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16800.0
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2023-03-12 00:00:00 UTC
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2 Top Bargain Stocks Ready for Bull Runs
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AAPL
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https://www.nasdaq.com/articles/2-top-bargain-stocks-ready-for-bull-runs-2
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nan
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nan
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You're not alone if you've found yourself frustrated with the ongoing turbulence afflicting the broader market. While there's no telling when the waters may settle down, if you're investing in wonderful businesses primed for growth over a period of many years you don't need a crystal ball.
Rather than trying to time the market, by continuing to invest through both its peaks and its valleys you can build a consistent pattern of investing that enables you to grow your returns through the years while keeping you ready to benefit from the market's best days. Today we're going to look at two wonderful businesses that have been discounted by the market over the last year, but remain on growth trajectories that could see shares soar when the market experiences a prolonged rebound.
Let's take a closer look.
1. Apple
Apple (NASDAQ: AAPL) has long dominated the smartphone industry, a space on track to be worth just shy of $500 billion by the year 2026, where it controls a roughly 23% market share. Over the years, Apple has shown its ability to enter and disrupt markets across a wide range of consumer technology products, from tablets to wearables to home accessories. The company's services segment, which includes everything from revenue derived from Apple Music to Apple Books, hasn't quite caught up to the growth trajectory of its smartphone segment, but this subscription-centric portion of its business is increasingly accounting for more and more of its overall sales and profits.
In the most recent quarter (which Apple reported as the first quarter of its fiscal 2023), total sales came to $117 billion, while its profits totaled $30 billion. Out of that sales total, $66 billion was derived from smartphone sales, while a whopping $21 billion came just from its services segment. Over the past three years alone, Apple has seen its top and bottom lines grow by respective amounts of 44% and 74%, while its cash from operations has grown by 51%. On that latter note, Apple generated operating cash flow of $34 billion in the most recent quarter alone.
Apple is still heavily dependent on smartphone sales, but less so than it was a few years ago. And the continued expansion of its range of products and services, as well as its leadership in the core product markets in which it operates, mean that the company is positioned to continue capturing the trajectory of consumer spending as that recovers over the long term. Even as advertising spending is down right now, this is a more emerging segment of Apple's business that management thinks could pose multi-billion-dollar potential for the company. This is just another example of the fact that Apple is a company that isn't content to rest on the growth of one business, but continues to aggressively pursue many catalysts to drive future sales and profits.
Shares have risen 15% since the start of 2023, compared to the S&P 500's rise of about 1% year to date. Still, the tech giant is trading at a price-to-sales ratio of only 6. Given the forward-looking potential of this household name business, and its incredible track record of growth in a wide range of markets -- one which it continues to build upon even in the current challenging consumer spending landscape -- the tech stock may be just too good to overlook.
2. Amazon
Amazon (NASDAQ: AMZN) distressed some investors with its 2022 earnings results, but it's important to bear in mind the context in which these financials were reported, as well as the current consumer and enterprise spending landscape. On the one hand, Amazon generated net sales of $514 billion in full-year 2022, representing an increase of 9% from 2021, while its Amazon Web Services segment alone brought in revenue of $80 billion, a 30% jump from the prior year.
While operating income was down, this still came in at $12 billion for the 12-month period, while the company finished out the year with cash and investments on its balance sheet to the tune of about $70 billion. The real sore spot for many investors was the net loss Amazon recorded for 2022, its first in over a decade. Here's the thing, though -- this wasn't an operational loss, or related to any other issues stemming from Amazon's core collection of businesses.
Instead, that $2.7 billion net loss that Amazon reported in 2022 was almost entirely related to a decline in its common stock holdings in Rivian. While its long-standing deal with the electric vehicle maker is poised to revolutionize the delivery portion of its supply chain processes over the next decade -- the company plans to have 100,000 of the company's electric vehicles on the road delivering its products by the year 2030 -- Rivian has been totally battered by the market over the last year, to the tune of 65%.
The market has also discounted shares of Amazon over the last year -- by 30% over the trailing 12 months -- though the stock is up by about 12% since the start of the year. The company currently trades at a quite palatable price-to-sales valuation of 2. As always, share price alone shouldn't make you buy or sell a stock. But looking at the continued promising growth story of this business, its ongoing market leadership in the e-commerce and cloud infrastructure industries (not to mention its growing footprints in markets like entertainment and healthcare), and strong financial foundation, the current discounted environment may create a compelling buying proposition for risk-resilient long-term investors. Holding onto Amazon through the next bull market and beyond could be a very smart move.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rachel Warren has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com 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.
|
Apple Apple (NASDAQ: AAPL) has long dominated the smartphone industry, a space on track to be worth just shy of $500 billion by the year 2026, where it controls a roughly 23% market share. Over the years, Apple has shown its ability to enter and disrupt markets across a wide range of consumer technology products, from tablets to wearables to home accessories. This is just another example of the fact that Apple is a company that isn't content to rest on the growth of one business, but continues to aggressively pursue many catalysts to drive future sales and profits.
|
Apple Apple (NASDAQ: AAPL) has long dominated the smartphone industry, a space on track to be worth just shy of $500 billion by the year 2026, where it controls a roughly 23% market share. In the most recent quarter (which Apple reported as the first quarter of its fiscal 2023), total sales came to $117 billion, while its profits totaled $30 billion. And the continued expansion of its range of products and services, as well as its leadership in the core product markets in which it operates, mean that the company is positioned to continue capturing the trajectory of consumer spending as that recovers over the long term.
|
Apple Apple (NASDAQ: AAPL) has long dominated the smartphone industry, a space on track to be worth just shy of $500 billion by the year 2026, where it controls a roughly 23% market share. The company's services segment, which includes everything from revenue derived from Apple Music to Apple Books, hasn't quite caught up to the growth trajectory of its smartphone segment, but this subscription-centric portion of its business is increasingly accounting for more and more of its overall sales and profits. The market has also discounted shares of Amazon over the last year -- by 30% over the trailing 12 months -- though the stock is up by about 12% since the start of the year.
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Apple Apple (NASDAQ: AAPL) has long dominated the smartphone industry, a space on track to be worth just shy of $500 billion by the year 2026, where it controls a roughly 23% market share. While operating income was down, this still came in at $12 billion for the 12-month period, while the company finished out the year with cash and investments on its balance sheet to the tune of about $70 billion. The market has also discounted shares of Amazon over the last year -- by 30% over the trailing 12 months -- though the stock is up by about 12% since the start of the year.
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16801.0
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2023-03-12 00:00:00 UTC
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Is It Too Late to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-apple-stock-1
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nan
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nan
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With a market cap of $2.38 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Its business has skyrocketed over the years, with its stock soaring over 117,000% since the company went public in December 1980.
Apple's immense success is mainly due to its focus on quality products, which allows it to charge more than its competitors while also building brand loyalty with consumers willing to pay extra for the promise of reliable devices.
The company's position at the top of tech might make it seem like the best time to buy its stock is long past. However, the great thing about the company is its consistent and reliable growth. Here's why it's not too late to buy Apple stock.
Apple stock: A history of consistent gains
It may be over 40 years since Apple's IPO, but the company continues to offer investors steady and reliable growth. In the past five years, its stock clibed 234% and has soared 876% in the last decade. The rise came alongside annual revenue, which increased 48% to $394.33 billion since 2018, with operating income growing 68% to $119.44 billion.
Moreover, Apple is still hitting new milestones, suggesting its business hasn't yet hit its peak. In the second quarter of 2022, the company overtook Alphabet's Android for most smartphone market share, with Apple hitting the 50% mark.The achievement is promising, considering how most consumers rarely switch between smartphone operating systems, meaning those now using iPhones will likely continue doing so for years.
Additionally, Apple's consistent gains have attracted top investors like legendary investor Warren Buffett, whose holdings company Berkshire Hathaway has dedicated 42.3% of its portfolio to the iPhone tech giant. For comparison, Berkshire's second-biggest holding is Bank of America at 9.7%. Since the holding company invested in Apple in Q1 2016, the stock has increased by 472%, proving itself as an excellent long-term hold.
Apple's dominance will last decades
While Apple has enjoyed a past of impressive growth, its future is equally promising. The company's stock increased almost 16% year to date, almost entirely driven by Apple's potential in a new market and its steps to move production out of China.
Numerous acquisitions and filed patents related to augmented and virtual reality (AR/VR) over the years have all but confirmed the company's planned venture into the market. However, multiple reports in recent months have said Apple will likely debut a new mixed-reality headset in 2023, with Bloomberg stating it could be as early as June.
According to Grand View Research, the AR 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 is expected to grow at a CAGR of 15% in the same period.
Apple's history of success when entering new markets could see it catapult to the top of two high-growth markets with the release of a new headset.
Furthermore, increased COVID-19 restrictions in China near the end of 2022 led investors to question Apple's reliance on the country for production as the situation strained factories. Since then, the company has made positive strides to strengthen its business by gradually moving manufacturing to other countries, with a strong focus on India.
In fact, the largest producer of iPhones, Foxconn (or Hon Hai Precision Industry), is already making iPhone 14s in India and has plans to invest $700 million in the country to expand further.The move will diversify Apple's product manufacturing and fortify its business against localized headwinds.
Apple has had a fruitful past, with its earnings and stock reaching almost unparalleled heights. However, it's not too late to invest in this tech titan with a lucrative future ahead.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, 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.
|
With a market cap of $2.38 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Apple's immense success is mainly due to its focus on quality products, which allows it to charge more than its competitors while also building brand loyalty with consumers willing to pay extra for the promise of reliable devices. Numerous acquisitions and filed patents related to augmented and virtual reality (AR/VR) over the years have all but confirmed the company's planned venture into the market.
|
With a market cap of $2.38 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Additionally, Apple's consistent gains have attracted top investors like legendary investor Warren Buffett, whose holdings company Berkshire Hathaway has dedicated 42.3% of its portfolio to the iPhone tech giant. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway.
|
With a market cap of $2.38 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Apple stock: A history of consistent gains It may be over 40 years since Apple's IPO, but the company continues to offer investors steady and reliable growth. Since the holding company invested in Apple in Q1 2016, the stock has increased by 472%, proving itself as an excellent long-term hold.
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With a market cap of $2.38 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. The company's position at the top of tech might make it seem like the best time to buy its stock is long past. Apple stock: A history of consistent gains It may be over 40 years since Apple's IPO, but the company continues to offer investors steady and reliable growth.
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16802.0
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2023-03-12 00:00:00 UTC
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Beat the Nasdaq? This Dividend Stock Has Actually Done It.
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AAPL
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https://www.nasdaq.com/articles/beat-the-nasdaq-this-dividend-stock-has-actually-done-it.
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nan
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nan
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The Nasdaq has long been the stock market home of high-tech innovatots that have gone from unknown start-ups to household names.
This exchange is where game-changers like Apple, Amazon, Microsoft, and Tesla have consistently helped drive the Nasdaq Composite Index (NASDAQINDEX: ^IXIC) to new heights.
Over the past five years, in fact, the Nasdaq index has easily outpaced the two other major benchmarks, the Dow Jones Industrial Average (DJIANDEX: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC), as you can see below:
^IXIC. Data source: YCharts.
Indeed, riding the excitement generated by all of those technology game-changers, the Nasdaq has done almost as well as, well, Mid-America Apartment Communities (NYSE: MAA), a stalwart in the comparatively boring business of providing people with a place to live.
Outperformance from one of America's largest landlords
Known as MAA, this real estate investment trust (REIT) is one of the U.S.'s largest landlords, with a collection of approximately 300 apartment communities and about 102,000 units primarily in Sunbelt growth markets such as Atlanta; Dallas, Houston, and Austin in Texas; Orlando and Tampa in Florida; Charlotte, North Carolina; Nashville, Tennessee; and Charleston, South Carolina.
This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks.
^IXIC data by YCharts.
Actively winning at passive income
That chart above shows total return terms, which account for both share price movement and reinvested dividends. And dividends are the key here for this value stock. MAA is a reliable producer of passive income, with a yield of about 3.7%, a good bit more than the 0.71% yielded by the Invesco QQQ Trust.
Here's another pair of charts. These illustrate the impact of dividends on total returns over the same five years for MAA and the Invesco QQQ ETF.
MAA. Data source: YCharts.
This is not an aberration. MAA has been public for 28 years and, during that time, has paid 116 straight quarterly cash dividends, including a payout of $1.40 per share in January that was a healthy 12% more than the previous quarter and marked 13 straight years of increases.
The Memphis, Tennessee-based company has also provided an annually compounded total shareholder return of 13.2% over the past 10 years, while a stellar A- credit rating from Standard & Poor's and a very modest 3.97 ratio of net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) speak to the strength of its balance sheet.
MAA stock is currently selling for about 25% less than a year ago at this time, as this residential REIT has seen the same sell-off that higher interest rates and concerns over the ability to continue rapid rent increases (and income) have sparked among its peers.
That could make this a great time to pick up some shares of this longtime producer of strong shareholder returns with a record that can match that of many a glamorous growth stock, especially for buy-and-hold investors interested in such mundane things as sustainable retirement income.
10 stocks we like better than Mid-America Apartment Communities
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 Mid-America Apartment Communities 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. Marc Rapport has positions in Amazon.com and Mid-America Apartment Communities. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Memphis, Tennessee-based company has also provided an annually compounded total shareholder return of 13.2% over the past 10 years, while a stellar A- credit rating from Standard & Poor's and a very modest 3.97 ratio of net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) speak to the strength of its balance sheet. MAA stock is currently selling for about 25% less than a year ago at this time, as this residential REIT has seen the same sell-off that higher interest rates and concerns over the ability to continue rapid rent increases (and income) have sparked among its peers. That could make this a great time to pick up some shares of this longtime producer of strong shareholder returns with a record that can match that of many a glamorous growth stock, especially for buy-and-hold investors interested in such mundane things as sustainable retirement income.
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This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, 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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This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. 10 stocks we like better than Mid-America Apartment Communities 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 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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This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. These illustrate the impact of dividends on total returns over the same five years for MAA and the Invesco QQQ ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, and Tesla.
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16803.0
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2023-03-11 00:00:00 UTC
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Zoom's Growth Is Slowing but It's Not Done
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AAPL
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https://www.nasdaq.com/articles/zooms-growth-is-slowing-but-its-not-done
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nan
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nan
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In this podcast, Motley Fool senior analyst Matt Argersinger discusses:
Zoom Video Communications' slowing revenue growth.
How Zoom's brand gives it an advantage against bigger competitors.
Target beating expectations and reporting better management of its inventory.
Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp take a closer look at tech layoffs in 2023 and one company that's managed them well.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Target
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 Target 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 February 8, 2023
This video was recorded on Feb. 28, 2023.
Chris Hill: We've got more retail, more layoffs, and for anyone who's interested, a deep dive on dividend investing, Motley Fool Money starts now. I'm Chris Hill joining me today, Motley Fool Senior Analyst Matt Argersinger. Thanks for being here.
Matt Argersinger: You bet Chris.
Chris Hill: Let's start with Zoom Video, shall we? Because fourth-quarter profits and revenue were higher than expected, revenue was up, but it was only up 4% compared to a year ago. This continues the trend that we've seen for a while from Zoom Video which is they're growing, but it's slower growth than we've seen in the past.
Matt Argersinger: I know it's hard to imagine a company like Zoom Video growing revenue at just 4% because I think everyone, including me, because I haven't looked at Zoom very carefully until recently. You assume that it's still in that high-tech high-growth category -- it is. It's still a very essential technology communications company. But to see revenue just up 4%, it's amazing to see the slowdown they've had. But I think the story of Zoom, it's one of those ones where so much of its future came within 18 months of when the pandemic hit in early 2020.
It just pulled so much of it forward. The question is it a sustainable business going forward? I have to say the one thing that impressed me about its earnings, if you look at the enterprise customers. I think they had 213,000 enterprise customers served in the fourth quarter. That was up 12% from a year ago. Those customers had a net dollar expansion rate of 115%, which means that, that average big spending, customer is spending about 15% more now than they were a year ago. If Zoom can continue to prove itself out on the enterprise level then I think it has a pretty good future.
Chris Hill: Do you think that Zoom has essentially established itself as the table stakes for this industry? Because it seems to me that if you are in the business of competing against Zoom and not to say that Zoom can't and won't be disrupted. But it seems like so many people, enterprise customers, regular, everyday consumers like you and me. Everyone is so much more familiar with Zoom than they are with the alternatives that I think if you're in the business of competing with Zoom, you have no choice but to put yourself in a position where you can answer questions because anyone who is thinking about spending money on this product, they're going to be like, well, what are you guys easier than Zoom? Is this like what function that like? I feel essentially whatever happens from here, they've established themselves as the go-to and forcing others to explain why they're better.
Matt Argersinger: I think what you're getting at, is there, the verb. You Zoom. You meeting Bob this afternoon, you guys going to Zoom? That's a brand advantage and an identity advantage that I think a major competitor like Microsoft Teams, which of course has made big market share gains, doesn't quite have that same affinity to it. I think that's a huge advantage for them. You're right, it's like if you are any systems manager at a company and you're sending your company up for what communication platform is going to be used? Well, that's going to be the default go-to. It's going to take more spending, more time looking at other technologies before you go with a different company like Microsoft.
I think the advantage that Microsoft and maybe Alphabet's Google have in the space, though, is of course they can add on a bunch of different capabilities and apps that Zoom might not necessarily be able to have. Atlassian is another company that comes to mind which has communication and workflow apps that are very popular. The more Zoom can continue to innovate and they are innovating around the app. I think that's the key. They got to be stickier. They've got to take the advantage they have in brand recognition. Continue to add features and capabilities and continue to make it easy. I think that's why we all fell in love with Zoom a few years ago. It's because it's so easy and it works so well. That's the table stakes. Now, can you make it as sticky as possible?
Chris Hill: For the first time in a year Target's quarterly profits came in higher than expected. Sales in the holiday quarter up just 1%. Their guidance is conservative, but I don't know why anyone would expect their guidance to be anything but conservative given the year that they've just had. By the way, given what we saw last week out of Walmart as well.
Matt Argersinger: Home Depot comes to mind as well as I was looking at this. I think Target has some advantages and the sales growth looks anemic and I think the guidance looks really conservative. You're talking about comparable-store sales growth or declines within low single digits. They're not sure which, but what they are confident is that they're going to continue to grow earnings. Earnings growth looks like it's going to be pretty good this year. They're managing things on the cost front. I think what I was impressed with most with their quarter was the inventory story for target. It was the inventory at the end of their fiscal year was 3% lower than it was last year.
If you look at Home Depot, for example, their products they're not exactly as discretionary or as consumable as what Target sells, but their inventory was up 50% year over year. That's a major problem for them. They lowered the revenue by 3% and the discretionary category particularly was down 13%. They're managing the inventory well. But there's two sides to that story. The softness we're seeing in the discretionary side means, they're going to see lower margins. It's going to be tough to turn that around, especially if we have a recession because those are the places were consumers aren't spending. Food and beverage, household staples, those are going to continue to do well, they're just lower-margin. The question is, can Target be OK as long as those discretionary categories are not coming back, but they need to come back at some point or earnings and margins are going to come down.
Chris Hill: I'm glad you mentioned the staples because that really was a big part of Target's story in the fourth quarter, even though it's the holiday quarter. Household items, health and beauty, groceries, those everyday things. I think if you want to be glass-half-full about the next 6-9 months for Target. It's that if they can sustain what they're doing on those household staple fronts. It does provide them the opportunity to maybe pick up and surprise a little bit to the upside on the discretionary side, because you think back to last summer, Matt, and the inventory story was a nightmare. Brian Cornell owned that, the CEO stepping up and just saying like, I blew the mix. We had the wrong mix of stuff that's on me. Again, probably not a surprise that they're being pretty conservative with their guidance, but who knows, maybe six months down the road, they're surprising to the upside.
Matt Argersinger: Yes. I think that's exactly what they've done. They've set themselves up for that. They've really set themselves up to under-promise and over-deliver with getting the mix right, as you said, which I think was essential. If you're looking at it as an investor, the earnings story, it looks pretty good for this coming year. If they can do $8 to $8.50 in earnings per share, that's well above what they did last year. It trades for about 2021 times forward earnings that I've seen a lot of investor call Target of a value stock cheap. That's not exactly a low multiple based on the growth we're seeing and the risk to that.
Whatever remaining consumer discretionary business they're going to depend on for growth in the year ahead. But I think what investors can hang their hat on is the dividend. If they've got a nice dividend yielding about 2.6% right now. It's well covered by earnings. There's an upside there, given the balance sheet and the spread between the dividend and what they're expecting for earnings per share in the year ahead. You might see some growth there. You can hold on. If you can get the stock a little cheaper, maybe you get roughly a 3% dividend yield. Can stick with that as the business turns around and maybe we avoid a recession and then you've got a pretty good investment on your hands.
Chris Hill: On that last point, real quick, last week you and I recorded a video that I want to encourage people to check out. It's really a deep dive on dividend investing. People can go to masterclass.fool.com. I'll put the link in the show notes, but this was a really fun conversation for me. Because this is increasingly how I am investing in my personal life. But it was just great to go deep on dividend investing with you.
Matt Argersinger: Likewise, Chris, I really enjoyed the conversation. Dividend investing as you know, and we've talked about it over the past year or maybe on the show a few times. Dividend investing has really become the way I prefer to invest going forward. It's just getting that income focusing on the dividend and the growth of dividend especially the benefits to that as an investor are massive. Then you can build yourself a nice income stream. If you think about the bear market we had in 2022, dividend strategies really outperformed. If you had a core set of dividend stocks in your portfolio, I'm sure your portfolio did a lot better than the overall market, and that's part of the story. That's why dividend strategies tend to really outperform over time with a lot less volatility, which I think is a key part of it, too. I love the conversation. I'm glad we had a chance to talk about that and talk about a new service that's launched this week as well.
Chris Hill: It's a ton of great information. As Matt said, it's the launch of a new dividend investing service that he's going to be heading up. Again, go to masterclass.fool.com. The video is going to be up until midnight, Wednesday, although I'm told that's midnight on the West Coast. Technically 3 a.m. Thursday for people on the East coast. It's about 35 minutes, and there's just a lot of great information there. If you become a member of the service, great if, even if you don't. I think this is one of the best videos like this that we have produced in a long time. Again, and also Matt shares, one of the stocks that he's recommending in the service. Definitely worth your time. Masterclass.fool.com. Matt Argersinger, great talking to you. Thanks for being here.
Matt Argersinger: Thank you, Chris
Chris Hill: So far in 2023, tech companies have shed more than 100,000 jobs. But to layoffs automatically make a company leaner, Alison Southwick and Robert Brokamp, look at the long term effects of layoffs and one company that's managed them well.
Alison Southwick: I remember early on in my investing journey hearing about how a company it was about to lay off a ton of employees. I don't remember which company, but I do remember being surprised that the shares shot up as a result of the news. Clearly laying off a ton of employees is a sign that the company is in distress. I was baffled. Why would investors be like, yes, I want to get me some of that. This was the first time I encountered the notion of, well, somebody think of the shareholders that was born in the '80s and still exists today. Firing people cuts costs, and after all, a CEO's first and foremost job is to maximize shareholder value. That sounds like something someone would say, well, sipping a martini at 11:00 A.M.
Robert Brokamp: Yes. Well, reciting Gordon Gekko quotes, and it's true that the '80s where a turning point. But the intellectual underpinnings of this whole like maximizing shareholder value thing really started in the 1970s with things like a Milton Friedman article written in The New York Times with the headline quote, "The social responsibility of business is to increase its profits." In 1976, an academic paper with a thrilling title of, Theory of the firm: Managerial behavior, agency costs and ownership structure, was published, and argued that company executives weren't focused enough on benefiting shareholders. That publication became one of the most cited business academic papers of all time.
Then in the '80s, some new laws fueled the emphasis on share price. Companies could buy back their own stock. Stock options became a bigger part of executive compensation. IRAs and 401(k)s began to become more widely used by workers. Companies increasingly saw layoffs as a way to prop up share price, at least theoretically, which was not the way they were always viewed. In his book, the Disposable American, Louis Uchitelle wrote that from the 1890s to the 1970s mass layoffs we're seeing as quote, a sign of corporate failure and a violation of acceptable business behavior. But then that changed. According to Professor Arthur Boudreaux, in 1979, fewer than 5% of the fortune 100 companies announced mass layoffs. But that figure has grown to 45% by 1994.
Alison Southwick: Which brings us to today. The breathtaking amount of layoffs we're seeing in tech. Zoom laid off 15%, Alphabet 6%, Amazon 5%, Meta 13%, Salesforce, 10%. Adding up just those companies and you're looking at more than 50,000 employees being laid off. All told we're talking 100,000 laid off in the tech sector so far this year and closer to 300,000 going back six months.
Robert Brokamp: Have you been invested in these companies like you felt at least some of this pain. The Nasdaq dropped 33% in 2022. It's third-worst year ever. Many stocks in the funds that invest them dropped far more. For example, Cathie Wood's Ark Innovation ETF, which has become the poster child for the boom and bust of tech-related stocks plummeted 67% in 2022. Now, so far this year we've seen a rebound with the Nasdaq up 9% and that ARK ETF up a whopping 23%, which could be seen as the market giving its blessing to the tech belt-tightening. But as we'll discuss later, layoffs can actually have mixed results longer term.
Alison Southwick: Why are we seeing historic layoffs in tech? Axios says that while executives are incentivized to blame the economy, the real reason for the mass layoffs is "driven more by market scrutiny of some of the bad ideas tech geniuses have dumped money on in recent years rather than economic fundamentals, those costs are now devour worrying sales dollars that would otherwise turn to profits." In many cases, tech companies over-hired to feed these initiatives. You're all listening to the sound of my voice with your VR goggles on while chilling in the metaverse, right?.
No? Well, at least one CEO is blaming himself and his exuberance. Zoom's CEO wrote in his statement to employees when announcing a 15% reduction, employees, "As the CEO and founder of Zoom, I'm accountable for these mistakes and the actions we take today and I want to show accountability, not just in words, but in my actions." He then cut his salary pay by 98% and forfeited his bonus for 2023. Now fun fact, Apple also grew in the last couple of years, but at a much slower clip than its tech giant counterparts, by only about 20% compared to Zoom's 300%. Now, Apple is the only tech company so far that has not announced layoffs.
Robert Brokamp: Apple definitely showed some restraint relative to the other companies. According to CNN Business Microsoft grew its workforce by 50% since the third quarter of 2019, Alphabet by 64% and Amazon and Meta doubled their numbers of employees. Those are sizable increases in headcount for companies that were already pretty big. In some cases, a good bit of it may have been justified or maybe rationalized by increased earnings due to people being stuck at home during the pandemic. We were all sitting around in front of our computers all day browsing and buying stuff. But there are other theories about why this happened.
One of them being labor hoarding, and that's the idea that you can't wait to hire the people you'll need in the future because they may not be available. Instead they'll be working for your competitors. You have to act now. Some of blame Silicon Valley's arms race, trying to be the biggest and the best place to work. Probably some empire-building going on and really some plain old peer pressure. When you see other companies acting in one way, you can't help but question whether you should join in. That works the other way as well as Annie Lowrey of The Atlantic recently wrote, layoffs are contagious. Other companies doing something like laying people off gives you cover to do it at your company as well.
Alison Southwick: Do layoffs work? Well, I guess the question is, what were you hoping to layoffs would accomplish? For this, let's look to Jeffrey Pfeffer, a professor at the Stanford Graduate School of Business. He says that layoffs do not solve what is often the underlying problem, which is often an ineffective strategy, a loss of market share or too little revenue. Instead, layoffs make your employees nervous and unproductive and you end up hiring people back at a premium later anyway. Well, I've got a metaphor. These tech layoffs are like taking aspirin to cure you're splitting headache after a night of partying. Sure, your head will feel better, but ultimately, you partied too hard and it's going to take a lot of water and staying in if you want to feel better in the long run and be a fully functioning human being, I mean, tech juggernaut.
Robert Brokamp: It's also like leaving a mess in the bathroom that someone else has to clean up. Because a slew of studies starting in the 1990s have come to similar conclusions as Dr. Pfeffer. Layoffs can make your remaining employees paranoid, uncreative, risk-averse, overworked, distrustful of management, all of which can lead to higher turnover. Some of your best people might leave, taking institutional knowledge with them. Then you have to spend thousands of dollars to find an odd board their replacements. Also, layoffs are not so great for PR. In the end, the ultimate goal may not be achieved. Some studies have found that layoffs actually had just a small impact on profitability. While the stock price might rise after the announcement, it often eventually drifts downward afterwards.
Alison Southwick: A leading business professor says that layoffs don't work. While this Jeffrey Pfeffer sounds like a really nice guy who cares about the devastating personal toll layoffs can have on employees physical and mental well-being, that's great. But me, someone was zero credentials and no expertise in corporate management. I wonder, won't somebody think of the shareholders? I mean, isn't there a time and a place for layoffs? If you over-hired then isn't a good thing to recognize your mistake and walk it back.
Robert Brokamp: I would say yes, especially if you're unprofitable, no business can go on losing money forever. Now, many of these tech companies are profitable, but that's a whole other point. But the bottom line is, for most companies, labor is the No. 1 cost right there. The salaries of course, but also the benefits which are worth about 20-40% of what employees receive in their paychecks. If you have to cut costs, laying people off is certainly one way to do it. But I would say put a great deal of thought in what the right size of your company should be in a year or a few. Because if you expect to staff up again in the future, it might be better to keep people on your payroll rather than endure the negative effects of layoffs and the cost of the rehiring. Also, try not to over-hire in the future because getting laid off can be really hard on workers and their families.
Alison Southwick: If you're one of the many people who have been laid off from a tech company, the good news is that you are still highly employable and you can find comfort in knowing that many economists think you'll have no problem getting a new job. Now of course, they haven't met you personally, but they have a lot of nice things to say about your prospects, and Robert and I are rooting for you. Go ahead and put us down as references.
Chris Hill: As always, people on the program may have interest in the stocks they talk about. The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
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. Alison Southwick has positions in Amazon.com, Apple, Salesforce, and Zoom Video Communications. Chris Hill has positions in Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Microsoft, and Target. Matthew Argersinger has positions in Alphabet, Amazon.com, Atlassian, Home Depot, and Zoom Video Communications. Robert Brokamp, CFP(R) has positions in Salesforce and Zoom Video Communications. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Meta Platforms, Microsoft, Salesforce, Target, Walmart, and Zoom Video Communications. 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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In 1976, an academic paper with a thrilling title of, Theory of the firm: Managerial behavior, agency costs and ownership structure, was published, and argued that company executives weren't focused enough on benefiting shareholders. Axios says that while executives are incentivized to blame the economy, the real reason for the mass layoffs is "driven more by market scrutiny of some of the bad ideas tech geniuses have dumped money on in recent years rather than economic fundamentals, those costs are now devour worrying sales dollars that would otherwise turn to profits." The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Meta Platforms, Microsoft, Salesforce, Target, Walmart, and Zoom Video Communications.
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In this podcast, Motley Fool senior analyst Matt Argersinger discusses: Zoom Video Communications' slowing revenue growth. I'm Chris Hill joining me today, Motley Fool Senior Analyst Matt Argersinger. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Home Depot, Meta Platforms, Microsoft, Salesforce, Target, Walmart, and Zoom Video Communications.
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Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp take a closer look at tech layoffs in 2023 and one company that's managed them well. Matt Argersinger: I know it's hard to imagine a company like Zoom Video growing revenue at just 4% because I think everyone, including me, because I haven't looked at Zoom very carefully until recently. But to layoffs automatically make a company leaner, Alison Southwick and Robert Brokamp, look at the long term effects of layoffs and one company that's managed them well.
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Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp take a closer look at tech layoffs in 2023 and one company that's managed them well. Chris Hill: For the first time in a year Target's quarterly profits came in higher than expected. But to layoffs automatically make a company leaner, Alison Southwick and Robert Brokamp, look at the long term effects of layoffs and one company that's managed them well.
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2023-03-11 00:00:00 UTC
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2 Top Warren Buffett Stocks to Buy Right Now
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https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-right-now-7
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From 1965 through 2022, CEO Warren Buffett's holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) turned every dollar invested in Berkshire stock into $37,875. That's 57 years (and counting) of turning strong stock picks and full acquisitions into returns for shareholders. It's also solid proof that it can pay off to see what Buffett has been buying and following his lead.
Every quarter, Berkshire discloses what stocks it owns on a form 13F that's filed with the Securities and Exchange Commission. Two stocks that have long been present on those Berkshire 13F forms are Apple (NASDAQ: AAPL) and HP (NYSE: HPQ). Here's what Buffett likely sees in these companies and why you should consider buying these two stocks today.
1. Apple
From Buffett's purchase of See's Candies in 1972 to his large bet on Coca-Cola stock in the 1980s, the Oracle of Omaha has a keen eye for identifying brands that can stand the test of time.
At the end of the fourth quarter in December, Berkshire held over 895 million shares of Apple stock worth $116 billion. The stock is Buffett's largest holding and one of the largest investments of his career. While Apple is technically a technology company, it sells millions of devices every year primarily because of its marketing and brand power and the experience it provides customers across hardware and software.
Consumers have a lot of choices when purchasing a new smartphone or PC, but once someone buys an iPhone, for example, there's a good chance they will stick with it. This is because of the investments Apple puts into integrating its devices around a cohesive ecosystem of software services and apps.
The power of Apple's ecosystem is perhaps most evident in the growth of paid subscriptions, including third-party subscriptions in the App Store. Apple now has 935 million subscriptions, up nearly four times the level from five years ago.
Moreover, the growth of Apple's installed base of devices, now over 2 billion, provides ample opportunities to continue growing revenue from services, which make up about 17% of Apple's total revenue, while the iPhone still makes up about half of the business.
Despite a 6% decline in sales last quarter, primarily driven by lower sales of iPhone, it's notable that Berkshire slightly added to its Apple stake recently. Demand for iPhone has remained quite strong despite rising inflation over the last year. That speaks to the essential nature of these products, which are a key part of people's lifestyles.
Moreover, Apple generates large streams of free cash flow, coming to $97 billion over the trailing-12-month period through December. This funded $25 billion in capital returns to shareholders last quarter through dividends and share repurchases.
Apple's large cash resources will fund the development of new products, including the upcoming mixed-reality headset expected to be announced this year. Apple should be a rewarding stock to hold for a long time.
2. HP
Berkshire first disclosed a large stake in HP in the first quarter of 2022. At the end of the fourth quarter, Berkshire owned over 104 million shares worth about $2.8 billion. This wouldn't be an unusual bet for Buffett, considering his previous stake in IBM, which Berkshire exited years ago.
What likely appeals to Buffett (assuming the stock wasn't bought by one of his investing lieutenants) is HP's market leadership in providing essential computing services for consumers and enterprises, in addition to graphics and 3D printing solutions. Another factor that might have won Buffett over is HP's commitment to return 100% of free cash flow to shareholders through dividends and share repurchases. Companies that follow shareholder-friendly capital return policies will generally tend to be more disciplined in managing costs and capital allocation to maximize returns to shareholders over time.
Berkshire's investment in HP comes at a challenging time for the company. Adjusted sales fell 15% year over year last quarter. Businesses are pulling back on spending right now, but HP has seen this before. It experienced an initial dip in sales at the start of the pandemic in 2020 before business recovered.
HPQ Revenue (Quarterly) data by YCharts.
While there is no telling when revenue will pick up again, management continues to invest for the future in this downturn.
Over the last few years, HP shifted resources to better growth opportunities, given the competition from digital services pressuring sales in its legacy printing business. Last year, HP acquired Poly, a provider of workplace collaboration software, headsets, and cameras, for $3.3 billion. This positions HP to ride the growth of business investment in digital services, such as remote work solutions.
HP also sees opportunities to expand into computer accessories. In fiscal 2021, HP acquired HyperX, a leading brand of gaming peripherals -- a market expected to grow by about 10% per year through 2025, according to Grand View Research.
HP is also making investments in software and artificial intelligence (AI) to develop new solutions that might lead to more growth avenues. It's partnering with leading graphics chip supplier Nvidia to develop high-performance computing products for data science and AI use cases.
Buffett is known to invest in companies at a discount to intrinsic value, or what Buffett often refers to as a margin of safety. HP stock trades at a low price-to-earnings (P/E) ratio of 9 based on forward earnings estimates, which is a significant discount to the S&P 500 index average P/E ratio of 21. That could signal a wide margin of safety between HP's share price and what it could be worth down the road.
If you are looking for a value stock in 2023, Berkshire-backed HP might be a smart bet.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 8, 2023
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, and Nvidia. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two stocks that have long been present on those Berkshire 13F forms are Apple (NASDAQ: AAPL) and HP (NYSE: HPQ). Apple From Buffett's purchase of See's Candies in 1972 to his large bet on Coca-Cola stock in the 1980s, the Oracle of Omaha has a keen eye for identifying brands that can stand the test of time. While Apple is technically a technology company, it sells millions of devices every year primarily because of its marketing and brand power and the experience it provides customers across hardware and software.
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Two stocks that have long been present on those Berkshire 13F forms are Apple (NASDAQ: AAPL) and HP (NYSE: HPQ). From 1965 through 2022, CEO Warren Buffett's holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) turned every dollar invested in Berkshire stock into $37,875. Moreover, the growth of Apple's installed base of devices, now over 2 billion, provides ample opportunities to continue growing revenue from services, which make up about 17% of Apple's total revenue, while the iPhone still makes up about half of the business.
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Two stocks that have long been present on those Berkshire 13F forms are Apple (NASDAQ: AAPL) and HP (NYSE: HPQ). At the end of the fourth quarter in December, Berkshire held over 895 million shares of Apple stock worth $116 billion. What likely appeals to Buffett (assuming the stock wasn't bought by one of his investing lieutenants) is HP's market leadership in providing essential computing services for consumers and enterprises, in addition to graphics and 3D printing solutions.
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Two stocks that have long been present on those Berkshire 13F forms are Apple (NASDAQ: AAPL) and HP (NYSE: HPQ). Apple now has 935 million subscriptions, up nearly four times the level from five years ago. Berkshire first disclosed a large stake in HP in the first quarter of 2022.
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16805.0
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2023-03-11 00:00:00 UTC
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What Will Change at Berkshire Hathaway Once Warren Buffett Is No Longer in Charge?
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https://www.nasdaq.com/articles/what-will-change-at-berkshire-hathaway-once-warren-buffett-is-no-longer-in-charge
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Warren Buffett is 92 years old, and his right-hand man, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) vice chairman Charlie Munger, is 99. It's fair to say that the pair won't be running the show for decades to come. In this clip, I sit down with Fool.com contributor Tyler Crowe to discuss Berkshire's succession plan and what we think the biggest changes will be under future leadership.
*Stock prices used were the midday prices of March 7, 2023. The video was published on March 8, 2023.
10 stocks we like better than Berkshire Hathaway
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 Berkshire Hathaway 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 February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Matthew Frankel, CFP® has positions in Amazon.com and Berkshire Hathaway. Tyler Crowe has positions in Apple and Berkshire Hathaway. 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. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this clip, I sit down with Fool.com contributor Tyler Crowe to discuss Berkshire's succession plan and what we think the biggest changes will be under future leadership. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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Warren Buffett is 92 years old, and his right-hand man, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) vice chairman Charlie Munger, is 99. Tyler Crowe has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Snowflake.
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See the 10 stocks *Stock Advisor returns as of February 8, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 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.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! Matthew Frankel, CFP® has positions in Amazon.com and Berkshire Hathaway. Tyler Crowe has positions in Apple and Berkshire Hathaway.
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16806.0
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2023-03-11 00:00:00 UTC
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The Good News From Salesforce
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https://www.nasdaq.com/articles/the-good-news-from-salesforce
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In this podcast, Motley Fool senior analyst Tim Beyers discusses:
Shares of Salesforce popping 12% on better-than-expected fourth-quarter results.
How Salesforce has more focus but is still a business in transition.
The doubling of the company's share buyback program.
Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Salesforce
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 Salesforce 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 February 8, 2023
This video was recorded on March 02, 2023.
Chris Hill: Looks like another company got the message about how Wall Street likes businesses that actually make a profit. Motley Fool Money starts now. I'm Chris Hill. Joining me today, our man in Colorado, Motley Fool senior analyst, Tim Beyers. Thanks for being here.
Tim Beyers: Thanks for having me. Fully caffeinated, lots of earnings-related things to talk about.
Chris Hill: You know what else is caffeinated? Salesforce shares today up more than 12%, because Salesforce beat expectations across the board. The revenue numbers stands out to me as, and I'm not a shareholder. But I was particularly struck by the revenue number up 14% compared to a year ago. Obviously, Salesforce has been in the news lately, because of layoffs, because of the latest co-CEO to leave. It's been a pretty eventful few months for Salesforce. You're a shareholder, how are you feeling and what stood out in the report?
Tim Beyers: Well, I'm feeling better for a couple of reasons. First, the stock is up materially. That's great. Sometimes we call these things relief rallies, Chris. I think there's some real cognitive relief that, OK, great, the revenue was up materially. I think there is a bit of acknowledgment from management, particularly Marc Benioff, that yes, we have to be better at controlling cost, because they have activist investors breathing down their neck, and so you did see that. For example, in this particular quarter, granted, there's still a lot of cost in the Salesforce business. But I'll just give you a couple of things here. Cost of revenue for the quarter. $2.1 billion in the current quarter, year-ago quarter, $2 billion. This is not the spend freely Salesforce that we are used to seeing.
Total operating expenses for the quarter about $5.9 billion, that was up from $5.5 billion. Yes, material, but not big jumps the way we're used to seeing it. I think the thing that really stood out for me, Chris, this is for the quarter on a year-over-year basis, 984 million diluted shares outstanding versus 986 million, so down 2 million. Now there's a lot of accounting that can go into, I'm not saying that Salesforce is, oh boy, now they're getting some religion and they're buying back stock and actually reducing their share count. There could be some timing in effect here, they did buy back some shares. We have to wait to see how much they're actually going to get religion around that. But I would say, Chris, a little bit of encouraging signs in terms of expense management, as well as a better-than-expected revenue number. Why is the stock up? It does feel like, hey, maybe we're seeing a slightly more disciplined Salesforce. That would be a good thing.
Chris Hill: It would be a good thing. I want to come back to the discipline. But first, since you are talking about the share buybacks, part of the news here is Salesforce doubling their share buyback program that they announced last August, from 10 billion to 20 billion. I'm assuming you put that in the positive category.
Tim Beyers: It should be a positive, let's say that. Let's say it should be a positive because it depends on what Salesforce does with its historical practices around equity compensation for employees. They've historically been incredibly generous for employees that they've acquired through acquisitions and employees that they've hired organically. They tend to be very generous in this area. A $20 billion buyback could do a lot to create accretive value to shareholders, if it's not wiped out by a whole bunch of equity grants to employees. Now I think that buyback plan is large enough that it should be accretive to employees and particularly, if the current path that we're seeing continues.
For example, if just looking at the cash flow statement here. From the current quarter, the overall expense they got the credit on the cash flow statement for stock-based compensation expense, in the latest quarter was $809 million versus $763 million in the year-ago quarter. Again, it's not a huge increase in a lot of stock-based compensation expense. That may have to do as much with how the stock prices come down and so the value of that expense is a lot lower, so it just evens out and they still issued a lot of shares. Lot of things remain to be seen, but it does seem as though $20 billion is going to be put to use on behalf of shareholders. I think it's very easy to take a look at this. Chris, you and I are both sports fans, and you know how as sports fans we take one game and we say, wow, man, what an amazing performance and we project that out. I think the caution here is, let's not take this quarter and project it out and assume everything is amazing for Salesforce. We don't know that yet.
Chris Hill: We don't. You referenced the belief that we might be dealing with a more disciplined Salesforce, a more disciplined CEO, Marc Benioff. One of the bits of information we got that I think is an argument in favor of that is Benioff saying on the conference call that the company disbanded its committee on mergers and acquisitions. Again, I'm not a shareholder, but if I were, I would be happy about that. I look at Salesforce and think, no, you're big enough make the stuff that you've acquired, which on balance I think Salesforce has done a good job with that under Benioff's leadership. But it does seem like a time to, we've seen this from other companies this earning season, to really focus on basics, really stick to your knitting.
Tim Beyers: I fully agree with that. I do agree that it is good news, Chris. This is one of the areas you really going to want to watch, if you are a Salesforce shareholder, so just looking at the balance sheet. If you look at the balance sheet, there's a line on there called goodwill, and it stayed relatively stable year over year, about $48.6 billion presently versus roughly $48 billion last year. Really, no material changes there. But that is a lot of money, and goodwill is the excess that Salesforce has paid. It's like they've made a lot of acquisitions. When they paid a premium over and above the intrinsic value of the company they acquired, that premium goes on the balance sheet as goodwill.
It's like this is value we believe we're going to accrue as it becomes part of Salesforce, and so it's recorded as an asset on the balance sheet. A lot of that, Chris, is due to the acquisition of Slack. Getting their strategy right and actually getting real value, serious value out of that Slack acquisition, which I don't think we've really seen yet. That has to happen, because if it doesn't, there's going to be a quarter or a year, maybe in the next two years where they have to test this every year, and finally, they have to throw up their hands and admit like, "Yeah, you know what? We overpaid for this thing." Then it's a big write-off and the stock gets absolutely crushed.
