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16600.0
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2023-03-29 00:00:00 UTC
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Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-ishares-russell-1000-growth-etf-iwf-be-on-your-investing-radar-6
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell 1000 Growth ETF (IWF), a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $61.01 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While 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. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.88%.
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 41.60% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.
The ETF has added about 9.98% so far this year and is down about -15.33% in the last one year (as of 03/29/2023). In the past 52-week period, it has traded between $207.03 and $283.21.
The ETF has a beta of 1.08 and standard deviation of 24.41% for the trailing three-year period, making it a medium risk choice in the space. With about 517 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 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, IWF is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $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
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 Growth ETF (IWF): 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 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 $61.01 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell 1000 Growth ETF (IWF), a passively managed exchange traded fund launched on 05/22/2000.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell 1000 Growth ETF (IWF), a passively managed exchange traded fund launched on 05/22/2000.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell 1000 Growth ETF (IWF), a passively managed exchange traded fund launched on 05/22/2000.
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16601.0
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2023-03-29 00:00:00 UTC
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This Is Warren Buffett's No. 1 Stock to Buy During a Bear Market
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AAPL
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https://www.nasdaq.com/articles/this-is-warren-buffetts-no.-1-stock-to-buy-during-a-bear-market
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Few investors have a knack for making money on Wall Street quite like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett. Without using any fancy charting tools or predictive software, the Oracle of Omaha has doubled up the average annual total return, including dividends paid, of the benchmark S&P 500 since he became CEO (19.8% versus 9.9%). On an aggregate return basis, the 3,787,464% gain for Berkshire Hathaway's Class A shares (BRK.A), through Dec. 31, 2022, is 153 times better than the S&P 500's return, including dividends.
It's this phenomenal track record that has new and tenured investors paying close attention to what Warren Buffett and his investing lieutenants, Todd Combs and Ted Weschler, are buying and selling during the current bear market.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett and his team have put plenty of cash to work during the current bear market
The Oracle of Omaha put tens of billions of dollars to work when all three major U.S. stock indexes entered a bear market in 2022. One stock that's been consistently purchased since the beginning of last year is Occidental Petroleum (NYSE: OXY).
Occidental is an integrated energy stock that generates most of its revenue from its upstream drilling segment. With Berkshire Hathaway purchasing over 208 million shares of Occidental, the belief has to be that oil prices will remain above their historic average.
This thesis is backed by Russia's invasion of Ukraine, along with three years of capital underinvestment from global energy majors because of pandemic-related demand uncertainty. If the global energy supply chain remains broken, it would seemingly be a positive for the spot price of West Texas Intermediate oil.
Warren Buffett has also been actively adding to Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Even though Buffett has never been much of a research buff when it comes to high-tech companies, Apple has made it easy on the Oracle of Omaha by checking all the appropriate boxes.
Apple is one of the most-recognized brands in the world, it has an exceptionally loyal customer base, and its innovative capacity helped generate more than $109 billion in operating cash flow over the trailing 12 months. Whether it's the physical products that endeared users to the brand (iPhone, Mac, and iPad), or the company's ongoing pivot to subscription services, it's very clear that Apple is a company that consumers trust.
I'd be remiss if I didn't also add that Apple has what's arguably the most-impressive capital-return program on the planet. Despite being beat out by Microsoft for the largest nominal-dollar annual dividend, Apple takes the crown for having repurchased well over $550 billion worth of its common stock since the beginning of 2013.
Warren Buffett and his team have also been avid buyers of media stock Paramount Global (NASDAQ: PARA) during the current bear market. It's not uncommon for ad-driven operating models to come under pressure when the risk of a U.S. recession rises. There's no question that Paramount's legacy TV Media segment is contending with some level of weakness tied to an advertising slowdown.
But Buffett and his investing crew are looking past what's likely nothing more than a minor bump in the road for Paramount Global. The company's streaming subscriber count has been rocketing higher, its film division gained new life after the release of Top Gun: Maverick last summer, and Pluto TV is perfectly positioned to thrive as the leading ad-supported, free streaming service. Best of all, Berkshire Hathaway is netting a high yield from Paramount while it patiently waits for the ad environment to rebound.
Image source: Getty Images.
The No. 1 stock Warren Buffett buys during bear markets
Following Warren Buffett's buying and selling activity is typically made easy thanks to the requirement that money managers with at least $100 million in assets under management file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter. But not all of Buffett's buying and selling activity is necessarily going to be registered in its 13F.
For instance, I've previously pointed out that Berkshire Hathaway owns a specialty investment firm -- New England Asset Management -- as a result of its acquisition of General Re in 1998. This $5.4 billion portfolio can be tracked via New England Asset Management's 13F filings.
Berkshire Hathaway's earnings reports also contain valuable nuggets of data that you won't find in the company's 13F filings. Specifically, these earnings reports detail buying activity in what's easily Warren Buffett's No. 1 stock to buy during bear markets. That stock is none other than shares of his own company, Berkshire Hathaway.
The Oracle of Omaha has always believed that share repurchases are a powerful tool profitable businesses can use to build shareholder value. However, prior to July 17, 2018, Buffett and executive vice chairman Charlie Munger were nothing more than spectators on the buyback front.
The rules governing share buybacks required Berkshire Hathaway stock to trade at or below 120% of book value. For well over a half-decade prior to mid-July 2018, Berkshire's stock never fell to or below this level, which meant Buffett and Munger weren't able to repurchase any of their own company's stock.
On July 17, 2018, things changed. The Berkshire board passed new measures that took Buffett and Munger off the proverbial bench and allowed them to take some home run swings with their company's ever-growing treasure chest of cash. The new measures allowed Berkshire Hathaway stock to be repurchased without any ceiling as long as the company had at least $30 billion in cash, cash equivalents, and U.S. Treasuries available, and both Buffett and Munger agreed it was priced below intrinsic value.
Every single quarter since this change was made, Warren Buffett and Charlie Munger have bought back Berkshire stock. In fact, Berkshire Hathaway is the only stock the Oracle of Omaha purchased in each of the past two bear markets (the COVID crash and the current bear market). All told, $66 billion worth of Berkshire Hathaway stock has been bought back in less than five years.
As noted, buying back stock and steadily reducing the outstanding share count is an easy way to help long-term shareholders build wealth. Over time, existing stakeholders will own a larger percentage of the company as the number of outstanding shares declines.
Buybacks can make companies appear more attractive to fundamentally focused investors as well. Businesses with steady or growing net income that are decreasing their outstanding share count through buybacks should see their earnings per share climb as a result over time.
But most importantly, repurchasing $66 billion in stock is a crystal-clear message to shareholders and Wall Street that Buffett is confident in the business he and his team have built. Many of the companies in Berkshire's $328 billion investment portfolio are cyclical businesses that are positioned to thrive during long-winded periods of expansion. The Oracle of Omaha is well aware that the current turbulent environment will eventually pass -- and he's thus far been willing to bet $66 billion on that assessment.
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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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Warren Buffett has also been actively adding to Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Without using any fancy charting tools or predictive software, the Oracle of Omaha has doubled up the average annual total return, including dividends paid, of the benchmark S&P 500 since he became CEO (19.8% versus 9.9%). It's this phenomenal track record that has new and tenured investors paying close attention to what Warren Buffett and his investing lieutenants, Todd Combs and Ted Weschler, are buying and selling during the current bear market.
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Warren Buffett has also been actively adding to Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Few investors have a knack for making money on Wall Street quite like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett. Buffett and his team have put plenty of cash to work during the current bear market The Oracle of Omaha put tens of billions of dollars to work when all three major U.S. stock indexes entered a bear market in 2022.
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Warren Buffett has also been actively adding to Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). 1 stock Warren Buffett buys during bear markets Following Warren Buffett's buying and selling activity is typically made easy thanks to the requirement that money managers with at least $100 million in assets under management file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter. For well over a half-decade prior to mid-July 2018, Berkshire's stock never fell to or below this level, which meant Buffett and Munger weren't able to repurchase any of their own company's stock.
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Warren Buffett has also been actively adding to Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Warren Buffett and his team have also been avid buyers of media stock Paramount Global (NASDAQ: PARA) during the current bear market. 1 stock Warren Buffett buys during bear markets Following Warren Buffett's buying and selling activity is typically made easy thanks to the requirement that money managers with at least $100 million in assets under management file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter.
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16602.0
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2023-03-29 00:00:00 UTC
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Musk, experts urge pause on training AI systems more powerful than GPT-4
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AAPL
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https://www.nasdaq.com/articles/musk-experts-urge-pause-on-training-ai-systems-more-powerful-than-gpt-4
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By Jyoti Narayan and Krystal Hu
March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training systems more powerful than OpenAI's newly launched model GPT-4, they said in an open letter, citing potential risks to society and humanity.
The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Stability AI CEO Emad Mostaque, researchers at Alphabet-owned GOOGL.ODeepMind, as well as AI heavyweights Yoshua Bengio and Stuart Russell, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts.
"Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said.
The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities.
The letter comes as EU police force Europol on Monday joined a chorus of ethical and legal concerns over advanced AI like ChatGPT, warning about the potential misuse of the system in phishing attempts, disinformation and cybercrime. Musk, whose carmaker Tesla TSLA.Ois using AI for an autopilot system, has been vocal about his concerns about AI.
Since its release last year, Microsoft-backed OpenAI's ChatGPT has prompted rivals to accelerate developing similar large language models, and companies to integrate generative AI models into their products.
Sam Altman, chief executive at OpenAI, hasn't signed the letter, a spokesperson at Future of Life told Reuters. OpenAI didn't immediately respond to request for comment.
"The letter isn’t perfect, but the spirit is right: we need to slow down until we better understand the ramifications," said Gary Marcus, a professor at New York University who signed the letter. "They can cause serious harm... the big players are becoming increasingly secretive about what they are doing, which makes it hard for society to defend against whatever harms may materialize."
(Reporting by Jyoti Narayan in Bengaluru and Krystal Hu in New York. Editing by Gerry Doyle)
((Jyoti.Narayan@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jyoti Narayan and Krystal Hu March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training systems more powerful than OpenAI's newly launched model GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities. The letter comes as EU police force Europol on Monday joined a chorus of ethical and legal concerns over advanced AI like ChatGPT, warning about the potential misuse of the system in phishing attempts, disinformation and cybercrime.
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By Jyoti Narayan and Krystal Hu March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training systems more powerful than OpenAI's newly launched model GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Stability AI CEO Emad Mostaque, researchers at Alphabet-owned GOOGL.ODeepMind, as well as AI heavyweights Yoshua Bengio and Stuart Russell, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts. Sam Altman, chief executive at OpenAI, hasn't signed the letter, a spokesperson at Future of Life told Reuters.
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By Jyoti Narayan and Krystal Hu March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training systems more powerful than OpenAI's newly launched model GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Stability AI CEO Emad Mostaque, researchers at Alphabet-owned GOOGL.ODeepMind, as well as AI heavyweights Yoshua Bengio and Stuart Russell, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts. The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities.
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By Jyoti Narayan and Krystal Hu March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training systems more powerful than OpenAI's newly launched model GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter comes as EU police force Europol on Monday joined a chorus of ethical and legal concerns over advanced AI like ChatGPT, warning about the potential misuse of the system in phishing attempts, disinformation and cybercrime. Sam Altman, chief executive at OpenAI, hasn't signed the letter, a spokesperson at Future of Life told Reuters.
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16603.0
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2023-03-29 00:00:00 UTC
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Musk, experts urge pause on training of AI systems that can outperform GPT-4
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AAPL
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https://www.nasdaq.com/articles/musk-experts-urge-pause-on-training-of-ai-systems-that-can-outperform-gpt-4
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nan
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March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training of systems more powerful than GPT-4, they said in an open letter, citing potential risks to society and humanity.
The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Apple co-founder Steve Wozniak and Stability AI CEO Emad Mostaque, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts.
"Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said.
The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities.
The letter comes as EU police force Europol on Monday joined a chorus of ethical and legal concerns over advanced AI like ChatGPT, warning about the potential misuse of the system in phishing attempts, disinformation and cybercrime.
Since its release last year, Microsoft-backed OpenAI's ChatGPT has prompted rivals to launch similar products, and companies to integrate it or similar technologies into their apps and products.
(Reporting by Jyoti Narayan in Bengaluru and Krystal Hu in New York. Editing by Gerry Doyle)
((Jyoti.Narayan@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.
|
March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training of systems more powerful than GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities. The letter comes as EU police force Europol on Monday joined a chorus of ethical and legal concerns over advanced AI like ChatGPT, warning about the potential misuse of the system in phishing attempts, disinformation and cybercrime.
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March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training of systems more powerful than GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Apple co-founder Steve Wozniak and Stability AI CEO Emad Mostaque, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts. "Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said.
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March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training of systems more powerful than GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Apple co-founder Steve Wozniak and Stability AI CEO Emad Mostaque, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts. The letter also detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities.
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March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in training of systems more powerful than GPT-4, they said in an open letter, citing potential risks to society and humanity. The letter, issued by the non-profit Future of Life Institute and signed by more than 1,000 people including Musk, Apple co-founder Steve Wozniak and Stability AI CEO Emad Mostaque, called for a pause on advanced AI development until shared safety protocols for such designs were developed, implemented and audited by independent experts. "Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said.
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16604.0
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2023-03-29 00:00:00 UTC
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Should Invesco QQQ (QQQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-qqq-qqq-be-on-your-investing-radar-6
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
The fund is sponsored by Invesco. It has amassed assets over $166.60 billion, making it the largest 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. Additionally, growth stocks have a greater level of risk associated with them. 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.71%.
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 49.30% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.41% of total assets under management.
Performance and Risk
QQQ seeks to match the performance of the NASDAQ-100 Index before fees and expenses. The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
The ETF has gained about 15.51% so far this year and is down about -15.24% in the last one year (as of 03/29/2023). In the past 52-week period, it has traded between $260.10 and $369.30.
The ETF has a beta of 1.11 and standard deviation of 26% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco QQQ 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, QQQ is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. While iShares Russell 1000 Growth ETF has $61.01 billion in assets, Vanguard Growth ETF has $77.69 billion. IWF has an expense ratio of 0.18% and VUG charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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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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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): 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 Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $166.60 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco QQQ (QQQ): 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 Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). It has amassed assets over $166.60 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco QQQ (QQQ): 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 Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). While iShares Russell 1000 Growth ETF has $61.01 billion in assets, Vanguard Growth ETF has $77.69 billion.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): 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 Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
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16605.0
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2023-03-28 00:00:00 UTC
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Wall Street falls with tech shares as yields up
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AAPL
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https://www.nasdaq.com/articles/wall-street-falls-with-tech-shares-as-yields-up
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nan
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nan
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By Caroline Valetkevitch
March 28 (Reuters) - U.S. stocks were lower in afternoon trading on Tuesday, led by a nearly 1% decline in the Nasdaq as higher Treasury yields hit technology-related shares.
Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares, which tend to be the most negatively affected by rising yields, weighed the most on the S&P 500.
Yields have climbed from six-months lows hit Friday as investors have been cautiously optimistic that stress in the banking sector following some recent regional bank failures may be subsiding.
Shares of First Citizens BancShares Inc FCNCA.O were up about 2.2% on Tuesday, a day after the stock rose more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
U.S. consumer confidence unexpectedly increased in March, according to a survey, which also showed Americans are becoming a bit anxious about the labor market.
The rise in yields "is causing a little bit of cautiousness in the market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, while data suggested "consumers are not too cheerful about rates going up and the prospects of a recession."
Investors also paid close attention to comments in the first congressional hearing into the collapse of the two U.S. regional lenders. Both Democratic and Republican lawmakers pressed the Federal Reserve's top banking regulator on whether the central bank should have been more aggressive in its oversight of Silicon Valley Bank.
"If the market thinks there's not a banking crisis and that's in the rear view mirror, that would mean the Fed is able to hold rates higher for longer," said Irene Tunkel, chief U.S. equity strategist at BCA Research.
The Dow Jones Industrial Average .DJI fell 108.04 points, or 0.33%, to 32,324.04, the S&P 500 .SPX lost 19.76 points, or 0.50%, to 3,957.77 and the Nasdaq Composite .IXIC dropped 105.51 points, or 0.9%, to 11,663.33.
The KBW regional banking index .KRX was down on the day.
Strategists said that as lenders report quarterly results from next month, the market will learn more details about the health of banks following the collapse of some big regional lenders that fanned fears of a sector-wide contagion.
Alibaba Group Holding BABA.K jumped 14.1% after the company said it plans to split its business into six main units covering e-commerce, media and the cloud.
Advancing issues outnumbered declining ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored decliners.
The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 30 new highs and 124 new lows.
(Reporting by Caroline Valetkevitch; additional reporting by Shubham Batra, Amruta Khandekar, Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Vinay Dwivedi and Aurora Ellis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares, which tend to be the most negatively affected by rising yields, weighed the most on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks were lower in afternoon trading on Tuesday, led by a nearly 1% decline in the Nasdaq as higher Treasury yields hit technology-related shares. "If the market thinks there's not a banking crisis and that's in the rear view mirror, that would mean the Fed is able to hold rates higher for longer," said Irene Tunkel, chief U.S. equity strategist at BCA Research.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares, which tend to be the most negatively affected by rising yields, weighed the most on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks were lower in afternoon trading on Tuesday, led by a nearly 1% decline in the Nasdaq as higher Treasury yields hit technology-related shares. Shares of First Citizens BancShares Inc FCNCA.O were up about 2.2% on Tuesday, a day after the stock rose more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares, which tend to be the most negatively affected by rising yields, weighed the most on the S&P 500. Yields have climbed from six-months lows hit Friday as investors have been cautiously optimistic that stress in the banking sector following some recent regional bank failures may be subsiding. Both Democratic and Republican lawmakers pressed the Federal Reserve's top banking regulator on whether the central bank should have been more aggressive in its oversight of Silicon Valley Bank.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares, which tend to be the most negatively affected by rising yields, weighed the most on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks were lower in afternoon trading on Tuesday, led by a nearly 1% decline in the Nasdaq as higher Treasury yields hit technology-related shares. Shares of First Citizens BancShares Inc FCNCA.O were up about 2.2% on Tuesday, a day after the stock rose more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
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16606.0
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2023-03-28 00:00:00 UTC
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US STOCKS-Wall St mixed as banking worries ebb, Treasury yields rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-mixed-as-banking-worries-ebb-treasury-yields-rise
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nan
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nan
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By Shubham Batra and Amruta Khandekar
March 28 (Reuters) - Wall Street struggled for direction on Tuesdayas investors weighed receding concerns about a banking crisis, while Treasury yields rose amid focus on Federal Reserve's interest rate trajectory.
Growth stocks such as Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O remained under pressure, falling between 0.8% and 1.5% as yields rose.
Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week. Investors expect a sharp easing in rates thereafter. FEDWATCH
Strategists said that as lenders report quarterly results from next month, the market will learn more details about the health of banks following the collapse of some big regional lenders that fanned fears of a sector-wide contagion.
Shares of First Citizens BancShares Inc FCNCA.O climbed 3.7%, following a more than 50% surge on Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector.
The KBW regional banking index .KRXadded 0.3%, while among the big U.S. banks JP Morgan Chase & Co JPM.Nwas up 0.4%, while Bank of America BAC.N was down 0.5%.
"The good news is that folks pulling deposits out, that's starting to taper off from a couple weeks ago and maybe some of those uninsured deposits are moving money around," said Jonathan Waite, fund manager at Frost Investment Advisors.
U.S. Fed's head of banking supervision Michael Barr told lawmakers on Tuesday that it was appropriate for outsiders to conduct independent reviews of the central bank's oversight of Silicon Valley Bank, in addition to the regulator's own internal review.
At 11:59 a.m. ET, the Dow Jones Industrial Average .DJI was up 83.69 points, or 0.26%, at 32,515.77, the S&P 500 .SPX was down 2.49 points, or 0.06%, at 3,975.04, and the Nasdaq Composite .IXIC was down 63.64 points, or 0.54%, at 11,705.20.
Alibaba Group Holding BABA.K jumped 11.5% after the firm said it plans to split its business into six main units covering e-commerce, media and the cloud.
Walgreens Boots Alliance Inc WBA.O added 4.34% after the U.S. pharmacy's quarterly profit beat Wall Street expectations.
U.S. consumer confidence unexpectedly increased in March, with the index rising to 104.2 this month from a reading of 103.4 in February but Americans are becoming a bit anxious about the labor market, Conference Board's survey showed on Tuesday.
Advancing issues outnumbered decliners by a 1.94-to-1 ratio on the NYSE, while decliners outnumbered advancers by a 1.05-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 25 new highs and 86 new lows.
(Reporting by Shubham Batra, Amruta Khandekar, Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Vinay Dwivedi)
((Shubham.Batra@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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Growth stocks such as Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O remained under pressure, falling between 0.8% and 1.5% as yields rose. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - Wall Street struggled for direction on Tuesdayas investors weighed receding concerns about a banking crisis, while Treasury yields rose amid focus on Federal Reserve's interest rate trajectory. Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week.
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Growth stocks such as Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O remained under pressure, falling between 0.8% and 1.5% as yields rose. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - Wall Street struggled for direction on Tuesdayas investors weighed receding concerns about a banking crisis, while Treasury yields rose amid focus on Federal Reserve's interest rate trajectory. The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 25 new highs and 86 new lows.
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Growth stocks such as Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O remained under pressure, falling between 0.8% and 1.5% as yields rose. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - Wall Street struggled for direction on Tuesdayas investors weighed receding concerns about a banking crisis, while Treasury yields rose amid focus on Federal Reserve's interest rate trajectory. The KBW regional banking index .KRXadded 0.3%, while among the big U.S. banks JP Morgan Chase & Co JPM.Nwas up 0.4%, while Bank of America BAC.N was down 0.5%.
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Growth stocks such as Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O remained under pressure, falling between 0.8% and 1.5% as yields rose. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - Wall Street struggled for direction on Tuesdayas investors weighed receding concerns about a banking crisis, while Treasury yields rose amid focus on Federal Reserve's interest rate trajectory. Investors expect a sharp easing in rates thereafter.
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16607.0
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2023-03-28 00:00:00 UTC
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Meta Breaks Out Of A Base, Looks Like A Growth Stock Again
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AAPL
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https://www.nasdaq.com/articles/meta-breaks-out-of-a-base-looks-like-a-growth-stock-again
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nan
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nan
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Meta Platforms Inc. (NASDAQ: META) has been showing renewed technical strength since rallying from early November lows. The stock broke out of a flat base on March 15. As of March 28, it was holding nearly 14% above its 50-day moving average, even as it pulled back slightly after the breakout.
The company is also expected to grow earnings in the next two years, giving it a look that’s been unfamiliar lately: That of a growth stock.
It’s not uncommon for any stock with a recent breakout to retreat somewhat, as investors who bought at a lower price opt to pocket some profits. Given that Meta began rallying in November, plenty of big institutions are taking a little money off the table, likely reallocating to other institutional-quality stocks at the early stages of a rally. They may also be adding to existing positions in other stocks.
Meta is among the poster children for institutional stocks. According to MarketBeat institutional ownership data, 2,375 institutional buyers accounted for $82.21 billion in inflows in the past 12 months. Meanwhile, 967 institutional sellers accounted for $16.58 billion in outflows.
Institutions Are Buying
Despite the stock essentially being written off by many pundits in recent months, those numbers are proof that big investors, including mutual funds, exchange-traded funds, hedge funds, insurance companies, banks, university endowments, asset management firms, and other large buyers, still have conviction in the stock. That’s despite doubts that the Metaverse concept may not be all it’s cracked up to be, at least not initially.
In fact, news broke on March 27 that The Walt Disney Company (NYSE: DIS) was beginning a round of layoffs, beginning with its metaverse business unit. According to Hollywood trade-industry reports, it wasn’t clear exactly what the unit was working on.
In the case of Meta, there’s still plenty of advertising revenue across platforms including Facebook, Instagram, Messenger and What’s App, despite a year-over-year sales decline of 4% in 2022. Earnings also declined in 2022.
But here’s the thing: Meta is beginning to act like a growth stock again. This year, Wall Street expects an earnings increase of 48%, with another 17% increase forecast for next year.
Rally Began After Layoffs Announced
Of course, as reported previously by MarketBeat, at least some of that earnings increase is due to “efficiency,” polite corporate speak for layoffs. Markets reward companies for becoming leaner. The stock’s November rally began after Meta announced it would lay off 11,000 workers. It since said it would slash more jobs and not fill open positions.
The renewed interest from investors has set Meta apart from its cohort of FAANG stocks. Remember that cute moniker? It’s not something you hear much anymore, after 2022’s takedown of the broad tech sector, but to refresh your memory, the FAANG stocks were Facebook, Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL).
Among that group, Alphabet, which also announced layoffs, is approaching a buy point out of a cup-shaped base. Others are still forming bases.
Despite the Metaverse concept being mocked and poorly understood, Meta continues to issue reassurances that that line of business, which is based on artificial intelligence, will show growth.
In a March 7 blog post, head of Facebook Tom Allison wrote, “Our focus this year is on artificial intelligence, messaging, creators, and monetization.”
Update On The Year Of Efficiency
If you’re wondering exactly what this means for Meta’s revenue and earnings growth, CEO Mark Zuckerberg addressed that in a March 14 blog post titled, “Update on Meta’s Year of Efficiency.”
He noted that the company is prepared for a new economic reality of higher interest rates, a lean economy, and greater geopolitical instability that could lead to higher costs, more volatility, and slower growth.
Despite the layoffs, Zuckerberg claimed the company is not like most that “will scale back their long-term vision and investments.”
“But we have the opportunity to be bolder and make decisions that other companies can’t,” he wrote. “So we put together a financial plan that enables us to invest heavily in the future while also delivering sustainable results as long as we run every team more efficiently. The changes we’re making will enable us to meet this financial plan.”
In other words, slower sales and higher costs may be a reality, but look for the company to achieve the proverbial “doing more with less.” Whether or not that will pan out remains to be seen, but it does seem likely that the company can retain advertisers and attract new ones, which in turn can grow earnings and stock appreciation over time.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It’s not something you hear much anymore, after 2022’s takedown of the broad tech sector, but to refresh your memory, the FAANG stocks were Facebook, Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL). In the case of Meta, there’s still plenty of advertising revenue across platforms including Facebook, Instagram, Messenger and What’s App, despite a year-over-year sales decline of 4% in 2022. Despite the Metaverse concept being mocked and poorly understood, Meta continues to issue reassurances that that line of business, which is based on artificial intelligence, will show growth.
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It’s not something you hear much anymore, after 2022’s takedown of the broad tech sector, but to refresh your memory, the FAANG stocks were Facebook, Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL). Meta Platforms Inc. (NASDAQ: META) has been showing renewed technical strength since rallying from early November lows. Given that Meta began rallying in November, plenty of big institutions are taking a little money off the table, likely reallocating to other institutional-quality stocks at the early stages of a rally.
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It’s not something you hear much anymore, after 2022’s takedown of the broad tech sector, but to refresh your memory, the FAANG stocks were Facebook, Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL). Institutions Are Buying Despite the stock essentially being written off by many pundits in recent months, those numbers are proof that big investors, including mutual funds, exchange-traded funds, hedge funds, insurance companies, banks, university endowments, asset management firms, and other large buyers, still have conviction in the stock. In a March 7 blog post, head of Facebook Tom Allison wrote, “Our focus this year is on artificial intelligence, messaging, creators, and monetization.” Update On The Year Of Efficiency If you’re wondering exactly what this means for Meta’s revenue and earnings growth, CEO Mark Zuckerberg addressed that in a March 14 blog post titled, “Update on Meta’s Year of Efficiency.” He noted that the company is prepared for a new economic reality of higher interest rates, a lean economy, and greater geopolitical instability that could lead to higher costs, more volatility, and slower growth.
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It’s not something you hear much anymore, after 2022’s takedown of the broad tech sector, but to refresh your memory, the FAANG stocks were Facebook, Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL). Meta Platforms Inc. (NASDAQ: META) has been showing renewed technical strength since rallying from early November lows. The stock broke out of a flat base on March 15.
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16608.0
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2023-03-28 00:00:00 UTC
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Technology Sector Update for 03/28/2023: BABA, AAPL, MSFT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-28-2023%3A-baba-aapl-msft
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nan
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nan
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Technology stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% while the Philadelphia Semiconductor index was falling 1.6%.
In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering.
Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees.
Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter. Microsoft shares were down 1.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees.
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Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter.
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Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter.
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Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. Technology stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% while the Philadelphia Semiconductor index was falling 1.6%. Microsoft shares were down 1.3%.
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16609.0
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2023-03-28 00:00:00 UTC
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Apple To Open Fifth Retail Store In South Korea Later This Week
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AAPL
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https://www.nasdaq.com/articles/apple-to-open-fifth-retail-store-in-south-korea-later-this-week
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nan
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nan
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(RTTNews) - Apple will open its fifth retail store in South Korea later this week.
Apple Gangnam will open in Seoul's posh southern district of Gangnam on Friday offering the latest Apple products, including the new iPhone 14.
Apple Gangnam will welcome its first visitors on Friday, March 31, at 5 p.m. local time. Apple Gangnam's grand opening is by reservation only. Registration starts on March 29 at 8 a.m. The new store has about 150 retail team members who collectively speak more than a dozen languages, Apple said in a statement.
Apple opened its first store in South Korea, Apple Garosugil, in 2018 and opened three more Seoul stores, in Yeouido, Myeongdong and Jamsil.
Recently, the long-awaited Apple Pay launched in South Korea, where customers can experience the service in all five Apple Store locations.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple will open its fifth retail store in South Korea later this week. Apple Gangnam will welcome its first visitors on Friday, March 31, at 5 p.m. local time. The new store has about 150 retail team members who collectively speak more than a dozen languages, Apple said in a statement.
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(RTTNews) - Apple will open its fifth retail store in South Korea later this week. Apple Gangnam will open in Seoul's posh southern district of Gangnam on Friday offering the latest Apple products, including the new iPhone 14. Apple opened its first store in South Korea, Apple Garosugil, in 2018 and opened three more Seoul stores, in Yeouido, Myeongdong and Jamsil.
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Apple Gangnam will open in Seoul's posh southern district of Gangnam on Friday offering the latest Apple products, including the new iPhone 14. Apple opened its first store in South Korea, Apple Garosugil, in 2018 and opened three more Seoul stores, in Yeouido, Myeongdong and Jamsil. Recently, the long-awaited Apple Pay launched in South Korea, where customers can experience the service in all five Apple Store locations.
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(RTTNews) - Apple will open its fifth retail store in South Korea later this week. Apple Gangnam will open in Seoul's posh southern district of Gangnam on Friday offering the latest Apple products, including the new iPhone 14. Apple Gangnam will welcome its first visitors on Friday, March 31, at 5 p.m. local time.
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16610.0
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2023-03-28 00:00:00 UTC
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Apple Launches Apple Pay Later
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AAPL
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https://www.nasdaq.com/articles/apple-launches-apple-pay-later
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) Tuesday launched Apple Pay Later in the U.S.
Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. Users can apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay.
Starting Tuesday, Apple will begin inviting select users to access a prerelease version of Apple Pay Later, with plans to offer it to all eligible users in the coming months.
"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," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "Apple Pay Later was designed with our users' financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions."
To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. They will then be prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms. A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.
After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase. Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) Tuesday launched Apple Pay Later in the U.S. Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.
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(RTTNews) - Apple Inc. (AAPL) Tuesday launched Apple Pay Later in the U.S. Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.
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(RTTNews) - Apple Inc. (AAPL) Tuesday launched Apple Pay Later in the U.S. Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. Many people are looking for flexible payment options, which is why we're excited to provide our users with Apple Pay Later," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.
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(RTTNews) - Apple Inc. (AAPL) Tuesday launched Apple Pay Later in the U.S. Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. Users can apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit.
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16611.0
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2023-03-28 00:00:00 UTC
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Big Tech ETFs Roar: Will the Rally Continue?
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AAPL
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https://www.nasdaq.com/articles/big-tech-etfs-roar%3A-will-the-rally-continue
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The appeal for the mega-cap technology stocks roared back this month on their so-called safe haven status following the bank crisis led by the collapse of Silicon Valley Bank. The S&P 500 Information Technology Sector Index climbed nearly 6% over the past month, solidifying its place as the second-best performing group of the S&P 500 during 2023.
The most popular and biggest ETFs in the tech sector like Vanguard Information Technology ETF VGT, Technology Select Sector SPDR Fund XLK, iShares US Technology ETF IYW, VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX gained more than 6% each over the past month.
The fears of contagion across the globe have compelled investors to adopt an old strategy and flock toward mega caps’ cash-rich balance sheets and durable revenue streams. This is especially true as these companies have strong balance sheets and robust profit margins, and are better positioned to withstand a possible economic downturn. These are also set to benefit from a steep drop in bond yields.
In particular, the top three mega names — Apple AAPL, Alphabet GOOGL and Microsoft MSFT — have seen more than $600 billion in a combined rally this month. Three other heavyweights — Nvidia NVDA, Meta Platforms META and Tesla TSLA — are the biggest gainers in March. Notably, Alphabet shares are on track for their biggest monthly gain in several years.
The decline in yields during the collapse of a series of banks as well as a dovish Fed, also drove the rally. As expected, the Fed raised interest rates by 25 bps in the 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. Two-year yields dropped to nearly 3.9% from a 16-year high of 5.084% hit on Mar 8, while 10-year yields plunged to 3.5% from a 15-year high of 4.338% hit on Oct 21 (read: Is it Time for Growth ETFs as Fed Softens Hawkish Tone?).
ETFs in Focus
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $45.5 billion in its asset base and provides exposure to 367 technology stocks. Apple, Microsoft, and Nvidia are the top three firms accounting for a combined 45% of assets. Vanguard Information Technology ETF currently tracks the MSCI US Investable Market Information Technology 25/50 Index and charges 10 bps in fees per year. Volume is solid at nearly 583,000 shares.
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $42.3 billion and an average daily volume of 7 million shares. The fund charges 10 bps in fees per year. Technology Select Sector SPDR Fund follows the Technology Select Sector Index and holds about 66 securities in its basket. Apple, Microsoft and Nvidia make up a combined 51.4% of assets.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. Apple, Microsoft, Alphabet Nvidia and Meta Platforms collectively account for half of the portfolio.
iShares Dow Jones US Technology ETF has AUM of $10.1 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 672,000 shares a day.
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which tracks the most-liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 25 stocks in its basket, with Nvidia comprising 11.3% share. It has managed assets worth $8 billion and charges 35 bps in annual fees and expenses. VanEck Vectors Semiconductor ETF is heavily traded, with a volume of 4 million shares per day (read: A Guide to Semiconductor ETF Investing).
iShares Semiconductor ETF (SOXX)
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with Nvidia accounting for an 8.8% share. iShares Semiconductor ETF has amassed $7.6 billion in its asset base and trades in a volume of about 1 million shares a day. The product charges a fee of 35 bps a year from investors.
Will Rally Continue?
While big tech might offer some safety in turbulent times, it is not without risk. With the latest surge, tech stocks have become overvalued. The Zacks Tech sector is currently trading at a P/E ratio of 21.42 compared to 17.32 for the S&P 500. About 48% of the industries in the sector have a top Zacks Rank, suggesting some pain ahead (see: all the Technology ETFs here).
Additionally, the earnings outlook for the sector has been clouded by economic concerns. According to Bloomberg Intelligence data, earnings for the technology sector are expected to fall 7.7% in 2023 compared with the growth of 5.2% expected six months ago. The forecasts for revenue growth for the sector have also turned negative over the same period, with consensus moving from a 6% increase to a 0.5% decline.
Further, falling bond yields, a key contributor to the recent rally in technology stocks, could prove short-lived if the Fed keeps raising interest rates. However, four of the five above-mentioned ETFs have a Zacks Rank #2 (Buy), suggesting their outperformance to continue. SOXX has a Zacks Rank #3 (Hold).
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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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares Semiconductor ETF (SOXX): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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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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In particular, the top three mega names — Apple AAPL, Alphabet GOOGL and Microsoft MSFT — have seen more than $600 billion in a combined rally this month. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The fears of contagion across the globe have compelled investors to adopt an old strategy and flock toward mega caps’ cash-rich balance sheets and durable revenue streams.
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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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In particular, the top three mega names — Apple AAPL, Alphabet GOOGL and Microsoft MSFT — have seen more than $600 billion in a combined rally this month. The most popular and biggest ETFs in the tech sector like Vanguard Information Technology ETF VGT, Technology Select Sector SPDR Fund XLK, iShares US Technology ETF IYW, VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX gained more than 6% each over the past month.
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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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In particular, the top three mega names — Apple AAPL, Alphabet GOOGL and Microsoft MSFT — have seen more than $600 billion in a combined rally this month. The most popular and biggest ETFs in the tech sector like Vanguard Information Technology ETF VGT, Technology Select Sector SPDR Fund XLK, iShares US Technology ETF IYW, VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX gained more than 6% each over the past month.
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In particular, the top three mega names — Apple AAPL, Alphabet GOOGL and Microsoft MSFT — have seen more than $600 billion in a combined rally this month. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The most popular and biggest ETFs in the tech sector like Vanguard Information Technology ETF VGT, Technology Select Sector SPDR Fund XLK, iShares US Technology ETF IYW, VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX gained more than 6% each over the past month.
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16612.0
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2023-03-28 00:00:00 UTC
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Technology Sector Update for 03/28/2023: WISA, BABA, AAPL, MSFT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-28-2023%3A-wisa-baba-aapl-msft
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Technology stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) down 0.8% while the Philadelphia Semiconductor index was falling 1.4%.
In company news, WiSA Technologies (WISA) shares were down over 45% amid heavy volume after saying it agreed to sell shares and warrants to institutional investors.
Alibaba (BABA) shares were rising over 14% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering.
Apple (AAPL) was down 0.5% after it said that it has introduced Apple Pay Later in the US. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees.
Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud, and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter. Microsoft shares were down 0.4%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was down 0.5% after it said that it has introduced Apple Pay Later in the US. Alibaba (BABA) shares were rising over 14% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees.
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Apple (AAPL) was down 0.5% after it said that it has introduced Apple Pay Later in the US. In company news, WiSA Technologies (WISA) shares were down over 45% amid heavy volume after saying it agreed to sell shares and warrants to institutional investors. Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud, and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter.
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Apple (AAPL) was down 0.5% after it said that it has introduced Apple Pay Later in the US. In company news, WiSA Technologies (WISA) shares were down over 45% amid heavy volume after saying it agreed to sell shares and warrants to institutional investors. Alibaba (BABA) shares were rising over 14% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering.
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Apple (AAPL) was down 0.5% after it said that it has introduced Apple Pay Later in the US. Technology stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) down 0.8% while the Philadelphia Semiconductor index was falling 1.4%. Alibaba (BABA) shares were rising over 14% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering.
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16613.0
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2023-03-28 00:00:00 UTC
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Apple (AAPL) Strengthens Streaming Service With New Content
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-strengthens-streaming-service-with-new-content
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nan
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Apple AAPL is expanding its content portfolio with the launch of the much-anticipated movie, Killers of the Flower Moon, directed by Martin Scorsese. Distributed by Paramount, the movie will be the first Apple original to have a wider theatrical release.
The Leonard DiCaprio-starrer is set to have a limited release in theaters on Oct 6, which will be followed by a wider release globally on Oct 20, per 9TO5Mac. Following the theatrical release, the movie will be available (after a 45-day theatrical exclusivity window) on Apple TV+.
Apple is expanding its footprint in the entertainment industry with plans to spend $1 billion on producing movies, per Bloomberg. The partnership with Paramount for the distribution of Killers of the Flower Moon is a step in that direction.
Theatrical releases are expected to provide Apple with wider recognition as a movie producer. The iPhone maker has a solid pipeline of movies and shows for Apple TV+ streaming services and it is working with renowned directors like Matthew Vaughn and Ridley Scott to improve content for the service.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Strong Content Helps Apple TV+ to Face Competition
Apple TV+, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes shows like Ted Lasso. Its animated movie The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA.
Apple’s impressive run at the Academy Awards has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN, Netflix and Disney+.
Apple TV+ is also expanding into different genres like live sports and is set to stream Friday Night Baseball, a weekly doubleheader, beginning Apr 7.
Growing Services Revenues to Aid Growth
The growing popularity of Apple TV+ and services like Fitness+ have been beneficial for Apple’s Services business, which has become a major revenue-generating source in recent times.
The Services portfolio currently has more than 935 million paid subscribers and accounted for 17.7% of sales in the fiscal first quarter. Services revenues increased 6.4% from the year-ago quarter to $20.77 billion.
For the fiscal second quarter, Services revenues are expected to grow year over year despite challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
Apple shares have outperformed the Zacks Computer and Technology sector in the past year. While AAPL shares have declined 9.8%, Netflix, Disney and Amazon shares have fallen 13.4%, 31% and 41.9%, respectively.
The Zacks Consensus Estimate for Apple’s fiscal second-quarter earnings has been unchanged at $1.44 over the past 30 days.
This Zacks Rank #3 (Hold) company expects the fiscal second quarter’s year-over-year revenue growth to be similar to that of the December-end quarter due to unfavorable forex. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is expanding its content portfolio with the launch of the much-anticipated movie, Killers of the Flower Moon, directed by Martin Scorsese. While AAPL shares have declined 9.8%, Netflix, Disney and Amazon shares have fallen 13.4%, 31% and 41.9%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is expanding its content portfolio with the launch of the much-anticipated movie, Killers of the Flower Moon, directed by Martin Scorsese. While AAPL shares have declined 9.8%, Netflix, Disney and Amazon shares have fallen 13.4%, 31% and 41.9%, respectively.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is expanding its content portfolio with the launch of the much-anticipated movie, Killers of the Flower Moon, directed by Martin Scorsese. While AAPL shares have declined 9.8%, Netflix, Disney and Amazon shares have fallen 13.4%, 31% and 41.9%, respectively.
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Apple AAPL is expanding its content portfolio with the launch of the much-anticipated movie, Killers of the Flower Moon, directed by Martin Scorsese. While AAPL shares have declined 9.8%, Netflix, Disney and Amazon shares have fallen 13.4%, 31% and 41.9%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16614.0
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2023-03-28 00:00:00 UTC
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SPY, DPST: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-dpst%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,850,000 units, or a 2.0% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 1.1%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY REGIONAL BANKS BULL 3X SHARES, which added 11,900,000 units, for a 39.3% increase in outstanding units.
VIDEO: SPY, DPST: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 1.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY REGIONAL BANKS BULL 3X SHARES, which added 11,900,000 units, for a 39.3% increase in outstanding units. VIDEO: SPY, DPST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,850,000 units, or a 2.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY REGIONAL BANKS BULL 3X SHARES, which added 11,900,000 units, for a 39.3% increase in outstanding units. VIDEO: SPY, DPST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,850,000 units, or a 2.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY REGIONAL BANKS BULL 3X SHARES, which added 11,900,000 units, for a 39.3% increase in outstanding units. VIDEO: SPY, DPST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,850,000 units, or a 2.0% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 1.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY REGIONAL BANKS BULL 3X SHARES, which added 11,900,000 units, for a 39.3% increase in outstanding units.
