasing assets in growth areas.
The company completed its $3.5 billion share repurchase program at the end of 2022 and authorized a new $1 billion share repurchase program.
Altria paid $6.6 billion in dividends in 2022 alone. That dividend currently yields 8.44% and hasn’t been reduced since 1970(2).
But Altria must continue moving into smoke free tobacco. Falling revenues necessitate it. The company purchased vape brand NJOY Holdings recently.
People will continue to use nicotine whether in cigarette form or vapes or whatever else can be created to deliver it. That simple fact means Altria should continue to provide investor returns even as cigarette sales decline.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post The 7 Best Forever Stocks to Buy for 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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MA Mastercard $366.09 MELI MercadoLibre $1,312.08 AAPL Apple $166.06 KO Coca-Cola $62.40 JPM JPMorgan Chase $130.16 COST Costco $497.03 MO Altria $44.98 Mastercard (MA) Source: David Cardinez / Shutterstock.com Investing in Mastercard (NYSE:MA) stock right now is a simple decision as this is one of the forever stocks that has staying power. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has been among the greatest success stories in the recent history of the stock market. AAPL stock remains the biggest component of Warren Buffett’s portfolio by a long shot.
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MA Mastercard $366.09 MELI MercadoLibre $1,312.08 AAPL Apple $166.06 KO Coca-Cola $62.40 JPM JPMorgan Chase $130.16 COST Costco $497.03 MO Altria $44.98 Mastercard (MA) Source: David Cardinez / Shutterstock.com Investing in Mastercard (NYSE:MA) stock right now is a simple decision as this is one of the forever stocks that has staying power. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has been among the greatest success stories in the recent history of the stock market. AAPL stock remains the biggest component of Warren Buffett’s portfolio by a long shot.
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MA Mastercard $366.09 MELI MercadoLibre $1,312.08 AAPL Apple $166.06 KO Coca-Cola $62.40 JPM JPMorgan Chase $130.16 COST Costco $497.03 MO Altria $44.98 Mastercard (MA) Source: David Cardinez / Shutterstock.com Investing in Mastercard (NYSE:MA) stock right now is a simple decision as this is one of the forever stocks that has staying power. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has been among the greatest success stories in the recent history of the stock market. AAPL stock remains the biggest component of Warren Buffett’s portfolio by a long shot.
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MA Mastercard $366.09 MELI MercadoLibre $1,312.08 AAPL Apple $166.06 KO Coca-Cola $62.40 JPM JPMorgan Chase $130.16 COST Costco $497.03 MO Altria $44.98 Mastercard (MA) Source: David Cardinez / Shutterstock.com Investing in Mastercard (NYSE:MA) stock right now is a simple decision as this is one of the forever stocks that has staying power. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has been among the greatest success stories in the recent history of the stock market. AAPL stock remains the biggest component of Warren Buffett’s portfolio by a long shot.
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16504.0
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2023-04-04 00:00:00 UTC
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COLUMN-Is it time to embrace Congo's artisanal cobalt miners? Andy Home
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https://www.nasdaq.com/articles/column-is-it-time-to-embrace-congos-artisanal-cobalt-miners-andy-home
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By Andy Home
LONDON, April 4 (Reuters) - The problems around artisanal cobalt mining in Democratic Republic of Congo (DRC) will take "a coalition to solve", according to Microsoft MSFT.O.
The $1.9 trillion U.S. tech giant was recently in the DRC to see what the other end of the consumer electronics supply chain looks like.
Microsoft chief of staff, tech and corporate responsibility Michele Burlington paid a visit in December to the Mutoshi artisanal mining site, where up to 15,000 miners, including children, are working in highly dangerous conditions.
The irony is that Mutoshi was a highly successful pilot scheme for formalising artisanal workers until it was closed in 2020 due to coronavirus restrictions.
The site's subsequent deterioration sums up the Congolese government's struggle to realise its vision of integrating the entire artisanal cobalt workforce into the official sector.
Yet the West still needs Congo's cobalt and everyone agrees that formalisation is the solution to the high human and economic costs of artisanal mining.
Microsoft's reference to a coalition suggests a collective rethink is under way, not least by a U.S. government desperate to loosen China's grip on the cobalt market.
ETHICAL DILEMMA
The ethical dilemma facing Western cobalt users, which is just about everyone with a mobile phone, is headline news again after the publication of "Cobalt Red" by Siddarth Kara.
The book's subtitle - "How the blood of the Congo powers our lives" - captures both the horrors of informal cobalt mining and the near impossibility of keeping tainted ore out of the formal supply stream.
Kara's searing first-hand accounts of artisanal life are validated by an independent report published in February by Dorothée Baumann-Pauly, the director of the Geneva Center for Business and Human Rights, on the current conditions at Mutoshi.
The report noted an increase in artisanal miners from 5,000 under the two-year formalisation scheme to 15,000, a renewed exclusion of the female workforce, the return of child workers and a rapid deterioration in safety conditions as miners switched back from open-cast to tunnel mining.
The local artisanal cooperative reported five deaths in November alone, compared with zero under the formalisation experiment.
The ore that was once sold for processing directly to Chemaf, owner of the site, and its marketing partner, Trafigura, is now being sold to middle men, mostly Chinese, for onward sale to processors, also mostly Chinese.
Mutoshi's artisanal miners have lost their collective pricing power and their cobalt is once again flowing down opaque channels into the industrial supply chain, the report claims.
Most of the country's estimated 150,000-200,000 cobalt miners have never even had the chance of formalisation.
The government launched the Enterprise Generale du Cobalt in 2021, aiming to formalise the entire sector and buy all its output, but the initial drive ran aground in Congo's regional power politics.
A CRITICAL DEPENDENCE
The Western response to its cobalt dilemma has been either to try to not use it at all or to avoid any supply tainted with artisanal mining in Congo.
Apple AAPL.O, for example, has said that 13% of the cobalt shipped in its products in 2021 came from recycling.
Electric vehicle (EV) makers are embracing non-cobalt battery chemistries such as lithium-iron-phosphate.
But around 74% of the EV battery market is still using the metal for its energy density, safety and performance attributes, according to The Cobalt Institute, and the EV sector is still expanding fast.
Global usage surged by 22% in 2021 and is forecast by the Institute to grow by around 13% a year for the next five years.
The world is going to need a lot more cobalt and right now it's China that will supply it.
The country accounts for around 72% of global processing capacity, much of it fed with Congolese ore, both from Chinese industrial operators and the informal sector via the shadow middle-man market.
WESTERN COALITION
China's supply-chain dominance is a headache for both the United States and Europe, which have identified cobalt as a critical mineral.
A collapse in the cobalt price OCBc1 from over $40 per lb a year ago to a current $17 per lb, largely due to over-production in Congo, has made it more difficult to bring on new Western supply.
Jervois Global JRV.AX has just announced the suspension of the final construction stage of its Idaho cobalt project due to the combination of low price and higher input costs.
The only obvious source of immediate large-scale supply remains Congo, which accounts for around 70% of global production.
Congo's metallic riches place it at the heart of the great game that is playing out between West and East as they seek control of the critical minerals needed to decarbonise.
The United States signed in December a memorandum of understanding (MOU) with Congo and Zambia to jointly develop a supply chain for EV batteries.
The MOU "opens the door for open and transparent investment to build value-added and sustainable industry in Africa and creating a just energy transition for workers and local communities," the U.S. State Department said.
One local community just happens to account for around 12% of cobalt production in the world's largest producing nation. It is the same community at the heart of the West's ethical dilemma about artisanal working conditions.
Formalising the sector could help solve both problems.
It will, as Microsoft pointed out, need a coalition of government, industrial producers prepared to offer sites for artisanal workers, battery makers and the big brands at the end of the cobalt supply chain.
And us, the ultimate consumer.
Integrating artisanal mining is expensive. Chemaf used industrial excavation equipment to create the open pits mined under the pilot scheme at Mutoshi. It was much safer than tunnelling but expensive at $50,000 per round and had to be repeated every six months, according to Baumann-Pauly's report.
The Western consumer's desire to pay a premium for responsibly sourced cobalt may be the ultimate test of whether a Western coalition can simultaneously loosen China's grip on the cobalt market and alleviate the plight of Congo's artisanal miners.
The opinions expressed here are those of the author, a columnist for Reuters.
(Writing by Andy Home; Editing by Susan Fenton)
((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))
The views and 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.O, for example, has said that 13% of the cobalt shipped in its products in 2021 came from recycling. Microsoft chief of staff, tech and corporate responsibility Michele Burlington paid a visit in December to the Mutoshi artisanal mining site, where up to 15,000 miners, including children, are working in highly dangerous conditions. Kara's searing first-hand accounts of artisanal life are validated by an independent report published in February by Dorothée Baumann-Pauly, the director of the Geneva Center for Business and Human Rights, on the current conditions at Mutoshi.
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Apple AAPL.O, for example, has said that 13% of the cobalt shipped in its products in 2021 came from recycling. By Andy Home LONDON, April 4 (Reuters) - The problems around artisanal cobalt mining in Democratic Republic of Congo (DRC) will take "a coalition to solve", according to Microsoft MSFT.O. It is the same community at the heart of the West's ethical dilemma about artisanal working conditions.
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Apple AAPL.O, for example, has said that 13% of the cobalt shipped in its products in 2021 came from recycling. Mutoshi's artisanal miners have lost their collective pricing power and their cobalt is once again flowing down opaque channels into the industrial supply chain, the report claims. It will, as Microsoft pointed out, need a coalition of government, industrial producers prepared to offer sites for artisanal workers, battery makers and the big brands at the end of the cobalt supply chain.
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Apple AAPL.O, for example, has said that 13% of the cobalt shipped in its products in 2021 came from recycling. The Western response to its cobalt dilemma has been either to try to not use it at all or to avoid any supply tainted with artisanal mining in Congo. It is the same community at the heart of the West's ethical dilemma about artisanal working conditions.
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16505.0
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2023-04-04 00:00:00 UTC
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PayPal Near Its Cheapest Valuation Over the Past 10 Years -- Is It a Buy?
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AAPL
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https://www.nasdaq.com/articles/paypal-near-its-cheapest-valuation-over-the-past-10-years-is-it-a-buy
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PayPal (NASDAQ: PYPL) started the year by rising 24% to an intraday high of $88.63 on Feb. 2, as many optimistic investors believed the Federal Reserve was close to ending its relentless rate hikes and the economy could achieve a soft landing -- an excellent scenario for this business. However, investors lost interest in the company after subsequent events showed the chances were high the economy would instead have a hard landing, a sharp economic slowdown. As a result, investors worry about a further deterioration in PayPal's revenue growth.
Now that today's stock price is closer to where it started the year, should you use the pullback in the stock's price to buy, or should you sit on the sidelines and wait until the danger of recession has passed?
Let's take a look at that question.
The top dog in e-commerce payments
PayPal started in 1998 and was among the first to market payment services between merchants and consumers in the then-emerging e-commerce industry. Thus, it established strong brand recognition and customer loyalty well before significant competition appeared.
Additionally, because it operates on both sides of the payment transaction, it enjoys a two-sided network effect.
The value the consumer gains from using its network is determined by how many merchants accept payments from PayPal. Conversely, the number of consumers who use the payment service determines the platform's worth for merchants. Thus, the value of the payment platform increases with each new consumer or merchant joining the network.
PayPal used these two competitive advantages to increase its total payment volume through its platform to $1.36 trillion in fiscal 2022 -- making it a powerful global payments platform.
As of September 2022, PayPal is the No. 1 player in the online payments industry, with a market share of about 42%, according to market research company Statista. Considering the company's dominance in online payments, it makes you wonder why investors have abandoned the stock over the past 18 months or so.
A poor economic environment and increased competition
Growth investors familiar with seeing the company producing double-digit percentage revenue growth started aggressively selling their shares in late 2021 into 2022 as revenue growth began its steep fall into the single digits, as shown in the following chart.
PYPL Revenue (Quarterly YoY Growth) Data source: YCharts
Quarterly reports over the past year have not helped investors feel better about the company. For instance, its fourth-quarter 2022 results continued to show several deteriorating key metrics, despite the headlines of revenue and earnings beating analysts' expectations.
For example, the growth of active accounts, defined as registered PayPal accounts that completed a transaction over its network within the last 12 months, slowed to a crawl, showing only 2% growth compared to the previous year's 13% year-over-year growth. In addition, TPV showed a sharp deceleration from 23% year-over-year growth in the fourth quarter of 2021 to a measly 5% in the fourth quarter of 2022 -- yikes!
No wonder revenue growth fell off a cliff. Management has blamed the deterioration of active accounts, TPV, and revenue on multiple factors, including a weaker macro economy and slowing e-commerce growth.
Investors have also recently been displeased with the company's operating margins, thinking a savvy management team and its competitive advantages would build a moat around PayPal's profitability. Yet, operating margins began deteriorating starting in July 2021, as seen in the chart below (though they've rebounded some in the past few quarters).
PYPL Operating Margin (Quarterly) data by YCharts
Many believe PayPal's deteriorating fundamentals have causes beyond just a cyclical downturn. The company's competitive advantages may have eroded, resulting in it spending more to stave off its adversaries, which decreases operating margins.
On the merchant side, PayPal faces competition from companies like Stripe, and on the consumer side, platforms like Apple Pay are chipping away at its payment dominance. Shareholders also worry about Block competing on both sides of the payment transaction, with Square on the merchant side and Cash App on the consumer side.
Why you should put PayPal on your buy list
Despite the competition, PayPal is still the lead dog and a preferred only payments partner. Revenue growth probably will recover once e-commerce growth rebounds -- but when that occurs is anyone's guess. The good news is that this management team has focused on things it can control, which is cutting costs in areas not producing enough bang for the buck while fully staffing and funding the most productive areas of the company to pursue profitable growth.
PayPal is already seeing progress in its cost-cutting initiatives, resulting in its non-GAAP (generally accepted accounting principles) operating margin widen by 115 basis points year over year to 22.9%, up sequentially for two straight quarters. Meanwhile, it continues to invest in its most-promising growth initiatives like the modernization of the checkout experience; scaling growth at Braintree, a PayPal-owned payments processor; and fully ramping up its unbranded service to small and mid-sized businesses. The unbranded service is its checkout technology that appears on a third-party merchant's website without displaying the PayPal button.
PayPal today trades at a price-to-sales (P/S) ratio of 3.12, hovering near its lowest valuation since its separation from eBay in 2015.
Suppose you believe PayPal's revenue growth will bounce back to double digits percentages once the global economy improves and e-commerce growth rebounds. Through continued cost control, the company should achieve solid margins and increase profits rapidly, making today's valuation look mighty tempting to an investor. And it would be a great time to grab a few shares of this undervalued stock.
10 stocks we like better than PayPal
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Rob Starks Jr has positions in Block. The Motley Fool has positions in and recommends Apple, Block, and PayPal. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, 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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PayPal (NASDAQ: PYPL) started the year by rising 24% to an intraday high of $88.63 on Feb. 2, as many optimistic investors believed the Federal Reserve was close to ending its relentless rate hikes and the economy could achieve a soft landing -- an excellent scenario for this business. Investors have also recently been displeased with the company's operating margins, thinking a savvy management team and its competitive advantages would build a moat around PayPal's profitability. Through continued cost control, the company should achieve solid margins and increase profits rapidly, making today's valuation look mighty tempting to an investor.
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PYPL Operating Margin (Quarterly) data by YCharts Many believe PayPal's deteriorating fundamentals have causes beyond just a cyclical downturn. Through continued cost control, the company should achieve solid margins and increase profits rapidly, making today's valuation look mighty tempting to an investor. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, and short March 2023 $130 calls on Apple.
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A poor economic environment and increased competition Growth investors familiar with seeing the company producing double-digit percentage revenue growth started aggressively selling their shares in late 2021 into 2022 as revenue growth began its steep fall into the single digits, as shown in the following chart. For example, the growth of active accounts, defined as registered PayPal accounts that completed a transaction over its network within the last 12 months, slowed to a crawl, showing only 2% growth compared to the previous year's 13% year-over-year growth. On the merchant side, PayPal faces competition from companies like Stripe, and on the consumer side, platforms like Apple Pay are chipping away at its payment dominance.
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As a result, investors worry about a further deterioration in PayPal's revenue growth. The top dog in e-commerce payments PayPal started in 1998 and was among the first to market payment services between merchants and consumers in the then-emerging e-commerce industry. That's right -- they think these 10 stocks are even better buys.
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16506.0
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2023-04-04 00:00:00 UTC
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Bill Gates says calls to pause AI won't 'solve challenges'
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AAPL
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https://www.nasdaq.com/articles/bill-gates-says-calls-to-pause-ai-wont-solve-challenges
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By Jennifer Rigby
LONDON, April 4 (Reuters) - Calls to pause the development of artificial intelligence will not “solve the challenges” ahead, Microsoft co-founder Bill Gates told Reuters, his first public comments since an open letter sparked a debate about the future of the technology.
The technologist-turned-philanthropist said it would be better to focus on how best to use the developments in AI, as it was hard to understand how a pause could work globally.
His interview with Reuters comes after an open letter -- published last week and co-signed by Elon Musk and more than 1,000 AI experts – demanded an urgent pause in the development of systems "more powerful" than Microsoft-backed MSFT.O OpenAI's new GPT-4, which can hold human-like conversation, compose songs and summarise lengthy documents.
The experts, including Apple AAPL.O co-founder Steve Wozniak, said in the letter the potential risks and benefits to society need to be assessed.
“I don’t think asking one particular group to pause solves the challenges,” Gates said on Monday.
“Clearly there’s huge benefits to these things… what we need to do is identify the tricky areas.”
Microsoft has sought to outpace peers through multi-billion-dollar investments in ChatGPT owner OpenAI.
While currently focused full-time on the philanthropic Bill and Melinda Gates Foundation, Gates has been a bullish supporter of AI and described it as revolutionary as the Internet or mobile phones.
In a blog titled "The Age of AI has begun" which was published and dated March 21, a day before the open letter, he said he believes AI should be used to help reduce some of the world’s worst inequities.
He also said in the interview the details of any pause would be complicated to enforce.
“I don’t really understand who they’re saying could stop, and would every country in the world agree to stop, and why to stop,” he said. “But there are a lot of different opinions in this area.”
(Reporting by Jennifer Rigby; Editing by Josephine Mason and Bernadette Baum)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The experts, including Apple AAPL.O co-founder Steve Wozniak, said in the letter the potential risks and benefits to society need to be assessed. His interview with Reuters comes after an open letter -- published last week and co-signed by Elon Musk and more than 1,000 AI experts – demanded an urgent pause in the development of systems "more powerful" than Microsoft-backed MSFT.O OpenAI's new GPT-4, which can hold human-like conversation, compose songs and summarise lengthy documents. “Clearly there’s huge benefits to these things… what we need to do is identify the tricky areas.” Microsoft has sought to outpace peers through multi-billion-dollar investments in ChatGPT owner OpenAI.
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The experts, including Apple AAPL.O co-founder Steve Wozniak, said in the letter the potential risks and benefits to society need to be assessed. By Jennifer Rigby LONDON, April 4 (Reuters) - Calls to pause the development of artificial intelligence will not “solve the challenges” ahead, Microsoft co-founder Bill Gates told Reuters, his first public comments since an open letter sparked a debate about the future of the technology. His interview with Reuters comes after an open letter -- published last week and co-signed by Elon Musk and more than 1,000 AI experts – demanded an urgent pause in the development of systems "more powerful" than Microsoft-backed MSFT.O OpenAI's new GPT-4, which can hold human-like conversation, compose songs and summarise lengthy documents.
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The experts, including Apple AAPL.O co-founder Steve Wozniak, said in the letter the potential risks and benefits to society need to be assessed. By Jennifer Rigby LONDON, April 4 (Reuters) - Calls to pause the development of artificial intelligence will not “solve the challenges” ahead, Microsoft co-founder Bill Gates told Reuters, his first public comments since an open letter sparked a debate about the future of the technology. His interview with Reuters comes after an open letter -- published last week and co-signed by Elon Musk and more than 1,000 AI experts – demanded an urgent pause in the development of systems "more powerful" than Microsoft-backed MSFT.O OpenAI's new GPT-4, which can hold human-like conversation, compose songs and summarise lengthy documents.
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The experts, including Apple AAPL.O co-founder Steve Wozniak, said in the letter the potential risks and benefits to society need to be assessed. By Jennifer Rigby LONDON, April 4 (Reuters) - Calls to pause the development of artificial intelligence will not “solve the challenges” ahead, Microsoft co-founder Bill Gates told Reuters, his first public comments since an open letter sparked a debate about the future of the technology. The technologist-turned-philanthropist said it would be better to focus on how best to use the developments in AI, as it was hard to understand how a pause could work globally.
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16507.0
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2023-04-04 00:00:00 UTC
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Why It’s Buyer Beware When It Comes to AI Mania and NVDA Stock
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https://www.nasdaq.com/articles/why-its-buyer-beware-when-it-comes-to-ai-mania-and-nvda-stock
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze. At some point, it ends in tears for someone.
There’s also no doubt that NVDA stock is a bubble stock. We’re talking about 118 times earnings and 25 times sales. This is happening just two years after the last tech bubble burst, built around cryptocurrency and the metaverse, with hardly anything left of value.
Yet still there are analysts recommending you buy NVDA stock now. Why?
NVDA Nvidia $274.17
A Closer Look at NVDA stock
The boom in “generative AI,” machine learning programs is real. There are going to be huge productivity gains. Some jobs are going to disappear.
Nvidia is as the arms merchant for the cloud data centers that will crunch internet data and generate answers for clients. Nvidia is on the cutting edge of technologies like inverse lithography, that speed this along. Best of all, these are algorithmic changes.
AI and Nvidia
AI is a decade-long trend, so Nvidia can expect steady growth, but Nvidia is basically a software company. It doesn’t make chips.
Taiwan Semiconductor (NYSE:TSM) and, by mid-decade, Intel (NASDAQ:INTC) will limit Nvidia’s growth based on their capacity.
There will also be competition, from Advanced Micro Devices (NASDAQ:AMD), from Intel, and from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Amazon.Com (NASDAQ:AMZN), all now designing their own silicon.
I got into Nvidia stock before the pandemic. I got back my investment after the graphics boom when it split 4:1. I’ve since watched Bitcoin mining boom and bust, and the start of the AI boom, with what looks (to the untrained eye) like free stock.
There just isn’t anyone selling Nvidia right now, except speculators betting on short-term moves. Nvidia’s moves into services only enhance the buying pressure.
Then look at Nvidia’s price chart. The 2022 tech wreck, and disillusionment with Bitcoin, absolutely clobbered the stock, which fell from a high of $329 to a lot of $112.
The shares still haven’t reached their 2021 high. Given the performance of the NASDAQ, and even mighty Microsoft (NASDAQ:MSFT), up just 17% in the last two years while Nvidia has doubled, I’m not expecting that to happen.
The Bottom Line
A long-term investor should always have a list of stocks they want to buy on weakness. Nvidia deserves to be on that list. When the market is soft, accept some losses, raise some cash, and get into something better.
You had your opportunity with Nvidia last year and if you took it you’re in great shape. If you just held on, as I did, you’re a happy bunny. Just remember that next time people underestimate technology and its ability to produce change.
When the current AI bubble pops, that’s when you buy Nvidia.
On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, MSFT, AMZN and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. His 10th novel is The Time Tunnel, now available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or tweet him at @danablankenhorn. He writes a Substack newsletter, Facing the Future, which covers technology, markets, and politics.
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 Why It’s Buyer Beware When It Comes to AI Mania and NVDA Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, MSFT, AMZN and NVDA. There will also be competition, from Advanced Micro Devices (NASDAQ:AMD), from Intel, and from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Amazon.Com (NASDAQ:AMZN), all now designing their own silicon. Taiwan Semiconductor (NYSE:TSM) and, by mid-decade, Intel (NASDAQ:INTC) will limit Nvidia’s growth based on their capacity.
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There will also be competition, from Advanced Micro Devices (NASDAQ:AMD), from Intel, and from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Amazon.Com (NASDAQ:AMZN), all now designing their own silicon. On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, MSFT, AMZN and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze.
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There will also be competition, from Advanced Micro Devices (NASDAQ:AMD), from Intel, and from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Amazon.Com (NASDAQ:AMZN), all now designing their own silicon. On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, MSFT, AMZN and NVDA. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The speculative fervor around Nvidia (NASDAQ:NVDA) stock has something in common with a short squeeze.
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On the date of publication, Dana Blankenhorn held long positions in TSM, AMD, AAPL, GOOGL, MSFT, AMZN and NVDA. There will also be competition, from Advanced Micro Devices (NASDAQ:AMD), from Intel, and from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Amazon.Com (NASDAQ:AMZN), all now designing their own silicon. Yet still there are analysts recommending you buy NVDA stock now.
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16508.0
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2023-04-04 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-6
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $28.24 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
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.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.48%.
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 25.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has added roughly 7.71% so far this year and is down about -8.70% in the last one year (as of 04/04/2023). In the past 52-week period, it has traded between $196.94 and $249.60.
The ETF has a beta of 1.01 and standard deviation of 20.14% for the trailing three-year period, making it a medium risk choice in the space. With about 1017 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 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, IWB is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $308.79 billion in assets, SPDR S&P 500 ETF has $374.22 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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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iShares Russell 1000 ETF (IWB): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $28.24 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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16509.0
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2023-04-04 00:00:00 UTC
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Apple Stock Looks Like a Tasty Holding for Summer
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Are you ready to take a bite out of Apple (NASDAQ:AAPL) stock? If you hesitate too long, you might miss out on a substantial upside. Not only did Apple recently reveal a buy now, pay later (BNPL) service, but the company’s annual tech product conference is practically right around the corner.
Because of its size (market capitalization exceeding $2 trillion), Apple is among the safest technology companies to invest in. Yet, don’t assume that Apple isn’t still an innovator.
You just never know what products and services Apple might introduce next. Instead of playing guessing games, sensible investors can simply own a few Apple shares and count on this tech giant to deliver time and again.
AAPL Apple $164.46
Apple Shines With New BNPL Service
AAPL stock isn’t far from its 52-week high, but is there something that could put it over the top? Just maybe, Apple’s new BNPL service will boost the company’s top and bottom lines, increasing the company’s value to the shareholders.
Here’s the scoop. Apple recently introduced a service called Apple Pay Later in the U.S. Now, you might never have thought of Apple as a BNPL service provider. However, it’s never a good idea to underestimate what Apple is capable of.
With Apple Pay Later, users can “split purchases into four payments, spread over six weeks with no interest and no fees.” The service allows users can track, manage, and repay their Apple Pay Later loans in their Apple Wallet.
We’re not talking about gigantic loans here. They’ll be $50 to $1,000 range. Still, it’s another savvy way for the company to keep its customers using and trusting Apple’s products and services.
Upcoming Tech Products Could Boost AAPL Stock’s Value
Mark your calendar for June 5, as that’s when Apple starts its annual Worldwide Developers Conference (WWDC) this year. The event runs until June 9, and it’s definitely not just for developers.
The online event will showcase Apple’s “latest iOS, iPadOS, macOS, watchOS, and tvOS advancements.” For fans of new technology gadgets, this is almost like the Super Bowl of conferences.
We wouldn’t dare to spread rumors about what Apple might introduce during the upcoming WWDC event. However, there’s reportedly been chatter that Apple might introduce a new virtual reality (VR) headset.
We’ll all just have to wait and see what Apple comes up with this year. Remember, just one new Apple product could change the tech landscape as we know it.
What You Can Do Now
Some traders wait until big events happen and then get involved after a stock price has already made a big move. Others get in before the move and reap the benefits.
Apple never stops innovating and bringing unique products and services to the market. So, whether you’re a user of BNPL services and fancy tech gadgets or not, consider a small position in AAPL stock as the price could move higher before the summer is over.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any 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 Apple Stock Looks Like a Tasty Holding for Summer 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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Upcoming Tech Products Could Boost AAPL Stock’s Value Mark your calendar for June 5, as that’s when Apple starts its annual Worldwide Developers Conference (WWDC) this year. So, whether you’re a user of BNPL services and fancy tech gadgets or not, consider a small position in AAPL stock as the price could move higher before the summer is over. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are you ready to take a bite out of Apple (NASDAQ:AAPL) stock?
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AAPL Apple $164.46 Apple Shines With New BNPL Service AAPL stock isn’t far from its 52-week high, but is there something that could put it over the top? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are you ready to take a bite out of Apple (NASDAQ:AAPL) stock? Upcoming Tech Products Could Boost AAPL Stock’s Value Mark your calendar for June 5, as that’s when Apple starts its annual Worldwide Developers Conference (WWDC) this year.
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AAPL Apple $164.46 Apple Shines With New BNPL Service AAPL stock isn’t far from its 52-week high, but is there something that could put it over the top? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are you ready to take a bite out of Apple (NASDAQ:AAPL) stock? Upcoming Tech Products Could Boost AAPL Stock’s Value Mark your calendar for June 5, as that’s when Apple starts its annual Worldwide Developers Conference (WWDC) this year.
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Upcoming Tech Products Could Boost AAPL Stock’s Value Mark your calendar for June 5, as that’s when Apple starts its annual Worldwide Developers Conference (WWDC) this year. So, whether you’re a user of BNPL services and fancy tech gadgets or not, consider a small position in AAPL stock as the price could move higher before the summer is over. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are you ready to take a bite out of Apple (NASDAQ:AAPL) stock?
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16510.0
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2023-04-04 00:00:00 UTC
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2024 Will Be the Make-or-Break Year for Meta's Reality Labs
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https://www.nasdaq.com/articles/2024-will-be-the-make-or-break-year-for-metas-reality-labs
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Meta Platforms (NASDAQ: META) has invested tens of billions into developing virtual and augmented reality (VR/AR) technology without much to show for it in terms of a viable new business segment. That could start to change next year.
While management plans to continue its outsized investments in the Reality Labs segment, management plans to keep investments in line with overall revenue growth starting in 2024 and beyond. "We expect to pace Reality Labs investments to ensure that we can achieve our goal of growing overall company operating income," CEO Mark Zuckerberg said on the company's third-quarterearnings callin October.
An indication of improving profitability in Reality Labs could give investors confidence that Zuckerberg's massive bet will finally pay off.
Meta reported big costs, little revenue
Reality Labs is currently generating massive operating losses with inconsistent revenue.
Meta had a hit with the Oculus Quest 2, but sales dropped in 2023.
Image source: The Motley Fool. Data source: Meta Platforms.
The fourth-quarter revenue decline indicates the market for virtual reality headsets remains relatively limited. Meta and other companies in the VR/AR space have work to do in order to expand the market.
That could come with a new wave of product announcements in the near future from several companies, including Apple (NASDAQ: AAPL). Apple is reportedly developing its own AR/VR headset with a potential release later this year. Apple's entry into a category has historically given the entire industry a boost.
The meager revenue from the segment barely makes a dent in Meta's operating expenses. Reality Labs produced operating losses of $13.7 billion and $10.2 billion in 2022 and 2021, respectively. The net effect on operating margin for 2022 was nearly 12.5 percentage points.
What's driving those massive losses?
The biggest thing driving losses in Reality Labs is Meta's investments in augmented reality technology.
There are three areas of investment within Reality Labs: Virtual reality products like its Oculus lineup, metaverse software development like Horizon Worlds, and augmented reality technology, none of which has shipped. In fact, Zuckerberg says augmented reality research and development is the biggest expense in the segment.
Indeed, augmented reality could be a much bigger market than virtual reality. The potential for technology to overlay information in the real world (AR) is much more appealing for many than immersing yourself in a separate virtual world (VR). There are likely many more uses, too. VR may be just a stepping stone to AR.
To that end, Meta's spending on Reality Labs isn't going to slow down. "We're going to continue to invest meaningfully in this area given the significant long-term opportunities that we see. It is a long-duration investment," CFO Susan Li said on Meta's Q4earnings call
Managing for operating profit growth
There are two ways Meta can improve operating profits while increasing its investments in AR research and the rest of Reality Labs: Reaccelerate growth in the advertising business, or start producing meaningful revenue from the Reality Labs segment.
The former is very likely going to happen. Meta is investing heavily in artificial intelligence to overcome the challenges it faces in tracking ad performance following Apple's introduction of App Tracking Transparency in iOS 14. It's showing improvements in Reels monetization as well, which has become a significant source of ad inventory, displacing some higher-value inventory in Feed and Stories. The outlook for the ads business is very positive.
The latter, however, remains a real possibility. As Meta brings its AR technology to market through smartphone and headset devices, it should be able to make headway in expanding the market and producing real revenue within the segment. 2024 will be the year to watch to see improvements in profitability for Reality Labs.
In the meantime, patient investors should be rewarded as the advertising business rebounds, making Meta shares a great way to invest in the potential of augmented reality.
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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. Adam Levy has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. 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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That could come with a new wave of product announcements in the near future from several companies, including Apple (NASDAQ: AAPL). An indication of improving profitability in Reality Labs could give investors confidence that Zuckerberg's massive bet will finally pay off. It is a long-duration investment," CFO Susan Li said on Meta's Q4earnings call Managing for operating profit growth There are two ways Meta can improve operating profits while increasing its investments in AR research and the rest of Reality Labs: Reaccelerate growth in the advertising business, or start producing meaningful revenue from the Reality Labs segment.
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That could come with a new wave of product announcements in the near future from several companies, including Apple (NASDAQ: AAPL). Meta Platforms (NASDAQ: META) has invested tens of billions into developing virtual and augmented reality (VR/AR) technology without much to show for it in terms of a viable new business segment. There are three areas of investment within Reality Labs: Virtual reality products like its Oculus lineup, metaverse software development like Horizon Worlds, and augmented reality technology, none of which has shipped.
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That could come with a new wave of product announcements in the near future from several companies, including Apple (NASDAQ: AAPL). Meta Platforms (NASDAQ: META) has invested tens of billions into developing virtual and augmented reality (VR/AR) technology without much to show for it in terms of a viable new business segment. There are three areas of investment within Reality Labs: Virtual reality products like its Oculus lineup, metaverse software development like Horizon Worlds, and augmented reality technology, none of which has shipped.
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That could come with a new wave of product announcements in the near future from several companies, including Apple (NASDAQ: AAPL). The biggest thing driving losses in Reality Labs is Meta's investments in augmented reality technology. It is a long-duration investment," CFO Susan Li said on Meta's Q4earnings call Managing for operating profit growth There are two ways Meta can improve operating profits while increasing its investments in AR research and the rest of Reality Labs: Reaccelerate growth in the advertising business, or start producing meaningful revenue from the Reality Labs segment.
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2023-04-04 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Meta Platforms, Visa, United Parcel Service and Caterpillar
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For Immediate Release
Chicago, IL – April 4, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Visa Inc. V, United Parcel Service, Inc. UPS and Caterpillar Inc. CAT.
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for Apple, Meta Platforms and Visa
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Meta Platforms, Inc. and Visa Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares are up +26.7% in the year-to-date period vs. the Zacks Tech sector's 20.6% gain and the S&P 500 index's +7.4% gain.
The company expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For the iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
However, revenues are expected to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
(You can read the full research report on Apple here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past six months (+51.1% vs. +14.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver.
Its restructuring plan is expected to reduce expenses driving profitability. However, challenging macroeconomic conditions are negatively impacting Meta’s advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
Meta’s first-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. Meta expects Reels to monetize much slower than feed or stories, which is a concern.
(You can read the full research report on Meta Platforms here >>>)
Visa shares have outperformed the Zacks Financial Transaction Services industry over the past six months (+22.0% vs. +15.2%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, net revenues are estimated to rise in the high single digits on a reported nominal dollar basis.
Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. Steady domestic volumes and transactions rise will aid the company to boost its top line in the coming years. A strong cash position enables it to boost shareholder value.
However, high operating expenses stress the company's margins. Ramped-up client incentives will dent the top line. The company's volumes will likely suffer due to the Russia-Ukraine conflict. As such, the stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Other noteworthy reports we are featuring today include United Parcel Service, Inc. and Caterpillar Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Visa Inc. V, United Parcel Service, Inc. UPS and Caterpillar Inc. CAT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Visa Inc. V, United Parcel Service, Inc. UPS and Caterpillar Inc. CAT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Meta Platforms, Inc. and Visa Inc.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Visa Inc. V, United Parcel Service, Inc. UPS and Caterpillar Inc. CAT. Here are highlights from Monday’s Analyst Blog: Top Research Reports for Apple, Meta Platforms and Visa The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Visa Inc. V, United Parcel Service, Inc. UPS and Caterpillar Inc. CAT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Meta Platforms, Inc. and Visa Inc.
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2023-04-04 00:00:00 UTC
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3 Stocks With Solid EPS Estimates & Charts For The Tech Rebound
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https://www.nasdaq.com/articles/3-stocks-with-solid-eps-estimates-charts-for-the-tech-rebound
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Anyone whose market view is stuck in 2022 should take notice: The tech sector emerged as the big winner in the first quarter, with some of the biggest S&P 500 stocks, including Apple Inc. (NASDAQ: AAPL), Microsoft Corp., (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA) and Salesforce Inc. (NYSE: CRM) gaining in market capitalization.
But less well-known stocks Workday Inc. (NASDAQ: WDAY), Cadence Design Systems Inc. (NASDAQ: CDNS) and Fortinet Inc. (NASDAQ: FTNT) also made gains in the quarter and are setting up bullish consolidations.
The S&P sector, as tracked by the Technology Select Sector SPDR Fund (NYSEARCA: XLK), was the top sector in the first quarter, returning 21.35% in the past three months.
Other heavily weighted sector components Meta Platforms Inc. (NASDAQ: META), Amazon.com Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOGL) were also among the top performers, with big gains in market cap.
But when it comes to screening for potential buys, the biggest names aren’t necessarily the first ones to add. Several of those stocks are showing the right combination of sales, earnings and price momentum to qualify as watch list candidates.
Here are three stocks setting up for gains as the second quarter gets underway.
Workday
Workday’s cloud-based enterprise resource planning software helps businesses manage their human resources and financial processes. It streamlines HR functions such as employee management, payroll, benefits administration, talent management, and workforce planning. Workday can also handle financial processes like accounting, procurement, and expense management.
Earnings growth slowed in fiscal 2023, but rebounded in the most recent quarter. Revenue growth has held steady, ranging between 15% and 22% in the past eight quarters. The stock returned 23.43% in the first quarter, and a look at its chart shows a breakout from a flat base on March 29. The stock is just out of buy range, but a pullback to a moving average could offer a new buy opportunity.
Wall Street expects the company to grow earnings by 40% this year, which is fiscal 2024, and by 22% next year.
Cadence Design
San Jose, California-based chip design specialist Cadence is etching out a specialty in the growing area of chiplets. That’s a design approach in which a single electronic system is broken down into smaller, independent parts. These chiplets can be designed and manufactured separately, using different semiconductor technologies and then assembled to create a larger, more complex system-on-chip. This approach offers increased flexibility, reduced development time, and lower costs, as well as the ability to mix and match different chiplets for specific applications.
Cadence has a multi-year history of increasing earnings, as you can see, using MarketBeat data on the stock. Analysts expect the company to increase earnings by 16% this year, and by the same percentage in 2024.
Cadence’s chart reflects a February 14 breakout from a cup-shaped pattern. The stock rallied 8.89% in the past month and 30.78% in the first quarter. It’s currently in buy range after pulling back and getting 50-day support on March 28.
Fortinet
Fortinet provides network security solutions to protect against cyber threats and attacks. Its solutions include firewalls, VPNs, email security, and endpoint protection. Its offerings are designed to provide comprehensive security across the entire network, from endpoints to the cloud, helping its customers protect their data and prevent security breaches.
So it’s pretty clear how that business model might be in high demand in the foreseeable future.
The company has been consolidating since January 2022, but has been in rally mode recently, advancing 11.81% in the past month and 35.94% in the past quarter.
If you expand the view on Fortinet’s chart to include late 2021, you can see that it rallied to a peak in December of that year, and has been consolidating since. Watch for the stock to clear its current buy point north of $74.35. Its next earnings report, in early May, could be a catalyst for a big price move. Analysts expect the company to earn $0.22 per share on revenue of $1.20 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anyone whose market view is stuck in 2022 should take notice: The tech sector emerged as the big winner in the first quarter, with some of the biggest S&P 500 stocks, including Apple Inc. (NASDAQ: AAPL), Microsoft Corp., (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA) and Salesforce Inc. (NYSE: CRM) gaining in market capitalization. These chiplets can be designed and manufactured separately, using different semiconductor technologies and then assembled to create a larger, more complex system-on-chip. This approach offers increased flexibility, reduced development time, and lower costs, as well as the ability to mix and match different chiplets for specific applications.
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Anyone whose market view is stuck in 2022 should take notice: The tech sector emerged as the big winner in the first quarter, with some of the biggest S&P 500 stocks, including Apple Inc. (NASDAQ: AAPL), Microsoft Corp., (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA) and Salesforce Inc. (NYSE: CRM) gaining in market capitalization. But less well-known stocks Workday Inc. (NASDAQ: WDAY), Cadence Design Systems Inc. (NASDAQ: CDNS) and Fortinet Inc. (NASDAQ: FTNT) also made gains in the quarter and are setting up bullish consolidations. Workday Workday’s cloud-based enterprise resource planning software helps businesses manage their human resources and financial processes.
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Anyone whose market view is stuck in 2022 should take notice: The tech sector emerged as the big winner in the first quarter, with some of the biggest S&P 500 stocks, including Apple Inc. (NASDAQ: AAPL), Microsoft Corp., (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA) and Salesforce Inc. (NYSE: CRM) gaining in market capitalization. But less well-known stocks Workday Inc. (NASDAQ: WDAY), Cadence Design Systems Inc. (NASDAQ: CDNS) and Fortinet Inc. (NASDAQ: FTNT) also made gains in the quarter and are setting up bullish consolidations. Other heavily weighted sector components Meta Platforms Inc. (NASDAQ: META), Amazon.com Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOGL) were also among the top performers, with big gains in market cap.
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Anyone whose market view is stuck in 2022 should take notice: The tech sector emerged as the big winner in the first quarter, with some of the biggest S&P 500 stocks, including Apple Inc. (NASDAQ: AAPL), Microsoft Corp., (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA) and Salesforce Inc. (NYSE: CRM) gaining in market capitalization. But less well-known stocks Workday Inc. (NASDAQ: WDAY), Cadence Design Systems Inc. (NASDAQ: CDNS) and Fortinet Inc. (NASDAQ: FTNT) also made gains in the quarter and are setting up bullish consolidations. The stock is just out of buy range, but a pullback to a moving average could offer a new buy opportunity.
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16513.0
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2023-04-04 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-14
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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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16514.0
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2023-04-03 00:00:00 UTC
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Top Research Reports for Apple, Meta Platforms & Visa
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AAPL
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https://www.nasdaq.com/articles/top-research-reports-for-apple-meta-platforms-visa
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nan
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nan
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Monday, April 3, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares are up +26.7% in the year-to-dater period vs. the Zacks Tech sector's 20.6% gain and the S&P 500 index's +7.4% gain.
The company expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
However, revenues are expected to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
(You can read the full research report on Apple here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past six months (+51.1% vs. +14.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver.
Its restructuring plan is expected to reduce expenses driving profitability. However, challenging macroeconomic conditions is negatively impacting Meta’s advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
Meta’s first-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. Meta expects Reels to monetize much slower than feed or stories, which is a concern.
(You can read the full research report on Meta Platforms here >>>)
Visa shares have outperformed the Zacks Financial Transaction Services industry over the past six months (+22.0% vs. +15.2%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, net revenues are estimated to rise in the high single digits on a reported nominal dollar basis.
Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. Steady domestic volumes and transactions rise will aid the company to boost its top line in the coming years. A strong cash position enables it to boost shareholder value.
However, high operating expenses stress the company's margins. Ramped-up client incentives will dent the top line. The company's volumes will likely suffer due to the Russia-Ukraine conflict. As such, the stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), United Parcel Service, Inc. (UPS) and Caterpillar Inc. (CAT).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
User Growth, Instagram Strength Aids Meta Platforms (META)
Visa (V) Rides on Increasing Payments Volume, Expenses High
Featured Reports
ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin
The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets. However, dividend yield is lower than the industry's composite stocks.
Dividends & Buybacks Lift UPS' Prospects Despite High Costs
The Zacks analyst is impressed with UPS' efforts to reward its shareholders through dividends and buybacks. However, elevated fuel costs are limiting bottom-line growth.
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Solid Backlog Aids Quanta (PWR), Supply Chain Risks Ail
Per the Zacks analyst, Quanta benefits from solid backlog levels, accretive acquisitions and robust growth strategies. However, supply chain disruptions and project delays hurt.
Pinterest (PINS) Rides on High Ad Efficacies, Wide User Base
Per the Zacks analyst, Pinterest is likely to benefit from enhanced product offerings, new conversion insights, wider Pinner and advertiser base and a unique value proposition for advertisers.
Integra's (IART) Codman Arm Gains Strength on Product Launch
The Zacks analyst is positive about the fact that despite the macroeconomic slowdown, Integra's Codman Specialty Surgical line is expanding across neurosurgery franchises banking on innovation.
Crysvita & Dojolvi Boosts Ultragenyx (RARE), Low Cash a Woe
Per the Zacks Analyst, Ultragenyx's marketed products have been performing well. However, pipeline setbacks, and increasing operational costs, will hurt the company amidst a cash crunch.
New Upgrades
Penske (PAG) Rides High on Strategic Buyouts, Low Leverage
The Zacks analyst is optimistic about Penske's buyout of Kansas City Freightliner, McCoy and Team Trucks Centers. Penske's long-term debt-to-capitalization of 27% is better than industry's 32%.
Clean Assets, North America Focus Aid Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy is gaining by generating electricity from renewable energy sources to meet rising demand and focus on domestic market saves it from currency risks.
Decent Comps Run to Fuel Ollie's Bargain's (OLLI) Top Line
Per the Zacks analyst, Ollie's Bargain's business model of buying cheap and selling cheap, cost control efforts and healthy comps run reinforce its position. Fiscal 2023 comps are likely to rise 1-2%.