They really do need to do this, so they avoid the specter of a big goodwill write-off on Slack. Last point on this, it is something they said they were always going to do. They wanted to make Slack, this portal into the rest of Salesforce. You go into Slack, and then you'd issue commands and start conversations, and open up a Salesforce app right from within Slack. You do all of this work together as a group and a Slack channel using a Salesforce product like Quip, or something like that. That is still the vision for this, so they do need to focus on that. Chris, there is absolutely no doubt.
Chris Hill: Let's close on the stock which is with the rise today, basically where it was three years ago at the start of the pandemic. Prior to that, you look at the chart of Salesforce and it's a pretty steady up and to the right. It's been a roller coaster since then.
Tim Beyers: Yeah.
Chris Hill: Do you look at the underlying business of Salesforce with everything we've just talked about, do you look at it and say, this is a stronger business than it was three years ago this time. With the stock basically being at the same point, is it a more challenged business? Is it weaker? Where, is the underlying business relative to the stock?
Tim Beyers: What a great question. I think it's in transition. I don't think you can say it's stronger and I don't think you can say it's weaker. I will say I think it's more focused and that is a very good sign. A more-focused sales force can do a lot of good for shareholders. It can improve. It's interface, it can improve, improve the integration, and its apps. This company has a lot of capital. If all of that capital that it generates is now focused internally on improving the business, on improving Slack, on making integrations tighter on improving the user experience. Look out, they can be very dangerous in their core markets. That is a good thing a focus Salesforce is potentially a dangerous Salesforce. But I don't think yet, you can say it's either stronger or weaker. I just think you can say it's in transition, Chris.
Chris Hill: Tim Beyers, always great talking to you. Thanks for being here.
Tim Beyers: Thanks, Chris.
Chris Hill: Just as more companies like Salesforce are sticking to the basics, so are consumers. Jason Moser and Matt Frankel share some thoughts on the decline of the nice-to-have economy.
Jason Moser: Hey Matt, it's great to catch up with you again. There was an article by Christopher Mims here several weeks back in the Wall Street Journal that talks about the decline of the nice-to-have economy and I thought it was a good and timely piece given where things stand today. The pandemic long in the rearview mirror, things are starting to normalize and at the same time with all of that, we're seeing challenges in the broader economy as it pertains to the consumer. I mean, at the end of December we saw full 64 percent of Americans were living paycheck to paycheck. Inflation of course, is still an issue and Matt, just frankly, the consumers running out of money. Let's, open up with this topic first and foremost. How would you describe the nice-to-have economy?
Matt Frankel: You hit the nail on the head with they're running out of money thing. The nice-to-have economy, it's always a thing. Everyone always wants to buy things they want, not just things they need and that's especially true in periods of economic prosperity. But the past couple of years, 2020 and 2021 in particular has been unusual in the sense that consumers had a ton of disposable income, more so than in a typical economic peak. Due to a combination of factors. There were all the stimulus measures that were taken. There was postponed payments like we're still not our student loans. I don't know about you, but that gives me an extra few hundred dollars a month of spending money on.
Jason Moser: Thankfully, Matt, I don't want to have any student loan bills coming up, but given your financial advisor said, we may need to chat after taping because I have one child going to college in the fall and another one going a year later. We're still trying to put all of those pieces together.
Matt Frankel: You figured the average student loan payments in the 300-400 dollar ballpark, that gives you the average person who with student loans like 4,000 dollar of extra money.
Jason Moser: It's a lot.
Matt Frankel: Then combine that with the lack of ability to go out and spend money on experiences and things like that. In 2020 and 2021, people had a lot of money to spend on stuff they didn't need. It's the best way to describe it.
Jason Moser: Yeah. You know what it made me think of? Immediately and your kids are a little bit younger than mine, so this may be even fresher in your mind. But as they're going through school at that young age and they're learning about wants versus needs. That's something that we deal with all throughout our lives. I mean, we're dealing with that want versus need and having to balance that. It's nice to be able to get those things that you want to make sure to take care of those needs first. It really does feel like this nice-to-have economy. That's a lot of those wants.
Matt Frankel: It is, and I mean, I'm just as guilty as anybody like, I couldn't spend money if I wanted to during '20 and 2021. What do we do? We put a pool in our backyard. I'm just as guilty as anybody. But it is really important to differentiate wants versus needs. The fact that needs have got to so much more expensive in 2022 and so far in 2023. The fact that our needs have got to so much more expensive, it's not just the people run out of money. But when needs get more expensive, it gets tougher to spend money on the wants.
Jason Moser: Yeah, it really feels like we saw an exceptional number of companies pop up over the last several years here that play into this trend. What are some of the, companies or the markets that really stand out to you as far as the, these nice-to-haves?
Matt Frankel: I already told you about my pool.
Jason Moser: Sounds like a need.
Matt Frankel: No, just another one in my house right now. Peloton. Peloton was a big one. They're definitely something that you don't need. There are exercise bikes that are about 1/10 of the price of a Peloton.
Jason Moser: Yeah.
Matt Frankel: But it's a great product. It was really nice-to-have and especially after our gym shutdown during COVID, we could really justify the cost. We got a Peloton in our house and we actually saved money of our monthly exercise expenses because we had our Peloton. So exercise equipment is one. There's a personal styling boxes. You remember Stitch Fix's a big example. My wife, she couldn't go shopping for her scrubs. She's an ICU Nurse. She couldn't really go shopping in person so companies like Figs became a big staple. I type mentioned it on the show one time, I was doing a show and three Figs packages arrived while I was on the show.
Jason Moser: Wow.
Matt Frankel: I would say even like companies that specialize in discretionary retail, like say, Best Buy, to a lesser degree because they do sell things that people need like a washer and a dryer and things like that. But they do sell a lot of things that people were buying in large quantities. One because they were working from home and two just because they had a lot of extra money?
Jason Moser: Yeah. Well, I mean, I'm glad you brought up Best Buy because it also you look at like a Best Buy and then you compare that a retail operation to something like a Target or a Walmart. Target and Walmart are certainly full of a lot of those wants. They're also businesses that are really capitalizing on the grocery market. We could argue that groceries certainly are a need. Now, it's interesting that this articles talking, speaking of groceries, I mean, it feels like one of the bigger victims here as of late, pertains to groceries. It's all of these meal-kit companies and we've seen so many of these pop-up. Like, I understand the convenience. Everybody needs to eat, that's the beauty of food from that perspective in investing in a well-run restaurant operation, for example. But it does seem like we saw a lot of the meal-kit type businesses really harping on that convenience factor. They're starting to suffer a little bit more now though, aren't they?
Matt Frankel: Yeah and it's not just the meal kits, it's the food delivery services as well like DoorDash and Uber Eats. People didn't realize as much with the pandemic shutdowns, how inflated prices get when restaurants list their stuff on DoorDash, to offset their own fees. That's something that is really starting to suffer too. The meal kits in my opinion, were just a bad business model from the start. We've used them before. The customer acquisition cost is through the roof. Peloton for all its faults, its churn is like one percent a month.
Meal kits it's like 20 times that and they have to offer things like half-price off your next three orders just to get people to stay and that's not sustainable. Those companies are losing money left and right, which was fine when money was free and investors were willing to speculate on companies like that, just growth at all costs, if you will. But now that, money is not free anymore, now that interest rates do exist, you're starting to see investors not tolerate money-losing businesses. There's not a way really for them to gain the customers that they need without losing money.
Jason Moser: Yeah and just a side note there. You said the word sustainable and that just made me think what these meal-kit companies as convenient as it may be for some, and I'll be clear, I do most of the cooking here at home and I never would consider subscribing in one of those meal-kits, partly because I just know how to cook and I like being able to do it as I like to do it. But the waste that comes along with those meal-kit companies, that's something that you have to keep in mind. We saw as the e-commerce has exploded over the last decade, one of the big concerns has always been packaging and the waste that comes along with that. How can we do this so it's a bit more sustainable and less impactful on the planet there. For all of the work, I'm sure that the meal-kit companies have done in that regard. When you're talking about sending food that requires a lot of different moving parts, keeping things cool, keeping things dry. There is just a tremendous amount of waste that really comes in with that.
Matt Frankel: For sure. I mean, one thing that meal kits do have going for them because we've used them a couple of times is they cut down on food waste, they send you the exact amount of groceries you need, which is really hard to do, especially for like two adults. It's tough to buy just enough produce for two adults without having a lot of waste. But you're right, the waste is a big issue, people are really starting to realize that now. People were willing to tolerate it a little bit more during the earlier days of the pandemic, it's still going on, but when there wasn't much of a choice. The waste is definitely something that's on consumers minds and getting them back into the grocery store.
Jason Moser: What strikes me about this trend is this doesn't really seem like a one-off. It seems like something that pops up when, like you were saying before, consumers have more money to spend, then when that money starts running out, we see these things start to pull back a little bit. It strikes me, this is something that's a bit more cyclical in nature.
Matt Frankel: Discretionary spending is very cyclical. We saw a surge in discretionary spending in the 2005-2007 time frame before the financial crisis happened, for example. But the 2020 and 2021 period had that unusual combination of factors, the stimulus, the postponed payments, the inability to go out and spend money, that really just made it an unusually high level of discretionary spending. Now combine that with the willingness of investors to pump all their money into these profitless businesses, essentially subsidizing people's discretionary spending. It was just like a perfect storm for the nice-to-have economy.
Jason Moser: Yeah. I tell you, one of these things that you see is you use these nice-to-haves as time goes on, as they become a little bit more. You find out ways to justify this being a must-have. Whether it's the convenience factor or whether it's something else entirely, you do start to find ways to justify these being need-to-have. I think it's also important for investors to remember too, just on that cyclical nature of consumer discretionary. These are the times probably where you want to start looking at the opportunities in consumer discretionary when we're seeing more pain, when we're seeing these valuations depress. Because it's not something that will last forever. It's certainly not to say that all of these will come back like meal plan companies, for example, I'm not sure that's necessarily the market that I'm looking to invest in. But perhaps fitness, perhaps specialty retail, something like that. These are probably the times to look at some of these nice-to-haves. It makes me wonder for you, what is a nice-to-have that has become a must for you over the past few years.
Matt Frankel: I would say my pool, but it's not like I could give that back even [laughs] if I wanted to.
Jason Moser: You're stuck with that one.
Matt Frankel: Something that I could get rid of, I would say my streaming services. At the start of the pandemic, I had Netflix, that was it. Now I have Netflix, I have HBO Max, I've Disney+. My kids would never let me get rid of Disney+ though. In the early days of the pandemic, it was nice to have, now I consider that an essential. For my wife, it would be the Peloton because it's that subscription model that sucks you in. Now that you've already spent thousands of dollars on your equipment, it seems silly to cancel your monthly subscription and just let it sit there.
Jason Moser: Yeah.
Matt Frankel: I guess that would be an essential too.
Jason Moser: Yeah. I mean, the health benefits too of exercise.
Matt Frankel: Absolutely. I like going to the gym, but then again, I work from home all day so I like getting out. She works in a hospital all day so she likes coming home and working out.
Jason Moser: Very understandable. Well, let's wrap this up real quick just with an idea here. In looking at these companies that start out as maybe nice-to-haves and then flip to that essential. Some good examples there. What are some characteristics or what does it take for a company to get from nice-to-have to essential? Is it something that relies on external forces, macroeconomic conditions, whatever it may be, or are there things that company itself can control to take that, to make that leap from being a nice-to-have to now listen, we are an essential part of your life and you need us?
Matt Frankel: Well, I would say one, a network effect. It wasn't that long ago when a smartphone was considered a nice-to-have luxury. You think of Apple. Everyone thinks that Apple is not an optional product. A recession hits, they don't sell any fewer iPhones, not significantly. The network effect of those products definitely helps. The same thing as with streaming. Streaming is a superior product and at a superior price point to the alternative, which is the obstacle that companies like Peloton need to overcome. Because yes, Peloton is absolutely a superior product to the $300 exercise bikes, but it's not at a similar price point. People have a really tough time viewing something as a must-have that costs 10 times as much as the alternative and that's why the streaming services, I think, are so successful because their cost is comparable to the alternatives and it's in many ways a better product.
Jason Moser: Well, we'll end it there. Matt, thanks so much for making the time for us today.
Matt Frankel: Of course. Always good to be here.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Chris Hill has positions in Apple, Target, and Walt Disney. Jason Moser has positions in Apple and Walt Disney. Matthew Frankel, CFP® has positions in Walt Disney and has the following options: long February 2023 $112 calls on Walt Disney. Tim Beyers has positions in Apple, Netflix, Peloton Interactive, Salesforce, Stitch Fix, and Walt Disney. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, 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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There was an article by Christopher Mims here several weeks back in the Wall Street Journal that talks about the decline of the nice-to-have economy and I thought it was a good and timely piece given where things stand today. Jason Moser: Thankfully, Matt, I don't want to have any student loan bills coming up, but given your financial advisor said, we may need to chat after taping because I have one child going to college in the fall and another one going a year later. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, and Walt Disney.
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Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, 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.
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Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy. Matt Frankel: I would say even like companies that specialize in discretionary retail, like say, Best Buy, to a lesser degree because they do sell things that people need like a washer and a dryer and things like that. It seems like something that pops up when, like you were saying before, consumers have more money to spend, then when that money starts running out, we see these things start to pull back a little bit.
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That is a good thing a focus Salesforce is potentially a dangerous Salesforce. Matt Frankel: It is, and I mean, I'm just as guilty as anybody like, I couldn't spend money if I wanted to during '20 and 2021. I tell you, one of these things that you see is you use these nice-to-haves as time goes on, as they become a little bit more.
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16807.0
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2023-03-11 00:00:00 UTC
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How to Make Money Following Warren Buffett's "Secret Sauce" Strategy
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AAPL
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https://www.nasdaq.com/articles/how-to-make-money-following-warren-buffetts-secret-sauce-strategy
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Warren Buffett is as transparent as they come. He has never been bashful about discussing his investing approach in detail. The multibillionaire doesn't mind talking about his failures as well as his successes.
In Buffett's latest letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, he even revealed what he called his "secret sauce." It's a straightforward approach that's worked exceptionally well for him.
It can work for you, too. Here's how to make money following Buffett's "secret sauce" strategy.
Image source: The Motley Fool.
A peek behind the curtain
Buffett included a section in his recent letter to Berkshire shareholders titled "The Secret Sauce." He introduced this section by stating that he would "take a peek behind the curtain" of how Berkshire had achieved tremendous success through the years.
The legendary investor spent several paragraphs giving specific examples explaining how the "secret sauce" strategy worked. But then he summed things up with three sentences that captured the essence of his approach:
The lesson for investors: The weeds wither away in significance as the flowers bloom.
Over time, it takes just a few winners to work wonders. And, yes, it helps to start early and live into your 90s as well.
Buffett's secret to making so much money for Berkshire (and himself) is to invest in multiple businesses, knowing that they won't always perform as well as hoped. Over the long term, though, some of them will become huge winners. These are the blooming flowers Buffett mentioned.
The other, less successful stocks will become such a small percentage of the total portfolio that they'll be insignificant. They're the weeds that wither away.
Arguably, the most important part of Buffett's approach is time. That's why he stated that starting early and having a long life span helps.
My own personal examples
Buffett's "secret sauce" strategy really isn't a secret, of course. He simply follows the maxims of buy-and-hold investing. It has indisputably worked for him: After all, Buffett's net worth stands at nearly $109 billion.
I have no doubt whatsoever that this approach will work for other investors as well. I'm so confident, mainly because it's worked for me.
To be sure, my investing success pales in comparison with Buffett's. Along the way, I've dabbled in many different strategies. But it's been the same buy-and-hold approach articulated so well by Buffett that's worked the best for me. I'll provide a few examples that illustrate exactly how.
Apple (NASDAQ: AAPL) ranks as my single biggest holding today. That's something that Buffett and I share in common -- it's the largest position in Berkshire Hathaway's portfolio as well. However, I initiated a position in Apple a long time before Buffett did.
When I first bought shares of Apple, its size was roughly in line with other stocks I owned. As it gained value (thank you, iPhone), the stock grew to tower above all the others. Apple was a flower that bloomed.
A few years ago, I invested in another business that I thought had a lot of potential. Skillz (NYSE: SKLZ) operated a platform that attracted 10 million gamers. It had recently landed a deal with the NFL to develop a mobile game. Things seemed to be looking up.
Not long after I bought shares of Skillz, though, the stock began to steadily decline. I held on, thinking that the situation would improve. It didn't. I've lost most of my initial investment.
However, it's a tiny part of my overall portfolio. The gains generated by Apple and other winners have more than offset the loss from Skillz. Just as Buffett wrote, Skillz became a weed that withered away in significance.
Make money Buffett-style
Of course, you do have to at least select a few good stocks that go on to deliver spectacular returns for Buffett's approach to work well. He has some advice on that selection process, too: Pick wonderful businesses at a fair price.
You might not become a billionaire like Buffett. However, buying and holding a portfolio of stocks over the long term has been proven to work. You truly can make money following Buffett's "secret sauce" strategy.
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
Keith Speights has positions in Apple, Berkshire Hathaway, and Skillz. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Skillz. 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) ranks as my single biggest holding today. A peek behind the curtain Buffett included a section in his recent letter to Berkshire shareholders titled "The Secret Sauce." But then he summed things up with three sentences that captured the essence of his approach: The lesson for investors: The weeds wither away in significance as the flowers bloom.
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Apple (NASDAQ: AAPL) ranks as my single biggest holding today. In Buffett's latest letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, he even revealed what he called his "secret sauce." See the 10 stocks *Stock Advisor returns as of March 8, 2023 Keith Speights has positions in Apple, Berkshire Hathaway, and Skillz.
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Apple (NASDAQ: AAPL) ranks as my single biggest holding today. My own personal examples Buffett's "secret sauce" strategy really isn't a secret, of course. Make money Buffett-style Of course, you do have to at least select a few good stocks that go on to deliver spectacular returns for Buffett's approach to work well.
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Apple (NASDAQ: AAPL) ranks as my single biggest holding today. But then he summed things up with three sentences that captured the essence of his approach: The lesson for investors: The weeds wither away in significance as the flowers bloom. However, buying and holding a portfolio of stocks over the long term has been proven to work.
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16808.0
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2023-03-10 00:00:00 UTC
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Apple argues UK competition watchdog had "no power" to launch probe
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AAPL
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https://www.nasdaq.com/articles/apple-argues-uk-competition-watchdog-had-no-power-to-launch-probe
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By Sam Tobin
LONDON, March 10 (Reuters) - Technology giant Apple AAPL.O on Friday told a London tribunal that Britain's competition watchdog had "no power" to launch a probe into its mobile browsers because it did so too late.
The Competition and Markets Authority (CMA) opened a full investigation in November into cloud gaming and mobile browsers over concerns about restrictions by iPhone-maker Apple, as well as by Google GOOGL.O.
Apple filed an appeal in January at the Competition Appeal Tribunal in London and argues the investigation is "invalid".
Its lawyer Timothy Otty said on Friday that the market investigation should by law have been opened last June at the same time as the CMA published a report on mobile ecosystems, which found the two tech giants had an "effective duopoly".
He added in court filings that Apple has "suffered serious prejudice" as a result of the CMA's decision, having "had to repeatedly divert management time and technical resources away from its business activities".
However, the CMA's lawyer James Eadie said the watchdog had complied with the legal time limits, because it initially decided not to open an investigation in December 2021.
He argued in court filings that a ruling that the investigation is invalid would cause "significant prejudice to the public interest … which outweighs any burden shouldered by Apple".
"A finding of invalidity would terminate the market investigation and leave unaddressed the CMA's concerns about the lack of competition for mobile browsers and cloud gaming," Eadie added.
Friday's hearing took place on the same day that the CMA said it was extending the deadline for its analysis and review into Apple's terms and conditions for app developers until May.
(Reporting by Sam Tobin Editing by Christina Fincher)
((Sam.Tobin@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Sam Tobin LONDON, March 10 (Reuters) - Technology giant Apple AAPL.O on Friday told a London tribunal that Britain's competition watchdog had "no power" to launch a probe into its mobile browsers because it did so too late. The Competition and Markets Authority (CMA) opened a full investigation in November into cloud gaming and mobile browsers over concerns about restrictions by iPhone-maker Apple, as well as by Google GOOGL.O. Its lawyer Timothy Otty said on Friday that the market investigation should by law have been opened last June at the same time as the CMA published a report on mobile ecosystems, which found the two tech giants had an "effective duopoly".
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By Sam Tobin LONDON, March 10 (Reuters) - Technology giant Apple AAPL.O on Friday told a London tribunal that Britain's competition watchdog had "no power" to launch a probe into its mobile browsers because it did so too late. The Competition and Markets Authority (CMA) opened a full investigation in November into cloud gaming and mobile browsers over concerns about restrictions by iPhone-maker Apple, as well as by Google GOOGL.O. "A finding of invalidity would terminate the market investigation and leave unaddressed the CMA's concerns about the lack of competition for mobile browsers and cloud gaming," Eadie added.
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By Sam Tobin LONDON, March 10 (Reuters) - Technology giant Apple AAPL.O on Friday told a London tribunal that Britain's competition watchdog had "no power" to launch a probe into its mobile browsers because it did so too late. The Competition and Markets Authority (CMA) opened a full investigation in November into cloud gaming and mobile browsers over concerns about restrictions by iPhone-maker Apple, as well as by Google GOOGL.O. "A finding of invalidity would terminate the market investigation and leave unaddressed the CMA's concerns about the lack of competition for mobile browsers and cloud gaming," Eadie added.
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By Sam Tobin LONDON, March 10 (Reuters) - Technology giant Apple AAPL.O on Friday told a London tribunal that Britain's competition watchdog had "no power" to launch a probe into its mobile browsers because it did so too late. The Competition and Markets Authority (CMA) opened a full investigation in November into cloud gaming and mobile browsers over concerns about restrictions by iPhone-maker Apple, as well as by Google GOOGL.O. Apple filed an appeal in January at the Competition Appeal Tribunal in London and argues the investigation is "invalid".
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16809.0
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2023-03-10 00:00:00 UTC
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After Hours Most Active for Mar 10, 2023 : SWN, SQQQ, TQQQ, QQQ, CTSH, HPE, AMZN, AAPL, AIG, KO, CHPT, PR
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-10-2023-%3A-swn-sqqq-tqqq-qqq-ctsh-hpe-amzn-aapl-aig-ko-chpt
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The NASDAQ 100 After Hours Indicator is up 2.76 to 11,833.04. The total After hours volume is currently 76,378,839 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is +0.02 at $4.96, with 7,478,928 shares traded. SWN's current last sale is 55.11% of the target price of $9.
ProShares UltraPro Short QQQ (SQQQ) is -0.06 at $41.02, with 3,397,076 shares traded. This represents a 31.59% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.01 at $20.89, with 3,194,357 shares traded. This represents a 29.75% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +0.15 at $288.70, with 2,702,162 shares traded. This represents a 13.55% increase from its 52 Week Low.
Cognizant Technology Solutions Corporation (CTSH) is unchanged at $60.38, with 2,590,270 shares traded. CTSH's current last sale is 90.8% of the target price of $66.5.
Hewlett Packard Enterprise Company (HPE) is +0.02 at $14.35, with 1,903,821 shares traded. HPE's current last sale is 82% of the target price of $17.5.
Amazon.com, Inc. (AMZN) is -0.13 at $90.60, with 1,789,816 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.08 at $148.42, with 1,778,506 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
American International Group, Inc. (AIG) is unchanged at $53.15, with 1,421,749 shares traded. As reported by Zacks, the current mean recommendation for AIG is in the "buy range".
Coca-Cola Company (The) (KO) is unchanged at $59.21, with 1,138,843 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".
ChargePoint Holdings, Inc. (CHPT) is +0.01 at $9.68, with 1,052,056 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024. The consensus EPS forecast is $-0.14. As reported by Zacks, the current mean recommendation for CHPT is in the "buy range".
Permian Resources Corporation (PR) is unchanged at $10.74, with 971,257 shares traded. As reported by Zacks, the current mean recommendation for PR is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.08 at $148.42, with 1,778,506 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 $60.38, with 2,590,270 shares traded.
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Apple Inc. (AAPL) is -0.08 at $148.42, with 1,778,506 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 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 -0.08 at $148.42, with 1,778,506 shares traded. The total After hours volume is currently 76,378,839 shares traded.
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Apple Inc. (AAPL) is -0.08 at $148.42, with 1,778,506 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -0.13 at $90.60, with 1,789,816 shares traded.
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16810.0
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2023-03-10 00:00:00 UTC
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Apple shareholders reject proposals from conservative groups
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AAPL
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https://www.nasdaq.com/articles/apple-shareholders-reject-proposals-from-conservative-groups-0
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nan
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By Stephen Nellis
March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China.
Shareholders meanwhile approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
During a question-and-answer session with shareholders, Cook said that Apple continued to plan for dividend increases. On how Apple plans to respond to changing economic conditions, Cook noted that the company's operating expenses came in below its forecast during its most recently-reported quarter.
"But most important, and I can't stress this enough, we're continuing to invest in innovation, whatever the near-term economic picture looks like," Cook said during the meeting.
(Reporting by Stephen Nellis in San Francisco; Editing by Emelia Sithole-Matarise)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. On how Apple plans to respond to changing economic conditions, Cook noted that the company's operating expenses came in below its forecast during its most recently-reported quarter.
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By Stephen Nellis March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders meanwhile approved the company's executive pay packages. During a question-and-answer session with shareholders, Cook said that Apple continued to plan for dividend increases.
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By Stephen Nellis March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. On how Apple plans to respond to changing economic conditions, Cook noted that the company's operating expenses came in below its forecast during its most recently-reported quarter.
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By Stephen Nellis March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders meanwhile approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
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16811.0
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2023-03-10 00:00:00 UTC
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Apple shareholders reject proposals from conservative groups
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AAPL
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https://www.nasdaq.com/articles/apple-shareholders-reject-proposals-from-conservative-groups
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nan
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nan
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March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China.
Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
(Reporting by Stephen Nellis in San Francisco)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
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March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
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March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. (Reporting by Stephen Nellis in San Francisco) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
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16812.0
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2023-03-10 00:00:00 UTC
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UK says needs more time to review Apple's alleged App Store monopoly
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AAPL
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https://www.nasdaq.com/articles/uk-says-needs-more-time-to-review-apples-alleged-app-store-monopoly
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nan
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nan
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March 10 (Reuters) - Britain's competition regulator has extended the deadline for its analysis and review into Apple Inc's AAPL.O terms and conditions for app developers to May.
The Competition and Markets Authority (CMA) in March 2021 opened its investigation into Apple's distribution of apps on iOS and iPadOS devices in the UK.
The ongoing probe would consider if Apple has a dominant position in the distribution of apps on its devices in the UK.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Radhika.Anilkumar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 10 (Reuters) - Britain's competition regulator has extended the deadline for its analysis and review into Apple Inc's AAPL.O terms and conditions for app developers to May. The Competition and Markets Authority (CMA) in March 2021 opened its investigation into Apple's distribution of apps on iOS and iPadOS devices in the UK. The ongoing probe would consider if Apple has a dominant position in the distribution of apps on its devices in the UK.
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March 10 (Reuters) - Britain's competition regulator has extended the deadline for its analysis and review into Apple Inc's AAPL.O terms and conditions for app developers to May. The Competition and Markets Authority (CMA) in March 2021 opened its investigation into Apple's distribution of apps on iOS and iPadOS devices in the UK. The ongoing probe would consider if Apple has a dominant position in the distribution of apps on its devices in the UK.
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March 10 (Reuters) - Britain's competition regulator has extended the deadline for its analysis and review into Apple Inc's AAPL.O terms and conditions for app developers to May. The Competition and Markets Authority (CMA) in March 2021 opened its investigation into Apple's distribution of apps on iOS and iPadOS devices in the UK. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Radhika.Anilkumar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 10 (Reuters) - Britain's competition regulator has extended the deadline for its analysis and review into Apple Inc's AAPL.O terms and conditions for app developers to May. The Competition and Markets Authority (CMA) in March 2021 opened its investigation into Apple's distribution of apps on iOS and iPadOS devices in the UK. The ongoing probe would consider if Apple has a dominant position in the distribution of apps on its devices in the UK.
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16813.0
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2023-03-10 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-0
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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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16814.0
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2023-03-10 00:00:00 UTC
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Should Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-activebeta-u.s.-large-cap-equity-etf-gslc-be-on-your-investing-7
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), a passively managed exchange traded fund launched on 09/17/2015.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $10.48 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.57%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.20% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 20.48% of total assets under management.
Performance and Risk
GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Large Cap Equity Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers.
The ETF has added about 2.43% so far this year and is down about -6.49% in the last one year (as of 03/10/2023). In the past 52-week period, it has traded between $71.02 and $91.01.
The ETF has a beta of 0.98 and standard deviation of 24.05% for the trailing three-year period, making it a medium risk choice in the space. With about 444 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSLC is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $293.57 billion in assets, SPDR S&P 500 ETF has $355.23 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), a passively managed exchange traded fund launched on 09/17/2015.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), a passively managed exchange traded fund launched on 09/17/2015.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), a passively managed exchange traded fund launched on 09/17/2015.
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16815.0
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2023-03-10 00:00:00 UTC
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2 Billion Reasons to Buy Apple Stock in 2023 and Hold It Forever
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AAPL
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https://www.nasdaq.com/articles/2-billion-reasons-to-buy-apple-stock-in-2023-and-hold-it-forever
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Even the best companies in the world have detractors. Tech giant Apple (NASDAQ: AAPL) is no different. The bears can point to the fact that the iPhone no longer generates the same amount of buzz as it did in its early days, or they can point out that its manufacturing has become highly dependent on a sometimes volatile Chinese market.
These issues could present long-term headwinds, especially for a company already worth $2.4 trillion. Despite all that, Apple's investment thesis remains strong. In fact, there are 2 billion reasons why the company remains a solid buy this year. Here's the rundown.
Apple's massive installed base
Apple's December quarter, the first quarter of its fiscal year 2023, was perhaps disappointing. The company's revenue decreased by 5.5% year over year to $117.2 billion, while its earnings per share also declined to $1.88, about 10.5% lower than the year-ago period. Although these results are far from ideal, it's important to put things in context. The world faced difficult economic challenges last year, including near 40-year-high inflation.
Unsurprisingly, some consumers chose to rein in spending on products that aren't essential, such as the newest iPhone. So Apple's first-quarter performance hardly indicates how things will go once the economy recovers. And on top of that, Apple announced one piece of good news in its latest quarterly update.
The tech giant highlighted that it now has an installed base of 2 billion active devices. That's an impressive number. But it is by no means done growing. Here's why.
There's more where that came from
Apple's most popular product is the iPhone, but it has plenty of others, from tablets to computers to wearable devices. One of the keys to the company's success here is that its software allows these devices to interact. iPhone users can easily read and send messages on other devices and share documents and photos between their Apple hardware, and that's just the tip of the iceberg.
That's why it is hard for iPhone users to jump ship since it would mean transferring data to another operating system, which isn't easy. Apple has the highest satisfaction and brand loyalty score among the major smartphone brands, and it attracts many first-time users too. That is precisely what CFO Luca Maestri recently highlighted: "This continued growth in the installed base is due to extremely strong levels of customer satisfaction and loyalty and a high number of customers who are new to our products."
So we can expect the company's users to stay put, and that 2 billion number will even increase, especially as Apple adds new products to its arsenal. The company is developing Augmented Reality (AR) headsets that will be released this year. And with Apple's successful track record at adding its own tweaks to existing products, these new products could be a hit.
That's especially the case considering Apple's brand name alone attracts consumers' attention. That's why it is one of the most valuable in the world. AR has been growing in popularity. That will continue for the foreseeable future. According to some estimates, the market will clock in a compound annual growth rate of 40.9% through 2030.
Apple will have plenty of opportunities to get in on the act.
High-margin monetization opportunities
Apple has been monetizing its user base via its services segment for years. From Apple Pay to Apple Music, Apple TV+, Apple Fitness+, and more, there is no shortage of options for the tech giant to serve the needs of its customers, and it will continue to find new ways to do exactly that. Some of the company's existing growth avenues are highly promising.
Consider Apple's fintech ambitions through Apple Pay and a buy-now-pay-later service. The mobile wallet market is still relatively small; it was worth $6.2 billion in 2021, but it will expand rapidly in the coming years. There were 507 million Apple Pay users as of Dec. 2021. That's out of over 1 billion iPhone users worldwide. Apple makes money through its payment service by collecting a fee every time someone uses it to make a purchase.
So as the adoption of this feature increases and there are more transactions, Apple will generate more revenue. Mobile payment usage is highest among Gen Z, so there is a good chance it will become more standard, with younger generations making up an increasingly large share of the population. And that's just one of the many long-term opportunities available to Apple.
Further, the company's services unit boasts much higher margins than its hardware business. In its latest quarter, Apple's total gross margin was 43%. The company's products and services segments reported gross margins of 37% and 70.8%, respectively. Apple isn't done generating money from its hardware products. But it will make an increasing amount of money from its 2 billion installed base, which will positively impact its profits and margins.
There is no end in sight for the monetization of Apple's user base, and that's a great reason to buy shares of the tech giant this year.
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Prosper Junior Bakiny 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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Tech giant Apple (NASDAQ: AAPL) is no different. iPhone users can easily read and send messages on other devices and share documents and photos between their Apple hardware, and that's just the tip of the iceberg. Mobile payment usage is highest among Gen Z, so there is a good chance it will become more standard, with younger generations making up an increasingly large share of the population.
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Tech giant Apple (NASDAQ: AAPL) is no different. High-margin monetization opportunities Apple has been monetizing its user base via its services segment for years. But it will make an increasing amount of money from its 2 billion installed base, which will positively impact its profits and margins.
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Tech giant Apple (NASDAQ: AAPL) is no different. Apple's massive installed base Apple's December quarter, the first quarter of its fiscal year 2023, was perhaps disappointing. So we can expect the company's users to stay put, and that 2 billion number will even increase, especially as Apple adds new products to its arsenal.
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Tech giant Apple (NASDAQ: AAPL) is no different. In fact, there are 2 billion reasons why the company remains a solid buy this year. There's more where that came from Apple's most popular product is the iPhone, but it has plenty of others, from tablets to computers to wearable devices.
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16816.0
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2023-03-09 00:00:00 UTC
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US STOCKS-Wall St climbs as jobless claims rise, payrolls data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-jobless-claims-rise-payrolls-data-in-focus
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
March 9 (Reuters) - Wall Street's main indexes rose on Thursday after a jump in weekly jobless claims eased some concerns about sharper rate hikes as investors geared up for a key jobs report that could determine the Fed's future monetary policy path.
The jobless claims report comes on the heels of a string of recent data that had indicated a tight labor market which, along with hawkish remarks by Federal Reserve Chair Jerome Powell, had exacerbated concerns that the central bank could shift to more aggressive rate hikes.
Traders reduced bets of a 50-basis-point rate hike at the Fed's next meeting after the report, with the terminal rate now seen at 5.63% in September compared with 5.67% prior to the report. FEDWATCH.
They had dramatically increased their bets for a large 50 basis point rate increase by the Fed in March from a 25 bps hike, after Powell's testimony.
Powell, on the second day of his testimony on Wednesday, reaffirmed his message of likely sharper interest rate hikes, but emphasized that the decision hinged on economic data before the central bank's March meeting.
Initial claims for state unemployment benefits rose 21,000 to a seasonally adjusted 211,000 for the week ended March 4, the Labor Department said on Thursday. Economists polled by Reuters had forecast 195,000 claims for the latest week.
"This could be a game changer for today's market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"It's certainly good news in terms of higher interest rate expectations. If this trend continues, the Fed might not have to be that aggressive."
As U.S. Treasury yields eased following the data, shares of Big Tech and growth companies such as Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O, Alphabet Inc GOOGL.O rose between 0.8% and 1.3%.
The gains pushed up the S&P 500 communication services .SPLRCL, consumer discretionary .SPLRCD and information technology .SPLRCT sectors between 0.4% and 0.6%.
Energy shares .SPNY were the biggest gainers, up 1.7% as oil prices climbed. O/R.
Investors' focus is now on the February non-farm payrolls report on Friday, which is expected to show payrolls rose by 205,000 last month, according to economists polled by Reuters, after January's blowout 517,000 figure, which had first led markets to reprice their expectations for U.S. interest rates.
At 9:45 a.m. ET, the Dow Jones Industrial Average .DJI was up 143.02 points, or 0.44%, at 32,941.42, the S&P 500 .SPX was up 16.78 points, or 0.42%, at 4,008.79, and the Nasdaq Composite .IXIC was up 48.42 points, or 0.42%, at 11,624.43.
U.S.-listed shares of JD.com Inc 9618.HK, JD.O dropped 7.9% after the Chinese e-commerce firm missed fourth-quarter revenue estimates.
General Electric Co GE.N rose 6.9% as the industrial conglomerate reiterated its 2023 earnings forecast.
Advancing issues outnumbered decliners by a 1.64-to-1 ratio on the NYSE and by a 1.06-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 11 new lows, while the Nasdaq recorded 28 new highs and 54 new lows.
(Reporting by Amruta Khandekar, Shristi Achar A and Johann M Cherian in Bengaluru, additional reporting by Medha Singh Editing by Vinay Dwivedi)
((Amruta.Khandekar@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As U.S. Treasury yields eased following the data, shares of Big Tech and growth companies such as Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O, Alphabet Inc GOOGL.O rose between 0.8% and 1.3%. By Amruta Khandekar and Shristi Achar A March 9 (Reuters) - Wall Street's main indexes rose on Thursday after a jump in weekly jobless claims eased some concerns about sharper rate hikes as investors geared up for a key jobs report that could determine the Fed's future monetary policy path. The jobless claims report comes on the heels of a string of recent data that had indicated a tight labor market which, along with hawkish remarks by Federal Reserve Chair Jerome Powell, had exacerbated concerns that the central bank could shift to more aggressive rate hikes.
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As U.S. Treasury yields eased following the data, shares of Big Tech and growth companies such as Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O, Alphabet Inc GOOGL.O rose between 0.8% and 1.3%. By Amruta Khandekar and Shristi Achar A March 9 (Reuters) - Wall Street's main indexes rose on Thursday after a jump in weekly jobless claims eased some concerns about sharper rate hikes as investors geared up for a key jobs report that could determine the Fed's future monetary policy path. They had dramatically increased their bets for a large 50 basis point rate increase by the Fed in March from a 25 bps hike, after Powell's testimony.
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As U.S. Treasury yields eased following the data, shares of Big Tech and growth companies such as Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O, Alphabet Inc GOOGL.O rose between 0.8% and 1.3%. By Amruta Khandekar and Shristi Achar A March 9 (Reuters) - Wall Street's main indexes rose on Thursday after a jump in weekly jobless claims eased some concerns about sharper rate hikes as investors geared up for a key jobs report that could determine the Fed's future monetary policy path. The jobless claims report comes on the heels of a string of recent data that had indicated a tight labor market which, along with hawkish remarks by Federal Reserve Chair Jerome Powell, had exacerbated concerns that the central bank could shift to more aggressive rate hikes.
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As U.S. Treasury yields eased following the data, shares of Big Tech and growth companies such as Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O, Alphabet Inc GOOGL.O rose between 0.8% and 1.3%. By Amruta Khandekar and Shristi Achar A March 9 (Reuters) - Wall Street's main indexes rose on Thursday after a jump in weekly jobless claims eased some concerns about sharper rate hikes as investors geared up for a key jobs report that could determine the Fed's future monetary policy path. They had dramatically increased their bets for a large 50 basis point rate increase by the Fed in March from a 25 bps hike, after Powell's testimony.
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16817.0
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2023-03-09 00:00:00 UTC
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One Stock Republican Congressmen Are Quietly Investing In
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AAPL
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https://www.nasdaq.com/articles/one-stock-republican-congressmen-are-quietly-investing-in
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It may not take a genius to win a seat in Congress – but it’s no simple task either.
We may love to hate Congress, but we have to admit… it’s filled with smart, savvy folks.
To help prove my point, let’s bring this back to my area of expertise – investing – and take a look at Washington politicians’ track records.
According to a December 2004 Georgia State University study, U.S. Senators’ average annual stock performance from 1993 to 1998 beat the S&P 500 by around 12.3%.
That’s not an outrageous fortune – but it’s not bad.
According to that same Georgia State study, corporate insiders on average outperformed the market by just 7.4%.
And the stock portfolios of the average U.S. household? We on average underperformed the S&P 500 by 1.5%.
Of course, many would say senators outperform in the market not because of their intelligence, but due to inside knowledge. You’re probably not wrong.
In a fit of public shame perhaps, Congress attempted to police itself in that regard by passing Public Law 112-105. The Stop Trading on Congressional Knowledge Act of 2012 prohibits members of Congress and other federal employees from using nonpublic information for private profit.
If you think the STOCK Act put an end to active trading by lawmakers or cut their profits, think again.
While 2022 saw all the major U.S. indices suffer their worst downturn since the 2008 financial crisis, many members of Congress did pretty well last year.
Data released by the website Unusual Whales shows that U.S. Rep. Patrick Fallon (R-Texas), for example, earned 51.6% on his investments in 2022, while U.S. Rep. Debbie Wasserman-Schultz (D-Florida) saw a gain of 50.8%. Other members of Congress posted gains of 10% or greater as the benchmark S&P 500 index declined 19% on the year, and the technology-laden Nasdaq Composite fell 33%.
So… it seems that, despite the good intentions of the STOCK Act, members of Congress remain savvy investors…
And perhaps investors worth following.
Thanks to Public Law 112-105, we now can.
Everything Is Public Now
The STOCK Act of 2012 doesn’t just put the hammer on inside trading among members of Congress.
It makes their active trades public records.
That means everyday individuals now have the legal ability to profit from the same trades made by Washington lawmakers.
The law allows individuals to legally invest in the same stocks as members of Congress, providing access to potentially profitable investment opportunities.
By piggybacking on the trades made by members of Congress, retail investors can take advantage of the expertise and insights and potentially achieve higher returns.
Public Law 112-105 has made it possible for everyday individuals to invest like a D.C. legislator and potentially benefit from the same investment opportunities.
After all, even the spouses of legislators have proven to be better-than-average investors. For example, Paul Pelosi, the husband of former Speaker of the House Nancy Pelosi, is referred to as the “world’s greatest investor” after making millions speculating in call options on Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA).
So, in today’s Market 360, I want to share a top energy stock that has caught the attention of Republican members of Congress.
A Favorite Among Republicans
From humble beginnings as a regional marketer of kerosene more than 135 years ago, Exxon Mobil Corporation (NYSE:XOM) has grown to become one of the biggest energy providers in the world. The company’s products are marketed under four key brands: Esso, Exxon, Mobil and ExxonMobil.
During the third quarter of 2022, Exxon achieved its highest quarterly refining throughput globally since 2008, as well as achieved record production of 560,000 barrels of oil equivalent per day (BOE/D) in the Permian Basin. Total third-quarter production increased by 50,000 BOE/D and totaled 3.7 million BOE/D.
Exxon Mobil is the major American player in the global energy economy and a favorite among Republican members of Congress.
For example, U.S. Rep. Chris Jacobs of New York state bought shares of XOM when it was trading around $86. Since then, it has traded as high as $119. That means investors could have made around 40% gain in that period in comparison to a tepid 5% gain in the S&P 500.
Not a bad way to ride a “Republican Red Wave” to profits…
One of the reasons for Exxon’s recent production strength is its venture in Guyana. The company already has four oil projects there, and it plans to invest $12.68 billion in its fifth oil project in that South American nation. The five projects are anticipated to produce 1.2 million barrels per day by 2027. In Guyana so far, Exxon has made more than 30 oil discoveries, which add up to 11 billion barrels of proven crude oil reserves. Guyana expects there are up to 25 billion barrels of oil reserves there, and it will likely auction off more acreage licenses to Exxon Mobil.
In its fourth-quarter report, Exxon revealed that production increased by more than 30% in Guyana and the Permian Basin in 2022, which helped the company achieve strong bottom-line growth. Full-year adjusted earnings jumped 161.3% year-over-year to $14.06 per share, up from $5.38 per share in 2021. Full-year revenue grew 44.8% year-over-year to $413.7 billion. The consensus estimate called for earnings of $13.94 per share on $427.9 billion in revenue.
For the fourth quarter, Exxon reported adjusted earnings of $3.40 per share, which was up 65.9% from $2.05 per share in the same quarter a year ago. Analysts expected earnings of $3.29 per share. Total 4Q revenue rose 12.3% year-over-year to $95.43 billion, topping estimates for $94.67 billion.
Plus, Exxon will pay a first-quarter dividend of $0.91 per share on March 10. All shareholders of record on February 14 will receive the dividend.
The Republican Red Wave
Exxon isn’t the only energy company riding the Republican red wave right now… There are four other “recession-proof” stocks that Republican Congressmen are investing in.
So, I put together a special report called the Top 5 Stocks Republican Congressmen Are Quietly Investing In that dives into these stocks, including Exxon, that politicians have been buying. I also explain why the energy bull market isn’t over yet.
With strong sales growth and profits ahead, these stocks are must-haves for your portfolio as we navigate our way through this turbulent environment.
To read my Top 5 Stocks Republican Congressmen Are Quietly Investing In report, click here.