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16615.0
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2023-03-28 00:00:00 UTC
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Wall Street ends down with fall in tech shares
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AAPL
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https://www.nasdaq.com/articles/wall-street-ends-down-with-fall-in-tech-shares
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By Caroline Valetkevitch
March 28 (Reuters) - U.S. stocks ended lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run.
Michael Barr, the Federal Reserve's top banking regulator, told a Senate panel that Silicon Valley Bank did a "terrible" job of managing risk before its collapse.
Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares were among the biggest drags on the S&P 500.
"It's a little bit of a follow-through from yesterday's pullback in tech stocks. You're seeing a little bit of profit-taking," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. "Some of the enthusiasm is waning a little bit."
The S&P 500 technology index .SPLRCT extended recent declines Tuesday, but remains up sharply for the quarter.
The KBW regional banking index .KRX was down on the day, while shares of First Citizens BancShares Inc FCNCA.O were up slightly, a day after the stock rose more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
According to preliminary data, the S&P 500 .SPX lost 6.17 points, or 0.16%, to end at 3,971.36 points, while the Nasdaq Composite .IXIC lost 52.27 points, or 0.44%, to 11,716.56. The Dow Jones Industrial Average .DJI fell 38.05 points, or 0.12%, to 32,394.03.
Higher Treasury yields also weighed on tech shares. Yields have climbed from six-months lows hit Friday.
Early in the day, a survey showed U.S. consumer confidence unexpectedly increased in March, but also that Americans are becoming a bit anxious about the labor market.
With the first quarter's end approaching, investors are thinking about upcoming quarterly results. Strategists said that as lenders report quarterly results from next month, the market will learn more details about the health of banks following the collapse of some big regional lenders that fanned fears of a sector-wide contagion.
Alibaba Group Holding BABA.K jumped after the company said it plans to split its business into six main units covering e-commerce, media and the cloud.
(Reporting by Caroline Valetkevitch; additional reporting by Shubham Batra, Amruta Khandekar, Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Vinay Dwivedi and Aurora Ellis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares were among the biggest drags on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks ended lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run. Early in the day, a survey showed U.S. consumer confidence unexpectedly increased in March, but also that Americans are becoming a bit anxious about the labor market.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares were among the biggest drags on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks ended lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run. According to preliminary data, the S&P 500 .SPX lost 6.17 points, or 0.16%, to end at 3,971.36 points, while the Nasdaq Composite .IXIC lost 52.27 points, or 0.44%, to 11,716.56.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares were among the biggest drags on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks ended lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run. The KBW regional banking index .KRX was down on the day, while shares of First Citizens BancShares Inc FCNCA.O were up slightly, a day after the stock rose more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
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Shares of Apple AAPL.O and Microsoft MSFT.O along with other technology-related shares were among the biggest drags on the S&P 500. By Caroline Valetkevitch March 28 (Reuters) - U.S. stocks ended lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run. Michael Barr, the Federal Reserve's top banking regulator, told a Senate panel that Silicon Valley Bank did a "terrible" job of managing risk before its collapse.
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16616.0
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2023-03-28 00:00:00 UTC
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Is Lemonade Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-lemonade-stock-a-buy-2
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nan
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nan
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Lemonade (NYSE: LMND) burst onto the public markets with a splash in July 2020, seeing its stock price skyrocket 164% in the first six months or so of trading. Besides the general love affair that investors had with fintech companies around that time, Lemonade's innovative business model was viewed by many as a major potential disruptor within the massive insurance industry.
But now the tables have turned. Lemonade shares are down a heart-stopping 93% since their all-time high more than two years ago. And daring investors are now mulling a potential opportunity: Is this beaten-down growth stock a buy right now? Let's take a closer look.
An innovative business model
The hype around Lemonade wasn't surprising, given the company's use of artificial intelligence to provide a better experience for its current and prospective policyholders. Customers looking for renters, home, auto, pet, or life insurance can get a policy in as little as 90 seconds. And policy holders can have a claim approved and paid out in three minutes. The goal for Lemonade was to make the entire process as user-friendly as possible. In fact, the company claims it has a net promoter score -- a measure of consumer satisfaction and support -- on par with some top consumer brands like Apple and Tesla.
There's another interesting twist with the business model. Lemonade is like a traditional insurance company in that it collects premiums, pays out claims, and must effectively manage risk. But Lemonade is also a certified B corporation, which means that it meets high standards when it comes to transparency, accountability, and social and environmental performance. After Lemonade takes a fee for its services, any unused premiums are sent to nonprofit organizations of the customer's choice.
This model has certainly gotten some traction. Between 2019 and 2022, customers increased 181%, in-force premiums rose 449%, and revenue jumped 281%. Even amid all the macroeconomic uncertainty, Lemonade was able to grow at an outstanding clip last year. And for the current year, management expects total revenue of between $375 million and $379 million, good for a 47% annual increase at the midpoint.
Because the insurance industry is so large, Lemonade's opportunity to continue stealing market share is also big. According to Wall Street analysts, the consensus forecast is that revenue will increase at a compound annual rate of more than 36% between 2022 and 2025. There's a lot of optimism surrounding this business and its long-term prospects.
Don't drink the lemonade
In addition to its disruptive potential, readers could quickly point to Lemonade's valuation as additional justification for adding the stock to their portfolios. Since Lemonade's initial public offering, shares have lost 81% of their value. With the stock so beaten down, it trades at a price-to-sales ratio of 3.2, which is about the cheapest it has been in Lemonade's entire public market history. Surely this is too good of an opportunity for investors to pass up, right?
While Lemonade's growth has been nothing short of astounding, I'm not convinced that the stock is a buy. At their core, companies are created to eventually produce profits, which ultimately drives stock prices over the long term. To consider owning an enterprise that isn't solely focused on that goal would be a mistake, in my opinion. If Lemonade can pay out extra premiums to charitable organizations, why not just price its insurance products lower to begin with? This way, it could attract even more customers by simply offering the best and most affordable product on the market.
And speaking of profits, they might be a pipe dream. In 2022, Lemonade posted a net loss of $297.8 million, compared to a net loss of $28.1 million in 2017. And this was during a five-year stretch when revenue increased from $2.4 million to $256.7 million.
"This quarter indicates we believe that peak losses are now behind us and that we're progressing per our plan along a path to profitability," said co-founder and Chief Executive Officer Daniel Schreiber on the Q4 2022 earnings call. He thinks the company can become profitable by 2026. Based on historical trends, I'm not too confident of that forecast.
Making matters worse for investors is Lemonade's burgeoning share count outstanding, which has nearly doubled during the past two years. Moreover, combined stock-based compensation of $103.4 million in 2021 and 2022 is a very real and sizable expense for this business. It's something that shareholders need to be mindful of, as it significantly dilutes their ownership stake in Lemonade. Taking all this into account, it's best to avoid this extremely risky stock.
10 stocks we like better than Lemonade
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 Lemonade 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
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Lemonade, and Tesla. 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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Besides the general love affair that investors had with fintech companies around that time, Lemonade's innovative business model was viewed by many as a major potential disruptor within the massive insurance industry. An innovative business model The hype around Lemonade wasn't surprising, given the company's use of artificial intelligence to provide a better experience for its current and prospective policyholders. "This quarter indicates we believe that peak losses are now behind us and that we're progressing per our plan along a path to profitability," said co-founder and Chief Executive Officer Daniel Schreiber on the Q4 2022 earnings call.
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And for the current year, management expects total revenue of between $375 million and $379 million, good for a 47% annual increase at the midpoint. The Motley Fool has positions in and recommends Apple, Lemonade, and Tesla. 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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Besides the general love affair that investors had with fintech companies around that time, Lemonade's innovative business model was viewed by many as a major potential disruptor within the massive insurance industry. Don't drink the lemonade In addition to its disruptive potential, readers could quickly point to Lemonade's valuation as additional justification for adding the stock to their portfolios. 10 stocks we like better than Lemonade When our award-winning analyst team has a stock tip, it can pay to listen.
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He thinks the company can become profitable by 2026. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Lemonade wasn't one of them! The Motley Fool has a disclosure policy.
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16617.0
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2023-03-28 00:00:00 UTC
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2 Nasdaq 100 Stocks to Buy Hand Over Fist Right Now
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https://www.nasdaq.com/articles/2-nasdaq-100-stocks-to-buy-hand-over-fist-right-now-0
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When there are bargains on stocks with long-term appeal, astute investors make sure to get a few shares while the getting is good. And if you're looking for exposure to growth, the stocks listed on the Nasdaq-100 Index -- which is part of the Nasdaq Composite -- is a good place to start. In that vein, let's discuss a pair of monster growth stocks that are worth buying hand-over-fist right now.
Image source: Getty Images.
1. Moderna
In truth, Moderna (NASDAQ: MRNA) is a bit of a contrarian purchase at the moment as nobody expects it to one-up its 2022 top line of nearly $19 billion now that sales of its coronavirus vaccine are expected to fall to as low as $5 billion in 2023. And there's little to suggest that demand for its shots will surge to reach the heights of the last couple of years ever again.
That's why its valuation is so low. Its price-to-earnings (P/E) ratio is a mere 7.6, a fraction of the market's average P/E of 23.
But farsighted investors know that near-term problems often have little to do with a company's long-term performance as an investment, and that's certainly the case with Moderna. It isn't as though the coronavirus jab is the last medicine it'll ever commercialize, and it actually has quite a few potentially lucrative programs working their way through clinical trials.
Take for instance its phase 2 therapeutic vaccine program for myocardial ischemia, which aims to treat the condition before it can develop into a heart attack. That could find a huge market if it's proven to be safe and effective. Meanwhile, its personalized cancer vaccine (PCV) in phase 2 trials, being developed with the help of Merck, could also be enormously successful.
Those are just two programs out of its total of 48 -- and there's a high chance Moderna will succeed in bringing a handful of its later-stage infectious disease candidates to the market before either of the two potential moneymakers. With so many different opportunities lined up, buying this stock looks like a smart move even if it might take a couple of years to pay off.
2. Apple
The investment thesis for Apple (NASDAQ: AAPL) is quite different than the one for Moderna. You should be scrambling to buy Apple stock not because of its pipeline of groundbreaking new products, but because it barely needs to invest in developing new products to retain its market share and remain profitable thanks to the power of its brand.
Most of the company's products are designed to yield significant sums of recurring revenue. For example, its iCloud storage service and its other subscription services yielded more than $78.1 billion in 2022 alone, a rise of 14% compared to a year prior.
Plus it has more than two billion devices like computers and iPhones being used in the wild, and every last one of them will eventually need to be replaced by a newer and slightly faster version of itself. Even during the challenging consumer purchasing environment of the last couple of years, its sales of Mac computers still rose by 14% in 2022, topping $40.1 billion.
And over the last 10 years, Apple's quarterly research and development (R&D) expenses were, on average, only 5.3% of its quarterly revenue. In that same period, shareholders got to experience a total return of above 1,020%, and its grip on the U.S. smartphone market has only increased since then. So it isn't as though Apple is in a fierce R&D race with competitors that'd compress its margins over time.
To top it off, Apple is one of Warren Buffett's favorite investments, and it's also his largest holding. And that's yet another reason to buy it today.
10 stocks we like better than NASDAQ Composite Index (Price Return)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and NASDAQ Composite Index (Price Return) 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 Merck. The Motley Fool recommends Moderna 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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Apple The investment thesis for Apple (NASDAQ: AAPL) is quite different than the one for Moderna. Take for instance its phase 2 therapeutic vaccine program for myocardial ischemia, which aims to treat the condition before it can develop into a heart attack. Those are just two programs out of its total of 48 -- and there's a high chance Moderna will succeed in bringing a handful of its later-stage infectious disease candidates to the market before either of the two potential moneymakers.
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Apple The investment thesis for Apple (NASDAQ: AAPL) is quite different than the one for Moderna. 10 stocks we like better than NASDAQ Composite Index (Price Return) When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and NASDAQ Composite Index (Price Return) wasn't one of them!
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Apple The investment thesis for Apple (NASDAQ: AAPL) is quite different than the one for Moderna. Moderna In truth, Moderna (NASDAQ: MRNA) is a bit of a contrarian purchase at the moment as nobody expects it to one-up its 2022 top line of nearly $19 billion now that sales of its coronavirus vaccine are expected to fall to as low as $5 billion in 2023. You should be scrambling to buy Apple stock not because of its pipeline of groundbreaking new products, but because it barely needs to invest in developing new products to retain its market share and remain profitable thanks to the power of its brand.
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Apple The investment thesis for Apple (NASDAQ: AAPL) is quite different than the one for Moderna. Even during the challenging consumer purchasing environment of the last couple of years, its sales of Mac computers still rose by 14% in 2022, topping $40.1 billion. That's right -- they think these 10 stocks are even better buys.
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16618.0
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2023-03-28 00:00:00 UTC
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US STOCKS-S&P 500 slips after recent bounce, banks in focus
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https://www.nasdaq.com/articles/us-stocks-sp-500-slips-after-recent-bounce-banks-in-focus
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By Shubham Batra and Amruta Khandekar
March 28 (Reuters) - The S&P 500 index slipped on Tuesday after a three-day rally fueled by support measures for the banking sector and a deal for Silicon Valley Bank assets.
Bank shares rebounded sharply on Monday after First Citizens BancShares Inc FCNCA.Osaid it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector.
Shares of First Citizens climbed 3.5% after surging more than 50% on Monday.
The KBW regional banking index .KRX slipped 0.1%, while the big U.S. banks including JP Morgan Chase & Co JPM.N, Bank of America BAC.N and Citigroup C.N were up marginally.
"The fact that we've got answers on Silicon Valley Bank, Signature Bank and Credit Suisse means that we have more answers than questions," said Art Hogan, chief market strategist at B Riley Wealth in Boston.
"But there are still enough unknowns that the market hasn't really declared an all-clear signal yet."
Lawmakers are expected to put U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress later on Tuesday.
Top regulatory officials for the Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and Treasury Department will testify before congressional committees.
Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week, according to CME's Fedwatch tool. Investors expect a sharp easing in rates thereafter.
The Conference Board will release consumer confidence data later in the day, which is expected to show business conditions deteriorated marginally last month, making a case for a softer Fed policy stance.
The S&P 500 and Dow rose on Monday after the SVB deal was announced, while the Nasdaq Composite closed lower, led by a decline in technology-related stocks.
Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O continued to remain under pressure, falling in the range of 0.6% and 2.5%.
At 9:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 28.40 points, or 0.09%, at 32,460.48, the S&P 500 .SPX was down 8.01 points, or 0.20%, at 3,969.52, and the Nasdaq Composite .IXIC was down 77.11 points, or 0.66%, at 11,691.73.
Alibaba Group Holding BABA.K jumped 7.2% after the firm said it plans to split its business into six main units covering e-commerce, media and the cloud.
Shares of Lyft Inc LYFT.O were up 6.7% after the ride-hailing firm hired former Amazon.com AMZN.O executive David Risher as its new chief.
Walgreens Boots Alliance Inc WBA.O added 2.6% after the U.S. pharmacy's quarterly profit beat Wall Street expectations.
Advancing issues outnumbered decliners by a 1.26-to-1 ratio on the NYSE, while decliners outnumbered advancers by a 1.15-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and no new low, while the Nasdaq recorded 13 new highs and 40 new lows.
(Reporting by Shubham Batra, Amruta Khandekar, Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Vinay Dwivedi)
((Shubham.Batra@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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Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O continued to remain under pressure, falling in the range of 0.6% and 2.5%. Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week, according to CME's Fedwatch tool. The Conference Board will release consumer confidence data later in the day, which is expected to show business conditions deteriorated marginally last month, making a case for a softer Fed policy stance.
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Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O continued to remain under pressure, falling in the range of 0.6% and 2.5%. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - The S&P 500 index slipped on Tuesday after a three-day rally fueled by support measures for the banking sector and a deal for Silicon Valley Bank assets. "The fact that we've got answers on Silicon Valley Bank, Signature Bank and Credit Suisse means that we have more answers than questions," said Art Hogan, chief market strategist at B Riley Wealth in Boston.
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Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O continued to remain under pressure, falling in the range of 0.6% and 2.5%. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - The S&P 500 index slipped on Tuesday after a three-day rally fueled by support measures for the banking sector and a deal for Silicon Valley Bank assets. Bank shares rebounded sharply on Monday after First Citizens BancShares Inc FCNCA.Osaid it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector.
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Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Tesla Inc TSLA.O continued to remain under pressure, falling in the range of 0.6% and 2.5%. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - The S&P 500 index slipped on Tuesday after a three-day rally fueled by support measures for the banking sector and a deal for Silicon Valley Bank assets. Bank shares rebounded sharply on Monday after First Citizens BancShares Inc FCNCA.Osaid it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector.
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16619.0
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2023-03-28 00:00:00 UTC
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US STOCKS-Futures muted as yields rise amid easing bank contagion fears
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https://www.nasdaq.com/articles/us-stocks-futures-muted-as-yields-rise-amid-easing-bank-contagion-fears
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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 0.15%, S&P up 0.03%, Nasdaq down 0.11%
March 28 (Reuters) - U.S. stock index futures were subdued on Tuesday as Treasury yields rose as fears about a banking crisis eased following First Citizens BancShares' U.S. regulator-backed deal to buy failed Silicon Valley Bank.
Benchmark 10-year yields US10YT=RR rose 4 basis points to 3.57%, while the 2-year yields US2YT=RR were up 7 basis points to 4.03%, weighing on growth stocks like Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade.
"The rebound in yields suggested that a calmer tone was starting to prevail in the short term, even as sentiment seems likely to remain on the cautious side over the next few days," said Michael Hewson, chief market analyst at CMC Markets.
Shares of First Citizens BancShares Inc FCNCA.O were flat in light premarket trading after surging more than 50% on Monday when it struck a deal to acquire the deposits and loans of failed Silicon Valley Bank.
The announcement of the deal drove the S&P 500 .SPX and Dow Jones Industrial Average .DJI higher on Monday, while the Nasdaq Composite .IXIC closed lower, led by a decline in technology-related stocks.
Big U.S. banks including JP Morgan Chase & Co JPM.N, Bank of America BAC.N and Citigroup C.N were up between 0.5% and 0.7% on Tuesday. Regional banks also rose, led by First Republic Bank's FRC.N 2.7% gain after a 12% rally on Monday.
Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank.
Money market bets are now equally split between the Fed raising rates by 25 basis points and pausing its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week, according to CME's Fedwatch tool.
However, markets are expecting a sharp easing in rates thereafter.
At 5:19 a.m. ET, Dow e-minis 1YMcv1 were up 49 points, or 0.15%, S&P 500 e-minis EScv1 were up 1.25 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were down 14.5 points, or 0.11%.
Shares of Lyft Inc LYFT.O were up 4.0% premarket after the ride-hailing firm hired former Amazon.com AMZN.O executive David Risher as its new chief.
Virgin Orbit Holdings VORB.O was down 13% after the cash-strapped company said it will extend an unpaid furlough for most of its employees as talks seeking new funding continue.
The Conference Board will release consumer confidence data later in the day, which is expected to show prevailing business conditions marginally fell last month.
Investors will also closely monitor earnings from Micron Technology Inc MU.O, Walgreens Boots Alliance Inc WBA.O, Lululemon Athletica Inc LULU.O and McCormick & Co Inc MKC.N.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Savio D'Souza)
((Shubham.Batra@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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Benchmark 10-year yields US10YT=RR rose 4 basis points to 3.57%, while the 2-year yields US2YT=RR were up 7 basis points to 4.03%, weighing on growth stocks like Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. Shares of First Citizens BancShares Inc FCNCA.O were flat in light premarket trading after surging more than 50% on Monday when it struck a deal to acquire the deposits and loans of failed Silicon Valley Bank. The announcement of the deal drove the S&P 500 .SPX and Dow Jones Industrial Average .DJI higher on Monday, while the Nasdaq Composite .IXIC closed lower, led by a decline in technology-related stocks.
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Benchmark 10-year yields US10YT=RR rose 4 basis points to 3.57%, while the 2-year yields US2YT=RR were up 7 basis points to 4.03%, weighing on growth stocks like Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. Futures mixed: Dow up 0.15%, S&P up 0.03%, Nasdaq down 0.11% March 28 (Reuters) - U.S. stock index futures were subdued on Tuesday as Treasury yields rose as fears about a banking crisis eased following First Citizens BancShares' U.S. regulator-backed deal to buy failed Silicon Valley Bank. Shares of First Citizens BancShares Inc FCNCA.O were flat in light premarket trading after surging more than 50% on Monday when it struck a deal to acquire the deposits and loans of failed Silicon Valley Bank.
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Benchmark 10-year yields US10YT=RR rose 4 basis points to 3.57%, while the 2-year yields US2YT=RR were up 7 basis points to 4.03%, weighing on growth stocks like Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. Futures mixed: Dow up 0.15%, S&P up 0.03%, Nasdaq down 0.11% March 28 (Reuters) - U.S. stock index futures were subdued on Tuesday as Treasury yields rose as fears about a banking crisis eased following First Citizens BancShares' U.S. regulator-backed deal to buy failed Silicon Valley Bank. Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank.
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Benchmark 10-year yields US10YT=RR rose 4 basis points to 3.57%, while the 2-year yields US2YT=RR were up 7 basis points to 4.03%, weighing on growth stocks like Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. Shares of First Citizens BancShares Inc FCNCA.O were flat in light premarket trading after surging more than 50% on Monday when it struck a deal to acquire the deposits and loans of failed Silicon Valley Bank. Regional banks also rose, led by First Republic Bank's FRC.N 2.7% gain after a 12% rally on Monday.
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2023-03-28 00:00:00 UTC
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Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-6
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $15.23 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.09%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 44.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 49% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has gained about 6.29% so far this year and is down about -17.89% in the last one year (as of 03/28/2023). In the past 52-week period, it has traded between $49.14 and $68.01.
The ETF has a beta of 1.05 and standard deviation of 23.93% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPYG is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $78.01 billion in assets, Invesco QQQ has $168.40 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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SPDR Portfolio S&P 500 Growth ETF (SPYG): 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 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): 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 $15.23 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
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Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): 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 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Alternatives SPDR Portfolio S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): 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. Also, growth stocks are a type of equity that carries more risk compared to others.
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16621.0
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2023-03-28 00:00:00 UTC
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Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-5
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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 iShares Core S&P 500 ETF (IVV), a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $296.89 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 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.
This ETF has heaviest allocation to the Information Technology sector--about 26.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 20.15% of total assets under management.
Performance and Risk
IVV seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added roughly 4.05% so far this year and is down about -10.98% in the last one year (as of 03/28/2023). In the past 52-week period, it has traded between $357.98 and $463.67.
The ETF has a beta of 1 and standard deviation of 20.12% for the trailing three-year period, making it a medium risk choice in the space. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVV is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track the same index. While Vanguard S&P 500 ETF has $274.13 billion in assets, SPDR S&P 500 ETF has $365.71 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Core S&P 500 ETF (IVV): 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
Vanguard S&P 500 ETF (VOO): 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 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): 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 iShares Core S&P 500 ETF (IVV), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). It has amassed assets over $296.89 billion, making it 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 Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): 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 iShares Core S&P 500 ETF (IVV), a passively managed exchange traded fund launched on 05/15/2000.
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16622.0
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2023-03-28 00:00:00 UTC
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If You Invested $25,000 in Warren Buffett's 5 Top Stocks 5 Years Ago, Here's How Much You Would Have Now
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%2425000-in-warren-buffetts-5-top-stocks-5-years-ago-heres-how-much-you
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nan
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Ever wonder what would happen if you put your money behind Warren Buffett's very favorite stocks? Even if you don't have billions of dollars to invest, you could follow the billionaire investor's moves and adjust the amount of money you put into each company to match your budget.
Today, just five stocks make up almost three-fourths of the value of Buffett's portfolio. Let's imagine that five years ago you invested $25,000 in these particular stocks. In our experiment, you bought $5,000 each of American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). Let's find out how much you would have now.
Five years or more
First, before revealing those numbers, I just want to note how important it is to invest for the long term. This is a key part of Buffett's investment strategy. And this generally means a minimum of five years. So, as we look at the performance of your Buffett portfolio over five years, we should remember that this could be just the beginning. If we hold on longer, we may stand to gain more.
Now, let's get back to our $25,000 investment. If you'd invested $5,000 five years ago in each of the Buffett favorites mentioned above, today your total investment would be worth $45,500. That represents an 82% increase. This beats the S&P 500's 49% increase over that period.
Apple contributed the most to this performance, climbing 271% over the five years. The others all advanced in the double digits, except Bank of America, which slipped 10%. But your Bank of America loss actually amounted to less than 1% if you consider dividends the company paid to you over that time.
BAC Total Return Price data by YCharts
In our example, I've included stock performance only. Dividend payments limited your Bank of America loss, as mentioned. And dividends have helped you make even more money from your other Buffett investments. All of the stocks I've talked about here offer passive income. Coca-Cola -- one of Buffett's favorite dividend stocks -- climbed 42% over the past five years. But if you add in the dividend payments, the stock offered you a 67% gain over that time period.
Coca-Cola even makes the elite list of Dividend Kings. These are companies that have increased their dividends for at least the past 50 years. This commitment to rewarding shareholders is a sign the company probably will continue along the same path. And that means you can count on it for passive income growth.
Should you jump in now?
So, as we can see from the numbers, an investment in Buffett's favorites would have brought you great returns over the long term. Does that mean you should jump in now? It's always important to look at each stock carefully at a given time. A great bargain five years ago may not necessarily be a great bargain today.
That said, Buffett's core holdings tend to be companies that offer many buying opportunities over time and have what it takes to grow over the long term. So, it's rarely "too late" to get in on these stories.
Still, it's important to choose stocks that are right for you. Buffett advises investing in companies and industries you understand. So, if you don't understand the banking industry but have built up a lot of knowledge about biotech, for example, you may be better off going for a biotech and avoiding Buffett's banking selections.
All of this means, yes, use Buffett as a guide. If you check out his top holdings and they look good to you, you might want to add some of them to your portfolio. But what's more important than following Buffett's exact moves is following his wisdom. If you choose strong companies, buy at fair prices, and hold for the long term, you're likely to win over the long term -- just like Buffett.
10 stocks we like better than American Express
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They just revealed what they believe are the ten best stocks for investors to buy right now... and American Express 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
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends Apple and Bank of America. 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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In our experiment, you bought $5,000 each of American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). Even if you don't have billions of dollars to invest, you could follow the billionaire investor's moves and adjust the amount of money you put into each company to match your budget. So, as we can see from the numbers, an investment in Buffett's favorites would have brought you great returns over the long term.
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In our experiment, you bought $5,000 each of American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). See the 10 stocks *Stock Advisor returns as of March 8, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. 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.
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In our experiment, you bought $5,000 each of American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). If you'd invested $5,000 five years ago in each of the Buffett favorites mentioned above, today your total investment would be worth $45,500. Coca-Cola -- one of Buffett's favorite dividend stocks -- climbed 42% over the past five years.
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In our experiment, you bought $5,000 each of American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). If you'd invested $5,000 five years ago in each of the Buffett favorites mentioned above, today your total investment would be worth $45,500. But if you add in the dividend payments, the stock offered you a 67% gain over that time period.
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16623.0
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2023-03-28 00:00:00 UTC
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US STOCKS-Futures edge lower as yields rise amid easing bank contagion fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-edge-lower-as-yields-rise-amid-easing-bank-contagion-fears
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nan
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By Shubham Batra and Amruta Khandekar
March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank.
Benchmark 10-year yields US10YT=RR rose to 3.545%, weighing on growth stocks such as Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade.
Shares of First Citizens BancShares Inc FCNCA.O fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank.
The S&P 500 .SPX and Dow Jones Industrial Average .DJI rose on Monday after the deal was announced, while the Nasdaq Composite .IXIC closed lower, led by a decline in technology-related stocks.
Big U.S. banks including JP Morgan Chase & Co JPM.N, Bank of America BAC.N and Citigroup C.N were up between 0.1% and 0.5% on Tuesday. Regional banks also rose, led by First Republic Bank's FRC.N 2.2% gain after a 12% rally on Monday.
"It’s all about confidence right now – and anything which reassures shareholders, creditors and depositors that their money is safe with the banks is one step further away from the carnage which claimed SVB and Credit Suisse," said AJ Bell's investment director Russ Mould.
"Whether a more cautious approach to lending by the industry might do some of the work for central banks is something they are all likely to be monitoring closely in the coming weeks."
Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank.
Money market bets are now equally split between the Fed raising rates by 25 basis points and pausing in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week, according to CME's Fedwatch tool. Investors expect a sharp easing in rates thereafter.
At 6:56 a.m. ET, Dow e-minis 1YMcv1 were down 31 points, or 0.1%, S&P 500 e-minis EScv1 were down 6.75 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 27.75 points, or 0.22%.
Alibaba Group Holding BABA.K climbed 6.8% after the firm said it plans to split its business into six main units covering e-commerce, media and the cloud.
Shares of Lyft Inc LYFT.O were up 7.1% premarket after the ride-hailing firm hired former Amazon.com AMZN.O executive David Risher as its new chief.
Virgin Orbit Holdings VORB.O was down 14.6% after the cash-strapped company said it would extend an unpaid furlough for most of its employees as talks seeking new funding continue.
Walgreens Boots Alliance Inc WBA.O shares added 2.1% premarket after the company's quarterly profit beat Wall Street expectations.
The Conference Board will release consumer confidence data later in the day, which is expected to show prevailing business conditions marginally deteriorated last month.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Savio D'Souza)
((Shubham.Batra@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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Benchmark 10-year yields US10YT=RR rose to 3.545%, weighing on growth stocks such as Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. Shares of First Citizens BancShares Inc FCNCA.O fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank. "It’s all about confidence right now – and anything which reassures shareholders, creditors and depositors that their money is safe with the banks is one step further away from the carnage which claimed SVB and Credit Suisse," said AJ Bell's investment director Russ Mould.
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Benchmark 10-year yields US10YT=RR rose to 3.545%, weighing on growth stocks such as Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc FCNCA.O fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank.
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Benchmark 10-year yields US10YT=RR rose to 3.545%, weighing on growth stocks such as Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc FCNCA.O fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank.
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Benchmark 10-year yields US10YT=RR rose to 3.545%, weighing on growth stocks such as Apple Inc AAPL.O, Meta Platforms META.O and Alphabet Inc GOOGL.O in premarket trade. By Shubham Batra and Amruta Khandekar March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc FCNCA.O fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank.
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16624.0
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2023-03-28 00:00:00 UTC
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Apple Rolls Out 'Apple Music Classical' Streaming App For Classical Music Lovers
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AAPL
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https://www.nasdaq.com/articles/apple-rolls-out-apple-music-classical-streaming-app-for-classical-music-lovers
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) on Tuesday announced the launch of Apple Music Classical, a brand-new standalone music streaming app designed to deliver the listening experience for classical music lovers.
With Apple Music Classical, Apple Music subscribers can easily find any recording in the world's largest classical music catalog of over 5 million tracks with fully optimized search. They can enjoy the highest audio quality available and experience many classical favorites in a whole new way with immersive Spatial Audio.
They can also browse expertly curated playlists, insightful composer biographies, and descriptions of thousands of works; and so much more. Apple Music Classical's editors have created over 700 playlists to guide listeners through 800 years of music, and more will be added.
Apple Music Classical is available on the App Store beginning today and is included at no extra cost with nearly all Apple Music subscriptions. It is available for all iPhone models running iOS 15.4 or later. It will be available for Android soon.
The combination of Apple Music Classical and Apple Music provides a complete music experience for everyone, from longtime classical fans to first-time listeners, and everyone in between.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) on Tuesday announced the launch of Apple Music Classical, a brand-new standalone music streaming app designed to deliver the listening experience for classical music lovers. They can also browse expertly curated playlists, insightful composer biographies, and descriptions of thousands of works; and so much more. Apple Music Classical is available on the App Store beginning today and is included at no extra cost with nearly all Apple Music subscriptions.
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(RTTNews) - Apple Inc. (AAPL) on Tuesday announced the launch of Apple Music Classical, a brand-new standalone music streaming app designed to deliver the listening experience for classical music lovers. With Apple Music Classical, Apple Music subscribers can easily find any recording in the world's largest classical music catalog of over 5 million tracks with fully optimized search. The combination of Apple Music Classical and Apple Music provides a complete music experience for everyone, from longtime classical fans to first-time listeners, and everyone in between.
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(RTTNews) - Apple Inc. (AAPL) on Tuesday announced the launch of Apple Music Classical, a brand-new standalone music streaming app designed to deliver the listening experience for classical music lovers. With Apple Music Classical, Apple Music subscribers can easily find any recording in the world's largest classical music catalog of over 5 million tracks with fully optimized search. The combination of Apple Music Classical and Apple Music provides a complete music experience for everyone, from longtime classical fans to first-time listeners, and everyone in between.
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(RTTNews) - Apple Inc. (AAPL) on Tuesday announced the launch of Apple Music Classical, a brand-new standalone music streaming app designed to deliver the listening experience for classical music lovers. They can enjoy the highest audio quality available and experience many classical favorites in a whole new way with immersive Spatial Audio. The combination of Apple Music Classical and Apple Music provides a complete music experience for everyone, from longtime classical fans to first-time listeners, and everyone in between.
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16625.0
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2023-03-28 00:00:00 UTC
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Stock Market News for Mar 28, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-28-2023
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nan
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nan
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U.S. stocks ended mostly higher on Monday as fears of a liquidity crisis spilling over in the banking sector waned but investors remained concerned about the economy’s health. However, tech stocks took a hit, which saw the Nasdaq finishing in the red. The Dow and S&P 500 ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 194.55 points to finish at 32,432.08 points.
The S&P 500 climbed 0.2% or 6.54 points to close at 3,977.53 points. Energy and financial stocks were the biggest gainers.
The Energy Select Sector SPDR (XLE) gained 2.1%, while the Financials Select Sector SPDR (XLF) rose 1.4%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq lost 0.5% or 55.12 points to end at 11,768.84 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.24% to 20.60. Advancers outnumbered decliners on the NYSE by a 2.57-to-1 ratio. On Nasdaq, a 1.44-to-1 ratio favored advancing issues. A total of 10.32 billion shares were traded on Monday, lower than the last 20-session average of 12.9 billion.
Market Sentiments Improve
All three indexes ended higher last week despite market volatility as Fed officials assured that the banking sector wasn’t facing any liquidity crisis. The positive sentiment continued through Monday as investors looked confident on waning signs of banking sector stress.
Shares of European banks stabilized after First Citizens Banchshares Inc. (FCNCA) agreed to purchase the deposits and loans of insolvent Silicon Valley Bank. Following this, shares of First Citizens jumped 53.7%.
This sent stocks of other regional banks on a rally. Shares of First Republic Bank (FRC) also jumped 11.8%. Big banks also gained on the news with shares of JPMorgan Chase & Co. (JPM) increasing 2.9%, while Bank of America Corporation (BAC) rallied 5%. 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.
Understandably, investors’ sentiment is improving, which is helping the markets but the crisis is far from over as concerns over the economy’s health continue to grow. This has seen trading particularly choppy over the past few weeks as investors have been showing signs of nervousness over banking sector stress while also appreciating the lower bond yields those worries brought about.
Technology stocks took a hit on Monday as Fed’s recent 25 basis point interest rate hike once again dampened spirits of a positive outlook for high-growth stocks. Shares of Apple Inc. (AAPL) declined 1.2%, while Alphabet Inc. (GOOGL) fell 2.8%.
No economic data was released on Monday.
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
Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
First Republic Bank (FRC) : Free Stock Analysis Report
First Citizens BancShares, Inc. (FCNCA) : 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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Shares of Apple Inc. (AAPL) declined 1.2%, while Alphabet Inc. (GOOGL) fell 2.8%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended mostly higher on Monday as fears of a liquidity crisis spilling over in the banking sector waned but investors remained concerned about the economy’s health.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) declined 1.2%, while Alphabet Inc. (GOOGL) fell 2.8%. The Energy Select Sector SPDR (XLE) gained 2.1%, while the Financials Select Sector SPDR (XLF) rose 1.4%.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) declined 1.2%, while Alphabet Inc. (GOOGL) fell 2.8%. U.S. stocks ended mostly higher on Monday as fears of a liquidity crisis spilling over in the banking sector waned but investors remained concerned about the economy’s health.
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Shares of Apple Inc. (AAPL) declined 1.2%, while Alphabet Inc. (GOOGL) fell 2.8%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report First Republic Bank (FRC) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Eight of the 11 sectors of the benchmark index ended in positive territory.
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16626.0
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2023-03-28 00:00:00 UTC
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3 Cash-Rich Companies That Buy-and-Hold Investors Can Love
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AAPL
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https://www.nasdaq.com/articles/3-cash-rich-companies-that-buy-and-hold-investors-can-love
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nan
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nan
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For the last year, investors have heard the advice that “cash is king.” Cash is also important when it comes to the companies you choose to invest in. And while this is a difficult market, there are still opportunities for buy-and-hold investors with a suitable time horizon. And the three companies in this article are among those opportunities.
In slowing economies, companies with a strong cash position have more flexibility to handle slowing revenue and/or earnings. And in boom times, a strong cash balance gives these companies the opportunity to make acquisitions and invest in future growth.
Strong balance sheets make these companies favorites of institutional investors and that means investors can use a dollar cost averaging strategy to buy these stocks at regular intervals without being concerned about stock price movement at a given time.
A Tech Stock with a Blue-Chip Balance Sheet
When investors think about cash-rich technology companies, Apple, Inc. (NASDAQ: AAPL) is one of the first to come to mind. But a simple example will illustrate why investors shouldn’t overlook Microsoft Corporation (NASDAQ: MSFT).
Microsoft is attempting to buy Activision Blizzard, Inc. (NASDAQ: ATVI) for $70 billion. If the deal makes it through congressional regulators, the company will still have around $60 billion on its balance sheet, which would keep it in the top 10 of companies in terms of cash position.
The tech giant is also all-in on artificial intelligence with its investment in OpenAI to help develop and scale ChatGPT. And the company is still firmly entrenched in areas like cybersecurity and cloud computing.
Warren Buffett Likes More Than This Company’s Products
It’s rumored that Warren Buffett drinks many cans of Coca-Cola every day. While that’s a folksy anecdotal reason to understand the power of a great brand, there’s another reason that Buffett likes the stock of the Coca-Cola Company (NYSE: KO) - cash flow.
In the case of Coca-Cola, having over $36 billion on its balance sheet gives the company plenty of room to invest in innovative products, globally expand its operations. It also puts the company in position to make acquisitions.
At 27x earnings, KO stock won’t be considered a value by conventional measures. And although the stock has a Moderate Buy rating, analysts tracked by MarketBeat only give the stock about a 10% upside. But with a strong, growing dividend and a rock-solid balance sheet, the stock is an ideal choice for investors looking for investments that will help them sleep well at night.
Investing in the “When” Not “If” of Electric Vehicles
The last of the three cash-rich stocks on this list is the General Motors Company (NYSE: GM). It stands out to me because of the company’s commitment to electric vehicles. The problem is that a transition to EVs cannot be spoken into existence. There’s an infrastructure that needs to be built and a supply chain that is still tangled. That means it may likely be years before the reality of EVs matches the hype.
Whether you love or hate the idea of electric vehicles, it’s becoming clear that these are car companies. And that means they require a lot of capital. With approximately $38 billion on its balance sheet, General Motors should be in a good position to manage through this transition, no matter how long it takes. Analysts tracked by MarketBeat seem to agree. GM stock has a Moderate Buy rating with a consensus price target that shows 44% upside.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Tech Stock with a Blue-Chip Balance Sheet When investors think about cash-rich technology companies, Apple, Inc. (NASDAQ: AAPL) is one of the first to come to mind. And in boom times, a strong cash balance gives these companies the opportunity to make acquisitions and invest in future growth. In the case of Coca-Cola, having over $36 billion on its balance sheet gives the company plenty of room to invest in innovative products, globally expand its operations.
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A Tech Stock with a Blue-Chip Balance Sheet When investors think about cash-rich technology companies, Apple, Inc. (NASDAQ: AAPL) is one of the first to come to mind. And in boom times, a strong cash balance gives these companies the opportunity to make acquisitions and invest in future growth. While that’s a folksy anecdotal reason to understand the power of a great brand, there’s another reason that Buffett likes the stock of the Coca-Cola Company (NYSE: KO) - cash flow.
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A Tech Stock with a Blue-Chip Balance Sheet When investors think about cash-rich technology companies, Apple, Inc. (NASDAQ: AAPL) is one of the first to come to mind. Strong balance sheets make these companies favorites of institutional investors and that means investors can use a dollar cost averaging strategy to buy these stocks at regular intervals without being concerned about stock price movement at a given time. If the deal makes it through congressional regulators, the company will still have around $60 billion on its balance sheet, which would keep it in the top 10 of companies in terms of cash position.
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A Tech Stock with a Blue-Chip Balance Sheet When investors think about cash-rich technology companies, Apple, Inc. (NASDAQ: AAPL) is one of the first to come to mind. And in boom times, a strong cash balance gives these companies the opportunity to make acquisitions and invest in future growth. If the deal makes it through congressional regulators, the company will still have around $60 billion on its balance sheet, which would keep it in the top 10 of companies in terms of cash position.
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16627.0
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2023-03-27 00:00:00 UTC
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Technology Sector Update for 03/27/2023: PINS, AAPL, BLKB, TMPO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-27-2023%3A-pins-aapl-blkb-tmpo
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nan
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nan
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Technology stocks were lower in late Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.4% and the Philadelphia Semiconductor index down 0.7%.
In company news, Pinterest's (PINS) shares were up 2.1% after analysts at UBS said, while upgrading their rating on the stock, that the company's ad-tech and partner monetization efforts could help unlock incremental demand and drive revenue higher.
Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Apple stock was down 1.2% in recent trading.
Blackbaud (BLKB) was up nearly 11% after its board rejected a buyout offer from private-equity firm Clearlake Capital, which offered $71 per share in cash.
Tempo Automation (TMPO) was up more than 11% after saying it has agreed to buy Optimum Design Associates for an undisclosed sum.
The views and 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) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. In company news, Pinterest's (PINS) shares were up 2.1% after analysts at UBS said, while upgrading their rating on the stock, that the company's ad-tech and partner monetization efforts could help unlock incremental demand and drive revenue higher. Tempo Automation (TMPO) was up more than 11% after saying it has agreed to buy Optimum Design Associates for an undisclosed sum.
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Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in late Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.4% and the Philadelphia Semiconductor index down 0.7%. Apple stock was down 1.2% in recent trading.
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Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in late Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.4% and the Philadelphia Semiconductor index down 0.7%. In company news, Pinterest's (PINS) shares were up 2.1% after analysts at UBS said, while upgrading their rating on the stock, that the company's ad-tech and partner monetization efforts could help unlock incremental demand and drive revenue higher.
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Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in late Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.4% and the Philadelphia Semiconductor index down 0.7%. In company news, Pinterest's (PINS) shares were up 2.1% after analysts at UBS said, while upgrading their rating on the stock, that the company's ad-tech and partner monetization efforts could help unlock incremental demand and drive revenue higher.
