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16700.0
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2023-03-22 00:00:00 UTC
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3 Blue-Chip Dividend Stocks That Generate Gobs of Shareholder Value
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AAPL
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https://www.nasdaq.com/articles/3-blue-chip-dividend-stocks-that-generate-gobs-of-shareholder-value
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Aside from being well-known, industry-leading brands, Apple (NASDAQ: AAPL), Target (NYSE: TGT), and Caterpillar (NYSE: CAT) may not have much in common as companies. But as stocks, all three investment opportunities balance growth, income, and value.
Another throughline is that each business generates a ton of free cash flow (FCF) and then uses that FCF to pay dividends and buy back stock.
Here's how stock buybacks have helped to bolster shareholder value, and why Apple, Target, and Caterpillar are top stocks to buy now.
Image source: Getty Images.
This is how you buy back stock
Apple is the poster child of using the vast majority of its FCF to buy back its own stock. Over the past five years it has bought back 19.5% of its own stock, and nearly 40% over the last 10 years. And it has done so at prices far lower than the current price of the stock. Caterpillar and Target have done similarly timely repurchases, but not to the extent of Apple.
AAPL data by YCharts
The above chart shows exactly the pattern that investors want to see, which is a rising stock price combined with lower shares outstanding. In other words, the stock buybacks were a good use of capital because the share prices are higher today and the repurchase of stock has boosted earnings per share.
What investors don't want to see is a falling stock price and a high volume of buybacks, because that indicates a company overpaid for its stock and possibly could have put that capital to work more effectively by improving the underlying business.
In the case of Apple, the company pays a small dividend that yields just 0.6%. Apple's FCF yield of 3.9% suggests the company could theoretically have a 3.9% dividend yield if it didn't buy back stock and used all of its FCF on paying dividends instead.
However, long-term investors would likely prefer that Apple uses its FCF on buybacks and not the dividend because buybacks permanently reduce the outstanding share count and lead to a better value for Apple stock over the long term.
A rock-solid dividend yield backed by a great brand
Like Apple, Target has done a phenomenal job of buying back shares at a lower average price than the current price of the stock. But Target simply doesn't have the growth prospects or high margins that Apple enjoys. And for that reason, it makes sense for Target to do a combination of buying back stock and paying a high dividend -- which is exactly what Target is doing.
Not only does Target stock have a dividend yield of 2.7%, but it is also a Dividend King, meaning an S&P 500 component that has paid and raised its dividend for at least 50 years.
Target's track record for dividend raises and stock buybacks indicates that it is a stable business that routinely generates more FCF than it needs, and it directly passes that FCF along to shareholders.
Even so, Target hasn't shied away from growth opportunities. It wasn't long ago that investors talked about Amazon (NASDAQ: AMZN) and the rise of e-commerce inflicting permanent or even existential damage on Target's business model. To its credit, Target invested in e-commerce and curbside pickup. But it did so in a way that was conducive to its business model -- which was essentially leveraging its stores to serve as pickup locations and save on shipping.
That strategy has proven highly successful for Target. It has been able to boost its top and bottom lines without directly competing with Amazon by shipping from a warehouse to a consumer's doorstep. In fact, Target said that more than 95% of sales, including its digital sales, were fulfilled by its stores in 2022. Target has done an excellent job of leveraging its existing business model to adapt to modern consumer needs instead of trying to reinvent the wheel and play catchup with Amazon.
A cyclical business model, but a reliable and safe stock
Caterpillar stock has arguably been undervalued for a long time. The true value of the company's global oil and gas, construction, and mining portfolio has been put on display during the supply chain challenges over the last couple of years. Caterpillar stock reached an all-time high in January. Since then the stock has fallen about 20% from that peak. But the company's slew of buybacks over the past five years still looks prudent in hindsight.
What's more, Caterpillar has a 2.2% dividend yield and has paid and raised its dividend for 29 consecutive years -- a rare feat for a cyclical company that is heavily dependent on the broader economy.
Caterpillar's diverse business model, both across industries and geographies, as well as its high FCF, dividend, and ability to buy back shares make it a unique industrial stock. The company benefits from economic tailwinds while avoiding catastrophic downturns in its business when the economic cycle shifts. Caterpillar is a great stock to own for long-term investors that want to benefit from global industrialization without the volatility in earnings that is so common among smaller, less diversified industrial names.
A mixed trio of great buys now
Apple, Target, and Caterpillar all tend to generate high amounts of FCF and use that FCF to directly benefit shareholders. Apple leans more on buybacks than dividends, believing its ability to grow earnings will reward long-term shareholders more than a dividend. Meanwhile, Target and Caterpillar blend a combination of dividend raises and buybacks, and both sport impressive steaks of dividend raises year after year.
Investors looking to build a diversified portfolio could consider investing in all three industry-leading businesses for exposure to different sectors of the economy and a blend of growth, value, and income.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon.com, Apple, and Target. 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.
|
Aside from being well-known, industry-leading brands, Apple (NASDAQ: AAPL), Target (NYSE: TGT), and Caterpillar (NYSE: CAT) may not have much in common as companies. AAPL data by YCharts The above chart shows exactly the pattern that investors want to see, which is a rising stock price combined with lower shares outstanding. It wasn't long ago that investors talked about Amazon (NASDAQ: AMZN) and the rise of e-commerce inflicting permanent or even existential damage on Target's business model.
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Aside from being well-known, industry-leading brands, Apple (NASDAQ: AAPL), Target (NYSE: TGT), and Caterpillar (NYSE: CAT) may not have much in common as companies. AAPL data by YCharts The above chart shows exactly the pattern that investors want to see, which is a rising stock price combined with lower shares outstanding. 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.
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Aside from being well-known, industry-leading brands, Apple (NASDAQ: AAPL), Target (NYSE: TGT), and Caterpillar (NYSE: CAT) may not have much in common as companies. AAPL data by YCharts The above chart shows exactly the pattern that investors want to see, which is a rising stock price combined with lower shares outstanding. Here's how stock buybacks have helped to bolster shareholder value, and why Apple, Target, and Caterpillar are top stocks to buy now.
|
Aside from being well-known, industry-leading brands, Apple (NASDAQ: AAPL), Target (NYSE: TGT), and Caterpillar (NYSE: CAT) may not have much in common as companies. AAPL data by YCharts The above chart shows exactly the pattern that investors want to see, which is a rising stock price combined with lower shares outstanding. Over the past five years it has bought back 19.5% of its own stock, and nearly 40% over the last 10 years.
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16701.0
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2023-03-22 00:00:00 UTC
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ANALYSIS-India's law firms fret about poaching, plan fee hikes as foreigners gain a foothold
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AAPL
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https://www.nasdaq.com/articles/analysis-indias-law-firms-fret-about-poaching-plan-fee-hikes-as-foreigners-gain-a-foothold
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nan
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nan
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By Arpan Chaturvedi and Jayshree P Upadhyay
NEW DELHI/MUMBAI, March 22 (Reuters) - India's decision to allow foreign law firms to establish offices in the country is set to shake up its legal services industry, with local firms fretting star performers could soon be poached and predicting that fees will shoot higher to retain them.
As of March 10, foreign law firms can now set up shop in India to offer M&A and corporate advisory services as well as to handle arbitration disputes for foreign clients.
India had some $50 billion in cross-border deals last year while corporate arbitration cases and other legal disputes have continued to grow, making the South Asian market a lucrative one for global lawyers who until now have had to operate on a fly-in, fly-out basis.
Under the new rules, the remit of foreign law firms will still be somewhat limited as they won't be able to appear before courts or advise on Indian laws, though they will be able to seek the expertise of local lawyers "on any subject relating to Indian laws".
That caveat, however, also has local lawyers worried the move could represent the thin end of the wedge in opening up the wider legal market - one that Asia Legal Business estimates is worth up to $4 billion.
Local firms providing services to global companies such as Facebook-owner Meta Platforms META.O, Apple Inc AAPL.O and Walmart Inc WMT.N are already gearing up for the challenge.
"Pricing for legal services will go up very significantly," said Cyril Shroff, founder of Cyril Amarchand, one of India's biggest law firms, noting that local firms will in general need deeper pockets to go up against their foreign rivals.
"Indian firms that do not increase their prices and (don't) focus hard on profitability do so at their own peril. They will lose their best talent and eventually perish."
A senior partner at an Indian law firm typically charges around $400-600 per hour for M&A advisory services, but a partner at a New York firm's partner can bill $1,800.
WHO WILL MONITOR?
The Bar Council of India says its new rules will help establish the country as a hub for international commercial arbitration and boost the industry overall. Prime Minister Narendra Modi has also said India needs broad reforms to fix a legal system which is overburdened with millions of cases.
The move, while long-sought by overseas law firms, appears to have been somewhat unexpected in its timing.
Foreign law firms have yet to announce plans for new offices in India but international firms like Allen & Overy and Herbert Smith Freehills told Reuters they are examining the new rules.
DLA Piper said in a statement it will work with its clients to devise a strategy for the Indian market while Clyde & Co said there were "opportunities for growth" in India.
Lalit Bhasin, who heads the Society of Indian Law Firms, said there were concerns that a foreign law firm might de facto operate as a full-service firm by hiring local law firms to advise on areas concerning Indian law.
"Who is going to monitor whether that foreign law firm is not engaged in practice of Indian laws?" Bhasin said.
Another concern is the potential loss of business as a global company setting up a base in India could prefer to stick with its existing international team of lawyers.
"Newer companies who want to come to India may want to work with the same lawyers," said Gaurav Dani, founding partner of India's IndusLaw. "That would to some extent change the climate."
(Reporting by Arpan Chaturvedi and Jayshree P Upadhyay; Additional reporting by Nimitt Dixit; Editing by Aditya Kalra and Edwina Gibbs)
((Arpan.Chaturvedi@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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Local firms providing services to global companies such as Facebook-owner Meta Platforms META.O, Apple Inc AAPL.O and Walmart Inc WMT.N are already gearing up for the challenge. India had some $50 billion in cross-border deals last year while corporate arbitration cases and other legal disputes have continued to grow, making the South Asian market a lucrative one for global lawyers who until now have had to operate on a fly-in, fly-out basis. Another concern is the potential loss of business as a global company setting up a base in India could prefer to stick with its existing international team of lawyers.
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Local firms providing services to global companies such as Facebook-owner Meta Platforms META.O, Apple Inc AAPL.O and Walmart Inc WMT.N are already gearing up for the challenge. By Arpan Chaturvedi and Jayshree P Upadhyay NEW DELHI/MUMBAI, March 22 (Reuters) - India's decision to allow foreign law firms to establish offices in the country is set to shake up its legal services industry, with local firms fretting star performers could soon be poached and predicting that fees will shoot higher to retain them. Lalit Bhasin, who heads the Society of Indian Law Firms, said there were concerns that a foreign law firm might de facto operate as a full-service firm by hiring local law firms to advise on areas concerning Indian law.
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Local firms providing services to global companies such as Facebook-owner Meta Platforms META.O, Apple Inc AAPL.O and Walmart Inc WMT.N are already gearing up for the challenge. By Arpan Chaturvedi and Jayshree P Upadhyay NEW DELHI/MUMBAI, March 22 (Reuters) - India's decision to allow foreign law firms to establish offices in the country is set to shake up its legal services industry, with local firms fretting star performers could soon be poached and predicting that fees will shoot higher to retain them. Under the new rules, the remit of foreign law firms will still be somewhat limited as they won't be able to appear before courts or advise on Indian laws, though they will be able to seek the expertise of local lawyers "on any subject relating to Indian laws".
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Local firms providing services to global companies such as Facebook-owner Meta Platforms META.O, Apple Inc AAPL.O and Walmart Inc WMT.N are already gearing up for the challenge. By Arpan Chaturvedi and Jayshree P Upadhyay NEW DELHI/MUMBAI, March 22 (Reuters) - India's decision to allow foreign law firms to establish offices in the country is set to shake up its legal services industry, with local firms fretting star performers could soon be poached and predicting that fees will shoot higher to retain them. As of March 10, foreign law firms can now set up shop in India to offer M&A and corporate advisory services as well as to handle arbitration disputes for foreign clients.
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16702.0
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2023-03-22 00:00:00 UTC
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3 Tech Stocks Well Positioned For Growth At A Reasonable Price
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-well-positioned-for-growth-at-a-reasonable-price
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nan
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nan
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Legendary fund manager Peter Lynch became famous for an investment strategy called Growth at a Reasonable Price (GARP). While Lynch retired as manager of the Fidelity Magellan Fund in 1990 at only 46 (a testament to his success), the GARP strategy is still valid and can be applied today to stocks such as Super Micro Computer Inc. (NASDAQ: SMCI), Cohu Inc. (NASDAQ: COHU) and STMicroelectronics NV (NYSE: STM).
GARP is an investment strategy that identifies stocks with both solid growth prospects and reasonable valuations. That means finding companies that are expected to grow earnings and revenue at a faster clip than the overall market but which are not overvalued relative to industry peers or their own historical valuation metrics.
Characteristics that GARP investors look for include a track record of consistent earnings growth, as well as a P/E ratio that’s below some of the sky-high ratios you’ll find with many fast-growing techs, even as their prices drop.
Here’s a look at what makes three stocks potential candidates for investors interested in growth but who are leery of overpaying.
Super Micro Computer
Super Micro Computer designs and manufactures servers, storage systems, and other gear for manufacturers who slap their own labels on products.
It has several characteristics that make it a potential GARP stock:
Growth potential: A previous track record is often a precursor to further growth. You can study its financials on MarketBeat and see a history of increased revenue. SMCI has a three-year revenue growth rate of 26% and a three-year earnings growth rate of 50%. The company also has strong growth potential in the data-center market, which is expected to show strong expansion in the coming years.
Reasonable valuation: The company's current P/E ratio of 9 is below many other techs, indicating that the stock may be undervalued.
Strong financials: SMCI has a strong balance sheet, with a debt-to-equity ratio of 10 and a high return on equity at 25%.
The stock is currently extended from its most recent buy point above $95.22 but is worth keeping an eye on, as it may be buyable again with another moving-average pullback.
Cohu
Poway, California-based small cap, makes test and inspection equipment for the semiconductor and electronics industries. In addition to selling gear, Cohu also provides services, including customer training, technical support, and equipment maintenance.
Cohu is a worthy candidate under the GARP category for several reasons:
Growth potential: Cohu's revenue and earnings growth rates have been impressive in recent years. Its three-year earnings growth rate is 219%, not exactly a number you can find fault in. Revenue grew at a rate of 18% in that time.
Reasonable valuation: Cohu's P/E ratio is below the average within the semiconductor gear industry. That’s a sign that the stock may be undervalued relative to its price potential.
Positive industry outlook: The semiconductor industry is expected to continue growing over the next few years, driven by trends like AI and 5G technology. This could benefit Cohu, which provides critical testing and handling equipment for semiconductor manufacturers.
A look at Cohu’s chart shows the stock hitting resistance between $38 and $39 on three occasions in recent weeks. Its February 16 earnings report didn’t provide a catalyst for a rally, although remaining in a holding through market turbulence in recent weeks is a good sign that institutions aren’t inclined to bail out.
STMicroelectronics
Switzerland-based STMicroelectronics designs, develop, manufactures, and markets a wide range of chips for use in the automotive, telecommunications, and industrial markets. Its products are found in red-hot applications, including wireless connectivity and AI, as well as power and energy, security, and others. Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA) and Microsoft Corp. (NASDAQ: MSFT) are among its customers.
Here are some characteristics that make STMicroelectronics a GARP stock to consider:
Strong growth prospects: STMicroelectronics boasts a diversified product portfolio, with exposure to several high-growth areas such as automotive, industrial, and the Internet of Things (IoT). The company is geared toward innovation, which could put it in a good position to benefit from new tech trends.
Stable financial performance: The company has one of the best revenue growth records, with sales rising at double-digit rates in the past eight quarters. Earnings increased at double- and triple-digit rates during that time. Its three-year revenue growth rate is 20%, while its three-year earnings growth rate is 62%. This kind of revenue and earnings stability gives institutional investors a sense of security and confidence about a company’s future prospects.
Reasonable valuation: STMicroelectronics’ P/E ratio of 12 is lower than the average within the semiconductor manufacturing industry. That’s a clue that the stock may be undervalued, especially when you consider its growth prospects. In addition, the company also has a healthy dividend yield of 0.4%, giving incentivizing investors with another source of income.
MarketBeat analyst data for STMicroelectronics show a “moderate buy rating with a price target of $53.50, a potential upside of 7.62%. Watch for the stock to clear resistance above $50.81 in heavy trading volume, as that may precede a new rally.
The views and 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. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA) and Microsoft Corp. (NASDAQ: MSFT) are among its customers. That means finding companies that are expected to grow earnings and revenue at a faster clip than the overall market but which are not overvalued relative to industry peers or their own historical valuation metrics. Its February 16 earnings report didn’t provide a catalyst for a rally, although remaining in a holding through market turbulence in recent weeks is a good sign that institutions aren’t inclined to bail out.
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Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA) and Microsoft Corp. (NASDAQ: MSFT) are among its customers. While Lynch retired as manager of the Fidelity Magellan Fund in 1990 at only 46 (a testament to his success), the GARP strategy is still valid and can be applied today to stocks such as Super Micro Computer Inc. (NASDAQ: SMCI), Cohu Inc. (NASDAQ: COHU) and STMicroelectronics NV (NYSE: STM). Super Micro Computer Super Micro Computer designs and manufactures servers, storage systems, and other gear for manufacturers who slap their own labels on products.
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Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA) and Microsoft Corp. (NASDAQ: MSFT) are among its customers. SMCI has a three-year revenue growth rate of 26% and a three-year earnings growth rate of 50%. Cohu is a worthy candidate under the GARP category for several reasons: Growth potential: Cohu's revenue and earnings growth rates have been impressive in recent years.
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Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA) and Microsoft Corp. (NASDAQ: MSFT) are among its customers. Cohu is a worthy candidate under the GARP category for several reasons: Growth potential: Cohu's revenue and earnings growth rates have been impressive in recent years. Reasonable valuation: Cohu's P/E ratio is below the average within the semiconductor gear industry.
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16703.0
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2023-03-21 00:00:00 UTC
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Meta Stock: Bull vs. Bear
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AAPL
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https://www.nasdaq.com/articles/meta-stock%3A-bull-vs.-bear
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nan
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nan
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Meta Platforms (NASDAQ: META) has taken investors for a wild ride over the past year or two. The stock soared through much of 2020 and 2021, riding a boom in digital advertising like other tech stocks, but that gave way to an epic collapse last year as revenue growth ground to a halt, and its ambitious project in the metaverse turned into a massive money pit.
However, the stock has rebounded aggressively this year, doubling in the last few months after Zuckerberg promised investors that 2023 would be a "year of efficiency" and has since announced two rounds of layoffs.
After so much tumult, Meta now appears to be at a crossroads as it cuts costs and realigns its business. So is it a buy today? To answer that question, we asked two of our writers to give their bull and bear cases for the stock.
Image source: Meta Platforms.
Meta Platforms' profitability cannot be ignored.
Parkev Tatevosian: Meta Platforms may be facing a host of meaningful challenges, but that shouldn't deter investors from considering the social media giant turned metaverse hopeful. Rising competition from TikTok, privacy policy changes from Apple (NASDAQ: AAPL), and the raging war in Ukraine are each hurting Meta's prospects in the near term.
However, I will argue investors are overreacting to those difficulties. Meta's stock is down 54% off its recent highs in 2021. Further, Mark Zuckerberg and his team at Meta have proven adept at finding answers to difficult situations. When people converted their social media use away from computers and onto mobile devices, the market worried Meta would suffer.
Between 2015 and 2022, years of exponentially increasing mobile phone use, Meta's revenue soared from $17.9 billion to $116.6 billion. This revenue growth did not come at the expense of profits like many tech companies. Meta's operating income jumped from $6.2 billion to $28.9 billion in the years mentioned above.
META PE Ratio (Forward) data by YCharts.
It remains to be seen if Meta will take these current challenges and convert them into higher revenue and profits over the next several years. However, at a forward price-to-earnings ratio of 18.9, investors are getting a favorable risk-versus-reward from a company that has proven itself capable.
Too many questions
Jeremy Bowman: I've been impressed with Zuckerberg's ability to take back the narrative in the stock and drive a rebound in the share price, but the company still faces a number of challenges as it attempts to recapture the growth stock magic dust of old.
Those include declining revenue, competition from TikTok, a maturing digital ad market, a massive misjudgment in the metaverse, and the threat of an extended recession.
In other words, Meta is no longer the company it was a few years ago when it was growing rapidly and generating operating margins in the 40% range. However, Meta is unlikely to return to that previous growth rate. In fact, the company has posted a decline in revenue in each of its last three quarters, and it expects revenue to decline in the first quarter of 2023 as well.
While that's primarily due to challenges in the ad market, investors have been anticipating a slowdown in growth for years, which explains the company's formerly cheap valuation. However, now Meta is struggling to make up for the massive cash burn from Reality Labs, its metaverse project. In 2022, the company lost $13.7 billion on Reality Labs, and it's becoming increasingly clear that this was a bad bet as the metaverse has attracted little attention or consumer demand even after the recent release of the Quest Pro. Instead, the company seems to be shifting its attention to artificial intelligence, following Microsoft and OpenAI, the parent of ChatGPT.
Finally, after doubling from its nadir last fall, Meta Platforms stock is no longer cheap, trading at a price-to-earnings ratio of 23, making it more expensive than the S&P 500. After two rounds of layoffs, analysts are now expecting the company to return to bottom-line growth, but that will likely depend on what happens with the economy, and the current banking crisis seems to make a quick recovery less likely.
Given Meta's high valuation, slow growth, problems and the metaverse, and headwinds from the macro-level economy, investors can find better options for their money than the Facebook parent.
10 stocks we like better than Meta Platforms
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 Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rising competition from TikTok, privacy policy changes from Apple (NASDAQ: AAPL), and the raging war in Ukraine are each hurting Meta's prospects in the near term. Parkev Tatevosian: Meta Platforms may be facing a host of meaningful challenges, but that shouldn't deter investors from considering the social media giant turned metaverse hopeful. In 2022, the company lost $13.7 billion on Reality Labs, and it's becoming increasingly clear that this was a bad bet as the metaverse has attracted little attention or consumer demand even after the recent release of the Quest Pro.
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Rising competition from TikTok, privacy policy changes from Apple (NASDAQ: AAPL), and the raging war in Ukraine are each hurting Meta's prospects in the near term. Those include declining revenue, competition from TikTok, a maturing digital ad market, a massive misjudgment in the metaverse, and the threat of an extended recession. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Microsoft.
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Rising competition from TikTok, privacy policy changes from Apple (NASDAQ: AAPL), and the raging war in Ukraine are each hurting Meta's prospects in the near term. Meta Platforms (NASDAQ: META) has taken investors for a wild ride over the past year or two. 10 stocks we like better than Meta Platforms When our award-winning analyst team has a stock tip, it can pay to listen.
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Rising competition from TikTok, privacy policy changes from Apple (NASDAQ: AAPL), and the raging war in Ukraine are each hurting Meta's prospects in the near term. Meta Platforms' profitability cannot be ignored. This revenue growth did not come at the expense of profits like many tech companies.
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16704.0
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2023-03-21 00:00:00 UTC
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7 Signs of Bull Market Behavior
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AAPL
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https://www.nasdaq.com/articles/7-signs-of-bull-market-behavior
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nan
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nan
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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 (SIVB) 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 (QQQ) is achieving this.
Image Source: Zacks Investment Research
However, the iShares Russell 200 ETF (IWM), which tracks small caps and has been dragged down by banks and energy stocks, is having difficulty creating higher lows.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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 (BAC). As of now, the market is being carried by mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA).
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SVB Financial Group (SIVB) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of now, the market is being carried by mega-cap tech stocks such as 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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. This cycle, Silicon Valley Bank (SIVB) 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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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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. As of now, the market is being carried by mega-cap tech stocks such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA). Image Source: Zacks Investment Research However, the iShares Russell 200 ETF (IWM), which tracks small caps and has been dragged down by banks and energy stocks, is having difficulty creating higher lows.
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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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports To read this article on Zacks.com click here. As of now, the market is being carried by mega-cap tech stocks such as 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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As of now, the market is being carried by mega-cap tech stocks such as 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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports 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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16705.0
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2023-03-21 00:00:00 UTC
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Microsoft's Secret to Trillion-Dollar Success: Roll With the Punches
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AAPL
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https://www.nasdaq.com/articles/microsofts-secret-to-trillion-dollar-success%3A-roll-with-the-punches
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Few technology companies have been as consistently successful as Microsoft (NASDAQ: MSFT). The largest tech stock at the height of the dot-com bubble, Redmond is the only top-five finisher that still sports one of the market's five largest market caps in 2023. Don't get me wrong -- the next four runner-ups from 1999 are still respectable businesses with significant and often market-leading operation two decades later. They just can't keep up with Microsoft's game-changing success:
MSFT Market Cap data by YCharts
Microsoft is running neck-and-neck with Apple (NASDAQ: AAPL) at the very top of the mountain. Those are the only two market caps north of $2 trillion right now.
The rest of the former champions on my list never reached a trillion-dollar market cap, let alone the two trillion Microsoft is worth today. The next-largest name nowadays is energy giant ExxonMobil (NYSE: XOM), with a relatively small $416 billion market value. Retail titan Walmart (NYSE: WMT) follows close behind at $380 billion. Both of these names are still in the top 20, ranked Nos. 12 and 15, respectively.
Computer networking veteran Cisco Systems (NASDAQ: CSCO) has fallen far behind, watching the 35th position with a $209 billion market value. And the industrial Godzilla known as General Electric (NYSE: GE) has lost most of its heft, falling all the way to No. 101 with a market cap below $100 billion. Ouch.
The changing face of Microsoft
Much of Microsoft's success can be attributed to its ability to adapt to the changing landscape. In the early days, Microsoft focused on software development and grew into a major player in this space. Windows dominated the operating system space and Microsoft Office was the only suite of office productivity tools that mattered.
But as mobile devices became more popular, the company shifted its focus to business software and services, and then to the cloud. Perpetual licenses are not the standard option anymore, replaced by cloud-based services and monthly subscription fees. Familiar names like Windows and Office are still important, but in very different forms. Moreover, cloud computing is Microsoft's strongest growth driver year after year.
And by being open to dramatic change, Microsoft held on to its position as a leading technology company.
In 1999, Microsoft was a software company with a market cap of $606 billion, but today it's a cloud company with a much larger market cap of $2.02 trillion. The Azure public cloud is the fastest-growing part of Microsoft and is one of the most important cloud platforms on the market. This is the future and Microsoft is pulling every available lever to get deeper into the cloud computing sector.
Microsoft's not-so-secret weapon: Satya Nadella
So, what happened in between? Microsoft had to change and adapt its offerings as mobile devices became more popular. The visionary leader Satya Nadella also took over the CEO role from the combative Steve Ballmer in 2014, which turned out to be a pivotal move.
Under Ballmer, Microsoft was ready to start a fight over every possible setback. Nadella's more flexible leadership style lets the company roll with the punches instead, adapting to changing circumstances as needed. When mobile devices became popular, the Ballmer version of Microsoft missed the boat with Windows Mobile. Nadella shrugged off that challenge to double down on cloud-based services that also happen to work well on mobile devices. Nowadays, Microsoft's Windows even includes support for Linux code. Nadella's company is embracing its former foes without taking the once-mandatory next steps of attempting to "extend" and "extinguish" them.
And here we are in early 2023, as the AI market looks ready to explode. Once again, Microsoft is taking a proactive approach and teaming up with the privately held OpenAI lab's innovative ChatGPT platform. A next-generation version of GPT is included in the next major release of the cloud-based Microsoft 365 office suite.
Image source: Getty Images.
The Nadella effect in full force
I'm not even surprised anymore at Redmond's willingness to try radically new ideas that were invented somewhere else. None of this would have been possible if Steve Ballmer still ruled Microsoft's C-suite.
By being willing to change, and play a leading role in an evolving market with room for many winners, Microsoft has come out on top. If you're looking for an investment that has the potential to generate long-term growth, then Microsoft is definitely worth considering. It's big today, but will almost certainly be even bigger in the future.
10 stocks we like better than Microsoft
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*Stock Advisor returns as of March 8, 2023
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cisco Systems, Microsoft, and Walmart. 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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They just can't keep up with Microsoft's game-changing success: MSFT Market Cap data by YCharts Microsoft is running neck-and-neck with Apple (NASDAQ: AAPL) at the very top of the mountain. The rest of the former champions on my list never reached a trillion-dollar market cap, let alone the two trillion Microsoft is worth today. Nadella's more flexible leadership style lets the company roll with the punches instead, adapting to changing circumstances as needed.
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They just can't keep up with Microsoft's game-changing success: MSFT Market Cap data by YCharts Microsoft is running neck-and-neck with Apple (NASDAQ: AAPL) at the very top of the mountain. The Motley Fool has positions in and recommends Apple, Cisco Systems, Microsoft, and Walmart. 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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They just can't keep up with Microsoft's game-changing success: MSFT Market Cap data by YCharts Microsoft is running neck-and-neck with Apple (NASDAQ: AAPL) at the very top of the mountain. The changing face of Microsoft Much of Microsoft's success can be attributed to its ability to adapt to the changing landscape. In 1999, Microsoft was a software company with a market cap of $606 billion, but today it's a cloud company with a much larger market cap of $2.02 trillion.
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They just can't keep up with Microsoft's game-changing success: MSFT Market Cap data by YCharts Microsoft is running neck-and-neck with Apple (NASDAQ: AAPL) at the very top of the mountain. 101 with a market cap below $100 billion. And by being open to dramatic change, Microsoft held on to its position as a leading technology company.
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16706.0
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2023-03-21 00:00:00 UTC
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549 Billion Reasons to Buy Apple Stock
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AAPL
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https://www.nasdaq.com/articles/549-billion-reasons-to-buy-apple-stock
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Apple (NASDAQ: AAPL) has grown to become one of the most relevant and influential companies in the modern economy. But it's also one of the most important U.S. stocks. Apple makes up 7.6% of the S&P 500 and 13.2% of the Nasdaq Composite. It alone can move the market.
The tech giant's size and wide range of products and services give it an advantage over smaller companies that aren't as diversified. And that's especially true in tough economic times. Apple also has plenty of cash to outlast a downturn in the business cycle, and can use that cash to take market share. Although it's harder for massive companies to grow as quickly as smaller ones, Apple has an impeccable track record for growing its top and bottom lines, as well as its free cash flow (FCF).
Apple stock is up 248% in the last five years and a mind-numbing 879% over the last decade. But it hasn't grown its profits nearly as fast. When a company's stock price outpaces its earnings growth rate, that usually means the stock is going to be more expensive.
Yet, Apple stock isn't all that expensive for a blue-chip company with one of the most powerful brands in the world. The secret is that Apple has spent the last 10 years deploying its FCF arsenal toward buying back its own stock. Here's why that's great for investors, and why Apple stock is worth buying now.
Image source: Getty Images.
Apple's Dual Recipe for Growth
Earnings per share (EPS) is one of the most important financial metrics. Take a company's trailing 12-month earnings and divide it by the outstanding share count, and you get EPS. If you have one share in a stock, you can look at EPS to see how much profit your one share generated. For example, if there are 100 shares outstanding and a company made $100 in profit, then EPS is $1. And if the price of the stock is $10, then that stock would have a price to earnings (P/E) ratio of 10. The P/E ratio is widely used to determine how expensive or cheap a stock is.
There are two ways for a company to grow its EPS over time. The first and most common is to make more money. The second is to reduce the outstanding share count by buying back stock.
Apple has done both. It has grown its earnings (the numerator of the equation) and reduced its outstanding share count (the denominator) at a rapid pace. In fact, Apple has spent a staggering $548.8 billion buying back its own stock in the last decade alone -- often at prices far lower than the current price of the stock. And it's been able to do so because it generates gobs of FCF.
Here's a breakdown of Apple's FCF and stock buybacks by fiscal year (FY) over the past decade.
FISCAL YEAR
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Free Cash Flow (in billions
$44.6
$49.9
$69.8
$53.5
$51.8
$64.1
$58.9
$73.4
$93
$111.4
Stock Buybacks (in billions)
$22.3
$44.3
$34.7
$29.2
$32.3
$72.1
$66.1
$72.4
$86
$89.4
Data source: Apple.
Apple stock is a good value
There are multiple benefits to Apple buying back its own stock. The shares are much higher today than the average price they traded at over the last 10 years. So buying back stock was an excellent use of capital for Apple. Secondly, Apple has reduced its outstanding share count by 40% over the last 10 years. As a result, Apple's diluted EPS has grown at more than double the rate of its net income.
AAPL EPS Diluted (TTM) data by YCharts
What that means for Apple shareholders is that the pie itself -- the market capitalization of Apple -- has gotten bigger because it's making so much more money and the stock price has gone up. But there are also fewer slices of that pie because there are fewer shares, making each slice much more valuable.
Apple's earnings growth and timely buybacks have kept its valuation from getting lofty. And while it's true that Apple's P/E ratio of 26.3 is far higher than its 10-year median P/E of 17.3, it's still not too high of a P/E ratio compared to the S&P 500 average P/E ratio of 20.9. Since Apple is a higher quality business than the vast majority of S&P 500 components, it makes sense why it should trade a premium to the market.
"Price is what you pay, value is what you get"
Since Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest public equity holding is Apple stock, it makes sense to quote Warren Buffett's famous line: "Price is what you pay, value is what you get." What he means is that the price of a stock doesn't tell you if it's a good deal or not.
A quick look at the three-, five-, or 10-year chart of Apple stock might lead one to think the stock has gone up too much and isn't a good deal anymore. But Apple has done a masterful job at expanding its services by branching into new markets across media and financial services.
By widening its moat, it has made its business more sticky, leading to growth and customer retention. That dynamic sets the stage for FCF growth, buying back more stock, rinse, and repeat. Generating consistently high FCF and using that FCF to back its own stock allows Apple to ride a virtuous cycle that compounds its efforts.
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
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool 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 grown to become one of the most relevant and influential companies in the modern economy. AAPL EPS Diluted (TTM) data by YCharts What that means for Apple shareholders is that the pie itself -- the market capitalization of Apple -- has gotten bigger because it's making so much more money and the stock price has gone up. The tech giant's size and wide range of products and services give it an advantage over smaller companies that aren't as diversified.
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Apple (NASDAQ: AAPL) has grown to become one of the most relevant and influential companies in the modern economy. AAPL EPS Diluted (TTM) data by YCharts What that means for Apple shareholders is that the pie itself -- the market capitalization of Apple -- has gotten bigger because it's making so much more money and the stock price has gone up. When a company's stock price outpaces its earnings growth rate, that usually means the stock is going to be more expensive.
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AAPL EPS Diluted (TTM) data by YCharts What that means for Apple shareholders is that the pie itself -- the market capitalization of Apple -- has gotten bigger because it's making so much more money and the stock price has gone up. Apple (NASDAQ: AAPL) has grown to become one of the most relevant and influential companies in the modern economy. In fact, Apple has spent a staggering $548.8 billion buying back its own stock in the last decade alone -- often at prices far lower than the current price of the stock.
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AAPL EPS Diluted (TTM) data by YCharts What that means for Apple shareholders is that the pie itself -- the market capitalization of Apple -- has gotten bigger because it's making so much more money and the stock price has gone up. Apple (NASDAQ: AAPL) has grown to become one of the most relevant and influential companies in the modern economy. Apple makes up 7.6% of the S&P 500 and 13.2% of the Nasdaq Composite.
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16707.0
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2023-03-21 00:00:00 UTC
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Alphabet (GOOGL) Bolsters Google Maps With Immersive View
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-bolsters-google-maps-with-immersive-view
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Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps.
Reportedly, the ‘Immersive View’ feature of Google Maps, introduced in 2022, is now rolling out widely.
The underlined feature combines picturesque views of a city, its landmarks, suggestions of places and views of the insides of some buildings, all together giving a new angle to explore the city.
It also provides night views of certain locations or landmarks. Users will also be able to check the view of these certain landmarks in various weather, as well as busy traffic conditions.
Some users, who have already got the update of Immersive View, are able to view cities like London and Berlin using the above-mentioned perspectives.
We note that Google strives to deliver an enhanced mapping experience with the Immersive View feature. This, in turn, is expected to boost the adoption rate of Google Maps in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google Maps Initiatives
Apart from the latest move, Google is reportedly testing a web sidebar to provide quick access to recently viewed places. This, in turn, will prevent users from re-searching for their previously viewed locations, which will be accessible via the sidebar.
The addition of a widget to Google Maps that updates information on nearby traffic at the user’s current location remains a positive.
Google is making efforts to show estimated toll prices for planned routes on Google Maps to users of Android and iOS.
All these endeavors will continue to help Google build momentum among its users. This, in turn, is likely to get reflected in the performance of the Google Services segment, which will benefit Alphabet’s overall financial performance.
Google Services generated $67.84 billion revenues in fourth-quarter 2022, accounting for 89.2% of the total revenues.
Strengthening financial performance will aid GOOGL in winning investors’ confidence in the near term. Shares of GOOGL have moved down 25.6% over the past year compared with the Computer and Technology sector’s decline of 15.3%.
Rising Competition
With growing Maps initiatives, Alphabet ups the competition for Apple AAPL, which is a notable player in the digital map space.
Apple, which has lost 6.7% in the past year, is witnessing solid momentum among customers on the back of its location-showing services.
Apple’s web mapping service, Apple Maps, provides directions and an estimated arrival time for driving, walking, cycling and public transportation navigation.
Recently, Apple made an announcement regarding a major update to Apple Maps. The update will add new photos, buttons and promotions to the app’s business pages.
Further, the company is gaining from the global expansion of Apple Maps. Recently, it rolled out the application in five countries — Netherlands, Belgium, Liechtenstein, Luxembourg and Switzerland.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET and Analog Devices ADI. Arista Networks sports a Zacks Rank #1 (Strong Buy) and Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 23.7% in the past year. The long-term earnings growth rate for ANET is projected at 14.17%.
Analog Devices shares have gained 13.1% in the past year. The long-term earnings growth rate for ADI is projected at 12.25%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : 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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Rising Competition With growing Maps initiatives, Alphabet ups the competition for Apple AAPL, which is a notable player in the digital map space. Click to get this free report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. The addition of a widget to Google Maps that updates information on nearby traffic at the user’s current location remains a positive.
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Click to get this free report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Rising Competition With growing Maps initiatives, Alphabet ups the competition for Apple AAPL, which is a notable player in the digital map space. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growing Google Maps Initiatives Apart from the latest move, Google is reportedly testing a web sidebar to provide quick access to recently viewed places.
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Click to get this free report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Rising Competition With growing Maps initiatives, Alphabet ups the competition for Apple AAPL, which is a notable player in the digital map space. Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps.
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Rising Competition With growing Maps initiatives, Alphabet ups the competition for Apple AAPL, which is a notable player in the digital map space. Click to get this free report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Reportedly, the ‘Immersive View’ feature of Google Maps, introduced in 2022, is now rolling out widely.
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16708.0
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2023-03-21 00:00:00 UTC
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Microsoft's Pursuit of Market Dominance: Who's Next After Alphabet?
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AAPL
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https://www.nasdaq.com/articles/microsofts-pursuit-of-market-dominance%3A-whos-next-after-alphabet
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nan
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nan
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Is Microsoft (NASDAQ: MSFT) trying to battle all the tech giants this year? Recent reports might add Apple (NASDAQ: AAPL) to the list right next to Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of March 20, 2023. The video was published on March 20, 2023.
10 stocks we like better than Microsoft
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See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jose Najarro has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recent reports might add Apple (NASDAQ: AAPL) to the list right next to Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Recent reports might add Apple (NASDAQ: AAPL) to the list right next to Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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Recent reports might add Apple (NASDAQ: AAPL) to the list right next to Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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Recent reports might add Apple (NASDAQ: AAPL) to the list right next to Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The video was published on March 20, 2023. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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16709.0
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2023-03-21 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-6
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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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16710.0
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2023-03-21 00:00:00 UTC
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3 Top Growth Stocks I Am Doubling Down On in 2023
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AAPL
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https://www.nasdaq.com/articles/3-top-growth-stocks-i-am-doubling-down-on-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The search for top growth stocks to buy in 2023 is on. In my case, this list is relatively short, and it includes three names I’m already invested in.
When valuations drop as they did in 2022, investors need to ask some pertinent questions. Does this decline suggest poor performance is likely to continue? Can a company in question rebound from whatever the market is pricing in? And just how long is the pain likely to last?
Unfortunately, we don’t have many answers to these questions, even with the three stocks listed below. There are a lot of external forces weighing on the market at the moment.
That said, I’ve gone for quality over hype with this list of growth stocks to buy, putting forward three names I think most investors would agree are worthy of consideration in any sort of market downturn.
QSR Restaurant Brands $61.90
META Meta Platforms $202.16
AAPL Apple $159.28
Restaurant Brands (QSR)
Source: Savvapanf Photo/ShutterStock.com
Restaurant Brands (NYSE:QSR) is among the growth stocks I’m most bullish on right now. That’s mainly due to the company’s core business model, which remains highly defensive.
Restaurant Brands is the parent company of a number of popular quick-service (i.e., fast-food) restaurant chains. From Burger King to Tim Hortons, Popeyes Louisiana Kitchen and Firehouse Subs, Restaurant Brands has done a good job of covering a wide spectrum in this space.
The company’s impressive Q4 and full-year 2022 results highlight its status as one of the overlooked growth stocks to buy. Specifically, I’m encouraged by the 9.3% year-over-year increase in fourth-quarter revenue to $1.69 billion, with comparative sales up 8.4% at Burger King and 9.4% at Tim Hortons. Furthermore, the company’s 2022 adjusted earnings per share increased 11.4% to $3.14 from $2.82.
It’s worth mentioning that Restaurant Brands appointed ex-Domino’s Pizza (NYSE:DPZ) CEO Patrick Doyle as its executive chair in November. Under Doyle’s leadership, Domino’s made huge strides. This included 28 consecutive quarters of same-store sales growth and the company’s digital transformation. As for DPZ stock, it surged from $12 a share to more than $270 a share during Doyle’s tenure.
I think QSR stock is worth owning, particularly for those who are concerned that a period of economic uncertainty will continue. We all need to eat, and this company’s lower-cost dining options stand out.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NADSAQ:META) was a hotly debated stock in 2022. The company’s metaverse spending, via its Reality Labs division, has led to a fissure among investors. Many have called for CEO Mark Zuckerberg to cut spending dramatically. He appears to be listening, at least in terms of reducing the company’s otherwise bloated headcount.
While some believe that most of Meta’s issues were self-inflicted, others attribute its struggles to the challenging macroeconomic environment. The company’s recent earnings call brought positive news that likely caused some investors to take a more favorable view of the company again.
After experiencing a significant decline last year, Meta Platforms’ stock has made a remarkable comeback in 2023, with shares up 68% year to date. While the stock is still down around 7% over the past 12 months, it has been a long-term winner, quintupling in price since it went public a little over a decade ago.
Undoubtedly, the economic challenges that emerged in late 2021 have hindered Meta Platforms’ progress, as the company derives almost all its revenue from digital advertising on its platform. This has led to significant rounds of cost-cutting at the company. Zuckerberg labeled 2023 the “Year of Efficiency,” with an aim of making Meta a more agile organization. While it’s unclear just how many jobs will be lost, and what the reduction in metaverse spending will be, this is certainly enticing to investors.
I’m of the view that if Meta can get back to basics, this is a cash flow machine that’s really undervalued at these levels. Currently, the stock trades at around 23 times earnings, which is very cheap from a historical perspective considering Meta’s growth path.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
With a market valuation of $2.5 trillion, Apple (NASDAQ:AAPL) ranks as the most profitable technology corporation in the world. Its products and services are seamlessly integrated within a sticky ecosystem, delivering an unmatched experience to its large user base.
Apple’s operational success has been outstanding, with the company’s growing market share in the smartphone market providing long-term investors with hefty rewards. Of course, macroeconomic challenges and constraints continue to impact Apple’s core business. That said, the company generated roughly $34 billion in cash from operations and distributed more than $25 billion to investors in its most recent quarter. And its services business saw record revenue of $20.8 billion.
The Oracle of Omaha himself is Apple’s largest shareholder. That’s about all investors need to know with regard to why this growth stock is worth owning. If Warren Buffett puts this much credence behind the company, it’s worth taking a look at.
I’m not sure if macro headwinds will subside in the coming quarters. But Apple’s business remains rock-solid, and the stock is one I think long-term investors would do well to consider buying at these levels.
On the date of publication, Chris MacDonald has a position in AAPL, META and QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Top Growth Stocks I Am Doubling Down On in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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QSR Restaurant Brands $61.90 META Meta Platforms $202.16 AAPL Apple $159.28 Restaurant Brands (QSR) Source: Savvapanf Photo/ShutterStock.com Restaurant Brands (NYSE:QSR) is among the growth stocks I’m most bullish on right now. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com With a market valuation of $2.5 trillion, Apple (NASDAQ:AAPL) ranks as the most profitable technology corporation in the world. On the date of publication, Chris MacDonald has a position in AAPL, META and QSR.
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QSR Restaurant Brands $61.90 META Meta Platforms $202.16 AAPL Apple $159.28 Restaurant Brands (QSR) Source: Savvapanf Photo/ShutterStock.com Restaurant Brands (NYSE:QSR) is among the growth stocks I’m most bullish on right now. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com With a market valuation of $2.5 trillion, Apple (NASDAQ:AAPL) ranks as the most profitable technology corporation in the world. On the date of publication, Chris MacDonald has a position in AAPL, META and QSR.
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QSR Restaurant Brands $61.90 META Meta Platforms $202.16 AAPL Apple $159.28 Restaurant Brands (QSR) Source: Savvapanf Photo/ShutterStock.com Restaurant Brands (NYSE:QSR) is among the growth stocks I’m most bullish on right now. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com With a market valuation of $2.5 trillion, Apple (NASDAQ:AAPL) ranks as the most profitable technology corporation in the world. On the date of publication, Chris MacDonald has a position in AAPL, META and QSR.
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QSR Restaurant Brands $61.90 META Meta Platforms $202.16 AAPL Apple $159.28 Restaurant Brands (QSR) Source: Savvapanf Photo/ShutterStock.com Restaurant Brands (NYSE:QSR) is among the growth stocks I’m most bullish on right now. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com With a market valuation of $2.5 trillion, Apple (NASDAQ:AAPL) ranks as the most profitable technology corporation in the world. On the date of publication, Chris MacDonald has a position in AAPL, META and QSR.
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16711.0
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2023-03-21 00:00:00 UTC
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Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-6
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nan
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nan
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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.38 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks 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 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.68%.
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 18.80% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.87% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 25.03% of total assets under management.
Performance and Risk
DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses. The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
The ETF has lost about -2.79% so far this year and is down about -5.06% in the last one year (as of 03/21/2023). In the past 52-week period, it has traded between $55.26 and $66.91.
The ETF has a beta of 0.89 and standard deviation of 18.86% for the trailing three-year period, making it a medium risk choice in the space. With about 302 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DLN 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 $49.19 billion in assets, Vanguard Value ETF has $98.59 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 Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.87% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.87% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.87% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.87% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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16712.0
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2023-03-21 00:00:00 UTC
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Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-6
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nan
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nan
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Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $5.69 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.39% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.62%.
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.
For PRF, it has heaviest allocation in the Financials sector --about 17.40% of the portfolio --while Healthcare and Information Technology round out the top three.
When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL).
PRF's top 10 holdings account for about 16.4% of its total assets under management.
Performance and Risk
So far this year, PRF has lost about -2.11%, and is down about -9.01% in the last one year (as of 03/21/2023). During this past 52-week period, the fund has traded between $138.77 and $174.26.
The ETF has a beta of 1 and standard deviation of 21.18% for the trailing three-year period, making it a medium risk choice in the space. With about 1004 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.19 billion in assets, Vanguard Value ETF has $98.59 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) 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 Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) 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 Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) 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, Exxon Mobil Corp (XOM) accounts for about 2.81% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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16713.0
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2023-03-21 00:00:00 UTC
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India's Karnataka govt approves $968 mln investment from Foxconn unit
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AAPL
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https://www.nasdaq.com/articles/indias-karnataka-govt-approves-%24968-mln-investment-from-foxconn-unit
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nan
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nan
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BENGALURU, March 21 (Reuters) - The southern Indian state of Karnataka has approved an 80 billion rupee ($967.91 million) investment in the state by a unit of Taiwan's Foxconn 2317.TW.
The investment will lead to the creation of 50,000 jobs, the government said in a statement on Monday.
Foxconn, the world's largest contract electronics manufacturer, has been in discussions with Indian states, but has not announced any investment plans so far in Karnataka.
Foxconn did not immediately respond to Reuters' request for confirmation on the investment.
The Apple AAPL.O supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week.
Apple has been shifting production away from China after the country's strict COVID-related restrictions disrupted the manufacturing of new iPhones and other devices in the country. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
($1 = 82.6520 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Sonia Cheema)
((varunvyas.hebbalalu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple AAPL.O supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week. Foxconn, the world's largest contract electronics manufacturer, has been in discussions with Indian states, but has not announced any investment plans so far in Karnataka. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
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The Apple AAPL.O supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week. BENGALURU, March 21 (Reuters) - The southern Indian state of Karnataka has approved an 80 billion rupee ($967.91 million) investment in the state by a unit of Taiwan's Foxconn 2317.TW. Foxconn, the world's largest contract electronics manufacturer, has been in discussions with Indian states, but has not announced any investment plans so far in Karnataka.
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The Apple AAPL.O supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week. BENGALURU, March 21 (Reuters) - The southern Indian state of Karnataka has approved an 80 billion rupee ($967.91 million) investment in the state by a unit of Taiwan's Foxconn 2317.TW. Foxconn, the world's largest contract electronics manufacturer, has been in discussions with Indian states, but has not announced any investment plans so far in Karnataka.
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The Apple AAPL.O supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week. BENGALURU, March 21 (Reuters) - The southern Indian state of Karnataka has approved an 80 billion rupee ($967.91 million) investment in the state by a unit of Taiwan's Foxconn 2317.TW. The investment will lead to the creation of 50,000 jobs, the government said in a statement on Monday.