New Downgrades
Tyson Foods (TSN) Sales Troubled by Beef Segment Softness
Per the Zacks analyst, Tyson Foods' sales are being affected by softness in the Beef segment. USDA projects fiscal 2023 domestic production to fall roughly 5% year over year for the Beef segment.
Elevated Costs, Mortality Claims Hurt Lincoln National (LNC)
Per the Zacks Analyst, a high benefits expense level can dampen dent the company's margins. Continued incidence of COVID-related mortality remains a concern.
High Expenses, Tough Backdrop Hurt Moelis & Company (MC)
Per the Zacks analyst, steadily rising expenses as Moelis & Company continues with its hiring spree is worrisome. A tough operating backdrop due to geopolitical and macroeconomic concerns is a woe.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) User Growth, Instagram Strength Aids Meta Platforms (META) Visa (V) Rides on Increasing Payments Volume, Expenses High Featured Reports ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) User Growth, Instagram Strength Aids Meta Platforms (META) Visa (V) Rides on Increasing Payments Volume, Expenses High Featured Reports ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) User Growth, Instagram Strength Aids Meta Platforms (META) Visa (V) Rides on Increasing Payments Volume, Expenses High Featured Reports ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) User Growth, Instagram Strength Aids Meta Platforms (META) Visa (V) Rides on Increasing Payments Volume, Expenses High Featured Reports ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets.
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16515.0
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2023-04-03 00:00:00 UTC
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Company News for Apr 3, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-apr-3-2023
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nan
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nan
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BlackBerry Ltd.’s (BB) shares soared 14% after posting fourth-quarter fiscal 2023 adjusted loss per share of $0.02, narrower-than the Zacks Consensus Estimate of a loss per share of $0.07.
Braze Inc.’s (BRZE) shares jumped 9.4% after reporting fourth-quarter fiscal 2023 adjusted loss per share of $0.14, narrower-than the Zacks Consensus Estimate of a loss per share of $0.19.
Shares of Apple Inc. (AAPL) gained 1.6% after it won lawsuit against Britain's antitrust regulator regarding launching an investigation into Apple’s mobile browser and cloud gaming services.
Shares of Lithium Americas Corp. (LAC) rose 1.5% after the company posted fourth-quarter 2022 adjusted loss per share of $0.19, narrower-than the Zacks Consensus Estimate of a loss per share of $0.25.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
BlackBerry Limited (BB) : Free Stock Analysis Report
Lithium Americas Corp. (LAC) : Free Stock Analysis Report
Braze, Inc. (BRZE) : 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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Shares of Apple Inc. (AAPL) gained 1.6% after it won lawsuit against Britain's antitrust regulator regarding launching an investigation into Apple’s mobile browser and cloud gaming services. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Lithium Americas Corp. (LAC) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report To read this article on Zacks.com click here. Free Report: Must-See Energy Stocks for 2023 Record profits at oil companies can mean big gains for you.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Lithium Americas Corp. (LAC) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.6% after it won lawsuit against Britain's antitrust regulator regarding launching an investigation into Apple’s mobile browser and cloud gaming services. BlackBerry Ltd.’s (BB) shares soared 14% after posting fourth-quarter fiscal 2023 adjusted loss per share of $0.02, narrower-than the Zacks Consensus Estimate of a loss per share of $0.07.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Lithium Americas Corp. (LAC) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.6% after it won lawsuit against Britain's antitrust regulator regarding launching an investigation into Apple’s mobile browser and cloud gaming services. BlackBerry Ltd.’s (BB) shares soared 14% after posting fourth-quarter fiscal 2023 adjusted loss per share of $0.02, narrower-than the Zacks Consensus Estimate of a loss per share of $0.07.
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Shares of Apple Inc. (AAPL) gained 1.6% after it won lawsuit against Britain's antitrust regulator regarding launching an investigation into Apple’s mobile browser and cloud gaming services. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Lithium Americas Corp. (LAC) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report To read this article on Zacks.com click here. Braze Inc.’s (BRZE) shares jumped 9.4% after reporting fourth-quarter fiscal 2023 adjusted loss per share of $0.14, narrower-than the Zacks Consensus Estimate of a loss per share of $0.19.
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16516.0
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2023-04-03 00:00:00 UTC
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Energy Companies Are Rewarding Shareholders With Share Buybacks
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AAPL
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https://www.nasdaq.com/articles/energy-companies-are-rewarding-shareholders-with-share-buybacks
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nan
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nan
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According to S&P Dow Jones Indices (SPDJI), S&P 500 companies set an annual record with $923 billion of share buybacks in 2022, an increase from the prior record of $882 billion in 2021. In 2022, some sectors, such as financials, pulled back spending of their own shares, but the repurchase activity by S&P 500 energy companies rose five-fold.
Share repurchases remained the more popular use of free cash flow, with 439 S&P 500 constituents buying back some stock during the year, compared with 399 companies paying a dividend. While nearly one in five S&P 500 constituents reduced their share counts in the fourth quarter by a meaningful 4% year-over-year, repurchase activity is even more concentrated than one might realize.
A combined $345 billion of stock was repurchased by just 20 companies, equal to 35% of the index’s spending efforts, per SPDJI. Information technology and communications services companies Apple ($94 billion in 2022), Alphabet ($59 billion), Meta Platforms ($32 billion), and Microsoft ($29 billion) were the largest buyers, but energy companies were also big spenders.
For example, Exxon Mobil bought back $15 billion in 2022, up from just $155 million a year earlier. Meanwhile, Chevron, ConocoPhillips, and Marathon Petroleum were among the biggest purchasers of their stock, according to SPDJI data.
Overall, S&P 500 Energy companies bought back $64 billion of stock in 2022, equal to 6.9% of the S&P 500 Index’s share repurchases, up from $13 billion (1.4%), while S&P 500 Financials shrunk from $191 billion to $121 billion year-over-year, according to the index provider. Berkshire Hathaway’s $6.9 billion in 2022, down from $27 billion, is one such example.
The market cap-weighted Energy Select Sector SPDR (XLE) or the alternatively weighted Invesco S&P 500 Equal Weight Energy ETF (RYE) are two ways to get exposure to the S&P 500 Energy sector.
However, as we previously noted, the S&P 500 Index and its energy sector slice do not include MLPs. Companies like Enterprise Products Partners (EPD) and MPLX (MPLX) are listed as ineligible organizational structures, along with business development companies, ETFs, and closed-end funds, according to the S&P Dow Jones methodology document.
While there is no added explanation for the absence, MLPs may be excluded because their tax-advantaged structure adds some complexity, according to Stacey Morris, head of energy research at VettaFi.
This is a shame because the energy sector’s share of the S&P 500 buyback activity would be enhanced if MLPs were included. Indeed, MLPs regularly used their strong free cash flow to reward shareholders last year with buybacks and have ample room for more in 2023.
For example, MPLX bought back $491 million of its shares in 2022 as part of a $2 billion authorization program. With a recent $34 billion market cap, MPLX is of similar size to XLE, as well as RYE constituent and fellow midstream company Kinder Morgan. Meanwhile, EPD bought back $250 million from its $2 billion program. EPD’s recent market cap of $55 billion is like that of S&P 500-domiciled Occidental Petroleum.
Other large-cap MLPs that used free cash flow on share repurchases in 2022 include Western Midstream Partners and Magellan Midstream Partners, which bought back $488 million and $472 million, respectively. Shares of these MLP companies can be found in the Alerian MLP ETF (AMLP) despite not being a part of some of the larger energy sector ETFs tied to the S&P 500.
VettaFi LLC (“VettaFi”) is the index provider for AMLP, for which it receives an index licensing fee. However, AMLP is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of AMLP.
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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Share repurchases remained the more popular use of free cash flow, with 439 S&P 500 constituents buying back some stock during the year, compared with 399 companies paying a dividend. While there is no added explanation for the absence, MLPs may be excluded because their tax-advantaged structure adds some complexity, according to Stacey Morris, head of energy research at VettaFi. With a recent $34 billion market cap, MPLX is of similar size to XLE, as well as RYE constituent and fellow midstream company Kinder Morgan.
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Overall, S&P 500 Energy companies bought back $64 billion of stock in 2022, equal to 6.9% of the S&P 500 Index’s share repurchases, up from $13 billion (1.4%), while S&P 500 Financials shrunk from $191 billion to $121 billion year-over-year, according to the index provider. For example, MPLX bought back $491 million of its shares in 2022 as part of a $2 billion authorization program. Other large-cap MLPs that used free cash flow on share repurchases in 2022 include Western Midstream Partners and Magellan Midstream Partners, which bought back $488 million and $472 million, respectively.
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According to S&P Dow Jones Indices (SPDJI), S&P 500 companies set an annual record with $923 billion of share buybacks in 2022, an increase from the prior record of $882 billion in 2021. Information technology and communications services companies Apple ($94 billion in 2022), Alphabet ($59 billion), Meta Platforms ($32 billion), and Microsoft ($29 billion) were the largest buyers, but energy companies were also big spenders. Overall, S&P 500 Energy companies bought back $64 billion of stock in 2022, equal to 6.9% of the S&P 500 Index’s share repurchases, up from $13 billion (1.4%), while S&P 500 Financials shrunk from $191 billion to $121 billion year-over-year, according to the index provider.
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Overall, S&P 500 Energy companies bought back $64 billion of stock in 2022, equal to 6.9% of the S&P 500 Index’s share repurchases, up from $13 billion (1.4%), while S&P 500 Financials shrunk from $191 billion to $121 billion year-over-year, according to the index provider. For example, MPLX bought back $491 million of its shares in 2022 as part of a $2 billion authorization program. Other large-cap MLPs that used free cash flow on share repurchases in 2022 include Western Midstream Partners and Magellan Midstream Partners, which bought back $488 million and $472 million, respectively.
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16517.0
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2023-04-03 00:00:00 UTC
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Dow Analyst Moves: AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-analyst-moves%3A-aapl-4
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nan
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nan
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The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #2 analyst pick. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #43 spot out of 500.
Looking at the stock price movement year to date, Apple is showing a gain of 26.8%.
VIDEO: Dow Analyst Moves: AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #2 analyst pick. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #43 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #2 analyst pick. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #43 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #2 analyst pick. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #43 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #2 analyst pick. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #43 spot out of 500.
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16518.0
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2023-04-03 00:00:00 UTC
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In the News: Merger Monday, WYNNing Macau Numbers, & Surprise Oil Cuts
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AAPL
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https://www.nasdaq.com/articles/in-the-news%3A-merger-monday-wynning-macau-numbers-surprise-oil-cuts
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nan
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nan
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Monday, high-flying tech stocks took a much-needed breather, albeit a mild one. After gaining 3.23% last week and more than 20% in the first quarter of 2023, the red-hot, tech-heavy Nasdaq 100 ETF (QQQ) fell less than a percent. Nevertheless, select growth stocks such as Apple (AAPL) and Nvidia (NVDA) continued to push forward and made fresh highs in early trading. Despite the quiet and range-bound trading in the major indices, the weekend was news-filled, and specific sectors saw significant gains.
Merger Monday
The weekend was chock full of merger and acquisition news, but one deal stood above them all. Over the weekend, UFC owner Endeavor (EDR) announced it would merge with World Wide Wrestling Entertainment (WWE). The deal is valued at $21 billion and will make the newly combined company the most dominant in the space.
WYNNing Macau Numbers
Shares of gaming giant Wynn Resorts (WYNN) popped to fresh 52-week highs in early trading after the company announced strong numbers from its Macau division. Gaming revenue from the region soared by nearly 250% year-over-year. The revenue was the strongest since before the COVID-19 pandemic. Wynn was recently covered in our Bull of the Day column on March 28th. Industry group peer Las Vegas Sands (LVS) rose in sympathy.
Image Source: Zacks Investment Research
OPEC Cuts Send Oil Soaring
OPEC, or the Organization of the Petroleum Exporting Countries, is a group of 13 countries that control a significant portion of the world’s oil supply. OPEC countries account for nearly 40% of the world’s oil production. Sunday, OPEC announced a surprise production cut of more than one million barrels a day. After the announcement, crude oil futures shot higher by more than 6%. The gains carried into trading Monday were the strongest in 2023 and the largest in nearly one year.
As was evident on Monday, changes in OPEC’s oil production decisions can dramatically impact the overall oil market. The energy sector is the big early week winner and gained 4.50%. Another winner is Warren Buffett. Buffett’s Berkshire Hathaway has been steadily accumulating shares of Occidental Petroleum (OXY) and now owns more than 200 million shares or roughly $12 billion worth of the stock. Looking at OXY’s fundamental picture clarifies why Buffett is such a big buyer. Occidental’s price-to-earnings ratio of 6.69x EPS makes the stock very attractive from a value perspective when compared to the S&P 500’s P/E of 19.0x.
Image Source: Zacks Investment Research
Beyond OXY, oil stocks rose across the board, including Exxon Mobil (XOM), BP (BP), Halliburton (HAL), and countless others.
Tesla’s Electric Delivery Numbers
Shares of the world’s leading electric vehicle maker fell on Monday by 6% after announcing record delivery numbers of 422,000 vehicles. Though the numbers were stellar, the actual announcement was a “sell the news” type event and was likely already priced into the stock. For now, Tesla (TSLA) continues to find support at its rising 50-day moving average.
Image Source: Zacks Investment Research
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
BP p.l.c. (BP) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Halliburton Company (HAL) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
World Wrestling Entertainment, Inc. (WWE) : Free Stock Analysis Report
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Endeavor Group Holdings, Inc. (EDR) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): 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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Nevertheless, select growth stocks such as Apple (AAPL) and Nvidia (NVDA) continued to push forward and made fresh highs in early trading. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BP p.l.c. Over the weekend, UFC owner Endeavor (EDR) announced it would merge with World Wide Wrestling Entertainment (WWE).
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Nevertheless, select growth stocks such as Apple (AAPL) and Nvidia (NVDA) continued to push forward and made fresh highs in early trading. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BP p.l.c. WYNNing Macau Numbers Shares of gaming giant Wynn Resorts (WYNN) popped to fresh 52-week highs in early trading after the company announced strong numbers from its Macau division.
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Nevertheless, select growth stocks such as Apple (AAPL) and Nvidia (NVDA) continued to push forward and made fresh highs in early trading. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BP p.l.c. Image Source: Zacks Investment Research OPEC Cuts Send Oil Soaring OPEC, or the Organization of the Petroleum Exporting Countries, is a group of 13 countries that control a significant portion of the world’s oil supply.
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Nevertheless, select growth stocks such as Apple (AAPL) and Nvidia (NVDA) continued to push forward and made fresh highs in early trading. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report BP p.l.c. WYNNing Macau Numbers Shares of gaming giant Wynn Resorts (WYNN) popped to fresh 52-week highs in early trading after the company announced strong numbers from its Macau division.
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16519.0
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2023-04-03 00:00:00 UTC
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3 Reasons Apple Could Buy Disney and 3 Reasons It's a Terrible Idea
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AAPL
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https://www.nasdaq.com/articles/3-reasons-apple-could-buy-disney-and-3-reasons-its-a-terrible-idea
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nan
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nan
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When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). He had gained that stake through his sale of Pixar to Disney in 2006. Since then, many people have dreamed of a merger between the two iconic American companies.
Disney CEO Bob Iger floated that idea in his 2019 memoir and even claimed in a 2021 interview that Jobs would have supported a merger if he had lived. Last November, an unnamed insider claimed Iger could sell Disney to Apple, but Iger denied those rumors. Needham analyst Laura Martin recently revived that idea in a research paper that claimed an acquisition of Disney could easily boost Apple's valuation by 15% to 25%.
Apple is one of the few companies in the world with the finances to pull off that massive deal, but would it actually make any sense? Let's review three reasons Apple might buy Disney and three reasons it would be a terrible idea.
Image source: Getty Images.
Three reasons Apple could buy Disney
Apple could buy Disney for three reasons: It would expand its services segment, reduce its dependence on the iPhone, and potentially generate synergies in terms of marketing, bundling strategies, and the collection of customer data.
Apple ended its latest quarter with 935 million paid subscriptions across all its services, which include Apple TV+, Apple Music, Apple Arcade, Apple News+, Apple Fitness+, and iCloud+. It bundles those services in its Apple One subscription.
Acquiring Disney would strengthen that ecosystem by adding Disney's 235 million streaming subscribers (162 million on Disney+, 25 million on ESPN+, and 48 million on Hulu) to Apple TV+. Additionally, Apple Music would gain more songs, Apple News+ could be tightly integrated into ABC News, and Apple Arcade could potentially get more Disney, Marvel, and Star Wars games.
That merger might solve Disney's biggest problem: the widening losses in its direct-to-consumer streaming division. Merging its streaming ecosystem with Apple's would reduce its own content production, infrastructure, and marketing costs.
Last quarter, Apple generated 18% of its revenue from its services segment, which houses its subscriptions, App Store sales, and other services. But it still generated 56% of its revenue from the iPhone, which will likely face diminishing returns with longer upgrade cycles. That percentage would drop to 47% if we combined Apple and Disney's latest quarterly numbers.
As for the bundling opportunities, Apple could sell Disney-themed products; promote its products in Disney's movies, TV shows, and theme parks; and even provide its Apple One subscribers with special discounts for Disney's theme parks and resorts. It would also gain access to Disney's goldmine of customer data, which could guide Apple's development of future hardware, software, and subscription-based products.
Three reasons it's a terrible idea
Those possibilities are tantalizing, but the acquisition would be a bad idea for three reasons: the hefty price tag, the acquisition indigestion, and the mismatched operating margins.
Disney currently has an enterprise value of about $210 billion. An acquisition premium of 30% would boost the value of that deal to more than $270 billion. Apple ended its latest quarter with $165 billion in cash, cash equivalents, and marketable securities, so it would likely need to take on more debt or cover the rest of the deal in stock.
That also means Apple would likely need to pause its big buybacks. It has already reduced its outstanding shares by 40% over the past decade, and suspending those shareholder-friendly buybacks in favor of a massive media acquisition could be poorly received. Apple could also purchase several smaller media companies -- including Paramount, which has an enterprise value of $29 billion, or Warner Bros. Discovery, valued at $78 billion -- to expand its services segment without inheriting Disney's theme parks and resorts.
Acquiring Disney would also complicate Apple's simpler business model of selling premium hardware devices and locking in its customers with high-margin subscriptions. A comparison of Disney and Apple's gross and operating margins over the past five years, which clearly reflect the impact of COVID-19 and Disney's loss-leading expansion into the streaming market, indicates that acquisition could significantly reduce Apple's margins:
Data source: YCharts. TTM = trailing 12 months.
Lastly, Apple's takeover of Disney would likely face a lot of opposition from antitrust regulators. The two companies operate in different sectors. However, the combination could give them unfair competitive advantages against Apple's hardware and software competitors and Disney's competitors in the media and theme park markets. Apple could get so distracted by those regulatory challenges that it might impact the development of its new products and services.
It's doubtful this mega-deal will ever happen
A merger between Apple and Disney is a fascinating idea, but it doesn't seem realistic. For now, it makes more sense for Apple to expand its ecosystem with mixed-reality headsets and software for connected cars than it does to acquire the world's largest media and theme park company. It would be smart for Apple to sign some content and marketing deals with Disney, but it's irrational for the tech giant to swallow up the whole company.
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Leo Sun has positions in Apple, Walt Disney, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Apple, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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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When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). Needham analyst Laura Martin recently revived that idea in a research paper that claimed an acquisition of Disney could easily boost Apple's valuation by 15% to 25%. Acquiring Disney would also complicate Apple's simpler business model of selling premium hardware devices and locking in its customers with high-margin subscriptions.
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When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). Three reasons Apple could buy Disney Apple could buy Disney for three reasons: It would expand its services segment, reduce its dependence on the iPhone, and potentially generate synergies in terms of marketing, bundling strategies, and the collection of customer data. Apple ended its latest quarter with 935 million paid subscriptions across all its services, which include Apple TV+, Apple Music, Apple Arcade, Apple News+, Apple Fitness+, and iCloud+.
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When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). Three reasons Apple could buy Disney Apple could buy Disney for three reasons: It would expand its services segment, reduce its dependence on the iPhone, and potentially generate synergies in terms of marketing, bundling strategies, and the collection of customer data. Apple ended its latest quarter with 935 million paid subscriptions across all its services, which include Apple TV+, Apple Music, Apple Arcade, Apple News+, Apple Fitness+, and iCloud+.
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When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). Apple ended its latest quarter with 935 million paid subscriptions across all its services, which include Apple TV+, Apple Music, Apple Arcade, Apple News+, Apple Fitness+, and iCloud+. An acquisition premium of 30% would boost the value of that deal to more than $270 billion.
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16520.0
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2023-04-03 00:00:00 UTC
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After Hours Most Active for Apr 3, 2023 : PSCE, BAC, WFC, CSCO, CMCSA, QQQ, AAPL, JPM, HLN, HBAN, BFLY, C
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-apr-3-2023-%3A-psce-bac-wfc-csco-cmcsa-qqq-aapl-jpm-hln-hban
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -11.34 to 13,137.01. The total After hours volume is currently 93,674,442 shares traded.
The following are the most active stocks for the after hours session:
Invesco S&P SmallCap Energy ETF (PSCE) is -0.0227 at $9.85, with 7,500,002 shares traded. This represents a 29.22% increase from its 52 Week Low.
Bank of America Corporation (BAC) is -0.05 at $28.54, with 5,771,561 shares traded. BAC's current last sale is 75.6% of the target price of $37.75.
Wells Fargo & Company (WFC) is -0.07 at $37.65, with 2,381,662 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Cisco Systems, Inc. (CSCO) is unchanged at $52.31, with 2,059,211 shares traded. CSCO's current last sale is 95.11% of the target price of $55.
Comcast Corporation (CMCSA) is unchanged at $38.01, with 2,015,924 shares traded. CMCSA's current last sale is 86.39% of the target price of $44.
Invesco QQQ Trust, Series 1 (QQQ) is -0.03 at $320.12, with 1,986,898 shares traded. This represents a 25.9% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.08 at $166.09, with 1,986,726 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
J P Morgan Chase & Co (JPM) is -0.0001 at $130.16, with 1,948,113 shares traded. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
Haleon plc (HLN) is +0.001 at $8.17, with 1,795,162 shares traded. HLN's current last sale is 99.63% of the target price of $8.2.
Huntington Bancshares Incorporated (HBAN) is unchanged at $11.17, with 1,746,306 shares traded. HBAN's current last sale is 74.47% of the target price of $15.
Butterfly Network, Inc. (BFLY) is +0.42 at $2.29, with 1,636,237 shares traded. As reported by Zacks, the current mean recommendation for BFLY is in the "strong buy range".
Citigroup Inc. (C) is -0.01 at $46.70, with 1,573,177 shares traded. C's current last sale is 89.81% of the target price of $52.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.08 at $166.09, with 1,986,726 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Invesco S&P SmallCap Energy ETF (PSCE) is -0.0227 at $9.85, with 7,500,002 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 -0.08 at $166.09, with 1,986,726 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
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Apple Inc. (AAPL) is -0.08 at $166.09, with 1,986,726 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 93,674,442 shares traded.
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Apple Inc. (AAPL) is -0.08 at $166.09, with 1,986,726 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 -11.34 to 13,137.01.
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16521.0
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2023-04-03 00:00:00 UTC
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What Lies Ahead for Tech Stocks & ETFs After a Blockbuster Quarter
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AAPL
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https://www.nasdaq.com/articles/what-lies-ahead-for-tech-stocks-etfs-after-a-blockbuster-quarter
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nan
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nan
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(1:00) - Breaking Down The Outlook For The Technology Sector: Will The Current Tech Rally Continue?
(5:45) - The AI Race: Who Will Come Out On Top?
(9:30) - Which Tech Stocks Should You Keep On Your Radar Right Now?
(13:45) - Wedbush ETFMG Global Cloud Technology ETF: IVES
(15:10) - Episode Roundup: XLK, QQQ, QQQM, HACK, IHAK, CIBR
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities, about the market outlook for tech stocks after robust gains in the first quarter.
The Nasdaq 100 surged more than 20% in its best quarter since the second quarter of 2020. Tech stocks have outperformed this year as investors believe that the Fed could stop raising rates soon. These stocks also benefited from their safe-haven status amid banking turmoil.
Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Their biggest quarterly gains in years came after a steep selloff in the sector last year.
Microsoft MSFT is making a multiyear, multibillion-dollar investment in OpenAI, the creator of ChatGPT. According to CEO Satya Nadella, AI is the biggest thing to happen to the company in the nine years since he took over.
Alphabet GOOGL has been investing billions in AI over the past decade, but its chatbot underwhelmed investors. NVIDIA CEO Jensen Huang said recently that AI technology has reached an inflection point.
Who will win the AI arms race?
Dan believes Apple is a "Rock of Gibraltar" stock that will continue to benefit from sustained demand for iPhones and future services revenue. He also likes cybersecurity and cloud stocks like Palo Alto Networks PANW and CrowdStrike CRWD.
The ETF Wedbush ETFMG Global Cloud Technology ETF IVES invests in the “undercover gems” of cloud-based technology.
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.
Disclosure: Wedbush is a market maker in some of the securities discussed above. For a full list click HERE.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
Wedbush ETFMG Global Cloud Technology ETF (IVES): 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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Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Wedbush ETFMG Global Cloud Technology ETF (IVES): ETF Research Reports To read this article on Zacks.com click here. (13:45) - Wedbush ETFMG Global Cloud Technology ETF: IVES (15:10) - Episode Roundup: XLK, QQQ, QQQM, HACK, IHAK, CIBR Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities, about the market outlook for tech stocks after robust gains in the first quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Wedbush ETFMG Global Cloud Technology ETF (IVES): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. (13:45) - Wedbush ETFMG Global Cloud Technology ETF: IVES (15:10) - Episode Roundup: XLK, QQQ, QQQM, HACK, IHAK, CIBR Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities, about the market outlook for tech stocks after robust gains in the first quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Wedbush ETFMG Global Cloud Technology ETF (IVES): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. (13:45) - Wedbush ETFMG Global Cloud Technology ETF: IVES (15:10) - Episode Roundup: XLK, QQQ, QQQM, HACK, IHAK, CIBR Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities, about the market outlook for tech stocks after robust gains in the first quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Wedbush ETFMG Global Cloud Technology ETF (IVES): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. (13:45) - Wedbush ETFMG Global Cloud Technology ETF: IVES (15:10) - Episode Roundup: XLK, QQQ, QQQM, HACK, IHAK, CIBR Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities, about the market outlook for tech stocks after robust gains in the first quarter.
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16522.0
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2023-04-03 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-11
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $166.10, moving +0.72% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 9.18% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.92 per share. This would mark year-over-year growth of 26.32%. Meanwhile, our latest consensus estimate is calling for revenue of $93.39 billion, down 4% from the prior-year quarter.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. These results would represent year-over-year changes of -1.15% and -1.09%, respectively.
Investors should also note any recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Apple is holding a Forward P/E ratio of 27.29. Its industry sports an average Forward P/E of 8.98, so we one might conclude that Apple is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 2.18. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.73 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $166.10, moving +0.72% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. It is also worth noting that AAPL currently has a PEG ratio of 2.18.
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Apple (AAPL) closed the most recent trading day at $166.10, moving +0.72% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. It is also worth noting that AAPL currently has a PEG ratio of 2.18.
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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. Apple (AAPL) closed the most recent trading day at $166.10, moving +0.72% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion.
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Apple (AAPL) closed the most recent trading day at $166.10, moving +0.72% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. It is also worth noting that AAPL currently has a PEG ratio of 2.18.
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16523.0
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2023-04-03 00:00:00 UTC
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Why Apple Stock Was Up 11% in March
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-was-up-11-in-march
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) were moving higher last month as the tech giant trended with gains in the broader tech sector as tech stocks bounced back from the collapse of Silicon Valley Bank and fears of a recession seemed to cool off later in the month.
There was no single driver of the stock's gains in March, though it benefited from high-profile analyst upgrades, previews of its upcoming mixed-reality headset, and signs that it's continuing to focus on cost-cutting.
According to data from S&P Global Market Intelligence, the stock finished March up 11%. As you can see from the chart below, the stock's gains tracked with the Nasdaq, but it rose more aggressively.
^IXIC data by YCharts.
So what
Early in March, the company got a number of bullish analyst notes. JPMorgan said that iPhone demand is high compared to Apple's competitors, while Jefferies also found that demand was strong.
Meanwhile, Morgan Stanley boosted its price target from $175 to $180, reiterating an overweight rating and citing "pent-up" iPhone demand and a reacceleration in its services business.
Shortly after that, Goldman Sachs initiated coverage with a buy rating and a price target of $199, noting the company's growing installed base of users.
In the week of March 13, the stock started gaining again as tech stocks rebounded after Silicon Valley Bank collapsed, and reports confirmed that the company was planning to launch a mixed reality headset in 2023 as CEO Tim Cook pushed the company to release its device this year, according to Financial Times.
Bloomberg also reported that Apple was delaying some bonuses and expanding its hiring freeze, a sign it's expanding its cost-cutting efforts as it faces macroeconomic headwinds.
Among the big tech companies, Apple is the only one that has not announced major layoffs, but it's still a cyclical business. It can't escape the overarching in tech as recessionary threats have cooled off demand, and difficult comparisons have made growth numbers weak.
Towards the end of the month, the company also introduced its own buy-now-pay-later product, "Apple Pay Later," extending the reach of its payments business.
Now what
To start April, Bloomberg reported that the company is cutting a small number of corporate retail positions, another reflection of cost-cutting, and UBS said that iPhone sell-through was down 3% in February year over year, an improvement from previous months, but still a decline.
Apple shares are expensive, but its gains last month show investors are willing to pay up for quality. Even in tough times, the company appears to be strengthening its competitive advantages and putting distance between itself and challengers like Samsung and Alphabet, which should help support its elevated valuation.
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. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher last month as the tech giant trended with gains in the broader tech sector as tech stocks bounced back from the collapse of Silicon Valley Bank and fears of a recession seemed to cool off later in the month. There was no single driver of the stock's gains in March, though it benefited from high-profile analyst upgrades, previews of its upcoming mixed-reality headset, and signs that it's continuing to focus on cost-cutting. Meanwhile, Morgan Stanley boosted its price target from $175 to $180, reiterating an overweight rating and citing "pent-up" iPhone demand and a reacceleration in its services business.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher last month as the tech giant trended with gains in the broader tech sector as tech stocks bounced back from the collapse of Silicon Valley Bank and fears of a recession seemed to cool off later in the month. Shortly after that, Goldman Sachs initiated coverage with a buy rating and a price target of $199, noting the company's growing installed base of users. In the week of March 13, the stock started gaining again as tech stocks rebounded after Silicon Valley Bank collapsed, and reports confirmed that the company was planning to launch a mixed reality headset in 2023 as CEO Tim Cook pushed the company to release its device this year, according to Financial Times.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher last month as the tech giant trended with gains in the broader tech sector as tech stocks bounced back from the collapse of Silicon Valley Bank and fears of a recession seemed to cool off later in the month. In the week of March 13, the stock started gaining again as tech stocks rebounded after Silicon Valley Bank collapsed, and reports confirmed that the company was planning to launch a mixed reality headset in 2023 as CEO Tim Cook pushed the company to release its device this year, according to Financial Times. 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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What happened Shares of Apple (NASDAQ: AAPL) were moving higher last month as the tech giant trended with gains in the broader tech sector as tech stocks bounced back from the collapse of Silicon Valley Bank and fears of a recession seemed to cool off later in the month. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group.
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16524.0
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2023-04-03 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq set to open lower as oil output cut stokes inflation worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-set-to-open-lower-as-oil-output-cut-stokes-inflation-worries
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting.
Saudi Arabia and other OPEC+ oil producers announced further output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after cooling inflation raised hopes that the Fed could soon end its aggressive monetary tightening.
"We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
Major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields.
However, a 4.4% gain in energy major Chevron Corp CVX.Nand a 3% rise in UnitedHealth Group Inc UNH.N following a softer cut to 2024 Medicare Advantage payments by the United States were set to help the Dow Jones .DJI gain at the open.
Bets by traders were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 46.3%, according to CME Group's Fedwatch tool.
U.S. stocks have weathered turbulence in the global banking sector to notch gains in the first quarter, with the S&P 500 .SPX jumping 7% and bouncing back from a near 20% drop in 2022.
The tech-heavy Nasdaq .IXIC recorded its strongest first-quarter jump of 17% since mid-2020.
"We've seen the tech sector rally so hard and so far above everything else that we do expect some profit taking during the month of April," Nolte said.
Investors will closely monitor S&P Global and ISM manufacturing PMI data for March on Monday, with the latter expected to show manufacturing activity weakened in March.
The first-quarter earnings season is also around the corner, with companies expected to start reporting quarterly results in the next few weeks.
At 7:58 a.m. ET, Dow e-minis 1YMcv1 were up 128 points, or 0.38%, S&P 500 e-minis EScv1 were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 91.25 points, or 0.69%.
Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices.
McDonald's Corp MCD.N rose 0.5% after a report said the burger chain is temporarily closing its U.S. offices this week and preparing to inform corporate employees about layoffs.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta 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 stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. "We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
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Major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. ET, Dow e-minis 1YMcv1 were up 128 points, or 0.38%, S&P 500 e-minis EScv1 were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 91.25 points, or 0.69%.
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Major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. However, a 4.4% gain in energy major Chevron Corp CVX.Nand a 3% rise in UnitedHealth Group Inc UNH.N following a softer cut to 2024 Medicare Advantage payments by the United States were set to help the Dow Jones .DJI gain at the open.
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Major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. Bets by traders were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 46.3%, according to CME Group's Fedwatch tool.
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16525.0
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2023-04-03 00:00:00 UTC
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US STOCKS-S&P, Nasdaq futures fall on inflation worries after OPEC+ output cut
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-futures-fall-on-inflation-worries-after-opec-output-cut
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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 mixed: Dow up 0.36%, S&P down 0.10%, Nasdaq down 0.64%
April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as soaring oil prices renewed worries of persistent inflationary pressures, while energy stocks surged at the start of the week.
Saudi Arabia and other OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after a slowdown in U.S. price data boosted market optimism.
Oil prices jumped 5.4% on Monday, propelling over 3% gains in energy firms such as Exxon Mobil Corp XOM.N and Chevron Corp CVX.N in premarket trade. O/R
"It can be expected to have an upwards impact on headline and core CPI ... which potentially means a higher terminal rate for the Fed and rates remaining at an elevated level for longer than hitherto," Stuart Cole, head macro economist at Equiti Capital, said.
An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.6% and 0.9%.
Traders' bets of a 25-basis point rate hike in May stood at 58.7%, with odds of a pause at 41.3%, according to CME Group's Fedwatch tool.
Among other major stocks, Tesla Inc TSLA.O dropped 2% after missing first-quarter deliveries estimates as a bleak economic outlook and rising competition weighed on the electric-vehicle maker's sales.
At 5:09 a.m. ET, Dow e-minis 1YMcv1 were up 119 points, or 0.36%, S&P 500 e-minis EScv1 were down 4 points, or 0.10%, and Nasdaq 100 e-minis NQcv1 were down 84.5 points, or 0.64%.
In the first quarter, that was marked by shockwaves from the collapse of two regional U.S. banks, signs of trouble in some European banks and a repricing in interest rate expectations from the Fed, the S&P 500 .SPX jumped 7%, bouncing back from a near 20% drop in 2022. The Nasdaq .IXIC recorded its strongest first-quarter jump of 17% since 2020.
Investors will closely monitor S&P Global and ISM manufacturing PMI data for March later in the day and much-awaited jobs reports this week.
Remarks by Federal Reserve Board Governor Lisa Cook on economic outlook and monetary policy are also expected later on Monday.
(Reporting by Ankika Biswas in Bengaluru; Additional reporting by Anjur Banerjee; Editing by 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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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.6% and 0.9%. Among other major stocks, Tesla Inc TSLA.O dropped 2% after missing first-quarter deliveries estimates as a bleak economic outlook and rising competition weighed on the electric-vehicle maker's sales. Investors will closely monitor S&P Global and ISM manufacturing PMI data for March later in the day and much-awaited jobs reports this week.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.6% and 0.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Oil prices jumped 5.4% on Monday, propelling over 3% gains in energy firms such as Exxon Mobil Corp XOM.N and Chevron Corp CVX.N in premarket trade.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.6% and 0.9%. Futures mixed: Dow up 0.36%, S&P down 0.10%, Nasdaq down 0.64% April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as soaring oil prices renewed worries of persistent inflationary pressures, while energy stocks surged at the start of the week. Oil prices jumped 5.4% on Monday, propelling over 3% gains in energy firms such as Exxon Mobil Corp XOM.N and Chevron Corp CVX.N in premarket trade.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.6% and 0.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Saudi Arabia and other OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
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16526.0
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2023-04-03 00:00:00 UTC
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Why Apple, Walt Disney, and Take-Two Interactive Are No-Brainer Buys Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-walt-disney-and-take-two-interactive-are-no-brainer-buys-right-now
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nan
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nan
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Apple (NASDAQ: AAPL), Walt Disney (NYSE: DIS), and Take-Two Interactive (NASDAQ: TTWO) have not been immune from the challenges that have hit the economy over the last year. Sales of iPhones stalled last quarter, Disney is being hurt by higher production costs, and Take-Two's latest video game releases generated less revenue than expected.
But these industry leaders have delivered market-beating returns before and will do so again. Here's why investors can confidently buy these stocks today.
Apple
Brand Finance's prestigious Global 500 list ranks Apple as the second-most-valuable brand in the world. The tech giant is relentless in improving the usefulness of its iPhones, Macs, and other devices, which has led to consistently high customer satisfaction scores. That's a big reason why Apple was able to double its installed base of active devices to more than 2 billion over the past seven years.
Apple is not without risks. Inflation and supply chain issues have pressured the company's sales. Specifically, iPhone sales, which provide most of Apple's revenue, dipped by 8% year over year in the quarter that ended Dec. 31. These headwinds have sent the stock down in the past 15 months, and while it has recovered somewhat from its recent lows, it's still off by 9% from where it traded at the end of 2021.
Still, Apple's growth in free cash flow in recent years points to a prosperous future. Over the last year, it generated a staggering $97 billion in free cash flow on $387 billion in total sales. That's more free cash flow than Microsoft, Amazon, and Meta Platforms combined. That gives it a huge war chest it can use to market itself and invest in new growth initiatives.
Data by YCharts.
While investors are increasingly focused on Apple's services business as a long-term growth catalyst, the iPhone still has a lot of potential to win new customers. In emerging markets, Apple's installed base grew at double-digit percentage rates in the most recent quarter. Most importantly, Apple reported record levels of customers switching from competing smartphone brands to iPhones in India and Mexico.
Apple's brand and consistent streams of free cash flow are good reasons to hold its stock for the long term, but there's one last reason to consider buying the stock right now. It is widely expected that the company will announce its long-rumored mixed-reality headset this year. With that potential catalyst dangling in front of investors, Apple is a no-brainer.
Walt Disney
Disney has been entertaining children and families for a century. It's hard to imagine the world without Disney, which might be enough reason to justify buying shares, but there are specific reasons why now is a perfect time to open a position in the stock.
The stock has fallen by 53% from its previous highs, yet the company has valuable assets that could unlock substantial value for shareholders.
CEO Bob Iger, who led the company to market-beating returns during his first stint in the top job between 2005 and 2020, returned to the helm in November. He's looking to bring down costs in the streaming business and improve profitability, and some analysts believe these cost-reduction plans could lead Disney to sell its majority stake in Hulu next year. Citi (NYSE: C) analyst Jason Bazinet sees marginal upside of about $13 per share, or about 13% of Disney's recent share price, from a possible sale.
Whether Disney sells its Hulu stake or not, there is tremendous value in its various media assets, including ABC, ESPN, and its growing theme park business, that may not be fully reflected in the current stock price of $98.
Indeed, Disney stock is selling at just 2.1 times trailing-12-month revenue, which is its lowest price-to-sales valuation in over 10 years. Yet it has experienced tremendous growth in subscribers to Disney+ over the last few years, and its theme park business is generating more revenue and profits than it did before the pandemic.
Disney is a timeless brand that appears undervalued right now, making it a no-brainer buy.
Take-Two Interactive
Take-Two has had an impressive run in recent years in the $200 billion video game industry. The company's flagship title, Grand Theft Auto V, has sold an impressive 175 million copies since its 2013 debut, and it's still going strong.
Across all its games, Take-Two's revenue has more than doubled over the last five years, and management is keeping its foot on the gas. Not many companies are expanding their capital investments in this uncertain economic environment, but management sees a great opportunity to capitalize on its improved profitability from the success of Grand Theft Auto V to expand its game lineup.
Data by YCharts.
Since Red Dead Redemption 2 launched in 2018, it has sold over 50 million units, but there are eight more new titles from previously established game franchises set to be released through its fiscal 2025. One of those is likely the next installment in the Grand Theft Auto series, which will be selling to a larger fan base.
The company also has 38 titles set for release on mobile devices. On that note, Take-Two's $12.7 billion acquisition of Zynga, the maker of Words With Friends, positions the company well to capture a piece of the burgeoning in-game mobile advertising market, which Allied Market Research estimates will grow to a value of nearly $18 billion by 2030.
Sales of Take-Two's established franchises have remained resilient over the last year, but its top-line growth has been weaker than investors expected. This is primarily due to weakness in recent releases, but it's also why the stock is selling at an attractive discount. The stock is down by 46% from its high, which presents investors with an attractive entry point considering the abundant opportunities the company will have in gaming over the long term.
10 stocks we like better than Apple
When our award-winning 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
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Citigroup is an advertising partner of The Ascent, a Motley Fool company. John Ballard has positions in Amazon.com and Take-Two Interactive Software. The Motley Fool has positions in and recommends Amazon.com, Apple, Meta Platforms, Microsoft, Take-Two Interactive Software, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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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Apple (NASDAQ: AAPL), Walt Disney (NYSE: DIS), and Take-Two Interactive (NASDAQ: TTWO) have not been immune from the challenges that have hit the economy over the last year. Sales of iPhones stalled last quarter, Disney is being hurt by higher production costs, and Take-Two's latest video game releases generated less revenue than expected. He's looking to bring down costs in the streaming business and improve profitability, and some analysts believe these cost-reduction plans could lead Disney to sell its majority stake in Hulu next year.
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Apple (NASDAQ: AAPL), Walt Disney (NYSE: DIS), and Take-Two Interactive (NASDAQ: TTWO) have not been immune from the challenges that have hit the economy over the last year. Take-Two Interactive Take-Two has had an impressive run in recent years in the $200 billion video game industry. The Motley Fool has positions in and recommends Amazon.com, Apple, Meta Platforms, Microsoft, Take-Two Interactive Software, and Walt Disney.
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Apple (NASDAQ: AAPL), Walt Disney (NYSE: DIS), and Take-Two Interactive (NASDAQ: TTWO) have not been immune from the challenges that have hit the economy over the last year. Apple's brand and consistent streams of free cash flow are good reasons to hold its stock for the long term, but there's one last reason to consider buying the stock right now. 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), Walt Disney (NYSE: DIS), and Take-Two Interactive (NASDAQ: TTWO) have not been immune from the challenges that have hit the economy over the last year. Apple's brand and consistent streams of free cash flow are good reasons to hold its stock for the long term, but there's one last reason to consider buying the stock right now. Take-Two Interactive Take-Two has had an impressive run in recent years in the $200 billion video game industry.
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16527.0
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2023-04-03 00:00:00 UTC
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Is it Time to Take a Bite Out of Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-time-to-take-a-bite-out-of-apple-stock-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since the start of the year, investors have warmed back up to Apple (NASDAQ:AAPL). AAPL stock has climbed by nearly 30% during this time frame.
Although some of its more recent lift may be because of investors cycling back into big tech, as a safe harbor from the banking crisis, rising confidence in the company’s prospects has been the key driver.
Following this rally, the question is whether now is a good time to enter/add to a position, or to sit on the sidelines.
On one hand, Apple is of course not immune to the tech sector headwinds that are still affecting the other FAANG components. This tech giant may have a stronger chance of reporting better results much sooner, and to a greater extent, compared to its rivals.
So, what’s the best move? Let’s dive in and find out.
AAPL Apple $164.90
Why AAPL Stock has Outperformed
Apple shares have outperformed the broad market (as measured by the S&P 500) year-to-date. Not only that, the stock has outperformed most other large-cap tech names, including Microsoft (NASDAQ:MSFT).
Again, improved investor sentiment, not necessarily company-specific news, has been the main reason AAPL stock has been “crushing it” as of late. But that doesn’t mean the current surge in optimism is based on nothing more than wishful thinking. Recently, several sell-side analysts have been laying out a substantive bull case for Apple.
For example, Jeffries analyst Kyle McNealy has argued that channel checks show that demand for iPhones remains robust, despite current economic headwinds.
Other analysts, like Wedbush’s Dan Ives, have also noted demand trends appear promising for the iPhone, particularly in China. Optimism for Apple does not end there.
As Goldman Sachs’ Michael Ng discussed in a recent research note, various factors like secular growth in its Services unit could “more than offset cyclical headwinds.”
This suggests that, like I mentioned above, Apple may have an easier time exiting the current tech downturn than, say, Google parent Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Or does it?
A Near-Term Pullback Is Possible
Analysts seem to be bullish on AAPL stock again, and so does the market. However, before pouncing on shares at current prices, on the expectation that the “trend is your friend,” keep in mind that rising optimism alone doesn’t guarantee a smooth ride back to all-time highs.
The situation with Apple may be much better than previously feared, but the tech slowdown remains likely to weigh on results in the near-term.
The sell-side, after lowering its earnings forecast for the current quarter after the last earnings release, has yet to raise it. If you may recall from the prior quarterly earnings release on Feb. 1, results fell short of expectations.
If results again come up short, it may knock some of the wind out of the latest AAPL rally. That’s not all.