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16628.0
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2023-03-27 00:00:00 UTC
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Technology Sector Update for 03/27/2023: AAPL, BLKB TMPO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-27-2023%3A-aapl-blkb-tmpo
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nan
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nan
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Technology stocks were lower in Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index (SOX) down 0.8%.
In company news, Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Apple stock was down 1.2% in recent trading.
Blackbaud (BLKB) was up more than 12% after its board rejected a buyout offer from private-equity firm Clearlake Capital, which offered $71 per share in cash.
Tempo Automation (TMPO) was up more than 10% after saying it has agreed to buy Optimum Design Associates for an undisclosed sum.
The views and 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) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index (SOX) down 0.8%. Tempo Automation (TMPO) was up more than 10% after saying it has agreed to buy Optimum Design Associates for an undisclosed sum.
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In company news, Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index (SOX) down 0.8%. Apple stock was down 1.2% in recent trading.
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In company news, Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index (SOX) down 0.8%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) Chief Executive Tim Cook met Chinese Commerce Minister Wang Wentao to discuss industrial stabilization and supply chains, according to media reports. Technology stocks were lower in Monday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) slipping 0.6% and the Philadelphia Semiconductor index (SOX) down 0.8%. Apple stock was down 1.2% in recent trading.
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16629.0
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2023-03-27 00:00:00 UTC
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US STOCKS-Dow, S&P 500 up as SVB deal lifts bank shares; Nasdaq dips
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-sp-500-up-as-svb-deal-lifts-bank-shares-nasdaq-dips
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower.
The S&P 500 banks index .SPXBK was up 2.8%, while the KBW regional banking index .KRX was up 1.1%.
Shares of JPMorgan Chase & Co JPM.N were up 2.9%, helping to support the S&P 500 along with Bank of America BAC.N, which was up 4.4%.
Shares of First Citizens BancShares Inc FCNCA.O were up more than 50% Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
Also, shares of First Republic Bank FRC.N were up about 11% after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.
Tech-related growth shares were lower, weighing on the Nasdaq.
Growth stocks have "had a very strong quarter growth stocks, so there may be some profit-taking as we head into the end of the quarter," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
The Dow Jones Industrial Average .DJI rose 288.66 points, or 0.9%, to 32,526.19, the S&P 500 .SPX gained 21.21 points, or 0.53%, to 3,992.2 and the Nasdaq Composite .IXIC dropped 11.95 points, or 0.1%, to 11,812.01.
Shares of Apple AAPL.O were down 0.9%. The S&P 500 technology index .SPLRCT is up about 16% for the quarter so far.
Crypto shares were also down after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an "illegal" exchange and a "sham" compliance program.
Among other gainers, Walt DisneyDIS.N shares were up 1.5% after the company began 7,000 in layoffs announced earlier this year.
Advancing issues outnumbered declining ones on the NYSE by a 3.33-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored advancers.
The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 43 new highs and 110 new lows.
(Reporting by Caroline Valetkevitch in New York and additional reporting by Amruta Khandekar and Ankika Biswas; Editing by Chizu Nomiyama)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were down 0.9%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower. Among other gainers, Walt DisneyDIS.N shares were up 1.5% after the company began 7,000 in layoffs announced earlier this year.
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Shares of Apple AAPL.O were down 0.9%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower. Shares of First Citizens BancShares Inc FCNCA.O were up more than 50% Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.O were down 0.9%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower. Shares of First Citizens BancShares Inc FCNCA.O were up more than 50% Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.O were down 0.9%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower. Also, shares of First Republic Bank FRC.N were up about 11% after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.
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16630.0
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2023-03-27 00:00:00 UTC
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Notable ETF Inflow Detected - SPLG, AAPL, MSFT, AMZN
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-splg-aapl-msft-amzn
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $121.0 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 324,350,000 to 326,950,000). Among the largest underlying components of SPLG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.6%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $54.34 as the 52 week high point — that compares with a last trade of $46.69. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Larry Robbins Stock Picks
FSLR shares outstanding history
DGLT Options Chain
The views and 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 SPLG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.6%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of SPLG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.6%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $54.34 as the 52 week high point — that compares with a last trade of $46.69. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of SPLG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $121.0 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 324,350,000 to 326,950,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $54.34 as the 52 week high point — that compares with a last trade of $46.69.
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Among the largest underlying components of SPLG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $121.0 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 324,350,000 to 326,950,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $54.34 as the 52 week high point — that compares with a last trade of $46.69.
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16631.0
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2023-03-27 00:00:00 UTC
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US STOCKS-Dow, S&P 500 up as SVB deal lifts bank shares
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-sp-500-up-as-svb-deal-lifts-bank-shares
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq.
The S&P 500 banks index .SPXBK was up sharply, while the KBW regional banking index .KRX was also higher.
JPMorgan Chase & Co JPM.N and Bank of America BAC.N were among stocks that gave the S&P 500 its biggest boost Monday.
Shares of First Citizens BancShares Inc FCNCA.O shot up Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
Also, shares of First Republic Bank FRC.N were up after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.
Tech-related growth shares were lower, weighing on the Nasdaq.
Growth stocks have "had a very strong quarter growth stocks, so there may be some profit-taking as we head into the end of the quarter," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Unofficially, the Dow Jones Industrial Average .DJI rose 195.08 points, or 0.61%, to 32,432.61, the S&P 500 .SPX gained 6.76 points, or 0.17%, to 3,977.75 and the Nasdaq Composite .IXIC dropped 55.12 points, or 0.47%, to 11,768.84.
Shares of Apple AAPL.O were down. The S&P 500 technology index .SPLRCT is up sharply for the quarter so far.
Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an "illegal" exchange and a "sham" compliance program.
Among other stock gainers, Walt DisneyDIS.N shares were up after the company began 7,000 in layoffs announced earlier this year.
(Reporting by Caroline Valetkevitch in New York and additional reporting by Amruta Khandekar and Ankika Biswas; Editing by Chizu Nomiyama and Aurora Ellis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were down. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq. Among other stock gainers, Walt DisneyDIS.N shares were up after the company began 7,000 in layoffs announced earlier this year.
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Shares of Apple AAPL.O were down. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq. Shares of First Citizens BancShares Inc FCNCA.O shot up Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.O were down. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq. Shares of First Citizens BancShares Inc FCNCA.O shot up Monday after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.O were down. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq. JPMorgan Chase & Co JPM.N and Bank of America BAC.N were among stocks that gave the S&P 500 its biggest boost Monday.
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16632.0
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2023-03-27 00:00:00 UTC
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US STOCKS-S&P 500 ends up slightly; SVB deal lifts bank shares
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-up-slightly-svb-deal-lifts-bank-shares
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, March 27 (Reuters) - The S&P 500 ended slightly higher on Monday as a deal for Silicon Valley Bank's assets helped to boost bank shares, while a decline in technology-related stocks limited the day's gains.
The S&P 500 banks index .SPXBKrose 3.1%, while the KBW regional banking index .KRXendedup 0.6%.
JPMorgan Chase & Co JPM.Nshares climbed 2.9% and Bank of America BAC.Nadded 5%. They were among stocks giving the S&P 500 its biggest boost on Monday.
Shares of First Citizens BancShares Inc FCNCA.Oshot up more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
Also, shares of First Republic Bank FRC.Nwere up 11.8% after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.
Tech-related growth shares were lower, however, and the Nasdaq ended down on the day.
"There's still a lot going on in the financial sector, and it's actually good news today," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
But tech and growth stocks have "had a very strong quarter, so there may be some profit-taking as we head into the end of the quarter."
The Dow Jones Industrial Average .DJI rose 194.55 points, or 0.6%, to 32,432.08, the S&P 500 .SPX gained 6.54 points, or 0.16%, to 3,977.53 and the Nasdaq Composite .IXIC dropped 55.12 points, or 0.47%, to 11,768.84.
Shares of Apple AAPL.Owere down 1.2%. The S&P 500 technology index .SPLRCT is up more than 16% for the quarter so far.
Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an "illegal" exchange and a "sham" compliance program.
Among other stock gainers, Walt DisneyDIS.N shares ended up 1.6% after the company began 7,000 in layoffs announced earlier this year.
Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.
The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 128 new lows.
Volume on U.S. exchanges was 10.32 billion shares, compared with the 12.9 billion average for the full session over the last 20 trading days.
(Reporting by Caroline Valetkevitch in New York and additional reporting by Amruta Khandekar and Ankika Biswas; Editing by Chizu Nomiyama and Aurora Ellis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.Owere down 1.2%. "There's still a lot going on in the financial sector, and it's actually good news today," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. Among other stock gainers, Walt DisneyDIS.N shares ended up 1.6% after the company began 7,000 in layoffs announced earlier this year.
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Shares of Apple AAPL.Owere down 1.2%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The S&P 500 ended slightly higher on Monday as a deal for Silicon Valley Bank's assets helped to boost bank shares, while a decline in technology-related stocks limited the day's gains. Shares of First Citizens BancShares Inc FCNCA.Oshot up more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.Owere down 1.2%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The S&P 500 ended slightly higher on Monday as a deal for Silicon Valley Bank's assets helped to boost bank shares, while a decline in technology-related stocks limited the day's gains. Shares of First Citizens BancShares Inc FCNCA.Oshot up more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.
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Shares of Apple AAPL.Owere down 1.2%. By Caroline Valetkevitch NEW YORK, March 27 (Reuters) - The S&P 500 ended slightly higher on Monday as a deal for Silicon Valley Bank's assets helped to boost bank shares, while a decline in technology-related stocks limited the day's gains. The S&P 500 banks index .SPXBKrose 3.1%, while the KBW regional banking index .KRXendedup 0.6%.
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16633.0
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2023-03-27 00:00:00 UTC
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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-2
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $158.15, marking a -1.31% move from the previous day. This change lagged the S&P 500's 0.17% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 9.23% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. In that report, analysts expect Apple to post earnings of $1.44 per share. This would mark a year-over-year decline of 5.26%. Meanwhile, our latest consensus estimate is calling for revenue of $93.39 billion, down 4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $390.02 billion. These totals would mark changes of -1.15% and -1.09%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Apple is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 26.52. For comparison, its industry has an average Forward P/E of 8.54, which means Apple is trading at a premium to the group.
We can also see that AAPL currently has a PEG ratio of 2.12. 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. AAPL's industry had an average PEG ratio of 2.61 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $158.15, marking a -1.31% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.12. AAPL's industry had an average PEG ratio of 2.61 as of yesterday's close.
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In the latest trading session, Apple (AAPL) closed at $158.15, marking a -1.31% move from the previous day. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We can also see that AAPL currently has a PEG ratio of 2.12.
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In the latest trading session, Apple (AAPL) closed at $158.15, marking a -1.31% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.12. AAPL's industry had an average PEG ratio of 2.61 as of yesterday's close.
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In the latest trading session, Apple (AAPL) closed at $158.15, marking a -1.31% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.12. AAPL's industry had an average PEG ratio of 2.61 as of yesterday's close.
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16634.0
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2023-03-27 00:00:00 UTC
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At least 50 US govt employees hit with spyware, prompting new rules
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AAPL
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https://www.nasdaq.com/articles/at-least-50-us-govt-employees-hit-with-spyware-prompting-new-rules-0
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nan
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nan
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By Christopher Bing
WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, a senior administration official said, highlighting the growing threat by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying.
U.S. President Joseph Biden signed an executive order on Monday to curb the malicious use of digital spy tools around the globe which target U.S. personnel and civil society.
The extent of such hacking had not been previously known, but in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company.
At the time, it represented the widest known hack of U.S. officials through such tools.
The senior administration official cited Reuters' prior reporting as a reason for the broader internal government review.
The new executive order is designed to apply pressure on the secretive industry by placing new restrictions on U.S. government defense, law enforcement and intelligence agencies' purchasing decisions, a senior administration official said.
By more heavily regulating which organizations can do business with the U.S. government, the idea is that it will shift how the shadowy market operates and limit sales to certain actors, the official said.
"We have clearly identified the proliferation and misuse of spyware as a threat to national security," the official said, based on an extensive U.S. government review that began in 2021. "The threat of misuse around the world also implicates our core foreign policy interests."
Makers of such hacking tools could be barred from selling to U.S. agencies if they are found to be doing business with foreign governments that have a poor human rights track record, based on analysis by the U.S. State Department and others.
In addition, if the U.S. intelligence community finds evidence that a particular commercial spyware platform was used to help target U.S. government staff, then it too would be subject to the new restrictions.
The decision follows a series of media and cybersecurity reports in recent years concerning spyware sales to governments around the world, including in the Middle East and Africa, where it was reportedly used against dissidents, human rights defenders and journalists.
"We needed to have a standard where if we know that a company is selling to a country that is engaged in these outlined activities, that in and of itself is a red flag," said the senior administration official.
(Reporting by Christopher Bing; Editing by Mark Porter and Richard Chang)
((Christopher.Bing@thomsonreuters.com; +1 202-510-0174;))
The views and 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 extent of such hacking had not been previously known, but in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, a senior administration official said, highlighting the growing threat by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. The new executive order is designed to apply pressure on the secretive industry by placing new restrictions on U.S. government defense, law enforcement and intelligence agencies' purchasing decisions, a senior administration official said.
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The extent of such hacking had not been previously known, but in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, a senior administration official said, highlighting the growing threat by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. The senior administration official cited Reuters' prior reporting as a reason for the broader internal government review.
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The extent of such hacking had not been previously known, but in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, a senior administration official said, highlighting the growing threat by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. The new executive order is designed to apply pressure on the secretive industry by placing new restrictions on U.S. government defense, law enforcement and intelligence agencies' purchasing decisions, a senior administration official said.
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The extent of such hacking had not been previously known, but in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, a senior administration official said, highlighting the growing threat by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. U.S. President Joseph Biden signed an executive order on Monday to curb the malicious use of digital spy tools around the globe which target U.S. personnel and civil society.
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16635.0
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2023-03-27 00:00:00 UTC
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US STOCKS-Wall St off session highs as investors weigh bank risks after SVB deal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-off-session-highs-as-investors-weigh-bank-risks-after-svb-deal
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 27 (Reuters) - Wall Street's main indexes cut gains on Monday as investors assessed risks to the banking sector following a buyout deal for Silicon Valley Bank's assets, while a rise in Treasury yields pressured rate-sensitive technology and other growth stocks.
First Citizens BancShares Inc FCNCA.Owill acquire parts of Silicon Valley Bank SIVB.O, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.
First Citizens' shares jumped 47.6%, while First Republic Bank FRC.N rose 15.4% following a report that U.S. authorities were considering more support for banks.
While the buyout of SVB's assets had lifted sentiment earlier in the day, the three main indexes came off session highs after news that cryptocurrency exchange Binance and its CEO, Changpeng Zhao, were being sued over regulatory violations.
Crypto stocks such as Coinbase Global COIN.O, Marathon Digital MARA.O and Riot Platforms RIOT.O fell between 7% and 9%.
"We saw bitcoin roll over in the last few minutes here and you're seeing a lot of crypto stocks roll over with that," said Dennis Dick, a trader at Triple D Trading.
"There's just so much uncertainty here and every time we seem to get a rally, we find new sellers and that's because we don't know how far this banking crisis is going to go."
At 11:45 a.m. ET, the Dow Jones Industrial Average .DJI was up 182.40 points, or 0.57%, at 32,419.93, the S&P 500 .SPX was up 8.08 points, or 0.20%, at 3,979.07, while the Nasdaq Composite .IXIC was down 46.01 points, or 0.39%, at 11,777.95.
The KBW Regional Banking index .KRX was up 0.8% after erasing some gains, while the S&P 500 Banks index .SPXBK rose 2.5%.
Regional banks Western Alliance Bancorp WAL.N and PacWest Bancorp PACW.O were up 4.9% and 4.4%, respectively.
Shares of major U.S. banks JPMorgan Chase & Co JPM.N, Citigroup C.N and Bank of America BAC.N, however, held on to gains of between 1% and 3%.
As U.S. Treasury yields rose on Monday amid some easing in bank contagion worries, major growth stocks Meta Platforms META.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Alphabet GOOGL.O fell between 0.6% and 2.5%.
Among key S&P 500 sectors, information technology .SPLRCT and communication services .SPLRCL were in the red, while financial stocks .SPSY led sectoral gains, up about 1.4%.
Traders largely expect the Federal Reserve to pause rate hikes in May in light of the banking crisis, though the bets of a no-hike scenario have come down to 60.6% from 83.2% on Friday, according to CME Group's Fedwatch tool.
Investors are also awaiting a host of economic data this week, including an inflation report that could give more clues about the Fed's monetary policy path.
Tesla Inc TSLA.O rose 2.0% with Barclays expecting the electric carmaker's first-quarter deliveries to beat estimates.
Advancing issues outnumbered decliners by a 2.67-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded 6 new 52-week highs and no new lows, while the Nasdaq recorded 36 new highs and 82 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Dhanya Ann Thoppil, Savio D'Souza 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. Treasury yields rose on Monday amid some easing in bank contagion worries, major growth stocks Meta Platforms META.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Alphabet GOOGL.O fell between 0.6% and 2.5%. While the buyout of SVB's assets had lifted sentiment earlier in the day, the three main indexes came off session highs after news that cryptocurrency exchange Binance and its CEO, Changpeng Zhao, were being sued over regulatory violations. Traders largely expect the Federal Reserve to pause rate hikes in May in light of the banking crisis, though the bets of a no-hike scenario have come down to 60.6% from 83.2% on Friday, according to CME Group's Fedwatch tool.
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As U.S. Treasury yields rose on Monday amid some easing in bank contagion worries, major growth stocks Meta Platforms META.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Alphabet GOOGL.O fell between 0.6% and 2.5%. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes cut gains on Monday as investors assessed risks to the banking sector following a buyout deal for Silicon Valley Bank's assets, while a rise in Treasury yields pressured rate-sensitive technology and other growth stocks. The S&P index recorded 6 new 52-week highs and no new lows, while the Nasdaq recorded 36 new highs and 82 new lows.
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As U.S. Treasury yields rose on Monday amid some easing in bank contagion worries, major growth stocks Meta Platforms META.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Alphabet GOOGL.O fell between 0.6% and 2.5%. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes cut gains on Monday as investors assessed risks to the banking sector following a buyout deal for Silicon Valley Bank's assets, while a rise in Treasury yields pressured rate-sensitive technology and other growth stocks. First Citizens BancShares Inc FCNCA.Owill acquire parts of Silicon Valley Bank SIVB.O, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.
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As U.S. Treasury yields rose on Monday amid some easing in bank contagion worries, major growth stocks Meta Platforms META.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Alphabet GOOGL.O fell between 0.6% and 2.5%. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes cut gains on Monday as investors assessed risks to the banking sector following a buyout deal for Silicon Valley Bank's assets, while a rise in Treasury yields pressured rate-sensitive technology and other growth stocks. First Citizens' shares jumped 47.6%, while First Republic Bank FRC.N rose 15.4% following a report that U.S. authorities were considering more support for banks.
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16636.0
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2023-03-27 00:00:00 UTC
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US STOCKS-Wall Street gains as banking crisis worries ease after SVB deal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-gains-as-banking-crisis-worries-ease-after-svb-deal
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank.
First Citizens BancShares Inc FCNCA.Owill acquire parts of Silicon Valley Bank SIVB.O, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.
First Citizens' shares jumped 44.7%, while First Republic Bank FRC.N surged 27% on a report that U.S. authorities were considering more support for banks, which could give the embattled regional lender more time to shore up its balance sheet.
"The news about SVB being bought out may be calming some jitters that are going on in the banking sector," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
"Every bank that the FDIC steps in on that gets resolved in a manner where people don't lose money adds another element of confidence to the sector and hopefully then people calm down," Frederick added.
Regional banks Western Alliance Bancorp WAL.N and PacWest Bancorp PACW.O also climbed 4.8% and 6%, respectively.
Shares of major U.S. banks JPMorgan Chase & Co JPM.N, Citigroup C.N and Bank of America BAC.N advanced between 1.6% and 3.3%.
The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%.
Financial stocks .SPSY, up about 2%, led sectoral gains, with 10 of the 11 S&P 500 sector indexes higher.
European bank shares also rebounded from declines last week when a spike in Deutsche Bank's DB.N credit default swaps, a type of insurance for bondholders, had exacerbated worries about the health of banks in the region.
U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O.
Traders have largely priced in that the Federal Reserve will pause rate hikes in May amid lingering worries about the banking sector stress potentially causing a steep economic downturn.
Despite the turbulence in financial markets, in the past two weeks the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC logged their biggest two-week gain since early February and are on course for a quarterly gain.
Investors are also awaiting a host of economic data this week, including an inflation report that could give more clues about the Fed's monetary policy path.
At 9:33 a.m. ET, the Dow Jones Industrial Average .DJI was up 283.97 points, or 0.88%, at 32,521.50, the S&P 500 .SPX was up 27.07 points, or 0.68%, at 3,998.06, and the Nasdaq Composite .IXIC was up 34.75 points, or 0.29%, at 11,858.71.
Tesla Inc TSLA.O rose 3% with Barclays expecting the electric carmaker's first-quarter deliveries to beat estimates.
Pinterest Inc PINS.N gained 5% after UBS upgraded the Social media firm's stock to "buy" from "neutral".
Advancing issues outnumbered decliners by a 5.48-to-1 ratio on the NYSE and 2.25-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 17 new highs and 25 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Dhanya Ann Thoppil, Savio D'Souza 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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U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. "The news about SVB being bought out may be calming some jitters that are going on in the banking sector," said Randy Frederick, managing director of trading and derivatives at Charles Schwab. Traders have largely priced in that the Federal Reserve will pause rate hikes in May amid lingering worries about the banking sector stress potentially causing a steep economic downturn.
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U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%.
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U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%.
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U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%.
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16637.0
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2023-03-27 00:00:00 UTC
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Foxconn founder Gou, possible Taiwan presidential candidate, to visit US
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AAPL
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https://www.nasdaq.com/articles/foxconn-founder-gou-possible-taiwan-presidential-candidate-to-visit-us
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nan
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nan
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TAIPEI, March 27 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, will visit the United States this week, his office said on Monday, as he considers another run for Taiwan's presidency.
Gou will leave for the United States on Monday evening for a 12-day visit his office called a "journey of scientific and technological economic development" and will also speak at the Washington think-tank, the Brookings Institution.
"Not only the United States, but also other major democratic allies have been gradually paying attention to security issues in the Asia-Pacific region," his office said in a statement.
"The potential risks of regional conflicts highlight Taiwan's key role in the global cooperation system."
Gou will also visit the University of Maryland to talk about artificial intelligence, as well as Harvard Medical School, it added, but did not say if he would meet any U.S. officials while in the country.
Taiwanese presidential candidates traditionally go to the United States before elections given Washington's oversized role in ensuring Taiwan's security in the face of China's military threats to the island Beijing views as Chinese territory.
Gou has extensive business interests in China and is known for his close ties with Beijing leaders.
Gou, who stepped down as Foxconn chief in 2019, had originally made a presidential bid that year, but dropped out after losing the nomination for Taiwan's main opposition party the Kuomintang, or KMT.
While Gou has said he is considering another run for the January 2024 presidential election, the KMT has yet to choose its presidential candidate.
KMT Chairman Eric Chu, asked on Saturday whether Gou would be included in the party's nomination process, did not give a definitive answer, but said Gou was an "important part of the blue camp", referring to the party's colours.
Chu and New Taipei Mayor Hou Yu-ih are the current front-runners to be chosen as the KMT candidate.
Taiwan's ruling Democratic Progressive Party has already chosen Vice President William Lai as its 2024 candidate, as President Tsai Ing-wen cannot run again after two terms in office.
(Reporting by Ben Blanchard)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, March 27 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, will visit the United States this week, his office said on Monday, as he considers another run for Taiwan's presidency. Gou will leave for the United States on Monday evening for a 12-day visit his office called a "journey of scientific and technological economic development" and will also speak at the Washington think-tank, the Brookings Institution. Taiwanese presidential candidates traditionally go to the United States before elections given Washington's oversized role in ensuring Taiwan's security in the face of China's military threats to the island Beijing views as Chinese territory.
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TAIPEI, March 27 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, will visit the United States this week, his office said on Monday, as he considers another run for Taiwan's presidency. Gou will leave for the United States on Monday evening for a 12-day visit his office called a "journey of scientific and technological economic development" and will also speak at the Washington think-tank, the Brookings Institution. Taiwanese presidential candidates traditionally go to the United States before elections given Washington's oversized role in ensuring Taiwan's security in the face of China's military threats to the island Beijing views as Chinese territory.
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TAIPEI, March 27 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, will visit the United States this week, his office said on Monday, as he considers another run for Taiwan's presidency. Taiwanese presidential candidates traditionally go to the United States before elections given Washington's oversized role in ensuring Taiwan's security in the face of China's military threats to the island Beijing views as Chinese territory. KMT Chairman Eric Chu, asked on Saturday whether Gou would be included in the party's nomination process, did not give a definitive answer, but said Gou was an "important part of the blue camp", referring to the party's colours.
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TAIPEI, March 27 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, will visit the United States this week, his office said on Monday, as he considers another run for Taiwan's presidency. Taiwanese presidential candidates traditionally go to the United States before elections given Washington's oversized role in ensuring Taiwan's security in the face of China's military threats to the island Beijing views as Chinese territory. Gou, who stepped down as Foxconn chief in 2019, had originally made a presidential bid that year, but dropped out after losing the nomination for Taiwan's main opposition party the Kuomintang, or KMT.
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16638.0
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2023-03-27 00:00:00 UTC
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Chinese commerce minister holds talks with Apple boss Cook
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AAPL
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https://www.nasdaq.com/articles/chinese-commerce-minister-holds-talks-with-apple-boss-cook
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nan
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nan
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BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said.
The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide good environment and services for foreign companies including Apple.
(Reporting by Beijing newsroom Editing by David Goodman )
((Ella.Cao@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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BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide good environment and services for foreign companies including Apple. (Reporting by Beijing newsroom Editing by David Goodman ) ((Ella.Cao@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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BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide good environment and services for foreign companies including Apple. (Reporting by Beijing newsroom Editing by David Goodman ) ((Ella.Cao@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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BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide good environment and services for foreign companies including Apple. (Reporting by Beijing newsroom Editing by David Goodman ) ((Ella.Cao@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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BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide good environment and services for foreign companies including Apple. (Reporting by Beijing newsroom Editing by David Goodman ) ((Ella.Cao@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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16639.0
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2023-03-27 00:00:00 UTC
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Chinese commerce minister in talks with Apple boss Tim Cook
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AAPL
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https://www.nasdaq.com/articles/chinese-commerce-minister-in-talks-with-apple-boss-tim-cook
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nan
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nan
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Add detail
BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said.
The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide a good environment and services for foreign companies including Apple.
Cook was in Beijing over the weekend to attend the government-organised China Development Forum.
Wang told Cook that China unswervingly promotes a high-level opening-up of rules, regulations, management, standards and other systems, the ministry added.
The minister also had meetings with the leaders of several other international companies over the past few days, including Pfizer PFE.N, BMW BMWG.DE and Qualcomm QCOM.O.
(Reporting by Beijing newsroom Writing by Bernard Orr Editing by David Goodman)
((Ella.Cao@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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Add detail BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide a good environment and services for foreign companies including Apple. Wang told Cook that China unswervingly promotes a high-level opening-up of rules, regulations, management, standards and other systems, the ministry added.
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Add detail BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide a good environment and services for foreign companies including Apple. Wang told Cook that China unswervingly promotes a high-level opening-up of rules, regulations, management, standards and other systems, the ministry added.
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Add detail BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide a good environment and services for foreign companies including Apple. Wang told Cook that China unswervingly promotes a high-level opening-up of rules, regulations, management, standards and other systems, the ministry added.
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Add detail BEIJING, March 27 (Reuters) - Chinese commerce minister Wang Wentao met Apple AAPL.O CEO Tim Cook on Monday and exchanged views on the company's development in China, the commerce ministry said. The two talked about stabilising industrial and supply chains, the ministry said, adding that Wang told Cook China is willing to provide a good environment and services for foreign companies including Apple. Cook was in Beijing over the weekend to attend the government-organised China Development Forum.
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16640.0
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2023-03-27 00:00:00 UTC
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At least 50 US govt employees hit with spyware, prompting new rules
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AAPL
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https://www.nasdaq.com/articles/at-least-50-us-govt-employees-hit-with-spyware-prompting-new-rules
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nan
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nan
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By Christopher Bing
WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, according to a senior administration official, highlighting the growing threat caused by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying.
U.S. President Joseph Biden will sign an executive order on Monday intended to curb the malicious use of digital spy tools around the globe, which target U.S. personnel and civil society.
While it has not been previously reported that so many U.S. government staff were targeted in this way, in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company.
At the time, it represented the widest known hack of U.S. officials through such tools.
The senior administration official cited Reuters’ prior reporting as a reason for the broader internal government review.
The new executive order is designed to apply pressure on the secretive industry by placing new restrictions on U.S. government defense, law enforcement and intelligence agencies’ purchasing decisions, a senior administration official said.
By more heavily regulating which organizations can do business with the U.S. government, the idea is that it will shift how the shadowy market operates and limit sales to certain actors, the official said.
“We have clearly identified the proliferation and misuse of spyware as a threat to national security,” the official said, based on an extensive U.S. government review that began in 2021. “The threat of misuse around the world also implicates our core foreign policy interests.”
(Reporting by Christopher Bing; Editing by Mark Porter)
((Christopher.Bing@thomsonreuters.com; +1 202-510-0174;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While it has not been previously reported that so many U.S. government staff were targeted in this way, in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, according to a senior administration official, highlighting the growing threat caused by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. U.S. President Joseph Biden will sign an executive order on Monday intended to curb the malicious use of digital spy tools around the globe, which target U.S. personnel and civil society.
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While it has not been previously reported that so many U.S. government staff were targeted in this way, in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, according to a senior administration official, highlighting the growing threat caused by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. The senior administration official cited Reuters’ prior reporting as a reason for the broader internal government review.
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While it has not been previously reported that so many U.S. government staff were targeted in this way, in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, according to a senior administration official, highlighting the growing threat caused by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. The new executive order is designed to apply pressure on the secretive industry by placing new restrictions on U.S. government defense, law enforcement and intelligence agencies’ purchasing decisions, a senior administration official said.
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While it has not been previously reported that so many U.S. government staff were targeted in this way, in 2021 Reuters reported that Apple Inc AAPL.O iPhones of at least nine U.S. State Department employees were targeted by an unknown assailant using sophisticated spyware developed by an Israeli company. By Christopher Bing WASHINGTON, March 27 (Reuters) - At least 50 U.S. government staffers stationed in 10 countries were targeted with commercial hacking tools, commonly known as spyware, according to a senior administration official, highlighting the growing threat caused by offensive cyber vendors and prompting the White House to introduce rules to hinder the spying. U.S. President Joseph Biden will sign an executive order on Monday intended to curb the malicious use of digital spy tools around the globe, which target U.S. personnel and civil society.
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16641.0
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2023-03-27 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-6
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nan
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nan
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Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
DGRW is managed by Wisdomtree, and this fund has amassed over $7.57 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for DGRW are 0.28%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.11%.
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.
Representing 30.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Staples and Industrials round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ).
The top 10 holdings account for about 33.28% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Quality Dividend Growth ETF has added about 0.46% so far, and is down about -2.62% over the last 12 months (as of 03/27/2023). DGRW has traded between $53.91 and $64.62 in this past 52-week period.
The fund has a beta of 0.88 and standard deviation of 18.26% for the trailing three-year period, which makes DGRW a medium risk choice in this particular space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.38 billion in assets, Vanguard Dividend Appreciation ETF has $62.98 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
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.
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
WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors 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. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors 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. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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16642.0
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2023-03-27 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-9
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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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16643.0
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2023-03-27 00:00:00 UTC
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Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-7
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $645.70 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
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.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.91%.
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 24.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 26.17% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF has added about 2.16% so far this year and is down about -10.81% in the last one year (as of 03/27/2023). In the past 52-week period, it has traded between $38.39 and $49.35.
The ETF has a beta of 1.01 and standard deviation of 20.81% for the trailing three-year period, making it a medium risk choice in the space. With about 502 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap 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, EPS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.10 billion in assets, Vanguard Value ETF has $97.61 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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16644.0
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2023-03-26 00:00:00 UTC
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Where Will PayPal Be in 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-paypal-be-in-1-year
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nan
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These are scary times, no doubt. A potentially looming recession, elevated inflation, a recent string of bank failures, and rising interest rates aren't exactly developments that investors cheer. Those who focus on growth stocks like PayPal (NASDAQ: PYPL) have even more to think about in today's market environment. It's worth asking if it's still a good idea to own a business like this.
PayPal's stock is down 36% over the last 12 months, seriously underperforming the S&P 500, which has fallen 11% during the same period. Where will shares of the fintech be in one year? I think it's important to understand where the company has been, and what its outlook is, to answer that question.
Posting modest gains
Last year was still a healthy one for PayPal, with an 8% increase in sales to $27.5 billion. Total payment volume of $1.36 trillion was up 9% versus 2021. And the business added 8.6 million net new active accounts, bringing the total to 435 million. All things considered, this is respectable growth, albeit not at the rates shareholders saw in 2020 and 2021.
What stands out about PayPal is its ability to produce cash. The company generated $5.1 billion of free cash flow (FCF) in 2022, up 4% year over year. This is something that shareholders can appreciate right now, given the uncertainty rattling markets and the economy. The ability to produce copious amounts of FCF, coupled with PayPal's net cash position of $5.1 billion (as of Dec. 31), can allow the company to continue to invest in worthwhile growth opportunities when rivals might be a bit more conservative with their capital expenditures.
"While the macroeconomic backdrop remains challenging, we're energized by the significant opportunity we have to advance our leadership in payments and better serve our customers," Chief Financial Officer Gabrielle Rabinovitch said on the Q4 2022 earnings call.
For a business that relies on rising spending for its success, the current environment isn't exactly ideal. But the management team expects revenue to increase 9% in the current quarter, with Q1 2023 adjusted earnings per share (EPS) rising between 23% and 25% year over year. Wall Street analysts on average expect PayPal sales to jump 6.7% in 2023. These are still solid gains.
A year marked with uncertainty
With the stock down 77% from its peak in July 2021, PayPal currently sells at a trailing price-to-earnings (P/E) ratio of 34. The stock's average historical P/E multiple is 51, so the valuation today looks compelling. However, PayPal is trading at a premium to the rest of the market. And this situation could present some downside risk should the business miss quarterly analyst expectations or if the market decides to favor safer stocks even more than it already does.
Although I think it's impossible to predict what will happen with a stock in a 12-month period, it's clear that PayPal -- and every other business, for that matter -- is navigating a difficult economic environment right now. To be more specific, with inflation still running hot (the consumer price index was up 6% in February on an annualized basis, well above the Federal Reserve's 2% target), consumer spending is coming under mounting pressure. Because PayPal rises and falls with discretionary purchases, any deterioration in spending means that the business and the stock could be challenged in 2023.
It's certainly important to understand what's going on right now for investors to have context. But luckily, the fact of the matter is that investing is a long-term game; you should be looking out over the next three to five years when analyzing whether PayPal makes for a good buy today.
In this light, the company might look like an attractive opportunity. Wall Street analysts think that PayPal's revenue and EPS will increase at compound annual rates of 8.3% and 24.2%, respectively, between 2022 and 2026. If these projections pan out, then that would definitely help drive shares higher over time.
To be clear, however, despite its huge lead in the world of digital payments, the business does have powerful competition, most notably from the burgeoning Apple Pay, as well as from Block, which competes more directly with PayPal to attract merchants and individual consumers.
It's up to investors to decide if PayPal's pros outweigh the cons. One thing I am sure about is that the company's next few years will be more difficult than that last few, especially 2023.
10 stocks we like better than PayPal
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They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal 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
Neil Patel has positions in Block. The Motley Fool has positions in and recommends Apple, Block, and PayPal. 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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The ability to produce copious amounts of FCF, coupled with PayPal's net cash position of $5.1 billion (as of Dec. 31), can allow the company to continue to invest in worthwhile growth opportunities when rivals might be a bit more conservative with their capital expenditures. "While the macroeconomic backdrop remains challenging, we're energized by the significant opportunity we have to advance our leadership in payments and better serve our customers," Chief Financial Officer Gabrielle Rabinovitch said on the Q4 2022 earnings call. To be clear, however, despite its huge lead in the world of digital payments, the business does have powerful competition, most notably from the burgeoning Apple Pay, as well as from Block, which competes more directly with PayPal to attract merchants and individual consumers.
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But the management team expects revenue to increase 9% in the current quarter, with Q1 2023 adjusted earnings per share (EPS) rising between 23% and 25% year over year. Wall Street analysts on average expect PayPal sales to jump 6.7% in 2023. Wall Street analysts think that PayPal's revenue and EPS will increase at compound annual rates of 8.3% and 24.2%, respectively, between 2022 and 2026.
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Those who focus on growth stocks like PayPal (NASDAQ: PYPL) have even more to think about in today's market environment. Because PayPal rises and falls with discretionary purchases, any deterioration in spending means that the business and the stock could be challenged in 2023. 10 stocks we like better than PayPal When our award-winning analyst team has a stock tip, it can pay to listen.
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Those who focus on growth stocks like PayPal (NASDAQ: PYPL) have even more to think about in today's market environment. For a business that relies on rising spending for its success, the current environment isn't exactly ideal. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them!
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16645.0
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2023-03-26 00:00:00 UTC
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Wall St Week Ahead-Strength in megacap stocks masks broader U.S. market woes
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-strength-in-megacap-stocks-masks-broader-u.s.-market-woes-0
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By Lewis Krauskopf
NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years.
Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. In that period, the S&P 500 has fallen 0.5%.
Megagaps are attracting bets because of strong balance sheets, robust profit margins and business models expected to hold up better if recession hits, investors said. A recent pullback in U.S. bond yields, whose ascent punished growth stocks last year, is also buoying their prices in 2023.
But their strength could have drawbacks. Megacaps' growing market capitalization means indexes such as the S&P 500 are increasingly driven by a smaller cluster of stocks. That could spur volatility in broader markets if circumstances change and investors make a quick exit from big tech and growth names.
"The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector. However, “when you have crowding you could see a sharp reversal out of nowhere because everyone is in the same area.”
Strength in megacaps also cloaks weakness elsewhere. Measures of market breadth have turned more negative, while the equal-weighted S&P 500 .SPXEW, a proxy for the average stock in the benchmark index, is down over 5% since March.
Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Upcoming U.S. data on consumer confidence and inflation could also sway markets.
Megacaps led the U.S. market in the decade following the financial crisis and spearheaded Wall Street's blistering rebound after the selloff in early 2020 fueled by the coronavirus pandemic. But they tumbled last year, as the Federal Reserve raised interest rates to fight 40-year high inflation.
Their rebound this year accelerated as concerns over the banking system spiked, and the combined weight of Apple and Microsoft in the S&P 500 recently topped 13%. That was the highest in over 30 years for any top two stocks in the index, according to Todd Sohn, technical strategist at Strategas.
The weight of the top five S&P 500 companies has rebounded to 21.7% from 18.8% for the top five stocks at the end of 2022.
As megacaps have rallied, some indicators of breadth, which technical analysts view as gauges of broad market health, have darkened recently.
The number of new 52-week lows on the New York Stock Exchange and Nasdaq was on pace to eclipse new highs for three straight weeks, a reversal after new highs had topped new lows almost every week to start 2023, according to Willie Delwiche, investment strategist at Hi Mount Research.
Further, the percentage of industry groups tracked by Delwiche above their 10-week moving averages has plummeted from 87% in early February to 7% in the latest week.
“After some hopeful signs earlier this year, it’s evidence that the pattern of weakness beneath the surface that we saw last year is re-emerging,” Delwiche said. “We need to see better participation if the indexes are going to be able to sustain the next leg higher.”
The performance of megacaps could suffer if banking worries ease and investors scoop up economically sensitive stocks that have struggled. The S&P 500 energy sector .SPNY is down 7.5% since March 8, while the industrials sector .SPLRCI is off 5%.
A rebound in U.S. bond yields could pressure tech and growth stocks. Earnings growth in the tech sector, meanwhile, is expected to trail the overall S&P 500 in 2023.
Nevertheless, some investors are bullish on megacap stocks.
Despite last year's market swoon, "our bias has been that we think we are still in ... an up trend," said Thomas Martin, senior portfolio manager at GLOBALT Investments, who is overweight many megacaps.
In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here."
Big stocks beat the markethttps://tmsnrt.rs/3nhSCob
Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. "The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Big stocks beat the markethttps://tmsnrt.rs/3nhSCob Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. A rebound in U.S. bond yields could pressure tech and growth stocks. In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here."
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16646.0
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2023-03-26 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-4
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nan
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nan
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When it comes to investing, there are few names as synonymous with success as Warren Buffett. Since taking the reins at Berkshire Hathaway in 1965, Buffett has delivered mind-blowing returns. In fact, a $100 investment in Berkshire Hathaway when he took over would have turned into $2.4 million today.
While we can't say why Buffett and his team select the stocks they do, we know that several factors drive their decisions. They look to invest in quality companies at good prices with strong brands while having a long-term mindset. If you're looking to Buffett's wisdom on what no-brainer stocks are a good buy today, three companies you should consider are Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP).
1. Apple
First added in 2016, Apple stock is the No. 1 holding for Berkshire Hathaway, making up 40% of its portfolio. What makes Apple special is the dominance of its iPhone and other hardware products and the premium prices customers pay.
Apple can command a premium because of its strong brand. According to Interbrand, Apple is the most valuable brand in the world, with a brand value of over $483 billion. Customers are willing to pay up for its products, and over the past decade, Apple's gross profit margin has been just under 40%.
AAPL Gross Profit Margin (Quarterly) data by YCharts
Its free-cash-flow numbers are staggering. Free cash flow is the cash a company has left over after paying for operations and capital assets. This cash can be reinvested in the business, used to pay down debt, or paid out to shareholders -- which Apple has done considerably. Since 2013, Apple has paid its investors $550 billion in stock buybacks.
Apple has done an excellent job with its hardware products and expanded its services revenue, which includes the App Store, Apple TV, and others, with even higher gross margins of 70%. The tech giant sits on a healthy balance sheet with over $165 billion in cash and marketable securities, and its recognizable brand and strong cash flows make this Buffett stock a no-brainer buy and hold for the long haul.
2. Coca-Cola
Coca-Cola is a longtime Buffett stock, in Berkshire Hathaway's portfolio since 1988. Like Apple, Coca-Cola is a leading brand in its industry. According to Interbrand, it is the seventh most recognizable brand in the world, with an estimated brand value of $57 billion.
Brand recognition is another crucial part of Buffett's success. Strong brands give companies a robust economic moat or an ability to maintain a competitive advantage over rivals. As a result, Coca-Cola has brand loyalty that gives it pricing power, which was on full display last year.
Last year its gross profit was $25 billion, up 7.3% from the year before. Despite inflationary pressures in the economy, its net income of $9.5 billion was only down slightly from the year before.
Coca-Cola has done an excellent job of diversifying its product offerings into energy drinks, coffee, and a new sector known as "ready-to-drink," which includes alcoholic beverages in things like seltzer and tea. It's also an excellent dividend stock, raising its payout for 61 consecutive years while yielding investors 3.06%.