Sincerely,
Source: InvestorPlace unless otherwise noted
Louis Navellier
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Exxon Mobil Corporation (XOM)
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post One Stock Republican Congressmen Are Quietly Investing In appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Paul Pelosi, the husband of former Speaker of the House Nancy Pelosi, is referred to as the “world’s greatest investor” after making millions speculating in call options on Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA). Data released by the website Unusual Whales shows that U.S. Rep. Patrick Fallon (R-Texas), for example, earned 51.6% on his investments in 2022, while U.S. Rep. Debbie Wasserman-Schultz (D-Florida) saw a gain of 50.8%. A Favorite Among Republicans From humble beginnings as a regional marketer of kerosene more than 135 years ago, Exxon Mobil Corporation (NYSE:XOM) has grown to become one of the biggest energy providers in the world.
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For example, Paul Pelosi, the husband of former Speaker of the House Nancy Pelosi, is referred to as the “world’s greatest investor” after making millions speculating in call options on Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA). According to that same Georgia State study, corporate insiders on average outperformed the market by just 7.4%. The law allows individuals to legally invest in the same stocks as members of Congress, providing access to potentially profitable investment opportunities.
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For example, Paul Pelosi, the husband of former Speaker of the House Nancy Pelosi, is referred to as the “world’s greatest investor” after making millions speculating in call options on Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA). The law allows individuals to legally invest in the same stocks as members of Congress, providing access to potentially profitable investment opportunities. The Republican Red Wave Exxon isn’t the only energy company riding the Republican red wave right now… There are four other “recession-proof” stocks that Republican Congressmen are investing in.
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For example, Paul Pelosi, the husband of former Speaker of the House Nancy Pelosi, is referred to as the “world’s greatest investor” after making millions speculating in call options on Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA). Everything Is Public Now The STOCK Act of 2012 doesn’t just put the hammer on inside trading among members of Congress. It makes their active trades public records.
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16818.0
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2023-03-09 00:00:00 UTC
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Apple and Foxconn win labour reforms to advance Indian production plans - FT
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AAPL
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https://www.nasdaq.com/articles/apple-and-foxconn-win-labour-reforms-to-advance-indian-production-plans-ft
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nan
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nan
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March 9 (Reuters) - Apple Inc AAPL.O and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in India's Karnataka this month, the Financial Times reported, citing three people familiar with the matter.
(Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich)
((Akriti.Sharma@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 9 (Reuters) - Apple Inc AAPL.O and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in India's Karnataka this month, the Financial Times reported, citing three people familiar with the matter. (Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich) ((Akriti.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 9 (Reuters) - Apple Inc AAPL.O and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in India's Karnataka this month, the Financial Times reported, citing three people familiar with the matter. (Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich) ((Akriti.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 9 (Reuters) - Apple Inc AAPL.O and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in India's Karnataka this month, the Financial Times reported, citing three people familiar with the matter. (Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich) ((Akriti.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 9 (Reuters) - Apple Inc AAPL.O and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in India's Karnataka this month, the Financial Times reported, citing three people familiar with the matter. (Reporting by Akriti Sharma in Bengaluru; Editing by Rashmi Aich) ((Akriti.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16819.0
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2023-03-09 00:00:00 UTC
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3 Hot Stocks for Tomorrow: Thursday Predictions for AAPL, ULTA, AMZN
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AAPL
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https://www.nasdaq.com/articles/3-hot-stocks-for-tomorrow%3A-thursday-predictions-for-aapl-ulta-amzn
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After two days of testimony from Federal Reserve Chairman Jerome Powell, the stock market is in a state of limbo. Investors are hyper focused on the hot stocks for tomorrow.
Basically, investors want to know if the S&P 500 is about to enjoy another leg to the upside and take out the recent highs or if the market is on the precipice of rolling over.
There is a shred of hope that the Fed won’t raise rates too aggressively from current levels. However, another month of hot economic and inflation reports will force investors to the realization that higher interest rates are likely on the way.
We’ll get a peak at that with Friday morning’s non-farm payrolls report. Let’s look at a few other hot stocks for tomorrow — Friday — as we wrap up the week.
Hot Stocks for Tomorrow: Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Considering it’s the largest U.S. stock by market capitalization with a valuation of roughly $2.5 trillion, Apple (NASDAQ:AAPL) is almost always at the top of investors’ focus list.
On Friday morning at 12:00 p.m. Eastern, the tech giant will hold its annual shareholder meeting.
Oftentimes, shareholder meetings go by without so much as a whisper, and the stock does absolutely nothing. Other times it can create a giant move in the stock price, like what we’re seeing with General Electric (NYSE:GE) on Thursday.
As for Apple, the stock has been trading pretty well in all honesty. Despite a not-so-stellar quarter in January, investors have shrugged off worries of lower iPhone demand and driven shares higher. Will the annual meeting fuel the fire or derail the rally?
The Chart: Apple stock has been struggling with the 61.8% retracement and the mid-$150s. If it can break out to the upside and clear this zone, then the 78.6% retracement near $165 is in play.
On the downside, many would consider last week’s low near $144 as a must-hold level. While a break of $150 would surely suggest “caution” in the short term, a break of $144 and the 50-day would put AAPL stock below all of its key daily moving averages and make it vulnerable to more selling pressure.
Hot Stocks for Tomorrow: Ulta Beauty (ULTA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Has there been a better retailer than Ulta Beauty (NASDAQ:ULTA)? Possibly, but this name has been on fire. In an equities market engulfed in frustrating choppiness and a bear market that has dragged out for more than a year, Ulta Beauty has been a shining example of what investors should be looking for.
The stock continues to display robust relative strength as it pushes higher. It continues to notch new all-time high after new all-time high, while the dips are being bought.
Last time the retailer reported earnings back in November, the stock had already enjoyed a strong rally. While it didn’t pull back after the results, the reaction was rather muted.
Now, the company is scheduled to report on Thursday after the close. Analysts expect about 11% revenue growth and 4.5% earnings growth. However, it will be guidance that drives the stock from here.
The Chart: Will we get another mild earnings reaction despite the recent pullback? If shares dip, look for support from the 10-week and 50-day moving averages in the $505 to $515 region. A break and close below $500 would be a sign that a larger pullback is in the works. On the upside, a move over $532 puts the $537.50 highs back in play, followed by a potential move to the $550 to $555 zone.
The SXSW Festival: Amazon (AMZN)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Last but certainly not least, we have the SXSW Festival that kicks off in Austin, Texas, on Friday. The event lasts for more than a week and draws an enormous crowd. According to the festival, it “celebrates the convergence of tech, film, music, education, and culture.”
That really is the best way to describe it, too.
It’s an enormous blend of different companies and people that put on everything from films to speeches. We’ll also hear about the metaverse, autonomous driving, clean energy and much more.
Of the public companies that will be there, we know about Amazon (NASDAQ:AMZN), Roku (NASDAQ:ROKU), SunPower (NASDAQ:SPWR) and more. I’m not sure if this will move the needle on any of the stocks, but it seems worthwhile to mention their presence.
The Chart: Looking at Amazon from this group, this stock has been struggling so far this year. Bulls want the stock to regain the $96.50 area. That’s roughly Monday’s high and Thursday’s high, but more importantly it would put the stock back over the 10-day, 10-week, 21-day and 50-day moving averages.
If it can do that, it opens the door back up to $100, then $102.50. On the downside, a break of $88.50 to $90 is a bit concerning, as it could open the door back down to the low-$80s.
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: Thursday Predictions for AAPL, ULTA, AMZN appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to Enlarge Source: Chart courtesy of TrendSpider Considering it’s the largest U.S. stock by market capitalization with a valuation of roughly $2.5 trillion, Apple (NASDAQ:AAPL) is almost always at the top of investors’ focus list. Hot Stocks for Tomorrow: Apple (AAPL) While a break of $150 would surely suggest “caution” in the short term, a break of $144 and the 50-day would put AAPL stock below all of its key daily moving averages and make it vulnerable to more selling pressure.
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The post 3 Hot Stocks for Tomorrow: Thursday Predictions for AAPL, ULTA, AMZN appeared first on InvestorPlace. Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Considering it’s the largest U.S. stock by market capitalization with a valuation of roughly $2.5 trillion, Apple (NASDAQ:AAPL) is almost always at the top of investors’ focus list.
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Click to Enlarge Source: Chart courtesy of TrendSpider Considering it’s the largest U.S. stock by market capitalization with a valuation of roughly $2.5 trillion, Apple (NASDAQ:AAPL) is almost always at the top of investors’ focus list. Hot Stocks for Tomorrow: Apple (AAPL) While a break of $150 would surely suggest “caution” in the short term, a break of $144 and the 50-day would put AAPL stock below all of its key daily moving averages and make it vulnerable to more selling pressure.
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Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Considering it’s the largest U.S. stock by market capitalization with a valuation of roughly $2.5 trillion, Apple (NASDAQ:AAPL) is almost always at the top of investors’ focus list. While a break of $150 would surely suggest “caution” in the short term, a break of $144 and the 50-day would put AAPL stock below all of its key daily moving averages and make it vulnerable to more selling pressure.
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16820.0
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2023-03-09 00:00:00 UTC
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The 7 Best Tech Stocks to Buy in March
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AAPL
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https://www.nasdaq.com/articles/the-7-best-tech-stocks-to-buy-in-march
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The tech sphere was among the worst hit last year for obvious reasons. The sector, known for having inflated valuations and low earnings, led to tech stocks cooling off. However, tech stocks have been building a nice head of steam of late, despite posting mixed fourth-quarter earnings. Therefore, it might be an ideal time to invest in the best tech stocks to buy.
Tech stocks have dominated the stock market over the years. However, outperforming the broader market by roughly 8.6% on average each year for the past eight years, the trend reversed dramatically. Nevertheless, tech stocks recently had their best Jan. in decades, gaining close to 11%. Reduced earnings expectations and a more dovish approach by the Federal Reserve could lead tech stocks higher this year. As you read through the article, you’ll find stocks trading below their 52-week highs. That should provide an attractive entry point for those looking for outsized gains in the future.
MSFT Microsoft $253.12
AAPL Apple $151.02
RBLX Roblox $40.19
NFLX Netflix $296.52
AMZN Amazon $92.82
META Meta Platforms $181.52
OKTA Okta $84.40
Best Tech Stocks To Buy: Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) never ceases to amaze with its ability to tap into the latest tech trends and significantly expand its growth runway. It’s been in the news for its multi-billion dollar investment in OpenAI, the popular research lab behind the viral chatbot ChatGPT.
Microsoft has wasted no time making significant strides in its AI efforts by integrating ChatGPT-like capabilities into its popular software suite and launching an AI-powered version of its Bing search engine. Moreover, ChatGPT has exclusively chosen Microsoft’s Azure platform as its cloud computing provider. The killer combo should result in massive top and bottom-line gains for the business as it looks to become an AI behemoth.
Strip AI from the mix, and Microsoft still has an incredibly robust business that will continue to generate double-digit top and bottom-line gains for the foreseeable future. Also, MSFT stock trades close to 20% lower than its 52-week high price of $315.95, which points to solid upside potential.
Best Tech Stocks to Buy: Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) is the world’s most valuable tech company, with a market capitalization of $2.2 trillion. Its timeless offerings are not only market beaters but are integrated within a sticky ecosystem, providing users with an unparalleled experience. Each component of its tightly integrated ecosystem of products and services works seamlessly together to create a cohesive experience for its massive user base worldwide.
Apple’s operating performance has been remarkable over the years, generating close to 12% sales growth over the past five years. Recent results, though, have been marred by foreign exchange pressures and other macro headwinds, which should ease out over the next few quarters. Despite operating in a dicey environment, the firm generated $34 billion in operational cash flows and returned more than $25 billion to its shareholders while investing in long-term growth plans.
Additionally, its services business continues to shine, generating a record $20.7 billion in sales, improving by 6.4% from the prior-year period. Moreover, services revenue for the firm has grown by 568% from its 2013 level.
Best Tech Stocks to Buy: Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Metaverse video game developer Roblox (NYSE:RBLX) was a smash hit during the pandemic, with its bookings growing over 200%. However, reality came crashing down post-pandemic, with its top and bottom lines feeling the brunt of the re-opening headwinds. Nevertheless, the company seems to be back in growth mode after posting vigorous revenue growth in the past few quarters.
Its fourth-quarter results beat estimates by $14.7 million, with 58.8 million average daily active users, up 19% from the prior-year period. Its users spent over 12.8 billion hours engaged on its platform during the quarter, up 18% from the fourth quarter of 2021. Perhaps more impressively, its loss per share of 48 cents, beating estimates of a per-share loss of 54 cents. Its adjusted EBITDA saw massive improvements, with an effective rebound to $183 million in its December quarter. The improvements in its profitability and strong revenue growth should push the stock past its 52-week high price to new heights.
Netflix (NFLX)
Source: xalien / Shutterstock
Streaming pioneer Netflix (NASDAQ:NFLX) had a volatile 12 months, where it shed customers for the first in over a decade. Also, its stock was down over 50% at one time during the year. However, in the past few quarters, Netflix has returned to winning ways, reporting $31.6 billion in sales for fiscal 2022, a 6.4% improvement from 2021.
It wrapped its fourth quarter adding 7.6 million subscribers, roughly 3.09 million higher than analyst expectations. More importantly, though, it didn’t see much plan-switching among customers, which indicates that few users are moving down to cheaper, ad-supported tiers. As we advance, the success of its ads-supported tier could be crucial in adding another dimension to business. According to the company’s CFO Spencer Neumann, Disney-controlled Hulu earns roughly 50% of its sales from its ad plans, pointing to a healthy upside potential ahead for Netflix.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) is a juggernaut in the eCommerce space commanding a 38% share of the U.S. market. However, over the past few years, its focus has been on its services business, generating significantly higher margins for the firm than its core products business.
Selling discount products has never been profitable for Amazon, but its transition towards a services model has helped mitigate its losses. For instance, its cloud service, Amazon Web Services, has generated more than a 25% operating margin in recent quarters, which has proven remarkably lucrative. AWS generated $22.8 billion in trailing twelve-month operating income while its profits dropped for other business segments. Amazon has been mighty effective in leveraging the success of its products business to scale its services business, which will continue expanding its margins.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) was a top battleground stock last year, with multiple narratives swirling around it. One would argue that most of its problems were of its own undoing, along with the macro environment exasperating its problems. However, the announcements made in its recentearnings callwere a breath of fresh air, with the investing punditry jumping on its bandwagon again.
It seems that Meta is finally looking to control costs and focus more on practical and more sustainable trends in the tech sphere, such as AI. CEO Mark Zuckerberg deemed 2023 to be the “Year of Efficiency” where Meta would look to become a more nimble organization. That would entail less spending on the metaverse and more investments in AI. It recently introduced a new AI language model called LLaMA (Large Language Model Meta AI), which, similar to ChatGPT, mines massive amounts of data to generate content.
Okta (OKTA)
Source: Shutterstock
Okta (NASDAQ:OKTA) is a key player in cybersecurity, with its leadership position in providing identity access management. Cyber-attacks have become more widespread than ever before, with a 38% increase worldwide last year. Hence, despite the headwinds, Okta is in an excellent position to continue benefitting from the increasing need for potent cybersecurity solutions.
Okta’s bottom line has taken a hit recently, but its solid top-line base continues to shine each quarter. Okta’s revenue growth has averaged 43% on a year-over-year basis, which is impressive considering it operates in a relatively unstable environment. In its fourth quarter, the company added 550 new customers, reporting a 17% bump from the prior-year period to 17,600. Though the macro environment somewhat impacted its customer growth, its amazing retention rates of over 120% point to the stickiness of the platform.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post The 7 Best Tech Stocks to Buy in March 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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MSFT Microsoft $253.12 AAPL Apple $151.02 RBLX Roblox $40.19 NFLX Netflix $296.52 AMZN Amazon $92.82 META Meta Platforms $181.52 OKTA Okta $84.40 Best Tech Stocks To Buy: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) never ceases to amaze with its ability to tap into the latest tech trends and significantly expand its growth runway. Best Tech Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s most valuable tech company, with a market capitalization of $2.2 trillion. Microsoft has wasted no time making significant strides in its AI efforts by integrating ChatGPT-like capabilities into its popular software suite and launching an AI-powered version of its Bing search engine.
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MSFT Microsoft $253.12 AAPL Apple $151.02 RBLX Roblox $40.19 NFLX Netflix $296.52 AMZN Amazon $92.82 META Meta Platforms $181.52 OKTA Okta $84.40 Best Tech Stocks To Buy: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) never ceases to amaze with its ability to tap into the latest tech trends and significantly expand its growth runway. Best Tech Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s most valuable tech company, with a market capitalization of $2.2 trillion. Okta (OKTA) Source: Shutterstock Okta (NASDAQ:OKTA) is a key player in cybersecurity, with its leadership position in providing identity access management.
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MSFT Microsoft $253.12 AAPL Apple $151.02 RBLX Roblox $40.19 NFLX Netflix $296.52 AMZN Amazon $92.82 META Meta Platforms $181.52 OKTA Okta $84.40 Best Tech Stocks To Buy: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) never ceases to amaze with its ability to tap into the latest tech trends and significantly expand its growth runway. Best Tech Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s most valuable tech company, with a market capitalization of $2.2 trillion. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) was a top battleground stock last year, with multiple narratives swirling around it.
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MSFT Microsoft $253.12 AAPL Apple $151.02 RBLX Roblox $40.19 NFLX Netflix $296.52 AMZN Amazon $92.82 META Meta Platforms $181.52 OKTA Okta $84.40 Best Tech Stocks To Buy: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Microsoft (NASDAQ:MSFT) never ceases to amaze with its ability to tap into the latest tech trends and significantly expand its growth runway. Best Tech Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s most valuable tech company, with a market capitalization of $2.2 trillion. Tech stocks have dominated the stock market over the years.
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16821.0
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2023-03-09 00:00:00 UTC
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Noteworthy Thursday Option Activity: AMZN, AAPL, EL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-amzn-aapl-el
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Amazon.com Inc (Symbol: AMZN), where a total of 609,816 contracts have traded so far, representing approximately 61.0 million underlying shares. That amounts to about 112% of AMZN's average daily trading volume over the past month of 54.5 million shares. Particularly high volume was seen for the $130 strike put option expiring March 17, 2023, with 53,750 contracts trading so far today, representing approximately 5.4 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 495,116 contracts, representing approximately 49.5 million underlying shares or approximately 84.4% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Especially high volume was seen for the $155 strike call option expiring March 10, 2023, with 55,365 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange:
And Estee Lauder Cos., Inc. (Symbol: EL) saw options trading volume of 11,015 contracts, representing approximately 1.1 million underlying shares or approximately 83.1% of EL's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $260 strike call option expiring October 20, 2023, with 6,282 contracts trading so far today, representing approximately 628,200 underlying shares of EL. Below is a chart showing EL's trailing twelve month trading history, with the $260 strike highlighted in orange:
For the various different available expirations for AMZN options, AAPL options, or EL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
High Yield Baby Bonds
ADTX Insider Buying
TGA market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $155 strike call option expiring March 10, 2023, with 55,365 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 495,116 contracts, representing approximately 49.5 million underlying shares or approximately 84.4% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: And Estee Lauder Cos., Inc. (Symbol: EL) saw options trading volume of 11,015 contracts, representing approximately 1.1 million underlying shares or approximately 83.1% of EL's average daily trading volume over the past month, of 1.3 million shares.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 495,116 contracts, representing approximately 49.5 million underlying shares or approximately 84.4% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: And Estee Lauder Cos., Inc. (Symbol: EL) saw options trading volume of 11,015 contracts, representing approximately 1.1 million underlying shares or approximately 83.1% of EL's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $155 strike call option expiring March 10, 2023, with 55,365 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 495,116 contracts, representing approximately 49.5 million underlying shares or approximately 84.4% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: And Estee Lauder Cos., Inc. (Symbol: EL) saw options trading volume of 11,015 contracts, representing approximately 1.1 million underlying shares or approximately 83.1% of EL's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $155 strike call option expiring March 10, 2023, with 55,365 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 495,116 contracts, representing approximately 49.5 million underlying shares or approximately 84.4% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Especially high volume was seen for the $155 strike call option expiring March 10, 2023, with 55,365 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: And Estee Lauder Cos., Inc. (Symbol: EL) saw options trading volume of 11,015 contracts, representing approximately 1.1 million underlying shares or approximately 83.1% of EL's average daily trading volume over the past month, of 1.3 million shares.
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16822.0
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2023-03-09 00:00:00 UTC
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iShares Core Dividend Growth ETF Experiences Big Outflow
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AAPL
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https://www.nasdaq.com/articles/ishares-core-dividend-growth-etf-experiences-big-outflow
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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 iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $249.1 million dollar outflow -- that's a 1.1% decrease week over week (from 471,250,000 to 466,250,000). Among the largest underlying components of DGRO, in trading today Apple Inc (Symbol: AAPL) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Gilead Sciences Inc (Symbol: GILD) is lower by about 0.2%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average:
Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $54.55 as the 52 week high point — that compares with a last trade of $49.84. 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 experienced notable outflows »
Also see:
High-Yield REITs
Funds Holding TTPH
Top Ten Hedge Funds Holding MRH
The views and 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 DGRO, in trading today Apple Inc (Symbol: AAPL) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Gilead Sciences Inc (Symbol: GILD) is lower by about 0.2%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of DGRO, in trading today Apple Inc (Symbol: AAPL) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Gilead Sciences Inc (Symbol: GILD) is lower by about 0.2%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $54.55 as the 52 week high point — that compares with a last trade of $49.84. 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 DGRO, in trading today Apple Inc (Symbol: AAPL) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Gilead Sciences Inc (Symbol: GILD) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $249.1 million dollar outflow -- that's a 1.1% decrease week over week (from 471,250,000 to 466,250,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $54.55 as the 52 week high point — that compares with a last trade of $49.84.
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Among the largest underlying components of DGRO, in trading today Apple Inc (Symbol: AAPL) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Gilead Sciences Inc (Symbol: GILD) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $249.1 million dollar outflow -- that's a 1.1% decrease week over week (from 471,250,000 to 466,250,000). 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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16823.0
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2023-03-09 00:00:00 UTC
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3 Index Funds to Buy for March
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AAPL
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https://www.nasdaq.com/articles/3-index-funds-to-buy-for-march
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Index funds continue to be solid investments. With index funds, investors can gain broad exposure to the stock market or a particular economic sector or industry. This can help to lessen volatility and risk, and lead to big gains over the long-term. While markets around the world remain volatile, many of them have risen so far in 2023 as certain sectors recover after a bruising 2022. This presents an opportunity for investors to take positions in index funds now in order to ride the recovery as stocks gather steam and their momentum increases. Index funds’ fees can be expensive, so investors should become aware of funds with relatively low fees. Here are three index funds to buy in March.
QQQ Invesco QQQ $290
VOO Vanguard 500 Index Fund $356
VGK Vanguard FTSE Europe ETF $59
Invesco QQQ Trust Series 1 (QQQ)
Source: Shutterstock
The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023. After falling more than 30% in 2022, the Nasdaq has risen 7.4% so far this year as tech stocks stage a comeback. And what better way to ride the recovery of tech than by owning the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) index fund? The “Q” or “Triple Q,” as the exchange-traded fund (ETF) is known, tracks the movements of the Nasdaq 100 index that is comprised of the 100 largest companies listed on the Nasdaq exchange.
In 2023, the QQQ ETF is up 10%, mirroring the gains of the Nasdaq 100. With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more.
The fund, which has been around since the height of the dotcom stock craze in 1999, charges a fee of 0.20%, which is about average for an ETF of its size. For investors who want broad exposure to best-in-class technology stocks, the QQQ is the gold standard.
Vanguard 500 Index Fund (VOO)
Source: PopTika / Shutterstock.com
Another index worth tracking is the S&P 500, which is made up of 503 of the largest publicly traded companies in the U.S. The S&P 500 has small, mid-sized and large-cap stocks. Consequently, it is widely viewed as the benchmark U.S. stock index and serves as a barometer for the health of all American stocks. After falling nearly 20% in 2022, the S&P 500 index has gained 1.4% since the start of January. The Vanguard 500 Index Fund (NYSE:VOO) is an ETF that tracks the S&P 500.
Many analysts recommend buying ETFs that track the S&P 500 index. In fact, VOO is one of the few ETFs that the Oracle of Omaha, Warren Buffett, holds in his own stock portfolio. There are other advantages to owning Vanguard funds, including its affordable fees which are among the lowest in the industry.
The VOO ETF currently charges an expense ratio of only 0.03%, which is about as low as investors are going to find. The fund’s major holdings include Amazon (NASDAQ:AMZN), Berkshire Hathaway (NYSE:BRK.A / NYSE:BRK.B) and UnitedHealth Group (NYSE:UNH).
Vanguard FTSE Europe ETF (VGK)
Source: Shutterstock
Foreign stocks, especially those in Europe, have also outperformed U.S. stocks this year. After badly trailing U.S. equities for more than a decade, European stocks are being bought by investors who are looking abroad for cheaper stocks as U.S. markets continue to gyrate. So far in 2023, the Vanguard FTSE Europe ETF (NYSE:VGK) is up 5%. The expense ratio of the VGK fund is a little higher than my other two picks at 0.11%, but its expense ratio is still lower than most comparable funds.
With the VGK fund, investors get exposure to leading European companies such as Nestle (SWX:NESN), Novartis (SWX:NOVN) and Shell (NYSE:SHEL). It’s an eclectic mix that covers most of the major publicly traded corporations throughout the continent. With European stocks’ performance badly lagging U.S. equities over the last ten years, VGK’s long-term performance doesn’t appear that impressive (VGK is up about 5% in the last decade). However, with European stocks back in vogue, now is the time for investors to ride its recovery.
On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 3 Index Funds to Buy for March 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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With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. With index funds, investors can gain broad exposure to the stock market or a particular economic sector or industry.
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With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. QQQ Invesco QQQ $290 VOO Vanguard 500 Index Fund $356 VGK Vanguard FTSE Europe ETF $59 Invesco QQQ Trust Series 1 (QQQ) Source: Shutterstock The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023.
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With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Index funds continue to be solid investments.
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With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. QQQ Invesco QQQ $290 VOO Vanguard 500 Index Fund $356 VGK Vanguard FTSE Europe ETF $59 Invesco QQQ Trust Series 1 (QQQ) Source: Shutterstock The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023.
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16824.0
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2023-03-09 00:00:00 UTC
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Apple and Foxconn efforts win labour reforms to advance Indian production plans - FT
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AAPL
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https://www.nasdaq.com/articles/apple-and-foxconn-efforts-win-labour-reforms-to-advance-indian-production-plans-ft
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nan
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nan
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adds details from FT report and background
March 9 (Reuters) - Apple AAPL.O and its supplier Foxconn 2317.TW were among the companies that lobbied for a landmark liberalisation of labour laws in the southern Indian state of Karnataka earlier this month, the Financial Times reported, citing three people familiar with the matter.
The legislation led to introduction of laws that now allows 12-hour shifts, as well as night-time work for women, similar to company practices in China, the report said.
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 and also to avoid a big hit to its business from tensions between Beijing and Washington.
The report comes a week after the Karnataka government said that Apple Inc's iPhones would soon be assembled in the state and that a total of 300 acres have been set aside for a factory.
Apple, Foxconn and the Karnataka government did not immediately respond to Reuters' requests for comment.
(Reporting by Akriti Sharma and Kanjyik Ghosh in Bengaluru; Editing by Rashmi Aich)
((Akriti.Sharma@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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adds details from FT report and background March 9 (Reuters) - Apple AAPL.O and its supplier Foxconn 2317.TW were among the companies that lobbied for a landmark liberalisation of labour laws in the southern Indian state of Karnataka earlier this month, the Financial Times reported, citing three people familiar with the matter. The legislation led to introduction of laws that now allows 12-hour shifts, as well as night-time work for women, similar to company practices in China, the report said. The report comes a week after the Karnataka government said that Apple Inc's iPhones would soon be assembled in the state and that a total of 300 acres have been set aside for a factory.
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adds details from FT report and background March 9 (Reuters) - Apple AAPL.O and its supplier Foxconn 2317.TW were among the companies that lobbied for a landmark liberalisation of labour laws in the southern Indian state of Karnataka earlier this month, the Financial Times reported, citing three people familiar with the matter. The report comes a week after the Karnataka government said that Apple Inc's iPhones would soon be assembled in the state and that a total of 300 acres have been set aside for a factory. Apple, Foxconn and the Karnataka government did not immediately respond to Reuters' requests for comment.
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adds details from FT report and background March 9 (Reuters) - Apple AAPL.O and its supplier Foxconn 2317.TW were among the companies that lobbied for a landmark liberalisation of labour laws in the southern Indian state of Karnataka earlier this month, the Financial Times reported, citing three people familiar with the matter. 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 and also to avoid a big hit to its business from tensions between Beijing and Washington. The report comes a week after the Karnataka government said that Apple Inc's iPhones would soon be assembled in the state and that a total of 300 acres have been set aside for a factory.
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adds details from FT report and background March 9 (Reuters) - Apple AAPL.O and its supplier Foxconn 2317.TW were among the companies that lobbied for a landmark liberalisation of labour laws in the southern Indian state of Karnataka earlier this month, the Financial Times reported, citing three people familiar with the matter. The legislation led to introduction of laws that now allows 12-hour shifts, as well as night-time work for women, similar to company practices in China, the report said. 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 and also to avoid a big hit to its business from tensions between Beijing and Washington.
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16825.0
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2023-03-09 00:00:00 UTC
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US STOCKS-Futures slip on rate-hike worries ahead of payrolls data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-on-rate-hike-worries-ahead-of-payrolls-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.19%, S&P 0.37%, Nasdaq 0.68%
March 9 (Reuters) - U.S. stock index futures fell on Thursday as labor market strength and Federal Reserve Chair Jerome Powell's remarks keep investors worried about rate hikes as they await a key jobs report that could determine the Fed's policy path.
With economic data so far suggesting the labor market remains hot despite the Fed's aggressive monetary tightening over the past year, investors are now focused on the February non-farm payrolls report due on Friday.
The reading is expected to show payrolls increased by 205,000 last month, according to economists polled by Reuters, after January's blowout 517,000 figure, which had first led markets to reprice their expectations for U.S. interest rates.
"Our US economists expect a positive surprise to payrolls on Friday," said Citi strategists in a note published late on Wednesday.
"Given that good news is bad news for markets, we think this would likely cause equities to sell-off further and support the case for an outsize Fed hike."
Before the payrolls data, a separate report from the Labor Department due at 8:30 am ET on Thursday is expected to show an uptick in initial claims for state unemployment benefits for the week ended March 4.
Wall Street's main indexes ended mixed on Wednesday, with the benchmark S&P 500 .SPX eking out marginal gains after Powell reaffirmed his message of likely sharper interest rate hikes, but emphasized that the decision hinged on economic data before the central bank's March meeting.
Powell's two-day testimony has led markets, which until recently had been expecting a 25-basis-point rate hike, to dramatically increase their bets for a larger 50 bps increase by the Fed in March, with rates now seen peaking at 5.65% by September. FEDWATCH
Nasdaq futures led declines on Thursday, with shares of Tesla Inc TSLA.O down 3.1% in premarket trade and set to extend its losses from the previous session on news of a probe by the U.S. auto safety regulator.
Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.7% and 0.8%.
At 5:22 a.m. ET, Dow e-minis 1YMcv1 were down 62 points, or 0.19%, S&P 500 e-minis EScv1 were down 14.75 points, or 0.37%, and Nasdaq 100 e-minis NQcv1 were down 83.75 points, or 0.68%.
(Reporting by Amruta Khandekar in Bengaluru, additional reporting by Medha Singh Editing by Vinay Dwivedi)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.7% and 0.8%. With economic data so far suggesting the labor market remains hot despite the Fed's aggressive monetary tightening over the past year, investors are now focused on the February non-farm payrolls report due on Friday. Wall Street's main indexes ended mixed on Wednesday, with the benchmark S&P 500 .SPX eking out marginal gains after Powell reaffirmed his message of likely sharper interest rate hikes, but emphasized that the decision hinged on economic data before the central bank's March meeting.
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Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.7% and 0.8%. Futures down: Dow 0.19%, S&P 0.37%, Nasdaq 0.68% March 9 (Reuters) - U.S. stock index futures fell on Thursday as labor market strength and Federal Reserve Chair Jerome Powell's remarks keep investors worried about rate hikes as they await a key jobs report that could determine the Fed's policy path. With economic data so far suggesting the labor market remains hot despite the Fed's aggressive monetary tightening over the past year, investors are now focused on the February non-farm payrolls report due on Friday.
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Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.7% and 0.8%. Futures down: Dow 0.19%, S&P 0.37%, Nasdaq 0.68% March 9 (Reuters) - U.S. stock index futures fell on Thursday as labor market strength and Federal Reserve Chair Jerome Powell's remarks keep investors worried about rate hikes as they await a key jobs report that could determine the Fed's policy path. The reading is expected to show payrolls increased by 205,000 last month, according to economists polled by Reuters, after January's blowout 517,000 figure, which had first led markets to reprice their expectations for U.S. interest rates.
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Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.7% and 0.8%. Futures down: Dow 0.19%, S&P 0.37%, Nasdaq 0.68% March 9 (Reuters) - U.S. stock index futures fell on Thursday as labor market strength and Federal Reserve Chair Jerome Powell's remarks keep investors worried about rate hikes as they await a key jobs report that could determine the Fed's policy path. The reading is expected to show payrolls increased by 205,000 last month, according to economists polled by Reuters, after January's blowout 517,000 figure, which had first led markets to reprice their expectations for U.S. interest rates.
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16826.0
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2023-03-09 00:00:00 UTC
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AI Revolution on the Horizon: 2 High-Potential Growth Stocks to Watch in 2023
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AAPL
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https://www.nasdaq.com/articles/ai-revolution-on-the-horizon%3A-2-high-potential-growth-stocks-to-watch-in-2023
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nan
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nan
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Artificial intelligence (AI) is all the rage these days, and given how rapidly the field is advancing, it's probably going to keep being the rage for quite some time -- potentially forever, if the evangelists are to be believed!
While it's a bit tough to predict exactly what changes AI tools will bring about in our society, there are already quite a few businesses that are poised to benefit tremendously, and you've probably heard of some of them already.
Let's examine two such companies to see how AI could power their future returns and help them compete.
Image source: Getty Images.
1. 23andMe
Most people know 23andMe (NASDAQ: ME) as a consumer genetics company that lets them see their ancestry and their disease risk, but it's also one of the healthcare stocks that stand to benefit the most from advances in artificial intelligence.
For those who aren't familiar, the company gets people to pay to have their genes sequenced using its order-by-mail test kits, and then it charges them a monthly fee for access to a series of reports describing their genome. As it gets regulatory approval to issue more reports on critical health risks and genetically linked ways of increasing their well-being, such as by consuming certain foods or avoiding others, subscribers get new and personally relevant genetic information before they can find it anywhere else.
23andMe doesn't yet brand itself as being AI-enabled, but it's already using machine learning to trawl its massive data set of 13 million genotyped customers to predict people's chances of developing conditions like asthma and Hashimoto's disease, among many others. That means as AI becomes more embedded in the healthcare sector, it's already equipped with both the data and workflow to turn new insights into new revenue, which should accelerate its growth. Expect 23andMe to start talking about an AI strategy more explicitly this year.
Wall Street analysts are calling for a price target of around $5.68, on average, which implies that its shares could rise as much as 123% in a year. That makes sense given that management recently raised its full-year revenue guidance for 2023 to a range between $290 million to $300 million due to better-than-expected adoption of its consumer subscription service and new income from its telehealth service. That would top 2022's haul of $271.8 million. But even that gain could be small potatoes in the long run if 23andMe can put AI-based solutions to use.
Its existing set of machine-learning approaches to its genetic data set has enabled the company to compete as a drug developer more effectively than many other biotechs, with management claiming faster times from pre-clinical work to clinical trials, compressed overall development times, and fewer failures along the way. If those capabilities remain true beyond the two immuno-oncology programs it's in clinical trials with right now, it could make 23andMe a biopharma powerhouse stock, both in terms of its in-house pipeline as well as its desirability as a collaborator.
And that'll almost certainly make those who invest today quite pleased, even if it takes a few more years for the positive impact of AI tools to show themselves.
2. Apple
Apple (NASDAQ: AAPL) may sound like an improbable leader in the AI space as the company has long had a reputation for being somewhat of a laggard in the field. In fact, its annual report for 2022 doesn't mention artificial intelligence or machine learning even a single time. But as clunky as Siri, its digital user assistant, may be, there's reason to believe that Apple is already going full-bore on AI, just not in ways that users interact with directly.
In April of 2021, it announced plans to build a massive new campus worth $1 billion in North Carolina and invest $430 billion over the following five years. The North Carolina site is slated to employ a minimum of 3,000 people to work on artificial intelligence and machine learning. Expect Apple to become a quiet AI leader over the next few years as a result.
And while Apple hasn't made anything similar to OpenAI's ChatGPT or Microsoft's Bing, it's already commercializing a few AI-enabled features. Early in 2023, it launched several AI-generated narrations for audiobooks, and it's already using machine learning techniques to understand what's going on in photos that users take with their iPhones. And with more than $7.7 billion in research and development (R&D) expenditures in its first fiscal quarter of 2023 alone, it's unlikely that it'll suffer from a poor reputation in AI for much longer.
Finally, in February of this year, Apple CEO Tim Cook said unambiguously that AI would be one of the company's primary focuses moving forward and that AI would likely impact all of its products and services. That means investors should expect it to start stacking even more profits from the new efficiencies and market opportunities in its future, whether it's in its software subscription products or with its phones or computers. Be on the lookout for more major announcements about AI, as they're sure to come.
10 stocks we like better than 23andMe
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 23andMe 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 February 8, 2023
Alex Carchidi has positions in Apple. 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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Apple Apple (NASDAQ: AAPL) may sound like an improbable leader in the AI space as the company has long had a reputation for being somewhat of a laggard in the field. 23andMe Most people know 23andMe (NASDAQ: ME) as a consumer genetics company that lets them see their ancestry and their disease risk, but it's also one of the healthcare stocks that stand to benefit the most from advances in artificial intelligence. For those who aren't familiar, the company gets people to pay to have their genes sequenced using its order-by-mail test kits, and then it charges them a monthly fee for access to a series of reports describing their genome.
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Apple Apple (NASDAQ: AAPL) may sound like an improbable leader in the AI space as the company has long had a reputation for being somewhat of a laggard in the field. 23andMe doesn't yet brand itself as being AI-enabled, but it's already using machine learning to trawl its massive data set of 13 million genotyped customers to predict people's chances of developing conditions like asthma and Hashimoto's disease, among many others. The North Carolina site is slated to employ a minimum of 3,000 people to work on artificial intelligence and machine learning.
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Apple Apple (NASDAQ: AAPL) may sound like an improbable leader in the AI space as the company has long had a reputation for being somewhat of a laggard in the field. Finally, in February of this year, Apple CEO Tim Cook said unambiguously that AI would be one of the company's primary focuses moving forward and that AI would likely impact all of its products and services. 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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Apple Apple (NASDAQ: AAPL) may sound like an improbable leader in the AI space as the company has long had a reputation for being somewhat of a laggard in the field. In April of 2021, it announced plans to build a massive new campus worth $1 billion in North Carolina and invest $430 billion over the following five years. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Alex Carchidi has positions in Apple.
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16827.0
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2023-03-09 00:00:00 UTC
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2 Soaring Stocks I'd Buy Now With No Hesitation
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AAPL
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https://www.nasdaq.com/articles/2-soaring-stocks-id-buy-now-with-no-hesitation-0
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nan
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nan
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Since the start of 2023, multiple stocks across various industries have been on the rise. After a sell-off last year, signs of a recovery are encouraging for the market's future. As a result, now is an excellent time to consider investing in solid companies before their stock rises become missed opportunities.
Apple (NASDAQ: AAPL) and Warner Bros. Discovery (NASDAQ: WBD) are vastly different companies, with one of their few commonalities being their competing positions in the streaming market. Despite their differences, these companies' stocks have been on an upward trend since Jan. 1, with both compelling buys thanks to their long-term outlooks.
Here's why Apple and Warner Bros. Discovery are two soaring stocks I'd buy with no hesitation.
1. Apple
Apple's stock has climbed around 17% year to date. While that number might not sound like a soar, it's consistent with the company's strength as a robust, long-term growth stock.
Apple shares have soared 244% over the last five years and 899% over the last decade. The stellar growth can primarily be attributed to the immense popularity of its products and services, which have developed nearly unparalleled brand loyalty.
The fourth quarter of 2022 saw Apple achieve its highest-ever market share in smartphones at 24.1%, outperforming Samsung's 19.4%. Meanwhile, according to Market Data Forecast, the smartphone market was valued at $378.29 billion in 2020 and is projected to expand at a compound annual growth rate of 6.85% through 2027 and hit $493.13 billion by 2026.
The figures closely align with Apple's yearly iPhone revenue growth, as the segment increased by 7% year over year to $205.4 billion in fiscal 2022. As a result, the company's leading market share will likely see it significantly profit from the market's long-term growth.
In addition to iPhones, Apple has a lucrative, steadily growing services business. The company's subscription-based services include Apple TV+, Music, Fitness+, News+, Arcade, and iCloud. In 2022, the segment reported revenue growth double the iPhone at 14% year over year, reaching $78.1 billion. The digital business also offers attractive profit margins, with services at 71.1% last year, while products' profit margins came in at 36.3%.
Apple's stock has soared over the long term, offering investors consistent, reliable gains and making it a no-brainer investment.
2. Warner Bros. Discovery
WarnerMedia has gone by many names over the years, known originally as Time Warner when it was founded in 1990. From 2001 to 2003, the company was a subsidiary of AOL and then was more recently owned by AT&T from 2018 to 2021. However, on April 8, 2022, it spun off from the telecom company and merged with Discovery to become Warner Bros. Discovery.
The expensive merger led the new company to assume $43 billion in debt, which was followed by a mountain of restructuring costs. The massive debt and controversial moves, such as significant slashes to content, led Warner Bros. Discovery's stock to plunge 62% throughout 2022.
However, the company has taken significant strides toward recovery in 2023, with its stock up about 56% year to date. The entertainment giant rallied investors by announcing its restructuring moves are largely complete and that this year will be one of growth and rebuilding. The company has already begun to make good on that promise by revealing its multiyear slate of DC-themed films and series in the works as it relaunches the brand with a focus on quality.
Then, on Feb. 10, Warner Bros. Discovery struck gold in video games with the launch of Harry Potter-themed Hogwarts Legacy, a new title released on consoles and personal computers. The game earned $850 million and sold more than 12 million units in its first two weeks, on its way to becoming one of the best-selling games in history. The achievement will likely provide the company a substantial boost to earnings in its current quarter.
Moreover, despite Warner Bros. Discovery's recent rise in stock price, its price-to-earnings ratio of 7.23 proves its shares still offer immense value. Alongside a 12-month price target of $21.80, which is 44.6% higher than its current price, Warner Bros. Discovery's stock is one I would buy with no hesitation.
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 February 8, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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) and Warner Bros. Apple's stock has soared over the long term, offering investors consistent, reliable gains and making it a no-brainer investment. The company has already begun to make good on that promise by revealing its multiyear slate of DC-themed films and series in the works as it relaunches the brand with a focus on quality.
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Apple (NASDAQ: AAPL) and Warner Bros. The figures closely align with Apple's yearly iPhone revenue growth, as the segment increased by 7% year over year to $205.4 billion in fiscal 2022. The digital business also offers attractive profit margins, with services at 71.1% last year, while products' profit margins came in at 36.3%.
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Apple (NASDAQ: AAPL) and Warner Bros. Apple Apple's stock has climbed around 17% year to date. The figures closely align with Apple's yearly iPhone revenue growth, as the segment increased by 7% year over year to $205.4 billion in fiscal 2022.
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Apple (NASDAQ: AAPL) and Warner Bros. As a result, the company's leading market share will likely see it significantly profit from the market's long-term growth. Discovery's recent rise in stock price, its price-to-earnings ratio of 7.23 proves its shares still offer immense value.
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16828.0
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2023-03-09 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
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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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16829.0
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2023-03-09 00:00:00 UTC
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How Dependent Is Apple on iPhone Sales? 1 Chart You Need to See
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AAPL
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https://www.nasdaq.com/articles/how-dependent-is-apple-on-iphone-sales-1-chart-you-need-to-see
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nan
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nan
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Although Apple's (NASDAQ: AAPL) business started in the personal computing market, that is no longer its driving force. Instead, iPhones have become the company's dominant product line, although its other offerings are still valuable.
However, investors also must realize that because the tech titan is highly concentrated in one product line, it could be a risk. So let's look at the iPhone's importance to Apple and see what that means for the stock.
iPhones didn't have a great holiday season, but there's a catch
In Apple's first quarter of fiscal 2023 (ended Dec. 31, 2022), iPhone sales made up 56% of the company's $117 billion in total revenue. The rest of the segments are somewhat spread out in terms of revenue contribution mix.
Image source: The Motley Fool.
With Apple's overall revenue falling 5.5% in Q1 (highlighted by iPhone's 8.2% decline), investors might wonder if it's time to reconsider owning shares, especially since the company's No. 1 product seemingly struggled. However, jumping to conclusions about this performance is a mistake.
iPhones saw a reduction in sales despite Apple launching its new iPhone 14 lineup, which could be a huge red flag. However, supply chain constraints prevented the company from keeping ample inventory levels of the new phone during the holiday season, causing lost sales. But just because Apple didn't have phones to sell in those two months doesn't mean those sales are lost forever. So when the company reports its Q2 results sometime in late April or early May, don't be surprised to see growth in this category due to the demand hangover.