While iPhone demand trends may be promising today, that doesn’t mean further weakness doesn’t lie ahead. A much-feared global recession still hasn’t arrived.
If one takes shape within the year, this could increase uncertainty about Apple’s potential to embark on an earnings rebound starting in the next fiscal year, as implied by current sell-side forecasts. Another pullback is within the realm of possibility.
My Verdict on AAPL
Even as there are a few factors that could temporarily knock AAPL lower in the short-term, conversely, some upcoming developments may give the latest rally some additional runway.
A good example is with this year’s Worldwide Developers Conference (or WWDC), scheduled to take place between June 5 and June 9. At the event, Apple could unveil its much-anticipated augmented reality/virtual reality (or AR/VR) headset product.
That said, it may be best to assume that shares remain vulnerable to a pullback. While performing better than other FAANG components, sector-specific issues are not yet in the past and could again weigh on sentiment.
Still, if your time horizon extends beyond the here and now, and you are bullish on its long-term catalysts, take a bite out of AAPL stock at current prices.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, Louis Navellier had a long position in GOOG and MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any 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 Is it Time to Take a Bite Out of Apple Stock? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of the year, investors have warmed back up to Apple (NASDAQ:AAPL). AAPL stock has climbed by nearly 30% during this time frame. AAPL Apple $164.90 Why AAPL Stock has Outperformed Apple shares have outperformed the broad market (as measured by the S&P 500) year-to-date.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of the year, investors have warmed back up to Apple (NASDAQ:AAPL). AAPL Apple $164.90 Why AAPL Stock has Outperformed Apple shares have outperformed the broad market (as measured by the S&P 500) year-to-date. AAPL stock has climbed by nearly 30% during this time frame.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of the year, investors have warmed back up to Apple (NASDAQ:AAPL). AAPL Apple $164.90 Why AAPL Stock has Outperformed Apple shares have outperformed the broad market (as measured by the S&P 500) year-to-date. AAPL stock has climbed by nearly 30% during this time frame.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of the year, investors have warmed back up to Apple (NASDAQ:AAPL). A Near-Term Pullback Is Possible Analysts seem to be bullish on AAPL stock again, and so does the market. If results again come up short, it may knock some of the wind out of the latest AAPL rally.
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16528.0
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2023-04-03 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-7
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $15.81 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.61%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 25.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 23.72% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has gained about 7.45% so far this year and is down about -7.91% in the last one year (as of 04/03/2023). In the past 52-week period, it has traded between $41.93 and $53.73.
The ETF has a beta of 1 and standard deviation of 19.94% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 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, SPLG is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $307.41 billion in assets, SPDR S&P 500 ETF has $374.59 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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. Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Alternatives SPDR Portfolio S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
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16529.0
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2023-04-03 00:00:00 UTC
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Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-esg-aware-msci-usa-etf-esgu-a-strong-etf-right-now-6
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nan
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nan
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Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund launched on 12/01/2016.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $14.27 billion, making it the largest ETF in the Style Box - All Cap Growth. Before fees and expenses, ESGU seeks to match the performance of the MSCI USA ESG Focus Index.
The MSCI USA Extended ESG Focus Index comprises of U.S. companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index.
Cost & Other Expenses
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 0.15%, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.65%.
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.
ESGU's heaviest allocation is in the Information Technology sector, which is about 27.40% of the portfolio. Its Healthcare and Financials round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.85% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 21.26% of total assets under management.
Performance and Risk
So far this year, ESGU has gained about 7.28%, and is down about -9.28% in the last one year (as of 04/03/2023). During this past 52-week period, the fund has traded between $79.22 and $102.58.
The fund has a beta of 1.02 and standard deviation of 20.43% for the trailing three-year period. With about 313 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares ESG Aware MSCI USA ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index. Vanguard ESG U.S. Stock ETF has $6.10 billion in assets, iShares ESG Aware MSCI EAFE ETF has $7.21 billion. ESGV has an expense ratio of 0.09% and ESGD charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.85% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund launched on 12/01/2016.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.85% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund launched on 12/01/2016.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.85% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.85% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund launched on 12/01/2016.
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16530.0
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2023-04-03 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-13
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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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16531.0
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2023-04-03 00:00:00 UTC
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Zacks Industry Outlook Highlights Apple and HP
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AAPL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-apple-and-hp-1
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nan
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nan
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For Immediate Release
Chicago, IL – April 3, 2023 – Today, Zacks Equity Research discusses Apple AAPL and HP HPQ.
Industry: Mini-Computers
Link: https://www.zacks.com/commentary/2073280/2-stocks-to-watch-from-the-prospering-computer-industry
The Zacks Computer – Mini Computers industry is suffering from the waning demand for consumer PCs, massive supply-chain issues and geopolitical challenges, including raging inflation and high interest. Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple and HP.
The improving availability of 5G-enabled smartphones has been a key catalyst for industry participants. The growing adoption of tablets among enterprises bodes well for companies like Apple and Lenovo. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables, and hearables is another major growth driver for industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung.
Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow.
BYOD has proved more productive, as it lowers training time. Moreover, the coronavirus-induced remote-working and online-learning models bode well for industry participants, as demand is expected to increase for desktops and laptops.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers.
Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #103, which places it in the top 41% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector, S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector, and the S&P 500 index over the past year.
The industry has dropped 7.1% over this period compared with the S&P 500’s decline of 11.7% and the broader sector’s fall of 14.6%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 24.99X compared with the S&P 500’s 18.16X and the sector’s 22.91X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 22.41X.
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple currently has more than 935 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2023 earnings has declined by a penny to $6.04 per share over the past 30 days. The stock has lost 6.9% in the past year.
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Product innovation and differentiations are the key drivers that have helped HP maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has been unchanged at $3.27 per share over the past 30 days. Shares of HP have declined 18.9% in the past year.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – April 3, 2023 – Today, Zacks Equity Research discusses Apple AAPL and HP HPQ. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – April 3, 2023 – Today, Zacks Equity Research discusses Apple AAPL and HP HPQ. Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – April 3, 2023 – Today, Zacks Equity Research discusses Apple AAPL and HP HPQ. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – April 3, 2023 – Today, Zacks Equity Research discusses Apple AAPL and HP HPQ. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Outperforms Sector, S&P 500 The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector, and the S&P 500 index over the past year.
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16532.0
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2023-04-03 00:00:00 UTC
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Qualcomm Is The Higher Reward, For Higher Risk Takers
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AAPL
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https://www.nasdaq.com/articles/qualcomm-is-the-higher-reward-for-higher-risk-takers
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nan
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nan
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Market participants have been facing a tough choice lately regarding the chip and semiconductor industry. As geopolitical tensions arise between the United States and China, especially in the intellectual property sphere, many players in the space find themselves staring down a nasty divorce.
The United States is looking to regain and maintain its global leadership position in being the sole producer of the most advanced chip and semiconductor technologies, using the latest and most efficient engineering methodologies to produce these necessary components for the overall economy. China can be seen as the apple that does not fall far from the proverbial tree, as the nation is also looking to establish itself as a leader in chip manufacturing and engineering.
This clash of titans has escalated into full-blown restrictions on exports and intellectual property concerns from both parties. The United States has slapped chip manufacturing machinery restrictions on China, and China has accused the United States of unfair market practices, as companies like Huawei and Bytedance have been blocked from entering the marketplace. The climax of this conflict seems to be who keeps the closest ties with Taiwan, where Taiwan Semiconductor Manufacturing (NYSE: TSM) operates and produces most of the world's chips and semiconductors with low labor costs, and which of the two contestants will have access to the engineering and development capacities for the most advanced chips out there.
Warfare on all Flanks
This highly competitive industry can be broken down into three main spaces or markets which the largest players serve. The smartphone and mobile device market, the desktop and laptop market and the networking or data processing equipment market (refer to routers and data centers/cloud computing).
NVIDIA (NASDAQ: NVDA) has a track record of historically dominating the GPU market, where GPUs greatly enhance artificial intelligence capabilities and graphics on desktop and laptop devices. Intel (NASDAQ: INTC) is a major player in the x86 and microprocessor space, along with their latest announcement launching the Sierra Forest chip, which will accelerate their operational stance and capacity in aiding the growth of artificial intelligence models relying on data processing, data centers, and cloud computing power by the same extension.
Lastly, the smartphone and mobile device chip market is mainly dominated by Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM). These two competitors comprehensively break down an investor's view as to whether the United States or China will come out ahead in this "chip war".
Asia Telecoms? Think Qualcomm
Apple has historically generated most of its revenue from the Western world, including revenue from their iPhones which carry A-chips. On the other hand, Qualcomm is a competing smartphone and mobile device chip firm that derives most (60%+) of its revenue from China, Vietnam, and South Korea.
Qualcomm chips have historically operated in a sort of bubble, landing deals with brand after brand and riding the tailwind of the fastest-growing economies in the world. As Asia wakes up to faster and further economic advancement, more citizens are able to afford better and more powerful mobile devices - namely smartphones - and the dominating Asian phone brands also happen to carry Qualcomm chips.
Phone brands such as Samsung, Xiaomi, Google Pixel, LG, Motorola, Sony, Asus have been sporting Qualcomm mobile chips for quite some time. Whether these chips have attributed to the continued popularity and growing adoption of these phones is up to the users themselves. Still, investors can appreciate the impact they have had on the mobile market.
The Snapdragon 8 Series Processor
A red dragon has historically represented China. Qualcomm chose to launch its newest and most advanced processor to date sporting a red theme and naming it after the spirit creature, perhaps solidifying its ties to the East Asia giant. What is more important, however, is what this new processor will allow its users to accomplish.
The Snapdragon 8 series will include a high-performance CPU along with an advanced GPU, thus giving it the best of both worlds in terms of data capacity and computing power. Additionally, it is the world's first 5G A.I. modem, showcasing a 40-45% improvement in power savings.
Effectively, this new processor will allow smartphones across Asia to access 5G processing speeds and communications, along with extending the desktop and laptop capabilities for data processing and cloud computing. Given that 60%+ of Qualcomm's revenues come from China, the red giant will be pleased to have access to technology that will enhance their plans of chip technology leadership.
Room for Upside?
Qualcomm has showcased just how important the Chinese economy is to its business, as 2021 and 2022 saw 42.6% and 31.7% revenue growth, respectively, coinciding with the reopening of the Asian economy. Despite closing of one of the major economies in the world during 2020, the company only saw revenue contractions of -3.1% with margins as steady as ever; gross margins remained at their historical 57-60% and net margins followed in their 22-26% average range.
When considering Qualcomm's potential today, it is important to note that China has not completed its reopening entirely. The Chinese government has pledged to inject $1.5 trillion Yuaninto its economy, with a focus on infrastructure spending and the consumer sector. As a result, investors may expect further double-digit revenue growth for 2023, along with high net income margins.
As of today, the stock trades at 11.2x its earnings per share, representing a cheap valuation that is further accentuated by the $11 billion USD in share buybacks and dividends paid out to investors during 2022. The company's increase in inventory, from 7.8% of assets to a five-year high of 12.9% of assets, suggests that it is stocking up for a big year and reflects expectations of strong revenue growth from the Chinese reopening.
Analysts seem to agree with this tailwind facing Qualcomm, as they have assigned a consensus 22% upside to the stock at these levels. Bullish divergences in weekly RSI and stochastic levels may also point to the stock gearing for a rally in the near future.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lastly, the smartphone and mobile device chip market is mainly dominated by Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM). NVIDIA (NASDAQ: NVDA) has a track record of historically dominating the GPU market, where GPUs greatly enhance artificial intelligence capabilities and graphics on desktop and laptop devices. As Asia wakes up to faster and further economic advancement, more citizens are able to afford better and more powerful mobile devices - namely smartphones - and the dominating Asian phone brands also happen to carry Qualcomm chips.
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Lastly, the smartphone and mobile device chip market is mainly dominated by Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM). NVIDIA (NASDAQ: NVDA) has a track record of historically dominating the GPU market, where GPUs greatly enhance artificial intelligence capabilities and graphics on desktop and laptop devices. As Asia wakes up to faster and further economic advancement, more citizens are able to afford better and more powerful mobile devices - namely smartphones - and the dominating Asian phone brands also happen to carry Qualcomm chips.
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Lastly, the smartphone and mobile device chip market is mainly dominated by Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM). The United States has slapped chip manufacturing machinery restrictions on China, and China has accused the United States of unfair market practices, as companies like Huawei and Bytedance have been blocked from entering the marketplace. As Asia wakes up to faster and further economic advancement, more citizens are able to afford better and more powerful mobile devices - namely smartphones - and the dominating Asian phone brands also happen to carry Qualcomm chips.
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Lastly, the smartphone and mobile device chip market is mainly dominated by Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM). The smartphone and mobile device market, the desktop and laptop market and the networking or data processing equipment market (refer to routers and data centers/cloud computing). Qualcomm has showcased just how important the Chinese economy is to its business, as 2021 and 2022 saw 42.6% and 31.7% revenue growth, respectively, coinciding with the reopening of the Asian economy.
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16533.0
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2023-04-03 00:00:00 UTC
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US STOCKS-S&P, Nasdaq futures slip as oil output cut reignites inflation worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-futures-slip-as-oil-output-cut-reignites-inflation-worries
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting.
Saudi Arabia and other OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after data showing cooling inflation fueled hopes that the Fed could soon end its aggressive monetary tightening.
As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%. O/R
"We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%.
Traders' bets were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 39.8%, according to CME Group's Fedwatch tool.
Among other major stocks, Tesla Inc TSLA.O fell 2.1% after the electric-vehicle maker posted record quarterly vehicle deliveries, but quarter-on-quarter sales growth was modest despite price cuts.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 131 points, or 0.39%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.04%, and Nasdaq 100 e-minis NQcv1 were down 81 points, or 0.61%.
U.S. stocks have weathered turbulence in the global banking sector to notch gains in the first quarter, with the S&P 500 .SPX jumping 7% and bouncing back from a near 20% drop in 2022. The tech-heavy Nasdaq .IXIC recorded its strongest first-quarter jump of 17% since mid-2020.
"We've seen the tech sector rally so hard and so far above everything else that we do expect some profit taking during the month of April," Nolte said.
Investors will closely monitor S&P Global and ISM manufacturing PMI data for March on Monday, with the latter expected to show manufacturing activity weakened in March.
The first-quarter earnings season is also around the corner, with companies expected to start reporting quarterly results in the next few weeks.
Remarks by Fed Board Governor Lisa Cook on economic outlook and monetary policy are also expected later on Monday.
Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nfell about 1% each premarket on surging crude prices.
McDonald's Corp MCD.N edged 0.7% higher after a report said the burger chain is temporarily closing its U.S. offices this week and preparing to inform corporate employees about layoffs.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by 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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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. O/R "We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%.
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An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. This comes just days after data showing cooling inflation fueled hopes that the Fed could soon end its aggressive monetary tightening.
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16534.0
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2023-04-03 00:00:00 UTC
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Intel Promised A Comeback, And It Delivered
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AAPL
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https://www.nasdaq.com/articles/intel-promised-a-comeback-and-it-delivered
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nan
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nan
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The chip and semiconductor industry has recently felt, for investors and operators alike, like a battleground. Competition and market share seem to be taking off exponentially in decisive directions and specific spaces within the ecosystem. The rise of artificial intelligence and its many uses, such as self-driving electric vehicles, facial and voice recognition advances, and the explosive breakout of the hottest tool of the day, ChatGPT, has directed the attention of markets and investors alike, who are attempting to figure out which of the several players in the space will come out as the winner.
To start, a quick history lesson is in order so that readers can understand why China and the United States find themselves under heightened political tensions around chip exports and a possible Taiwan invasion. For the better part of the 1950s and early 2000s, the United States was the global hub for anything technology and computing power.
Anything that had Palo Alto, "Silicon Valley," and "Garage" in the same sentence was surely destined to become a disruptive giant. When companies like International Business Machines (NYSE: IBM) and Apple (NYSE: AAPL) started to gain significant market share, competition pressure for margin expansion began to eat into their bottom lines, thus prompting the exploration of cheaper operations overseas.
China was the hub for manufacturing these chips for a few decades, while the United States was the place to go for engineering and development. Once China started to become a wealthier nation and its citizens got a taste of achievement and competition, companies like Huawei and Semiconductor Manufacturing International (OTCMKTS: SMICY) began to release products that targeted the vast market share of their American counterparts.
Huawei had so much success in competing that several governments had to ban their devices from being sold. China remained in the back seat as it kept manufacturing and collecting intellectual property for more advanced chip manufacturing methodologies, as well as exposing itself to the world's largest manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM).
Current State of the Chip Industry
Up until the mid-2010s, the chip industry was stagnant around x86 chips and the microprocessor, relying heavily on Chinese and Taiwanese abilities to meet output demands and keep costs low. Modern-day demand has shifted toward artificial intelligence and data center-enhancing chips, which require a step farther from the classic CPU. A CPU can only process one dataset at a time and manipulate it one iteration at a time. Thus, the machine learning models that drive A.I. take forever to train and complete, and data centers become negligible in the eyes of outstanding needs.
NVIDIA (NASDAQ: NVDA) has dominated this space with its leadership position in the GPU market. A GPU - compared to a CPU - can process several data sets simultaneously and perform various iterations simultaneously, thus delivering the computing power that A.I. and data centers need to perform.
This GPU revolution is extremely important because missing that train is what has kept Intel (NASDAQ: INTC) in the dark for many years as it stuck to x86 and microprocessors mainly, completely dropping the ball on mobile and A.I. tailwinds.
U Turn Ahead
Despite the overall industry experiencing 20%+ CAGRs, Intel has delivered single digit revenue growth since 2015, accompanied by decreasing market share in their respective markets and a 20% compression in gross margins to 2022. New CEO Pat Gelsinger has taken these and other stagnant drivers to heart.
Gelsinger devised a plan for the company to return to its former glory and serve as the leader in decoupling chip manufacturing dependency on China and Taiwan. First, he made it clear that the company will see significantly leaner free cash flows for investors, as he plans to deploy $20 billion USD, with contingency for more, into foundries in the United States - a first step into bringing back domestic production and increased control over the supply chain. These foundries will be granted ASML's latest technology in extreme ultraviolet (EUV) lithography, allowing for the making of 10 nanometer chips codenamed Sierra Forest.
Yes, this has caused the company to severely strip the dividend payout to shareholders, cut executive pay, and execute layoffs. What this means is that delayed gratification will bring on a new wave of customers that are looking to decouple from the volatility and geopolitical risk currently being experienced in East Asia, with China placing more restrictions on chip exports, as well as the United States' retaliation in restricting chip manufacturing machinery to China.
This effectively means for Intel shareholders and potential investors a double tailwind coming from the two main narratives affecting the chip industry. Firstly, the new foundries being U.S.-based will provide increased market share and governmental support as it has become top of mind to domesticate the chip industry. Secondly, the release of the Sierra Forest chip will be a direct competitor to the GPUs made by NVIDIA, thus placing Intel back in the fight for A.I. and data center customer preference.
A Test of Faith
Investors are faced with a renewed growth story, which comes with greater risks and possible delays. The new chips have been released ahead of schedule, and the Sierra Forest chips will come in 2024 when originally scheduled for 2025. However, shareholders who liked Intel for its steady share price and reliable dividend may have to look deeper into their motives for holding or getting into this stock.
Analysts see a downside in their consensus price targets from here, given that most are still doubtful about what numbers could look like in the following years with regards to foundry completion and operational capacity. There is a beacon of hope for those who think the boat has sailed. The stock presents a strong weekly support level in the $24-$25 range, which also acts as a weekly RSI oversold area and a "golden ratio" Fibonacci retracement. Moreover, the company's NAV (Net Asset Value, computed as total assets minus total debt) stands at $26.10 per share, and the book value per share is $24.60.
Further tension with China and a global slowdown in the PC market demand may give investors another chance to consider buying these cheap shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When companies like International Business Machines (NYSE: IBM) and Apple (NYSE: AAPL) started to gain significant market share, competition pressure for margin expansion began to eat into their bottom lines, thus prompting the exploration of cheaper operations overseas. The rise of artificial intelligence and its many uses, such as self-driving electric vehicles, facial and voice recognition advances, and the explosive breakout of the hottest tool of the day, ChatGPT, has directed the attention of markets and investors alike, who are attempting to figure out which of the several players in the space will come out as the winner. To start, a quick history lesson is in order so that readers can understand why China and the United States find themselves under heightened political tensions around chip exports and a possible Taiwan invasion.
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When companies like International Business Machines (NYSE: IBM) and Apple (NYSE: AAPL) started to gain significant market share, competition pressure for margin expansion began to eat into their bottom lines, thus prompting the exploration of cheaper operations overseas. Once China started to become a wealthier nation and its citizens got a taste of achievement and competition, companies like Huawei and Semiconductor Manufacturing International (OTCMKTS: SMICY) began to release products that targeted the vast market share of their American counterparts. A GPU - compared to a CPU - can process several data sets simultaneously and perform various iterations simultaneously, thus delivering the computing power that A.I.
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When companies like International Business Machines (NYSE: IBM) and Apple (NYSE: AAPL) started to gain significant market share, competition pressure for margin expansion began to eat into their bottom lines, thus prompting the exploration of cheaper operations overseas. China remained in the back seat as it kept manufacturing and collecting intellectual property for more advanced chip manufacturing methodologies, as well as exposing itself to the world's largest manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM). Current State of the Chip Industry Up until the mid-2010s, the chip industry was stagnant around x86 chips and the microprocessor, relying heavily on Chinese and Taiwanese abilities to meet output demands and keep costs low.
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When companies like International Business Machines (NYSE: IBM) and Apple (NYSE: AAPL) started to gain significant market share, competition pressure for margin expansion began to eat into their bottom lines, thus prompting the exploration of cheaper operations overseas. China was the hub for manufacturing these chips for a few decades, while the United States was the place to go for engineering and development. What this means is that delayed gratification will bring on a new wave of customers that are looking to decouple from the volatility and geopolitical risk currently being experienced in East Asia, with China placing more restrictions on chip exports, as well as the United States' retaliation in restricting chip manufacturing machinery to China.
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16535.0
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2023-04-03 00:00:00 UTC
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Better Buy: Roku vs. Netflix
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-roku-vs.-netflix
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nan
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nan
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Roku (NASDAQ: ROKU) started out as a streaming device spin-off of Netflix (NASDAQ: NFLX) in 2008. Since then, both companies have profited from the explosive growth of the streaming market. Roku is now the top streaming device brand in the U.S., while Netflix is the world's largest premium streaming video platform.
Roku and Netflix both experienced robust growth during the pandemic, which drove more people to stay at home and watch more streaming content. However, that growth spurt also set both companies up for tough year-over-year comparisons in a post-pandemic market. Rising interest rates exacerbated that pressure by driving investors away from growth stocks.
That's why Roku and Netflix now trade about 90% and 50%, respectively, below their record highs from 2021. Should investors buy either of these fallen stocks as a long-term play on the streaming media market?
Image source: Getty Images.
The differences between Roku and Netflix
In 2022 Roku generated 87% of its revenue from its platform division, which sells ads on Roku OS (and the integrated Roku Channel). The other 13% came from its devices unit, which sells streaming sticks, boxes, and smart TVs.
Roku's platform business is profitable, but its devices business isn't. It aims to subsidize the growth of its loss-leading devices with its higher-margin platform revenue, but that strategy faces two major hurdles. First, the macro headwinds have recently throttled its ad sales and reduced the gross margins of its platform business. Second, the device segment's losses have been widening as Roku grapples with higher supply chain costs. Instead of passing those costs onto its customers, Roku is absorbing them to maintain its lower prices and stay competitive in the crowded streaming device market.
Netflix generates nearly all of its revenue from its paid subscriptions, but that could gradually change as it rolls out cheaper ad-supported tiers this year. Most of Netflix's top competitors -- including Disney's (NYSE: DIS) Disney+, Warner Bros. Discovery's (NASDAQ: WBD) HBO Max, and Paramount+ (NASDAQ: PARA) -- already offer cheaper ad-supported tiers. But Netflix is still the only major streaming video platform that generates consistent profits.
Netflix is profitable for three simple reasons: It established a first-mover's advantage in the premium streaming video market in 2007, it leveraged that head start to expand its infrastructure and cut costs, and it developed a big library of first-party content that reduced its dependence on third-party content. Meanwhile, its rivals are all hastily expanding their infrastructure while clumsily pivoting from licensing-based business models to direct-to-consumer streams.
Which company is growing faster?
Roku and Netflix both experienced severe slowdowns in 2022. Roku's sales of ads and devices stalled out in a post-pandemic market rattled by macro headwinds, while Netflix struggled to expand as more competitors expanded into its backyard.
GROWTH METRIC
2018
2019
2020
2021
2022
Roku Revenue Growth
45%
52%
58%
55%
13%
Netflix Revenue Growth
35%
28%
24%
19%
6%
Data source: Roku and Netflix.
For 2023, analysts expect Roku's revenue to only rise 5%, and for Netflix's revenue to grow 9%. We should take those estimates with a grain of salt, but they suggest the streaming market will remain sluggish in this tough macro environment.
Yet both companies are still gaining new users. Roku's number of active accounts rose 16% to 70 million in 2022, partly driven by the rapid growth of the Roku Channel, while Netflix's paid subscribers grew 4% to 231 million in 2022.
However, Roku will likely stay unprofitable for the foreseeable future as the losses from its devices segment continue to eat the platform segment's profits. Analysts expect Netflix's earnings to rise 15% this year as its subscriber growth stabilizes, it expands its ad-supported tier, and it cracks down on shared passwords.
The clear winner: Netflix
Netflix's high-growth days might be over, but it's still a more stable play on the secular expansion of the streaming market than Roku, which could see its margins continue to wither away as it ramps up its investments in the Roku Channel and wages a loss-leading war against formidable tech giants like Amazon, Alphabet's Google, and Apple in the saturated streaming device market. Netflix also faces competitive headwinds, but its scale, stable profit growth, and reasonable forward price-to-earnings ratio of 28 all make it a more attractive investment than Roku right now.
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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. Leo Sun has positions in Alphabet, Amazon.com, Apple, Walt Disney, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, Roku, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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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Analysts expect Netflix's earnings to rise 15% this year as its subscriber growth stabilizes, it expands its ad-supported tier, and it cracks down on shared passwords. The clear winner: Netflix Netflix's high-growth days might be over, but it's still a more stable play on the secular expansion of the streaming market than Roku, which could see its margins continue to wither away as it ramps up its investments in the Roku Channel and wages a loss-leading war against formidable tech giants like Amazon, Alphabet's Google, and Apple in the saturated streaming device market. Netflix also faces competitive headwinds, but its scale, stable profit growth, and reasonable forward price-to-earnings ratio of 28 all make it a more attractive investment than Roku right now.
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2018 2019 2020 2021 2022 Roku Revenue Growth 45% 52% 58% 55% 13% Netflix Revenue Growth 35% 28% 24% 19% 6% Data source: Roku and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, Roku, Walt Disney, and Warner Bros. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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The differences between Roku and Netflix In 2022 Roku generated 87% of its revenue from its platform division, which sells ads on Roku OS (and the integrated Roku Channel). 2018 2019 2020 2021 2022 Roku Revenue Growth 45% 52% 58% 55% 13% Netflix Revenue Growth 35% 28% 24% 19% 6% Data source: Roku and Netflix. The clear winner: Netflix Netflix's high-growth days might be over, but it's still a more stable play on the secular expansion of the streaming market than Roku, which could see its margins continue to wither away as it ramps up its investments in the Roku Channel and wages a loss-leading war against formidable tech giants like Amazon, Alphabet's Google, and Apple in the saturated streaming device market.
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The differences between Roku and Netflix In 2022 Roku generated 87% of its revenue from its platform division, which sells ads on Roku OS (and the integrated Roku Channel). 2018 2019 2020 2021 2022 Roku Revenue Growth 45% 52% 58% 55% 13% Netflix Revenue Growth 35% 28% 24% 19% 6% Data source: Roku and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, Roku, Walt Disney, and Warner Bros.
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16536.0
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2023-04-02 00:00:00 UTC
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3 Growth Stocks That Are Leading the Innovation Race
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-that-are-leading-the-innovation-race
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are many ways to make the most of the stock market, but arguably one of the best is to invest in innovative growth stocks.
Growth stocks are companies that are expected to grow their earnings, revenue or cash flow faster than their peers or the market at large. They tend to be industry pioneers with a disruptive product or service that’s changing the game in a significant way. Amazon (NASDAQ:AMZN) is a great example of this in the e-commerce space. Apple (NASDAQ:AAPL) is another well-known innovator that changed the way we listened to music and made investors a handsome pile of cash along the way.
That said, finding innovative growth stocks is harder than it might sound. For every Amazon or Apple there are tens of dozens of failures whose investors were left with losses. Growth stocks make money for investors because their share price rises as their profits, or expected profits, grow. They tend to be valued more highly than peers because expectations are high. But that means missteps can be costly, and volatility is to be expected.
There are a few ways to pick a promising growth stock, but one of the best is to look for margin growth. Margins tell you how much profit a company is able to make. Margins can be thin for a company that’s getting a new product or service off the ground, but ideally, as revenue grows, so should margins. Return on equity (ROE) is another way to asses growth potential. This looks at a company’s net income compared to shareholder equity. The higher the ROE, the more efficiently the company is using its capital.
PYPL PayPal $75.94
NVDA Nvidia $277.77
SEDG SolarEdge Technologies $303.95
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
PayPal (NASDAQ:PYPL) has been around for a long time, so you’d be forgiven for assuming its days as one of the best innovative growth stocks are behind it.
In some respects, you’d be right. The company saw its margins rise rapidly when consumer spending exploded during the pandemic. However once people were back out shopping in person, those gains quickly reversed. Operating margins fell from 17% to around 13% in just over a year.
It was a miscalculation on management’s part, and one that saw PYPL stock lose a fair chunk of its value. But margins are now moving back in the right direction.
Plus, the company’s got plenty of room to run as its user base continues to expand and mobile adoption swells. But these positives have been largely overlooked thanks to the ongoing banking crisis that’s swept through the market.
Despite the fact that PayPal will likely feel very little real pain from the banking story, its shares have fallen 15% in 6 months. That makes for a very attractive entry point for this fintech growth stock.
Nvidia (NVDA)
Source: Shutterstock
After a year in the gutter thanks to the semiconductor shortage, Nvidia (NASDAQ:NVDA) is back on the upswing as one of the most promising innovative growth stocks on the market. The company has managed to wedge itself into one of the most promising tech trends of our time— Artificial Intelligence.
Indeed, AI has the potential to disrupt just about every industry there is. Automation is every industry’s best friend, especially as costs rise and workers demand to be compensated in line with inflation. Replacing some or all of your workforce with more efficient technology is a silver bullet for cash-strapped companies.
We’re not quite there yet, but NVIDIA’s chips mean we’re getting closer. The total addressable market for AI chips like NVIDIA’s is expected to reach well into the billions as more people adopt the technology. And given it’s only in its infancy, the potential for NVDA stock is huge.
It’s unclear how quickly big money will move toward the AI trend, so it’s encouraging that NVDA is more than just a one-trick pony. The group also makes chips used in the gaming industry, which should continue to prop up revenue until AI takes off.
SolarEdge Technologies (SEDG)
Source: IgorGolovniov / Shutterstock.com
SolarEdge Technologies (NASDAQ:SEDG) is smack in the middle of a huge trend toward clean energy, making it one of the best innovative growth stocks out there. The group makes inverter systems that power solar panels, so the passage of the Inflation Reduction Act was a boon for the stock. Part of the bill extends the 30% residential solar Investment Tax Credit through 2032, which should boost demand over the next decade. At the same time, SEDG is expected to grow its margins as its Mexico plant comes online.
SolarEdge is also seeing strong growth in Europe, where the push for cleaner energy is even stronger. This was a driving factor behind the company’s 59% revenue growth in the third quarter. With energy costs still weighing on the average household, and governments around the world pledging to achieve net zero carbon emissions, investments in solar power are likely to grow rapidly in the near-term.
SolarEdge’s growth potential in both the US and Europe is impressive, and expanding margins alongside rising demand is the textbook definition for a good growth pick.
On the date of publication, Marie Brodbeck did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.
The post 3 Growth Stocks That Are Leading the Innovation Race 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 (NASDAQ:AAPL) is another well-known innovator that changed the way we listened to music and made investors a handsome pile of cash along the way. Growth stocks are companies that are expected to grow their earnings, revenue or cash flow faster than their peers or the market at large. The group makes inverter systems that power solar panels, so the passage of the Inflation Reduction Act was a boon for the stock.
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Apple (NASDAQ:AAPL) is another well-known innovator that changed the way we listened to music and made investors a handsome pile of cash along the way. Growth stocks make money for investors because their share price rises as their profits, or expected profits, grow. PYPL PayPal $75.94 NVDA Nvidia $277.77 SEDG SolarEdge Technologies $303.95 PayPal (PYPL) Source: JHVEPhoto / Shutterstock.com PayPal (NASDAQ:PYPL) has been around for a long time, so you’d be forgiven for assuming its days as one of the best innovative growth stocks are behind it.
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Apple (NASDAQ:AAPL) is another well-known innovator that changed the way we listened to music and made investors a handsome pile of cash along the way. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There are many ways to make the most of the stock market, but arguably one of the best is to invest in innovative growth stocks. PYPL PayPal $75.94 NVDA Nvidia $277.77 SEDG SolarEdge Technologies $303.95 PayPal (PYPL) Source: JHVEPhoto / Shutterstock.com PayPal (NASDAQ:PYPL) has been around for a long time, so you’d be forgiven for assuming its days as one of the best innovative growth stocks are behind it.
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Apple (NASDAQ:AAPL) is another well-known innovator that changed the way we listened to music and made investors a handsome pile of cash along the way. Growth stocks are companies that are expected to grow their earnings, revenue or cash flow faster than their peers or the market at large. There are a few ways to pick a promising growth stock, but one of the best is to look for margin growth.
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16537.0
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2023-04-02 00:00:00 UTC
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The 7 Best Tech ETFs to Buy for Diversified Exposure
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AAPL
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https://www.nasdaq.com/articles/the-7-best-tech-etfs-to-buy-for-diversified-exposure
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While picking individual market ideas may offer the biggest chance for upside, the process carries risks, which is where the best tech ETFs to buy may earn their keep. Fundamentally, exchange-traded funds offer a broad range of stocks under one basket, thus limiting risk while maximizing success. Further, focusing on innovative sectors like technology may yield compelling opportunities.
That said, humans have their own limitations regarding researching which funds may be the best tech ETFs to buy. Therefore, I decided to give ChatGPT a whirl and asked it for seven tech-related ETFs that offer diversified exposure. The below names are exactly what the artificial intelligence protocol provided in the order you see.
XLK Technology Select Sector SPDR Fund $151.01
VGT Vanguard Information Technology Index Fund $385.47
IXN iShares Global Tech ETF $54.36
FDN First Trust Dow Jones Internet Index Fund $147.85
QQQ Invesco QQQ Trust Series 1 $320.93
BOTZ Global X Robotics and Artificial Intelligence $25.50
ARKK ARK Innovation ETF $40.34
Technology Select Sector SPDR Fund (XLK)
Source: kenary820 / Shutterstock
According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Since the Jan. opener, the XLK got off to a blistering start, gaining nearly 21% of market value. However, for the year, it’s down more than 6%.
Still, the XLK may rank among the best tech ETFs for broad exposure to the innovation space. For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). Notably, the former two enterprises feature a weighting of 23.76% and 22.79%. Therefore, unless you believe the biggest tech giants in the world are about to implode, XLK should be a safe bet.
In terms of expense, the XLK appeals to cost-conscious investors with an expense ratio of 0.1%. This compares very favorably to the category average of 0.56%.
Vanguard Information Technology ETF (VGT)
Source: SHUN_J / Shutterstock
Per the AI protocol, the Vanguard Information Technology ETF (NYSEARCA:VGT) tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes companies in the technology sector of the U.S. stock market. Since the beginning of the year, VGT gained nearly 20% of its market value. However, it’s worth pointing out that the ETF dipped 9% in the trailing year.
As with the Technology Select Sector SPDR Fund, Vanguard Information features a heavy dosing of sector giants. Indeed, the top three holdings run almost identical to XLK’s: Apple, Microsoft, and Nvidia. Further, the former two enterprises carry the load for the VGT, with net weightings of 22.32% and 17.12%, respectively.
However, VGT distinguishes itself with exposure to the financial services sector. While the XLK is 100% dedicated to technology, VGT throws a bone to financial services (7.12% weighting) and industrials (1.76%). Therefore, it’s a more diverse play among the best tech ETFs to buy. Lastly, VGT features an expense ratio of 0.1%, which is relatively cheap.
iShares Global Tech ETF (IXN)
Source: SWKStock / Shutterstock
As ChatGPT stated, the iShares Global Tech ETF (NYSEARCA:IXN) tracks the performance of the S&P Global 1200 Information Technology Sector Index, which includes companies in the technology sector of global stock markets. Like the other names among the best tech ETFs to buy, IXN got off to a strong start in 2023. Since the Jan. opener, it popped up nearly 21%.
However, IXN also dipped roughly 8% in the past 365 days, something to watch for prospective investors. As with Vanguard Information Technology, IXN caters to tech heavyweights. Its top three holdings are Apple, Microsoft, and Nvidia. On a familiar theme, Apple and Microsoft make up the bulk of the ETF, with weightings of 22.27% and 19.52%, respectively.
What makes IXN slightly more distinct than other AI-recommended entries for best tech ETFs to buy centers on diversification. The IXN happens to throw a bone (a very small bone) to industrials with a 0.49% weighting. Still, investors should watch the expense ratio of 0.4%, which is a bit high compared to the category average of 0.56%.
First Trust Dow Jones Internet Index Fund (FDN)
Source: Eviart / Shutterstock.com
Per ChatGPT, the First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN) tracks the performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their revenue from the internet. Since the January opener, FDN gained almost 17% of its market value. However, it fell more than 23% in the trailing one-year period.
For speculators, this might make a case for the best tech ETFs to buy on a relative “chart” discount. Contextually, FDN represents a fund that aims to swing for the fences. Its top three holdings are Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
Of course, the risk factor here centers on the volatility of the three innovators. At the same time, according to TipRanks, all three feature consensus buy ratings. For Amazon and Alphabet, the consensus stands as a strong buy. Although FDN entices with its upside potential, keep in mind that its expense ratio runs warm at 0.51%. Again, the category average comes out to 0.56%.
Invesco QQQ Trust (QQQ)
Source: Maxx-Studio/ShutterStock.com
From ChatGPT, the Invesco QQQ Trust (NASDAQ:QQQ) tracks the performance of the Nasdaq 100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Since the beginning of this year, QQQ managed an outstanding performance, gaining over 19% of market value. However, it’s still recovering from the tech fallout of 2022. Since the trailing year, it’s down 13%.
For those seeking a wide canvas of innovative firms, the QQQ ETF stands among the best tech ETFs to buy for diversification. Yes, the top three holdings carry a familiar tune: Microsoft (at 12.52% net weighting), Apple (12.32%), and Amazon (6.19%). However, QQQ doesn’t exclusively (or near-exclusively) focus on the tech sector.
In fact, at the time of writing, the QQQ represents just under 50% of the fund’s weighting. Coming in second place stands the communications services industry at 16.3%. Rounding out the top three is consumer cyclical at 15%. Finally, the QQQ offers a discount in terms of its 0.2% expense ratio. That’s meaningfully under the category average of 0.54%.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Source: shutterstock.com/bangoland
According to ChatGPT, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) tracks the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index, which includes companies involved in the development and production of robotics and artificial intelligence products and services. Since the January opener, BOTZ gained over 21% of its market value.
Before you get too excited, you should also note that BOTZ dipped nearly 14% in the past 365 days. Nevertheless, it’s easy to see why ChatGPT suggested BOTZ as one of the best tech ETFs to buy for diversification. Basically, the fund doesn’t just carry a wide canvas of tech-related enterprises. Instead, its specific focus aims at the robotics and automation sector.
In that regard, it’s quite diverse. While the tech segment commands 47.27% of the net weighting, the industrials, and healthcare make up the top three with weights of 35.62% and 14.82%, respectively. Also, BOTZ is geographically diverse, with significant exposure in the U.S. and Japan.
However, BOTZ presents a lofty cost profile with an expense ratio of 0.68%. That’s just under the category average of 0.69%.
ARK Innovation ETF (ARKK)
Source: shutterstock.com/Imagentle
Finally, the AI protocol notes that the ARK Innovation ETF (NYSEARCA:ARKK) seeks to provide exposure to companies that are focused on disruptive innovation, including those involved in DNA technologies, robotics, energy storage, and more. Since the January opener, ARKK adopted a take-no-prisoners attitude, skyrocketing by over 26%. Nevertheless, it’s too early to celebrate as it also absorbed a 42% loss in the trailing year.
Understandably, ChatGPT selected ARKK as a candidate for best tech ETFs to buy for diversification because, well, it’s diverse. You can find the individual holdings here, which cover a wide range of relevancies. From electric vehicles to communication services to content streaming to cryptocurrencies, you can’t go wrong with ARKK if you’re primarily seeking a shotgun approach to the tech ecosystem.
However, ARKK represents a bold bet that could go awry based on broader economic circumstances. For instance, if monetary policy doesn’t play ball, cryptos may tumble. Therefore, it’s a high risk, high reward. If that appeals to you, more power to you. However, keep in mind that ARKK’s expense ratio runs extremely hot at 0.75%. Here, the category average sits at 0.46%.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post The 7 Best Tech ETFs to Buy for Diversified Exposure 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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For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). From electric vehicles to communication services to content streaming to cryptocurrencies, you can’t go wrong with ARKK if you’re primarily seeking a shotgun approach to the tech ecosystem. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.
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For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. First Trust Dow Jones Internet Index Fund (FDN) Source: Eviart / Shutterstock.com Per ChatGPT, the First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN) tracks the performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their revenue from the internet.
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For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Vanguard Information Technology ETF (VGT) Source: SHUN_J / Shutterstock Per the AI protocol, the Vanguard Information Technology ETF (NYSEARCA:VGT) tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes companies in the technology sector of the U.S. stock market.
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For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Since the beginning of the year, VGT gained nearly 20% of its market value.
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16538.0
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2023-04-02 00:00:00 UTC
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3 Tech Stocks I Love Right Now
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-i-love-right-now
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nan
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nan
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The technology industry has begun a period of incredible change as artificial intelligence takes the world by storm. Some companies will face disruption; others will be helped by AI. But at the end of the day, the big companies will likely continue to be big. Travis Hoium highlights why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Taiwan Semiconductor Manufacturing (NYSE: TSM) will continue to be powerhouses in the future.
*Stock prices used were end-of-day prices of March 29, 2023. The video was published on April 2, 2023.
10 stocks we like better than Apple
When our award-winning 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Microsoft, Netflix, Nvidia, and Taiwan Semiconductor Manufacturing. 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.
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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Travis Hoium highlights why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Taiwan Semiconductor Manufacturing (NYSE: TSM) will continue to be powerhouses in the future. The technology industry has begun a period of incredible change as artificial intelligence takes the world by storm. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Travis Hoium highlights why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Taiwan Semiconductor Manufacturing (NYSE: TSM) will continue to be powerhouses in the future. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Travis Hoium highlights why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Taiwan Semiconductor Manufacturing (NYSE: TSM) will continue to be powerhouses in the future. 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 recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Travis Hoium highlights why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Taiwan Semiconductor Manufacturing (NYSE: TSM) will continue to be powerhouses in the future. 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.
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16539.0
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2023-04-01 00:00:00 UTC
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3 Robinhood Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-robinhood-stocks-to-buy-right-now-7
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nan
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nan
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Robinhood (NASDAQ: HOOD), the online brokerage that popularized commission-free trades among retail investors, is often associated with meme stocks, speculative option trades, and cryptocurrencies. However, Robinhood's investors also hold plenty of promising blue-chip stalwarts and growth stocks in their portfolios.
According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Let's see why these three stocks could also deliver promising returns for long-term investors who might not think of themselves as "Robinhood" traders.
Image source: Getty Images.
1. Disney
Disney's stock closed at a record high of $201.91 per share on March 8, 2021, but it now trades more than 50% below that level. The House of Mouse was once considered a great post-pandemic reopening play as consumers flocked back to the movie theaters and its theme parks, but lost its luster as investors focused on its streaming losses and CEO Bob Chapek's tendency to aggressively cut costs instead of foster growth.
That's why many investors cheered when Disney fired Chapek last November and brought back Bob Iger, who had previously led the company for 15 years. Yet Iger's recent decision to lay off 7,000 employees, or 3% of its global workforce, suggests the company still faces intense pressure as its streaming losses compress its margins.
That said, Iger is also the visionary leader who led Disney through its multibillion-dollar acquisitions of Pixar, Marvel, and Lucasfilm, and he laid down the foundations of its streaming ecosystem -- which now serves 235 million subscribers -- back in 2019. So if anyone can breathe fresh life into Disney's business, it's probably Iger.
Despite all those challenges, Disney's revenue and adjusted EPS still grew 23% and 54%, respectively, in fiscal 2022 (which ended last October) as its theme park and media businesses recovered in a post-pandemic market. Analysts expect revenue and adjusted EPS to rise 8% and 18%, respectively, this year.
Therefore, investors who can tune out the near-term noise and focus on the evergreen appeal of Disney's brands and properties will likely think its stock is reasonably valued at 22 times forward earnings.
2. Apple
Apple's stock closed at its record high of $180.68 on Jan. 3, 2022. It's only pulled back about 10% from those levels since many investors still regard Apple as a safe bear market buy as interest rates continue to rise. That sterling reputation is justified by its four core strengths: its brand appeal, the stickiness of its services (which locked in 935 million paid subscribers last quarter), its consistent earnings growth, and its $165 billion in cash, cash equivalents, and marketable securities.