3. American Express
Like Apple and Coca-Cola, American Express has carved out a recognizable brand name. Its high-end card products set it apart from competitors and attract premium customers.
In an interview with Bloomberg, Buffett said:
You can't create another American Express. I could create another shoe store. I could create another business publication. I could do all kinds of things with hundreds of billions of dollars, but I can't put in the minds of people what is in their minds about American Express.
Last year American Express added 12.5 million new cards, with millennials and Gen Z making up 60% of its acquisitions.
American Express' high-end customers could prove to be more resilient than others with their ability to better withstand inflationary and recessionary pressures. The company also has a quality loan book, with net write-offs of 1.1% and 1% of member loans 30 days past due, which remains below pre-pandemic levels. With its strong brand and premium customer base, American Express is another no-brainer Buffett stock to buy today.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 8, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Courtney Carlsen has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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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If you're looking to Buffett's wisdom on what no-brainer stocks are a good buy today, three companies you should consider are Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP). AAPL Gross Profit Margin (Quarterly) data by YCharts Its free-cash-flow numbers are staggering. Strong brands give companies a robust economic moat or an ability to maintain a competitive advantage over rivals.
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If you're looking to Buffett's wisdom on what no-brainer stocks are a good buy today, three companies you should consider are Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP). AAPL Gross Profit Margin (Quarterly) data by YCharts Its free-cash-flow numbers are staggering. The tech giant sits on a healthy balance sheet with over $165 billion in cash and marketable securities, and its recognizable brand and strong cash flows make this Buffett stock a no-brainer buy and hold for the long haul.
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If you're looking to Buffett's wisdom on what no-brainer stocks are a good buy today, three companies you should consider are Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP). AAPL Gross Profit Margin (Quarterly) data by YCharts Its free-cash-flow numbers are staggering. American Express Like Apple and Coca-Cola, American Express has carved out a recognizable brand name.
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If you're looking to Buffett's wisdom on what no-brainer stocks are a good buy today, three companies you should consider are Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP). AAPL Gross Profit Margin (Quarterly) data by YCharts Its free-cash-flow numbers are staggering. They look to invest in quality companies at good prices with strong brands while having a long-term mindset.
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16647.0
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2023-03-25 00:00:00 UTC
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3 Warren Buffett Stocks That Are Crushing the S&P 500 This Year. Are They Still Smart Picks?
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-are-crushing-the-sp-500-this-year.-are-they-still-smart-picks
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nan
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Warren Buffett isn't beating the market so far in 2023. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) stock performance lags well behind the S&P 500.
However, it's a much different story for some of Berkshire's holdings. Here are three Buffett stocks that are crushing the S&P 500 this year.
1. Floor & Decor Holdings
Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far. Shares of the specialty retailer have skyrocketed close to 34%, while the S&P 500 has risen less than 5%.
Berkshire first initiated a position in Floor & Decor in 2021. It scooped up more shares last year. The giant conglomerate now owns 4.5% of the company.
The big year-to-date gains for Floor & Decor mark a stark contrast to the 46% decline in 2022. What happened? An improving overall stock market helped.
Floor & Decor also announced better-than-expected Q4 results last month. The company's net sales jumped 14.6% year over year to $1.05 billion. Floor & Decor also projected that 2023 net sales will rise nearly 10%, based on the midpoint of its guidance range.
2. Apple
Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. The huge tech stock is the largest holding, by far, in Buffett's Berkshire portfolio. It's also one of Buffett's biggest winners this year, with a solid gain of over 23% after falling 27% in 2022.
Two months ago, Apple announced worse-than-expected fiscal 2023 Q1 revenue and earnings results. How has the stock beaten the market anyway? It boils down to anticipation about the future.
The company could have a new AR/VR (augmented reality/virtual reality) headset on the way. Apple is reportedly considering launching an iPhone subscription service. Several Wall Street analysts have raised their price targets on the stock in part because of these expectations.
3. Amazon
Amazon (NASDAQ: AMZN) stands out as another turnaround story for Buffett this year. In 2022, the stock plunged nearly 50%. So far in 2023, though, Amazon's shares are up close to 17%.
Buffett hasn't been buying Amazon stock lately. Berkshire's position in the e-commerce and cloud services leader amounts to only 0.3% of its total portfolio. That's still more than twice as large as the stake in Floor & Decor, though.
There have been several positive developments for Amazon over the last couple of months. For example, the company announced earlier this week that it's collaborating with Nvidia to build the most scalable artificial intelligence (AI) infrastructure on the market using Amazon Web Services (AWS) and Nvidia's chips.
Amazon has also taken steps to boost its profitability. It's expanding into new areas, as well, completing the acquisition of primary care provider One Medical in February.
Are they still smart picks?
While all three of these stocks are hot right now, momentum can quickly fizzle. Are they still smart picks? I think so.
Floor & Decor continues to expand. The retailer plans to open up to 35 warehouse stores this year.
Sure, higher interest rates have dampened the housing market somewhat. However, there's still a national housing shortage. That should provide a tailwind to Floor & Decor in the coming years.
I like Apple for the same reasons that Buffett does. It's a fantastic business with a strong moat. My hunch is that Buffett could be buying even more shares of Apple this quarter.
As for Amazon, I wouldn't be surprised if the stock doubles or more over the next seven years. Amazon certainly has room for growth in e-commerce. But I'm most excited about the prospects for its AWS cloud business. I look for an AI boom to significantly benefit AWS over the next decade and beyond.
10 stocks we like better than Amazon.com
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 Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon.com, Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Nvidia. 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 Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Floor & Decor also projected that 2023 net sales will rise nearly 10%, based on the midpoint of its guidance range. Several Wall Street analysts have raised their price targets on the stock in part because of these expectations.
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Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) stock performance lags well behind the S&P 500. Floor & Decor Holdings Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far.
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Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Floor & Decor Holdings Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far. Buffett hasn't been buying Amazon stock lately.
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Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. The company's net sales jumped 14.6% year over year to $1.05 billion. Buffett hasn't been buying Amazon stock lately.
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16648.0
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2023-03-24 00:00:00 UTC
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Notable Friday Option Activity: ENPH, AAPL, COST
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AAPL
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-enph-aapl-cost
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Enphase Energy Inc. (Symbol: ENPH), where a total of 37,713 contracts have traded so far, representing approximately 3.8 million underlying shares. That amounts to about 102.2% of ENPH's average daily trading volume over the past month of 3.7 million shares. Especially high volume was seen for the $195 strike put option expiring March 24, 2023, with 2,408 contracts trading so far today, representing approximately 240,800 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $495 strike call option expiring March 24, 2023, with 1,539 contracts trading so far today, representing approximately 153,900 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $495 strike highlighted in orange:
For the various different available expirations for ENPH options, AAPL options, or COST options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ONCS Insider Buying
MDP Stock Predictions
WTI Stock Predictions
The views and 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 $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares.
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16649.0
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2023-03-24 00:00:00 UTC
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Wall St Week Ahead-Strength in megacap stocks masks broader U.S. market woes
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-strength-in-megacap-stocks-masks-broader-u.s.-market-woes
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nan
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nan
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By Lewis Krauskopf
NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years.
Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. In that period, the S&P 500 has fallen 0.5%.
Megagaps are attracting bets because of strong balance sheets, robust profit margins and business models expected to hold up better if recession hits, investors said. A recent pullback in U.S. bond yields, whose ascent punished growth stocks last year, is also buoying their prices in 2023.
But their strength could have drawbacks. Megacaps' growing market capitalization means indexes such as the S&P 500 are increasingly driven by a smaller cluster of stocks. That could spur volatility in broader markets if circumstances change and investors make a quick exit from big tech and growth names.
"The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector. However, “when you have crowding you could see a sharp reversal out of nowhere because everyone is in the same area.”
Strength in megacaps also cloaks weakness elsewhere. Measures of market breadth have turned more negative, while the equal-weighted S&P 500 .SPXEW, a proxy for the average stock in the benchmark index, is down over 5% since March.
Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Upcoming U.S. data on consumer confidence and inflation could also sway markets.
Megacaps led the U.S. market in the decade following the financial crisis and spearheaded Wall Street's blistering rebound after the selloff in early 2020 fueled by the coronavirus pandemic. But they tumbled last year, as the Federal Reserve raised interest rates to fight 40-year high inflation.
Their rebound this year accelerated as concerns over the banking system spiked, and the combined weight of Apple and Microsoft in the S&P 500 recently topped 13%. That was the highest in over 30 years for any top two stocks in the index, according to Todd Sohn, technical strategist at Strategas.
The weight of the top five S&P 500 companies has rebounded to 21.7% from 18.8% for the top five stocks at the end of 2022.
As megacaps have rallied, some indicators of breadth, which technical analysts view as gauges of broad market health, have darkened recently.
The number of new 52-week lows on the New York Stock Exchange and Nasdaq was on pace to eclipse new highs for three straight weeks, a reversal after new highs had topped new lows almost every week to start 2023, according to Willie Delwiche, investment strategist at Hi Mount Research.
Further, the percentage of industry groups tracked by Delwiche above their 10-week moving averages has plummeted from 87% in early February to 7% in the latest week.
“After some hopeful signs earlier this year, it’s evidence that the pattern of weakness beneath the surface that we saw last year is re-emerging,” Delwiche said. “We need to see better participation if the indexes are going to be able to sustain the next leg higher.”
The performance of megacaps could suffer if banking worries ease and investors scoop up economically sensitive stocks that have struggled. The S&P 500 energy sector .SPNY is down 7.5% since March 8, while the industrials sector .SPLRCI is off 5%.
A rebound in U.S. bond yields could pressure tech and growth stocks. Earnings growth in the tech sector, meanwhile, is expected to trail the overall S&P 500 in 2023.
Nevertheless, some investors are bullish on megacap stocks.
Despite last year's market swoon, "our bias has been that we think we are still in ... an up trend," said Thomas Martin, senior portfolio manager at GLOBALT Investments, who is overweight many megacaps.
In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here."
Big stocks beat the markethttps://tmsnrt.rs/3nhSCob
Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. "The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Big stocks beat the markethttps://tmsnrt.rs/3nhSCob Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. A rebound in U.S. bond yields could pressure tech and growth stocks. In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here."
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16650.0
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2023-03-24 00:00:00 UTC
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1 Big Reason to Buy This Nasdaq Stock Hand Over Fist Before It Is Too Late
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AAPL
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https://www.nasdaq.com/articles/1-big-reason-to-buy-this-nasdaq-stock-hand-over-fist-before-it-is-too-late
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nan
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nan
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Apple (NASDAQ: AAPL) stock has been a solid performer on the stock market in 2023, with gains of 27% so far. Investment bank Goldman Sachs expects the technology giant to sustain its impressive rally and head higher thanks to a massive installed base of users, as well as the growth of its services business and innovation in new areas.
Goldman gave Apple stock its first buy rating in almost six years. The stock has jumped over 300% since the investment bank's previous buy rating, and analyst Michael Ng, who is now covering the company, has a $199 price target on Apple. That points toward 25% upside from current levels. Ng believes that Apple's solid brand equity has helped the company build a huge user base, which would play a key role in driving growth in the company's high-margin services business.
Given that Apple could reportedly be taking steps to boost its installed base further, it won't be surprising to see this tech stock surpass Goldman's price target and head higher in the long run. Let's look at one such potential catalyst that could send Apple stock higher in the long run.
Apple can snatch more users from the Android ecosystem
Supply chain rumors suggest that Apple could reportedly update the budget-friendly iPhone SE next year. According to noted Apple analyst Ming-Chi Kuo, Apple may use the iPhone 14's form factor for the next iPhone SE and may even give the device an organic light-emitting diode (OLED) display instead of the legacy liquid-crystal display (LCD).
Apple released the current generation iPhone SE last year, equipping the device with 5G wireless capability and a 4.7-inch LCD screen. The device was launched at an opportune time, given rising inflation and macroeconomic uncertainties, which explains why the iPhone SE turned out to be a popular smartphone in 2022. According to Counterpoint Research, the iPhone SE ranked ninth on the list of 10 best-selling smartphones globally last year.
The research firm estimates that the device captured 1.1% of global smartphone volumes in 2022. As an estimated 1.2 billion smartphones were shipped last year, the iPhone SE should have sold at least 13 million units, per Counterpoint. That would translate into just under 6% of Apple's overall shipments of 226 million units last year.
The next iteration of this device could be more successful, given the updates that Apple is likely to bring in the form of a bigger screen and better display. These updates should help the company capitalize on the trend of users switching from Android devices to iPhones.
On Apple's February earnings conference call, CFO Luca Maestri pointed out that the company saw "record levels of switchers in India and in Mexico." CEO Tim Cook also acknowledged the role played by switchers from Android to iOS in helping Apple hit an installed base of 2 billion devices. Apple ended 2022 with an 18.8% share of the global smartphone market, an increase of 1.5 percentage points over the prior year.
Given that the rumored 2024 iPhone SE is expected to be priced around $500, Apple could continue to win over more customers from the Android ecosystem. That's because midrange Android smartphones are priced between $450 to $650, and the potential pricing of the next iPhone SE could be below the $608 average selling price (ASP) of 5G smartphones seen last year.
All this indicates that Apple's installed base of iPhones could keep heading higher in the future. This should pave the way for stronger growth in the company's services business, apart from creating a new pool of customers that could upgrade to more expensive iPhones or even purchase other products in the long run.
A better entry-level iPhone could be a boon in the long run
An estimated 910 million 5G smartphones were shipped in 2022, according to CCS Insights. That number is expected to jump to 1.39 billion units by 2025. At the same time, the ASP of 5G smartphones is expected to shrink and drop to $444 by 2026.
So Apple would be doing the right thing by giving regular updates to its entry-level smartphone in the coming years, as it could play an important role in helping the company maintain its dominance in the 5G smartphone space. After all, midtier smartphones command just over a third of overall smartphone shipments globally.
Apple controlled just over 29% of the 5G smartphone market a year ago. Having a solid midrange smartphone in its lineup will help Apple maintain its grip over the 5G smartphone market in the long run, especially considering the way this space is expected to grow.
If Apple continues to hold even a quarter of the 5G smartphone market in 2025, its annual iPhone shipments could hit almost 350 million units (based on CCS Insights' 1.39 billion units shipment estimate). That would be a big improvement over last year's shipment of 226 million units. The iPhone generated just under $200 billion in revenue in 2022, which means the ASP of each unit was just over $883.
If Apple's iPhone ASP declines even by 10% after three years to $795 amid growing competition, the company could generate $278 billion in iPhone revenue in 2025 if it does manage to move 350 million units during the year (based on the assumption made in the previous paragraph). That would be an improvement of 39% over Apple's 2022 iPhone revenue.
Given that the iPhone is Apple's biggest source of revenue and produced 56% of its top line last quarter, a healthy bump in iPhone sales and the related increase in demand for its services business would give the company's top and bottom lines a boost in the long run. This is why savvy investors should consider buying this tech stock before it is too late.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group. 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 (NASDAQ: AAPL) stock has been a solid performer on the stock market in 2023, with gains of 27% so far. Investment bank Goldman Sachs expects the technology giant to sustain its impressive rally and head higher thanks to a massive installed base of users, as well as the growth of its services business and innovation in new areas. Given that Apple could reportedly be taking steps to boost its installed base further, it won't be surprising to see this tech stock surpass Goldman's price target and head higher in the long run.
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Apple (NASDAQ: AAPL) stock has been a solid performer on the stock market in 2023, with gains of 27% so far. Given that Apple could reportedly be taking steps to boost its installed base further, it won't be surprising to see this tech stock surpass Goldman's price target and head higher in the long run. CEO Tim Cook also acknowledged the role played by switchers from Android to iOS in helping Apple hit an installed base of 2 billion devices.
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Apple (NASDAQ: AAPL) stock has been a solid performer on the stock market in 2023, with gains of 27% so far. According to noted Apple analyst Ming-Chi Kuo, Apple may use the iPhone 14's form factor for the next iPhone SE and may even give the device an organic light-emitting diode (OLED) display instead of the legacy liquid-crystal display (LCD). If Apple continues to hold even a quarter of the 5G smartphone market in 2025, its annual iPhone shipments could hit almost 350 million units (based on CCS Insights' 1.39 billion units shipment estimate).
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Apple (NASDAQ: AAPL) stock has been a solid performer on the stock market in 2023, with gains of 27% so far. Having a solid midrange smartphone in its lineup will help Apple maintain its grip over the 5G smartphone market in the long run, especially considering the way this space is expected to grow. If Apple continues to hold even a quarter of the 5G smartphone market in 2025, its annual iPhone shipments could hit almost 350 million units (based on CCS Insights' 1.39 billion units shipment estimate).
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16651.0
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2023-03-24 00:00:00 UTC
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10 Small-Cap Stocks to Sell Now
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AAPL
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https://www.nasdaq.com/articles/10-small-cap-stocks-to-sell-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With Wall Street laser-focused on the banking crisis, there was a group of stocks that didn’t receive a lot of love this week: small-cap stocks.
However, I think there is tremendous opportunity in select small-cap stocks right now – and it’s all about investing in the right ones. So, in today’s Market 360, I’ll share an exciting phenomenon that is currently opening a window for huge gains in small caps. But before we dive in, let’s first review what a small-cap stock is.
Here’s What You Need to Know
Small-cap companies can be some of the most innovative and profitable on the market. Though they are sometimes misinterpreted as only startups or brand-new companies, they are technically just companies whose total market value, or market capitalization, ranges from about $300 million to $2 billion. Large-cap stocks, in comparison, have a market value of $10 billion or higher.
The appeal of small-cap stocks is that, because they are small and often trade at lower prices, there is greater potential for big gains in a short period of time. There is also hope that a small-cap stock could become the next Apple Inc. (AAPL) or Amazon.com, Inc. (AMZN).
But the reality is that with greater growth comes greater risk and volatility, and small-cap stocks can often lack stability. For example, the Russell 2000, the small-cap index, fell 22.3% in 2022. Compare that to the S&P 500’s 19.7% decline and the Dow’s 9.2% fall. If you pick the wrong small-cap stock, you could end up with a real dud on your hands and do serious damage to your portfolio.
Luckily for you, my proprietary stock-picking system can help you find the winners and avoid the losers. It analyses over 6,000 stocks and gives them an A-F grade. An A- or B-rating means the stock is a “Buy,” a C-rating makes the stock a “Hold,” while a D- or F-rating means the stock is a “Sell.”
For example, my system flagged Aehr Test Systems (AEHR) on August 5, 2022, which went on to rally more than 135% from August 5, 2022, to February 1, 2023! Compare that to the Russell 2000’s 2% rise over the same time period. Or consider Calix, Inc. (CALX), which my system gave the green light on February 5, 2021. By November 2, 2022, CALX surged about 125%. For perspective, the Russell 2000 fell nearly 20% over that same time period.
For today, I want to share with you 10 small-cap stocks that my system recommends staying far away from. You’ll notice that each holds a D- or F-rating, which means they are “Sells” right now. Even though they are trading at low prices, these cheap stocks are not good bargains.
TICKER COMPANY NAME TOTAL GRADE
ADV Advantage Solutions Inc Class A F
BAK Braskem S.A. Sponsored ADR Pfd Class A F
BIG Big Lots, Inc. F
EQX Equinox Gold Corp. D
GMRE Global Medical REIT, Inc. D
HBI Hanesbrands Inc. F
KRO Kronos Worldwide, Inc. D
MERC Mercer International Inc. D
PGRE Paramount Group, Inc. F
STER Sterling Check Corp. D
This doesn’t mean that you should avoid low-priced/small-cap stocks completely – far from it. In fact, right now we’re in the midst of an emerging opportunity in the small-cap market.
It’s a near-perfect setup where the return potential hidden within certain small-cap stocks becomes intensified leading to potentially even bigger gains. And this happens around times of peak market uncertainty like we are experiencing today.
I revealed exactly why in my special Two Huge Predictions 2023 presentation yesterday. (I’ll give you a hint here, it has to do with misinformation.) I also shared how my Lie Detector system works, as well as my two huge predictions that are so powerful they could change the entire course of your 2023 earnings season. I also give away the name of a company – ticker symbol and all – that’s poised to skyrocket over the next 12 months.
If you missed my Two Huge Predictions 2023 presentation, don’t worry, you can catch a replay of it by clicking here.
Sincerely,
Source: InvestorPlace unless otherwise noted
Louis Navellier
P.S. I recently sent out a VIP briefing all about my two biggest predictions for 2023: One that will give you a chance to make a lot of money this year… a little-known stock set to skyrocket 500% or more in the coming months.
The other, my dire prediction for America’s next shocking bankruptcy… A darling of Wall Street that’s sitting in lots of unsuspecting portfolios right now. So, if you want to do more than simply tread water in 2023, you can start by watching my special Two Huge Predictions 2023 presentation to know how to best position your portfolio.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Amazon.com, Inc. (AMZN), Calix, Inc. (CALX), Mercer International Inc. (MERC)
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 10 Small-Cap Stocks to Sell 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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There is also hope that a small-cap stock could become the next Apple Inc. (AAPL) or Amazon.com, Inc. (AMZN). The appeal of small-cap stocks is that, because they are small and often trade at lower prices, there is greater potential for big gains in a short period of time. I recently sent out a VIP briefing all about my two biggest predictions for 2023: One that will give you a chance to make a lot of money this year… a little-known stock set to skyrocket 500% or more in the coming months.
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There is also hope that a small-cap stock could become the next Apple Inc. (AAPL) or Amazon.com, Inc. (AMZN). InvestorPlace - Stock Market News, Stock Advice & Trading Tips With Wall Street laser-focused on the banking crisis, there was a group of stocks that didn’t receive a lot of love this week: small-cap stocks. The appeal of small-cap stocks is that, because they are small and often trade at lower prices, there is greater potential for big gains in a short period of time.
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There is also hope that a small-cap stock could become the next Apple Inc. (AAPL) or Amazon.com, Inc. (AMZN). InvestorPlace - Stock Market News, Stock Advice & Trading Tips With Wall Street laser-focused on the banking crisis, there was a group of stocks that didn’t receive a lot of love this week: small-cap stocks. An A- or B-rating means the stock is a “Buy,” a C-rating makes the stock a “Hold,” while a D- or F-rating means the stock is a “Sell.” For example, my system flagged Aehr Test Systems (AEHR) on August 5, 2022, which went on to rally more than 135% from August 5, 2022, to February 1, 2023!
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There is also hope that a small-cap stock could become the next Apple Inc. (AAPL) or Amazon.com, Inc. (AMZN). The appeal of small-cap stocks is that, because they are small and often trade at lower prices, there is greater potential for big gains in a short period of time. Compare that to the Russell 2000’s 2% rise over the same time period.
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16652.0
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2023-03-24 00:00:00 UTC
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VettaFi Voices On: Where the Fed Goes Next on Rate Hikes
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AAPL
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https://www.nasdaq.com/articles/vettafi-voices-on%3A-where-the-fed-goes-next-on-rate-hikes
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nan
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nan
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Leading into "Fed Day" on Wednesday, some market observers had suggested the Federal Reserve wouldn't raise interest rates, in order to avoid adding even more volatility to markets following the bank crisis drama. The Fed raised them anyway. For this week's watercooler conversation, the VettaFi Voices assess the impact of yet more Fed rate hikes, and what it all might mean for bond and equity risk.
Todd Rosenbluth, director of ETF research: I think many investors thought a 25 basis point hike was likely, although some might have hoped the Fed would pause, given the banking crisis that is still an issue. But the lack of confidence on the Fed's next moves is evident. The Fed does not expect to cut rates at all for the rest of 2023, but the market was still expecting it as of Wednesday. I think the iShares 20+ Year Treasury Bond ETF (TLT) is a good indication of this. This is one of the most interest rate sensitive ETFs around, with a duration of 18 years. TLT rose on Wednesday, climbing even higher after the Fed announcement and Powell's press conference, only to give all those gains back, as of 11:30 AM Thursday.
On a recent webcast, advisors told us they saw the greatest investment opportunities in fixed rate, short term Treasury bond ETFs: funds like the Vanguard Short-Term Treasury ETF (VGSH), and the iShares 1-3 Year Treasury Bond ETF (SHY), as well as floating rate ETFs like the WisdomTree Floating Rate Treasury Fund (USFR), because of the relative safety and compelling yields. USFR has pulled in $1.6 billion in the past month and over $440 million in the last week; it's becoming one of the go-to vehicles for short-term Treasury exposure.
Meanwhile, we are seeing some increased interest in high yield bond ETFs, which don't have the same level of interest rate risk but sport 8% yields. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg High Yield Bond ETF (JNK) have seen inflows in the past week and engagement for high yield on VettaFi platforms is higher than it was a month earlier.
Within equities, growth ETFs like the Invesco QQQ Trust (QQQ) and technology ETFs like the Technology Select Sector SPDR (XLK) are the standouts. Roxanna Islam has a great piece out this week on this topic, so I will not steal her efforts.
We have seen investors turn to gold ETFs, which we talked about in last week's "VettaFi Voices On", as the uncertainty in the global economy and in US monetary policy has created reasons to look for tactical safe havens. The SPDR Gold Shares ETF (GLD) and the iShares Gold Trust (IAU), which are the more institutionally focused gold ETFs, have seen inflows, while the more retail friendly SPDR Gold MiniShares Trust (GLDM) has not seen much.
Stacey, how has oil been acting, and what impact does this have on MLPs?
Stacey Morris, head of energy research: The US oil benchmark has rebounded back above $70 per barrel, recovering some of its losses from last week when the banking crisis and risk-off sentiment weighed on the commodity. MLPs are less exposed to oil volatility because of their fee-based business model. As such, they held up better than other energy subsectors last week.
MLPs could be an interesting alternative to high yield bonds. To be clear, MLPs are not a proxy for fixed income, but MLPs are also yielding around 8%. As we mentioned on a webcast earlier in the week, investment-grade companies represent ~76% of the underlying index for the Alerian MLP ETF (AMLP) by weighting. Based on distributions (dividends) paid in 1Q23, approximately 92% of AMLP's underlying index increased its payout over the last year. I remain constructive on the outlook for MLP distributions as companies continue to generate solid free cash flow.
Dave Nadig, financial futurist: I called this the banking crisis the most boring crisis ever only partially in jest, but honestly, much of this has played out according to the "common wisdom" playbook. Fed Chair Powell did, I thought, extremely well in the press conference, other than a stumble here or there in the Q&A. But what he needed to do -- what the Fed needed to do -- was convince people that the adults were in charge. Things were going great until Yellen spoke. Which is why I think this chart is FASCINATING:
That's the 2-Year Treasury plotted against the SPDR S&P 500 ETF Trust (SPY). It's a decent way of thinking about market reaction: Did the market go long equities, or run for cover? Initially, both stocks and bonds traded up: Essentially, people heard what they wanted to hear out of the gate. But over the course of the presser, Janet Yellen simultaneously contradicted Powell's carefully constructed "banks are safe" narrative. Stocks then sold off and bonds went even higher. After which, the equity market took a LONG time compared to the bond market to (probably correctly) parse that the adults weren't actually talking to each other.
Rosenbluth: I agree Powell showed that the Fed was on the case and even made it clear what words mattered most in the statement. But I think they still do not have a clear sense of what might happen next. That’s why the market is ahead of the Fed, last I checked.
Nadig: What does all this mean for your portfolio right now? Well, you have to pay pretty close attention and probably not make any sudden moves. Having leadership that's more toddler than parent means more volatility. Directionally, it will probably make no difference: The U.S. isn't going to start letting depositors lose money, and I think the market really knows it. But it's also clear there's huge room for improvement on messaging.
Bottom line: the commitment to getting inflation down is strong. We could argue about whether they did too much, too fast, but here we are, with a still-hawkish Fed but with pretty clear visibility to the terminal state.
Roxanna Islam, associate director of research: I think Wednesday was really interesting because even though there was a 25 bps rate hike, it wasn't unexpected. Many investors actually took away a few positives from the meeting--mainly that the Fed removed language about "ongoing increases," which means that interest rate hikes could be nearing an end. Many are expecting at most one more rate hike, but there's a good amount of people out there that think this may be the last one.
Even though the Fed also stated that there won't be any rate decreases in 2023, I still think there's more confidence returning back to growth and tech sectors. A lot of that is in large-cap tech stocks like Microsoft (MSFT) and Apple (AAPL) along with some large-cap semiconductor stocks like Nvidia (NVDA). The Technology Select Sector SPDR Fund (XLK) was up 1.6% mid-day on Thursday, and semiconductor ETFs were up even more. The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) were both up 2.7% as of Thursday.
Semiconductor ETFs have seen a lot of interest lately, and it's not just because they hold a lot of large-cap tech stock, like NVDA or Advanced Micro Devices (AMD). There's a lot of interest stemming from ChatGPT and other artificial intelligence, which lately has been one of the more optimistic stories (considering all that we've seen recently including a banking collapse, crypto turmoil, and ongoing inflationary concerns). I actually touched on this in my note for this week.
Yet interest rate hikes affect us as consumers -- and those hikes are going to make it harder for people to buy homes, cars, or put money on credit cards. That has to be considered as well, especially since consumers are basically 2/3 of the economy. So the fact that this is possibly one of the last rate hikes can provide some relief.
Rosenbluth: To Dave's point about whether you need to do anything differently, this is an environment when active ETFs could make sense. If you don't want to manage the duration of your fixed income allocation there are many well established active asset managers offering core bond ETF strategies including Capital Group, Franklin Templeton, JPMorgan, PIMCO, T. Rowe Price, and many others with the same macro expertise you'd expect, but in a more tax efficient, liquid product.
Nadig: I guess there's a middle ground here, too. It's definitely a time to pay attention, but it's never a good idea to actively be repositioning portfolios in high-volatility, high-uncertainty markets (which is how I would describe this little window of regulators not coordinating well). For sure, this is a case where an active bond manager can really earn their stripes. But I wouldn't recommend anyone going whole hog into a narrow corner of the bond market just because something seems cheap, or worse, shiny.
For more news, information, and analysis, visit the Modern Alpha Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). 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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A lot of that is in large-cap tech stocks like Microsoft (MSFT) and Apple (AAPL) along with some large-cap semiconductor stocks like Nvidia (NVDA). We have seen investors turn to gold ETFs, which we talked about in last week's "VettaFi Voices On", as the uncertainty in the global economy and in US monetary policy has created reasons to look for tactical safe havens. Stacey Morris, head of energy research: The US oil benchmark has rebounded back above $70 per barrel, recovering some of its losses from last week when the banking crisis and risk-off sentiment weighed on the commodity.
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A lot of that is in large-cap tech stocks like Microsoft (MSFT) and Apple (AAPL) along with some large-cap semiconductor stocks like Nvidia (NVDA). On a recent webcast, advisors told us they saw the greatest investment opportunities in fixed rate, short term Treasury bond ETFs: funds like the Vanguard Short-Term Treasury ETF (VGSH), and the iShares 1-3 Year Treasury Bond ETF (SHY), as well as floating rate ETFs like the WisdomTree Floating Rate Treasury Fund (USFR), because of the relative safety and compelling yields. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg High Yield Bond ETF (JNK) have seen inflows in the past week and engagement for high yield on VettaFi platforms is higher than it was a month earlier.
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A lot of that is in large-cap tech stocks like Microsoft (MSFT) and Apple (AAPL) along with some large-cap semiconductor stocks like Nvidia (NVDA). On a recent webcast, advisors told us they saw the greatest investment opportunities in fixed rate, short term Treasury bond ETFs: funds like the Vanguard Short-Term Treasury ETF (VGSH), and the iShares 1-3 Year Treasury Bond ETF (SHY), as well as floating rate ETFs like the WisdomTree Floating Rate Treasury Fund (USFR), because of the relative safety and compelling yields. Meanwhile, we are seeing some increased interest in high yield bond ETFs, which don't have the same level of interest rate risk but sport 8% yields.
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A lot of that is in large-cap tech stocks like Microsoft (MSFT) and Apple (AAPL) along with some large-cap semiconductor stocks like Nvidia (NVDA). After which, the equity market took a LONG time compared to the bond market to (probably correctly) parse that the adults weren't actually talking to each other. Roxanna Islam, associate director of research: I think Wednesday was really interesting because even though there was a 25 bps rate hike, it wasn't unexpected.
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2023-03-24 00:00:00 UTC
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Apple (AAPL) Deepens Focus on Streaming, Movie Business
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-deepens-focus-on-streaming-movie-business
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nan
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nan
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Apple AAPL is deepening its focus on expanding its footprint in the entertainment business with plans to spend $1 billion on producing movies. Per Bloomberg, the iPhone maker has already approached movie studios to ink partnerships that will help it to release films in theaters.
Apple’s latest move reflects its strategy to attract subscribers to its streaming service, Apple TV+. It is working with prominent filmmakers like Martin Scorsese, Matthew Vaughn and Ridley Scott to improve content for the service.
Apple TV+, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes Ted Lasso. Its animated movie The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA.
Apple’s impressive run at the Academy Awards has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN, Netflix and Disney+.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple TV+ is also expanding into different genres like live sports. Apple TV+ is set to stream Friday Night Baseball, a weekly doubleheader, beginning Apr 7. Moreover, MLS Season Pass, a subscription service, is now available on the Apple TV app in more than 100 countries and regions.
Apple TV+ Popularity to Benefit Services Business
The growing popularity of Apple TV+ and services like Fitness+ have been beneficial for Apple’s Services business, which has become a major revenue-generating source in recent times.
The Services portfolio currently has more than 935 million paid subscribers and accounted for 17.7% of sales in the fiscal first quarter. Services revenues increased 6.4% from the year-ago quarter to $20.77 billion.
For the fiscal second quarter, Services revenues are expected to grow year over year despite challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
Apple shares have outperformed the Zacks Computer and Technology sector in the past year. While AAPL shares have declined 8.7%, Netflix, Disney and Amazon shares have declined 12.7%, 32% and 40.6%, respectively.
The Zacks Consensus Estimate for Apple’s fiscal second-quarter earnings has increased by a penny to $1.44 over the past 30 days.
This Zacks Rank #3 (Hold) company expects fiscal second quarter’s year-over-year revenue growth to be similar to that of the December (fiscal first) quarter due to unfavorable forex. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is deepening its focus on expanding its footprint in the entertainment business with plans to spend $1 billion on producing movies. While AAPL shares have declined 8.7%, Netflix, Disney and Amazon shares have declined 12.7%, 32% and 40.6%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While AAPL shares have declined 8.7%, Netflix, Disney and Amazon shares have declined 12.7%, 32% and 40.6%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is deepening its focus on expanding its footprint in the entertainment business with plans to spend $1 billion on producing movies.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is deepening its focus on expanding its footprint in the entertainment business with plans to spend $1 billion on producing movies. While AAPL shares have declined 8.7%, Netflix, Disney and Amazon shares have declined 12.7%, 32% and 40.6%, respectively.
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Apple AAPL is deepening its focus on expanding its footprint in the entertainment business with plans to spend $1 billion on producing movies. While AAPL shares have declined 8.7%, Netflix, Disney and Amazon shares have declined 12.7%, 32% and 40.6%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-03-24 00:00:00 UTC
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2 Dow Stocks To Watch Today
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AAPL
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https://www.nasdaq.com/articles/2-dow-stocks-to-watch-today
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nan
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nan
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The Dow Jones Industrial Average (DJIA) is one of the world’s most popular stock market indices. It is made up of 30 large-cap blue-chip companies that are industry leaders in their respective fields. These businesses were chosen for their reputation, growth potential, and overall financial health.
The DJIA’s constituent companies come from a wide range of industries, including technology, healthcare, financial services, and consumer goods. Apple (NASDAQ: AAPL), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ) are among the most well-known names on the list. These companies are considered stable and reliable investments for both individual and institutional investors due to their size and reputation.
Furthermore, investing in Dow stocks can provide investors with exposure to some of the world’s largest and most stable corporations. However, it is important to note that the DJIA’s performance is not always indicative of the overall market or the performance of individual stocks. Before making any investment decisions, as with any other, it is critical to conduct extensive research and analysis. Keeping this on top of mind, here are two dow stocks for your late March 2023 watchlist.
Dow Jones Stocks To Watch Now
UnitedHealth Group Inc (NYSE: UNH)
McDonald’s Corporation (NYSE: MCD)
UnitedHealth Group (UNH Stock)
UnitedHealth Group Inc. (UNH) is a healthcare company that provides health insurance and healthcare services. The company’s offerings include healthcare plans, pharmaceutical benefits management, and healthcare technology services. UnitedHealth Group is one of the largest healthcare companies in the world, with operations in the United States and several international markets.
This week, the company announced the date it will release its first quarter 2023 financial and operating results. UNH reported that it will report its Q1 2023 results on Friday, April 14, 2023, ahead of the U.S. stock market opening. To recap, in Q4 2022, the company reported a beat with earnings of $5.34 per share, with revenue of $82.8 billion.
Year-to-date, shares of UNH stock have slipped by 9.39%. Meanwhile, on Friday’s late-morning trading session, UNH stock is trading flat on the day so far at $469.96 a share.
Source: TD Ameritrade TOS
[Read More] Best Dividend Stocks To Watch In 2023? 3 To Know
McDonald’s Corp. (MCD Stock)
McDonald’s Corporation (MCD) is a global fast-food restaurant chain that operates in over 100 countries. The company is one of the most recognized brands in the world and has a long-standing reputation for innovation and marketing prowess.
At the end of January, McDonald’s announced a beat for its Q4 2022 earnings results. Specifically, the company posted an EPS of $2.59 versus estimates of $2.46 per share. Additionally, MCD reported revenue of $5.9 billion in comparison to analysts’ estimates of $5.6 billion. What’s more, McDonald’s also offers an annual dividend yield of 2.26%.
Looking at MCD stock since the start of 2023, shares are up by 1.84% YTD. Though, ahead of Friday’s lunchtime session, shares of Mcdonald’s stock are trading slightly lower on the day by 0.16% at $269.20 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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Apple (NASDAQ: AAPL), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ) are among the most well-known names on the list. The DJIA’s constituent companies come from a wide range of industries, including technology, healthcare, financial services, and consumer goods. UnitedHealth Group is one of the largest healthcare companies in the world, with operations in the United States and several international markets.
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Apple (NASDAQ: AAPL), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ) are among the most well-known names on the list. The DJIA’s constituent companies come from a wide range of industries, including technology, healthcare, financial services, and consumer goods. Dow Jones Stocks To Watch Now UnitedHealth Group Inc (NYSE: UNH) McDonald’s Corporation (NYSE: MCD) UnitedHealth Group (UNH Stock) UnitedHealth Group Inc. (UNH) is a healthcare company that provides health insurance and healthcare services.
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Apple (NASDAQ: AAPL), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ) are among the most well-known names on the list. Dow Jones Stocks To Watch Now UnitedHealth Group Inc (NYSE: UNH) McDonald’s Corporation (NYSE: MCD) UnitedHealth Group (UNH Stock) UnitedHealth Group Inc. (UNH) is a healthcare company that provides health insurance and healthcare services. 3 To Know McDonald’s Corp. (MCD Stock) McDonald’s Corporation (MCD) is a global fast-food restaurant chain that operates in over 100 countries.
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Apple (NASDAQ: AAPL), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ) are among the most well-known names on the list. The Dow Jones Industrial Average (DJIA) is one of the world’s most popular stock market indices. Dow Jones Stocks To Watch Now UnitedHealth Group Inc (NYSE: UNH) McDonald’s Corporation (NYSE: MCD) UnitedHealth Group (UNH Stock) UnitedHealth Group Inc. (UNH) is a healthcare company that provides health insurance and healthcare services.
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16655.0
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2023-03-24 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-4
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +6.4% over the past month versus the Zacks S&P 500 composite's -1.5% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 6.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of -5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
For the current fiscal year, the consensus earnings estimate of $6.04 points to a change of -1.2% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $6.68 indicates a change of +10.5% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $93.39 billion indicates a year-over-year change of -4%. For the current and next fiscal years, $390.02 billion and $416.7 billion estimates indicate -1.1% and +6.8% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $117.15 billion in the last reported quarter, representing a year-over-year change of -5.5%. EPS of $1.88 for the same period compares with $2.10 a year ago.
Compared to the Zacks Consensus Estimate of $121.21 billion, the reported revenues represent a surprise of -3.34%. The EPS surprise was -2.59%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.68 indicates a change of +10.5% from what Apple is expected to report a year ago.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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16656.0
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2023-03-24 00:00:00 UTC
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Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-6
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nan
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nan
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Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $78.16 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 48.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.17% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 43.12% of total assets under management.
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has added about 13.01% so far this year and is down about -13.64% in the last one year (as of 03/24/2023). In the past 52-week period, it has traded between $208.44 and $295.89.
The ETF has a beta of 1.10 and standard deviation of 26.18% for the trailing three-year period, making it a medium risk choice in the space. With about 247 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 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, VUG 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 iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $61.04 billion in assets, Invesco QQQ has $163.80 billion. IWF has an expense ratio of 0.18% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Growth ETF (VUG): 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
iShares Russell 1000 Growth ETF (IWF): 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 13.17% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $78.16 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.17% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Performance and Risk VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.17% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a 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 13.17% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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16657.0
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2023-03-24 00:00:00 UTC
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Apple Stock Is Down 13% From Its High. Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/apple-stock-is-down-13-from-its-high.-time-to-buy
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nan
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nan
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Apple stock has seen its ups and downs of late. The COVID-19 pandemic triggered a tech boom where countless stocks skyrocketed as home-bound consumers invested in home offices and entertainment. This prosperous period led Apple's (NASDAQ: AAPL) stock to reach an all-time high of $180.68 on Jan. 3, 2022.
However, more recent economic challenges have slowed consumer spending, dragging countless tech stocks down. Apple shares fell 26.8% last year. Yet, the stock has soared 22% since Jan. 1 as the market shows signs of recovery. But it remains down 13% from the all-time high it reached last January.
Here's why now is the time to buy Apple stock after a dip from its all-time high price.
Apple is fortifying its iPhone business
The iPhone was responsible for 52% of Apple's revenue in fiscal 2022, earning $205.5 billion and rising 7% year over year. So Wall Street justifiably grew uneasy when increased COVID-19 restrictions in China strained the factory producing about 70% of all iPhones last November. Apple's stock subsequently fell 15% from Oct. 31, 2022 to Jan. 1, 2023.
However, the company has rallied investors this year thanks to several moves to strengthen its iPhone business. Apple plans to move production out of China in the coming years, with a large focus on India. In fact, the biggest producer of iPhones, Foxconn (or Hon Hai Precision Industry) will invest $700 million to speed up manufacturing in India.
Moreover, multiple Bloomberg reports have revealed Apple will maximize iPhone profits by utilizing more in-house components in the future. The company reportedly plans to shift away from costly partnerships with Samsung and LG for its iPhone displays, using custom versions as early as 2024. Apple is expected to do the same with its WiFi and Bluetooth chips, developing one which combines both capabilities to replace current chips from Broadcom and Qualcomm.
Apple is a diversified company, but when it comes to revenue, it needs to protect its cash cow, the iPhone. Recent moves to further boost its smartphone business favor its long-term outlook.