While the other categories don't matter nearly as much to Apple's business, they aren't to be forgotten. The 10th-generation iPad was launched during Q1 and saw strong demand, with nearly 30% revenue growth. The Mac lineup offset it, thanks to a weak PC market.
One segment that can take the load off of the iPhone's shoulders is services. Services include the App Store, payment services, advertising, and a few others, but not Apple TV (which is captured in its wearables, home and accessories segment).
As Apple rolls out various products to ensure its customers utilize its ecosystem for nearly every facet of their lives, this segment should continue to grow. Furthermore, it's less dependent on the strength of the consumer, as many of these products are subscription based. .
With iPhone still being the top dog within the company, is there anything investors need to worry about?
Apple's stock presents more of a risk than its products
If you've bought a smartphone lately, it's evident that performance gains are becoming less impressive with each generation. Still, these products can demand a premium price, which defies the usual trend of technology costs.
Think of the price of a TV. It wasn't uncommon to pay several thousand dollars for an average flat-screen TV a few years ago. Now, you can purchase one for a couple of hundred dollars. This could be a significant risk if smartphones see a similar adoption curve because Apple may lose pricing power.
One key factor for iPhones is the brand power Apple has built. This manifests in multiple ways: Green text messages from non-iPhone users, iPhones being status symbols, and how the company doesn't allow bad guys in media to use its products. It's unlikely anything will happen to its brand, but it is another consideration as a risk should something go wrong.
I don't think either presents much risk to Apple, but its stock valuation might.
AAPL PE Ratio data by YCharts
At 25 times earnings, Apple is valued at a premium. Couple that with its shrinking revenue, and it is a high price to pay for the shares. If you're looking to take a position in Apple's stock, you may want to wait to see how iPhone demand shakes out in Q2, because if the delayed sales don't come through, the shares could face some pressure.
However, Apple remains one of the best-managed tech giants, and its industry dominance paints a bright future picture. So while it may not be the most opportune time to get into the stock, investors shouldn't lose track of this one.
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 February 8, 2023
Keithen Drury 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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Although Apple's (NASDAQ: AAPL) business started in the personal computing market, that is no longer its driving force. AAPL PE Ratio data by YCharts At 25 times earnings, Apple is valued at a premium. However, supply chain constraints prevented the company from keeping ample inventory levels of the new phone during the holiday season, causing lost sales.
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Although Apple's (NASDAQ: AAPL) business started in the personal computing market, that is no longer its driving force. AAPL PE Ratio data by YCharts At 25 times earnings, Apple is valued at a premium. This could be a significant risk if smartphones see a similar adoption curve because Apple may lose pricing power.
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Although Apple's (NASDAQ: AAPL) business started in the personal computing market, that is no longer its driving force. AAPL PE Ratio data by YCharts At 25 times earnings, Apple is valued at a premium. iPhones didn't have a great holiday season, but there's a catch In Apple's first quarter of fiscal 2023 (ended Dec. 31, 2022), iPhone sales made up 56% of the company's $117 billion in total revenue.
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Although Apple's (NASDAQ: AAPL) business started in the personal computing market, that is no longer its driving force. AAPL PE Ratio data by YCharts At 25 times earnings, Apple is valued at a premium. Instead, iPhones have become the company's dominant product line, although its other offerings are still valuable.
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16830.0
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2023-03-09 00:00:00 UTC
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Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-5
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nan
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nan
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The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $1.66 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.57%.
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 30.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.42% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 29.25% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has gained about 4.43% so far this year and is down about -4.11% in the last one year (as of 03/09/2023). In the past 52-week period, it has traded between $65.88 and $86.68.
The ETF has a beta of 1.03 and standard deviation of 19.95% for the trailing three-year period. With about 215 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $298.73 billion in assets, SPDR S&P 500 ETF has $359.57 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.42% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.66 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.42% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.42% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.42% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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16831.0
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2023-03-09 00:00:00 UTC
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Where Will Apple Stock Be in 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-1-year-0
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nan
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nan
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Personal electronics giant Apple (NASDAQ: AAPL) has been a household name since unveiling the first iPhone in 2007. Since then, most investors have done well buying and holding Apple stock. It's outperformed the market, turning a $10,000 investment into more than $590,000. Not bad for just over 16 years!
But Apple is the world's largest publicly traded company today, with a market value of $2.4 trillion. That's roughly 10% of the entire U.S. economy. Apple's size means that investors must be more careful in choosing their entry points.
Investors thinking about buying Apple stock in this volatile market should think twice. The stock might not behave like the market-beater most have come to know it as. Here is why.
The 5G hangover
Apple generates revenue from selling a variety of electronics and service subscriptions, but the iPhone remains its golden goose. It contributes between 50% and 60% of Apple's total revenue in a given quarter. You can see below how the company is coming off a two-year growth spurt that saw annual sales jump roughly $100 billion.
The first iPhone to run on 5G networks was unveiled at the end of 2020, and growth soared as people upgraded their phones over the following two years (many phone payment plans span about two years). However, Apple's on the other side of that surge, and lapping that success creates tough comparables. Additionally, Wall Street is openly worried about a potential recession, which could keep consumers from rushing to upgrade a device that costs hundreds of dollars.
AAPL Revenue Growth Estimate for Current Fiscal Year data by YCharts
You can see in the chart above that analysts have dramatically reigned in growth expectations for 2023, expecting revenue to come in flat or slightly negative this year. This could trickle down to the bottom line, putting pressure on Apple's massive share repurchases to drive earnings growth.
Expectations could be too high
A common way to value stocks of mature companies like Apple is the price-to-earnings ratio (P/E), which illustrates how much the market is paying for a share of the company's profits. Investors might pay more for a company's earnings for several reasons. Perhaps they believe a company will earn more down the road, or they feel it's dependable and will produce when the economy gets shaky.
Apple could check both boxes -- not only does it have a tremendous success story behind it, but analysts believe its earnings per share (EPS) will grow by an average of 12% annually for the next several years.
AAPL PE Ratio data by YCharts
But markets can get carried away, pushing valuations higher or lower than a company's fundamentals can justify. In Apple's case, the stock's valuation has risen since the pandemic. While the P/E isn't as high as in 2021, the current P/E of almost 26 is still more than 30% higher than Apple's average over the past 10 years. The critical question is whether Apple can justify this higher valuation.
Where will Apple be in one year?
With a year of potentially stagnant growth on tap, the stock could have difficulty holding its current valuation. If revenue and earnings don't grow, any increase in the share price would directly impact Apple's valuation. Will the market push the stock even higher past its average valuation if the company isn't growing? It's pretty hard to imagine that happening.
Instead, the stock could trade sideways or decline until the valuation falls more in line with its long-term average. Many stocks have reverted to pre-pandemic valuations, but Apple still hasn't.
Where will Apple be in one year? I can't tell you with certainty, but since trading higher than today's price could be the least likely outcome, the smart move could be staying away from shares until the valuation makes more sense.
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Justin Pope 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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Personal electronics giant Apple (NASDAQ: AAPL) has been a household name since unveiling the first iPhone in 2007. AAPL Revenue Growth Estimate for Current Fiscal Year data by YCharts You can see in the chart above that analysts have dramatically reigned in growth expectations for 2023, expecting revenue to come in flat or slightly negative this year. AAPL PE Ratio data by YCharts But markets can get carried away, pushing valuations higher or lower than a company's fundamentals can justify.
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AAPL Revenue Growth Estimate for Current Fiscal Year data by YCharts You can see in the chart above that analysts have dramatically reigned in growth expectations for 2023, expecting revenue to come in flat or slightly negative this year. Personal electronics giant Apple (NASDAQ: AAPL) has been a household name since unveiling the first iPhone in 2007. AAPL PE Ratio data by YCharts But markets can get carried away, pushing valuations higher or lower than a company's fundamentals can justify.
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Personal electronics giant Apple (NASDAQ: AAPL) has been a household name since unveiling the first iPhone in 2007. AAPL Revenue Growth Estimate for Current Fiscal Year data by YCharts You can see in the chart above that analysts have dramatically reigned in growth expectations for 2023, expecting revenue to come in flat or slightly negative this year. AAPL PE Ratio data by YCharts But markets can get carried away, pushing valuations higher or lower than a company's fundamentals can justify.
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AAPL Revenue Growth Estimate for Current Fiscal Year data by YCharts You can see in the chart above that analysts have dramatically reigned in growth expectations for 2023, expecting revenue to come in flat or slightly negative this year. Personal electronics giant Apple (NASDAQ: AAPL) has been a household name since unveiling the first iPhone in 2007. AAPL PE Ratio data by YCharts But markets can get carried away, pushing valuations higher or lower than a company's fundamentals can justify.
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16832.0
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2023-03-09 00:00:00 UTC
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Fossil Group: Should You Bet On Consumer Discretionary In 2023?
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AAPL
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https://www.nasdaq.com/articles/fossil-group%3A-should-you-bet-on-consumer-discretionary-in-2023
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nan
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nan
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The outlook for 2023 and 2024 earnings may lead you to believe that discretionary stocks (NYSEARCA: XLY) like Fossil Group (NASDAQ: FOSL) would be a good bet in 2023, but they aren’t; yet. The outlook for 2023 is for earnings to decline in the discretionary sector by more than 21.2% and the consensus figure reported by Factset is falling.
The opportunity, dubious as it is, is an expected rebound in 2024 that would put the discretionary sector at the top of the S&P 500 but there is risk in this outlook. The consumer discretionary sector is expected to be #1 regarding earnings growth in 2024 but is also #1 regarding earnings revisions, which are moving lower. This scenario has an opportunity, but it won’t come until much later in the year; even then, it depends on the outlook.
Merchants like Target (NYSE: TGT) and Walmart (NYSE: WMT), which both list Fossil products on their websites, have indicated a shift in inventory management that can be seen in Fossil’s Q4 results. That shift is driven by an over-inventoried environment and consumer habits, which move away from discretionary items to focus on daily items. These trends will likely continue, given the Fed’s latest stance on inflation and interest rates.
From Target’s Q4 2022 earnings press release … “Inventory at the end of the quarter was 3 percent lower than in 2021, despite an increase in early receipts compared with last year. Inventory in discretionary categories was approximately 13 percent lower than a year ago, partially offset by higher inventory in frequency categories.”
Fossil Group Sinks On Weak Results, Guidance
Fossil Group grew revenue sequentially in Q4, but that is about the best that can be said. The company reported $499.1 million in revenue, a decline of 17.4% versus last year, and the guidance is not good. Q4 sales were impacted by the wholesale segment's decline in all regions. DTC sales, a revenue stream that more fashion/apparel makers are leaning into, grew by 8% and are accelerating but offset by a 24% decline in wholesales that is also accelerating.
Interestingly, traditional watch sales fell by 15% on a traditional versus smart-watch basis while smartwatch sales fell a more substantial 32%, suggesting weakness for manufacturers like Apple (NYSE: AAPL) and Samsung (OTCMKTS: SSNLF).
“The year came to a challenging close – against the backdrop of a retail landscape marked by elevated wholesale inventories and increased promotional activity, strength in our direct-to-consumer business was more than offset by soft topline trends in our wholesale channel globally,” said Kosta Kartsotis, Chairman and CEO.
The earnings news is even worse. The company logged the 3rd straight quarterly loss, and there is little reason to think that will change by the end of the calendar or fiscal year. The guidance calls for another mid-single-digit decline in net sales and operating margins in the low-single-digit range, which doesn’t leave much capital for other expenses like debt. Fossil Group has little debt, but some need to be serviced. The company has plenty of cash, but operating in this manner (cash is down 20% YOY), that balance won’t last long.
The Technical Outlook: Fossil Group, Inc Nears Bottom
The price action in Fossil Group shares is not promising, but it is approaching what could be the bottom. That level is near the pandemic lows set in 2020, which have been tested once before. If the market can hold up at this level, it may move sideways until the end of the year. If the wholesale situation works out and the outlook for earnings improves for the stock or the sector, FOSL can move higher. Until then, there is a risk the market will fall through support and head back down to the long-term lows near $2.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interestingly, traditional watch sales fell by 15% on a traditional versus smart-watch basis while smartwatch sales fell a more substantial 32%, suggesting weakness for manufacturers like Apple (NYSE: AAPL) and Samsung (OTCMKTS: SSNLF). The outlook for 2023 and 2024 earnings may lead you to believe that discretionary stocks (NYSEARCA: XLY) like Fossil Group (NASDAQ: FOSL) would be a good bet in 2023, but they aren’t; yet. From Target’s Q4 2022 earnings press release … “Inventory at the end of the quarter was 3 percent lower than in 2021, despite an increase in early receipts compared with last year.
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Interestingly, traditional watch sales fell by 15% on a traditional versus smart-watch basis while smartwatch sales fell a more substantial 32%, suggesting weakness for manufacturers like Apple (NYSE: AAPL) and Samsung (OTCMKTS: SSNLF). The outlook for 2023 and 2024 earnings may lead you to believe that discretionary stocks (NYSEARCA: XLY) like Fossil Group (NASDAQ: FOSL) would be a good bet in 2023, but they aren’t; yet. Inventory in discretionary categories was approximately 13 percent lower than a year ago, partially offset by higher inventory in frequency categories.” Fossil Group Sinks On Weak Results, Guidance Fossil Group grew revenue sequentially in Q4, but that is about the best that can be said.
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Interestingly, traditional watch sales fell by 15% on a traditional versus smart-watch basis while smartwatch sales fell a more substantial 32%, suggesting weakness for manufacturers like Apple (NYSE: AAPL) and Samsung (OTCMKTS: SSNLF). The outlook for 2023 and 2024 earnings may lead you to believe that discretionary stocks (NYSEARCA: XLY) like Fossil Group (NASDAQ: FOSL) would be a good bet in 2023, but they aren’t; yet. The consumer discretionary sector is expected to be #1 regarding earnings growth in 2024 but is also #1 regarding earnings revisions, which are moving lower.
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Interestingly, traditional watch sales fell by 15% on a traditional versus smart-watch basis while smartwatch sales fell a more substantial 32%, suggesting weakness for manufacturers like Apple (NYSE: AAPL) and Samsung (OTCMKTS: SSNLF). The outlook for 2023 and 2024 earnings may lead you to believe that discretionary stocks (NYSEARCA: XLY) like Fossil Group (NASDAQ: FOSL) would be a good bet in 2023, but they aren’t; yet. The consumer discretionary sector is expected to be #1 regarding earnings growth in 2024 but is also #1 regarding earnings revisions, which are moving lower.
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16833.0
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2023-03-09 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-6
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nan
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nan
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The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $28.51 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. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. 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
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 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.85%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 37.30% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.29% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 35.52% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has added roughly 4.67% so far this year and is down about -9.93% in the last one year (as of 03/09/2023). In the past 52-week period, it has traded between $56.73 and $78.48.
The ETF has a beta of 1.05 and standard deviation of 27.82% for the trailing three-year period, making it a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IVW is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $76.44 billion in assets, Invesco QQQ has $158.72 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.29% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $28.51 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.29% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.29% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.29% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
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16834.0
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2023-03-08 00:00:00 UTC
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Stock Market News for Mar 8, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-8-2023
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nan
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nan
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U.S. stocks closed sharply lower on Tuesday as investors digested Fed Chair Jerome Powell’s hawkish comments that the central bank may need to continue with its steep rate hikes for a longer period than expected in order to control soaring inflation. Powell’s message ignited fears of a larger interest rate hike in the Fed’s next policy meeting. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) plummeted 1.7% or 574.98 points to close at 32,856.46 points.
The S&P 500 fell 1.5% or 62.05 points to finish at 3,986.37 points. Financial and real estate stocks were the worst performers.
The Financials Select Sector SPDR (XLF) lost 2.6%, while the Real Estate Select Sector SPDR (XLRE) declined 2.5%. The Materials Select Sector SPDR (XLB) lost 2%. All 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slid 1.3% or 145 points to end at 11,530.33 points.
The fear-gauge CBOE Volatility Index (VIX) was up 5.44% to 19.66. Decliners outnumbered advancers on the NYSE by a 4.00-to-1 ratio. On Nasdaq, a 2.21-to-1 ratio favored declining issues. A total of 11.17 billion shares were traded on Tuesday, higher than the last 20-session average of 10.98 billion.
Powell’s Message Raises Worries
Trading had been volatile through last week and Monday saw stocks managing to end slightly higher as investors eagerly waited for Fed Chair Jerome Powell’s congressional testimony. Stocks straightaway took a hit on Tuesday as Powell’s hawkish message dented investors’ confidence.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said in remarks to the Senate Banking committee.
Powell’s message gave a clear hint at a steeper rate hike in the central bank’s next policy meeting as the struggle to bring down inflation continues. The Fed increased interest rates by a small 25 basis points in February after hiking rates by 50 basis points in February and four straight 75 basis point hikes prior to that.
The 25-basis points rate hike in February had raised hopes that the Fed may have started going slow on its tight monetary policy and could even halt hiking rates in the coming months. However, robust economic data released in February showed that inflation has been climbing once again.
Powell’s message on Tuesday further suggested the Fed will go for a steeper rate hike in its next policy meeting. Concerns are now growing that the central bank could now raise interest rates by another 50 basis points in its next meeting.
These fears dented investors’ confidence taking a toll on stocks. Tuesday’s massive selloff has now pushed the Dow into negative territory for the year. The blue-chip index is now trading down 0.9% this year. However, the S&P 500 and Nasdaq are up 3.8% and 10.2%, respectively.
As the major indexes took a hit, the 2-year Treasury yield soared to 5%, its highest level since 2007. Tech stocks felt the heat most with shares of Alphabet Inc. GOOGL declining 1.3%. Also, Apple Inc. AAPL fell 1.5%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
However, financial stocks were the biggest sufferers. Bank of America Corporation BAC lost 3.2%, while Citigroup Inc. C gave up 2.1%.
Economic Data
Wholesale inventories declined 0.4% to $929 billion in January, its first decrease since mid-2020.
In other economic data released on Tuesday, consumer credit for January increased at a seasonally adjusted annual rate of 3.7%.
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
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Apple Inc. AAPL fell 1.5%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed sharply lower on Tuesday as investors digested Fed Chair Jerome Powell’s hawkish comments that the central bank may need to continue with its steep rate hikes for a longer period than expected in order to control soaring inflation.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, Apple Inc. AAPL fell 1.5%. The Financials Select Sector SPDR (XLF) lost 2.6%, while the Real Estate Select Sector SPDR (XLRE) declined 2.5%.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, Apple Inc. AAPL fell 1.5%. U.S. stocks closed sharply lower on Tuesday as investors digested Fed Chair Jerome Powell’s hawkish comments that the central bank may need to continue with its steep rate hikes for a longer period than expected in order to control soaring inflation.
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Also, Apple Inc. AAPL fell 1.5%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Powell’s message ignited fears of a larger interest rate hike in the Fed’s next policy meeting.
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2023-03-08 00:00:00 UTC
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Apple to shake up international businesses' management to focus on India - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-to-shake-up-international-businesses-management-to-focus-on-india-bloomberg-news
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March 8 (Reuters) - Apple Inc AAPL.O is reshuffling management of its international businesses to put a bigger focus on India, Bloomberg News reported on Wednesday citing people with knowledge of the matter.
This shift will result in India becoming its own sales region at Apple, the report said.
The iPhone maker, in a recentearnings call said India had a record quarterly revenue and strong double-digit growth year-over-year.
Apple is promoting its head of India Ashish Chowdhary to replace the recently retired Hugues Asseman, who was in charge of India, the Middle East, Mediterranean, East Europe and Africa, according to the report.
Chowdhary will now report directly to Michael Fenger, Apple's head of product sales, the report added.
Apple did not immediately respond to a Reuters request for comment on the report.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra Eluri)
((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 8 (Reuters) - Apple Inc AAPL.O is reshuffling management of its international businesses to put a bigger focus on India, Bloomberg News reported on Wednesday citing people with knowledge of the matter. The iPhone maker, in a recentearnings call said India had a record quarterly revenue and strong double-digit growth year-over-year. Apple is promoting its head of India Ashish Chowdhary to replace the recently retired Hugues Asseman, who was in charge of India, the Middle East, Mediterranean, East Europe and Africa, according to the report.
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March 8 (Reuters) - Apple Inc AAPL.O is reshuffling management of its international businesses to put a bigger focus on India, Bloomberg News reported on Wednesday citing people with knowledge of the matter. Apple is promoting its head of India Ashish Chowdhary to replace the recently retired Hugues Asseman, who was in charge of India, the Middle East, Mediterranean, East Europe and Africa, according to the report. Chowdhary will now report directly to Michael Fenger, Apple's head of product sales, the report added.
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March 8 (Reuters) - Apple Inc AAPL.O is reshuffling management of its international businesses to put a bigger focus on India, Bloomberg News reported on Wednesday citing people with knowledge of the matter. Apple is promoting its head of India Ashish Chowdhary to replace the recently retired Hugues Asseman, who was in charge of India, the Middle East, Mediterranean, East Europe and Africa, according to the report. Chowdhary will now report directly to Michael Fenger, Apple's head of product sales, the report added.
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March 8 (Reuters) - Apple Inc AAPL.O is reshuffling management of its international businesses to put a bigger focus on India, Bloomberg News reported on Wednesday citing people with knowledge of the matter. This shift will result in India becoming its own sales region at Apple, the report said. The iPhone maker, in a recentearnings call said India had a record quarterly revenue and strong double-digit growth year-over-year.
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2023-03-08 00:00:00 UTC
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Startup from ex-Apple team raises $100 million, works with OpenAI
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AAPL
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https://www.nasdaq.com/articles/startup-from-ex-apple-team-raises-%24100-million-works-with-openai
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By Stephen Nellis
March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring.
The company, founded in 2018 by Imran Chaudhri and Bethany Bongiorno, has now raised $241 million but has yet to disclose what it is building, saying only that it is a "software platform and consumer device built from the ground up for artificial intelligence."
A video posted by the company and patent filings suggest that a wearable device will project information onto the real world and allow users to manipulate that information with their hands.
Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device.
Sam Altman, OpenAI's founder and a previous Humane investor, participated in funding round on Wednesday, the company said.
Humane also said that Microsoft Corp MSFT.O, which has built a massive cloud computing infrastructure specifically for AI, took part in the funding round.
Humane said it will partner with Microsoft's cloud to bring Humane's software services platform to market.
"Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement.
Humane also said that it is working with Korean electronics giant LG Electronics Inc 066570.KS "on potential (research and development) projects for the next phase of Humane products" and with Volvo Car's VOLCARb.ST Tech Fund on "a potential future collaboration which would be the first example of Humane’s offering being applied to the automotive industry."
(Reporting by Stephen Nellis in San Francisco Editing by Marguerita Choy)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. The company, founded in 2018 by Imran Chaudhri and Bethany Bongiorno, has now raised $241 million but has yet to disclose what it is building, saying only that it is a "software platform and consumer device built from the ground up for artificial intelligence." "Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement.
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By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device. Humane said it will partner with Microsoft's cloud to bring Humane's software services platform to market.
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By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device. "Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement.
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By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Sam Altman, OpenAI's founder and a previous Humane investor, participated in funding round on Wednesday, the company said. Humane also said that Microsoft Corp MSFT.O, which has built a massive cloud computing infrastructure specifically for AI, took part in the funding round.
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2023-03-08 00:00:00 UTC
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Should Schwab U.S. Large-Cap ETF (SCHX) 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-etf-schx-be-on-your-investing-radar
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The Schwab U.S. Large-Cap ETF (SCHX) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $30.65 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.57%.
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 28% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.69% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 22.68% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has gained about 4.56% so far this year and is down about -3.86% in the last one year (as of 03/08/2023). In the past 52-week period, it has traded between $42.25 and $55.09.
The ETF has a beta of 1.01 and standard deviation of 25.08% for the trailing three-year period, making it a medium risk choice in the space. With about 760 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap 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, SCHX is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $298.16 billion in assets, SPDR S&P 500 ETF has $354.66 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.69% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Schwab U.S. Large-Cap ETF (SCHX) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.69% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The Schwab U.S. Large-Cap ETF (SCHX) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.69% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap 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 5.69% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Schwab U.S. Large-Cap ETF (SCHX) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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2023-03-08 00:00:00 UTC
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Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-broad-market-index-etf-fndb-a-strong-etf-right-now-6
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDB has amassed assets over $486.07 million, making it one of the larger ETFs in the Style Box - All Cap Value. FNDB, before fees and expenses, seeks to match the performance of the Russell RAFI US Index.
The Russell RAFI US Index measures the performance of the constituent companies by fundamental overall company scores.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.25%, making it one of the cheaper products in the space.
FNDB's 12-month trailing dividend yield is 1.92%.
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.
For FNDB, it has heaviest allocation in the Information Technology sector --about 16.80% of the portfolio --while Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.28% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
The top 10 holdings account for about 15.32% of total assets under management.
Performance and Risk
The ETF has gained about 3.21% so far this year and was up about 0.68% in the last one year (as of 03/08/2023). In the past 52-week period, it has traded between $47.13 and $58.86.
FNDB has a beta of 1.02 and standard deviation of 24.77% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1698 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Broad Market Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.10 billion in assets, iShares Core S&P U.S. Value ETF has $13.04 billion. DFAT has an expense ratio of 0.29% and IUSV 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 - All 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
Schwab Fundamental U.S. Broad Market Index ETF (FNDB): 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
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): 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 3.28% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): 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 iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.28% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): 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 iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): 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 iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.28% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.28% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): 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 iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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2023-03-08 00:00:00 UTC
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Nasdaq Bear Market: 2 Remarkable Growth Stocks Down 75% and 86% to Buy in March and Hold Forever
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-remarkable-growth-stocks-down-75-and-86-to-buy-in-march-and-hold
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High inflation and rising interest rates pulled the Nasdaq Composite into a bear market last year, and the technology-heavy index is still 27% off its high. That drawdown wiped away trillions of dollars in wealth, but it has also created a buying opportunity for patient investors. To quote Warren Buffett, "The best chance to deploy capital is when things are going down."
With that in mind, shares of Roku (NASDAQ: ROKU) and PayPal Holdings (NASDAQ: PYPL) are down 86% and 75%, respectively, but the future still looks bright for both businesses. Here's why these growth stocks are worth buying today.
Roku: A leader in streaming entertainment
Roku reported disappointing financial results last year. Revenue increased just 13% to $3.1 billion and cash flow from operating activities dropped 95% to $11.8 million. But that dismal performance can be traced back to temporary economic headwinds. Specifically, many brands reduced their ad budgets to compensate for the decline in consumer spending brought on by high inflation. That situation should resolve itself in time, though, and Roku is well positioned to reaccelerate growth when that happens.
The company is following in the footsteps of Alphabet. Much like Google Search is the onramp to the internet, Roku is becoming the gateway to streaming entertainment. Its superior operating system and reputation for affordability have won favor with consumers. In fact, Roku is the most popular streaming platform in the U.S., Canada, and Mexico as measured by hours streamed, and it ranked as the fastest-growing brand (in any product category) among Gen Z and millennial consumers last year.
Streaming still accounts for a relatively small portion of television viewing time, but Roku is perfectly positioned to benefit as more consumers cut ties with cable and satellite. To quote company president Charlie Collier: "Roku is not just another player in the streaming wars, but the streaming wars are actually being fought on the Roku platform, and that is a tremendous advantage."
Indeed, online video ad spend is expected to increase at 14% annually to reach $362 billion by 2027, and Roku is perfectly positioned to benefit. But the company also generates transaction-based revenue when viewers purchase content through its platform, and it recently partnered with Walmart and DoorDash to bring shoppable ads to its platform. Roku also launched new smart home devices in the fourth quarter, including cameras and video doorbells, and it plans to monetize those products with services like cloud storage and AI-based alerts.
In a nutshell, Roku is already well positioned to benefit as brands spend a larger portion of their ad budgets on streaming video, but the company is also experimenting with adjacent revenue streams that extend its market opportunity. In that context, shares look relatively cheap at their current valuation of 2.8 times sales. That's why this growth stock is worth buying.
PayPal: A leader in digital payments
PayPal faced significant economic headwinds last year, but management reacted quickly by cutting costs and refocusing investments on its digital wallets and checkout solutions, two areas where the company benefits from a strong competitive position. Those efforts have already produced tangible results. While revenue increased just 7% to $7.4 billion in the fourth quarter, PayPal managed to cut $900 million in expenses throughout the year, which resulted in non-GAAP earnings growth of 11% in the fourth quarter, up from negative 28% in the first quarter.
This year looks even better. PayPal plans to cut an additional $1.6 billion in expenses, and management is forecasting non-GAAP earnings growth of 18% in 2023. Of course, consumer spending will likely remain muted until inflation cools, meaning investors should expect weak revenue growth in the coming quarters. But PayPal is well-positioned to reaccelerate its top-line momentum in a more favorable economic environment.
The long-term investment thesis is straightforward: Digital payments are replacing cash transactions both online and offline, driven by the growing popularity of e-commerce and mobile wallets, and PayPal is perfectly positioned to benefit from those trends. It is the most accepted digital wallet in North America and Europe, and it was the second-most-downloaded finance app worldwide last year. According to Statista, PayPal is also the leader in online payment processing, with 42% market share.
Additionally, PayPal recently partnered with Apple to bring the iPhone maker's Tap to Pay technology to PayPal and Venmo iOS apps. That partnership will evolve this year, as U.S. consumers will soon be able to add PayPal- and Venmo-branded credit and debit cards to their Apple Wallets and use them anywhere Apple Pay is accepted. Those new features are especially noteworthy because Apple Pay is the most popular in-store mobile wallet among U.S. consumers, meaning the partnership positions PayPal to strengthen its position in physical retail.
Management estimates its addressable market at $110 trillion, but PayPal processed just $1.4 trillion last year, indicating the company has captured just 1.2% of its market opportunity. The stock currently trades at 3.2 times sales, near its cheapest valuation in the last five years. That creates a compelling buying opportunity for investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in PayPal and Roku. The Motley Fool has positions in and recommends Alphabet, Apple, DoorDash, PayPal, Roku, and Walmart. 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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Streaming still accounts for a relatively small portion of television viewing time, but Roku is perfectly positioned to benefit as more consumers cut ties with cable and satellite. Roku also launched new smart home devices in the fourth quarter, including cameras and video doorbells, and it plans to monetize those products with services like cloud storage and AI-based alerts. The long-term investment thesis is straightforward: Digital payments are replacing cash transactions both online and offline, driven by the growing popularity of e-commerce and mobile wallets, and PayPal is perfectly positioned to benefit from those trends.
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PayPal: A leader in digital payments PayPal faced significant economic headwinds last year, but management reacted quickly by cutting costs and refocusing investments on its digital wallets and checkout solutions, two areas where the company benefits from a strong competitive position. While revenue increased just 7% to $7.4 billion in the fourth quarter, PayPal managed to cut $900 million in expenses throughout the year, which resulted in non-GAAP earnings growth of 11% in the fourth quarter, up from negative 28% in the first quarter. The Motley Fool has positions in and recommends Alphabet, Apple, DoorDash, PayPal, Roku, and Walmart.
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In a nutshell, Roku is already well positioned to benefit as brands spend a larger portion of their ad budgets on streaming video, but the company is also experimenting with adjacent revenue streams that extend its market opportunity. PayPal: A leader in digital payments PayPal faced significant economic headwinds last year, but management reacted quickly by cutting costs and refocusing investments on its digital wallets and checkout solutions, two areas where the company benefits from a strong competitive position. While revenue increased just 7% to $7.4 billion in the fourth quarter, PayPal managed to cut $900 million in expenses throughout the year, which resulted in non-GAAP earnings growth of 11% in the fourth quarter, up from negative 28% in the first quarter.
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Roku: A leader in streaming entertainment Roku reported disappointing financial results last year. This year looks even better. The Motley Fool has positions in and recommends Alphabet, Apple, DoorDash, PayPal, Roku, and Walmart.
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16840.0
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2023-03-07 00:00:00 UTC
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Better Ad Tech Stock: The Trade Desk vs. Magnite
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AAPL
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https://www.nasdaq.com/articles/better-ad-tech-stock%3A-the-trade-desk-vs.-magnite
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The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI) are both independent ad tech companies that operate in the shadows of diversified advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms (NASDAQ: META).
Unlike those larger advertising companies, The Trade Desk and Magnite don't lock publishers and advertisers into their walled gardens. Instead, both companies make it easier to purchase ads on desktop, mobile, and connected TV (CTV) platforms across the "open" internet, which doesn't operate under those big tech umbrellas. But over the past 12 months, The Trade Desk's stock declined 28% as Magnite's stock dropped 17%.
Image source: Getty Images.
Both stocks lost their luster as rising rates and other macro headwinds caused companies to curb their spending on ads. Cautious investors also abandoned higher-growth tech stocks in favor of cheaper value plays. But could either of these fallen ad tech stocks bounce back this year?
The differences between The Trade Desk and Magnite
The Trade Desk and Magnite are both independent platforms, but they sit at opposite ends of the advertising supply chain. The Trade Desk is a demand-side platform (DSP), which allows advertisers to bid on ad space across a wide range of platforms, while Magnite operates a sell-side platform (SSP), which helps publishers sell their own ad inventories. These two companies are the largest independent players in their respective markets.
DSPs typically work in tandem with SSPs to sell digital ads. Google and Meta bundle together DSPs, SSPs, and other advertising services, but they're not independent platforms. However, The Trade Desk recently launched OpenPath, a new feature that bypasses SSPs like Magnite to connect publishers to advertisers. That feature could make it a more diversified advertising company like Google or Meta, but it could also hurt Magnite and other SSPs.
The Trade Desk hasn't made any acquisitions since it bought the assets of the ad tech company AdBrain in 2017. Meanwhile, Magnite was created by the merger of two smaller companies, The Rubicon Project and Telaria, in 2020. It then bought the video advertising companies SpotX and SpringServe, as well as the publisher monetization firm Carbon.
Therefore, it's fairly easy for investors to track The Trade Desk's growth. Magnite's growth rates need to be reviewed more carefully due to its inorganic growth rates and ex-TAC (excluding traffic acquisition costs) revenues -- which it started using as its core growth metric after its purchase of SpotX in 2021.
Which company is growing faster?
The Trade Desk's revenue rose 26% in 2020, even as the pandemic throttled the market's demand for digital ads. But in 2021, its revenue increased 43% as the advertising market recovered.
In 2022, its revenue rose 32% to $1.58 billion, even as inflation rattled the markets and Apple's (NASDAQ: AAPL) iOS update prevented many advertisers -- including Meta's Facebook and Instagram -- from crafting effective targeted ads. It resisted that pressure with Solimar, its newer AI-powered platform that leverages first-party data (instead of third-party data) to place ads more effectively, and the expansion of its CTV business -- which is growing faster than its other platforms as ad-supported streaming services replace linear TV platforms. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew 33% to $668 million as its full-year adjusted EBITDA margin held steady at 42%.
For 2023, analysts expect The Trade Desk's revenue to rise 20% to $1.89 billion as its adjusted EBITDA increases 7% to $718 million. The stock isn't cheap at 14 times this year's sales and 37 times its adjusted EBITDA, but it's still arguably a "best in breed" play on the ad tech market.
Magnite's revenue rose 42% in 2020 and jumped 111% in 2021, but most of that growth was driven by its initial merger and acquisitions. In 2022, its revenue rose 23% (and 24% on an ex-TAC basis) to $577 million after lapping those deals. Its adjusted EBITDA increased 20% to $179 million, but its adjusted EBITDA margin dipped from 36% to 35%.
Most of Magnite's slowdown was caused by a deceleration in its CTV business, which generated more than 40% of its revenue during the year. That closely watched segment struggled as advertisers reined in their spending to cope with the macro headwinds, and it expects those headwinds to persist through at least the first quarter of 2023.
For the full year, analysts expect Magnite's revenue to rise only 6% to $544 million as its adjusted EBITDA dips 2%. Based on those lackluster expectations, Magnite trades at just 3 times this year's sales and 10 times its adjusted EBITDA. However, its sluggish growth, the potential long-term challenges from The Trade Desk's OpenPath, and its heavy dependence on acquisitions could all prevent investors from considering it to be a value play.
The obvious winner: The Trade Desk
The Trade Desk trades at a significant premium to Magnite, but its stronger growth, higher margins, clearer business model, and ongoing innovations (such as Solimar and OpenPath) make it a better long-term investment. Magnite might eventually bounce back, but it needs to stabilize its CTV business and generate consistent organic growth before the bulls come back.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, Magnite, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Magnite, Meta Platforms, and Trade Desk. 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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In 2022, its revenue rose 32% to $1.58 billion, even as inflation rattled the markets and Apple's (NASDAQ: AAPL) iOS update prevented many advertisers -- including Meta's Facebook and Instagram -- from crafting effective targeted ads. Instead, both companies make it easier to purchase ads on desktop, mobile, and connected TV (CTV) platforms across the "open" internet, which doesn't operate under those big tech umbrellas. However, its sluggish growth, the potential long-term challenges from The Trade Desk's OpenPath, and its heavy dependence on acquisitions could all prevent investors from considering it to be a value play.
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In 2022, its revenue rose 32% to $1.58 billion, even as inflation rattled the markets and Apple's (NASDAQ: AAPL) iOS update prevented many advertisers -- including Meta's Facebook and Instagram -- from crafting effective targeted ads. The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI) are both independent ad tech companies that operate in the shadows of diversified advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms (NASDAQ: META). For the full year, analysts expect Magnite's revenue to rise only 6% to $544 million as its adjusted EBITDA dips 2%.
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In 2022, its revenue rose 32% to $1.58 billion, even as inflation rattled the markets and Apple's (NASDAQ: AAPL) iOS update prevented many advertisers -- including Meta's Facebook and Instagram -- from crafting effective targeted ads. The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI) are both independent ad tech companies that operate in the shadows of diversified advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms (NASDAQ: META). The differences between The Trade Desk and Magnite The Trade Desk and Magnite are both independent platforms, but they sit at opposite ends of the advertising supply chain.
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In 2022, its revenue rose 32% to $1.58 billion, even as inflation rattled the markets and Apple's (NASDAQ: AAPL) iOS update prevented many advertisers -- including Meta's Facebook and Instagram -- from crafting effective targeted ads. Google and Meta bundle together DSPs, SSPs, and other advertising services, but they're not independent platforms. For the full year, analysts expect Magnite's revenue to rise only 6% to $544 million as its adjusted EBITDA dips 2%.
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16841.0
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2023-03-07 00:00:00 UTC
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Berkshire Hathaway resumes Occidental purchases, stake reaches 22.2%
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https://www.nasdaq.com/articles/berkshire-hathaway-resumes-occidental-purchases-stake-reaches-22.2
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By Jonathan Stempel
March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday.
Berkshire paid about $355 million for 5.8 million Occidental shares between March 3 and March 7, according to the filing.
The purchases were the first Berkshire has disclosed since late September. It ended last year with a 21.4% stake.
In August, Berkshire won U.S. Federal Energy Regulatory Commission permission to buy up to 50% of Occidental's common stock.
Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85.
Those shares would generate about $144 million of annual dividends, following a 38% increase that Occidental announced last month.
Berkshire also owns $10 billion of Occidental preferred stock that throws off $800 million of annual dividends, plus warrants to buy another $5 billion of common stock.
Occidental ended January with about 900 million shares outstanding.
Berkshire began buying large quantities of the Houston-based company's stock about one year ago.
After its stake surpassed 20%, Berkshire adopted the equity method of accounting for its holdings, and now reports its share of Occidental's results with its own.
Accounting rules normally require the equity method above the 20% threshold, reflecting an assumption that the holder might exert significant influence.
Berkshire ended 2022 with $128.6 billion of cash and equivalents. It plans to keep a $30 billion cushion.
Occidental's share price more than doubled in 2022, benefiting from higher oil prices after Russia invaded Ukraine.
Though fourth-quarter profit was lower than analysts expected, Occidental said it planned to raise capital spending this year and could repurchase up to $3 billion of stock.
Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O.
(Reporting by Jonathan Stempel in New York; Editing by Jamie Freed)
((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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Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. After its stake surpassed 20%, Berkshire adopted the equity method of accounting for its holdings, and now reports its share of Occidental's results with its own.
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Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85.
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Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. Berkshire paid about $355 million for 5.8 million Occidental shares between March 3 and March 7, according to the filing.
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Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. It ended last year with a 21.4% stake. Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85.
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16842.0
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2023-03-07 00:00:00 UTC
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Australian regulator to monitor rapid growth in digital platforms sector
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AAPL
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https://www.nasdaq.com/articles/australian-regulator-to-monitor-rapid-growth-in-digital-platforms-sector
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Updates with details on probe and background
March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector.
The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how these giants are expanding their reach in the country.
The regulator said it will look into procedures adopted by the sector such as creating confusing interfaces known as "dark patterns", which can "manipulate users into taking certain actions", as well as conditional service offerings, also known as "tying", that restrict access to particular services.
ACCC also published an issues paper, seeking feedback from consumers, businesses and relevant stakeholders concerning the investment choices made by digital platforms and the potential effect on competition and consumers.
This follows the ACCC announcing in January that it had conducted a sweep to identify misleading testimonials and endorsements by social media influencers across a range of digital platforms.
(Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips)
((Riya.Sharma@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how these giants are expanding their reach in the country. Updates with details on probe and background March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector. This follows the ACCC announcing in January that it had conducted a sweep to identify misleading testimonials and endorsements by social media influencers across a range of digital platforms.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how these giants are expanding their reach in the country. Updates with details on probe and background March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector. The regulator said it will look into procedures adopted by the sector such as creating confusing interfaces known as "dark patterns", which can "manipulate users into taking certain actions", as well as conditional service offerings, also known as "tying", that restrict access to particular services.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how these giants are expanding their reach in the country. Updates with details on probe and background March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector. ACCC also published an issues paper, seeking feedback from consumers, businesses and relevant stakeholders concerning the investment choices made by digital platforms and the potential effect on competition and consumers.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how these giants are expanding their reach in the country. Updates with details on probe and background March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector. The regulator said it will look into procedures adopted by the sector such as creating confusing interfaces known as "dark patterns", which can "manipulate users into taking certain actions", as well as conditional service offerings, also known as "tying", that restrict access to particular services.
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16843.0
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2023-03-07 00:00:00 UTC
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Australian regulator to probe digital platforms' expansive ecosystems
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AAPL
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https://www.nasdaq.com/articles/australian-regulator-to-probe-digital-platforms-expansive-ecosystems
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nan
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nan
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March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's growing ecosystem of digital platform service providers as part of a five-year inquiry into the sector.
The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how the digital giants are expanding their reach.
(Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips)
((Riya.Sharma@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how the digital giants are expanding their reach. March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's growing ecosystem of digital platform service providers as part of a five-year inquiry into the sector. (Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips) ((Riya.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how the digital giants are expanding their reach. March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's growing ecosystem of digital platform service providers as part of a five-year inquiry into the sector. (Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips) ((Riya.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how the digital giants are expanding their reach. March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's growing ecosystem of digital platform service providers as part of a five-year inquiry into the sector. (Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips) ((Riya.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Australian Competition and Consumer Commission (ACCC) said consumers and businesses are becoming increasingly dependent on products and services offered by digital platforms such as Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O, and it's crucial to examine how the digital giants are expanding their reach. March 8 (Reuters) - The Australian competition regulator said on Wednesday it would probe the country's growing ecosystem of digital platform service providers as part of a five-year inquiry into the sector. (Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips) ((Riya.Sharma@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16844.0
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2023-03-07 00:00:00 UTC
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After Hours Most Active for Mar 7, 2023 : INTC, VALE, LVS, RIVN, LBRT, UBER, GM, CRWD, COMP, WW, AAPL, PLYA
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-7-2023-%3A-intc-vale-lvs-rivn-lbrt-uber-gm-crwd-comp-ww-aapl
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The NASDAQ 100 After Hours Indicator is up 2.09 to 12,154.26. The total After hours volume is currently 86,653,216 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is +0.02 at $25.55, with 6,169,802 shares traded. INTC's current last sale is 91.25% of the target price of $28.
VALE S.A. (VALE) is unchanged at $16.32, with 5,829,830 shares traded. VALE's current last sale is 85.89% of the target price of $19.
Las Vegas Sands Corp. (LVS) is unchanged at $59.00, with 2,875,063 shares traded. As reported by Zacks, the current mean recommendation for LVS is in the "buy range".
Rivian Automotive, Inc. (RIVN) is -0.1 at $14.54, with 2,094,836 shares traded., following a 52-week high recorded in today's regular session.
Liberty Energy Inc. (LBRT) is -0.01 at $16.10, with 2,034,354 shares traded. LBRT's current last sale is 73.18% of the target price of $22.
Uber Technologies, Inc. (UBER) is +0.03 at $34.17, with 1,926,777 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $-0.13. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
General Motors Company (GM) is -0.02 at $39.72, with 1,815,150 shares traded. GM's current last sale is 86.35% of the target price of $46.
CrowdStrike Holdings, Inc. (CRWD) is +8.04 at $132.97, with 1,762,916 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $-0.09. As reported by Zacks, the current mean recommendation for CRWD is in the "buy range".
Compass, Inc. (COMP) is unchanged at $3.25, with 1,508,736 shares traded. COMP's current last sale is 72.22% of the target price of $4.5.
WW International, Inc. (WW) is -0.15 at $6.78, with 1,484,895 shares traded. WW's current last sale is 178.42% of the target price of $3.8.