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16714.0
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2023-03-21 00:00:00 UTC
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Battle of Dividend Stocks: Microsoft vs. Apple
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AAPL
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https://www.nasdaq.com/articles/battle-of-dividend-stocks%3A-microsoft-vs.-apple
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Recently, investors have likely appreciated their dividend stocks more than usual. With the S&P 500 down more than 11% over the past year, many investors' portfolios have taken a hit. While it's never enjoyable to watch the prices of your stocks decline, there's one thing that probably didn't take a hit in investors' portfolios during this period: their income from high-quality dividend stocks. Not only do most top dividend-paying companies continue paying dividends through tough times, but many of them reward shareholders with increases to their payouts every year -- rain or shine.
Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). For investors who are looking to add income to their portfolios, both of these stocks are great ideas for consideration. But which tech giant looks like a better investment today? Let's take a look at both to find out.
Dividend yield
Software company Microsoft, announced its most recent dividend increase last September. Microsoft's board of directors approved a quarterly dividend of $0.68, 10% higher than its previous payout. On an annual basis, this quarterly dividend amounts to $2.72, giving Microsoft a dividend yield of about 1% based on the stock's price at the time of this writing.
Notably, Microsoft's dividend yield easily beats out Apple's. The iPhone maker has a dividend yield of about 0.6%. But it's worth noting that Apple is due for a dividend increase soon. The company typically announces a dividend increase in April. It's last increase of 0.5% was announced on April 28, 20022. Another increase would improve Apple's dividend yield. Still, it's unlikely that the increase will be even close to enough to bring Apple's dividend yield close to Microsoft's.
When it comes to dividend yield, Microsoft is the clear winner.
Dividend growth potential
With Microsoft's recent dividend increase being greater than Apple's, it might be tempting to quickly conclude that Microsoft's dividend growth potential is better than Apple's. But Apple actually has the upper hand when it comes to dividend growth potential. This is because Apple is only paying out about 16% of its earnings in dividends, leaving massive room for dividend growth in the coming years. Microsoft's payout ratio of 28% is still exceptional, but it's notably well above Apple's.
Valuation
One final key factor to compare the two companies is valuation. As perhaps the most important factor to consider when comparing these two stocks, this final element should carry more weight in helping investors decide which stock to invest in.
Apple wins on this front, sealing its lead over Microsoft in a battle between the two dividend stocks. It has a price-to-earnings ratio of just under 27. This compares to Microsoft's price-to-earnings ratio of about 30.
While valuation is a critical element for investors to consider, investors should note that Apple's win over Microsoft on this front is only slight.
Overall, Apple looks like a better dividend stock than Microsoft. But investors who want a more meaningful income stream than that provided by Apple's paltry dividend yield may still want to go with Microsoft over Apple. At the end of the day, however, both stocks look like attractive investments for investors looking to add a growing stream of dividend income to their portfolios.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Not only do most top dividend-paying companies continue paying dividends through tough times, but many of them reward shareholders with increases to their payouts every year -- rain or shine. At the end of the day, however, both stocks look like attractive investments for investors looking to add a growing stream of dividend income to their portfolios.
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Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend yield Software company Microsoft, announced its most recent dividend increase last September. Still, it's unlikely that the increase will be even close to enough to bring Apple's dividend yield close to Microsoft's.
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Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend growth potential With Microsoft's recent dividend increase being greater than Apple's, it might be tempting to quickly conclude that Microsoft's dividend growth potential is better than Apple's. Overall, Apple looks like a better dividend stock than Microsoft.
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Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend yield Software company Microsoft, announced its most recent dividend increase last September. Another increase would improve Apple's dividend yield.
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16715.0
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2023-03-21 00:00:00 UTC
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Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-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 Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $10.74 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.61%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 51.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.72% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 55.64% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has added about 13.47% so far this year and is down about -14.29% in the last one year (as of 03/21/2023). In the past 52-week period, it has traded between $168.21 and $241.52.
The ETF has a beta of 1.11 and standard deviation of 26.65% for the trailing three-year period, making it a medium risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap 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, MGK 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 $77.47 billion in assets, Invesco QQQ has $163.83 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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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard Mega Cap Growth ETF (MGK): 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 15.72% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 15.72% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). You should consider the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 15.72% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap 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 15.72% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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. Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
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16716.0
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2023-03-20 00:00:00 UTC
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Kremlin tells officials to stop using iPhones - Kommersant newspaper
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AAPL
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https://www.nasdaq.com/articles/kremlin-tells-officials-to-stop-using-iphones-kommersant-newspaper-0
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Adds Kremlin quote, recasts lead
MOSCOW, March 20 (Reuters) - The Kremlin told officials involved in preparations for Russia's 2024 presidential election to stop using Apple AAPL.O iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported.
At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources.
"It's all over for the iPhone: either throw it away or give it to the children," Kommersant quoted one of the participants of the meeting as saying. "Everyone will have to do it in March."
When asked about the issue on Monday, Kremlin spokesman Dmitry Peskov said he could not confirm the report.
"Smartphones should not be used for official business," Peskov told reporters. "Any smartphone has a fairly transparent mechanism, no matter what operating system it has – Android or iOS. Naturally, they are not used for official purposes."
Apple did not immediately respond to a request for comment.
The Kremlin may provide other devices with different operating systems to replace the iPhones, Kommersant said, adding that the order to cease using iPhones had been directed at those involved in domestic politics - for which Kiriyenko is responsible.
President Vladimir Putin has always said he has no smartphone, though Peskov has said Putin does use the Internet from time to time.
Shortly after Russia sent its troops into Ukraine last year, U.S. and British spies claimed a scoop by uncovering - and going public with - intelligence that Putin was planning to invade. It is unclear how the spies obtained such intelligence.
(Reporting by Guy Faulconbridge; Editing by Mark Trevelyan and Gareth Jones)
((guy.faulconbridge@thomsonreuters.com; 07825218698;))
The views and 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 Kremlin quote, recasts lead MOSCOW, March 20 (Reuters) - The Kremlin told officials involved in preparations for Russia's 2024 presidential election to stop using Apple AAPL.O iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported. When asked about the issue on Monday, Kremlin spokesman Dmitry Peskov said he could not confirm the report. Shortly after Russia sent its troops into Ukraine last year, U.S. and British spies claimed a scoop by uncovering - and going public with - intelligence that Putin was planning to invade.
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Adds Kremlin quote, recasts lead MOSCOW, March 20 (Reuters) - The Kremlin told officials involved in preparations for Russia's 2024 presidential election to stop using Apple AAPL.O iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported. At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources. "Smartphones should not be used for official business," Peskov told reporters.
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Adds Kremlin quote, recasts lead MOSCOW, March 20 (Reuters) - The Kremlin told officials involved in preparations for Russia's 2024 presidential election to stop using Apple AAPL.O iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported. At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources. The Kremlin may provide other devices with different operating systems to replace the iPhones, Kommersant said, adding that the order to cease using iPhones had been directed at those involved in domestic politics - for which Kiriyenko is responsible.
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Adds Kremlin quote, recasts lead MOSCOW, March 20 (Reuters) - The Kremlin told officials involved in preparations for Russia's 2024 presidential election to stop using Apple AAPL.O iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported. "Smartphones should not be used for official business," Peskov told reporters. The Kremlin may provide other devices with different operating systems to replace the iPhones, Kommersant said, adding that the order to cease using iPhones had been directed at those involved in domestic politics - for which Kiriyenko is responsible.
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2023-03-20 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-10
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Apple (AAPL) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 1.61% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 lost 3.9%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. On that day, Apple is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $93.39 billion, down 4% from the year-ago period.
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 might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Apple currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 25.65 right now. For comparison, its industry has an average Forward P/E of 8.56, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.59 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
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) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. Also, we should mention that AAPL has a PEG ratio of 2.05. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, we should mention that AAPL has a PEG ratio of 2.05.
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Apple (AAPL) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. Also, we should mention that AAPL has a PEG ratio of 2.05. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. Also, we should mention that AAPL has a PEG ratio of 2.05. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16718.0
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2023-03-20 00:00:00 UTC
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EU competition chief flags fresh probes into multinationals' tax deals
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https://www.nasdaq.com/articles/eu-competition-chief-flags-fresh-probes-into-multinationals-tax-deals
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By Foo Yun Chee
BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday.
European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks.
Despite her crackdown, Vestager said aggressive tax planning "is still with us".
"My services have conducted an in-depth inquiry into tax ruling practices in all member states for the period 2014-2018, and I expect this will lead to new investigations in certain countries," she told a conference in Copenhagen.
She did not name the countries or the companies.
Vestager has had a mixed record defending her decisions in court, with Europe's top court set to rule on her appeals in the coming months after a lower tribunal threw out her tax orders to Apple, Amazon and Starbucks.
She did, however, get the court's backing for her order to Engie to pay back taxes of 120 million euros to Luxembourg.
And Belgium, Ireland, Luxembourg and the Netherlands have all changed their tax practices in response to her tax crusade.
(Reporting by Foo Yun Chee; Editing by Kevin Liffey)
((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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European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. "My services have conducted an in-depth inquiry into tax ruling practices in all member states for the period 2014-2018, and I expect this will lead to new investigations in certain countries," she told a conference in Copenhagen.
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European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. She did, however, get the court's backing for her order to Engie to pay back taxes of 120 million euros to Luxembourg.
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European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. Vestager has had a mixed record defending her decisions in court, with Europe's top court set to rule on her appeals in the coming months after a lower tribunal threw out her tax orders to Apple, Amazon and Starbucks.
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European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. Despite her crackdown, Vestager said aggressive tax planning "is still with us".
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16719.0
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2023-03-20 00:00:00 UTC
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RPC and Thor Industries have been highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/rpc-and-thor-industries-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – March 20, 2023 – Zacks Equity Research shares RPC Inc. RES as the Bull of the Day and Thor Industries, Inc. THO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Apple AAPL and Meta Platforms META.
Here is a synopsis of all five stocks:
Bull of the Day:
Investors have fled RPC Inc. in 2023 as crude prices have fallen. But that has created a buying opportunity in this Zacks Rank #1 (Strong Buy). RPC is expected to grow earnings by 67% in 2023.
RPC provides specialized oilfield services and equipment to the oil and natural gas exploration and production companies throughout the United States, including the Gulf of Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets.
RPC is a small cap company, with a market cap of $1.6 billion.
Another Beat in Q4 2022
On Jan 25, 2023, RPC reported its fourth quarter and full year 2022 results. It beat the Zacks Consensus Estimate for the third straight quarter, reporting $0.41 versus the consensus of $0.30.
The oilfield services environment remained robust through the end of the year. Revenue jumped 79.7% to $213.8 million in the fourth quarter of 2023 compared to the prior year due to improved pricing, higher customer activity levels and a larger active fleet of revenue-producing equipment.
As a percentage of revenues, cost of revenues decreased year-over-year to 64% from 74.8% in Q4 2021 due to improved pricing for RPC's services and leverage of direct employment costs.
"As we begin the first quarter of 2023, we expect continued robust drilling and completion activities based on indications from most customers," said Ben M. Palmer, CEO.
Earnings Estimates on the Rise for 2023 and 2024
As RPC is a small cap company, Zacks only has one earnings estimate on the company for 2023 and 2024. But it was raised for both years in the last 60 days.
The Zacks Consensus for 2023 is calling for $1.71 per share up from $1.02 the company made in 2022. That's earnings growth of 67.7%.
2024 is also looking bullish with the Zacks Consensus of $1.84, or another 7.6% in earnings growth.
Doubled the Dividend to Start 2023
RPC's cash balance grew by $90.5 million during the fourth quarter to $126.4 million despite increasing activity and capital expenditures of $49.3 million during the quarter.
On Jan 23, 2023, the board of directors doubled the quarterly dividend to $0.04 per share from $0.02. It is currently yielding 2%.
Shares Sell-Off: Is This a Buying Opportunity?
WTI crude fell below $70 for the first time in 2023 in March 2023. The Street sold off all the energy stocks, even those in the services side, like RPC.
Shares of RPC have fallen 17.8% in just the last month. But they are also now dirt-cheap on a forward P/E basis.
RPC trades at just 4.6x.
If you're looking for an oilfield services stock that's on sale, RPC should be on your short list.
Bear of the Day:
Thor Industries, Inc. is coming down off its COVID pandemic record highs as the market for RVs and towables softens. This Zacks Rank #5 (Strong Sell) is expected to see sales fall 31% in Fiscal 2023.
Thor Industries manufactures RVs and towables in North America and Europe under many different brands including, but not limited to, Jayco, Starcraft and Airstream.
A Big Miss in the Fiscal Second Quarter
On Mar 7, Thor reported its fiscal second quarter 2023 results and missed on the Zacks Consensus Estimate by $0.60. Earnings was $0.50 versus the Zacks Consensus of $1.10.
Thor had put together quite an earnings surprise streak during the pandemic. It had beat 11 quarters in a row. This was its first earnings miss since Mar 2020, when the pandemic hit.
Net sales fell 39.4% to $2.35 billion from $3.88 billion in fiscal 2022, but the prior year's quarter was a record. However, it was still a decrease of 14% over the second quarter of the prior year, which was 2021.
Consolidated gross profit also plunged by 530 basis points to 12.1% from 17.4% in the second quarter of 2022.
"During the quarter, we continued to proactively and decisively balance wholesale production with the pace of softening retail sales through the traditionally slower winter retail season," said Bob Martin, CEO.
"This commitment to a disciplined production approach, combined with a softer-than-expected order intake, resulted in second quarter North American wholesale shipments of 25,372 units," he added.
But Thor expects this softness in demand to be temporary. Attendance at the spring retail show season across the country had been encouraging with high attendance and solid retail activity.
Thor Cuts Full Year Guidance
However, the slowdown won't rebound in fiscal 2023. Thor expects that the macroeconomic pressures will persist through the balance of the fiscal year. The newly revised guidance assumes the higher interest rates, elevated prices and a full North American dealer inventory will result in slower product pull through for the balance of the fiscal year.
Remember, many RV buyers purchase using financing. Loan rates have risen as the Fed has raised rates.
Full year net sales are now expected in the range of $10.5 billion to $11.5 billion, down from the previous guidance of $11.5 billion to $12.5 billion.
Earnings per share are expected in the range of $5.50 to $6.50, down from the prior guidance of $7.40 to $8.70.
It shouldn't be surprising that the analysts responded by cutting their own full year estimates. The F2023 Zacks Consensus Estimate fell to $5.94 from $7.89 in the last month as 4 estimates were cut. That's an earnings decline of 71.2%, as Thor made $20.59 during last year's record year.
Remember when we were all desperate to travel but didn't want to stay in a hotel? The pandemic RV buying surge has come to a halt.
Shares Down Big Over the Last Two Years
Shares of Thor Industries actually peaked in 2021 even though the company went on to have record earnings last fiscal year. Apparently, Wall Street thought the earnings were peaking in Fiscal 2022 and sold the stock ahead of the news.
Shares are down 45.2% in the last two years. But they fell again in the last month, by 17.8%, after the guidance was cut.
Thor remains a cheap stock, with a forward P/E of 13.2. But the falling earnings make it a value trap.
It still has solid free cash flow and is still paying a dividend, currently yielding 2.3%.
For investors interested in picking up shares of Thor on the cheap, they may want to wait a bit longer until the macroeconomic conditions bottom, including the Fed pausing on its rate hikes.
The Baby Boomers, and the Millennials, are likely to continue to drive demand for RVs and towables well into the future, but for now, many are on the sidelines. As an investor, you might want to be too.
Additional content:
3 Big Tech Stocks Holding Up the Entire Market
The start of 2023 was so promising, but it didn't last. Fears of recession have returned, and a banking crisis is underway. Additionally, the energy market, the sector that dominated 2022 is now getting crushed by lower oil prices.
One area of the market that has performed well YTD, and held up over the last month is Tech. Following a brutal 2022 for the sector, and with financials and energy now out of favor, it seems now may be an opportunity to rotate back into technology stocks.
Microsoft
Over the last month, while the S&P 500 and broad market have been rolling over, Microsoft has significantly outperformed. You can see the last week was very good for MSFT right as the worst of the banking crisis happened.
Microsoft, is of course, the PC and software giant that dominates the industry with more than 80% of computer operating systems market share. Over the last 10 years MSFT has returned more than 5x the benchmark, but over the last year it has underperformed.
This underperformance has allowed MSFT's valuation to cool off and trade back to a more reasonable level. Today it is trading at 28x one-year forward earnings, which is in line with its five-year median, and well off its high of 38x. This isn't what you would call a value stock, but as one of the largest, most robust, and consistent companies in the world, you have to pay a premium.
Microsoft holds a Zack Rank #3 (Hold), indicating a mixed earnings revision trend. Earnings have indeed been revised lower, but analysts still expect sales and earnings growth for the tech giant. If tough times are coming for the markets, sometimes you have to focus on stocks that act as havens. Earnings revisions may not be higher, but relatively speaking MSFT is going to be a safer bet than many others.
Microsoft is also leading the way with its investment in the leading artificial intelligence technology. MSFT is a major investor in OpenAI, who is revolutionizing the newest innovations in AI through its ChatGPT software. The two have already partnered on a few projects such as the Microsoft Teams application.
Microsoft also offers a tidy 1% dividend yield. The dividend has been raised by an average of 10% annually over the last five years.
Apple
Apple is another tech giant that has acted as a haven amid the banking fallout. Although it too currently earns a Zacks Rank #3 (Hold), indicating a mixed earnings revision trend, the stock has performed well. Both Apple and Microsoft make up the largest positions in many of the leading tech and broad market indexes. Thus, their strong performances can really drag the whole market higher.
Like Microsoft, Apple and its products are cemented as absolute necessities in today's economy. Even during the very challenging last year AAPL stock has barely budged. It has traded sideways though, which has allowed its valuation to cool off over the last year.
Today, Apple is trading at a one-year forward earnings multiple of 25x, which is just below its three-year median of 26x. Apple also offers a small dividend yield of 0.6% and has increased it by an average of 7% annually over the last five years.
Apple also carries out massive share buyback programs with no signs of slowing. Over the last decade apple has bought back $550 billion of its own shares, which is more than any US corporation. And in 2022 alone AAPL bought $90 billion worth. This has reduced shares by nearly 40% over the last ten years and has been a boon to share price.
Meta Platforms
Meta Platforms has quickly turned into one of the best performing stocks in the market YTD. This performance follows one of the worst performances last year, with the stock was down nearly -80% in 2022. Meta has also made significant cuts to its workforce over the last year to dramatically rein in costs and boost profitability.
Meta boasts a Zacks Rank #2 (Buy), indicating upward trending earnings revisions. Last quarter META beat earnings expectations by 42%, and next quarter is projected to beat by 7%.
Over the last 90 days META has seen its earnings estimates revised significantly higher, with next quarter's earnings being upgraded by 33%.
After trading as low as 10x one-year forward earnings last year, META is now trading at 20x one-year forward earnings. This is still below its five-year median of 23x.
Conclusion
Big tech is coming off one of its worst years in recent history, and Meta, Apple, and Microsoft have only cemented themselves deeper into society. The strength of their business models makes these stocks akin to bonds, with earnings and sales growth nearly guaranteed.
Sometimes, when markets are getting volatile the best thing to do is look for stocks that will do less bad than other stocks.
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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.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Thor Industries, Inc. (THO) : Free Stock Analysis Report
RPC, Inc. (RES) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Apple AAPL and Meta Platforms META. Even during the very challenging last year AAPL stock has barely budged. And in 2022 alone AAPL bought $90 billion worth.
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In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Apple AAPL and Meta Platforms META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Thor Industries, Inc. (THO) : Free Stock Analysis Report RPC, Inc. (RES) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Even during the very challenging last year AAPL stock has barely budged.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Thor Industries, Inc. (THO) : Free Stock Analysis Report RPC, Inc. (RES) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Apple AAPL and Meta Platforms META. Even during the very challenging last year AAPL stock has barely budged.
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In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Apple AAPL and Meta Platforms META. Even during the very challenging last year AAPL stock has barely budged. And in 2022 alone AAPL bought $90 billion worth.
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16720.0
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2023-03-20 00:00:00 UTC
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Kremlin tells officials to stop using iPhones - Kommersant newspaper
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https://www.nasdaq.com/articles/kremlin-tells-officials-to-stop-using-iphones-kommersant-newspaper
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MOSCOW, March 20 (Reuters) - Russia's presidential administration has told officials to stop using Apple AAPL.O iPhones because of concerns the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported on Monday.
At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources.
"It's all over for the iPhone: either throw it away or give it to the children," Kommersant quoted one of the participants of the meeting as saying. "Everyone will have to do it in March."
The Kremlin may provide other devices with different operating systems to replace the iPhones, Kommersant said.
Kremlin spokesman Dmitry Peskov said he could not confirm the report, but that smartphones could not be used for official purposes anyway.
Apple did not immediately respond to a request for comment.
President Vladimir Putin has always said he has no smartphone, though Peskov has said Putin does use the Internet from time to time.
Shortly after Russia sent its troops into Ukraine last year, U.S. and British spies claimed a scoop by uncovering - and going public with - intelligence that Putin was planning to invade. It is unclear how the spies obtained such intelligence.
(Reporting by Guy Faulconbridge; Editing by Mark Trevelyan)
((guy.faulconbridge@thomsonreuters.com; 07825218698;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MOSCOW, March 20 (Reuters) - Russia's presidential administration has told officials to stop using Apple AAPL.O iPhones because of concerns the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported on Monday. Kremlin spokesman Dmitry Peskov said he could not confirm the report, but that smartphones could not be used for official purposes anyway. Shortly after Russia sent its troops into Ukraine last year, U.S. and British spies claimed a scoop by uncovering - and going public with - intelligence that Putin was planning to invade.
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MOSCOW, March 20 (Reuters) - Russia's presidential administration has told officials to stop using Apple AAPL.O iPhones because of concerns the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported on Monday. At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources. The Kremlin may provide other devices with different operating systems to replace the iPhones, Kommersant said.
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MOSCOW, March 20 (Reuters) - Russia's presidential administration has told officials to stop using Apple AAPL.O iPhones because of concerns the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported on Monday. At a Kremlin-organised seminar for officials involved in domestic politics, Sergei Kiriyenko, first deputy head of the presidential administration, told officials to change their phones by April 1, Kommersant said, citing unidentified sources. Shortly after Russia sent its troops into Ukraine last year, U.S. and British spies claimed a scoop by uncovering - and going public with - intelligence that Putin was planning to invade.
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MOSCOW, March 20 (Reuters) - Russia's presidential administration has told officials to stop using Apple AAPL.O iPhones because of concerns the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported on Monday. "It's all over for the iPhone: either throw it away or give it to the children," Kommersant quoted one of the participants of the meeting as saying. Kremlin spokesman Dmitry Peskov said he could not confirm the report, but that smartphones could not be used for official purposes anyway.
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16721.0
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2023-03-20 00:00:00 UTC
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Taiwan Feb export orders miss forecast, China a big drag
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https://www.nasdaq.com/articles/taiwan-feb-export-orders-miss-forecast-china-a-big-drag
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Recasts, adds details
Feb export orders -18.3% y/y vs -15.0% poll forecast
Export orders from China -35.5% y/y vs -45.9% in Jan
Ministry sees March orders between -20.2% and -23.4% y/y
Outlook remains cautious
TAIPEI, March 20 (Reuters) - Taiwan's export orders in February shrank for a sixth straight month, though at a slower pace, dragged down by China and as global demand continued to be squeezed by inflation and interest rate hikes.
The island's export orders, a bellwether for global technology demand, fell 18.3% from a year earlier to $42.12 billion, the Ministry of Economic Affairs said on Monday.
February's number was worse than analysts' expectations for a 15.0% decline, and compared with January's 19.3% slump.
"Export orders in February missed expectations mainly because demand for consumer electronics was far less than expected ... mainly because electronics and telecom products did not meet expectations," the ministry said.
Orders for telecoms products dropped 20.3% and electronic products fell 21.9% from a year earlier, it said.
Global economic growth momentum could be constrained in the coming months as inflation and interest rate pressures persist, as well as no signs of let-up in the Russia-Ukraine war, the ministry said.
However, that would be offset by demand for emerging technologies such as high-performance computing, artificial intelligence, cloud data centres and automotive electronics, it added.
Taiwan's export-driven economy has been hit by slowing demand from China and the United States, its two biggest markets.
Taiwan's February orders from China were 35.5% lower than a year earlier, versus a 45.9% drop in January.
Most economists now expect Taiwan's central bank to keep the benchmark interest rate unchanged at its quarterly rate-setting meeting on Thursday.
The ministry added that it expected export orders this month to fall by 20.2% to 23.4% from a year earlier.
Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies.
Taiwan's orders from the United States in February fell 12.6% from a year earlier, versus a 14.7% drop in January.
Export orders from Europe were down 13.1%, versus January's gain of 18.3%. However, orders from Japan rose 5.5% year-on-year.
(Reporting by Faith Hung and Jeanny Kao; Editing by Ben Blanchard and Jacqueline Wong)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. The island's export orders, a bellwether for global technology demand, fell 18.3% from a year earlier to $42.12 billion, the Ministry of Economic Affairs said on Monday. Global economic growth momentum could be constrained in the coming months as inflation and interest rate pressures persist, as well as no signs of let-up in the Russia-Ukraine war, the ministry said.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. The island's export orders, a bellwether for global technology demand, fell 18.3% from a year earlier to $42.12 billion, the Ministry of Economic Affairs said on Monday. Orders for telecoms products dropped 20.3% and electronic products fell 21.9% from a year earlier, it said.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. Recasts, adds details Feb export orders -18.3% y/y vs -15.0% poll forecast Export orders from China -35.5% y/y vs -45.9% in Jan Ministry sees March orders between -20.2% and -23.4% y/y Outlook remains cautious TAIPEI, March 20 (Reuters) - Taiwan's export orders in February shrank for a sixth straight month, though at a slower pace, dragged down by China and as global demand continued to be squeezed by inflation and interest rate hikes. "Export orders in February missed expectations mainly because demand for consumer electronics was far less than expected ... mainly because electronics and telecom products did not meet expectations," the ministry said.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. Taiwan's February orders from China were 35.5% lower than a year earlier, versus a 45.9% drop in January. The ministry added that it expected export orders this month to fall by 20.2% to 23.4% from a year earlier.
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16722.0
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2023-03-20 00:00:00 UTC
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US STOCKS-Futures seesaw on bank worries, rate-hike pause hopes
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https://www.nasdaq.com/articles/us-stocks-futures-seesaw-on-bank-worries-rate-hike-pause-hopes
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By Shubham Batra and Amruta Khandekar
March 20 (Reuters) - U.S. stock index futures struggled for direction on Monday as investors weighed a state-backed takeover of Credit Suisse aimed at averting a banking crisis and odds of the Federal Reserve keeping interest rates unchanged at its next meeting.
Traders have raised bets of the Fed likely hitting a pause on rate hikes on Wednesday to ensure financial stability as the collapse of Silicon Valley Bank and Signature Bank SBNY.O threatens to snowball into a bigger crisis.
Over the weekend, UBS UBS.Nagreed to buy rival Credit Suisse CS.N for $3.23 billion, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.
U.S.-listed shares of Credit Suisse were down 58.4% in premarket trading and set to open at a fresh record low, while those of UBS were down 3.6%, as focus shifted to the hit to some Credit Suisse bondholders from the acquisition.
Still, U.S. stock futures were off their session lows. A decline in Treasury yields on bets of less aggressive policy moves from the Fed supported gains in some technology and growth stocks such as Apple AAPL.O and Microsoft MSFT.O.
"Traders are looking for short- term opportunities ahead of Wednesday's Fed meeting," said Jason Pride, chief investment officer of private wealth at Glenmede.
"Investors are still worried about the banking industry, even though UBS has agreed to take over Credit Suisse. They are still a little bit worried that there are other banks out there that need shoring up that we're just not familiar with."
Traders' bets are now tilted towards a no-hike scenario, with 39% expecting the Fed to raise rates by 25 basis points. FEDWATCH
Investors also await economic data including existing home sales, weekly jobless claims and durable goods this week to gauge the strength of the U.S. economy.
At 6:44 a.m. ET, Dow e-minis 1YMcv1 were up 10 points, or 0.03%, S&P 500 e-minis EScv1 were up 3.5 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were up 13.25 points, or 0.1%.
Top central banks also moved on Sunday to bolster the flow of cash around the world, with the Fed offering daily currency swaps to ensure banks in Canada, Britain, Japan, Switzerland and the eurozone would have the dollars needed to operate.
Big U.S. banks such as JPMorgan Chase & Co JPM.N, Citigroup C.N and Morgan Stanley MS.N fell between 0.2% and 1.2%.
Regional bank First Republic Bank FRC.N was down 19.1% after paring some declines, while peer Western Alliance Bancorp WAL.N edged 0.7% lower.
Shares of PacWest Bancorp PACW.O, however, rose 6.3%.
The S&P Banking index .SPXBK and the KBW Regional Banking index .KRX on Friday logged their largest two-week drop since March 2020.
Among other stocks, Bed Bath & Beyond BBBY.O dropped 13.2% after the company said late on Friday it was seeking shareholder approval for a reverse stock split.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; additional reporting by Ankika Biswas; Editing by Anil D'Silva 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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A decline in Treasury yields on bets of less aggressive policy moves from the Fed supported gains in some technology and growth stocks such as Apple AAPL.O and Microsoft MSFT.O. By Shubham Batra and Amruta Khandekar March 20 (Reuters) - U.S. stock index futures struggled for direction on Monday as investors weighed a state-backed takeover of Credit Suisse aimed at averting a banking crisis and odds of the Federal Reserve keeping interest rates unchanged at its next meeting. Over the weekend, UBS UBS.Nagreed to buy rival Credit Suisse CS.N for $3.23 billion, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.
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A decline in Treasury yields on bets of less aggressive policy moves from the Fed supported gains in some technology and growth stocks such as Apple AAPL.O and Microsoft MSFT.O. By Shubham Batra and Amruta Khandekar March 20 (Reuters) - U.S. stock index futures struggled for direction on Monday as investors weighed a state-backed takeover of Credit Suisse aimed at averting a banking crisis and odds of the Federal Reserve keeping interest rates unchanged at its next meeting. Traders have raised bets of the Fed likely hitting a pause on rate hikes on Wednesday to ensure financial stability as the collapse of Silicon Valley Bank and Signature Bank SBNY.O threatens to snowball into a bigger crisis.
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A decline in Treasury yields on bets of less aggressive policy moves from the Fed supported gains in some technology and growth stocks such as Apple AAPL.O and Microsoft MSFT.O. By Shubham Batra and Amruta Khandekar March 20 (Reuters) - U.S. stock index futures struggled for direction on Monday as investors weighed a state-backed takeover of Credit Suisse aimed at averting a banking crisis and odds of the Federal Reserve keeping interest rates unchanged at its next meeting. Traders have raised bets of the Fed likely hitting a pause on rate hikes on Wednesday to ensure financial stability as the collapse of Silicon Valley Bank and Signature Bank SBNY.O threatens to snowball into a bigger crisis.
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A decline in Treasury yields on bets of less aggressive policy moves from the Fed supported gains in some technology and growth stocks such as Apple AAPL.O and Microsoft MSFT.O. By Shubham Batra and Amruta Khandekar March 20 (Reuters) - U.S. stock index futures struggled for direction on Monday as investors weighed a state-backed takeover of Credit Suisse aimed at averting a banking crisis and odds of the Federal Reserve keeping interest rates unchanged at its next meeting. "Investors are still worried about the banking industry, even though UBS has agreed to take over Credit Suisse.
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16723.0
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2023-03-19 00:00:00 UTC
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Buffett's Berkshire Hathaway speeds up stock buybacks
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https://www.nasdaq.com/articles/buffetts-berkshire-hathaway-speeds-up-stock-buybacks
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By Jonathan Stempel
March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year.
In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases.
Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares.
The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low.
Berkshire's buybacks follow nearly $60 billion between 2020 and 2022.
They suggest that Buffett and fellow billionaire Vice Chairman Charlie Munger, who handle major capital allocation decisions, still view Berkshire's stock as undervalued, and repurchases as a prudent use of the company's cash.
Berkshire ended 2022 with $128.6 billion of cash and equivalents.
The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. Buffett owns 15.6% of Berkshire's stock.
In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."
The comment appeared to criticize the White House and some Democrats who would prefer that companies use available cash to reinvest in their businesses.
Buybacks are subject to a 1% excise tax, which President Joe Biden has proposed quadrupling.
(Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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 Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. They suggest that Buffett and fellow billionaire Vice Chairman Charlie Munger, who handle major capital allocation decisions, still view Berkshire's stock as undervalued, and repurchases as a prudent use of the company's cash. In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."
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The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases.
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The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares.
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The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases.
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16724.0
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2023-03-19 00:00:00 UTC
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Why Apple, Warner Bros. Discovery, and AMD Are No-Brainer Buys Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-warner-bros.-discovery-and-amd-are-no-brainer-buys-right-now
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After a stock market sell-off in 2022 that hit numerous companies, the start of a new year seems to have Wall Street optimistic. Since Jan. 1, the Nasdaq Composite index has risen 12% as several stocks have begun recovering from last year's declines.
Apple (NASDAQ: AAPL), Warner Bros. Discovery (NASDAQ: WBD), and Advanced Micro Devices (NASDAQ: AMD) have each enjoyed substantial stock rises in 2023. These companies suffered from macroeconomic headwinds last year, but likely have lucrative futures over the long term.
As a result, now is an excellent time to invest in these companies before they fully recover from 2022's challenges. Here's why Apple, Warner Bros. Discovery, and AMD are no-brainer buys right now.
Apple leads numerous industries
Apple shares have climbed 20% since Jan. 1, with investors rallying over the company's moves out of China for manufacturing and its prospects in augmented/virtual reality. However, the growth is also consistent with Apple's history of reliable gains. Over the last five years, the company's stock has risen 250% and increased by 881% over the last decade.
Additionally, the iPhone company has enjoyed annual revenue growth of 48% to $394.33 billion since 2018, with operating income climbing 68% to $119.44 billion over the same period. The financial development has largely been driven by the wide adoption of the company's products and services.
The company has substantial market share in a variety of high-profit industries. In smartphones, Apple has a leading 27.63% market share, ahead of Samsung. Meanwhile, the company was responsible for 17.2% of all personal computer shipments in the U.S. in the fourth quarter of 2022, a figure that has risen from 11.5% in Q1 2013.
Additionally, Apple has a swiftly growing digital services business that has seen it achieve the second-largest market share in music streaming with Apple Music's 13.7%, behind only Spotify.
Apple is home to a potent brand, with the popularity of its offerings likely to keep it flourishing for years, making its stock a no-brainer buy.
Warner Bros. Discovery creates high-quality content
Warner Bros. Discovery had a particularly troubling year in 2022, with its stock sliding roughly 63% over the year. However, its stock has jumped 55% year to date, with investors feeling bullish after the company delivered a smash hit in video games and shifted to a promising media strategy.
Despite the recent rally, Warner Bros. Discovery's stock remains down 43% year over year, signaling an excellent time to invest in this entertainment giant.
Prior to the merger with Discovery in April 2022, WarnerMedia seemed to be in a rut with its franchises. The company is home to strong brands such as DC, Harry Potter, The Lord of the Rings, and Game of Thrones. However, box office performances from DC movies and the Harry Potter-themed film series Fantastic Beasts over the years suggested dwindling consumer interest, likely due to lackluster offerings.
Warner Bros. Discovery seems to be turning it around, though, with the company ready to maximize profits by prioritizing quality and compelling storylines. The company released the Harry Potter-themed video game Hogwarts Legacy on Feb. 10, which has proved a massive hit by earning $850 million and selling over 12 million units in its first two weeks. Meanwhile, its streaming platform HBO Max brought 8.2 million viewers to the final episode of its series The Last Of Us, averaging 30.4 million spectators so far during its first six episodes.
Warner Bros. Discovery is on a roll with its content, with a winning strategy and potent franchises likely to see its stock soar in the coming years.
Advanced Micro Devices' strength in hardware continues
AMD shares plunged 55% in 2022, primarily fueled by PC market declines. However, the company has pivoted to less consumer-reliant segments, such as data centers and embedded products, which has seen its stock skyrocket 50% since the start of the year.
This tech giant has quickly expanded over the years with the success of its PC components, such as graphics processing units (GPUs) and processors. Many consumers have turned to AMD for these devices when building custom PCs for activities such as gaming and video editing.
However, the company is now also a leading name in the semi-custom chips that power popular game consoles like Sony's PlayStation 5, Microsoft's Xbox Series X|S, and virtual reality headsets such as the Meta Quest 2 and HTC's Vive. Lucrative partnerships like these boosted AMD's earnings in fiscal 2022, with revenue rising 44% year over year to $23.6 billion despite macroeconomic headwinds.
In addition to providing custom chips in a number of products, AMD has a booming data center business that reported a revenue rise of 63.6% to $6.04 billion.
AMD is home to hardware that is crucial to the development of countless industries, from gaming to could computing and even artificial intelligence. With its stock down 16% year over year, AMD's stock is a screaming buy right now.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Spotify Technology, 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 (NASDAQ: AAPL), Warner Bros. However, its stock has jumped 55% year to date, with investors feeling bullish after the company delivered a smash hit in video games and shifted to a promising media strategy. However, box office performances from DC movies and the Harry Potter-themed film series Fantastic Beasts over the years suggested dwindling consumer interest, likely due to lackluster offerings.
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Apple (NASDAQ: AAPL), Warner Bros. Discovery (NASDAQ: WBD), and Advanced Micro Devices (NASDAQ: AMD) have each enjoyed substantial stock rises in 2023. Apple leads numerous industries Apple shares have climbed 20% since Jan. 1, with investors rallying over the company's moves out of China for manufacturing and its prospects in augmented/virtual reality.
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Apple (NASDAQ: AAPL), Warner Bros. Discovery had a particularly troubling year in 2022, with its stock sliding roughly 63% over the year. Discovery's stock remains down 43% year over year, signaling an excellent time to invest in this entertainment giant.
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Apple (NASDAQ: AAPL), Warner Bros. Discovery (NASDAQ: WBD), and Advanced Micro Devices (NASDAQ: AMD) have each enjoyed substantial stock rises in 2023. With its stock down 16% year over year, AMD's stock is a screaming buy right now.
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16725.0
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2023-03-19 00:00:00 UTC
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Better Bear Market Stock: AT&T vs. Apple
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https://www.nasdaq.com/articles/better-bear-market-stock%3A-att-vs.-apple
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AT&T (NYSE: T) and Apple (NASDAQ: AAPL) are both considered stable blue-chip tech stocks to hold during economic downturns. AT&T, which abandoned its media ambitions by spinning off DirecTV and WarnerMedia over the past two and a half years, is now a stable and streamlined play on wireless and wireline networks. Apple generates steady growth through its sales of iPhones, iPads, Macs, accessories, and services.
Both of these stocks outperformed the market over the past 12 months. AT&T's stock rose 5% and Apple's stock dipped only 2% while the S&P 500 dropped 9%. But will they keep generating better returns than the S&P 500 if the bear market drags on?
Image source: Getty Images.
Why the "new" AT&T is a safe bear market buy
Before it spun off DirecTV and WarnerMedia, AT&T's business was a confusing mix of telecom, pay TV, and media businesses. Its telecom business stagnated as it tried to challenge Netflix and other media companies in the crowded streaming market, but those loss-leading strategies crushed its margins and caused its debt levels to soar.
That's why investors cheered when it abandoned those costly plans and finally focused on upgrading its fiber and 5G networks. In 2022, this "new" AT&T gained 2.9 million postpaid phone subscribers, compared to a gain of only 201,000 postpaid phone subscribers at its larger rival Verizon. The expansion of its consumer-facing fiber segment has also been offsetting the slower growth of its wireline business, which is more heavily exposed to the macro headwinds.
AT&T expects its free cash flow (FCF) to grow from $14.1 billion in 2022, which easily covered its $9.9 billion in dividends, to over $16 billion in 2023. Analysts expect its revenue to rise 2% this year as its adjusted EPS declines 5%. But excluding the impact of higher pension costs and tax rates this year, its adjusted EPS would grow about 1%.
Based on those expectations, AT&T trades at just eight times forward earnings and pays a forward yield of 6.1%. That low valuation and high yield should make it an attractive alternative to fixed income investments like CDs, T-bills, and bonds.
Why Apple is still an evergreen investment
Apple still generates over half of its revenue from the iPhone, which goes through big upgrade cycles every few years. Its last major upgrade cycle occurred in fiscal 2021 as more consumers bought the iPhone 12 (its first family of 5G devices), but its growth cooled off in fiscal 2022 as it lapped those upgrades and encountered more COVID-19 lockdowns in China.
Analysts expect Apple's revenue and earnings to dip 1% and 3% this year, respectively, as its iPhone 14 sales stay soft and inflationary headwinds curb the market's appetite for new devices. Currency headwinds could exacerbate that pain.
But at the end of the first quarter of fiscal 2023 (which ended on Dec. 31), Apple was still sitting on $165 billion in cash and marketable securities -- which gives it plenty of room to make fresh investments, repurchase more shares, and raise its dividend. It generated $97.5 billion in FCF over the past 12 months, which easily covered its $14.9 billion in dividends during the same period and gives it plenty of room to raise its paltry forward yield of 0.6%.
Apple also reached 935 million paid subscribers across all of its services in the first quarter, which gives it a firm foundation to launch new products. Apple is widely expected to launch a new mixed reality headset this year, but the potential launch of that device hasn't even been baked into Wall Street's expectations yet. Apple's stock isn't cheap at 26 times forward earnings, but I believe it's still an evergreen investment that should continue to grow after the near-term headwinds dissipate.
The better bear market buy: AT&T
AT&T and Apple should both remain stable investments this year, but I believe the former is still a better bear market buy than the latter for three simple reasons. First, AT&T pays a more generous dividend and trades at a lower valuation. Its forward yield is also much higher than the 10-Year Treasury's current yield of 3.5%, so it should remain a decent alternative to high-yield savings accounts and fixed income investments as interest rates continue to rise.
Second, AT&T operates a simpler business model that is less prone to cyclical headwinds. It also doesn't generate more than half of its revenue from a single product.
Lastly, AT&T doesn't do as much business in China as Apple, which relied on the geopolitically sensitive region for a fifth of its revenue last quarter. All of those strengths could make it a lot more appealing than Apple in a bear market -- which generally priortizes near-term stability over long-term growth.
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Leo Sun has positions in AT&T and Apple. The Motley Fool has positions in and recommends Apple and Netflix. The Motley Fool recommends Verizon Communications 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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AT&T (NYSE: T) and Apple (NASDAQ: AAPL) are both considered stable blue-chip tech stocks to hold during economic downturns. AT&T, which abandoned its media ambitions by spinning off DirecTV and WarnerMedia over the past two and a half years, is now a stable and streamlined play on wireless and wireline networks. Its telecom business stagnated as it tried to challenge Netflix and other media companies in the crowded streaming market, but those loss-leading strategies crushed its margins and caused its debt levels to soar.
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AT&T (NYSE: T) and Apple (NASDAQ: AAPL) are both considered stable blue-chip tech stocks to hold during economic downturns. In 2022, this "new" AT&T gained 2.9 million postpaid phone subscribers, compared to a gain of only 201,000 postpaid phone subscribers at its larger rival Verizon. Analysts expect Apple's revenue and earnings to dip 1% and 3% this year, respectively, as its iPhone 14 sales stay soft and inflationary headwinds curb the market's appetite for new devices.
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AT&T (NYSE: T) and Apple (NASDAQ: AAPL) are both considered stable blue-chip tech stocks to hold during economic downturns. Why Apple is still an evergreen investment Apple still generates over half of its revenue from the iPhone, which goes through big upgrade cycles every few years. Analysts expect Apple's revenue and earnings to dip 1% and 3% this year, respectively, as its iPhone 14 sales stay soft and inflationary headwinds curb the market's appetite for new devices.
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AT&T (NYSE: T) and Apple (NASDAQ: AAPL) are both considered stable blue-chip tech stocks to hold during economic downturns. Why the "new" AT&T is a safe bear market buy Before it spun off DirecTV and WarnerMedia, AT&T's business was a confusing mix of telecom, pay TV, and media businesses. Why Apple is still an evergreen investment Apple still generates over half of its revenue from the iPhone, which goes through big upgrade cycles every few years.
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2023-03-19 00:00:00 UTC
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If You Invested $10,000 in Apple When Warren Buffett First Bought the Stock, Here's How Much You'd Have Now
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https://www.nasdaq.com/articles/if-you-invested-%2410000-in-apple-when-warren-buffett-first-bought-the-stock-heres-how-much
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Anyone who follows Warren Buffett knows that Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. And it's not even a close contest. Apple makes up a whopping 43.6% of the portfolio, including shares owned by Berkshire subsidiary New England Asset Management. Bank of America comes in a distant second place at 9.2%.
However, Apple wasn't always such a huge holding for Buffett. Berkshire only initiated a position in the stock around seven years ago. It's been a big winner along the way. Just how big? If you invested $10,000 in Apple when Buffett first bought the stock, here's how much you'd have now.
Image source: Getty Images.
Fruitful returns
We don't know the exact date that Berkshire opened a position in Apple. All we know for sure is that sometime during the first quarter of 2016, the conglomerate bought a little over 9.8 million shares. Since then, Berkshire has bought a lot more of the stock, including adding more shares in the fourth quarter of 2022.
Technically, Buffett owned some shares of Apple even before 2016. New England Asset Management first bought the stock in the second quarter of 2007. The investment firm became part of Berkshire Hathaway in 1998.
However, let's keep things simple and go with the middle of Q1 2016 as our starting point. If you invested $10,000 in Apple at the opening price on Feb. 16, 2016, you would have picked up 105 shares. The tech giant has certainly delivered fruitful returns since then.
AAPL data by YCharts.
On Aug. 28, 2020, Apple conducted a 4-for-1 stock split. (The "S" on the above chart shows when the stock split occurred.) This would have increased your number of shares owned to 420.
Fast forward to today. Apple's share price currently stands at close to $153. Your 420 shares would now be worth roughly $64,260 based on share appreciation.
Don't forget the dividends
The story gets even better, though. We can't overlook Apple's quarterly dividends. The company initiated its dividend program in 2012.
Granted, Apple has never paid what you'd call a juicy dividend. However, over time, those dividends can make a difference. Let's assume that you reinvested all of the dividends received since early 2016 into additional shares of Apple.
Your total return would have jumped from around 534.5% to 589.4%, thanks to those dividends. Instead of having around $64,260, your $10,000 would have grown to close to $68,940. Yes, Apple's relatively puny dividends would have boosted your gain by more than half of your initial investment.
It's not too late
There's no question that Apple has been a big success story for Buffett. But is it too late for other investors to profit from the stock? I don't think so.
Apple's iPhone ecosystem remains exceptionally strong. I suspect that the company could significantly increase iPhone sales over the next few years if it launches a rumored foldable version. Services are also a major moneymaker and could be an even bigger deal if Apple rolls out a hardware subscription program.
Looking a little farther down the road, the introduction of 6G mobile internet could be on the way by 2030. That should spur another huge wave of iPhone upgrades. Apple is also working on a non-invasive glucose monitoring system for Apple Watch. If successful, this could enable the company to dominate another $16 billion market.
I'm not sure if Apple will be able to grow an initial $10,000 investment today into more than $60,000 within the next few years. However, I predict that the stock will make Buffett even wealthier over the next decade and could do so for other investors, too.
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Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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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Anyone who follows Warren Buffett knows that Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. AAPL data by YCharts. Apple makes up a whopping 43.6% of the portfolio, including shares owned by Berkshire subsidiary New England Asset Management.
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Anyone who follows Warren Buffett knows that Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. AAPL data by YCharts. Apple makes up a whopping 43.6% of the portfolio, including shares owned by Berkshire subsidiary New England Asset Management.
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Anyone who follows Warren Buffett knows that Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. AAPL data by YCharts. If you invested $10,000 in Apple when Buffett first bought the stock, here's how much you'd have now.
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Anyone who follows Warren Buffett knows that Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. AAPL data by YCharts. If you invested $10,000 in Apple when Buffett first bought the stock, here's how much you'd have now.
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2023-03-19 00:00:00 UTC
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3 Dividend Stocks That Are Bursting With Free Cash Flow
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https://www.nasdaq.com/articles/3-dividend-stocks-that-are-bursting-with-free-cash-flow
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Companies that consistently generate gobs of free cash flow (FCF) over a long period of time tend to be highly profitable, well-run companies that make more money than they need. Generating a lot of FCF means a company doesn't have to rely as much on debt. And it can use that FCF to pay more dividends, buy back stock, or even reinvest in the business and accelerate its growth.
Here's how Chevron (NYSE: CVX), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) efficiently use their FCF to benefit shareholders.
Image source: Getty Images.
Fuel your passive income with Chevron
Scott Levine (Chevron): With the recent turbulence in the banking industry, many investors are finding their risk tolerance a little lower than what it may have been a few weeks ago. Income investors, in particular, are taking a more prudent approach to dividend stocks. After all, an attractive dividend yield means little if the company providing it will be unable to sustain the distribution. In particular, this renewed focus on the financial health of dividend payers has investors looking for companies that generate strong free cash flow.
One company in that camp is oil supermajor Chevron. For 36 years, Chevron has consistently hiked its dividend, demonstrating a steadfast commitment to rewarding shareholders and earning it a place among the most highly respected dividend-paying stocks.
Over the past two years, Chevron has generated robust free cash flow thanks to high energy prices. With benchmarks West Texas Intermediate and Brent Crude reaching as much as $100 per barrel -- or more -- Chevron posted a company record for free cash flow: $37.6 billion in 2022. Of course, this won't be the case permanently due to the cyclical nature of energy prices. Nonetheless, management stated in a recent investor presentation that, on average, it's targeting 10% average annual free cash flow growth.
While the shares have been attractive for some time, a recent decline in energy prices has led to a sell-off in Chevron's stock; consequently, investors have the opportunity to gas up their portfolios on the cheap. Whereas Chevron has a five-year average forward-earnings multiple of 37.6, it's currently trading at 9.7 times forward earnings.
What will Alphabet do with its cash flow?
Lee Samaha (Alphabet): If you want free cash flow, then Google owner Alphabet is the place to start. According to Wall Street estimates, the company is set to generate an incredible $250 billion in free cash flow over the next three years. It's a huge number. Consider that it represents 21.6% of the company's $1.18 trillion market capitalization. Moreover, Alphabet is forecast to end 2023 with $122 billion in net cash.
Whichever way you look at it, Alphabet is oozing with cash, and its dominant position in search means its potential to grow along with the online economy looks assured. The company faces a potential challenge from the need to add artificial intelligence (AI) to its search capability -- perhaps more of a cost issue than anything. However, even adding a few billion to the costs associated with AI leaves Alphabet looking cheap.