A lucrative future in digital services
In addition to strengthening its iPhone segment, Apple is further guaranteeing its long-term success by expanding its digital services business, allowing it to lean less on its product revenue.
In fiscal 2022, services, including platforms like Apple TV+, Music, iCloud, Fitness+, and Arcade, achieved $78.1 billion in revenue, rising 14% year over year -- double the iPhone's growth. Even more promising, services' profit margin hit a lucrative 71.7%, while the same metric for products came to 36.3%.
Apple's venture into services has led it to gain the second-largest market share in music streaming, with Music's 15% only behind Spotify's 31% and Amazon Music's 13%. According to Grand View Research, the global music-streaming market was valued at $29.5 billion in 2021 and is projected to expand at a compound annual rate of 14.7% through 2030. In addition to growth from video streaming, fitness apps, and gaming, Apple's various services will likely provide substantial gains for years.
Moreover, Apple services are further boosted by the iPhone's leading 24.1% market share in all smartphones, a figure that has soared over the years and was 11.7% in the first quarter of 2019. The company has strategically designed its services to be the optimum choice when using an iPhone, which has boosted their mass adoption.
Apple shares are down 13% from their all-time high. However, the company has a lucrative future thanks to improvements in its iPhone business and promising growth in digital services. Apple's forward price-to-earnings ratio decreased 15% over the last year to 22, amplifying its stock's value and making it a screaming buy right now.
10 stocks we like better than Apple
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has positions in LG Display. The Motley Fool has positions in and recommends Amazon.com, Apple, Qualcomm, and Spotify Technology. The Motley Fool recommends Broadcom 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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This prosperous period led Apple's (NASDAQ: AAPL) stock to reach an all-time high of $180.68 on Jan. 3, 2022. The COVID-19 pandemic triggered a tech boom where countless stocks skyrocketed as home-bound consumers invested in home offices and entertainment. In fact, the biggest producer of iPhones, Foxconn (or Hon Hai Precision Industry) will invest $700 million to speed up manufacturing in India.
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This prosperous period led Apple's (NASDAQ: AAPL) stock to reach an all-time high of $180.68 on Jan. 3, 2022. A lucrative future in digital services In addition to strengthening its iPhone segment, Apple is further guaranteeing its long-term success by expanding its digital services business, allowing it to lean less on its product revenue. Apple's venture into services has led it to gain the second-largest market share in music streaming, with Music's 15% only behind Spotify's 31% and Amazon Music's 13%.
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This prosperous period led Apple's (NASDAQ: AAPL) stock to reach an all-time high of $180.68 on Jan. 3, 2022. Apple is fortifying its iPhone business The iPhone was responsible for 52% of Apple's revenue in fiscal 2022, earning $205.5 billion and rising 7% year over year. A lucrative future in digital services In addition to strengthening its iPhone segment, Apple is further guaranteeing its long-term success by expanding its digital services business, allowing it to lean less on its product revenue.
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This prosperous period led Apple's (NASDAQ: AAPL) stock to reach an all-time high of $180.68 on Jan. 3, 2022. However, the company has rallied investors this year thanks to several moves to strengthen its iPhone business. Moreover, Apple services are further boosted by the iPhone's leading 24.1% market share in all smartphones, a figure that has soared over the years and was 11.7% in the first quarter of 2019.
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16658.0
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2023-03-24 00:00:00 UTC
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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-growth-etf-vong-be-on-your-investing-radar-6
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nan
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $10.64 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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. Also, growth stocks are a type of equity that carries more risk compared to others. 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
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.10%.
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 46.20% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.13% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.
The ETF has added about 10.23% so far this year and is down about -12.26% in the last one year (as of 03/24/2023). In the past 52-week period, it has traded between $53.17 and $73.32.
The ETF has a beta of 1.07 and standard deviation of 25.16% for the trailing three-year period, making it a medium risk choice in the space. With about 512 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 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, VONG is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $78.16 billion in assets, Invesco QQQ has $163.80 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 Growth ETF (VONG): 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 12.13% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 $10.64 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 Vanguard Russell 1000 Growth ETF (VONG): 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 12.13% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 12.13% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund launched on 09/22/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.13% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Russell 1000 Growth ETF (VONG) is a passively managed exchange traded fund launched on 09/22/2010.
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16659.0
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2023-03-24 00:00:00 UTC
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1 Cheap Tech Stock That's a Screaming Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/1-cheap-tech-stock-thats-a-screaming-buy-right-now
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nan
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nan
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Investors surprisingly pressed the sell button last week following the release of Jabil's (NYSE: JBL) second-quarter fiscal 2023 earnings report (for the three months ended Feb. 28), even though the contract electronics manufacturer's numbers were better than what Wall Street forecast.
Jabil's stock price dropped, as investors were probably expecting a bigger beat from a company that counts Apple (NASDAQ: AAPL) as its biggest customer. They may also have expected it to raise its full-year guidance, as it did last time. However, a closer look at Jabil's performance, outlook, and valuation indicates that investors may have overreacted to the company's latest report.
The good part is that savvy investors now have an opportunity to capitalize on Jabil's drop and buy the stock on the cheap. Let's see why this is an opportunity they may not want to miss out on.
Jabil's solid growth is here to stay
Shares of Jabil have jumped 23% in 2023, and that's not surprising given the solid growth the company has delivered of late. Its fiscal second-quarter revenue increased 8% over the prior year to $8.1 billion, while the non-GAAP (adjusted) operating margin was up 20 basis points to 4.8%.
The increase in Jabil's revenue and the improvement in its margin led to a 12% year-over-year increase in the company's adjusted earnings to $1.88 per share. Analysts would have settled for adjusted earnings of $1.85 per share on revenue of $8.09 billion. The strength in Jabil's automotive, industrial, and healthcare businesses allowed it to deliver better-than-expected numbers and helped offset the weakness in the connected devices and mobility end markets.
Additionally, the company maintained its full-year revenue outlook of $34.5 billion and adjusted earnings of $8.40 per share. The bottom-line forecast points toward a nice jump from fiscal 2022, when Jabil delivered $7.65 per share in earnings. More importantly, Jabil expects to sustain impressive earnings growth in the future as well.
JBL EPS Estimates for Current Fiscal Year data by YCharts
Jabil's bright outlook can be attributed to the secular growth opportunity in the contract manufacturing services space. Grand View Research estimates that the electronic contract manufacturing market alone could clock almost 10% annual growth through the end of the decade, driven by the growing adoption of contract manufacturing in multiple verticals such as automotive, data centers, healthcare, smart homes, and others.
The research firm estimates that the global electronic contract manufacturing market generated $515 billion in revenue in 2022, and the estimated growth rate suggests that it could be worth just over $1 trillion by the end of the decade. So Jabil is scratching the surface of a huge end-market opportunity, and the good part is that it is capitalizing on the growth hotspots within this space already.
For instance, management projects the company's automotive revenue will increase 42% this year to $4.4 billion. Jabil anticipates solid growth in this segment in the future thanks to the growing adoption of electric vehicles (EVs). That's not surprising, as EV manufacturers have been partnering with contract electronic manufacturers to scale up their operations.
At the same time, the rumored launch of new products from Apple could be another tailwind for Jabil. The contract electronics manufacturer got 19% of its revenue from Apple in fiscal 2022. Supply chain gossip indicates that Apple could soon launch an augmented reality (AR) headset and is aiming to sell a million units of the device in the first year.
The Grand View Research report says the market for AR headsets is expected to clock an annual growth rate of almost 74% through 2025. Apple could become a key player in this market, and that would bode well for Jabil, as it manufactures aluminum encasements for the iPhone and the iPad. Jabil's contract manufacturing relationship with Apple could give the former a nice boost in 2023 and beyond with the addition of a potential new product.
The valuation is quite attractive
Jabil stock is trading at just 12 times trailing earnings even after rising impressively in 2023 so far. What's more, the forward earnings multiple of 9.9 points toward bottom-line gains. Also, the price-to-sales ratio of just 0.32 further indicates that Jabil stock is dirt cheap right now. These multiples are well below the S&P 500's sales multiple of 2.3 and the price-to-earnings ratio of 18.
Analysts expect Jabil to clock 11% annual earnings growth over the next five years. The prospects of the market in which the company operates indicate that it could very well deliver double-digit earnings growth in the long run. Investors looking to buy a value stock should take a closer look at Jabil since it could deliver healthy gains in the future.
10 stocks we like better than Jabil
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 Jabil 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
Harsh Chauhan has no position in any of the stocks mentioned. 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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Jabil's stock price dropped, as investors were probably expecting a bigger beat from a company that counts Apple (NASDAQ: AAPL) as its biggest customer. Investors surprisingly pressed the sell button last week following the release of Jabil's (NYSE: JBL) second-quarter fiscal 2023 earnings report (for the three months ended Feb. 28), even though the contract electronics manufacturer's numbers were better than what Wall Street forecast. The strength in Jabil's automotive, industrial, and healthcare businesses allowed it to deliver better-than-expected numbers and helped offset the weakness in the connected devices and mobility end markets.
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Jabil's stock price dropped, as investors were probably expecting a bigger beat from a company that counts Apple (NASDAQ: AAPL) as its biggest customer. The bottom-line forecast points toward a nice jump from fiscal 2022, when Jabil delivered $7.65 per share in earnings. Grand View Research estimates that the electronic contract manufacturing market alone could clock almost 10% annual growth through the end of the decade, driven by the growing adoption of contract manufacturing in multiple verticals such as automotive, data centers, healthcare, smart homes, and others.
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Jabil's stock price dropped, as investors were probably expecting a bigger beat from a company that counts Apple (NASDAQ: AAPL) as its biggest customer. Investors surprisingly pressed the sell button last week following the release of Jabil's (NYSE: JBL) second-quarter fiscal 2023 earnings report (for the three months ended Feb. 28), even though the contract electronics manufacturer's numbers were better than what Wall Street forecast. Jabil's solid growth is here to stay Shares of Jabil have jumped 23% in 2023, and that's not surprising given the solid growth the company has delivered of late.
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Jabil's stock price dropped, as investors were probably expecting a bigger beat from a company that counts Apple (NASDAQ: AAPL) as its biggest customer. The good part is that savvy investors now have an opportunity to capitalize on Jabil's drop and buy the stock on the cheap. Grand View Research estimates that the electronic contract manufacturing market alone could clock almost 10% annual growth through the end of the decade, driven by the growing adoption of contract manufacturing in multiple verticals such as automotive, data centers, healthcare, smart homes, and others.
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16660.0
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2023-03-24 00:00:00 UTC
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If You Invested $2,000 in TSMC in 2014, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%242000-in-tsmc-in-2014-this-is-how-much-you-would-have-today
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nan
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nan
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Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC and the world's largest contract chipmaker, became the first Taiwanese company to list its shares on the NYSE in 1997. A $2,000 investment in its initial offering would have blossomed into to more than $35,000 today.
However, investors who missed TSMC's market debut could have still reaped some big gains by buying the stock at the beginning of 2014. That's when it struck major deals with Apple (NASDAQ: AAPL) and ASML (NASDAQ: ASML). A $2,000 investment on the first trading day of 2014 would be worth about $13,500 today. Let's see how those two deals solidified TSMC as a semiconductor superpower, how rapidly it grew over the past nine years, and if it will continue to grow.
Image source: Getty Images.
What happened in 2014?
In 2014 Apple shifted its chip orders from Samsung's foundries to TSMC. That change was long overdue since Samsung had evolved from Apple's manufacturing partner into a fierce competitor in the smartphone market.
But as part of that new partnership, Apple wanted TSMC to buy extreme ultraviolet (EUV) lithography systems from the Dutch semiconductor equipment maker ASML. ASML's EUV systems would enable TSMC to manufacture much smaller, denser, and more power-efficient chips than Samsung, but TSMC was reluctant to buy those systems -- which cost about $200 million each and required multiple planes to ship.
To soften that blow, Apple -- which needed the EUV systems to produce its A8 chips that year -- agreed to finance TSMC's initial purchases of ASML's systems. That agreement enabled TSMC to install EUV systems long before Samsung and Intel (NASDAQ: INTC) and made it the go-to manufacturer for the world's smallest and densest chips.
TSMC maintains that lead in the "process race" today. Samsung and Intel have both started to install more EUV systems, but both chipmakers are still at least a generation behind TSMC in terms of transistor density. That's why Apple, Advanced Micro Devices, Qualcomm, Nvidia, and other leading fabless chipmakers continue to rely on TSMC to produce their top-tier chips.
How rapidly did TSMC grow over the past nine years?
Between 1997 and 2013, TSMC's annual revenue grew at a compound annual growth rate (CAGR) of 18% as its net income increased at a CAGR of 16%. It shrunk its nodes from 180 nm to just 20 nm during those 16 years.
But that miniaturization process wasn't easy, and it became increasingly difficult and expensive to manufacture chips at smaller nodes. That's why AMD spun off its foundry division, GlobalFoundries, to become a fabless chipmaker in 2009. TSMC's domestic rival UMC also stopped developing smaller chips beyond the 14nm node in 2018, while Intel struggled with brand-tarnishing delays and shortages while transitioning from 14nm to 10nm chips.
Therefore Apple's foresight and initial funding enabled TSMC to rise above its peers. As a result, its annual revenue continued to grow at a CAGR of 16% between 2013 and 2022 -- even as it endured the trade war, COVID-19 pandemic, supply chain disruptions, and inflationary headwinds -- while its net income increased at a CAGR of 21%.
What's next for TSMC?
TSMC faces a near-term slowdown this year as the PC and smartphone markets cool off. The macro headwinds are also curbing the market's demand for new data center chips. However, TSMC expects that slowdown to end in the second half of 2023. It also plans to ramp up its production of its next-gen 3 nm chips, while installing more of ASML's newest "high-NA" EUV systems to produce even smaller chips beyond the 2 nm node. For now, it seems unlikely that Samsung or Intel -- which posted a disastrous fourth-quarter report in January -- will catch up to TSMC in the process race within the next few years.
Simply put, TSMC will likely remain one of the best long-term plays on the secular expansion of the semiconductor market. Between 2022 and 2025, analysts expect its revenue to grow at a CAGR of 11% as its net income grows at a CAGR of 6%. Those steady growth rates suggest it's still a bargain at 16 times forward earnings.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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 Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Leo Sun has positions in ASML, Apple, and Qualcomm. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's when it struck major deals with Apple (NASDAQ: AAPL) and ASML (NASDAQ: ASML). But as part of that new partnership, Apple wanted TSMC to buy extreme ultraviolet (EUV) lithography systems from the Dutch semiconductor equipment maker ASML. That agreement enabled TSMC to install EUV systems long before Samsung and Intel (NASDAQ: INTC) and made it the go-to manufacturer for the world's smallest and densest chips.
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That's when it struck major deals with Apple (NASDAQ: AAPL) and ASML (NASDAQ: ASML). That's why Apple, Advanced Micro Devices, Qualcomm, Nvidia, and other leading fabless chipmakers continue to rely on TSMC to produce their top-tier chips. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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That's when it struck major deals with Apple (NASDAQ: AAPL) and ASML (NASDAQ: ASML). ASML's EUV systems would enable TSMC to manufacture much smaller, denser, and more power-efficient chips than Samsung, but TSMC was reluctant to buy those systems -- which cost about $200 million each and required multiple planes to ship. To soften that blow, Apple -- which needed the EUV systems to produce its A8 chips that year -- agreed to finance TSMC's initial purchases of ASML's systems.
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That's when it struck major deals with Apple (NASDAQ: AAPL) and ASML (NASDAQ: ASML). TSMC maintains that lead in the "process race" today. It also plans to ramp up its production of its next-gen 3 nm chips, while installing more of ASML's newest "high-NA" EUV systems to produce even smaller chips beyond the 2 nm node.
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16661.0
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2023-03-24 00:00:00 UTC
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86% of Warren Buffett's $322 Billion Portfolio Is Invested in Only 8 Stocks
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AAPL
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https://www.nasdaq.com/articles/86-of-warren-buffetts-%24322-billion-portfolio-is-invested-in-only-8-stocks
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett isn't infallible, but he does have a knack for running circles around Wall Street. Since taking the reins, the 3,787,464% aggregate return for Berkshire's Class A shares (BRK.A) is more than 153 times greater than the 24,708% total return, including dividends paid, for the benchmark S&P 500.
The Oracle of Omaha's overwhelming success is attributed to his patience as an investor, his willingness to buy cyclical companies and dividend stocks, and his rather narrow research focus, which makes him an expert in a handful of sectors and industries. But it's Berkshire Hathaway's portfolio concentration that has, arguably, played the biggest role in this outperformance.
As of the closing bell on March 17, 2023, a whopping 86% of Warren Buffett's $322 billion investment portfolio was invested in only eight stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
1. Apple: $141.9 billion (44.1% of invested assets)
Nothing says portfolio concentration quite like having nearly $142 billion of your $322 billion of invested assets tied up in a single stock. But that's precisely the case with tech stock Apple (NASDAQ: AAPL), which is viewed by Buffett as one of Berkshire Hathaway's "four giants."
According to Interbrand, Apple has been the most valuable brand for 10 straight years (through 2022). The company's products and brand are well-known, which tends to keep customers loyal as well as draw in new businesses and consumers. With CEO Tim Cook overseeing his company's shift to a services-oriented focus, Apple should have no trouble continuing to generate jaw-dropping cash flow in virtually any economic environment.
It's also no secret that Buffett loves investing in companies with sizable capital-return programs. Apple is doling out $14.55 billion annually in dividends, and it's repurchased more than $550 billion of its own stock since the beginning of 2013.
Rapidly rising interest rates are providing a boost to Bank of America's net interest income. Effective Federal Funds Rate data by YCharts.
2. Bank of America: $28.7 billion (8.9% of invested assets)
There's probably not an industry Warren Buffett is more comfortable or confident investing in than bank stocks. Among banks, none has his attention quite like Bank of America (NYSE: BAC).
The most interesting thing about Bank of America is its sensitivity to interest rate movements. With the Federal Reserve having no choice but to tackle historically high inflation, lending institutions with outstanding variable-rate loans are set to capitalize. Among money-center banks, Bank of America is benefiting most, with $3.3 billion more in net-interest income during the fourth quarter compared to the prior-year period.
But chances are that Buffett and his investment team aren't too honed-in on BofA's interest sensitivity. Rather, they're just allowing time to be their ally. Since economic expansions last significantly longer than recessions, banks benefit in lockstep with a growing U.S. economy over the long term.
Chevron has increased its base annual payout for 36 consecutive years. CVX Dividend data by YCharts.
3. Chevron: $25.5 billion (7.9% of invested assets)
Energy stocks have grown to become the third-largest sector by weighting in Berkshire Hathaway's portfolio. A big reason for that is the greater than $25 billion stake in Chevron (NYSE: CVX).
Having such a sizable position in Chevron is likely a reflection of Buffett and his investing lieutenants, Todd Combs and Ted Weschler, expecting oil prices to remain above their historical norm. While Russia's invasion of Ukraine is a clear monkey wrench in the global energy supply chain, arguably more damage has been done by three years of underinvestment tied to the COVID-19 pandemic. Without a way to quickly ramp up supply, spot oil prices may offer a healthy floor.
Like most big oil companies, Chevron is also quite shareholder friendly. It's raised its base annual dividend for an impressive 36 consecutive years, and the company's board recently authorized a share repurchase program of up to $75 billion.
Image source: Coca-Cola.
4. Coca-Cola: $24 billion (7.5% of invested assets)
Beverage stock Coca-Cola (NYSE: KO) is Berkshire Hathaway's longest-held position (since 1988). With a cost basis to Buffett's company of only $3.2475 for each share of Coke, the company's $1.84 base annual payout works out to a hearty 56.7% yield on cost! Coca-Cola has raised its base dividend in each of the past 61 years.
What Coca-Cola brings to the table for the Oracle of Omaha and his team is almost unparalleled consistency. Because it operates in all but three countries worldwide (North Korea, Cuba, and Russia), it's able to bring in predictable operating cash flow in developed markets while continuing to penetrate emerging/developed countries to grow its cold-beverage market share.
Coca-Cola can also be described as a wholesome family brand -- and Buffett certainly loves investing in brands that consumers trust and value. Coke's marketing team has consistently been on-point with its social media campaigns and in using its holiday tie-ins to connect with mature audiences.
5. American Express: $23.7 billion (7.4% of invested assets)
Next to Coca-Cola, payment processor American Express (NYSE: AXP) is Buffett's longest-held stock (since 1993). Following a recent dividend increase, Berkshire Hathaway's yield on cost for AmEx is now north of 28%!
One of the reasons American Express is such an enticing investment is its ability to play both sides of the aisle. In addition to being the No. 3 payment processor by credit card network purchase volume in the U.S., AmEx is a lender. This allows it to generate annual fees and interest income on top of payment-processing fees.
What's more, American Express has a storied history of successfully attracting high-income clientele. High earners are often less susceptible to inflationary and economic pressures. In other words, their buying habits don't change much, and they're more likely than the average consumer to pay their bills on time.
6. Kraft Heinz: $12.3 billion (3.8% of invested assets)
Consumer staples stock Kraft Heinz (NASDAQ: KHC) is Berkshire Hathaway's sixth-largest holding and accounts for close to 4% of invested assets. It may also be one of the Oracle of Omaha's worst investments.
On the one hand, Kraft Heinz was one of the companies that reaped the rewards of shifting consumer habits during the pandemic. With people staying home more often, the company's easy-to-prepare meals, snacks, and condiments flew off grocery store shelves. It's worth pointing out that Kraft Heinz's portfolio of brand-name foods has helped it easily outpace inflation.
On the other hand, volume has begun declining, with price hikes doing the entirety of the heavy lifting for Kraft Heinz. Also, the company's balance sheet is weighed down by mountains of long-term debt and goodwill. Sustaining the momentum Kraft Heinz regained during the pandemic could prove difficult, if not impossible, with its inflexible balance sheet.
An above-average oil price has been a positive for drillers like Occidental Petroleum. WTI Crude Oil Spot Price data by YCharts.
7. Occidental Petroleum: $12.2 billion (3.8% of invested assets)
If Chevron is Warren Buffett's "Batman" of the energy sector, oil stock Occidental Petroleum (NYSE: OXY) is his "Robin." Since the beginning of 2022, Buffett and his lieutenants have purchased more than 208 million shares of Occidental Petroleum stock.
While the thesis behind Berkshire's Occidental Petroleum buys is similar to Chevron -- i.e., a higher sustained crude oil spot price -- Occidental offers even more upstream exposure, as a percentage of total revenue, than Chevron. If the price of oil does remain above its historical average, Occidental's cash flow will certainly reflect that.
However, Occidental, like Chevron, is also an integrated operator. The company's downstream chemical operations benefit if the price of crude oil drops. Lower input costs, and the typical demand increase associated with lower oil prices, provide some degree of hedge for Occidental Petroleum and should shore up its cash flow.
8. Moody's: $7.3 billion (2.3% of invested assets)
The eighth stock that collectively accounts for approximately 86% of the $322 billion investment portfolio Warren Buffett oversees at Berkshire Hathaway is credit-ratings agency Moody's (NYSE: MCO). Moody's has been a continuous holding for more than two decades.
Since the financial crisis, Moody's credit-rating segment has been its cash cow. When lending rates were at or near historic lows, businesses and various government entities were busy borrowing cheap capital. But with the U.S. inflation rate soaring and interest rates rising at their fastest clip in decades, it wouldn't be a surprise to see credit-rating demand slow.
Thankfully, Moody's Analytics segment can pick up the slack. As its name implies, this division is focused on providing analytics software and tools to help businesses and agencies manage risk and remain in compliance with local, state, national, and global laws. Increasing macro uncertainty is the perfect environment for Moody's Analytics to thrive.
10 stocks we like better than Apple
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*Stock Advisor returns as of March 8, 2023
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. 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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But that's precisely the case with tech stock Apple (NASDAQ: AAPL), which is viewed by Buffett as one of Berkshire Hathaway's "four giants." The Oracle of Omaha's overwhelming success is attributed to his patience as an investor, his willingness to buy cyclical companies and dividend stocks, and his rather narrow research focus, which makes him an expert in a handful of sectors and industries. With CEO Tim Cook overseeing his company's shift to a services-oriented focus, Apple should have no trouble continuing to generate jaw-dropping cash flow in virtually any economic environment.
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But that's precisely the case with tech stock Apple (NASDAQ: AAPL), which is viewed by Buffett as one of Berkshire Hathaway's "four giants." American Express: $23.7 billion (7.4% of invested assets) Next to Coca-Cola, payment processor American Express (NYSE: AXP) is Buffett's longest-held stock (since 1993). Kraft Heinz: $12.3 billion (3.8% of invested assets) Consumer staples stock Kraft Heinz (NASDAQ: KHC) is Berkshire Hathaway's sixth-largest holding and accounts for close to 4% of invested assets.
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But that's precisely the case with tech stock Apple (NASDAQ: AAPL), which is viewed by Buffett as one of Berkshire Hathaway's "four giants." Apple: $141.9 billion (44.1% of invested assets) Nothing says portfolio concentration quite like having nearly $142 billion of your $322 billion of invested assets tied up in a single stock. Kraft Heinz: $12.3 billion (3.8% of invested assets) Consumer staples stock Kraft Heinz (NASDAQ: KHC) is Berkshire Hathaway's sixth-largest holding and accounts for close to 4% of invested assets.
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But that's precisely the case with tech stock Apple (NASDAQ: AAPL), which is viewed by Buffett as one of Berkshire Hathaway's "four giants." Coca-Cola: $24 billion (7.5% of invested assets) Beverage stock Coca-Cola (NYSE: KO) is Berkshire Hathaway's longest-held position (since 1988). See the 10 stocks *Stock Advisor returns as of March 8, 2023 American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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16662.0
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2023-03-24 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-8
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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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16663.0
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2023-03-23 00:00:00 UTC
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US STOCKS-Wall Street rallies on hopes of Fed policy pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-on-hopes-of-fed-policy-pause
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Jobless claims remain low, new home sales rise
Block Inc slides after Hindenburg discloses short position
US SEC threatens to sue Coinbase, shares drop
Regional banks head lower
Indexes up: Dow 0.44%, S&P 0.66%, Nasdaq 1.30%
New throughout, adds NEW YORK dateline, changes byline
By Stephen Culp
NEW YORK, March 23 (Reuters) - Wall Street advanced on Thursday as market participants looked past remarks by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and weighed the possibility that the central bank will pause its restrictive interest rate hikes in the near future.
All three indexes marked the three-year anniversary of the nadir of the COVID-19 crash by heading higher, with megacap growth stocks, led by Microsoft MSFT.O and Apple Inc AAPL.O, providing the most upside muscle and putting the tech-heavy Nasdaq out front.
"Today the market is bouncing back on what was a dovish Fed hike yesterday," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Powell did a good job sticking to the party line on inflation and continued to jawbone hawkish even though the hike leaned dovish."
"It’s not too crazy for markets to see that pivot in the near future," Mayfield added.
The risk-on session reversed Wednesday's late-session sell-off after the Fed's rate hike, Powell's subsequent Q&A session and Treasury Secretary Janet Yellen's testimony before congress in which she ruled out blanket protection for all deposits.
In view of recent turmoil in the financial sector, which began with the failures of SVB Financial Group SIVB.O and Signature Bank SBNY.O, worries that the Fed was overtightening and pushing the economy perilously close to recession, Powell's reiterance of the Fed's determination to cool inflation sparked a late session flight to safety.
Jitters among regional banks persist, with the KBW Regional Bank index .KRX sliding 2.3%.
Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel.
The BoE's commentary "paints a picture of a global central banking system that's ready to slow the pace of their hiking," Mayfield said.
But economic data released on Thursday showed jobless claims inching lower and new home sales posting a surprise gain, providing fresh evidence that the economy is yet to show the kind of softening that would lend itself to cooling inflation.
The Dow Jones Industrial Average .DJI rose 142.01 points, or 0.44%, to 32,172.12, the S&P 500 .SPX gained 26.11 points, or 0.66%, to 3,963.08 and the Nasdaq Composite .IXIC added 151.81 points, or 1.3%, to 11,821.77.
Among the 11 sectors of the S&P 500, communication services .SPLRCL and tech .SPLRCT led the percentage gainers.
First Republic Bank FRC.Ndropped 8.6% in volatile trading in the wake of Yellen's testimony.
Chipmaker Nvidia Corp NVDA.O advanced 2.2% after Needham raised its price target.
Block Inc SQ.N shares slid 14.6% after Hindenburg Research disclosed its short positions in the company.
Crypto exchange Coinbase Global Inc COIN.O dropped 14.0% in the wake of the U.S. Securities and Exchange Commission's threat to sue the company.
Accenture ACN.N surged 7.1% after it announced plans to cut about 2.5% of its workforce.
Advancing issues outnumbered declining ones on the NYSE by a 1.11-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored advancers.
The S&P 500 posted four new 52-week highs and 14 new lows; the Nasdaq Composite recorded 45 new highs and 197 new lows.
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Ankika Biswas in Bengaluru Editing by Marguerita Choy)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All three indexes marked the three-year anniversary of the nadir of the COVID-19 crash by heading higher, with megacap growth stocks, led by Microsoft MSFT.O and Apple Inc AAPL.O, providing the most upside muscle and putting the tech-heavy Nasdaq out front. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Jobless claims remain low, new home sales rise Block Inc slides after Hindenburg discloses short position US SEC threatens to sue Coinbase, shares drop Regional banks head lower Indexes up: Dow 0.44%, S&P 0.66%, Nasdaq 1.30% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, March 23 (Reuters) - Wall Street advanced on Thursday as market participants looked past remarks by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and weighed the possibility that the central bank will pause its restrictive interest rate hikes in the near future. "Today the market is bouncing back on what was a dovish Fed hike yesterday," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
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All three indexes marked the three-year anniversary of the nadir of the COVID-19 crash by heading higher, with megacap growth stocks, led by Microsoft MSFT.O and Apple Inc AAPL.O, providing the most upside muscle and putting the tech-heavy Nasdaq out front. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Jobless claims remain low, new home sales rise Block Inc slides after Hindenburg discloses short position US SEC threatens to sue Coinbase, shares drop Regional banks head lower Indexes up: Dow 0.44%, S&P 0.66%, Nasdaq 1.30% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, March 23 (Reuters) - Wall Street advanced on Thursday as market participants looked past remarks by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and weighed the possibility that the central bank will pause its restrictive interest rate hikes in the near future. Jitters among regional banks persist, with the KBW Regional Bank index .KRX sliding 2.3%.
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All three indexes marked the three-year anniversary of the nadir of the COVID-19 crash by heading higher, with megacap growth stocks, led by Microsoft MSFT.O and Apple Inc AAPL.O, providing the most upside muscle and putting the tech-heavy Nasdaq out front. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Jobless claims remain low, new home sales rise Block Inc slides after Hindenburg discloses short position US SEC threatens to sue Coinbase, shares drop Regional banks head lower Indexes up: Dow 0.44%, S&P 0.66%, Nasdaq 1.30% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, March 23 (Reuters) - Wall Street advanced on Thursday as market participants looked past remarks by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and weighed the possibility that the central bank will pause its restrictive interest rate hikes in the near future. The risk-on session reversed Wednesday's late-session sell-off after the Fed's rate hike, Powell's subsequent Q&A session and Treasury Secretary Janet Yellen's testimony before congress in which she ruled out blanket protection for all deposits.
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All three indexes marked the three-year anniversary of the nadir of the COVID-19 crash by heading higher, with megacap growth stocks, led by Microsoft MSFT.O and Apple Inc AAPL.O, providing the most upside muscle and putting the tech-heavy Nasdaq out front. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Jobless claims remain low, new home sales rise Block Inc slides after Hindenburg discloses short position US SEC threatens to sue Coinbase, shares drop Regional banks head lower Indexes up: Dow 0.44%, S&P 0.66%, Nasdaq 1.30% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, March 23 (Reuters) - Wall Street advanced on Thursday as market participants looked past remarks by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and weighed the possibility that the central bank will pause its restrictive interest rate hikes in the near future. "It’s not too crazy for markets to see that pivot in the near future," Mayfield added.
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16664.0
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2023-03-23 00:00:00 UTC
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Technology Sector Update for 03/23/2023: AFRM, AAPL, SQ
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-23-2023%3A-afrm-aapl-sq
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nan
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nan
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Technology stocks advanced Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.2% and the Philadelphia Semiconductor Index 3.1% higher.
In company news, Affirm Holdings (AFRM) shares rose 3% after the company said it is partnering with cardio equipment manufacturer VersaClimber to provide the latter's customers with the option to pay for purchases in monthly installments.
Apple (AAPL) shares were up 1.6% after Bloomberg reported, citing people familiar with the company's plans, that the company is planning to spend $1 billion a year to produce movies that will be launched in theaters.
Block's (SQ) shares were down nearly 14% after short-seller Hindenburg Research alleged in a report the company has inflated user metrics for its Cash App.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) shares were up 1.6% after Bloomberg reported, citing people familiar with the company's plans, that the company is planning to spend $1 billion a year to produce movies that will be launched in theaters. In company news, Affirm Holdings (AFRM) shares rose 3% after the company said it is partnering with cardio equipment manufacturer VersaClimber to provide the latter's customers with the option to pay for purchases in monthly installments. Block's (SQ) shares were down nearly 14% after short-seller Hindenburg Research alleged in a report the company has inflated user metrics for its Cash App.
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Apple (AAPL) shares were up 1.6% after Bloomberg reported, citing people familiar with the company's plans, that the company is planning to spend $1 billion a year to produce movies that will be launched in theaters. Block's (SQ) shares were down nearly 14% after short-seller Hindenburg Research alleged in a report the company has inflated user metrics for its Cash App. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) shares were up 1.6% after Bloomberg reported, citing people familiar with the company's plans, that the company is planning to spend $1 billion a year to produce movies that will be launched in theaters. Technology stocks advanced Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.2% and the Philadelphia Semiconductor Index 3.1% higher. In company news, Affirm Holdings (AFRM) shares rose 3% after the company said it is partnering with cardio equipment manufacturer VersaClimber to provide the latter's customers with the option to pay for purchases in monthly installments.
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Apple (AAPL) shares were up 1.6% after Bloomberg reported, citing people familiar with the company's plans, that the company is planning to spend $1 billion a year to produce movies that will be launched in theaters. Technology stocks advanced Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.2% and the Philadelphia Semiconductor Index 3.1% higher. In company news, Affirm Holdings (AFRM) shares rose 3% after the company said it is partnering with cardio equipment manufacturer VersaClimber to provide the latter's customers with the option to pay for purchases in monthly installments.
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16665.0
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2023-03-23 00:00:00 UTC
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How Investors Can Benefit From Apple (AAPL) Breaking Into Cinema
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AAPL
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https://www.nasdaq.com/articles/how-investors-can-benefit-from-apple-aapl-breaking-into-cinema
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nan
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nan
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A
pple (AAPL) is one of the most tracked stocks, and one of the most analyzed companies in the world, yet a lot of people labor under a misapprehension about the very nature of the company. They think of it as an innovator, leading trends in consumer behavior, but that has not been the company’s strength over the years. Rather, where Apple has been good -- even great -- is identifying and maximizing the potential of existing trends and technology. That is not a knock on them. The commercialization of tech and consumer trends is in many ways a more valuable and important skill than innovation and they are the masters of it.
What it does mean for investors, though, is that when Apple decides to change tack on anything, we should listen. If they have identified a trend and are steering money in a new direction, they have identified an exploitable shift in consumer behavior, and history tells us that they are rarely wrong. The news this morning that they are starting to get involved in producing movies for theaters, rather than just for streaming, is significant, especially coming after Amazon's (AMZN) purchase of Metro-Goldwyn-Mayer and their stated intention of making 12-15 movies a year for theater release.
Apple is said to be devoting $1 billion to the project, and has reportedly been in talks with several production houses about partnering on upcoming films. It seems there are still a lot of details to hash out, so it is hard to see a way to play this specific project in the market, but there are ways to benefit from the observation that movie theaters are coming back.
Let’s start with what to avoid. The best-known movie stock is AMC (AMC), due to the massive volatility that has come with its status as a "meme stock," but there are good reasons to stay clear of that one. The run up to above $34 a year or so ago was spectacular, but the drop back to below $5 is more reflective of the company’s position and prospects. They used the jump in the stock in the way that they really should have, by issuing more to raise capital, but in many ways, that has just made an already shaky-looking balance sheet look worse.
They have an operating cash flow loss of around $630 million on a trailing-twelve-month basis, around the same amount of cash in hand, big annual losses on an EPS basis with no clear path to profitability, and debt of over $10 billion. If, despite that, you believe the online hype and want to buy AMC, that is your prerogative, but I won’t be putting any of my hard-earned cash into that situation.
One of AMC’s main rivals, the UK holding company Cineworld PLC, filed for bankruptcy last year, citing the lack of good movies from studios as a reason for their struggles, the same complaint that AMC has had. This news will help alleviate that issue somewhat, but it may just be too late for AMC given their precarious-looking balance sheet.
That leaves Cinemark Holdings (CNK).
They are still working their way back to profitability, but are in a better position than AMC, with positive operating cash flow and less than $4 billion is debt on the books. They have also reduced EPS losses significantly and are forecast by most analysts to swing to a profit later this year.
The news that Apple is investing in movies for theater release fits their historical business model perfectly in that they have identified a shift in consumer preference, allowed another company to move onto the space first, then followed them in. Based on past performance, their analysis of the situation will be correct and they will be good at giving the consumer what it already wants. That will obviously benefit AAPL itself, but for now movie production will still be a relatively small part of Apple as a whole, so this news doesn’t make for a convincing investing thesis for AAPL right now.
It is, however, good news for movie theaters, and by the time it starts to have an impact, CNK could be the last man standing when it comes to publicly traded stocks in the industry, making it a decent long-term buy even after this morning’s pop.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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pple (AAPL) is one of the most tracked stocks, and one of the most analyzed companies in the world, yet a lot of people labor under a misapprehension about the very nature of the company. That will obviously benefit AAPL itself, but for now movie production will still be a relatively small part of Apple as a whole, so this news doesn’t make for a convincing investing thesis for AAPL right now. Apple is said to be devoting $1 billion to the project, and has reportedly been in talks with several production houses about partnering on upcoming films.
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pple (AAPL) is one of the most tracked stocks, and one of the most analyzed companies in the world, yet a lot of people labor under a misapprehension about the very nature of the company. That will obviously benefit AAPL itself, but for now movie production will still be a relatively small part of Apple as a whole, so this news doesn’t make for a convincing investing thesis for AAPL right now. They have an operating cash flow loss of around $630 million on a trailing-twelve-month basis, around the same amount of cash in hand, big annual losses on an EPS basis with no clear path to profitability, and debt of over $10 billion.
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pple (AAPL) is one of the most tracked stocks, and one of the most analyzed companies in the world, yet a lot of people labor under a misapprehension about the very nature of the company. That will obviously benefit AAPL itself, but for now movie production will still be a relatively small part of Apple as a whole, so this news doesn’t make for a convincing investing thesis for AAPL right now. The news this morning that they are starting to get involved in producing movies for theaters, rather than just for streaming, is significant, especially coming after Amazon's (AMZN) purchase of Metro-Goldwyn-Mayer and their stated intention of making 12-15 movies a year for theater release.
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That will obviously benefit AAPL itself, but for now movie production will still be a relatively small part of Apple as a whole, so this news doesn’t make for a convincing investing thesis for AAPL right now. pple (AAPL) is one of the most tracked stocks, and one of the most analyzed companies in the world, yet a lot of people labor under a misapprehension about the very nature of the company. They think of it as an innovator, leading trends in consumer behavior, but that has not been the company’s strength over the years.
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16666.0
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2023-03-23 00:00:00 UTC
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Top Stocks To Buy For 2023? 3 Tech Stocks To Know
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AAPL
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https://www.nasdaq.com/articles/top-stocks-to-buy-for-2023-3-tech-stocks-to-know
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nan
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nan
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The technology sector, also known as the tech sector, is a segment of the stock market that includes companies involved in the development, manufacture, and sale of technology products and services. This industry includes a wide range of companies, from established giants like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) to innovative start-ups and cutting-edge firms in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT).
Tech stocks are stocks of companies in the technology sector. These stocks are highly sought after by investors due to their potential for high growth and innovation. However, investing in tech stocks can also be risky, as the industry is highly competitive and constantly evolving. Market volatility and changing consumer trends can impact the performance of tech stocks.
Investing in tech stocks requires careful consideration and analysis. It’s important to understand the individual company’s financial health, market position, and competitive advantages, as well as the broader trends and economic indicators that may impact the tech sector as a whole. By investing in a well-researched portfolio of tech stocks, investors can potentially benefit from the industry’s growth and innovation while managing their risk exposure. If this has you interested in investing in the tech sector, here are three blue-chip tech stocks to check out in the stock market today.
Tech Stocks To Buy [Or Avoid] In 2023
Microsoft Corporation (NASDAQ: MSFT)
NVIDIA Corporation (NASDAQ: NVDA)
Meta Platforms Inc. (NASDAQ: META)
Microsoft (MSFT Stock)
First up, Microsoft Corporation (MSFT) is a multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers. The company is known for its popular Windows operating system and productivity software such as Microsoft Office. Microsoft has diversified its business to include cloud computing and artificial intelligence.
Just this month, Microsoft announced that Sandra E. Peterson, an Operating Partner at Clayton, Dubilier & Rice, has been appointed as Lead Independent Director, succeeding John W. Thompson, who had held the role since 2012. The tech giant has also declared a quarterly dividend of $0.68 per share, payable in June 2023 to shareholders of record as of May 18, 2023, with the ex-dividend date set for May 17, 2023.
Looking at the start of 2023, shares of MSFT stock are up 15.89% YTD. Meanwhile, as of Thursday’s closing bell, Microsoft stock closed the day up by 1.97% at $277.66 a share.
Source: TD Ameritrade TOS
[Read More] Best Dividend Stocks To Watch In 2023? 3 To Know
NVIDIA (NVDA Stock)
Second, NVIDIA Corporation (NVDA) is a semiconductor company that specializes in graphics processing units (GPUs) for gaming, data centers, and professional applications. The company’s GPUs are widely used in gaming consoles, personal computers, and cloud computing platforms. NVIDIA has been at the forefront of developments in artificial intelligence and machine learning.
Just last month, NVIDIA reported its fourth quarter 2022 earnings results. In the quarter, the company posted earnings of $0.98 per share, along with revenue of $6.1 billion. This came in higher than analysts’ consensus estimates which were earnings per share of $0.81 with revenue of $6.0 billion. Additionally, NVIDIA also said it estimates Q1 2023 revenue between $6.37 billion to $6.63 billion, with non-GAAP gross margins of 66.0% to 67.0%.
Year-to-date, NVDA stock has surged by 89.95% so far. Meanwhile, on Thursday, shares of NVDA stock closed the day up another 2.73% trading at $271.91 a share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch For March 2023
Meta Platforms (META Stock)
Finally, Meta Platforms Inc. (META), formerly known as Facebook, is a social media company that operates several popular platforms, including Facebook, Instagram, and WhatsApp. The company generates revenue through advertising and is one of the largest advertising platforms in the world. Meta has also expanded into virtual and augmented reality with the development of its Oculus VR products.