Apple's revenue only rose 8% in fiscal 2022 (which ended last September), compared to its 33% growth in 2021. That slowdown was caused by tough comparisons to the launch of the iPhone 12, its first family of 5G smartphones, in 2021. Analysts expect that slowdown to persist in fiscal 2023 and that revenue and EPS will decline 1% and 2%, respectively. Those declines can be attributed to macroeconomic headwinds, supply chain constraints, and unfavorable currency exchange rates.
Faced with that near-term slowdown, Apple might look a bit expensive at 27 times forward earnings. However, that multiple also doesn't fully factor in the launch of its upcoming mixed reality headset or other new services. Apple also plans to keep repurchasing tens of billions of dollars in shares every year -- even if it faces a cyclical slowdown. That mix of stability and long-term growth still make Apple a compelling investment in this wobbly market.
3. NIO
NIO is one of the top producers of high-end electric sedans and SUVs in China. It currently sells four types of SUVs (the ES8, ES6, EC6, and ES7) and two types of sedans (the ET5 and ET7). Unlike many smaller American EV makers that went public by merging with special purpose acquisition companies (SPACs) and then failed to meet their own lofty production goals, NIO already produces a steady stream of EVs.
NIO's total deliveries rose 113% in 2020, 109% in 2021, and 34% to 122,486 vehicles in 2022. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. But most of those headwinds should dissipate as China finally rolls back its COVID-era restrictions.
So for 2023, analysts expect NIO's revenue to jump 74% to 85.88 billion yuan ($12.5 billion) as its net loss narrows to 11.69 billion yuan ($1.7 billion). At $10 a share, NIO trades at just 1.4 times this year's sales -- which makes it much cheaper than most of its industry peers. NIO's stock has already plummeted more than 80% from its all-time high of $62.84 per share on Feb. 9, 2021, so it might catch on fire again once a new bull market starts.
Find out why Walt Disney is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Walt Disney is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of March 8, 2023
Leo Sun has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple, Nio, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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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According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. The House of Mouse was once considered a great post-pandemic reopening play as consumers flocked back to the movie theaters and its theme parks, but lost its luster as investors focused on its streaming losses and CEO Bob Chapek's tendency to aggressively cut costs instead of foster growth. Yet Iger's recent decision to lay off 7,000 employees, or 3% of its global workforce, suggests the company still faces intense pressure as its streaming losses compress its margins.
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According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. So for 2023, analysts expect NIO's revenue to jump 74% to 85.88 billion yuan ($12.5 billion) as its net loss narrows to 11.69 billion yuan ($1.7 billion).
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According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. NIO is one of the top producers of high-end electric sedans and SUVs in China. *Stock Advisor returns as of March 8, 2023 Leo Sun has positions in Apple and Walt Disney.
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16540.0
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2023-04-01 00:00:00 UTC
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Why You Should Buy Apple Stock
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AAPL
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https://www.nasdaq.com/articles/why-you-should-buy-apple-stock
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nan
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Apple (NASDAQ: AAPL) was a dominant company over the last decade, but that doesn't mean the company's run is over. The iPhone isn't going anywhere, Macs continue to get better, and the accessories business is hitting on all cylinders. In this video, Travis Hoium covers why you should still by Apple stock today.
*Stock prices used were end-of-day prices of March 29, 2023. The video was published on April 1, 2023.
10 stocks we like better than Apple
When our award-winning 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
Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Apple, Intel, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. 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) was a dominant company over the last decade, but that doesn't mean the company's run is over. The iPhone isn't going anywhere, Macs continue to get better, and the accessories business is hitting on all cylinders. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) was a dominant company over the last decade, but that doesn't mean the company's run is over. 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 Travis Hoium has positions in Apple and Intel.
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Apple (NASDAQ: AAPL) was a dominant company over the last decade, but that doesn't mean the company's run is over. 10 stocks we like better than Apple When our award-winning 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 and Intel.
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Apple (NASDAQ: AAPL) was a dominant company over the last decade, but that doesn't mean the company's run is over. In this video, Travis Hoium covers why you should still by Apple stock today. That's right -- they think these 10 stocks are even better buys.
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16541.0
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2023-04-01 00:00:00 UTC
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My 10 Best Dividend Stocks to Buy Now in April
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AAPL
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https://www.nasdaq.com/articles/my-10-best-dividend-stocks-to-buy-now-in-april
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I have carefully evaluated the dividend stocks in my coverage universe to select the 10 best dividend stocks to buy in April 2023. This video is the result of my research.
*Stock prices used were the afternoon prices of March 30, 2023. The video was published on April 1, 2023.
10 stocks we like better than Apple
When our award-winning 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
Parkev Tatevosian, CFA has positions in Apple, Mastercard, Starbucks, and Visa. The Motley Fool has positions in and recommends Apple, Home Depot, Mastercard, Microsoft, Starbucks, Target, and Visa. The Motley Fool recommends Lowe's Companies and eBay and recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, short April 2023 $52.50 calls on eBay, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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, Home Depot, Mastercard, Microsoft, Starbucks, Target, and Visa. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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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 Parkev Tatevosian, CFA has positions in Apple, Mastercard, Starbucks, and Visa. The Motley Fool recommends Lowe's Companies and eBay and recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, short April 2023 $52.50 calls on eBay, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple.
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I have carefully evaluated the dividend stocks in my coverage universe to select the 10 best dividend stocks to buy in April 2023. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has positions in Apple, Mastercard, Starbucks, and Visa. The Motley Fool recommends Lowe's Companies and eBay and recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, short April 2023 $52.50 calls on eBay, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple.
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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 Parkev Tatevosian, CFA has positions in Apple, Mastercard, Starbucks, and Visa. His opinions remain his own and are unaffected by The Motley Fool.
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16542.0
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2023-03-31 00:00:00 UTC
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Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-6
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The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, DTD has amassed assets over $1.06 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Dividend Index.
The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.28% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.86%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
DTD's heaviest allocation is in the Financials sector, which is about 15.60% of the portfolio. Its Information Technology and Healthcare round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
DTD's top 10 holdings account for about 21.46% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Total Dividend ETF has lost about -0.82% so far, and is down about -5.92% over the last 12 months (as of 03/31/2023). DTD has traded between $54.26 and $65.68 in this past 52-week period.
The ETF has a beta of 0.91 and standard deviation of 17.69% 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 is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.94 billion in assets, Vanguard Value ETF has $100.07 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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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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Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of the fund's 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. The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. 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. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. 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. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of the fund's 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. The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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16543.0
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2023-03-31 00:00:00 UTC
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US STOCKS-Wall St climbs as inflation data boosts softer Fed policy hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-inflation-data-boosts-softer-fed-policy-hopes
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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.
February PCE growth slows
Rate-sensitive stocks lead gains
Micron down as China to launch cybersecurity review
Virgin Orbit announces layoff plans, shares tank
Indexes up: Dow 0.54%, S&P 0.48%, Nasdaq 0.53%
Updates prices to open; adds details, comments
By Amruta Khandekar and Ankika Biswas
March 31 (Reuters) - Wall Street's main indexes gained on Friday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve.
The Commerce Department's report showed the personal consumption expenditure (PCE) index, which is the Federal Reserve's preferred inflation gauge, rose 0.3% in February, on a monthly basis, compared with a 0.6% rise in January.
Traders' bets of a 25-basis-point rate hike in May stand at 52.5%, with odds of a pause at 47.5%, according to CME Group's Fedwatch tool.
"As the Fed rate hikes are now kind of starting to take hold right about a year later since they first began perhaps it is a sign that their hikes are starting to cool inflation," said Brandon Pizzurro, director of public investments at Guidestone Capital Management.
"But in terms of the Fed's calculus, they'll have to have more confirmation that disinflation is really taking hold beyond just a few data points here and there."
Boston Fed President Susan Collins noted that it was still early for the central bank to assess whether its rate hikes have gone far enough to bring inflation back to the Fed's 2% target.
Consumer discretionary .SPLRCD and real-estate .SPLRCR were the top sector index performers with around 0.9% gains each.
As U.S. 10-year Treasury yields fell to a session low of 3.51% after the data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O and Amazon.com AMZN.O gained between 0.3% and 0.8%.
Friday will cap a turbulent first quarter for stocks, marked by sticky inflation, shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks, as well as a repricing of interest rate expectations from the Fed.
The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 as investors shifted toward major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
The benchmark S&P 500 .SPX has gained nearly 6% so far in the first quarter, with the technology sector .SPLRCT up about 20% while the financials index .SPSY is set for its worst quarter since June.
At 9:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 176.19 points, or 0.54%, at 33,035.22, the S&P 500 .SPX was up 19.64 points, or 0.48%, at 4,070.47, and the Nasdaq Composite .IXIC was up 63.40 points, or 0.53%, at 12,076.87.
Virgin Orbit Holdings VORB.O tanked 40.8%, a day after the rocket maker said it was cutting about 85% of staff.
Advancing issues outnumbered decliners by a 6.27-to-1 ratio on the NYSE and by a 2.76-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and no new low, while the Nasdaq recorded 35 new highs and 46 new lows.
S&P 500 sectoral performance in Q1https://tmsnrt.rs/3G83wmR
(Reporting by Amruta Khandekar and Ankika Biswas; additional reporting by Johann M Cherian Editing by Nivedita Bhattacharjee and Vinay Dwivedi)
((Amruta.Khandekar@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. 10-year Treasury yields fell to a session low of 3.51% after the data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O and Amazon.com AMZN.O gained between 0.3% and 0.8%. February PCE growth slows Rate-sensitive stocks lead gains Micron down as China to launch cybersecurity review Virgin Orbit announces layoff plans, shares tank Indexes up: Dow 0.54%, S&P 0.48%, Nasdaq 0.53% Updates prices to open; adds details, comments By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - Wall Street's main indexes gained on Friday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve. The Commerce Department's report showed the personal consumption expenditure (PCE) index, which is the Federal Reserve's preferred inflation gauge, rose 0.3% in February, on a monthly basis, compared with a 0.6% rise in January.
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As U.S. 10-year Treasury yields fell to a session low of 3.51% after the data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O and Amazon.com AMZN.O gained between 0.3% and 0.8%. February PCE growth slows Rate-sensitive stocks lead gains Micron down as China to launch cybersecurity review Virgin Orbit announces layoff plans, shares tank Indexes up: Dow 0.54%, S&P 0.48%, Nasdaq 0.53% Updates prices to open; adds details, comments By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - Wall Street's main indexes gained on Friday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve. The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 as investors shifted toward major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
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As U.S. 10-year Treasury yields fell to a session low of 3.51% after the data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O and Amazon.com AMZN.O gained between 0.3% and 0.8%. February PCE growth slows Rate-sensitive stocks lead gains Micron down as China to launch cybersecurity review Virgin Orbit announces layoff plans, shares tank Indexes up: Dow 0.54%, S&P 0.48%, Nasdaq 0.53% Updates prices to open; adds details, comments By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - Wall Street's main indexes gained on Friday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve. Friday will cap a turbulent first quarter for stocks, marked by sticky inflation, shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks, as well as a repricing of interest rate expectations from the Fed.
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As U.S. 10-year Treasury yields fell to a session low of 3.51% after the data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O and Amazon.com AMZN.O gained between 0.3% and 0.8%. February PCE growth slows Rate-sensitive stocks lead gains Micron down as China to launch cybersecurity review Virgin Orbit announces layoff plans, shares tank Indexes up: Dow 0.54%, S&P 0.48%, Nasdaq 0.53% Updates prices to open; adds details, comments By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - Wall Street's main indexes gained on Friday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve. Boston Fed President Susan Collins noted that it was still early for the central bank to assess whether its rate hikes have gone far enough to bring inflation back to the Fed's 2% target.
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16544.0
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2023-03-31 00:00:00 UTC
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US STOCKS-Nasdaq posts best qtr since 2020, latest inflation data a boost
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https://www.nasdaq.com/articles/us-stocks-nasdaq-posts-best-qtr-since-2020-latest-inflation-data-a-boost
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By Caroline Valetkevitch
NEW YORK, March 31 (Reuters) - Wall Street rallied on Friday and the Nasdaq notched its biggest quarterly percentage gain since June 2020, as signs of cooling inflation bolstered hopes the Federal Reserve might soon end its aggressive interest rate hikes.
The quarterly gains came despite a sharp sell-off in bank stocks following the collapse of two regional banks earlier this month and worries about a bigger financial crisis.
The Commerce Department report Friday showed U.S. consumer spending rose moderately in February while inflation cooled.
"The equity market seems to be delighted with the slight tick lower in inflation, as it should be. It underscores that the Fed's campaign is, in fact, working, albeit slowly," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
The Fed has been raising rates to cool inflation, and traders' bets of a 25-basis-point rate hike in May stood at 53.8% on Friday, according to CME Group's Fedwatch tool.
According to preliminary data, the S&P 500 .SPX gained 58.07 points, or 1.43%, to end at 4,108.76 points, while the Nasdaq Composite .IXIC gained 208.44 points, or 1.74%, to 12,221.91. The Dow Jones Industrial Average .DJI rose 408.66 points, or 1.24%, to 33,267.69.
Semiconductors .SOXwere among the quarter's strongest performing groups.
Shares of big tech gained as investors rotated out of banks and as U.S. Treasury yields eased, with the two-year note yield posting on Friday its largest monthly drop since 2008. Higher yields tend to be a negative for big tech companies.
Also, Apple Inc AAPL.O shares rose Friday after it won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services.
Boston Fed President Susan Collins said Friday that wherever the U.S. central bank stops with its rate rises, maintaining that level for some time will be critical in helping to lower high inflation back to the 2% target.
S&P 500 sectoral performance in Q1https://tmsnrt.rs/3G83wmR
(Reporting by Caroline Valetkevitch; additional reporting by Amruta Khandekar and Ankika Biswas; additional reporting by Johann M Cherian Editing by Vinay Dwivedi and Maju Samuel)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Apple Inc AAPL.O shares rose Friday after it won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services. By Caroline Valetkevitch NEW YORK, March 31 (Reuters) - Wall Street rallied on Friday and the Nasdaq notched its biggest quarterly percentage gain since June 2020, as signs of cooling inflation bolstered hopes the Federal Reserve might soon end its aggressive interest rate hikes. Boston Fed President Susan Collins said Friday that wherever the U.S. central bank stops with its rate rises, maintaining that level for some time will be critical in helping to lower high inflation back to the 2% target.
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Also, Apple Inc AAPL.O shares rose Friday after it won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services. According to preliminary data, the S&P 500 .SPX gained 58.07 points, or 1.43%, to end at 4,108.76 points, while the Nasdaq Composite .IXIC gained 208.44 points, or 1.74%, to 12,221.91. Shares of big tech gained as investors rotated out of banks and as U.S. Treasury yields eased, with the two-year note yield posting on Friday its largest monthly drop since 2008.
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Also, Apple Inc AAPL.O shares rose Friday after it won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services. By Caroline Valetkevitch NEW YORK, March 31 (Reuters) - Wall Street rallied on Friday and the Nasdaq notched its biggest quarterly percentage gain since June 2020, as signs of cooling inflation bolstered hopes the Federal Reserve might soon end its aggressive interest rate hikes. Shares of big tech gained as investors rotated out of banks and as U.S. Treasury yields eased, with the two-year note yield posting on Friday its largest monthly drop since 2008.
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Also, Apple Inc AAPL.O shares rose Friday after it won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services. The Fed has been raising rates to cool inflation, and traders' bets of a 25-basis-point rate hike in May stood at 53.8% on Friday, according to CME Group's Fedwatch tool. According to preliminary data, the S&P 500 .SPX gained 58.07 points, or 1.43%, to end at 4,108.76 points, while the Nasdaq Composite .IXIC gained 208.44 points, or 1.74%, to 12,221.91.
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16545.0
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2023-03-31 00:00:00 UTC
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Are Big Tech Stocks the Next Safe Haven Investment?
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AAPL
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https://www.nasdaq.com/articles/are-big-tech-stocks-the-next-safe-haven-investment
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While 2023 has featured the return of the flight to safety trade, where Treasuries have been able to counteract some of the risks of equities, the markets have also demonstrated a few relatively unusual behaviors.
The first quarter could be marked by three separate market phases. January featured better-than-expected economic data, which resulted in risk asset prices rallying. In February, inflation didn’t cool down as quickly as expected and the markets began to price in additional rate hikes. March, of course, featured the failures of SVB Financial’s (OTCMKTS:SIVBQ) Silicon Valley Bank and Signature Bank (OTCMKTS:SBNY) that sent the financial markets into turmoil.
My research has shown that, historically, when investors seek out safe havens, they tend to land in one of two places — Treasuries, if they’re looking at bonds, and utilities, if they want to stick it out in stocks. The Treasury rotation happened, as expected, but investors didn’t target utilities over the past month. Instead, they moved into Big Tech stocks!
A Closer Look
Take a look at the performance of the S&P 500 along with the tech and regional banking sectors in 2023.
Tech stocks already had a bit of a tailwind working in their favor when the SVB collapse occurred. When regional banks started plunging, the gap between the performance of tech and the S&P 500 actually got larger! The path of utilities was comparatively choppy and delivered almost no outperformance relative to the S&P 500 over the same time frame.
This is a phenomenon that isn’t new. In fact, something similar occurred during the Covid-19 bear market in 2020.
Tech stocks, especially the FAANG names, were leading the market in the run-up to the Covid recession. For roughly a month, the entire equity market plunged, but look at how the tech sector performed relative to the S&P 500. It essentially kept pace with the broader market throughout the drawdown and then grabbed the mantle of market leadership again when the government dropped its multi-trillion dollar stimulus package on to the economy.
The difference this time is that tech stocks aren’t just matching the market during periods of volatility. They’re actually outperforming it — and by a wide margin! This may be a good thing for tech stock investors, but not so much for intermarket dynamics.
Why Are Investors Looking Into Big Tech Stocks?
It’s understandable that investors are leery of government debt following a 30% drawdown in long-term Treasuries in 2022, but it’s important to remember that this was the anomaly, not the norm. Last year was the only time in history when Treasuries didn’t act as a counter-risk asset to equities. If you look historically at almost any high-volatility period, you’ll see Treasuries, in most cases, protecting against some level of downside risk. The probability of government debt falling significantly again when stocks are correcting is quite low.
Investors may be rotating into Big Tech names right now for safety because it’s familiar. It’s happened multiple times since we came out of the financial crisis, but that doesn’t mean it’s necessarily the correct move. Treasuries have been, perhaps, the most consistent asset class to provide portfolio protection in times of high volatility. It’s happened already in 2023, and conditions favor it happening again if the economy starts to falter, unemployment shoots higher or credit spreads start blowing out.
The notion that companies such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) could provide more safety than U.S. government debt in market downturns is both irrational and troubling.
On the date of publication, Michael Gayed did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.
InvestorPlace readers that are new subscribers to the The Lead-Lag Report can receive a 30% discount by entering the promo code “InvestorPlace30” with your order.
The post Are Big Tech Stocks the Next Safe Haven Investment? 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 notion that companies such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) could provide more safety than U.S. government debt in market downturns is both irrational and troubling. In February, inflation didn’t cool down as quickly as expected and the markets began to price in additional rate hikes. My research has shown that, historically, when investors seek out safe havens, they tend to land in one of two places — Treasuries, if they’re looking at bonds, and utilities, if they want to stick it out in stocks.
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The notion that companies such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) could provide more safety than U.S. government debt in market downturns is both irrational and troubling. The Treasury rotation happened, as expected, but investors didn’t target utilities over the past month. Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.
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The notion that companies such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) could provide more safety than U.S. government debt in market downturns is both irrational and troubling. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While 2023 has featured the return of the flight to safety trade, where Treasuries have been able to counteract some of the risks of equities, the markets have also demonstrated a few relatively unusual behaviors. The difference this time is that tech stocks aren’t just matching the market during periods of volatility.
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The notion that companies such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) could provide more safety than U.S. government debt in market downturns is both irrational and troubling. The Treasury rotation happened, as expected, but investors didn’t target utilities over the past month. Instead, they moved into Big Tech stocks!
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16546.0
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2023-03-31 00:00:00 UTC
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Better VR Stock: AMD vs. Apple
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AAPL
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https://www.nasdaq.com/articles/better-vr-stock%3A-amd-vs.-apple
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nan
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nan
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Virtual reality (VR) has appeared in dozens of devices over the last few decades. However, technological advances have only recently made it possible for companies to deliver what VR promised 30 years ago. As a result, more and more companies are joining the high-growth market.
According to Grand View Research, the VR market was valued at roughly $22 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 15% through 2030. As the industry develops, many VR companies are also exploring augmented reality (AR), which, according to Grand View Research, has a CAGR of 40.9% until at least 2030.For reference, VR creates a completely virtual world for the user, while AR alters aspects of the real world with an overlay of virtual details.
Tech giants Sony and Meta Platforms have primarily dominated the VR industry with their headsets, but Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) could play significant roles in the market's future. As a result, now is an excellent time to consider investing in one of these future leaders of the industry.
Is AMD or Apple the better VR stock? Let's take a closer look.
Advanced Micro Devices is a leading chip supplier
AMD is best known for its role in PC components, having seen immense success with its consumer lines of graphics processing units (GPUs) and processors. However, the company has steadily become a leading name in semi-custom chips for a variety of devices. For instance, AMD exclusively supplies the graphics and processing power for Sony's PlayStation 5 (PS5) and Microsoft's Xbox Series X and S game consoles with its system on a chip (SoC).
The lucrative partnerships were the main driver of AMD's gaming segment growth in fiscal 2022, with revenue rising 21% year over year to $6.8 billion. Operating income rose 2% to $953 million. Any growth during the economically challenging year is impressive, considering the PC market experienced steep declines.
AMD's chip business has led it to play a crucial role in VR. Sony's PlayStation VR 2 headset was released in February and is run exclusively on AMD chips through the PS5. Meanwhile, the company's GPUs and processors have the power required to run headsets such as HTC's Vive, Microsoft's Windows Mixed Reality, and the Oculus Rift (now a product of Meta).
As the VR industry develops, more companies will likely turn to AMD for its chips. Meta's current line of Quest VR products uses mobile chips that are underpowered compared to a desktop PC. Future iterations of Quest headsets will likely switch over to the kind of SoCs that AMD produces in the coming years.
Apple has a talent for dominating new markets
Various acquisitions and patents over the years have all but confirmed Apple's planned venture into virtual reality. However, a ramp-up in reports over the last few months has suggested the company could debut its first headset in 2023.
In January, Bloomberg reported Apple's coming device would have VR and AR capabilities, featured alongside an iOS-like interface and eye/hand-tracking. Rumors have also revealed the headset will likely launch at a hefty price tag in the thousands, but get gradually cheaper with subsequent releases, in a similar pricing strategy to the Apple Watch.
While Apple does not currently have a strong position in VR, its past success in entering new markets makes its stock an attractive investment. The tech giant has a proven talent for venturing into new industries and quickly rising to dominance, as shown by its success in smartphones, tablets, Bluetooth headphones, and smartwatches. Each of these technologies had relatively low mass adoption before the release of Apple's versions, which then sent their usage skyrocketing.
As a result, the company holds a leading 24.1% market share in smartphones, a 49.2% share in tablets, a 34.4% share in headphones, and a 26% share in smartwatches. Apple's potent brand has garnered loyalty from consumers, which could significantly boost the future adoption of VR and AR.
AMD and Apple have vast potential in virtual reality, one with increasing demand for its chips and the other with its reputation for success in new markets. AMD's chips grant it a fairly solid position in the growing industry, with Apple's soon-to-be-launched headset likely to increase competition and demand for AMD's chips over the long term. As Apple's potential role in VR is still tentative, AMD's more concrete position makes it the better virtual reality stock and an excellent way to invest in the burgeoning market.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, 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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Tech giants Sony and Meta Platforms have primarily dominated the VR industry with their headsets, but Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) could play significant roles in the market's future. Advanced Micro Devices is a leading chip supplier AMD is best known for its role in PC components, having seen immense success with its consumer lines of graphics processing units (GPUs) and processors. For instance, AMD exclusively supplies the graphics and processing power for Sony's PlayStation 5 (PS5) and Microsoft's Xbox Series X and S game consoles with its system on a chip (SoC).
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Tech giants Sony and Meta Platforms have primarily dominated the VR industry with their headsets, but Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) could play significant roles in the market's future. As a result, the company holds a leading 24.1% market share in smartphones, a 49.2% share in tablets, a 34.4% share in headphones, and a 26% share in smartwatches. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, and Microsoft.
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Tech giants Sony and Meta Platforms have primarily dominated the VR industry with their headsets, but Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) could play significant roles in the market's future. AMD's chips grant it a fairly solid position in the growing industry, with Apple's soon-to-be-launched headset likely to increase competition and demand for AMD's chips over the long term. As Apple's potential role in VR is still tentative, AMD's more concrete position makes it the better virtual reality stock and an excellent way to invest in the burgeoning market.
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Tech giants Sony and Meta Platforms have primarily dominated the VR industry with their headsets, but Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) could play significant roles in the market's future. Is AMD or Apple the better VR stock? Advanced Micro Devices is a leading chip supplier AMD is best known for its role in PC components, having seen immense success with its consumer lines of graphics processing units (GPUs) and processors.
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16547.0
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2023-03-31 00:00:00 UTC
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US STOCKS-S&P 500 set for upbeat end to quarter amid softer Fed policy hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-set-for-upbeat-end-to-quarter-amid-softer-fed-policy-hopes
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 31 (Reuters) - The S&P 500 was set to end its second straight quarter on a high note on Friday, as evidence of cooling inflation further supported hopes of a softer monetary policy approach from the Federal Reserve in light of recent banking sector problems.
Friday caps a turbulent first quarter and month for stocks marked by shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks which have led to a repricing in interest rate expectations from the Fed.
Still, the S&P 500 .SPX is up 6% so far in the first three months of the year, while the Nasdaq .IXIC is set for its first quarterly gain in five quarters, benefiting from a shift to technology and other growth stocks from financial stocks amid fears of a bank contagion.
The cyclicals-heavy Dow Jones .DJI was flat on the quarter.
Among major S&P 500 sectors, technology .SPLRCT has quarterly gains of about 20%, while the financials index .SPSY is set for its worst quarter since June.
A closely watched Commerce Department report on Friday showed U.S. consumer spending rose moderately in February, while inflation also cooled.
The personal consumption expenditure (PCE) index, which is the Fed's preferred inflation gauge, rose 0.3% in February on a monthly basis, moderating from a 0.6% rise in January.
"It wasn't a dramatic report, but it does show that inflation is cooling," said David Waddell, CEO and chief investment strategist at Waddell & Associates.
"The Fed doesn't need to go any further. It's not worth the risk of further destabilization to the banking system."
Traders' bets of a 25-basis-point rate hike in May stand at 53.8%, according to CME Group's Fedwatch tool, with rate cuts also expected this year.
Boston Fed President Susan Collins noted that it was still early for the central bank to assess whether its rate hikes have gone far enough to bring inflation back to the Fed's 2% target.
As U.S. 10-year Treasury yields dipped following the inflation data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Tesla TSLA.O gained between 0.5% and 4% on Friday.
Limiting gains, Micron Technology MU.O dropped 2.7% after news that China was set to review the chipmaker's products sold in the country.
The broader Philadelphia semiconductor index .SOX fell marginally on Friday but is up 27% on the quarter, with Nvidia NVDA.O as the top boost after gaining 87%.
At 11:57 a.m. ET, the Dow Jones Industrial Average .DJI was up 244.35 points, or 0.74%, at 33,103.38, the S&P 500 .SPX was up 34.46 points, or 0.85%, at 4,085.29, and the Nasdaq Composite .IXIC was up 131.40 points, or 1.09%, at 12,144.87.
Shares of Nikola Corp NKLA.O tumbled 11.0% after the electric truck maker said it plans to sell shares and raise $100 million.
Advancing issues outnumbered decliners by a 5.73-to-1 ratio on the NYSE and by a 2.76-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 57 new highs and 98 new lows.
S&P 500 sectoral performance in Q1https://tmsnrt.rs/3G83wmR
(Reporting by Amruta Khandekar and Ankika Biswas; additional reporting by Johann M Cherian Editing by Vinay Dwivedi and Maju Samuel)
((Amruta.Khandekar@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. 10-year Treasury yields dipped following the inflation data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Tesla TSLA.O gained between 0.5% and 4% on Friday. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - The S&P 500 was set to end its second straight quarter on a high note on Friday, as evidence of cooling inflation further supported hopes of a softer monetary policy approach from the Federal Reserve in light of recent banking sector problems. A closely watched Commerce Department report on Friday showed U.S. consumer spending rose moderately in February, while inflation also cooled.
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As U.S. 10-year Treasury yields dipped following the inflation data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Tesla TSLA.O gained between 0.5% and 4% on Friday. A closely watched Commerce Department report on Friday showed U.S. consumer spending rose moderately in February, while inflation also cooled. The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 57 new highs and 98 new lows.
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As U.S. 10-year Treasury yields dipped following the inflation data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Tesla TSLA.O gained between 0.5% and 4% on Friday. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - The S&P 500 was set to end its second straight quarter on a high note on Friday, as evidence of cooling inflation further supported hopes of a softer monetary policy approach from the Federal Reserve in light of recent banking sector problems. Friday caps a turbulent first quarter and month for stocks marked by shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks which have led to a repricing in interest rate expectations from the Fed.
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As U.S. 10-year Treasury yields dipped following the inflation data, major growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Tesla TSLA.O gained between 0.5% and 4% on Friday. Friday caps a turbulent first quarter and month for stocks marked by shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks which have led to a repricing in interest rate expectations from the Fed. Among major S&P 500 sectors, technology .SPLRCT has quarterly gains of about 20%, while the financials index .SPSY is set for its worst quarter since June.
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16548.0
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2023-03-31 00:00:00 UTC
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2 Stocks to Watch From the Prospering Computer Industry
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-watch-from-the-prospering-computer-industry
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nan
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nan
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The Zacks Computer – Mini Computers industry is suffering from the waning demand for consumer PCs, massive supply-chain issues and geopolitical challenges, including raging inflation and high interest. Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple AAPL and HP HPQ. The improving availability of 5G-enabled smartphones has been a key catalyst for industry participants. The growing adoption of tablets among enterprises bodes well for companies like Apple and Lenovo. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables, and hearables is another major growth driver for industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow. BYOD has proved more productive, as it lowers training time. Moreover, the coronavirus-induced remote-working and online-learning models bode well for industry participants, as demand is expected to increase for desktops and laptops.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #103, which places it in the top 41% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector, S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector, and the S&P 500 index over the past year.
The industry has dropped 7.1% over this period compared with the S&P 500’s decline of 11.7% and the broader sector’s fall of 14.6%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 24.99X compared with the S&P 500’s 18.16X and the sector’s 22.91X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 22.41X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple currently has more than 935 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2023 earnings has declined by a penny to $6.04 per share over the past 30 days. The stock has lost 6.9% in the past year.
Price and Consensus: AAPL
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Product innovation and differentiations are the key drivers that have helped HP maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has been unchanged at $3.27 per share over the past 30 days. Shares of HP have declined 18.9% in the past year.
Price and Consensus: HPQ
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : 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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Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple AAPL and HP HPQ. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple AAPL and HP HPQ. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment.
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Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple AAPL and HP HPQ. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple AAPL and HP HPQ. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16549.0
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2023-03-31 00:00:00 UTC
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Apple wins appeal against UK's decision to investigate its mobile browser
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AAPL
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https://www.nasdaq.com/articles/apple-wins-appeal-against-uks-decision-to-investigate-its-mobile-browser-0
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nan
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nan
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Adds CMA response
LONDON, March 31 (Reuters) - Apple Inc AAPL.O won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services, the Competition Appeal Tribunal (CAT) ruled on Friday.
Regulator the Competition and Market Authority (CMA) opened a full investigation in November into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store.
Apple argued that the CMA had "no power" to launch such a probe because it did so too late.
Its lawyer Timothy Otty said earlier this month that the market investigation should have been opened last June at the same time the CMA published a report on mobile ecosystems, which found the two tech giants had an "effective duopoly".
The CAT endorsed Apple's argument, saying that in declining to take action at that time only in the expectation of receiving further powers it might well be said that the CMA "erred in law".
The CMA said it was disappointed with the ruling.
"Today's judgment has found there are material constraints on the CMA's general ability to refer markets for in-depth investigations," it said in a statement.
"This risks substantially undermining the CMA's ability to efficiently and effectively investigate and intervene in markets where competition is not working well.
"Given the importance of today's judgment," it added, "we will be considering our options including seeking permission to appeal."
(Reporting by Paul Sandle, Editing by Kylie MacLellan and Bill Berkrot)
((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.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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Adds CMA response LONDON, March 31 (Reuters) - Apple Inc AAPL.O won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services, the Competition Appeal Tribunal (CAT) ruled on Friday. Its lawyer Timothy Otty said earlier this month that the market investigation should have been opened last June at the same time the CMA published a report on mobile ecosystems, which found the two tech giants had an "effective duopoly". The CAT endorsed Apple's argument, saying that in declining to take action at that time only in the expectation of receiving further powers it might well be said that the CMA "erred in law".
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Adds CMA response LONDON, March 31 (Reuters) - Apple Inc AAPL.O won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services, the Competition Appeal Tribunal (CAT) ruled on Friday. Regulator the Competition and Market Authority (CMA) opened a full investigation in November into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. "This risks substantially undermining the CMA's ability to efficiently and effectively investigate and intervene in markets where competition is not working well.
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Adds CMA response LONDON, March 31 (Reuters) - Apple Inc AAPL.O won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services, the Competition Appeal Tribunal (CAT) ruled on Friday. Regulator the Competition and Market Authority (CMA) opened a full investigation in November into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. Its lawyer Timothy Otty said earlier this month that the market investigation should have been opened last June at the same time the CMA published a report on mobile ecosystems, which found the two tech giants had an "effective duopoly".
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Adds CMA response LONDON, March 31 (Reuters) - Apple Inc AAPL.O won its appeal against the decision by Britain's antitrust regulator to launch an investigation into its mobile browser and cloud gaming services, the Competition Appeal Tribunal (CAT) ruled on Friday. Apple argued that the CMA had "no power" to launch such a probe because it did so too late. "Today's judgment has found there are material constraints on the CMA's general ability to refer markets for in-depth investigations," it said in a statement.
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16550.0
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2023-03-31 00:00:00 UTC
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Top and Flop ETFs of March
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AAPL
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https://www.nasdaq.com/articles/top-and-flop-etfs-of-march
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nan
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nan
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The month of March proved to be extremely volatile for the U.S. stock market. While the decline in yields and the Fed’s dovish comments ignited a rally early in the month, the failure of several banks and the fear of contagion across the globe led to a series of sell-offs. Amid the wild swings in the stock market, the technology sector emerged as the biggest winner while banks lost billions.
In fact, the tech-heavy Nasdaq-100 surged to a new bull market, driven by the flight to mega-cap cash-rich technology stocks amid the bank turbulence and decline in yields. Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. On the other hand, the 10 largest U.S. banks have lost about $243 billion in market capitalization since Mar 8, per a Forbes article (read: Nasdaq-100 Enters Bull Market: ETFs to Ride on).
The banking scare has raised the appeal for the yellow metal as a safe haven and as a store of value. The yellow metal jumped above the 2,000 mark after the sudden collapse of two U.S. regional banks earlier this month, which led to speculation that the Fed might pause rates hikes to avoid a wider fallout from the global banking system turmoil. Bitcoin, the largest digital currency by market value, also gained momentum and topped 26,000 for the first time since June 2022 in mid-March when market sentiments were positive.
Given this, we have highlighted three best and worst-performing ETFs of Q1:
Best ETFs
Sprott Junior Gold Miners ETF (SGDJ) – Up 22.7%
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 44 stocks in its basket, with Canada-based firms making up the largest share at 55.6%, followed by Australia (39.3%).
Sprott Junior Gold Miners ETF has amassed $106.3 million in its asset base and trades in a lower volume of around 40,000 shares a day. It charges 50 bps in annual fees from investors (read: 5 ETFs That Outperformed the Market Last Week).
Hashdex Bitcoin Futures ETF (DEFI) – Up 20.3%
Hashdex Bitcoin Futures ETF provides access to bitcoin through a cost-effective and regulated exchange-traded fund. It does not invest directly in bitcoin but provides price exposure to the crypto asset through bitcoin futures contracts. This gives investors the opportunity to capitalize on the cryptocurrency’s growth potential, its store of value characteristics, and the prospect of a decentralized future, without the complexities of self-custody.
Hashdex Bitcoin Futures ETF has accumulated $1.8 million in its asset base since its inception last September. It charges 92 bps in annual fees.
Breakwave Dry Bulk Shipping ETF (BDRY) – Up 18.4%
The dry bulk shipping market has gained momentum due to a rise in demand across all vessel segments. It is the only freight futures ETF exclusively focused on the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices. Breakwave Dry Bulk Shipping ETF holds freight futures with a weighted average of approximately three months to expiration, using a mix of one-to-six-month freight futures based on the prevailing calendar schedule.
Breakwave Dry Bulk Shipping ETF has accumulated about $101.1 million in AUM and trades in a good volume of about 479,000 shares per day on average. It charges a higher annual fee of 3.50%.
Worst ETFs
iShares U.S. Regional Banks ETF (IAT) – Down 29.7%
iShares U.S. Regional Banks ETF offers exposure to 35 small and mid-cap regional bank stocks by tracking the Dow Jones U.S. Select Regional Banks Index. It is largely concentrated on the top three firms with a double-digit allocation each (read: ETF Winners & Losers from the Banking Crisis).
iShares U.S. Regional Banks ETF has amassed $739.7 million in its asset base while seeing a good volume of 647,000 shares a day. The product charges 39 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
United States Natural Gas Fund (UNG) – Down 25.5%
Natural gas prices fell to the lowest since September 2020 owing to mild weather and lower-than-previously expected heating demand. United States Natural Gas Fund provides direct exposure to the price of natural gas on a daily basis through futures contracts. If the near-month contract is within two weeks of expiration, the benchmark will be the next month's contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, LA.
The United States Natural Gas Fund has an AUM of $973.1 million and trades in a volume of around 23 million shares per day. UNG has a 1.11% expense ratio.
Advocate Rising Rate Hedge ETF (RRH) – Down 21.6%
The decline in yields led to a plunge in RRH as it seeks to generate capital appreciation during periods of rising long-term interest rates, specifically interest rates with maturities of five years or longer. Advocate Rising Rate Hedge ETF is a multi-asset ETF and seeks to achieve its investment objective primarily by investing in a combination of U.S. Treasury securities; forwards, futures or options on various currencies; long and short positions on the short and long-end of the Treasury or swap yield curve via futures, swaps, forwards and other over-the-counter derivatives; long and short positions on equity indexes and investment companies, including ETFs, and commodity futures and options.
Advocate Rising Rate Hedge ETF has accumulated $29.2 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 35,000 shares.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares U.S. Regional Banks ETF (IAT): ETF Research Reports
Sprott Junior Gold Miners ETF (SGDJ): ETF Research Reports
United States Natural Gas ETF (UNG): ETF Research Reports
Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports
Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports
Hashdex Bitcoin Futures ETF (DEFI): 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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Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. While the decline in yields and the Fed’s dovish comments ignited a rally early in the month, the failure of several banks and the fear of contagion across the globe led to a series of sell-offs.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Advocate Rising Rate Hedge ETF has accumulated $29.2 million in its asset base and charges 85 bps in annual fees.
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Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Given this, we have highlighted three best and worst-performing ETFs of Q1: Best ETFs Sprott Junior Gold Miners ETF (SGDJ) – Up 22.7%
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Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Breakwave Dry Bulk Shipping ETF has accumulated about $101.1 million in AUM and trades in a good volume of about 479,000 shares per day on average.
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16551.0
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2023-03-31 00:00:00 UTC
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Can the Nasdaq's Q1 Outperformance Extend to Q2?
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AAPL
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https://www.nasdaq.com/articles/can-the-nasdaqs-q1-outperformance-extend-to-q2
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nan
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nan
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T
he first quarter of 2023 ends today, and it has been an interesting one, to say the least. As last year ended, I don’t recall all that many people expecting a positive start to this one. The Fed had made it quite clear that they were committed to the fight against inflation and would be continuing to squeeze credit conditions and hike rates. By December, the negative impacts of that were beginning to be felt, with layoffs being announced in a few companies and with weakness in the housing and other rate sensitive markets, but there was little sign of any progress in terms of prices. The outlook wasn’t pretty.
And yet, here we are, three months later, with solid gains in the broad market. Those gains, however, are far from equal. The chart below, for the ETFs that track the three major indices, the S&P (SPY), the Dow (DIA), and the Nasdaq (QQQ) for the year thus far shows a dramatic disparity in returns.
QQQ has gained 18.6%, the S&P 5.6%, and the Dow is actually in the negative, having dropped 0.9%. So why is that and, more importantly, can it be expected to continue?
Given the website on which you are reading this, it is tempting to say that the outperformance of QQQ is simply because the Nasdaq is just better than all the others, but it isn’t that simple. In fact, if you were to look at the same chart for the last year rather than quarter, you would see that QQQ is the worst performer of the three over that time span. That, however, is a big reason for the outperformance so far this year.
The tech and growth-oriented stocks that dominate the Nasdaq were hit hard through most of last year, when the conventional wisdom was that they would be hit early and hard by the change in credit conditions. The stocks were sold off as a result, but markets always have a tendency to overreact to obvious problems, and that was certainly the case in the second half of 2022. At the end of last year, for example, I pointed out that Apple (AAPL), which had just hit a 52-week low, was massively oversold given that what we were most likely seeing were temporary supply chain issues deferring purchases, not a mass move away from Apple products.
Nor was that a one off. I also wrote, early in January, that Microsoft (MSFT) looked oversold and primed to outperform. Those calls weren’t genius, they were simply based on the well-known fact that traded instruments tend to return to the mean. Without any real company-specific issues, the hardest-hit stocks in a drop have the best chance of bouncing quickly. That is what both AAPL and MSFT did, leading the Nasdaq to overall outperformance.
That explains why QQQ outperformed last quarter, but whether the level of gains in the index can be continued or not depends, as you might expect, on the Fed. If they take into account the recent wobbles in the banking sector and factor in data that are encouraging if not spectacular, and they pause the hikes starting next quarter as a result, then yes, Nasdaq stocks will post more gains. On the other hand, even one more 25 basis point hike will be seen as a negative for stocks in general and could temporarily recreate the H2 2022 selloff.
Outperformance, though, isn’t just about gains. It is also about losing less on the way down, and there are reasons to think that on that basis too, QQQ will be the best performing major index tracking ETF should Q2 be a rough one overall. Those reasons are contained in the second, one-year chart above. QQQ is still lagging the others on a one-year basis and, as mentioned, things tend to return to the mean. That difference could be made up by stronger gains in a bull market, but they could also be about smaller losses in a bear market.
So, while the overall direction of stocks in Q2 is still uncertain and depends largely on how Fed Chairman Jerome Powell and the rest of the gang at the Fed feel about the economy, investors will probably be better off buying in or holding onto the Nasdaq tracker as opposed to the Dow or S&P equivalents for a while to come. Doing that can be a bumpy ride, but in the long run, it is one that history shows pays off.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the end of last year, for example, I pointed out that Apple (AAPL), which had just hit a 52-week low, was massively oversold given that what we were most likely seeing were temporary supply chain issues deferring purchases, not a mass move away from Apple products. That is what both AAPL and MSFT did, leading the Nasdaq to overall outperformance. By December, the negative impacts of that were beginning to be felt, with layoffs being announced in a few companies and with weakness in the housing and other rate sensitive markets, but there was little sign of any progress in terms of prices.
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At the end of last year, for example, I pointed out that Apple (AAPL), which had just hit a 52-week low, was massively oversold given that what we were most likely seeing were temporary supply chain issues deferring purchases, not a mass move away from Apple products. That is what both AAPL and MSFT did, leading the Nasdaq to overall outperformance. The Fed had made it quite clear that they were committed to the fight against inflation and would be continuing to squeeze credit conditions and hike rates.
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At the end of last year, for example, I pointed out that Apple (AAPL), which had just hit a 52-week low, was massively oversold given that what we were most likely seeing were temporary supply chain issues deferring purchases, not a mass move away from Apple products. That is what both AAPL and MSFT did, leading the Nasdaq to overall outperformance. The chart below, for the ETFs that track the three major indices, the S&P (SPY), the Dow (DIA), and the Nasdaq (QQQ) for the year thus far shows a dramatic disparity in returns.
|
At the end of last year, for example, I pointed out that Apple (AAPL), which had just hit a 52-week low, was massively oversold given that what we were most likely seeing were temporary supply chain issues deferring purchases, not a mass move away from Apple products. That is what both AAPL and MSFT did, leading the Nasdaq to overall outperformance. QQQ has gained 18.6%, the S&P 5.6%, and the Dow is actually in the negative, having dropped 0.9%.
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16552.0
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2023-03-31 00:00:00 UTC
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GRAPHIC-Markets in Q1: Moving fast and breaking things
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AAPL
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https://www.nasdaq.com/articles/graphic-markets-in-q1%3A-moving-fast-and-breaking-things-1
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nan
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nan
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By Marc Jones
LONDON, March 31 (Reuters) - From a red-hot January as China cast off COVID curbs to February's flop when interest rates surged and now a manic March of banking blow-ups - financial markets have had an action-packed start to the year even by recent standards.
Totting up the first quarter scores shows world stocks .MIWD00000PUS with a healthy 6% gain, government bonds up 3%-5%, gold XAU= 8% higher, energy prices sliding and the dollar USD= barely budged.
Dig deeper though and the volatility soon emerges.
Global shares zoomed up 10% in January only to lose it all by the time Silicon Valley Bank, a mid-sized U.S. lender few had even heard of, collapsed and then the 167-year-old Swiss behemoth Credit Suisse required rescuing.
Equities are bouncing though now and U.S. and European government bond yields - the main drivers of global borrowing costs - are set for their biggest monthly drop since the global crash of 2008.