Furthermore, Alphabet continues to grow its Google Cloud revenue as it marches toward profitability, long-term recurring revenue, and cash flow. It's an attractive business because cloud customers tend to be sticky, and there's no let-up in the growth of data generated in the economy as the world gets connected.
All told, Alphabet's long-term future looks bright, and it's underpinned by prodigious cash-flow generation that could ultimately end up with a significant dividend payout to investors.
Apple has put on a capital allocation clinic over the past decade
Daniel Foelber (Apple): Apple has grown to become the most valuable U.S.-based company by market capitalization. And for good reason.
Apple blends hardware and software, as well as products and services, to create an integrated ecosystem that includes phones, tablets, computers, wearables, headphones and earbuds, and even other avenues like music, streaming, financial services, and more. Given the dominance of Apple today, it's easy to lose sight of where the company was not too long ago.
A little over a decade ago, Apple was diluting its stock and its outstanding share count was rising. It wasn't consistently FCF positive and it didn't pay a dividend. Then, in March 2012, Apple announced a quarterly dividend. And since then, the company has steadily raised its dividend. But more importantly, Apple has grown FCF at warp speed, which has allowed it to buy back a boatload of its own stock -- so much so that Apple's share count is down 40% in the last 10 years. And that boosts its earnings per share.
AAPL Shares Outstanding data by YCharts
In the above chart, you can see that Apple spends the vast majority of its FCF on stock buybacks. Its dividend routinely makes up less than 20% of FCF.
Apple's FCF cushion gives the company a margin of safety during economic cycles. Even if its growth slows and demand for its products and services falls, Apple is well-positioned to pay a dividend and be able to buy back its stock. This is a major advantage not enjoyed by other companies. During bear markets that coincide with economic recessions, it is common to see companies that are unable to buy back their own stock when the price is down because its business is under pressure and it is too cash-strapped.
Apple isn't the cheapest stock in the world -- with a price-to-earnings ratio of 25.9 and a price-to-FCF multiple of 25.3. But the stock arguably deserves to trade at a market premium given the strength of the brand and business. Apple also isn't a passive income powerhouse like Chevron. But for investors more focused on total returns than dividends alone, Apple stands out as a safe stock worth considering.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Chevron wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has the following options: long March 2023 $94 calls on Alphabet and short March 2023 $95 calls on Alphabet. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here's how Chevron (NYSE: CVX), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) efficiently use their FCF to benefit shareholders. AAPL Shares Outstanding data by YCharts In the above chart, you can see that Apple spends the vast majority of its FCF on stock buybacks. For 36 years, Chevron has consistently hiked its dividend, demonstrating a steadfast commitment to rewarding shareholders and earning it a place among the most highly respected dividend-paying stocks.
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Here's how Chevron (NYSE: CVX), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) efficiently use their FCF to benefit shareholders. AAPL Shares Outstanding data by YCharts In the above chart, you can see that Apple spends the vast majority of its FCF on stock buybacks. Companies that consistently generate gobs of free cash flow (FCF) over a long period of time tend to be highly profitable, well-run companies that make more money than they need.
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Here's how Chevron (NYSE: CVX), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) efficiently use their FCF to benefit shareholders. AAPL Shares Outstanding data by YCharts In the above chart, you can see that Apple spends the vast majority of its FCF on stock buybacks. Companies that consistently generate gobs of free cash flow (FCF) over a long period of time tend to be highly profitable, well-run companies that make more money than they need.
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Here's how Chevron (NYSE: CVX), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) efficiently use their FCF to benefit shareholders. AAPL Shares Outstanding data by YCharts In the above chart, you can see that Apple spends the vast majority of its FCF on stock buybacks. Companies that consistently generate gobs of free cash flow (FCF) over a long period of time tend to be highly profitable, well-run companies that make more money than they need.
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16728.0
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2023-03-18 00:00:00 UTC
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3 High-Growth Stocks to Invest in Now
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AAPL
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https://www.nasdaq.com/articles/3-high-growth-stocks-to-invest-in-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
High-growth stocks are probably not everyone’s cup of tea right now. With talks of an impending recession, everyone is looking for safer options. Hence, high-growth stocks are not attracting a lot of attention. That said, this current market is chock full of quality picks for savvy investors willing to add risk.
Although stock indexes have provided lackluster returns, it’s essential to think ahead to the next bull market, regardless of whether it’s imminent or further down the line. Focusing on the future now will allow investors to position a portfolio for success when the market inevitably improves.
The logic in investing in high-growth stocks is simple. The markets have been in an unforgiving mood for quite some time. Many investors have been significantly burned. Hence, now may be the time to pick up shares of beaten-down stocks, in preparation for the next bull market run.
For those looking to add risk, here are three top names to consider.
DIS Disney $93.20
AAPL Apple $155.00
AMZN Amazon $98.95
Disney (DIS)
Source: nikkimeel / Shutterstock.com
Due to the unfavorable macro backdrop, Disney (NYSE:DIS) stock tumbled 44% in 2022.
Bob Iger relinquished his position as CEO of Walt Disney in February 2020, handing over the reins to his chosen successor, Bob Chapek. Chapek had expressed his intention to continue following the path laid out by Iger, which he believed would lead to sustained returns for shareholders in the future.
However, Chapek’s tenure was plagued by challenges. These included weak earnings, political disputes, and a highly publicized legal battle with Scarlett Johansson over the release of Black Widow. By the end of November 2022, Chapek was no longer CEO, and Iger had resumed the role. Investors have clearly been excited by the move; the market response is a testament to this.
In addition, CEO Bob Iger has announced that Walt Disney is looking to hit cost savings of $5.5 billion, out of which $3 billion will be in non-sports related businesses. Although not all investors cheered the move, it is likely a necessary evil, considering the uncertain future that lies ahead.
Furthermore, another reason for the bullish pivot with this stock is the company’s parks and resorts segment. These businesses got hammered during the pandemic. However, some of the world’s most popular vacation destinations are now on fire, as consumers look to get out of their house and spend money.
The company’s long and storied history means Disney is a strong, stable performer in times of volatility. That is worth its weight in gold right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Unlike the broader market, Apple (NASDAQ:AAPL) stock has performed just fine this year, thus far. Shares of AAPL stock are up almost 25% since the start of 2023. This positive sentiment appears to be driven by investors’ confidence in the company’s prospects in the augmented/virtual reality market, and its plans to move its iPhone production away from China.
Apple’s iPhone segment contributed 52% of its total revenue in the fiscal year 2022, with services making up 19.8%. Hence, any measures Apple takes to increase profits in its smartphone business will positively impact its bottom line.
According to a report by Bloomberg in January, Apple intends to reduce its reliance on third-party technology companies for iPhone components. Instead, the company intends to increase its in-house production of various parts. Apple is also reportedly planning to produce a custom Wi-Fi/Bluetooth chip.
Apple has successfully transitioned its manufacturing processes to customized technology components, as seen in its Mac lineup. Using its Mac chips, Apple has improved its profit margin. This move has also enabled the company to substantially enhance its technological innovation by overseeing every component.
In addition, Apple is expanding beyond its iPhone business, by diversifying its revenue streams and entering new markets. The company plans to launch an AR/VR headset later this year, leveraging its powerful brand in this burgeoning market.
According to Statista, the AR & VR market is expected to reach $31.12 billion in revenue in 2023, with an estimated CAGR of 13.72%, resulting in a projected market size of $52.05 billion in 2027.
Amazon (AMZN)
Source: Mike Mareen / Shutterstock.com
Talking up Amazon (NASDAQ:AMZN) doesn’t seem necessary. The e-commerce giant is a bonafide member of the FAANG club, a collection of five of the best-performing American tech stocks. Accordingly, whether it comes to e-commerce, streaming, or cloud computing, Amazon is a dominant player.
However, that is why it might seem strange that AMZN stock is down almost 20% over the last six months. Much of it this decline appears to be tied to a slip in performance recently.
Broader macroeconomic fears resulted in the company’s e-commerce segment reporting a $10.6 billion operating loss during fiscal 2022. This was despite total year-over-year revenue growth of 9.4% to $513.98 billion.
However, Amazon Web Services, the company’s cloud computing arm, is doing very well. As of the fourth quarter of last year, Amazon remains the king of this market. It controls 32% of the overall market, with Microsoft (NASDAQ:MSFT) Azure and Alphabet’s (NASDAQ:GOOG) Google Cloud taking second and third place, respectively. It is a fast-growing market, and Amazon’s dominant position in the field means investors can rest easy for several years.
Rarely among high-growth stocks will you find a company as strong as Amazon. The company’s declining stock price appears to reflect an overreaction to various high-level macro factors. Thus, this is a quality stock long-term growth investors can pick up at a discount right now.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post 3 High-Growth Stocks to Invest in 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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DIS Disney $93.20 AAPL Apple $155.00 AMZN Amazon $98.95 Disney (DIS) Source: nikkimeel / Shutterstock.com Due to the unfavorable macro backdrop, Disney (NYSE:DIS) stock tumbled 44% in 2022. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Unlike the broader market, Apple (NASDAQ:AAPL) stock has performed just fine this year, thus far. Shares of AAPL stock are up almost 25% since the start of 2023.
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DIS Disney $93.20 AAPL Apple $155.00 AMZN Amazon $98.95 Disney (DIS) Source: nikkimeel / Shutterstock.com Due to the unfavorable macro backdrop, Disney (NYSE:DIS) stock tumbled 44% in 2022. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Unlike the broader market, Apple (NASDAQ:AAPL) stock has performed just fine this year, thus far. Shares of AAPL stock are up almost 25% since the start of 2023.
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DIS Disney $93.20 AAPL Apple $155.00 AMZN Amazon $98.95 Disney (DIS) Source: nikkimeel / Shutterstock.com Due to the unfavorable macro backdrop, Disney (NYSE:DIS) stock tumbled 44% in 2022. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Unlike the broader market, Apple (NASDAQ:AAPL) stock has performed just fine this year, thus far. Shares of AAPL stock are up almost 25% since the start of 2023.
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DIS Disney $93.20 AAPL Apple $155.00 AMZN Amazon $98.95 Disney (DIS) Source: nikkimeel / Shutterstock.com Due to the unfavorable macro backdrop, Disney (NYSE:DIS) stock tumbled 44% in 2022. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Unlike the broader market, Apple (NASDAQ:AAPL) stock has performed just fine this year, thus far. Shares of AAPL stock are up almost 25% since the start of 2023.
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16729.0
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2023-03-18 00:00:00 UTC
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5 Undervalued Insurance Stocks with High Dividend Yields and Low Payout Ratios
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AAPL
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https://www.nasdaq.com/articles/5-undervalued-insurance-stocks-with-high-dividend-yields-and-low-payout-ratios
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Insurance stocks are among the more intriguing options in this market. Among the most stable and consistent long-term bets, insurance companies are highly sought after by those with long investing time horizons.
Insurance starts with a bet. A customer bets on a disaster that they’ll die, or their car will crash, or their business will be destroyed by a natural gas leak, as my late father’s TV repair business was in 1967. If disaster strikes, the customer “wins” and is made whole, up to the policy’s limits. (Dad’s shop re-opened soon after his loss.)
If nothing happens, the insurer keeps the customer’s money and offers to play again with new odds and a new price tag. The biggest disasters cause insurers to raise their rates, but by carefully managing risk, they ensure this doesn’t hit them too hard.
Insurance has been essential to business conduct since Lloyd’s of London was a coffee house, in the 17th century. Without a way to manage risk, significant risks can’t be taken. The bigger an insurer, the bigger the dangers it can take. But even the biggest insurers will off-load layers of risk to other companies through “reinsurance.” No insurance stock stands alone.
With that said, here are five top insurance stocks I think are worth diving into right now.
LNC Lincoln National $20.30
FAF First American Financial $51.39
ALL Allstate $105.11
RGA Reinsurance Group of America $121.97
UNH UnitedHealth Group $469.50
Lincoln National (LNC)
Source: Jonathan Weiss / Shutterstock.com
First on this list of insurance stocks is Lincoln National (NYSE:LNC), a life insurance company offering annuities and retirement planning. This business model allows Lincoln to keep more customers’ money longer than an insurer offering just term life policies.
If you’ve heard of the company, it’s likely due to their sponsorship of the Philadelphia Eagles stadium. The Eagles lost the Super Bowl. However, Lincoln Financial is also among the insurance stocks on a losing streak.
That’s because its business model makes it more dependent than other insurers on investment returns. In 2022 Lincoln’s returns were in the red, with the company losing $2.2 billion on revenue of $19 billion. Lincoln accelerated its move downward, taking one-time accounting charges that sank the stock after it released its third-quarter report.
But this was unusual, and Lincoln has maintained its 45-cent per share dividend. This yields over 6.5% to current shareholders.
While Lincoln stock is down 20% over the last three months and 14% in the previous five years, intelligent hedge funds are now buying it. They know a better market will mean positive earnings and a rising stock price, making today’s dividend even more valuable. Lincoln’s market cap is currently less than one-fifth of its annual revenue.
This is a long-term play. You buy it on weakness, like now, and let the dividends keep you warm until the market figures out that a large insurer can’t lose forever.
First American Financial (FAF)
Source: tokar / Shutterstock
First American Financial (NYSE:FAF) is in the real estate insurance business. It offers title insurance, handles appraisals of real estate and transaction documents, and conducts inspections. In the most recent quarter, the company earned $54 million, or 52 cents per share, on revenue of $1.7 billion. The company also lost $114 million on its investments.
Over the last year, shares are down almost 19%, bringing the company’s 52 cent per share dividend yield up to 3.8%. All this is in line with the rest of the industry.
First Americans’ recent fall is due to real estate affordability. Rising interest rates aren’t just about buyers paying more. It also means sellers are often giving up low-interest loans. There are fewer transactions, thus less demand for FAF services. Private equity buyers also use cash, which further cuts FAF’s need. Revenue last year fell nearly 20% from 2021, and net income by almost 80%. Operating cash flow, however, fell only 40% to $780 million. The company’s cash on hand remained stable, at a little over $1.2 billion.
While some hedge funds have sold out of FAF stock, and some analysts have abandoned ship, Keefe, Bruyette & Wood continue to believe in it. Management also believes in its model, deciding to keep its 52 cent payout, despite declining earnings.
Allstate (ALL)
Source: Jonathan Weiss / Shutterstock.com
You know about Allstate (NYSE:ALL) because it’s in the consumer property and casualty business. The company sells car and homeowners’ policies, competing against such companies as Berkshire’s GEICO and Progressive (NYSE:PGR). Before the recent bank bailout panic, its stock was up for the year. It’s still running ahead of the S&P 500.
That said, during 2022, the company lost $1.4 billion, or $5.22 per share, on revenue of over $51 billion. Revenue rose 10%, but its losses were higher, too. For every $1 from premiums, 95 cents went out to customers. The previous year’s “combined loss ratio,” as the company calls it, was 86. Like the rest of the industry, Allstate also had less investment income. Despite these factors, the company hiked its dividend to 89 cents per share, translating to a yield of 2.9%.
Allstate was doing fine until rising car repair and medical costs skyrocketed losses. Its statutory surplus fell by over $6 billion to $12.2 billion. That means it may remain a bargain stock. The company is pausing stock buybacks.
Management doesn’t expect its bad luck to continue. Just to make sure it’s raising rates, especially on reinsurance lines that don’t kick in until losses have already become extreme. Those are up by 45-50%. Allstate management says that this year it’s focused first on profits, and less on growth.
Reinsurance Group of America (RGA)
Source: Shutterstock
In reinsurance, you’re not taking the first dollar of loss or selling a policy. You only pay out if someone suffers an extreme loss.
No insurer wants to take a billion-dollar hit, so risks like that are layered, with several companies often covering a $100 million loss. You may never have heard of Reinsurance Group of America (NYSE:RGA). Its name is only essential to your insurance company.
RGA stock has appreciated over the last year by 32%. This was an unusual year. During the previous five years, shares are down by nearly 20%. RGA was part of the “rush to safety” by many portfolio managers after years spent chasing growth. As with most other insurance stocks, you’re buying RGA mainly for its dividend, which was recently raised to 80 cents per share. Back in 2018, it was just 50 cents.
For all of 2022, RGA reported a net income of $623 million, or $9.31 per share, on revenue of $15.9 billion. A look at its earnings release shows how all the moving parts fit together. The company made up its loss in the U.S. with profits from Canada, for instance. Some currency headwinds should abate this year. That’s why the dividend went up, and Citigroup (NYSE:C) recently upgraded the stock.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
Rounding out this list of insurance stocks is UnitedHealth Group (NYSE:UNH). Indeed, UnitedHealth may be one of the best companies I don’t have in my retirement portfolio. But I have been a fan for years.
United dominates the health insurance space, evolving from a pure insurance model to a managed care model.
With insurance, you are betting on health and paying for losses. In managed care, you’re assuming costs and working to minimize them. That’s why checkups and cheap generic drugs are now part of many policies. If a managed care company can handle your chronic conditions and keep you out of the hospital, that’s a win.
United does this because it was an early technology user through its Optum unit. It has its own “pharmacy benefit manager,” which helps it limit drug costs. It gets a considerable share of the highly profitable Medicare Advantage business through its links to AARP, the elderly lobby.
Last year, United reported earnings of $20 billion, or $22.19 per share, on revenue of $324 billion. Earnings were up 16%, and revenue was up about 12.5%. The dividend of $1.65 per share yields only 1.4% to current shareholders. If that seems modest, the stock’s value has doubled over the last five years, even though it’s down 12% in 2023.
This is the miracle of the insurance business. You can always find new ways to make money, even if you gradually tweak the business model to meet the market’s needs.
On the date of publication, Dana Blankenhorn held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post 5 Undervalued Insurance Stocks with High Dividend Yields and Low Payout Ratios appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the date of publication, Dana Blankenhorn held a long position in AAPL. Lincoln accelerated its move downward, taking one-time accounting charges that sank the stock after it released its third-quarter report. While some hedge funds have sold out of FAF stock, and some analysts have abandoned ship, Keefe, Bruyette & Wood continue to believe in it.
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On the date of publication, Dana Blankenhorn held a long position in AAPL. LNC Lincoln National $20.30 FAF First American Financial $51.39 ALL Allstate $105.11 RGA Reinsurance Group of America $121.97 UNH UnitedHealth Group $469.50 Lincoln National (LNC) Source: Jonathan Weiss / Shutterstock.com First on this list of insurance stocks is Lincoln National (NYSE:LNC), a life insurance company offering annuities and retirement planning. They know a better market will mean positive earnings and a rising stock price, making today’s dividend even more valuable.
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On the date of publication, Dana Blankenhorn held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Insurance stocks are among the more intriguing options in this market. But even the biggest insurers will off-load layers of risk to other companies through “reinsurance.” No insurance stock stands alone.
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On the date of publication, Dana Blankenhorn held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Insurance stocks are among the more intriguing options in this market. In the most recent quarter, the company earned $54 million, or 52 cents per share, on revenue of $1.7 billion.
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16730.0
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2023-03-18 00:00:00 UTC
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7 Best Stocks to Buy for a Sideways Market
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AAPL
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https://www.nasdaq.com/articles/7-best-stocks-to-buy-for-a-sideways-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
From initially going nowhere in late Feb. to suddenly dropping in March, investors still interested in staying in the market have inquired about the best stocks to buy under the challenging circumstances. Here, some of my colleagues have had fun with ChatGPT, asking the artificial intelligence platform all sorts of market-related questions.
Personally, I did something similar. But instead of AI, I decided to “ask” investment resource Gurufocus.com what it believes to be the most resilient enterprise. Fortunately, the platform features a stock filter called “Probability of Financial Distress (%).” Naturally, I entered t the lowest range possible: 0% to 5% risk of distress. If this platform is worth anything, it should capture at least some of the best stocks to buy now. Further, I entered no other filter aside from not including over-the-counter securities, trusts, and master limited partnerships (MLPs). Other than that, what you see is what you get. Below are the best stocks to buy for a sideways (or even declining) market.
AAPL Apple $155.00
MSFT Microsoft $279.43
GOOG GOOGL Alphabet $102.46
AMZN Amazon $98.95
BRK-B Berkshire Hathaway $293.51
NVDA Nvidia $257.25
TSLA Tesla $180.13
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). While the discretionary space typically isn’t the arena to look for the best stocks to buy during a downturn, Gurufocus.com disagrees. Based on its distress probability indicator, Apple represents the public enterprise least likely to fail. Financially, it’s difficult to argue with the platform. Sure, it’s not the discounted deal it once was. Presently, the market price of AAPL is at a forward multiple of 26.32. As a premium to earnings, Apple ranks worse than 84.26% of the competition.
That said, it delivers the goods operationally. For example, the company’s three-year revenue growth rate stands at 20%, above 85.09% of the competition. Also, its free cash flow (FCF) growth rate during the same period is 29.2%. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. As well, their average price target stands at $170.40, implying over 9% upside potential.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
An all-around solid enterprise, I’m not shocked at all to see Microsoft (NASDAQ:MSFT) rank so highly for best stocks to buy. Sure, it’s a tech company and the underlying sector doesn’t always offer the greatest magnitude of safety. However, Microsoft has become so ingrained in everything that we do professionally and personally that it’s a prudent choice.
Financially, it’s also difficult to argue with MSFT as one of the best stocks to buy during troubled circumstances. Sure, it’s not a great deal anymore on an objective basis. For example, the market prices MSFT at a forward multiple of 25.52, which ranks a bit better than average.
However, the company comes alive operationally. Notably, its three-year revenue growth rate stands at 17.4%, ranking above 71.36% of its peers. Its FCF growth rate during the same period comes in at 20.5%, beating out 62% of the industry. Also, Microsoft’s a profitability machine, commanding a net margin of 33%. Lastly, covering analysts peg MSFT as a consensus strong buy. Further, their average price target stands at $292.07, implying nearly 6% upside potential.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Once a domineering presence in the charts, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) suffered some humbling recently. True, the Class C GOOG stock gained nearly 13% so far this year. However, in the past 365 days, GOOG gave up 25% of its equity value. Nevertheless, the underlying fundamentals of digitalized innovations may be too compelling to ignore. Further, the financials provide more than enough justification for Alphabet’s ranking among the best stocks to buy. Operationally, the tech giant features a three-year revenue growth rate of 22.9%, outpacing 74.35% of its peers. Further, its FCF growth rate during the same period pings at 27.2%, above 69.61% of the industry.
In addition, its operating and net margins come in at 26.46% and 21.2%. Both stats rate among the industry’s upper half. To boot, the company’s Altman Z-Score is 9.11, indicating very low bankruptcy risk. Turning to Wall Street, analysts peg GOOG as a unanimous strong buy. Moreover, their average price target stands at $123.78, implying over 22% upside potential.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Synonymous with the mercurial growth in the e-commerce space, Amazon (NASDAQ:AMZN) is frequently ranked among the best stocks to buy. However, since the fallout that began in late 2021/early 2022, AMZN ate some humble pie. Yes, shares gained almost 17% of equity value since the Jan. opener. However, in the trailing year, they’re down more than 36%.
Nevertheless, Gurufocus.com has confidence that AMZN will turn out to be one of the best stocks to buy. It’s a system oddity because the platform also considers AMZN to be a possible value trap. Besides that, Amazon’s three-year revenue growth rate stands at 21.9%, boxing out 84.24% of the competition. Also, its book growth rate during the same period is 31.8%, above 87.54% of sector rivals. If there’s one major knock against AMZN at the moment, it’s the valuation. At a forward multiple of 60.11, it’s a pricey affair.
Still, covering analysts love AMZN, pegging it a consensus strong buy. Additionally, they anticipate shares hitting $136.86, implying nearly 37% upside potential.
Berkshire Hathaway (BRK.B)
Source: IgorGolovniov / Shutterstock.com
I believe it’s my InvestorPlace colleague Dana Blankenhorn that remarked something to the effect of if you’re facing unknown circumstances, it’s wise to place your bets across a wide canvas. That way, at least one of your wagers should rise higher. Fundamentally, that could be the selling point of Berkshire Hathaway (NYSE:BRK-B). The industrial conglomerate under legendary investor Warren Buffett bets on practically everything viable. Thus, it’s difficult to lose.
As one of the most popular investments, I’m not shocked in the slightest that Gurufocus.com identified it as a candidate for best stocks to buy. To be fair, Berkshire doesn’t feature the runaway financial metrics that some of the star enterprise competitors do. However, it does hold its own on certain metrics, such as a three-year book growth rate of 7.4% outpacing 62.58% of the competition. Primarily, I believe Berkshire got onto this list because of the proven wisdom and guidance of Warren Buffett. Few other investors can claim this man’s extraordinary breadth of knowledge.
As well, analysts peg BRK.B as a moderate buy. Their average price target stands at $353, implying nearly 17% upside potential.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
For the last two ideas for best stocks to buy, we have some controversial ideas, beginning with Nvidia (NASDAQ:NVDA). Fundamentally, I can appreciate Nvidia’s myriad strengths. Of course, most folks are familiar with the company’s graphics processing units (GPUs) for the gaming industry. Over the years, however, Nvidia also invested heavily in relevant segments such as AI and machine learning.
Still, it’s a controversial idea for the best stocks to buy because again, tech firms tend to be cyclical. Plus, it wouldn’t necessarily be one of my top choices for investors seeking stability. That said, Nvidia offers attractive financial metrics. Its three-year revenue growth rate pings at 34.5%, soaring above most of the competition. Also, its book growth rate during the same period came out to 21.6%, a robust figure. In addition, the enterprise features a profitable framework. For example, its net margin is 16.19%, ranked better than 67% of semiconductor companies.
Looking to the Street, covering analysts peg NVDA as a consensus moderate buy. However, their average price target is $257.88, implying only 1% upside potential.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
To be honest, the inclusion of Tesla (NASDAQ:TSLA) as one of the best stocks to buy at this juncture surprised me. While Tesla represents the king of electric vehicles – and may hold onto this status for years to come – the segment also aligns with the consumer economy. Unfortunately, consumers just aren’t feeling much motivation to buy pricey EVs, especially with the banking sector’s fallout.
Still, the operational stats may attract contrarian investors. For instance, Tesla’s three-year revenue growth rate stands at 36.4%, which is simply monstrous. Its FCF growth rate during the same period came out to 81.4%, also a ridiculously high figure. In terms of profitability, the company’s net margin is 15.45%, outpacing nearly 94% of its rivals. If that wasn’t enough, the EV maker also enjoys a stout balance sheet. Along with a cash-rich account, Tesla’s Altman Z-Score hits 11.38, indicating extremely low bankruptcy risk.
Finally, analysts peg TSLA as a consensus moderate buy. Their average price target stands at $212.89, implying nearly 16% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Best Stocks to Buy for a Sideways Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy.
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AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. Presently, the market price of AAPL is at a forward multiple of 26.32.
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AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy.
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AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy.
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16731.0
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2023-03-18 00:00:00 UTC
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Want Passive Income in a Bear Market? 3 Stocks Warren Buffett Bought
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AAPL
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https://www.nasdaq.com/articles/want-passive-income-in-a-bear-market-3-stocks-warren-buffett-bought
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nan
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nan
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Investment celebrity Warren Buffett is known for his long-term approach to investing and focus on value stocks. His investment strategies have been proven successful, with countless investors following in his footsteps. However, Buffett's road to becoming wealthy was not just the result of his investments appreciating massively over time. His investments also include safe dividend stocks that consistently generated millions quarter after quarter, which he ploughed back into his investments, thus generating even greater returns, and retaining a greater percentage ownership in the companies he invested.
During a bear market, it can be hard to find stocks that offer strong returns without too much risk. However, if the underlying business is sound, the company will continue paying out regular dividends -- income that could be of critical importance in a recessionary or volatile economic environment.
Three stocks that the Berkshire Hathaway CEO has purchased during previous market declines could be suitable investments for those seeking both passive income as well as capital appreciation. That goes double for investors contemplating the probability that we could be headed into a recession, and therefore another bear market, in short order.
Each of these three companies are ones Buffett has recently added to this past quarter, and are among his top holdings to consider buying on dips.
Apple
Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (NASDAQ: AAPL).
The Oracle of Omaha first bought Apple's stock in 2016, being influenced in his decision by his two deputies, Todd Combs and Ted Weschler. Over the years, Buffett has decried not buying more Apple on dips, providing many such reasons for doing so over the years.
Buffett's view of Apple, as a premium provider of consumer goods to a very loyal clientele, has been on point. Apple's closed-loop ecosystem and focus on quality has led the company to become the leading smartphone provider in the U.S. With over 50% market share in this incredibly powerful segment, Apple has become ubiquitous in most of its key markets. The company's sheer cash flow growth over the years is a testament to the fundamental soundness (or quality) Buffett looks for in his core holdings.
With Apple now comprising approximately 39% of Berkshire Hathaway's portfolio, Buffett is clearly in this position for the long haul. While Buffett has trimmed his Apple position from time to time, his purchases over the years have far outweighed his divestitures, providing Berkshire holders with significant exposure to this world-class gem.
Apple's dividend yield of only 0.6% ($0.92 per share annually) is quite small, relative to the other names on this list. However, this is also a stock that's exploded in value since Buffett started buying in 2016, meaning his realized yield is much higher compared to his base cost than an investor putting fresh capital to work. Indeed, while Apple has raised its dividend distribution over the years, it hasn't quite kept up with its stock price appreciation over time. But for those looking for a mix of passive income and growth, this remains a top pick to consider, in my books.
Louisiana-Pacific
Warren Buffett's current investment in Louisiana-Pacific (NYSE: LPX) is valued at $339 million. While that would be a whopping investment for most, this position only constitutes roughly 0.1% of Buffett's overall equity portfolio, its 38th biggest holding.
Notably, this rather small position for Buffett still amounts to an ownership stake of roughly 7.3% in Louisiana-Pacific, based on its price at the time of acquisition. This purchase is unique, in that Buffett appears to be taking a stake in another economically sensitive company at a time when most investors are looking to play defense. This provider of building materials such as engineered wood products, siding, and other construction-related items utilized in commercial and residential projects, has somewhat stagnated over the past year, following a post-pandemic boom.
What does Buffett know that we don't? I guess we'll find out. Many know that Buffett is a perma-bull when it comes to the economic outlook for America. This bet, while small in the grand scheme of Berkshire's overall portfolio, appears to reaffirm this view. If homebuilding activity picks up (whether due to a drop in interest rates, or the need to fulfill surging demand from Millennial home buyers), Buffett could be due for a big win.
Louisiana-Pacific has been moving toward a more comprehensive business strategy, increasing its involvement in the repair and renovation market and creating value-enhancing products. Buffett's previous investments in mobile home producers and other companies in this sector suggest he believes the future may be bright for this company.
In the last quarter, Louisiana-Pacific increased its quarterly distribution by more than 9% to $0.24 per share, bringing the stock's overall dividend yield to 1.7%. For those bullish on the company's business model looking forward, this is a company that could be poised for continued dividend growth over time, making Louisiana-Pacific an intriguing passive income stock from this perspective right now.
Paramount Global
Another relatively recent investment made by Berkshire is Paramount Global (NASDAQ: PARA), a leading global media and entertainment giant. For Buffett, this pick appears to be a way to play declining interest in conventional media names, at a time when streaming and innovation is looking to disrupt this overall sector. Over the past year alone, Paramount has lost roughly 30% of its value, and much more from its 2021 peak.
Paramount does have its own streaming network, Paramount Plus. Accordingly, this isn't a company that's completely falling behind its peers in monetizing its offerings in different ways. The company's impressive release of Top Gun: Maverick last year certainly provided investors with the idea that perhaps the franchises this outfit owns aren't completely washed up. (This movie was the highest-grossing film at the domestic box office last year, and quite good, if I don't say so myself.)
Paramount's performance at the box office was notable, putting forward 10 films, six of which debuted at the No. 1 spot, with the company earning more than $2 billion in ticket sales. Top Gun: Maverick brought in the lion's share of that take, with $1.5 billion in ticket sales, but it proves what solid media franchises may be worth as stand-alone businesses.
The question many investors have with Paramount is how its streaming platform will perform moving forward. Paramount Plus does hold a considerable library of content, including more than 30,000 television episodes from CBS, BET, Nickelodeon, MTV, Comedy Channel, and Paramount Pictures. Its film library is also impressive, leading to many investors attempting to value this business on the basis of its content alone.
It appears Buffett is making the bet that Paramount's streaming platform, along with its library of content (which may be undervalued relative to its peers) could propel this dividend-producing stock higher over time. Such a view would lead one to believe that the company's dividend outlook could be more rosy than what the market is pricing in, making this a unique value, income, and growth bet for the medium- to longer-term.
While Paramount appears to be among the more difficult companies to assess due to its uncertain outlook, this is a company that's profitable, trading at around 21 times earnings, and pays a dividend yield of 4.4%. That's the kind of business Buffett clearly likes, and is reason enough for many investors to at least consider this often-overlooked company.
Investing like Buffett for passive income can provide excellent total returns
Buffett is known for his well-timed and prescient stock purchases over the decades. Indeed, these three companies are about as diverse as one could choose. However, they're all stocks Buffett has recently added to, suggesting there's something to be investigated with each.
While Apple is one of my holdings, I would need to dig deeper into Louisiana-Pacific and Paramount. And with the Buffett stamp of approval, these are two stocks I'm now watching closely. I think it's prudent for other investors to do the same.
10 stocks we like better than Apple
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*Stock Advisor returns as of March 8, 2023
Chris MacDonald has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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 Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (NASDAQ: AAPL). However, this is also a stock that's exploded in value since Buffett started buying in 2016, meaning his realized yield is much higher compared to his base cost than an investor putting fresh capital to work. This provider of building materials such as engineered wood products, siding, and other construction-related items utilized in commercial and residential projects, has somewhat stagnated over the past year, following a post-pandemic boom.
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Apple Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (NASDAQ: AAPL). For those bullish on the company's business model looking forward, this is a company that could be poised for continued dividend growth over time, making Louisiana-Pacific an intriguing passive income stock from this perspective right now. Paramount Global Another relatively recent investment made by Berkshire is Paramount Global (NASDAQ: PARA), a leading global media and entertainment giant.
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Apple Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (NASDAQ: AAPL). His investments also include safe dividend stocks that consistently generated millions quarter after quarter, which he ploughed back into his investments, thus generating even greater returns, and retaining a greater percentage ownership in the companies he invested. For those bullish on the company's business model looking forward, this is a company that could be poised for continued dividend growth over time, making Louisiana-Pacific an intriguing passive income stock from this perspective right now.
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Apple Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (NASDAQ: AAPL). Over the years, Buffett has decried not buying more Apple on dips, providing many such reasons for doing so over the years. While Paramount appears to be among the more difficult companies to assess due to its uncertain outlook, this is a company that's profitable, trading at around 21 times earnings, and pays a dividend yield of 4.4%.
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16732.0
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2023-03-17 00:00:00 UTC
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Top EU judge expects a wave of litigation from tech giants against new tech law
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AAPL
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https://www.nasdaq.com/articles/top-eu-judge-expects-a-wave-of-litigation-from-tech-giants-against-new-tech-law
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nan
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By Foo Yun Chee
BRUSSELS, March 17 (Reuters) - Tech giants will likely challenge a new European Union law aimed at reining in their power with the first cases in a potential wave of litigation expected by year-end, one of the EU's top judges said on Friday.
The Digital Markets Act (DMA), which came into force in November, will classify online platforms with more than 45 million users as gatekeepers, among other criteria.
The gatekeepers - companies that control data and platform access - are subject to a list of do's, such as making their messaging services interoperable, and don'ts, including not favouring their products and services on their platforms.
The list of gatekeepers to which the DMA will apply is due to be announced on Sept. 6 and will likely include Alphabet's GOOGL.O Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O.
Those disagreeing with the label and requirements are likely to take their complaint to the Luxembourg-based General Court within months, its president Marc van der Woude said.
The General Court is part of the Court of Justice of the European Union (CJEU) and deals with cases ranging from competition law to trade and the environment.
"Probably the end of this year, beginning of next year we might see the first cases and I don't think it will stop," he told a conference organised by the European Commission.
Some, like Google and Apple, have lobbied intensively against the DMA.
"We remain concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users while others will prohibit us from charging for intellectual property in which we invest a great deal," it said in March 2022.
Google has echoed those sentiments, and said it was also concerned that the new rules could reduce innovation.
But van der Woude said the DMA was still evolving.
"It's a living organism, this DMA, it's under constant review, obligations will be reviewed and implementing acts. So if I might call it like this, it will be a lawyer's paradise," he said.
He said areas of dispute will likely focus on the gatekeeper designation, specifications of their obligations and during enforcement of the DMA.
A contentious area is likely to be the requirement on gatekeepers to notify their acquisitions to the Commission and whether such deals meet the threshold for regulatory scrutiny, van der Woude said.
($1 = 0.9403 euros)
(Reporting by Foo Yun Chee Editing by Raissa Kasolowsky)
((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 list of gatekeepers to which the DMA will apply is due to be announced on Sept. 6 and will likely include Alphabet's GOOGL.O Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, March 17 (Reuters) - Tech giants will likely challenge a new European Union law aimed at reining in their power with the first cases in a potential wave of litigation expected by year-end, one of the EU's top judges said on Friday. "We remain concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users while others will prohibit us from charging for intellectual property in which we invest a great deal," it said in March 2022.
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The list of gatekeepers to which the DMA will apply is due to be announced on Sept. 6 and will likely include Alphabet's GOOGL.O Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, March 17 (Reuters) - Tech giants will likely challenge a new European Union law aimed at reining in their power with the first cases in a potential wave of litigation expected by year-end, one of the EU's top judges said on Friday. Those disagreeing with the label and requirements are likely to take their complaint to the Luxembourg-based General Court within months, its president Marc van der Woude said.
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The list of gatekeepers to which the DMA will apply is due to be announced on Sept. 6 and will likely include Alphabet's GOOGL.O Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, March 17 (Reuters) - Tech giants will likely challenge a new European Union law aimed at reining in their power with the first cases in a potential wave of litigation expected by year-end, one of the EU's top judges said on Friday. A contentious area is likely to be the requirement on gatekeepers to notify their acquisitions to the Commission and whether such deals meet the threshold for regulatory scrutiny, van der Woude said.
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The list of gatekeepers to which the DMA will apply is due to be announced on Sept. 6 and will likely include Alphabet's GOOGL.O Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, March 17 (Reuters) - Tech giants will likely challenge a new European Union law aimed at reining in their power with the first cases in a potential wave of litigation expected by year-end, one of the EU's top judges said on Friday. The gatekeepers - companies that control data and platform access - are subject to a list of do's, such as making their messaging services interoperable, and don'ts, including not favouring their products and services on their platforms.
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16733.0
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2023-03-17 00:00:00 UTC
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Better Buy: Apple vs. Disney
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-disney
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nan
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nan
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Until fairly recently, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) were rarely discussed in the same realm outside of their connection with Pixar, a subsidiary of Disney co-founded by Apple's Steve Jobs. However, the companies are now competitors in streaming, with Apple TV+ and Disney+ launched in 2019 and actively striving for more subscribers.
In 2022, tech and entertainment companies were struck by macroeconomic headwinds with inflation rises, leading consumers to cut back on discretionary spending. As a result, Disney and Apple's stock fell over 26% throughout 2022.
However, these companies remain leaders in their respective industries, which will likely grant them fruitful long-term futures. So, is Apple or Disney stock the better buy? Let's assess.
Apple's long-term advantages remain intact
As a dominating presence in consumer electronics, Apple has achieved the highest market cap in the world at $2.4 trillion. Products like the iPhone, MacBook, iPad, AirPods, and Apple Watch have given the company significant market share in various markets. Meanwhile, Apple's walled-garden strategy and priority on quality has created an almost unparalleled brand loyalty.
In fact, in September 2022, the company officially surpassed Alphabet's Android for most smartphone market share by hitting 50%. The achievement is a promising step for Apple considering consumers' tendency to stick with one operating system for the long term and rarely change. As a result, Apple has a major advantage when touting its other products and services, all easily used alongside the iPhone.
Apple's dominance in smartphones gives its services business a lucrative long-term outlook. In fiscal 2022, services earned the second-highest amount of revenue for the company after the iPhone. The segment earned $78.1 billion in revenue, growing 14% year over year, which was double the iPhone's growth in the same period. Additionally, services profit margins came to an attractive 71.7%, while the same metric for products reached 36.3%.
The adoption of digital services like Apple TV+, Music, iCloud, and more has skyrocketed in recent years, with the immense popularity of the company's products likely to keep it profiting from the expanding industry.
Disney is still a leader in streaming
Disney suffered considerably in 2022, with its stock plunging roughly 44% throughout the year. The company started last year at a disadvantage after theater and theme park closures during the COVID-19 pandemic stole large portions of its revenue for nearly two years. Then in 2022, Disney had to contend with economic declines, which made expanding its flagship streaming service Disney+ costly.
As a result, Disney's stock has tumbled roughly 10% over the last five years. However, despite the setbacks, the company's stock remains a compelling long-term buy. Over the last decade, Disney's stock has risen 60%, which isn't far off its 76% growth from 2002 to 2012, considering recent headwinds.
Moreover, Disney's stock dip has significantly increased its value. The company's forward price-to-earnings (P/E) ratio has decreased by roughly 37% over the last year to 22. The chart below shows that the figure is the lowest and offers the most value compared to some of Disney's biggest streaming competitors.
Data by YCharts.
Furthermore, as of the third quarter of 2022, Disney held the most market share in streaming, with 25% between Hulu and Disney+, while second place went to Netflix at 21%. Comparatively, Apple TV+'s market share came to 7%. So, if you're looking to invest specifically in streaming, Disney's stock might be the best bet.
Apple stock is the better buy today
Apple and Disney dominate their respective industries and have much to offer over the long term. However, Apple's stock decline of 26.8% compared to Disney's 43.9% amid an economically challenging environment in 2022 suggests Apple is the stronger and more reliable business.
Additionally, Apple's five-year stock growth of 242% against Disney's near-10% decline continues to illustrate the strength of the iPhone company. Apple may not be leading the way in streaming, but the diversity of its digital services and the success of its products makes its stock the better all-around buy over Disney.
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
Suzanne Frey, an executive at Alphabet, 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 Alphabet, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Until fairly recently, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) were rarely discussed in the same realm outside of their connection with Pixar, a subsidiary of Disney co-founded by Apple's Steve Jobs. In 2022, tech and entertainment companies were struck by macroeconomic headwinds with inflation rises, leading consumers to cut back on discretionary spending. The adoption of digital services like Apple TV+, Music, iCloud, and more has skyrocketed in recent years, with the immense popularity of the company's products likely to keep it profiting from the expanding industry.
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Until fairly recently, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) were rarely discussed in the same realm outside of their connection with Pixar, a subsidiary of Disney co-founded by Apple's Steve Jobs. Apple stock is the better buy today Apple and Disney dominate their respective industries and have much to offer over the long term. The Motley Fool has positions in and recommends Alphabet, Apple, Netflix, and Walt Disney.
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Until fairly recently, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) were rarely discussed in the same realm outside of their connection with Pixar, a subsidiary of Disney co-founded by Apple's Steve Jobs. Apple stock is the better buy today Apple and Disney dominate their respective industries and have much to offer over the long term. However, Apple's stock decline of 26.8% compared to Disney's 43.9% amid an economically challenging environment in 2022 suggests Apple is the stronger and more reliable business.
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Until fairly recently, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) were rarely discussed in the same realm outside of their connection with Pixar, a subsidiary of Disney co-founded by Apple's Steve Jobs. So, is Apple or Disney stock the better buy? Apple stock is the better buy today Apple and Disney dominate their respective industries and have much to offer over the long term.
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16734.0
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2023-03-17 00:00:00 UTC
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Best FAANG Stock to Buy: Facebook vs. Amazon vs. Apple vs. Netflix vs. Google
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AAPL
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https://www.nasdaq.com/articles/best-faang-stock-to-buy%3A-facebook-vs.-amazon-vs.-apple-vs.-netflix-vs.-google
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nan
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nan
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Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOGL) have all done an excellent job growing their businesses and boosting profits. This video will compare the FAANG stocks across several financial metrics and determine which one is the best to buy now.
*Stock prices used were the afternoon prices of March 15, 2023. The video was published on March 17, 2023.
10 stocks we like better than Amazon.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. 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.
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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Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOGL) have all done an excellent job growing their businesses and boosting profits. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOGL) have all done an excellent job growing their businesses and boosting profits. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix.
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Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOGL) have all done an excellent job growing their businesses and boosting profits. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOGL) have all done an excellent job growing their businesses and boosting profits. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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16735.0
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2023-03-17 00:00:00 UTC
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After Hours Most Active for Mar 17, 2023 : LUMN, F, HBI, ABBV, IBM, PEB, INTC, GOOG, AAPL, HBAN, AMZN, VSAT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-17-2023-%3A-lumn-f-hbi-abbv-ibm-peb-intc-goog-aapl-hban-amzn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -5.75 to 12,514.13. The total After hours volume is currently 510,996,400 shares traded.
The following are the most active stocks for the after hours session:
Lumen Technologies, Inc. (LUMN) is -0.02 at $2.46, with 101,594,315 shares traded. LUMN's current last sale is 41% of the target price of $6.
Ford Motor Company (F) is +0.01 at $11.31, with 49,715,065 shares traded. F's current last sale is 80.79% of the target price of $14.
Hanesbrands Inc. (HBI) is unchanged at $5.09, with 36,324,224 shares traded. HBI's current last sale is 72.71% of the target price of $7.
AbbVie Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163.
International Business Machines Corporation (IBM) is +0.0123 at $123.70, with 14,078,168 shares traded. IBM's current last sale is 85.31% of the target price of $145.
Pebblebrook Hotel Trust (PEB) is unchanged at $13.20, with 13,375,764 shares traded. PEB's current last sale is 73.33% of the target price of $18.
Intel Corporation (INTC) is unchanged at $29.81, with 9,934,476 shares traded. INTC's current last sale is 106.46% of the target price of $28.
Alphabet Inc. (GOOG) is unchanged at $102.46, with 9,475,431 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Huntington Bancshares Incorporated (HBAN) is +0.01 at $10.35, with 9,160,388 shares traded. HBAN's current last sale is 69% of the target price of $15.
Amazon.com, Inc. (AMZN) is -0.04 at $98.91, with 8,931,970 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ViaSat, Inc. (VSAT) is unchanged at $34.65, with 8,403,153 shares traded. As reported in the last short interest update the days to cover for VSAT is 19.907336; this calculation is based on the average trading volume of the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". International Business Machines Corporation (IBM) is +0.0123 at $123.70, with 14,078,168 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. The total After hours volume is currently 510,996,400 shares traded.
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Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 510,996,400 shares traded.
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Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". LUMN's current last sale is 41% of the target price of $6.
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16736.0
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2023-03-17 00:00:00 UTC
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Friday's ETF with Unusual Volume: QUAL
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AAPL
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-qual
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nan
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nan
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The iShares MSCI USA Quality Factor ETF is seeing unusually high volume in afternoon trading Friday, with over 5.8 million shares traded versus three month average volume of about 912,000. Shares of QUAL were down about 0.7% on the day.
Components of that ETF with the highest volume on Friday were Apple, trading down about 0.5% with over 42.2 million shares changing hands so far this session, and Nvidia, up about 1.1% on volume of over 41.4 million shares. Public Storage is the component faring the best Friday, up by about 1.1% on the day, while Blackstone is lagging other components of the iShares MSCI USA Quality Factor ETF, trading lower by about 3.9%.
VIDEO: Friday's ETF with Unusual Volume: QUAL
The views and 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 iShares MSCI USA Quality Factor ETF is seeing unusually high volume in afternoon trading Friday, with over 5.8 million shares traded versus three month average volume of about 912,000. Components of that ETF with the highest volume on Friday were Apple, trading down about 0.5% with over 42.2 million shares changing hands so far this session, and Nvidia, up about 1.1% on volume of over 41.4 million shares. Public Storage is the component faring the best Friday, up by about 1.1% on the day, while Blackstone is lagging other components of the iShares MSCI USA Quality Factor ETF, trading lower by about 3.9%.
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The iShares MSCI USA Quality Factor ETF is seeing unusually high volume in afternoon trading Friday, with over 5.8 million shares traded versus three month average volume of about 912,000. Public Storage is the component faring the best Friday, up by about 1.1% on the day, while Blackstone is lagging other components of the iShares MSCI USA Quality Factor ETF, trading lower by about 3.9%. VIDEO: Friday's ETF with Unusual Volume: QUAL The views and 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 iShares MSCI USA Quality Factor ETF is seeing unusually high volume in afternoon trading Friday, with over 5.8 million shares traded versus three month average volume of about 912,000. Components of that ETF with the highest volume on Friday were Apple, trading down about 0.5% with over 42.2 million shares changing hands so far this session, and Nvidia, up about 1.1% on volume of over 41.4 million shares. Public Storage is the component faring the best Friday, up by about 1.1% on the day, while Blackstone is lagging other components of the iShares MSCI USA Quality Factor ETF, trading lower by about 3.9%.
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The iShares MSCI USA Quality Factor ETF is seeing unusually high volume in afternoon trading Friday, with over 5.8 million shares traded versus three month average volume of about 912,000. Public Storage is the component faring the best Friday, up by about 1.1% on the day, while Blackstone is lagging other components of the iShares MSCI USA Quality Factor ETF, trading lower by about 3.9%. VIDEO: Friday's ETF with Unusual Volume: QUAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16737.0
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2023-03-17 00:00:00 UTC
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2 Stocks That Could Join Apple, Alphabet, and Microsoft in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/2-stocks-that-could-join-apple-alphabet-and-microsoft-in-the-%241-trillion-club
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nan
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nan
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In 1901, United States Steel Corporation became the first ever company to amass a $1 billion valuation.
Then, in 1955, car giant General Motors became the envy of the corporate world when it surpassed a $10 billion valuation. That milestone was eclipsed 40 years later, in 1995, by General Electric, which became the world's first $100 billion company.
These companies' milestones highlight how the U.S. economy evolves over time. First, steel drove the most value in the stock market. Then it was cars, until GE built an industrial conglomerate that featured everything from white goods to financial services.
That changing of the guard hasn't stopped, and it probably never will. In 2018, Apple became the first company to achieve a $1 trillion market capitalization, emblematic of a market dominated by technology. Microsoft and Google parent Alphabet joined the $1 trillion club soon after.
I'm going to share two companies that could eventually meet those tech giants in that exclusive circle. One of them will deliver substantial gains for investors if it gets there, while the other is already knocking on the door.