Last month, Meta Platforms announced its fourth quarter 2022 financial results. Specifically, the company reported earnings of $3.00 per share and revenue of $32.2 billion. For context, this is compared to Wall Street’s consensus estimates which were earnings of $2.12 per share, and revenue estimates of $31.8 billion. What’s more, Meta Platforms also said it estimates Q1 2023 revenue in the range of $26.0 billion to $28.50 billion.
Year-to-date, shares of META stock have rebounded by 63.76% so far. Moving along, as of Thursday’s closing bell, META stock closed the day higher by 2.24% at $204.28 per share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This industry includes a wide range of companies, from established giants like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) to innovative start-ups and cutting-edge firms in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). It’s important to understand the individual company’s financial health, market position, and competitive advantages, as well as the broader trends and economic indicators that may impact the tech sector as a whole. Just this month, Microsoft announced that Sandra E. Peterson, an Operating Partner at Clayton, Dubilier & Rice, has been appointed as Lead Independent Director, succeeding John W. Thompson, who had held the role since 2012.
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This industry includes a wide range of companies, from established giants like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) to innovative start-ups and cutting-edge firms in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). Tech Stocks To Buy [Or Avoid] In 2023 Microsoft Corporation (NASDAQ: MSFT) NVIDIA Corporation (NASDAQ: NVDA) Meta Platforms Inc. (NASDAQ: META) Microsoft (MSFT Stock) First up, Microsoft Corporation (MSFT) is a multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers. Source: TD Ameritrade TOS [Read More] 3 Cyclical Stocks To Watch For March 2023 Meta Platforms (META Stock) Finally, Meta Platforms Inc. (META), formerly known as Facebook, is a social media company that operates several popular platforms, including Facebook, Instagram, and WhatsApp.
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This industry includes a wide range of companies, from established giants like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) to innovative start-ups and cutting-edge firms in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). Tech stocks are stocks of companies in the technology sector. Tech Stocks To Buy [Or Avoid] In 2023 Microsoft Corporation (NASDAQ: MSFT) NVIDIA Corporation (NASDAQ: NVDA) Meta Platforms Inc. (NASDAQ: META) Microsoft (MSFT Stock) First up, Microsoft Corporation (MSFT) is a multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers.
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This industry includes a wide range of companies, from established giants like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) to innovative start-ups and cutting-edge firms in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). Tech Stocks To Buy [Or Avoid] In 2023 Microsoft Corporation (NASDAQ: MSFT) NVIDIA Corporation (NASDAQ: NVDA) Meta Platforms Inc. (NASDAQ: META) Microsoft (MSFT Stock) First up, Microsoft Corporation (MSFT) is a multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers. Meanwhile, on Thursday, shares of NVDA stock closed the day up another 2.73% trading at $271.91 a share.
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16667.0
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2023-03-23 00:00:00 UTC
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7 Blue-Chip Stocks to Buy for Capital Preservation
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AAPL
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https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-for-capital-preservation
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The financial sector-driven panic sent investors to the refuge of safe assets, including blue-chip stocks. In general, blue-chip stocks have a low beta and this supports capital preservation. Additionally, most blue-chip stocks have an attractive dividend yield. So, today, my focus is on names that are undervalued. Even if there is a meaningful correction in the broad markets, these blue-chip stocks are likely to remain resilient. Once market sentiments reverse, these stocks can deliver healthy total returns. Let’s discuss seven blue-chip stocks to buy at current levels.
NEM Newmont Corporation $48.42
LMT Lockheed Martin $467.81
ALB Albemarle $216.72
CVX Chevron $154.51
AAPL Apple $158.81
PFE Pfizer $40.20
AZN AstraZeneca $67.16
Newmont Corporation (NEM)
Source: Shutterstock
Gold has been trending higher and currently trades near $2,000 an ounce. Given the macroeconomic scenario and challenges in the financial system, I am bullish on the precious metal. Exposure to gold mining stocks is a good way to benefit from the rally. Newmont Corporation (NYSE:NEM) is a top name to consider with the stock trading at an attractive forward price-earnings ratio of 21.3. NEM stock also offers a dividend yield of 3.4%. Considering the rally is gold, I expect healthy dividend growth.
There are several other reasons to like Newmont. The company has an investment-grade balance sheet. Further, the company has 96 million ounces of gold reserves that ensure steady production will into the 2040s. It’s also worth noting that the company expects a reduction in all-in-sustaining-cost in the next few years. Even if gold remains sideways, there is visibility for EBITDA margin expansion. At current valuations, the downside for NEM stock is capped and the upside potential is significant.
Lockheed Martin (LMT)
Source: Shutterstock
Even in challenging market conditions, Lockheed Martin’s (NYSE:LMT) stock has trended higher by 11% in the last six months. The 2.53% dividend yield stock has a low beta and is worth considering at current levels.
An important point to note is that the defense sector is relatively immune to economic shocks. Global defense spending increased even during the pandemic. With several friction points globally on the geopolitical front, defense spending is likely to remain robust.
Specific to Lockheed, the company reported an order backlog of $150 billion as of Q4 2022. On a year-on-year basis, the backlog increased by 11%. This provides the company with clear cash flow visibility. For the current year, the company has guided for a free cash flow of $6.2 billion. The company continues to invest in new defense technology like hypersonics. That’s a potential catalyst for growth besides higher order intake from NATO allies.
Albemarle (ALB)
Source: Shutterstock
Albemarle’s (NYSE:ALB) stock has been rock solid in the last 12 months. At a forward price-earnings ratio of 7.4, the stock is massively undervalued. Besides capital preservation, ALB stock has the potential to deliver healthy returns. Albemarle has been on a high-growth trajectory as the company aggressively expands its lithium conversion capacity. For the current year, the company has guided sales growth in the range of 55% to 75%.
Further, the company expects operating cash flow in excess of $2 billion. With strong cash flow visibility, I expect dividend growth to be healthy. Albemarle also expects to continue expanding its lithium conversion capacity through 2027. The expansion is likely to be funded with internal cash flows. Considering the point that the lithium shortage will aggravate, the outlook for the company is bright for the coming years. As price realization increases, free cash flows will swell.
Chevron (CVX)
Source: Shutterstock
It’s worth noting that crude oil has declined significantly in the recent past on fears of recession. However, Chevron’s (NYSE:CVX) stock has remained sideways in the last six months. This is an indication of the point that the stock is an attractive value. CVX stock also offers a dividend yield of 3.87%.
A key reason to like Chevron is its strong balance sheet. As of Q4 2022, Chevron reported a net-debt ratio of 3.3%. Last year, Chevron reported an operating cash flow of $47.5 billion. With low break-even assets, cash flows will remain robust. This allows Chevron to make big investments and sustain dividends. Just to put things into perspective, Chevron plans to invest $13 to $15 billion annually in the next few years.
In the last 10 years, the company reported an average reserve replacement ratio of 99%. With strong investments, RRR is likely to remain healthy. Importantly, there is clear cash flow visibility with a strong proven, and probable reserve base.
Apple (AAPL)
Source: Shutterstock
Amidst difficult times for the technology sector, Apple’s (NASDAQ:AAPL) stock has remained largely sideways in the last 12 months. At a forward price-earnings ratio of 26.4, the stock is attractive. AAPL stock has a relatively low dividend yield of 0.58%. However, it’s among the top dividend growth stocks to consider.
For Q1 2023, Apple reported revenue de-growth of 5% on a year-on-year basis. This was likely in a challenging economic environment. The long-term outlook remains positive as Apple continues to invest in product development. It’s worth noting that Apple generated $34 billion in operating cash flow during the quarter. This implies an annualized OCF potential of $130 to $140 billion.
Given the cash flows, value creation will continue through dividends and share repurchases. It’s also worth mentioning that for Q1 2023, Apple reported record revenue of $20.8 billion from the services segment. I also remain bullish on the growth outlook for wearables.
Pfizer (PFE)
Source: Shutterstock
Pfizer’s (NYSE:PFE) stock is another name among low-beta blue-chip stocks to buy and hold. PFE stock trades at a forward price-earnings ratio of 11.8 and offers a dividend yield of 4.1%. Pfizer is attractive when it comes to a deep pipeline of products. As of January, the company had 110 drug candidates in the pipeline. With significant investments in research and development, the pipeline will ensure steady growth.
The biopharmaceutical company has also been active on the acquisition front. Recently, the company signed an agreement to acquire Seagen (NASDAQ:SGEN) for a consideration of $43 billion. The latter is expected to contribute more than $10 billion to risk-adjusted revenue by 2030. Pfizer has a target of $25 billion in risk-adjusted revenue through acquisitions by 2030. It’s therefore likely that the company will continue to pursue opportunistic acquisitions to broaden its product portfolio.
AstraZeneca (AZN)
Source: Shutterstock
AstraZeneca’s (NASDAQ:AZN) stock has been trending higher with returns of 18% in the last six months. The stock however remains undervalued at a forward price-earnings ratio of 15.0. AZN stock also offers an attractive dividend yield of 2.96%.
For 2022, AstraZeneca reported 25% and 33% growth in revenue and earnings per share respectively. For the current year, the company has guided for high single-digit to low double-digit EPS growth. Therefore, considering the growth momentum, the stock is undervalued.
A deep pipeline of drugs is another reason to be bullish. For 2023, the company will be initiating more than 30 drug trials for the third phase. Last year, AstraZeneca invested $9.5 billion in research and development. High R&D investments will ensure healthy EPS growth well beyond 2023. I also like the fact that AstraZeneca is well-diversified geographically. For 2022, the company derived 26% of its revenue from emerging markets. A strong presence in these markets is a catalyst for long-term growth.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 7 Blue-Chip Stocks to Buy for Capital Preservation 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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NEM Newmont Corporation $48.42 LMT Lockheed Martin $467.81 ALB Albemarle $216.72 CVX Chevron $154.51 AAPL Apple $158.81 PFE Pfizer $40.20 AZN AstraZeneca $67.16 Newmont Corporation (NEM) Source: Shutterstock Gold has been trending higher and currently trades near $2,000 an ounce. Apple (AAPL) Source: Shutterstock Amidst difficult times for the technology sector, Apple’s (NASDAQ:AAPL) stock has remained largely sideways in the last 12 months. AAPL stock has a relatively low dividend yield of 0.58%.
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NEM Newmont Corporation $48.42 LMT Lockheed Martin $467.81 ALB Albemarle $216.72 CVX Chevron $154.51 AAPL Apple $158.81 PFE Pfizer $40.20 AZN AstraZeneca $67.16 Newmont Corporation (NEM) Source: Shutterstock Gold has been trending higher and currently trades near $2,000 an ounce. Apple (AAPL) Source: Shutterstock Amidst difficult times for the technology sector, Apple’s (NASDAQ:AAPL) stock has remained largely sideways in the last 12 months. AAPL stock has a relatively low dividend yield of 0.58%.
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NEM Newmont Corporation $48.42 LMT Lockheed Martin $467.81 ALB Albemarle $216.72 CVX Chevron $154.51 AAPL Apple $158.81 PFE Pfizer $40.20 AZN AstraZeneca $67.16 Newmont Corporation (NEM) Source: Shutterstock Gold has been trending higher and currently trades near $2,000 an ounce. Apple (AAPL) Source: Shutterstock Amidst difficult times for the technology sector, Apple’s (NASDAQ:AAPL) stock has remained largely sideways in the last 12 months. AAPL stock has a relatively low dividend yield of 0.58%.
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NEM Newmont Corporation $48.42 LMT Lockheed Martin $467.81 ALB Albemarle $216.72 CVX Chevron $154.51 AAPL Apple $158.81 PFE Pfizer $40.20 AZN AstraZeneca $67.16 Newmont Corporation (NEM) Source: Shutterstock Gold has been trending higher and currently trades near $2,000 an ounce. Apple (AAPL) Source: Shutterstock Amidst difficult times for the technology sector, Apple’s (NASDAQ:AAPL) stock has remained largely sideways in the last 12 months. AAPL stock has a relatively low dividend yield of 0.58%.
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16668.0
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2023-03-23 00:00:00 UTC
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Best Dividend Stock to Buy: Apple vs. Microsoft vs. Home Depot vs. Starbucks
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AAPL
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https://www.nasdaq.com/articles/best-dividend-stock-to-buy%3A-apple-vs.-microsoft-vs.-home-depot-vs.-starbucks
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nan
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nan
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX) are some of the most recognizable businesses in the world. This video will determine which one of these is the best dividend stock to buy for passive income investors.
*Stock prices used were the afternoon prices of March 21, 2023. The video was published on March 23, 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 and Starbucks. The Motley Fool has positions in and recommends Apple, Home Depot, Microsoft, and Starbucks. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, 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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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX) are some of the most recognizable businesses in the world. 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, Microsoft, and Starbucks.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX) are some of the most recognizable businesses in the world. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has positions in Apple and Starbucks. The Motley Fool has positions in and recommends Apple, Home Depot, Microsoft, and Starbucks.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX) are some of the most recognizable businesses in the world. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has positions in Apple and Starbucks. The Motley Fool has positions in and recommends Apple, Home Depot, Microsoft, and Starbucks.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX) are some of the most recognizable businesses in the world. 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 and Starbucks.
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16669.0
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2023-03-23 00:00:00 UTC
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Why Apple Stock Rallied Thursday Morning
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-rallied-thursday-morning
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) climbed higher Thursday morning, adding as much as 2.4%. As of 3 p.m. ET, the stock was still up 1%.
What sent the tech giant higher were reports that the company would begin producing movies destined for the big screen.
So what
Apple plans to spend $1 billion per year to produce major motion pictures that it will release in theaters, according to a report by Bloomberg. The company is hoping to not only raise its stature in Hollywood but also attract a greater number of subscribers to Apple TV+ -- the company's streaming video service.
The iPhone maker has been in conversations with the major movie studios about bringing a number of its high-profile productions to cinemas this year, with additional opportunities on the horizon, according to the report. The list of likely releases includes the Martin Scorsese-helmed Killers of the Flower Moon, starring Leonardo DiCaprio; spy thriller Argylle, directed by Matthew Vaughn; and the Ridley Scott drama Napoleon, which chronicles the life of the French conqueror.
This would be a significant departure for Apple, which has released the vast majority of its feature films directly to its streaming platform, with just a few Oscar contenders receiving a limited release in theaters to make them eligible for Academy Award consideration.
Apple now plans to distribute some films to thousands of cinemas, allowing them to play for "at least a month," according to the report, which cites "people familiar with the company's plans."
Now what
While releasing blockbusters in theaters might well attract additional subscribers to Apple TV+, there are other reasons for Apple to choose this path. The company is always on the lookout for additional revenue streams, and becoming a major Hollywood movie producer could accomplish just that.
However, any new effort will pale in comparison to its flagship iPhone, which generated sales of more than $205 billion in fiscal 2022 (which ended Sep. 24), representing 52% of Apple's total revenue.
While any reasonable effort by Apple to increase its revenue would be beneficial to the company and its shareholders, it won't move the needle. Regardless, Apple stock remains a buy, as the investing thesis remains intact.
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
Danny Vena 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 Shares of Apple (NASDAQ: AAPL) climbed higher Thursday morning, adding as much as 2.4%. The iPhone maker has been in conversations with the major movie studios about bringing a number of its high-profile productions to cinemas this year, with additional opportunities on the horizon, according to the report. The list of likely releases includes the Martin Scorsese-helmed Killers of the Flower Moon, starring Leonardo DiCaprio; spy thriller Argylle, directed by Matthew Vaughn; and the Ridley Scott drama Napoleon, which chronicles the life of the French conqueror.
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What happened Shares of Apple (NASDAQ: AAPL) climbed higher Thursday morning, adding as much as 2.4%. Now what While releasing blockbusters in theaters might well attract additional subscribers to Apple TV+, there are other reasons for Apple to choose this path. The company is always on the lookout for additional revenue streams, and becoming a major Hollywood movie producer could accomplish just that.
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What happened Shares of Apple (NASDAQ: AAPL) climbed higher Thursday morning, adding as much as 2.4%. Now what While releasing blockbusters in theaters might well attract additional subscribers to Apple TV+, there are other reasons for Apple to choose this path. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Danny Vena has positions in Apple.
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What happened Shares of Apple (NASDAQ: AAPL) climbed higher Thursday morning, adding as much as 2.4%. ET, the stock was still up 1%. So what Apple plans to spend $1 billion per year to produce major motion pictures that it will release in theaters, according to a report by Bloomberg.
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16670.0
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2023-03-23 00:00:00 UTC
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Network fee not the fix for European telecoms financial problems, Meta says
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AAPL
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https://www.nasdaq.com/articles/network-fee-not-the-fix-for-european-telecoms-financial-problems-meta-says
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nan
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nan
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By Foo Yun Chee
BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot additional network costs, saying this would not solve their financial problems and also ignores tech companies' hefty investments.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have lobbied for two decades for U.S. tech giants to contribute to 5G and broadband roll-out.
The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs.
"We recognise the financial challenges that European telecom operators now face after decades of strong performance," Kevin Salvadori, Meta's vice president for network and Bruno Cendon Martin, its director and head of reality labs wireless, wrote in a blog post.
"However, proposals by some European telecom operators to impose network fees on Content Application Providers (CAPs) such as Meta are not the solution," they said.
"Network fee proposals are built on a false premise because they do not recognise the value that CAPs create for the digital ecosystem, nor the investments we make in the infrastructure that underpins it."
Telecoms lobbying group ETNO rejected Meta's claims and pointed to the massive outlay required in coming years.
"Official figures show that 174 billion euros is still required to meet Europe's network investment needs," a spokesperson said.
"Big tech should contribute to filling this gap, as their business heavily relies on the traffic carried by European networks. The average metaverse user is expected to consume up to 40 times more data than today."
Salvadori and Martin cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
Meta pointed to the over $880 billion in digital infrastructure around the globe, including about $120 billion a year from 2018 to 2021, which tech companies have collectively invested, saving telecom operators around $6 billion per year.
It dismissed telecoms providers' arguments that the expansion of the metaverse, shared virtual worlds accessible via the internet, would strain infrastructure capacity.
"But this is nonsense. The development of the metaverse will not require telecom operators to grow capital expenditures for greater network investment," Salvadori and Martin said.
(Reporting by Foo Yun Chee Editing by Frances Kerry, Kirsten Donovan)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. "We recognise the financial challenges that European telecom operators now face after decades of strong performance," Kevin Salvadori, Meta's vice president for network and Bruno Cendon Martin, its director and head of reality labs wireless, wrote in a blog post. Salvadori and Martin cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. By Foo Yun Chee BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot additional network costs, saying this would not solve their financial problems and also ignores tech companies' hefty investments. "However, proposals by some European telecom operators to impose network fees on Content Application Providers (CAPs) such as Meta are not the solution," they said.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. By Foo Yun Chee BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot additional network costs, saying this would not solve their financial problems and also ignores tech companies' hefty investments. Salvadori and Martin cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. Salvadori and Martin cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access. Meta pointed to the over $880 billion in digital infrastructure around the globe, including about $120 billion a year from 2018 to 2021, which tech companies have collectively invested, saving telecom operators around $6 billion per year.
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16671.0
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2023-03-23 00:00:00 UTC
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Apple Outlook: What Analysts Are Saying About AAPL Stock Now
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AAPL
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https://www.nasdaq.com/articles/apple-outlook%3A-what-analysts-are-saying-about-aapl-stock-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For years, Apple (NASDAQ:AAPL) was a darling on Wall Street. However, investors soured on technology stocks last year — and today, not every analyst favors AAPL stock. At the end of the day, investors must weigh the positives and negatives before considering a share position in Apple.
Analysts’ ratings aren’t the be-all and end-all of investing. Yet, they can help financial traders sift through the data and come to a decision. So, how does the analyst community feel about Apple in 2023?
As it turns out, analysts are only agreeing to disagree about Apple. With that in mind, let’s delve into the variety of expert opinions on Apple, and perhaps arrive at an investment thesis on the stock.
Analysts Envision Slight Upside for AAPL Stock
Overall, Wall Street is neither extremely bullish nor extremely bearish on Apple. The consensus rating is “moderate buy,” while the average analyst price target on AAPL stock is $170.18, which is slightly higher than the current share price.
Some experts have made more bullish-leaning calls, though. For example, Wedbush analyst Daniel Ives raised his target price on Apple shares from $180 to $190 and maintains an “outperform” rating on the stock. Per The Fly, Ives cites a “modest uptick in demand coming out of China for Apple,” along with “a clear demand rebound happening in this key region post December despite the uncertain macro backdrop.”
Evercore ISI analyst Amit Daryanani also issued an “outperform” rating and a $190 price target on AAPL stock. Daryanani noted that Apple “never hired aggressively through the pandemic and doesn’t need to go through extensive headcount reductions unlike peers.” However, while Apple hasn’t implemented layoffs, the company is reportedly delaying bonuses and limiting its hiring activity in some areas.
Some Analysts Are Less Enthusiastic About Apple
While some analysts are unabashedly bullish about Apple, others are less enthusiastic. An example is UBS analyst David Vogt, who issued a “buy” rating but didn’t raise his $180 price target on Apple shares.
Per The Fly, UBS analysts estimate that Apple’s “App store revenue growth is trending ‘flattish’ quarter-to-date, up just 31bps year-over-year.” Furthermore, the analysts state that the company’s “sequential improvement on a quarter-to-date basis is modest.” However, they also acknowledge that Apple’s “growth in the U.S. continues to outpace the rest of the world.”
Vogt’s call, however, is downright optimistic compared to the outlook issued by analysts with LightShed Partners. They downgraded AAPL stock from “neutral” to “sell” and slapped a $120 target price on Apple shares. As reported by The Fly, the analysts pointed to “below consensus estimates given the firm’s more conservative outlook for iPhone sales and moderating growth expectations in Services revenue.”
Moreover, the LightShed Partners analysts expect the “lengthening of the smartphone replacement cycle” to “persist into calendar 2024.” On top of that, the analysts see “increased risk to iPhone sales in China.” This, evidently, is “due to retaliation related to a worsening relationship between the U.S. and Chinese governments.”
So, Is it Time to Buy AAPL Stock?
As you can see each analyst has apparently valid reasons for leaning bullish or bearish on Apple this year. Personally, I’m feeling neutral about the company. As you may recall, Apple’s year-over-year (YOY) revenue declined during fiscal 2023’s first quarter.
Apple also missed Wall Street’s revenue and earnings estimates for that quarter. Therefore, I’m neither optimistic nor pessimistic about AAPL stock right now. I don’t feel that it’s necessary to buy the stock, as investors can wait for more data and then make an informed decision.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
The post Apple Outlook: What Analysts Are Saying About AAPL Stock 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips For years, Apple (NASDAQ:AAPL) was a darling on Wall Street. However, investors soured on technology stocks last year — and today, not every analyst favors AAPL stock. Analysts Envision Slight Upside for AAPL Stock Overall, Wall Street is neither extremely bullish nor extremely bearish on Apple.
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Analysts Envision Slight Upside for AAPL Stock Overall, Wall Street is neither extremely bullish nor extremely bearish on Apple. The consensus rating is “moderate buy,” while the average analyst price target on AAPL stock is $170.18, which is slightly higher than the current share price. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For years, Apple (NASDAQ:AAPL) was a darling on Wall Street.
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As reported by The Fly, the analysts pointed to “below consensus estimates given the firm’s more conservative outlook for iPhone sales and moderating growth expectations in Services revenue.” Moreover, the LightShed Partners analysts expect the “lengthening of the smartphone replacement cycle” to “persist into calendar 2024.” On top of that, the analysts see “increased risk to iPhone sales in China.” This, evidently, is “due to retaliation related to a worsening relationship between the U.S. and Chinese governments.” So, Is it Time to Buy AAPL Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips For years, Apple (NASDAQ:AAPL) was a darling on Wall Street. However, investors soured on technology stocks last year — and today, not every analyst favors AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips For years, Apple (NASDAQ:AAPL) was a darling on Wall Street. However, investors soured on technology stocks last year — and today, not every analyst favors AAPL stock. Analysts Envision Slight Upside for AAPL Stock Overall, Wall Street is neither extremely bullish nor extremely bearish on Apple.
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16672.0
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2023-03-23 00:00:00 UTC
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Amazon (AMZN) Expands Fire TV Offerings With Latest Move
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AAPL
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https://www.nasdaq.com/articles/amazon-amzn-expands-fire-tv-offerings-with-latest-move
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nan
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nan
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Amazon.com AMZN has been continuously putting efforts into strengthening its Fire TV portfolio.
This is evident from the latest introduction of three sizes, 43”, 50” and 55”, in the Fire TV Omni QLED series.
Fire TV Omni QLED series comes with a 4K Quantum Dot Technology display. The series also supports Dolby Vision IQ and HDR10+ Adaptive.
The new Amazon-built TVs feature Fire TV Ambient Experience, which leverages built-in presence sensors to detect someone entering the room when not streaming. It also displays useful information with the help of Alexa, controls smart devices and plays audio. Also, users can control the Ambient Experience hands-free with Alexa.
In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience. The Fire TV 2-Series TVs are available in two sizes, 32” and 40”.
The Fire TV-2 series supports HDR 10, HLG, and Dolby Digital Audio. Further, it provides access to several movies and TV episodes from Prime Video, Netflix, Apple TV and Paramount+, to name a few.
Apart from these, the company expanded its Fire TV offerings globally. It launched Omni QLED Series, Fire TV 4-Series and Fire TV 2-Series in the U.K., Germany and Mexico.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Growth Prospects
Expanding Amazon-built TV offerings, along with a growing global footprint positions Amazon well to capitalize on the growth prospects in the booming smart TV market.
The company’s number of Fire TV devices sold has exceeded the mark of 200 million worldwide.
This is expected to drive its top-line growth in the near term.
The Zacks Consensus Estimate for first-quarter 2023 sales is pegged at $124.43 billion, indicating growth of 6.9% from the year-ago reported figure.
According to a report from Verified Market Research, the global smart TV market is anticipated to hit $359.14 billion by 2030, seeing a CAGR of 7.3% between 2022 and 2030.
A report from Grand View Research indicates that the market is likely to witness a CAGR of 11.4% between 2023 and 2030.
We believe that Amazon’s solid prospects in this promising market will help it win investors’ confidence in the days ahead.
Coming to the price performance, AMZN has lost 39.6% in the past year compared with the industry’s decline of 33%.
Competitive Scenario
Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market.
The iPhone maker’s latest Apple TV 4K, which supports HDR10+ and Dolby vision and comes with a Siri remote, offers a superior quality viewing experience to users. Also, users can enjoy Dolby Atmos, Dolby Digital 7.1 or Dolby Digital 5.1 with Apple TV 4K.
It works seamlessly with other Apple devices and offers access to Apple Music, Apple TV+, Apple Arcade and Apple Fitness+.
Zacks Rank & Stocks to Consider
Amazon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are American Eagle Outfitters AEO and Booking Holdings BKNG. Both companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Eagle Outfitters' shares have lost 26.8% in the past year. The long-term earnings growth rate for AEO is projected at 12.59%.
Booking Holdings' shares have gained 13.1% in the past year. The long-term earnings growth rate for BKNG is projected at 16.67%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : 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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Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. The new Amazon-built TVs feature Fire TV Ambient Experience, which leverages built-in presence sensors to detect someone entering the room when not streaming.
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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 American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. It launched Omni QLED Series, Fire TV 4-Series and Fire TV 2-Series in the U.K., Germany and Mexico.
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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 American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience.
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Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience.
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16673.0
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2023-03-23 00:00:00 UTC
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Netflix (NFLX) Chooses Jon Spaihts to Pen Gears of War Movie
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-chooses-jon-spaihts-to-pen-gears-of-war-movie
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nan
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nan
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Netflix NFLX recently announced that Jon Spaihts, well-known for Dune and Doctor Strange, will be writing its upcoming movie based on the famous franchise of video games, Gears of War. The move reflects Netflix’s plan to tap the Gears of War fanbase.
Netflix is trying to solidify its footprint in new genres, thereby expanding its subscriber base amid stiff competition from the likes of Amazon AMZN, Apple AAPL and Disney DIS.
Netflix shares have declined by 21.5% in the past year compared with Zacks Consumer Discretionary sector’s fall of 20.5% during the same period. However, NFLX shares have managed to outperform Amazon and Disney but lagged Apple over the same period. Shares of Amazon, Disney and Apple have declined by 39.5%, 31.1% and 7.2%, respectively.
In the fourth quarter of 2022, the streaming giant gained 7.66 million paid subscribers, higher than its estimate of 4.6 million users. At the end of the fourth quarter, the company had 230.75 million paid subscribers globally, up 4% year over year.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix’s Innovative Content to Gain Subscribers
Netflix is working hard to expand its subscriber base. It has introduced games to keep users engaged and is also removing the password-sharing feature to boost its revenues.
However, streaming peers continue to gain popularity and market share. Apple’s streaming platform, Apple TV+, is slowly but strongly gaining popularity with its critically acclaimed and popular shows like Ted Lasso.
Moreover, Apple’s The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA. Disney’s upcoming movies and shows like Star Wars: Visions, Loki Season 2, Echo and more could bring some challenges for Netflix.
However, Netflix’s expanding and diverse content portfolio is expected to help it gain new subscribers. This Zacks Rank #2 (Buy) company currently expects total first-quarter 2023 revenues to be $8.172 billion, suggesting year-over-year growth of 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the first quarter of 2023, Netflix forecasts earnings of $2.82 per share. The Zacks Consensus Estimate for the current quarter is pegged at $2.81 per share.
For 2023, Netflix expects revenues on a foreign-exchange neutral basis to accelerate during the year. Paid net additions are likely to be greater in the second quarter of 2023 compared with the first quarter due to the rollout of paid sharing more expansively.
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Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Netflix is trying to solidify its footprint in new genres, thereby expanding its subscriber base amid stiff competition from the likes of Amazon AMZN, Apple AAPL and Disney DIS. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix NFLX recently announced that Jon Spaihts, well-known for Dune and Doctor Strange, will be writing its upcoming movie based on the famous franchise of video games, Gears of War.
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Netflix is trying to solidify its footprint in new genres, thereby expanding its subscriber base amid stiff competition from the likes of Amazon AMZN, Apple AAPL and Disney DIS. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter of 2022, the streaming giant gained 7.66 million paid subscribers, higher than its estimate of 4.6 million users.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix is trying to solidify its footprint in new genres, thereby expanding its subscriber base amid stiff competition from the likes of Amazon AMZN, Apple AAPL and Disney DIS. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix’s Innovative Content to Gain Subscribers Netflix is working hard to expand its subscriber base.
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Netflix is trying to solidify its footprint in new genres, thereby expanding its subscriber base amid stiff competition from the likes of Amazon AMZN, Apple AAPL and Disney DIS. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix NFLX recently announced that Jon Spaihts, well-known for Dune and Doctor Strange, will be writing its upcoming movie based on the famous franchise of video games, Gears of War.
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16674.0
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2023-03-23 00:00:00 UTC
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Try as It Might to Diversify, Apple's Fate Is Still Mostly Tethered to the iPhone
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AAPL
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https://www.nasdaq.com/articles/try-as-it-might-to-diversify-apples-fate-is-still-mostly-tethered-to-the-iphone
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nan
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nan
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Kudos to Apple (NASDAQ: AAPL) for making a point of being perpetually innovative. Too many companies rest on their laurels -- or aging products -- only to end up scrambling when those goods become obsolete. Not Apple, though. The world didn't know how much it needed smartwatches until Apple made them. The app store is pretty cool, too, cementing all of its hardware and customers into a robust digital ecosystem.
As it stands right now, however, Apple is still mostly a smartphone company. The iPhone accounts for roughly half of its revenue, making it more than three times bigger than even its second-biggest business.
It's not the end of the world. If your revenue is going to be narrowly focused, the world's most popular smartphone is certainly a solid focal point. It's worked out well for the company since the very first iPhone's debut back in 2007.
Nevertheless, there will come a time when the iPhone isn't the powerful growth engine it is now. It's not too soon to start asking what the company's got in store for that era.
Apple's biggest business is bumping into stiffening headwinds
The graphic below says it all. Of Apple's fiscal first-quarter revenue of $117 billion, $65 billion -- or 55% -- of it came from sales of its iPhone. The next-nearest profit center is digital services, but at just under $21 billion, it's a distant second. And, know that Q1's revenue breakdown is fairly typical for the company.
Data source: Apple Inc. Image by Motley Fool.
So far, no big deal. As was noted, the iPhone is not only Apple's biggest breadwinner, but thus far has been its biggest growth driver for over a decade. If it works, then it works.
There are a couple of red flags now waving that suggest the iPhone's growth-driving days are numbered, though. One of these red flags is the simple fact that unit sales of the devices aren't actually growing.
While the advent of COVID-19 sparked a sales surge, unit sales were waning in the four years leading into the pandemic. Also note that the pace of sales growth has cooled again since 2020's surge, according to numbers from technology market research outfit IDC, in step with the entire smartphone industry's sales slowdown since 2016.
Data source: IDC. Chart by author. All figures are in millions.
The other red flag comes from data still being supplied by Apple itself. Although it no longer reports official unit sales of the iPhone, it does still report total quarterly iPhone revenue. This figure is still generally coming in higher on a year-over-year basis, but its growth pace has slumped to single-digit levels since late 2021 and even turned negative for the quarter ending in December.
Data source: Apple Inc. Chart by author. Revenue data is in millions of dollars. YOY = year-over-year.
Now connect the dots. Revenue is merely holding steady while unit sales are falling for one overarching reason: higher selling prices. Although the dynamic hints at pricing power, with the average new iPhone now selling in the record-breaking ballpark of $1,000 apiece, even the venerable Apple may soon find the ceiling of how much consumers are truly willing to pay for a smartphone.
Your Apple "homework"
It hasn't mattered much yet, if at all. Apple shares continue to move higher more often than not, and the company continues to grow other profit centers, like services and wearables. It's also easing its way into virtual reality.
There's no denying, however, that Apple is still exceedingly dependent on one single product that's just not likely to maintain its historical growth pace (in terms of unit sales or revenue). It's going to need something else to offset this headwind in the foreseeable future. If it's not another product or business line, it at least needs to be a major reinvention of an existing one.
It's not too soon for shareholders to start asking questions about this problematic revenue source, particularly in light of this fiscal year's projected sales and earnings contraction. Maybe there are answers out there. If they're out there, though, the company's certainly not bringing them to the forefront.
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.
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*Stock Advisor returns as of March 8, 2023
James Brumley has no position in any of the stocks mentioned. 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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Kudos to Apple (NASDAQ: AAPL) for making a point of being perpetually innovative. This figure is still generally coming in higher on a year-over-year basis, but its growth pace has slumped to single-digit levels since late 2021 and even turned negative for the quarter ending in December. Although the dynamic hints at pricing power, with the average new iPhone now selling in the record-breaking ballpark of $1,000 apiece, even the venerable Apple may soon find the ceiling of how much consumers are truly willing to pay for a smartphone.
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Kudos to Apple (NASDAQ: AAPL) for making a point of being perpetually innovative. While the advent of COVID-19 sparked a sales surge, unit sales were waning in the four years leading into the pandemic. Although it no longer reports official unit sales of the iPhone, it does still report total quarterly iPhone revenue.
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Kudos to Apple (NASDAQ: AAPL) for making a point of being perpetually innovative. Of Apple's fiscal first-quarter revenue of $117 billion, $65 billion -- or 55% -- of it came from sales of its iPhone. There's no denying, however, that Apple is still exceedingly dependent on one single product that's just not likely to maintain its historical growth pace (in terms of unit sales or revenue).
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Kudos to Apple (NASDAQ: AAPL) for making a point of being perpetually innovative. Not Apple, though. As it stands right now, however, Apple is still mostly a smartphone company.
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16675.0
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2023-03-23 00:00:00 UTC
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Skip Apple and Buy This Cheap Dividend Stock
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AAPL
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https://www.nasdaq.com/articles/skip-apple-and-buy-this-cheap-dividend-stock
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nan
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nan
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The thing is, for years investors have run to Apple (NASDAQ: AAPL) for safety, and for good reason. Apple is a great company, but its current valuation and lack of growth in 2023 does not make the stock that compelling at these levels.
Instead, the stock in today's video is not only a large-cap company, but it is trading at a single-digit earnings multiple. The stock also grows its dividend at a fast pace. Don't miss this!
*Stock prices used were end-of-day prices of March 20, 2023. The video was published on March 22, 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Mark Roussin, CPA has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Bank of America. 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.
Mark Roussin 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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The thing is, for years investors have run to Apple (NASDAQ: AAPL) for safety, and for good reason. Apple is a great company, but its current valuation and lack of growth in 2023 does not make the stock that compelling at these levels. Instead, the stock in today's video is not only a large-cap company, but it is trading at a single-digit earnings multiple.
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The thing is, for years investors have run to Apple (NASDAQ: AAPL) for safety, and for good reason. 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 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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The thing is, for years investors have run to Apple (NASDAQ: AAPL) for safety, and for good reason. 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 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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The thing is, for years investors have run to Apple (NASDAQ: AAPL) for safety, and for good reason. The video was published on March 22, 2023. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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16676.0
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2023-03-23 00:00:00 UTC
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US STOCKS-Wall St set to open higher as rate hike pause hopes grow
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-as-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 23 (Reuters) - Wall Street was set to open higher on Thursday after the Federal Reserve hinted it was close to pausing interest rate hikes amid a turmoil in the banking sector that threatens to cause a severe economic downturn.
The Federal Reserve on Wednesday raised rates by an expected 25 basis points, but its policy statement no longer said "ongoing increases" would likely be appropriate, indicating a clear shift in its stance.
The central bank's softer tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
Wall Street's main indexes had closed sharply lower on Wednesday after Fed Chair Jerome Powell said the central bank was still intent on fighting inflation even as he flagged credit issues due to banking troubles could have "significant" implications for the economy.
"The impression given by Powell has taken away any hopes the market had that we might get some cut in interest rates later this year," said Stuart Cole, head macro economist at Equiti Capital.
"It seems that the message that the central banks have been giving to date, that returning inflation to target is their number one priority is very much still the message that they're going to deliver despite the banking failures."
Traders' bets are almost equally split between the Fed pausing its rate hikes in May and another 25 bps hike, according to CME Group's Fedwatch tool.
Bank of AmericaBAC.N and UBS UBS.N now see the Fed funds rate target peaking at 5-5.25% in May compared to earlier forecasts of 5.25-5.5%.
While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped above 1% premarket.
Troubled regional lender First Republic Bank FRC.N rose 7.9% after slumping on Wednesday following Treasury Secretary Janet Yellen's remark that there was on insuring all bank deposits.
PacWest Bancorp PACW.O and Western Alliance Bancorp WAL.N gained 4.4% and 5.3% respectively.
Meanwhile, data showed signs of strength in the labor market, with jobless claims falling to 191,000 last week from the week prior, against expectations that the number would rise to 197,000
At 8:41 a.m. ET, Dow e-minis 1YMcv1 were up 55 points, or 0.17%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.51%, and Nasdaq 100 e-minis NQcv1 were up 120.25 points, or 0.95%.
Shares of Block Inc SQ.Nfell 19.7% premarket after Hindenburg Research said it held short positions in the Jack Dorsey-led payments firm.
Among other stocks, Nvidia Corp NVDA.O rose 2.5% after Needham raised its price target on the chipmaker on likely benefit from near-term data center strength.
Coinbase Global Inc COIN.O slid 14.4% after the U.S. Securities and Exchange Commission (SEC) threatened to sue the crypto exchange over some of its products.
Regeneron Pharmaceuticals Inc REGN.O jumped 8.2% on promising results on its blockbuster asthma drug Dupixent from a lung disease trial.
Accenture Plc ACN.N rose 3.1% after the company said it would cut about 2.5% of its workforce, or 19,000 jobs.
(Reporting by Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Savio D'Souza 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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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped above 1% premarket. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - Wall Street was set to open higher on Thursday after the Federal Reserve hinted it was close to pausing interest rate hikes amid a turmoil in the banking sector that threatens to cause a severe economic downturn. The Federal Reserve on Wednesday raised rates by an expected 25 basis points, but its policy statement no longer said "ongoing increases" would likely be appropriate, indicating a clear shift in its stance.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped above 1% premarket. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - Wall Street was set to open higher on Thursday after the Federal Reserve hinted it was close to pausing interest rate hikes amid a turmoil in the banking sector that threatens to cause a severe economic downturn. The Federal Reserve on Wednesday raised rates by an expected 25 basis points, but its policy statement no longer said "ongoing increases" would likely be appropriate, indicating a clear shift in its stance.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped above 1% premarket. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - Wall Street was set to open higher on Thursday after the Federal Reserve hinted it was close to pausing interest rate hikes amid a turmoil in the banking sector that threatens to cause a severe economic downturn. Wall Street's main indexes had closed sharply lower on Wednesday after Fed Chair Jerome Powell said the central bank was still intent on fighting inflation even as he flagged credit issues due to banking troubles could have "significant" implications for the economy.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped above 1% premarket. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - Wall Street was set to open higher on Thursday after the Federal Reserve hinted it was close to pausing interest rate hikes amid a turmoil in the banking sector that threatens to cause a severe economic downturn. The central bank's softer tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
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16677.0
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2023-03-23 00:00:00 UTC
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Meta says a network fee is not the fix for European telecoms firms' financial problems
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AAPL
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https://www.nasdaq.com/articles/meta-says-a-network-fee-is-not-the-fix-for-european-telecoms-firms-financial-problems
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nan
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nan
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By Foo Yun Chee
BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot some network cost, saying the plan is not the solution to their financial problems and it also ignores tech companies' hefty investments.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have lobbied for two decades for U.S. tech giants to contribute to 5G and broadband roll-out.
The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs.
"We recognise the financial challenges that European telecom operators now face after decades of strong performance," Kevin Salvadori, Meta's vice president for network and Bruno Cendon Martin, its director and head of reality labs wireless, wrote in a blog post.
"However, proposals by some European telecom operators to impose network fees on Content Application Providers (CAPs) such as Meta are not the solution," they said.
"Network fee proposals are built on a false premise because they do not recognise the value that CAPs create for the digital ecosystem, nor the investments we make in the infrastructure that underpins it."
They cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
Meta pointed to the over $880 billion in digital infrastructure around the globe, including about $120 billion a year from 2018 to 2021, which tech companies have collectively invested, saving telecom operators around $6 billion per year.
It dismissed telecoms providers' arguments that the expansion of the metaverse, shared virtual worlds accessible via the internet, would strain infrastructure capacity.
"But this is nonsense. The development of the metaverse will not require telecom operators to grow capital expenditures for greater network investment," Salvadori and Martin said.
(Reporting by Foo Yun Chee Editing by Frances Kerry)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. "We recognise the financial challenges that European telecom operators now face after decades of strong performance," Kevin Salvadori, Meta's vice president for network and Bruno Cendon Martin, its director and head of reality labs wireless, wrote in a blog post. They cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. By Foo Yun Chee BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot some network cost, saying the plan is not the solution to their financial problems and it also ignores tech companies' hefty investments. "However, proposals by some European telecom operators to impose network fees on Content Application Providers (CAPs) such as Meta are not the solution," they said.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. By Foo Yun Chee BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot some network cost, saying the plan is not the solution to their financial problems and it also ignores tech companies' hefty investments. They cited the tens of billions of euros Meta invests in its apps and platforms such as Facebook, Instagram and Quest which in turn creates the demand that allows telecom operators to charge people for internet access.