"Within three months you have had three completely different stories," BofA analyst, David Hauner, said of the year so far.
"January was an extremely strong start with China's reopening, but February we were back to pricing 6% Fed interest rates and the next thing has been the problems in the banking system."
A key reason why asset prices have swung around so much is that market makers are unsure how big central banks will react now. Push on with rate hikes and tempt further banking sector troubles? Or press pause and risk more inflation?
Two-year Treasury yields US2YT=RR, which are highly sensitive to U.S. Federal Reserve moves, jumped from 4% to 5% in February, only to dive back to 3.5% when the SVB turmoil redrew the entire U.S. interest rate map.
That hoisted U.S. bond volatility .MOVE to its highest point since the 2008 meltdown. Europe too saw 2-year German yields arc from 2.5% to almost 3.5% and back, while changes at Japan's central bank have also been moving the dial.
'Big Tech' stocks .NYFANG crave low borrowing costs so they have roared up by a third. The Nasdaq is up 18% .NDX, China tech 22% .CSIINT, emerging market countries have sold record amounts of debt and commodity markets .TRCCRBTR see recessions coming.
"All the action has been in the bond markets," said SEB Investment Management's global head of asset allocation Hans Peterson, explaining the shifts had been hard to navigate. "The equity market has done impressively well considering."
COCO POP
The dollar's 1% dip is its weakest start to a year since 2018 and allowed Britain's pound GBP= and the euro EUR= to climb around 1.5%.
Worldwide, Chile CLP=, Mexico MEX=, Hungary HUF= and Colombia's COP= currencies have jumped the most - as much as 8% in Chile's case as its main export, copper, has also risen 7% as resource-hungry China has reopened and rebooted.
Top of stocks in national terms is the Czech Republic with a 30% rise in dollar terms. Colombia is down 16% at the other end of the spectrum and India is down 8% having seen one of its biggest conglomerates, Adani, skewed by short sellers.
Bitcoin BTC=BTSP beats the lot having surged 70%, including 40% in just 10 days during this month's SVB and Credit Suisse chaos.
Banking sector woes have been kryptonite for financial stocks, however, .BKX, CSGN.S as well as the risky breed of 'contingent convertible' (CoCo) bank bonds wiped out during Credit Suisse's rescue.
The scare factor was that the bank's shareholders got some of their money back, which turned the normal hierarchy of bondholders before shareholders on its head and shattered trust in the specific 'AT1' type of CoCos that went pop.
Other European banking authorities were so spooked they gave reassurances that they wouldn't do the same. CoCo debt is still down 15% however and insuring against a bank default now costs a lot more.
"For the banks it was the most nervous situation we have seen for a while," SEB's Peterson said.
DIRECTIONLESS
A 42% drop in Europe's natural gas prices TRNLTTFMc1, a 9% fall in oil LCOc1 and 12% and 4% respective tumbles in wheat /Wv1 and corn Cc1 have fed hopes of lower inflation despite the unrelenting war between producers Russia and Ukraine.
Since late 2021, big developed economies including the United States, Europe and Australia have raised interest rates by almost 3,300 basis points collectively. So whether that surge halts this year remains pivotal for investors.
It is crucial for many of the heavily-indebted developing world countries. Ghana has joined a record number of sovereigns in default this year and concerns are growing elsewhere too, including in U.S. commercial real estate markets.
"A lot of people have been looking for direction where there hasn't really been any," Willem Sels, Global Chief Investment Officer at HSBC's Private Banking and Wealth arm said of the flip-flopping in both equity and bond prices.
"It could well be that we are in a directionless but volatile market for the next quarter or two," he said, pinning Q3 or Q4 as the best hope for a sustained pick-up.
Currencies vs the US dollarhttps://tmsnrt.rs/40HQvbs
Shaky starthttps://tmsnrt.rs/3ZqwHZ5
The race to raise rateshttps://tmsnrt.rs/3ncfxRI
2023 asset performancehttps://tmsnrt.rs/42W80a4
SVB and Credit Suisse stocks see sudden collapsehttps://tmsnrt.rs/3ZAHwrv
(Reporting by Marc Jones; Editing by Christina Fincher)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Global shares zoomed up 10% in January only to lose it all by the time Silicon Valley Bank, a mid-sized U.S. lender few had even heard of, collapsed and then the 167-year-old Swiss behemoth Credit Suisse required rescuing. Two-year Treasury yields US2YT=RR, which are highly sensitive to U.S. Federal Reserve moves, jumped from 4% to 5% in February, only to dive back to 3.5% when the SVB turmoil redrew the entire U.S. interest rate map. A 42% drop in Europe's natural gas prices TRNLTTFMc1, a 9% fall in oil LCOc1 and 12% and 4% respective tumbles in wheat /Wv1 and corn Cc1 have fed hopes of lower inflation despite the unrelenting war between producers Russia and Ukraine.
|
Equities are bouncing though now and U.S. and European government bond yields - the main drivers of global borrowing costs - are set for their biggest monthly drop since the global crash of 2008. "January was an extremely strong start with China's reopening, but February we were back to pricing 6% Fed interest rates and the next thing has been the problems in the banking system." "All the action has been in the bond markets," said SEB Investment Management's global head of asset allocation Hans Peterson, explaining the shifts had been hard to navigate.
|
By Marc Jones LONDON, March 31 (Reuters) - From a red-hot January as China cast off COVID curbs to February's flop when interest rates surged and now a manic March of banking blow-ups - financial markets have had an action-packed start to the year even by recent standards. "January was an extremely strong start with China's reopening, but February we were back to pricing 6% Fed interest rates and the next thing has been the problems in the banking system." Banking sector woes have been kryptonite for financial stocks, however, .BKX, CSGN.S as well as the risky breed of 'contingent convertible' (CoCo) bank bonds wiped out during Credit Suisse's rescue.
|
The Nasdaq is up 18% .NDX, China tech 22% .CSIINT, emerging market countries have sold record amounts of debt and commodity markets .TRCCRBTR see recessions coming. Banking sector woes have been kryptonite for financial stocks, however, .BKX, CSGN.S as well as the risky breed of 'contingent convertible' (CoCo) bank bonds wiped out during Credit Suisse's rescue. CoCo debt is still down 15% however and insuring against a bank default now costs a lot more.
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16553.0
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2023-03-31 00:00:00 UTC
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Noteworthy Friday Option Activity: AAPL, LILAK, TH
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AAPL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aapl-lilak-th
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nan
|
nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 822,055 contracts have traded so far, representing approximately 82.2 million underlying shares. That amounts to about 122.3% of AAPL's average daily trading volume over the past month of 67.2 million shares. Especially high volume was seen for the $165 strike call option expiring March 31, 2023, with 95,186 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $165 strike highlighted in orange:
Liberty Latin America Ltd (Symbol: LILAK) options are showing a volume of 15,177 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 119.7% of LILAK's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $10 strike call option expiring April 21, 2023, with 15,170 contracts trading so far today, representing approximately 1.5 million underlying shares of LILAK. Below is a chart showing LILAK's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Target Hospitality Corp (Symbol: TH) options are showing a volume of 7,844 contracts thus far today. That number of contracts represents approximately 784,400 underlying shares, working out to a sizeable 117.2% of TH's average daily trading volume over the past month, of 669,185 shares. Particularly high volume was seen for the $20 strike call option expiring January 19, 2024, with 2,065 contracts trading so far today, representing approximately 206,500 underlying shares of TH. Below is a chart showing TH's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for AAPL options, LILAK options, or TH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding CRV
AMRS Options Chain
Top Ten Hedge Funds Holding AMBP
The views and 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 $165 strike call option expiring March 31, 2023, with 95,186 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 822,055 contracts have traded so far, representing approximately 82.2 million underlying shares. That amounts to about 122.3% of AAPL's average daily trading volume over the past month of 67.2 million shares.
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Especially high volume was seen for the $165 strike call option expiring March 31, 2023, with 95,186 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 822,055 contracts have traded so far, representing approximately 82.2 million underlying shares. That amounts to about 122.3% of AAPL's average daily trading volume over the past month of 67.2 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 822,055 contracts have traded so far, representing approximately 82.2 million underlying shares. Especially high volume was seen for the $165 strike call option expiring March 31, 2023, with 95,186 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. That amounts to about 122.3% of AAPL's average daily trading volume over the past month of 67.2 million shares.
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Especially high volume was seen for the $165 strike call option expiring March 31, 2023, with 95,186 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing TH's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for AAPL options, LILAK options, or TH options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 822,055 contracts have traded so far, representing approximately 82.2 million underlying shares.
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16554.0
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2023-03-31 00:00:00 UTC
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Apple Is Still a Buy Despite Market Rumors of an Impending Recession
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AAPL
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https://www.nasdaq.com/articles/apple-is-still-a-buy-despite-market-rumors-of-an-impending-recession
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nan
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nan
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Apple's (NASDAQ: AAPL) stock performed admirably in 2023, with shares up 25%, despite severe headwinds. But as great as the stock has looked so far this year, it turns out even Apple is not immune to this dreadful economy.
Terrible effects from inflation, the war in Ukraine, unfavorable foreign exchange rates, supply chain constraints, and the aftereffects of the pandemic combined to send year-over-year revenue into a steep decline.
The worst part is that the economy might turn even more unfavorable for Apple. Recent U.S. banking failures have brought the economy to the brink of a recession. Should you even consider buying a consumer electronics company like Apple in this economy?
Let's consider that question.
Consumers lack confidence in this economy
Apple's most significant revenue drivers, like the iPhone, fall into a category that economists call consumer discretionary: purchases that consumers deem nonessential but desirable when they have enough cash.
The main problem that consumer discretionary businesses like Apple have is that when consumer confidence in the economy drops, which happens in both extreme inflationary and deflationary environments, it is a sign that people have less cash to buy products like the iPhone.
The University of Michigan U.S. Index of Consumer Sentiment (ICS) is a monthly survey. The normalized ICS value is 100, assigned to the first quarter of 1966. Numbers at or above 100 signal an optimistic consumer and are an excellent sign for a consumer discretionary company. Conversely, the further below 100, the worse the economy.
The ICS value for March 2023 is 63.4, similar to some numbers recorded in the depths of the Great Recession in 2008. Considering that ICS numbers have steadily declined since the start of 2020, indicating that the economy has been worsening, it's little wonder that even mighty Apple succumbed over the last year with decelerating revenue growth, shrinking margins, and decreased profits.
AAPL revenue (quarterly YoY growth) data by YCharts. TTM = railing 12 months; YoY = year over year.
It has a solid balance sheet
So why would anyone buy Apple? In a downturn where many companies' revenue and profits are declining, the best businesses to invest in are ones that have a solid-enough balance sheet to survive and quickly rebound when the economy eventually turns upward.
Apple has $51.35 billion in cash and short-term investments on the balance sheet against $111.11 billion in long-term debt.
AAPL cash and short-term investments (quarterly) data by YCharts.
The best measurements to determine whether Apple can pay off its long-term debt are the ratio of net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) and the interest coverage ratio.
At the end of its December 2022 quarter, its ratio of net debt to EBITDA was 0.47 -- outstanding, considering any number below 3 is generally seen as acceptable. Generally, the lower the number, the better the odds the company pays off its debt.
Apple's interest-coverage ratio at the end of 2022 was an exceptional 35.9. Most analysts consider the bare-minimum acceptable interest coverage ratio to be 2, meaning the company earns more than twice the cash needed to pay interest expenses. So Apple's balance sheet is unlikely to be distressed even should a recession occur.
It has several powerful competitive advantages
Apple's most potent competitive advantage preventing competitors from gaining ground during this downturn is its integrated ecosystem of products and services designed to work best with other products within the iOS ecosystem. Only a few of its products and services operate with competing platforms, and often at reduced functionality. For instance, when people use AirPods on Android, it results in poor audio quality.
Apple users are often reluctant to switch to other brands since it can involve many hassles, like spending time and effort in transferring data, re-downloading apps on a new device, getting used to a new interface, or even changing payment services.
For instance, Apple Pay does not work on Android. As a result, many users will only buy the other products and services within its ecosystem, creating intense customer loyalty to the brand. In 2021, Consumer Intelligence Research Partners released a report showing that over 90% of iPhone users stayed loyal to the company. Meanwhile, Samsung's brand loyalty was below 70%.
Another significant competitive advantage of its ecosystem is its two-sided network effect. Each time another user joins Apple's installed base, its App Store becomes a much more attractive place for developers to build and sell their apps. And as more developers build apps for its ecosystem, the brand attracts even more users.
Apple's customers are often wealthier and more likely to spend higher amounts in the App Store than Alphabet's Google Play customers. So developers often view Apple's installed base of 2 billion active devices as more valuable than Google's customers, making it easier for Apple to keep and attract even more app developers.
Why you should consider buying the stock
This company is one of the consumer-facing tech companies most likely to survive this current downturn in great financial shape and thrive once the economy turns the corner.
If you are a buy-and-hold investor who believes in reliable companies that you plan to keep for at least five to 10 years, it would be hard to find a more rock-solid company than Apple.
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{%sfr%}
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rob Starks Jr has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. 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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Apple's (NASDAQ: AAPL) stock performed admirably in 2023, with shares up 25%, despite severe headwinds. AAPL revenue (quarterly YoY growth) data by YCharts. AAPL cash and short-term investments (quarterly) data by YCharts.
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AAPL revenue (quarterly YoY growth) data by YCharts. Apple's (NASDAQ: AAPL) stock performed admirably in 2023, with shares up 25%, despite severe headwinds. AAPL cash and short-term investments (quarterly) data by YCharts.
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Apple's (NASDAQ: AAPL) stock performed admirably in 2023, with shares up 25%, despite severe headwinds. AAPL revenue (quarterly YoY growth) data by YCharts. AAPL cash and short-term investments (quarterly) data by YCharts.
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Apple's (NASDAQ: AAPL) stock performed admirably in 2023, with shares up 25%, despite severe headwinds. AAPL revenue (quarterly YoY growth) data by YCharts. AAPL cash and short-term investments (quarterly) data by YCharts.
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16555.0
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2023-03-31 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-4
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) have a reputation for reliable growth, rising 279% in the last five years and 897% in the last decade. The company's stability stems from a powerful brand that has immense loyalty among consumers willing to pay a premium for its products and their interconnected ecosystem.
Apple often faces scrutiny as the company with the largest market cap in the world at about $2.5 trillion. It regularly fields criticism for controversial moves from those who don't share the company's long-term vision. Most recently, it made headlines for its ventures into finance and mixed reality.
While the stock's past performance makes it look like a sure thing, it's wise to be fully informed about a company before adding it to your portfolio. Here are three things about Apple that smart investors know.
1. It's pushing further into finance
On March 29, Apple increased its push into finance by launching a buy now, pay later (BNPL) program in the U.S., challenging similar services from Klarna and Affirm. The new service is available to select U.S. consumers and has been built directly into the company's Wallet app.
Apple Pay Later will offer zero-interest loans ranging from $50 to $1,000, allowing consumers to pay for various goods and services in four payments over six weeks. The loans will go through an Apple-owned subsidiary called Apple Financing.
The new venture has the company partnering with Goldman Sachs, as Apple did when launching its credit card in 2019. The banking organization will grant Apple access to Mastercard's network, since the iPhone maker does not hold a license to issue payment credentials.
Apple Pay Later has been directly integrated into the iPhone, which will likely boost the service's mass adoption thanks to the company's leading 24.1% market share in smartphones.
A BNPL program could prove incredibly lucrative in the long run, with future price increases in its iPhones and other products potentially being an easier pill to swallow if consumers can pay over time. And the financial service could expand the company's smartphone market share by attracting users who otherwise wouldn't be interested in its products.
2. There is internal conflict over a new product
A New York Times article on March 26 described dissent at Apple about the launch of its first augmented/virtual reality (AR/VR) headset later this year. Executives are reported to be concerned about the device's profitability in an untested market, its high price tag, and its utility prospects.
The mixed-reality headset is expected to have AR and VR features displayed in an iOS-like interface, and to cost around $3,000. The device will reportedly be launched in June, with CEO Tim Cook telling a group of students in 2022, "You'll wonder how you lived your life without augmented reality, just like today you wonder: How did people like me grow up without the internet?"
Mixed reality is a steadily growing market. The AR and VR industry is projected to expand at a compound annual rate of 13.72% through 2027, hitting a value of $52.05 billion, according to Statista.
Apple has beaten the odds before when entering new markets. It had many critics when it released the first iPhone and iPad. Past successes in numerous other unproven markets suggest the company could be the future leader of a booming mixed-reality industry.
3. It's the most valuable brand in the world
According to Omnicom Group's global brand consultancy Interbrand, Apple is the most valuable brand in the world at $482.2 billion. Just behind it is Microsoft at $278.3 billion and Amazon at $274.8 billion.
Apple's climb to the top of tech grants it more power than most when releasing new products. Its potent brand allowed it to achieve dominating market shares in smartphones, tablets, smartwatches, and headphones. The company's share in tablets is 49.2% after triggering mass adoption of the devices with the first iPad in 2010.
The company has similarly taken over the headphone market with its line of AirPods, hitting a 34.4% share in 2021. When including its subsidiary Beats, that share jumps to 49.7%.
Apple is a diversified company with a growing line of products and services. It might stumble when first entering the AR/VR market, but thecompany seems to have a better shot than most at succeeding, thanks to its powerful brand. Meanwhile, its expansion into other markets, such as finance, will likely prove fruitful, making Apple's stock an excellent buy right now.
10 stocks we like better than Apple
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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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Affirm, Amazon.com, Apple, Goldman Sachs Group, Mastercard, Microsoft, and New York Times. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short April 2023 $38 calls on New York Times, short January 2025 $380 calls on Mastercard, 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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Shares of Apple (NASDAQ: AAPL) have a reputation for reliable growth, rising 279% in the last five years and 897% in the last decade. The banking organization will grant Apple access to Mastercard's network, since the iPhone maker does not hold a license to issue payment credentials. A BNPL program could prove incredibly lucrative in the long run, with future price increases in its iPhones and other products potentially being an easier pill to swallow if consumers can pay over time.
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Shares of Apple (NASDAQ: AAPL) have a reputation for reliable growth, rising 279% in the last five years and 897% in the last decade. It's pushing further into finance On March 29, Apple increased its push into finance by launching a buy now, pay later (BNPL) program in the U.S., challenging similar services from Klarna and Affirm. The Motley Fool has positions in and recommends Affirm, Amazon.com, Apple, Goldman Sachs Group, Mastercard, Microsoft, and New York Times.
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Shares of Apple (NASDAQ: AAPL) have a reputation for reliable growth, rising 279% in the last five years and 897% in the last decade. It's pushing further into finance On March 29, Apple increased its push into finance by launching a buy now, pay later (BNPL) program in the U.S., challenging similar services from Klarna and Affirm. Apple Pay Later has been directly integrated into the iPhone, which will likely boost the service's mass adoption thanks to the company's leading 24.1% market share in smartphones.
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Shares of Apple (NASDAQ: AAPL) have a reputation for reliable growth, rising 279% in the last five years and 897% in the last decade. The loans will go through an Apple-owned subsidiary called Apple Financing. That's right -- they think these 10 stocks are even better buys.
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16556.0
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2023-03-31 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-12
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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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16557.0
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2023-03-31 00:00:00 UTC
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Which Is the Better Dividend Stock: Viatris or Apple?
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AAPL
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https://www.nasdaq.com/articles/which-is-the-better-dividend-stock%3A-viatris-or-apple
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nan
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nan
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Viatris (NASDAQ: VTRS) and Apple (NASDAQ: AAPL) are two dividend-paying stocks that don't have much in common, which can make them a bit difficult to compare as investments. Whereas Viatris makes generic medicines like Lipitor, Apple makes its own branded products like the iPhone. Yet, it's safe to say that people aren't inclined to go without either of those items.
So does it make more sense to look for passive income with the healthcare company, or with one of the technology sector's top dogs? Let's dive in and compare.
Image source: Getty Images.
Selling generic drugs can provide years of passive income
There are a few arguments for considering Viatris a better dividend stock than Apple, starting with the fact that the generic drug manufacturer will yield you a lot more in dividend income per dollar.
Viatris' forward dividend yield over 5.2% means that you'll get a decent cash return on your investment from the first payment onward. Likewise, management states that it's a priority to continue hiking the dividend and returning capital to investors via share buybacks, and it insists that 2023 will be the year when those two policies start to accelerate.
But there's a very limited track record of it actually doing either of those things as the company only completed its spinoff from Pfizer in late 2020. So investors need to take management's signaling with a grain of salt.
In 2022, Viatris brought in more than $16.2 billion in sales, and Wall Street analysts estimate on average that it'll sell around $15.6 billion in 2023, with a similar sum slated for 2024. The decline in growth is a result of a recent spinoff of Viatris' biosimilar medicines business, for which it received $2 billion in cash and $1 billion in convertible preferred equity in the (private) buyer, Biocon Biologics.
In the near future, Viatris will launch new generics in its ophthalmology and complex injectables segments, among others. This should bring in around $500 million each year between 2024 and 2028, which would give it a relatively stable earnings per share (EPS) growth rate of about 15% per year. Viatris will also be expanding into China, which should drive further growth. That should provide enough leftover money to pass to shareholders as well as reduce its debt load of $19.5 billion.
Finally, there's the underlying durability of Viatris' business. Medical systems are going to need inexpensive supplies of generic medicines for the foreseeable future, and it'll take some pretty gnarly economic turbulence before Viatris' sales are threatened. Furthermore, while it's true that the company is always going to be fighting against erosion of its market share from newer and better medicines that hit the market, it'll eventually be able to make generic copies of those too.
So in the long term, Viatris' model looks quite stable. Just don't forget that it hasn't actually proven that it can operate that business model profitably over time as of yet.
Apple may be better for those with lower risk tolerance
As much as people are going to continue needing generic drugs, they're also going to keep buying Apple's iPhones, computers, cloud services, apps, and other products, and investors are going to keep reaping the rewards. And that probably makes it a better dividend stock for most investors with an average risk tolerance, at least for today.
First off, Apple is growing much faster than Viatris, with its top line rising by 43.6% in the last three years to top $394.3 billion, and its bottom line climbing by 73.8% to reach $99.8 billion in the same period. To accomplish that, it followed the same formula as it'll likely do in the future: make incremental improvements to its products, price them at a premium, and rely on its massive base of highly loyal customers to replace their old Apple devices every few years.
It'll also be reaping the rewards of its App Store platform, all the while collecting a portion of the revenue from developers that market their programs there.
Over the last five years, Apple increased its dividends per share by an average of 8.5% annually, which is neither rapid nor sluggish. But it doesn't make its low dividend yield of near 0.6% any more palatable. However, in the same period, it repurchased an average of $77.1 billion of its shares per year. So even if shareholders would need a much larger initial investment to get the same amount of dividend income as they would with Viatris, they're also exposed to a significantly higher pace of share price appreciation, in part because there are fewer outstanding shares over time.
The other factor that makes Apple the better dividend stock is that it has a much longer history of paying out to shareholders, successfully competing, and being a relatively stable investment over time. Simply put, its brand is a competitive advantage that helps to lock in its market share and keep its profit margin nice and wide -- it's currently near 24.5%, which is within a few percentage points of its norm over the last 10 years.
Viatris simply hasn't shown that it can be profitable and pay out its dividends over a similarly lengthy period yet, so it's a riskier investment.
10 stocks we like better than Viatris
When our award-winning 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 Viatris 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
Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple and Pfizer. The Motley Fool recommends Viatris and 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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Viatris (NASDAQ: VTRS) and Apple (NASDAQ: AAPL) are two dividend-paying stocks that don't have much in common, which can make them a bit difficult to compare as investments. Likewise, management states that it's a priority to continue hiking the dividend and returning capital to investors via share buybacks, and it insists that 2023 will be the year when those two policies start to accelerate. To accomplish that, it followed the same formula as it'll likely do in the future: make incremental improvements to its products, price them at a premium, and rely on its massive base of highly loyal customers to replace their old Apple devices every few years.
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Viatris (NASDAQ: VTRS) and Apple (NASDAQ: AAPL) are two dividend-paying stocks that don't have much in common, which can make them a bit difficult to compare as investments. Whereas Viatris makes generic medicines like Lipitor, Apple makes its own branded products like the iPhone. Selling generic drugs can provide years of passive income There are a few arguments for considering Viatris a better dividend stock than Apple, starting with the fact that the generic drug manufacturer will yield you a lot more in dividend income per dollar.
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Viatris (NASDAQ: VTRS) and Apple (NASDAQ: AAPL) are two dividend-paying stocks that don't have much in common, which can make them a bit difficult to compare as investments. Selling generic drugs can provide years of passive income There are a few arguments for considering Viatris a better dividend stock than Apple, starting with the fact that the generic drug manufacturer will yield you a lot more in dividend income per dollar. The Motley Fool recommends Viatris and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Viatris (NASDAQ: VTRS) and Apple (NASDAQ: AAPL) are two dividend-paying stocks that don't have much in common, which can make them a bit difficult to compare as investments. Whereas Viatris makes generic medicines like Lipitor, Apple makes its own branded products like the iPhone. Just don't forget that it hasn't actually proven that it can operate that business model profitably over time as of yet.
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16558.0
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2023-03-31 00:00:00 UTC
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US STOCKS-Futures mixed as investors await key inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-mixed-as-investors-await-key-inflation-data
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 31 (Reuters) - U.S. stock index futures were mixed on Friday as investors awaited inflation data for cues on the Federal Reserve's monetary policy path amid receding fears of a banking crisis.
The Commerce Department is expected to release the February reading of the personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, at 8:30 am ET (12:30 GMT).
The report is expected to show consumer spending, which accounts for more than two-thirds of U.S. economic activity, likely rose 0.3% in February, after jumping 1.8% in January.
"People are somewhat cautious (ahead of the data). It's just a matter of how the inflation numbers come out and if there is a drop in both top and core, then the market can continue to rally," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Friday will cap a turbulent first quarter for stocks, marked by sticky inflation, shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks, as well as a repricing of interest rate expectations from the Fed.
The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 given a rotation into major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
The benchmark S&P 500 .SPX is up nearly 6% so far in the first quarter.
Some Fed officials have noted a potential hit to the economy from banking sector problems, while recent data including an uptick in weekly jobless claims has supported hopes that the central bank is close to the end of its market-punishing rate hikes aimed at cooling demand.
Traders' bets of a 25-basis-point rate hike from the Fed in May stand at 52.5%, with the remaining odds for a no-hike scenario, according to CME Group's Fedwatch tool.
The KBW Regional banking index .KRX and the S&P 500 banks index .SPXBK, which houses major banks, have lost 19% and 14%, respectively, so far during the quarter.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 76 points, or 0.23%, S&P 500 e-minis EScv1 were up 7.75 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 1.25 points, or 0.01%.
Major technology and other growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell about 0.2% in premarket trade on Friday as U.S. Treasury yields ticked higher.
Consumer sentiment data from the University of Michigan is due later in the day, while New York Federal Reserve Bank President John Williams and Fed Governor Lisa Cook are also scheduled to speak.
Among specific stocks, Virgin Orbit Holdings VORB.O tanked 45.3% premarket, a day after the rocket maker said it was cutting about 85% of staff because it had not been able to raise new investment.
U.S.-listed shares of Canadian software firm BlackBerry Ltd BB.N dropped 4.0% following disappointing results and outlook.
Rumble Inc RUM.O jumped 14.6% after the video-sharing platform reported a surge in fourth-quarter revenue.
S&P 500 sectoral performance in Q1https://tmsnrt.rs/3G83wmR
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Nivedita Bhattacharjee and Vinay Dwivedi)
((Amruta.Khandekar@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 other growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell about 0.2% in premarket trade on Friday as U.S. Treasury yields ticked higher. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - U.S. stock index futures were mixed on Friday as investors awaited inflation data for cues on the Federal Reserve's monetary policy path amid receding fears of a banking crisis. The Commerce Department is expected to release the February reading of the personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, at 8:30 am ET (12:30 GMT).
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Major technology and other growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell about 0.2% in premarket trade on Friday as U.S. Treasury yields ticked higher. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - U.S. stock index futures were mixed on Friday as investors awaited inflation data for cues on the Federal Reserve's monetary policy path amid receding fears of a banking crisis. The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 given a rotation into major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
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Major technology and other growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell about 0.2% in premarket trade on Friday as U.S. Treasury yields ticked higher. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - U.S. stock index futures were mixed on Friday as investors awaited inflation data for cues on the Federal Reserve's monetary policy path amid receding fears of a banking crisis. Friday will cap a turbulent first quarter for stocks, marked by sticky inflation, shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks, as well as a repricing of interest rate expectations from the Fed.
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Major technology and other growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell about 0.2% in premarket trade on Friday as U.S. Treasury yields ticked higher. By Amruta Khandekar and Ankika Biswas March 31 (Reuters) - U.S. stock index futures were mixed on Friday as investors awaited inflation data for cues on the Federal Reserve's monetary policy path amid receding fears of a banking crisis. The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 given a rotation into major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
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2023-03-31 00:00:00 UTC
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Have $3,000? These 3 Stocks Could Be Bargains for 2023 and Beyond
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https://www.nasdaq.com/articles/have-%243000-these-3-stocks-could-be-bargains-for-2023-and-beyond
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Editors note: The IBM section of this article was edited to include correct numbers and information for the company.
After suffering painful declines in 2022, many tech stocks surged higher beginning late last year and into the first quarter of 2023. It is not yet clear whether this is the beginning of a recovery.
Nonetheless, if investors have $3,000 or a similar sum to put to work, tech stocks such as Broadcom (NASDAQ: AVGO), Qualcomm (NASDAQ: QCOM), and IBM (NYSE: IBM) are in a position to drive returns with limited potential downside.
1. Broadcom
The company first became known as a business-to-business chip provider, collaborating with large clients to meet their needs. The best-known Broadcom solution among consumers is probably the one enabling the Wi-Fi hotspot in Apple's iPhone. But the company's broad portfolio of products and clients, is behind the company's rapid growth.
In 2018, it also began to diversify into enterprise software, and its proposed acquisition to buy VMware for $61 billion would dramatically enlarge that segment. The proposed VMware merger has come under regulatory scrutiny, making it unclear whether the acquisition will occur.
But the stock will likely prosper even if the acquisition does not gain approval. For fiscal 2022 (ended Oct. 30), its revenue of $33 billion marked a 21% increase from a year earlier. Over that time, the semiconductor solutions segment, which accounted for 78% of revenue, grew by 27%. In comparison, infrastructure software, which would absorb VMware, saw its revenue rise by only 4%.
That improvement helped its net income rise to about $11.5 billion for the year, up from $6.7 billion in 2021. A reduction in operating expenses boosted that profit growth despite a $910 million increase in income tax expenses.
Broadcom stock sells for about the same as a year ago after recovering lost gains. That does not include the dividend, which, after a recent increase to $18.40 per share annually, gives investors a 3% cash return.
And thanks to Broadcom's rising income, investors can buy this stock at only 21 times earnings. That valuation and growth should make it a bargain even if regulators do not approve the VMware purchase.
2. Qualcomm
You might not expect to see Qualcomm mentioned as a bargain stock, given its crucial role in communications. While it continues to lead the way in 5G, sluggish handset sales led investors to turn on the stock in recent months. They might have also become wary because Qualcomm continues to depend on China for 64% of its revenue in 2022.
But the world is in the midst of a 5G upgrade cycle, so it is likely most consumers will buy a phone with a Qualcomm 5G chip eventually. Moreover, the company continues to prepare for a time when fewer communications happen through handsets.
These moves include providing chips for Meta's Oculus VR headsets and building its Snapdragon Digital Chassis, which has attracted attention from automakers.
Still, the short-term struggles appeared in the financials for the fiscal first quarter of 2023 (ended Dec. 25). Revenue of $9.5 billion marked a 12% decline year over year. Falling handset sales and royalties accounted for the decline as other segments experienced rising sales. This is in stark contrast to fiscal 2022, when revenue increased 32% to $44 billion.
Consequently, in the first quarter, adjusted net income fell 27% to $2.7 billion as costs and expenses continued increasing amid the revenue drop.
The slowdown likely has put pressure on the stock price. Nonetheless, the $3 per share annual dividend and its 2.5% yield could prompt investors to give Qualcomm a serious look. Lastly, its price-to-earnings (P/E) ratio of 12 probably reflects that investors are pricing the aforementioned troubles into the stock, setting Qualcomm up for a possible rebound as conditions improve.
3. IBM
IBM might seem cheap given its recent history. The stock struggled for over a decade as its legacy businesses fought to attract growth. As a result, it lost more than one-third of its value over the past 10 years.
IBM Data source: YCharts.
But the company seems to poised to change its fortunes. In 2019, a $34 billion acquisition of Red Hat took IBM headlong into the cloud. Arvind Krishna, the former division head who spearheaded the Red Hat purchase, became chief executive officer in April 2020 and followed up the move with more cloud-related acquisitions.
He also oversaw the spinoff of its managed infrastructure business into Kyndryl, which finally allowed IBM to return to consistent top-line growth.
In 2022, the company had $60.5 billion in revenue, a 6% increase from 2021. This included an 11% gain in hybrid cloud revenue. However, IBM transferred $5.9 billion in U.S. pension obligations to an insurer. This one-time charge caused GAAP net income in 2022 to fall to $1.6 billion, down from $5.7 billion in 2021. That affected valuation negatively, taking the P/E ratio to 73.
Nonetheless, the forward P/E of 13 probably means it is not an expensive stock. Also, the $6.60 per year in annual dividend income offers a 5.1% cash return. A 27-year record of payout hikes means that the dividend will probably rise further. That payout should stand investors in good stead as IBM continues to transform itself.
10 stocks we like better than Broadcom
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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. Will Healy has positions in Qualcomm. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Qualcomm. The Motley Fool recommends Broadcom and VMware and 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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These moves include providing chips for Meta's Oculus VR headsets and building its Snapdragon Digital Chassis, which has attracted attention from automakers. Lastly, its price-to-earnings (P/E) ratio of 12 probably reflects that investors are pricing the aforementioned troubles into the stock, setting Qualcomm up for a possible rebound as conditions improve. Arvind Krishna, the former division head who spearheaded the Red Hat purchase, became chief executive officer in April 2020 and followed up the move with more cloud-related acquisitions.
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Nonetheless, if investors have $3,000 or a similar sum to put to work, tech stocks such as Broadcom (NASDAQ: AVGO), Qualcomm (NASDAQ: QCOM), and IBM (NYSE: IBM) are in a position to drive returns with limited potential downside. That does not include the dividend, which, after a recent increase to $18.40 per share annually, gives investors a 3% cash return. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Qualcomm.
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Nonetheless, if investors have $3,000 or a similar sum to put to work, tech stocks such as Broadcom (NASDAQ: AVGO), Qualcomm (NASDAQ: QCOM), and IBM (NYSE: IBM) are in a position to drive returns with limited potential downside. And thanks to Broadcom's rising income, investors can buy this stock at only 21 times earnings. 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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And thanks to Broadcom's rising income, investors can buy this stock at only 21 times earnings. Revenue of $9.5 billion marked a 12% decline year over year. In 2022, the company had $60.5 billion in revenue, a 6% increase from 2021.
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2023-03-31 00:00:00 UTC
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GM plans to phase out Apple CarPlay in EVs, with Google's help
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https://www.nasdaq.com/articles/gm-plans-to-phase-out-apple-carplay-in-evs-with-googles-help
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By Joseph White
DETROIT, March 31 (Reuters) - General Motors GM.N plans to phase out widely-used Apple CarPlay and Android Auto technologies that allow drivers to bypass a vehicle's infotainment systems, shifting instead to built-in infotainment systems developed with Google for future electric vehicles.
Apple CarPlay and Android Auto systems allow users to mirror their smartphone screens in a vehicle's dashboard display.
GM's decision to stop offering those systems in future electric vehicles, starting with the 2024 Chevrolet Blazer, could help the automaker capture more data on how consumers drive and charge EVs.
GM is designing the on-board navigation and infotainment systems for future EVs in partnership with Alphabet Inc's GOOGL.O Google.
The decision to phase out CarPlay smartphone projection technology is a setback for Apple Inc AAPL.O in the competition with Google to capture more real estate on vehicle dashboards in North America. GM's Chevrolet brand in the past boasted of offering more models with CarPlay or Android Auto than any other brand.
GM has been working with Google since 2019 to develop the software foundations for infotainment systems that will be more tightly integrated with other vehicle systems such as GM's Super Cruise driver assistant. The automaker is accelerating a strategy for its EVs to be platforms for digital subscription services.
By 2035, GM's goal is to phase out production of new combustion light-duty vehicles.
GM would benefit from focusing engineers and investment on one approach to more tightly connecting in-vehicle infotainment and navigation with features such as assisted driving, Edward Kummer, GM's chief digital officer, and Mike Himche, executive director of digital cockpit experience, said in an interview.
"We have a lot of new driver assistance features coming that are more tightly coupled with navigation," Himche told Reuters. "We don’t want to design these features in a way that are dependent on person having a cellphone."
Buyers of GM EVs with the new systems will get access to Google Maps and Google Assistant, a voice command system, at no extra cost for eight years, GM said. GM said the future infotainment systems will offer applications such as Spotify's SPOT.N music service, Audible and other services that many drivers now access via smartphones.
"We do believe there are subscription revenue opportunities for us," Kummer said. GM Chief Executive Mary Barra is aiming for $20 billion to $25 billion in annual revenue from subscriptions by 2030.
GM plans to continue offering Apple CarPlay and Android Auto mirroring systems in its combustion models. Owners of vehicles equipped with the mirroring technologies will still be able to use the systems, GM said.
Drivers also will still be able to listen to music or make phone calls on iPhones or Android smartphones using Bluetooth wireless connectivity, GM said.
(Reporting By Joe White Editing by Chris Reese)
((Joe.White@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The decision to phase out CarPlay smartphone projection technology is a setback for Apple Inc AAPL.O in the competition with Google to capture more real estate on vehicle dashboards in North America. GM's decision to stop offering those systems in future electric vehicles, starting with the 2024 Chevrolet Blazer, could help the automaker capture more data on how consumers drive and charge EVs. Drivers also will still be able to listen to music or make phone calls on iPhones or Android smartphones using Bluetooth wireless connectivity, GM said.
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The decision to phase out CarPlay smartphone projection technology is a setback for Apple Inc AAPL.O in the competition with Google to capture more real estate on vehicle dashboards in North America. By Joseph White DETROIT, March 31 (Reuters) - General Motors GM.N plans to phase out widely-used Apple CarPlay and Android Auto technologies that allow drivers to bypass a vehicle's infotainment systems, shifting instead to built-in infotainment systems developed with Google for future electric vehicles. GM would benefit from focusing engineers and investment on one approach to more tightly connecting in-vehicle infotainment and navigation with features such as assisted driving, Edward Kummer, GM's chief digital officer, and Mike Himche, executive director of digital cockpit experience, said in an interview.
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The decision to phase out CarPlay smartphone projection technology is a setback for Apple Inc AAPL.O in the competition with Google to capture more real estate on vehicle dashboards in North America. By Joseph White DETROIT, March 31 (Reuters) - General Motors GM.N plans to phase out widely-used Apple CarPlay and Android Auto technologies that allow drivers to bypass a vehicle's infotainment systems, shifting instead to built-in infotainment systems developed with Google for future electric vehicles. GM has been working with Google since 2019 to develop the software foundations for infotainment systems that will be more tightly integrated with other vehicle systems such as GM's Super Cruise driver assistant.
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The decision to phase out CarPlay smartphone projection technology is a setback for Apple Inc AAPL.O in the competition with Google to capture more real estate on vehicle dashboards in North America. By Joseph White DETROIT, March 31 (Reuters) - General Motors GM.N plans to phase out widely-used Apple CarPlay and Android Auto technologies that allow drivers to bypass a vehicle's infotainment systems, shifting instead to built-in infotainment systems developed with Google for future electric vehicles. GM is designing the on-board navigation and infotainment systems for future EVs in partnership with Alphabet Inc's GOOGL.O Google.
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16561.0
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2023-03-31 00:00:00 UTC
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Should Invesco S&P 500 Top 50 ETF (XLG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-invesco-sp-500-top-50-etf-xlg-be-on-your-investing-radar-7
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The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $1.83 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.22%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 37.40% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 47.68% of total assets under management.
Performance and Risk
XLG seeks to match the performance of the S&P 500 Top 50 ETF Index before fees and expenses. The S&P 500 Top 50 Index is composed of 50 of the largest companies in the S&P 500 Index.
The ETF has gained about 11.21% so far this year and is down about -13.10% in the last one year (as of 03/31/2023). In the past 52-week period, it has traded between $266.55 and $356.56.
The ETF has a beta of 1 and standard deviation of 21.20% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Top 50 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, XLG is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $302.87 billion in assets, SPDR S&P 500 ETF has $370.83 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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. The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco S&P 500 Top 50 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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. The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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2023-03-31 00:00:00 UTC
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87% of Warren Buffett's More Than $6.1 Billion in Dividend Income Comes From These 7 Stocks
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https://www.nasdaq.com/articles/87-of-warren-buffetts-more-than-%246.1-billion-in-dividend-income-comes-from-these-7-stocks
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If you've ever wondered why so many investors pay close attention to what the Oracle of Omaha, Warren Buffett, is buying and selling, look no further than his performance as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Since taking over in 1965, he's doubled the average annual total return of the benchmark S&P 500 (19.8% vs. 9.9%) and produced an aggregate return of 3,787,464% for the company's Class A shares (BRK.A). This is 153 times greater than the total aggregate return for the S&P 500, including dividends.
In other words, mirroring Warren Buffett's trading activity has been a moneymaking strategy for nearly six decades.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett's secret sauce to success is extensive, with long holding periods and portfolio concentration playing key roles. But one of the unsung heroes of Berkshire Hathaway's success that doesn't get nearly enough credit or attention is dividend stocks.
Companies that pay a regular dividend are typically time-tested and profitable on a recurring basis. It also doesn't hurt that income stocks have historically outperformed non-dividend payers by a significant amount.
In 2023, inclusive of common and preferred stock, as well as the largest holdings from Warren Buffett's secret portfolio, Berkshire Hathaway is on track to collect $6,137,691,721 in dividend income. However, just seven stocks will account for a whopping 87% of this dividend income.
1. Chevron: $1,010,816,777 in annual dividend income
Practically a sixth of the dividend income Warren Buffett's company is set to collect this year will come from energy stock Chevron (NYSE: CVX), which has increased its base annual payout for 36 consecutive years.
The reason the Oracle of Omaha and his investing lieutenants (Todd Combs and Ted Weschler) have piled into Chevron since late 2020 is likely the belief that energy commodity prices will remain high for the foreseeable future. Russia's invasion of Ukraine, coupled with more than three years of reduced capital investment caused by pandemic-related demand uncertainty, has created crude oil and natural gas supply-chain issues. A market where the oil and gas supply is tight is normally a recipe for elevated energy commodity spot prices.
The other lures include Chevron's balance sheet and capital-return program. Thanks to higher oil prices throughout much of 2022, Chevron reduced its net debt from $25.7 billion to just $5.4 billion, as well as announced an up to $75 billion share buyback.
Higher oil prices have lifted Occidental's operating cash flow and helped it pay down debt. WTI Crude Oil Spot Price data by YCharts.
2. Occidental Petroleum: $952,429,702 (including preferred stock dividends)
Staying within the energy sector, oil stock Occidental Petroleum (NYSE: OXY) is Berkshire Hathaway's second-biggest dividend payer. The more than 211 million shares of common stock held by Buffett's company are set to generate more than $152 million in dividend income this year. Additionally, Berkshire has $10 billion in preferred shares of Occidental Petroleum that yield 8% annually -- thus, the extra $800 million.
The buy thesis for Occidental is somewhat similar to Chevron, but there are two key differences. While a broken energy supply chain is a catalyst for higher energy commodity prices, a higher percentage of Occidental's revenue derives from its drilling operations than Chevron. This means Occidental is more heavily levered to the vacillations in the spot price of crude oil.
The other thing to note is Occidental's balance sheet is more burdened by debt, compared to Chevron. Although the company has nearly halved its net debt over the past two years, as well as reintroduced its share-repurchase program, there's more work to be done.
Rapidly rising interest rates are boosting BofA's net interest income. Effective Federal Funds Rate data by YCharts.
3. Bank of America: $908,909,765
There isn't an industry Warren Buffett is more confident or comfortable investing in than bank stocks. Money-center giant Bank of America (NYSE: BAC) is Berkshire Hathaway's second-largest holding by market value and is currently on pace to deliver close to $909 million in dividend income this year.
Buffett loves bank stocks because the industry is cyclical. The Oracle of Omaha and his investing lieutenants fully understand that recessions are a normal part of the economic cycle. Rather than trying to time these downturns, Buffett and his team have packed their company's portfolio with businesses like BofA that benefit from long-winded expansions and grow in lockstep with the U.S. and global economies.
Despite growing fears about the health of U.S. and European banks, Bank of America seems to have a solid foundation. As the most interest-rate sensitive U.S. money-center bank, BofA is benefiting more than any of its peers as the Fed hikes interest rates. Even if loan losses rise in the short run, the benefit of more net-interest income from higher interest rates can more than offset an increase in loan losses.
Image source: Apple.
4. Apple: $842,315,551
Tech-stock Apple (NASDAQ: AAPL) has been dubbed by the Oracle of Omaha as one of Berkshire Hathaway's "four giants." Apple is, by far, Berkshire Hathaway's largest holding by market value, and it's on course to dole out more than $842 million in dividend income to Buffett's company this year.
Apple's brand and innovation are what make it such a special company. It's been the most valuable global brand for 10 consecutive years, according to Interbrand, and has accounted for approximately half of all smartphone-market share in the U.S. since introducing a 5G-capable version of its popular iPhone during the fourth quarter of 2020.
The company is also shifting its focus to subscription services. These offer sustainable double-digit sales growth, high margins, and a way to offset any revenue fluctuations associated with physical product-replacement cycles.