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) is worth just $134 billion as of this writing, so it has some catching up to do. But there's no doubt it has the potential to become one of the most valuable companies in the U.S. in the future. It's a leader in the increasingly important semiconductor sector, where it produces some of the world's most sought-after computer chips.
AMD operates across consumer segments such as gaming and personal computing, where it provides semiconductors to brands like Microsoft's Xbox and Sony's PlayStation. But it also has a powerful data center segment, from which it serves some of the largest cloud services platforms in the world. That part of AMD's business could be set for a transformative decade ahead thanks to its $49 billion acquisition of Xilinx last year.
Xilinx is the global leader in adaptive computing, and together, the combined companies think they will be at the top of the high-performance computing industry for years to come. Adaptive hardware can be reconfigured even after the manufacturing process, allowing end users to make adjustments to suit their required workload in a live environment. That has the potential to shorten the upgrade cycle, which could supercharge progress in areas like artificial intelligence software, which often advances more quickly than the chips that power it.
According to Fortune Business Insights, the semiconductor industry was worth $573 billion in 2022. But it could grow by 12.2% per year, meaning AMD will be playing in a $1.5 trillion annual market by 2030. Plus, if AMD becomes a bigger player in areas like the data center and AI, that could add trillions to the company's opportunity in the coming years.
AMD generated $23.6 billion in revenue in 2022, greater than a fourfold increase from the $5.3 billion it generated just five years prior in 2017. Perhaps the company won't grow at that pace over the next five years, given that the starting figure is substantially larger, but as industries such as AI mature over the next decade, that will spur demand for advanced chips, and it's reasonable to expect a growth acceleration for producers like AMD over the longer term.
The company will probably have to achieve in excess of $175 billion in annual revenue to amass a $1 trillion valuation, so investors might have to wait until well into the 2030s. An expansion of its price-to-sales ratio from currently suppressed levels could also help. But if it gets there, investors will earn a 646% return on their money based on where its stock trades today.
2. Amazon
Compared to AMD, Amazon's (NASDAQ: AMZN) membership in the $1 trillion club feels like a foregone conclusion. First of all, the company is worth $950 billion as of this writing, so it needs a mere 6% gain to get there. Second, its stock is down 50% from its all-time high, so it has already spent quite a bit of time in the exclusive circle with its larger peers in the past.
Amazon is the largest e-commerce company in the world, but ironically, that's why its stock has suffered recently. It's not a great business to be in when inflation is running hot, because it sends costs soaring while consumers have less purchasing power. Luckily, though, Amazon is constantly diversifying its operations.
Online sales made up about 42% of its $513.9 billion in revenue during 2022, and the rest came from a mix of cloud computing, digital advertising, and content streaming, which were the notable contributors. Investors watch the Amazon Web Services (AWS) cloud platform very closely, because it's the profitability engine behind the entire company, and it regularly leads all segments for revenue growth.
AWS is the leading provider of cloud services globally, offering hundreds of solutions to its business customers to help them transition into the digital world. According to Grand View Research, the industry could be worth $1.5 trillion per year by 2030, so Amazon's leadership position will be incredibly valuable.
A continued decline in inflation or even a recovery in the broader stock market will probably be enough for Amazon to reclaim its $1 trillion valuation. But its impressive portfolio of businesses -- which continues to expand -- makes the company an eligible candidate based on pure merit.
10 stocks we like better than Advanced Micro Devices
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors, 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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Perhaps the company won't grow at that pace over the next five years, given that the starting figure is substantially larger, but as industries such as AI mature over the next decade, that will spur demand for advanced chips, and it's reasonable to expect a growth acceleration for producers like AMD over the longer term. Online sales made up about 42% of its $513.9 billion in revenue during 2022, and the rest came from a mix of cloud computing, digital advertising, and content streaming, which were the notable contributors. Investors watch the Amazon Web Services (AWS) cloud platform very closely, because it's the profitability engine behind the entire company, and it regularly leads all segments for revenue growth.
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Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) is worth just $134 billion as of this writing, so it has some catching up to do. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple.
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Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) is worth just $134 billion as of this writing, so it has some catching up to do. Perhaps the company won't grow at that pace over the next five years, given that the starting figure is substantially larger, but as industries such as AI mature over the next decade, that will spur demand for advanced chips, and it's reasonable to expect a growth acceleration for producers like AMD over the longer term. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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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 Advanced Micro Devices wasn't one of them! The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, and Microsoft.
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16738.0
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2023-03-17 00:00:00 UTC
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Noteworthy ETF Inflows: TQQQ, AAPL, MSFT, AMZN
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AAPL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-tqqq-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 ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $203.3 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 508,250,000 to 516,400,000). Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is down about 0.5%, Microsoft Corporation (Symbol: MSFT) is up about 2.1%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.4%. For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average:
Looking at the chart above, TQQQ's low point in its 52 week range is $16.10 per share, with $62.96 as the 52 week high point — that compares with a last trade of $24.77. 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 ».
Free Report: Top 8%+ Dividends (paid monthly)
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:
Institutional Holders of STE
PJT Price Target
GSBC Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is down about 0.5%, Microsoft Corporation (Symbol: MSFT) is up about 2.1%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $203.3 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 508,250,000 to 516,400,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is down about 0.5%, Microsoft Corporation (Symbol: MSFT) is up about 2.1%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.4%. For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $16.10 per share, with $62.96 as the 52 week high point — that compares with a last trade of $24.77. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is down about 0.5%, Microsoft Corporation (Symbol: MSFT) is up about 2.1%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $203.3 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 508,250,000 to 516,400,000). For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $16.10 per share, with $62.96 as the 52 week high point — that compares with a last trade of $24.77.
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Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is down about 0.5%, Microsoft Corporation (Symbol: MSFT) is up about 2.1%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $203.3 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 508,250,000 to 516,400,000). For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $16.10 per share, with $62.96 as the 52 week high point — that compares with a last trade of $24.77.
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16739.0
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2023-03-17 00:00:00 UTC
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Got $3,000? These Stocks Could Double Your Money by 2030
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AAPL
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https://www.nasdaq.com/articles/got-%243000-these-stocks-could-double-your-money-by-2030-3
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nan
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nan
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Buying and holding solid companies for the long run is a tried and tested way of making money in the stock market because it allows investors to benefit from the power of compounding and enables them to take advantage of secular growth opportunities in various industries. This is evident from the impressive gains that the S&P 500 logged in the past decade.
For instance, a $1 investment in the S&P 500 index in 2012 grew to $3.06 in 2021 after adjusting for inflation. So even though there are periods of volatility and years when the market remains in the red, history suggests that the stock market averages solid returns over the long run. This is evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years.
A $3,000 investment in Apple stock seven years ago is now worth just over $19,000, assuming the dividends were reinvested. That translates into a healthy annual return of 30%. A similar investment in TSMC shares is now worth more than $12,400. It won't be surprising to see these stocks replicate such impressive returns in the future and at least double your money (if not more) by 2030. Let's look at the reasons why.
1. Apple
Apple has been a terrific investment over the past seven years, multiplying investors' wealth substantially thanks to the arrival of 5G smartphones and the growth of the company's services business. Looking ahead, Apple could continue to remain a top tech stock through the end of the decade thanks to the arrival of new growth drivers and existing catalysts.
For instance, 5G smartphones are going to be a key source of growth for Apple given the company's dominant position in this market. Ericsson estimates that 5G mobile subscriptions could hit 5 billion by 2028, which would be a huge jump versus the 870 million 5G subscriptions as of September last year. Even better, the 5G smartphone market could keep growing beyond 2028 because the penetration of 5G mobile subscriptions is expected to reach only 55% after five years.
With Apple's 5G-enabled iPhones making up eight of the top 10 best-selling smartphones of 2022, according to Counterpoint Research, the secular growth of this should be a tailwind for the tech giant. Meanwhile, Apple is reportedly going to launch an augmented reality (AR) headset this year, a move that will help it tap a massive market that's expected to generate over $105 billion in revenue by 2030.
Additionally, the diversification of Apple's services business into areas such as finance and healthcare could give its top line and margins a major boost by the end of the decade. These services are some of the reasons why New York University professor Scott Galloway forecasts Apple generating $1 trillion in annual revenue by 2030.
The company is expected to generate $388 billion in revenue this year, which means that it needs to clock an annual revenue growth rate of 14.5% through 2030 to hit the $1 trillion mark. A look at Apple's potential catalysts over the next decade suggests that it could indeed hit $1 trillion in annual revenue by the end of the decade.
Multiplying the estimated 2030 revenue by Apple's five-year average price-to-sales ratio of 5.67 would translate into a market cap of nearly $5.7 trillion in 2030. That's more than double the company's current market cap of just over $2.4 trillion, which is why investors with $3,000 in investable cash may want to buy shares of this tech titan.
2. Taiwan Semiconductor
TSMC shares' impressive returns over the past seven years were driven by growing semiconductor demand. The Semiconductor Industry Association estimates that global semiconductor sales hit $574 billion in 2022, up from $335 billion in 2015, expanding at a compound annual growth rate (CAGR) of 8%. McKinsey estimates that the global semiconductor industry could generate $1 trillion in revenue by 2030, matching the annual growth it witnessed in the past seven years.
TSMC is in a nice position to take advantage of the semiconductor industry's secular growth because it is the world's biggest semiconductor foundry that makes chips for major chipmakers. Counterpoint Research estimates that TSMC controlled 60% of the global semiconductor foundry market's revenue in the fourth quarter of 2022, way ahead of No. 2 Samsung's revenue share of 13%.
It is worth noting that TSMC increased its revenue share during the year from 56% at the end of 2021. The company's gains in the foundry space can be attributed to the growing demand for chips manufactured using advanced 5-nanometer process nodes. These advanced process nodes are going to play a critical role in the proliferation of artificial intelligence (AI) applications because they can compute large amounts of data in a power-efficient manner.
The semiconductor opportunity and TSMC's healthy market share tell us why the company is confident of posting a revenue CAGR of 15% to 20% over "the next several years." Even if TSMC misses the lower end of that range and it manages just 10% annual revenue growth through 2030, the company's annual revenue could hit $162 billion at the end of the forecast period (based on 2022 revenue of $76 billion).
Multiplying the estimated 2030 revenue by TSMC's current sales multiple of 6.2 (which is a discount to its five-year average sales multiple of 8.5) would result in a market cap in excess of $1 trillion. TSMC's current market cap is just over $449 billion, indicating that this semiconductor stock has the potential to double by 2030.
Given TSMC shares are trading at less than 14 times earnings, it would be a good idea for savvy investors to buy this stock if they have $3,000 to spare right now because it seems built for long-term growth.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and 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 evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years. Buying and holding solid companies for the long run is a tried and tested way of making money in the stock market because it allows investors to benefit from the power of compounding and enables them to take advantage of secular growth opportunities in various industries. Additionally, the diversification of Apple's services business into areas such as finance and healthcare could give its top line and margins a major boost by the end of the decade.
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This is evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years. Taiwan Semiconductor TSMC shares' impressive returns over the past seven years were driven by growing semiconductor demand. Counterpoint Research estimates that TSMC controlled 60% of the global semiconductor foundry market's revenue in the fourth quarter of 2022, way ahead of No.
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This is evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years. Apple Apple has been a terrific investment over the past seven years, multiplying investors' wealth substantially thanks to the arrival of 5G smartphones and the growth of the company's services business. The company is expected to generate $388 billion in revenue this year, which means that it needs to clock an annual revenue growth rate of 14.5% through 2030 to hit the $1 trillion mark.
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This is evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years. A look at Apple's potential catalysts over the next decade suggests that it could indeed hit $1 trillion in annual revenue by the end of the decade. Taiwan Semiconductor TSMC shares' impressive returns over the past seven years were driven by growing semiconductor demand.
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16740.0
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2023-03-17 00:00:00 UTC
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Should Schwab U.S. Large-Cap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-growth-etf-schg-be-on-your-investing-radar
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Schwab U.S. Large-Cap Growth ETF (SCHG), a passively managed exchange traded fund launched on 12/11/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $15.53 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. 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. Also, growth stocks are a type of equity that carries more risk compared to others. 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.49%.
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 48.40% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.98% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 48.47% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has added about 12.42% so far this year and is down about -10.41% in the last one year (as of 03/17/2023). In the past 52-week period, it has traded between $54.19 and $76.73.
The ETF has a beta of 1.09 and standard deviation of 26.95% 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
Schwab U.S. Large-Cap 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, SCHG 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 $77.70 billion in assets, Invesco QQQ has $164.13 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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Schwab U.S. Large-Cap Growth ETF (SCHG): 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.
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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, Apple Inc (AAPL) accounts for about 12.98% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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 $15.53 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 Schwab U.S. Large-Cap Growth ETF (SCHG): 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 12.98% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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 12.98% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap 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 12.98% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): 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 Schwab U.S. Large-Cap Growth ETF (SCHG), a passively managed exchange traded fund launched on 12/11/2009.
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2023-03-17 00:00:00 UTC
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Stock Market Sell-Off: Is Apple a Buy?
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-is-apple-a-buy
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2022's macroeconomic headwinds lead many consumers to pull back their spending on tech. As a result, many of the world's most valuable companies suffered steep stock declines.
Apple's (NASDAQ: AAPL) share prices fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. Apple's stock managed a partial recovery in 2023 and is up 19% year to date. However, it still has more work to do. That suggests a buying opportunity for investors hoping to benefit from the effort.
Apple is home to a robust, reliable business that has a history of offering consistent long-term gains. Here's why a sell-off makes Apple's stock a screaming buy.
Apple is maximizing profits in its iPhone segment
In fiscal 2022, Apple's iPhone segment was responsible for 52% of its revenue, with services accounting for 19.8%. That means any steps to maximize profits in its smartphone business will likely be positive for Apple's outlook.
In January, Bloomberg revealed Apple has plans to decrease its dependency on other tech companies for iPhone components and move to increase in-house production of various components. The tech giant will reportedly begin producing a custom Wi-Fi/Bluetooth chip, ending partnerships with Broadcom and Qualcomm. Additionally, reports say Apple will start using custom displays as early as 2024, moving away from Samsung- and LG-produced screens. Utilizing more in-house components in the iPhones will likely boost profit margins as it ends costly partnerships with outside companies.
Apple has had success moving to custom tech components in the past as evidenced by its Mac lineup. The company announced in June 2020 that it would stop using Intel processors in its Macs and move to homegrown chips called Apple Silicon. Since the third quarter of 2020, Apple's Mac revenue has increased 62%, going from $7.1 billion then to $11.5 billion in Q4 2022.
In addition to improving its profit margin, Apple's Mac chips allowed the company to vastly upgrade its computers by controlling every component. The end products are faster than their predecessors, offering far better battery life and attracting more consumers. Similar treatment to its iPhones could provide a significant boost to its highest-earning segment.
Expanding in other markets
In addition to maximizing iPhone products, Apple is fortifying its business by diversifying its revenue and expanding in other areas.
The company will reportedly add a new product to its lineup and venture into augmented/virtual reality (AR/VR) with the launch of a headset later this year. According to Grand View Research, the augmented reality market was valued at $25.33 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 40.9% through 2030. Meanwhile, the VR market will develop at a CAGR of 15% in the same period. Apple's potent brand could take it far in the new sector, allowing it to substantially profit from the market's growth.
Moreover, the company is home to a swiftly growing services business allowing it to lean less on its product revenue. In 2022, services such as Apple TV+, Music, and iCloud earned $78.1 billion in revenue, growing 14% year over year, double the iPhone's growth. In addition, the segment's profit margin hit 71.3%, while the same metric for products reached 36.3%.
Apple keeps a long-term mindset with its business, strengthening its cash cow by maximizing profits in its iPhone segment in the coming years while adding another layer of protection with product expansion and digital services. With a sell-off leading its stock to fall 15% from its high, now is an excellent time to consider investing in 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. Dani Cook has positions in LG Display. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Intel, and Qualcomm. The Motley Fool recommends Broadcom 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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Apple's (NASDAQ: AAPL) share prices fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. In addition to improving its profit margin, Apple's Mac chips allowed the company to vastly upgrade its computers by controlling every component. According to Grand View Research, the augmented reality market was valued at $25.33 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 40.9% through 2030.
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Apple's (NASDAQ: AAPL) share prices fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. In January, Bloomberg revealed Apple has plans to decrease its dependency on other tech companies for iPhone components and move to increase in-house production of various components. In addition to improving its profit margin, Apple's Mac chips allowed the company to vastly upgrade its computers by controlling every component.
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Apple's (NASDAQ: AAPL) share prices fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. Apple is maximizing profits in its iPhone segment In fiscal 2022, Apple's iPhone segment was responsible for 52% of its revenue, with services accounting for 19.8%. In January, Bloomberg revealed Apple has plans to decrease its dependency on other tech companies for iPhone components and move to increase in-house production of various components.
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Apple's (NASDAQ: AAPL) share prices fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. According to Grand View Research, the augmented reality market was valued at $25.33 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 40.9% through 2030. That's right -- they think these 10 stocks are even better buys.
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2023-03-17 00:00:00 UTC
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94% of Warren Buffett's $321 Billion Portfolio Is Invested in Only 4 Sectors
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https://www.nasdaq.com/articles/94-of-warren-buffetts-%24321-billion-portfolio-is-invested-in-only-4-sectors
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Few investors are more revered on Wall Street than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. That's because he's overseen a 19.8% average annualized return in his company's Class A shares since 1965. This is double the total annualized return, including dividends, of the broad-based S&P 500 (9.9%) over the same time span.
The Oracle of Omaha's recipe for success has a number of ingredients, including long holding periods, a love of dividend stocks, and penchant for buying into cyclical businesses. But it's the concentration of Berkshire Hathaway's investment portfolio that's really played a key role in delivering outsize returns for more than a half-century.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
As I've pointed out before, Buffett and his team have piled a significant percentage of their company's invested assets into just a few stocks. What you might not realize is Berkshire's portfolio concentration is even more magnified when examined by sector. Approximately 94% of the $321 billion investment portfolio Buffett oversees is invested in only four sectors, based on Form 13F data, as of Dec. 31.
Information technology: 41.87% of invested assets
When 2022 came to a close, Berkshire Hathaway held stakes in seven tech stocks, including value play HP, semiconductor giant Taiwan Semiconductor Manufacturing Company, and cloud data-warehousing company Snowflake. But the lion's share of this 41.87% stake belongs to Apple (NASDAQ: AAPL).
To venture a guess, I'd say that Apple is the only tech stock Warren Buffett has played any role in purchasing for Berkshire Hathaway's portfolio. The Oracle of Omaha tends to concentrate his research on sectors and industries where he has a deep understanding. Technology isn't one of those sectors that he's typically devoted a lot of attention to. This means Berkshire's other tech holdings were probably purchased by Buffett's investing lieutenants, Ted Weschler and/or Todd Combs.
But there are a number of clear reasons why Apple represents such a large percentage of invested assets. For one, it's a well-known brand that consumers gravitate to. Brands that keep customers loyal are businesses that are bound to catch the Oracle of Omaha's attention.
Apple's innovation also plays an important role in its outperformance. The company's iPhone commands roughly half of all U.S. smartphone market share, while its subscription services segment is putting up record sales figures.
However, Apple's capital-return program might be its biggest lure. Apple is parsing out $14.55 billion annually in dividends, and it's repurchased in excess of $550 billion of its common stock since the beginning of 2013.
Financials: 24.52% of invested assets
Though these sector weightings are skewed by Apple's outsized position, financials have historically been Warren Buffett's favorite sector to invest in.
The reason Buffett loves financial stocks so much is because they're cyclical. Even though economic downturns are inevitable, they don't last very long. Comparatively, periods of economic expansion are usually measured in years. For buy-and-hold investors like Warren Buffett, the natural expansion of the U.S. and global economy over time allows bank stocks, insurers, payment processors, and credit-rating agencies to expand in lockstep.
Bank of America (NYSE: BAC), American Express (NYSE: AXP), and Moody's are the big dogs for Berkshire Hathaway. AmEx and Moody's are among Buffett's longest-held stocks -- since 1993 for American Express and 2001 for Moody's -- while BofA is Berkshire Hathaway's second-largest holding behind Apple.
The current economic climate is a particularly interesting time for Bank of America and American Express. Normally, the fear of a recession would coerce the Federal Reserve to soften its monetary policy and potentially reduce interest rates to spur lending. But with inflation still historically high, the nation's central bank continues to aggressively rate interest rates.
For lending institutions like Bank of America and American Express, rising rates means the possibility of higher net interest income more than offsetting loan losses. In other words, there's a chance financials could outperform in the profit column during an economic downturn.
Image source: Getty Images.
Energy: 13.88% of invested assets
For the second consecutive quarter, energy is a top-three sector for Berkshire Hathaway. The 13.9% weighting represents the highest percentage of invested assets devoted to energy stocks this century for Buffett's company.
The prevailing catalyst behind energy stocks is the expectation that the price of energy commodities (specifically oil) will remain elevated. Thanks to a broken global energy supply chain, this thesis does hold water.
One year ago, Russia invaded Ukraine, which put Europe's oil and gas supply needs into question. Additionally, global energy companies have reduced their capital investments for the past three years due to demand uncertainty associated with the COVID-19 pandemic. Underinvestment in drilling, exploration, and infrastructure could make it difficult for domestic and global oil supply to be increased anytime soon. More often than not, supply constraints have a positive impact on the spot price of crude oil.
The intriguing aspect of Berkshire Hathaway's energy holdings is that it only owns two stocks: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). But these have turned into massive positions within Berkshire's portfolio.
Although both companies are integrated operators -- i.e., they own midstream and/or downstream assets, in addition to drilling assets -- they have their differences. Chevron has a much cleaner balance sheet and its board recently OK'd an up to $75 billion share buyback. Meanwhile, Occidental has more net debt to dig out from. However, Occidental's revenue mix is also more reliant on drilling, which may allow it to take advantage of sustainably higher oil prices even more than Chevron.
Consumer staples: 13.72% of invested assets
The fourth sector responsible for highly concentrating Warren Buffett's portfolio is consumer staples. Berkshire Hathaway holds five consumer staples stocks that account for about 13.7% of the company's invested assets. While that's a slightly higher weighting than at the end of 2021 (11.56%), it's a far cry from the 45% weighting consumer staples had in Buffett's portfolio in 2010.
What attracts investors like Buffett, Weschler, and Combs to consumer staples stocks is their predictability. No matter how poorly the U.S. economy performs or how high inflation flies, people still need to buy food, beverages, detergent, toothpaste, toilet paper, and a variety of other goods. Consumer staples are often profitable, time-tested businesses that deliver predictable cash flow and a rock-solid dividend.
Among Berkshire Hathaway's five consumer staples stocks, it's Coca-Cola (NYSE: KO) and Kraft Heinz (NASDAQ: KHC) that stand out.
Coca-Cola is Buffett's longest-tenured holding (35 years and counting) and arguably the most-recognized consumer goods brand on the planet. Coca-Cola is operating in all but three countries worldwide, which allows it to generate predictable cash flow in developed markets and to take advantage of organic growth opportunities in faster-growing developing/emerging market regions. Recently, Coke increased its base annual dividend for a 61st consecutive year.
As for Kraft Heinz, it might be one of Buffett's worst investments. Though it enjoyed a brief organic growth surge during the pandemic, with consumers favoring easy-to-make meals and snacks over going out to eat, Kraft Heinz continues to lug around a lot of long-term debt, goodwill, and intangible assets. Without much financial flexibility, it could be difficult to sustain interest in its brands.
10 stocks we like better than Apple
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, HP, Moody's, Snowflake, and Taiwan Semiconductor Manufacturing. 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 the lion's share of this 41.87% stake belongs to Apple (NASDAQ: AAPL). The Oracle of Omaha's recipe for success has a number of ingredients, including long holding periods, a love of dividend stocks, and penchant for buying into cyclical businesses. For buy-and-hold investors like Warren Buffett, the natural expansion of the U.S. and global economy over time allows bank stocks, insurers, payment processors, and credit-rating agencies to expand in lockstep.
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But the lion's share of this 41.87% stake belongs to Apple (NASDAQ: AAPL). Information technology: 41.87% of invested assets When 2022 came to a close, Berkshire Hathaway held stakes in seven tech stocks, including value play HP, semiconductor giant Taiwan Semiconductor Manufacturing Company, and cloud data-warehousing company Snowflake. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, HP, Moody's, Snowflake, and Taiwan Semiconductor Manufacturing.
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But the lion's share of this 41.87% stake belongs to Apple (NASDAQ: AAPL). Information technology: 41.87% of invested assets When 2022 came to a close, Berkshire Hathaway held stakes in seven tech stocks, including value play HP, semiconductor giant Taiwan Semiconductor Manufacturing Company, and cloud data-warehousing company Snowflake. Financials: 24.52% of invested assets Though these sector weightings are skewed by Apple's outsized position, financials have historically been Warren Buffett's favorite sector to invest in.
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But the lion's share of this 41.87% stake belongs to Apple (NASDAQ: AAPL). Financials: 24.52% of invested assets Though these sector weightings are skewed by Apple's outsized position, financials have historically been Warren Buffett's favorite sector to invest in. Berkshire Hathaway holds five consumer staples stocks that account for about 13.7% of the company's invested assets.
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2023-03-17 00:00:00 UTC
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SpaceX, Netflix, Boeing to join "biggest-ever" US business mission to Vietnam
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https://www.nasdaq.com/articles/spacex-netflix-boeing-to-join-biggest-ever-us-business-mission-to-vietnam
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By Francesco Guarascio
HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said.
More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters.
The delegation is a sign of rising interest in the global manufacturing hub, which is benefiting from a shift away from China amid Sino-U.S. trade friction.
Vietnam, with a population of 100 million people, also has a rapidly-growing consumer market as its middle class expands.
"This is the biggest-ever mission in Vietnam," said Vu Tu Thanh, the US-ASEAN Business Council's representative in the country, noting that the body had been organising these events for three decades.
Streaming giant Netflix NFLX.O, which Reuters last month reported was planning to open an office in Vietnam, is among the companies joining the trip. Netflix did not respond to a request for comment.
Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam.
In December, the same companies held talks with Vietnamese government officials about the possible sale of helicopters and drones, as the country seeks new suppliers and the Ukraine conflict strains the capabilities of Russia, for decades Vietnam's main military partner.
"Helicopters is one of the things the companies hope to sell to the Vietnamese," Thanh said, although he cautioned that defence deals took time to be completed and no immediate breakthrough was expected.
Boeing said in a statement that its discussions with officials would focus on its growing partnership with Vietnam and ways to strengthen the country's aviation and defence capabilities.
Lockheed Martin and Bell did not respond to requests for comment.
The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it.
Some companies are also coming to get a better sense of the political situation after recent turmoil in the Communist-Party led country, including the resignation of the president in January, Thanh added.
Participants will have meetings with Vietnam's top political and regulatory leadership, including with Prime Minister Pham Minh Chinh.
Thanh said some companies were interested in Vietnam as a manufacturing hub and in providing services to increasingly wealthy consumers at a time when economic growth reached more than 8% last year.
Among them is SpaceX, which is looking to sell its satellite internet services to Vietnam and other countries in the region, Thanh said. SpaceX did not respond to a request for comment.
The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed.
(Reporting by Francesco Guarascio; Editing by Jamie Freed)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam.
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The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters.
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The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam.
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The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters.
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2023-03-17 00:00:00 UTC
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Better Growth Stock: Nvidia vs. Apple
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https://www.nasdaq.com/articles/better-growth-stock%3A-nvidia-vs.-apple-0
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Tech stocks fell out of favor in 2022, which led the Nasdaq-100 Technology Sector index to plummet 40% throughout the year. Steep rises in the cost of living led to declines in demand for consumer technology and reductions in earnings for many companies. However, 2023 has Wall Street optimistic about the market again, with the index up roughly 19% year to date.
As a result of this optimism (and other positive catalysts unique to each specific company), Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) shares have risen 75% and 20% since Jan. 1. These companies experienced substantial stock declines last year yet remain compelling long-term investments, thanks to their history of immense growth.
So, is Nvidia or Apple the better growth stock? Let's take a closer look.
Nvidia's AI catalyst supports longer-term growth
After suffering a stock price fall of 50% last year, Nvidia's monster growth since the start of 2023 has investors' heads spinning. The swift recovery has highlighted the importance of holding growth stocks through temporary market sell-offs, as those who sold last year would not have benefited from the recent rally.
Nvidia shares have climbed 307% in the last five years and roughly 8,000% over the last 10 years, solidifying it as one of the best growth stocks available. The company has primarily profited from the expansion of the consumer graphics processing unit (GPU) market over the years, which has seen more and more people build custom PCs for activities such as video editing and gaming.
Nvidia has amassed an 88% market share in desktop GPUs. The majority market share was the company's detriment in 2022, with GPU shipments sinking 42% worldwide. However, its dominance in the industry has also given it the power and financial resources to become a prominent player in artificial intelligence (AI), a market that also heavily utilizes GPUs.
Nvidia is the primary supplier of GPUs to OpenAI's ChatGPT, an advanced AI chatbot capable of producing human-like dialogue. According to research from TrendForce, the software used about 20,000 GPUs in 2020, with that figure expected to hit 30,000 soon as ChatGPT prepares for commercialization.
As AI competition ramps up, more companies could soon turn to Nvidia for its GPUs, making its stock a no-brainer buy right now, especially alongside a history of consistent growth.
Expect Apple's dominance to continue
With the highest market cap in the world at $2.45 trillion, Apple's stock has long had a reputation as a reliable and solid growth stock. The company's shares have risen 250% in the last five years and 884% in the last decade. Meanwhile, its annual revenue has increased by 48% to $394.33 billion since 2018, with operating income soaring 68% to $119.44 billion.
Apple truly proved its resilience in 2022 by being one of the only companies among big tech to outperform the market, illustrated in the chart below.
Data by YCharts
Apple's immensely popular products and services remained in demand in fiscal 2022, with revenue rising 8% year over year to $394.3 billion and operating income climbing 9.6% to $119.4 billion. The company's stability is mainly thanks to the wide adoption of its iPhones and services, which combined were responsible for 72% of Apple's revenue last year.
In September 2022, the iPhone overtook Alphabet's Android for most smartphone market share, hitting 50%. The majority market share will likely prove a lucrative asset for Apple to attract more consumers to its other products and services in the future. Meanwhile, Apple's services segment reported revenue growth double the iPhone in 2022 at 14%, earning $78.1 billion with a profit margin of 71.7%. Comparatively, products' profit margin came in at 36.3%. As a result, Apple's diversification with solid positions in hardware and digital services strengthens its long-term outlook.
Apple stock is the winner
Apple's year-to-date stock rise of 20% may not be as impressive as Nvidia's 75%. However, the more gradual rise suggests the iPhone company's stock is less volatile. Additionally, Apple's performance amid economic challenges in 2022 makes its stock feel less of a risk, no matter the climate of the market.
Nvidia and Apple are both great long-term investments, likely to offer substantial gains for years thanks to their solid roles in high-profit markets. But if you can only choose one, Apple is the better and more reliable growth stock right now.
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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 Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, 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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As a result of this optimism (and other positive catalysts unique to each specific company), Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) shares have risen 75% and 20% since Jan. 1. The swift recovery has highlighted the importance of holding growth stocks through temporary market sell-offs, as those who sold last year would not have benefited from the recent rally. The company has primarily profited from the expansion of the consumer graphics processing unit (GPU) market over the years, which has seen more and more people build custom PCs for activities such as video editing and gaming.
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As a result of this optimism (and other positive catalysts unique to each specific company), Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) shares have risen 75% and 20% since Jan. 1. These companies experienced substantial stock declines last year yet remain compelling long-term investments, thanks to their history of immense growth. Data by YCharts Apple's immensely popular products and services remained in demand in fiscal 2022, with revenue rising 8% year over year to $394.3 billion and operating income climbing 9.6% to $119.4 billion.
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As a result of this optimism (and other positive catalysts unique to each specific company), Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) shares have risen 75% and 20% since Jan. 1. Nvidia shares have climbed 307% in the last five years and roughly 8,000% over the last 10 years, solidifying it as one of the best growth stocks available. Expect Apple's dominance to continue With the highest market cap in the world at $2.45 trillion, Apple's stock has long had a reputation as a reliable and solid growth stock.
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As a result of this optimism (and other positive catalysts unique to each specific company), Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) shares have risen 75% and 20% since Jan. 1. So, is Nvidia or Apple the better growth stock? Data by YCharts Apple's immensely popular products and services remained in demand in fiscal 2022, with revenue rising 8% year over year to $394.3 billion and operating income climbing 9.6% to $119.4 billion.
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16745.0
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2023-03-16 00:00:00 UTC
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3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL
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AAPL
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https://www.nasdaq.com/articles/3-hot-stocks-for-tomorrow%3A-friday-predictions-for-fdx-xpev-aapl
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks are trying to stage a rally on Thursday, even as worries persist over Credit Suisse (NYSE:CS), regional banks, interest rates and more. Going into the last day of the week, investors are looking at hot stocks for tomorrow.
Drilling down into specifics, the Federal Reserve will soon be in focus, as it’s expected to announce an interest-rate decision next week. It follows the European Central Bank’s decision to raise interest rates by 50 basis points on Thursday.
Further, Friday is a big options expiration week, known as “triple witching.” That’s the expiration of stock options, index futures and stock index options all on the same trading day. It can create extra volatility.
With that in mind, let’s look at a few hot stocks for tomorrow — Friday.
Hot Stocks for Tomorrow: FedEx (FDX)
Click to Enlarge
Source: Chart courtesy of TrendSpider
FedEx (NYSE:FDX) is set to report earnings on Thursday evening. Just a day ago, on Wednesday, the stock hit its lowest level since Jan. 31. So clearly, momentum has not been favoring FedEx.
For what it’s worth, United Parcel Service (NYSE:UPS) reported earnings on that same day (Jan. 31). The results sent shares roaring higher, gaining about 4.7% that day and ultimately rallying about 10% before the broader market selling pressure caught up to it.
FedEx management should be able to provide some interesting insights into the consumer. Guidance will be important, as investors will want to get a sense of how the company will do going forward — and how consumers and businesses are handling the current environment.
While shares do trade at less than 15 times earnings, investors will want to hear the company’s guidance before deciding whether that’s cheap enough to justify a long position.
The Chart: Ideally, bulls will see this stock stay above $190 by the end of the week. $190 to $195 contains this week’s low, as well as the 200-day moving average and prior resistance from January. A break realistically puts $184 in play, followed by $180.
On the upside, bulls are craving a move over $213, potentially triggering a much larger breakout.
Hot Stocks for Tomorrow: Xpeng (XPEV)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Another earnings focus, Xpeng (NYSE:XPEV) will report its results on Friday morning. Outside of Tesla (NASDAQ:TSLA), EV stocks have really struggled over the last few quarters. Specifically in 2023, it has not been a kind year to these stocks so far.
In fact, just this week, Nio (NYSE:NIO), Xpeng, Rivian (NASDAQ:RIVN) and others have made new 2023 lows. That’s not encouraging — not in the least bit! — although it does lower expectations ahead of earnings.
Lower expectations increases the odds that Xpeng won’t disappoint investors. However, that does not mean there will be a favorable reaction to earnings.
Clearly, there are concerns among investors, particularly as it relates to EV stocks, but also more broadly in regards to the economy. Investors will want to hear about strong demand, steady production and a focus on costs.
The Chart: XPEV is clearly in a downtrend and is below all of its key moving averages. It just about filled that gap at $7.62. A break of $7.50 (and especially a close below it) opens the door down to $6.90, then $6.25.
On the upside, bulls would love to see shares clear downtrend resistance and the 21-day moving average, near $8.80 to $9.
Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Saving the biggest for last, we have Apple (NASDAQ:AAPL) and its $2.45 trillion market capitalization. Many are wondering what’s going on with Apple and why it’s on this list.
There are no scheduled events for Apple that I can see, (unlike last week with its annual shareholder meeting). Instead though, we’re talking about the largest US stock in the wake of enormous market-wide volatility.
Despite the regional banking crisis sending the CBOE Volatility Index (VIX) — the so-called “fear gauge” — higher by 50% in two days, tech stocks have been remarkably resilient this week. Just look at Apple. If it closes higher on Thursday, it will mark the stock’s fourth-straight daily gain, rallying each day this week.
Granted, it’s trading into a key resistance area, but the action is still constructive and impressive given the macro backdrop. On Friday, we’re looking to see if it can maintain momentum and potentially break out.
The Chart: Generally speaking, Apple continues to struggle with the $155 to $157 area. More specifically, it has been struggling with the 61.8% retracement at $156.29. If the stock can break out over this level — and ideally clear $157 — it could put the $165 level in play.
On the downside, bulls want to see Apple stock hold $150, as well as its 10-day and 21-day moving averages. However, the stock’s “need to hold” level is $147.61. That’s this week and last week’s low (approximately), as well as the 200-day moving average.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Saving the biggest for last, we have Apple (NASDAQ:AAPL) and its $2.45 trillion market capitalization. The post 3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL appeared first on InvestorPlace.
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Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Saving the biggest for last, we have Apple (NASDAQ:AAPL) and its $2.45 trillion market capitalization. The post 3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL appeared first on InvestorPlace.
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Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Saving the biggest for last, we have Apple (NASDAQ:AAPL) and its $2.45 trillion market capitalization. The post 3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL appeared first on InvestorPlace.
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Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Saving the biggest for last, we have Apple (NASDAQ:AAPL) and its $2.45 trillion market capitalization. The post 3 Hot Stocks for Tomorrow: Friday Predictions for FDX, XPEV, AAPL appeared first on InvestorPlace.
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16746.0
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2023-03-16 00:00:00 UTC
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Is This PayPal's Biggest Threat?
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AAPL
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https://www.nasdaq.com/articles/is-this-paypals-biggest-threat
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nan
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nan
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After posting monster growth in 2020 and 2021, in large part from the pandemic's boost for online shopping and digital transactions, PayPal Holdings (NASDAQ: PYPL) pumped the brakes in 2022, with total payment volume (TPV) and revenue increasing 8% and 9%, respectively, a sharp slowdown from the prior two years. And the stock has taken a beating, down 76% from its all-time high.
Like most other businesses, PayPal is dealing with tough comparisons, macroeconomic concerns, and normalization of consumer behavior, which on their own wouldn't be enough to sound the alarm. But there is something else that shareholders should start to pay attention to.
Here's why Apple (NASDAQ: AAPL) might be PayPal's biggest threat.
The competition from Cupertino
At first glance, it might seem like there's nothing getting in the way of fintech leader PayPal. It processed $1.36 trillion in TPV last year, and the payments platform has 435 million active accounts today. Even more impressive is that PayPal's checkout feature is available at 79% of the top 1,500 retailers in North America and Europe.
But Apple Pay, which was launched in late 2014, is becoming a formidable opponent. It is the tech giant's mobile payment service that lets users add their debit or credit cards to their digital wallets on their devices to pay at millions of merchants, whether in-store or online. At the time of launch, CEO Tim Cook made it clear that he wanted a piece of the gargantuan payments sector.
Apple Pay has made remarkable progress. It commands a 28% acceptance rate at the 1,500 largest merchants in North America and Europe, second only to PayPal. What's more, Apple claims that 85% of U.S. retailers accept Apple Pay. That near-ubiquity is outstanding for a service that hasn't been available for even a decade.
Apple's advantage over PayPal is that the former now counts a whopping 2 billion active devices worldwide. And while Apple Pay is built into only four types of products -- the iPhone, Apple Watch, Mac, and iPad -- the potential for higher usage is certainly there.
Another valid argument providing more bullish support for Apple Pay is the fact that iPhone users are generally higher-income earners than their Android counterparts. This means they have more spending power, a boon for Apple Pay, which earns 0.15% from each transaction.
Smartphones are already essentially consumers' gateway to anything they do. It's hard to argue that these devices one day can't become the de facto method of payment, particularly for in-person transactions, with Apple Pay leading the charge.
Ark Invest believes so, too. According to the investment firm's Big Ideas 2023 report, there will be 5.6 billion digital-wallet users by 2030, versus 3.2 billion today.
Moreover, the Cupertino, Calif., tech giant is showing some promising strength more recently compared to PayPal. According to Bryan Keane, an analyst from Deutsche Bank, Apple Pay's adoption was up 52% year over year globally in November. The data Keane looked at also showed that PayPal's usage actually declined 8% worldwide during the same period. This was when consumers were focused on shopping for the holiday season. It could be a harbinger for future trends.
From anecdotal evidence, checking out with Apple Pay is more seamless than using PayPal for online transactions. With just two taps of the side button, the iPhone will run its facial recognition software, and the transaction will be complete. PayPal, on the other hand, requires a separate window to log into in order to complete the purchase.
Apple doesn't break out the revenue it generates from Apple Pay. But according to Statista, Apple Pay is set to generate $4 billion in revenue in 2023, a huge increase from the less than $1 billion it produced in 2019. For comparison's sake, PayPal registered total sales of $27.5 billion in 2022.
Apple Pay's foray into the fintech space came 16 years after PayPal was founded, but the tech giant is already making rapid progress. Its growth in popularity is something PayPal shareholders need to pay attention to.
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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and PayPal. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $70 puts on PayPal, 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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Here's why Apple (NASDAQ: AAPL) might be PayPal's biggest threat. After posting monster growth in 2020 and 2021, in large part from the pandemic's boost for online shopping and digital transactions, PayPal Holdings (NASDAQ: PYPL) pumped the brakes in 2022, with total payment volume (TPV) and revenue increasing 8% and 9%, respectively, a sharp slowdown from the prior two years. It is the tech giant's mobile payment service that lets users add their debit or credit cards to their digital wallets on their devices to pay at millions of merchants, whether in-store or online.
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Here's why Apple (NASDAQ: AAPL) might be PayPal's biggest threat. After posting monster growth in 2020 and 2021, in large part from the pandemic's boost for online shopping and digital transactions, PayPal Holdings (NASDAQ: PYPL) pumped the brakes in 2022, with total payment volume (TPV) and revenue increasing 8% and 9%, respectively, a sharp slowdown from the prior two years. Apple's advantage over PayPal is that the former now counts a whopping 2 billion active devices worldwide.
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Here's why Apple (NASDAQ: AAPL) might be PayPal's biggest threat. Apple doesn't break out the revenue it generates from Apple Pay. Apple Pay's foray into the fintech space came 16 years after PayPal was founded, but the tech giant is already making rapid progress.
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Here's why Apple (NASDAQ: AAPL) might be PayPal's biggest threat. Apple doesn't break out the revenue it generates from Apple Pay. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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16747.0
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2023-03-16 00:00:00 UTC
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After Hours Most Active for Mar 16, 2023 : AUY, SWN, FRC, QQQ, AMZN, AAPL, MSFT, INTC, BAC, GOOGL, UMC, JBGS
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-16-2023-%3A-auy-swn-frc-qqq-amzn-aapl-msft-intc-bac-googl
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nan
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The NASDAQ 100 After Hours Indicator is down -15.42 to 12,565.97. The total After hours volume is currently 84,322,549 shares traded.
The following are the most active stocks for the after hours session:
Yamana Gold Inc. (AUY) is +0.01 at $5.48, with 5,463,139 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Southwestern Energy Company (SWN) is +0.01 at $4.87, with 4,471,107 shares traded. SWN's current last sale is 54.11% of the target price of $9.
FIRST REPUBLIC BANK (FRC) is -4.21 at $30.06, with 3,466,434 shares traded. FRC's current last sale is 21.47% of the target price of $140.
Invesco QQQ Trust, Series 1 (QQQ) is +0.11 at $306.92, with 2,835,137 shares traded. This represents a 20.71% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is unchanged at $100.04, with 2,803,080 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.03 at $155.82, with 2,647,087 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Microsoft Corporation (MSFT) is +0.05 at $276.25, with 2,284,712 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Intel Corporation (INTC) is -0.01 at $30.17, with 2,261,451 shares traded. INTC's current last sale is 107.75% of the target price of $28.
Bank of America Corporation (BAC) is -0.04 at $28.93, with 2,223,269 shares traded. BAC's current last sale is 76.13% of the target price of $38.
Alphabet Inc. (GOOGL) is -0.18 at $100.14, with 2,219,198 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
United Microelectronics Corporation (UMC) is -0.1153 at $8.55, with 2,167,819 shares traded. UMC's current last sale is 96.12% of the target price of $8.9.
JBG SMITH Properties (JBGS) is unchanged at $14.86, with 1,927,634 shares traded., following a 52-week high recorded in today's regular session.
The views and 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 reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.03 at $155.82, with 2,647,087 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.03 at $155.82, with 2,647,087 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
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Apple Inc. (AAPL) is -0.03 at $155.82, with 2,647,087 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 84,322,549 shares traded.
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Apple Inc. (AAPL) is -0.03 at $155.82, with 2,647,087 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -15.42 to 12,565.97.
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16748.0
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2023-03-16 00:00:00 UTC
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Dell's Expanding Security Portfolio to Aid 2023 Prospects?
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AAPL
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https://www.nasdaq.com/articles/dells-expanding-security-portfolio-to-aid-2023-prospects
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nan
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nan
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Dell Technologies DELL is experiencing a tough 2023 due to a challenging macroeconomic environment and a slump in the PC market. Shares have declined 27.8% in the past year compared with the Zacks Computer & Technology sector’s drop of 15.3%.
However, the PC-maker’s expanding portfolio including security holds promise for its prospect this year.
Dell’s latest security services and solutions will help enterprises protect against threats, respond to attacks, and secure their devices, systems and clouds. It is expanding the capabilities of Managed Detection and Response solutions with the latest Pro Plus, which is a fully managed security operations solution that helps organizations prevent, respond and recover from security threats.
Moreover, Dell is now offering more choices to its customers with CrowdStrike Falcon in its SafeGuard and Response portfolio. It is also launching Product Success Accelerator for Cyber Recovery, a new service that helps enterprises protect critical data and maintain business continuity.
For its commercial PC offerings, Dell is launching a cloud-based version of its Secured Component Verification offering, which helps in reducing the risk of product tampering. The solution will be available in May, this year.
Dell Technologies Inc. Price, Consensus and EPS Surprise
Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote
Slump in PC Market Hurts Dell
Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the past year. Apple, HP, and Lenovo shares have declined 4.1%, 21.9% and 8.5%, respectively.
The slump in the PC market has been detrimental to Dell. In the fiscal fourth quarter, Client Solutions Group revenues declined 23% year over year to $13.4 billion, primarily due to continued softness in both commercial and consumer PC markets. Commercial revenues were $10.7 billion, down 17%, and consumer revenues were $2.7 billion, down 40%.
Per Gartner, worldwide PC shipments in the fourth quarter of 2022 witnessed a year-over-year decrease of 28.5%, reaching 65.292 million units. Dell was ranked third among all PC vendors, trailing Lenovo and HP, but beating Apple.
This Zacks Rank #5 (Strong Sell) company shipped 10.884 million units, witnessing a 37% year-over-year decline in the fourth quarter of 2022, per the Gartner report. Lenovo, HP and Apple shipped 15.663 million, 13.216 million and 7.011 million units, respectively.
Dell now expects first-quarter fiscal 2024 revenues to be seasonally lower than average, down sequentially between 17% and 21%. It expects unfavorable forex of roughly 300 basis points to fiscal first-quarter revenues. For fiscal 2024, Dell expects revenues to decline between 12% and 18%.
The Zacks Consensus Estimate for the fiscal first quarter is pegged at 87 cents per share, down 34.6% over the past 30 days. For fiscal 2024, the consensus mark for earnings stands at $5.33 per share, down 13.1% over the same timeframe.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dell Technologies Inc. Price, Consensus and EPS Surprise Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Slump in PC Market Hurts Dell Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the past year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. It is also launching Product Success Accelerator for Cyber Recovery, a new service that helps enterprises protect critical data and maintain business continuity.
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Dell Technologies Inc. Price, Consensus and EPS Surprise Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Slump in PC Market Hurts Dell Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the past year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fiscal fourth quarter, Client Solutions Group revenues declined 23% year over year to $13.4 billion, primarily due to continued softness in both commercial and consumer PC markets.
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Dell Technologies Inc. Price, Consensus and EPS Surprise Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Slump in PC Market Hurts Dell Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the past year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fiscal fourth quarter, Client Solutions Group revenues declined 23% year over year to $13.4 billion, primarily due to continued softness in both commercial and consumer PC markets.
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Dell Technologies Inc. Price, Consensus and EPS Surprise Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Slump in PC Market Hurts Dell Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the past year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple, HP, and Lenovo shares have declined 4.1%, 21.9% and 8.5%, respectively.
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16749.0
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2023-03-16 00:00:00 UTC
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XLF, DYNF: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/xlf-dynf%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the The Financial Select Sector SPDR Fund, where 26,200,000 units were destroyed, or a 2.8% decrease week over week. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway is down about 0.3%, and JP Morgan Chase is lower by about 1.2%.
And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF, which lost 400,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. Among the largest underlying components of DYNF, in morning trading today Microsoft is off about 0.6%, and Apple is higher by about 0.2%.
VIDEO: XLF, DYNF: 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 XLF, in morning trading today Berkshire Hathaway is down about 0.3%, and JP Morgan Chase is lower by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF, which lost 400,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. Among the largest underlying components of DYNF, in morning trading today Microsoft is off about 0.6%, and Apple is higher by about 0.2%.
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Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway is down about 0.3%, and JP Morgan Chase is lower by about 1.2%. Among the largest underlying components of DYNF, in morning trading today Microsoft is off about 0.6%, and Apple is higher by about 0.2%. VIDEO: XLF, DYNF: 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 The Financial Select Sector SPDR Fund, where 26,200,000 units were destroyed, or a 2.8% decrease week over week. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway is down about 0.3%, and JP Morgan Chase is lower by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF, which lost 400,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
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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 The Financial Select Sector SPDR Fund, where 26,200,000 units were destroyed, or a 2.8% decrease week over week. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway is down about 0.3%, and JP Morgan Chase is lower by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF, which lost 400,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
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16750.0
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2023-03-16 00:00:00 UTC
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If You Invested $10,000 in Apple Stock in 2013, 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-%2410000-in-apple-stock-in-2013-this-is-how-much-you-would-have-today
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nan
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nan
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Apple (NASDAQ: AAPL) stock has made early investors more money than they expected. This video will highlight how Apple achieved that incredible feat.
*Stock prices used were the afternoon prices of March 13, 2023. The video was published on March 15, 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. 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) stock has made early investors more money than they expected. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Apple (NASDAQ: AAPL) stock has made early investors more money than they expected. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Apple (NASDAQ: AAPL) stock has made early investors more money than they expected. 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 Parkev Tatevosian, CFA has positions in Apple.