Apple Inc. (AAPL) is -0.02 at $151.58, with 1,409,065 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Playa Hotels & Resorts N.V. (PLYA) is unchanged at $9.38, with 1,290,640 shares traded. As reported by Zacks, the current mean recommendation for PLYA is in the "strong buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.02 at $151.58, with 1,409,065 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Rivian Automotive, Inc. (RIVN) is -0.1 at $14.54, with 2,094,836 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.02 at $151.58, with 1,409,065 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 LVS is in the "buy range".
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Apple Inc. (AAPL) is -0.02 at $151.58, with 1,409,065 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 86,653,216 shares traded.
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Apple Inc. (AAPL) is -0.02 at $151.58, with 1,409,065 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". INTC's current last sale is 91.25% of the target price of $28.
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16845.0
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2023-03-07 00:00:00 UTC
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3 Warren Buffett Stocks That Are Poised for Major Growth Potential
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-are-poised-for-major-growth-potential
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nan
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Looking for growth stocks in Warren Buffett's Berkshire Hathaway might seem optimistic, but you can't have a good growth stock without value, and you can't have a good value stock without growth. The latter applies here. Despite facing some cyclical challenges in 2023, UPS (NYSE: UPS), chemicals company Celanese (NYSE: CE), and Apple (NASDAQ: AAPL) all continue to improve their businesses for growth over the long term. Here's how.
UPS keeps transforming its business
The package delivery giant's sales and earnings are set to decline in 2023 due to the slowing global growth environment. Nonetheless, UPS is a company with excellent long-term growth prospects from its ongoing implementation of a transformational strategy. Launched in 2018, the strategy emphasizes growing its small and medium-sized (SMB) business and healthcare revenue, and taking a more selective approach to e-commerce deliveries.
The pandemic helped accelerate growth in SMBs and healthcare as they hurried to develop e-commerce capabilities. Meanwhile, being more selective over e-commerce deliveries, such as foregoing certain less-profitable deliveries for Amazon.com, is helping improve profit margin and free cash flow from its assets in the U.S. and relieving stress on UPS' network.
Data by YCharts
The emphasis on improving the quality of its revenue and improving revenue per piece over cost per piece has resulted in solid revenue and earnings growth even as volumes declined in the U.S.
The next step in UPS' transformational journey is to carry on growing in its selected markets while increasingly utilizing technology to improve productivity. As such, UPS will emerge from the slowdown as a stronger company with better long-term earnings potential. Trading on 16 times estimated 2023 earnings (a year likely to be a trough year), UPS combines good value and growth for long-term investors.
Celanese will emerge stronger from a slowdown
The chemicals industry tends to be cyclical. Given the tightness in supply and demand, all it takes is a slight drop-off in demand (usually caused by a slowing economy) to result in steep falls in prices. That's terrible news for chemical companies like Celanese. As such, Wall Street analysts have the company's earnings per share declining from $15.88 in 2022 to $12.12 in 2023.
However, the 2023 estimate puts Celanese at just over 10 times earnings. Meanwhile, management continues to improve the underlying profitability of its business while waiting for the cycle to turn again. A few examples include finding better ways to use (or not use) its less productive plants, investing in low-cost production plants, and investing in digital technology to improve productivity. As you can see below, Celanese's profit margins tend to move up and down with revenue, but there's been a clear upward trend in its margins over the last decade. That stands the company in good stead for when the next upcycle begins.
Data source: morningstar.com.
Apple's margin expansion opportunity
Representing nearly 40% of Berkshire Hathaway's publicly listed equities, it's fair to say the consumer electronics giant is a conviction holding. That's because it offers a combination of value and growth. It's value in the sense that it currently trades for less than 24 times its trailing-12-month free cash flow. That is not a bad valuation for a company in a down year caused by slowing consumer spending and a natural correction from the boom years of the pandemic.
It's a growth stock because its almost 28% share of global smartphone sales lags behind its more than 55% share in the U.S., so there's an opportunity to increase market share and participants in overall global growth.
Image source: Getty Images.
However, Apple's services revenue offers the best long-term growth driver for the company. Apple grew revenue at a 3% rate (on a constant currency basis) in the last quarter, but its services revenue grew much more (13% at constant currency and 6% reported). Given that Apple's services gross profit margin is roughly double that of products (71% versus 37% in its last quarter), if Apple can continue to expand services (iCloud, Apple Pay, Apple Music, etc.) then the margin expansion opportunity is significant. With double-digit growth in active devices in the quarter (now over 2 billion), Apple has plenty of potential to do just that.
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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. Lee Samaha 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 United Parcel Service 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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Despite facing some cyclical challenges in 2023, UPS (NYSE: UPS), chemicals company Celanese (NYSE: CE), and Apple (NASDAQ: AAPL) all continue to improve their businesses for growth over the long term. UPS keeps transforming its business The package delivery giant's sales and earnings are set to decline in 2023 due to the slowing global growth environment. Launched in 2018, the strategy emphasizes growing its small and medium-sized (SMB) business and healthcare revenue, and taking a more selective approach to e-commerce deliveries.
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Despite facing some cyclical challenges in 2023, UPS (NYSE: UPS), chemicals company Celanese (NYSE: CE), and Apple (NASDAQ: AAPL) all continue to improve their businesses for growth over the long term. Meanwhile, being more selective over e-commerce deliveries, such as foregoing certain less-profitable deliveries for Amazon.com, is helping improve profit margin and free cash flow from its assets in the U.S. and relieving stress on UPS' network. The Motley Fool recommends United Parcel Service and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Despite facing some cyclical challenges in 2023, UPS (NYSE: UPS), chemicals company Celanese (NYSE: CE), and Apple (NASDAQ: AAPL) all continue to improve their businesses for growth over the long term. Looking for growth stocks in Warren Buffett's Berkshire Hathaway might seem optimistic, but you can't have a good growth stock without value, and you can't have a good value stock without growth. Given that Apple's services gross profit margin is roughly double that of products (71% versus 37% in its last quarter), if Apple can continue to expand services (iCloud, Apple Pay, Apple Music, etc.)
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Despite facing some cyclical challenges in 2023, UPS (NYSE: UPS), chemicals company Celanese (NYSE: CE), and Apple (NASDAQ: AAPL) all continue to improve their businesses for growth over the long term. Looking for growth stocks in Warren Buffett's Berkshire Hathaway might seem optimistic, but you can't have a good growth stock without value, and you can't have a good value stock without growth. Trading on 16 times estimated 2023 earnings (a year likely to be a trough year), UPS combines good value and growth for long-term investors.
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16846.0
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2023-03-07 00:00:00 UTC
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My Take: 4 Strong Growth Stocks to Buy This Week
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AAPL
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https://www.nasdaq.com/articles/my-take%3A-4-strong-growth-stocks-to-buy-this-week-6
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nan
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nan
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After last year's sell-off when the Nasdaq Composite index plunged 33%, keeping a long-term mindset when buying stocks has become even more crucial. Doing so will allow your investment to continue growing, even when factoring in short-term declines.
As 2023 gets underway, many companies are seeing some stock price recovery as Wall Street gains some optimism about the prospects for the year. And yet, last year's steep market declines mean there are still plenty of buying opportunities.
Here's my take on four strong growth stocks to buy this week.
1. Amazon
In 2022, Amazon's (NASDAQ: AMZN) stock price fell almost 50% as its business took multiple hits from macroeconomic headwinds. Decreases in consumer spending and foreign exchange challenges led the company's e-commerce segments to report a total of $10.6 billion in operating losses in fiscal 2022, even after revenue from its North American and international segments cumulatively rose 6.4% year over year to $433.9 billion.
Despite the temporary obstacles, Amazon has a lucrative long-term outlook. It's the biggest name in e-commerce and cloud computing, which remain high-growth markets. Meanwhile, its average 12-month stock price target is 45% higher than its current position, making it a screaming buy this week.
Amazon share prices have risen 22% in the last five years and 585% in the last decade. As a result, its recent tumble only makes this stock more attractive right now.
2. Apple
Apple's (NASDAQ: AAPL) share prices are up 16% in 2023, with investors rallying over the company's prospects in the augmented/virtual reality market and long-term improvements in its iPhone production, including a move out of China. Despite the rise, Apple's price-to-earnings ratio (P/E) proves that its stock still offers more value than many of its tech peers, as shown in the table below.
AAPL PE Ratio data by YCharts
In addition to value, Apple's stock has a reputation for consistent long-term growth. Over the last five years, its stock price has risen 241%, and it's soared 880% over the last 10 years. The stellar stock growth has come alongside revenue which has increased 48% to $394 billion since 2018, with operating income rising 68% to $119 billion.
There's hardly ever a wrong time to invest in Apple, but its reliable rate of return and bargain stock price make it a no-brainer buy this week.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) may have a high P/E, but its past performance of growth and its outlook earn it a spot on this list.
The last five years have seen AMD share prices soar 586%, and they've risen over 3,000% in the last decade. The company's rising dominance in computing components sent its annual revenue climbing 264% to $23.6 billion since 2019, as operating income increased 180% to $1.3 billion.
AMD suffered significant losses in 2022 as PC market declines brought reductions in sales of its consumer graphics processing units (GPUs) and processors. In fact, worldwide GPU shipments fell 42% throughout the year as rising inflation led people to cut back on discretionary spending.
Despite the hits, AMD's pivot to more lucrative parts of business saw revenue in its data center segment become the highest-earning part of its business after an annual revenue rise of 63.5% to $6.04 billion. Meanwhile, its embedded segment reported a revenue increase of over 1,700% to $4.55 billion.
AMD may have stumbled in 2022, but its history of stellar stock growth and its prospects in data centers and embedded products make it a company worth a long-term investment.
4. Disney
Walt Disney (NYSE: DIS) share prices plunged 44% throughout 2022 after a financially difficult few years, with the COVID-19 pandemic and economic challenges making it costly to develop its flagship streaming service, Disney+.
Unlike big tech companies like Apple and AMD, which see immense growth in short bursts of time, Disney is one of those incredibly reliable stocks you can buy now and trust to gradually rise indefinitely. The Walt Disney Company entered its 100th year of business in 2023, proving that longevity is not an issue for this entertainment giant.
Over the last five years, Disney shares have decreased by 1%, and they've risen 81% over the last 10 years. The five-year decline is mainly owed to nearly two years of pandemic-induced theme park and theater temporary closures, followed by an economically challenging environment in 2022. However, its 10-year growth is impressive considering recent headwinds. In the decade before (2002-2012), the stock rose 76.7%, illustrating an improvement.
Moreover, Disney's forward P/E of 24.6 has decreased by 33% over the last year, signaling a buying opportunity. Along with powerful brands such as ESPN, Marvel, Star Wars, Pixar, and Walt Disney Studios, the company's stock is an excellent investment to buy now and hold forever.
10 stocks we like better than Amazon.com
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*Stock Advisor returns as of February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple's (NASDAQ: AAPL) share prices are up 16% in 2023, with investors rallying over the company's prospects in the augmented/virtual reality market and long-term improvements in its iPhone production, including a move out of China. AAPL PE Ratio data by YCharts In addition to value, Apple's stock has a reputation for consistent long-term growth. AMD may have stumbled in 2022, but its history of stellar stock growth and its prospects in data centers and embedded products make it a company worth a long-term investment.
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Apple Apple's (NASDAQ: AAPL) share prices are up 16% in 2023, with investors rallying over the company's prospects in the augmented/virtual reality market and long-term improvements in its iPhone production, including a move out of China. AAPL PE Ratio data by YCharts In addition to value, Apple's stock has a reputation for consistent long-term growth. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) may have a high P/E, but its past performance of growth and its outlook earn it a spot on this list.
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Apple Apple's (NASDAQ: AAPL) share prices are up 16% in 2023, with investors rallying over the company's prospects in the augmented/virtual reality market and long-term improvements in its iPhone production, including a move out of China. AAPL PE Ratio data by YCharts In addition to value, Apple's stock has a reputation for consistent long-term growth. Decreases in consumer spending and foreign exchange challenges led the company's e-commerce segments to report a total of $10.6 billion in operating losses in fiscal 2022, even after revenue from its North American and international segments cumulatively rose 6.4% year over year to $433.9 billion.
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Apple Apple's (NASDAQ: AAPL) share prices are up 16% in 2023, with investors rallying over the company's prospects in the augmented/virtual reality market and long-term improvements in its iPhone production, including a move out of China. AAPL PE Ratio data by YCharts In addition to value, Apple's stock has a reputation for consistent long-term growth. And yet, last year's steep market declines mean there are still plenty of buying opportunities.
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16847.0
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2023-03-07 00:00:00 UTC
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Stock Market News for Mar 7, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-7-2023
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nan
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nan
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U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week. The S&P 500 also managed to hold on to last week’s gains but the Nasdaq ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.1% or 40.47 points to end at 33,431.44 points.
The S&P 500 rose 0.1% or 2.78 points to close at 4,048.42 points. Materials and consumer discretionary stocks were the biggest gainers, while tech stocks gained.
The Materials Select Sector SPDR (XLB) and the Consumer Discretionary Select Sector SPDR (XLY) declined 1.6% and 0.7%, respectively. The Technology Select Sector SPDR (XLK) gained 0.5%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq declined 0.1% or 13.27 points to finish at 11,676.74 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.65% to 18.61.
Treasury Yields Jump
Wall Street opened higher on Monday but closed well off their session highs. Trading remained volatile for most of the session as robust economic data released last week has made investors worry that the Fed might continue raising interest rates for a longer period than expected in its fight to bring down inflation.
On Monday, Treasury yields rose once again, with the 10-year Treasury note trading up more than 1 basis point after crossing the psychological level of 4% last week on multiple occasions. However, the 10-year Treasury note fell below the 4% mark on Friday which sent high-growth stocks on a rally.
Investors have been keeping an eye on 4% as the critical level since it may signal the start of another stock market decline. The 10-year Treasury yield is a benchmark rate that affects mortgages and auto loans, so a breakout in that rate might have an effect on the economy.
High-growth stocks are affected the most when the Treasury yield climbs. However, tech stocks still managed to gain on Monday despite the rise. Shares of Apple, Inc. AAPL gained 1.9%, while Microsoft Corporation MSFT rose 0.6%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors Await Powell’s Testimony
Investors are also awaiting Fed Chair Jerome Powell’s congressional testimony which is scheduled for Tuesday and Wednesday. His testimony will be vital in helping the investors gauge how the Fed plans to bring down inflation and how long it will continue hiking interest rates. This will also give investors a clearer idea about where the market goes from here.
Although the week has begun on a slow note, a deluge of economic data is scheduled for release this week, most importantly the jobs data, which will help investors assess the direction toward which the economy is headed.
Economic Data
In economic data released on Monday, the Census Bureau said that factory orders declined 1.6% in January after increasing 1.7% in December.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple, Inc. AAPL gained 1.9%, while Microsoft Corporation MSFT rose 0.6%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. AAPL gained 1.9%, while Microsoft Corporation MSFT rose 0.6%. U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. AAPL gained 1.9%, while Microsoft Corporation MSFT rose 0.6%. U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week.
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Shares of Apple, Inc. AAPL gained 1.9%, while Microsoft Corporation MSFT rose 0.6%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week.
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16848.0
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2023-03-07 00:00:00 UTC
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3 Stocks to Buy That Could Be the Next Trillion-Dollar Company
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-that-could-be-the-next-trillion-dollar-company
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The bear market has been punishing for stocks, crushing hopes and dolling out major losses. While many companies have held up okay, others continue to struggle. It makes investors wonder when we’ll see the next trillion-dollar company.
It wasn’t that long ago that a trillion-dollar market capitalization seemed unreachable. But before long, Apple (NASDAQ:AAPL) grazed a $3 trillion market cap. Then the whole market went south and the bear market really began to growl.
In any regard, the steep decline has many investors wondering what the next trillion-dollar company is and when we’ll see it.
There’s no way to know for sure — particularly on the “when” part of the equation — but here are the stocks that seem most likely to get there.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) was not all that far away from a $1 trillion market cap. At one point in December 2021, the company had a valuation north of $800 billion. It would have taken about a 20% rally for Nvidia to get there in the prior cycle.
While the stock went on to lose two-third of its value from peak to trough, it’s been on a robust rally since. Shares have rallied more than 100% off the recent low as investors continue to pile in.
Part of it seems like momentum driving the action, while some of it feels like “FOMO,” as investors fear missing out on the “next big stock” and the AI revolution, which Nvidia is helping to drive.
Because of its role in current technology, the company should continue to do quite well. The way CEO Jensen Huang positions the company in future technology trends before they become hot is why Nvidia has the potential to be one of the next trillion-dollar companies.
Tesla (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Tesla (NASDAQ:TSLA) is an easy and obvious name when looking for the next trillion-dollar company. Tesla should be on everyone’s list for the potential to hit this milestone, given that it has already done so before.
In 2021, Tesla sported a market cap north of $1.2 trillion. As recently as mid-September, shares were down just 24% from the all-time high. Then things came to an abrupt halt.
CEO Elon Musk bought Twitter, which only fueled Tesla’s decline as shares fell in five straight months and cratered more than 67% from the August high to the January low. When it finally bottomed near $100, Tesla stock was 75% below its all-time high.
Should it ever get there again — currently at $414.50 — it will represent a gain of just over 300% from the low.
While a global recession is the obvious risk, the company’s automotive and energy components continue to drive growth. For example, analysts expect 27% and 31% growth in 2023 and 2024, respectively.
Berkshire Hathaway (BRK-B, BRK-A)
Source: Jonathan Weiss / Shutterstock.com
Last but not least, we have Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). However, there’s two main risks with this pick as the next trillion-dollar company. That is Warren Buffett and Charlie Munger.
While those two money managers may be the firm’s biggest assets, there are worries that when they are gone, they will turn into Berkshire’s biggest liabilities.
However, Buffett and Munger have built Berkshire into a powerhouse, as it has amassed a $700 billion market cap. At its highs, it sported a market cap of $800 billion. I believe Buffett & Co. have built a system that will allow Berkshire to continue flourishing long after they have stepped down.
That goes for Berkshire’s impressive list of portfolio managers, but also for the company’s impressive investments. As the world continues to push forward, so too will Berkshire’s largest positions (and savvy deals) and eventually, that should tip the company into the trillion-dollar club.
On the date of publication, Bret Kenwell held a long position in TSLA. 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 Stocks to Buy That Could Be the Next Trillion-Dollar Company 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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But before long, Apple (NASDAQ:AAPL) grazed a $3 trillion market cap. CEO Elon Musk bought Twitter, which only fueled Tesla’s decline as shares fell in five straight months and cratered more than 67% from the August high to the January low. While a global recession is the obvious risk, the company’s automotive and energy components continue to drive growth.
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But before long, Apple (NASDAQ:AAPL) grazed a $3 trillion market cap. Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) was not all that far away from a $1 trillion market cap. Tesla (TSLA) Source: Roschetzky Photography / Shutterstock.com Tesla (NASDAQ:TSLA) is an easy and obvious name when looking for the next trillion-dollar company.
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But before long, Apple (NASDAQ:AAPL) grazed a $3 trillion market cap. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The bear market has been punishing for stocks, crushing hopes and dolling out major losses. The way CEO Jensen Huang positions the company in future technology trends before they become hot is why Nvidia has the potential to be one of the next trillion-dollar companies.
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But before long, Apple (NASDAQ:AAPL) grazed a $3 trillion market cap. Shares have rallied more than 100% off the recent low as investors continue to pile in. The way CEO Jensen Huang positions the company in future technology trends before they become hot is why Nvidia has the potential to be one of the next trillion-dollar companies.
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16849.0
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2023-03-07 00:00:00 UTC
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Is Apple a Safe Stock for 2023?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-safe-stock-for-2023
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) delivered wealth-building returns for investors over the past decade. If you had bought $1,000 worth of Apple stock when the iPad launched in 2010, you would be sitting on $20,230 today. And that's after a 15% stock price dip last year.
While Apple still has many opportunities ahead, with new products and a growing installed base of devices, the company posted a decline in revenue in the quarter that ended in December. This performance might have some investors wondering if one of the world's top brands is truly a safe stock to hold if the economy dips into a recession, as some experts are predicting.
However, there are more reasons to consider buying Apple stock this year than avoiding it.
The value of Apple's diversified product lineup
The possibility of a recession seems like a problem for the sales of expensive tech products. A recession would likely hurt Apple since the iPhone makes up about half of its annual revenue. Macroeconomic headwinds played a key role in sending iPhone revenue down 8% year over year in the fiscal first quarter.
Management attributed the decline in iPhone sales to foreign currency fluctuations, supply constraints, and macroeconomic headwinds like inflation. Excluding foreign currency, iPhone revenue would have been flat versus the year-ago period.
But in a quarter where iPhone struggled, other categories did well. iPad revenue grew 29% year over year, making up 8% of Apple's sales. Services, including app sales and subscriptions, increased 6% year over year, accounting for 18% of total revenue.
The beauty of Apple's business is that it has a dedicated customer base that loves their iPhones. The tech giant created a seamless integration of hardware and software that leads to consistently high customer satisfaction. Apple's iCloud keeps the apps running on Macs, iPhones, iPads, and Apple Watch all in sync, which has been a key incentive for customers to buy at least two devices, leading to a diversified revenue stream.
Apple now has a massive installed base of over 2 billion devices, which is double the level from seven years ago. This sets up the company with a few growth catalysts in 2023.
Growth catalysts are forming for Apple
After years of speculation and rumors, Apple is finally expected to unveil its mixed-reality headset this year, featuring virtual reality (VR) and augmented reality (AR) technology. Bloomberg reported in February that the company postponed the announcement until June at Apple's Worldwide Developers Conference.
One reason this is big news is that Apple's customer base is likely much larger today than when the company's last new product, Apple Watch, launched eight years ago. This means a novel product launch might have more impact on revenue than previous product releases.
Still, a successful debut will depend on the quality of the software and ease of using it, not to mention the price. But Apple's focus on hardware and software design could make its rumored headset a breakthrough AR/VR product.
Excluding the possibility of a new product launch, the company's expanding installed base is a good enough reason to consider holding the stock. The growth in higher-margin services revenue is gradually becoming a greater contributor to the top line. Over time, this will help smooth out the occasional dips in revenue from Apple's hardware products, giving it a better recurring revenue stream besides relying on iPhone upgrades.
Apple stock is a buy
Apple has a fortress-like balance sheet, with $64 billion of net cash. It also generates around $100 billion in free cash flow every year, so it has plenty of resources to fund growth initiatives and pay dividends to shareholders.
Looking at valuation, Apple's price-to-earnings ratio of 25 based on this year's earnings estimates is not cheap, but it is fair compared to the shares' recent trading history and other blue chip stocks. Overall, I wouldn't want to sell Apple stock considering the upcoming catalysts that may not be fully captured in its valuation.
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 February 8, 2023
John Ballard 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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Shares of Apple (NASDAQ: AAPL) delivered wealth-building returns for investors over the past decade. While Apple still has many opportunities ahead, with new products and a growing installed base of devices, the company posted a decline in revenue in the quarter that ended in December. This performance might have some investors wondering if one of the world's top brands is truly a safe stock to hold if the economy dips into a recession, as some experts are predicting.
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Shares of Apple (NASDAQ: AAPL) delivered wealth-building returns for investors over the past decade. Excluding foreign currency, iPhone revenue would have been flat versus the year-ago period. iPad revenue grew 29% year over year, making up 8% of Apple's sales.
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Shares of Apple (NASDAQ: AAPL) delivered wealth-building returns for investors over the past decade. Apple's iCloud keeps the apps running on Macs, iPhones, iPads, and Apple Watch all in sync, which has been a key incentive for customers to buy at least two devices, leading to a diversified revenue stream. Growth catalysts are forming for Apple After years of speculation and rumors, Apple is finally expected to unveil its mixed-reality headset this year, featuring virtual reality (VR) and augmented reality (AR) technology.
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Shares of Apple (NASDAQ: AAPL) delivered wealth-building returns for investors over the past decade. And that's after a 15% stock price dip last year. Excluding the possibility of a new product launch, the company's expanding installed base is a good enough reason to consider holding the stock.
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16850.0
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2023-03-07 00:00:00 UTC
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3 Downgraded Stocks You Might Want To Buy
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AAPL
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https://www.nasdaq.com/articles/3-downgraded-stocks-you-might-want-to-buy
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nan
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nan
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Marketbeat’s analyst tracking tools are a great way to hunt down potential investments or trades, as the case may be. Analyst activity has a profound impact on market dynamics so an uptrend or downtrend in their sentiment is a telling sign. Today’s list includes 3 of the most downgraded stocks, but these are names that investors should buy, not sell. Tesla and Microsoft have seen a reboot in their outlooks that has led to their downgrades while fear of slowing and competition have analysts shying away from SentinelOne.
In all 3 cases, there is ample evidence their respective industries are strong and, individually, amply reason to be attracted to the company and stock. Microsoft and Tesla are both innovative leaders in their fields; Microsoft at least is a blue chip tech, both are mega-cap tech, and Sentinel One is a hyper-growth story within cybersecurity.
Tesla Is The Most Downgraded Stock For Q1?
Tesla (NASDAQ: TSLA) is listed as Marketbeat.com’s most downgraded stock for February, but the worst that can be said of the data is that it was mixed and came with many price target reductions. There are 37 analysts with current ratings on the stock, and at least 31 of them came out in the last 90 days. The takeaway, however, is that sentiment is firming from a weak Hold to a firm Hold verging on Moderate Buy with a price target that is also moving higher. The consensus price target is up compared to last month and last quarter and is helping the stock to put in a bottom. The consensus assumes a 13% upside from the $195 level where support appears strong.
The TSLA chart is not without its negatives, but the near-term action is promising. The stock returned to the $180 level, tested support, and support was confirmed with a rebound. The market is now tracing a tight Head & Shoulders/Vee-Bottom that will be confirmed when price action moves above $215 toward the analysts' average target. Tesla next reports in mid-April when it is expected to report YOY growth but a sequential downtick in business.
Microsoft, Downgraded To Moderate Buy
Microsoft (NASDAQ: MSFT) is another downgraded name to take with a grain of salt. The downgrades have it 4th position regarding the pace of activity but this is to Moderate Buy from Strong Buy. Marketbeat.com is tracking 32 analysts with current reports, 19 of which came out over the last quarter, and the worst that can be said is it received 1 downgrade to sell which is an outlier. All other ratings are at least a Hold and the consensus price target, which is about 10% above recent action, is trending higher after hitting bottom late in 2022.
Microsoft isn’t a value trading at 27X its earnings, which is consistent for blue chip tech like this. Apple (NASDAQ: AAPL) trades a handle or so lower but also pays a significantly lower dividend. Neither is large, Microsoft pays about 1.1% at these price levels, but it is an incredibly safe and growing payout investors can rely on.
SentinelOne, Down But Not Out
SentinelOne (NASDAQ: S) has been trending lower from the post-IPO peak on fear of slowing growth compounded by fear of slowing in the cybersecurity industry. Names from Zscaler (NASDAQ: ZS) to Palo Alto Networks (NASDAQ: PANW) have been under pressure for the same reasons, and they’ve all reported OK if not good results and outlook. This has the group bottoming, and SentinelOne should be included despite the recent trend in analyst sentiment.
The analysts; Marketbeat is tracking 26 analysts with ratings on SentinelOne, 19 of which are less than 90 days old, and it is ranked 5th most downgraded stock. Like Microsoft, this is a downgrade to Moderate Buy from a more solid Buy rating in 2022. The takeaway is that the price target has been trending lower but appears to have bottomed or begun to bottom. SentinelOne reports results next week and may spur the analysts to act in support of that bottom should results echo news from peers.
The views and 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) trades a handle or so lower but also pays a significantly lower dividend. Tesla and Microsoft have seen a reboot in their outlooks that has led to their downgrades while fear of slowing and competition have analysts shying away from SentinelOne. In all 3 cases, there is ample evidence their respective industries are strong and, individually, amply reason to be attracted to the company and stock.
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Apple (NASDAQ: AAPL) trades a handle or so lower but also pays a significantly lower dividend. The takeaway, however, is that sentiment is firming from a weak Hold to a firm Hold verging on Moderate Buy with a price target that is also moving higher. Microsoft, Downgraded To Moderate Buy Microsoft (NASDAQ: MSFT) is another downgraded name to take with a grain of salt.
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Apple (NASDAQ: AAPL) trades a handle or so lower but also pays a significantly lower dividend. Tesla (NASDAQ: TSLA) is listed as Marketbeat.com’s most downgraded stock for February, but the worst that can be said of the data is that it was mixed and came with many price target reductions. Microsoft, Downgraded To Moderate Buy Microsoft (NASDAQ: MSFT) is another downgraded name to take with a grain of salt.
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Apple (NASDAQ: AAPL) trades a handle or so lower but also pays a significantly lower dividend. Tesla Is The Most Downgraded Stock For Q1? Marketbeat.com is tracking 32 analysts with current reports, 19 of which came out over the last quarter, and the worst that can be said is it received 1 downgrade to sell which is an outlier.
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2023-03-07 00:00:00 UTC
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Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-6
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Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $41.15 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.92%.
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 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.02% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 65.29% of total assets under management.
Performance and Risk
The ETF has gained about 13.15% and is down about -5.11% so far this year and in the past one year (as of 03/07/2023), respectively. XLK has traded between $116.56 and $163.50 during this last 52-week period.
The ETF has a beta of 1.13 and standard deviation of 31.45% for the trailing three-year period, making it a medium risk choice in the space. With about 78 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR 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, XLK is a great 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. IShares U.S. Technology ETF has $9.12 billion in assets, Vanguard Information Technology ETF has $43.94 billion. IYW has an expense ratio of 0.39% 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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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.02% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. You should consider the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.02% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.02% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Alternatives Technology Select Sector SPDR ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.02% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Costs Investors should also pay attention to an ETF's expense ratio.
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16852.0
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2023-03-07 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-6
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $3.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.50%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.97% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has gained about 6.02% so far this year and is down about -5.34% in the last one year (as of 03/07/2023). In the past 52-week period, it has traded between $162.86 and $211.63.
The ETF has a beta of 1.02 and standard deviation of 25.40% for the trailing three-year period, making it a medium risk choice in the space. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VONE is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $302.86 billion in assets, SPDR S&P 500 ETF has $363.43 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.97% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.97% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). You should consider the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.97% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.97% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
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2023-03-07 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-7
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $10.55 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.98%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.55% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
The top 10 holdings account for about 19.12% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has gained about 4.47% so far this year and is down about -0.19% in the last one year (as of 03/07/2023). In the past 52-week period, it has traded between $47.76 and $59.62.
The ETF has a beta of 1.01 and standard deviation of 24.83% for the trailing three-year period, making it a medium risk choice in the space. With about 725 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNDX is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.51 billion in assets, Vanguard Value ETF has $103.90 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): 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, Apple Inc (AAPL) accounts for about 3.55% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.55% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): 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, Apple Inc (AAPL) accounts for about 3.55% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Alternatives Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.55% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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16854.0
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2023-03-07 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-3
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nan
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nan
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Virtual reality (VR) has shown up in a number of devices and iterations since the early 1990s. However, recent advances in the technology have only just made it possible for VR to fulfill the experience developers have been after for years.
Sony and Meta have dominated the industry since around 2015 with their headsets, mainly geared toward VR gaming. According to Grand View Research, the VR market was valued at $21.83 billion in 2021 and will expand at a compound annual growth rate (CAGR) of 15% through 2030. As a result, the industry is looking increasingly attractive to other tech giants considering joining the high-growth market.
It's still fairly early days for VR and its potential in industries outside of gaming, making now an excellent time to invest. Here are two virtual reality stocks to buy right now.
1. Apple
Acquisitions and filed patents related to VR technology outed Apple's (NASDAQ: AAPL) planned venture into the industry long ago. However, reports have revealed that 2023 will finally be the year the tech giant unveils its mixed-reality headset.
Bloomberg reported on Jan. 23 that Apple's coming device would switch between VR and augmented reality (AR), using an iOS-like interface. While some of VR's biggest proponents over the years have been gamers, Apple's headset is expected to build on what Meta has strived for with advanced video conferencing and meeting features through its app, FaceTime.
Apple's expected venture into VR is especially promising due to its past success in entering new markets. The company has a proven talent for launching entirely new products and quickly rising to dominance in their respective industries. Apple has done this with smartphones, tablets, Bluetooth headphones, and smart watches, all of which might have experienced far slower mainstream adoption without the company's influence.
Moreover, the inclusion of AR capabilities in Apple's reported headset would see it enter a market worth $25.33 billion in 2021 and expected to see a CAGR of 40.9% through 2030.
As a result, an investment in Apple's stock could be an investment in the future leader of two high-growth industries: Augmented and virtual reality.
2. Advanced Micro Devices
As a leader in PC components like central processing units (CPUs) and graphics processing units (GPUs), Advanced Micro Devices (NASDAQ: AMD) is home to the hardware necessary to run virtual reality programs. In fact, AMD has already partnered with Microsoft's Windows Mixed Reality, HTC's Vive, and Meta's Oculus to power their respective VR headsets.
Moreover, AMD has a history of providing its hardware to top tech companies. It supplies the graphics and processing power through its system on a chip to the PlayStation 5 and Xbox Series X|S game consoles. These partnerships paid off substantially in 2022 amid steep declines in the PC markets that led to reduced sales in AMD's related segments.
While the company's gaming business suffered from decreased demand for consumer GPUs, the segment reported revenue growth of 21% to $6.8 billion in fiscal 2022. The growth was almost entirely driven by console sales and its partnerships with Sony and Microsoft.
As VR develops, it will likely see broader adoption in industries such as education, healthcare, design, and more, as it has the potential to enhance many fields. Meanwhile, tech titans like Apple joining the market have the potential to invite more competition and increase the opportunities for AMD to use its hardware in VR.
AMD shares have soared 27% year to date. However, they remain down 21% year over year. Meanwhile, the company's forward price-to-earnings ratio (P/E) of 26.7 has declined 22% over the last year, representing a bargain compared to its biggest competitor Nvidia, with a forward P/E of 54.6.
As a result, AMD is an excellent stock through which to invest in virtual reality, and a bargain buy right now.
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*Stock Advisor returns as of February 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, Microsoft, and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Acquisitions and filed patents related to VR technology outed Apple's (NASDAQ: AAPL) planned venture into the industry long ago. While some of VR's biggest proponents over the years have been gamers, Apple's headset is expected to build on what Meta has strived for with advanced video conferencing and meeting features through its app, FaceTime. In fact, AMD has already partnered with Microsoft's Windows Mixed Reality, HTC's Vive, and Meta's Oculus to power their respective VR headsets.
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Apple Acquisitions and filed patents related to VR technology outed Apple's (NASDAQ: AAPL) planned venture into the industry long ago. Advanced Micro Devices As a leader in PC components like central processing units (CPUs) and graphics processing units (GPUs), Advanced Micro Devices (NASDAQ: AMD) is home to the hardware necessary to run virtual reality programs. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, and Nvidia.
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Apple Acquisitions and filed patents related to VR technology outed Apple's (NASDAQ: AAPL) planned venture into the industry long ago. As a result, an investment in Apple's stock could be an investment in the future leader of two high-growth industries: Augmented and virtual reality. Advanced Micro Devices As a leader in PC components like central processing units (CPUs) and graphics processing units (GPUs), Advanced Micro Devices (NASDAQ: AMD) is home to the hardware necessary to run virtual reality programs.
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Apple Acquisitions and filed patents related to VR technology outed Apple's (NASDAQ: AAPL) planned venture into the industry long ago. Moreover, the inclusion of AR capabilities in Apple's reported headset would see it enter a market worth $25.33 billion in 2021 and expected to see a CAGR of 40.9% through 2030. However, they remain down 21% year over year.
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16855.0
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2023-03-07 00:00:00 UTC
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Taiwan Feb exports fall again; H1 outlook poor
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AAPL
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https://www.nasdaq.com/articles/taiwan-feb-exports-fall-again-h1-outlook-poor
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nan
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nan
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Taiwan Feb exports -17.1% y/y vs -14% forecast in Reuters poll
Exports to China -30.2% y/y (previous month -33.5%)
Finance ministry expects March exports -16% to -19.5% y/y
Ministry sees export outlook weak into H1
Adds comments, details
TAIPEI, March 7 (Reuters) - Taiwan's exports in February fell annually for a sixth straight month to their lowest level in two years due to a deteriorating global economy, with the outlook remaining dim for at least the first half of the year.
Exports last month were down 17.1% by value from a year earlier at $31.05 billion, the lowest level in nearly 24 months, the Ministry of Finance said on Tuesday.
The data improved from a 21.2% annual drop seen in January, but lagged a Reuters poll forecast for a 14% contraction.
"Due to weak terminal demand, the momentum of global economic growth has weakened," the ministry said, though it added that now is traditionally the low season for exports.
Taiwan's total shipments of electronics components in February fell 17.8% from a year before to $12.94 billion, with semiconductor exports down 17.3%.
Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.
Smaller rival United Microelectronics Corp 2303.TW reported on Monday that its February sales had sunk 18.6% from a year before.
At $11.0 billion in February, Taiwan's exports to China, the island's largest trading partner, were down 30.2%, after showing a 33.5% annual drop in the previous month.
The finance ministry said global inflation and ongoing tightening of monetary policy in major economies would continue to weigh on external demand, coupled with other risks such as the war in Ukraine and China-U.S. trade tensions.
"The international economic outlook is conservative, and our exports will still be under considerable pressure in the first half of the year," it said, predicting that March exports could be 16% to 19.5% lower than a year earlier.
February's exports to the United States slipped 13.7%, after falling an annual 14.5% in the prior month.
Taiwan's February imports, often seen as a leading indicator of re-exports of finished products, fell 9.4% to $28.7 billion, also a nearly 24-month low. That compared with economists' forecast of a 9.8% fall and a 16.6% decline in January.
(Reporting by Roger Tung and Faith Hung; Editing by Bradley Perrett and Ben Blanchard)
((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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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. "Due to weak terminal demand, the momentum of global economic growth has weakened," the ministry said, though it added that now is traditionally the low season for exports. The finance ministry said global inflation and ongoing tightening of monetary policy in major economies would continue to weigh on external demand, coupled with other risks such as the war in Ukraine and China-U.S. trade tensions.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Taiwan Feb exports -17.1% y/y vs -14% forecast in Reuters poll Exports to China -30.2% y/y (previous month -33.5%) Finance ministry expects March exports -16% to -19.5% y/y Ministry sees export outlook weak into H1 Adds comments, details TAIPEI, March 7 (Reuters) - Taiwan's exports in February fell annually for a sixth straight month to their lowest level in two years due to a deteriorating global economy, with the outlook remaining dim for at least the first half of the year. Exports last month were down 17.1% by value from a year earlier at $31.05 billion, the lowest level in nearly 24 months, the Ministry of Finance said on Tuesday.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Taiwan Feb exports -17.1% y/y vs -14% forecast in Reuters poll Exports to China -30.2% y/y (previous month -33.5%) Finance ministry expects March exports -16% to -19.5% y/y Ministry sees export outlook weak into H1 Adds comments, details TAIPEI, March 7 (Reuters) - Taiwan's exports in February fell annually for a sixth straight month to their lowest level in two years due to a deteriorating global economy, with the outlook remaining dim for at least the first half of the year. At $11.0 billion in February, Taiwan's exports to China, the island's largest trading partner, were down 30.2%, after showing a 33.5% annual drop in the previous month.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Taiwan Feb exports -17.1% y/y vs -14% forecast in Reuters poll Exports to China -30.2% y/y (previous month -33.5%) Finance ministry expects March exports -16% to -19.5% y/y Ministry sees export outlook weak into H1 Adds comments, details TAIPEI, March 7 (Reuters) - Taiwan's exports in February fell annually for a sixth straight month to their lowest level in two years due to a deteriorating global economy, with the outlook remaining dim for at least the first half of the year. At $11.0 billion in February, Taiwan's exports to China, the island's largest trading partner, were down 30.2%, after showing a 33.5% annual drop in the previous month.
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16856.0
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2023-03-07 00:00:00 UTC
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Apple Unveils Yellow IPhone 14 And IPhone 14 Plus
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-yellow-iphone-14-and-iphone-14-plus
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nan
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nan
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(RTTNews) - Apple (AAPL) announced a new yellow iPhone 14 and iPhone 14 Plus. The company said these models have a durable Ceramic Shield front cover, an updated internal design for better sustained performance and easier repairs, and amazing battery life. iPhone 14 and iPhone 14 Plus now come in six colors: midnight, starlight, (PRODUCT)RED, blue, purple, and the all-new yellow.
The new yellow iPhone 14 and iPhone 14 Plus will be available to pre-order on March 10, with availability starting March 14.
Also, iPhone 14 and iPhone 14 Plus Silicone Cases will be available in four new colors: canary yellow, olive, sky, and iris.
The views and 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 (AAPL) announced a new yellow iPhone 14 and iPhone 14 Plus. The company said these models have a durable Ceramic Shield front cover, an updated internal design for better sustained performance and easier repairs, and amazing battery life. iPhone 14 and iPhone 14 Plus now come in six colors: midnight, starlight, (PRODUCT)RED, blue, purple, and the all-new yellow.
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(RTTNews) - Apple (AAPL) announced a new yellow iPhone 14 and iPhone 14 Plus. iPhone 14 and iPhone 14 Plus now come in six colors: midnight, starlight, (PRODUCT)RED, blue, purple, and the all-new yellow. The new yellow iPhone 14 and iPhone 14 Plus will be available to pre-order on March 10, with availability starting March 14.
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(RTTNews) - Apple (AAPL) announced a new yellow iPhone 14 and iPhone 14 Plus. iPhone 14 and iPhone 14 Plus now come in six colors: midnight, starlight, (PRODUCT)RED, blue, purple, and the all-new yellow. The new yellow iPhone 14 and iPhone 14 Plus will be available to pre-order on March 10, with availability starting March 14.
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(RTTNews) - Apple (AAPL) announced a new yellow iPhone 14 and iPhone 14 Plus. The company said these models have a durable Ceramic Shield front cover, an updated internal design for better sustained performance and easier repairs, and amazing battery life. iPhone 14 and iPhone 14 Plus now come in six colors: midnight, starlight, (PRODUCT)RED, blue, purple, and the all-new yellow.
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16857.0
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2023-03-06 00:00:00 UTC
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After Hours Most Active for Mar 6, 2023 : VALE, BAC, AMZN, QQQ, MRK, AAPL, IQ, MSFT, PFE, KO, ALIT, WDC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-6-2023-%3A-vale-bac-amzn-qqq-mrk-aapl-iq-msft-pfe-ko-alit
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -10.89 to 12,291.59. The total After hours volume is currently 79,432,799 shares traded.
The following are the most active stocks for the after hours session:
VALE S.A. (VALE) is -0.01 at $16.68, with 6,521,728 shares traded. VALE's current last sale is 87.79% of the target price of $19.
Bank of America Corporation (BAC) is unchanged at $34.09, with 3,492,820 shares traded. BAC's current last sale is 89.71% of the target price of $38.
Amazon.com, Inc. (AMZN) is -0.09 at $93.66, with 3,173,777 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.28. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.21 at $301.23, with 3,064,552 shares traded. This represents a 18.47% increase from its 52 Week Low.
Merck & Company, Inc. (MRK) is -0.09 at $111.01, with 2,632,264 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
Apple Inc. (AAPL) is -0.15 at $153.68, with 2,211,853 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 $1.43. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
iQIYI, Inc. (IQ) is +0.0604 at $7.65, with 1,819,482 shares traded. As reported by Zacks, the current mean recommendation for IQ is in the "buy range".
Microsoft Corporation (MSFT) is -0.02 at $256.85, with 1,791,083 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Pfizer, Inc. (PFE) is -0.0101 at $41.10, with 1,556,995 shares traded. PFE's current last sale is 82.2% of the target price of $50.
Coca-Cola Company (The) (KO) is -0.01 at $60.35, with 1,519,857 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".
Alight, Inc. (ALIT) is unchanged at $9.81, with 1,492,772 shares traded. As reported by Zacks, the current mean recommendation for ALIT is in the "buy range".
Western Digital Corporation (WDC) is unchanged at $37.78, with 1,388,099 shares traded. WDC's current last sale is 75.56% of the target price of $50.
The views and 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 -0.15 at $153.68, with 2,211,853 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.15 at $153.68, with 2,211,853 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.15 at $153.68, with 2,211,853 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.15 at $153.68, with 2,211,853 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 -10.89 to 12,291.59.
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16858.0
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2023-03-06 00:00:00 UTC
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US STOCKS-S&P 500 ends slightly higher ahead of Powell testimony, upcoming data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-slightly-higher-ahead-of-powell-testimony-upcoming-data
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nan
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nan
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By Sinéad Carew and Bansari Mayur Kamdar
March 6 (Reuters) - The S&P 500 made little progress on Monday, closing slightly lower than its session high as U.S. Treasury yields pulled higher with investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and the February jobs report.
Earlier in the session the indexes looked much stronger with the Nasdaq .IXIC up more than 1% at one point before gradually losing its gains. The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating.
But equities gave up earlier gains as yields on U.S. 10-year Treasury notes US10YT=RR and the 2-year Treasuries yield came back from an early declines after data showed new orders for U.S.-manufactured goods fell less than expected in January.
Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows.
"The market is in a holding pattern because this week will be key to shedding light on what's going on with the U.S. economy," said Irene Tunkel, chief U.S. equity strategist for
BCA Research in New York who will keep a close watch on February's U.S. non-farm payrolls report, due out Friday.