However, Buffett's favorite thing about Apple is probably its capital-return program. Apple has one of the largest nominal-dollar dividends on the planet and has repurchased well over $550 billion worth of its common stock over the past decade.
5. Coca-Cola: $736,000,000
Even though beverage stock Coca-Cola (NYSE: KO) only ranks fifth among dividend payers in Buffett's portfolio, it's the perfect example of leaning on time as an ally. With a cost basis of $3.2475 per share of Coke and an annual payout of $1.84/share, Berkshire's yield on cost for its Coca-Cola stake is a jaw-dropping 56.7%!
The beauty of Coke's operating model is that it's predictable. Regardless of whether the U.S. and global economies are firing on all cylinders or struggling, Coca-Cola's sales and income don't change much.
That's due, in large part, to Coke having a presence in all but three countries worldwide (North Korea, Cuba, and Russia). Broad-based geographic diversity allows Coca-Cola to generate consistent cash flow in developed countries while leaning on faster organic growth potential in emerging/developing markets.
Similar to Apple, Coca-Cola's branding is on point. Arguably, it's the most recognized consumer goods brand in the world. Whether its marketing team is using social media or sporting events to connect with a younger generation or relying on its holiday-themed associations to engage with a more mature audience, Coca-Cola has a history of connecting with multiple generations of consumers.
6. Kraft Heinz: $521,015,709
Packaged foods and condiments provider Kraft Heinz (NASDAQ: KHC) pays a handsome dividend. Berkshire Hathaway is expected to collect more than $521 million from Kraft Heinz in 2023.
Whereas most businesses were adversely impacted by the COVID-19 pandemic, Kraft Heinz benefited from people staying home. The company's easy-to-make meals, snacks, and condiments were popular purchases.
Owning more than a dozen well-known food brands hasn't hurt, either. Kraft Heinz's strong pricing power has helped the company fight back against historically high inflation.
The concern for Kraft Heinz and its shareholders is that the company has quite a bit of long-term debt, goodwill, and intangible assets on its balance sheet. Without a lot of financial flexibility, maintaining the momentum Kraft Heinz enjoyed during the pandemic years could be virtually impossible.
7. American Express: $363,865,680
The seventh stock that collectively accounts for 87% of the $6.137 billion in dividend income that Warren Buffett's company is on pace to receive in 2023 is credit-services company American Express (NYSE: AXP). AmEx has been continuously held by Berkshire Hathaway for the past 30 years and sports an impressive yield on cost of more than 28%.
One of the keys to the long-term success of American Express is its ability to play both sides of the aisle. In addition to collecting a fee from merchants for processing transactions on its network, AmEx is a lender. This allows the company to bring in interest income and fee revenue from cardholders, along with payment-processing fees.
Among lenders, American Express has always had a knack for attracting a high-earning clientele. High-net-worth individuals and couples are less likely to alter their spending habits or fail to pay their bills during minor economic downturns. In other words, successfully attracting the top decile of earners can help AmEx better navigate inevitable downturns in the U.S. and global economies.
10 stocks we like better than Chevron
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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 Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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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Apple: $842,315,551 Tech-stock Apple (NASDAQ: AAPL) has been dubbed by the Oracle of Omaha as one of Berkshire Hathaway's "four giants." The reason the Oracle of Omaha and his investing lieutenants (Todd Combs and Ted Weschler) have piled into Chevron since late 2020 is likely the belief that energy commodity prices will remain high for the foreseeable future. Russia's invasion of Ukraine, coupled with more than three years of reduced capital investment caused by pandemic-related demand uncertainty, has created crude oil and natural gas supply-chain issues.
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Apple: $842,315,551 Tech-stock Apple (NASDAQ: AAPL) has been dubbed by the Oracle of Omaha as one of Berkshire Hathaway's "four giants." Chevron: $1,010,816,777 in annual dividend income Practically a sixth of the dividend income Warren Buffett's company is set to collect this year will come from energy stock Chevron (NYSE: CVX), which has increased its base annual payout for 36 consecutive years. Occidental Petroleum: $952,429,702 (including preferred stock dividends) Staying within the energy sector, oil stock Occidental Petroleum (NYSE: OXY) is Berkshire Hathaway's second-biggest dividend payer.
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Apple: $842,315,551 Tech-stock Apple (NASDAQ: AAPL) has been dubbed by the Oracle of Omaha as one of Berkshire Hathaway's "four giants." Chevron: $1,010,816,777 in annual dividend income Practically a sixth of the dividend income Warren Buffett's company is set to collect this year will come from energy stock Chevron (NYSE: CVX), which has increased its base annual payout for 36 consecutive years. Occidental Petroleum: $952,429,702 (including preferred stock dividends) Staying within the energy sector, oil stock Occidental Petroleum (NYSE: OXY) is Berkshire Hathaway's second-biggest dividend payer.
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Apple: $842,315,551 Tech-stock Apple (NASDAQ: AAPL) has been dubbed by the Oracle of Omaha as one of Berkshire Hathaway's "four giants." Apple is, by far, Berkshire Hathaway's largest holding by market value, and it's on course to dole out more than $842 million in dividend income to Buffett's company this year. Berkshire Hathaway is expected to collect more than $521 million from Kraft Heinz in 2023.
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16563.0
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2023-03-31 00:00:00 UTC
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EXCLUSIVE-Tesla's Musk plans China visit, seeks meeting with premier - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-teslas-musk-plans-china-visit-seeks-meeting-with-premier-sources
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nan
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nan
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Adds details, background
SHANGHAI/HONG KONG, March 31 (Reuters) - Tesla TSLA.O Chief Executive Elon Musk is making plans to visit China as early as April and is seeking a meeting with China's Premier Li Qiang, two people with knowledge of planning for the trip told Reuters.
The exact timing of the visit is subject to Li Qiang's availability, one of the sources said.
Tesla and China's State Council Information Office did not immediately reply to requests for comment on Friday.
China is Tesla's second-largest market after the United States and its Shanghai plant is the electric carmaker's largest production hub.
A visit by Musk would mark his first visit to China since the COVID-19 pandemic and since Xi Jinping secured a third term as China's president. Before Li became premier in March, he served as Shanghai's party secretary where he oversaw the construction and opening of the Tesla factory.
Musk last visited China in early 2020, when he set the internet abuzz by dancing on stage during an event at the Shanghai factory. But he has continued to deliver virtual speeches at forums such as China's World Internet Conference.
Li and Musk have met before, at the 2019 opening of the Shanghai plant. In 2020, they participated in online meetings where Musk thanked the then-Shanghai party secretary for supporting the plant's operations during the pandemic's outbreak, according to local media reports.
Musk's planned visit also comes as China is trying to woo more foreign investment to help shore up an economy battered by three years of COVID curbs.
Li has been at the forefront of that effort, speaking over the past week at business events attended by the likes of Apple Inc's AAPL.O Tim Cook and Pfizer's PFE.N Albert Bourla.
(Reporting by Zhang Yan in Shanghai and Julie Zhu in Hong Kong; Writing by Kevin Krolicki and Brenda Goh; Editing by Tom Hogue and Mark Potter)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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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Li has been at the forefront of that effort, speaking over the past week at business events attended by the likes of Apple Inc's AAPL.O Tim Cook and Pfizer's PFE.N Albert Bourla. In 2020, they participated in online meetings where Musk thanked the then-Shanghai party secretary for supporting the plant's operations during the pandemic's outbreak, according to local media reports. Musk's planned visit also comes as China is trying to woo more foreign investment to help shore up an economy battered by three years of COVID curbs.
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Li has been at the forefront of that effort, speaking over the past week at business events attended by the likes of Apple Inc's AAPL.O Tim Cook and Pfizer's PFE.N Albert Bourla. Adds details, background SHANGHAI/HONG KONG, March 31 (Reuters) - Tesla TSLA.O Chief Executive Elon Musk is making plans to visit China as early as April and is seeking a meeting with China's Premier Li Qiang, two people with knowledge of planning for the trip told Reuters. A visit by Musk would mark his first visit to China since the COVID-19 pandemic and since Xi Jinping secured a third term as China's president.
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Li has been at the forefront of that effort, speaking over the past week at business events attended by the likes of Apple Inc's AAPL.O Tim Cook and Pfizer's PFE.N Albert Bourla. Adds details, background SHANGHAI/HONG KONG, March 31 (Reuters) - Tesla TSLA.O Chief Executive Elon Musk is making plans to visit China as early as April and is seeking a meeting with China's Premier Li Qiang, two people with knowledge of planning for the trip told Reuters. A visit by Musk would mark his first visit to China since the COVID-19 pandemic and since Xi Jinping secured a third term as China's president.
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Li has been at the forefront of that effort, speaking over the past week at business events attended by the likes of Apple Inc's AAPL.O Tim Cook and Pfizer's PFE.N Albert Bourla. Adds details, background SHANGHAI/HONG KONG, March 31 (Reuters) - Tesla TSLA.O Chief Executive Elon Musk is making plans to visit China as early as April and is seeking a meeting with China's Premier Li Qiang, two people with knowledge of planning for the trip told Reuters. China is Tesla's second-largest market after the United States and its Shanghai plant is the electric carmaker's largest production hub.
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16564.0
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2023-03-31 00:00:00 UTC
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Stock Market News for Mar 31, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-31-2023
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nan
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nan
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U.S. stocks closed higher on Thursday, with tech stocks extending their recent strong run as fears of a liquidity crisis spilling over in the banking sector eased, giving a boost to investors’ confidence. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 141.43 points to end at 32,859.03 points.
The S&P 500 climbed 0.6% or 23.02 points to finish at 4,050.83 points. Tech and real estate stocks were the biggest gainers for the second straight day
The Technology Select Sector SPDR (XLK) jumped 1.2%, while the Real Estate Select Sector SPDR (XLRE) gained 1.3%. The Consumer Discretionary Sector SPDR (XLY) gained 0.9%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.7% or 87.24 points to close at 12,013.47 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.52% to 19.02. Advancers outnumbered decliners on the NYSE by a 2.70-to-1 ratio. On Nasdaq, a 1.18-to-1 ratio favored advancing issues. A total of 10.36 billion shares were traded on Thursday, lower than the last 20-session average of 12.68 billion.
Fears of Banking Crisis Fade
Wall Street has been mostly trading higher this week. The strong run led by tech stocks in the previous trading session continued on Thursday also on waning banking-sectors fears and impressive economic data.
Investors are a lot more confident now. Tech stocks continued their recent strong run through Thursday, which helped the Nasdaq close 17.6% up from its bear-market low attained on Dec 28, 2022. The index now needs to hit 12,255.95 points to enter a new bull market.
Big tech companies like Amazon.com, Inc. (AMZN) and Apple, Inc. (AAPL) jumped on Thursday. Shares of Amazon and Apple rose 1.8% and 1%, respectively. Chip stocks also scored big. Shares of NVIDIA Corporation (NVDA) increased 1.5%. NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, cyclical sectors like financials, industrials and materials, which took a bad hit in recent weeks bounced back and drove the rally on Thursday.
Investors are now waiting for the key Personal Consumption Expenditure (PCI) reading that is due on Friday. This will help them assess how much more the Fed plans to hike rate and for how long in its fight to bring down inflation.
Economic Data
The Bureau of Economic Analysis said that revised data showed the U.S. GDP grew at an annualized rate of 2.6% in the fourth quarter of 2022, which was slightly lower than 2.7% seen in the earlier estimate.
The Labor Department reported that jobless claims totaled 198,000 for the week ending Mar 25, increasing 7,000 from the previous week’s unrevised level of 191,000. The four-week moving average was 198,250, an increase of 2,000 from the previous week’s unrevised average of 196,250.
Continuing claims came in at 1,689,000, an increase of 4,000 from the previous week’s revised level of 1,685,000. The 4-week moving average was 1,691,750 an increase of 10,000 from the previous week's revised average of 1,681,750.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big tech companies like Amazon.com, Inc. (AMZN) and Apple, Inc. (AAPL) jumped on Thursday. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The strong run led by tech stocks in the previous trading session continued on Thursday also on waning banking-sectors fears and impressive economic data.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Big tech companies like Amazon.com, Inc. (AMZN) and Apple, Inc. (AAPL) jumped on Thursday. U.S. stocks closed higher on Thursday, with tech stocks extending their recent strong run as fears of a liquidity crisis spilling over in the banking sector eased, giving a boost to investors’ confidence.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Big tech companies like Amazon.com, Inc. (AMZN) and Apple, Inc. (AAPL) jumped on Thursday. U.S. stocks closed higher on Thursday, with tech stocks extending their recent strong run as fears of a liquidity crisis spilling over in the banking sector eased, giving a boost to investors’ confidence.
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Big tech companies like Amazon.com, Inc. (AMZN) and Apple, Inc. (AAPL) jumped on Thursday. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The strong run led by tech stocks in the previous trading session continued on Thursday also on waning banking-sectors fears and impressive economic data.
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16565.0
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2023-03-30 00:00:00 UTC
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EXPLAINER-How a massive options trade by a JP Morgan fund can move markets
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AAPL
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https://www.nasdaq.com/articles/explainer-how-a-massive-options-trade-by-a-jp-morgan-fund-can-move-markets-1
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nan
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nan
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By Saqib Iqbal Ahmed
March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks.
Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
WHAT IS THE JP MORGAN HEDGED EQUITY FUND?
The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter. The fund, which had about $14.71 billion in assets as of March 29, aims to let investors benefit from equity market gains while limiting their exposure to declines.
For the year, the fund was up 5.71% through March 29, compared with a 5.35% rise for the S&P 500 Total return Index .SPXTR.
The fund's assets ballooned in recent years, as investors sought protection from the sort of wild swings that rocked markets in the wake of the COVID-19 outbreak in March 2020.
Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O.
HOW DOES THE FUND USE OPTIONS?
The fund uses an options strategy that seeks to protect investors if the S&P 500 falls between 5% and 20%, while allowing them to take advantage of any market gains in the average range of 3.5-5.5%.
On Dec. 30, the refresh of the fund's options positions involved about 125,000 S&P 500 options contracts in all, including S&P 500 puts at strike prices $3,060 and $3,600 and calls at $4,065, all for the March 31 expiry.
HOW CAN THIS AFFECT THE BROADER MARKET?
Options dealers - typically big financial institutions that facilitate trading but seek to remain market-neutral - take the other side of the fund's options trades.
To minimize their own risk, they typically buy or sell stock futures, depending on the direction of the market's move. Such trading related to dealer hedging has the potential to influence the broader market, especially if done in size, as is the case for the JPM trade.
While the trade is well known and anticipated by most market participants, it can exacerbatedaily stock marketmoves, especially during times of poor market liquidity, analysts say.
Massive S&P options trade may have roiled U.S. stocks on Thursday
(Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew Lewis)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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16566.0
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2023-03-30 00:00:00 UTC
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3 Payment Tech Stocks Wall Street is Bullish On
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AAPL
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https://www.nasdaq.com/articles/3-payment-tech-stocks-wall-street-is-bullish-on
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nan
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nan
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Payment tech stocks have been doing a relatively good job of holding up recently. Undoubtedly, a recession hasn't yet begun, but many headwinds facing consumer spending may have already been priced in.
Looking ahead, it'll all be about how the actual earnings results stack up against the now modest estimates.
Currently, the analyst community seems bullish on the three payment-related tech stocks outlined in this piece -- V, MA, and AAPL. Therefore, let's use TipRanks' Comparison Tool and analyze them.
Visa (NYSE:V)
Visa is a behemoth of a payments firm that has been rangebound in recent years. At $220 and change per share, Visa is only marginally higher than its pre-pandemic peak. Still, even with a recession considered, the company seems well-equipped to continue benefiting from several tailwinds that could help offset the macro headwinds on everyone's mind. Therefore, I remain bullish.
There's no question that payment volumes could fade as we all begin to feel the pain that recessions bring. Still, the recovery in international travel, which helped power strong results, may have legs as we move on from the COVID-19 pandemic to more "normal" conditions.
Apart from the ongoing travel recovery, Visa also stands to benefit from strong secular tailwinds. The shift to digital payments could help power many years' worth of growth. In 2014, Visa highlighted the $25 trillion (yes, trillion) global spending market that payments firms seek to digitize. The market opportunity is likely even bigger now.
In the meantime, headwinds from a recession would offset the long-lasting tailwinds. After a recession, though, Visa will be in a fantastic spot. Still, don't expect Visa to sit around waiting for the bad times to end. The company is investing across all fronts to maintain the width of its moat. The value-added services segment, in particular, is a corner where Visa can flex its muscles as it seeks to grow and diversify.
At writing, Visa stock trades at 31.9 times trailing earnings, well below its five-year historical average of 35.8 times. The historical discount, I believe, overplays recession headwinds and downplays longer-term secular tailwinds and the firm's tech capabilities.
What is the Price Target for V Stock?
Wall Street loves Visa, with a Strong Buy rating composed of 19 Buys, one Hold, and one Sell rating. The average V stock price target of $259.85 implies 16.9% upside potential.
Mastercard (NYSE:MA)
Like Visa, Mastercard has a lot to gain as it does its best to digitize the massive global payments market. At writing, Mastercard stock is pricier than Visa at 35.2 times trailing earnings. However, despite the premium multiple, Wall Street expects more gains for the year ahead (17.8% versus Visa's 16.9%). Indeed, Mastercard is more of a fintech-flavored credit card firm with digital know-how and the means to catch up to the likes of Visa, the market leader. I am bullish.
Undoubtedly, Visa is also innovating on the payment tech front. However, I'm more impressed by Mastercard and its tech capabilities. Just over a week ago, Mastercard acquired Sweden-based Baffin Bay Networks, a cloud cybersecurity firm. The Swedish cyber firm is behind AI-based "Cyber Shield."
AI is at a pivotal moment. The Baffin Ban deal gives Mastercard a magnificent cybersecurity offering that should excite investors. As Mastercard amps up its cyber defenses, I find it tough to pass up on the stock even in the face of a rough recession.
What is the Price Target for MA Stock?
Wall Street loves Mastercard, with a Strong Buy composed of 21 Buys and two Holds. The average MA stock price target of $423.18 implies 17.8% gains.
Apple (NASDAQ:AAPL)
The iPhone maker made headlines on March 28 as it launched its Apple Pay Later service in the U.S. Indeed, Apple has been in the fintech field for quite a while with Apple Pay, Apple Wallet, and the gorgeous titanium Apple Card. The latest offering opens doors in the BNPL (buy now, pay later) space and could help the tech titan take its disruption in payment tech to the next level. I'm bullish on Apple stock.
Undoubtedly, Apple's a tad late to the American BNPL game. The Apple Pay Later service landed later than expected, and with a recession closing in, it's time that consumers trim away at their debt rather than raise any more of it. In any case, I see an opportunity for Apple to take significant market share away from incumbent BNPL providers.
At 27.3 times trailing earnings, Apple stock is too cheap to ignore. Its BNPL product should have investors excited over the share-taking opportunities. Further, there's always the not-so-secret mixed-reality headset to look forward to this year. All catalysts considered, Apple stock looks worthy of a higher premium on its stock.
What is the Price Target for AAPL Stock?
Wall Street views Apple favorably, giving it a Moderate Buy consensus rating based on 24 Buys, six Holds, and one Sell. The average AAPL stock price target of $170.18 implies 4.8% upside potential.
Conclusion
Visa, Mastercard, and Apple are excellent payment tech stocks to consider. Of the three names, analysts expect the most upside from Mastercard.
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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Currently, the analyst community seems bullish on the three payment-related tech stocks outlined in this piece -- V, MA, and AAPL. Apple (NASDAQ:AAPL) The iPhone maker made headlines on March 28 as it launched its Apple Pay Later service in the U.S. What is the Price Target for AAPL Stock?
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The average AAPL stock price target of $170.18 implies 4.8% upside potential. Currently, the analyst community seems bullish on the three payment-related tech stocks outlined in this piece -- V, MA, and AAPL. Apple (NASDAQ:AAPL) The iPhone maker made headlines on March 28 as it launched its Apple Pay Later service in the U.S.
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Currently, the analyst community seems bullish on the three payment-related tech stocks outlined in this piece -- V, MA, and AAPL. Apple (NASDAQ:AAPL) The iPhone maker made headlines on March 28 as it launched its Apple Pay Later service in the U.S. What is the Price Target for AAPL Stock?
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Currently, the analyst community seems bullish on the three payment-related tech stocks outlined in this piece -- V, MA, and AAPL. Apple (NASDAQ:AAPL) The iPhone maker made headlines on March 28 as it launched its Apple Pay Later service in the U.S. What is the Price Target for AAPL Stock?
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16567.0
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2023-03-30 00:00:00 UTC
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EXPLAINER-How a massive options trade by a JP Morgan fund can move markets
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AAPL
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https://www.nasdaq.com/articles/explainer-how-a-massive-options-trade-by-a-jp-morgan-fund-can-move-markets-2
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nan
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nan
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By Saqib Iqbal Ahmed
March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks.
Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
WHAT IS THE JP MORGAN HEDGED EQUITY FUND?
The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter. The fund, which had about $14.71 billion in assets as of March 29, aims to let investors benefit from equity market gains while limiting their exposure to declines.
For the year, the fund was up 5.71% through March 29, compared with a 5.35% rise for the S&P 500 Total return Index .SPXTR.
The fund's assets ballooned in recent years, as investors sought protection from the sort of wild swings that rocked markets in the wake of the COVID-19 outbreak in March 2020.
Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O.
HOW DOES THE FUND USE OPTIONS?
The fund uses an options strategy that seeks to protect investors if the S&P 500 falls between 5% and 20%, while allowing them to take advantage of any market gains in the average range of 3.5-5.5%.
On Dec. 30, the refresh of the fund's options positions involved about 125,000 S&P 500 options contracts in all, including S&P 500 puts at strike prices $3,060 and $3,600 and calls at $4,065, all for the March 31 expiry.
HOW CAN THIS AFFECT THE BROADER MARKET?
Options dealers - typically big financial institutions that facilitate trading but seek to remain market-neutral - take the other side of the fund's options trades.
To minimize their own risk, they typically buy or sell stock futures, depending on the direction of the market's move. Such trading related to dealer hedging has the potential to influence the broader market, especially if done in size, as is the case for the JPM trade.
While the trade is well known and anticipated by most market participants, it can exacerbatedaily stock marketmoves, especially during times of poor market liquidity, analysts say.
Massive S&P options trade may have roiled U.S. stocks on Thursday
(Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew Lewis)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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.
|
Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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16568.0
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2023-03-30 00:00:00 UTC
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US STOCKS-Wall St rises as bank fears fade, focus on inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-bank-fears-fade-focus-on-inflation-data
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive real estate and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path.
Investors await the February reading of personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday after January figures showed a sharp acceleration in consumer spending.
Data on Thursday showed jobless claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter GDP growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.
"In some ways, the Fed simply wanted to see a cyclical slowdown, and we are seeing signs of that. It helps to confirm that the Fed is near the end of tightening," said David Russell, vice president of Market Intelligence at TradeStation.
The banking turmoil, which started earlier this month with the collapse of two regional U.S. lenders, had sparked concerns about a broader financial crisis and led to a dramatic shift in monetary policy expectations from the Fed.
Traders' bets are now almost equally split between a pause and a 25-basis-point rate hike by the Fed in May, according to CME Group's Fedwatch tool.
Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.8% to 1.2%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by about 1% each.
Real-estate stocks .SPLRCR led sectoral gains, up 1.3%.
Both the S&P 500 .SPX and the tech-heavy Nasdaq .IXIC are headed for quarterly gains, with the latter on course for its best quarter since the end of 2020.
"The first quarter is dominated really by the growth sectors. Most of the quarter has been a question of thinking the Fed (is) done and people coming back to those names," said Russell.
Investors will also parse comments from Boston Fed President Susan Collins, Minneapolis Fed President Neel Kashkari and Richmond President Thomas Barkin later in the day for clues on the central bank's monetary policy plans following the banking crisis.
At 11:56 a.m. ET, the Dow Jones Industrial Average .DJI was up 34.76 points, or 0.11%, at 32,752.36, the S&P 500 .SPX was up 18.15 points, or 0.45%, at 4,045.96, and the Nasdaq Composite .IXIC was up 85.47 points, or 0.72%, at 12,011.70.
Among other stocks, Faraday Future Intelligent Electric Inc FFIE.O rose 3.7% after the company said it has started production of its first luxury electric car after a months-long delay.
Kohl's Corp KSS.N climbed 4.9% after its chief executive officer bought shares in the company.
U.S.-listed shares of Alibaba Group Holding BABA.N advanced 4.3% on areport that its logistics arm had started preparations with banks for its Hong Kong initial public offering, while those of JD.Com JD.O jumped 8.8% on plans to spin off its real estate infrastructure arm.
Advancing issues outnumbered decliners by a 2.82-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 54 new highs and 77 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Additional reporting by Sruthi Shankar; Editing by Anil D'Silva and Vinay Dwivedi)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.8% to 1.2%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by about 1% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive real estate and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Investors await the February reading of personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday after January figures showed a sharp acceleration in consumer spending.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.8% to 1.2%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by about 1% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive real estate and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Real-estate stocks .SPLRCR led sectoral gains, up 1.3%.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.8% to 1.2%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by about 1% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive real estate and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Data on Thursday showed jobless claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter GDP growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.8% to 1.2%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by about 1% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive real estate and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Real-estate stocks .SPLRCR led sectoral gains, up 1.3%.
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16569.0
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2023-03-30 00:00:00 UTC
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Mini-Rally in Place Ahead of Q1 End, PCE Numbers
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AAPL
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https://www.nasdaq.com/articles/mini-rally-in-place-ahead-of-q1-end-pce-numbers
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nan
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nan
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Over the past five trading days — basically since market participants stopped worrying that a massive banking industry collapse was imminent — we’ve seen admirable strength: Up four of the past five sessions on the Dow and the S&P 500, three of five for the Nasdaq and Russell 2000. The S&P and Russell were the leaders for the past week of trading, +3.05% and +3.90%, respectively. The Dow and Nasdaq are up +2.84% and +2.28%, respectively.
In the past month of trading, only the Russell is in the red — and by a fairly deep -6.85%, considering the Dow is +0.60%, the Nasdaq +5.57%, the S&P +2.52% since the last day of February. Should things hold through tomorrow, it will be the second up-month in the first three of the year for all but the small-cap index. What’s exceptional about this is that it comes during the same month the collapse of SVB was reported. That did take the indices down fairly steeply three weeks ago, but all but the Russell have buoyed back impressively.
For today, the Dow gained another +142 points, +0.44%. The S&P gained +0.57% while the Nasdaq won the day again, +0.73%. Once more, the Russell lagged the field for the session, -0.18%. Today fairly nicely represents what we’ve seen over the past week of trading: large-cap tech names like Apple AAPL and Microsoft MSFT are the new safe haven in equities, with their still-strong margins and product offerings looking to weather any storm. Small-caps, on the other hand, may be more prone to hardship during a possible recession and/or further bank contagion.
Tomorrow morning brings us the most important economic metric of the week, Personal Consumption Expenditures (PCE) — that report Fed Chair Powell repeatedly cites when giving his press conference following monetary policy meetings with the Federal Open Market Committee (FOMC). In fact, including tomorrow we’ll get two PCE reports before the next FOMC meeting, which is scheduled for May 1st-2nd. Meaningful drops, especially year over year and in core prints (subtracting volatile food & energy costs), might help spur along a new dot-plot scenario for the Fed as early as the May meeting.
Thus, when we check PCE results Friday morning, the first thing we’ll look for on the year-over-year results is that the numbers go down (or stay flat), rather than tick up, as they did a month ago. Year-over-year headline reached +5.4% for January and +4.7% on core. These are off cycle highs +6.3% and +5.2%, respectively, in September of last year. Neither of last month’s numbers were remotely close to the Fed’s optimum +2% inflation, however, so regardless what becomes of tomorrow’s report, we’ll still have a long way to go.
Questions or comments about this article and/or its author? Click here>>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today fairly nicely represents what we’ve seen over the past week of trading: large-cap tech names like Apple AAPL and Microsoft MSFT are the new safe haven in equities, with their still-strong margins and product offerings looking to weather any storm. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Tomorrow morning brings us the most important economic metric of the week, Personal Consumption Expenditures (PCE) — that report Fed Chair Powell repeatedly cites when giving his press conference following monetary policy meetings with the Federal Open Market Committee (FOMC).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Today fairly nicely represents what we’ve seen over the past week of trading: large-cap tech names like Apple AAPL and Microsoft MSFT are the new safe haven in equities, with their still-strong margins and product offerings looking to weather any storm. See Stocks Now Want the latest recommendations from Zacks Investment Research?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Today fairly nicely represents what we’ve seen over the past week of trading: large-cap tech names like Apple AAPL and Microsoft MSFT are the new safe haven in equities, with their still-strong margins and product offerings looking to weather any storm. Over the past five trading days — basically since market participants stopped worrying that a massive banking industry collapse was imminent — we’ve seen admirable strength: Up four of the past five sessions on the Dow and the S&P 500, three of five for the Nasdaq and Russell 2000.
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Today fairly nicely represents what we’ve seen over the past week of trading: large-cap tech names like Apple AAPL and Microsoft MSFT are the new safe haven in equities, with their still-strong margins and product offerings looking to weather any storm. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. In the past month of trading, only the Russell is in the red — and by a fairly deep -6.85%, considering the Dow is +0.60%, the Nasdaq +5.57%, the S&P +2.52% since the last day of February.
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16570.0
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2023-03-30 00:00:00 UTC
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Technology Sector Update for 03/30/2023: AAPL, VHC, BABA, JD, CXM
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-30-2023%3A-aapl-vhc-baba-jd-cxm
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nan
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nan
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Tech stocks were higher late Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor index up 1.6%.
In company news, Apple (AAPL) on Thursday won an appeal to a US court for an affirmation of the US patent office's earlier decision that the company did not infringe on patents belonging to VirnetX (VHC). Apple shares were up 0.8% and VirnetX shares were down over 14%.
Alibaba (BABA) shares were advancing 3.7% after Reuters reported Thursday, citing group Chief Executive Daniel Zhang, that it is considering selling non-core assets and the control of some of its business units once they go public after the recently announced restructuring.
JD.com (JD) stock was up over 8% after the Chinese e-commerce company disclosed plans in a regulatory filing to list two of its subsidiaries on the Hong Kong Stock Exchange through separate initial public offerings of their stock.
Sprinklr (CXM) was rising more than 16% after reporting late Wednesday non-GAAP EPS of $0.06 in Q4, swinging from a $0.05 loss per share a year earlier. Analysts polled by Capital IQ expected earnings of $0.02 per share.
The views and 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) on Thursday won an appeal to a US court for an affirmation of the US patent office's earlier decision that the company did not infringe on patents belonging to VirnetX (VHC). Tech stocks were higher late Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor index up 1.6%. Alibaba (BABA) shares were advancing 3.7% after Reuters reported Thursday, citing group Chief Executive Daniel Zhang, that it is considering selling non-core assets and the control of some of its business units once they go public after the recently announced restructuring.
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In company news, Apple (AAPL) on Thursday won an appeal to a US court for an affirmation of the US patent office's earlier decision that the company did not infringe on patents belonging to VirnetX (VHC). Tech stocks were higher late Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor index up 1.6%. Apple shares were up 0.8% and VirnetX shares were down over 14%.
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In company news, Apple (AAPL) on Thursday won an appeal to a US court for an affirmation of the US patent office's earlier decision that the company did not infringe on patents belonging to VirnetX (VHC). Alibaba (BABA) shares were advancing 3.7% after Reuters reported Thursday, citing group Chief Executive Daniel Zhang, that it is considering selling non-core assets and the control of some of its business units once they go public after the recently announced restructuring. JD.com (JD) stock was up over 8% after the Chinese e-commerce company disclosed plans in a regulatory filing to list two of its subsidiaries on the Hong Kong Stock Exchange through separate initial public offerings of their stock.
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In company news, Apple (AAPL) on Thursday won an appeal to a US court for an affirmation of the US patent office's earlier decision that the company did not infringe on patents belonging to VirnetX (VHC). Tech stocks were higher late Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor index up 1.6%. Apple shares were up 0.8% and VirnetX shares were down over 14%.
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16571.0
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2023-03-30 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $1,579.50K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%241579.50k-0
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nan
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nan
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On March 30, 2023 at 14:51:11 ET an unusually large $1,579.50K block of Put contracts in Apple (AAPL) was bought, with a strike price of $150.00 / share, expiring in 169 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.40 sigmas above the mean, placing it in the 99.09 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 7.37% 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 7.37% from its latest reported closing price of $160.77.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is $413,641MM, an increase of 6.74%. The projected annual non-GAAP EPS is $6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6401 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 3.03%, a decrease of 22.32%. Total shares owned by institutions increased in the last three months by 0.39% to 10,158,923K 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 March 30, 2023 at 14:51:11 ET an unusually large $1,579.50K block of Put contracts in Apple (AAPL) was bought, with a strike price of $150.00 / share, expiring in 169 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.40 sigmas above the mean, placing it in the 99.09 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 14:51:11 ET an unusually large $1,579.50K block of Put contracts in Apple (AAPL) was bought, with a strike price of $150.00 / share, expiring in 169 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.40 sigmas above the mean, placing it in the 99.09 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 14:51:11 ET an unusually large $1,579.50K block of Put contracts in Apple (AAPL) was bought, with a strike price of $150.00 / share, expiring in 169 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.40 sigmas above the mean, placing it in the 99.09 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 14:51:11 ET an unusually large $1,579.50K block of Put contracts in Apple (AAPL) was bought, with a strike price of $150.00 / share, expiring in 169 days (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.40 sigmas above the mean, placing it in the 99.09 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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16572.0
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2023-03-30 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $968.97K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%24968.97k
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nan
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nan
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On March 30, 2023 at 15:58:09 ET an unusually large $968.97K block of Call contracts in Apple (AAPL) was bought, with a strike price of $160.00 / share, expiring in 113 days (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 90.90 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 7.37% 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 7.37% from its latest reported closing price of $160.77.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is $413,641MM, an increase of 6.74%. The projected annual non-GAAP EPS is $6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6401 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 3.03%, a decrease of 22.32%. Total shares owned by institutions increased in the last three months by 0.39% to 10,158,923K 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 March 30, 2023 at 15:58:09 ET an unusually large $968.97K block of Call contracts in Apple (AAPL) was bought, with a strike price of $160.00 / share, expiring in 113 days (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 90.90 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 15:58:09 ET an unusually large $968.97K block of Call contracts in Apple (AAPL) was bought, with a strike price of $160.00 / share, expiring in 113 days (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 90.90 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 15:58:09 ET an unusually large $968.97K block of Call contracts in Apple (AAPL) was bought, with a strike price of $160.00 / share, expiring in 113 days (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 90.90 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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On March 30, 2023 at 15:58:09 ET an unusually large $968.97K block of Call contracts in Apple (AAPL) was bought, with a strike price of $160.00 / share, expiring in 113 days (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 90.90 percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.03%, a decrease of 22.32%.
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16573.0
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2023-03-30 00:00:00 UTC
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After Hours Most Active for Mar 30, 2023 : AUY, GOOGL, QQQ, EVTL, AAPL, MSFT, WFC, AMAT, ALIT, NVTS, JBGS, BK
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-30-2023-%3A-auy-googl-qqq-evtl-aapl-msft-wfc-amat-alit-nvts
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The NASDAQ 100 After Hours Indicator is down -2.3 to 12,960.84. The total After hours volume is currently 83,442,438 shares traded.
The following are the most active stocks for the after hours session:
Yamana Gold Inc. (AUY) is -0.02 at $5.87, with 5,142,698 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Alphabet Inc. (GOOGL) is -0.1197 at $100.77, with 2,809,977 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.24 at $315.92, with 2,682,922 shares traded. This represents a 24.25% increase from its 52 Week Low.
Vertical Aerospace Ltd. (EVTL) is -0.01 at $2.14, with 2,396,853 shares traded. EVTL's current last sale is 47.56% of the target price of $4.5.
Apple Inc. (AAPL) is unchanged at $162.36, with 2,252,945 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Microsoft Corporation (MSFT) is +0.0816 at $284.13, with 1,809,153 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Wells Fargo & Company (WFC) is +0.0881 at $37.47, with 1,765,205 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Applied Materials, Inc. (AMAT) is unchanged at $122.11, with 1,689,277 shares traded. As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
Alight, Inc. (ALIT) is unchanged at $8.92, with 1,675,317 shares traded. As reported by Zacks, the current mean recommendation for ALIT is in the "buy range".
Navitas Semiconductor Corporation (NVTS) is -0.02 at $6.93, with 1,593,347 shares traded. As reported by Zacks, the current mean recommendation for NVTS is in the "buy range".
JBG SMITH Properties (JBGS) is unchanged at $14.69, with 1,546,236 shares traded. JBGS's current last sale is 65.29% of the target price of $22.5.
The Bank Of New York Mellon Corporation (BK) is -0.05 at $44.85, with 1,053,823 shares traded. BK's current last sale is 77.33% of the target price of $58.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is unchanged at $162.36, with 2,252,945 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is unchanged at $162.36, with 2,252,945 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
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Apple Inc. (AAPL) is unchanged at $162.36, with 2,252,945 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,442,438 shares traded.
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Apple Inc. (AAPL) is unchanged at $162.36, with 2,252,945 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 -2.3 to 12,960.84.
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16574.0
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2023-03-30 00:00:00 UTC
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Apple wins U.S. appeal over patents in $502 mln VirnetX verdict
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AAPL
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https://www.nasdaq.com/articles/apple-wins-u.s.-appeal-over-patents-in-%24502-mln-virnetx-verdict-0
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nan
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nan
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By Blake Brittain
March 30 (Reuters) - Apple Inc AAPL.O persuaded a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology.
The U.S. Court of Appeals for the Federal Circuit affirmed a decision from the U.S. Patent and Trademark Office that invalidated the two patents VirnetX had accused Apple of infringing.
VirnetX Chief Executive Kendall Larsen said in a statement that the company was disappointed with the decision and considering seeking a rehearing or appealing to the U.S. Supreme Court.
VirnetX stock fell more than 14% by Thursday afternoon following the ruling. It had been up 55% in the morning before the decision was published, after the company announced it would pay a special cash dividend to shareholders and anticipated a future potential payout from the Apple case.
An Apple representative did not immediately respond to a request for comment.
The two companies have waged a 13-year court battle that has included several trials and appeals. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision.
Apple has separately appealed the verdict itself, but the Federal Circuit has yet to rule in that case. The court heard combined arguments in both cases in September, and both sides said upholding the decision to cancel the patents would also likely negate the jury award.
"If the court upholds the (USPTO's) decision, we have a big problem," VirnetX attorney Jeff Lamken of MoloLamken said at the September hearing. "I don't think we have an enforceable judgment."
The Federal Circuit on Thursday affirmed decisions by the USPTO's Patent Trial and Appeal Board that the patents were invalid in light of earlier publications that described the same inventions.
VirnetX separately won a $302 million verdict against Apple in an East Texas court in 2016, which was later increased to $440 million, over related allegations that the tech giant used its internet-security technology in features like FaceTime video calls.
(Reporting by Blake Brittain in Washington Editing by David Bario, David Gregorio and Jonathan Oatis)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O persuaded a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. VirnetX Chief Executive Kendall Larsen said in a statement that the company was disappointed with the decision and considering seeking a rehearing or appealing to the U.S. Supreme Court. It had been up 55% in the morning before the decision was published, after the company announced it would pay a special cash dividend to shareholders and anticipated a future potential payout from the Apple case.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O persuaded a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision. The Federal Circuit on Thursday affirmed decisions by the USPTO's Patent Trial and Appeal Board that the patents were invalid in light of earlier publications that described the same inventions.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O persuaded a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. The U.S. Court of Appeals for the Federal Circuit affirmed a decision from the U.S. Patent and Trademark Office that invalidated the two patents VirnetX had accused Apple of infringing. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O persuaded a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision. Apple has separately appealed the verdict itself, but the Federal Circuit has yet to rule in that case.
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16575.0
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2023-03-30 00:00:00 UTC
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ESGU, VPC: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/esgu-vpc%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 14,750,000 units were destroyed, or a 8.5% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 1%, and Microsoft is up by about 1.1%.
And on a percentage change basis, the ETF with the biggest outflow was the VPC ETF, which lost 500,000 of its units, representing a 34.5% decline in outstanding units compared to the week prior.
VIDEO: ESGU, VPC: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of ESGU, in morning trading today Apple is up about 1%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the VPC ETF, which lost 500,000 of its units, representing a 34.5% decline in outstanding units compared to the week prior. VIDEO: ESGU, VPC: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 14,750,000 units were destroyed, or a 8.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the VPC ETF, which lost 500,000 of its units, representing a 34.5% decline in outstanding units compared to the week prior. VIDEO: ESGU, VPC: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 14,750,000 units were destroyed, or a 8.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the VPC ETF, which lost 500,000 of its units, representing a 34.5% decline in outstanding units compared to the week prior. VIDEO: ESGU, VPC: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 14,750,000 units were destroyed, or a 8.5% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 1%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the VPC ETF, which lost 500,000 of its units, representing a 34.5% decline in outstanding units compared to the week prior.
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16576.0
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2023-03-30 00:00:00 UTC
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Friday Predictions: 3 Hot Stocks for Tomorrow
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AAPL
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https://www.nasdaq.com/articles/friday-predictions%3A-3-hot-stocks-for-tomorrow-1
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks helped power the market higher on Wednesday and going into Friday will mark a couple of events. First, it will mark the end of March. Second, it will mark the end of the quarter. The month-end, quarter-end combo has investors looking for the hot stocks for tomorrow.
Just a few days ago, tech was pulling back. Now it’s trying to hold up as the Nasdaq has been the best-performing major U.S. index this quarter. On the flip side, the Dow has been the worst-performing index this quarter.
Interestingly, these observations are flipped when we look at the last 12 months. In that span, the Dow is the best-performing major U.S. stock index, while the Nasdaq is the worst.
Let’s have a look at a few hot stocks for tomorrow — Friday.
Hot Stocks for Tomorrow: BlackBerry (BB)
Click to Enlarge
Source: Chart courtesy of TrendSpider
BlackBerry (NYSE:BB) is set to report earnings on Thursday after the close, making it a prime candidate for a stock to watch on Friday. Of course, it helps that BlackBerry has become a meme stock for some traders, while others look to trigger massive swings in the low-priced stock.
Shares are actually up about 23% this year, but that stat is obviously aided by the fact that BlackBerry stock ended the year within 10 cents of its 52-week low, which occurred on Dec. 28.
The stock suffered a nasty gap-down in early March, falling 12.2% in a single session. It took until today (Thursday, March 31) to fill that gap. Now, investors wonder if earnings will be enough to drive BlackBerry stock higher or if it will unravel all the recent gains.
The Chart: Notice how BlackBerry stock is pausing at the gap-fill level and the 50-day moving average. If it continues over $4, traders will instinctively go for $4.25-plus and ultimately, want to see $4.50 to $4.70.
On the downside, let’s see if $3.70 can hold as support. Below that puts $3.50 in play, while a further breakdown could put the December lows on the table at $3.17.
Hot Stocks for Tomorrow: Microsoft (MSFT)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. With a market capitalization of $2.57 trillion, it has a massive impact on the stock market. Like Apple, Microsoft (NASDAQ:MSFT) also has a big impact on U.S. stocks thanks to its $2.1 trillion market cap.
For Microsoft specifically, it has a 5.65% weighting in the Dow, a 6.2% weighting in the S&P 500 and a 12.3% impact on the Nasdaq 100.
Given that the Nasdaq has been the best-performing index so far this year, how Apple and Microsoft trade will have a big impact on how the index performs. Combined, Microsoft and Apple account for almost one-quarter of the Nasdaq 100 and the Invesco QQQ Trust Series (NASDAQ:QQQ).
The Chart: Microsoft is hitting multi-month highs on today’s rally, opening the door to the gap-fill level at $285.56. Above that opens the door to $294 to $297.50. On the downside, a break of $272 could open the door down to the 21-day moving average and the fourth-quarter high near $264.
Hot Stocks: Aehr Test Systems (AEHR)
Click to Enlarge
Source: Chart courtesy of TrendSpider
This stock is kind of fun, as Aehr Test Systems (NASDAQ:AEHR) is not at the top of everyone’s radar. However, AEHR stock seems to have gotten quite popular this year. That’s likely as the share price has absolutely exploded.
Even though shares are down about 2% on Thursday, the stock is up almost 85% so far this year. Further, it’s up more than 230% over the last 12 months. At a time when the bear market has delivered incredible pain, Aehr Test Systems stock has delivered some nice gains.
Now, the company is preparing to report earnings after the close on Thursday. Known for its volatile and unpredictable moves, this one will be a top stock to watch on Friday morning. Now sporting a market cap of roughly $1 billion, it’s also gaining more recognition among investors.
The Chart: Notice how volatile this name has been but also how technically it has traded. It recently broke out of a bull-flag pattern and is trying to hold up over $37. On the upside, a move over $40 could pave the way for $46-plus. However, on the downside, bulls want to see AEHR stock hold the $33.50 to $40 area as support.
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 Friday Predictions: 3 Hot Stocks for Tomorrow 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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Click to Enlarge Source: Chart courtesy of TrendSpider Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. Click to Enlarge Source: Chart courtesy of TrendSpider BlackBerry (NYSE:BB) is set to report earnings on Thursday after the close, making it a prime candidate for a stock to watch on Friday. The Chart: Microsoft is hitting multi-month highs on today’s rally, opening the door to the gap-fill level at $285.56.
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Click to Enlarge Source: Chart courtesy of TrendSpider Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech stocks helped power the market higher on Wednesday and going into Friday will mark a couple of events. Click to Enlarge Source: Chart courtesy of TrendSpider BlackBerry (NYSE:BB) is set to report earnings on Thursday after the close, making it a prime candidate for a stock to watch on Friday.