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Apple (NASDAQ: AAPL) stock has made early investors more money than they expected. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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16751.0
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2023-03-16 00:00:00 UTC
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ANALYSIS-Chinese suppliers race to Vietnam as COVID let-up opens escape route from Sino-U.S. trade war
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AAPL
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https://www.nasdaq.com/articles/analysis-chinese-suppliers-race-to-vietnam-as-covid-let-up-opens-escape-route-from-sino-u
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nan
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nan
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By Francesco Guarascio
HANOI, March 16 (Reuters) - Vietnam has enjoyed a wave of investment from China since its neighbour abruptly canned its strict virus-containment strategy and unleashed pent-up interest from companies - and their suppliers - fleeing the impact of Sino-U.S. trade friction.
After China ended its zero-COVID-19 policy in December, Chinese firms spent the first 50 days of 2023 investing in 45 new projects in Vietnam, the most from a single country, Vietnamese government data showed.
With big-name players already in the Southeast Asian nation, attracted by its free-trade agreements and proximity to China, the companies making up the current wave of investors are mostly smaller suppliers to those larger firms, industry experts said.
Adding impetus to the move is the increasing cost of labour in China, expanding U.S. restrictions on high-tech-related trade with China, and tit-for-tat tariffs from a Sino-U.S. trade war that triggered a past wave of Chinese investment in Vietnam.
"Enquiries from Chinese firms about manufacturing investment in Vietnam grew exponentially in the last quarter of last year," said Michael Chan, senior director of leasing at industrial real estate specialist BW Industrial Development.
"Chinese investment has also increased remarkably," he said.
BORDER CROSSING
The earlier influx of major foreign corporations such as Samsung Electronics Co Ltd 005930.KS, Canon Inc 7751.T and Apple Inc AAPL.O device assemblers Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and Luxshare Precision Industry Co Ltd 002475.SZ contributed to rapid expansion of industrial clusters in sectors as varied as smartphones and printers.
But supplies for many still largely came from China. That country accounted for more than 20% of imported input for Vietnamese exports in 2021, nearly twice as much as in 2017, showed calculations from trade expert David Dollar of U.S. think tank Brookings Institution based on Asian Development Bank data.
Those smaller firms offering supplies and services to larger corporations with facilities already in Vietnam now make up the bulk of Chinese companies investing in Vietnam, particularly in the north just across the border, industry executives said.
The size of these suppliers is reflected in the average Chinese spend on new Vietnamese projects this year of roughly $5.6 million, compared with a long-term average of $6.5 million.
For instance, in Vietnam's solar panel industry, which is dominated by Chinese firms, there has been an inflow of providers of support services such as plastic moulding, die casting and energy storage, industry sources said.
Last year, Chinese panel maker suppliers, including power storage firm Growatt, were behind two of the main investments in Vietnam in ready-made factories, showed data from U.S real estate consultancy CBRE Group. Such factories are often favoured by smaller firms when entering new countries.
Growatt did not respond to a Reuters request for comment.
Chinese electronics, robotics and home appliance firms were also among top spenders on industrial leases last year, the data showed. Others included flooring firms, glass makers and suppliers of cartons and components for Apple gadgets assembled by the likes of Foxconn and Luxshare, said Do Hong Quan, head of Vietnam Investment Consulting, whose focus is Chinese investors.
In total, while economies worldwide struggle to normalise following the pandemic, and with a consequent fall of foreign investment in Vietnam, Chinese firms have tripled spending on new building sites in Vietnam so far this year to $250 million versus the same period a year earlier, official data showed. That is second only to investment from Singapore, and more than traditionally bigger investors such as South Korea and Japan.
Koen Soenens, sales director at DEEP C industrial zone in northern Vietnam, told Reuters the number of contracts his firm signed with Chinese companies in 2022 rose steeply toward year-end and in the last quarter was significantly higher than the number of contracts signed with firms from any other country.
"We expect this trend to continue this year based on enquiries we are receiving from China," Soenens said.
Among new partners, he cited automotive supplier Xiamen Sunrise Group Co Ltd 002593.SZ, solar panel component maker Hanghzou First Applied Material Co Ltd 603806.SS and electric vehicle charging equipment maker Starchange. None of the companies responded to Reuters' requests for comment.
BLOODY HISTORY
Making the move is not without risk. With thousands of years of bloody history between the neighbours, competing claims in the South China Sea unleashed entrenched anti-Chinese sentiment in 2014 with Vietnamese rioters targeting Chinese factories.
Investment applications from Chinese firms tend to be vetted with extra care, resulting in delays or rejections which encourage investment through shell companies domiciled in Hong Kong or Singapore instead, industry experts and diplomats said.
Chinese firms also experience longer times to obtain staff visas and work permits, said Filippo Bortoletti, who heads the Vietnamese unit of investment consultancy Dezan Shira.
Neither the Ministry of Foreign Affairs nor the Ministry of Planning and Investment responded to requests for comment.
However, such risks are not enough to deter small firms.
"Chinese companies move here mostly to serve their clients who moved earlier," said BW Industrial Development's Chan.
(Reporting by Francesco Guarascio; Additional reporting by Phuong Nguyen and Khanh Vu in Hanoi and Brenda Goh in Shanghai; Editing by Christopher Cushing)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The earlier influx of major foreign corporations such as Samsung Electronics Co Ltd 005930.KS, Canon Inc 7751.T and Apple Inc AAPL.O device assemblers Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and Luxshare Precision Industry Co Ltd 002475.SZ contributed to rapid expansion of industrial clusters in sectors as varied as smartphones and printers. By Francesco Guarascio HANOI, March 16 (Reuters) - Vietnam has enjoyed a wave of investment from China since its neighbour abruptly canned its strict virus-containment strategy and unleashed pent-up interest from companies - and their suppliers - fleeing the impact of Sino-U.S. trade friction. Last year, Chinese panel maker suppliers, including power storage firm Growatt, were behind two of the main investments in Vietnam in ready-made factories, showed data from U.S real estate consultancy CBRE Group.
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The earlier influx of major foreign corporations such as Samsung Electronics Co Ltd 005930.KS, Canon Inc 7751.T and Apple Inc AAPL.O device assemblers Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and Luxshare Precision Industry Co Ltd 002475.SZ contributed to rapid expansion of industrial clusters in sectors as varied as smartphones and printers. With big-name players already in the Southeast Asian nation, attracted by its free-trade agreements and proximity to China, the companies making up the current wave of investors are mostly smaller suppliers to those larger firms, industry experts said. "Enquiries from Chinese firms about manufacturing investment in Vietnam grew exponentially in the last quarter of last year," said Michael Chan, senior director of leasing at industrial real estate specialist BW Industrial Development.
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The earlier influx of major foreign corporations such as Samsung Electronics Co Ltd 005930.KS, Canon Inc 7751.T and Apple Inc AAPL.O device assemblers Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and Luxshare Precision Industry Co Ltd 002475.SZ contributed to rapid expansion of industrial clusters in sectors as varied as smartphones and printers. "Enquiries from Chinese firms about manufacturing investment in Vietnam grew exponentially in the last quarter of last year," said Michael Chan, senior director of leasing at industrial real estate specialist BW Industrial Development. Those smaller firms offering supplies and services to larger corporations with facilities already in Vietnam now make up the bulk of Chinese companies investing in Vietnam, particularly in the north just across the border, industry executives said.
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The earlier influx of major foreign corporations such as Samsung Electronics Co Ltd 005930.KS, Canon Inc 7751.T and Apple Inc AAPL.O device assemblers Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and Luxshare Precision Industry Co Ltd 002475.SZ contributed to rapid expansion of industrial clusters in sectors as varied as smartphones and printers. "Enquiries from Chinese firms about manufacturing investment in Vietnam grew exponentially in the last quarter of last year," said Michael Chan, senior director of leasing at industrial real estate specialist BW Industrial Development. Those smaller firms offering supplies and services to larger corporations with facilities already in Vietnam now make up the bulk of Chinese companies investing in Vietnam, particularly in the north just across the border, industry executives said.
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16752.0
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2023-03-16 00:00:00 UTC
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3 No-Brainer Stocks I'd Buy Right Now Without Hesitation
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-stocks-id-buy-right-now-without-hesitation-9
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nan
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nan
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It's been a volatile time for investors in many industries, and the tech arena has been particularly wild lately. The tech-heavy Nasdaq Composite tumbled 11% over the past year, proving just how difficult it's been.
But despite the tough times, there are some great technology companies out there that I wouldn't hesitate putting some money toward right now. Here's why you may want to consider buying Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT).
Image source: Getty Images.
1. Apple
Apple fared better than many tech stocks, with its share price down just 1% over the past year. That slide came after the company reported worse-than-expected results for its fiscal first quarter, which contained the all-important holiday season.
But long-term investors shouldn't write off Apple just yet. First, the company is still a leading player in the smartphone industry and generates a massive amount of profit from its position. For example, Apple accounted for 85% of global smartphone operating income in 2022.
But smartphones aren't the company's only strength. The tech titan could also soon enter a new device market with a mixed-reality headset (a combination of augmented reality and virtual reality). Apple has reportedly already shown its board of directors the device, indicating that it could potentially launch soon.
The latest estimates from Bloomberg put the number of shipped headset devices at about 1 million in the first year and for the headset to cost about $3,000. The timeline for release could come as early as Apple's Worldwide Developers Conference in June.
While sales will likely be slow at first given the high price tag, Apple has a history of its devices becoming blockbuster hits over the long term. And investors shouldn't underestimate the potential for the headset to eventually drive Apple's services revenue higher through in-app purchases and subscriptions.
For investors looking for a large company with an established track record of innovation, picking up some Apple shares could prove to be a great long-term move.
2. Microsoft
Microsoft is another no-brainer tech stock to buy because the company is a large player in some fast-growing markets, including cloud computing and artificial intelligence (AI).
While Amazon gets a lot of attention for its cloud dominance, Microsoft shouldn't be ignored here considering its Azure cloud services continue to nip at Amazon's heels. Azure's market share has more than doubled since 2015, and Microsoft's cloud services now account for 21% of the overall cloud infrastructure market, according to Synergy Research Group.
Sales from Microsoft's Azure and other cloud segment climbed 31% in the most recent quarter, and while that was a slower rate than in the recent past, there's still plenty of more room to grow. The public cloud market is estimated to increase from $525 billion this year to nearly $882 billion by 2027.
In addition to the cloud, Microsoft has a long-term opportunity in artificial intelligence. The company was an early investor in OpenAI -- the maker of the advanced language model ChatGPT -- and has recently begun integrating the technology into its Bing search engine and other software.
Microsoft is hoping the next wave of technology is focused on AI and thus far it appears the company is making the right bet. Since its announcement about integrating ChatGPT into its search engine, the Bing app had nearly as many downloads in just one week than it had all of last year. But Microsoft's AI integration goes far beyond putting the tool into Bing. Earlier this month, the company added the ability for developers to integrate ChatGPT into Azure as well, which could be a boon to its cloud services over the long term.
This matters because Microsoft is betting on the growing AI market, which IDC estimates will surpass $500 billion this year. The company's willingness to integrate AI across nearly all of its key software -- from Word to Bing to Azure -- is helping to give Microsoft an early lead in the AI race.
3. Amazon
Despite Amazon's 36% share price slide over the past 12 months, there are a couple of really good reasons why investors should keep it on their buy list. The first is that the company remains the leading player in the massive cloud computing industry.
Amazon Web Services (AWS) commands 34% of the cloud computing market right now, outpacing Microsoft's 21% and Google's 11%. And that lead is important because the company makes the vast majority of its profits from its cloud segment.
For the full 2022 year, AWS sales rose 29% to $80.1 billion and operating income increased 23% to $22.8 billion. For comparison's sake, Amazon generated $316 billion in North American e-commerce revenue and had an operating loss of $2.8 billion over the same period.
In addition to Amazon's long-term prospects in cloud computing, the company is also expanding its presence in the fast-growing digital ad market as well. In 2022, Amazon's ad business generated $37.7 billion in sales, up about 21% from 2021.
The company now holds about a 10% share of the digital ad market -- behind Meta and Google -- but will capture about 13% by 2026. With the digital ad space expected to grow and Amazon taking a larger portion in the near future, some estimates put its ad business at $85 billion in annual sales just three years from now.
Patience is a tech virtue
The tech sector is still volatile right now and long-term investors will likely have to be patient to see investments in these companies pay off. But all of them are making significant moves in key sectors, which could set them up for success for years to come.
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
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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here's why you may want to consider buying Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). And investors shouldn't underestimate the potential for the headset to eventually drive Apple's services revenue higher through in-app purchases and subscriptions. For investors looking for a large company with an established track record of innovation, picking up some Apple shares could prove to be a great long-term move.
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Here's why you may want to consider buying Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Microsoft Microsoft is another no-brainer tech stock to buy because the company is a large player in some fast-growing markets, including cloud computing and artificial intelligence (AI). The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft.
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Here's why you may want to consider buying Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Apple Apple fared better than many tech stocks, with its share price down just 1% over the past year. Microsoft Microsoft is another no-brainer tech stock to buy because the company is a large player in some fast-growing markets, including cloud computing and artificial intelligence (AI).
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Here's why you may want to consider buying Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Apple Apple fared better than many tech stocks, with its share price down just 1% over the past year. Microsoft Microsoft is another no-brainer tech stock to buy because the company is a large player in some fast-growing markets, including cloud computing and artificial intelligence (AI).
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16753.0
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2023-03-16 00:00:00 UTC
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The 3 Stocks Warren Buffett Is Most Likely Buying Right Now in Addition to Occidental
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AAPL
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https://www.nasdaq.com/articles/the-3-stocks-warren-buffett-is-most-likely-buying-right-now-in-addition-to-occidental
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nan
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nan
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Warren Buffett loaded up on shares of Occidental Petroleum (NYSE: OXY) throughout much of 2022. Unsurprisingly, he kept the buying spree going into this year. Buffett continued to buy shares of Occidental hand over fist earlier this month.
We don't know yet what other purchases Buffett has made so far in the first quarter of 2023. However, it's not hard to make what should be pretty good guesses. Here are the three stocks Buffett is most likely buying right now in addition to Occidental.
1. Berkshire Hathaway
If I had to bet on the stock Buffett is most likely buying this quarter, it would be his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The legendary investor and his longtime business partner, Charlie Munger, can buy back Berkshire stock whenever they think it's valued attractively.
Buffett and Munger clearly thought that Berkshire's valuation looked attractive in all four quarters of 2022. The only months when they didn't repurchase shares last year were in April and May.
Berkshire's share price is currently cheaper than it was throughout most of the first quarter of 2022. It's roughly in line with the levels in November and December. If Buffett and Munger thought the stock was worth buying in the past, they almost certainly haven't changed their minds.
Buffett remains a big proponent of stock buybacks when they're done at the right price. He even took a swipe at President Biden, who has publicly criticized buybacks and wants to increase taxes on them, in his latest letter to Berkshire shareholders. Buffett wrote, "When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)."
2. Apple
Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022. All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL).
Saying that Apple is the largest position in Berkshire's portfolio doesn't go far enough. The stock makes up 43.2% of Berkshire's total holdings, including shares owned by Berkshire subsidiary New England Asset Management.
But Apple's current price is now a little higher than it was throughout most of 2022 Q4. Why would Buffett still buy the stock? He would only do so if he believed the price is still a bargain. I think there's a reasonable argument that is his view.
Buffett also bought shares of Apple in the first quarter of last year. He told CNBC in May 2022 that he would have scooped up more of the stock had it not rebounded. Apple's current share price is near its lowest point in Q1 from a year ago.
3. Lousiana-Pacific
Louisiana-Pacific (NYSE: LPX) was another stock that Buffett bought in Q4 of 2022. He first initiated a position in the building-products stock in the third quarter of last year.
You might think that Louisiana-Pacific would be a horrible choice to buy right now. After all, higher interest rates have caused a slowdown in the housing market. The Federal Reserve has warned that more rate increases are on the way.
However, there are two important things to keep in mind about Buffett. First, he has a long-term mindset. Second, he focuses heavily on valuation. Both factors work to Louisiana-Pacific's advantage. Buffett knows there's still a need for more housing in the United States. He also recognizes that Louisiana-Pacific stock is dirt cheap with these great long-term prospects.
There's also the tiny detail that Louisiana-Pacific's share price is approaching the lower end of its trading range in the third and fourth quarters of 2022. If Buffett liked the stock enough then to buy it, he just might be buying again now or getting close to doing so.
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
Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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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All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). The legendary investor and his longtime business partner, Charlie Munger, can buy back Berkshire stock whenever they think it's valued attractively. Buffett wrote, "When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)."
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All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Apple Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Berkshire Hathaway If I had to bet on the stock Buffett is most likely buying this quarter, it would be his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Apple Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022.
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All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Berkshire's share price is currently cheaper than it was throughout most of the first quarter of 2022. Why would Buffett still buy the stock?
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16754.0
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2023-03-16 00:00:00 UTC
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TSMC founder says he supports US efforts to slow China's chip advances
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AAPL
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https://www.nasdaq.com/articles/tsmc-founder-says-he-supports-us-efforts-to-slow-chinas-chip-advances
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nan
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nan
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By Sarah Wu
TAIPEI, March 16 (Reuters) - The retired founder of TSMC 2330.TW said on Thursday that even as he supported U.S. efforts to slow China's advances in the semiconductor industry, the "bifurcation" of the global supply chain and the reversal of globalisation would increase prices and reduce the ubiquity of chips that power the modern world.
"There's no question in my mind that, in the chip sector, globalisation is dead. Free trade is not quite that dead, but it's in danger," Morris Chang said, speaking at an event hosted by Taiwan's CommonWealth Magazine.
"When the costs go up, the pervasiveness of chips will either stop or slow down considerably," said Chang, who at 91 remains an influential voice in Taiwan's chip industry. "We are going to be in a different game."
In Taiwan, TSMC, Asia's most valuable listed company and a major Apple Inc AAPL.O supplier, is widely regarded as the "sacred mountain protecting the country," because of its economic importance.
China has in recent years ramped up diplomatic and military pressure against Taiwan, which Beijing views as its territory, raising concerns about the fate of the chip fabs that dot Taiwan's western coast and produce the majority of the world's most advanced chips if China blockades or attacks the island.
U.S. "onshoring" and "friendshoring" efforts to boost chip manufacturing stateside or in allied countries present a predicament for Taiwan.
"Friendshore does not include Taiwan. In fact, the commerce secretary has said repeatedly that Taiwan is a very dangerous place, we cannot - America cannot - rely on Taiwan for chips," Chang said. "Now that, of course, is I think Taiwan's dilemma."
TSMC is expanding its global production footprint, even as it keeps its most advanced technology in Taiwan.
Late last year, TSMC began construction of a second chip factory in Arizona which will start production in 2026, using advanced 3 nm technology. The company's total investment in the U.S. project amounts to $40 billion.
Meanwhile, the Chinese government is plowing billions into bolstering its chip sector, but Chang said China's chip manufacturing technology lags that of Taiwan by "at least five or six years".
(Writing by Sarah Wu and Brenda Goh; Editing by Muralikumar Anantharaman and Gerry Doyle)
((s.wu@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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In Taiwan, TSMC, Asia's most valuable listed company and a major Apple Inc AAPL.O supplier, is widely regarded as the "sacred mountain protecting the country," because of its economic importance. By Sarah Wu TAIPEI, March 16 (Reuters) - The retired founder of TSMC 2330.TW said on Thursday that even as he supported U.S. efforts to slow China's advances in the semiconductor industry, the "bifurcation" of the global supply chain and the reversal of globalisation would increase prices and reduce the ubiquity of chips that power the modern world. Late last year, TSMC began construction of a second chip factory in Arizona which will start production in 2026, using advanced 3 nm technology.
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In Taiwan, TSMC, Asia's most valuable listed company and a major Apple Inc AAPL.O supplier, is widely regarded as the "sacred mountain protecting the country," because of its economic importance. "There's no question in my mind that, in the chip sector, globalisation is dead. "When the costs go up, the pervasiveness of chips will either stop or slow down considerably," said Chang, who at 91 remains an influential voice in Taiwan's chip industry.
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In Taiwan, TSMC, Asia's most valuable listed company and a major Apple Inc AAPL.O supplier, is widely regarded as the "sacred mountain protecting the country," because of its economic importance. China has in recent years ramped up diplomatic and military pressure against Taiwan, which Beijing views as its territory, raising concerns about the fate of the chip fabs that dot Taiwan's western coast and produce the majority of the world's most advanced chips if China blockades or attacks the island. In fact, the commerce secretary has said repeatedly that Taiwan is a very dangerous place, we cannot - America cannot - rely on Taiwan for chips," Chang said.
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In Taiwan, TSMC, Asia's most valuable listed company and a major Apple Inc AAPL.O supplier, is widely regarded as the "sacred mountain protecting the country," because of its economic importance. Free trade is not quite that dead, but it's in danger," Morris Chang said, speaking at an event hosted by Taiwan's CommonWealth Magazine. TSMC is expanding its global production footprint, even as it keeps its most advanced technology in Taiwan.
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16755.0
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2023-03-16 00:00:00 UTC
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EXCLUSIVE-Apple supplier Foxconn wins AirPod order, plans $200 mln factory in India - source
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-supplier-foxconn-wins-airpod-order-plans-%24200-mln-factory-in-india-0
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nan
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By Yimou Lee
TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters.
The deal will see Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, become an AirPod supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. AirPods are currently made by a range of Chinese suppliers.
One source said Foxconn will invest more than $200 million in the new India AirPod plant in the southern Indian state of Telangana. It wasn't immediately clear how much the AirPod order would be worth.
The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to "reinforce engagement" with Apple.
"That way, we are more likely to get orders for their new products," the person said.
The decision to set up production in India was requested by Apple, according to the source.
Foxconn vies with Taiwanese rivals such as Wistron Corp 3231.TW and Pegatron Corp 4938.TW to win more orders from Apple, the world's most valuable company.
A subsidiary, Foxconn Interconnect Technology Ltd <6088.HK>, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, the person said.
Shares in the Foxconn unit jumped nearly 9% after Reuters first reported the news, reversing an earlier loss of 2.2%. Shares in Foxconn itself traded up 0.5%, while the Taipei benchmark .TWII was down 1.1%.
A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details.
Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
Foxconn declined to comment. Apple did not immediately respond to a request for comment.
Apple and its key suppliers have been shifting production away from China, where strict COVID-19 curbs disrupted Foxconn's biggest iPhone factory last year. They are also seeking to avoid a potential hit to business from mounting Sino-U.S. trade friction.
Foxconn said on Wednesday it would ramp up investment outside China to meet customer demand and lower its reliance on China for production.
It was not immediately clear whether Foxconn's production plan would have impact on current AirPod suppliers, including Luxshare Precision Industry 002475.SZ.
Luxshare did not immediately reply to a Reuters' request for comment.
Goertek Inc 002241.SZ, another supplier, said in November an overseas client had asked it to suspend assembly work for a smart acoustic product, which analysts at the time identified as AirPods Pro 2, and the suspension would hit revenue by up to 3.3 billion yuan ($480 million).
Goertek did not respond to a request for comment.
($1 = 6.8864 Chinese yuan renminbi)
(Reporting By Yimou Lee; Additional reporting by Munsif Vengattil in New Delhi and Josh Horwitz in Shanghai; Editing by Miyoung Kim and Kenneth Maxwell)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and 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 Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to "reinforce engagement" with Apple. A subsidiary, Foxconn Interconnect Technology Ltd <6088.HK>, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, the person said.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details. Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. The deal will see Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, become an AirPod supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details. Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
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16756.0
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2023-03-16 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-3
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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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16757.0
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2023-03-15 00:00:00 UTC
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A Bull Market Is Coming: 3 Big Reasons to Buy Apple Stock Right Now
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-big-reasons-to-buy-apple-stock-right-now
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nan
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nan
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Every bear market in history has given way to a new bull market. This time should be no different.
Inflation, recession fears, and now bank failures -- there's certainly no shortage of calamities currently weighing on the stock market. But inflation will eventually be tamed, the economy will recover, and the financial industry will stabilize.
Strong businesses should help to lead the market higher. And the investors who buy their shares at today's discounted prices stand to profit handsomely. Apple (NASDAQ: AAPL) is one such company.
Here are three reasons the tech titan is a particularly attractive buy today.
1. Apple's services are probably worth more than you think
Investors love businesses with dependable, recurring revenue. Apple's services business might just be the best of the bunch. Apple earned a whopping $20.8 billion in services revenue in its fiscal 2023 first quarter ended Dec. 31.
Services accounted for roughly 18% of the tech giant's total sales. But with the segment's sky-high gross margin of 70.8%, compared with 37% for Apple's products, services account for a far larger percentage of the company's profits.
Apple's massive installed base of more than 2 billion active devices gives it an incredible opportunity to deepen its relationship with its customers -- and sell even more services. The company already has more than 935 million paid subscriptions. The continued growth of app purchases, cloud storage, digital payments, streaming TV, and advertising solutions should all help to fuel further increases in Apple's services revenue and profits.
For his part, Goldman Sachs analyst Michael Ng expects Apple to generate 40% of its gross profit from services by 2027, up from 33% in 2022. "Apple's success in premier hardware design and resulting brand loyalty has led to a growing installed base of users that provide visibility into revenue growth by reducing customer churn, lowering customer acquisition costs for new product and services launches, and encouraging repeat purchases," Ng said earlier this month.
Wedbush analyst Dan Ives, meanwhile, sees Apple's services revenue growing at a double-digit percentage in the coming year. Ives, in turn, thinks the company's services business alone could be worth a staggering $1.3 trillion.
2. China is rebounding
The Chinese government's strict COVID-related restrictions weighed heavily on Apple's results last year. Manufacturing facilities were forced to close, snarling Apple's otherwise highly efficient supply chain network. That dented the company's sales and drove up its costs.
China recently lifted many of its health restrictions and reopened its economy, and that should allow Apple to work through its supply chain bottlenecks and increase production of its popular iPhones and other devices.
Better still, China's economic recovery should also create higher demand for Apple's products in the populous country. The greater China region accounted for nearly 19% of the iPhone maker's sales in fiscal 2022 -- a figure that's likely to rise in the coming years.
3. India is emerging as a powerful growth driver
More than 1.4 billion people live in India. Yet, Apple currently sells a relatively small number of iPhones in the country. That could be about to change.
After enjoying record sales in India in the first quarter, Apple is restructuring its leadership team to place a greater emphasis on the region, according to Bloomberg. Apple operates an e-commerce site in India, and it plans to open retail stores there soon. "India is a hugely exciting market for us and is a major focus," CEO Tim Cook said during the company'searnings callin early February.
Apple is working to make its devices more affordable in India, including offering financing options and trade-in programs. These moves could allow the company to gain share in this increasingly important market.
Apple and its suppliers are also building more manufacturing sites in India. The tech juggernaut wants to diversify its production network and lessen its dependence on any one country's manufacturing capabilities. These moves could further help to lower costs and boost Apple's sales in India.
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Joe Tenebruso 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) is one such company. The continued growth of app purchases, cloud storage, digital payments, streaming TV, and advertising solutions should all help to fuel further increases in Apple's services revenue and profits. China recently lifted many of its health restrictions and reopened its economy, and that should allow Apple to work through its supply chain bottlenecks and increase production of its popular iPhones and other devices.
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Apple (NASDAQ: AAPL) is one such company. Wedbush analyst Dan Ives, meanwhile, sees Apple's services revenue growing at a double-digit percentage in the coming year. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group.
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Apple (NASDAQ: AAPL) is one such company. But with the segment's sky-high gross margin of 70.8%, compared with 37% for Apple's products, services account for a far larger percentage of the company's profits. "Apple's success in premier hardware design and resulting brand loyalty has led to a growing installed base of users that provide visibility into revenue growth by reducing customer churn, lowering customer acquisition costs for new product and services launches, and encouraging repeat purchases," Ng said earlier this month.
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Apple (NASDAQ: AAPL) is one such company. China recently lifted many of its health restrictions and reopened its economy, and that should allow Apple to work through its supply chain bottlenecks and increase production of its popular iPhones and other devices. The greater China region accounted for nearly 19% of the iPhone maker's sales in fiscal 2022 -- a figure that's likely to rise in the coming years.
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16758.0
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2023-03-15 00:00:00 UTC
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Good Stocks To Buy Right Now? 3 Dow 30 Stocks To Know
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AAPL
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https://www.nasdaq.com/articles/good-stocks-to-buy-right-now-3-dow-30-stocks-to-know
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nan
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nan
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The Dow Jones Industrial Average (DJIA), commonly referred to as the Dow, is one of the oldest and most widely followed stock market indices in the world. It is composed of 30 large-cap companies that are considered leaders in their respective industries and represent a cross-section of the American economy.
The Dow 30 Stocks are the 30 companies that make up the Dow Jones Industrial Average. These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG).
Investing in Dow 30 Stocks can be an attractive option for many investors. This is because they are well-established, financially sound companies with a long track record of success. However, it is important to remember that past performance is not a guarantee of future results. As well as investing in the stock market always carries some level of risk. It is essential to do your research and diversify your portfolio to minimize risk and maximize potential returns. If this has you keen on investing in dow 30 stocks, here are three stocks to check out in the stock market today.
Dow 30 Stocks To Watch Right Now
McDonald’s Corporation (NYSE: MCD)
The Home Depot Inc. (NYSE: HD)
Microsoft Corporation (NASDAQ: MSFT)
McDonald’s Corp (MCD Stock)
McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network.
At the end of January, Mcdonald’s reported a beat for its most recent 4th quarter 2022 financial results. In detail, the company announced Q4 2022 earnings of $2.59 per share versus analysts’ estimates of $2.46 per share. Additionally, MCD also notched in revenue of $5.9 billion, which came in over consensus estimates which were $5.6 billion for the quarter.
Moreover, year-to-date shares of MCD stock are trading modestly lower so far by 0.50%. While, during Wednesday morning’s trading session, McDonald’s stock is trading down by 1.07% on the day so far at $263.00 a share.
Source: TD Ameritrade TOS
[Read More] 3 Regional Bank Stocks To Watch Today
The Home Depot Inc. (HD Stock)
Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States. The company provides exposure to the home construction, renovation, and do-it-yourself markets.
Just last month, Home Depot announced better-than-expected Q4 2022 financial results. Diving in, HD posted Q4 2022 earnings per share of $3.30, along with revenue of $35.8 billion. This is in comparison to Wall Street’s consensus estimates which were earnings of $3.26 per share, and revenue estimates of $36.0 billion. Though, the company did guide lower in its report. Specifically, Home Depot said it now estimates the fiscal year 2024 earnings of approximately $15.86 per share, with revenue estimates of $157.40 billion.
Continuing on, during Wednesday morning’s trading session, shares of HD stock opened flat on the day so far, trading at $285.61 per share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch For March 2023
Microsoft Corp. (MSFT Stock)
Finally, Microsoft Corporation (MSFT) is a dominant technology giant with a diverse range of products and services. This includes its flagship Windows operating system, Office productivity suite, and Azure cloud computing platform.
Earlier this week, Microsoft announced a new lead independent director and quarterly dividend. Diving in, the company appointed Sandra. E. Peterson, who is an operating Partner at Clayton, Dubilier & Rice, as its lead independent director. Also, Microsoft reported that its Board of Directors has declared a quarterly dividend of $0.68 per share. Specifically, the dividend is payable to shareholders on June 8, 2023, and to those on record on May 18, 2023.
Year-to-date, Microsoft stock has increased by 10.03% so far. While, on Wednesday morning, shares of MSFT stock are trading slightly higher off the open by 0.96% at $263.29 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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These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). It is composed of 30 large-cap companies that are considered leaders in their respective industries and represent a cross-section of the American economy. This includes its flagship Windows operating system, Office productivity suite, and Azure cloud computing platform.
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These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States.
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These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States.
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These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States.
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16759.0
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2023-03-15 00:00:00 UTC
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FOCUS-Xiaomi's slow shift in India to premium smartphones helps Samsung steal its crown
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AAPL
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https://www.nasdaq.com/articles/focus-xiaomis-slow-shift-in-india-to-premium-smartphones-helps-samsung-steal-its-crown
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nan
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nan
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By Munsif Vengattil, Aditya Kalra and Saurabh Sharma
NEW DELHI/LUCKNOW, March 16 (Reuters) - Xiaomi Corp is overhauling its India strategy after misjudging consumer tastes in mobile phones, a costly lapse that has allowed Samsung Electronics to pip the Chinese company to the top spot in the world's second biggest market for the devices.
While Xiaomi remained focused on selling mobile phones under 10,000 rupees ($120), Indian consumers were willing to pay up for better looking models with richer features. South Korea's Samsung launched products to meet those aspirations and offered innovative financing schemes that made them affordable to most.
Those moves have helped Samsung 005930.KS wrest leadership of India's competitive mobile phones market from Xiaomi 1810.HK, with data from Hong Kong-based Counterpoint Research showing it had a 20% market share for the last quarter of 2022 compared to the Chinese company's 18%.
"The Indian market is witnessing a 'premiumisation' trend. (But) Xiaomi has been caught underprepared for the shift with a budget phones-heavy portfolio," said Tarun Pathak, a research director at Counterpoint.
The loosening of Xiaomi's vice-like grip on the 626 million Indian smartphone users - the second biggest after China - shows how companies that fail to cater to changing consumer preferences in a fast-growing economy with rising disposable incomes are being punished.
Indians' push for more expensive mobile phones to consume videos and other content will also benefit social media app providers such as Meta META.O, and iPhone maker Apple Inc AAPL.O, which so far has a tiny market share in the country due to its sole focus on high-end phones, priced from $605 to as high as $2,304, according to its website.
According to Counterpoint, the market share of the sub-$120 phones in India fell to 26% in 2022 from 41% two years ago. And premium phones - priced above 30,000 ($360) - saw their share double to 11% in the same period.
Xiaomi and Samsung both count India as a key growth market, with smartphones their top selling electronic device. The Chinese company recorded total revenue of $4.8 billion in 2021-22 in India, while Samsung registered $10.3 billion in sales, of which $6.7 billion came from smartphones.
Xiaomi, though, is already facing heat in India due to the departures of at least five senior executives, and increased government scrutiny amid frosty relations with neighbouring China. The company has $674 million of its funds frozen by the country's financial crime agency for alleged illegal remittances to foreign entities, which Xiaomi denies.
A Reuters check on product listings on Xiaomi's website showed the mismatch between consumer needs and the products the company has been offering. Xiaomi showed six smartphones priced above $360, compared with Samsung's 16. Under $120, Samsung had seven models, while Xiaomi listed 39 - most of which were shown to be out-of-stock.
And premium phones accounted for only 0%-1% of Xiaomi's total India phone shipments in the last two years, when Samsung's higher-end phones more than doubled their share to 13%, Counterpoint data showed.
But Xiaomi, which has acknowledged it introduced "too many" models in the past, is revamping its product line-up to focus on premium smartphones.
It launched in January the Redmi Note 12 whose top-end variant is priced above 30,000 rupees, and more recently the Xiaomi 13 Pro at 79,999 rupees ($970) - its highest priced phone in India. The strategic shift seems to have paid immediate dividends, with the Redmi Note 12 clocking sales of $61 million within two weeks of its launch.
"We have laid out a streamlined and cleaner portfolio with a focused approach to building expertise in the premium segment, and the launch of our latest flagship, Xiaomi 13 Pro, is a step in that direction," said its India President Muralikrishnan B.
"We understand that we have a long way to go in this journey, and therefore are bringing in much stronger products."
LOANS FOR PHONES
A Samsung scheme, run with its financing partners that says it offers "convenient and assured" loans, played a significant part in its recent success in India, helping generate $1 billion in device sales last year.
A poster of Samsung's offering that Reuters spotted on a dusty street used by fruit sellers in Uttar Pradesh state said that even those with no loan history, low credit scores or without salary slips could get a phone.
Sanjeev Kumar Verma, owner of a nearby multi-brand phone shop, has benefitted from the company's loan scheme. Speaking to Reuters in his shop, where hundreds of phones are stacked on shelves, Verma said he used to sell five Samsung phones each month, but has quadrupled that to 20 now, 18 of which are via the loan scheme.
Verma, and another smartphone vendor in Mumbai, said that unlike rivals, Samsung required no local address proof, making it easier for migrant workers or those working outside their home state to acquire phones on loans. Samsung did not comment on the remarks by the vendors.
The growth in premium segment phones was much higher in small towns than in big cities, Samsung's India mobile unit head Raju Pullan told Reuters in February, adding almost half the consumers who opted for its financing scheme were first-time loan seekers.
Samsung says its financing app installed on smartphones can lock the device and block outgoing calls for missing loan payments.
Xiaomi has also tapped partnerships to offer loans, calling them a key growth driver for sales of phones priced above 15,000 rupees ($183) and adding it will explore more such offerings.
Muralikrishnan said the company will also open more stores beyond its current network of 20,000 retail partners, and boost local procurement of mobile phone parts, likely reducing costs.
Some industry analysts said the new strategy could help the Chinese company return to solid growth in India.
"Xiaomi has historically enjoyed a strong brand equity, has a robust online and offline channel presence, and can spring a comeback with a potentially strong premium and value-for-money product mix," said Prabhu Ram, head of industry intelligence at CyberMedia Research.
Graphic: How Samsung gained India's market leader crownhttps://tmsnrt.rs/3ZXZsxb
Graphic: India smartphone market shares of companieshttps://tmsnrt.rs/3L5Ka5b
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Editing by Muralikumar Anantharaman)
((munsif.vengattil@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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Indians' push for more expensive mobile phones to consume videos and other content will also benefit social media app providers such as Meta META.O, and iPhone maker Apple Inc AAPL.O, which so far has a tiny market share in the country due to its sole focus on high-end phones, priced from $605 to as high as $2,304, according to its website. By Munsif Vengattil, Aditya Kalra and Saurabh Sharma NEW DELHI/LUCKNOW, March 16 (Reuters) - Xiaomi Corp is overhauling its India strategy after misjudging consumer tastes in mobile phones, a costly lapse that has allowed Samsung Electronics to pip the Chinese company to the top spot in the world's second biggest market for the devices. The loosening of Xiaomi's vice-like grip on the 626 million Indian smartphone users - the second biggest after China - shows how companies that fail to cater to changing consumer preferences in a fast-growing economy with rising disposable incomes are being punished.
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Indians' push for more expensive mobile phones to consume videos and other content will also benefit social media app providers such as Meta META.O, and iPhone maker Apple Inc AAPL.O, which so far has a tiny market share in the country due to its sole focus on high-end phones, priced from $605 to as high as $2,304, according to its website. Those moves have helped Samsung 005930.KS wrest leadership of India's competitive mobile phones market from Xiaomi 1810.HK, with data from Hong Kong-based Counterpoint Research showing it had a 20% market share for the last quarter of 2022 compared to the Chinese company's 18%. Xiaomi and Samsung both count India as a key growth market, with smartphones their top selling electronic device.
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Indians' push for more expensive mobile phones to consume videos and other content will also benefit social media app providers such as Meta META.O, and iPhone maker Apple Inc AAPL.O, which so far has a tiny market share in the country due to its sole focus on high-end phones, priced from $605 to as high as $2,304, according to its website. By Munsif Vengattil, Aditya Kalra and Saurabh Sharma NEW DELHI/LUCKNOW, March 16 (Reuters) - Xiaomi Corp is overhauling its India strategy after misjudging consumer tastes in mobile phones, a costly lapse that has allowed Samsung Electronics to pip the Chinese company to the top spot in the world's second biggest market for the devices. Those moves have helped Samsung 005930.KS wrest leadership of India's competitive mobile phones market from Xiaomi 1810.HK, with data from Hong Kong-based Counterpoint Research showing it had a 20% market share for the last quarter of 2022 compared to the Chinese company's 18%.
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Indians' push for more expensive mobile phones to consume videos and other content will also benefit social media app providers such as Meta META.O, and iPhone maker Apple Inc AAPL.O, which so far has a tiny market share in the country due to its sole focus on high-end phones, priced from $605 to as high as $2,304, according to its website. A Reuters check on product listings on Xiaomi's website showed the mismatch between consumer needs and the products the company has been offering. Xiaomi showed six smartphones priced above $360, compared with Samsung's 16.
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16760.0
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2023-03-15 00:00:00 UTC
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EXCLUSIVE-Apple supplier Foxconn wins AirPod order, plans $200 mln factory in India - source
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-supplier-foxconn-wins-airpod-order-plans-%24200-mln-factory-in-india-source
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nan
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nan
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By Yimou Lee
TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters.
The deal will see Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, become an AirPod supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. AirPods are currently made by a range of Chinese suppliers.
One source said Foxconn will invest more than $200 million in the new India AirPod plant in the southern Indian state of Telangana. It wasn't immediately clear how much the AirPod order would be worth.
The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to "reinforce engagement" with Apple.
"That way, we are more likely to get orders for their new products," the person said.
The decision to set up production in India was requested by Apple, according to the source.
Foxconn vies with Taiwanese rivals such as Wistron Corp 3231.TW and Pegatron Corp 4938.TW to win more orders from Apple, the world's most valuable company.
A subsidiary, Foxconn Interconnect Technology Ltd 6088.HK, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, the person said.
A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details.
Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
Foxconn declined to comment. Apple did not immediately respond to a request for comment.
Apple and its key suppliers have been shifting production away from China, where strict COVID-19 curbs disrupted Foxconn's biggest iPhone factory last year. They are also seeking to avoid a potential hit to business from mounting Sino-U.S. trade friction.
Foxconn said on Wednesday it would ramp up investment outside China to meet customer demand and lower its reliance on China for production.
It was not immediately clear whether Foxconn's production plan would have impact on current AirPod suppliers, including Luxshare Precision Industry 002475.SZ.
Luxshare did not immediately reply to a Reuters' request for comment.
Goertek Inc 002241.SZ, another supplier, said in November an overseas client had asked it to suspend assembly work for a smart acoustic product, which analysts at the time identified as AirPods Pro 2, and the suspension would hit revenue by up to 3.3 billion yuan ($480 million).
Goertek did not respond to a request for comment.
($1 = 6.8864 Chinese yuan renminbi)
(Reporting By Yimou Lee; Additional reporting by Munsif Vengattil in New Delhi and Josh Horwitz in Shanghai; Editing by Miyoung Kim and Kenneth Maxwell)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and 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 Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to "reinforce engagement" with Apple. A subsidiary, Foxconn Interconnect Technology Ltd 6088.HK, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, the person said.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details. Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. The deal will see Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, become an AirPod supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. Analysts have previously said Apple has asked suppliers including Foxconn to make AirPods in India, but details such as the size of investment, timeline and which suppliers have manufacturing plans in the country have not been disclosed.
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By Yimou Lee TAIPEI, March 16 (Reuters) - Taiwanese contract manufacturer Foxconn 2317.TW has won an order to make AirPods for Apple Inc AAPL.O and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters. "That way, we are more likely to get orders for their new products," the person said. A second person with direct knowledge of the matter, who also declined to be identified as the matter was not yet public, said the Foxconn subsidiary will make AirPods in India without providing further details.
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16761.0
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2023-03-15 00:00:00 UTC
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OMFL, KESG: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/omfl-kesg%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000Dynamic Multifactor ETF, where 13,820,000 units were destroyed, or a 19.2% decrease week over week. Among the largest underlying components of OMFL, in morning trading today Apple is off about 1.1%, and Exxon Mobil is lower by about 3.4%.
And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: OMFL, KESG: 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 OMFL, in morning trading today Apple is off about 1.1%, and Exxon Mobil is lower by about 3.4%. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: OMFL, KESG: 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 Invesco Russell 1000Dynamic Multifactor ETF, where 13,820,000 units were destroyed, or a 19.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: OMFL, KESG: 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 Invesco Russell 1000Dynamic Multifactor ETF, where 13,820,000 units were destroyed, or a 19.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: OMFL, KESG: 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 Invesco Russell 1000Dynamic Multifactor ETF, where 13,820,000 units were destroyed, or a 19.2% decrease week over week. Among the largest underlying components of OMFL, in morning trading today Apple is off about 1.1%, and Exxon Mobil is lower by about 3.4%. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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16762.0
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2023-03-15 00:00:00 UTC
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After Hours Most Active for Mar 15, 2023 : CS, AMZN, AAPL, AUY, GOOGL, BAC, MSFT, GERN, QQQ, KO, ATUS, PATH
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-15-2023-%3A-cs-amzn-aapl-auy-googl-bac-msft-gern-qqq-ko-atus
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 7.83 to 12,259.15. The total After hours volume is currently 105,132,408 shares traded.
The following are the most active stocks for the after hours session:
Credit Suisse Group (CS) is +0.18 at $2.34, with 5,741,215 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is +0.03 at $96.23, with 3,572,863 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.02 at $152.97, with 3,492,205 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Yamana Gold Inc. (AUY) is +0.02 at $5.53, with 3,352,388 shares traded.AUY is scheduled to provide an earnings report on 3/16/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.06 per share, which represents a 11 percent increase over the EPS one Year Ago
Alphabet Inc. (GOOGL) is +0.33 at $96.44, with 2,967,222 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Bank of America Corporation (BAC) is +0.11 at $28.60, with 2,695,128 shares traded. BAC's current last sale is 75.26% of the target price of $38.
Microsoft Corporation (MSFT) is +0.41 at $265.85, with 2,683,997 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Geron Corporation (GERN) is +0.04 at $2.66, with 2,577,488 shares traded.GERN is scheduled to provide an earnings report on 3/16/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is -0.11 per share, which represents a -10 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +0.0758 at $299.01, with 2,290,226 shares traded. This represents a 17.6% increase from its 52 Week Low.
Coca-Cola Company (The) (KO) is unchanged at $60.43, with 1,418,313 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.64. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Altice USA, Inc. (ATUS) is unchanged at $3.57, with 1,399,277 shares traded. ATUS's current last sale is 59.5% of the target price of $6.
UiPath, Inc. (PATH) is +2.27 at $16.91, with 1,315,484 shares traded. Smarter Analyst Reports: UiPath Falls 3.7% Despite Solid Q3 Beat
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.02 at $152.97, with 3,492,205 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Credit Suisse Group (CS) is +0.18 at $2.34, with 5,741,215 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.02 at $152.97, with 3,492,205 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Yamana Gold Inc. (AUY) is +0.02 at $5.53, with 3,352,388 shares traded.AUY is scheduled to provide an earnings report on 3/16/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is -0.02 at $152.97, with 3,492,205 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.06 per share, which represents a 11 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.02 at $152.97, with 3,492,205 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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16763.0
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2023-03-15 00:00:00 UTC
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3 Stocks Retail Investors Are Buying Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/3-stocks-retail-investors-are-buying-hand-over-fist
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nan
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nan
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For well over a century, everyday investors have been putting their money to work on Wall Street right alongside professional money managers. But since the beginning of 2021, these retail investors have made their presence felt more than ever before.
According to a recent note from Peng Cheng, the Big Data and Artificial Intelligence Strategies research leader at JPMorgan Chase, the percentage of total trading volume derived from retail investors hit an all-time high of 23% in the week of January 25 to February 1, 2023. This even surpassed the retail volume surge of the short-squeeze events of January 2021.
Although retail investors have gained notoriety for chasing momentum stocks and those with high short interest, they're far likelier to invest in brand-name growth stocks -- at least according to data from online brokerage Robinhood Markets. While there's no way to perfectly aggregate what stocks are in retail investors' portfolios across all online brokerages, Robinhood has a history of catering to everyday investors, which is what makes its leaderboard of the 100 most-held securities so valuable.
Based on that leaderboard, there are three brand-name stocks retail investors have been buying hand over fist.
A Tesla Model S charging. Image source: Tesla.
Tesla
Despite all the hoopla about "meme stocks," electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) is the most widely held stock among retail investors.
Since Robinhood's investing audience tends to be younger than that of most online brokerages, Tesla's Earth-friendly operating model speaks to the environmental activism that these younger investors are likely to hold dear. But Tesla is more than just an ESG (environmental, social, governance) story for retail investors.
Tesla has ridden its first-mover competitive advantages in the EV space to the highest valuation among all automakers. Last year, Tesla surpassed 1 million EVs produced for the first time in its history, and it has an outside chance of nearing 2 million EVs in 2023, assuming supply chains cooperate.
For what it's worth, the company has guided for 1.8 million EVs produced this year, but that'll be dependent on the speed of production ramp-up at the Berlin, Germany, and Austin, Texas, gigafactories, which both came online last year.
Retail optimists are also likely enthralled with Tesla pushing into the recurring-profit column. The company has produced a generally accepted accounting principles (GAAP) profit in each of the past three years and is no longer reliant on selling renewable energy credits (RECs) to be profitable.
But I'd be remiss if I didn't voice my skepticism for this top retail holding. Although Tesla is profitable, multiple rounds of recent price cuts on its EVs in both China and the U.S. demonstrate that competitive pressures and rising inventory levels are a problem. Even if Tesla hits 1.8 million EVs sold in 2023, its vehicle margin is liable to decline substantially.
Another issue is that, at its heart, Tesla is just a car company. While it might have other ventures, such as solar installation, they are all low-margin, money-losing operating segments once you add below-the-line expenses. Tesla's profits are entirely dependent on selling EVs and RECs. That makes it an auto stock trading at 6 to 7 times the price-to-earnings multiple of its peers.
But worst of all, Elon Musk is a genuine liability for the company. Musk has baked a mountain of promises into Tesla's share price, many of which have failed to come to fruition.
Apple
A second stock retail investors have been buying hand over fist is the largest publicly traded company in the U.S., Apple (NASDAQ: AAPL). Apple is the No. 2 stock on Robinhood's leaderboard.
Retail investors tend to buy into companies they know and trust. When it comes to brand value, no company more regularly tops the list than Apple. According to Interbrand, Apple has been No. 1 on its list of the world's most-valuable brands for 10 consecutive years. It's a testament to how loyal the buyers of its products tend to be.
More importantly, Apple leads with its innovation. The company's assortment of physical products (iPhone, iPad, and Mac) has been keeping consumers loyal to its brand for more than a decade. Apple's ongoing evolution now has it focused on subscription services. While in no way abandoning the tech products that made it what it is today, Apple's focus on services will further enhance customer loyalty, lift its operating margin, and stabilize revenue when iPhone replacement/upgrade cycles arrive.
The largest publicly traded company is also a cash cow. Apple generated over $109 billion in operating cash flow in calendar year 2022 (Apple's fiscal year doesn't align with the traditional calendar year). Bringing in a mountain of cash flow is what allows Apple to dole out $14.55 billion annually in dividends to its shareholders. It's also fueled more than $550 billion worth of share buybacks since the start of 2013.