"People are worried about the jobs number and the economic data because they're worried about what the Fed will do. Ultimately all roads lead to the Fed."
And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
"The market pullback was because there is still a lot of work to do on inflation," said Cruz. "We're not seeing the type of demand slowdown we need to see. The whole point of the Fed hiking rates is to slow down the economy."
According to preliminary data, the S&P 500 .SPX gained 2.72 points, or 0.07%, to end at 4,048.36 points, while the Nasdaq Composite .IXIC lost 12.59 points, or 0.11%, to 11,676.41. The Dow Jones Industrial Average .DJI rose 38.69 points, or 0.12%, to 33,429.66.
The commodity-linked materials sector .SPLRCM was weak on Monday after China set a lower-than-expected target for economic growth this year at around 5%.
The three main U.S. stock indexes had rallied on Friday and notched weekly gains after comments from Fed policymakers calmed jitters around aggressive rate hikes.
But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
Investors will look for clues about the Fed's future rate hiking path when Powell testifies before Congress on Tuesday and Wednesday. Since Powell last spoke strong economic data and hotter than expected inflation have raised concerns the Fed will raise rates higher than expected or keep them higher for longer.
Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
Shares of cryptocurrency-related companies were volatile after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network and raised doubts about the company's ability to stay in business.
Correlation between S&P 500 and 2-year Treasury bond yieldshttps://tmsnrt.rs/3SVuPWU
20-day correlation of S&P 500 to two-year U.S. Treasury notehttps://tmsnrt.rs/3ydLhYO
(Reporting by Sinéad Carew, Sruthi Shankar, Bansari Mayur Kamdar and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi, Anil D'Silva and Richard Chang)
((sinead.carew@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 biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - The S&P 500 made little progress on Monday, closing slightly lower than its session high as U.S. Treasury yields pulled higher with investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and the February jobs report. "The market is in a holding pattern because this week will be key to shedding light on what's going on with the U.S. economy," said Irene Tunkel, chief U.S. equity strategist for BCA Research in New York who will keep a close watch on February's U.S. non-farm payrolls report, due out Friday.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - The S&P 500 made little progress on Monday, closing slightly lower than its session high as U.S. Treasury yields pulled higher with investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and the February jobs report. And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago. But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - The S&P 500 made little progress on Monday, closing slightly lower than its session high as U.S. Treasury yields pulled higher with investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and the February jobs report. The whole point of the Fed hiking rates is to slow down the economy."
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16859.0
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2023-03-06 00:00:00 UTC
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Time to Buy Apple, Alphabet, or Amazon Stock for More Upside?
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-apple-alphabet-or-amazon-stock-for-more-upside
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nan
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nan
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Many tech stocks have seen a strong start to 2023 with the Nasdaq up +11% year to date to top the broader S&P 500’s +5%.
This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Let’s see if it’s time to buy these tech giants’ stocks for 2023 and beyond.
Performance
With high inflation still prevalent in the current economic environment investors will want to monitor the valuation and premium they are paying for tech stocks. This is especially true after extended rallies as a higher inflationary environment is challenging for most technology companies.
Image Source: Zacks Investment Research
Still, Apple stock is up +18% this year with Amazon up +11% and Alphabet up +8% to all outperform the S&P 500 with only shares of GOOGL trailing the Nasdaq. Over the last decade, Apple’s +897% has led these big tech peers, but Amazon’s +583% and Alphabet’s +357% have also outperformed the broader indexes.
Image Source: Zacks Investment Research
Valuation
Despite Alphabet stock trailing the Nasdaq’s performance so far this year its valuation is more intriguing than Apple and Amazon from a price-to-earnings perspective. Alphabet stock trades at $95 and 17.6X forward earnings which is nicely below its industry average of 25X and the S&P 500’s 18.1X. Shares of GOOGL also trade 44% below its decade-long high of 31.6X and at a 29% discount to the median of 24.7X.
Image Source: Zacks Investment Research
Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. However, Apple trades on par with its industry average and below its decade high of 33.6X but above the median of 14.9X.
Amazon stock also trades above the benchmark’s P/E valuation at 65.1X forward earnings and $93 per share. Amazon does trade well below its own decade-long high of 612X and at a 31% discount to the median of 93.2X but well above its industry average of 32.2X.
EPS Growth
Along with valuation, monitoring the growth of Apple, Alphabet, and Amazon will be important at their mature stages in corporate life.
To that note, Apple stock stands out sporting an “A” Zacks Style Scores grade for Growth and a higher EPS figure projected in its outlook than Alphabet and Amazon. Apple’s fiscal 2023 earnings are projected to dip -1% this year but rebound and jump 10% in FY24 at $6.68 per share. More impressive, fiscal 2024 would represent 125% EPS growth over the last five years with 2019 earnings at $2.97 per share.
Image Source: Zacks Investment Research
Alphabet and Amazon’s outlooks are attractive in their own right, with both carrying a “B” Style Scores grade for Growth. Alphabet’s earnings are expected to rise 12% in FY23 and leap another 21% in FY24 at $6.19 per share. Fiscal 2024 would represent 140% EPS growth over the last five years with 2019 earnings at $2.58 per share.
Image Source: Zacks Investment Research
Lastly, Amazon’s earnings are forecasted to climb 89% this year and jump another 59% in FY24 at $2.13 per share. Fiscal 2024 would represent 85% growth over the last five years with 2019 EPS at $1.15.
Image Source: Zacks Investment Research
Bottom Line
Apple, Alphabet, and Amazon stock all land a Zacks Rank #3 (Hold) at the moment. Despite broader economic concerns still very much prevalent and strenuous on technology companies, their stocks trade attractively relative to their past from a P/E valuation standpoint along with solid EPS growth expected.
For now, holding on to these unique and innovative tech giants at their current levels could be rewarding long-term especially when looking at their historical performances.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X.
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Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16860.0
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2023-03-06 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-9
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $153.83, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 2.25% over the past month, outpacing the Computer and Technology sector's loss of 3.15% and lagging the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Apple as it approaches its next earnings release. In that report, analysts expect Apple to post earnings of $1.44 per share. This would mark a year-over-year decline of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $93.35 billion, down 4.04% 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 $392.12 billion. These totals would mark changes of -1.15% and -0.56%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.7% lower. 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 24.99. Its industry sports an average Forward P/E of 8.7, so we one might conclude that Apple is trading at a premium comparatively.
We can also see that AAPL currently has a PEG ratio of 2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAPL's industry 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 187, which puts it in the bottom 26% 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $153.83, moving +1.85% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2. AAPL's industry had an average PEG ratio of 2.59 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $153.83, moving +1.85% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2. AAPL's industry had an average PEG ratio of 2.59 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $153.83, moving +1.85% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2. AAPL's industry had an average PEG ratio of 2.59 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $153.83, moving +1.85% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2. AAPL's industry had an average PEG ratio of 2.59 as of yesterday's close.
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16861.0
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2023-03-06 00:00:00 UTC
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US STOCKS-S&P 500 barely gains ahead of Powell testimony, jobs report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-barely-gains-ahead-of-powell-testimony-jobs-report
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nan
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nan
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By Sinéad Carew and Bansari Mayur Kamdar
March 6 (Reuters) - The S&P 500 .SPX closed barely higheron Monday, giving up most of its earlier gains as investors were cautious ahead of this week's testimony from Federal Reserve Chair Jerome Powell and the closely watched U.S. jobs report.
Earlier in the session the indexes looked much stronger with the Nasdaq .IXIC gaining more than 1% before closing lower. The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating.
But equities gaveup earlier gains as yields on U.S. 10-year Treasury notes US10YT=RR and the 2-year Treasuries yield came back from early declines after data showed new orders for U.S.-manufactured goods fell less than expected in January.
Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows.
"The market is in a holding pattern because this week will be key to shedding light on what's going on with the U.S. economy," said Irene Tunkel, chief U.S. equity strategist for
BCA Research in New York, who plans to keep a close watch on February's U.S. non-farm payrolls report, due out Friday.
"People are worried about the jobs number and the economic data because they're worried about what the Fed will do. Ultimately all roads lead to the Fed."
And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
"The market pullback was because there is still a lot of work to do on inflation," said Cruz. "We're not seeing the type of demand slowdown we need to see. The whole point of the Fed hiking rates is to slow down the economy."
The Dow Jones Industrial Average .DJI rose 40.47 points, or 0.12%, to 33,431.44; the S&P 500 .SPX gained 2.78 points, or 0.07%, at 4,048.42; and the Nasdaq Composite .IXIC dropped 13.27 points, or 0.11%, to 11,675.74.
Among the S&P's 11 major industry sectors, six ended the day higher. The commodity-linked materials sector .SPLRCM was the biggest decliner, falling 1.7%, after China set a lower-than-expected target for economic growth this year at around 5%.
The technology sector .SPLRCT was the top gainer, with the biggest lift from Apple, which closed up 1.9%. Other strong boosts came from Microsoft Corp MSFT.O, which added 0.6%, and Google parent Alphabet Inc GOOGL.O, which rose 1.6%.
The three main U.S. stock indexes had rallied on Friday and notched weekly gains after comments from Fed policymakers calmed jitters around aggressive rate hikes.
But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
Investors will look for clues about the Fed's future rate hiking path when Powell testifies before Congress on Tuesday and Wednesday. Since Powell last spoke strong economic data and hotter than expected inflation have raised concerns the Fed will raise rates higher than expected or keep them higher for longer.
Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
Shares of cryptocurrency-related companies were volatile after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network and raised doubts about the company's ability to stay in business. Silvergate shares closed down 6.2% while crypto bank peer Signature Bank SBNY.O fell 2.5%.
Declining issues outnumbered advancers on the NYSE by a 1.69-to-1 ratio; on Nasdaq, a 1.94-to-1 ratio favored decliners.
The S&P 500 posted 20 new 52-week highs and one new low; the Nasdaq Composite recorded 85 new highs and 92 new lows.
On U.S. exchanges 10.57 billion shares changed hands compared with the 10.98 billion moving average for the last 20 sessions.
Correlation between S&P 500 and 2-year Treasury bond yieldshttps://tmsnrt.rs/3SVuPWU
20-day correlation of S&P 500 to two-year U.S. Treasury notehttps://tmsnrt.rs/3ydLhYO
(Reporting by Sinéad Carew, Sruthi Shankar, Bansari Mayur Kamdar and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi, Anil D'Silva and Richard Chang)
((sinead.carew@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 biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. "The market is in a holding pattern because this week will be key to shedding light on what's going on with the U.S. economy," said Irene Tunkel, chief U.S. equity strategist for BCA Research in New York, who plans to keep a close watch on February's U.S. non-farm payrolls report, due out Friday. And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - The S&P 500 .SPX closed barely higheron Monday, giving up most of its earlier gains as investors were cautious ahead of this week's testimony from Federal Reserve Chair Jerome Powell and the closely watched U.S. jobs report. And with potential Fed rate hikes their key concern, Monday's data had already dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - The S&P 500 .SPX closed barely higheron Monday, giving up most of its earlier gains as investors were cautious ahead of this week's testimony from Federal Reserve Chair Jerome Powell and the closely watched U.S. jobs report. But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
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The biggest boost had come from iPhone maker Apple Inc AAPL.O after Goldman Sachs initiated coverage with a "buy" rating. The whole point of the Fed hiking rates is to slow down the economy." The technology sector .SPLRCT was the top gainer, with the biggest lift from Apple, which closed up 1.9%.
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16862.0
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2023-03-06 00:00:00 UTC
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US STOCKS-Wall St climbs as lower Treasury yields lift megacap stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-lower-treasury-yields-lift-megacap-stocks
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nan
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nan
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By Sruthi Shankar and Bansari Mayur Kamdar
March 6 (Reuters) - U.S. stock indexes rose on Monday as Treasury yields pulled back further ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates.
Rate-sensitive megacap stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Meta Platforms META.O were the top boosts to the S&P 500 and the Nasdaq as the yield on U.S. 10-year Treasury notes US10YT=RR slipped to its lowest since March 1 at 3.91%.
The two-year yield US2YT=RR inched down to 4.85% after touching its highest since 2007 last week. US/
Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows.
The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
Powell will testify before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
"Investors are bracing for Powell's comments tomorrow and I don't think he's going to say very much from what he has been saying all along. The Fed has been basically setting the stage for further rate hikes, perhaps beyond May and the market is well aware of that," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
U.S. stocks have turned quite volatile in recent weeks after a strong performance at the start of this year as investors factor in the possibility of rates remaining higher for longer. The benchmark S&P 500 .SPX is up 5.4% so far this year after a 19.4% plunge in 2022.
Investors are awaiting factory orders data for January, due at 10:00 a.m. ET, to assess the impact of higher rates on the manufacturing sector.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 58.51 points, or 0.18%, at 33,449.48, the S&P 500 .SPX was up 9.61 points, or 0.24%, at 4,055.25, and the Nasdaq Composite .IXIC was up 32.73 points, or 0.28%, at 11,721.74.
Shares of Apple climbed 1.9% after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating.
U.S.-listed shares of Chinese companies Alibaba BABA.N and PDD Holdings PDD.O slipped 0.9% and 2.7%, respectively, after China set a modest annual economic growth target of about 5%, below market expectations of 5.5%-plus growth.
Shares of cryptocurrency-related companies fell after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network, after raising doubts on the company's ability to stay in business. The California-based bank slid 10.4%, while peer Signature Bank SBNY.O declined 1.7%.
Advancing issues outnumbered decliners by a 1.06-to-1 ratio on the NYSE, while decliners outnumbered advancers for a 1.17-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 55 new highs and 22 new lows.
(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Meta Platforms META.O were the top boosts to the S&P 500 and the Nasdaq as the yield on U.S. 10-year Treasury notes US10YT=RR slipped to its lowest since March 1 at 3.91%. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes rose on Monday as Treasury yields pulled back further ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
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Rate-sensitive megacap stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Meta Platforms META.O were the top boosts to the S&P 500 and the Nasdaq as the yield on U.S. 10-year Treasury notes US10YT=RR slipped to its lowest since March 1 at 3.91%. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes rose on Monday as Treasury yields pulled back further ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. Powell will testify before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
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Rate-sensitive megacap stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Meta Platforms META.O were the top boosts to the S&P 500 and the Nasdaq as the yield on U.S. 10-year Treasury notes US10YT=RR slipped to its lowest since March 1 at 3.91%. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes rose on Monday as Treasury yields pulled back further ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
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Rate-sensitive megacap stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Meta Platforms META.O were the top boosts to the S&P 500 and the Nasdaq as the yield on U.S. 10-year Treasury notes US10YT=RR slipped to its lowest since March 1 at 3.91%. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes rose on Monday as Treasury yields pulled back further ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. Powell will testify before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
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16863.0
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2023-03-06 00:00:00 UTC
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Dow Movers: BA, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-ba-aapl-0
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nan
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nan
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In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. Year to date, Apple registers a 18.3% gain.
And the worst performing Dow component thus far on the day is Boeing, trading down 1.2%. Boeing is showing a gain of 11.5% looking at the year to date performance.
Two other components making moves today are Dow, trading down 1.1%, and Merck, trading up 1.3% on the day.
VIDEO: Dow Movers: BA, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.2%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. Year to date, Apple registers a 18.3% gain.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.2%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Boeing, trading down 1.2%. Boeing is showing a gain of 11.5% looking at the year to date performance.
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16864.0
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2023-03-06 00:00:00 UTC
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Technology Sector Update for 03/06/2023: RUM, CIEN, AAPL, NVEE
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-06-2023%3A-rum-cien-aapl-nvee
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nan
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nan
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Technology stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%.
In company news, Rumble (RUM) rose 10% amid a strong advance for several social media companies after US Sen. Mark Warner (D-Va.) reportedly said he will introduce a bipartisan measure this week that would allow the federal government to "ban or prohibit" foreign-owned technology like TikTok.
Ciena (CIEN) gained 3.9% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue.
Apple (AAPL) added 1.8% after Goldman Sachs began coverage of the tech giant with a buy stock rating.
To the downside, NV5 Global (NVEE) was slipping 2.3% after Monday saying its Axim Geospatial subsidiary has received contracts worth $9 million from the US Department of Defense and other federal intelligence agencies.
The views and 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) added 1.8% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Ciena (CIEN) gained 3.9% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue. To the downside, NV5 Global (NVEE) was slipping 2.3% after Monday saying its Axim Geospatial subsidiary has received contracts worth $9 million from the US Department of Defense and other federal intelligence agencies.
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Apple (AAPL) added 1.8% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. To the downside, NV5 Global (NVEE) was slipping 2.3% after Monday saying its Axim Geospatial subsidiary has received contracts worth $9 million from the US Department of Defense and other federal intelligence agencies.
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Apple (AAPL) added 1.8% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. In company news, Rumble (RUM) rose 10% amid a strong advance for several social media companies after US Sen. Mark Warner (D-Va.) reportedly said he will introduce a bipartisan measure this week that would allow the federal government to "ban or prohibit" foreign-owned technology like TikTok.
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Apple (AAPL) added 1.8% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. In company news, Rumble (RUM) rose 10% amid a strong advance for several social media companies after US Sen. Mark Warner (D-Va.) reportedly said he will introduce a bipartisan measure this week that would allow the federal government to "ban or prohibit" foreign-owned technology like TikTok.
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16865.0
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2023-03-06 00:00:00 UTC
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Technology Sector Update for 03/06/2023: CIEN, AAPL, NVEE
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-03-06-2023%3A-cien-aapl-nvee
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nan
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nan
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Technology stocks were advancing Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%.
In company news, Ciena (CIEN) gained 5.1% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue.
Apple (AAPL) added 2.7% after Goldman Sachs began coverage of the tech giant with a buy stock rating.
NV5 Global (NVEE) was slipping 1.3% after saying its Axim Geospatial unit has received contracts worth $9 million from the US intelligence agencies and the Department of Defense.
The views and 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) added 2.7% after Goldman Sachs began coverage of the tech giant with a buy stock rating. In company news, Ciena (CIEN) gained 5.1% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue. NV5 Global (NVEE) was slipping 1.3% after saying its Axim Geospatial unit has received contracts worth $9 million from the US intelligence agencies and the Department of Defense.
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Apple (AAPL) added 2.7% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. In company news, Ciena (CIEN) gained 5.1% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue.
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Apple (AAPL) added 2.7% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. In company news, Ciena (CIEN) gained 5.1% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue.
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Apple (AAPL) added 2.7% after Goldman Sachs began coverage of the tech giant with a buy stock rating. Technology stocks were advancing Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% while the Philadelphia Semiconductor Index was slipping 0.1%. In company news, Ciena (CIEN) gained 5.1% after the networking equipment and software firm beat Wall Street expectations with its fiscal Q1 earnings and revenue.
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16866.0
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2023-03-06 00:00:00 UTC
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Why Apple Stock Popped on Monday
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-popped-on-monday
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) stock popped on Monday morning, up 3.1% through 11:15 a.m. ET -- but why Apple popped is owing to something that happened on Sunday. Specifically, last night, investment bank Goldman Sachs announced it was initiating coverage of the tech giant with a buy rating and a price target that looks as if it should be on a for-sale sign: "$199."
And even though 45 analysts already cover Apple, according to S&P Global Market Intelligence -- and even though 34 of them already say Apple is a buy -- investors are sitting up and taking notice...that Goldman Sachs has finally noticed Apple.
So what
So what exactly has Goldman Sachs noticed about Apple that makes this banker think it's a buy? At its core, Goldman's note focuses on the fact that a lot of people own Apple products. There are currently 1.1 billion active iPhones alone out in the world, reports StreetInsider.com, and that doesn't even count all the Apple-branded computers, smartwatches, and other tech gizmos in existence.
Goldman points to this "growing installed base of users" as its primary reason for optimism about Apple stock. Some might argue that a lot of people owning iPhones already means there's less room for Apple to grow its market share. But Goldman counters that the large installed base of Apple productions reduces customer churn (because Apple fans are loath to switch brands), even as it lowers customer acquisition costs when Apple wants to sell upgraded iPhones or launch new products and services.
In the analysts' view, these advantages will "more than offset cyclical headwinds to product revenue."
Now what
As for how Apple will grow specifically, Goldman is focusing primarily on Apple's ability to sell more services to use on its devices. From 33% currently, the banker expects Apple will grow services' percentage of Apple's gross profit to 40% over the next five years.
Why is this important? Well, consider that Apple's services revenue in 2022 made up only 20% of all Apple revenue. Yet these services generated 33% of gross profits. This means that services revenue generates above-average profit margins for Apple. It also means that the shortest path to growing overall profits is to grow services revenue -- and that if services revenue grows, then profits will grow even faster.
Granted, even assuming Goldman is right and Apple does grow as fast as analysts expect -- with 11% profits growth on average over the next five years -- there's still the question of whether this is fast enough to justify the stock price. After all, Apple stock does cost more than 25 times earnings today, giving it a PEG ratio of 2.3.
Personally, I find that a bit pricey for my taste. But as of today, Goldman Sachs -- like the majority of analysts on Wall Street -- think it's plenty cheap to rate Apple stock a buy.
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Rich Smith 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) stock popped on Monday morning, up 3.1% through 11:15 a.m. Specifically, last night, investment bank Goldman Sachs announced it was initiating coverage of the tech giant with a buy rating and a price target that looks as if it should be on a for-sale sign: "$199." There are currently 1.1 billion active iPhones alone out in the world, reports StreetInsider.com, and that doesn't even count all the Apple-branded computers, smartwatches, and other tech gizmos in existence.
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What happened Shares of Apple (NASDAQ: AAPL) stock popped on Monday morning, up 3.1% through 11:15 a.m. From 33% currently, the banker expects Apple will grow services' percentage of Apple's gross profit to 40% over the next five years. It also means that the shortest path to growing overall profits is to grow services revenue -- and that if services revenue grows, then profits will grow even faster.
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What happened Shares of Apple (NASDAQ: AAPL) stock popped on Monday morning, up 3.1% through 11:15 a.m. And even though 45 analysts already cover Apple, according to S&P Global Market Intelligence -- and even though 34 of them already say Apple is a buy -- investors are sitting up and taking notice...that Goldman Sachs has finally noticed Apple. But Goldman counters that the large installed base of Apple productions reduces customer churn (because Apple fans are loath to switch brands), even as it lowers customer acquisition costs when Apple wants to sell upgraded iPhones or launch new products and services.
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What happened Shares of Apple (NASDAQ: AAPL) stock popped on Monday morning, up 3.1% through 11:15 a.m. It also means that the shortest path to growing overall profits is to grow services revenue -- and that if services revenue grows, then profits will grow even faster. But as of today, Goldman Sachs -- like the majority of analysts on Wall Street -- think it's plenty cheap to rate Apple stock a buy.
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16867.0
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2023-03-06 00:00:00 UTC
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2 Robinhood Stocks With Market-Beating Potential
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AAPL
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https://www.nasdaq.com/articles/2-robinhood-stocks-with-market-beating-potential-5
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nan
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nan
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Robinhood Markets (NASDAQ: HOOD) is considered by some to be a platform for trading speculative meme stocks and cryptocurrencies. That's why it isn't surprising that its own investor index of popular stocks on the platform counts AMC Entertainment and GameStop as two of its 10 most-owned stocks.
Yet Robinhood's top-10 list also includes blue chip tech stocks like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN),. These two tech stocks are trading down about 7% and 35%, respectively, over the past 12 months. Investors (whether in Robinhood or not) dumped both stocks as rising interest rates crushed the tech sector, but I believe these two stocks could still bounce back and outperform the market this year.
Image source: Getty Images.
1. Apple is ripe for a comeback
Apple's revenue soared 33% in fiscal 2021 (which ended in September 2021) after it launched its first family of 5G-capable iPhones. Its iPhone sales jumped 39%, and all of its other business segments reported positive growth. Its EPS grew 71%, partly driven by its $86 billion in buybacks throughout the year.
But in fiscal 2022, its revenue and EPS only rose 8% and 9%, respectively, as its iPhone sales grew a mere 7%. That slowdown was caused by a cooler market reception for the iPhone 13, which only seemed like an incremental upgrade instead of a crucial one for 5G networks. But it still repurchased $89 billion in shares throughout the year.
Apple's slowdown worsened this year with its sluggish sales of the iPhone 14, which was exacerbated by protests and disruptions at Foxconn's largest iPhone plant in China last November. The strengthening dollar, which was buoyed by rising interest rates, further reduced its overseas revenue. As a result, its revenue and EPS declined 5% and 10% year over year, respectively, in the first quarter of fiscal 2023. Analysts expect its revenue and EPS to both decline 2% for the full year.
That situation seems dire, but Apple was still sitting on $165 billion in cash and marketable securities at the end of the first quarter, so it still has plenty of room for more buybacks, dividend hikes, and acquisitions. It also hosted 935 million paid subscribers across its entire ecosystem -- which gives it a firm foundation for launching new products and services.
Apple's growth will likely accelerate again after it weathers this cyclical slowdown, and it's expected to launch its eagerly anticipated mixed reality glasses in the near future. Therefore, its stock still looks reasonably valued at 25 times forward earnings, and it should continue to outperform the tech sector's more speculative stocks as the bear market drags on.
2. Amazon will survive the macro headwinds
Amazon's revenue rose 22% in 2021. Its e-commerce business benefited from the pandemic and stimulus-induced tailwinds, while its cloud infrastructure services profited from the elevated usage of cloud-based services. Its EPS also increased by 55%. But in 2022, its revenue only rose 9% as it lapped those temporary tailwinds. It also posted a net loss for the full year, mainly due to the shrinking value of its equity stake in the electric vehicle maker Rivian.
This year, Amazon's e-commerce and cloud businesses will both face tough macro headwinds. Its e-commerce sales are cooling off as inflation curbs consumer spending on discretionary goods, while its cloud growth is decelerating as companies rein in spending. As a result, analysts expect its revenue to rise just 8% in 2023. It's expected to return to profitability this year, but that will depend heavily on Rivian's ability to recover from its year of disappointing developments.
Amazon's near-term outlook seems grim, but its growth could quickly accelerate again if the macroeconomic environment improves. It's already locked in more than 200 million paid Prime members worldwide, and Amazon Web Services (AWS) is still the world's largest cloud infrastructure platform. Its margins should also continue to rise as it expands its higher-margin third-party marketplace and tethers more merchants to its advertising businesses. It's also been laying off employees, automating its warehouses, and executing other aggressive cost-cutting efforts to stabilize its operating margins.
Amazon was sitting on $70 billion in cash, cash equivalents, and marketable securities at the end of 2022, which still gives it ample room to expand its e-commerce and cloud businesses with acquisitions. Amazon might not initially seem cheap at 58 times forward earnings, but that multiple could cool off quickly as its profits bounce back. In terms of its top-line growth, its stock looks fairly cheap at less than 2 times this year's sales.
These two Robinhood stocks are worth buying
I'd never tell anyone to buy a meme stock like AMC or GameStop, but I'd easily recommend Apple and Amazon -- which together still account for 13% of my own portfolio -- as long-term investments. These tech giants won't generate multibagger gains anytime soon, but they're both reliable core holdings that can offset the volatility of your riskier investments.
10 stocks we like better than Apple
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*Stock Advisor returns as of February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com 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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Yet Robinhood's top-10 list also includes blue chip tech stocks like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN),. That situation seems dire, but Apple was still sitting on $165 billion in cash and marketable securities at the end of the first quarter, so it still has plenty of room for more buybacks, dividend hikes, and acquisitions. It's already locked in more than 200 million paid Prime members worldwide, and Amazon Web Services (AWS) is still the world's largest cloud infrastructure platform.
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Yet Robinhood's top-10 list also includes blue chip tech stocks like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN),. Therefore, its stock still looks reasonably valued at 25 times forward earnings, and it should continue to outperform the tech sector's more speculative stocks as the bear market drags on. Amazon was sitting on $70 billion in cash, cash equivalents, and marketable securities at the end of 2022, which still gives it ample room to expand its e-commerce and cloud businesses with acquisitions.
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Yet Robinhood's top-10 list also includes blue chip tech stocks like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN),. Investors (whether in Robinhood or not) dumped both stocks as rising interest rates crushed the tech sector, but I believe these two stocks could still bounce back and outperform the market this year. These two Robinhood stocks are worth buying I'd never tell anyone to buy a meme stock like AMC or GameStop, but I'd easily recommend Apple and Amazon -- which together still account for 13% of my own portfolio -- as long-term investments.
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Yet Robinhood's top-10 list also includes blue chip tech stocks like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN),. Investors (whether in Robinhood or not) dumped both stocks as rising interest rates crushed the tech sector, but I believe these two stocks could still bounce back and outperform the market this year. As a result, its revenue and EPS declined 5% and 10% year over year, respectively, in the first quarter of fiscal 2023.
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16868.0
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2023-03-06 00:00:00 UTC
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US STOCKS-Wall St pares gains with Powell testimony, upcoming data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-pares-gains-with-powell-testimony-upcoming-data-in-focus
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
China's 5% growth target drag on ADRs, commodity shares
Apple rises as Goldman begins coverage with 'buy'
Crypto stocks fall as Silvergate suspends payments network
Factory orders fall in January
Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.27%
Updates prices, adds commentary, byline
By Sinéad Carew and Bansari Mayur Kamdar
March 6 (Reuters) - Wall Street's major indexes pared early gains on Monday and U.S. Treasury yields rose as investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and economic data including the jobs report.
But equities lost earlier gains as yields on U.S. 10-year Treasury notes US10YT=RRrebounded from an early decline after data showed new orders for U.S.-manufactured goods fell less than expected in January. Higher orders for machinery and a range of other products pointed to manufacturing regaining its footing, although civilian aircraft bookings fell. US/
Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows.
Monday's data likely dampened investor enthusiasm, said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
"The market pullback was because there is still a lot of work to do on inflation," said Cruz. "We're not seeing the type of demand slowdown we need to see. The whole point of the Fed hiking rates is to slow down the economy."
The Dow Jones Industrial Average .DJI rose 45.24 points, or 0.14%, to 33,436.21; the S&P 500 .SPX gained 10.67 points, or 0.26%, at 4,056.31; and the Nasdaq Composite .IXIC added 31.23 points, or 0.27%, at 11,720.23.
Six of 11 major S&P 500 sectors rose. But the commodity-linked materials sector .SPLRCM led decliners after China set a lower-than-expected target for economic growth this year at around 5%.
The technology sector .SPLRCT was the top gainer, with the biggest boost from Apple followed by Microsoft Corp MSFT.O and Google parent Alphabet Inc GOOGL.O.
The three main U.S. stock indexes had rallied on Friday and notched weekly gains after comments from Fed policymakers calmed jitters around aggressive rate hikes.
But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
Investors will look for clues about the Fed's future rate hiking path when Powell testifies before Congress on Tuesday and Wednesday. Since Powell last spoke strong economic data and hotter than expected inflation have raised concerns the Fed will raise rates higher than expected or keep them higher for longer.
Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
Shares of cryptocurrency-related companies fell after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network, raising doubts about the company's ability to stay in business. The California-based bank, which was last up 1% at $5.84, had fallen as low as $5.11. Its cryto peer Signature Bank SBNY.O was down almost 2%.
Declining issues outnumbered advancers on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favored decliners.
The S&P 500 posted 20 new 52-week highs and one new low; the Nasdaq Composite recorded 74 new highs and 71 new lows.
Correlation between S&P 500 and 2-year Treasury bond yieldshttps://tmsnrt.rs/3SVuPWU
(Reporting by Sinéad Carew, Sruthi Shankar, Bansari Mayur Kamdar and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi, Anil D'Silva and Richard Chang)
((sinead.carew@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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China's 5% growth target drag on ADRs, commodity shares Apple rises as Goldman begins coverage with 'buy' Crypto stocks fall as Silvergate suspends payments network Factory orders fall in January Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.27% Updates prices, adds commentary, byline By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - Wall Street's major indexes pared early gains on Monday and U.S. Treasury yields rose as investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and economic data including the jobs report. But equities lost earlier gains as yields on U.S. 10-year Treasury notes US10YT=RRrebounded from an early decline after data showed new orders for U.S.-manufactured goods fell less than expected in January. But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December.
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China's 5% growth target drag on ADRs, commodity shares Apple rises as Goldman begins coverage with 'buy' Crypto stocks fall as Silvergate suspends payments network Factory orders fall in January Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.27% Updates prices, adds commentary, byline By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - Wall Street's major indexes pared early gains on Monday and U.S. Treasury yields rose as investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and economic data including the jobs report. Since Powell last spoke strong economic data and hotter than expected inflation have raised concerns the Fed will raise rates higher than expected or keep them higher for longer. Correlation between S&P 500 and 2-year Treasury bond yieldshttps://tmsnrt.rs/3SVuPWU (Reporting by Sinéad Carew, Sruthi Shankar, Bansari Mayur Kamdar and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi, Anil D'Silva and Richard Chang) ((sinead.carew@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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China's 5% growth target drag on ADRs, commodity shares Apple rises as Goldman begins coverage with 'buy' Crypto stocks fall as Silvergate suspends payments network Factory orders fall in January Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.27% Updates prices, adds commentary, byline By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - Wall Street's major indexes pared early gains on Monday and U.S. Treasury yields rose as investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and economic data including the jobs report. But San Francisco Federal Reserve Bank President Mary Daly said on Saturday that if inflation and labor market data continue to come in hotter than expected, interest rates would need to go higher and stay there longer than Fed policymakers had projected in December. Since Powell last spoke strong economic data and hotter than expected inflation have raised concerns the Fed will raise rates higher than expected or keep them higher for longer.
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China's 5% growth target drag on ADRs, commodity shares Apple rises as Goldman begins coverage with 'buy' Crypto stocks fall as Silvergate suspends payments network Factory orders fall in January Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.27% Updates prices, adds commentary, byline By Sinéad Carew and Bansari Mayur Kamdar March 6 (Reuters) - Wall Street's major indexes pared early gains on Monday and U.S. Treasury yields rose as investors braced for this week's testimony from Federal Reserve Chair Jerome Powell and economic data including the jobs report. The whole point of the Fed hiking rates is to slow down the economy." Six of 11 major S&P 500 sectors rose.
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16869.0
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2023-03-06 00:00:00 UTC
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Better Buy: Amazon Stock vs. Apple Stock
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-amazon-stock-vs.-apple-stock
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nan
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nan
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the world's leading tech companies, with market caps at $961 billion and $2.35 trillion, respectively. These companies have competed in consumer tech and, more recently, streaming.
A sell-off in 2022 led Amazon and Apple's stocks to tumble, with both companies' shares still down year over year. As a result, now is an excellent time to consider adding one of these tech giants to your portfolio. Amazon's leading market share in e-commerce and cloud computing will likely see it flourish over the long term. Meanwhile, Apple's dominating position in consumer tech and digital services has offered reliable growth over the long term.
So, is Amazon or Apple's stock the better buy? Let's assess.
Amazon: Waiting out economic headwinds
In fiscal 2022, Amazon's e-commerce business was hit particularly hard, with operating losses in its North American and international segments totaling $10.6 billion. Rising inflation triggered reductions in consumer spending and effectively made the segments responsible for 84% of Amazon's revenue unprofitable.
However, the economically challenging environment will not last forever, and the company's leading 37.8% e-commerce market share in the U.S. will likely pay off in the long term. According to Statista, e-commerce sales earned $5.2 trillion worldwide in 2021, with that figure expected to reach $8.1 trillion by 2026, rising 53.8%.
Meanwhile, AP News reported on Feb. 14 that inflation had eased for the seventh month in a row in January, hitting 6.4% after a high of 9.1% in June 2022.
It might not be this year, but Amazon's e-commerce segment will more than likely return to profitability. In the meantime, the company's cloud computing service, Amazon Web Services (AWS), has done a nice job at keeping profits up. The cloud platform earned 100% of the company's $12.25 billion in total operating income in 2022. AWS also showed promise after a revenue rise of 28.8% year over year to $80.1 billion.
It will take time for Amazon to return to its pre-2022 form. However, its long-term outlook makes its stock an attractive buy after a sell-off.
Apple: Shifts in its iPhone strategy
Toward the end of 2022, Apple concerned investors after a spike in COVID-19 cases in China caused production strains at the factory producing about 70% of all iPhones. The issues made critics question Apple's reliance on China for manufacturing, as iPhones earned 52% of the company's total revenue in fiscal 2022.
However, Apple is taking promising steps to boost its smartphone revenue over the long term and safeguard its cash cow. The company is gradually increasing the number of its products made in countries like India and Taiwan. Meanwhile, on March 3, Bloomberg reported that Foxconn Technology Group, also known as Hon Hai Precision Industry and the owner of the factories producing most iPhones, will invest $700 million to ramp up Apple product manufacturing in India.
In addition to moving out of China, Apple is reportedly in the process of improving the profit margins for its iPhones by using more in-house components. Bloomberg revealed in January that the company plans to move away from costly partnerships with Samsung and LG by developing custom displays for its smartphones, taking a similar approach with telecom chips and its reliance on companies like Broadcom and Qualcomm.
Amazon and Apple have positive outlooks over the long term. However, Amazon stock's decline of 49.6% throughout 2022 compared to Apple's stock tumble of 26.8% has put the iPhone company in better standing. Amazon's business suffered far worse amid economic challenges, with its free cash flow at a negative $16.9 billion, while Apple's is $97.5 billion.
Moreover, Amazon's forward price-to-earnings ratio of 77.1 against Apple's 25.6 suggests the MacBook manufacturer's shares offer far more value. As a result, Apple's stock is currently the better buy, with Amazon still a great option to hold over many years.
10 stocks we like better than Amazon.com
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has positions in LG Display. The Motley Fool has positions in and recommends Amazon.com, Apple, and Qualcomm. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the world's leading tech companies, with market caps at $961 billion and $2.35 trillion, respectively. Rising inflation triggered reductions in consumer spending and effectively made the segments responsible for 84% of Amazon's revenue unprofitable. The issues made critics question Apple's reliance on China for manufacturing, as iPhones earned 52% of the company's total revenue in fiscal 2022.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the world's leading tech companies, with market caps at $961 billion and $2.35 trillion, respectively. In the meantime, the company's cloud computing service, Amazon Web Services (AWS), has done a nice job at keeping profits up. The issues made critics question Apple's reliance on China for manufacturing, as iPhones earned 52% of the company's total revenue in fiscal 2022.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the world's leading tech companies, with market caps at $961 billion and $2.35 trillion, respectively. A sell-off in 2022 led Amazon and Apple's stocks to tumble, with both companies' shares still down year over year. However, Amazon stock's decline of 49.6% throughout 2022 compared to Apple's stock tumble of 26.8% has put the iPhone company in better standing.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the world's leading tech companies, with market caps at $961 billion and $2.35 trillion, respectively. It might not be this year, but Amazon's e-commerce segment will more than likely return to profitability. As a result, Apple's stock is currently the better buy, with Amazon still a great option to hold over many years.
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16870.0
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2023-03-06 00:00:00 UTC
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Stock pickers reckon it's time to move on from central banks
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AAPL
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https://www.nasdaq.com/articles/stock-pickers-reckon-its-time-to-move-on-from-central-banks
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nan
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nan
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By Naomi Rovnick
LONDON, March 6 (Reuters) - Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back.
Hopes for interest rate cuts by year-end have evaporated, given resilient data and sticky inflation, suggesting central banks will instead be inclined to keep borrowing costs around their highest since 2007 for some time.
The take away for money managers? Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation.
Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured.
"For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower.
"We are rapidly transitioning away from that."
VALUE IS BACK
European banking stocks .SX7E, considered a deep value investment because of relatively low price-to-earnings ratios and higher dividend yields, have jumped 24% this year.
Global equity income funds had their first annual net inflows last year since 2014, according to Morningstar data, a trend that has continued into 2023.
Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
The Nasdaq .IXIC is still up about 12% year-to-date and a sub-index of European tech stocks has gained 15% .SX8P. Still, these rallies lost steam from February with a build-up of strong U.S. jobs and consumer data and as euro zone inflation stayed high.
ALL CHANGE
With policymakers prioritising the inflation fight and money markets pricing U.S. rates moving above 5% this year, the door on rate cuts soon has been shut.
"We're going back to what investing used to be," he said. "It is a good environment for stock-picking."
Neil Birrell, chief investment officer at UK asset manager Premier Miton, said his funds were adding to positions in energy companies and banks, among the clear winners of the last six months.
It's a contrast to recent years. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
The Nasdaq soared 44% in 2020, its biggest annual surge since 2009.
NORMALITY BACK?
Exuberant market conditions and risk taking are being replaced by the more sober activity of scanning for undervalued firms that pay decent dividends.
A Reuters poll of 300 global asset managers last month showed 70% of those surveyed believed these so-called value stocks would outperform this year.
BlackRock Investment Institute, the research arm of the world's biggest asset manager, is also tipping value shares.
MSCI's value index dMIWO0000VNUS, containing stocks with low price-to-book value and high dividend yields, has significantly underperformed its tech stock-dominated growth index since early 2020.
This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
In Europe, recent data showed company profit margins have been increasing alongside input costs.
"With the reopening of China and the stabilisation of the economy in Europe, that's enough for these kinds of stocks to work," Janus' Schramm-Fuchs said.
Another sign investors are turning towards value shares is the reduced premium they are paying for growth stocks.
The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. It has returned to pre-pandemic levels but remains elevated compared to the end of the Fed's last rate-rise cycle in early 2019.
"This convergence (between growth and value) should continue to be your base case," said Ryan Reardon, ETF strategist at State Street Global Advisors. "Central banks will keep rates high."
Premium paid for growth stocks over valuehttps://tmsnrt.rs/3ZF1JwL
(Reporting by Naomi Rovnick; Editing by Dhara Ranasinghe and Ed Osmond)
((Naomi.Rovnick@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. "For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated. This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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16871.0
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2023-03-06 00:00:00 UTC
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Stock Market News for Mar 6, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-6-2023
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nan
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nan
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Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.2% or 387.40 points to finish at 33,390.97 points.
The S&P 500 climbed 1.6% or 64.29 points to end at 4,045.64 points. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each gained 2.2%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 2% or 226.02 points to close at 11,689.01 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.62% to 18.49. Advancers outnumbered decliners on the NYSE by a 4.54-to-1 ratio. On Nasdaq, a 2.36-to-1 ratio favored advancing issues. A total of 10.83 billion shares were traded on Friday, lower than the last 20-session average of 11.10 billion.
Markets Hold on To Gains Despite Worries
U.S. stocks ended sharply higher on Friday, with the S&P 500 snapping a three-week losing streak and the Dow closing more than 1% up for two straight sessions, as investors weighed if the Fed will continue to increase its interest rates at an aggressive pace in its bid to bring down inflation.
Wall Street has also been digesting a lot of comments from Fed officials. Investors’ confidence got a boost on Friday after Atlanta Fed President Raphael Bostic said that he feels the Fed could still hike interest rates by a smaller 25 basis points in its next meeting although many are still in favor of a 50-basis point increase.
However, in his remarks to the Mid-Size Bank Coalition of America, Fed Governor Christopher J. Waller adopted a more confrontational tone, highlighting the potential of a higher terminal rate if inflation numbers don't decline.
Markets pulled back in February after a solid start to the year as robust job additions hinted at a resilient economy despite hotter-than-expected inflation numbers. This made market participants reassess expectations of how long will the Fed continue with itsinterest rate hikes to bring down inflation to its target level.
Tech stocks were the big gainers on Friday as the 10-year Treasury yield fell below the 4% mark. Investors have been watching 4% as the key level as that could result in another down move for stocks. A breakout in the 10-year Treasury yield might have an impact on the economy because it is a benchmark rate that influences mortgages and auto loans.
Shares of Apple, Inc. AAPL gained 3.5%, while Meta Platforms, Inc. META jumped 6.1%. Also, shares of Netflix, Inc. NFLX rose 1.1%. Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Friday saw a volatile trading session. Stocks managed to hold on to the gains despite economic data showing steady demand for services.
Economic Data
The Institute for Supply Management said its services index advanced to 55.1% in February, indicating a resilient U.S. economy.
Weekly Roundup
All three indexes closed higher for the week. The S&P 500 closed 1.9% higher. The Nasdaq gained 2.6% for the week, while the Dow finished 1.7% higher.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple, Inc. AAPL gained 3.5%, while Meta Platforms, Inc. META jumped 6.1%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Markets Hold on To Gains Despite Worries U.S. stocks ended sharply higher on Friday, with the S&P 500 snapping a three-week losing streak and the Dow closing more than 1% up for two straight sessions, as investors weighed if the Fed will continue to increase its interest rates at an aggressive pace in its bid to bring down inflation.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. AAPL gained 3.5%, while Meta Platforms, Inc. META jumped 6.1%. Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. AAPL gained 3.5%, while Meta Platforms, Inc. META jumped 6.1%. Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year.
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Shares of Apple, Inc. AAPL gained 3.5%, while Meta Platforms, Inc. META jumped 6.1%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year.
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16872.0
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2023-03-06 00:00:00 UTC
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Here’s 2 DRIP Stocks To Compound Your Long-Term Gains
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AAPL
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https://www.nasdaq.com/articles/heres-2-drip-stocks-to-compound-your-long-term-gains
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nan
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nan
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Stocks that pay out a quarterly dividend usually pay in cash. Income investors seek out stable dividend stocks to collect dividend payments. Some stocks offer dividend reinvestment programs (DRIPs) which allow reinvesting the cash dividend into more stock with no fees or commissions. In this case, the dividend payment would be used to purchase more stock on the payout date. They are often fractional share purchases since dividends are only a fraction of a stock's price. DRIP stocks are not suitable for investors seeking income.