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The operators say that given they account for more than half of data internet traffic, Alphabet's GOOGL.O Google, Apple AAPL.O, Meta, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O should contribute to the billions of euros in infrastructure costs. By Foo Yun Chee BRUSSELS, March 23 (Reuters) - Meta Platforms META.O on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot some network cost, saying the plan is not the solution to their financial problems and it also ignores tech companies' hefty investments. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have lobbied for two decades for U.S. tech giants to contribute to 5G and broadband roll-out.
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16678.0
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2023-03-23 00:00:00 UTC
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US STOCKS-Futures climb as hopes of a Fed pause gain steam
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-as-hopes-of-a-fed-pause-gain-steam
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.49%, S&P 0.69%, Nasdaq 0.97%
March 23 (Reuters) - U.S. stock index futures climbed on Thursday, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector.
The Federal Reserve raised rates by 25 basis points, as expected, on Wednesday but its policy statement no longer said "ongoing increases" would likely be appropriate.
The shift in the central bank's tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
At 4:33 a.m. ET, Dow e-minis 1YMcv1 were up 158 points, or 0.49%, S&P 500 e-minis EScv1 were up 27.5 points, or 0.69%, and Nasdaq 100 e-minis NQcv1 were up 123.25 points, or 0.97%.
However, Wall Street's main indexes closed sharply lower on Wednesday after Fed Chair Jerome Powell told a news conference that the central bank was still intent on fighting inflation while also monitoring the extent to which the recent bank failures had cooled demand and slowed lending.
There is a now an equal split between traders' odds of the Fed pausing its rate hikes in May and of another 25 bps hike, with the likelihood of rate cuts soon after that. FEDWATCH
While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, there was a 1%-3% increase in the prices of major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O.
Those pre-market gains helped boost futures for the tech-heavy Nasdaq.
Shares of troubled regional lender First Republic Bank FRC.N rose 3.1% in premarket trade after slumping on Wednesday following Treasury Secretary Janet Yellen's remark that there was on insuring all bank deposits.
Shares of PacWest Bancorp PACW.O and Western Alliance Bancorp WAL.N gained 4.7% and 6.0%, respectively.
On the economic data front, a reading due at 8:30 a.m. ET is expected to show a rise in jobless claims last week, hinting at some cooling in labor demand. Data on home sales is also expected later in the day.
Among other stocks, Coinbase Global Inc COIN.O fell 10.8% after the U.S. Securities and Exchange Commission (SEC)threatened to sue the crypto exchange over some of its products.
(Reporting by Amruta Khandekar; Editing by Savio D'Souza)
((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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FEDWATCH While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, there was a 1%-3% increase in the prices of major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O. The Federal Reserve raised rates by 25 basis points, as expected, on Wednesday but its policy statement no longer said "ongoing increases" would likely be appropriate. However, Wall Street's main indexes closed sharply lower on Wednesday after Fed Chair Jerome Powell told a news conference that the central bank was still intent on fighting inflation while also monitoring the extent to which the recent bank failures had cooled demand and slowed lending.
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FEDWATCH While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, there was a 1%-3% increase in the prices of major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O. Futures up: Dow 0.49%, S&P 0.69%, Nasdaq 0.97% March 23 (Reuters) - U.S. stock index futures climbed on Thursday, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. ET, Dow e-minis 1YMcv1 were up 158 points, or 0.49%, S&P 500 e-minis EScv1 were up 27.5 points, or 0.69%, and Nasdaq 100 e-minis NQcv1 were up 123.25 points, or 0.97%.
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FEDWATCH While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, there was a 1%-3% increase in the prices of major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O. Futures up: Dow 0.49%, S&P 0.69%, Nasdaq 0.97% March 23 (Reuters) - U.S. stock index futures climbed on Thursday, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. ET, Dow e-minis 1YMcv1 were up 158 points, or 0.49%, S&P 500 e-minis EScv1 were up 27.5 points, or 0.69%, and Nasdaq 100 e-minis NQcv1 were up 123.25 points, or 0.97%.
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FEDWATCH While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, there was a 1%-3% increase in the prices of major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O. Futures up: Dow 0.49%, S&P 0.69%, Nasdaq 0.97% March 23 (Reuters) - U.S. stock index futures climbed on Thursday, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. The Federal Reserve raised rates by 25 basis points, as expected, on Wednesday but its policy statement no longer said "ongoing increases" would likely be appropriate.
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16679.0
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2023-03-23 00:00:00 UTC
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Apple considers bidding for English football streaming rights - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-considers-bidding-for-english-football-streaming-rights-bloomberg-news-0
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nan
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nan
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Adds details from report, background
March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation.
The rights under consideration would allow Apple to show Premier League games in the UK, as well as lower league matches run by the English Football League, the report said.
Apple and the Premier League did not immediately respond to Reuters request for comments.
Sports remains one of the biggest attractions for live viewing as U.S. audiences increasingly switch from pay TV subscriptions to streaming apps.
Last year, major League Soccer and Apple TV had announced a partnership that will see every game streamed on the app for the next decade.
Amazon.com Inc AMZN.O too is working on a standalone app for watching sports content, according to a report from The Information in December.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Arun Koyyur)
((tiyashi.datta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report, background March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. Sports remains one of the biggest attractions for live viewing as U.S. audiences increasingly switch from pay TV subscriptions to streaming apps. Last year, major League Soccer and Apple TV had announced a partnership that will see every game streamed on the app for the next decade.
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Adds details from report, background March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. The rights under consideration would allow Apple to show Premier League games in the UK, as well as lower league matches run by the English Football League, the report said. Apple and the Premier League did not immediately respond to Reuters request for comments.
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Adds details from report, background March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. The rights under consideration would allow Apple to show Premier League games in the UK, as well as lower league matches run by the English Football League, the report said. Last year, major League Soccer and Apple TV had announced a partnership that will see every game streamed on the app for the next decade.
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Adds details from report, background March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. The rights under consideration would allow Apple to show Premier League games in the UK, as well as lower league matches run by the English Football League, the report said. Sports remains one of the biggest attractions for live viewing as U.S. audiences increasingly switch from pay TV subscriptions to streaming apps.
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16680.0
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2023-03-23 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-7
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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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16681.0
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2023-03-23 00:00:00 UTC
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US STOCKS-Futures climb as rate-hike pause hopes rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-as-rate-hike-pause-hopes-rise
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
March 23 (Reuters) - U.S. stock index futures climbed on Thursday after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector.
The Federal Reserve on Wednesday raised rates by an expected 25 basis points, but its policy statement no longer said "ongoing increases" would likely be appropriate.
The shift in the central bank's tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
However, Wall Street's main indexes closed sharply lower on Wednesday after Powell said the central bank was still intent on fighting inflation even as he flagged credit issues due to banking troubles could have "significant" implications for the economy.
"The impression given by Powell has taken away any hopes the market had that we might get some cut in interest rates later this year," said Stuart Cole, head macro economist at Equiti Capital.
"It seems that the message that the central banks have been giving to date, that returning inflation to target is their number one priority is very much still the message that they're going to deliver despite the banking failures."
Traders' odds are equally split between the Fed pausing its rate hikes in May and another 25 bps hike, according to CME Group's Fedwatch tool.
Bank of AmericaBAC.N and UBS UBS.N now see the Fed funds rate target peaking at 5-5.25% in May compared to earlier forecasts of 5.25-5.5%.
While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped over 1% each in premarket trading.
Nvidia Corp NVDA.O rose 1.9% after Needham raised its price target on the chipmaker on likely benefit from near-term data center strength.
Those premarket gains helped the tech-heavy Nasdaq futures fare better than its peers.
Troubled regional lender First Republic Bank FRC.N rose 2% after slumping on Wednesday following Treasury Secretary Janet Yellen's remark that there was on insuring all bank deposits.
PacWest Bancorp PACW.O, Truist Financial Corp TFC.N and Western Alliance Bancorp WAL.N also gained between 0.8% and 3%.
On the data front, a reading due at 8:30 a.m. ET is expected to show a rise in jobless claims last week, hinting at some cooling in labor demand. Data on home sales is also expected after the opening bell.
Among other stocks, Coinbase Global Inc COIN.O slid 12.9% after the U.S. Securities and Exchange Commission (SEC) threatened to sue the crypto exchange over some of its products.
Regeneron Pharmaceuticals Inc REGN.O jumped 8.6% on promising results on its blockbuster asthma drug Dupixent from a lung disease trial.
(Reporting by Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Savio D'Souza 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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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped over 1% each in premarket trading. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - U.S. stock index futures climbed on Thursday after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. "The impression given by Powell has taken away any hopes the market had that we might get some cut in interest rates later this year," said Stuart Cole, head macro economist at Equiti Capital.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped over 1% each in premarket trading. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - U.S. stock index futures climbed on Thursday after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. The Federal Reserve on Wednesday raised rates by an expected 25 basis points, but its policy statement no longer said "ongoing increases" would likely be appropriate.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped over 1% each in premarket trading. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - U.S. stock index futures climbed on Thursday after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. The shift in the central bank's tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
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While U.S. Treasury yields slipped on growing hopes of an end to the Fed's tightening cycle, major growth stocks such as Apple Inc AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O jumped over 1% each in premarket trading. By Amruta Khandekar and Ankika Biswas March 23 (Reuters) - U.S. stock index futures climbed on Thursday after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. The shift in the central bank's tone relieved markets that have been roiled by concerns about a liquidity crisis in the banking sector since the failure of two U.S. regional lenders earlier this month.
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16682.0
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2023-03-23 00:00:00 UTC
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3 Top Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-for-the-long-haul-6
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nan
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nan
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A sell-off brought the Nasdaq Composite index down 33% in 2022, with countless stocks affected. However, the same index has surged 13% year to date, illustrating the importance of holding stocks over the long term through the highs and especially the lows.
For instance, those who sold Warner Bros. Discovery's (NASDAQ: WBD) stock as it fell over 62% last year would not have benefited from its 59% rise since Jan. 1.
As Wall Street mogul Warren Buffett believes, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." The famous investor used this strategy to grow his holdings company Berkshire Hathaway's portfolio to an asset worth $331.07 billion.
Here are three top stocks to buy for the long haul.
1. Apple
As the world's most valuable company, with a market cap of $2.52 trillion, Apple's (NASDAQ: AAPL) stock has a reputation for offering substantial and consistent long-term gains. Over the last five years, the company's shares rose 263% and increased by 887% in the last decade.
Apple's growth is largely thanks to its dominance in multiple markets. As of the fourth quarter of 2022, Apple held the largest smartphone market share at 24.1%, a figure that has consistently grown from 13% in Q3 2019. Meanwhile, the company was responsible for a 49.7% market share in headphones in the U.S. in 2021 between its Apple and Beats brands.
Regarding digital services, Apple Music has the second-largest market share in music streaming, with 15% in Q2 2021, while Apple TV+ had a steadily growing 7% share in the streaming industry.
Apple is a diversified company with lucrative positions in multiple growing industries. Along with a history of consistent growth, its stock is an excellent long-term investment.
2. Warner Bros. Discovery
As with many consumer-reliant companies, Warner Bros. Discovery had a particularly tough 2022. Its over 60% stock slide during the year was triggered when the company took on $43 billion of debt from its merger with Discovery, with a long list of controversial restructuring moves that came after continuing to eat away at its stock price. However, Wall Street's faith in the company appears restored as its stock is up 59% in 2023.
After trimming content with countless shelved projects last year, Warner Bros. Discovery seems to be on the right path to fully take advantage of its valuable library of franchises that includes brands like Harry Potter, Game of Thrones, Lord of the Rings, and DC. The company slimmed down its content to put a larger focus on quality, which has already paid off with the success of its HBO Max series The Last of Us becoming the most-watched show in the platform's history.
Moreover, analysts from Wells Fargo and Wolfe Research upgraded Warner Bros. Discovery's stock on March 17, upping their price targets to $20 -- a 33% increase from its recent price. Wolfe's Peter Supino cited the company's strategy of paying executives based on free cash flow and debt paydowns. Supino expects Warner Bros. Discovery to "deliver high (>50%) of EBITDA (earnings before interest, taxes, depreciation, and amortization) to free cash flow as merger-driven charges subside."
With its stock still down 42% year over year, now is an excellent time to invest in Warner Bros. Discovery's stock for the long haul.
3. Amazon
Amazon (NASDAQ: AMZN) shares plunged almost 50% last year as macroeconomic headwinds proved detrimental to its e-commerce business. The challenging year led its free cash flow to tumble to -$16.89 billion. The company responded by laying off 18,000 workers in November 2022, adding 9,000 to that list this March, canceling construction or closing down dozens of warehouses, and sunsetting projects such as its telehealth service Amazon Care.
However, Amazon's dominant positions in e-commerce and cloud computing will likely see it flourish again over the long term. According to Grand View Research, the e-commerce market was valued at $9.09 trillion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 14.7% through 2027. Meanwhile, Amazon's 37.8% market share in the industry will likely provide substantial gains once economic challenges subside.
Cloud computing is similarly expected to grow at a CAGR of 14.1% through 2030, with Amazon holding a leading 34% market share.
Amazon's stock is up about 19% year to date, with layoffs and new projects such as a venture into satellite internet to rival SpaceX's Starlink rallying investors. The company stumbled last year, but its long-term prospects remain positive, making its stock a compelling long-term buy.
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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. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Warner Bros. Discovery. 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 As the world's most valuable company, with a market cap of $2.52 trillion, Apple's (NASDAQ: AAPL) stock has a reputation for offering substantial and consistent long-term gains. Discovery seems to be on the right path to fully take advantage of its valuable library of franchises that includes brands like Harry Potter, Game of Thrones, Lord of the Rings, and DC. The company slimmed down its content to put a larger focus on quality, which has already paid off with the success of its HBO Max series The Last of Us becoming the most-watched show in the platform's history.
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Apple As the world's most valuable company, with a market cap of $2.52 trillion, Apple's (NASDAQ: AAPL) stock has a reputation for offering substantial and consistent long-term gains. Regarding digital services, Apple Music has the second-largest market share in music streaming, with 15% in Q2 2021, while Apple TV+ had a steadily growing 7% share in the streaming industry. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Warner Bros.
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Apple As the world's most valuable company, with a market cap of $2.52 trillion, Apple's (NASDAQ: AAPL) stock has a reputation for offering substantial and consistent long-term gains. Its over 60% stock slide during the year was triggered when the company took on $43 billion of debt from its merger with Discovery, with a long list of controversial restructuring moves that came after continuing to eat away at its stock price. See the 10 stocks *Stock Advisor returns as of March 8, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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Apple As the world's most valuable company, with a market cap of $2.52 trillion, Apple's (NASDAQ: AAPL) stock has a reputation for offering substantial and consistent long-term gains. Discovery's stock for the long haul. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Warner Bros.
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16683.0
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2023-03-23 00:00:00 UTC
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Apple considers bidding for English football streaming rights - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-considers-bidding-for-english-football-streaming-rights-bloomberg-news
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nan
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nan
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March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation.
(Reporting by Tiyashi Datta in Bengaluru)
((tiyashi.datta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. (Reporting by Tiyashi Datta in Bengaluru) ((tiyashi.datta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. (Reporting by Tiyashi Datta in Bengaluru) ((tiyashi.datta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. (Reporting by Tiyashi Datta in Bengaluru) ((tiyashi.datta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 23 (Reuters) - Apple Inc AAPL.O is considering bidding for streaming rights of a range of English football games, Bloomberg News reported on Thursday, citing people familiar with the situation. (Reporting by Tiyashi Datta in Bengaluru) ((tiyashi.datta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16684.0
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2023-03-23 00:00:00 UTC
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Better Buy: Apple vs. AMD
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-amd
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nan
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nan
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On March 16, Susquehanna analyst Christopher Rolland projected optimism for the tech market by announcing: "We believe the acute portion of the semiconductor downcycle for the handset, PC, and consumer end markets has passed." Multiple stocks subsequently began trending upward as investors grew bullish at the prospect the battered tech market could start recovering after a challenging 2022.
As a result, leading tech giants like Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are increasingly compelling investments. These companies have proven their worth as strong growth stocks in the past and likely have a lot to offer over the long term.
So, is Apple or AMD's stock the better buy? Let's take a closer look.
Apple is outperforming the market
Apple's stock is one of the most reliable investments available, thanks to its constant growth and proven ability to outperform the market. In 2022, macroeconomic headwinds led the Nasdaq Composite index to plunge 33% throughout the year. However, Apple experienced a more moderate fall of 26.8% over the cumbersome 12 months. Additionally, the same index has risen 13.3% year to date, while Apple's stock has increased by 22.6% in the same period.
As seen in the chart below, Apple's stock performance in 2022 wasn't easily achieved by its peers, with the company the only one among some of its biggest competitors to outperform the Nasdaq Composite.
Data by YCharts
Moreover, Apple's reputation for consistent gains has safeguarded its stock against unexpected quarterly results. For instance, in the first quarter of 2023, the company reported a 5% year-over-year decline in revenue of $117.15 billion, its first revenue decline since 2019. Such a stumble might result in substantial stock losses for many companies. But Apple shares rose 2.4% in the 24 hours after posting its quarterly results, as Wall Street illustrated its confidence in its long-term outlook.
In 2023, Apple reportedly has several exciting developments planned: A new mixed-reality headset, an iPhone with a USB-C charging port, and possibly the highly anticipated larger Apple Silicon iMac. Alongside a history of consistent growth, Apple's stock is a no-brainer buy right now.
AMD has strength in data centers and embedded products
In 2022, worldwide PC shipments declined by 16.2%, according to research from Gartner. As a leader in PC components, AMD's stock fell nearly 55% over the year. Meanwhile, its PC-focused client segment reported a 10% year-over-year reduction in revenue of $6.2 billion in fiscal 2022.
However, the company proved its strength through its booming data center and embedded segments. AMD's data center revenue climbed 64% year over year to $6.04 billion, with its embedded revenue soaring 1,750% to $4.6 billion.
Data centers have become an immensely lucrative business for AMD. The company's hardware, such as graphic processing units (GPUs) and processors, powers data centers worldwide, hosting cloud platforms like Amazon Web Services and Microsoft's Azure. Considering the cloud market is projected to expand at a compound annual growth rate of 14.1% through 2030, AMD will likely continue profiting from the market's growth for years.
Additionally, AMD demonstrates growth in its embedded segment thanks to its 2022 acquisition of Xilinx. Xilinx is a company focused on developing specialized processors for various industries, from aerospace and defense to space exploration and artificial intelligence.
Apple and AMD each have a lot to offer as long-term investments. However, Apple's forward price-to-earnings (P/E) ratio of 26.6 compared to AMD's 31.5 proves the iPhone company is currently trading at a better value. Furthermore, Apple's more moderate stock decline amid economic challenges in 2022 suggest its business is more resilient and reliable for now. As a result, Apple's stock is currently the better buy. But a plan to also invest in AMD in the near future is not a bad idea, thanks to its potential growth in the coming years.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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 Advanced Micro Devices, Amazon.com, Apple, and Microsoft. The Motley Fool recommends Gartner 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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As a result, leading tech giants like Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are increasingly compelling investments. Multiple stocks subsequently began trending upward as investors grew bullish at the prospect the battered tech market could start recovering after a challenging 2022. As seen in the chart below, Apple's stock performance in 2022 wasn't easily achieved by its peers, with the company the only one among some of its biggest competitors to outperform the Nasdaq Composite.
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As a result, leading tech giants like Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are increasingly compelling investments. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, and Microsoft. The Motley Fool recommends Gartner and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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As a result, leading tech giants like Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are increasingly compelling investments. So, is Apple or AMD's stock the better buy? Apple is outperforming the market Apple's stock is one of the most reliable investments available, thanks to its constant growth and proven ability to outperform the market.
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As a result, leading tech giants like Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are increasingly compelling investments. Apple is outperforming the market Apple's stock is one of the most reliable investments available, thanks to its constant growth and proven ability to outperform the market. However, the company proved its strength through its booming data center and embedded segments.
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16685.0
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2023-03-23 00:00:00 UTC
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Can Apple Succeed Where Google Failed?
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AAPL
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https://www.nasdaq.com/articles/can-apple-succeed-where-google-failed
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nan
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nan
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Apple (NASDAQ: AAPL) is rumored to be debuting a mixed reality headset (combining augmented reality and virtual reality) at its Worldwide Developer Conference in June, and it has reportedly already shown the device to its board of directors. Meanwhile, Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google announced recently that it is scrapping the enterprise version of Google Glass, years after the company abandoned efforts to get Glass off the ground as a consumer product.
With Google leaving a market just as Apple is about to enter it, investors are right to wonder if Apple can succeed where Google failed.
I think there are three reasons why it can. Specifically, Apple will take things slowly, the device will likely focus on a niche or two, and Apple already has years of AR experience under its belt. Let's take a closer look at each factor.
Image source: GETTY IMAGES.
1. Apple's slow and steady approach usually pays off
As companies go, Apple is very patient. One aspect of Apple's approach to introducing new technologies is that it's not necessarily the first one to enter a new market -- but when it does enter a new one, it's traditionally very successful.
Apple has had years to examine how Google went wrong with Glass and what is working or not working with other competitor headsets, like Meta Platform's Quest headsets. Knowing the market doesn't mean Apple's device will be a slam dunk, but a good example of this strategy working in the company's favor comes from its Apple Watch.
Sony entered the smartwatch market in 2012, followed by Pebble in 2013, and rival Samsung launched its Galaxy Gear watch that same year. Google's Moto 360 watch followed a year later. By comparison, Apple was very late to the game when it launched the Apple Watch in 2015.
But Apple took the time to get its product right and understand what consumers really wanted, and now its Watch accounted for 34% of global smartwatch shipments last year and 60% of all smartwatch revenue. Compare that to the second-largest smartwatch maker, Samsung, which holds just 10% of smartwatch shipments.
Patience is Apple's virtue, and it usually pays off.
2. The device will likely focus on a niche or two
One of the main problems with Google Glass was that it tried to be all things to all people. Google co-founder Sergey Brin famously wore the device out in public, as did some early adopters. But an always-on (or at least seemingly always-on) headset didn't go over well with the public, and it contributed to the device's demise.
It's unlikely that Apple will repeat Google's mistake. Instead, Apple will probably hone in on a few key features of the device that fit into specific niches. For example, Apple might focus on marketing it as a tool for gaming and communication. The company already has an extensive list of AR-based mobile games that developers may be eager to adapt for a headset experience. Additionally, sensors in the device could reportedly be used for VR-enhanced FaceTime calls.
While Brin's regular use of Glass hinted at Google's device being built for nearly everywhere use, Apple will likely try to sell consumers on a few specific ways users would want to use the device and let its usefulness grow over time.
That strategy has worked for Apple in the past. Again, using the Apple Watch as an example, the company slowly added more advanced features to Watch year after year -- including GPS, cellular connectivity, water resistance, and autonomy from the iPhone -- which helped the Watch evolve. Apple could take a similar approach with its new headset by focusing on getting a few features right the first time and letting the device change over time.
3. Apple isn't an AR novice
And finally, when Google introduced Glass there wasn't a lot of development of AR apps at the time. In contrast, Apple released its ARKit for developers back in 2017, and RealityKit in 2019.
These two systems have given developers and companies years to play around with creating AR/VR apps for Apple's iPhones and iPads, and it's likely been a way for the company to see just how developers could potentially use a mixed-reality headset.
Image source: Apple.
Additionally, Apple has also invested in AR hardware for its devices, including integrating LIDAR sensors into higher-end iPhones beginning in 2020 and then some iPads. LIDAR has allowed users to scan images in the real world and create digital copies of them, take photos and videos with more depth, make accurate measurements, and even scan and create digital models of rooms.
While not all of these features are mind-blowing on their own, when you put them all together it begins to paint a picture of Apple investing in AR hardware and software to gain an understanding of how they'll be used by consumers.
Apple's device could be worth the wait
There's no guarantee that Apple will succeed with a mixed reality headset, but I think Apple's slow and steady approach to AR, along with its years of testing out augmented reality apps with developers, put the company in a much better position to succeed in selling a headset than Google was when it launched Glass.
The benefit for Apple will come from the company's ability to sell devices at a high price -- its headset is rumored to cost about $3,000 -- with lucrative margins. Not to mention Apple's opportunity to have yet another device tapping into its lucrative App Store.
The AR and VR markets will be worth more than $31 billion this year and grow to an estimated $52 billion by 2027. If Apple's rumored headset can succeed where Google failed, taking a lead in this fast-growing market would certainly be worth the wait.
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. 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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, 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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Apple (NASDAQ: AAPL) is rumored to be debuting a mixed reality headset (combining augmented reality and virtual reality) at its Worldwide Developer Conference in June, and it has reportedly already shown the device to its board of directors. Additionally, Apple has also invested in AR hardware for its devices, including integrating LIDAR sensors into higher-end iPhones beginning in 2020 and then some iPads. While not all of these features are mind-blowing on their own, when you put them all together it begins to paint a picture of Apple investing in AR hardware and software to gain an understanding of how they'll be used by consumers.
|
Apple (NASDAQ: AAPL) is rumored to be debuting a mixed reality headset (combining augmented reality and virtual reality) at its Worldwide Developer Conference in June, and it has reportedly already shown the device to its board of directors. Additionally, Apple has also invested in AR hardware for its devices, including integrating LIDAR sensors into higher-end iPhones beginning in 2020 and then some iPads. Apple's device could be worth the wait There's no guarantee that Apple will succeed with a mixed reality headset, but I think Apple's slow and steady approach to AR, along with its years of testing out augmented reality apps with developers, put the company in a much better position to succeed in selling a headset than Google was when it launched Glass.
|
Apple (NASDAQ: AAPL) is rumored to be debuting a mixed reality headset (combining augmented reality and virtual reality) at its Worldwide Developer Conference in June, and it has reportedly already shown the device to its board of directors. With Google leaving a market just as Apple is about to enter it, investors are right to wonder if Apple can succeed where Google failed. Knowing the market doesn't mean Apple's device will be a slam dunk, but a good example of this strategy working in the company's favor comes from its Apple Watch.
|
Apple (NASDAQ: AAPL) is rumored to be debuting a mixed reality headset (combining augmented reality and virtual reality) at its Worldwide Developer Conference in June, and it has reportedly already shown the device to its board of directors. With Google leaving a market just as Apple is about to enter it, investors are right to wonder if Apple can succeed where Google failed. Apple's device could be worth the wait There's no guarantee that Apple will succeed with a mixed reality headset, but I think Apple's slow and steady approach to AR, along with its years of testing out augmented reality apps with developers, put the company in a much better position to succeed in selling a headset than Google was when it launched Glass.
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16686.0
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2023-03-23 00:00:00 UTC
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2 Stocks That Could Join Apple and Microsoft in the $2 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/2-stocks-that-could-join-apple-and-microsoft-in-the-%242-trillion-club
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nan
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nan
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Over the past two centuries, there has been a constant changing of the guard among the world's most valuable companies. In 1901, steel was the key driver of value in the stock market, with United States Steel becoming the first-ever company to surpass a $1 billion valuation.
But by the end of the century, in 1995, General Electric had formed a dominant conglomerate that amassed a market capitalization of $100 billion. It was the first company to achieve that milestone, and it got there by operating in areas like energy, aviation, white goods, and financial services.
Technology is the leading stock market force today, and the numbers have never been larger. After becoming the first company to ever reach a $1 trillion valuation in 2018, Apple (NASDAQ: AAPL) is now worth $2.5 trillion. And it's joined in that exclusive club by just one other company -- its tech sector rival, Microsoft (NASDAQ: MSFT), which is worth a shade over $2 trillion.
But a very small list of high-quality companies might have the potential to join them. I'm going to share two of those candidates; one is relatively close already, while the other could deliver monster gains for investors if it gets there.
1. Alphabet (Google)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) is the parent company of prominent technology brands like Google and YouTube, which are responsible for driving the organization to a $1.3 trillion valuation as of this writing.
Google owns the world's leading internet search engine, and it's also home to one of the largest cloud-services providers, Google Cloud. But its next frontier is artificial intelligence (AI), which could completely transform both of those industries in the long term, and it's the primary reason I think Alphabet could soon join Apple and Microsoft with a $2 trillion valuation.
Right now, Google Search serves up links to relevant websites or applications based on the terms a user inputs. But AI-powered chatbots could become the dominant method for seeking information online, and on March 21, Google rolled out a beta version of its Bard platform to users across America and the United Kingdom. It's expected to compete with OpenAI's ChatGPT, which wowed the tech world this year with its ability to deliver detailed answers to complex questions across a broad spectrum of topics.
Microsoft now owns a substantial stake in OpenAI, and it has already integrated ChatGPT into its Bing search engine, which has concerned Alphabet investors. However, Google has a 93% market share in the search industry compared to Bing's 3%, so it retains a substantial advantage. But how big could the AI opportunity be?
According to one estimate by Cathie Wood's Ark Investment Management, generative AI models (like Bard and ChatGPT) could be responsible for $14 trillion in revenue by 2030; considering Google Search brought in $162 billion in 2022, that's a massive opportunity to grow into. Such models could also add $200 trillion to global economic output by improving worker productivity thanks to the ability of AI to write computer code, for example.
Plus, Google could capture more of that market through its cloud services, where it already offers business customers access to advanced AI and machine-learning tools to supercharge their operations. Ultimately, AI is Alphabet's greatest opportunity perhaps in the company's history, and it's well positioned to take a leadership role, which would create substantial value for investors.
2. Tesla
Like Google, Tesla (NASDAQ: TSLA) also operates in a league of its own despite growing competition. It's the world's largest producer of electric vehicles (EVs), and since the company is valued at $614 billion as of this writing, its stock could deliver a whopping 225% gain for investors if it does reach the $2 trillion mark.
Last year, Tesla delivered 1.3 million cars to its customers, and it could produce as many as 1.8 million in 2023. Thanks to its two brand new gigafactories in Berlin and Texas, the company's annual production capacity is set to ramp up to about 2 million vehicles. But it certainly won't stop there. Tesla just announced plans to build a new facility in Mexico, and by 2030, CEO Elon Musk believes the company could be operating as many as 12 factories producing 20 million cars per year.
Tesla's U.S. market share in the electric vehicle industry is roughly 65%, and while that's slowly declining as more competition comes online, the size of the opportunity continues to soar. Ark Investment Management predicts global electric vehicle sales could grow from 7.8 million units in 2022 to 60 million as soon as 2027, driven by cost declines as the technology becomes more accessible. Tesla could end up with a smaller piece of a substantially larger pie over time.
But that's not all. Tesla is also a powerful force in artificial intelligence through its autonomous self-driving software. It's not only a value-add to its existing fleet of consumer-owned vehicles, but it also paves the way for the company to own significant market share in the autonomous robotaxi industry. While that's still in its infancy (to say the least), Tesla intends to release its first model in 2024, and the industry could present a $14 trillion opportunity over the next four years, according to Ark Invest.
Wall Street analysts expect Tesla to pull in $103 billion in revenue in 2023. That would be a 51-fold increase from the $2 billion it generated a decade ago, in 2013. Considering the substantial opportunities the company faces over the next five-to-10 years, membership in the $2 trillion club is certainly in the cards.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Tesla. 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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After becoming the first company to ever reach a $1 trillion valuation in 2018, Apple (NASDAQ: AAPL) is now worth $2.5 trillion. But AI-powered chatbots could become the dominant method for seeking information online, and on March 21, Google rolled out a beta version of its Bard platform to users across America and the United Kingdom. According to one estimate by Cathie Wood's Ark Investment Management, generative AI models (like Bard and ChatGPT) could be responsible for $14 trillion in revenue by 2030; considering Google Search brought in $162 billion in 2022, that's a massive opportunity to grow into.
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After becoming the first company to ever reach a $1 trillion valuation in 2018, Apple (NASDAQ: AAPL) is now worth $2.5 trillion. Alphabet (Google) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) is the parent company of prominent technology brands like Google and YouTube, which are responsible for driving the organization to a $1.3 trillion valuation as of this writing. According to one estimate by Cathie Wood's Ark Investment Management, generative AI models (like Bard and ChatGPT) could be responsible for $14 trillion in revenue by 2030; considering Google Search brought in $162 billion in 2022, that's a massive opportunity to grow into.
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After becoming the first company to ever reach a $1 trillion valuation in 2018, Apple (NASDAQ: AAPL) is now worth $2.5 trillion. Alphabet (Google) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) is the parent company of prominent technology brands like Google and YouTube, which are responsible for driving the organization to a $1.3 trillion valuation as of this writing. According to one estimate by Cathie Wood's Ark Investment Management, generative AI models (like Bard and ChatGPT) could be responsible for $14 trillion in revenue by 2030; considering Google Search brought in $162 billion in 2022, that's a massive opportunity to grow into.
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After becoming the first company to ever reach a $1 trillion valuation in 2018, Apple (NASDAQ: AAPL) is now worth $2.5 trillion. Google owns the world's leading internet search engine, and it's also home to one of the largest cloud-services providers, Google Cloud. Last year, Tesla delivered 1.3 million cars to its customers, and it could produce as many as 1.8 million in 2023.
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16687.0
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2023-03-22 00:00:00 UTC
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Apple and Microsoft Weight in S&P 500 Reaches Record High
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AAPL
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https://www.nasdaq.com/articles/apple-and-microsoft-weight-in-sp-500-reaches-record-high
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The combined weight of the largest two constituents in the S&P 500 has reached an all-time high.
Apple and Microsoft now comprise 13.3% of the S&P 500 by weight, the highest level on record, the Wall Street Journal reported. As the FAANG stocks -- Facebook parent Meta, Amazon.com Inc., Apple, Netflix Inc., and Google owner Alphabet -- have been negatively impacted due to macro conditions, Apple and Microsoft have gained a higher share of the index.
FAANG stocks dominated the cap-weighted S&P 500 for years, reaching a peak in August 2020, and have since edged down to 21% of the index by weight. Notably, a couple of these mega-cap names contributed meaningfully to the sharp declines and volatility in the S&P 500 last year.
"Advisors using a market cap-weighted S&P 500 approach better really believe that Apple and Microsoft can continue to dominate going forward, whereas those less zealous should give an equally weighted version greater consideration," Todd Rosenbluth, head of research at VettaFi, said.
The Invesco S&P 500® Equal Weight ETF (RSP) removes size bias and mitigates concentration risk by giving each security an equal weight. RSP tracks the S&P 500 Equal Weight Index and includes the same constituents as the cap-weighted S&P 500, but each company in the S&P 500 EWI is allocated the same weight -- 0.2% -- at each quarterly rebalance.
See more: How Does RSPE Compare to RSP?
Concentration risk is a growing concern among advisors. In a 2022 survey, 69.7% of advisors said they were concerned or very concerned about the concentration of the top five names in the S&P 500. 22.5% of advisors were “just a little” concerned, and just 7.7% of advisors said they were not concerned, according to “When Markets Wobble, Cash Remains King: Free Cash Flow Investing.” (Date: August 30, 2022. Sample size: 293 respondents, 37.9% RIAs.)
For an equal-weighted strategy, the simple arithmetic of rebalancing connects equally weighted indexes to momentum effects. If the price of a constituent increases by more than the average of its peers, then its weight in the portfolio will increase, and the position will necessarily be trimmed at the next rebalance as the portfolio returns to equal weights.
On the other hand, if a stock falls by more than the average of its peers, its weighting will fall too, and more must be purchased at the next rebalance to return to equal weight. Thus, equal-weight indexes sell relative winners and purchase relative losers at each rebalance, adding a value tilt to portfolios.
For more news, information, and analysis, visit the Portfolio Strategies Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FAANG stocks dominated the cap-weighted S&P 500 for years, reaching a peak in August 2020, and have since edged down to 21% of the index by weight. "Advisors using a market cap-weighted S&P 500 approach better really believe that Apple and Microsoft can continue to dominate going forward, whereas those less zealous should give an equally weighted version greater consideration," Todd Rosenbluth, head of research at VettaFi, said. For an equal-weighted strategy, the simple arithmetic of rebalancing connects equally weighted indexes to momentum effects.
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FAANG stocks dominated the cap-weighted S&P 500 for years, reaching a peak in August 2020, and have since edged down to 21% of the index by weight. The Invesco S&P 500® Equal Weight ETF (RSP) removes size bias and mitigates concentration risk by giving each security an equal weight. If the price of a constituent increases by more than the average of its peers, then its weight in the portfolio will increase, and the position will necessarily be trimmed at the next rebalance as the portfolio returns to equal weights.
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The Invesco S&P 500® Equal Weight ETF (RSP) removes size bias and mitigates concentration risk by giving each security an equal weight. RSP tracks the S&P 500 Equal Weight Index and includes the same constituents as the cap-weighted S&P 500, but each company in the S&P 500 EWI is allocated the same weight -- 0.2% -- at each quarterly rebalance. If the price of a constituent increases by more than the average of its peers, then its weight in the portfolio will increase, and the position will necessarily be trimmed at the next rebalance as the portfolio returns to equal weights.
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FAANG stocks dominated the cap-weighted S&P 500 for years, reaching a peak in August 2020, and have since edged down to 21% of the index by weight. RSP tracks the S&P 500 Equal Weight Index and includes the same constituents as the cap-weighted S&P 500, but each company in the S&P 500 EWI is allocated the same weight -- 0.2% -- at each quarterly rebalance. If the price of a constituent increases by more than the average of its peers, then its weight in the portfolio will increase, and the position will necessarily be trimmed at the next rebalance as the portfolio returns to equal weights.
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2023-03-22 00:00:00 UTC
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AMZN, AAPL, or NFLX: Which FAANG Stock is the Best Pick?
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https://www.nasdaq.com/articles/amzn-aapl-or-nflx%3A-which-faang-stock-is-the-best-pick
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FAANG stocks (Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)) shed significant value last year. However, except for Netflix, the remaining four stocks have fared better than the S&P 500 (SPX) year-to-date, with META shares posting the highest gain. We used TipRanks’ Stock Comparison Tool to place Amazon, Apple, and Netflix against each other to pick Wall Street’s favorite FAANG stock at current levels.
Amazon (NASDAQ:AMZN)
The impact of macro pressures on consumer spending and the reopening of physical stores impacted Amazon’s retail business. Additionally, moderation in IT spending due to fears of an impending recession slowed down the growth rate of the company’s cloud computing Amazon Web Services (AWS) business.
Amazon is improving its cost structure to navigate a tough environment. The company recently announced 9,000 additional job cuts following an earlier round of 18,000 layoffs. The latest round impacted AWS, advertising, human resources, and Twitch units. Overall, Amazon is taking initiatives to make its structure leaner and more profitable.
Is Amazon a Buy, Hold, or Sell?
Reacting to Amazon’s cost-cutting measures, William Blair analyst Dylan Carden said, “Assuming the Street is close on its revenue assumptions, which we believe are relatively conservative, we find that there is combined upside to total company operating income of close to 40% over the next two years as cost items move back toward relatively consistent historical patterns.”
Further, Carden is bullish about the company’s Prime offering and AWS business. He believes that AMZN stock offers compelling value ahead of a possible “reacceleration” in AWS coupled with the “ultimate profitability” of its retail business. The analyst projects acceleration in the AWS business later this year, driven by new customer adoption.
Wall Street’s Strong Buy consensus rating for Amazon is backed by 37 Buys and one Hold. The average price target of $136.86 suggests about 39% upside potential. Shares have advanced over 17% since the start of the year.
Apple (NASDAQ:AAPL)
Often considered one of the most innovative companies in the world, Apple has delivered significant returns for shareholders over the past decade. Last month, the company reported a decline in its December quarter revenue, citing production disruptions in China, currency headwinds, and macroeconomic challenges.
Apple expects its March quarter revenue performance to be similar to the December quarter. While the impact of near-term pressures can’t be ignored, Apple’s strong fundamentals, its solid product portfolio, and growing services business continue to make it an attractive stock for several analysts.
Is Apple Stock a Buy?
Earlier this month, Wedbush analyst Daniel Ives raised the price target for Apple stock to $190 from $180 and reiterated a Buy rating, as checks by his firm revealed that the demand for iPhones in China has been growing.
Ives stated that iPhone supply was steady in January and February, in contrast to the December quarter, which was impacted by supply constraints stemming from China’s zero COVID policy. Additionally, early indications in March indicate that conditions continue to improve.
Ives added that Apple is winning market share in China and demand in the U.S. and Europe is also faring well. Also, he believes that the new iPhone users added to the company’s ecosystem over the past year will result in a reacceleration of Apple’s services business in the upcoming quarters.
Overall, Apple’s Moderate Buy consensus rating is based on 24 Buys, six Holds, and one Sell. At $170.18, the average AAPL stock price target implies nearly 8% upside. Shares have risen more than 21% year-to-date.
Netflix (NASDAQ:NFLX)
After losing subscribers in the first two quarters of 2022, streaming giant Netflix bounced back well in the second half of 2022. The company reported 7.66 million paid net subscriber additions for the fourth quarter of 2022, smashing Wall Street’s expectations of 4.58 million subscribers.
The company is trying to boost its revenue through various initiatives, including better content, an ad-supported subscription plan, and a paid sharing plan. That said, the path ahead is not easy, given the intense competition from not just other streaming players but also other channels of entertainment like YouTube and short-form entertainment like TikTok.
What is the Price Target for NFLX Stock?
Last week, Oppenheimer analyst Jason Helfstein reiterated a Buy rating on Netflix stock with a price target of $415. Helfstein noted that NFLX shares initially advanced following the Q4 2022 results but then started to decline due to fears that the company’s crackdown on password sharing might lead to a higher churn. Shares were also impacted by the slower launch of the ad-supported tier by the company and macro troubles.
“We believe nothing has changed from our original thesis: advertising increases the total addressable market, content competition is easing, and paid account sharing will be a long-term tailwind,” said Helfstein.
The Street’s Moderate Buy consensus rating for Netflix is based on 17 Buys, 16 Holds, and two Sells. The average price target of $356.20 indicates upside potential of 21.2%. Shares are flat on a year-to-date basis.
Conclusion
Macro pressures are expected to impact the near-term performance of Amazon, Apple, and Netflix. Wall Street is more bullish about Amazon and is confident about its long-term potential, thanks to its e-commerce leadership, the dominant position of AWS in cloud computing, and the growing advertising business.
As per TipRanks’ Smart Score System, Amazon earns a nine out of 10, which implies that the stock is capable of generating market-beating returns over the long term.
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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FAANG stocks (Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)) shed significant value last year. Apple (NASDAQ:AAPL) Often considered one of the most innovative companies in the world, Apple has delivered significant returns for shareholders over the past decade. At $170.18, the average AAPL stock price target implies nearly 8% upside.
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FAANG stocks (Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)) shed significant value last year. Apple (NASDAQ:AAPL) Often considered one of the most innovative companies in the world, Apple has delivered significant returns for shareholders over the past decade. At $170.18, the average AAPL stock price target implies nearly 8% upside.