Though Apple is probably a fine investment for those planning to hold for multiple years, I believe this company is exposed to downside if a U.S. recession materializes.
For much of the past half decade, it has not been uncommon for Apple to trade at a forward-year price-to-earnings ratio of more than 20. When Apple was growing its sales by 10% or more, this was a perfectly reasonable valuation. But with iPhone 14 sales disappointing, Apple's revenue is expected to decline by 1% in fiscal 2023 -- even with the help of inflation. That makes its forward-year price-to-earnings ratio of 23 quite pricey.
In other words, this popular retail holding could struggle in 2023.
Image source: Amazon.
Amazon
The third stock retail investors have been buying hand over fist, based on Robinhood's leaderboard, is e-commerce stock Amazon (NASDAQ: AMZN).
Similar to Apple, one (likely) reason everyday investors flock to Amazon is because it's a familiar brand they know and trust. In March 2022, eMarketer issued a report estimating that Amazon would account for 39.5% of U.S. online retail sales for the year. That's more than 8 percentage points more than the share of its 14 closest competitors combined! When you think of e-commerce, chances are that Amazon's online marketplace is what comes to mind.
Interestingly, though, it's not e-commerce that's Amazon's key to success. While it is the company's top revenue driver, online retail sales generate low margins. Rather, Amazon's trio of high-margin ancillary operating segments does the heavy lifting and brings in the lion's share of its cash flow.
The first of these is subscription services. Back in April 2021, Amazon announced that it had surpassed 200 million worldwide Prime members. Since this announcement, its marketplace has grown modestly, the company added exclusivity rights to Thursday Night Football, and it passed along annual/monthly price hikes to Prime members.
The second key cash-flow-driving ancillary segment is advertising services. Though you might not think of Amazon as an advertising platform, it had between 2.2 billion and 2.9 billion monthly worldwide visits between December 2021 and May 2022. That's plenty of eyeballs for merchants to reach.
The final important ancillary segment is Amazon Web Services (AWS). AWS accounts for nearly a third of global cloud infrastructure service spending. Even though AWS amounts to only a sixth of Amazon's net sales, it's frequently responsible for 50% to 100% of the company's operating income.
These three higher-margin ancillary operating segments generate the copious amounts of cash flow that Amazon reinvests in its logistics operations and other high-growth initiatives.
Based solely on Wall Street's future cash-flow-per-share estimates, Amazon is cheaper now than at any other point in its publicly traded history.
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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 A second stock retail investors have been buying hand over fist is the largest publicly traded company in the U.S., Apple (NASDAQ: AAPL). According to a recent note from Peng Cheng, the Big Data and Artificial Intelligence Strategies research leader at JPMorgan Chase, the percentage of total trading volume derived from retail investors hit an all-time high of 23% in the week of January 25 to February 1, 2023. While in no way abandoning the tech products that made it what it is today, Apple's focus on services will further enhance customer loyalty, lift its operating margin, and stabilize revenue when iPhone replacement/upgrade cycles arrive.
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Apple A second stock retail investors have been buying hand over fist is the largest publicly traded company in the U.S., Apple (NASDAQ: AAPL). Apple generated over $109 billion in operating cash flow in calendar year 2022 (Apple's fiscal year doesn't align with the traditional calendar year). Amazon The third stock retail investors have been buying hand over fist, based on Robinhood's leaderboard, is e-commerce stock Amazon (NASDAQ: AMZN).
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Apple A second stock retail investors have been buying hand over fist is the largest publicly traded company in the U.S., Apple (NASDAQ: AAPL). Tesla Despite all the hoopla about "meme stocks," electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) is the most widely held stock among retail investors. Amazon The third stock retail investors have been buying hand over fist, based on Robinhood's leaderboard, is e-commerce stock Amazon (NASDAQ: AMZN).
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Apple A second stock retail investors have been buying hand over fist is the largest publicly traded company in the U.S., Apple (NASDAQ: AAPL). Apple is the No. In March 2022, eMarketer issued a report estimating that Amazon would account for 39.5% of U.S. online retail sales for the year.
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16764.0
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2023-03-15 00:00:00 UTC
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Should You Invest in the Invesco DWA Technology Momentum ETF (PTF)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dwa-technology-momentum-etf-ptf-5
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nan
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nan
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The Invesco DWA Technology Momentum ETF (PTF) was launched on 10/12/2006, 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 are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $211.30 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 89.40% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC).
The top 10 holdings account for about 36.76% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Technology Momentum ETF return is roughly 9.54% so far, and is up about 3.51% over the last 12 months (as of 03/15/2023). PTF has traded between $101.47 and $145.28 in this past 52-week period.
The ETF has a beta of 1.22 and standard deviation of 38.97% for the trailing three-year period, making it a high risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Technology Momentum 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, PTF 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 $40.41 billion in assets, Vanguard Information Technology ETF has $43.35 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC) : 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, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : 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, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). 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 Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : 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, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Alternatives Invesco DWA Technology Momentum 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, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : 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 Invesco DWA Technology Momentum ETF (PTF) was launched on 10/12/2006, 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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16765.0
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2023-03-15 00:00:00 UTC
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Apple Stock: Bear vs. Bull
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-bear-vs.-bull-2
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nan
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nan
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In 2022, economic challenges led the Nasdaq Composite index to plunge 33% over 12 months. The sell-off led to countless tech and consumer-reliant companies suffering steep stock declines. However, Apple (NASDAQ: AAPL) remained one of the few companies to outperform the market, with its shares falling a somewhat more moderate 26.8% in the same period.
The tech titan's reputation as a reliable buy has led it to amass the largest market capitalization in the world at $2.4 trillion. As a result, there are a lot of bull arguments for Apple's stock. However, before adding the company to your portfolio, you should also be aware of its faults. Here are the bear and bull cases when it comes to Apple's stock.
Bear: Apple's reliance on China
Towards the end of 2022, a spike in COVID-19 cases in China led to production strains in factories, with Wall Street questioning Apple's reliance on the country for manufacturing, particularly for its iPhones. In fiscal 2022, the iPhone accounted for 52% of Apple's total revenue. So when it was revealed that Foxconn (or Hon Hai Precision Industry), which produces about 70% of all iPhones, could suffer production declines of up to 30% amid pandemic restrictions, Apple's stock fell almost 14% between Nov. 1 and Dec. 31 of last year.
The company's stock has since recovered 16% year to date as production has returned to over 90% capacity, and Apple has made moves to exit China in the coming years, increasing production in countries like India. In fact, Bloomberg revealed on March 3 that Foxconn plans to invest $700 million in the South Asian country as it works to speed up manufacturing for Apple products.
While it is promising that Apple is taking the necessary steps to move production out of China, there is still a looming threat to its chips. The company's sole chip supplier for all its products is Taiwan Semiconductor Manufacturing Company, the biggest chip manufacturer in the world, with over half of theglobal marketshare.
As a result, the increasing threat that China could invade Taiwan puts a crucial part of Apple's business at risk. However, the upside is that TSMC is currently building semiconductor factories in Arizona, with chip production scheduled to begin in 2024. Additionally, Apple CEO Tim Cook confirmed in December 2022 that the company would be buying chips from the Arizona plant.
Bull: A past of reliable growth and a bright digital future
Apple may have put too many eggs in China's basket. However, it's positive that the wheels are in motion to rectify the situation. Meanwhile, its dominating position in tech means it has the cash to invest heavily in diversifying its production, decrease its reliance on China, and continue funding its growth. As seen in the table below, as of Dec. 30, Apple reported the most free cash flow among the five biggest names in tech.
Data by YCharts
Apple's stock has risen 234% over the last five years, and 892% in the past decade. The continuous growth has come alongside annual revenue, which has climbed 48% to $394.3 billion since 2018, with operating income soaring 68% to $119.4 billion. The company is home to immensely popular products and services that have produced nearly unparalleled brand loyalty.
In addition to improving its product manufacturing, Apple is swiftly expanding its digital services business, its second-largest segment, which will diversify its revenue and allow it to lean less on products. Subscription-based platforms such as Apple Music, TV+, iCloud, and more saw revenue in the company's services segment rise 14% year over year to $78.1 billion in fiscal 2022, double the iPhone's growth. The services segment's profit margin also came in at an impressive 71.7%, compared to products' profit margin of 36.3%.
Apple's current dependence on China is concerning. However, it's taking the necessary steps to improve the problem going forward, and it has the funds to do so. Meanwhile, its booming services business only strengthens its long-term outlook. As a result, the bulls win this one, with Apple's stock an excellent long-term investment.
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
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Apple (NASDAQ: AAPL) remained one of the few companies to outperform the market, with its shares falling a somewhat more moderate 26.8% in the same period. So when it was revealed that Foxconn (or Hon Hai Precision Industry), which produces about 70% of all iPhones, could suffer production declines of up to 30% amid pandemic restrictions, Apple's stock fell almost 14% between Nov. 1 and Dec. 31 of last year. In fact, Bloomberg revealed on March 3 that Foxconn plans to invest $700 million in the South Asian country as it works to speed up manufacturing for Apple products.
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However, Apple (NASDAQ: AAPL) remained one of the few companies to outperform the market, with its shares falling a somewhat more moderate 26.8% in the same period. The company's sole chip supplier for all its products is Taiwan Semiconductor Manufacturing Company, the biggest chip manufacturer in the world, with over half of theglobal marketshare. Subscription-based platforms such as Apple Music, TV+, iCloud, and more saw revenue in the company's services segment rise 14% year over year to $78.1 billion in fiscal 2022, double the iPhone's growth.
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However, Apple (NASDAQ: AAPL) remained one of the few companies to outperform the market, with its shares falling a somewhat more moderate 26.8% in the same period. Bear: Apple's reliance on China Towards the end of 2022, a spike in COVID-19 cases in China led to production strains in factories, with Wall Street questioning Apple's reliance on the country for manufacturing, particularly for its iPhones. The company's stock has since recovered 16% year to date as production has returned to over 90% capacity, and Apple has made moves to exit China in the coming years, increasing production in countries like India.
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However, Apple (NASDAQ: AAPL) remained one of the few companies to outperform the market, with its shares falling a somewhat more moderate 26.8% in the same period. In addition to improving its product manufacturing, Apple is swiftly expanding its digital services business, its second-largest segment, which will diversify its revenue and allow it to lean less on products. Subscription-based platforms such as Apple Music, TV+, iCloud, and more saw revenue in the company's services segment rise 14% year over year to $78.1 billion in fiscal 2022, double the iPhone's growth.
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16766.0
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2023-03-15 00:00:00 UTC
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Apple supplier Foxconn's Q4 profit falls 10% y/y, in line with forecasts
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconns-q4-profit-falls-10-y-y-in-line-with-forecasts
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nan
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nan
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TAIPEI, March 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Wednesday a 10% fall in fourth-quarter net profit from a year earlier, as production at its biggest iPhone factory was disrupted by China's strict COVID-19 rules.
The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the October-December quarter fell to T$40 billion ($1.31 billion) from T$44.4 billion in the same period the previous year.
It was in line with an average forecast of T$39.98 billion profit by 13 analysts, according to Refinitiv.
($1 = 30.5870 Taiwan dollars)
(Reporting by Faith Hung and Yimou Lee; Writing by Ben Blanchard; Editing by Anne Marie Roantree and Tom Hogue)
((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 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Wednesday a 10% fall in fourth-quarter net profit from a year earlier, as production at its biggest iPhone factory was disrupted by China's strict COVID-19 rules. It was in line with an average forecast of T$39.98 billion profit by 13 analysts, according to Refinitiv. ($1 = 30.5870 Taiwan dollars) (Reporting by Faith Hung and Yimou Lee; Writing by Ben Blanchard; Editing by Anne Marie Roantree and Tom Hogue) ((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 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Wednesday a 10% fall in fourth-quarter net profit from a year earlier, as production at its biggest iPhone factory was disrupted by China's strict COVID-19 rules. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the October-December quarter fell to T$40 billion ($1.31 billion) from T$44.4 billion in the same period the previous year. It was in line with an average forecast of T$39.98 billion profit by 13 analysts, according to Refinitiv.
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TAIPEI, March 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Wednesday a 10% fall in fourth-quarter net profit from a year earlier, as production at its biggest iPhone factory was disrupted by China's strict COVID-19 rules. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the October-December quarter fell to T$40 billion ($1.31 billion) from T$44.4 billion in the same period the previous year. ($1 = 30.5870 Taiwan dollars) (Reporting by Faith Hung and Yimou Lee; Writing by Ben Blanchard; Editing by Anne Marie Roantree and Tom Hogue) ((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 15 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Wednesday a 10% fall in fourth-quarter net profit from a year earlier, as production at its biggest iPhone factory was disrupted by China's strict COVID-19 rules. The Taiwanese company, which is the world's largest contract electronics maker, said net profit for the October-December quarter fell to T$40 billion ($1.31 billion) from T$44.4 billion in the same period the previous year. It was in line with an average forecast of T$39.98 billion profit by 13 analysts, according to Refinitiv.
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16767.0
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2023-03-15 00:00:00 UTC
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India plans new security testing for smartphones, crackdown on pre-installed apps
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AAPL
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https://www.nasdaq.com/articles/india-plans-new-security-testing-for-smartphones-crackdown-on-pre-installed-apps
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nan
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nan
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By Munsif Vengattil and Aditya Kalra
NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters.
The plan for new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O.
India's IT ministry is considering these rules amid concerns about spying and abuse of user data, said a senior government official, one of the two people who spoke to Reuters on condition of anonymity as the information is not yet public.
"Pre-installed apps can be a weak security point and we want to ensure no foreign nations, including China, are exploiting it. It's a matter of national security," the official added.
Chinese manufacturers account for more than half of all smartphone sales in India.
India's minister for state for IT, Rajeev Chandrasekhar, however, said the news was "plain wrong" and that "there is no "security testing" or "crackdown" as story suggests".
He added, in a post on Twitter, that there was an ongoing consultation between the government and the industry.
He did not elaborate.
India has ramped up scrutiny of Chinese businesses since a 2020 border clash between the neighbours, banning more than 300 Chinese apps, including TikTok. It has also intensified scrutiny of investments by Chinese firms.
Globally too, many nations have imposed restrictions on the use of technology from Chinese firms like Huawei HWT.UL and Hikvision 002415.SZ on fears Beijing could use them to spy on foreign citizens. China denies these allegations.
Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
Under the new rules, smartphone makers will have to provide an uninstall option and new models will be checked for compliance by a lab authorized by the Bureau of Indian Standards agency, the two people with knowledge of the plan said.
The government is also considering mandating screening of every major operating system update before it is rolled out to consumers, one of the people said.
Reuters was first to report the deliberations on Tuesday.
A Feb. 8 confidential government record of an IT ministry meeting, seen by Reuters, states: "Majority of smartphones used in India are having pre-installed Apps/Bloatware which poses serious privacy/information security issue(s)".
The closed-door meeting was attended by representatives from Xiaomi, Samsung, Apple and Vivo, the meeting record shows.
The government has decided to give smartphone makers a year to comply once the rule comes into effect, the date for which has not been fixed yet, the document added.
The companies did not respond to a request for comment.
'MASSIVE HINDRANCE'
India's fast-growing smartphone market is dominated by Chinese players. Xiaomi and BBK Electronics' Vivo and Oppo account for 47% of total sales, Counterpoint data shows. South Korea's Samsung has a 20% share and Apple has 3%.
While European Union regulations require allowing removal of pre-installed apps, it does not have a screening mechanism to check for compliance like India is considering.
An industry executive said some pre-installed apps like the camera are critical to user experience and the government must make a distinction between these and non-essential ones when imposing screening rules.
Smartphone players often sell their devices with proprietary apps, but also sometimes pre-install others with which they have monetisation agreements.
The other worry is more testing could prolong approval timelines for smartphones, a second industry executive said. Currently it takes about 21 weeks for a smartphone and its parts to be tested by the government agency for safety compliance.
"It's a massive hindrance to a company's go-to market strategy," the executive said.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Editing by Himani Sarkar)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The plan for new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. India's IT ministry is considering these rules amid concerns about spying and abuse of user data, said a senior government official, one of the two people who spoke to Reuters on condition of anonymity as the information is not yet public. Under the new rules, smartphone makers will have to provide an uninstall option and new models will be checked for compliance by a lab authorized by the Bureau of Indian Standards agency, the two people with knowledge of the plan said.
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The plan for new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
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The plan for new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
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The plan for new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. A Feb. 8 confidential government record of an IT ministry meeting, seen by Reuters, states: "Majority of smartphones used in India are having pre-installed Apps/Bloatware which poses serious privacy/information security issue(s)".
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16768.0
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2023-03-15 00:00:00 UTC
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2 Roaring Stocks to Hold for the Next 20 Years
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AAPL
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https://www.nasdaq.com/articles/2-roaring-stocks-to-hold-for-the-next-20-years
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nan
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nan
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The ever-evolving nature of the tech industry has made it one of the best places to find solid growth stocks you can hold for decades. While the sector can be volatile at times -- macroeconomic headwinds led the Nasdaq-100 Technology Sector index to plunge 40% last year -- those who held on saw these stocks start to rise again in 2023.
Since the start of the year, the potential of high-growth industries, such as artificial intelligence (AI) and virtual/augmented reality (VR/AR), has sent a number of stocks trending up. The companies in these markets are effectively building the future, making their stocks excellent investments to hold indefinitely.
Here are two roaring stocks to hold for the next 20 years.
Apple
Apple (NASDAQ: AAPL) shares have risen 16% since Jan. 1, with reports the company plans to release a mixed-reality headset this year, rallying investors. The growth is consistent with the company's long-term development, which has seen its stock rise 232% in the last five years and 887% in the last decade.
The tech giant's expected venture into VR and AR is a compelling move for its future for two reasons: first, the lucrative long-term potential of the markets and, second, Apple's past success when entering new industries.
According to Grand View Research, the virtual-reality market was worth $21.8 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 15% through 2030. Meanwhile, the augmented reality market is expected to grow at a CAGR of 40.9% in the same period after being valued at $25.3 billion in 2021.
As a result, Apple has much to gain by introducing its own VR/AR device.
A Bloomberg report in late January stated that Apple's coming headset will feature VR and AR capabilities alongside an iOS-like interface, differentiating it from other popular headsets, such as the Meta Quest 2 and Sony's PlayStation VR 2, which are exclusively VR.
Moreover, Apple's past has given it a reputation for being uniquely talented at entering new markets. After introducing its custom versions, the company quickly rose to dominance in industries such as smartphones, tablets, Bluetooth headphones, and smartwatches.
In fact, the first AirPods were launched in 2016, and by 2019, the headphones' $8 billion in yearly revenue meant, as a stand-alone business, it would have ranked No. 384 on the Fortune 500.
Consistent long-term growth alongside a venture into a lucrative market makes Apple's stock a stellar buy to hold for the next 20 years.
Advanced Micro Devices
Since Jan. 1, shares of AMD (NASDAQ: AMD) have risen 27% as Wall Street grows optimistic about the company's prospects in data centers and artificial intelligence. After a challenging 2022, when the stock plunged 55%, the start of a recovery is promising for its future.
AMD suffered in 2022 from steep declines in the PC market. However, the company continues to offer substantial long-term gains, with its stock up 615% over the last five years and over 3,000% in the last 10 years. AMD's stellar growth has come as its custom-designed computing components, such as processors and graphics processing units (GPUs), have become crucial to several high-growth industries.
Markets like cloud computing and artificial intelligence (AI) are actively turning to companies like AMD to power their platforms. As a result, AMD's stock will likely flourish over the next 20 years as these industries continue developing.
The AI market was valued at $137 billion in 2022 and is forecast to develop at a CAGR of 37.3% until at least 2030. Meanwhile, according to research from TrendForce, the AI program ChatGPT is expected to increase demand for GPUs from 20,000 in 2020 to 30,000. Nvidia is the primary GPU supplier for ChatGPT. However, numerous other companies are working on competing programs to the advanced chatbot, which could substantially increase sales for AMD.
AMD's stock has consistently risen since the start of 2023 after providing stellar growth over the last five and 10 years. The company's hardware gives it solid positions in multiple high-growth markets, making its stock an excellent investment to hold indefinitely.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, and Nvidia. The Motley Fool recommends Foot Locker and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) shares have risen 16% since Jan. 1, with reports the company plans to release a mixed-reality headset this year, rallying investors. The tech giant's expected venture into VR and AR is a compelling move for its future for two reasons: first, the lucrative long-term potential of the markets and, second, Apple's past success when entering new industries. Consistent long-term growth alongside a venture into a lucrative market makes Apple's stock a stellar buy to hold for the next 20 years.
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Apple Apple (NASDAQ: AAPL) shares have risen 16% since Jan. 1, with reports the company plans to release a mixed-reality headset this year, rallying investors. Consistent long-term growth alongside a venture into a lucrative market makes Apple's stock a stellar buy to hold for the next 20 years. The company's hardware gives it solid positions in multiple high-growth markets, making its stock an excellent investment to hold indefinitely.
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Apple Apple (NASDAQ: AAPL) shares have risen 16% since Jan. 1, with reports the company plans to release a mixed-reality headset this year, rallying investors. Consistent long-term growth alongside a venture into a lucrative market makes Apple's stock a stellar buy to hold for the next 20 years. However, the company continues to offer substantial long-term gains, with its stock up 615% over the last five years and over 3,000% in the last 10 years.
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Apple Apple (NASDAQ: AAPL) shares have risen 16% since Jan. 1, with reports the company plans to release a mixed-reality headset this year, rallying investors. The growth is consistent with the company's long-term development, which has seen its stock rise 232% in the last five years and 887% in the last decade. Consistent long-term growth alongside a venture into a lucrative market makes Apple's stock a stellar buy to hold for the next 20 years.
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16769.0
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2023-03-14 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-2
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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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16770.0
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2023-03-14 00:00:00 UTC
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US STOCKS-Wall St gains as inflation data bolsters bets of smaller rate hike
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-as-inflation-data-bolsters-bets-of-smaller-rate-hike
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nan
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nan
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By Shubham Batra and Amruta Khandekar
March 14 (Reuters) - Wall Street's main indexes climbed on Tuesday after consumer prices in the world's largest economy rose in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its next meeting.
Data showed that U.S. Consumer Price Index (CPI) rose 0.4% in February versus 0.5% a month ago. On a yearly basis, it rose 6.0% last month, compared with 6.4% in the previous month.
Excluding the volatile food and energy components, the CPI increased 0.5% after rising 0.4% in January. In the 12 months through February, the so-called core CPI gained 5.5% after advancing 5.6% in January.
Traders held on to bets of a 25-basis-point rate hike at the Fed's next meeting in March, with odds of a pause in hikes slipping a bit to 17%. FEDWATCH
Stocks have been hammered in the past few days following the collapse of SVB Financial Group SIVB.O and peer Signature Bank SBNY.O and on fears of risks to other banks from sharp interest rate hikes by the Fed.
Investors are hoping that the threat of a financial crisis will force the U.S central bank to ease up on monetary tightening.
"In light of the weekend's events, I don't think it could have been a more perfect number. It's showing that inflation is trending the way that the Fed has kind of expected and wanted," said Kim Forrest, chief investment officer, Bokeh Capital Partners, Pittsburgh.
"The Fed's not going to be super aggressive and hurt banks more by raising interest rates."
Regional bank stocks rebounded after suffering double-digit losses over the past few days, with the KBW Regional Banking index .KRX up 7.7%.
First Republic Bank FRC.N jumped 52.7% before trading in its shares was halted for volatility. Shares of peer Western Alliance Bancorp WAL.N were also halted.
The S&P 500 banking index .SPXBK rose 3.9% after recording its biggest one-day percentage drop since June 2020 in the previous session.
Meta Platforms Inc META.O rose 5.8% after the Facebook-parent said it would cut 10,000 jobs in a second round of mass layoffs.
Other major Big Tech and growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4% in early trade.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 305.98 points, or 0.96%, at 32,125.12, the S&P 500 .SPX was up 57.28 points, or 1.49%, at 3,913.04, and the Nasdaq Composite .IXIC was up 193.90 points, or 1.73%, at 11,382.74.
Shares of ride-hailing companies Uber Technologies Inc UBER.N and Lyft Inc LYFT.O rose 7% and 8.6% respectively, after a California state court revived a ballot measure allowing app-based services to treat drivers as independent contractors rather than employees.
United Airlines Holdings Inc UAL.O fell 6.2% after the U.S. carrier on Monday forecast an unexpected loss in the current quarter.
Advancing issues outnumbered decliners by a 7.92-to-1 ratio on the NYSE and by a 4.87-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and no new lows, while the Nasdaq recorded 9 new highs and 36 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; additional reporting by Shashwat Chauhan, Editing by Saumyadeb Chakrabarty and Uttaresh Venkateshwaran)
((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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Other major Big Tech and growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4% in early trade. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Wall Street's main indexes climbed on Tuesday after consumer prices in the world's largest economy rose in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its next meeting. It's showing that inflation is trending the way that the Fed has kind of expected and wanted," said Kim Forrest, chief investment officer, Bokeh Capital Partners, Pittsburgh.
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Other major Big Tech and growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4% in early trade. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Wall Street's main indexes climbed on Tuesday after consumer prices in the world's largest economy rose in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its next meeting. Data showed that U.S. Consumer Price Index (CPI) rose 0.4% in February versus 0.5% a month ago.
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Other major Big Tech and growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4% in early trade. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Wall Street's main indexes climbed on Tuesday after consumer prices in the world's largest economy rose in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its next meeting. FEDWATCH Stocks have been hammered in the past few days following the collapse of SVB Financial Group SIVB.O and peer Signature Bank SBNY.O and on fears of risks to other banks from sharp interest rate hikes by the Fed.
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Other major Big Tech and growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4% in early trade. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Wall Street's main indexes climbed on Tuesday after consumer prices in the world's largest economy rose in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its next meeting. FEDWATCH Stocks have been hammered in the past few days following the collapse of SVB Financial Group SIVB.O and peer Signature Bank SBNY.O and on fears of risks to other banks from sharp interest rate hikes by the Fed.
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2023-03-14 00:00:00 UTC
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The 10 Best Stocks to Buy in March 2023
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AAPL
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https://www.nasdaq.com/articles/the-10-best-stocks-to-buy-in-march-2023
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Today, I share the 10 best stocks to buy in March 2023, which I believe have significant upside for long-term investors. I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks.
*Stock prices used were the morning prices of March 14, 2023. The video was published on March 14, 2023.
10 stocks we like better than Snowflake
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 Snowflake wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Advanced Micro Devices, Alphabet, Amazon.com, Apple, Axcelis Technologies, Indie Semiconductor, Microsoft, Nvidia, SiTime, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, SiTime, Snowflake, 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.
Eric Cuka 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. Eric Cuka has positions in Advanced Micro Devices, Alphabet, Amazon.com, Apple, Axcelis Technologies, Indie Semiconductor, Microsoft, Nvidia, SiTime, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, SiTime, Snowflake, and Tesla.
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Eric Cuka has positions in Advanced Micro Devices, Alphabet, Amazon.com, Apple, Axcelis Technologies, Indie Semiconductor, Microsoft, Nvidia, SiTime, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, SiTime, Snowflake, 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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I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks. See the 10 stocks *Stock Advisor returns as of March 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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That's right -- they think these 10 stocks are even better buys. Eric Cuka has positions in Advanced Micro Devices, Alphabet, Amazon.com, Apple, Axcelis Technologies, Indie Semiconductor, Microsoft, Nvidia, SiTime, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, SiTime, Snowflake, and Tesla.
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2023-03-14 00:00:00 UTC
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Alphabet (GOOGL) to Boost Car Infotainment Reach With Porsche
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https://www.nasdaq.com/articles/alphabet-googl-to-boost-car-infotainment-reach-with-porsche
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Alphabet’s GOOGL Google continues to gain momentum in the car infotainment space and solid traction among the automakers on the back of its robust technology and user-friendly apps.
This is evident from the latest discussions between Google and Porsche. Reportedly, the latter is in talks to integrate the former’s software into the car cockpit.
Notably, the deal would boost the adoption rate of Google Automotive Services.
Further, it would give Porsche’s customers access to Google apps like Google Maps and Google Assistant. Car owners won’t be required to connect their vehicles to their Android phones at all.
Hence, the user base of these apps is expected to expand if the underlined deal strikes.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Other Noteworthy Deals
Apart from the latest talks with Porsche, Google has won remarkable deals from well-recognized car makers.
General Motors and Ford F have already incorporated Google software into their vehicles’ infotainment systems through Google Automotive Services. Moreover, Ford is set to roll out several cars with infotainment systems powered by Android this year.
Further, Volvo has integrated Google infotainment systems into its vehicles. Its cross-country models like XC60, S90, V90 and V90 feature built-in Android-powered infotainment systems.
Growth Prospects
Per the latest report from Polaris Market Research, the in-vehicle infotainment market is expected to register a CAGR of 10.9% between 2022 and 2030.
According to a report from Straits Research, the market is anticipated to hit $50.64 billion by 2031, registering a CAGR of 10.3% between 2023 and 2031.
Further, a Grand View Research report indicates that the global automotive infotainment system market is expected to witness a CAGR of 9.7% between 2023 and 2030.
Per a report from Mordor Intelligence, this market is likely to reach $36.6 billion by 2028 with a CAGR of 6.8% between 2023 and 2028.
Google’s winning deals with auto makers, along with its user-friendly Android operating system and robust vehicle infotainment software, position it well to capitalize on the abovementioned growth prospects.
Moreover, its expanding footprint in this promising market is expected to aid its parent company, Alphabet, in winning investors’ confidence in the near term.
Notably, GOOGL has lost 27.6% over a year against the industry’s loss of 26.9%.
Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple AAPL, which is also leaving no stone unturned to bolster its presence in this booming market.
Notably, Apple is gaining momentum on the back of its advanced software for vehicles, known as CarPlay, which has evolved from an infotainment system to an all-round in-car software solution.
Recently, Volvo incorporated CarPlay into its new Android powered vehicles. This remains a positive.
Zacks Rank & a Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the broader technology sector is Arista Networks ANET, which sports a Zacks Rank #1 at present.
Arista Networks shares have gained 27.4% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
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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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Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple AAPL, which is also leaving no stone unturned to bolster its presence in this booming market. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Google’s winning deals with auto makers, along with its user-friendly Android operating system and robust vehicle infotainment software, position it well to capitalize on the abovementioned growth prospects.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple AAPL, which is also leaving no stone unturned to bolster its presence in this booming market. General Motors and Ford F have already incorporated Google software into their vehicles’ infotainment systems through Google Automotive Services.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple AAPL, which is also leaving no stone unturned to bolster its presence in this booming market. General Motors and Ford F have already incorporated Google software into their vehicles’ infotainment systems through Google Automotive Services.
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Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple AAPL, which is also leaving no stone unturned to bolster its presence in this booming market. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, Volvo has integrated Google infotainment systems into its vehicles.
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16773.0
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2023-03-14 00:00:00 UTC
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US STOCKS-Wall St rallies on rebound in banks, small rate-hike bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-on-rebound-in-banks-small-rate-hike-bets
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By Shubham Batra and Amruta Khandekar
March 14 (Reuters) - Battered U.S. bank shares rebounded on Tuesday, driving Wall Street's main indexes higher, while a slight slowdown in consumer price growthprompted investors to price in a smaller rate hike by the Federal Reserve in March.
Data showedU.S. Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January as Americans faced persistently higher costs for rents and food. On a yearly basis, the CPI rose 6% in February, compared with 6.4% the previous month.
Excluding the volatile food and energy components, the CPI increased 0.5% after rising 0.4% in January. In the 12 months through February, the so-called core CPI gained 5.5% after advancing 5.6% in January.
The yield on the two-year Treasury notes, which best reflects interest rate expectations, rose to 4.3% after the data, with traders holding on to bets of a 25-basis-point rate hike in March.
The odds of a pause in rate hikes slipped to 17% for March. FEDWATCH
Stocks have been hammered in the past few days after the collapse of SVB Financial Group SIVB.O and peer Signature Bank SBNY.O sent shockwaves through the banking sector.
Investors are now hoping that the Fed will ease up on its aggressive monetary policy stance to prevent a liquidity crisis.
"While CPI continues the trend lower for the eighth consecutive month now, it still is remarkably high by the Fed's standards," said Charles Hepworth, investment director, GAM Investments.
"Therefore, continued hawkishness should still be warranted, or at least that's what the Fed will likely want to state."
Regional bank stocks rebounded after suffering double-digit losses over the past few days, with the KBW Regional Banking index .KRX up 7.7%.
First Republic Bank FRC.N jumped 49.5%, while shares of peer Western Alliance Bancorp WAL.N were up 40.7%. Trading in shares of both banks was halted multiple times due to volatility.
Meta Platforms Inc META.O rose 6.1% after the Facebook parent said it would cut 10,000 jobs in a second round of mass layoffs.
Other major rate-sensitive growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4%.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 422.41 points, or 1.33%, at 32,241.55, the S&P 500 .SPX was up 75.20 points, or 1.95%, at 3,930.96, and the Nasdaq Composite .IXIC was up 263.75 points, or 2.36%, at 11,452.59.
Shares of Uber Technologies Inc UBER.N and Lyft Inc LYFT.O rose 5.6% and 3% respectively, after a California state court revived a ballot measure allowing app-based services to treat drivers as independent contractors rather than employees.
United Airlines Holdings Inc UAL.O fell 4.6% on a downbeat first-quarter forecast.
Advancing issues outnumbered decliners by a 6.05-to-1 ratio on the NYSE and by a 3.52-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and five new lows, while the Nasdaq recorded 18 new highs and 79 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; additional reporting by Shashwat Chauhan, Editing by Saumyadeb Chakrabarty, Uttaresh Venkateshwaran and Anil D'Silva)
((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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Other major rate-sensitive growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4%. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Battered U.S. bank shares rebounded on Tuesday, driving Wall Street's main indexes higher, while a slight slowdown in consumer price growthprompted investors to price in a smaller rate hike by the Federal Reserve in March. Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January as Americans faced persistently higher costs for rents and food.
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Other major rate-sensitive growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4%. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Battered U.S. bank shares rebounded on Tuesday, driving Wall Street's main indexes higher, while a slight slowdown in consumer price growthprompted investors to price in a smaller rate hike by the Federal Reserve in March. Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January as Americans faced persistently higher costs for rents and food.
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Other major rate-sensitive growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4%. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Battered U.S. bank shares rebounded on Tuesday, driving Wall Street's main indexes higher, while a slight slowdown in consumer price growthprompted investors to price in a smaller rate hike by the Federal Reserve in March. Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January as Americans faced persistently higher costs for rents and food.
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Other major rate-sensitive growth stocks such as Apple AAPL.O, Alphabet Inc GOOGL.O and Tesla TSLA.O rose between 1% and 4%. By Shubham Batra and Amruta Khandekar March 14 (Reuters) - Battered U.S. bank shares rebounded on Tuesday, driving Wall Street's main indexes higher, while a slight slowdown in consumer price growthprompted investors to price in a smaller rate hike by the Federal Reserve in March. The yield on the two-year Treasury notes, which best reflects interest rate expectations, rose to 4.3% after the data, with traders holding on to bets of a 25-basis-point rate hike in March.
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16774.0
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2023-03-14 00:00:00 UTC
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3 Stocks that Warren Buffett Believes Are the Future
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https://www.nasdaq.com/articles/3-stocks-that-warren-buffett-believes-are-the-future
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett, known as the “Oracle of Omaha,” is one of the most successful investors in the world. He has built his fortune through savvy investments in various industries, and his approach to investing has been emulated by many. Buffett is known for his long-term approach to investing, seeking out companies with substantial competitive advantages and stable, predictable earnings. Recently, he has expressed a particular interest in technology stocks, as he believes they are the future of many industries.
In this article, we will look at three stocks that Warren Buffett believes are poised for success in the years to come. These stocks have been carefully selected based on their potential for growth, competitive advantages, and ability to deliver consistent returns over the long term.
Whether you’re a seasoned investor or just starting, these Warren Buffett stocks are worth considering for your portfolio.
AAPL Apple $152.83
CVX Chevron $161.51
KO Coca-Cola $60.32
Warren Buffett Stocks: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. The stake, now valued at roughly $138 billion, represents about 41% of the total value of Berkshire’s stock portfolio.
Furthermore, many investors may need to be aware that Buffett has a personal portfolio where the proportion of Apple stocks is even more significant. In a recent report, Berkshire Hathaway possesses a specialized investment services company through its General Reinsurance subsidiary. This business, called New England Asset Management, manages more than $6.3 billion in assets.
On Feb. 15, Berkshire Hathaway Inc. disclosed various adjustments to its stock portfolio in paperwork submitted to the Securities and Exchange Commission. Given Buffett’s remarkably successful investment track record over the years, numerous investors closely track the company’s actions.
In more recent news, a bullish call from investment bank Goldman Sachs (NYSE:GS) has led to renewed interest in Apple stock. The banking giant has predicted that the technology giant has over 30% growth potential and has set a $199 price target for Apple’s stock. As a result, numerous investors are keen to acquire shares in the iPhone manufacturer.
As always, Warren Buffet knows what he’s doing.
Chevron (CVX)
Source: tishomir / Shutterstock.com
Chevron (NYSE:CVX) is among the leading oil majors, renowned for its impressive history of providing favorable returns to its shareholders. The company achieved unprecedented profits in the previous year, subsequently distributed among its shareholders.
In March, the company augmented its dividends by 6% to $1.50 and recently unveiled a new $75 billion share buyback program, which will commence in April. Given the favorable operating conditions, it’s reasonable to believe that this Dividend King will continue to benefit its shareholders and potentially even exceed expectations.
Chevron recently conducted its Investor Day, reaffirming its dedication to providing exceptional returns to its shareholders by utilizing its robust balance sheet, efficient capital allocation, and complete asset portfolio. Suppose Brent crude was to maintain an average price of $70 per barrel over the next five years. In that case, Chevron could pursue accelerated increases in its dividend and repurchase 25% of its outstanding shares.
By monitoring the portfolio of Buffett’s company, Berkshire Hathaway, it’s evident that he’s following his recommendations. The investment company has invested significantly in the energy and oil corporation Chevron. Although the firm had already made a substantial investment in Chevron (with a $4.5 billion stake in 2021), the stock currently represents its fourth-largest public holding, valued at $25.9 billion today.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
In 1988, Warren Buffett acquired over $1 billion worth of shares of The Coca-Cola Company (NYSE:KO), accounting for 6.2% of the company’s total shares. This investment also became the biggest holding in Berkshire Hathaway Inc.’s portfolio then.
As of September 2022, Coca-Cola still represents one of the most significant holdings of Berkshire Hathaway, with the holding company possessing a stake of more than $25.4 billion, which corresponds to 9.2% of the company’s worth.
Buffett is known for his ability to create wealth for himself and his investors. His strategy involves identifying the critical competitive advantages of a business that can be sustained for an extended period, investing in it, and holding on to the stock for years. Buffett’s famous quote, “The best time to buy is whenever you have money, and the best time to sell is never,” illustrates his long-term investment philosophy.
Coca-Cola recently provided investors with positive news regarding its 2023 fiscal year. The company ended 2022 on a high note, with sales growth increasing and profitability remaining stable. This has given investors reason to feel optimistic about the future of the beverage giant.
Due to its positive short-term outlook, Coca-Cola is expected to provide reasonable returns to its shareholders this year. Even though the company’s organic sales trend is predicted to slow down slightly from last year’s 16% increase, and it is still likely to be between 7% and 8%, higher than PepsiCo’s projection of a 6% increase.
On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Stocks that Warren Buffett Believes Are the Future appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $152.83 CVX Chevron $161.51 KO Coca-Cola $60.32 Warren Buffett Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. In more recent news, a bullish call from investment bank Goldman Sachs (NYSE:GS) has led to renewed interest in Apple stock.
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AAPL Apple $152.83 CVX Chevron $161.51 KO Coca-Cola $60.32 Warren Buffett Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. Although the firm had already made a substantial investment in Chevron (with a $4.5 billion stake in 2021), the stock currently represents its fourth-largest public holding, valued at $25.9 billion today.
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AAPL Apple $152.83 CVX Chevron $161.51 KO Coca-Cola $60.32 Warren Buffett Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. Coca-Cola (KO) Source: Fotazdymak / Shutterstock.com In 1988, Warren Buffett acquired over $1 billion worth of shares of The Coca-Cola Company (NYSE:KO), accounting for 6.2% of the company’s total shares.
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AAPL Apple $152.83 CVX Chevron $161.51 KO Coca-Cola $60.32 Warren Buffett Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. Whether you’re a seasoned investor or just starting, these Warren Buffett stocks are worth considering for your portfolio.
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2023-03-14 00:00:00 UTC
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Apple Rolls Out 'Shop With Specialist Over Video' To Buy IPhone Lineup
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https://www.nasdaq.com/articles/apple-rolls-out-shop-with-specialist-over-video-to-buy-iphone-lineup
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(RTTNews) - Apple, Inc. (AAPL) on Tuesday launched "Shop with a Specialist over Video," a new live shopping experience on apple.com for customers in the U.S. Shop with a Specialist over Video is available to customers in the U.S. from 7 a.m. to 7 p.m. PT every day on apple.com/shop/buy-iphone.
The live shopping option connects customers with a retail team member via a safe and secure, one-way video shopping session to shop the iPhone lineup, including iPhone 14 and iPhone 14 Plus, available today in an all-new yellow color.
With this new service, customers can browse the latest models, explore new features, and learn about Apple Trade In offers, carrier deals, switching to iOS, and various financing options. During the session, an Apple team member will be on camera sharing their screen, but they will not be able to see the customer.
The views and 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 launched "Shop with a Specialist over Video," a new live shopping experience on apple.com for customers in the U.S. Shop with a Specialist over Video is available to customers in the U.S. from 7 a.m. to 7 p.m. PT every day on apple.com/shop/buy-iphone. The live shopping option connects customers with a retail team member via a safe and secure, one-way video shopping session to shop the iPhone lineup, including iPhone 14 and iPhone 14 Plus, available today in an all-new yellow color. With this new service, customers can browse the latest models, explore new features, and learn about Apple Trade In offers, carrier deals, switching to iOS, and various financing options.
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(RTTNews) - Apple, Inc. (AAPL) on Tuesday launched "Shop with a Specialist over Video," a new live shopping experience on apple.com for customers in the U.S. Shop with a Specialist over Video is available to customers in the U.S. from 7 a.m. to 7 p.m. PT every day on apple.com/shop/buy-iphone. The live shopping option connects customers with a retail team member via a safe and secure, one-way video shopping session to shop the iPhone lineup, including iPhone 14 and iPhone 14 Plus, available today in an all-new yellow color. During the session, an Apple team member will be on camera sharing their screen, but they will not be able to see the customer.
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(RTTNews) - Apple, Inc. (AAPL) on Tuesday launched "Shop with a Specialist over Video," a new live shopping experience on apple.com for customers in the U.S. Shop with a Specialist over Video is available to customers in the U.S. from 7 a.m. to 7 p.m. PT every day on apple.com/shop/buy-iphone. The live shopping option connects customers with a retail team member via a safe and secure, one-way video shopping session to shop the iPhone lineup, including iPhone 14 and iPhone 14 Plus, available today in an all-new yellow color. The views and 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 launched "Shop with a Specialist over Video," a new live shopping experience on apple.com for customers in the U.S. Shop with a Specialist over Video is available to customers in the U.S. from 7 a.m. to 7 p.m. PT every day on apple.com/shop/buy-iphone. The live shopping option connects customers with a retail team member via a safe and secure, one-way video shopping session to shop the iPhone lineup, including iPhone 14 and iPhone 14 Plus, available today in an all-new yellow color. With this new service, customers can browse the latest models, explore new features, and learn about Apple Trade In offers, carrier deals, switching to iOS, and various financing options.
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16776.0
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2023-03-14 00:00:00 UTC
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After Hours Most Active for Mar 14, 2023 : IEF, BG, SHV, PODD, AAPL, GOOG, F, AMZN, NRG, KO, TFC, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-14-2023-%3A-ief-bg-shv-podd-aapl-goog-f-amzn-nrg-ko-tfc-bac
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -3.62 to 12,196.17. The total After hours volume is currently 129,569,075 shares traded.
The following are the most active stocks for the after hours session:
iShares 7-10 Year Treasury Bond ETF (IEF) is -0.08 at $97.50, with 16,927,895 shares traded. This represents a 5.43% increase from its 52 Week Low.
Bunge Limited (BG) is -0.57 at $104.05, with 12,113,675 shares traded. As reported by Zacks, the current mean recommendation for BG is in the "buy range".
iShares Short Treasury Bond ETF (SHV) is -0.0062 at $110.19, with 9,643,624 shares traded. This represents a .42% increase from its 52 Week Low.
Insulet Corporation (PODD) is unchanged at $312.77, with 6,775,804 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.09. As reported by Zacks, the current mean recommendation for PODD is in the "buy range".
Apple Inc. (AAPL) is +0.01 at $152.60, with 2,719,586 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alphabet Inc. (GOOG) is -0.07 at $94.18, with 2,479,572 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Ford Motor Company (F) is -0.03 at $11.90, with 2,431,634 shares traded. F's current last sale is 85% of the target price of $14.
Amazon.com, Inc. (AMZN) is -0.14 at $94.74, with 2,423,402 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
NRG Energy, Inc. (NRG) is unchanged at $31.58, with 2,389,464 shares traded. NRG's current last sale is 77.02% of the target price of $41.
Coca-Cola Company (The) (KO) is unchanged at $60.03, with 2,261,049 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.64. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Truist Financial Corporation (TFC) is +0.19 at $32.07, with 1,732,006 shares traded. TFC's current last sale is 61.09% of the target price of $52.5.
Bank of America Corporation (BAC) is -0.03 at $28.73, with 1,566,096 shares traded. BAC's current last sale is 75.61% of the target price of $38.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.01 at $152.60, with 2,719,586 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 7-10 Year Treasury Bond ETF (IEF) is -0.08 at $97.50, with 16,927,895 shares traded.
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Apple Inc. (AAPL) is +0.01 at $152.60, with 2,719,586 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for BG is in the "buy range".
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Apple Inc. (AAPL) is +0.01 at $152.60, with 2,719,586 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 129,569,075 shares traded.
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Apple Inc. (AAPL) is +0.01 at $152.60, with 2,719,586 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -3.62 to 12,196.17.
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16777.0
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2023-03-14 00:00:00 UTC
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2 Best Software Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-best-software-stocks-to-buy-in-2023-and-beyond-1
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nan
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nan
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So far, 2023 has been an exceptional year for those investing in software stocks. Most companies operating in the technology sector have seen their valuations surge, as investor confidence returns to higher-growth segments of the market.
Of course, whether this trend continues for the remainder of the year, or if a sell-off awaits, remains the key question on the minds of most investors.
Indeed, many of the same headwinds that persisted last year haven't gone away. The Federal Reserve is still raising interest rates, putting a damper on the valuations of longer-duration assets. The yield curve remains severely inverted, signaling a potential recession could be on the horizon. And corporations everywhere are cutting costs, which doesn't bode well for many of the top enterprise-oriented software companies out there.
That said, there are a few software stocks I think are worth considering amid this indecisive price action in markets. Here are my top two picks for long-term investors to consider right now.
Constellation Software
Constellation Software (OTC: CNSWF) may not be on most investors' radar screens. This Canadian software company trades over the counter, and is therefore covered mainly by analysts from lesser-known Canadian banks.
However, Constellation Software is a $35 billion market cap software conglomerate I think is worth diving into. This company's focus over many years has been to acquire, develop, and manage vertical market software businesses. Constellation's industry-specific software solutions provide mission-critical services to public and private sector markets in Canada, the U.S., the U.K., and Europe.
Established in 1995, Constellation Software has become the go-to for businesses looking for reliable, innovative, and specialized software solutions. With its comprehensive offerings, it strives to stay ahead of the competition and maintain its status as a leader in its industry.
The four most recent analyst reports on Constellation Software are unanimous -- this company is a buy. The average price target on this stock suggests 25% upside over the next year.
Much of that bullish view comes from a number of acquisitions early this year, including Wide Orbit, which will be merged with one of the company's core divisions. Various spinoffs and other value-creating activities are also in the works, with Constellation remaining one of the best companies of its peer group in terms of aggregating software companies into its conglomerate model while spinning others out.
If Constellation is able to continue to improve the return on invested capital of its acquisitions over time, this is a growth-via-acquisition play in the software sector that should continue to provide impressive compounding over the long term. (One look at Constellation's long-term historical stock chart says it all.)
Microsoft
Perhaps the world's best-known software stock, Microsoft (NASDAQ: MSFT) remains a top pick of many long-term investors.
This mega-cap tech giant is among the most consistent growth stocks among its similarly sized peers. Compared to rival Apple, Microsoft's average revenue and earnings-per-share growth over the past five years (15.6% and 36.5%, respectively) are much more attractive. This is partly reflected in the company's slightly higher multiple, though I think the quality of Microsoft's earnings may be undervalued by the market right now.
Microsoft's core software business provides much steadier cash flows than many of its mega-cap tech peers, such as Apple. Whereas Apple's business is mainly focused on selling high-end discretionary consumer goods (along with high-margin services), Microsoft's essential monopoly on critical software spanning the enterprise and retail markets provides extremely steady cash-flow growth over time.
Additionally, Microsoft's 23%global marketshare in cloud computing is noteworthy. For those bullish on the future of the cloud, Azure is proving to be a formidable force, gaining 2 percentage points of market share over the past quarter, relative to rival Amazon, which leads the pack.
The company's recent results have been less than stellar, with Microsoft posting revenue growth of only 2% in its December quarter and providing a forecast that didn't impress investors. However, over the long term, the company is certainly moving in the right direction with respect to its core cloud business, with its cash flows anchored by its rock-solid software business.
That's not even touching on what most investors are fawning over when it comes to Microsoft right now: its massive investment in ChatGPT. The company's recent $10 billion investment in ChatGPT has spurred a flurry of interest in this stock, given the initial uptake from users in recent months. Notably, Microsoft has been moving quickly on integrating this technology into its suite, announcing just last week that its Azure OpenAI Service will provide ChatGPT functionality for corporate clients.
Software can be an exciting area to invest in
Both Constellation Software and Microsoft are solid long-term investments for those looking to diversify their portfolios in the software industry. These businesses are well-run, historically profitable behemoths in their respective niches. For growth investors with a long-term investing time horizon, there are few better options to consider in these current market conditions, in my view.