They are suitable for long-term investors seeking capital appreciation. DRIP stocks allow for dollar cost averaging and compounding over the long-term enabling investors to grow their positions and benefit from compounding the returns to generate additional returns. DRIP stocks are a “set it and forget it” investment.
However, investors can always opt to take the cash dividend if inclined. Selecting stable stocks for the long term that fits your risk profile is crucial. Here are two DRIP stocks that have stood the test of time and should continue to grow over the long term.
Kellogg Company (NYSE: K)
This consumer staples stock is the maker of popular cereal brands and convenience foods households consume worldwide. Founded in 1906, the company has grown its distribution to over 180 countries, with manufacturing plants in 21 countries. Its cereal brand portfolio includes Apple Jacks, Corn Flakes, Corn Pops, Froot Loops, Frosted Flakes, Raisin Bran, Rice Crispies, and Special K. Its snacks include household brands Pop-Tarts, Pringles, CHEEZ-IT, Club and Town House crackers.
As a consumer staples stock, it remains an excellent defensive stock during economic contractions and moves with the indexes during bull markets.
The company is driving growth through global expansion into emerging markets. The company plans to split into three public companies: the North American cereal company, global snacking, and its plant-based business by the end of 2023. Shareholders should receive a piece of each spin-off as a special dividend to further maximize shareholder value.
Its Q4 2022 EPS came in at $0.97, beating analyst estimates of $0.85 by $0.12. Revenues rose 12% YoY to $3.83 billion beating $3.66 consensus analyst estimates. Kellogg issued upside guidance for fiscal full-year 2023 of $4.20 to $4.29 versus $4.14 consensus analyst estimates. It sees full-year 2023 organic net sales growth of 5% to 7%, driven by sustained momentum in snacks and emerging markets. Kellogg shares pay a 3.61% annual dividend, trading at 16X forward earnings.
The MarketBeat MarketRank™ Forecast gives Kellogg 2 out of 5 stars with a 10.4% upside price target of $72.11 per share.
3M Company (NYSE: MMM)
The 3Ms stand for Minnesota Mining and Manufacturing started in 1902. This industrial giant is diversified throughout multiple industries, including consumer goods, industrial products, transportation, and healthcare. Its business operations have spread out through over 70 countries. You may be familiar with its Post-It notes and Scotch tapes. It also manufactures electronic products like connectors, touchscreens, and optical films. Its business has been sliding along with its shares which have pumped up the dividend yield to 5.39%.
Its Q4 2022 EPS came in at $2.28, missing consensus analyst estimates of $2.39 by ($0.11). Revenues fell (5.9%) YoY to $8.1 billion, missing analyst estimates of $8.09 billion. It lowered its full-year 2023 EPS of $8.50 to $9.00 versus $10.23 analyst expectations. This has caused shares to slide (9%) on the year as it trades at 12.8X forward earnings. The company will be shedding 2,500 manufacturing jobs as it expects sales to fall (2%) to (6%) in 2023.
The weak performance has caused some rumblings among activist shareholders. Fund manager Bert Flossbach raised concerns in a Jan. 28, 2023, letter citing the (32%) drop in shares versus the 62% rise in the S&P 500 during CEO Mike Roman's tenure. A CEO departure and replacement will become a bullish trigger if performance falls. Meanwhile, the cheaper valuations make both the stock and dividend more appealing, with more upside rebound potential. This is a situation of not chasing the entries but waiting for deeper pullbacks to maximize the compounding effect of a DRIP.
The MarketBeat MarketRank™ Forecast gives it 2 out of 5 stars with a 13.2% upside price target of $125.92 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its cereal brand portfolio includes Apple Jacks, Corn Flakes, Corn Pops, Froot Loops, Frosted Flakes, Raisin Bran, Rice Crispies, and Special K. Its snacks include household brands Pop-Tarts, Pringles, CHEEZ-IT, Club and Town House crackers. It sees full-year 2023 organic net sales growth of 5% to 7%, driven by sustained momentum in snacks and emerging markets. Fund manager Bert Flossbach raised concerns in a Jan. 28, 2023, letter citing the (32%) drop in shares versus the 62% rise in the S&P 500 during CEO Mike Roman's tenure.
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Income investors seek out stable dividend stocks to collect dividend payments. Revenues rose 12% YoY to $3.83 billion beating $3.66 consensus analyst estimates. Kellogg shares pay a 3.61% annual dividend, trading at 16X forward earnings.
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Income investors seek out stable dividend stocks to collect dividend payments. Some stocks offer dividend reinvestment programs (DRIPs) which allow reinvesting the cash dividend into more stock with no fees or commissions. Kellogg Company (NYSE: K) This consumer staples stock is the maker of popular cereal brands and convenience foods households consume worldwide.
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Income investors seek out stable dividend stocks to collect dividend payments. DRIP stocks are not suitable for investors seeking income. The company will be shedding 2,500 manufacturing jobs as it expects sales to fall (2%) to (6%) in 2023.
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16873.0
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2023-03-06 00:00:00 UTC
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The Big Question for Goldman CEO David Solomon
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AAPL
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https://www.nasdaq.com/articles/the-big-question-for-goldman-ceo-david-solomon
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nan
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nan
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Toward the end of last year and at the start of this year, the investment banking powerhouse Goldman Sachs (NYSE: GS) indicated that it was planning to significantly scale back its consumer banking ambitions, which it formally began six years ago.
That's after Goldman reported more than $3 billion of losses in the unit between 2020 and 2022 and as credit quality in its consumer lending portfolio began to deteriorate.
I think many assumed this step back would soon lead to a quick exit or wind-down of Goldman's consumer banking operations. However, at Goldman's recent investor day, CEO David Solomon sent somewhat mixed messages to the market. The big question for Solomon is whether Goldman is in or out of consumer banking.
Goldman plans to improve the consumer business
Goldman's consumer banking business includes its digital deposit-gathering platform Marcus and the associated lending products it used to offer through the platform, its credit card partnerships with GM and Apple, and its point-of-sale lending capabilities made possible through Goldman's $2.2 billion acquisition of GreenSky in 2021.
Image source: Getty Images.
Toward the end of last year, Goldman reorganized its business units, putting asset and wealth management (AWM) back together and moving the consumer banking operations into its platform solutions business. Goldman also said it would end its Marcus lending business, focus on existing Marcus customers, and place greater focus on AWM to achieve a rerating and higher multiple for the stock.
I think many took all of these announcements as a clear sign that Goldman is planning to outright get out of consumer banking. But the end may be further away than some had imagined. At investor day, Stephanie Cohen, Goldman's global head of platform solutions, said that the bank is considering "strategic alternatives" for its consumer platforms. But she also spent a good amount of time discussing new capabilities in Goldman's card partnerships and the improvement of the GreenSky business.
Cohen said Goldman is currently working with Apple to launch a savings account for customers who have the Apple card, as well as on enhanced capabilities of the GM card. However, Solomon said later in the call that Goldman has no plans to add additional card partnerships. Then Cohen touted the capabilities of the GreenSky acquisition and talked about how the growth had accelerated once it was integrated into Goldman. Cohen added that it will probably take another year before revenue net of provision for credit losses is positive, and that breakeven pre-tax profitability isn't expected until 2025.
It's not totally clear
The discussion of "strategic alternatives" for the consumer business, which one would think meant some kind of sale or exit, and the discussion of breakeven profitability resulted in many questions from analysts trying to understand the ultimate end game for the consumer business.
Solomon said that the bank still sees value in the technology it's built and the partnerships it has formed. Now, the goal is to make sure the performance of its consumer businesses does not hurt the company financially.
He said: "So I want to be clear. I think we've been clear. We will make progress on that. We're not going to let the drag that existed from those platforms continue. I think the statement I made this morning was a very clear statement."
But despite the number of times Solomon said the word "clear," he would even acknowledge later in the call that there was no clear end game for the consumer business at this time.
"I know that everybody wants a very straightforward, simple answer as to exactly what that means and what that could look like but there are lots of different ways that we could do things strategically that could enhance the operation or something might not ultimately fit strategically," he said.
There may not be a great solution right now
Given the fact that many of Goldman's large investors were supposedly never big fans of the consumer business and its struggles, Solomon may actually want to exit the business sooner than later. However, he simply may not be able to.
Loan losses are likely going to rise as credit quality normalizes, so there may not be a lot of bidders for a business like GreenSky right now. Considering the price and time when Goldman bought GreenSky, it would likely have to sell the business at a loss under current market conditions. Furthermore, Goldman's credit card business is currently being investigated by the Consumer Financial Protection Bureau (CFPB) and other government agencies.
Goldman could still just wind both businesses down and take the losses, but maybe Solomon does see better value in pressing on until market conditions improve.
I think Solomon has been clear that the bank no longer plans to grow consumer banking or try to use it to achieve a new valuation, but the more surprising part is the time it could take to exit these businesses. The longer the consumer business lingers, the harder it will be for the market to move on.
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Bram Berkowitz 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 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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That's after Goldman reported more than $3 billion of losses in the unit between 2020 and 2022 and as credit quality in its consumer lending portfolio began to deteriorate. Cohen added that it will probably take another year before revenue net of provision for credit losses is positive, and that breakeven pre-tax profitability isn't expected until 2025. Furthermore, Goldman's credit card business is currently being investigated by the Consumer Financial Protection Bureau (CFPB) and other government agencies.
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Goldman plans to improve the consumer business Goldman's consumer banking business includes its digital deposit-gathering platform Marcus and the associated lending products it used to offer through the platform, its credit card partnerships with GM and Apple, and its point-of-sale lending capabilities made possible through Goldman's $2.2 billion acquisition of GreenSky in 2021. Goldman also said it would end its Marcus lending business, focus on existing Marcus customers, and place greater focus on AWM to achieve a rerating and higher multiple for the stock. 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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Goldman plans to improve the consumer business Goldman's consumer banking business includes its digital deposit-gathering platform Marcus and the associated lending products it used to offer through the platform, its credit card partnerships with GM and Apple, and its point-of-sale lending capabilities made possible through Goldman's $2.2 billion acquisition of GreenSky in 2021. Toward the end of last year, Goldman reorganized its business units, putting asset and wealth management (AWM) back together and moving the consumer banking operations into its platform solutions business. It's not totally clear The discussion of "strategic alternatives" for the consumer business, which one would think meant some kind of sale or exit, and the discussion of breakeven profitability resulted in many questions from analysts trying to understand the ultimate end game for the consumer business.
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Goldman plans to improve the consumer business Goldman's consumer banking business includes its digital deposit-gathering platform Marcus and the associated lending products it used to offer through the platform, its credit card partnerships with GM and Apple, and its point-of-sale lending capabilities made possible through Goldman's $2.2 billion acquisition of GreenSky in 2021. But despite the number of times Solomon said the word "clear," he would even acknowledge later in the call that there was no clear end game for the consumer business at this time. I think Solomon has been clear that the bank no longer plans to grow consumer banking or try to use it to achieve a new valuation, but the more surprising part is the time it could take to exit these businesses.
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16874.0
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2023-03-06 00:00:00 UTC
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Apple Wants to Part Ways With Broadcom, but It Might Be Very Hard to Do So
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AAPL
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https://www.nasdaq.com/articles/apple-wants-to-part-ways-with-broadcom-but-it-might-be-very-hard-to-do-so
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nan
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nan
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Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. The chips Apple wants to replace are supposedly those from silicon design powerhouse Broadcom (NASDAQ: AVGO).
Reports further suggest that Apple might be able to begin cutting Broadcom out of the mix by 2025. It's certainly a cause for concern for Broadcom shareholders, as Jose Najarro and I discussed shortly after the news report. But further review shows that Apple's design efforts in wireless communications chips could present a major challenge, because Broadcom has quite the competitive edge in that department.
Why does Apple want to design chips anyways?
It's easy to argue that Apple is the most successful products company around. Its custom mobile-processor designs (which it licenses from ARM Holdings and adapts to its needs) are a big reason for that success. The iPhone, MacBook, and other products boast best-in-class performance and are differentiated from competing devices.
But there's another reason Apple has been trying to expand on its in-house chip-design chops. It has massive scale few companies can rival, so it's able to get into the very complicated and expensive semiconductor engineering business. And thanks to that massive scale, designing its own chips for its range of devices can add up to big cost savings.
Thus Apple's work on cellular modems is an attempt to part ways with Qualcomm, though the effort hasn't paid off yet (iPhone 15 reportedly will still use a Qualcomm modem, though Qualcomm is still factoring in very little Apple revenue for 2025).
Broadcom is a natural next target, because it and Qualcomm have one important metric in common: They're wildly profitable. In a typical good year when the Android smartphone market isn't imploding, Qualcomm generates free-cash-flow profit margins well over 20%. Broadcom has reported a mind-bogglingly good free-cash-flow margin of 49% over the last year. Clearly, Apple sees an opportunity to save itself some serious cash if it can replace these two suppliers.
Data by YCharts.
What Apple means to Broadcom
Broadcom is a massive supplier of hardware to Apple. Back in 2020, it was awarded new contracts to supply wireless modules and related components for the iPhone and other products, and at the time, it was estimated that contract would be worth $15 billion in sales for Broadcom. Indeed, in its annual filing for fiscal year 2022 (which ended Oct. 30, 2022), Broadcom estimated that Apple accounted for about 20% ($6.6 billion) of its $33 billion total revenue.
Losing Apple's WiFi and Bluetooth chip sales would be a big hit for Broadcom -- although it's worth mentioning that Broadcom almost certainly supplies other semiconductors outside of wireless, since wireless hardware provided less than one-quarter of its total sales at the end of its fiscal year 2022.
BROADCOM SALES SEGMENT
Q4 FISCAL 2022
CHANGE (YOY)
Networking
$2.5 billion
30%
Storage connectivity
$1.2 billion
50%
Broadband
$1 billion
20%
Wireless
$2.1 billion
13%
Industrial
$234 million
1%
Infrastructure software
$1.8 billion
4%
Total
$8.9 billion
21%
Data source: Broadcom. YOY = year over year.
Can Apple really ditch Broadcom?
Besides providing a multitude of components, there's another very important reason Apple may not be able to completely part ways with Broadcom. Broadcom is often referred to as a "fabless" chip company -- meaning it only designs silicon, and leaves the actual manufacturing of chips to third-party partners like Taiwan Semiconductor Manufacturing. Of chip wafers used by Broadcom's manufacturing partners, 90% came from TSMC last year.
But calling Broadcom "fabless" is a bit of a misnomer. Buried in its 2022 annual filing is the fact that it has retained a few small chip fab plants of its own -- one in Singapore; one in Breinigsville, Pennsylvania; and one in Fort Collins, Colorado. These fabs were a very small part of its business, but an important part. According to Broadcom:
We use our internal fabrication facilities for products utilizing our innovative and proprietary processes, such as our FBAR [film bulk acoustic resonator] filters for wireless communications and our vertical-cavity surface emitting laser and side emitting lasers ... based on GaAs [gallium arsenide] and InP [indium phosphide] lasers for fiber optic communications, while outsourcing commodity processes such as standard CMOS [complementary metal-oxide semiconductor]. By doing so, we can protect our IP [intellectual property] and accelerate time to market for our products.
The Fort Collins fab is of particular interest here, since Broadcom says it is the sole supplier of FBAR components used in its wireless devices, like those WiFi and Bluetooth components.
The takeaway? Apple has done some impressive silicon work, but designing chips is only part of the battle. It will also need to find a way to manufacture some of these wireless components, and like-for-like replacement fab technology for Broadcom simply may not exist -- at least not without the risk of running afoul of Broadcom's intellectual property rights.
Apple isn't the only tech company with a defensible moat. Broadcom has a moat too: It's a very sticky part of the semiconductor industry, and might be impossible for Apple to completely part ways with. Apple might try to cut it out anyways -- but I continue to believe Broadcom is a fantastic dividend stock for the long term.
10 stocks we like better than Broadcom
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Broadcom wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 8, 2023
Nicholas Rossolillo and his clients have positions in Apple, Broadcom, and Qualcomm. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. But further review shows that Apple's design efforts in wireless communications chips could present a major challenge, because Broadcom has quite the competitive edge in that department. In a typical good year when the Android smartphone market isn't imploding, Qualcomm generates free-cash-flow profit margins well over 20%.
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Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. Indeed, in its annual filing for fiscal year 2022 (which ended Oct. 30, 2022), Broadcom estimated that Apple accounted for about 20% ($6.6 billion) of its $33 billion total revenue. Losing Apple's WiFi and Bluetooth chip sales would be a big hit for Broadcom -- although it's worth mentioning that Broadcom almost certainly supplies other semiconductors outside of wireless, since wireless hardware provided less than one-quarter of its total sales at the end of its fiscal year 2022.
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Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. What Apple means to Broadcom Broadcom is a massive supplier of hardware to Apple. Losing Apple's WiFi and Bluetooth chip sales would be a big hit for Broadcom -- although it's worth mentioning that Broadcom almost certainly supplies other semiconductors outside of wireless, since wireless hardware provided less than one-quarter of its total sales at the end of its fiscal year 2022.
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Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. Why does Apple want to design chips anyways? What Apple means to Broadcom Broadcom is a massive supplier of hardware to Apple.
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16875.0
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2023-03-06 00:00:00 UTC
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Lemonade Earnings Gap and Crap. Here’s Why.
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AAPL
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https://www.nasdaq.com/articles/lemonade-earnings-gap-and-crap.-heres-why.
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nan
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nan
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Online Insurance platform Lemonade Inc. (NYSE: LMND) stock surged to $18.88 from $16.44 after releasing its Q4 2022 earnings. However, shares cratered back down to $15.69 after gapping. Shares continued to chop around $16 and then fell to the $14.61 weekly market structure low (MSL) trigger support. Lemonade’s artificial intelligence (AI) powered platform automates its insurance products' onboarding, underwriting, analytics, and claims processing.
It sells property, car, home, rental, life, and pet insurance. It also acts as an agent matching other companies' insurance products to customers' needs. The company integrated its Metromile pay-per-mile insurance acquisition figures which helped boost top-line growth. Lemonade is attempting to disrupt the insurance industry by trying to compete with the likes of players likes of The Allstate Co. (NYSE: ALL), Progressive Co. (PGR), Cigna Co. (NYSE: CI), and Berkshire Hathaway Inc. (NYSE: BRK.A).
Inflation Impact
Inflation affects insurance companies in multiple ways. It raises the costs to repair or replace property. As costs rise, insurers have to make higher payouts and thus need to adjust policy rate increases accordingly to cover their losses without losing customers. Inflation can erode investment of its premiums and reduce the income it earns from investments. Inflation put pressure on Lemonade's loss ratio upwards but was offset by upping its rate of filings 8X.
Lemonade Co-Founder and Co-CEO Shai Wininger stated that inflation was tentatively in retreat during its conference call. As inflation continues to ease, Lemonade could see margin improvements. The U.S. Fed raising interest rates has helped interest income rise for the company.
Cheaper and More Efficient Insurance (theoretically)
Automating its services is supposed to make the company more efficient and ultimately profitable and provide customers with a seamless and frictionless experience. The company claims its prices are lower than competing insurers. Onboarding takes minutes to get coverage.
However, the company continues to lose money but is starting to slow growth to grow loss ratios. The theory sounds great; however, the execution on the business side is still trying to prove itself. The company is still burning through cash despite having nearly $1 billion. Lemonade is nowhere near GAAP profitability. AI has yet to prove it's more efficient than humans as operating expenses and stock-based compensation continue to climb.
Rise of the Machines
Lemonade utilizes AI to design and issue data-driven insurance policies rather than use expensive human actuaries. Its machine learning algorithms promise to refine and improve itself with more usage as it collects, compiles, and analyzes oceans of data. The results are measured on its loss ratios, designed to begin broadly and shrink with optimization.
Weeding Out the Bad Apples
The company has also stated that its machine learning models seek to terminate mispriced customers it can’t adequately price to keep its loss ratio down. Rising inflation has caused an increase in both size and prevalence of these customers. The company is consciously slowing down growth with non-renewal policies for these customers.
This will impact its growth for alternative dispute resolution (ADR), loss ratios, and growth. ADR rose 4% to 86% in the recent quarter. The higher the figure is, the more efficient the company is. It represents disputes with policyholders or third-party claimants over insurance claims that have often been resolved through a third-party mediator.
Signs of Improvement
On Feb. 22, 2023, Lemonade released its fourth-quarter fiscal 2022 earnings report results for December 2022. The company reported an earnings-per-share (EPS) loss of ($0.93) beating consensus analyst estimates for a loss of ($1.20) by $0.27. Revenues grew 115.6% year-over-year (YoY) to $88.4 million, beating consensus analyst estimates of $78.23 million.
In-force (active paying premiums) rose 64% YoY to $625.1 million. Customer count rose 27% YoY to $1.81 million. The gross loss ratio was 89%, down from (94%) in Q3 2022 and (96%) in Q4 2021. Premiums per customer rose 30% YoY by $346.
Mixed Guidance
Lemonade raised its Q1 2023 revenues guidance to $87 million to $89 million versus $81.58 million consensus analyst estimates. It issued downside guidance for the full-year 2023 of revenues between $375 million to $379 million versus $386.07 million.
Lemonade Co-Founder and Co-CEO Dan Schreiber commented, “…we believe that peak losses are now behind us and that we're progressing our plan along our path to profitability. In parallel, depending on threats from without, we've made progress within launching new products, new markets, acquiring and integrating Metromile, and growing the business by 2/3 year-on-year.”
Weekly Bear Flag Breakdown
LMND's weekly candlestick chart depicts a bear flag breakdown. After peaking at $23.99 in November 2022, LMND shares fell for six weeks to an all-time low of $13.56 in late December 2022. Shares finally bounced on the weekly stochastic mini pup as it bounced up through the 20-band. LMND triggered the weekly MSL breakout through $14.61. Each pullback bounced off a higher low as each pullback fell from a higher high, forming a flag pattern of parallel rising highs and lows.
Shares continued to spike to a high of $19.94 by January 2023. Shares started to fall below the lower rising trendline until Q4 2022 earnings spiked the shares to $18.88 before falling back under the $16.02 lower rising trendline of the flag. The weekly 20-period exponential moving average (EMA) continues to be a formidable resistance at $17.52, followed by the falling 50-period MA at $20.31.
The weekly stochastic continues to try to flex a mini pup rising at the 40-band. Pullback support levels are $14.61 weekly MSL trigger, $13.56, $12.82, $11.91, and $10.54.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lemonade’s artificial intelligence (AI) powered platform automates its insurance products' onboarding, underwriting, analytics, and claims processing. As costs rise, insurers have to make higher payouts and thus need to adjust policy rate increases accordingly to cover their losses without losing customers. Weeding Out the Bad Apples The company has also stated that its machine learning models seek to terminate mispriced customers it can’t adequately price to keep its loss ratio down.
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Mixed Guidance Lemonade raised its Q1 2023 revenues guidance to $87 million to $89 million versus $81.58 million consensus analyst estimates. In parallel, depending on threats from without, we've made progress within launching new products, new markets, acquiring and integrating Metromile, and growing the business by 2/3 year-on-year.” Weekly Bear Flag Breakdown LMND's weekly candlestick chart depicts a bear flag breakdown. Shares started to fall below the lower rising trendline until Q4 2022 earnings spiked the shares to $18.88 before falling back under the $16.02 lower rising trendline of the flag.
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As costs rise, insurers have to make higher payouts and thus need to adjust policy rate increases accordingly to cover their losses without losing customers. Mixed Guidance Lemonade raised its Q1 2023 revenues guidance to $87 million to $89 million versus $81.58 million consensus analyst estimates. Shares started to fall below the lower rising trendline until Q4 2022 earnings spiked the shares to $18.88 before falling back under the $16.02 lower rising trendline of the flag.
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Inflation Impact Inflation affects insurance companies in multiple ways. As costs rise, insurers have to make higher payouts and thus need to adjust policy rate increases accordingly to cover their losses without losing customers. The company claims its prices are lower than competing insurers.
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16876.0
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2023-03-06 00:00:00 UTC
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US STOCKS-Wall St set to open higher, focus on Fed Chair Powell's testimony
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-focus-on-fed-chair-powells-testimony
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nan
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nan
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By Sruthi Shankar and Bansari Mayur Kamdar
March 6 (Reuters) - U.S. stock indexes were set to open higher on Monday as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates.
The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
The yield on U.S. 10-year Treasury notes US10YT=RR slipped to 3.91%, its lowest since March 1, while the two-year yield US2YT=RR inched down to 4.84% after touching its highest since 2007 last week. US/
Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
"Investors are bracing for Powell's comments tomorrow and I don't think he's going to say very much from what he has been saying all along. The Fed has been basically setting the stage for further rate hikes, perhaps beyond May and the market is well aware of that," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
U.S. stocks have turned quite volatile in recent weeks after a strong performance at the start of this year as investors brace for the possibility of rates remaining higher for longer. The benchmark S&P 500 .SPX is up 5.4% so far this year after a 19.4% plunge in 2022.
Investors are awaiting factory orders data for January, due at 10:00 a.m. ET, to assess the impact of higher rates on the manufacturing sector.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were up 8 points, or 0.02%, S&P 500 e-minis EScv1 were up 7.5 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 46.25 points, or 0.38%.
Shares of Apple Inc AAPL.O climbed 1.7% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating.
U.S.-listed shares of Chinese companies Alibaba BABA.N and PDD Holdings PDD.O fell 0.5% and 0.7%, respectively, after China set a modest annual economic growth target of about 5%, below market expectations of 5.5%-plus growth.
Shares of cryptocurrency-related companies fell after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network, after raising doubts on the company's ability to stay in business. The California-based bank slid 8.3%, while peer Signature Bank SBNY.O declined 2.4%.
(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc AAPL.O climbed 1.7% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes were set to open higher on Monday as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
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Shares of Apple Inc AAPL.O climbed 1.7% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes were set to open higher on Monday as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. US/ Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
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Shares of Apple Inc AAPL.O climbed 1.7% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes were set to open higher on Monday as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. US/ Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets that the central bank could raise interest rates to a higher-than-expected level.
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Shares of Apple Inc AAPL.O climbed 1.7% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock indexes were set to open higher on Monday as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell's testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates. The three main U.S. stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.
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16877.0
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2023-03-06 00:00:00 UTC
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Could This Top Dividend Stock Skyrocket Despite the Semiconductor Slump?
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AAPL
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https://www.nasdaq.com/articles/could-this-top-dividend-stock-skyrocket-despite-the-semiconductor-slump
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nan
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nan
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While much of the semiconductor industry is in a slump, primarily from falling smartphone and PC sales, Broadcom (NASDAQ: AVGO) has been a standout performer. In fact, the stock is approaching all-time highs last reached in late 2021, and it has nearly doubled in value since the beginning of 2020. When adding in dividends, Broadcom has delivered a total return of 110% in the past three years.
For investors looking for consistent growth and income, this remains a top semiconductor investment to consider for the long haul.
Bucking the chip downturn with "boring" silicon
Broadcom delivered stellar financial performance in the first quarter of fiscal 2023 (the three months ended in January). Revenue was up 16% year over year to just over $8.9 billion, driven by 21% growth in its semiconductor business (about 80% of sales) and a 1% decline in infrastructure software (about 20% of sales). Impressive, considering most of its peers are reporting declines in sales right now.
Networking, server storage connectivity, and broadband were the driving force for growth. Within networking, CEO Hock Tan said ethernet switch shipments are headed higher, estimated to be $200 million last year and on their way to perhaps be more than an $800 million business in 2023 thanks to generative artificial intelligence like ChatGPT that Microsoft and other tech giants are rolling out.
And in broadband, this usually sleepy business is getting a massive lift as telecom and internet service provider (ISP) companies upgrade infrastructure for next-gen internet. This includes 10G and DOCSIS 3.1 hardware as some legacy ISPs keep up with wireless companies that are marketing their 5G mobile network as a broadband internet replacement. As is usual during a tech upgrade cycle like this, telecoms and ISPs are the inferior investment. Top supplier Broadcom is enjoying the lion's share of growth here.
BROADCOM SALES SEGMENT
Q1 FISCAL 2023
CHANGE (YOY)
Q2 FISCAL 2023 EXPECTED GROWTH (YOY)
Networking
$2.3 billion
20%
20%
Storage connectivity
$1.3 billion
57%
20%
Broadband
$1.2 billion
34%
10%
Wireless
$2.1 billion
4%
Down high-single-digit percentage
Industrial
$229 million
-4%
Down low-single-digit percentage
Infrastructure software
$1.8 billion
-1%
Up low- to mid-single-digit percentage
Total
$8.9 billion
21%
16%
Data source: Broadcom. YOY = Year over year.
Great guidance, though some issues persist
Tan and company predict total year-over-year revenue growth of about 8% in the second quarter of fiscal 2023 (the three months that will end in April). This will be driven by high-single-digit percentage growth in semiconductors and low- to mid-single-digit percentage growth in software. Again, impressive considering most chip stock peers are forecasting lingering sales declines in the coming months before a rebound in the second half of 2023.
Of course, not all is perfect at Broadcom. The wireless segment -- primarily chips sold to Apple (NASDAQ: AAPL) -- is finally getting dented from the smartphone downturn as even the iPhone has begun to hit some bumps in the road. Further down the line, media outlets have been asserting that Apple is trying to design its own WiFi/Bluetooth chip to scale back on its relationship with Broadcom. Addressing a question about this on theearnings call Tan said that "our strategic engagement continues very much the same as it has for the last multiple years, and we see that to continue in a fairly predictable, stable manner."
Then there's also the pending megamerger with VMware (NYSE: VMW). If completed, it would transform Broadcom's business mix into a roughly 50-50 split between chip design and cloud infrastructure software. Tan said regulatory reviews are complete in many jurisdictions, although a key review in the European Union is being extended until this June. Nevertheless, such is the norm for acquisitions of this size, and Broadcom remains optimistic VMware will join Broadcom by the end of the current fiscal year, which ends in October.
Broadcom is generating ridiculous profits to fuel its dividend
Broadcom got off to a wonderful start in 2023, and it appears it will plateau over the current chip downturn with single-digit revenue growth this year (my estimate, based on broad industry trends). And along the way, the company is still ridiculously profitable. Semiconductor operating profit margin was 58% last quarter, and software operating margin was 72% -- resulting in free cash flow of $3.9 billion, or a margin of 44% of revenue.
Broadcom stock now trades for just under 15 times trailing-12-month free cash flow and doles out a dividend currently yielding 2.8% a year. For investors looking for top dividend stocks to buy for the long term in the tech world, Broadcom deserves to be at or near the top of that buy list.
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Nicholas Rossolillo and his clients have positions in Apple and Broadcom. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Broadcom and VMware and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The wireless segment -- primarily chips sold to Apple (NASDAQ: AAPL) -- is finally getting dented from the smartphone downturn as even the iPhone has begun to hit some bumps in the road. Bucking the chip downturn with "boring" silicon Broadcom delivered stellar financial performance in the first quarter of fiscal 2023 (the three months ended in January). Great guidance, though some issues persist Tan and company predict total year-over-year revenue growth of about 8% in the second quarter of fiscal 2023 (the three months that will end in April).
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The wireless segment -- primarily chips sold to Apple (NASDAQ: AAPL) -- is finally getting dented from the smartphone downturn as even the iPhone has begun to hit some bumps in the road. Networking $2.3 billion 20% 20% Storage connectivity $1.3 billion 57% 20% Broadband $1.2 billion 34% 10% Wireless $2.1 billion 4% Down high-single-digit percentage Industrial $229 million -4% Down low-single-digit percentage Infrastructure software $1.8 billion -1% Up low- to mid-single-digit percentage Total $8.9 billion 21% 16% Data source: Broadcom. Semiconductor operating profit margin was 58% last quarter, and software operating margin was 72% -- resulting in free cash flow of $3.9 billion, or a margin of 44% of revenue.
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The wireless segment -- primarily chips sold to Apple (NASDAQ: AAPL) -- is finally getting dented from the smartphone downturn as even the iPhone has begun to hit some bumps in the road. Revenue was up 16% year over year to just over $8.9 billion, driven by 21% growth in its semiconductor business (about 80% of sales) and a 1% decline in infrastructure software (about 20% of sales). Networking $2.3 billion 20% 20% Storage connectivity $1.3 billion 57% 20% Broadband $1.2 billion 34% 10% Wireless $2.1 billion 4% Down high-single-digit percentage Industrial $229 million -4% Down low-single-digit percentage Infrastructure software $1.8 billion -1% Up low- to mid-single-digit percentage Total $8.9 billion 21% 16% Data source: Broadcom.
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The wireless segment -- primarily chips sold to Apple (NASDAQ: AAPL) -- is finally getting dented from the smartphone downturn as even the iPhone has begun to hit some bumps in the road. For investors looking for consistent growth and income, this remains a top semiconductor investment to consider for the long haul. Revenue was up 16% year over year to just over $8.9 billion, driven by 21% growth in its semiconductor business (about 80% of sales) and a 1% decline in infrastructure software (about 20% of sales).
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16878.0
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2023-03-06 00:00:00 UTC
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Stock pickers reckon it's time to move on from central banks
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AAPL
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https://www.nasdaq.com/articles/stock-pickers-reckon-its-time-to-move-on-from-central-banks-1
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nan
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nan
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By Naomi Rovnick
LONDON, March 6 (Reuters) - Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back.
Hopes for interest rate cuts by year-end have evaporated, given resilient data and sticky inflation, suggesting central banks will instead be inclined to keep borrowing costs around their highest since 2007 for some time.
The take away for money managers? Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation.
Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured.
"For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower.
"We are rapidly transitioning away from that."
VALUE IS BACK
European banking stocks .SX7E, considered a deep value investment because of relatively low price-to-earnings ratios and higher dividend yields, have jumped 24% this year.
Global equity income funds had their first annual net inflows last year since 2014, according to Morningstar data, a trend that has continued into 2023.
Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
The Nasdaq .IXIC is still up about 12% year-to-date and a sub-index of European tech stocks has gained 15% .SX8P. Still, these rallies lost steam from February with a build-up of strong U.S. jobs and consumer data and as euro zone inflation stayed high.
ALL CHANGE
With policymakers prioritising the inflation fight and money markets pricing U.S. rates moving above 5% this year, the door on rate cuts soon has been shut.
"We're going back to what investing used to be," he said. "It is a good environment for stock-picking."
Neil Birrell, chief investment officer at UK asset manager Premier Miton, said his funds were adding to positions in energy companies and banks, among the clear winners of the last six months.
It's a contrast to recent years. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
The Nasdaq soared 44% in 2020, its biggest annual surge since 2009.
NORMALITY BACK?
Exuberant market conditions and risk taking are being replaced by the more sober activity of scanning for undervalued firms that pay decent dividends.
A Reuters poll of 300 global asset managers last month showed 70% of those surveyed believed these so-called value stocks would outperform this year.
BlackRock Investment Institute, the research arm of the world's biggest asset manager, is also tipping value shares.
MSCI's value index dMIWO0000VNUS, containing stocks with low price-to-book value and high dividend yields, has significantly underperformed its tech stock-dominated growth index since early 2020.
This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
In Europe, recent data showed company profit margins have been increasing alongside input costs.
"With the reopening of China and the stabilisation of the economy in Europe, that's enough for these kinds of stocks to work," Janus' Schramm-Fuchs said.
Another sign investors are turning towards value shares is the reduced premium they are paying for growth stocks.
The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. It has returned to pre-pandemic levels but remains elevated compared to the end of the Fed's last rate-rise cycle in early 2019.
"This convergence (between growth and value) should continue to be your base case," said Ryan Reardon, ETF strategist at State Street Global Advisors. "Central banks will keep rates high."
Premium paid for growth stocks over valuehttps://tmsnrt.rs/3ZF1JwL
US interest rate and tech stockshttps://tmsnrt.rs/3IWIWGC
(Reporting by Naomi Rovnick; Editing by Dhara Ranasinghe and Ed Osmond)
((Naomi.Rovnick@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. "For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated. This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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16879.0
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2023-03-06 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-6
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nan
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nan
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A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSG has been able to amass assets over $11.84 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
IUSG's 12-month trailing dividend yield is 0.97%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 35.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
Performance and Risk
The ETF return is roughly 5.74% so far this year and is down about -13.34% in the last one year (as of 03/06/2023). In the past 52-week period, it has traded between $78.88 and $108.44.
The ETF has a beta of 1.05 and standard deviation of 27.73% for the trailing three-year period, making it a medium risk choice in the space. With about 467 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $840.84 million in assets, iShares Morningstar Growth ETF has $1.54 billion. FPX has an expense ratio of 0.57% and ILCG 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 - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. 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.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
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16880.0
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2023-03-06 00:00:00 UTC
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Stock pickers reckon it's time to move on from central banks
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AAPL
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https://www.nasdaq.com/articles/stock-pickers-reckon-its-time-to-move-on-from-central-banks-0
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nan
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nan
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By Naomi Rovnick
LONDON, March 6 (Reuters) - Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back.
Hopes for interest rate cuts by year-end have evaporated, given resilient data and sticky inflation, suggesting central banks will instead be inclined to keep borrowing costs around their highest since 2007 for some time.
The take away for money managers? Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation.
Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured.
"For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower.
"We are rapidly transitioning away from that."
VALUE IS BACK
European banking stocks .SX7E, considered a deep value investment because of relatively low price-to-earnings ratios and higher dividend yields, have jumped 24% this year.
Global equity income funds had their first annual net inflows last year since 2014, according to Morningstar data, a trend that has continued into 2023.
Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
The Nasdaq .IXIC is still up about 12% year-to-date and a sub-index of European tech stocks has gained 15% .SX8P. Still, these rallies lost steam from February with a build-up of strong U.S. jobs and consumer data and as euro zone inflation stayed high.
ALL CHANGE
With policymakers prioritising the inflation fight and money markets pricing U.S. rates moving above 5% this year, the door on rate cuts soon has been shut.
"We're going back to what investing used to be," he said. "It is a good environment for stock-picking."
Neil Birrell, chief investment officer at UK asset manager Premier Miton, said his funds were adding to positions in energy companies and banks, among the clear winners of the last six months.
It's a contrast to recent years. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
The Nasdaq soared 44% in 2020, its biggest annual surge since 2009.
NORMALITY BACK?
Exuberant market conditions and risk taking are being replaced by the more sober activity of scanning for undervalued firms that pay decent dividends.
A Reuters poll of 300 global asset managers last month showed 70% of those surveyed believed these so-called value stocks would outperform this year.
BlackRock Investment Institute, the research arm of the world's biggest asset manager, is also tipping value shares.
MSCI's value index dMIWO0000VNUS, containing stocks with low price-to-book value and high dividend yields, has significantly underperformed its tech stock-dominated growth index since early 2020.
This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
In Europe, recent data showed company profit margins have been increasing alongside input costs.
"With the reopening of China and the stabilisation of the economy in Europe, that's enough for these kinds of stocks to work," Janus' Schramm-Fuchs said.
Another sign investors are turning towards value shares is the reduced premium they are paying for growth stocks.
The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. It has returned to pre-pandemic levels but remains elevated compared to the end of the Fed's last rate-rise cycle in early 2019.
"This convergence (between growth and value) should continue to be your base case," said Ryan Reardon, ETF strategist at State Street Global Advisors. "Central banks will keep rates high."
Premium paid for growth stocks over valuehttps://tmsnrt.rs/3ZF1JwL
US interest rate and tech stockshttps://tmsnrt.rs/3IWIWGC
(Reporting by Naomi Rovnick; Editing by Dhara Ranasinghe and Ed Osmond)
((Naomi.Rovnick@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. "For years, we've had a capitalist world that was highly dependent on central-banking policy and the 'Fed put'," said Gerry Fowler, head of European equity strategy at UBS, referring to the concept of central banks supporting financial markets any time economies turn lower. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Shares in tech firms, which dominate world equity markets and rely on cheap money to fund innovation, had a strong start to 2023 on hopes that aggressive rate hikes would soon end as the economic cycle decelerated. This value index is dominated by energy companies viewed as benefiting from China's economic reopening, banks that profit from higher rates and health care and household products businesses that could pass cost inflation on to the consumers of these basic goods.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Switch from so-called growth stocks, such as tech, and focus on businesses that can withstand the end of cheap funding -- banks that benefit from higher rates and resources and consumer staples businesses that can sell goods at prices that match inflation. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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The gap between the price-earnings multiple on MSCI's growth index .dMIWO0000GNUS, dominated by Apple AAPL.O and Microsoft MSFT.O, and its value counterpart was its highest in a decade in December 2020. Companies that pay high dividends relative to their share prices, instead of investing in growth, are also favoured. In 2020 for instance, cheap money flooded into tech and other growth stocks, with rapid growth rates forecast far into the future, as interest rates were slashed to safeguard economies from pandemic-related shutdowns.
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2023-03-06 00:00:00 UTC
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US STOCKS-Futures subdued after strong week on Wall Street
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-after-strong-week-on-wall-street
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow off 0.09%, S&P slips 0.04%, Nasdaq up 0.04%
March 6 (Reuters) - U.S. stock index futures were subdued on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory.
The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes.
The yield on U.S. 10-year Treasury notes US10YT=RR slipped to 3.93%, its lowest since March 1, while the two-year yield US10YT=RR inched down to 4.84% after touching its highest since 2007 last week. US/
Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets for more interest rate hikes this year.
"Looking at the latest set of data, the U-turn of easing inflation and last month's blowout jobs figures, we don't expect to hear anything less than hawkish from Mr. Powell," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"But it's always possible that a word like 'disinflation' slips out of his mouth, and that we get a boost on risk."
Traders expect at least three 25-basis-point rate hikes this year and see rates peaking at 5.44% by September from 4.67% now. FEDWATCH
At 05:29 a.m. ET, Dow e-minis 1YMcv1 were down 31 points, or 0.09%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.04%, while Nasdaq 100 e-minis NQcv1 were up 5.25 points, or 0.04%.
Shares of Apple Inc AAPL.O climbed 1.0% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with "buy" rating.
U.S.-listed shares of Chinese companies Alibaba BABA.N and PDD Holdings PDD.O slid 0.9% and 1.3%, respectively, as China set a modest target for economic growth this year of around 5%, below market expectations of 5.5%-plus growth.
(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc AAPL.O climbed 1.0% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with "buy" rating. The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes. US/ Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets for more interest rate hikes this year.
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Shares of Apple Inc AAPL.O climbed 1.0% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with "buy" rating. Futures: Dow off 0.09%, S&P slips 0.04%, Nasdaq up 0.04% March 6 (Reuters) - U.S. stock index futures were subdued on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. ET, Dow e-minis 1YMcv1 were down 31 points, or 0.09%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.04%, while Nasdaq 100 e-minis NQcv1 were up 5.25 points, or 0.04%.
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Shares of Apple Inc AAPL.O climbed 1.0% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with "buy" rating. Futures: Dow off 0.09%, S&P slips 0.04%, Nasdaq up 0.04% March 6 (Reuters) - U.S. stock index futures were subdued on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes.
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Shares of Apple Inc AAPL.O climbed 1.0% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with "buy" rating. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes.
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16882.0
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2023-03-06 00:00:00 UTC
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US STOCKS-Futures slip as investors await Powell's testimony, payrolls data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-as-investors-await-powells-testimony-payrolls-data
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nan
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By Sruthi Shankar and Bansari Mayur Kamdar
March 6 (Reuters) - U.S. stock index futures inched lower on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory.
The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes.
The yield on U.S. 10-year Treasury notes US10YT=RR slipped to 3.92%, its lowest since March 1, while the two-year yield US2YT=RR inched down to 4.85% after touching its highest since 2007 last week. US/
Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets for more interest rate hikes this year.
"Looking at the latest set of data, the U-turn of easing inflation and last month's blowout jobs figures, we don't expect to hear anything less than hawkish from Mr. Powell," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"But it's always possible that a word like 'disinflation' slips out of his mouth, and that we get a boost on risk."
Traders expect at least three 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. FEDWATCH
Investors also eyed factory orders data for January, due at 1000 a.m. EST, to assess the impact of higher interest rates on the manufacturing sector.
At 06:52 a.m. ET, Dow e-minis 1YMcv1 were down 48 points, or 0.14%, S&P 500 e-minis EScv1 were down 5.5 points, or 0.14%, and Nasdaq 100 e-minis NQcv1 were down 12.75 points, or 0.1%.
Shares of Apple Inc AAPL.O climbed 0.9% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating.
U.S.-listed shares of Chinese companies Alibaba BABA.N and PDD Holdings PDD.O fell 0.9% and 1.2%, respectively, after China set a modest annual economic growth target of about 5%, below market expectations of 5.5%-plus growth.
Shares of cryptocurrency-related companies fell after Silvergate Capital Corp SI.N pulled the plug on its crypto payments network, after raising doubts on the company's ability to stay in business. The California-based bank slid 4.9%, while peer Signature Bank SBNY.O declined 2.1%.
(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc AAPL.O climbed 0.9% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock index futures inched lower on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. US/ Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets for more interest rate hikes this year.
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Shares of Apple Inc AAPL.O climbed 0.9% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock index futures inched lower on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. US/ Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation fueled bets for more interest rate hikes this year.
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Shares of Apple Inc AAPL.O climbed 0.9% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock index futures inched lower on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. The three main U.S. stock indexes rallied on Friday and notched weekly gains as Treasury yields pulled back from their peaks after comments from Fed policymakers calmed jitters over aggressive rate hikes.