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FAANG stocks (Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)) shed significant value last year. Apple (NASDAQ:AAPL) Often considered one of the most innovative companies in the world, Apple has delivered significant returns for shareholders over the past decade. At $170.18, the average AAPL stock price target implies nearly 8% upside.
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FAANG stocks (Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)) shed significant value last year. Apple (NASDAQ:AAPL) Often considered one of the most innovative companies in the world, Apple has delivered significant returns for shareholders over the past decade. At $170.18, the average AAPL stock price target implies nearly 8% upside.
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16689.0
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2023-03-22 00:00:00 UTC
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Why Compare U.S. and International Equities This Year
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https://www.nasdaq.com/articles/why-compare-u.s.-and-international-equities-this-year
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By now advisors have heard of the growing interest in international equities, and for good reason -- lots of investors are looking for return that isn’t significantly exposed to U.S. equities teetering from rising rates and bank crisis volatility. For those looking to get deeper into the subject, recent research from Richard Bernstein Advisors (RBA) offers advisors an opportunity to compare U.S. and international equities and understand RBA’s view on approaching the market overall this year.
RBA’s investment approach prioritizes the profits cycle, investing on a fundamentals-driven, top-down basis and looking at three key factors in profits, liquidity, and sentiment. Those factors help frame RBA’s overall thinking, with its recent research emphasizing two key drivers behind the difference in international and U.S. equities, which typically differ by more than 10 percentage points in a “typical year.”
See more: Stock Picking Is Risky – Look to Profit Cycles Instead
One of those factors to watch is tech stocks. International markets are much less exposed to tech stocks. While the U.S. equities market is led by megacap tech names like Apple (AAPL) or Microsoft (MSFT), foreign economies are overweight in cyclical areas like financials, materials and industrials.
Given that the monetary policy and liquidity background has changed, tech stocks have become much less attractive, especially when comparing their valuations to firm valuations in international settings.
Sectors aren’t the only factor here, though. While regional and country equity markets have moved in parallel for several years, they may be diverging despite globalization -- the same sector can perform very differently in different regions. Consumer discretionary stocks were down last year in the U.S. by about 38%, but only down by 21% in Europe. What’s more, “deglobalization” driven by the pandemic and geopolitical strife like Russia’s war in Ukraine may driven this trend further.
Furthermore, as mentioned above, concerns about the Federal Reserve and how its campaign against inflation is draining liquidity are certainly top of mind for investors and advisors. While the bank’s fight dominatesmarket newsin the U.S., international economics have done a lot of the hard monetary work already after the pandemic; add in tightening credit lines amid the bank crisis in the U.S., and the comparison leans even more towards foreign credit environments.
All of those reasons, and the ongoing trend of cheaper valuations abroad, invite investors to compare U.S. and international equities as they look at their ETF options -- with RBA’s iMGP RBA Responsible Global Allocation ETF (IRBA) one option. IRBA has a go-anywhere approach not only for assets, mixing fixed income and equities, but also geography.
IRBA has outperformed some of its multi-asset rivals YTD, like the SPDR SSGA Multi-Asset Real Return ETF (RLY) by 349 basis points in that time frame. Charging 69 basis point and actively adding a sustainability screen, it could be a tool to consider for those looking to compare U.S. and international equities right now and diversify from there.
For more news, information, and analysis from Richard Bernstein and the whole team at RBA, visit the Richard Bernstein Advisors Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the U.S. equities market is led by megacap tech names like Apple (AAPL) or Microsoft (MSFT), foreign economies are overweight in cyclical areas like financials, materials and industrials. Furthermore, as mentioned above, concerns about the Federal Reserve and how its campaign against inflation is draining liquidity are certainly top of mind for investors and advisors. Charging 69 basis point and actively adding a sustainability screen, it could be a tool to consider for those looking to compare U.S. and international equities right now and diversify from there.
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While the U.S. equities market is led by megacap tech names like Apple (AAPL) or Microsoft (MSFT), foreign economies are overweight in cyclical areas like financials, materials and industrials. For those looking to get deeper into the subject, recent research from Richard Bernstein Advisors (RBA) offers advisors an opportunity to compare U.S. and international equities and understand RBA’s view on approaching the market overall this year. RBA’s investment approach prioritizes the profits cycle, investing on a fundamentals-driven, top-down basis and looking at three key factors in profits, liquidity, and sentiment.
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While the U.S. equities market is led by megacap tech names like Apple (AAPL) or Microsoft (MSFT), foreign economies are overweight in cyclical areas like financials, materials and industrials. For those looking to get deeper into the subject, recent research from Richard Bernstein Advisors (RBA) offers advisors an opportunity to compare U.S. and international equities and understand RBA’s view on approaching the market overall this year. Those factors help frame RBA’s overall thinking, with its recent research emphasizing two key drivers behind the difference in international and U.S. equities, which typically differ by more than 10 percentage points in a “typical year.” See more: Stock Picking Is Risky – Look to Profit Cycles Instead One of those factors to watch is tech stocks.
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While the U.S. equities market is led by megacap tech names like Apple (AAPL) or Microsoft (MSFT), foreign economies are overweight in cyclical areas like financials, materials and industrials. For those looking to get deeper into the subject, recent research from Richard Bernstein Advisors (RBA) offers advisors an opportunity to compare U.S. and international equities and understand RBA’s view on approaching the market overall this year. Those factors help frame RBA’s overall thinking, with its recent research emphasizing two key drivers behind the difference in international and U.S. equities, which typically differ by more than 10 percentage points in a “typical year.” See more: Stock Picking Is Risky – Look to Profit Cycles Instead One of those factors to watch is tech stocks.
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16690.0
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2023-03-22 00:00:00 UTC
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Netflix (NFLX) Casts Gabriel Leone as Lead of Senna Miniseries
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https://www.nasdaq.com/articles/netflix-nflx-casts-gabriel-leone-as-lead-of-senna-miniseries
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Netflix NFLX recently announced that Brazilian actor Gabriel Leone would play the protagonist of three-time F1 champion Aryton Senna da Silva in its miniseries Senna. The series will be shot in English and Brazilian Portuguese and is expected to be available in 2024.
The six-episode series will explore Senna’s personality and relationships starting from his career debut and will culminate with the tragic death of Senna in an accident during the San Marino Grand Prix, Italy.
The series will be produced by Brazil’s Gullane for Netflix with complete support from Senna’s family. It will be a dual directorial with showrunner Vicente Amorim and director Juila Rezende.
Netflix’s Diverse Content Portfolio to Aid Prospect
Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL.
Netflix’s revenues increased 1.9% year over year in fourth-quarter 2022 thanks to strong content.
Moreover, the global paid subscriber base increased 4% year-over-year in the fourth quarter to 230.75 million.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
NFLX shares have also outperformed Disney and Amazon, but Apple turned out to be better. Shares of Disney, Amazon and Apple have declined 31.1%, 39% and 5.7% in the past year, respectively.
This outperformance can be explained by its diversified content portfolio and expanding game portfolio, which is attributable to heavy investments in the production and distribution of multilinguistic content.
Some other upcoming projects of Netflix are Murder Mystery 2, One Hundred Years of Solitude, Kill Boksoon.
What Awaits Netflix in 2023?
This Zacks Rank #2 (Buy) company expects first-quarter 2023 revenues to increase 3.9% year-over-year to around $8.17 billion. Earnings are pegged around $2.82 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.92% growth from the year-ago quarter’s reported figure.
The consensus mark for first-quarter 2023 earnings is pegged at $2.81 per share, unchanged in the past 30 days.
Netflix has expanded its focus on its mobile games portfolio, with 40 games to be released this year and 70 games in the development phase. It is also developing 16 games in its in-house game studios. It has also been to acquiring several game studios like Next Games, Boss Fight Entertainment and Night School Studio to expand its footprint in the industry.
Netflix has started making improvements in its newly launched ad delivery service, which will be better for consumers. More relevant advertising will bring more value to the advertisers and a better set of product offerings for advertisers to buy.
Throughout 2023, Netflix expects to see accelerating revenue growth through rolling out paid sharing model in a broad perspective and scaling of lower-priced ad supported plans.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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 streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.92% growth from the year-ago quarter’s reported figure.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix’s Diverse Content Portfolio to Aid Prospect Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix’s Diverse Content Portfolio to Aid Prospect Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. This Zacks Rank #2 (Buy) company expects first-quarter 2023 revenues to increase 3.9% year-over-year to around $8.17 billion.
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16691.0
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2023-03-22 00:00:00 UTC
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ESGU, SJIM: Big ETF Outflows
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https://www.nasdaq.com/articles/esgu-sjim%3A-big-etf-outflows
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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 46,300,000 units were destroyed, or a 21.1% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 0.4%, and Microsoft is up by about 1.1%.
And on a percentage change basis, the ETF with the biggest outflow was the SJIM ETF, which lost 80,000 of its units, representing a 32.0% decline in outstanding units compared to the week prior.
VIDEO: ESGU, SJIM: 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 0.4%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the SJIM ETF, which lost 80,000 of its units, representing a 32.0% decline in outstanding units compared to the week prior. VIDEO: ESGU, SJIM: 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 46,300,000 units were destroyed, or a 21.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the SJIM ETF, which lost 80,000 of its units, representing a 32.0% decline in outstanding units compared to the week prior. VIDEO: ESGU, SJIM: 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 46,300,000 units were destroyed, or a 21.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the SJIM ETF, which lost 80,000 of its units, representing a 32.0% decline in outstanding units compared to the week prior. VIDEO: ESGU, SJIM: 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 46,300,000 units were destroyed, or a 21.1% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 0.4%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the SJIM ETF, which lost 80,000 of its units, representing a 32.0% decline in outstanding units compared to the week prior.
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16692.0
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2023-03-22 00:00:00 UTC
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A Shift to Quality Is Not a Political Statement on ESG but the Market
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AAPL
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https://www.nasdaq.com/articles/a-shift-to-quality-is-not-a-political-statement-on-esg-but-the-market
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nan
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nan
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Sometimes the facts can get in the way of an ETF narrative. I think that’s what is occurring with the recent outflows to the iShares ESG Aware MSCI USA ETF (ESGU). The largest ESG ETF had a $4 billion net outflow on March 20, which pushed its one-year outflows to $6 billion, per data on VettaFi’s platform. While such a large redemption is certainly eye-catching, for perspective, ESGU still pulled in $10 billion in the last three years and manages $14 billion.
Some will have you believe that the backlash toward ESG being led by a small group of asset managers and politicians is the cause of the latest outflow. I know there are some advisors that want nothing to do with ESG, but many just are seeking out the best returns for their clients. So, anytime I see a redemption that large in one ETF, I look around to see what ETF might have been the beneficiary. I think I found it.
The iShares MSCI USA Quality Factor ETF (QUAL) pulled in $4.8 billion on March 20, erasing its prior one-year net outflows and pushing the cash haul over the past 12 months to $3.2 billion. The $25 billion ETF added $1.8 billion over three years. The added flows to QUAL likely represent a further tilt toward equity risk reduction favoring large- and mid-cap stocks amid a shifting macroeconomy and the impact of the bank failures on monetary policy.
The moves into QUAL and out of ESGU are so large that this is not likely the result of individual advisors or retail investors, but rather an institutional investor or an outsourced manager supporting a wide range of advisors. Regardless of who made the move, let’s understand what the end client gave up and what they got.
ESGU takes a tilted approach to companies with strong environmental, social, and governance attributes while seeking to have a similar risk profile to the broader MSCI USA Index. As a result, it is well diversified across sectors, with 27% of assets in information technology (the S&P 500 Index has 26%) and a 4.6% stake in energy (in line with the S&P 500). ESGU’s top holdings are ones you should expect in a large-cap fund -- Apple, Microsoft, Amazon.com -- though the weightings are slightly different. It is easy to see how ESGU might be a proxy for investing in high-quality companies without replicating a market cap-weighted S&P 500 Index.
QUAL has some similarities and some differences with ESGU. The ETF owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index. Information technology is the largest sector (22% of assets) but is soon followed by financials (16% vs. 13% for the S&P 500 Index and 12% for ESGU). Visa and Mastercard, which just became classified as financials, are two such top-10 holdings in QUAL.
For advisors concerned about debt leverage and earnings consistency in light of the recent bank failures and the impact of the Federal Reserve’s plans to shift monetary policy, a purer quality approach to investing makes sense.
Year-to-date, QUAL outperformed ESGU (6.5% vs. 4.5%), and in the past year, the dedicated quality fund lost less ground (-7.0% vs. -10.0%). Both ETFs chart 0.15% fees. Whether the recent trend continues is unknown, but the shift away from ESGU seems more like one based on investment merit than a political statement against ESG to me.
For more news, information, and analysis, visit VettaFi | ETF Trends.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The added flows to QUAL likely represent a further tilt toward equity risk reduction favoring large- and mid-cap stocks amid a shifting macroeconomy and the impact of the bank failures on monetary policy. The ETF owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index. For advisors concerned about debt leverage and earnings consistency in light of the recent bank failures and the impact of the Federal Reserve’s plans to shift monetary policy, a purer quality approach to investing makes sense.
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The largest ESG ETF had a $4 billion net outflow on March 20, which pushed its one-year outflows to $6 billion, per data on VettaFi’s platform. The iShares MSCI USA Quality Factor ETF (QUAL) pulled in $4.8 billion on March 20, erasing its prior one-year net outflows and pushing the cash haul over the past 12 months to $3.2 billion. The ETF owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index.
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The largest ESG ETF had a $4 billion net outflow on March 20, which pushed its one-year outflows to $6 billion, per data on VettaFi’s platform. The iShares MSCI USA Quality Factor ETF (QUAL) pulled in $4.8 billion on March 20, erasing its prior one-year net outflows and pushing the cash haul over the past 12 months to $3.2 billion. The ETF owns companies with high return on equity, stable year-over-year earnings growth, and low financial leverage, but also seeks to have a similar risk profile to the broader MSCI USA Index.
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The largest ESG ETF had a $4 billion net outflow on March 20, which pushed its one-year outflows to $6 billion, per data on VettaFi’s platform. So, anytime I see a redemption that large in one ETF, I look around to see what ETF might have been the beneficiary. Information technology is the largest sector (22% of assets) but is soon followed by financials (16% vs. 13% for the S&P 500 Index and 12% for ESGU).
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16693.0
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2023-03-22 00:00:00 UTC
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US STOCKS-Wall St slips ahead of Fed rate decision, Powell comments
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-ahead-of-fed-rate-decision-powell-comments
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nan
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nan
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By Amruta Khandekar and Shubham Batra
March 22 (Reuters) - Wall Street's main indexes edged lower on Wednesday, ahead of the outcome of the Federal Reserve's rate-setting meeting in which the central bank will seek to balance inflation and banking sector concerns.
Traders have halved the size of the expected interest rate hike to 25 basis points following troubles in the banking sector, with some pointing to the Fed's aggressive monetary tightening over the past year as one of the reasons for the crisis.
Analysts have said a pause was unlikely as it would indicate the banking turmoil, sparked by the failure of two U.S. regional lenders, had rattled the central bank.
The U.S. central bank's two-day policy meeting will end at 2 p.m. ET (1800 GMT), with investors keenly awaiting Fed Chair Jerome Powell's conference at 2:30 p.m. ET to gauge the central bank’s rate-hike trajectory.
"In order to solve the banking problem, you really have to go back down to very low interest rates and I don't think that's going to happen," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
"What you're going to wind up with is a Fed that will probably be a little bit more focused on inflation and they're going to deal with the banking situation as it comes up."
Eight of the S&P's 11 major sectors were in the red, with rate-sensitive real estate stocks .SPLRCR falling 1.9% to their lowest level since Nov. 4.
Apple Inc AAPL.O and Nvidia Corp NVDA.O, up 0.4% and 2.4% respectively, helped limit losses for the broader markets.
Wall Street's main indexes notched gains in the past two straight sessions, after the rescue of Credit Suisse CS.N as well as measures by central banks to boost liquidity helped soothe some worries about risks to other banks.
However, a scramble by troubled regional U.S. lender First Republic Bank FRC.N to secure a capital infusion has kept alive some worries about the banking sector.
Shares of First Republic slid 4.4%, with a Bloomberg News report on Tuesday stating the bank's rescue could rely on backing from the U.S. government to facilitate a deal.
Shares of its peer PacWest Bancorp PACW.Owere down 7.9%, while Western Alliance Bancorp WAL.Nwas marginally up 0.1%.
U.S. Treasury yields rose, with the yield on the two-year note, which best reflects interest rate expectations, last at 4.212%.
At 9:42 a.m. ET, the Dow Jones Industrial Average .DJI was down 31.96 points, or 0.10%, at 32,528.64, the S&P 500 .SPX was down 4.51 points, or 0.11%, at 3,998.36, and the Nasdaq Composite .IXIC was down 17.73 points, or 0.15%, at 11,842.38.
Among other stocks, Virgin Orbit Holdings Inc VORB.O soared 42.3% after Reuters reported the company is near a deal for a $200 million investment from Texas-based venture capital investor Matthew Brown.
GameStop Corp GME.N jumped 32.1% after the company posted a surprise profit for the fourth quarter, helped by lower costs and job cuts.
Carvana Co CVNA.N rose 17.8% after the used-car retailer forecast smaller core loss in the current quarter due to a raft of cost-cut measures.
Declining issues outnumbered advancers by a 1.56-to-1 ratio on the NYSE a 1.75-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and four new lows, while the Nasdaq recorded 13 new highs and 34 new lows.
(Reporting by Amruta Khandekar and Shubham Batra in Bengaluru; 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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Apple Inc AAPL.O and Nvidia Corp NVDA.O, up 0.4% and 2.4% respectively, helped limit losses for the broader markets. "In order to solve the banking problem, you really have to go back down to very low interest rates and I don't think that's going to happen," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest. Shares of First Republic slid 4.4%, with a Bloomberg News report on Tuesday stating the bank's rescue could rely on backing from the U.S. government to facilitate a deal.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O, up 0.4% and 2.4% respectively, helped limit losses for the broader markets. By Amruta Khandekar and Shubham Batra March 22 (Reuters) - Wall Street's main indexes edged lower on Wednesday, ahead of the outcome of the Federal Reserve's rate-setting meeting in which the central bank will seek to balance inflation and banking sector concerns. Traders have halved the size of the expected interest rate hike to 25 basis points following troubles in the banking sector, with some pointing to the Fed's aggressive monetary tightening over the past year as one of the reasons for the crisis.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O, up 0.4% and 2.4% respectively, helped limit losses for the broader markets. By Amruta Khandekar and Shubham Batra March 22 (Reuters) - Wall Street's main indexes edged lower on Wednesday, ahead of the outcome of the Federal Reserve's rate-setting meeting in which the central bank will seek to balance inflation and banking sector concerns. Traders have halved the size of the expected interest rate hike to 25 basis points following troubles in the banking sector, with some pointing to the Fed's aggressive monetary tightening over the past year as one of the reasons for the crisis.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O, up 0.4% and 2.4% respectively, helped limit losses for the broader markets. By Amruta Khandekar and Shubham Batra March 22 (Reuters) - Wall Street's main indexes edged lower on Wednesday, ahead of the outcome of the Federal Reserve's rate-setting meeting in which the central bank will seek to balance inflation and banking sector concerns. Traders have halved the size of the expected interest rate hike to 25 basis points following troubles in the banking sector, with some pointing to the Fed's aggressive monetary tightening over the past year as one of the reasons for the crisis.
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16694.0
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2023-03-22 00:00:00 UTC
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$10,000 Invested In These Growth Stocks Could Make You a Fortune Over the Next 10 Years
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AAPL
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https://www.nasdaq.com/articles/%2410000-invested-in-these-growth-stocks-could-make-you-a-fortune-over-the-next-10-years-7
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nan
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nan
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Now is a great time to start building a portfolio of growth stocks to simply hold on to for the next decade. When the market was down just over a decade ago during the financial crisis, it gave us buying opportunities in amazing companies, and there are similar opportunities emerging today.
Three industry-leading companies that I think will continue their growth trends are Spotify (NYSE: SPOT), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Topgolf Callaway (NYSE: MODG). These opportunities might not last forever.
Spotify: The audio giant
No company has been more critical in the recovery of the music business than Spotify. It made streaming economical for labels and artists and built a big business in the process. But that business wasn't particularly profitable because a few record labels control most of the supply, meaning it's the labels that have pricing power, not Spotify.
To address this, Spotify has moved into podcasts and audiobooks, added advertising, and is now charging artists for discovery features in curated and artificial intelligence playlists. This is helping improve the business's economics even as the economy slows down.
You can see below that Spotify hasn't struggled for growth. But even as some of the business improves, the company has been investing in podcasts and advertising, which have yet to pay off. If they do, this company should see rapid margin improvement.
SPOT Revenue (TTM) data by YCharts
I recently highlighted how these discovery tools will help Spotify's economics long-term, and the reality is that no company is building the same features in audio. Spotify is in a class of its own, and in 10 years I think this company will be much more valuable.
Taiwan Semiconductor: THE chip company
Few companies in the world have as much power in any industry as Taiwan Semiconductor currently has in semiconductors. The company makes a majority of the high-performance chips in smartphones and computers today. It's the outsourced foundry for companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Apple (NASDAQ: AAPL), and even Intel (NASDAQ: INTC), and no rivals are currently close to its high-end capabilities.
Where it sits in the market, the company has the ability to command a premium price, which you can see in its nearly 50% net profit margin.
TSM Revenue (TTM) data by YCharts
Given that a new foundry costs tens of billions of dollars to build and the expertise to build advanced foundries is difficult to develop, Taiwan Semiconductor has built a multi-year lead over competitors like Intel. And with revenue continuing to grow on higher chip demand, this is a company I like for a decade or more.
Topgolf Callaway: The leader on the links
Experiential entertainment continues to grow as a category, and Topgolf Callaway is one of the leaders. It combines the Callaway brand in traditional golf with Topgolf "off-course" play and its technology solutions for modern golf. This has attracted new, younger players to a game that was aging rapidly.
In 2022, the company's revenue mix was 35% from golf equipment, 26% from active lifestyle products like clothing, and 39% from Topgolf. It's that last segment that makes this a great stock.
For a new Topgolf venue, average cash-on-cash returns are currently 49%. There were 92 venues by the end of 2022, and management thinks there's potential to grow to 500 venues worldwide. This ranges from small locations to large venues.
Companywide, income from operations was up 25.5% in 2022 to $256.8 million. The 2023 outlook is for an 11% increase in revenue to between $4.42 billion and $4.47 billion, with adjusted EBITDA increasing 13% to $620 million to $640 million.
After a recent round of financing, net debt of $2.1 billion is a concern, but it's also the right move to leverage the business to grow when the economics of a Topgolf location are this good. Long-term, I think this will be a great business to own.
Buy and hold for market-beating returns
The key with companies like this is buying and holding stocks long-term. We don't know if the next month or quarter will be good for these companies, but over the next decade, I think they will all perform well and beat the market. That's where investors can make a fortune.
10 stocks we like better than Spotify Technology
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*Stock Advisor returns as of March 8, 2023
Travis Hoium has positions in Apple, Intel, Spotify Technology, and Topgolf Callaway Brands. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Topgolf Callaway Brands and 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's the outsourced foundry for companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Apple (NASDAQ: AAPL), and even Intel (NASDAQ: INTC), and no rivals are currently close to its high-end capabilities. To address this, Spotify has moved into podcasts and audiobooks, added advertising, and is now charging artists for discovery features in curated and artificial intelligence playlists. SPOT Revenue (TTM) data by YCharts I recently highlighted how these discovery tools will help Spotify's economics long-term, and the reality is that no company is building the same features in audio.
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It's the outsourced foundry for companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Apple (NASDAQ: AAPL), and even Intel (NASDAQ: INTC), and no rivals are currently close to its high-end capabilities. Three industry-leading companies that I think will continue their growth trends are Spotify (NYSE: SPOT), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Topgolf Callaway (NYSE: MODG). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Spotify Technology, and Taiwan Semiconductor Manufacturing.
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It's the outsourced foundry for companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Apple (NASDAQ: AAPL), and even Intel (NASDAQ: INTC), and no rivals are currently close to its high-end capabilities. Three industry-leading companies that I think will continue their growth trends are Spotify (NYSE: SPOT), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Topgolf Callaway (NYSE: MODG). See the 10 stocks *Stock Advisor returns as of March 8, 2023 Travis Hoium has positions in Apple, Intel, Spotify Technology, and Topgolf Callaway Brands.
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It's the outsourced foundry for companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Apple (NASDAQ: AAPL), and even Intel (NASDAQ: INTC), and no rivals are currently close to its high-end capabilities. If they do, this company should see rapid margin improvement. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Travis Hoium has positions in Apple, Intel, Spotify Technology, and Topgolf Callaway Brands.
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16695.0
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2023-03-22 00:00:00 UTC
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Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-5
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares S&P 100 ETF (OEF), a passively managed exchange traded fund launched on 10/23/2000.
The fund is sponsored by Blackrock. It has amassed assets over $7.39 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 fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.44%.
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 34.60% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 34.95% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF return is roughly 7.18% so far this year and is down about -9.58% in the last one year (as of 03/22/2023). In the past 52-week period, it has traded between $161.29 and $212.94.
The ETF has a beta of 0.99 and standard deviation of 21.41% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 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, OEF 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 $299.35 billion in assets, SPDR S&P 500 ETF has $363.49 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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iShares S&P 100 ETF (OEF): 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 9.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): 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 $7.39 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 S&P 100 ETF (OEF): 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 9.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares S&P 100 ETF (OEF), a passively managed exchange traded fund launched on 10/23/2000.
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Click to get this free report iShares S&P 100 ETF (OEF): 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 9.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares S&P 100 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 9.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): 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 top 10 holdings account for about 34.95% of total assets under management.
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16696.0
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2023-03-22 00:00:00 UTC
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Is Now the Time to Buy Solana?
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AAPL
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https://www.nasdaq.com/articles/is-now-the-time-to-buy-solana
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nan
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nan
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For Solana (CRYPTO: SOL) investors, one of the most highly anticipated events of 2023 has almost arrived: the official launch of the Saga crypto phone. First announced back in the summer of 2022, the Saga has been available for pre-order for months now. With this new product debut in Q1 2023, Solana will become the first Layer-1 blockchain with its own crypto phone.
The big question is how much of a boost this product launch could provide for Solana, which has already skyrocketed 130% in early 2023. Over the past week, Solana is up 10%, and some investors think it could go higher based on its ability to become the clear leader in mobile crypto. Let's take a closer look at how the new crypto phone could impact the price of Solana going forward.
What is the Saga and why does it matter?
The Saga is a mobile phone running on the Android operating system that has been optimized for crypto and blockchain. It looks much like any other Android phone, but there are a few key differences. For one, the phone makes everything you would normally do with crypto and blockchain easier, faster, and more secure. For this reason, Solana refers to this phone as a "premium mobile experience." And it will give you access to new decentralized applications that are optimized for the Solana ecosystem, such as new apps based around non-fungible tokens (NFTs) and blockchain gaming.
Image source: Getty Images.
If you buy into the argument that the future of crypto is mobile, then the Saga could be a huge leap forward for Solana. For one, it will make the entire Solana ecosystem much more attractive to users and developers, and that will increase the overall value of Solana. Second, the phone is a way of integrating together other web3 innovations from Solana into one seamless experience, so there are potential synergies here. The Saga, which will have its own app store, will play a key role in uniting all of the decentralized apps currently in the Solana ecosystem.
Market disruption potential
Where things get very interesting is when you consider how the Saga could disrupt the traditional mobile phone industry. Solana says its phone will be completely open source, which means users can modify and customize it as they see fit. The entire technology stack used to create mobile applications will be very easy to use and readily available to developers. This is very different from the model used by Apple (NASDAQ: AAPL), which is based on proprietary technology and walled gardens.
Moreover, Solana says its phone will be much more secure than traditional phones due to its use of tamper-proof blockchain technology for transactions. There are two big implications here. One is that your Solana phone will become your hardware wallet, and you will be able to take this super-secure blockchain wallet with you wherever you go. The other is that Solana Pay (essentially, Solana's version of Apple Pay) has an opportunity to become much more popular given the security and ease of making payments at retail locations with your Solana phone.
This is not to say that the Solana crypto phone is going to be an iPhone killer at the outset. After all, Solana is only accepting 10,000 pre-orders for the Saga. That's a drop in the ocean compared to how many iPhones are sold in a year. But if you're a long-term investor, you can think of this crypto phone from the standpoint of disruptive technology. Most disruptive innovations start with just a tiny market niche before snowballing into something much more.
Should you buy Solana?
In a best-case scenario, the Saga crypto phone could change the way people view Solana. The future of crypto is mobile, and Solana is trying to become the top blockchain for mobile crypto. Making crypto fun and easy to use on your mobile device is something you just can't get from today's mobile phones, which view crypto as an afterthought at best. For example, you can now buy a new NFT in less than 60 seconds with the new Solana phone, and you will have access to it in a secure blockchain wallet. Try doing that on your iPhone.
The risk, though, is that the new Solana phone doesn't work as advertised. Solana already has taken a lot of criticism for network outages, and any initial problems with the Saga could compound matters. The new Solana phone is not cheap -- it was selling for $1,000 in the U.S. ahead of launch date -- so imagine the PR disaster that might occur if it experiences any performance issues if the Solana blockchain goes down.
Taking a long-term view, though, the Solana phone appears to be integrated into the blockchain's overarching strategy for web3 and the decentralized internet. Given my own belief in the future of mobile crypto, I'm bullish on Solana both in the short and long term.
10 stocks we like better than Solana
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Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Solana. 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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This is very different from the model used by Apple (NASDAQ: AAPL), which is based on proprietary technology and walled gardens. Over the past week, Solana is up 10%, and some investors think it could go higher based on its ability to become the clear leader in mobile crypto. And it will give you access to new decentralized applications that are optimized for the Solana ecosystem, such as new apps based around non-fungible tokens (NFTs) and blockchain gaming.
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This is very different from the model used by Apple (NASDAQ: AAPL), which is based on proprietary technology and walled gardens. And it will give you access to new decentralized applications that are optimized for the Solana ecosystem, such as new apps based around non-fungible tokens (NFTs) and blockchain gaming. The Motley Fool has positions in and recommends Apple and Solana.
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This is very different from the model used by Apple (NASDAQ: AAPL), which is based on proprietary technology and walled gardens. For Solana (CRYPTO: SOL) investors, one of the most highly anticipated events of 2023 has almost arrived: the official launch of the Saga crypto phone. The other is that Solana Pay (essentially, Solana's version of Apple Pay) has an opportunity to become much more popular given the security and ease of making payments at retail locations with your Solana phone.
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This is very different from the model used by Apple (NASDAQ: AAPL), which is based on proprietary technology and walled gardens. But if you're a long-term investor, you can think of this crypto phone from the standpoint of disruptive technology. The future of crypto is mobile, and Solana is trying to become the top blockchain for mobile crypto.
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16697.0
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2023-03-22 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Bank of America, Apple, Microsoft and Nvidia
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-bank-of-america-apple-microsoft-and-nvidia
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nan
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nan
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For Immediate Release
Chicago, IL – March 22, 2023 – Today, Zacks Investment Ideas feature highlights Bank of America BAC, Apple AAPL, Microsoft MSFT and Nvidia NVDA.
7 Signs of Bull Market Behavior
Expect the Unexpected
If history teaches us anything about Wall Street, it's to expect the unexpected. For example, the prevailing mindset into 2023 was that:
· "Higher interest rates are good for banks." If banks are managed properly, this notion can be true. When rates rise, banks can take advantage of the spread between the interest that banks pay to customers and the interest the bank can earn by investing. However, rising interest rates are not always positive – especially when they rise as fast as they have recently. This cycle, Silicon Valley Bank set off a firestorm by making ill-advised bond bets that would benefit if rates stayed near rock bottom lows and suffer if they didn't. Ultimately the bond bets, coupled with an increase in withdrawals, led to the bank's demise and set off a domino effect in the industry.
· Crypto is dead: As if the crash of Bitcoin from nearly $70,000 to under $20,000 wasn't enough, the recent "crypto winter" led to a snowballing effect and ice-cold sentiment into the new year. In 2022, several exchanges, tokens, and brokers blew up – ultimately culminating in the demise of one of the largest crypto exchanges, FTX. However, to the surprise of many, Bitcoin has shown incredible resilience, even in the face of the current macroeconomic climate. Fast forward to today, and Bitcoin is up nearly 70% year-to-date.
The Madness of Crowds
Is the crowd on the wrong side of the trade again? The notion that higher interest rates are favorable for banks and crypto being dead are two recent instances of "the crowd" being on the wrong side of a trade. Now, according to the AAII (American Association of Individual Investors) Survey, bullish sentiment is at a 6-month low while bearish sentiment is at a 4-month high. In other words, most investors believe that markets are ready to fall. Below are 7 signs we may be in a bull market:
1. Higher highs & higher lows: Higher highs and higher lows is the first step to having an uptrend. Currently, the tech-heavy Nasdaq 100 ETF is achieving this.
However, the iShares Russell 200 ETF, which tracks small caps and has been dragged down by banks and energy stocks, is having difficulty creating higher lows.
2. A More "Accommodative" Federal Reserve: The Federal Reserve, which controls interest rates, has a significant impact on liquidity and thus, market direction. In an effort to tamp down inflation, the Fed has been raising interest rates rapidly. That said, the recent banking crisis may force a "pivot" or at least a slowdown of rate hikes. As the old Wall Street saying goes, "don't fight the fed!"
3. Stocks are Climbing the "Wall of Worry": If all the news is rosy and everyone is on the same side of the boat, it is difficult for stocks to move higher. At the moment, investors have plenty to worry about, including the War in Ukraine, rampant inflation, and the banking crisis. With that said, investors should put less emphasis on the news and more emphasis on the reaction to the news. The market reaction to the news is more telling than the news itself.
4. Weak Opens, Strong Closes: In bear markets, stocks tend to open strong and close weak. Conversely, in bull markets, stocks tend to open weak and close strong.
5. Strong Breadth: Breadth measures the number of stocks participating in a move. More participation generally leads to a more robust market uptrend.
6. Bullish Golden Cross: A "Golden Cross" occurs when the shorter-term 50-day moving average crosses above the longer-term 200-day moving average. This bullish phenomenon signals an intermediate trend change.
7. Seasonality: Seasonality trends can play a key role in how the market behaves. Pre-presidential election years, like the one we are in now, tend to provide the largest gains on average.
Takeaway
Despite the negative news, sentiment, and recent volatility, stocks are taking steps toward entering a classic bull market. However, nothing is certain just yet. In order to provide more solid evidence, small-cap stocks will need to begin to participate in a larger way, and the ailing banking sector will need to stabilize. Bulls want to see continued strength in growth-tech and stabilization in names such as Bank of America.As of now, the market is being carried by mega-cap tech stocks such as Apple, Microsoft and Nvidia.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – March 22, 2023 – Today, Zacks Investment Ideas feature highlights Bank of America BAC, Apple AAPL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. This cycle, Silicon Valley Bank set off a firestorm by making ill-advised bond bets that would benefit if rates stayed near rock bottom lows and suffer if they didn't.
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For Immediate Release Chicago, IL – March 22, 2023 – Today, Zacks Investment Ideas feature highlights Bank of America BAC, Apple AAPL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Weak Opens, Strong Closes: In bear markets, stocks tend to open strong and close weak.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – March 22, 2023 – Today, Zacks Investment Ideas feature highlights Bank of America BAC, Apple AAPL, Microsoft MSFT and Nvidia NVDA. When rates rise, banks can take advantage of the spread between the interest that banks pay to customers and the interest the bank can earn by investing.
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For Immediate Release Chicago, IL – March 22, 2023 – Today, Zacks Investment Ideas feature highlights Bank of America BAC, Apple AAPL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The notion that higher interest rates are favorable for banks and crypto being dead are two recent instances of "the crowd" being on the wrong side of a trade.
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16698.0
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2023-03-22 00:00:00 UTC
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Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-information-technology-index-etf-ftec-6
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nan
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nan
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The Fidelity MSCI Information Technology Index ETF (FTEC) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer 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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $5.80 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.82%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.38% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA).
The top 10 holdings account for about 59.05% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Information Technology Index ETF has added about 16.16% so far, and is down about -7.68% over the last 12 months (as of 03/22/2023). FTEC has traded between $88.99 and $126.84 in this past 52-week period.
The ETF has a beta of 1.15 and standard deviation of 28.58% for the trailing three-year period, making it a medium risk choice in the space. With about 369 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index 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, FTEC is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $42.01 billion in assets, Vanguard Information Technology ETF has $45.04 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.38% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports 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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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.38% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. 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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Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.38% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Alternatives Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.38% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The Fidelity MSCI Information Technology Index ETF (FTEC) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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16699.0
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2023-03-22 00:00:00 UTC
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Nasdaq Bear Market: 1 Key Reason Apple Has Avoided Major Job Cuts
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AAPL
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-1-key-reason-apple-has-avoided-major-job-cuts
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nan
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nan
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Apple (NASDAQ: AAPL) has been nothing short of a dream stock over the last few years. The company produced magnificent returns for shareholders while growing its top and bottom lines at a breakneck pace. It also hasn't been nearly as volatile as other tech giants, and it is currently down by just 14.8% from its all-time high.
Apple made major product and service developments in recent years, most notably the successful expansion of AirPods on the product side and Apple Music, Apple TV+, Apple Card, and Apple Pay on the services side. Yet there's another big reason for Apple stock's success you might not have noticed -- its relentless share repurchases.
The immediate benefit of buying back stock is that it reduces the outstanding share count, which boosts earnings per share (EPS) and makes each remaining share worth more. But a seldom-mentioned benefit of Apple's buyback program is that it serves as a budgetary check on the company. Having an expensive buyback program helps Apple avoid the temptation to overexpand and allows it to boost its EPS the easy way. Here's how it works.
Image source: Getty Images.
A primer on FCF use cases
Apple generates consistently high free cash flow (FCF) because it has high margins and makes way more cash than it needs to operate. Companies can use their FCF to pay down debt, pay dividends, buy back stock, or reinvest in the business.
It already has a great balance sheet, so paying down debt doesn't make too much sense for Apple. It pays a small dividend that yields about 0.6% at the current share price. And while it definitely has the cash to raise that dividend, the issue with dividends is that they do not provide the same lasting benefits as stock buybacks. Both the corporation and its investors pay taxes on dividends. And while a dividend payment can provide shareholders with a nice stream of passive income, it needs to be consistently paid and raised to be a core part of an investment thesis.
On the other hand, buybacks reduce the outstanding share count, which boosts EPS, providing lasting benefits to shareholders. If buybacks continue, there will be fewer and fewer shares -- again, a more permanent benefit that grows EPS, unlike a dividend.
There are many cases where it makes more sense for a company to pay a large dividend rather than buy back its own stock. For example, with low-growth businesses, it can be better to return excess FCF directly to shareholders. But because Apple has so much growth potential across different markets, it makes more sense for it to use the majority of its FCF on its buyback program.
A marathon, not a sprint
By spending most of its FCF on share repurchases, Apple can't grow its business as quickly. But the truth is, it doesn't have to.
One big mistake that large companies can make is to expand horizontally into too many markets too quickly, which leaves them vulnerable during an economic downturn. Then, the company often must retrace its steps, reduce its workforce, and cut spending, which leads to a lot of hassle and waste that could have been avoided if growth was more regimented.
Apple's approach to growth is the exact opposite of Amazon's (NASDAQ: AMZN). The e-commerce and cloud powerhouse famously doesn't pay a dividend and rarely buys back its own stock. Instead, it tries to grow as quickly as possible. That strategy can allow Amazon to take market share faster than its competitors, which worked marvelously for Amazon Web Services. But it has backfired in a big way lately in its e-commerce business, which left the company scrambling to cut costs so that it could return to positive FCF.
Because it lacks extra FCF, Amazon also doesn't have the dry powder to buy back its own stock now, even though the price is down 47% from its all-time high. Apple, meanwhile, has the cash to buy back its stock if it gets unfairly and excessively sold off by the market.
Why Apple stands out from the crowd
In the current tech sector downturn, Apple is one of the few major tech companies that has not meaningfully cut its workforce -- a testament to how well-run it is. By contrast, Microsoft, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon, and Meta Platforms (NASDAQ: META) have all laid off thousands of people. Like Apple, Meta and Alphabet generate a lot of FCF and use a good amount of it to buy back stock. But the two tech giants also used some of their spare cash to overhire and invest too quickly in growth. With Alphabet stock trading down 32% from its all-time high and Meta Platforms down 49%, those earlier buybacks look in hindsight like bad investments.
Apple is unusual because it seems genuinely comfortable with its growth rate. In fact, you could even argue that using more of its FCF to speed up growth would be a wasteful endeavor compared to using it to reduce the outstanding share count. The key takeaway here is that reducing the outstanding share count compounds the value of Apple's efforts for its shareholders by permanently boosting EPS.
Over the last 10 years, Apple grew its diluted EPS by 294% compared to net income growth of 140% because it bought back so much of its own stock.
AAPL Shares Outstanding data by YCharts.
If Apple had used that FCF to try and grow earnings instead of reducing its outstanding share count, it would have needed to earn $158.2 billion in net income in 2022 instead of the $95.2 billion it actually made to achieve the same EPS. This stark difference shows how buybacks have allowed Apple to grow its EPS without relying solely on net income growth.
Apple stock is a buy
Despite the myriad headwinds indirectly and directly impacting Apple's business, the company remains in the driver's seat. It has a massive cash cushion and is well-positioned to benefit from a market downturn by buying back its own stock at lower prices and by taking market share from competitors.
And with a price-to-earnings ratio of 26, Apple isn't too expensive of a stock given the quality of its business.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Daniel Foelber has the following options: long April 2023 $89 calls on Amazon.com, long December 2025 $100 calls on Amazon.com, long December 2025 $120 calls on Amazon.com, long March 2023 $91 calls on Amazon.com, long October 2023 $100 calls on Amazon.com, long October 2023 $105 calls on Amazon.com, short April 2023 $90 calls on Amazon.com, short December 2025 $105 calls on Amazon.com, short December 2025 $120 calls on Amazon.com, and short March 2023 $92 calls on Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, 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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Apple (NASDAQ: AAPL) has been nothing short of a dream stock over the last few years. AAPL Shares Outstanding data by YCharts. And while a dividend payment can provide shareholders with a nice stream of passive income, it needs to be consistently paid and raised to be a core part of an investment thesis.
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Apple (NASDAQ: AAPL) has been nothing short of a dream stock over the last few years. AAPL Shares Outstanding data by YCharts. The immediate benefit of buying back stock is that it reduces the outstanding share count, which boosts earnings per share (EPS) and makes each remaining share worth more.
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Apple (NASDAQ: AAPL) has been nothing short of a dream stock over the last few years. AAPL Shares Outstanding data by YCharts. Apple made major product and service developments in recent years, most notably the successful expansion of AirPods on the product side and Apple Music, Apple TV+, Apple Card, and Apple Pay on the services side.
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Apple (NASDAQ: AAPL) has been nothing short of a dream stock over the last few years. AAPL Shares Outstanding data by YCharts. The immediate benefit of buying back stock is that it reduces the outstanding share count, which boosts earnings per share (EPS) and makes each remaining share worth more.
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