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Click to Enlarge Source: Chart courtesy of TrendSpider Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech stocks helped power the market higher on Wednesday and going into Friday will mark a couple of events. Of course, it helps that BlackBerry has become a meme stock for some traders, while others look to trigger massive swings in the low-priced stock.
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Click to Enlarge Source: Chart courtesy of TrendSpider Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. Like Apple, Microsoft (NASDAQ:MSFT) also has a big impact on U.S. stocks thanks to its $2.1 trillion market cap. Given that the Nasdaq has been the best-performing index so far this year, how Apple and Microsoft trade will have a big impact on how the index performs.
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16577.0
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2023-03-30 00:00:00 UTC
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Nasdaq-100 Enters Bull Market: ETFs to Ride on
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-enters-bull-market%3A-etfs-to-ride-on
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nan
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After being badly beaten down in February, the Nasdaq-100 Index took flight in recent weeks. The flight to mega-cap cash-rich technology stocks amid the latest bank turbulence buoyed the index. The tech-heavy index surged to a new bull market and is up more than 20% from its Dec 28 low.
Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ), Invesco NASDAQ 100 ETF QQQM, First Trust NASDAQ-100 Equal Weighted Index Fund QQEW, Simplify Nasdaq 100 PLUS Convexity ETF QQC and Fidelity Nasdaq Composite Index Tracking Stock ONEQ. These funds may see massive trading volumes in the days ahead, given the bullish fundamentals.
The index is powered by big rallies in mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN. These companies saw more than $600 billion in a combined rally this month. These have strong balance sheets, durable revenue streams and robust profit margins, and are, thus, better positioned to withstand a possible economic downturn. These are also set to benefit from a steep drop in bond yields (read: Big Tech ETFs Roar: Will the Rally Continue?).
Further, the tech stocks received a boost from the weakening economic data and the risk of a recession, heightened by the recent bank crisis that may prompt the Federal Reserve to stop raising interest rates sooner than expected. The Fed raised interest rates by 25 bps in the latest FOMC meeting but signaled that an end to interest rate increases could be on the horizon. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
Invesco QQQ (QQQ)
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up 16.4% and 14.6% share, respectively.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $168.1 billion and an average daily volume of 55.8 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook (read: 5 ETFs That Gained Investors' Love Last Week).
Invesco NASDAQ 100 ETF (QQQM)
Invesco NASDAQ 100 ETF is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 102 securities in its basket, with a higher concentration on the top two firms.
Invesco NASDAQ 100 ETF accumulated $8.4 billion in its asset base. It trades in an average daily volume of 1.2 million shares. It has a Zacks ETF Rank #2.
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
Holding 101 stocks, First Trust NASDAQ-100 Equal Weighted Index Fund provides equal exposure to stocks on the Nasdaq-100 Equal Weighted Index. It has amassed $1.3 billion in its asset base, while it trades in moderate volumes of 130,000 shares a day, on average.
First Trust NASDAQ-100 Equal Weighted Index Fund charges 57 bps in annual fees and trades in an average daily volume of 130,000 shares. QQEW carries a Zacks ETF Rank #2, with a Medium risk outlook.
Simplify Nasdaq 100 PLUS Convexity ETF (QQC)
Simplify Nasdaq 100 PLUS Convexity ETF seeks to provide capital appreciation by tracking a basket of large-cap U.S. growth stocks, while aiming to boost its performance during extreme market moves up or down via a systematic options overlay. The fund’s core holding provides investors with Nasdaq 100 Index exposure (read: Quality ETFs to Buy for Market-Beating Returns Amid Turmoil).
Simplify Nasdaq 100 PLUS Convexity ETF has gathered $3.5 million in its asset base and charges 44 bps in annual fees. It trades in a paltry average daily volume of about 1,000 shares.
Fidelity Nasdaq Composite Index Tracking Stock (ONEQ)
Fidelity Nasdaq Composite Index Tracking Stock tracks the Nasdaq Composite Index, holding a broad basket of 1,030 stocks.
Fidelity Nasdaq Composite Index Tracking Stock has an AUM of $4.2 billion and an average daily volume of 311,000 shares. It charges 21 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook.
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Invesco QQQ (QQQ): ETF Research Reports
Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports
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Simplify Nasdaq 100 PLUS Convexity ETF (QQC): 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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The index is powered by big rallies in mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Simplify Nasdaq 100 PLUS Convexity ETF (QQC): ETF Research Reports To read this article on Zacks.com click here. Further, the tech stocks received a boost from the weakening economic data and the risk of a recession, heightened by the recent bank crisis that may prompt the Federal Reserve to stop raising interest rates sooner than expected.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Simplify Nasdaq 100 PLUS Convexity ETF (QQC): ETF Research Reports To read this article on Zacks.com click here. The index is powered by big rallies in mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN. Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ), Invesco NASDAQ 100 ETF QQQM, First Trust NASDAQ-100 Equal Weighted Index Fund QQEW, Simplify Nasdaq 100 PLUS Convexity ETF QQC and Fidelity Nasdaq Composite Index Tracking Stock ONEQ.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Simplify Nasdaq 100 PLUS Convexity ETF (QQC): ETF Research Reports To read this article on Zacks.com click here. The index is powered by big rallies in mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN. Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ), Invesco NASDAQ 100 ETF QQQM, First Trust NASDAQ-100 Equal Weighted Index Fund QQEW, Simplify Nasdaq 100 PLUS Convexity ETF QQC and Fidelity Nasdaq Composite Index Tracking Stock ONEQ.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Simplify Nasdaq 100 PLUS Convexity ETF (QQC): ETF Research Reports To read this article on Zacks.com click here. The index is powered by big rallies in mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN. Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ), Invesco NASDAQ 100 ETF QQQM, First Trust NASDAQ-100 Equal Weighted Index Fund QQEW, Simplify Nasdaq 100 PLUS Convexity ETF QQC and Fidelity Nasdaq Composite Index Tracking Stock ONEQ.
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16578.0
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2023-03-30 00:00:00 UTC
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Apple wins U.S. appeal over patents in $502 mln VirnetX verdict
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AAPL
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https://www.nasdaq.com/articles/apple-wins-u.s.-appeal-over-patents-in-%24502-mln-virnetx-verdict
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nan
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nan
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By Blake Brittain
March 30 (Reuters) - Apple Inc AAPL.O convinced a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology.
The U.S. Court of Appeals for the Federal Circuit affirmed a decision from the U.S. Patent and Trademark Office that invalidated the two patents VirnetX had accused Apple of infringing.
Representatives for the companies did not immediately respond to requests for comment.
The two companies have waged a 13-year court battle that has included several trials and appeals. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision.
Apple has separately appealed the verdict itself, but the Federal Circuit has yet to rule in that case. The court heard combined arguments in both cases in September, and both sides said upholding the decision to cancel the patents would also likely negate the jury award.
"If the court upholds the [USPTO's] decision, we have a big problem," VirnetX attorney Jeff Lamken of MoloLamken said at the September hearing. "I don't think we have an enforceable judgment."
The Federal Circuit on Thursday affirmed decisions by the USPTO's Patent Trial and Appeal Board that the patents were invalid in light of earlier publications that described the same inventions.
VirnetX separately won a $302 million verdict against Apple in an East Texas court in 2016, which was later increased to $440 million, over related allegations that the tech giant used its internet-security technology in features like FaceTime video calls.
(Reporting by Blake Brittain in Washington Editing by David Bario and David Gregorio)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O convinced a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision. The court heard combined arguments in both cases in September, and both sides said upholding the decision to cancel the patents would also likely negate the jury award.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O convinced a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. An East Texas jury awarded VirnetX $502 million in 2020 after deciding that Apple infringed the virtual private network (VPN) patents at issue in Thursday's decision. The Federal Circuit on Thursday affirmed decisions by the USPTO's Patent Trial and Appeal Board that the patents were invalid in light of earlier publications that described the same inventions.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O convinced a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. The U.S. Court of Appeals for the Federal Circuit affirmed a decision from the U.S. Patent and Trademark Office that invalidated the two patents VirnetX had accused Apple of infringing. The Federal Circuit on Thursday affirmed decisions by the USPTO's Patent Trial and Appeal Board that the patents were invalid in light of earlier publications that described the same inventions.
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By Blake Brittain March 30 (Reuters) - Apple Inc AAPL.O convinced a U.S. appeals court on Thursday to uphold a patent tribunal's ruling that could imperil a $502 million verdict for patent licensing company VirnetX Inc in the companies' long-running fight over privacy-software technology. Apple has separately appealed the verdict itself, but the Federal Circuit has yet to rule in that case. The court heard combined arguments in both cases in September, and both sides said upholding the decision to cancel the patents would also likely negate the jury award.
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16579.0
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2023-03-30 00:00:00 UTC
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1 Red Flag for Apple In 2023, and 1 Green Flag
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AAPL
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https://www.nasdaq.com/articles/1-red-flag-for-apple-in-2023-and-1-green-flag
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nan
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nan
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With the largest market cap in the world at $2.5 trillion and stock growth of 286% in the last five years, Apple (NASDAQ: AAPL) is an attractive investment. The company is home to a potent brand that amassed immense loyalty from consumers, who have been drawn in by quality products and their interconnectivity, which promotes ease of use.
However, there are positives and negatives for Apple's future. Recent reports have revealed dissent among executives at the company over its planned launch of a virtual/augmented reality (VR/AR) headset, signaling a potential red flag. The question is whether Apple can replicate its past success in entering new markets, which has seen it gain significant share in multiple markets.
Here is one red flag and one green flag for Apple in 2023.
Red flag: Conflict among Apple executives concerning a new product
On March 26, the New York Times reported growing internal skepticism at Apple about the potential success of its VR/AR headset due to launch in June. The device is expected to feature virtual and augmented reality features alongside an iOS-like interface, priced at around $3,000. Critics are reportedly concerned about the hefty price tag and the headset's profitability in an untested industry.
Apple executives aren't the only ones with doubts about the new headset. According to Counterpoint Research, the company is expected to ship fewer than 500,000 units in its first year. Comparatively, the Apple Watches were projected to ship about 40 million units when they were first released.
Much of the skepticism over Apple's venture into mixed reality has come from a lack of clear direction. The company's previous success has come as its devices have offered compelling solutions to consumer problems. The iPod provided a convenient way to store thousands of songs at your fingertips. The iPhone built on that by adding phone, camera, and internet capabilities. However, it's not as easy to understand what issue Apple's VR headset will rectify.
Apple CEO Tim Cook has said of the mixed-reality headset: "You'll wonder how you lived your life without augmented reality, just like today you wonder: How did people like me grow up without the internet?" The executive clearly has big hopes for the coming device. However, if critics' fears come to fruition, Apple's stock could take a downward tumble later this year.
Green flag: Apple has a history of succeeding in new markets
It is still early days for mixed-reality markets, but Apple's past performance when entering new industries suggests it has a better chance than anyone at succeeding in VR/AR. When releasing brand-new products, the company often garnered criticism from those who didn't quite see Apple's long-term vision.
Former Microsoft CEO Steve Ballmer infamously condemned the first iPhone for its price and said: "It doesn't appeal to business customers because it doesn't have a keyboard. Which makes it not a very good email machine." Meanwhile, the iPhone now has a leading 24.1% market share in smartphones, earning $205.5 billion in revenue in fiscal 2022.
The first iPad was similarly criticized, called "just a big iPod Touch" by PCWorld in 2010. However, its success skyrocketed the mass adoption of tablets, with Apple currently holding a 49.2% share in the industry.
The company's more recent ventures into new markets have seen it quickly rise to a position of dominance. Apple launched its first generation AirPods in 2016. By 2019, Fortune reported that the headphones' $8 billion in revenue alone would rank the business No. 384 in the Fortune 500, ahead of Foot Locker, Motorola, and Advanced Micro Devices at the time. Then in 2021, Apple hit a leading 34.4% market share in headphones.
The tech giant has also achieved the most market share in smartwatches at 26% after releasing its first Apple Watch in 2015.
Is Apple stock a buy?
Since the first commercial VR headset, the SEGA VR, launched in 1993, mixed reality devices have primarily focused on gaming. However, Apple's coming AR/VR machine is reportedly aiming to enhance various professional fields in business and art design. In addition, some reports say the company eventually hopes to completely replace the iPhone with a future iteration. The claims feel far-reaching for now, but Apple's past suggests it could prompt a surge in consumer adoption of mixed reality technology over the long term.
If Apple's vision becomes a reality, investing in its stock now could be akin to investing before it released the first iPhone. The stock has seen its shares rise 4,600% since 2007.
However, Apple's stock is a buy regardless of how its mixed reality headset performs this year. It offers consistent and reliable gains over the long term. Over the past decade, the company's shares have risen 900%, with the potency of its brand and current products likely to keep it growing for years.
In this case, the green flag outweighs the red, with Apple's stock an excellent buy in 2023.
10 stocks we like better than Apple
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Microsoft. The Motley Fool recommends Foot Locker and 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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With the largest market cap in the world at $2.5 trillion and stock growth of 286% in the last five years, Apple (NASDAQ: AAPL) is an attractive investment. The company is home to a potent brand that amassed immense loyalty from consumers, who have been drawn in by quality products and their interconnectivity, which promotes ease of use. Apple CEO Tim Cook has said of the mixed-reality headset: "You'll wonder how you lived your life without augmented reality, just like today you wonder: How did people like me grow up without the internet?"
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With the largest market cap in the world at $2.5 trillion and stock growth of 286% in the last five years, Apple (NASDAQ: AAPL) is an attractive investment. Red flag: Conflict among Apple executives concerning a new product On March 26, the New York Times reported growing internal skepticism at Apple about the potential success of its VR/AR headset due to launch in June. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Microsoft.
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With the largest market cap in the world at $2.5 trillion and stock growth of 286% in the last five years, Apple (NASDAQ: AAPL) is an attractive investment. Red flag: Conflict among Apple executives concerning a new product On March 26, the New York Times reported growing internal skepticism at Apple about the potential success of its VR/AR headset due to launch in June. Green flag: Apple has a history of succeeding in new markets It is still early days for mixed-reality markets, but Apple's past performance when entering new industries suggests it has a better chance than anyone at succeeding in VR/AR.
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With the largest market cap in the world at $2.5 trillion and stock growth of 286% in the last five years, Apple (NASDAQ: AAPL) is an attractive investment. The question is whether Apple can replicate its past success in entering new markets, which has seen it gain significant share in multiple markets. The stock has seen its shares rise 4,600% since 2007.
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16580.0
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2023-03-30 00:00:00 UTC
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This Is Where Verizon Makes Its Money
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AAPL
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https://www.nasdaq.com/articles/this-is-where-verizon-makes-its-money
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nan
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nan
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Verizon Communications (NYSE: VZ) is arguably one of the market's best dividend stocks today. Shares yield 6.8% and this telecom giant shows no signs of letting that payout fall.
But where does Verizon make its money and how much is revenue growing? Let's dig into the trends that drive cash flow for this telecom giant.
Image source: The Motley Fool.
Show me the money
Verizon's revenue overall was up 1.8% in the fourth quarter of 2022 to $34.7 billion, but its two most important segments grew differently. Consumer revenue was up 4.2% while business revenue rose 1.2%. These are important trends to watch, but dig closer and you see where the money comes from.
Verizon splits revenue between wireless services, which have a gross margin of 74%, and wireless equipment, which has a negative gross margin of 12.5%. Investors want to see services revenue grow as quickly as possible and that's where Verizon could be seeing the start of some positive trends in both the consumer and business markets.
Reasons to be optimistic about consumer growth
Consumer service revenue grew 5% in the fourth quarter, so there is some positive momentum, but it's where that growth is coming from that's important. Net wireless customers actually fell 0.8% for Verizon over the past year from 115,395 to 114,520, but fixed wireless broadband (5G broadband for the home) jumped from 101,000 to 884,000. Fixed wireless is booming and it's an entirely new revenue source for Verizon.
As customers are signing up for smartphone wireless and fixed wireless, it allows Verizon to also offer streaming bundles, making the product even stickier. The company is doing this with Walt Disney and Apple with offerings continuing to grow. Reselling streaming services is a high-margin business and leverages Verizon's existing customer base and sales infrastructure, so these are great additions to the service side of the business.
Why business revenue will grow
A similar trend is happening for businesses, where the number of connections grew 4.8% to 28.7 million, but fixed wireless connections nearly quadrupled to 568,000. Notice that the penetration of fixed wireless in the business segment is higher than it is for consumers, although it's still very small.
Service revenue growth of 4.7% in the fourth quarter in the business segment is another trend that's heading in the right direction.
In 2023, investors will want to watch the pace of service revenue growth and how quickly fixed wireless is being added to business plans.
Where to watch Verizon's growth
Verizon splits its business into consumer and business segments with consumers accounting for 77% of revenue. But in both segments, it's the service revenue that investors need to monitor.
If Verizon is successful in driving more customers to fixed wireless and streaming bundles, the company can grow the high-margin services business long-term even without adding net customers. I think given the company's P/E ratio of 7.5 and dividend yield of 6.8%, investors are underestimating the company's growth potential.
10 stocks we like better than Verizon Communications
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications 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
Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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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Show me the money Verizon's revenue overall was up 1.8% in the fourth quarter of 2022 to $34.7 billion, but its two most important segments grew differently. Investors want to see services revenue grow as quickly as possible and that's where Verizon could be seeing the start of some positive trends in both the consumer and business markets. In 2023, investors will want to watch the pace of service revenue growth and how quickly fixed wireless is being added to business plans.
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Where to watch Verizon's growth Verizon splits its business into consumer and business segments with consumers accounting for 77% of revenue. If Verizon is successful in driving more customers to fixed wireless and streaming bundles, the company can grow the high-margin services business long-term even without adding net customers. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Investors want to see services revenue grow as quickly as possible and that's where Verizon could be seeing the start of some positive trends in both the consumer and business markets. Where to watch Verizon's growth Verizon splits its business into consumer and business segments with consumers accounting for 77% of revenue. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Investors want to see services revenue grow as quickly as possible and that's where Verizon could be seeing the start of some positive trends in both the consumer and business markets. Where to watch Verizon's growth Verizon splits its business into consumer and business segments with consumers accounting for 77% of revenue. If Verizon is successful in driving more customers to fixed wireless and streaming bundles, the company can grow the high-margin services business long-term even without adding net customers.
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16581.0
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2023-03-30 00:00:00 UTC
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US STOCKS-Wall St gains as bank fears fade, focus on inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-as-bank-fears-fade-focus-on-inflation-data
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive realty and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path.
Investors await the February reading of personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday after January figures showed a sharp acceleration in consumer spending.
Data on Thursday showed jobless claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter GDP growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.
"Despite the (GDP) downgrade, it’s still a solid showing despite rising interest rates and elevated inflation ... but did show signs that the US economy was losing momentum," said Tom Hopkins, Portfolio Manager at BRI Wealth Management.
Investors will also parse comments from Boston Fed President Susan Collins, Minneapolis Fed President Neel Kashkari and Richmond President Thomas Barkin later in the day for clues on the central bank's monetary policy plans following the banking crisis.
Traders' bets are now almost equally split between a pause and a 25-basis-point rate hike by the Fed in May, according to CME Group's Fedwatch tool.
Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.4% to 1.1%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by 0.8% each.
Real-estate stocks .SPLRCR led sectoral gains, up 1.1%.
The banking turmoil, which started earlier this month with the collapse of two regional U.S. lenders, had sparked concerns about a broader financial crisis and led to a dramatic shift in monetary policy expectations from the Fed.
Despite the turbulence in the banking sector, both the S&P 500 .SPX and the Nadsaq .IXIC are headed for quarterly gains, with the latter on course for its best quarter since the end of 2020.
At 9:39 a.m. ET, the Dow Jones Industrial Average .DJI was up 148.06 points, or 0.45%, at 32,865.66, the S&P 500 .SPX was up 22.97 points, or 0.57%, at 4,050.78, and the Nasdaq Composite .IXIC was up 73.81 points, or 0.62%, at 12,000.05.
Among other stocks, Faraday Future Intelligent Electric Inc FFIE.O jumped 1.5% after the company said it has started production of its first luxury electric car after a months-long delay.
Streaming platform Roku Inc ROKU.O gained 1.3% on plans to cut about 200 jobs, while Kohl's Corp KSS.N climbed 6.9% after its chief executive officer bought shares in the company.
U.S.-listed shares of Alibaba Group Holding BABA.N advanced 2.7% on report that its logistics arm has started preparations with banks for its Hong Kong initial public offering, while those of JD.Com JD.O soared 7% on plans to spin off its real estate infrastructure arm.
Advancing issues outnumbered decliners by a 7.33-to-1 ratio on the NYSE and 2.87-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 34 new highs and 28 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Additional reporting by Sruthi Shankar; Editing by Anil D'Silva and Vinay Dwivedi)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.4% to 1.1%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by 0.8% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive realty and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Investors await the February reading of personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday after January figures showed a sharp acceleration in consumer spending.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.4% to 1.1%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by 0.8% each. Investors will also parse comments from Boston Fed President Susan Collins, Minneapolis Fed President Neel Kashkari and Richmond President Thomas Barkin later in the day for clues on the central bank's monetary policy plans following the banking crisis. Real-estate stocks .SPLRCR led sectoral gains, up 1.1%.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.4% to 1.1%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by 0.8% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive realty and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Data on Thursday showed jobless claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter GDP growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.
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Megacaps Apple Inc AAPL.O, Tesla Inc TSLA.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O rose 0.4% to 1.1%, lifting the consumer discretionary .SPLRCD and technology .SPLRCT indexes by 0.8% each. By Amruta Khandekar and Ankika Biswas March 30 (Reuters) - Wall Street's main indexes climbed on Thursday as fears of a banking crisis eased, with rate-sensitive realty and technology stocks leading gains ahead of key inflation data that could shape the Federal Reserve's policy path. Investors await the February reading of personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday after January figures showed a sharp acceleration in consumer spending.
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16582.0
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2023-03-30 00:00:00 UTC
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Sirius XM (SIRI) to Broadcast Major League Baseball 2023 Season
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AAPL
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https://www.nasdaq.com/articles/sirius-xm-siri-to-broadcast-major-league-baseball-2023-season
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nan
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nan
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Sirius XM SIRI announced that it would cover the full Major League Baseball 2023 season. The season will start on Mar 30. Sirius XM will broadcast all matches starting from the opening day till the end of the season.
Subscribers can access expert analysis, live play-by-play of every game and 24/7 news. The opening day from Nationals Park will be broadcasted on MLB Network Radio.
Black Diamonds, a Sirius XM’s award-winning show, will also return on Mar 30, hosted by Negro Leagues Baseball Museum president and historian Bob Kendrick. This show is about the history of the Negro Leagues and the people, players and incidents that shaped it.
The SXM app also offers 30 play-by-play radio channels dedicated to each MLB team, giving viewers the choice between the visiting and home teams. These 30 channels will also be available on vehicles equipped with SiriusXM with 360L radios.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
Sirius XM’s Focus on Market Share to Boost Top Line
This Zacks Rank #3 (Hold) company is looking to increase its market share in a highly cluttered market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of SIRI have lost 41.1% in the past year compared with the Zacks Consumer Discretionary sector’s decline of 20.3% in the same period.
SIRI reported fourth-quarter 2022 profit of 9 cents per share, beating the Zacks Consensus Estimate by 12.5%. Revenues increased 0.04% year over year to $2.28 billion, which missed the Zacks Consensus Estimate by 0.73%.
Sirius XM is looking to increase its market share to compete with music giants like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music.
According to a musical pursuits report, music streaming accounts for 84% of the U.S. music industry’s revenues. Notably, 82.1 million Americans are paid subscribers of on-demand music. Spotify holds 22.09% of the market share, followed by Apple Music with 6.36%, Sirius XM with 1.91% and Amazon Music with 0.65%.
Spotify has an extensive library and it is easy to find music or podcasts, helping Spotify maintain its dominant position in the market. Apple’s ecosystem, which enables users to switch between devices seamlessly, is a major reason for its high market share in the streaming industry. Amazon Music can be accessed through its wide range of devices like Echo and Fire TV Stick. These devices are widely used, which contributes to its market share.
The 82.1 million American subscribers indicate that the market does not have much room to grow but Sirius XM can focus on the market share of its competitors to grow considerably. The Zacks Consensus Estimate for revenues for first-quarter 2023 is pegged at $2.18 billion, indicating a year-over-year decline of 47%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sirius XM is looking to increase its market share to compete with music giants like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Black Diamonds, a Sirius XM’s award-winning show, will also return on Mar 30, hosted by Negro Leagues Baseball Museum president and historian Bob Kendrick.
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Sirius XM is looking to increase its market share to compete with music giants like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Sirius XM’s Focus on Market Share to Boost Top Line This Zacks Rank #3 (Hold) company is looking to increase its market share in a highly cluttered market.
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Sirius XM is looking to increase its market share to compete with music giants like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Sirius XM’s Focus on Market Share to Boost Top Line This Zacks Rank #3 (Hold) company is looking to increase its market share in a highly cluttered market.
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Sirius XM is looking to increase its market share to compete with music giants like Spotify Technology SPOT, Apple AAPL music and Amazon.com AMZN music. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Spotify holds 22.09% of the market share, followed by Apple Music with 6.36%, Sirius XM with 1.91% and Amazon Music with 0.65%.
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16583.0
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2023-03-30 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-11
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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
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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.
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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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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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16584.0
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2023-03-30 00:00:00 UTC
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Stock Market News for Mar 30, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-30-2023
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nan
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nan
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Wall Street closed sharply higher on Wednesday, led by a tech rally as investors awaited key inflation reading due on Friday that will help them assess how long the Fed is going to continue hiking interest rates. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 323.35 points to close at 32,717.60 points.
The S&P 500 rose 1.4% or 56.54 points to end at 4,027.81 points. Tech and real estate stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) jumped 2.1%, while the Real Estate Select Sector SPDR (XLRE) gained 2.4%. The Consumer Discretionary Sector SPDR (XLY) gained 1.9%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1.8% or 210.16 points to finish at 11,926.24 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.26% to 19.12. Advancers outnumbered decliners on the NYSE by a 3.86-to-1 ratio. On Nasdaq, a 2.15-to-1 ratio favored advancing issues. A total of 10.61 billion shares were traded on Wednesday, lower than the last 20-session average of 12.73 billion.
Investors Regain Confidence
Stocks ended slightly lower on Tuesday as investors worried that further rate hikes by the central bank could push the economy into a recession. However, market sentiments have been gradually improving over the past few sessions.
Investors are slowly getting back the lost confidence as fears of a liquidity crisis spilling over in the banking sector following the failure of Signature Bank and Silicon Valley Bank earlier this month seem to be calming down.
On Wednesday, markets opened higher as investors felt a lot more confident after Fed official last week assured that the banking sector wasn’t facing any liquidity crisis. Tech stocks once again rallied led by Micron Technology, Inc. (MU) after the company despite posting a decline in its third-quarter revenues gave a positive outlook for 2025, on hopes that artificial intelligence will boost sales.
Following this, shares of Micron Technologies jumped 7.2%. Big tech also benefited from this, with shares of Apple, Inc. (AAPL) increasing 2%. Shares of Alphabet Inc. (GOOGL) rose 0.4%.
Financial stocks also continued their rebound with no major negative news from the banking sector. The SPDR S&P Regional Banking ETF (KRE), which tracks regional banks, increased by about 1%.
Shares of big banks like The Goldman Sachs Group, Inc. (GS) and Bank of America Corporation (BAC) also rose 0.8% and 2%, respectively. Bank of America has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The tech stocks rallied primarily because treasury yields maintained a holding pattern ahead of the key Personal Consumption Expenditure (PCI) reading that is due on Friday. PCI came in at 5.4% in January, which was off its peak levels but quite above the Fed’s target level of 2%.
Friday’s fresh reading will help investors assess how many more rate hikes the Fed plans in the coming months.
Economic Data
In economic data released on Wednesday, the National Association of Realtors said that pending homes sales rose for the third straight month in February to 0.8%, its highest level since August.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
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Apple Inc. (AAPL) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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Big tech also benefited from this, with shares of Apple, Inc. (AAPL) increasing 2%. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street closed sharply higher on Wednesday, led by a tech rally as investors awaited key inflation reading due on Friday that will help them assess how long the Fed is going to continue hiking interest rates.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Big tech also benefited from this, with shares of Apple, Inc. (AAPL) increasing 2%. The Technology Select Sector SPDR (XLK) jumped 2.1%, while the Real Estate Select Sector SPDR (XLRE) gained 2.4%.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Big tech also benefited from this, with shares of Apple, Inc. (AAPL) increasing 2%. Investors are slowly getting back the lost confidence as fears of a liquidity crisis spilling over in the banking sector following the failure of Signature Bank and Silicon Valley Bank earlier this month seem to be calming down.
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Big tech also benefited from this, with shares of Apple, Inc. (AAPL) increasing 2%. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Technology Select Sector SPDR (XLK) jumped 2.1%, while the Real Estate Select Sector SPDR (XLRE) gained 2.4%.
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16585.0
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2023-03-30 00:00:00 UTC
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GRAPHIC-Signs of pain as easy cash era ends are growing
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AAPL
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https://www.nasdaq.com/articles/graphic-signs-of-pain-as-easy-cash-era-ends-are-growing
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nan
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nan
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LONDON, March 30 (Reuters) - The easy-cash era is over and markets are feeling the pinch from the sharpest jump in interest rate in decades.
The collapse of U.S.-lender Silicon Valley Bank (SVB) SIVB.0 in early March after heavy losses on its bond portfolio as rates climbed was a wake-up call for markets that monetary tightening will likely bring more pain.
Since late 2021, big developed economies including the United States, euro area and Australia have raised rates by almost 3,300 basis points collectively.
Here's a look at some potential pressure points.
1/ BANKS
Banks remain at the top of the worry list after the collapse of SVB, as well as Credit Suisse's forced merger with UBS, sparked turmoil across the banking sector.
Investors are alert to which other banks might be sitting on unrealised losses in government bonds, the prices of which have dropped sharply as rates have risen.
The SVB bond portfolio losses have highlighted similar risks for Japanese lenders' gigantic foreign bond holdings, which carry over 4 trillion yen ($30 billion) in unrealised losses.
Japanese, European and U.S. banks stocks, while off recent lows, are still well below levels seen just before SVB's collapse.
2/ DARLINGS NO MORE
As the SVB collapse showed, stress in the tech sector can quickly ripple out across the economy.
Tech firms are reversing pandemic-era exuberance, with Google owner Alphabet GOOGL.O, Amazon AMZN.O and Meta META.O in March conducting their latest rounds of layoffs after years of hiring sprees.
Housing markets in U.S. tech hubs such as Seattle and San Jose are cooling more rapidly than in other regions, real estate broker Redfin Corp says.
In commercial property, a restructuring by Pinterest PINS.N will see the social media company exit office leases.
Investors wary of global stress should keep their eyes on Silicon Valley, as ructions in this major U.S. industry cause aftershocks in Europe and beyond.
3/ DEFAULT RISKS
S&P expects U.S. and European default rates to reach 3.75% and 3.25%, respectively by September, more than double the 1.6% and 1.4% in September 2022. Pessimistic forecasts of 6.0% and 5.5% not "out of the question", it says.
Deutsche Bank strategist Jim Reid wrote this week that "corporates are more levered now than during the great financial crisis and this cycle could ultimately be more corporate default focused versus financials."
4/ CRYPTO WINTER
Having benefited from an influx of cash during the easy-money era, cryptocurrencies have felt pain as rates rose last year, then gained on recent signs that tightening could end soon.
The most popular cryptocurrency, bitcoin, has been an unexpected beneficiary of broader market turmoil, surging around 40% in just 10 days.
Analysts attributed the gains to market expectations that rate hikes were nearing their peak, support risk-sensitive assets such as bitcoin BTC=BTSP.
But there are reasons for caution towards crypto assets -- the collapse of various high-profile crypto firms last year left crypto customers shouldering large losses, while U.S. authorities are increasingly cracking down on the crypto sector's largest players.
5/ FOR SALE
Rising rates operate with a time lag, which means the impact on rate-sensitive housing markets has yet to be fully felt.
A distressed debt index compiled by law firm Weil Gotshal & Manges showed that real estate remains the most distressed sector by some margin in Europe and the UK.
Economists are also worried that commercial property could be the next shoe to drop if global banking woes trigger a broader credit crunch for the multi-trillion-dollar sector that was already under pressure.
Capital Economics said that U.S. commercial real estate (CRE) prices have fallen by 4-5% from their peak in mid-2022 and expects a further 18-20% drop.
The reliance of the sector on lending from small and mid-tier banks -- which provide about 70% of outstanding loans to CRE -- is worrisome as those banks are facing pressure on their deposit base, the firm noted.
Pain in crypto landhttps://tmsnrt.rs/3zi76a0
Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3lU02xy
Corporate default rate may double in 2023https://tmsnrt.rs/3Jmx8zd
The race to raise rateshttps://tmsnrt.rs/3ncfxRI
Meta has cut nearly a quarter of its employeeshttps://tmsnrt.rs/3Z250WB
Bank stocks tumble after SVB, Signature Bank collapsehttps://tmsnrt.rs/3JKHqYC
(Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Compiled by Chiara Elisei; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Andrea Ricci)
((Chiara.Elisei@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collapse of U.S.-lender Silicon Valley Bank (SVB) SIVB.0 in early March after heavy losses on its bond portfolio as rates climbed was a wake-up call for markets that monetary tightening will likely bring more pain. Tech firms are reversing pandemic-era exuberance, with Google owner Alphabet GOOGL.O, Amazon AMZN.O and Meta META.O in March conducting their latest rounds of layoffs after years of hiring sprees. Pain in crypto landhttps://tmsnrt.rs/3zi76a0 Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3lU02xy Corporate default rate may double in 2023https://tmsnrt.rs/3Jmx8zd The race to raise rateshttps://tmsnrt.rs/3ncfxRI Meta has cut nearly a quarter of its employeeshttps://tmsnrt.rs/3Z250WB Bank stocks tumble after SVB, Signature Bank collapsehttps://tmsnrt.rs/3JKHqYC (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Compiled by Chiara Elisei; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Andrea Ricci) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collapse of U.S.-lender Silicon Valley Bank (SVB) SIVB.0 in early March after heavy losses on its bond portfolio as rates climbed was a wake-up call for markets that monetary tightening will likely bring more pain. Capital Economics said that U.S. commercial real estate (CRE) prices have fallen by 4-5% from their peak in mid-2022 and expects a further 18-20% drop. Pain in crypto landhttps://tmsnrt.rs/3zi76a0 Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3lU02xy Corporate default rate may double in 2023https://tmsnrt.rs/3Jmx8zd The race to raise rateshttps://tmsnrt.rs/3ncfxRI Meta has cut nearly a quarter of its employeeshttps://tmsnrt.rs/3Z250WB Bank stocks tumble after SVB, Signature Bank collapsehttps://tmsnrt.rs/3JKHqYC (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Compiled by Chiara Elisei; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Andrea Ricci) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collapse of U.S.-lender Silicon Valley Bank (SVB) SIVB.0 in early March after heavy losses on its bond portfolio as rates climbed was a wake-up call for markets that monetary tightening will likely bring more pain. Banks remain at the top of the worry list after the collapse of SVB, as well as Credit Suisse's forced merger with UBS, sparked turmoil across the banking sector. Pain in crypto landhttps://tmsnrt.rs/3zi76a0 Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3lU02xy Corporate default rate may double in 2023https://tmsnrt.rs/3Jmx8zd The race to raise rateshttps://tmsnrt.rs/3ncfxRI Meta has cut nearly a quarter of its employeeshttps://tmsnrt.rs/3Z250WB Bank stocks tumble after SVB, Signature Bank collapsehttps://tmsnrt.rs/3JKHqYC (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Compiled by Chiara Elisei; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Andrea Ricci) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collapse of U.S.-lender Silicon Valley Bank (SVB) SIVB.0 in early March after heavy losses on its bond portfolio as rates climbed was a wake-up call for markets that monetary tightening will likely bring more pain. Japanese, European and U.S. banks stocks, while off recent lows, are still well below levels seen just before SVB's collapse. Economists are also worried that commercial property could be the next shoe to drop if global banking woes trigger a broader credit crunch for the multi-trillion-dollar sector that was already under pressure.
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16586.0
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2023-03-30 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-6
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nan
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nan
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Launched on 03/13/2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $2.73 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.49%.
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 in the Information Technology sector--about 64.70% of the portfolio. Telecom and Financials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 8.21% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech Sector ETF return is roughly 18.12% so far, and is down about -17.21% over the last 12 months (as of 03/30/2023). IGM has traded between $266.47 and $397.01 in this past 52-week period.
The ETF has a beta of 1.17 and standard deviation of 28.08% for the trailing three-year period, making it a medium risk choice in the space. With about 334 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector 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, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $42.78 billion in assets, Vanguard Information Technology ETF has $45.55 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Expanded Tech Sector ETF (IGM): 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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Launched on 03/13/2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/13/2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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16587.0
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2023-03-30 00:00:00 UTC
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Why Warren Buffett Owns More of Apple, Bank of America, and Chevron Stocks Than You Might Think
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AAPL
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https://www.nasdaq.com/articles/why-warren-buffett-owns-more-of-apple-bank-of-america-and-chevron-stocks-than-you-might
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nan
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nan
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Which stocks does Warren Buffett like the most? Obviously, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) deserves to be at the top of the list. Most of Buffett's personal net worth is invested in the company.
There's also a good case to be made that Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) should be on the list of Buffett's favorite stocks. If you look at Berkshire's regulatory filings, they rank as the conglomerate's top three holdings. But those filings don't tell the full story.
Image source: The Motley Fool.
Why Buffett likes these stocks
Let's first look at Berkshire's latest regulatory filings listing its holdings. Here's what the company's positions were in the three biggest stocks as of Dec. 31, 2022:
STOCK SHARES OWNED VALUE
Apple 895,136,175 $116.3 billion
Bank of America 1,010,100,606 $33.5 billion
Chevron 162,975,771 $29.3 billion
Data source: Berkshire Hathaway 13F filing.
With such huge stakes, Buffett clearly likes Apple, Bank of America, and Chevron. Why? The legendary investor has his reasons.
Buffett didn't initiate a position in Apple until 2016. Since then, he has often sung the company's praises. In an interview with CNBC in 2020, Buffett said that Apple was "probably the best business I know in the world."
He still loves the business. Apple was one of only four stocks that he bought for Berkshire's portfolio in the fourth quarter of 2022.
Bank stocks have been near and dear to Buffett's heart for years. Sure, he has cut back on his positions in several of these stocks in recent quarters. However, he has held onto Bank of America -- probably because it remains one of the strongest and most innovative big banks around.
Buffett also became enthusiastic about Chevron in 2020. Shares of the giant oil and gas producer had been beaten down because of the COVID-19 pandemic. Buffett saw a great opportunity and initiated a huge position in the stock.
Extra shares for Buffett's big three
Buffett actually owns even more of Apple, Bank of America, and Chevron than you might think. How? Berkshire Hathaway has a subsidiary, New England Asset Management (NEAM), that's an investment firm.
NEAM has its own portfolio, which includes all three of Berkshire's biggest holdings. At the end of 2022, NEAM's positions in Buffett's big three were:
STOCK SHARES OWNED VALUE
Apple 20,446,491 $2.7 billion
Bank of America 22,760,835 $764.5 million
Chevron 4,429,265 $795 million
Data source: New England Asset Management 13F filing.
With these extra shares added, Apple makes up 43.7% of Berkshire's total portfolio. Bank of America and Chevron comprise 8.9% and 8.1%, respectively, of the conglomerate's portfolio.
There's also a way that Buffett and Berkshire indirectly own even more shares of Apple. Berkshire initiated a position in Markel (NYSE: MKL) last year and now owns 3.5% of the company. As of Dec. 31, 2022, Markel owned a little over 1.2 million shares of Apple, which were worth around $156.8 million.
Another twist
If we dig further, there's another twist. Guess which stock is Markel's biggest holding? It's none other than Berkshire Hathaway. At the end of last year, Markel owned 1,114 Berkshire class A shares and more than 1.5 million Berkshire class B shares.
Because of Berkshire's stake in Markel, the conglomerate indirectly owns more of its own stock. That means, in turn, that it (and Buffett) own more of Apple, Bank of America, and Chevron.
Buffett's ownership of his top three stocks is certainly more complicated than meets the eye at first glance. But he owns the stocks for a simple reason: He expects them to deliver market-beating returns. I suspect that they will.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Markel. 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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There's also a good case to be made that Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) should be on the list of Buffett's favorite stocks. Why Buffett likes these stocks Let's first look at Berkshire's latest regulatory filings listing its holdings. Berkshire initiated a position in Markel (NYSE: MKL) last year and now owns 3.5% of the company.
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There's also a good case to be made that Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) should be on the list of Buffett's favorite stocks. Apple 895,136,175 $116.3 billion Bank of America 1,010,100,606 $33.5 billion Chevron 162,975,771 $29.3 billion Data source: Berkshire Hathaway 13F filing. Apple 20,446,491 $2.7 billion Bank of America 22,760,835 $764.5 million Chevron 4,429,265 $795 million Data source: New England Asset Management 13F filing.
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There's also a good case to be made that Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) should be on the list of Buffett's favorite stocks. Extra shares for Buffett's big three Buffett actually owns even more of Apple, Bank of America, and Chevron than you might think. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Markel.
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There's also a good case to be made that Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) should be on the list of Buffett's favorite stocks. Extra shares for Buffett's big three Buffett actually owns even more of Apple, Bank of America, and Chevron than you might think. Berkshire initiated a position in Markel (NYSE: MKL) last year and now owns 3.5% of the company.
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2023-03-30 00:00:00 UTC
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Warren Buffett's 4 Foundational Criteria for Major Investments, Revealed
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https://www.nasdaq.com/articles/warren-buffetts-4-foundational-criteria-for-major-investments-revealed
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For nearly 60 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with his investing prowess. Though he's not perfect -- no investor is, for that matter -- the Oracle of Omaha has overseen an aggregate gain of 3,787,464% in his company's Class A shares (BRK.A) through the end of 2022. For context, that's 153 times the return of the broad-based S&P 500 over the same time frame, including dividends.
Warren Buffett's long-term success has earned him quite the following from individual and professional investors eager to unlock his secrets to long-term outperformance. But little do these investors know that Buffett spilled the beans on what he looks for in major investments nearly a half-century ago.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
One of the greatest treasure troves the Oracle of Omaha has bestowed on investors is his annual letter to shareholders. While this letter often summarizes the state of Berkshire Hathaway's operations, it also provides a look into the investing thought process of one of Wall Street's greatest minds.
In Warren Buffett's 1976 letter to Berkshire Hathaway shareholders, he laid out the four foundational criteria he and his team look for in major equity holdings.
1. "Favorable long-term economic characteristics"
For as long as Warren Buffett has been holding the reins at Berkshire Hathaway, he's preached the importance of long-term investing and analyzing businesses' performance over many years. It should come as absolutely no surprise that Berkshire's top holdings are businesses that offer sustained long-term catalysts.
For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. In the U.S., the company's iPhone has accounted for roughly half of all smartphone market share since introducing 5G wireless capability in the fourth quarter of 2020. Meanwhile, Apple is rapidly transforming into a services-oriented company that could see subscription revenue become its primary cash flow and profit driver by the second half of the decade. The need for subscription services and physical products (smartphones and laptops) continues to grow.
Credit services giant American Express (NYSE: AXP) is another example of a major equity holding with "favorable long-term economic characteristics." In addition to AmEx's payment-processing revenue growing in lockstep with the U.S. and global economies over time, American Express acts as a lender and can generate interest income and annual fee revenue from its cardholders. Being able to double-dip and play both sides of the aisle allows American Express to take advantage of disproportionately long periods of economic expansion.
2. "Competent and honest management"
The second foundational criterion for major equity holdings laid out by the Oracle of Omaha in his 1976 letter to Berkshire shareholders is "competent and honest management." While Buffett loves investing in businesses that essentially run themselves, he's well aware of the damage a poor management team can do.
For over 30 years, banking giant Wells Fargo (NYSE: WFC) was a fixture in Berkshire Hathaway's portfolio. However, that changed after the bank admitted to opening roughly 3.5 million unauthorized accounts at the branch level between 2009 and 2016. Between CEO turnover, a hefty fine from U.S. regulators, and the damage to Wells Fargo's reputation, the Oracle of Omaha and his team jettisoned this once foundational holding during the first quarter of 2022.
On the other hand, Warren Buffett has spoken fondly of what Jeff Bezos did as CEO of Amazon (NASDAQ: AMZN). Bezos stepped down as CEO in July 2021 but remains involved as executive chairman. In a 2017 interview with Becky Quick on CNBC's Squawk Box, Buffett exclaimed:
I'm amazed at the managerial talent of Jeff Bezos. I've been a constant fan, really, almost since he started. And the more I see him, the more impressed I've been with what he's accomplished.
Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier. In short, Buffett is a big fan of leaders who inspire trust and confidence.
Image source: Getty Images.
3. A "purchase price attractive when measured against the yardstick of value to a private owner"
The third criterion for major investments should surprise absolutely no one: Warren Buffett wants a good deal on a fantastic company and has been willing to sit on his proverbial hands until those once-in-a-blue-moon deals materialize.
For instance, the Oracle of Omaha and his team have been steadily plowing capital into media stock Paramount Global (NASDAQ: PARA) over the past couple of quarters. Although ad weakness is temporarily weighing on Paramount's legacy TV media segment, the company is enjoying lightning-fast revenue and subscriber growth from its streaming services. In fact, Pluto TV is the United States' leading ad-supported free streaming service, meaning it's uniquely positioned to excel if a recession does take shape.
When the U.S. economy is, once again, firing on all cylinders, $2-plus in annual earnings per share is very likely for Paramount Global. At roughly $20/share, that means the stock trades for a reasonably cheap 10 times (or possibly less) future earnings with a greater-than-4% dividend yield.