Sexier areas of technology will aways exist. Software in and of itself isn't an intriguing place many investors may spend a tremendous amount of time looking at. That said, for those looking for cash-flow stability and balance sheet strength, these two companies are worth diving into right now.
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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. Chris MacDonald has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Constellation Software, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Whereas Apple's business is mainly focused on selling high-end discretionary consumer goods (along with high-margin services), Microsoft's essential monopoly on critical software spanning the enterprise and retail markets provides extremely steady cash-flow growth over time. For those bullish on the future of the cloud, Azure is proving to be a formidable force, gaining 2 percentage points of market share over the past quarter, relative to rival Amazon, which leads the pack. Notably, Microsoft has been moving quickly on integrating this technology into its suite, announcing just last week that its Azure OpenAI Service will provide ChatGPT functionality for corporate clients.
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Microsoft Perhaps the world's best-known software stock, Microsoft (NASDAQ: MSFT) remains a top pick of many long-term investors. Microsoft's core software business provides much steadier cash flows than many of its mega-cap tech peers, such as Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Constellation Software Constellation Software (OTC: CNSWF) may not be on most investors' radar screens. Microsoft Perhaps the world's best-known software stock, Microsoft (NASDAQ: MSFT) remains a top pick of many long-term investors. Software can be an exciting area to invest in Both Constellation Software and Microsoft are solid long-term investments for those looking to diversify their portfolios in the software industry.
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If Constellation is able to continue to improve the return on invested capital of its acquisitions over time, this is a growth-via-acquisition play in the software sector that should continue to provide impressive compounding over the long term. For growth investors with a long-term investing time horizon, there are few better options to consider in these current market conditions, in my view. The Motley Fool has positions in and recommends Amazon.com, Apple, Constellation Software, and Microsoft.
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16778.0
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2023-03-14 00:00:00 UTC
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5 Reasons to Be Long Tech (Unexpected)
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AAPL
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https://www.nasdaq.com/articles/5-reasons-to-be-long-tech-unexpected
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nan
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nan
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Tech’s Bumpy Ride
Tech-focused investors have experienced a tumultuous few years. First, the Covid-19 pandemic forced the global economy to come to a standstill and crashed high-flying tech stocks such as Amazon AMZN, Alphabet GOOGL, and Meta Platforms META. Post-pandemic, investors such as Cathy Wood, who runs the Ark Innovation ETF ARKK, benefitted from tech growth being “brought forward” as companies adapted to the remote-centric economy. For example, popular video-conferencing company Zoom ZM saw shares catapult from $60 to $600.
Image Source: Zacks Investment Research
Fast forward to 2022, and tech stocks faced their next hurdle – pricey valuations coupled with the highest inflation rate in four decades. The toxic combination led to devasting returns of more than 30% in the Nasdaq 100 ETF QQQ and drawdowns of more than 90% in several individual equities.
What’s Next for Tech Stocks?
To look to the future, looking back at the past can often be helpful. Despite the many obstacles in U.S. equity markets over the past decade, tech returns have been phenomenal. For example, even with the tech debacle of 2022, the Nasdaq 100 ETF gained 321% over the past ten years.
Image Source: Zacks Investment Research
Through scare after scare and multiple black swan events, tech stocks continue to climb the proverbial “wall of worry”. Now, the space is experiencing yet another potential hurdle to climb over – the regional banking debacle that was sparked by the Silicon Valley Bank’s SIVB collapse. Today, I will provide 5 reasons why tech investors should look past the banking uncertainty and warm up to tech stocks.
1. Price & Volume is “Truth”: Investors should defer to the price and volume action over frightening headlines when in doubt. Why? Price and volume represent actual bets made by investors, while headlines represent rhetoric. Thus far in March, QQQ is only down ~1%, while the Russell 2000 Index ETF IWM is down nearly eight times as much. In other words, the market shows that the tech sector may not suffer the impact that the small cap space is currently experiencing. The QQQ is also finding support at its 200-week moving average – an area that marked major bottoms the past four visits.
Image Source: Zacks Investment Research
2. Fed Pivot Potential: A rising interest rate environment has been disastrous for tech stocks. The recent banking crisis may actually benefit tech stocks by providing liquidity through a relief in rate hikes. Fed fund futures now suggest that there is a slightly higher chance of no hike than a hike during the next Fed decision meeting.
3. Larger Tech to Suffer Less Impact: While, the collapse of Silicon Valley Bank spells trouble for start-ups, larger, cash rich companies such as Apple AAPL should suffer less of an impact.
4. Money Flow Out of Small Caps: Since regional banks and small caps are experiencing a large outflow of funds, institutional investors may look to reallocate capital to the tech sector.
5. Valuations Shrunk: Falling stock prices has led to attractive valuations in big tech stocks such as Amazon. Amazon’s price-to-sales ratio is at its lowest level since 2010.
Image Source: Zacks Investment Research
Bottom Line
For the above reasons, tech stocks may be set for an unexpectedly strong 2023. The price action, shrinking valuations, and influx of liquidity point to large potential gains ahead. Investors should focus on large tech stocks such as Apple in the months ahead.
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Invesco QQQ (QQQ): ETF Research Reports
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Larger Tech to Suffer Less Impact: While, the collapse of Silicon Valley Bank spells trouble for start-ups, larger, cash rich companies such as Apple AAPL should suffer less of an impact. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Post-pandemic, investors such as Cathy Wood, who runs the Ark Innovation ETF ARKK, benefitted from tech growth being “brought forward” as companies adapted to the remote-centric economy.
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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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Larger Tech to Suffer Less Impact: While, the collapse of Silicon Valley Bank spells trouble for start-ups, larger, cash rich companies such as Apple AAPL should suffer less of an impact. First, the Covid-19 pandemic forced the global economy to come to a standstill and crashed high-flying tech stocks such as Amazon AMZN, Alphabet GOOGL, and Meta Platforms META.
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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 Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Larger Tech to Suffer Less Impact: While, the collapse of Silicon Valley Bank spells trouble for start-ups, larger, cash rich companies such as Apple AAPL should suffer less of an impact. Today, I will provide 5 reasons why tech investors should look past the banking uncertainty and warm up to tech stocks.
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Larger Tech to Suffer Less Impact: While, the collapse of Silicon Valley Bank spells trouble for start-ups, larger, cash rich companies such as Apple AAPL should suffer less of an impact. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SVB Financial Group (SIVB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. What’s Next for Tech Stocks?
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16779.0
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2023-03-14 00:00:00 UTC
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Diversify Your Income with These 2 High-Yielding Dividend ETFs
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AAPL
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https://www.nasdaq.com/articles/diversify-your-income-with-these-2-high-yielding-dividend-etfs
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nan
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nan
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Diversification is a term widely used when it comes to investing in the stock market. It means spreading your investment across different sectors and industries to minimize volatility's impact. While one segment may take a hit, another one may improve or take less of a hit. In a nutshell, don't put all of your eggs into one basket.
For high-yield dividend investors, it means balancing risk with reward and spreading the investment through different risk levels.
Hi-yield investing can be more volatile since the risk is proportionate to the reward. Higher yields call for more volatility in exchange. Investing in dividend exchange-traded-fund (ETFs) spreads the risk among different holdings within the ETF. Although the theme may be similar, the investments are in different stocks.
A high-yielding dividend ETF takes it one step further by upping the risk, so it may take another high-yielding dividend ETF with a different theme to balance it. With that in mind, here are two high-yield dividend ETFs to consider.
Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD)
QYLD has a 13.04% annual dividend yield and pays monthly dividends. The name says it all. This ETF invests in the NASDAQ 100 stocks and sells covered call options on each stock. The beauty of this strategy (if done correctly) is that Nasdaq 100 technology stocks have more volatility and therefore command higher options premiums. While the sound of investing in the NASDAQ 100 in any shape or form sounds risky considering its nasty bear market plunge in 2022, this ETF mitigates a big chunk of the risk with the covered call strategy.
Outperforming in a Bear Market
Along with the dividend income, it also has the potential for principal appreciation since the NASDAQ comprises mainly technology stocks. Technology stocks tend to suffer the most from rising interest rates. That's where the dividend income helps to hedge some of the pain with the falling NASDAQ 100.
This was illustrated in 2022 when QLYD outperformed the Nasdaq 100 (NASDAQ: QQQ) ETF by 20%. Granted, you still would have been in the red, but much less when factoring in the dividend payouts. For 2022, the QQQ fell (32.58%), and only QYLD fell (19%). However, QLYD paid out $2.19 in total dividends in 2022. When you add back in the total dividends paid out in 2022, that raises the closing price from $15.59 to $17.78, bringing the total QLYD performance down to just (1.55%).
Upside Potential and Monthly Income
This high-yield ETF provides income, appreciation, and an overall volatility hedge for the NASDAQ market. As interest rates eventually fall, the NASDAQ tends to bounce more robustly as money as investors take a risk-on stance favoring growth. This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound.
As for 2023, the QQQ is up 9% YTD versus the QLYD up 2.52%, but don't forget the QQQ is still clawing back losses from being down (-19%) in 2022, whereas QLYD with dividends included is net positive 1% since the start the 2022 bear market. Pullback support levels are $15.93, $15.49 MSL trigger, $14.86, and $14.26.
JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI)
It sounds like an oxymoron, but it's a more conservative high-yield dividend ETF with an underweight position in technology stocks. JEPI has a 12.2% annual yield and pays out dividends monthly. This ETF also incorporates s a covered call strategy but with investments in much lower volatility dividend-paying stocks and relatively conservative real estate investment trusts (REITs). The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). It also has holdings in convertible bonds and energy stocks. It can buffer some of the volatility in a high beta technology portfolio. Pullback support levels are at $50.34 weekly MSL trigger, $49.08, $48.13, and $47.57 swing low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound. The beauty of this strategy (if done correctly) is that Nasdaq 100 technology stocks have more volatility and therefore command higher options premiums. Outperforming in a Bear Market Along with the dividend income, it also has the potential for principal appreciation since the NASDAQ comprises mainly technology stocks.
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This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound. For high-yield dividend investors, it means balancing risk with reward and spreading the investment through different risk levels. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) QYLD has a 13.04% annual dividend yield and pays monthly dividends.
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This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound. A high-yielding dividend ETF takes it one step further by upping the risk, so it may take another high-yielding dividend ETF with a different theme to balance it. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) QYLD has a 13.04% annual dividend yield and pays monthly dividends.
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This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound. Investing in dividend exchange-traded-fund (ETFs) spreads the risk among different holdings within the ETF. This ETF invests in the NASDAQ 100 stocks and sells covered call options on each stock.
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16780.0
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2023-03-14 00:00:00 UTC
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You Won't Believe How Much More Warren Buffett Has Made Than the Market Since 1965
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AAPL
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https://www.nasdaq.com/articles/you-wont-believe-how-much-more-warren-buffett-has-made-than-the-market-since-1965
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nan
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nan
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Legendary investor Warren Buffett did it again in 2022. His holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), outperformed the market last year, gaining 4% versus the S&P 500's 19% drop.
Since Buffett took over in 1965, Berkshire Hathaway has beaten the market 39 out of 58 years. While that's about two-thirds of the time, it may not sound incredibly impressive at first; it's underperformed the market the other 19 years.
But that's not the whole story. Adding up all of the gains over time, Berkshire Hathaway has outperformed the market by an almost unbelievable amount.
What is Berkshire Hathaway anyway?
When investors talk about Warren Buffett's stocks, they're usually referring to the stocks in the Berkshire Hathaway portfolio. When you buy a stock, you're usually buying a piece of a business, and it's often a business you know and perhaps buy products from, such as Amazon or Coca-Cola.
Berkshire Hathaway is a holding company, which means it doesn't operate any business, but rather functions as an owner of other businesses. Investors give it funds, and it uses those funds to buy other companies, and, in Berkshire Hathaway's case, invest in the shares of other companies. It owns a number of companies with 100% or controlling ownership, such as GEICO and Duracell.
As for investing in stocks, it has large but not controlling stakes in about 45 companies, including DaVita, Kraft Heinz, and Liberty Media. The largest stock in its portfolio is Apple, which accounts for 42% of the stock portfolio.
In some ways, then, owning Berkshire Hathaway stock is similar to owning an index fund, since it gives shareholders exposure to many different stocks.
Berkshire Hathaway vs. the S&P 500
That leads us to how much owning Berkshire Hathaway since its inception would have done for your portfolio versus owning an index fund.
Cumulatively since 1965, including dividends, the S&P 500 has gained 24,708%. If all you had done 58 years ago was invest $10,000 in an S&P 500 index fund, you would have about $2.4 million today. Nearly 60 years is more time than most people have to build a retirement fund, but it gives you an idea of the power of compounding over time.
As incredible as that sounds, if you'd invested in Berkshire Hathaway in 1965, you would have much, much more money. Since that time, Berkshire Hathaway stock has gained 3,787,464%, or more than 153 times the S&P 500's gains over the same time period -- good enough to give you roughly $355 million based on a $10,000 investment. That translates to a compounded annual gain of 19.8%, or nearly double the S&P 500's 9.9% compound annual gain.
Is the party over?
These returns are outstanding. However, recent performance hasn't been as incredible. The further back you go, the wider the margins between the S&P 500 and Berkshire Hathaway. These results don't include dividend payouts.
^SPX data by YCharts
^SPX data by YCharts
Does that mean it's getting harder for Berkshire Hathaway to beat the market? Maybe. But consider how well it did in 2022.
The other way to look at it is that Buffett is an advocate of buying stock in businesses that will last. He's not into quick fixes and daily stock movements. Therefore, the advantage of owning Berkshire Hathaway stock may be more visible over time. Buffett has famously said that his favorite holding period is forever. However, people who know that quote may not know that there is a condition attached to it. Buffett said that's only the case when "when we own portions of outstanding businesses with outstanding managements."
Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term.
10 stocks we like better than Berkshire Hathaway
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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. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for investing in stocks, it has large but not controlling stakes in about 45 companies, including DaVita, Kraft Heinz, and Liberty Media. Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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His holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), outperformed the market last year, gaining 4% versus the S&P 500's 19% drop. Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term. 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.
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When investors talk about Warren Buffett's stocks, they're usually referring to the stocks in the Berkshire Hathaway portfolio. In some ways, then, owning Berkshire Hathaway stock is similar to owning an index fund, since it gives shareholders exposure to many different stocks. Since that time, Berkshire Hathaway stock has gained 3,787,464%, or more than 153 times the S&P 500's gains over the same time period -- good enough to give you roughly $355 million based on a $10,000 investment.
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What is Berkshire Hathaway anyway? Investors give it funds, and it uses those funds to buy other companies, and, in Berkshire Hathaway's case, invest in the shares of other companies. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway.
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16781.0
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2023-03-14 00:00:00 UTC
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1 FAANG Stock to Buy Hand Over Fist in March and 1 to Avoid Like the Plague
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https://www.nasdaq.com/articles/1-faang-stock-to-buy-hand-over-fist-in-march-and-1-to-avoid-like-the-plague
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Since the start of 2022, investing on Wall Street has been nothing short of an adventure. All three major U.S. stock indexes have, at some point, entered a bear market, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite producing their worst full-year returns in more than a decade last year.
Typically, when the going gets tough on Wall Street, investors tend to turn their attention to perennial outperformers, such as the FAANG stocks.
Image source: Getty Images.
The FAANG stocks have a long history of outperformance
When I say "FAANG," I'm referring to:
Facebook, which is a subsidiary of parent company Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Over the trailing 10-year period (as of March 10, 2023), the benchmark S&P 500 has risen by 149%. By comparison Meta, Apple, Amazon, Netflix, and Alphabet (specifically, the Class A shares, GOOGL), were respectively higher by 542%, 863%, 562%, 1,010%, and 336%. All five have vastly outperformed the broader market, and were responsible for pulling the broad-based S&P 500 to new highs in 2021.
In addition to outperforming over long periods, the FAANG stocks are leaders in their respective industries.
Meta owns four of the most-downloaded and visited social media apps on the planet: Facebook, Facebook Messenger, WhatsApp, and Instagram.
Apple's iPhone controls roughly half of U.S. smartphone market share.
Amazon was forecast to account for nearly 40% of all U.S. online retail sales in 2022, according to a report by eMarketer.
Netflix is the streaming content share leader in the U.S. and abroad.
Alphabet's internet search engine Google accounts for more than 93% of worldwide search share.
But opportunity isn't always equal among the FAANGs. Right now, one FAANG stock stands out as historically inexpensive and ripe for the picking, while another could find itself exposed to a U.S. economic downturn and substantial downside in its share price.
The FAANG stock to buy hand over fist in March: Alphabet
Among the FAANGs, the one stock that stands out as most attractive right now is Alphabet. Not only is it historically inexpensive (a point I'll touch on a bit later), but all facets of its business appear well positioned to generate significant cash flow over the long term.
The biggest knock against Alphabet at the moment is that it's highly dependent on ad revenue. With a number of recession-probability indicators screaming that an economic downturn is coming, it's not a surprise to see advertisers paring back their spending in the short run.
But this is a pattern we've seen countless times before. Ad-driven businesses get taken to the woodshed by emotional investors who believe ad spending is gone forever. In reality, recessions tend to be short-lived, typically two to 18 months long, and advertising tends to be one of the first industries to bounce back when a new economic expansion emerges. This dislocation between the short-term share price in Alphabet and the long-term growth potential of advertising is something patient investors can take advantage of.
As noted, Google is a global search juggernaut. Since December 2018, it's accounted for no less than 91% of worldwide internet search share. Possessing a veritable monopoly on internet search affords the company rock-solid ad-pricing power more often than not. After all, advertisers are well aware that Google gives them their best chance of targeting their messages at consumers.
However, Alphabet is more than just its cash cow search engine. Streaming platform YouTube and cloud infrastructure service segment Google Cloud are expected to be significant growth drivers during the second half of this decade.
YouTube is the second most-visited social platform on the planet, with over 2.6 billion monthly active users. Every day, YouTube Shorts (short-form videos lasting less than 60 seconds) are netting more than 50 billion views. This represents a mammoth monetization opportunity for YouTube.
Meanwhile, Google Cloud's share of global cloud infrastructure service spending grew to an estimated 10% during the fourth quarter, according to tech analysis company Canalys. Enterprise cloud spending is still in its early innings of growth, and cloud margins tend to run circles around advertising margins. Though this is currently a money-losing segment, its pace of growth offers plenty of promise for Alphabet.
Lastly, Alphabet is historically cheap. Over the trailing five years, Alphabet has averaged a price-to-cash flow of 18.4 and a forward-year price-to-earnings ratio of 25.2. Investors buying right now are getting shares of Google of less than 15 times forward-year earnings and below 10 times Wall Street's consensus cash flow for 2024. It's a screaming bargain for long-term investors.
Image source: Apple.
The FAANG stock to avoid like the plague in March: Apple
But there's another side to this coin. Among the five FAANG stocks, none is in a more precarious position than tech stock Apple.
To be perfectly clear, Apple didn't become the largest publicly traded company by market cap on accident. It's the top dog because it's extremely profitable -- it generated $95.2 billion in net income over the trailing 12 months -- and it has an exceptionally loyal customer base. The company's physical products, such as iPhone, Mac, and iPad, have endeared people to its brand.
It's also a company that's led through innovation. Apple's pivot to subscription services will be a long-term boon for its bottom line. In addition to high, predictable margins, subscription services can help offset the revenue lumpiness that often accompanies iPhone replacement cycles.
Apple is the capital-return program kingpin, too. It's repurchased more than $550 billion of its common stock over the past decade, and it doles out one of the largest nominal-dollar dividends on the planet.
But if a U.S. recession does occur, Apple is, arguably, the most vulnerable of the FAANGs. In fiscal 2023, Wall Street's consensus is for Apple to report a 1% decline in sales. Before we saw recession indicators screaming that trouble lies ahead, Apple was already witnessing weaker-than-anticipated sales of iPhone 14. In fact, the company abandoned its initial plan to increase production because of weak sales. This sales decline is even more meaningful when you factor in that the U.S. inflation rate remains above 6%. Even with pricing power at its back, Apple can't move the revenue needle.
To add to this point, we're more than two years removed from Apple's 5G-capable iPhone hitting showroom floors. Though the 5G smartphone device-replacement cycle is liable to last for years to come, Apple, in hindsight, didn't differentiate iPhone 14 enough from previous models to entice consumers to buy.
Another concern for Apple is its lack of bottom-line growth. Access to cheap capital and share buybacks have been a sustained positive for the company's earnings per share. But with sales growth floundering, Apple's earnings growth has stalled.
Between 2013 and 2018, Apple was growing sales pretty consistently and valued at a forward-year price-to-earnings ratio of between 10 and 15. Currently, Apple isn't growing, and investors are lining up to pay nearly 23 times forward-year earnings, based on Wall Street's consensus. In my view, this leaves Apple stock highly vulnerable to significant downside if a U.S. recession materializes. That makes it a stock to avoid like the plague in March, and possibly throughout 2023.
10 stocks we like better than Alphabet
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 Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. 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 FAANG stocks have a long history of outperformance When I say "FAANG," I'm referring to: Facebook, which is a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing 10-year period (as of March 10, 2023), the benchmark S&P 500 has risen by 149%. All three major U.S. stock indexes have, at some point, entered a bear market, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite producing their worst full-year returns in more than a decade last year. Right now, one FAANG stock stands out as historically inexpensive and ripe for the picking, while another could find itself exposed to a U.S. economic downturn and substantial downside in its share price.
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The FAANG stocks have a long history of outperformance When I say "FAANG," I'm referring to: Facebook, which is a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing 10-year period (as of March 10, 2023), the benchmark S&P 500 has risen by 149%. Streaming platform YouTube and cloud infrastructure service segment Google Cloud are expected to be significant growth drivers during the second half of this decade. Currently, Apple isn't growing, and investors are lining up to pay nearly 23 times forward-year earnings, based on Wall Street's consensus.
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The FAANG stocks have a long history of outperformance When I say "FAANG," I'm referring to: Facebook, which is a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing 10-year period (as of March 10, 2023), the benchmark S&P 500 has risen by 149%. The FAANG stock to buy hand over fist in March: Alphabet Among the FAANGs, the one stock that stands out as most attractive right now is Alphabet. Among the five FAANG stocks, none is in a more precarious position than tech stock Apple.
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The FAANG stocks have a long history of outperformance When I say "FAANG," I'm referring to: Facebook, which is a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing 10-year period (as of March 10, 2023), the benchmark S&P 500 has risen by 149%. YouTube is the second most-visited social platform on the planet, with over 2.6 billion monthly active users. Investors buying right now are getting shares of Google of less than 15 times forward-year earnings and below 10 times Wall Street's consensus cash flow for 2024.
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16782.0
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2023-03-14 00:00:00 UTC
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EXCLUSIVE-India plans new security testing for smartphones, crackdown on pre-installed apps
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https://www.nasdaq.com/articles/exclusive-india-plans-new-security-testing-for-smartphones-crackdown-on-pre-installed-apps
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By Munsif Vengattil and Aditya Kalra
NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters.
The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O.
India's IT ministry is considering these new rules amid concerns about spying and abuse of user data, said a senior government official, one of the two people, declining to be named as the information is not yet public.
"Pre-installed apps can be a weak security point and we want to ensure no foreign nations, including China, are exploiting it. It's a matter of national security," the official added.
India has ramped up scrutiny of Chinese businesses since a 2020 border clash between the neighbours, banning more than 300 Chinese apps, including TikTok. It has also intensified scrutiny of investments by Chinese firms.
Globally too, many nations have imposed restrictions on the use of technology from Chinese firms like Huawei HWT.UL and Hikvision 002415.SZ on fears Beijing could use them to spy on foreign citizens. China denies these allegations.
Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
Under the new rules, smartphone makers will have to provide an uninstall option and new models will be checked for compliance by a lab authorized by the Bureau of Indian Standards agency, two people with knowledge of the plan said.
The government is also considering mandating screening of every major operating system update before it is rolled out to consumers, one of the people said.
"Majority of smartphones used in India are having pre-installed Apps/Bloatware which poses serious privacy/information security issue(s)," stated a Feb. 8 confidential government record of an IT ministry meeting, seen by Reuters.
The closed-door meeting was attended by representatives from Xiaomi, Samsung, Apple and Vivo, the meeting record shows.
The government has decided to give smartphone makers a year to comply once the rule comes into effect, the date for which has not been fixed yet, the document added.
The companies and India's IT ministry did not respond to a Reuters request for comment.
'MASSIVE HINDRANCE'
India's fast-growing smartphone market is dominated by Chinese players, with Xiaomi and BBK Electronics' Vivo and Oppo accounting for almost half of all sales, Counterpoint data shows. South Korea's Samsung has a 20% share and Apple has 3%.
While European Union regulations require allowing removal of pre-installed apps, it does not have a screening mechanism to check for compliance like India is considering.
An industry executive said some pre-installed apps like the camera are critical to user experience and the government must make a distinction between these and non-essential ones when imposing screening rules.
Smartphone players often sell their devices with proprietary apps, but also sometimes pre-install others with which they have monetisation agreements.
The other worry is more testing could prolong approval timelines for smartphones, a second industry executive said. Currently it takes about 21 weeks for a smartphone and its parts to be tested by the government agency for safety compliance.
"It's a massive hindrance to a company's go-to market strategy," the executive said.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Editing by Himani Sarkar)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. Under the new rules, smartphone makers will have to provide an uninstall option and new models will be checked for compliance by a lab authorized by the Bureau of Indian Standards agency, two people with knowledge of the plan said. India's fast-growing smartphone market is dominated by Chinese players, with Xiaomi and BBK Electronics' Vivo and Oppo accounting for almost half of all sales, Counterpoint data shows.
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The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
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The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. Currently, most smartphones come with pre-installed apps that cannot be deleted, such as Chinese smartphone maker Xiaomi's app store GetApps, Samsung's payment app Samsung Pay mini and iPhone maker Apple's browser Safari.
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The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung 005930.KS, Xiaomi 1810.HK, Vivo, and Apple AAPL.O. By Munsif Vengattil and Aditya Kalra NEW DELHI, March 14 (Reuters) - India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. "Pre-installed apps can be a weak security point and we want to ensure no foreign nations, including China, are exploiting it.
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2023-03-14 00:00:00 UTC
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Qualcomm spars with EU antitrust regulators over Huawei, ZTE rebates
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https://www.nasdaq.com/articles/qualcomm-spars-with-eu-antitrust-regulators-over-huawei-zte-rebates
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By Foo Yun Chee
LUXEMBOURG, March 14 (Reuters) - Qualcomm QCOM.O on Tuesday criticised European Union antitrust regulators over their definition of rebates given to Chinese phone makers Huawei and ZTE in the second day of a court hearing aimed at overturning a 242-million-euro ($259 million) fine.
The U.S. chipmaker is pleading its case in the General Court, Europe's second-highest, after winning its fight to overturn a 997-million-euro EU antitrust fine in another case there last year
The European Commission handed Qualcomm the fine in 2019, alleging it had engaged in predatory pricing by selling its chipsets for mobile internet dongles at below cost between 2009 and 2011 to thwart British phone software maker Icera, now part of Nvidia Corp NVDA.O.
The EU competition enforcer said an analysis of Qualcomm's prices showed it sold some of its chips below cost to Huawei HWT.UL and ZTE 000063.SZ, with rebates and discounts driving the final prices down.
Qualcomm's lawyer rebuffed the analysis on the second day of a three-day hearing.
"The Commission should have applied the price cost test over a longer, more meaningful period. Had the Commission made those two simple corrections, you would have found no predation," Athina Kontasakou told the court.
She said the Commission was wrong to treat annual lump-sum payments made by Qualcomm to customers as hidden discounts and rebate payments.
Martin Farley, a lawyer for the Commission, defended its analysis of Qualcomm's prices as "fundamentally correct and robust".
"All of the decisions that the Commission took in exercise of its discretion to calculate the costs were done to ensure that they reflected reality," he told judges.
The court will rule in the coming months. The case is T-671/19 Qualcomm v Commission.
($1 = 0.9341 euros)
(Reporting by Foo Yun Chee; Editing by Sharon Singleton)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee LUXEMBOURG, March 14 (Reuters) - Qualcomm QCOM.O on Tuesday criticised European Union antitrust regulators over their definition of rebates given to Chinese phone makers Huawei and ZTE in the second day of a court hearing aimed at overturning a 242-million-euro ($259 million) fine. The U.S. chipmaker is pleading its case in the General Court, Europe's second-highest, after winning its fight to overturn a 997-million-euro EU antitrust fine in another case there last year The European Commission handed Qualcomm the fine in 2019, alleging it had engaged in predatory pricing by selling its chipsets for mobile internet dongles at below cost between 2009 and 2011 to thwart British phone software maker Icera, now part of Nvidia Corp NVDA.O. Martin Farley, a lawyer for the Commission, defended its analysis of Qualcomm's prices as "fundamentally correct and robust".
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By Foo Yun Chee LUXEMBOURG, March 14 (Reuters) - Qualcomm QCOM.O on Tuesday criticised European Union antitrust regulators over their definition of rebates given to Chinese phone makers Huawei and ZTE in the second day of a court hearing aimed at overturning a 242-million-euro ($259 million) fine. The U.S. chipmaker is pleading its case in the General Court, Europe's second-highest, after winning its fight to overturn a 997-million-euro EU antitrust fine in another case there last year The European Commission handed Qualcomm the fine in 2019, alleging it had engaged in predatory pricing by selling its chipsets for mobile internet dongles at below cost between 2009 and 2011 to thwart British phone software maker Icera, now part of Nvidia Corp NVDA.O. ($1 = 0.9341 euros) (Reporting by Foo Yun Chee; Editing by Sharon Singleton) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee LUXEMBOURG, March 14 (Reuters) - Qualcomm QCOM.O on Tuesday criticised European Union antitrust regulators over their definition of rebates given to Chinese phone makers Huawei and ZTE in the second day of a court hearing aimed at overturning a 242-million-euro ($259 million) fine. The U.S. chipmaker is pleading its case in the General Court, Europe's second-highest, after winning its fight to overturn a 997-million-euro EU antitrust fine in another case there last year The European Commission handed Qualcomm the fine in 2019, alleging it had engaged in predatory pricing by selling its chipsets for mobile internet dongles at below cost between 2009 and 2011 to thwart British phone software maker Icera, now part of Nvidia Corp NVDA.O. The EU competition enforcer said an analysis of Qualcomm's prices showed it sold some of its chips below cost to Huawei HWT.UL and ZTE 000063.SZ, with rebates and discounts driving the final prices down.
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By Foo Yun Chee LUXEMBOURG, March 14 (Reuters) - Qualcomm QCOM.O on Tuesday criticised European Union antitrust regulators over their definition of rebates given to Chinese phone makers Huawei and ZTE in the second day of a court hearing aimed at overturning a 242-million-euro ($259 million) fine. The U.S. chipmaker is pleading its case in the General Court, Europe's second-highest, after winning its fight to overturn a 997-million-euro EU antitrust fine in another case there last year The European Commission handed Qualcomm the fine in 2019, alleging it had engaged in predatory pricing by selling its chipsets for mobile internet dongles at below cost between 2009 and 2011 to thwart British phone software maker Icera, now part of Nvidia Corp NVDA.O. "The Commission should have applied the price cost test over a longer, more meaningful period.
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16784.0
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2023-03-14 00:00:00 UTC
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This Warren Buffett Stock Just Got a Huge Upgrade
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https://www.nasdaq.com/articles/this-warren-buffett-stock-just-got-a-huge-upgrade
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The Nasdaq Composite index got off to a hot start to begin 2023. Before several technology companies reported earnings, investors were buying up shares as they sensed weakness in the market. Subsequently, many big tech companies echoed similar sentiment during earnings calls throughout February. Namely, while top-line revenue is still growing, the pace of this growth is slowing down.
Executives sense waning demand from both consumers and corporations as budgets are tightening and inflation lingers. Unsurprisingly, several companies issued underwhelming guidance, which led to large sell-offs. Sometimes when investors follow one another, particularly during times of fear or panic, stocks can become oversold and therefore undervalued.
One of the most respected technology research analysts on Wall Street is Wedbush Securities' Dan Ives. Late last week, he issued a report stating that Apple (NASDAQ: AAPL) stock could be a good buy at its current valuation. Let's dig into Apple's financials and analyze whether Ives' claims are justified.
Apple's financial condition is strong
For its fiscal 2023 first quarter ended Dec. 31, Apple reported total revenue of $117.2 billion, which was roughly a decline of 5% year over year. At first glance, seeing a company's revenue decline can be concerning. When it's Apple, arguably the strongest company of all time, it's both confusing and uneasy. However, it should be noted that Apple actually grew revenue year over year on a constant currency basis.
The breakdown of Apple's quarterly revenue was $96.4 billion in products and $20.8 billion in services. The entirety of Apple's revenue decline was attributed to products, which was $104.4 billion in December 2021. CFO Luca Maestri explained that product revenues were impacted by the current macroeconomic picture, as well as supply chain shortages for the company's new iPhone.
Maestri's explanation makes a lot of sense. Consumers are concerned about inflation and the possibility of a recession. For this reason, it's not surprising to see the consumer spending environment react more conservatively than it did in prior periods. Moreover, a significant portion of Apple's manufacturing operations resides in China. While the COVID-19 pandemic is certainly below its peak, China has had some restriction protocols in effect during recent months.
While product revenue declined year over year, Apple's services revenue not only increased but set an all-time record. Furthermore, CEO Tim Cook boasted that Apple's installed base crossed 2 billion total devices. To put this into perspective, Apple had 1 billion active devices less than a decade ago. Given the rapid rise in its installed base, it's not surprising to see Apple's services revenue grow in tandem.
Despite the fluctuations in revenue and foreign exchange rates, Maestri thoroughly explained how strong the company's balance sheet is when he stated:
We returned over $25 billion to shareholders during the December quarter as our business continues to generate very strong cash flow. This included $3.8 billion in dividends and equivalents and $19 billion through open market repurchases of 133 million Apple shares. We ended the quarter with $165 billion in cash and marketable securities. We repaid $1.4 billion in maturing debt and decreased commercial paper by $8.2 billion, leaving us with total debt of $111 billion.
As an investor, it's important to zoom out and not obsess over the granularity of one quarter. Carrying $165 billion in cash and marketable securities is astounding. Apple's liquidity is unquestionably strong. The company has the resources it needs to invest strategically and generously reward its shareholders.
Image source: Getty Images.
As far as the Ives can see
Ives raised his price target on Apple stock to $190 per share, which would imply roughly 27% upside to its current price at the time of this writing. Additionally, the analyst has a buy equivalent rating on the stock.
His primary thesis revolves around demand for the iPhone in China. While November and December faced supply chain challenges, Ives' research suggests that the first three months of 2023 are showing a bounce in demand. Although investors are not privy to precise demand figures, Ives' research makes sense. Given that China has lifted its zero-COVID policy from a few months ago, a natural assumption would be that consumer spending is rising given more public foot traffic.
As Cook explained during theearnings call the real driver of increased services revenue was the number of active devices in Apple's installed base. Assuming that the company is experiencing a positive turnaround in product demand in China, another appropriate assumption to make is that this will serve as a tailwind for services revenue.
The combination of increased demand in hardware products and the subsequent services purchases that are made provide Apple with an encouraging path forward.
Good enough for Buffett, good enough for you?
Warren Buffett is one of the most celebrated investors of all time. He is widely known to invest in businesses that generate strong cash flow. For example, he is a big fan of insurance companies. For this reason, Buffett was known to turn away from volatile technology stocks for quite some time.
In recent history, though, the famous investor realized that not all tech companies are created equal. While many of them reinvest any excess cash into initiatives that may or may not pay off in the future, Apple consistently uses its profits to pay dividends, buy back shares, and hold cash on the balance sheet.
Over the last several years, Buffett has taking a liking to Apple stock and is now the company's third-largest institutional investor. According to publicly available data, Buffett's investment vehicle, Berkshire Hathaway, purchased more than 300,000 additional shares in Apple stock during the last few months of calendar 2022. His average price was $142 per share. Despite Apple's lackluster earnings in February, Buffett is already up on his purchase. Furthermore, should Ives' prediction prove correct, Buffett could be looking at a return of over 30% in just a 12-month timeframe.
It should be noted that Buffett is an investor with a long-term horizon. Even if he does assume a 30% return by the end of the year, it is unlikely that he will sell a significant portion of his holdings. However, the more important picture here is that if Apple surprises investors and shows resiliency across its product portfolio and geographic regions, the stock will likely push higher beyond 2023.
As Apple currently trades at $150 per share, now looks like a great opportunity for long-term investors to buy in parallel with Buffett and lower their cost-basis.
10 stocks we like better than Apple
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Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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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Late last week, he issued a report stating that Apple (NASDAQ: AAPL) stock could be a good buy at its current valuation. CFO Luca Maestri explained that product revenues were impacted by the current macroeconomic picture, as well as supply chain shortages for the company's new iPhone. As Cook explained during theearnings call the real driver of increased services revenue was the number of active devices in Apple's installed base.
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Late last week, he issued a report stating that Apple (NASDAQ: AAPL) stock could be a good buy at its current valuation. Apple's financial condition is strong For its fiscal 2023 first quarter ended Dec. 31, Apple reported total revenue of $117.2 billion, which was roughly a decline of 5% year over year. While product revenue declined year over year, Apple's services revenue not only increased but set an all-time record.
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Late last week, he issued a report stating that Apple (NASDAQ: AAPL) stock could be a good buy at its current valuation. Apple's financial condition is strong For its fiscal 2023 first quarter ended Dec. 31, Apple reported total revenue of $117.2 billion, which was roughly a decline of 5% year over year. The breakdown of Apple's quarterly revenue was $96.4 billion in products and $20.8 billion in services.
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Late last week, he issued a report stating that Apple (NASDAQ: AAPL) stock could be a good buy at its current valuation. Before several technology companies reported earnings, investors were buying up shares as they sensed weakness in the market. Apple's financial condition is strong For its fiscal 2023 first quarter ended Dec. 31, Apple reported total revenue of $117.2 billion, which was roughly a decline of 5% year over year.
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16785.0
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2023-03-13 00:00:00 UTC
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Apple's (AAPL) Animation Film Emerges Winner at 2023 Oscars
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-animation-film-emerges-winner-at-2023-oscars
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nan
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nan
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Apple AAPL continues its winning stride at the Academy Awards with its animation movie The Boy, the Mole, the Fox and the Horse winning an Oscar for Best Animated Short Film. Last year, Apple won three Academy Awards for CODA.
Based on the book by Charlie Mackesy, The Boy, the Mole, the Fox and the Horse has already won a BAFTA award, four Annie Awards including Best Special Production, and an NAACP Image Awards nomination for Outstanding Short Form (Animated) film.
Apple’s impressive run at the Oscars has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN Prime Video, Netflix NFLX and Disney’s DIS Disney+.
Nevertheless, 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.
Apple Inc. Price, Consensus and EPS Surprise
Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote
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 1.4%, Netflix, Disney and Amazon shares have declined 11.5%, 27.4% and 36%, respectively.
Estimates on the Rise
The Zacks Consensus Estimate for Apple’s fiscal second-quarter earnings has increased by a penny to $1.44 over the past 30 days.
Apple expects the fiscal second quarter’s year-over-year revenue growth to be similar to that of the December (fiscal first) quarter due to unfavorable forex. In the previous quarter, net sales decreased 5.5% year over year to $117.15 billion. Unfavorable forex hurt revenues by more than 800 basis points.
For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, this Zacks Rank #3 (Hold) company expects revenues to decline double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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 continues its winning stride at the Academy Awards with its animation movie The Boy, the Mole, the Fox and the Horse winning an Oscar for Best Animated Short Film. While AAPL shares have declined 1.4%, Netflix, Disney and Amazon shares have declined 11.5%, 27.4% and 36%, 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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Apple AAPL continues its winning stride at the Academy Awards with its animation movie The Boy, the Mole, the Fox and the Horse winning an Oscar for Best Animated Short Film. 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. While AAPL shares have declined 1.4%, Netflix, Disney and Amazon shares have declined 11.5%, 27.4% and 36%, 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 continues its winning stride at the Academy Awards with its animation movie The Boy, the Mole, the Fox and the Horse winning an Oscar for Best Animated Short Film. While AAPL shares have declined 1.4%, Netflix, Disney and Amazon shares have declined 11.5%, 27.4% and 36%, 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 continues its winning stride at the Academy Awards with its animation movie The Boy, the Mole, the Fox and the Horse winning an Oscar for Best Animated Short Film. While AAPL shares have declined 1.4%, Netflix, Disney and Amazon shares have declined 11.5%, 27.4% and 36%, respectively.
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16786.0
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2023-03-13 00:00:00 UTC
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Apple (AAPL) Gains As Market Dips: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-as-market-dips%3A-what-you-should-know-7
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nan
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In the latest trading session, Apple (AAPL) closed at $150.47, marking a +1.33% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 1.66% in the past month. In that same time, the Computer and Technology sector lost 3.13%, while the S&P 500 lost 5.39%.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. The company is expected to report EPS of $1.44, down 5.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $93.39 billion, down 4% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. These results would represent year-over-year changes of -1.15% and -1.09%, respectively.
Investors might also notice recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Apple is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 24.57. This represents a premium compared to its industry's average Forward P/E of 8.35.
It is also worth noting that AAPL currently has a PEG ratio of 1.97. 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 2.51 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% 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.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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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In the latest trading session, Apple (AAPL) closed at $150.47, marking a +1.33% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. It is also worth noting that AAPL currently has a PEG ratio of 1.97.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $150.47, marking a +1.33% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $150.47, marking a +1.33% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion.
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In the latest trading session, Apple (AAPL) closed at $150.47, marking a +1.33% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $390.02 billion. It is also worth noting that AAPL currently has a PEG ratio of 1.97.
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16787.0
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2023-03-13 00:00:00 UTC
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Why Apple Stock Rose Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-rose-today-0
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) climbed on Monday, as investors' anticipation for the tech titan's entrance into the mixed-reality market heightened. By the close of the trading day, Apple's stock price was up 1.3% after rising as much as 3.1% earlier in the day.
So what
Apple is preparing to launch its long-awaited augmented reality (AR) headset as early as June, according to the Financial Times. The device's debut would mark a major move by the tech giant into an AR market that's projected to approach $600 billion by the end of the decade, according to Grand View Research.
Apple has reportedly been developing its mixed-reality headset for seven years. The initial version of the device is expected to feature advanced technology, including high-end cameras and ultra-high-resolution screens, that could drive its price as high as $3,000. Early sales are thus likely to be limited, although Apple is still reportedly planning to sell as many as 1 million headsets in the year following its launch.
Now what
A successful new product launch would do more than just provide Apple with another driver of sales and profit growth. It would also boost investors' confidence that innovation is alive and well at the tech juggernaut.
Apple's new mixed-reality headset would be the first product that was created entirely under CEO Tim Cook's watch. Many of the company's other major product development efforts -- including the iPhone, iPad, and Apple Watch -- were begun during former CEO Steve Jobs' tenure.
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
Joe Tenebruso 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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What happened Shares of Apple (NASDAQ: AAPL) climbed on Monday, as investors' anticipation for the tech titan's entrance into the mixed-reality market heightened. The device's debut would mark a major move by the tech giant into an AR market that's projected to approach $600 billion by the end of the decade, according to Grand View Research. Many of the company's other major product development efforts -- including the iPhone, iPad, and Apple Watch -- were begun during former CEO Steve Jobs' tenure.
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What happened Shares of Apple (NASDAQ: AAPL) climbed on Monday, as investors' anticipation for the tech titan's entrance into the mixed-reality market heightened. By the close of the trading day, Apple's stock price was up 1.3% after rising as much as 3.1% earlier in the day. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Shares of Apple (NASDAQ: AAPL) climbed on Monday, as investors' anticipation for the tech titan's entrance into the mixed-reality market heightened. 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 Joe Tenebruso has no position in any of the stocks mentioned.
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What happened Shares of Apple (NASDAQ: AAPL) climbed on Monday, as investors' anticipation for the tech titan's entrance into the mixed-reality market heightened. Apple has reportedly been developing its mixed-reality headset for seven years. Early sales are thus likely to be limited, although Apple is still reportedly planning to sell as many as 1 million headsets in the year following its launch.
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16788.0
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2023-03-13 00:00:00 UTC
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After Hours Most Active for Mar 13, 2023 : AAPL, INTC, BAC, AMZN, CG, CTSH, AER, GTLB, INFY, COTY, KR, SCHW
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-13-2023-%3A-aapl-intc-bac-amzn-cg-ctsh-aer-gtlb-infy-coty-kr
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The NASDAQ 100 After Hours Indicator is up 1.67 to 11,924.84. The total After hours volume is currently 81,608,423 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.04 at $150.51, with 3,853,837 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Intel Corporation (INTC) is +0.03 at $26.98, with 2,972,624 shares traded. INTC's current last sale is 96.36% of the target price of $28.
Bank of America Corporation (BAC) is +0.17 at $28.68, with 2,796,788 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is -0.01 at $92.42, with 2,573,640 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The Carlyle Group Inc. (CG) is unchanged at $30.09, with 2,006,458 shares traded. As reported by Zacks, the current mean recommendation for CG is in the "buy range".
Cognizant Technology Solutions Corporation (CTSH) is unchanged at $57.98, with 1,857,761 shares traded. CTSH's current last sale is 87.19% of the target price of $66.5.
Aercap Holdings N.V. (AER) is unchanged at $55.00, with 1,764,488 shares traded. As reported by Zacks, the current mean recommendation for AER is in the "strong buy range".
GitLab Inc. (GTLB) is -15.48 at $29.12, with 1,750,312 shares traded. Smarter Analyst Reports: Gitlab Rises 1.5% on Solid Q3 Results, Offers Guidance
Infosys Limited (INFY) is unchanged at $17.27, with 1,570,525 shares traded. INFY's current last sale is 86.35% of the target price of $20.
Coty Inc. (COTY) is unchanged at $10.71, with 1,259,360 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.17. As reported by Zacks, the current mean recommendation for COTY is in the "buy range".
Kroger Company (The) (KR) is -0.08 at $46.77, with 1,207,753 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.95. KR's current last sale is 86.61% of the target price of $54.
The Charles Schwab Corporation (SCHW) is +0.97 at $52.88, with 1,160,306 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.04 at $150.51, with 3,853,837 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Bank of America Corporation (BAC) is +0.17 at $28.68, with 2,796,788 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.04 at $150.51, with 3,853,837 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Bank of America Corporation (BAC) is +0.17 at $28.68, with 2,796,788 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.04 at $150.51, with 3,853,837 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Cognizant Technology Solutions Corporation (CTSH) is unchanged at $57.98, with 1,857,761 shares traded.
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Apple Inc. (AAPL) is +0.04 at $150.51, with 3,853,837 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 1.67 to 11,924.84.
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16789.0
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2023-03-13 00:00:00 UTC
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Court revives Apple, Google challenge to U.S. patent-review policy
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AAPL
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https://www.nasdaq.com/articles/court-revives-apple-google-challenge-to-u.s.-patent-review-policy
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nan
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nan
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By Blake Brittain
March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday.
The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process.
The PTO declined to comment on the ruling.
Google spokesperson José Castañeda said the company appreciates the decision and looks forward to making its case at the lower court. A Cisco spokesperson said the ruling reinforces that the PTO's patent review proceedings are "an important vehicle to preserve a balanced patent system, protect innovation, and assure patent quality in the United States."
Representatives for the other plaintiffs did not immediately respond to requests for comment.
The PTO's Patent Trial and Appeal Board is popular with big tech companies that are often targeted with patent lawsuits and that use the board's "inter partes review" process to contest patents they are accused of infringing. An internal rule that gave the agency's judges greater discretion to deny inter partes review petitions "dramatically reduced access" to the process, the companies told the appeals court.
Apple, Google, Cisco, Intel Corp INTC.O and Edwards Lifesciences Corp EW.Nsued the PTO in the California federal court in 2020 over the rule. They argued it undermined the role inter partes review plays in "protecting a strong patent system" and violated federal law.
Companies including Tesla, Honda, Comcast and Dell filed briefs at the Federal Circuit in support of the plaintiffs.
The California court dismissed the case in 2021, citing U.S. Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed.
The Federal Circuit also rejected the companies' arguments that the rule was arbitrary and violated U.S. patent law. But the three-judge panel said the PTO may have been required to hold a period of public notice and comment before making the rule, and that it could be challenged based on that argument.
The case is Apple Inc v. Vidal, U.S. Court of Appeals for the Federal Circuit, No. 22-1249.
(Reporting by Blake Brittain in Washington)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. An internal rule that gave the agency's judges greater discretion to deny inter partes review petitions "dramatically reduced access" to the process, the companies told the appeals court. But the three-judge panel said the PTO may have been required to hold a period of public notice and comment before making the rule, and that it could be challenged based on that argument.
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By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. They argued it undermined the role inter partes review plays in "protecting a strong patent system" and violated federal law.
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By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. The PTO's Patent Trial and Appeal Board is popular with big tech companies that are often targeted with patent lawsuits and that use the board's "inter partes review" process to contest patents they are accused of infringing.
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By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. The California court dismissed the case in 2021, citing U.S. Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed.
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16790.0
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2023-03-13 00:00:00 UTC
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Got $1,000? 2 Warren Buffett Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/got-%241000-2-warren-buffett-stocks-to-buy-hand-over-fist
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If you're looking to invest like Berkshire Hathaway CEO Warren Buffett, keeping up with purchases and sales through the company's public disclosures makes it easy enough to do. Notably, outside of repurchasing roughly $2.6 billion worth of its own stock in the period, Berkshire invested in only a handful of other companies in the fourth quarter.
The company continued to increase its stake in oil business Occidental Petroleum and its stake in construction materials company Louisiana-Pacific. But Buffett's company also bought two other stocks that look like worthwhile plays for long-term investors right now. Read on for a look at two recent Berkshire buys that could be top investment vehicles if you're looking to put some money to work.
Image source: The Motley Fool.
1. Apple
With Apple (NASDAQ: AAPL) standing as by far the largest equity holding in the Berkshire portfolio, it's clear Buffett has a lot of confidence in the tech giant. Even with Berkshire taking a relatively cautious approach to the market in Q4, the holding company remains a big believer in Apple stock. The iPhone company's shares account for roughly 39% of Berkshire's total direct stock holdings.
As Buffett wrote in his recent letter to shareholders, "Over time, it takes just a few winners to work wonders," and Apple has certainly been a big winner for Berkshire. The investment conglomerate first began buying Apple shares in the first quarter of 2016, and the stock has played a bigger role than any other in powering Berkshire to market-beating returns since then.