Another brand-name stock that passes the valuation sniff test for Warren Buffett is oil stock Chevron (NYSE: CVX). Even factoring in a softening in oil and natural gas prices since 2023 began, Chevron trades at roughly 10 times Wall Street's forecast earnings in 2023 and 2024. Considering that the global energy supply chain is broken due to three years of pandemic-related underinvestment and Russia's invasion of Ukraine, Chevron is appropriately positioned to take advantage of elevated energy commodity prices.
4. "An industry with which we are familiar and whose long-term business characteristics we feel competent to judge"
The fourth foundational criterion Warren Buffett uses when assessing whether a company can become a major equity holding for Berkshire Hathaway is his and his team's comfort level and knowledge of a specific industry. In other words, the Oracle of Omaha has a rather narrow research focus and tends to invest in sectors and industries where he and his team have authority.
There's probably no industry that Warren Buffett is more confident putting his money to work in than banking. Banks are cyclical businesses able to take advantage of long-winded economic expansions by growing their loans and deposits (i.e., the bread-and-butter of banking).
Bank of America (NYSE: BAC) is Berkshire Hathaway's unquestioned favorite bank stock. Although he appreciates the cyclical aspect of banks, BofA's interest sensitivity must have Buffett overjoyed at the moment. No U.S. money-center bank is benefiting more from the Federal Reserve's rapidly hiking interest rates than Bank of America.
The Oracle of Omaha and his lieutenants are also quite competent in assessing consumer staples stocks. Beverage behemoth Coca-Cola (NYSE: KO) is Berkshire's longest-held stock -- 35 years and counting.
Coca-Cola operates in all but three countries worldwide and has a top-notch marketing team. Coca-Cola may not be the growth story it was in the 1980s, but it continues to deliver highly predictable cash flow and has raised its base annual dividend in each of the past 61 years. This is the familiarity Buffett seeks from his major investments.
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American Express, Wells Fargo, and Bank of America are advertising partners of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon.com, Bank of America, and Wells Fargo. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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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For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. For instance, the Oracle of Omaha and his team have been steadily plowing capital into media stock Paramount Global (NASDAQ: PARA) over the past couple of quarters. Although ad weakness is temporarily weighing on Paramount's legacy TV media segment, the company is enjoying lightning-fast revenue and subscriber growth from its streaming services.
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For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. "Competent and honest management" The second foundational criterion for major equity holdings laid out by the Oracle of Omaha in his 1976 letter to Berkshire shareholders is "competent and honest management." Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier.
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For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier. "An industry with which we are familiar and whose long-term business characteristics we feel competent to judge" The fourth foundational criterion Warren Buffett uses when assessing whether a company can become a major equity holding for Berkshire Hathaway is his and his team's comfort level and knowledge of a specific industry.
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For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. Berkshire Hathaway CEO Warren Buffett. See the 10 stocks *Stock Advisor returns as of March 8, 2023 American Express, Wells Fargo, and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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16589.0
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2023-03-30 00:00:00 UTC
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This Dividend-Focused ETF Is Not a Good Dividend Investment
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https://www.nasdaq.com/articles/this-dividend-focused-etf-is-not-a-good-dividend-investment
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If you are a dividend investor, one of the easiest ways to cull your list of possible investments is to focus on companies with long histories of annual dividend increases. This is exactly the group of stocks you'll find in Invesco Dividend Achievers ETF (NASDAQ: PFM). But at the end of the day, this exchange-traded fund (ETF) isn't really a dividend investment. Here's why.
The devil is in the details on this ETF
Invesco Dividend Achievers ETF is a passively managed exchange-traded fund, meaning that it is designed to blindly follow an index. The index in question here is the "Nasdaq US Broad Dividend Achievers Index, which is designed to identify a diversified group of dividend-paying companies." To get on that list, a company needs to have increased its dividend annually for at least 10 consecutive years. The index is updated annually, and the market-cap-weighted ETF is rebalanced four times a year, though no single stock will be allowed to account for more than 4% of the total portfolio.
Image source: Getty Images.
So far, this should sound like a fairly interesting investment vehicle for a dividend-minded investor. But when you take a look at the modest 2% or so dividend yield on offer, you might have some questions. While that's higher than the yield you would get from an S&P 500 Index ETF (roughly 1.6%), it's not at all generous when you can probably find a bank CD that yields 4% or more. And you can easily find individual stocks with strong dividend histories and great businesses with much higher yields, like Procter & Gamble's 2.5% dividend yield, Kellogg's 3.5%, Franklin Resources' 4.5%, and on up to Enbridge's 7.1%. You get the idea -- there are a lot of stocks that have great dividend histories and higher yields than you'd get from Invesco Dividend Achievers ETF.
The problem is that this ETF uses dividend history as a quality screen.
A good dividend payer involves more than a string of dividends
Putting 10-plus years' worth of dividend increases together is not something that happens by accident. So being part of Invesco Dividend Achievers ETF is kind of a badge of honor in a way. If you are a dividend investor, the list of holdings would make a very good starting point for your own stock research. But that's all it would be -- a starting point. This is because dividend investing isn't monolithic; there are nuances. For example, some investors are looking to maximize their income streams, while others might be trying to find stocks with fast-growing dividends.
Both are contained in Invesco Dividend Achievers ETF, making it a terrible investment choice for either of these types of dividend investors. Some numbers may help. One of the ETF's largest holdings is Apple (NASDAQ: AAPL), which has a dividend yield of 0.6% or so. Sure, the dividend has grown at a compound annual rate of 17% over the past decade, but this stock will not likely interest an investor looking to create a large income stream.
At the other extreme, the list of holdings also includes Lincoln National (NYSE: LNC), which currently yields 8.6%. That high yield is at least partly related to the distress in the finance industry over the past month or so. Still, for investors looking to maximize their income streams, it would clearly be a more desirable option than Apple.
AAPL Dividend Per Share (Quarterly) data by YCharts
In the middle is a name like Cardinal Health (NYSE: CAH), which has a yield of around 2.9%. But Cardinal Health's dividend has grown at around 1% or so a year over the past one-, three-, and five-year periods. This stock probably isn't going to be too attractive for either dividend growth- or income-focused investors.
What these examples show is the wide variety of stocks that fall into Invesco Dividend Achievers ETF's list of holdings. While all of these names have proven they have businesses that can support a growing dividend over time, which is impressive, they don't necessarily coalesce into a good dividend portfolio. Thus, in the end, the 10-plus years of dividend increases needed to be included in the ETF ends up being a quality screen and nothing more.
Use the ETF as a crib sheet
If you are looking to own high-quality dividend-paying companies, Invesco Dividend Achievers ETF could be a good option for you. But if you are looking to find high-quality dividend growth stocks or high-yield stocks, this ETF will leave you owning stocks you wouldn't buy on your own. As a better option, you could use the holding as a list from which you cherry pick stocks that are right for your portfolio. Sure, it will be more work to buy individual stocks, but the personalized portfolio you create will be much more appropriate than what you'll get if you buy Invesco Dividend Achievers ETF.
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*Stock Advisor returns as of March 8, 2023
Reuben Gregg Brewer has positions in Enbridge, Kellogg, and Procter & Gamble. The Motley Fool has positions in and recommends Apple and Enbridge. The Motley Fool recommends Nasdaq and 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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AAPL Dividend Per Share (Quarterly) data by YCharts In the middle is a name like Cardinal Health (NYSE: CAH), which has a yield of around 2.9%. One of the ETF's largest holdings is Apple (NASDAQ: AAPL), which has a dividend yield of 0.6% or so. The index is updated annually, and the market-cap-weighted ETF is rebalanced four times a year, though no single stock will be allowed to account for more than 4% of the total portfolio.
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One of the ETF's largest holdings is Apple (NASDAQ: AAPL), which has a dividend yield of 0.6% or so. AAPL Dividend Per Share (Quarterly) data by YCharts In the middle is a name like Cardinal Health (NYSE: CAH), which has a yield of around 2.9%. And you can easily find individual stocks with strong dividend histories and great businesses with much higher yields, like Procter & Gamble's 2.5% dividend yield, Kellogg's 3.5%, Franklin Resources' 4.5%, and on up to Enbridge's 7.1%.
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One of the ETF's largest holdings is Apple (NASDAQ: AAPL), which has a dividend yield of 0.6% or so. AAPL Dividend Per Share (Quarterly) data by YCharts In the middle is a name like Cardinal Health (NYSE: CAH), which has a yield of around 2.9%. And you can easily find individual stocks with strong dividend histories and great businesses with much higher yields, like Procter & Gamble's 2.5% dividend yield, Kellogg's 3.5%, Franklin Resources' 4.5%, and on up to Enbridge's 7.1%.
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One of the ETF's largest holdings is Apple (NASDAQ: AAPL), which has a dividend yield of 0.6% or so. AAPL Dividend Per Share (Quarterly) data by YCharts In the middle is a name like Cardinal Health (NYSE: CAH), which has a yield of around 2.9%. This is exactly the group of stocks you'll find in Invesco Dividend Achievers ETF (NASDAQ: PFM).
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16590.0
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2023-03-29 00:00:00 UTC
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Stock Market News for Mar 29, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-mar-29-2023
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U.S. stocks ended marginally lower on Tuesday, led by a selloff in tech stocks after a solid run in recent times as investors assessed the state of the nation’s banking sector and economy’s health. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.1% or 37.83 points to end at 32,394.25 points.
The S&P 500 shed 0.2% or 6.26 points to finish at 3,971.27 points. Tech and communication stocks were the biggest losers on the index. However, energy stocks gained.
The Technology Select Sector SPDR (XLK) lost 0.5%, while the Communication Services Select Sector SPDR (XLC) declined 0.8%. The Energy Select Sector SPDR (XLE) gained 1.6%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq dropped 0.5% or 52.76 points to close at 11,716.08 points.
The fear-gauge CBOE Volatility Index (VIX) was down 3.06% to 19.97. Advancers outnumbered decliners on the NYSE by a 1.43-to-1 ratio. On Nasdaq, a 1.28-to-1 ratio favored declining issues. A total of 9.66 billion shares were traded on Tuesday, lower than the last 20-session average of 12.75 billion.
Markets Stabilizing but Worries Continue
Wall Street ended mostly higher on Monday and investors appeared to get back the lost confidence on Tuesday with no major negative news from the banking sector. The Dow started the session in the green but gave up all its gains in afternoon trading.
Fed officials including Treasury Secretary Janet Yellen last week assured investors that the U.S. banking sector wasn’t facing any liquidity crisis. This saw markets end in the green last week amid volatility.
However, fears haven’t completely waned and investors were expecting to get a clearer picture of the state of the banking sector from top regulators as they began their two-day Congressional testimony on the supervision of Signature Bank and Silicon Valley Bank, which collapsed earlier this month.
The existing fears weighed on stocks on Tuesday dragging down the indexes.
Bond Yields Rise
With fears of a credit bottleneck that could hinder economic growth slowly waning, government bond yields have once again been climbing. The 2-year Treasury yield, which is sensitive to monetary policy, surpassed 4% on Tuesday after falling below 3.6% last week. As rates rise, future profits, like those promised by growth stocks, become less alluring.
The rise in bond yields put tech stocks under pressure on Tuesday. Shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) each declined 0.4%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The rise in bond yields also weighed on communication stocks. Shares of Verizon Communications Inc. (VZ) declined 0.1%, while AT&T Inc. (T) lost 0.8%.
Economic Data
Advance Trade in Goods showed a deficit of -$91.6 billion, deeper than the upwardly revised -$91.1 billion but better than the originally reported -$91.9 billion for January.
Advance Retail Inventory for February climbed to +0.8% from the previous month's downwardly revised +0.1%. Advance Wholesale Inventories changed direction from January's downwardly revised -0.5% to a positive +0.2% in February.
The S&P Case-Shiller home price index on Tuesday reflected a 0.4% decline in prices in January from the prior month. However, prices are still up 2.5% year over year. According to separate data from the Federal Housing Finance Agency, home prices rose 0.2% in January on a month-over-month basis.
The Conference Board said that U.S. Consumer Confidence index unexpectedly rose to 104.2 in March from a revised 103.2 in February, which was also above the consensus estimate of 101.
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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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Shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) each declined 0.4%. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report To read this article on Zacks.com click here. Markets Stabilizing but Worries Continue Wall Street ended mostly higher on Monday and investors appeared to get back the lost confidence on Tuesday with no major negative news from the banking sector.
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Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) each declined 0.4%. The Technology Select Sector SPDR (XLK) lost 0.5%, while the Communication Services Select Sector SPDR (XLC) declined 0.8%.
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Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) each declined 0.4%. U.S. stocks ended marginally lower on Tuesday, led by a selloff in tech stocks after a solid run in recent times as investors assessed the state of the nation’s banking sector and economy’s health.
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Shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) each declined 0.4%. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report To read this article on Zacks.com click here. The Dow Jones Industrial Average (DJI) fell 0.1% or 37.83 points to end at 32,394.25 points.
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2023-03-29 00:00:00 UTC
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US STOCKS-Wall St gains on easing bank crisis fears, hopes of Fed rate-hike pause
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-on-easing-bank-crisis-fears-hopes-of-fed-rate-hike-pause
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By Amruta Khandekar and Ankika Biswas
March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, while growing hopes that the Federal Reserve could pause interest rate hikes lifted shares of tech and growth companies.
Market worries about the banking system have ebbed following a U.S. regulator-backed sale of failed lender Silicon Valley Bank's assets as well as lack of fresh signs of trouble in the sector since the buyout deal.
"Markets have been hit by waves of bad news, and we have hit a small pocket of stability with a few decent earnings and the bank crisis seeming closer to being over," said Rick Meckler, partner at Cherry Lane Investments.
Regional U.S. bank stocks including Truist Financial Corp TFC.N, Western Alliance Bancorp WAL.N and First Republic Bank FRC.N were up between 1.6% and 7.1%.
Larger peers Bank of America BAC.N, Goldman Sachs GS.N and JPMorgan Chase & Co JPM.N rose between 0.1% and 1.1%.
The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
Traders' bets are tilted towards no rate hike by the Fed in May, with odds of a 25-basis-point increase at 41%, according to CME Group's Fedwatch tool.
Increasing expectations of a pause boosted both Amazon.com Inc AMZN.O and Tesla Inc TSLA shares by about 3%, lifting consumer discretionary .SPLRCD up about 1.5%. Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose 1.3% to 2.3%, boosting the information technology .SPLRCT index.
Thanks to gains in major technology and growth stocks, the Nasdaq .IXIC outperformed its peers.
Real estate stocks .SPLRCR also advanced 1.8% to lead sectoral gains.
Michael Barr, the Fed's vice chairman for supervision, will testify before Congress for a second day after he criticized SVB's risk management on Tuesday.
A key inflation reading expected at the end of the week will provide more clues on the Fed's monetary tightening plans.
The CBOE volatility index .VIX, known as Wall Street's fear gauge, fell to its lowest since March 9, reflecting easing investor anxiety.
At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was up 244.04 points, or 0.75%, at 32,638.29, the S&P 500 .SPX was up 42.12 points, or 1.06%, at 4,013.39, and the Nasdaq Composite .IXIC was up 162.06 points, or 1.38%, at 11,878.14.
Among major stock moves, Micron Technology Inc MU.O advanced 7.3% after the chipmaker forecast a boost to sales in 2025 from artificial intelligence.
Lululemon Athletica Inc LULU.O jumped 15.2% after forecasting annual sales and profit above estimates, while Lucid Group Inc LCID.O gained 2.0% on plans to lay off about 18% of its workforce.
U.S.-listed shares of Alibaba Group Holding Ltd BABA.N slipped 1.5%, a day after touching a more than one-month high on the internet giant's revamp and listing plans.
Lucid Group Inc LCID.O gained 1.4% on plans to lay off about 18% of its workforce.
Advancing issues outnumbered decliners by a 5.60-to-1 ratio on the NYSE and 3.07-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and 41 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Dhanya Ann Thoppil and Vinay Dwivedi)
((Amruta.Khandekar@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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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose 1.3% to 2.3%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, while growing hopes that the Federal Reserve could pause interest rate hikes lifted shares of tech and growth companies. Michael Barr, the Fed's vice chairman for supervision, will testify before Congress for a second day after he criticized SVB's risk management on Tuesday.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose 1.3% to 2.3%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, while growing hopes that the Federal Reserve could pause interest rate hikes lifted shares of tech and growth companies. The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose 1.3% to 2.3%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, while growing hopes that the Federal Reserve could pause interest rate hikes lifted shares of tech and growth companies. Market worries about the banking system have ebbed following a U.S. regulator-backed sale of failed lender Silicon Valley Bank's assets as well as lack of fresh signs of trouble in the sector since the buyout deal.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose 1.3% to 2.3%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, while growing hopes that the Federal Reserve could pause interest rate hikes lifted shares of tech and growth companies. The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
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16592.0
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2023-03-29 00:00:00 UTC
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Why Investors Took a Shine to Apple Stock Today
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AAPL
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https://www.nasdaq.com/articles/why-investors-took-a-shine-to-apple-stock-today
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nan
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nan
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What happened
Pushing into a new segment of finance pushed Apple's (NASDAQ: AAPL) share price up on Wednesday. The popular tech stock added nearly 2% to its value, outpacing the S&P 500's 1.4% increase on the day.
So what
Not known as the most creative namer of products, Apple announced its Apple Pay Later service on Tuesday afternoon. The buy now, pay later (BNPL) arrangement will allow customers to divide their Apple purchases into four payments. These can be spread over as much as six weeks without incurring interest or fees on top of the purchase amount.
As with the company's branded Apple Card credit product, Apple Pay Later users can opt to track, manage -- and, of course, repay -- their loans from the tech giant through a widget in the Apple Wallet app.
The service, which will initially be available for users in the U.S. only, provides loans ranging from $50 to $1,000. The borrowed funds can, naturally, be spent through online and in-app purchases in the Apple ecosystem, but also at merchants that offer Apple Pay as a transaction option.
Now what
At the moment, only a pre-release version of Apple Pay Later is available, and by invitation at that. The company said it aims to offer it to all eligible users over the coming months. It did not get more specific.
The company quoted its vice president of Apple Pay and Apple Wallet Jennifer Bailey as saying that, "There's no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we're excited to provide our users with Apple Pay Later."
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. 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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What happened Pushing into a new segment of finance pushed Apple's (NASDAQ: AAPL) share price up on Wednesday. The buy now, pay later (BNPL) arrangement will allow customers to divide their Apple purchases into four payments. Many people are looking for flexible payment options, which is why we're excited to provide our users with Apple Pay Later."
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What happened Pushing into a new segment of finance pushed Apple's (NASDAQ: AAPL) share price up on Wednesday. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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What happened Pushing into a new segment of finance pushed Apple's (NASDAQ: AAPL) share price up on Wednesday. As with the company's branded Apple Card credit product, Apple Pay Later users can opt to track, manage -- and, of course, repay -- their loans from the tech giant through a widget in the Apple Wallet app. The borrowed funds can, naturally, be spent through online and in-app purchases in the Apple ecosystem, but also at merchants that offer Apple Pay as a transaction option.
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What happened Pushing into a new segment of finance pushed Apple's (NASDAQ: AAPL) share price up on Wednesday. As with the company's branded Apple Card credit product, Apple Pay Later users can opt to track, manage -- and, of course, repay -- their loans from the tech giant through a widget in the Apple Wallet app. That's right -- they think these 10 stocks are even better buys.
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16593.0
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2023-03-29 00:00:00 UTC
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Thursday Predictions: 3 Hot Stocks for Tomorrow
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AAPL
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https://www.nasdaq.com/articles/thursday-predictions%3A-3-hot-stocks-for-tomorrow-2
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market continues to grind in a relatively tight trading range. There have been some stocks that put together a strong rally and others that continue to chug along sideways. The stocks that are rallying are inspiring traders to look at the hot stocks for tomorrow.
Tech continues to lead the way higher for equities. Will that continue into quarter-end on Friday?
All eyes seem to be on these tech names, as they have been the indisputable first-quarter leaders for 2023. The Nasdaq is up about 12% so far this year. The next best is the S&P 500, up “just” 3.4%. The Dow Jones Industrial Average and Russell 2000 are slightly negative year to date.
Let’s look at a few of the hot stocks for tomorrow — Thursday.
Hot Stocks for Tomorrow: RH (RH)
Click to Enlarge
Source: Chart courtesy of TrendSpider
On Wednesday evening, we’ll hear from RH (NYSE:RH) and get an idea of how the higher-end consumer is doing. Are they spending? Are they pulling back? RH CEO Gary Friedman generally gives pretty good color as to what the consumer has been up to and we’ll look to get a better picture of it once RH reports.
Worth mentioning is Lululemon Athletica (NASDAQ:LULU), which opened higher by 14.6% on Wednesday and has rallied in seven straight sessions. The big upside move comes after better-than-expected earnings.
Lululemon’s earnings would suggest that consumers are still spending on premium goods and services. That should bode well for RH, even though retail as a whole has not been that impressive this quarter.
The Chart: On the upside, bulls want to see RH regain the $255 to $256 area. That would put it over last week’s high and regain prior uptrend support (blue line). Above that and $275 will be in focus, as it marks the 200-day moving average. Lastly, the $293 to $300 zone is key. That’s the 50% retracement and the 50-day moving average.
On the downside, the recent lows near $235 are key, followed by the fourth-quarter low of $227. Below the latter and the 52-week low near $210 could be vulnerable.
Hot Stocks for Tomorrow: Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. For one quarter, that’s a pretty strong return.
Apple can play a massive role in the overall direction of the stock market. With a market capitalization of more than $2.5 trillion, it’s the largest U.S. stock. Apple has a 7.1% weighting in the S&P 500, a 3.2% weighting in the Dow Jones and a 12.3% weighting in the Nasdaq 100.
The stock recently broke out over the fourth-quarter high of $157.50 and is so far holding above that mark. However, if it rotates back below this level and more weakness ensues, than the Nasdaq — the market leader so far this year — could struggle to rally.
The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. If it can clear the $162 area, then the 78.6% retracement is in play. Above that and $170-plus is on the table.
On the downside, bulls don’t necessarily want to see a retest of the $155 to $156 area, but if it happens, they’ll want Apple to stay above it and the 21-day moving average. Below and we could see $150 or lower.
Is Apple being marked up into quarter-end? It may be, so keep an eye on this one both Thursday and Friday, as well as into early April.
Invesco QQQ Trust Series (QQQ)
Click to Enlarge
Source: Chart courtesy of TradingView
Used by many to trade the Nasdaq, the Invesco QQQ Trust Series (NASDAQ:QQQ) is one of the top ETFs in the U.S. by trading volume. In regards to Apple, it has a 12.1% weighting in the QQQ, slightly edging out the 11.9% weighting by Microsoft (NASDAQ:MSFT).
As you can see, these two stocks make up almost 25% of the QQQ ETF. More than 50% of the ETF is weighted to its top 10 holdings, which mostly includes FAANG, Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
The point is, the Nasdaq — and thus the QQQ ETF — is by far the top-performing U.S. index so far this year. While it has been trading well in 2023 and is up about 10% from the mid-March low, it’s still struggling to clear a few key measures on the chart.
The Chart: The QQQ “looked above” the February high at $313.68 and quickly pulled back. While buyers continue to gobble up the dips, bulls would really like to see the QQQ clear the February high (and soon, the March high).
On the plus side, the QQQ has started making a series of higher lows, has cleared downtrend resistance (blue line on the weekly chart) and is back above all of its daily and weekly moving averages.
On the list of negatives, it’s struggling with last month’s high, as well as the VWAP measure anchored back to the all-time high. In fact, this measure has stopped each rally in its tracks. A move over this measure could open the door back to $330 or higher.
On the date of publication, Bret Kenwell held a long position in AAPL. 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 Thursday Predictions: 3 Hot Stocks for Tomorrow 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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Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. Hot Stocks for Tomorrow: Apple (AAPL) The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50.
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Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. Hot Stocks for Tomorrow: Apple (AAPL) The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50.
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Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50.
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Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50.
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2023-03-29 00:00:00 UTC
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Best Blue Chip Stocks To Invest In Right Now? 3 To Know
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AAPL
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https://www.nasdaq.com/articles/best-blue-chip-stocks-to-invest-in-right-now-3-to-know
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nan
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nan
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Blue chip stocks are the metaphorical gold standard of the investing world. Generally, they represent well-established, financially stable, and consistently profitable companies that have demonstrated a long track record of success. These stocks are typically issued by large-cap companies. In fact, they are often industry leaders. Mainly because of their proven ability to weather economic downturns and continue to deliver robust earnings to their shareholders. Named after the highest-valued poker chip, “blue chip” has become synonymous with strength, reliability, and a lower level of risk compared to other stocks.
Investing in blue chip stocks is often considered a prudent strategy for both novice and experienced investors. This comes as they generally provide a stable source of income through dividends. As well as the potential for long-term capital appreciation.
While blue chip stocks may not offer the dramatic price swings or explosive growth potential of smaller, more speculative investments, they do provide a relatively more secure option for investors seeking to grow their wealth over time. Their resilience and ability to perform consistently, even in the face of challenging market conditions, make them a potential cornerstone of many diversified investment portfolios. Keeping this in consideration, check out these three blue chip stocks for your stock market watchlist right now.
Blue Chip Stocks To Watch Today
Apple Inc. (NASDAQ: AAPL)
Microsoft Corporation (NASDAQ: MSFT)
Johnson & Johnson (NYSE: JNJ)
Apple (AAPL Stock)
First up, Apple (AAPL) is a multinational technology company. The company is known for its range of consumer electronics, software, and services. Most notably these include the iPhone, iPad, Mac computers, and Apple Watch.
Today, Apple has announced that its annual Worldwide Developers Conference (WWDC) will take place online from June 5 to 9, 2023. WWDC23, which is free for all developers, will showcase the latest developments in iOS, iPadOS®, macOS®, watchOS®, and tvOS®. In addition to unveiling new technologies and tools, the event will give developers unprecedented access to Apple engineers, supporting their efforts to create innovative apps and bring their ideas to life.
In 2023 year-to-date, shares of Apple stock have surged by 28.54% so far. While, during Wednesday afternoon trading action, AAPL stock is up 1.99% on the day at $160.78 a share.
Source: TD Ameritrade TOS
[Read More] REIT Stocks To Buy Now? 2 To Know
Microsoft Corp. (MSFT Stock)
Second, Microsoft (MSFT) is a leading technology company that develops, manufactures, licenses, and supports various software products. Such as the Windows operating system, Office suite, and Azure cloud computing platform.
Earlier this week, Internews, Microsoft, and the U.S. Agency for International Development (USAID) announced a new public-private partnership aimed at creating a Media Viability Accelerator, a data-driven digital platform designed to support independent news media in achieving financial self-sufficiency. “Independent journalism is essential to a healthy and vibrant democracy, but technology has unfortunately eroded traditional ad-based business models,” commented Microsoft’s Vice Chair and President Brad Smith.
Since the start of 2023, Microsoft stock has increased by 17.05% year-to-date. Meanwhile, during Wednesday’s power hour trading session, shares of MSFT stock are trading higher on the day by 1.89% at $280.44 a share.
Source: TD Ameritrade TOS
[Read More] Best Dividend Stocks To Watch In 2023? 3 To Know
Johnson & Johnson (JNJ Stock)
Last but not least, Johnson & Johnson (JNJ) is a multinational healthcare company that develops and markets a wide range of medical devices, pharmaceuticals, and consumer packaged goods, including well-known brands like Tylenol, Band-Aid, and Neutrogena.
Earlier in the month, Johnson & Johnson announced the time and date it will release its Q1 2023 financial results. In detail, the company is set to report its first quarter 2023 results on Tuesday, April 18, 2023, ahead of the U.S. stock market opening. To briefly recap, in Q4 2022 Johnson & Johnson notched in earnings of $2.35 per share, and revenue of $23.7 billion.
Contrary to the other names mentioned above, shares of JNJ stock have fallen by 14.14% year-to-date so far. Though, during Wednesday’s power hour trading session, Johnson and Johnson’s stock is trading modestly higher by 0.76% at $152.99 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Blue Chip Stocks To Watch Today Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Johnson & Johnson (NYSE: JNJ) Apple (AAPL Stock) First up, Apple (AAPL) is a multinational technology company. While, during Wednesday afternoon trading action, AAPL stock is up 1.99% on the day at $160.78 a share. While blue chip stocks may not offer the dramatic price swings or explosive growth potential of smaller, more speculative investments, they do provide a relatively more secure option for investors seeking to grow their wealth over time.
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Blue Chip Stocks To Watch Today Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Johnson & Johnson (NYSE: JNJ) Apple (AAPL Stock) First up, Apple (AAPL) is a multinational technology company. While, during Wednesday afternoon trading action, AAPL stock is up 1.99% on the day at $160.78 a share. Meanwhile, during Wednesday’s power hour trading session, shares of MSFT stock are trading higher on the day by 1.89% at $280.44 a share.
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Blue Chip Stocks To Watch Today Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Johnson & Johnson (NYSE: JNJ) Apple (AAPL Stock) First up, Apple (AAPL) is a multinational technology company. While, during Wednesday afternoon trading action, AAPL stock is up 1.99% on the day at $160.78 a share. 3 To Know Johnson & Johnson (JNJ Stock) Last but not least, Johnson & Johnson (JNJ) is a multinational healthcare company that develops and markets a wide range of medical devices, pharmaceuticals, and consumer packaged goods, including well-known brands like Tylenol, Band-Aid, and Neutrogena.
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Blue Chip Stocks To Watch Today Apple Inc. (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Johnson & Johnson (NYSE: JNJ) Apple (AAPL Stock) First up, Apple (AAPL) is a multinational technology company. While, during Wednesday afternoon trading action, AAPL stock is up 1.99% on the day at $160.78 a share. 2 To Know Microsoft Corp. (MSFT Stock) Second, Microsoft (MSFT) is a leading technology company that develops, manufactures, licenses, and supports various software products.
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16595.0
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2023-03-29 00:00:00 UTC
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The Most Important Warren Buffett Stock for Investors: His Own
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AAPL
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https://www.nasdaq.com/articles/the-most-important-warren-buffett-stock-for-investors%3A-his-own
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nan
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nan
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Investors could do worse than buying stocks owned by Warren Buffett. Some of the most famous Warren Buffett stocks include Apple Inc. (NASDAQ: AAPL), The Coca-Cola Company (NYSE: KO) and Bank of America Co. (NYSE: BAC). But the one stock that may be the best for investors to own is Buffett's holding company, Berkshire Hathaway Inc. (NYSE: BRK.B).
By investing in BRK.B stock, investors can enjoy many benefits of Buffett's stock-picking acumen. The company's holdings total over $334 billion and include the names mentioned above, along with companies like Chevron Corporation (NYSE: CVX) and American Express Company (NYSE: AXP). Earlier this year, American Express chief executive officer (CEO) Stephen Squeri remarked that having Berkshire Hathaway own the company's stock was "sort of like a Good Housekeeping seal of approval."
However, many investors don't make the connection between the companies that are part of the Berkshire Hathaway portfolio and the company's business model. But in a financial world full of unforced errors regarding interest rate risks, it's worth looking at the structure of Berkshire Hathaway.
The Key Behind the Buffett Model
Berkshire Hathaway is a conglomerate that reaches many sectors, including retail and energy. But the key driver of the company's overall performance is its insurance business. The purchase of the National Indemnity Company was Buffett's first acquisition when he took over Berkshire.
This gives Berkshire Hathaway access to the float from insurance premiums, which serves as a cash cow for the company. "Float" is the money the company receives from its policyholders and can hold onto and invest until it needs to pay claims.
In his most recent letter to shareholders, Buffett noted that this float "has increased 8,000-fold through acquisitions, operations and innovations." Unlike bank deposits, Berkshire doesn't have to worry about insurance clients digitally withdrawing their funds en masse. That means the company's equity portfolio, which was about $335 billion last year, is secure.
And even inside that low-risk model, Berkshire still has a capital surplus of nearly $300 billion in its insurance units. Once again, unlike the banks, Berkshire holds cash — mostly in short-term Treasury bills and stocks, not bonds. As Treasury bills will reprice in yield, Berkshire will benefit from more interest income, already at $1.7 billion last year, a gain of 186%.
Berkshire Hathaway's operating income should rise 11% this year to about $34 billion after taxes. The stock is trading for about 20 times projected 2023 earnings, below its historical average of 21 times, and for about 1.4 times its year-end 2022 book value, in line with the five-year average.
The Best May Still be Yet to Come
As Buffett pointed out in the company's annual letter to shareholders, 2022 was a good year by many measures. The company generated operating earnings after taxes of $30.8 billion. And at the end of the year, Berkshire Hathaway had nearly $129 billion in available cash. One of Buffett's fundamental investing precepts is to be greedy when others are fearful. That kind of cash balance gives Buffett all types of ammunition if he decides to make some aggressive bets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of the most famous Warren Buffett stocks include Apple Inc. (NASDAQ: AAPL), The Coca-Cola Company (NYSE: KO) and Bank of America Co. (NYSE: BAC). Earlier this year, American Express chief executive officer (CEO) Stephen Squeri remarked that having Berkshire Hathaway own the company's stock was "sort of like a Good Housekeeping seal of approval." But in a financial world full of unforced errors regarding interest rate risks, it's worth looking at the structure of Berkshire Hathaway.
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Some of the most famous Warren Buffett stocks include Apple Inc. (NASDAQ: AAPL), The Coca-Cola Company (NYSE: KO) and Bank of America Co. (NYSE: BAC). But the one stock that may be the best for investors to own is Buffett's holding company, Berkshire Hathaway Inc. (NYSE: BRK.B). Once again, unlike the banks, Berkshire holds cash — mostly in short-term Treasury bills and stocks, not bonds.
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Some of the most famous Warren Buffett stocks include Apple Inc. (NASDAQ: AAPL), The Coca-Cola Company (NYSE: KO) and Bank of America Co. (NYSE: BAC). But the one stock that may be the best for investors to own is Buffett's holding company, Berkshire Hathaway Inc. (NYSE: BRK.B). The company's holdings total over $334 billion and include the names mentioned above, along with companies like Chevron Corporation (NYSE: CVX) and American Express Company (NYSE: AXP).
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Some of the most famous Warren Buffett stocks include Apple Inc. (NASDAQ: AAPL), The Coca-Cola Company (NYSE: KO) and Bank of America Co. (NYSE: BAC). But the one stock that may be the best for investors to own is Buffett's holding company, Berkshire Hathaway Inc. (NYSE: BRK.B). In his most recent letter to shareholders, Buffett noted that this float "has increased 8,000-fold through acquisitions, operations and innovations."
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16596.0
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2023-03-29 00:00:00 UTC
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US STOCKS-Wall St climbs as bank fears ease, rate-hike pause hopes grow
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-bank-fears-ease-rate-hike-pause-hopes-grow
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, with some upbeat earnings reports and rising expectations about the Federal Reserve pausing interest rate hikes boosting sentiment further.
Micron Technology Inc MU.Oadvanced 5.8% to the top of the S&P 500 after the chipmaker forecast artificial intelligence will boost its 2025 sales, lifting the Philadelphia semiconductor index up 2.3%.
Lululemon Athletica Inc LULU.O jumped 12.9% after an upbeat annual results forecast, giving a big boost to the Nasdaq .IXIC and helping it outperform peers.
Meanwhile, market worries about the banking system have ebbed following a U.S. regulator-backed sale of failed lender Silicon Valley Bank's assets as well as lack of fresh signs of trouble in the sector since the buyout deal.
"Markets have been hit by waves of bad news, and we have hit a small pocket of stability with a few decent earnings and the bank crisis seeming closer to being over," said Rick Meckler, partner at Cherry Lane Investments.
Regional U.S. bank stocks including Truist Financial Corp TFC.N, Western Alliance Bancorp WAL.N and First Republic Bank FRC.N rose between 2% and 5%.
Larger peers Bank of America BAC.N, Goldman Sachs GS.N and JPMorgan Chase & Co JPM.N climbed 0.2% to 1.3%.
The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
The Fed will make its interest rate decisions from here on a meeting-to-meeting basis, taking into account the existing financial conditions, Fed Vice Chair for Supervision Michael Barr said in the second day of congressional hearings into the collapse of Silicon Valley Bank.
A key inflation reading expected at the end of the week will provide more clues on the Fed's monetary tightening plans.
Traders' bets for no rate hike by the Fed in May rose to 59.5% from 52.8% a day earlier, with the remaining bets for a 25-basis-point increase, according to CME Group's Fedwatch tool.
Rate-sensitive growth names such as Amazon.com Inc AMZN.O and Tesla Inc TSLA rose 2.6% and 1.4%, respectively, lifting consumer discretionary stocks .SPLRCD up about 1.3%. Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose more than 1%, boosting the information technology .SPLRCT index.
Real estate stocks .SPLRCR also advanced 1.7% to lead sectoral gains.
The CBOE volatility index .VIX, known as Wall Street's fear gauge, fell to its lowest since March 9, reflecting easing investor anxiety.
At 11:42 a.m. ET, the Dow Jones Industrial Average .DJI was up 192.99 points, or 0.60%, at 32,587.24, the S&P 500 .SPX was up 38.38 points, or 0.97%, at 4,009.65, and the Nasdaq Composite .IXIC was up 147.75 points, or 1.26%, at 11,863.83.
Among other major stock moves, U.S.-listed shares of Alibaba Group Holding Ltd BABA.N rose 1.7% to a fresh six-week high, a day after rallying on the internet giant's revamp and listing plans.
Advancing issues outnumbered decliners by a 3.67-to-1 ratio on the NYSE and by a 1.87-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 46 new highs and 88 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Dhanya Ann Thoppil and Vinay Dwivedi)
((Amruta.Khandekar@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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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose more than 1%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, with some upbeat earnings reports and rising expectations about the Federal Reserve pausing interest rate hikes boosting sentiment further. The CBOE volatility index .VIX, known as Wall Street's fear gauge, fell to its lowest since March 9, reflecting easing investor anxiety.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose more than 1%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, with some upbeat earnings reports and rising expectations about the Federal Reserve pausing interest rate hikes boosting sentiment further. The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose more than 1%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, with some upbeat earnings reports and rising expectations about the Federal Reserve pausing interest rate hikes boosting sentiment further. Meanwhile, market worries about the banking system have ebbed following a U.S. regulator-backed sale of failed lender Silicon Valley Bank's assets as well as lack of fresh signs of trouble in the sector since the buyout deal.
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Tech majors Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Crop NVDA.O rose more than 1%, boosting the information technology .SPLRCT index. By Amruta Khandekar and Ankika Biswas March 29 (Reuters) - Wall Street indexes rose on Wednesday as worries about stress in the banking sector eased, with some upbeat earnings reports and rising expectations about the Federal Reserve pausing interest rate hikes boosting sentiment further. The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, has led markets to reprice expectations of future monetary tightening by the Federal Reserve.
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16597.0
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2023-03-29 00:00:00 UTC
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6 Catalysts to Lead to a 2023 Equity Surge
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AAPL
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https://www.nasdaq.com/articles/6-catalysts-to-lead-to-a-2023-equity-surge
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nan
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nan
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Market Performance Masks a Challenging Investing Climate
Though the performance of different parts of the equity market often diverges, 2023 is off to a historic start from this perspective. The tech-heavy Nasdaq 100 ETF QQQ is off to a scorching start, up nearly 16% through roughly three months of action. Conversely, the small-cap Russell 2000 Index ETF (IWM), which is chock full of financials and regional banks, has surrendered all its year-to-date progress and is slightly red.
Regardless of which index you choose to look at, it is hard to argue that the market hasn’t been resilient. Banking institutions are failing by the handful. Inflation remains stubbornly high despite the rapid transition of the Federal Reserve’s “dovish” stance to one of the most “hawkish” stances in recent history. Furthermore, money flow has been hyper-focused on mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT). Despite the challenging environment, six major catalysts may send stocks surging into year-end, including:
“Fresh powder” on the sidelines: The amount of assets held by money-market funds has ballooned to nearly $5.5 trillion over the past week – an all-time high. In other words, investors are swapping “risk-on” investments in exchange for “risk-off” money market-market funds (which are paying the highest interest in years). Despite the fact that there are record flows into the safe-haven investment, markets have held well. If markets continue to stabilize, plenty of money will be on the sideline to push them higher into year end.
The AI Revolution: One week ago on financial television, Nvidia (NVDA) CEO Jensen Huang proclaimed “The iPhone moment of A.I has started.” Meanwhile, OpenAI and Microsoft’s (MSFT) ChatGPT is the new record holder for the fastest-growing user base in history. Though the mega-cap tech players are the biggest beneficiaries thus far, smaller companies such as C3.ai (AI) are beginning to benefit and garner investor attention.
Image Source: Zacks Investment Research
While A.I has done little to boost bottom-line growth so far, it is likely just a matter of time. Game-changing innovations lead to higher earnings, and higher earnings lead to an appreciating equity market.
Wall Street is a discounting device: Speaking of earnings, investors must study the history of stock prices in relation to earnings. When viewing the past two major corrections, investors will learn that a turn-up in earnings is not a prerequisite for a turn in the market. In 2008 and 2020, the stock market turned prior to earnings turning up. In other words, investors “discounted” future earnings ahead preemptively.
Image Source: Zacks Investment Research
Markets prefer “the wall of worry”: Banks collapsing, geopolitical tensions, and high inflation is causing a lot of investors to doubt the market. Don’t believe me? The S&P 500 put/call ratio is above 1, meaning more equity options traders are buying puts (bearish) than calls (bullish). If the majority of investors are on the same side of the boat it is not healthy for the market. Some level of doubt can help to propel markets higher.
The banking crisis is not “systemic”: Regional banks such as Silicon Valley Bank (SIVB) and First Republic Bank (FRC) found themselves in trouble after not preparing properly for the rapid interest rate hike from the Federal Reserve. However, unlike the 2008 Global Financial Crisis, 2023’s banking woes are not systemic (for now). If smaller, weaker banks with liquidity crunches give way, they may stand to benefit larger, better positioned banks. First Citizens Bank (FCNCA) is a prime example. The bank is up more than 50% this week after purchasing SVB’s distressed assets for pennies on the dollar.
Image Source: Zacks Investment Research
Pre-election year seasonality: The years before the presidential election (like this year) tend to be the strongest on average from a historical perspective.
Takeaway
With all that is going on in 2023, investors can easily fall into the trap of being negative. The headlines are scary, areas of the market are volatile, and the future is always uncertain. However, investors who can look past the obvious and go against the crowd will likely have the upper hand moving forward.
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iShares Russell 2000 ETF (IWM): 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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Furthermore, money flow has been hyper-focused on mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports C3.ai, Inc. (AI) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. Conversely, the small-cap Russell 2000 Index ETF (IWM), which is chock full of financials and regional banks, has surrendered all its year-to-date progress and is slightly red.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports C3.ai, Inc. (AI) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. Furthermore, money flow has been hyper-focused on mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT). Image Source: Zacks Investment Research While A.I has done little to boost bottom-line growth so far, it is likely just a matter of time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports C3.ai, Inc. (AI) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. Furthermore, money flow has been hyper-focused on mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT). Image Source: Zacks Investment Research Markets prefer “the wall of worry”: Banks collapsing, geopolitical tensions, and high inflation is causing a lot of investors to doubt the market.
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Furthermore, money flow has been hyper-focused on mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports C3.ai, Inc. (AI) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. When viewing the past two major corrections, investors will learn that a turn-up in earnings is not a prerequisite for a turn in the market.
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16598.0
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2023-03-29 00:00:00 UTC
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Why Globalstar Stock Leaped 11% Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-globalstar-stock-leaped-11-higher-today
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nan
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nan
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What happened
It's almost always good news when a company dramatically improves its financing situation. Such was the case on Tuesday with satellite specialist Globalstar (NYSEMKT: GSAT), which saw its share price rise by just under 11% thanks to a new bond sale. That increase was far higher than the incremental rise of the S&P 500 index on the day, which bumped up a comparatively light 1.4%.
So what
Globalstar, perhaps best known as the provider of satellite technology for recent model iPhones from tech superstar Apple, made its announcement before market open. It said that it has entered into a agreement to sell $200 million worth of senior notes. The buyer is alternative investment firm Värde Partners.
The notes carry an annual interest rate of 13% and mature in 2029. Globalstar said it expects to close the sale on or around this Friday, March 31.
The company said it will utilize the proceeds mainly to retire all debt stemming from a 2019 facility agreement. The total outstanding amount of these borrowings stands at roughly $148 million. The remaining funds are to be used to pay fees, and for "general corporate purposes." Globalstar did not elaborate on the latter.
Now what
In its press release on the notes sale, Globalstar quoted its CFO Rebecca Clary as saying that the deal "is a critical step in a series of achievements over the last several months to secure our balance sheet."
"Despite a tough capital markets environment, we were able to successfully complete this financing," she added.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. 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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Such was the case on Tuesday with satellite specialist Globalstar (NYSEMKT: GSAT), which saw its share price rise by just under 11% thanks to a new bond sale. So what Globalstar, perhaps best known as the provider of satellite technology for recent model iPhones from tech superstar Apple, made its announcement before market open. Now what In its press release on the notes sale, Globalstar quoted its CFO Rebecca Clary as saying that the deal "is a critical step in a series of achievements over the last several months to secure our balance sheet."
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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. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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10 stocks we like better than Globalstar When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Eric Volkman has positions in Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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It said that it has entered into a agreement to sell $200 million worth of senior notes. 10 stocks we like better than Globalstar When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Eric Volkman has positions in Apple.
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16599.0
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2023-03-29 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-7
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nan
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nan
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The iShares Russell Top 200 Growth ETF (IWY) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $5.67 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. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.82%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 44.90% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 43.71% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has added about 11.11% so far this year and is down about -15.99% in the last one year (as of 03/29/2023). In the past 52-week period, it has traded between $117.55 and $161.96.
The ETF has a beta of 1.07 and standard deviation of 24.46% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWY is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $77.69 billion in assets, Invesco QQQ has $166.60 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): 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 $5.67 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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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell Top 200 Growth ETF (IWY) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The iShares Russell Top 200 Growth ETF (IWY) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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