AAPL Total Return Level data by YCharts.
Apple frequently ranks as the world's most profitable company and has only occasionally ceded that title to energy giant Saudi Aramco in recent years. Capturing roughly 85% of global operating income in the smartphone market last year, Apple's dominant position in mobile plays a huge role in powering its world-beating profits. But the company also scores wins with tablets, computers, wearables, and its software and services ecosystem.
Backed by its penchant for sleek aesthetics, emphasis on easy-to-use design philosophies, and incredible brand strength, the company may also find big success with emerging product categories, including augmented-reality hardware and services and smart cars.
Even after climbing roughly 14% year to date, Apple stock trades down approximately 18% from its high, and there's a good chance the highly profitable tech player will eventually go on to reach new valuation heights. Apple stock should be a no-brainer for those looking to invest like Buffett.
2. Paramount Global
Setting aside Berkshire Hathaway's own share buybacks, Paramount Global (NASDAQ: PARA) has the distinction of being one of only four stocks purchased by the investment conglomerate in the fourth quarter. Buffett made his name in the investing world by using value-oriented strategies and pouncing on opportunities in which it seemed stocks were trading below their intrinsic values. And the investment in Paramount seems to be a play in that classic vein. The media stock trades down roughly 80% from its peak, and shares look attractively valued at today's prices.
Buoyed by incredible box office success, led by Top Gun: Maverick and its roughly $1.5 billion in global ticket sales, Paramount posted great profits last year and trades at less than 12.5 times trailing earnings. With expectations for softer theatrical performance and continued weakness in the TV advertising market, the company will likely be significantly less profitable this year. It trades at roughly 24 times expected forward earnings but continues to look cheap along other metrics.
PARA Price to Book Value data by YCharts.
At today's prices, Paramount trades at less than 60% of its book value. While the company does carry long-term debt of roughly $15.6 billion against its roughly $2.8 billion cash-and-equivalents position, the business is profitable and rapidly making inroads in the streaming space.
Despite a 7% year-over-year decline for the TV media segment that made up roughly 72% of total sales in Q4, a strong performance for streaming helped push overall revenue up 2% to reach $8.1 billion in the period. Revenue growth of 81% for the Paramount+ streaming service helped drive sales up 30% for the direct-to-consumer segment, and the streaming platform added a best-ever 9.9 million new subscribers.
With its encouraging momentum in the streaming space and the stock looking cheap on a price-to-book-value basis, Paramount is a value-oriented turnaround play worth getting behind.
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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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends 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 With Apple (NASDAQ: AAPL) standing as by far the largest equity holding in the Berkshire portfolio, it's clear Buffett has a lot of confidence in the tech giant. AAPL Total Return Level data by YCharts. Capturing roughly 85% of global operating income in the smartphone market last year, Apple's dominant position in mobile plays a huge role in powering its world-beating profits.
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Apple With Apple (NASDAQ: AAPL) standing as by far the largest equity holding in the Berkshire portfolio, it's clear Buffett has a lot of confidence in the tech giant. AAPL Total Return Level data by YCharts. Paramount Global Setting aside Berkshire Hathaway's own share buybacks, Paramount Global (NASDAQ: PARA) has the distinction of being one of only four stocks purchased by the investment conglomerate in the fourth quarter.
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Apple With Apple (NASDAQ: AAPL) standing as by far the largest equity holding in the Berkshire portfolio, it's clear Buffett has a lot of confidence in the tech giant. AAPL Total Return Level data by YCharts. The investment conglomerate first began buying Apple shares in the first quarter of 2016, and the stock has played a bigger role than any other in powering Berkshire to market-beating returns since then.
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Apple With Apple (NASDAQ: AAPL) standing as by far the largest equity holding in the Berkshire portfolio, it's clear Buffett has a lot of confidence in the tech giant. AAPL Total Return Level data by YCharts. The investment conglomerate first began buying Apple shares in the first quarter of 2016, and the stock has played a bigger role than any other in powering Berkshire to market-beating returns since then.
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16791.0
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2023-03-13 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-4
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of iPhones, iPads and other products have returned -1.7% over the past month versus the Zacks S&P 500 composite's -5.4% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has lost 1.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.44 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%.
The consensus earnings estimate of $6.04 for the current fiscal year indicates a year-over-year change of -1.2%. This estimate has changed -0.1% over the last 30 days.
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 +0.7%.
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
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Apple, the consensus sales estimate of $93.39 billion for the current quarter points to a year-over-year change of -4%. The $390.02 billion and $416.7 billion estimates for the current and next fiscal years indicate changes of -1.1% and +6.8%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $117.15 billion in the last reported quarter, representing a year-over-year change of -5.5%. EPS of $1.88 for the same period compares with $2.10 a year ago.
Compared to the Zacks Consensus Estimate of $121.21 billion, the reported revenues represent a surprise of -3.34%. The EPS surprise was -2.59%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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16792.0
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2023-03-13 00:00:00 UTC
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Should You Stop Investing Right Now? Here's Warren Buffett's Advice.
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AAPL
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https://www.nasdaq.com/articles/should-you-stop-investing-right-now-heres-warren-buffetts-advice.
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The past year has been rough for investors. Major market indexes have been in and out of bear market territory for close to a year, recession warning bells continue, and now the collapse of Silicon Valley Bank has many people understandably rattled.
Amid all this chaos, it can be tempting to stop investing until things feel a bit more stable. When that might happen, though, is anyone's guess.
Is it safer to press pause on investing for right now? Or should you keep going? Here's Warren Buffett's advice.
Is the stock market safe right now?
When there's bad news after bad news, the last thing on your mind may be investing more. But according to Warren Buffett, times like these are the best investing opportunities.
Image source: The Motley Fool.
Back in 2008, during the height of the Great Recession, Buffett wrote an opinion article for The New York Times. In it, he writes: "[B]ad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price."
Stock prices are lower than they've been in a long time, which means now is your chance to buy at a discount. Some stocks haven't seen a slump like this since 2008, and once the market recovers, it could be years before we see discounts like this again.
Even big-name stocks are essentially on clearance right now. The price of Amazon, for example, is down nearly 45% since April 2022. Microsoft's price has fallen by close to 20% in that timeframe, and Apple is down close to 15%. If you've been waiting for a more affordable chance to buy, now may be the time.
Your best chance to see lucrative returns
Not only can investing now save you money, but it can also set you up for significant gains during the market's inevitable upswing.
For example, say you had invested in an S&P 500 index fund in March 2009, when the market officially bottomed out during the Great Recession. At the moment, that may have seemed like the worst possible time to buy, as stock prices had already plummeted.
However, if you had simply held that investment for five years, you'd have earned returns of more than 177%.
^SPX data by YCharts
Buying during the market's low points is another piece of advice from Buffett. "A simple rule dictates my buying," he writes in the Times article. "Be fearful when others are greedy, and be greedy when others are fearful."
The stock market has been incredibly volatile over the past year, and if a recession is looming, things could potentially get worse before they get better. But right now is the time to "be greedy," as Buffett puts it, and take advantage of these lower prices.
The secret to making money during periods of volatility
In times like these, it's especially critical to ensure you have the proper strategy. If you invest in the wrong places or sell at the wrong time, you risk losing more than you gain.
There are two keys to maximizing your earnings when the market is shaky: Invest in quality companies and keep a long-term outlook.
The strongest stocks are the ones from companies with solid underlying business fundamentals -- such as healthy financials, a competitive advantage in the industry, and a competent leadership team. These companies are far more likely to survive tough economic times, no matter what the future holds.
The second part of that equation, then, is to stay focused on the long term. Even strong stocks can take a serious hit in the near term. But over several years, they're likely to not only recover, but go on to see positive total returns. By buying during the market's slumps and staying invested through the recovery period, you can maximize your earnings.
What's going to happen with the market?
Unfortunately, nobody -- even the experts -- can say precisely what will happen over the coming weeks or months. But over the long term, the market is extremely likely to recover. By investing in quality stocks, you can give your portfolio the best shot at rebounding, too.
When in doubt, it doesn't hurt to follow Buffett's lead.
"I can't predict the short-term movements of the stock market," he writes. "I haven't the faintest idea as to whether stocks will be higher or lower a month or a year from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over."
10 stocks we like better than Walmart
When our award-winning analyst team has an investing 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 Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of March 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Your best chance to see lucrative returns Not only can investing now save you money, but it can also set you up for significant gains during the market's inevitable upswing. The stock market has been incredibly volatile over the past year, and if a recession is looming, things could potentially get worse before they get better. The strongest stocks are the ones from companies with solid underlying business fundamentals -- such as healthy financials, a competitive advantage in the industry, and a competent leadership team.
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By buying during the market's slumps and staying invested through the recovery period, you can maximize your earnings. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Stock prices are lower than they've been in a long time, which means now is your chance to buy at a discount. Some stocks haven't seen a slump like this since 2008, and once the market recovers, it could be years before we see discounts like this again. 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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Some stocks haven't seen a slump like this since 2008, and once the market recovers, it could be years before we see discounts like this again. But right now is the time to "be greedy," as Buffett puts it, and take advantage of these lower prices. That's right -- they think these 10 stocks are even better buys.
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16793.0
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2023-03-13 00:00:00 UTC
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Snap Stock Snaps Back on Prospects for a TikTok Ban
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AAPL
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https://www.nasdaq.com/articles/snap-stock-snaps-back-on-prospects-for-a-tiktok-ban
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nan
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Social media platform Snap Inc. (NYSE: SNAP) stock has been rallying as Congress persists in its efforts to ban social media video platform TikTok in the U.S. This trend has been boosting shares of other U.S. social media platforms like Meta Platforms Inc. (NASDAQ: META) and Pinterest Inc. (NASDAQ: PINS).
The company has been suffering from declining digital advertising sales as companies rein in their marketing budgets. Snapchat has grown its quarterly daily average users (DAUs) to 375 million, up 17% in Q4 2022. Most of the growth is happening internationally, but the average revenue per user (ARPU) is lower with foreign users than U.S. users.
Monetization
Full-year 2022 revenues rose 12% YoY to $4.6 billion. Most revenues come from advertising products Snap Ads and AR Ads. Its ARPU fell to $3.47 in Q4 2022, compared to $4.06 in Q4 2021. Snap Ads are video ads up to 10 seconds long that can be targeted to particular audiences based on variables like demographics, location, interest, and behaviors. AR Ads involve augmented reality, where users can interact with virtual objects in real-world contexts and backgrounds. It overlaps 3D animations onto the user's camera view utilizing Snapchats AR technology.
The company opted not to give forecast expectations for Q1 2023 due to market uncertainty. However, they did mention an internal forecast of revenues falling from (2%) to (10%) YoY.
Gen-Z and Millennials
Snapchat's primary audience is comprised of Gen-Z and Millennials. Its highest demographic users are between the ages of 15 to 25 and comprise 48% of its users. Ages 26 through 35 represent 30% of its users. India has the highest concentration of Snapchat users, around 144.35 million, followed by the U.S., with 108 million.
In the U.S. 65% of the 18 to 29-year-old demographic uses Snapchat. The average user opens the Snapchat app 30 times per day. TikTok has 61% of the 12 to 34-year age group in the U.S. using its app. TikTok is the third most used social media app in the U.S.
A Plea for Apple iOS and Google Play Bans
Democratic Colorado Senator Michael Bennett (D) sent a letter to Tim Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Alphabet Inc. (NASDAQ: GOOGL) CEO Sundar Pichai pleading to remove the TikTok app from their respective app stores. He cited privacy and security concerns.
He noted that the average TikTok user spends 80 minutes daily on the app. Chinese law dictates that companies must support and cooperate with state intelligence work. Its parent company ByteDance has had problems with aggressive data collection methods. Senator Bennett argued that there's too much risk of China weaponizing the data and platform to influence its users.
Texas Bans TikTok for Employees and Contractors
On Feb. 6, 2023, Texas Governor Greg Abbott released details of a statewide Model Security Plan for Prohibited Technologies applicable to all state agencies. This plan bans using TikTok on state-issued devices due to security concerns. In the U.S., 27 states have issued TikTok bans on state-issued mobile devices.
Governor Abbott commented, "The security risks associated with using TikTok on devices used to conduct the important business of our state must not be underestimated or ignored.” He continued, “Owned by a Chinese company that employs Chinese Communist Party members, TikTok harvests significant amounts of data from a user’s device, including details about a user’s internet activity." The plan bans downloading TikTok and other prohibited technology to government-issued phones, laptops, tablets, and desktop computers with the capacity for interest connectivity. This also bans employees and contractors doing state business on prohibited technology-enabled personal phones.
The RESTRICT ACT
On March 7, 2023, Senate Intelligence Committee Chairman Mark Warner (D) unveiled the RESTRICT Act. The bill targets restricting or banning technology from adversarial nations. Warner pointed out the history of individual bans from Kaspersky Labs to Huawei to ZTE and TikTok. He cited that rather than playing whack-a-mole, there needs to be a "comprehensive approach to evaluating and mitigating" the technology threats from adversarial nations, including China, Russia, Venezuela, North Korea, Cuba, and Iran.
The bipartisan legislation was co-sponsored by Republican Senator John Thune back by 12 senators. Senator Thune said, "It's safe to assume that if the CCP is willing to lie about its spy balloon and cover up the origins of the worst pandemic in 100 years, they'll lie about using TikTok to spy on American citizens."
Daily Ascending Triangle
The daily candlestick chart has an ascending triangle of a flat top around $12.44 with a rising trendline that commenced off the $8.05 low in December 2022. The ascending triangle attempted a breakout on Mar. 7, 2023, as shares hit a high of $12.67. Still, SNAP fell on a gap the next day under the rising trendline to test the daily 20-period exponential moving average (EMA) at $10.62.
The daily 50-period MA supports overlapping the daily market structure low (MSL) trigger at $10.24. The sharp pullback is causing the daily stochastic to start crossing back down. Shares must return above the rising trendline at $11.49 to resume the triangle breakout attempt. Pullback support levels are at $9.85, $9.31, $8.88, and $8.05.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TikTok is the third most used social media app in the U.S. A Plea for Apple iOS and Google Play Bans Democratic Colorado Senator Michael Bennett (D) sent a letter to Tim Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Alphabet Inc. (NASDAQ: GOOGL) CEO Sundar Pichai pleading to remove the TikTok app from their respective app stores. Governor Abbott commented, "The security risks associated with using TikTok on devices used to conduct the important business of our state must not be underestimated or ignored.” He continued, “Owned by a Chinese company that employs Chinese Communist Party members, TikTok harvests significant amounts of data from a user’s device, including details about a user’s internet activity." The plan bans downloading TikTok and other prohibited technology to government-issued phones, laptops, tablets, and desktop computers with the capacity for interest connectivity.
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TikTok is the third most used social media app in the U.S. A Plea for Apple iOS and Google Play Bans Democratic Colorado Senator Michael Bennett (D) sent a letter to Tim Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Alphabet Inc. (NASDAQ: GOOGL) CEO Sundar Pichai pleading to remove the TikTok app from their respective app stores. Social media platform Snap Inc. (NYSE: SNAP) stock has been rallying as Congress persists in its efforts to ban social media video platform TikTok in the U.S. This trend has been boosting shares of other U.S. social media platforms like Meta Platforms Inc. (NASDAQ: META) and Pinterest Inc. (NASDAQ: PINS).
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TikTok is the third most used social media app in the U.S. A Plea for Apple iOS and Google Play Bans Democratic Colorado Senator Michael Bennett (D) sent a letter to Tim Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Alphabet Inc. (NASDAQ: GOOGL) CEO Sundar Pichai pleading to remove the TikTok app from their respective app stores. Most of the growth is happening internationally, but the average revenue per user (ARPU) is lower with foreign users than U.S. users. Governor Abbott commented, "The security risks associated with using TikTok on devices used to conduct the important business of our state must not be underestimated or ignored.” He continued, “Owned by a Chinese company that employs Chinese Communist Party members, TikTok harvests significant amounts of data from a user’s device, including details about a user’s internet activity."
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TikTok is the third most used social media app in the U.S. A Plea for Apple iOS and Google Play Bans Democratic Colorado Senator Michael Bennett (D) sent a letter to Tim Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Alphabet Inc. (NASDAQ: GOOGL) CEO Sundar Pichai pleading to remove the TikTok app from their respective app stores. Most of the growth is happening internationally, but the average revenue per user (ARPU) is lower with foreign users than U.S. users. The average user opens the Snapchat app 30 times per day.
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16794.0
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2023-03-13 00:00:00 UTC
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Qualcomm looks to Europe court again to overturn antitrust fine
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AAPL
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https://www.nasdaq.com/articles/qualcomm-looks-to-europe-court-again-to-overturn-antitrust-fine
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nan
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By Foo Yun Chee
LUXEMBOURG, March 13 (Reuters) - U.S. chipmaker Qualcomm QCOM.O returned to Europe's second-top court on Monday seeking to overturn a 242-million-euro ($258.4 million) EU antitrust fine, a year after it convinced the same court to throw out a much bigger penalty in another antitrust case.
The European Commission slapped the fine on Qualcomm in 2019 for selling its chipsets below cost between 2009 and 2011, in a practice known as predatory pricing, to stymie British phone software maker Icera, now part of Nvidia Corp NVDA.O.
The company last year secured a major win as it convinced the General Court to scrap a 997 million euro EU antitrust fine in another case related to payments made to Apple AAPL.O to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O.
Qualcomm lawyer Miguel Rato criticised the Commission's investigations against the company on the first day of the three-day hearing.
"This is the second instalment of the Commission's campaign against Qualcomm. The first was the exclusivity decision squashed by the Court," he told the General Court.
He said the 3G baseband chipsets singled out in the case accounted for just 0.7% of the Universal Mobile Telecommunications System (UMTS) market and thus it was not possible for Qualcomm to shut out rivals from the chipset market.
"What price should Qualcomm have charged for each chipset and each quarter to allow it to pass the price cost test?" Rato said.
Qualcomm's actions showed it was determined to eliminate a rival before it could pose a competitive threat, Commission lawyer Carlos Urraca Caviedes told the court.
"Icera was about to gain a solid foothold in the market segment which was strategically important for future growth. Qualcomm feared that if it did not take action, Icera would grow to expand and become a formidable rival," he said.
The court will rule in the coming months. The case is T-671/19 Qualcomm v Commission.
($1 = 0.9366 euros)
(Reporting by Foo Yun Chee; Editing by Jacqueline Wong)
((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 company last year secured a major win as it convinced the General Court to scrap a 997 million euro EU antitrust fine in another case related to payments made to Apple AAPL.O to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O. The European Commission slapped the fine on Qualcomm in 2019 for selling its chipsets below cost between 2009 and 2011, in a practice known as predatory pricing, to stymie British phone software maker Icera, now part of Nvidia Corp NVDA.O. Qualcomm's actions showed it was determined to eliminate a rival before it could pose a competitive threat, Commission lawyer Carlos Urraca Caviedes told the court.
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The company last year secured a major win as it convinced the General Court to scrap a 997 million euro EU antitrust fine in another case related to payments made to Apple AAPL.O to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O. By Foo Yun Chee LUXEMBOURG, March 13 (Reuters) - U.S. chipmaker Qualcomm QCOM.O returned to Europe's second-top court on Monday seeking to overturn a 242-million-euro ($258.4 million) EU antitrust fine, a year after it convinced the same court to throw out a much bigger penalty in another antitrust case. The first was the exclusivity decision squashed by the Court," he told the General Court.
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The company last year secured a major win as it convinced the General Court to scrap a 997 million euro EU antitrust fine in another case related to payments made to Apple AAPL.O to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O. By Foo Yun Chee LUXEMBOURG, March 13 (Reuters) - U.S. chipmaker Qualcomm QCOM.O returned to Europe's second-top court on Monday seeking to overturn a 242-million-euro ($258.4 million) EU antitrust fine, a year after it convinced the same court to throw out a much bigger penalty in another antitrust case. Qualcomm's actions showed it was determined to eliminate a rival before it could pose a competitive threat, Commission lawyer Carlos Urraca Caviedes told the court.
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The company last year secured a major win as it convinced the General Court to scrap a 997 million euro EU antitrust fine in another case related to payments made to Apple AAPL.O to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O. By Foo Yun Chee LUXEMBOURG, March 13 (Reuters) - U.S. chipmaker Qualcomm QCOM.O returned to Europe's second-top court on Monday seeking to overturn a 242-million-euro ($258.4 million) EU antitrust fine, a year after it convinced the same court to throw out a much bigger penalty in another antitrust case. The first was the exclusivity decision squashed by the Court," he told the General Court.
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16795.0
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2023-03-13 00:00:00 UTC
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3 Stocks Warren Buffett Can't Stop Buying
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AAPL
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https://www.nasdaq.com/articles/3-stocks-warren-buffett-cant-stop-buying
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nan
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nan
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells stock, everyday and professional investors alike pay close attention. That's because the Oracle of Omaha, as he's come to be known, has vastly outperformed Wall Street's benchmark stock indexes since he became CEO in 1965.
According to Buffett's most recent letter to his company's shareholders, Berkshire Hathaway's Class A shares (BRK.A) are up 3,787,464%, compared to 24,708% for the S&P 500, including dividends paid, since he took over.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Riding Buffett's coattails has been a moneymaking proposition for decades -- and it's made all the easier thanks to Form 13F filings with the Securities and Exchange Commission, which allow investors a quarterly under-the-hood look at what he and his team have been buying and selling. Based on 13Fs and the company's quarterly operating results, there are three stocks Warren Buffett can't stop buying.
Occidental Petroleum
The first stock the Oracle of Omaha and his investment team simply can't stop buying is oil stock Occidental Petroleum (NYSE: OXY). In terms of common stock, Berkshire Hathaway owned no shares of Occidental Petroleum prior to the start of 2022. But since then, Buffett's company has acquired nearly 200.2 million shares.
The most logical reason for Buffett and his investing lieutenants, Ted Weschler and Todd Combs, to build up this stake is with the expectation that the price of crude oil will remain well above average for the foreseeable future. A number of factors suggest this thesis holds water.
For instance, Russia's invasion of Ukraine casts doubt on Europe's future energy supply needs. Additionally, the COVID-19 pandemic caused global energy companies to substantially pare back their capital expenditures for the past three years. Without sizable investments in drilling, exploration, pipelines, and refineries, it will be incredibly difficult to ramp up supply domestically and abroad.
The interesting thing about Occidental Petroleum compared to Chevron, Berkshire's third-largest holding by market value, is its revenue mix. Even though Occidental is an integrated operator, it generates the bulk of its revenue from drilling. If the macro factors described above do, indeed, support a sustainably higher price for crude oil, Occidental could benefit even more than Chevron. In other words, I believe Occidental Petroleum allows Buffett and his team to leverage their bet on higher crude prices.
Occidental Petroleum's balance sheet is also improving as a result of higher energy commodity prices. At the end of March 2021, the company had a ghastly $35.5 billion net debt. However, it closed out 2022 with $19.7 billion in net debt. With a more flexible balance sheet, Occidental's board OK'd a 38% dividend increase and a brand-new $3 billion share repurchase program.
Apple
A second stock Warren Buffett can't stop buying for his company's investment portfolio is tech giant Apple (NASDAQ: AAPL). Despite already being the largest holding in Berkshire Hathaway's portfolio by a significant amount (42.1% of invested assets), Buffett and his team have purchased 8,000,621 shares of Apple stock since 2022 began.
In Buffett's 2021 letter to shareholders, he described Apple as one of Berkshire's "Four Giants." With Apple accounting for $140 billion of his company's $333 billion investment portfolio, this is a fair statement.
What stands out about the largest publicly traded company in the world is its incredible cash flow. Last year, Apple generated an almost unfathomable $109.2 billion in operating cash flow. This reflects the company's top-tier brand power, as well as the innovation it's used to drive sales growth for well over a decade.
On the one hand, Apple's physical products have long endeared consumers to its brand. It has controlled in the neighborhood of 50% of the U.S. smartphone market share since introducing a 5G-capable iPhone in late 2020. Apple also saw its U.S. share of the personal computer market soar to decade highs late last year.
But it's Apple's ongoing evolution to a services-driven operating model that should have shareholders excited. The company's newfound focus on subscription services will further enhance customer loyalty, boost operating margins, and help minimize revenue fluctuations common when Apple undergoes product replacement cycles with the iPhone.
However, Warren Buffett's favorite thing about Apple might just be its capital-return program. Aside from paying one of the highest nominal-dollar dividends each year (about $14.5 billion), Apple has returned in excess of $550 billion via share buybacks since the beginning of 2013. Excluding itself, the value of Apple's share repurchases over the past 10 years is more than 494 of the 499 S&P 500 companies. Thanks to these buybacks, Berkshire Hathaway can simply sit back and grow its stake in Apple without lifting a finger.
Image source: Getty Images.
Berkshire Hathaway
Cue the plot twist! The third stock Warren Buffett absolutely can't stop buying is shares of his own company, Berkshire Hathaway.
Prior to July 2018, Warren Buffett and his trusted sidekick, executive vice chairman Charlie Munger, were only allowed to repurchase Berkshire stock if it fell to or below 120% of book value (i.e., no more than 20% above book value). For more than a half-decade leading up to July 2018, no buybacks were made because Berkshire Hathaway stock never fell to or below this required level.
In July 2018, the company's board passed new measures that gave its dynamic duo the freedom to buy back stock, so long as two criteria were met:
There must be at least $30 billion in cash, cash equivalents, and U.S. Treasuries on Berkshire Hathaway's balance sheet; and
Warren Buffett and Charlie Munger must agree that Berkshire Hathaway stock is trading below its intrinsic value.
With these conditions met, Buffett and Munger have had a field day green-lighting Class A (BRK.A) and Class B (BRK.B) share repurchases. In less than 4 1/2 years, they've overseen the repurchase of $66 billion in Berkshire stock.
The most obvious benefit of share repurchase activity for companies with steady or growing net income is that it can provide a positive lift to earnings per share. Over time, this can make a publicly traded company that much more attractive.
But make no mistake, buying $66 billion worth of Berkshire Hathaway stock is also Buffett's way of betting on himself and demonstrating to his shareholders that he has complete faith in the company's investment portfolio and roughly five dozen owned businesses. Since most of Berkshire's owned and invested assets are cyclical businesses, they're poised to grow in lockstep with the U.S. and global economy over the long run.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends 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 A second stock Warren Buffett can't stop buying for his company's investment portfolio is tech giant Apple (NASDAQ: AAPL). Riding Buffett's coattails has been a moneymaking proposition for decades -- and it's made all the easier thanks to Form 13F filings with the Securities and Exchange Commission, which allow investors a quarterly under-the-hood look at what he and his team have been buying and selling. The company's newfound focus on subscription services will further enhance customer loyalty, boost operating margins, and help minimize revenue fluctuations common when Apple undergoes product replacement cycles with the iPhone.
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Apple A second stock Warren Buffett can't stop buying for his company's investment portfolio is tech giant Apple (NASDAQ: AAPL). When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells stock, everyday and professional investors alike pay close attention. Occidental Petroleum The first stock the Oracle of Omaha and his investment team simply can't stop buying is oil stock Occidental Petroleum (NYSE: OXY).
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Apple A second stock Warren Buffett can't stop buying for his company's investment portfolio is tech giant Apple (NASDAQ: AAPL). The third stock Warren Buffett absolutely can't stop buying is shares of his own company, Berkshire Hathaway. In July 2018, the company's board passed new measures that gave its dynamic duo the freedom to buy back stock, so long as two criteria were met: There must be at least $30 billion in cash, cash equivalents, and U.S. Treasuries on Berkshire Hathaway's balance sheet; and Warren Buffett and Charlie Munger must agree that Berkshire Hathaway stock is trading below its intrinsic value.
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Apple A second stock Warren Buffett can't stop buying for his company's investment portfolio is tech giant Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. Occidental Petroleum The first stock the Oracle of Omaha and his investment team simply can't stop buying is oil stock Occidental Petroleum (NYSE: OXY).
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16796.0
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2023-03-13 00:00:00 UTC
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Unusual Options Activity in Tesla, Nvidia and 5 Other Stocks
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AAPL
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https://www.nasdaq.com/articles/unusual-options-activity-in-tesla-nvidia-and-5-other-stocks
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nan
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nan
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Many investors brush off unusual options activity, but others like to “follow the flow.” When large investors — like hedge funds, for example — make big moves in the options world, it shows up in a very interesting way. We refer to this as “unusual options activity” and it serves as a way to see what the big investors are doing.
Luckily there’s a leaderboard of options activity for both calls and puts and it helps us track all of the outsized volume.
Fintel's aslo got a leaderboard for ETFs, too.
With that in mind, let’s look at the stocks that stuck out the most on the call side and the put side this past week.
Tesla (TSLA)
In the options world, it’s always a busy week for Tesla (US:TSLA) and last week is no different, particularly on March 9 when the electric vehicle-maker's stock had a lot of heavy options flow.
Perhaps most prominent were the deep-in-the-money June $400 puts. On their own, this would create a big short position in the stock without shorting the stock outright. It came as one trader bought more than $53 million worth of premium in these puts. However, it appears to be tied to the sale of $9.6 million worth of the June $366.67 puts and likely part of a more complex spread.
Separately, just 20 minutes before the close that day, someone sold $4.1 million worth of the in-the-money $230 puts expiring on the following day, March 10 — a bullish options trade. Lastly, there was another bullish put sale, this time in the January $400 puts as someone sold $11.3 million worth of premium.
Home Depot (HD)
Leading retail stocks on the options leaderboard this week, Home Depot (US:HD) had several notable trades stand out.
On March 8, one trader bought $10 million worth of the January $390 puts, while selling more than $11 million worth of the January $380 puts. This was a complex spread, as the same trader or firm also sold $3.59 million worth of the $350 puts expiring in June.
That same day, there were huge put sellers in the March expiration. That includes $5 million worth of the $345 put, $11.7 million worth of the $340 put, $15 million worth of the $325 puts, $32 million worth of the $320 puts, $8 million worth of the $330 puts and finally, $5.3 million worth of the $325 puts.
In all, that totaled more than $77 million worth of in-the-money premium, with shares trading near $290 at the time of the trade.
PayPal (PYPL)
Coming in at No. 3 on the options flow leaderboard was PayPal (US:PYPL). Again, this flow stood out as bullish put sales.
That’s after someone sold $9.8 million worth of the January $160 puts on March 7, while shares were trading near $75. In other words, these were deep-in-the-money. However, a day later more sales showed up. That’s as someone (likely the same trader) sold another $11.7 million worth of the same puts, then another $13.4 million.
One more trade stood out, as another trader sold $11.9 million worth of the September $130 puts.
Apple (AAPL)
It wouldn’t be a normal week if there wasn’t some notable flow in Apple (US:AAPL).
On March 9, one firm or trader sold $11.8 million worth of the at-the-money June $150 puts when shares were trading near $154.
The day before, someone scooped up $1.85 million worth of the May out-of-the-money $145 puts, likely indicating an outright bearish position.
Lastly, one more bearish trade stood out from March 7. That’s as one trader sold $10.2 million worth of the March 24th $150 calls. At the time, these calls were slightly in-the-money and it appears the trader is banking on a pullback in the stock.
Disney (DIS)
I’m surprised Disney (US:DIS) was not at the top of this week’s options flow leaderboard given a few of the trades. The biggest one that sticks out?
The $51.1 million that was collected by one firm after selling the deep-in-the-money January $270 puts, while shares were trading near $99. This is a massive position. It’s not atypical to see seven-figure options trades from institutions. Eight-figure trades occasionally pass the trade desks on the indices or the bigger stocks.
But a trade in excess of $50 million? That is truly behemoth — but it’s not the only action we saw in this particular strike.
Another $51 million hit the tape at the same time, while the same firm bought $45.1 million of the January $260 puts and $42.7 million of the $160 puts.
A day later, more action could be seen in these strikes, albeit, with smaller size. It’s certainly part of a more complex spread given the size and the strike locations.
Goldman Sachs (GS)
It’s been an interesting week for the banks, so this trader may not be all that happy with their position in Goldman Sachs (US:GS).
On March 8, one trader sold $11.4 million worth of the March 17 $390 puts and $3.55 million worth of the March 17 $380 puts. Unless they had another position in which to spread these options, it appears to be a bullish in-the-money put sale.
These puts were also pretty active a week ago, but in that instance, it was someone getting long these puts (in other words, a bearish bet). From the data though, we can tell that the recent selling action in the $390 puts were sold to open. In other words, it was not the buyer from the previous week getting out.
Nvidia (NVDA)
Nvidia (US:NVDA) has been one of the top-performing large cap stocks so far in 2023, roaring ahead to boast massive gains. Through March 9, shares were up 60% year to date.
However, that day, several bearish trades really stood out.
Those include a $2.4 million purchase of the at-the-money September $240 puts and a $2.8 million sale of the March 31st $235 calls (which were slightly in-the-money).
A day earlier, one trader bought $1.1 million worth of the March 17 $230 puts, and on March 7, someone bought $1.6 million worth of the April $240 puts.
Of course, that’s not to say there hasn’t been some bullish options activity as well. Most notably, one firm scooped up $1.1 million of the April $250 calls — a relatively short-term bet for a further rally in the stock — while someone dropped $7.7 million in premium for the June 2025 deep-in-the-money $120 calls, which expire in more than two years!
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) It wouldn’t be a normal week if there wasn’t some notable flow in Apple (US:AAPL). Luckily there’s a leaderboard of options activity for both calls and puts and it helps us track all of the outsized volume. However, it appears to be tied to the sale of $9.6 million worth of the June $366.67 puts and likely part of a more complex spread.
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Apple (AAPL) It wouldn’t be a normal week if there wasn’t some notable flow in Apple (US:AAPL). Separately, just 20 minutes before the close that day, someone sold $4.1 million worth of the in-the-money $230 puts expiring on the following day, March 10 — a bullish options trade. That includes $5 million worth of the $345 put, $11.7 million worth of the $340 put, $15 million worth of the $325 puts, $32 million worth of the $320 puts, $8 million worth of the $330 puts and finally, $5.3 million worth of the $325 puts.
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Apple (AAPL) It wouldn’t be a normal week if there wasn’t some notable flow in Apple (US:AAPL). That includes $5 million worth of the $345 put, $11.7 million worth of the $340 put, $15 million worth of the $325 puts, $32 million worth of the $320 puts, $8 million worth of the $330 puts and finally, $5.3 million worth of the $325 puts. On March 8, one trader sold $11.4 million worth of the March 17 $390 puts and $3.55 million worth of the March 17 $380 puts.
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Apple (AAPL) It wouldn’t be a normal week if there wasn’t some notable flow in Apple (US:AAPL). 3 on the options flow leaderboard was PayPal (US:PYPL). That’s after someone sold $9.8 million worth of the January $160 puts on March 7, while shares were trading near $75.
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16797.0
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2023-03-13 00:00:00 UTC
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GRAPHIC-SVB collapse a sign of pain coming from end of easy-cash era
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AAPL
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https://www.nasdaq.com/articles/graphic-svb-collapse-a-sign-of-pain-coming-from-end-of-easy-cash-era
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nan
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Repeats item that first ran on Friday
LONDON, March 10 (Reuters) - The easy-cash era is over and its impact is only just starting to felt by world markets yet to see the end of the sharpest interest rate hiking cycle in decades.
Risks were brought to a fore this week as U.S. tech specialist Silicon Valley Bank was shut by California banking regulators on Friday, sparking a rout in bank stocks. SVB was seeking funds to offset a hit on a $21 billion bond portfolio, a result of surging rates, as customers withdrew deposits.
Central banks meanwhile are shrinking their balance sheets by offloading bond holdings as part of their fight against hot inflation.
We look at some potential pressure points.
1/ BANKS
Bank have shot up the worry list as the SVB rout hit bank stocks globally on contagion fears. European banks slid on Friday after JPMorgan JPM.N and BofA BAC.N shares fell over 5% on Thursday.
SVB's troubles stemmed from deposit outflows as clients in the tech and healthcare sectors struggled to raise cash elsewhere, raising questions over whether other banks would have to cover deposit outflows with loss-making bond sales too.
In February, U.S. regulators said U.S. banks had unrealised losses of more than $620 billion on securities, underscoring the hit from rising interest rates.
Germany's Commerzbank issued a rare statement playing down any threat from SVB.
For now, analysts saw SVB's issues as idiosyncratic and took comfort from safer business models at larger banks. BofA noted European banks' bond holdings have not grown since 2015.
"Normally speaking, banks would not be taking big duration bets with deposits, but with such rapid rate rises it is clear why investors could be worried and are selling now and asking questions later," said Gary Kirk, partner at TwentyFour Asset Management.
2/ DARLINGS NO MORE
Even after a first-quarter surge in stock prices, higher rates have dampened the willingness to take punts on early-stage or speculative businesses, especially as established tech firms have issued profit warnings and cut jobs.
Tech firms are reversing pandemic-era exuberance, cutting jobs after years of hiring sprees. Google owner Alphabet plans to axe about 12,000 workers; Microsoft, Amazon and Meta are together firing almost 40,000.
"Despite being a rate sensitive investment, NASDAQ has not responded to the implications of interest rates. If rates continue to rise in 2023, we may see a significant sell-off," said Bruno Schneller, a managing director at INVICO Asset Management.
3/ DEFAULT RISKS
The risk premium on corporate debt has fallen since the start of the year and signals little risk, but corporate defaults are rising.
S&P Global said Europe had the second-highest default count last year since 2009.
It expects U.S. and European default rates to reach 3.75% and 3.25%, respectively, in September 2023 versus 1.6% and 1.4% a year before, with pessimistic forecasts of 6.0% and 5.5% not "out of the question."
And with defaults rising, the focus is on the less visible private debt markets, which have ballooned to $1.4 trillion from $250 billion in 2010.
In a low rate world, the largely floating-rate nature of the financing appealed to investors, who can reap returns up to the low double digits, but now that means ballooning interest costs as central banks hike rates.
4/CRYPTO WINTER
Bitcoin staged a recovery at the start of the year but was languishing at two-month lows on Friday BTC=BTSP.
Caution remains. After all, rising borrowing costs roiled crypto markets in 2022, with Bitcoin prices plunging 64%.
The collapse of various dominant crypto companies, most notably FTX, left investors shouldering large losses and prompted calls for more regulation.
Shares of crypto-related companies fell on March 9, after Silvergate Capital Corp SI.N, one of the biggest banks in the cryptocurrency industry announced it would wind down operations and sparked a crisis of confidence in the industry.
5/FOR SALE
Real estate markets started cracking last year and house prices will fall further this year.
Fund managers surveyed by BofA see China's troubled real estate sector as the second most likely source of a credit event.
European real estate reported distress levels not seen since 2012 by November, law firm Weil, Gotshal & Manges found.
How the sector funds itself is key. Officials warn European banks risk significant profit hits from sliding house prices, which is making them less likely to lend to the sector.
Real estate investment management firm AEW estimates the sector in UK, France and Germany could face a 51 billion euro debt funding gap through 2025.
Asset managers Brookfield and Blackstone recently defaulted on some debt tied to real estate as interest rate hikes and falling demand for offices in particular hit property values.
"The reality that some of the values out there aren't right and perhaps need to be marked down is something that everyone's focused on," said Brett Lewthwaite, global head of fixed income at Macquarie Asset Management.
($1 = 0.9192 euros)
Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm
Corporate default rate may double in 2023https://tmsnrt.rs/3JudelY
Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3j7ru9z
Pain in crypto landhttps://tmsnrt.rs/3JrguyK
Tech layoffs announced in the last four monthshttps://tmsnrt.rs/3T6UID4
U.S. banking sell-off U.S. banking sell-offhttps://tmsnrt.rs/41YxaEq
(Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Toby Chopra)
((Chiara.Elisei@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Repeats item that first ran on Friday LONDON, March 10 (Reuters) - The easy-cash era is over and its impact is only just starting to felt by world markets yet to see the end of the sharpest interest rate hiking cycle in decades. "Normally speaking, banks would not be taking big duration bets with deposits, but with such rapid rate rises it is clear why investors could be worried and are selling now and asking questions later," said Gary Kirk, partner at TwentyFour Asset Management. ($1 = 0.9192 euros) Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm Corporate default rate may double in 2023https://tmsnrt.rs/3JudelY Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3j7ru9z Pain in crypto landhttps://tmsnrt.rs/3JrguyK Tech layoffs announced in the last four monthshttps://tmsnrt.rs/3T6UID4 U.S. banking sell-off U.S. banking sell-offhttps://tmsnrt.rs/41YxaEq (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Toby Chopra) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a low rate world, the largely floating-rate nature of the financing appealed to investors, who can reap returns up to the low double digits, but now that means ballooning interest costs as central banks hike rates. Officials warn European banks risk significant profit hits from sliding house prices, which is making them less likely to lend to the sector. ($1 = 0.9192 euros) Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm Corporate default rate may double in 2023https://tmsnrt.rs/3JudelY Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3j7ru9z Pain in crypto landhttps://tmsnrt.rs/3JrguyK Tech layoffs announced in the last four monthshttps://tmsnrt.rs/3T6UID4 U.S. banking sell-off U.S. banking sell-offhttps://tmsnrt.rs/41YxaEq (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Toby Chopra) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Risks were brought to a fore this week as U.S. tech specialist Silicon Valley Bank was shut by California banking regulators on Friday, sparking a rout in bank stocks. In a low rate world, the largely floating-rate nature of the financing appealed to investors, who can reap returns up to the low double digits, but now that means ballooning interest costs as central banks hike rates. ($1 = 0.9192 euros) Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm Corporate default rate may double in 2023https://tmsnrt.rs/3JudelY Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3j7ru9z Pain in crypto landhttps://tmsnrt.rs/3JrguyK Tech layoffs announced in the last four monthshttps://tmsnrt.rs/3T6UID4 U.S. banking sell-off U.S. banking sell-offhttps://tmsnrt.rs/41YxaEq (Reporting by Yoruk Bahceli, Chiara Elisei, Nell Mackenzie, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Toby Chopra) ((Chiara.Elisei@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In February, U.S. regulators said U.S. banks had unrealised losses of more than $620 billion on securities, underscoring the hit from rising interest rates. Real estate markets started cracking last year and house prices will fall further this year. Real estate investment management firm AEW estimates the sector in UK, France and Germany could face a 51 billion euro debt funding gap through 2025.
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16798.0
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2023-03-13 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-1
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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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16799.0
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2023-03-12 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-4
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nan
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nan
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In his most recent letter to Berkshire Hathaway shareholders, CEO Warren Buffett laid out an important bit of investing wisdom: "The weeds wither away in significance as the flowers bloom." He also noted that it really only takes a few spectacular winners to deliver strong returns and work wonders for a portfolio.
Given that Berkshire's share price has climbed more than 2,598,000% since Buffett acquired the business and became its CEO in May 1965, it's no stretch to say the Oracle of Omaha knows what he's talking about. Had you owned $1,000 worth of the company's stock then, it would now be worth nearly $26 million.
With Buffett's incredible track record of investing success in mind, read on for a look at five stocks held by Berkshire Hathaway that have what it takes to power your own portfolio to market-beating returns.
Image source: The Motley Fool.
1. Apple
Apple (NASDAQ: AAPL) is the world's largest publicly traded company and one of its most profitable businesses. With such incredible brand strength and consistently great earnings generation, it's little wonder that the stock is so beloved by Buffett. In fact, Apple stands as Berkshire's largest stock holding and accounts for approximately 39% of the investment conglomerate's total equity portfolio.
To put Apple's industry-dominating performance in perspective, Counterpoint Research estimates that the company captured roughly 85% of total operating profits in the global smartphone market last year. Generating 85% of annual operating profits in any industry is an utterly astounding feat. It's even more eye-catching in the phone space because there are many other device manufacturers out there. Hardware devices also typically suffer from commodification trends that depress margins for all players involved and make it difficult for any single operator to run away with such commanding market share.
Apple managed to defy commodification trends through design expertise and product innovation and refinement. Essentially, the company has built a lifestyle brand into and around its technology products and services, and this brand resonates with an incredibly wide and loyal audience.
2. Amazon
Compared to Apple, Amazon (NASDAQ: AMZN) represents a minuscule part of Berkshire's overall stock portfolio. The e-commerce and cloud computing giant accounts for less than 1% of the equity holdings of Buffett's company. But if you're looking for great tech stocks that have Berkshire's backing, Amazon stock has the makings of a great long-term buy -- particularly on the heels of recent sell-offs.
AMZN PS Ratio (Forward) data by YCharts
In addition to the impact that inflation and other macroeconomic pressures have had on the company's share price, Amazon has also been posting growth that's much slower than investors have become accustomed to in light of these headwinds. But even with the growth slowdown, the stock looks opportunistically valued trading at approximately 1.7 times this year's expected sales, and the stock's roughly 50% pullback from its high presents a worthwhile buying opportunity for long-term investors.
While Amazon's core e-commerce and cloud infrastructure segments are both facing elevated costs and diminished growth opportunities in the near term due to challenging economic conditions, there's a good chance these challenges will eventually dissipate. When they do, there's also a good chance Amazon will still have its leading positions in these highly influential industries and return to posting stronger sales and earnings growth.
3. Snowflake
It's been said that no two snowflakes are exactly alike, and in some respects, Snowflake (NYSE: SNOW) is also unlike any other company held in the Berkshire Hathaway portfolio. With the data-services specialist trading at approximately 16 times expected sales even after its stock has fallen 66% from its peak level, it certainly has one of the most unusual valuation profiles of any companies that the investment conglomerate owns a stake in.
SNOW PS Ratio (Forward) data by YCharts
While the company's forward price-to-sales multiple might look staggering, it's worth noting that the business recorded a non-GAAP (adjusted) free cash flow margin of 25% last fiscal year and it expects to record approximately the same margin this year as well. With Snowflake posting 70% product-revenue growth last year and guiding for 40% growth this year even in the face of significant macroeconomic pressures, the company's valuation begins to look less daunting.
Even though Snowflake's valuation looks atypical for a Berkshire portfolio component, it does have elements that are in line with classic, Buffett-style investing. Snowflake is a leader in data warehousing technologies that make it easy for customers to combine and analyze data from otherwise walled-off cloud-infrastructure services, and it appears to be building a powerful moat in this category.
4. Paramount Global
Paramount Global (NASDAQ: PARA) was one of just a handful of stocks that Berkshire bought in the fourth quarter, the others being Apple, Occidental Petroleum, and Louisiana Pacific. Why did the investment conglomerate identify the media company as one of the best buys on the market last quarter? The investment conglomerate hasn't given a detailed breakdown on the rationale for the recent purchase, but it looks to be a classic, Buffett-style value play.
PARA Price to Book Value data by YCharts
With Paramount trading at a price-to-book value of roughly 0.6 despite some emerging growth catalysts for the business, Buffett and his portfolio managers and analyst teams may see signs that the stock is trading below its intrinsic value. The company is also valued at less than 50% of expected forward sales, 14 times trailing earnings, and 26 times expected forward earnings for this year.
In addition to its theatrical film business and network, cable, and premium television channels, the company has been rapidly gaining ground in the streaming space. With the business adding a record 9.9 million subscribers for its Paramount+ service in the fourth quarter, the company's streaming service increased revenue roughly 81% year over year and helped push overall revenue up 2%, despite a 7% drop in the sales for the much larger TV media segment.
The company will likely go through some growing pains as it continues its transformation to be a more streaming-oriented business, but it looks cheaply valued and has the potential to deliver strong returns.
5. American Express
American Express (NYSE: AXP) has the makings of a great dividend growth stock. As per the company's recently announced dividend hike, AmEx will be increasing its quarterly payout 15% to $0.60 per share. Based on the company's current share price, the stock has a forward yield of roughly 1.4%. Even prior to the upcoming payout increase going into effect, the financial services giant has increased its payout 160% over the last decade. It's also been returning value to shareholders in another way.
Image source: Getty Images.
By buying back and retiring shares, AmEx has decreased its outstanding share count by nearly a third over the last 10 years.Reducing the total number of shares has the effect of increasing the amount of earnings per share, and along with positive trends for the business, this catalyst has helped push earnings per share up 149% across the stretch. While some investors might argue that buying back shares isn't the best use of capital, it can be a smart move for relatively mature businesses that aren't under pressure to diversify or blaze a trail with new growth initiatives.
Having guided Berkshire to repurchase $66 billion worth of its own stock over the last four years, it's clear that Buffett is a fan of buybacks, and he might find a lot to like about the recent decision from AmEx's board of directors to authorize the repurchasing of 120 million of its common-stock shares. In addition to creating a positive catalyst for AmEx's earnings and creating more room for dividend increases, new stock buybacks will also have the effect of increasing Berkshire's overall ownership stake in the business.
10 stocks we like better than Apple
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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Snowflake. 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 the world's largest publicly traded company and one of its most profitable businesses. With Buffett's incredible track record of investing success in mind, read on for a look at five stocks held by Berkshire Hathaway that have what it takes to power your own portfolio to market-beating returns. AMZN PS Ratio (Forward) data by YCharts In addition to the impact that inflation and other macroeconomic pressures have had on the company's share price, Amazon has also been posting growth that's much slower than investors have become accustomed to in light of these headwinds.
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Apple Apple (NASDAQ: AAPL) is the world's largest publicly traded company and one of its most profitable businesses. PARA Price to Book Value data by YCharts With Paramount trading at a price-to-book value of roughly 0.6 despite some emerging growth catalysts for the business, Buffett and his portfolio managers and analyst teams may see signs that the stock is trading below its intrinsic value. The company is also valued at less than 50% of expected forward sales, 14 times trailing earnings, and 26 times expected forward earnings for this year.
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Apple Apple (NASDAQ: AAPL) is the world's largest publicly traded company and one of its most profitable businesses. But even with the growth slowdown, the stock looks opportunistically valued trading at approximately 1.7 times this year's expected sales, and the stock's roughly 50% pullback from its high presents a worthwhile buying opportunity for long-term investors. By buying back and retiring shares, AmEx has decreased its outstanding share count by nearly a third over the last 10 years.Reducing the total number of shares has the effect of increasing the amount of earnings per share, and along with positive trends for the business, this catalyst has helped push earnings per share up 149% across the stretch.
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Apple Apple (NASDAQ: AAPL) is the world's largest publicly traded company and one of its most profitable businesses. In fact, Apple stands as Berkshire's largest stock holding and accounts for approximately 39% of the investment conglomerate's total equity portfolio. By buying back and retiring shares, AmEx has decreased its outstanding share count by nearly a third over the last 10 years.Reducing the total number of shares has the effect of increasing the amount of earnings per share, and along with positive trends for the business, this catalyst has helped push earnings per share up 149% across the stretch.
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