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Shares of Apple Inc AAPL.O climbed 0.9% in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a "buy" rating. By Sruthi Shankar and Bansari Mayur Kamdar March 6 (Reuters) - U.S. stock index futures inched lower on Monday as investors awaited Federal Reserve Chair Jerome Powell's testimony and monthly payrolls report this week for cues on the central bank's interest-rate trajectory. "Looking at the latest set of data, the U-turn of easing inflation and last month's blowout jobs figures, we don't expect to hear anything less than hawkish from Mr. Powell," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
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16883.0
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2023-03-05 00:00:00 UTC
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3 Growth Stocks That Are Screaming Buys in March
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https://www.nasdaq.com/articles/3-growth-stocks-that-are-screaming-buys-in-march
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The tech industry has long been known for its wealth of growth stocks, thanks to companies in a near-constant state of innovation and development. As a result, holding these stocks for the long term is one of the best ways to see substantial gains in your portfolio.
Hanging on to growth stocks can also safeguard your investment from temporary declines, as evident from the sell-off in 2022. Many tech companies suffered steep drops in their stocks last year amid economic headwinds, with the Nasdaq-100 Technology Sector index plunging about 40% over the year. However, despite market declines, many growth stocks still retained solid five- and 10-year stock growth.
So, here are three growth stocks that are screaming buys in March.
1. Apple
Apple (NASDAQ: AAPL) is the king of consistency and reliability, with its stock up 230% in the last five years and 839% in the last decade. The company's growth has come alongside steady financial development, which saw its revenue rise 48.47% to $394.33 billion since 2018. Meanwhile, operating income climbed 68.46% to $119.44 billion in the same period.
In the coming years, Apple has multiple opportunities for significant growth. The tech giant reportedly plans to venture into the augmented reality/virtual reality (AR/VR) market this year by launching its first-ever headset. The mixed-reality device will see Apple join the swiftly growing AR and VR market projected to hit $31.12 billion in 2023 and $52.05 billion by 2027 -- expanding at a compound annual growth rate (CAGR) of 12.72%.
Moreover, Apple will likely continue profiting from the rise of online subscription services. The company's digital offerings include Apple TV+, Music, News+, Fitness+, and Arcade, which now earn the second-largest portion of Apple's revenue. In fiscal 2022, services reported a 14% year-over-year revenue growth of $78.1 billion -- double the iPhone's growth. Services also provided attractive profit margins of 71.7%, while the same metric for products was 36.3%.
Apple's past performance of consistent growth over the long term and promising developments in its future make its stock a screaming buy this month.
2. Microsoft
As the home of potent brands such as Windows, Office, Xbox, Azure, and LinkedIn, Microsoft (NASDAQ: MSFT) has strong positions in operating systems, productivity software, gaming, cloud computing, and social media. The company's diversified business model led its stock to rise 166% in the last five years and 783% in the last decade.
Additionally, Microsoft's annual revenue increased by 79.66% to $198.27 billion since 2018, with operating income growing 137.8% to $83.38 billion.
A compelling reason to invest in Microsoft's stock is its priority on investing in future technologies. The company's launch of its cloud computing platform Azure in 2010 provided substantial gains over the years, with the service reporting revenue growth of 40% in the fourth quarter of 2022.
Meanwhile, Microsoft's $1 billion investment in start-up OpenAI in 2019 looks likely to pay off well over the long term after the release of ChatGPT, an advanced chatbot capable of producing human-like dialogue based on prompts. According to Grand View Research, the artificial intelligence (AI) market was valued at $136.55 billion in 2022 and is projected to grow at a CAGR of 37.3% through 2030. And Microsoft's increasing position in the market is promising for its future.
Consequently, Microsoft's varied business and long-term outlook make its stock a no-brainer buy right now.
3. Nvidia
Nvidia's (NASDAQ: NVDA) stock sunk 50% throughout 2022. However, its rise of 55% since the start of this year proves the importance of holding growth stocks over the long term and through temporary declines.
Despite last year's sell-off, Nvidia shares enjoyed five-year growth of 292%, rising over 7,000% in the last 10 years. The stellar stock rise has come as annual revenue soared 130% to $26.97 billion since 2019, and operating income has increased 46.6% to $5.57 billion.
Nvidia's significant year-to-date stock rise has come as investors have grown bullish over the company's prospects in AI. Considering the company is home to hardware capable of running and developing AI software with its graphics processing units (GPUs), Nvidia likely plays a crucial role in the market's development.
In fact, research firm TrendForce recently reported that OpenAI's ChatGPT could increase its demand for GPUs to 30,000, up from 20,000 in 2020. Meanwhile, multiple other companies are developing similar services, which will further boost the need for GPUs.
Nvidia suffered in 2022 amid PC market declines. However, its long-term growth has remained strong, with its prospects in AI making it a must-buy this March.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the king of consistency and reliability, with its stock up 230% in the last five years and 839% in the last decade. Apple's past performance of consistent growth over the long term and promising developments in its future make its stock a screaming buy this month. The company's launch of its cloud computing platform Azure in 2010 provided substantial gains over the years, with the service reporting revenue growth of 40% in the fourth quarter of 2022.
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Apple Apple (NASDAQ: AAPL) is the king of consistency and reliability, with its stock up 230% in the last five years and 839% in the last decade. Apple's past performance of consistent growth over the long term and promising developments in its future make its stock a screaming buy this month. Microsoft As the home of potent brands such as Windows, Office, Xbox, Azure, and LinkedIn, Microsoft (NASDAQ: MSFT) has strong positions in operating systems, productivity software, gaming, cloud computing, and social media.
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Apple Apple (NASDAQ: AAPL) is the king of consistency and reliability, with its stock up 230% in the last five years and 839% in the last decade. However, despite market declines, many growth stocks still retained solid five- and 10-year stock growth. Apple's past performance of consistent growth over the long term and promising developments in its future make its stock a screaming buy this month.
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Apple Apple (NASDAQ: AAPL) is the king of consistency and reliability, with its stock up 230% in the last five years and 839% in the last decade. Apple's past performance of consistent growth over the long term and promising developments in its future make its stock a screaming buy this month. Additionally, Microsoft's annual revenue increased by 79.66% to $198.27 billion since 2018, with operating income growing 137.8% to $83.38 billion.
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2023-03-05 00:00:00 UTC
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ANALYSIS-Foxconn races to become an EV player and the clock is ticking
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AAPL
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https://www.nasdaq.com/articles/analysis-foxconn-races-to-become-an-ev-player-and-the-clock-is-ticking
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nan
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By Sarah Wu and Ben Klayman
TAIPEI/DETROIT, March 6 (Reuters) - Foxconn wants to do for electric vehicles (EVs) what it has done with the iPhone, but first, it needs to find the next Apple – and fast.
The Taiwanese contract manufacturer faces competition in the market for creating white-label EVs that can be tailor-made for clients, whether that's a major automaker or a delivery provider or any other company.
And while the electronics giant brings established strengths to the mostly loss-making EV industry, Foxconn needs to win a big contract to prove it can ride the wave of disruption, analysts say.
Foxconn, formally called Hon Hai Precision Industry Co Ltd 2317.TW, will provide an update on its EV manufacturing business when it reports results on March 15.
"The results of many of our collaborations will be realized one after the other in 2023," the company said in a statement to Reuters. "The demand for EVs is driving industry disruption where prominent traditional automakers have and are pivoting to finding solutions for mobility that are cleaner and smarter."
The company's proposition is simple: let us build your next EV. It is developing a specialized supply chain, including chips and batteries, and has acquired the former General Motor Co GM.N plant in Lordstown, Ohio. It has also hired a former Nissan 7201.T executive, Jun Seki, to lead its efforts.
For now, by building in Ohio, Foxconn can offer customers access to U.S. federal incentives under the Inflation Reduction Act, Daiwa Capital Markets analyst Kylie Huang said. That's a selling point as traditional automakers juggle building gasoline-powered vehicles with plans to build their own EV capacity.
"If they don't get one this year, next year will be more difficult," Huang said of Foxconn's search for an EV contract with a traditional automaker.
Failure to "catch this wave" could force Foxconn to vie with lower-tier Chinese automakers who might switch to EV contract manufacturing and compete on cost, Huang said.
Canada's Magna International MG.TO, a top auto supplier, already builds cars for others, and China's Geely 0175.HK has expressed interest. China's Guangxi Automobile Group has started to make EVs on contract for Japanese delivery company, Sagawa Express Co.
Foxconn is counting on its Mobility in Harmony EV platform, or MIH, to win customers. It calls MIH "the Android system" for EVs and is soliciting partners in an effort to standardize technologies so model variants can be developed quickly and cheaply.
"We want to create that kind of ecosystem so anyone - for example, like United Airlines – can say, 'I want to make a car,'" Foxconn chief product officer Jerry Hsiao told Reuters during a tour of the company's sprawling Ohio plant.
"Sooner or later, maybe the top, traditional (automakers) say, 'Hey, I want to become a product marketing company. Why do I need to carry so many employees?'" he said.
Hsiao also worked on the first Android phone for Google and now sees EVs at a similar commercial inflection point.
Foxconn's ambitions are aggressive. Initially targeting 5% of the global EV market and the equivalent of $33 billion in revenue from manufacturing EVs and components by 2025, Foxconn's longer-term goal is to make nearly half the world's EVs.
EV sales have been rising, led by China. Five percent of the market, assuming an EV adoption rate of about 20% by 2025, would be around 900,000 vehicles, roughly what market-leader Tesla TSLA.O sold in 2021.
'NOT MAKING IPHONES'
"In the EV market, everyone's eyes are bigger than their stomach," said Sam Fiorani, vice president at AutoForecast Solutions.
His firm estimates Foxconn hitting about 65,000 vehicles in 2025 and 157,000 in 2026. "They're not making iPhones here," he said.
EV outsourcing will reach $36 billion in 2025 and $144 billion in 2030, with 800,000 and 3.2 million EVs, respectively, Goldman Sachs estimates.
Key for Foxconn will be scoring the first big customer to anchor its Ohio plant, which currently builds a small number of electric Endurance pickup trucks for Lordstown Motors, in which it owns a stake. It has announced plans to build a vehicle for EV startup Fisker FSR.N.
Foxconn Chairman Liu Young-way told reporters last month he plans to visit U.S. customers, Foxconn's Ohio plant and Mexico, where Foxconn has made significant investments in auto parts, in March or April.
"There should be some related signing activities," Liu said.
"They can probably buy things cheaper than anyone on earth," Raymond Tsang, a Shanghai-based partner at consultancy Bain & Company, said of Foxconn.
The former GM plant in Ohio that Foxconn purchased from Lordstown Motors is one of the highest volume single-line vehicle assembly plants in the world. It could build about 320,000 vehicles a year, excluding overtime.
Foxconn wants to build around 300,000 EVs at the plant, Ian Upton, director of production control at Foxconn Ohio, told Reuters.
"We would love to find a customer that's in the 250,000-or-so range and then we can fill up some of the other stuff with niche type things," he said.
(Reporting by Sarah Wu in Taipei and Ben Klayman in Detroit, additional reporting by Kevin Krolicki in Singapore; Editing by Sam Holmes)
((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters Messaging: benjamin.klayman.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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And while the electronics giant brings established strengths to the mostly loss-making EV industry, Foxconn needs to win a big contract to prove it can ride the wave of disruption, analysts say. "We want to create that kind of ecosystem so anyone - for example, like United Airlines – can say, 'I want to make a car,'" Foxconn chief product officer Jerry Hsiao told Reuters during a tour of the company's sprawling Ohio plant. Key for Foxconn will be scoring the first big customer to anchor its Ohio plant, which currently builds a small number of electric Endurance pickup trucks for Lordstown Motors, in which it owns a stake.
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By Sarah Wu and Ben Klayman TAIPEI/DETROIT, March 6 (Reuters) - Foxconn wants to do for electric vehicles (EVs) what it has done with the iPhone, but first, it needs to find the next Apple – and fast. China's Guangxi Automobile Group has started to make EVs on contract for Japanese delivery company, Sagawa Express Co. Foxconn is counting on its Mobility in Harmony EV platform, or MIH, to win customers. Foxconn Chairman Liu Young-way told reporters last month he plans to visit U.S. customers, Foxconn's Ohio plant and Mexico, where Foxconn has made significant investments in auto parts, in March or April.
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China's Guangxi Automobile Group has started to make EVs on contract for Japanese delivery company, Sagawa Express Co. Foxconn is counting on its Mobility in Harmony EV platform, or MIH, to win customers. Initially targeting 5% of the global EV market and the equivalent of $33 billion in revenue from manufacturing EVs and components by 2025, Foxconn's longer-term goal is to make nearly half the world's EVs. Foxconn wants to build around 300,000 EVs at the plant, Ian Upton, director of production control at Foxconn Ohio, told Reuters.
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That's a selling point as traditional automakers juggle building gasoline-powered vehicles with plans to build their own EV capacity. "Sooner or later, maybe the top, traditional (automakers) say, 'Hey, I want to become a product marketing company. "They're not making iPhones here," he said.
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16885.0
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2023-03-05 00:00:00 UTC
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2 Best Buffett Stocks to Buy for the Long Haul
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https://www.nasdaq.com/articles/2-best-buffett-stocks-to-buy-for-the-long-haul-3
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nan
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Everyone likes the idea of investing in the way Warren Buffett does, but his not-so-secret star ingredient, patience, can be tough to implement in practice. Since March 2003, the 650% total return of his company, Berkshire Hathaway, has proven his approach, trouncing the market's return of around 582%.
If you want to try to get something that will hopefully approximate those good returns over the next 20 years, it could be as simple as buying shares of a couple of Buffett's favorites and then forgetting about them for as long as you can manage it.
Here are two examples of Buffett stocks to anchor your portfolio for decades to come -- if your temperament is as consistently serene over time as his has been.
1. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a classic Warren Buffett stock, though he first invested in it as recently as 2006, and his holdings are now only worth around $57.7 million.
The company features an enduring competitive advantage built on the power of its consumer health brands like Tylenol and Band-Aids, and it also competes in the pharmaceutical industry to generate faster-paced growth than what its other products can deliver. As it can collect revenue from sales of those legendary brands for years and years, it makes sense why Buffett is bullish about its future -- and you should be too.
Beyond its household-name brands, Buffett's affection for J&J likely stems from its tortoise-style consistent growth, in which it incrementally adds to its earnings each year for decades on end, dropping shareholders some dividends and making share repurchases every quarter along the way. Since the fourth quarter of 2013, its quarterly net income has risen by an average of 15.2%, year over year, reaching more than $3.5 billion, and in the same period, its dividend has risen by 71% -- both of which point to the enduring success of its business model and its enduring financial strength.
What's more, the company will soon split into two, with one part taking over its consumer health business and the other retaining the Johnson & Johnson name as well as its pharmaceuticals and medical device business. That means Buffett and other shareholders will have the slow-growing consumer health business that he likes as well as a faster-paced pharma instead of just one stock, and the move could well make for better shareholder returns if the two entities can run leaner and more profitable operations after the separation, which is slated for sometime in 2023.
So, now is a special buying opportunity in J&J's history, as the conditions of slow and steady growth are rarely available directly alongside the potential for medium-paced expansion from sales of pharmaceuticals.
But there is one thing about J&J that the Oracle of Omaha is unlikely to be very pleased about: the ongoing litigation seeking billions of dollars in damages for cancers caused by its talcum powder products. Still, even if it has to pay out upwards of $3.5 billion for the existing set of claims against it, the company has more than $23.5 billion in cash and equivalents, so there's a very high chance it'll be able to continue chugging along for decades.
2. Apple
Apple (NASDAQ: AAPL) is another great example of a Warren Buffett stock thanks to its unstoppable brand, loyal customer base, dominant market position, tons of recurring revenue, and shareholder-friendly management. It's also one of Warren Buffett's biggest bets; he owns $116.3 billion worth of its shares, making it his largest holding in Berkshire Hathaway, accounting for 38.9% of its equity portfolio.
In fact, Buffett is on record as saying in 2020 that the company was "probably the best business I know in the world," which is high praise coming from the world's most illustrious investor, to say the least.
It isn't too surprising to see what Buffett likes about Apple, given that the company can make oodles of cash by making updates to its software packages and hardware products like the iPhone each year. In 2022, the tech titan brought in $394.3 billion in revenue and a net income of $99.8 billion, and in the first quarter of 2023 alone, it handed back $3.8 billion in dividends while also making $19 billion in share repurchases.
While it's possible that a competitor might make a phone or computer with better specs than Apple's, its ecosystem of products ensures that customers face high costs to defect, thereby protecting its market share.
Furthermore, Apple's rate of growth is quite high, and there's little indication of it slowing down even though its domestic market is permeated with its products. In the past five years, its quarterly net income climbed by an average of 18.3% year over year, even as its total expenses fell as a percentage of its annual revenue.
For a profitability stickler like Buffett, there's not much better than a company that can grow its top and bottom lines at the same time while also simultaneously slashing costs, and that's probably why Apple is his favorite company. And in case the above didn't make it clear enough: You should buy this stock and hold it forever because there's no whiff of anything that suggests Buffett got it wrong.
10 stocks we like better than Johnson & Johnson
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Johnson & Johnson 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) is another great example of a Warren Buffett stock thanks to its unstoppable brand, loyal customer base, dominant market position, tons of recurring revenue, and shareholder-friendly management. The company features an enduring competitive advantage built on the power of its consumer health brands like Tylenol and Band-Aids, and it also competes in the pharmaceutical industry to generate faster-paced growth than what its other products can deliver. Beyond its household-name brands, Buffett's affection for J&J likely stems from its tortoise-style consistent growth, in which it incrementally adds to its earnings each year for decades on end, dropping shareholders some dividends and making share repurchases every quarter along the way.
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Apple Apple (NASDAQ: AAPL) is another great example of a Warren Buffett stock thanks to its unstoppable brand, loyal customer base, dominant market position, tons of recurring revenue, and shareholder-friendly management. Beyond its household-name brands, Buffett's affection for J&J likely stems from its tortoise-style consistent growth, in which it incrementally adds to its earnings each year for decades on end, dropping shareholders some dividends and making share repurchases every quarter along the way. Since the fourth quarter of 2013, its quarterly net income has risen by an average of 15.2%, year over year, reaching more than $3.5 billion, and in the same period, its dividend has risen by 71% -- both of which point to the enduring success of its business model and its enduring financial strength.
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Apple Apple (NASDAQ: AAPL) is another great example of a Warren Buffett stock thanks to its unstoppable brand, loyal customer base, dominant market position, tons of recurring revenue, and shareholder-friendly management. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) is a classic Warren Buffett stock, though he first invested in it as recently as 2006, and his holdings are now only worth around $57.7 million. The Motley Fool recommends Johnson & Johnson and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Apple Apple (NASDAQ: AAPL) is another great example of a Warren Buffett stock thanks to its unstoppable brand, loyal customer base, dominant market position, tons of recurring revenue, and shareholder-friendly management. Beyond its household-name brands, Buffett's affection for J&J likely stems from its tortoise-style consistent growth, in which it incrementally adds to its earnings each year for decades on end, dropping shareholders some dividends and making share repurchases every quarter along the way. What's more, the company will soon split into two, with one part taking over its consumer health business and the other retaining the Johnson & Johnson name as well as its pharmaceuticals and medical device business.
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16886.0
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2023-03-05 00:00:00 UTC
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Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders Says to Avoid These 3 Big Mistakes
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https://www.nasdaq.com/articles/warren-buffetts-annual-letter-to-berkshire-hathaway-shareholders-says-to-avoid-these-3-big
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Investors around the world turn to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) annual letters for guidance. And while Warren Buffett's letters tend to include a great deal of wisdom, they also include mistakes to avoid -- especially during treacherous markets.
Here are three big mistakes to avoid in 2023 and beyond.
Image source: The Motley Fool.
Avoid major mistakes
Buffett believes that Berkshire has posted merely "satisfactory" results over its history. "Our satisfactory results have been the product of about a dozen truly good decisions -- that would be about one every five years -- and a sometimes-forgotten advantage that favors long-term investors such as Berkshire," said Buffett.
However, one thing that Buffett has done exceptionally well is to avoid a big mistake. And that characteristic makes Buffett and his team some of the greatest investors ever.
Avoiding major mistakes takes patience and an understanding of what you own and why you own it. The good news is that Buffett believes that both of these skills can be developed over time.
One way to avoid mistakes is by keeping a diversified portfolio. Yet even then, 80% of Berkshire Hathaway's public equity holdings are highly concentrated in just seven stocks. All seven companies are industry-leading businesses with wide moats and key advantages. Apple stock makes up over a third of Berkshire's public equity holdings. Yet Apple is also the largest U.S.-based public company with an entrenched position in the modern economy. So while Apple stock could fall in a significant way, it's unlikely it would become a major mistake in the same way as having a third of a portfolio in a small, unproven, unprofitable company.
Refrain from using leverage
Buffett and Charlie Munger are the most iconic duo in the investing world. Buffett's tangents pair nicely with Munger's short and humorous one-liners and simple explanations of complex topics.
In the 2022 shareholder letter, Buffett addresses the importance of having a great partner in Munger and cites several of Munger's recent thoughts. One of the quotes is on the topic of using leverage:
There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero. Don't count on getting rich twice.
The point is that anyone can get lucky. But to foster compounded gains over time, an investor must have a process that avoids all-or-nothing gambles.
Buffett and Munger have long warned about the use of leverage. Leverage can amplify gains to the upside and losses to the downside.
And they're not alone. When Tesla stock was close to its 52-week low in December, Elon Musk warned investors not to buy Tesla stock on margin even though he continues to believe Tesla will grow to become the most valuable company over time.
Avoiding leverage gives an investor a better chance of enduring market volatility.
Be an investor, not a stock picker
Throughout the financial world, the word "stock" is often used instead of "business" or "company." But Buffett prefers not to think of his investments as stocks but as businesses.
If you characterize a company as a stock, it becomes merely a number on a screen that can be bought and sold. This approach can lead the stock's price action to eclipse the true value of the business.
Another relevant quote from Buffett's letter is the following:
In our second category of ownership, we buy publicly traded stocks through which we passively own pieces of businesses. Holding these investments, we have no say in management. Our goal in both forms of ownership is to make meaningful investments in businesses with both long-lasting favorable economic characteristics and trustworthy managers. Please note particularly that we own publicly traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.
The best way to go several years or even decades without trading in and out of positions is to think of a stock as partial ownership in a company. Stocks are unique because they are highly liquid and trade on a sophisticated market with real-time offers to buy and sell. Instead of reading too much into this marketplace, it is better to use the liquidity as an advantage only when necessary instead of as a yardstick for the market to tell you what it thinks your company is worth at a given moment.
Focus on what matters most
Buffett's recent letter to Berkshire Hathaway shareholders is a fresh reminder not to get caught up in market volatility. If you're a long-term investor, you likely care much more about where a company will be five or 10 years from now than if it trades up or down by the end of 2023.
Avoiding big mistakes has helped Buffett post impressive returns over a 57-year period. Buffett and his team's ability to avoid a major mistake, paired with consistency over a long stretch of time is the differentiating factor that separates Buffett from other famous investors. Like any investor, Buffett will take his losses. But these losses often end up being recoverable because the vast majority of Berkshire's holdings are concentrated in quality businesses that Buffett and his team have spent numerous hours researching and vetting.
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Daniel Foelber has the following options: long September 2023 $146.67 calls on Tesla, short March 2023 $110 calls on Tesla, and short September 2023 $150 calls on Tesla. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Our satisfactory results have been the product of about a dozen truly good decisions -- that would be about one every five years -- and a sometimes-forgotten advantage that favors long-term investors such as Berkshire," said Buffett. Please note particularly that we own publicly traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. But these losses often end up being recoverable because the vast majority of Berkshire's holdings are concentrated in quality businesses that Buffett and his team have spent numerous hours researching and vetting.
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Avoid major mistakes Buffett believes that Berkshire has posted merely "satisfactory" results over its history. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Daniel Foelber has the following options: long September 2023 $146.67 calls on Tesla, short March 2023 $110 calls on Tesla, and short September 2023 $150 calls on 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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When Tesla stock was close to its 52-week low in December, Elon Musk warned investors not to buy Tesla stock on margin even though he continues to believe Tesla will grow to become the most valuable company over time. Buffett and his team's ability to avoid a major mistake, paired with consistency over a long stretch of time is the differentiating factor that separates Buffett from other famous investors. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Daniel Foelber has the following options: long September 2023 $146.67 calls on Tesla, short March 2023 $110 calls on Tesla, and short September 2023 $150 calls on Tesla.
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Be an investor, not a stock picker Throughout the financial world, the word "stock" is often used instead of "business" or "company." * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla.
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16887.0
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2023-03-05 00:00:00 UTC
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5 Warren Buffett Stocks That Regularly Make Over $5 Billion in Annual Profits
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https://www.nasdaq.com/articles/5-warren-buffett-stocks-that-regularly-make-over-%245-billion-in-annual-profits
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Warren Buffett is one of the greatest investors of all time. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has made shareholders a boatload of money through decades of wise acquisitions -- and an equities portfolio that's nearing a massive $329 billion.
Buffett and Berkshire are known for investing in "wonderful businesses at wonderful prices," as he put it in his latest shareholders letter, and what often makes a company wonderful in the eyes of Buffett is one that is highly profitable over a long period of time. Here are five stocks Berkshire owns that have averaged more than $5 billion in annual profits over the past eight years.
Apple: $63.5 billion average annual profits
The consumer tech giant Apple (NASDAQ: AAPL) is by far the largest holding in Berkshire's portfolio, making up about 41% of invested assets. Since 2015, Apple has averaged annual profits of about $63.5 billion -- but in recent years, annual profits have surged in excess of $95 billion as the company has greatly benefited from pandemic-era trends.
As people have worked from home more, they have stocked up on Apple devices. And the iPhone has an incredibly loyal customer base that not only helps the company hedge inflation to a certain extent but also generates predictable revenue as people upgrade their phones every few years.
Bank of America: $22.25 billion average annual profits
The second-largest bank by assets in the U.S., Bank of America (NYSE: BAC) has also been an incredibly profitable entity that is currently the second-largest position in Berkshire's portfolio.
Bank of America saw its profits dip early on in the pandemic as interest rates dropped to zero and the bank set aside hefty provisions for potential loan losses. But those losses never materialized and the bank was able to release those reserves back into earnings, which swelled to $32 billion in 2021. Earnings have remained elevated as the bank has benefited from soaring interest rates over the last year and benign credit quality.
While earnings may come under pressure as deposit costs rise and credit quality normalizes, large banks are typically very profitable organizations, and Bank of America is certainly a strong performer.
Chevron: $8.76 billion average annual profits
The large U.S. oil and gas producer Chevron (NYSE: CVX) has averaged $8.76 billion in annual profits since 2015 -- but in 2022, its profits soared to over $35 billion as the company benefited from rising oil prices, which just a few years ago were at zero dollars per barrel. The price of oil has taken off in the wake of Russia's invasion of Ukraine last year (which led to embargoes on Russian oil imports) and as the world's energy demands have normalized with the pandemic's effects easing. At the beginning of 2022, brent crude oil prices shot up to roughly $139 per barrel before settling back down to their recent levels around $84 per barrel.
Chevron's management team has said that the company can cover its capital expenditures and dividend as long as brent crude oil prices stay at or above $50 per barrel, a scenario that Buffett and Berkshire seem to feel quite confident about.
Coca-Cola: $7.05 billion average annual profits
While Berkshire has been invested in the iconic beverage brand for decades, Coca-Cola (NYSE: KO) has also done quite well in recent years, boosting profits to $9.5 billion in 2022. Similar to Apple, Coca-Cola has a lot of branding power, which helps it with pricing. As costs go up due to inflation, the company is able to raise prices on its products without a lot of pushback from its customers. But there are concerns about consumer demand and how the economy will fare this year, although Coca-Cola should be able to navigate a modest recession scenario.
American Express: $5.65 billion average annual profits
The credit card and payments company American Express (NYSE: AXP) has also served Buffett and Berkshire very well for decades. While annual profits have averaged $5.65 billion since 2015, net income jumped to about $7.5 billion in 2022 as the company benefited from a rebound in travel and lodging spending and higher interest rates.
American Express has also done a great job of capturing a premium customer base that spends at high levels and is less vulnerable to a recession. Management is also guiding for strong revenue and earnings growth this year and in 2024, which has impressed Wall Street.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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: $63.5 billion average annual profits The consumer tech giant Apple (NASDAQ: AAPL) is by far the largest holding in Berkshire's portfolio, making up about 41% of invested assets. And the iPhone has an incredibly loyal customer base that not only helps the company hedge inflation to a certain extent but also generates predictable revenue as people upgrade their phones every few years. Chevron's management team has said that the company can cover its capital expenditures and dividend as long as brent crude oil prices stay at or above $50 per barrel, a scenario that Buffett and Berkshire seem to feel quite confident about.
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Apple: $63.5 billion average annual profits The consumer tech giant Apple (NASDAQ: AAPL) is by far the largest holding in Berkshire's portfolio, making up about 41% of invested assets. Bank of America: $22.25 billion average annual profits The second-largest bank by assets in the U.S., Bank of America (NYSE: BAC) has also been an incredibly profitable entity that is currently the second-largest position in Berkshire's portfolio. Chevron: $8.76 billion average annual profits The large U.S. oil and gas producer Chevron (NYSE: CVX) has averaged $8.76 billion in annual profits since 2015 -- but in 2022, its profits soared to over $35 billion as the company benefited from rising oil prices, which just a few years ago were at zero dollars per barrel.
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Apple: $63.5 billion average annual profits The consumer tech giant Apple (NASDAQ: AAPL) is by far the largest holding in Berkshire's portfolio, making up about 41% of invested assets. Since 2015, Apple has averaged annual profits of about $63.5 billion -- but in recent years, annual profits have surged in excess of $95 billion as the company has greatly benefited from pandemic-era trends. Bank of America: $22.25 billion average annual profits The second-largest bank by assets in the U.S., Bank of America (NYSE: BAC) has also been an incredibly profitable entity that is currently the second-largest position in Berkshire's portfolio.
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Apple: $63.5 billion average annual profits The consumer tech giant Apple (NASDAQ: AAPL) is by far the largest holding in Berkshire's portfolio, making up about 41% of invested assets. Chevron: $8.76 billion average annual profits The large U.S. oil and gas producer Chevron (NYSE: CVX) has averaged $8.76 billion in annual profits since 2015 -- but in 2022, its profits soared to over $35 billion as the company benefited from rising oil prices, which just a few years ago were at zero dollars per barrel. Coca-Cola: $7.05 billion average annual profits While Berkshire has been invested in the iconic beverage brand for decades, Coca-Cola (NYSE: KO) has also done quite well in recent years, boosting profits to $9.5 billion in 2022.
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16888.0
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2023-03-05 00:00:00 UTC
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Foxconn reports fall in Feb sales, sticks to Q1 outlook
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https://www.nasdaq.com/articles/foxconn-reports-fall-in-feb-sales-sticks-to-q1-outlook
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Recasts, adds details
TAIPEI, March 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple, said on Sunday revenue in February fell 11.65% year-on-year due to weakness in smart consumer electronics, but stuck to its first quarter outlook.
Revenue last month still managed to reach the second highest on record for February at T$402.0 billion ($13.18 billion), with operations returning to normal at the COVID-disrupted Zhengzhou campus in China, a centre for iPhone production, the company said in a statement.
Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control COVID-19 prompted thousands of workers to leave Foxconn's 2317.TW factory lines in Zhengzhou.
Compared to the previous month, revenue dropped 39.12%, although cumulative sales for the first two months of the year jumped on-year 17.94% thanks to January's particularly strong performance when Zhengzhou operations began getting back on track.
For smart consumer electronics products, which includes smartphones, revenue in February fell year-on-year "due to conservative customers' pull-in", it said, without giving details.
Analysts say Foxconn assembles around 70% of iPhones. The Zhengzhou plant produces the majority of Apple's premium models, including the iPhone 14 Pro.
"Based on the revenue performance in the first two months, the outlook for first quarter 2023 is roughly in line with market expectation," Foxconn said without elaborating.
Analysts expect first-quarter revenue to grow by around 4% year-on-year, according to Refinitiv. The first quarter is traditionally a quieter period for Taiwan's tech manufacturers.
Apple Inc AAPL.O last month forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns.
Foxconn shares have risen 2.6% so far this year, underperforming the broader Taiwan market .TWII which is up 10.4%.
The company reports fourth-quarter earnings on March 15, when it will also elaborate on its outlook.
($1 = 30.4980 Taiwan dollars)
(Reporting by Ben Blanchard; Editing by William Mallard 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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Apple Inc AAPL.O last month forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns. Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control COVID-19 prompted thousands of workers to leave Foxconn's 2317.TW factory lines in Zhengzhou. For smart consumer electronics products, which includes smartphones, revenue in February fell year-on-year "due to conservative customers' pull-in", it said, without giving details.
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Apple Inc AAPL.O last month forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns. Recasts, adds details TAIPEI, March 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple, said on Sunday revenue in February fell 11.65% year-on-year due to weakness in smart consumer electronics, but stuck to its first quarter outlook. Revenue last month still managed to reach the second highest on record for February at T$402.0 billion ($13.18 billion), with operations returning to normal at the COVID-disrupted Zhengzhou campus in China, a centre for iPhone production, the company said in a statement.
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Apple Inc AAPL.O last month forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns. Recasts, adds details TAIPEI, March 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple, said on Sunday revenue in February fell 11.65% year-on-year due to weakness in smart consumer electronics, but stuck to its first quarter outlook. Revenue last month still managed to reach the second highest on record for February at T$402.0 billion ($13.18 billion), with operations returning to normal at the COVID-disrupted Zhengzhou campus in China, a centre for iPhone production, the company said in a statement.
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Apple Inc AAPL.O last month forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns. Recasts, adds details TAIPEI, March 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple, said on Sunday revenue in February fell 11.65% year-on-year due to weakness in smart consumer electronics, but stuck to its first quarter outlook. Compared to the previous month, revenue dropped 39.12%, although cumulative sales for the first two months of the year jumped on-year 17.94% thanks to January's particularly strong performance when Zhengzhou operations began getting back on track.
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16889.0
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2023-03-05 00:00:00 UTC
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3 Bargain Stocks You Can Buy Today and Hold Forever
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https://www.nasdaq.com/articles/3-bargain-stocks-you-can-buy-today-and-hold-forever-5
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Stock investors have been on a rollercoaster ride in recent years, with the COVID-19 pandemic sending shares in tech, streaming, and e-commerce companies skyrocketing in 2020 and 2021. Then, macroeconomic headwinds in 2022 triggered a sell-off that saw stocks in some of the world's most valuable companies plunge.
The market has gradually begun recovering since the start of 2023. However, plenty of opportunities exist to invest in solid growth stocks at bargain prices.
Here are three bargain stocks you can buy today and hold forever.
1. Apple
As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Its consistent focus on quality led it to gain almost unparalleled brand loyalty among consumers and become a steadily growing stock that investors can count on.
Apple's stock has risen about 240% over the last five years and around 880% over the last decade. However, one of the best reasons to invest in the company's stock is its performance amid economic challenges in 2022. While the Nasdaq Composite index fell 33% throughout last year, and companies such as Amazon and Netflix experienced stock declines of about 50%, Apple shares beat the market with its stock sliding a more moderate 27%.
In the first quarter of 2023, Apple reported dismal results, with revenue slipping 5.5% year over year and missing analysts' expectations by $4.5 billion. However, Apple shares have barely budged since the earnings release, mainly thanks to the company's reputation for consistent long-term growth.
Apple's forward price-to-earnings ratio (P/E) of 24.35 has decreased by 10.7% over the last year, presenting an exciting buying opportunity and making the company's stock a bargain.
2. Disney
This year officially marks 100 years of business for The Walt Disney Company (NYSE: DIS), solidifying it as one of history's most successful entertainment companies. The House of Mouse has dominating positions at the box office and in theme parks, with its streaming business likely to prove a lucrative venture over the long term.
While it's often helpful to look at a company's five-year stock growth to determine its future long-term performance, it's more complex with Disney. The start of the pandemic sent its stock plunging in 2020 as theater and park closures effectively depleted two crucial revenue streams. Launching its flagship streaming service Disney+ helped its stock recover in 2021 as home-bound people flocked to digital entertainment.
However, Disney was again hit by external factors in 2022, with economic declines dragging its stock down about 44% throughout the year. As a result, Disney shares declined 4% in the last five years and gained about 80% in the last decade.
Disney is the exception and not the rule in this case. Its previous five-year stock performance is not indicative of the next five years. The company has seen a solid return to park guests and theater audiences, with park revenue and operating income up more than 20% in the first quarter of 2023. Meanwhile, its release of Avatar: The Way of Water generated over $2.24 billion and surpassed 1998's Titanic to become the world's third-highest grossing film ever.
Disney's forward P/E of 23.72 decreased 38.88% over the last year, meaning its current stock price offers a lot of value, That makes it a screaming buy this month and one you can hold indefinitely.
3. Alphabet
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments. However, economic challenges won't last forever, with Alphabet remaining an excellent stock to buy and hold over many years.
With powerful brands such as YouTube, Android, Fitbit, and the many services under Google, Alphabet is a mammoth in the tech industry that will likely continue to expand for decades. The company's stock increased about 71% over the last five years and more than 235% over the last decade. The growth came alongside annual revenue, which climbed 106.7% to $282.84 billion since 2019, while operating income soared 129.6% to $74.84 billion.
Alphabet's latest quarter disappointed, with revenue missing Wall Street forecasts by about $440 million. However, its Google Cloud segment continued to thrive, with revenue rising 32% year over year. Meanwhile, the company's announcement that it would put a stronger focus on developing artificial intelligence, a high-growth market, is promising for its long-term future.
As with other stocks on this list, Alphabet's forward P/E of 18 is too good to ignore. The figure fell 36% over the last 12 months, with investors seemingly over-cautious about the growth stock. As a result, now is an excellent time to invest in Alphabet shares with plans to hold forever.
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 February 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, 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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Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Apple's forward price-to-earnings ratio (P/E) of 24.35 has decreased by 10.7% over the last year, presenting an exciting buying opportunity and making the company's stock a bargain. The House of Mouse has dominating positions at the box office and in theme parks, with its streaming business likely to prove a lucrative venture over the long term.
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Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Alphabet Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney.
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Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. While the Nasdaq Composite index fell 33% throughout last year, and companies such as Amazon and Netflix experienced stock declines of about 50%, Apple shares beat the market with its stock sliding a more moderate 27%. Alphabet Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments.
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Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. While it's often helpful to look at a company's five-year stock growth to determine its future long-term performance, it's more complex with Disney. As a result, Disney shares declined 4% in the last five years and gained about 80% in the last decade.
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16890.0
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2023-03-04 00:00:00 UTC
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Validea Guru Fundamental Report for AAPL - 3/4/2023
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AAPL
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-3-4-2023
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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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16891.0
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2023-03-04 00:00:00 UTC
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2 Top Warren Buffett Stocks to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-in-2023
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nan
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nan
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The Oracle of Ohama, Warren Buffett, is known for many things. Not the least of these is his long-held strategy of investing in robust, undervalued businesses in resilient industries with strong tailwinds to future growth -- and then building upon those positions over the years.
Buffett-led Berkshire Hathway (NYSE: BRK.A) (NYSE: BRK.B) has exhibited the strength of this simple philosophy time and time again. Shares of the conglomerate have delivered a total return of about 200% over the trailing decade, a smidgen behind the S&P 500's total return of 220% in that same period.
Berkshire Hathaway invests in a wide range of stocks, from financial companies to consumer goods businesses to tech companies. If you're looking to invest in stocks with the Warren Buffett seal of approval in 2023, here are two notable positions he has now.
1. Apple
Apple (NASDAQ: AAPL) is the single largest holdings in Berkshire Hathaway's basket of publicly traded companies, comprising approximately 41% of its total portfolio. Although many investors seemed to have soured on the idea of tech stocks over the last year, this is a business that continues to impress on a multitude of fronts, in terms of not only its steady sales growth and profitability but also its continued chokehold on market share in key segments, the growth across its diverse lineup of businesses, and its long habit of consistent dividend payments.
The most recent quarter alone saw Apple deliver $25 billion in dividends to shareholders. Even though the stock itself yields less than 1% right now, the company's dividend has risen 26% over the past five years alone and driven a total return of 250% in that same time frame.
Amid the evolving spending habits of consumers in a difficult economic environment, people are still continuing to buy the company's hardware offerings like iPhones, Macs, iPads, and wearables in droves, while Apple's services segment -- now the second-largest driver of its top and bottom lines -- is raking in sales from subscription-centric options like Apple Fitness+, Apple TV+, and Apple Music.
The most recent quarter saw Apple reach a record number of devices installed globally -- two billion, in fact -- while reporting net sales of $117 billion and net income of $30 billion for the three-month stretch. While those net sales and net income figures were down year over year, they represented increases of 28% and 35%, respectively, from the same quarter three years ago.
Smartphone sales still account for the lion's share of Apple's sales, and they came in at $66 billion for the three-month period, followed by $21 billion in sales from its services segment. The company's Mac, iPad, and Wearables/Home/Accessories businesses brought in respective net sales of $7.7 billion, $9.4 billion, and $13.5 billion. Apple also generated $34 billion in operating cash flow during the quarter.
Apple may be a veritable giant in each of the core segments it operates in, but its market footprint means that it's well-positioned to capitalize on the continued growth of these spaces while raking in cash and profits to launch itself into new markets, from advertising to diabetes care. Income investors seeking a no-brainer stock for a long-term buy-and-hold position may want to consider adding this tech stock to their buy basket.
2. Mastercard
Mastercard (NYSE: MA) accounts for roughly 0.4% of Berkshire's portfolio, which still comes to about 4 million shares. The financial services giant accounts for 24% of all credit card transactions performed globally and boasts a market share of 26% in the U.S. alone. Meanwhile, Mastercard's market dominance means that it is ideally placed to capitalize on the continued growth of the payment processing industry, a space that remains on track to witness considerable growth over the coming years as adoption of the internet and other technologies widens.
Mastercard is another faithful dividend payer with a notable track record of not only paying out but raising its dividend. Although the stock also boasts a below-average yield (approximately 0.7% at the time of this writing), its dividend has risen 850% over the trailing decade alone. And the stock has delivered a total return of 630% to investors in that same stretch of time.
For 2022, Mastercard reported net revenue of $22 billion while net income totaled $10 billion. On a currency-neutral basis, these figures represented respective increases of 23% and 21% from 2021. Operating income hit $12 billion in 2022, up 30% from the prior year.
It's important to understand that Mastercard isn't in the business of extending credit; rather, it makes the lion's share of its revenue and profits based on fees derived from transactions using its branded financial products, like credit cards. So the greater the transaction volume in a given period, the more money Mastercard makes. A recessionary period could indeed pose headwinds for this kind of business.
However, Mastercard has been through its fair share of market storms, and there's also the reality that difficult economic times tend to see consumers accrue more debt, not less, which could also indirectly benefit the company in that transaction volume could still remain high in such a period.
For investors with a minimum buy-and-hold horizon of three to five years, this steadily growing stock and dividend payer with a foothold in one of the most lucrative industries in the world remains a compelling buy.
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 February 8, 2023
Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Mastercard. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the single largest holdings in Berkshire Hathaway's basket of publicly traded companies, comprising approximately 41% of its total portfolio. Not the least of these is his long-held strategy of investing in robust, undervalued businesses in resilient industries with strong tailwinds to future growth -- and then building upon those positions over the years. However, Mastercard has been through its fair share of market storms, and there's also the reality that difficult economic times tend to see consumers accrue more debt, not less, which could also indirectly benefit the company in that transaction volume could still remain high in such a period.
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Apple Apple (NASDAQ: AAPL) is the single largest holdings in Berkshire Hathaway's basket of publicly traded companies, comprising approximately 41% of its total portfolio. The financial services giant accounts for 24% of all credit card transactions performed globally and boasts a market share of 26% in the U.S. alone. For 2022, Mastercard reported net revenue of $22 billion while net income totaled $10 billion.
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Apple Apple (NASDAQ: AAPL) is the single largest holdings in Berkshire Hathaway's basket of publicly traded companies, comprising approximately 41% of its total portfolio. Although many investors seemed to have soured on the idea of tech stocks over the last year, this is a business that continues to impress on a multitude of fronts, in terms of not only its steady sales growth and profitability but also its continued chokehold on market share in key segments, the growth across its diverse lineup of businesses, and its long habit of consistent dividend payments. Amid the evolving spending habits of consumers in a difficult economic environment, people are still continuing to buy the company's hardware offerings like iPhones, Macs, iPads, and wearables in droves, while Apple's services segment -- now the second-largest driver of its top and bottom lines -- is raking in sales from subscription-centric options like Apple Fitness+, Apple TV+, and Apple Music.
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Apple Apple (NASDAQ: AAPL) is the single largest holdings in Berkshire Hathaway's basket of publicly traded companies, comprising approximately 41% of its total portfolio. And the stock has delivered a total return of 630% to investors in that same stretch of time. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Rachel Warren has positions in Apple.
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16892.0
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2023-03-03 00:00:00 UTC
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AI stocks surge as investors bet on growth prospects
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AAPL
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https://www.nasdaq.com/articles/ai-stocks-surge-as-investors-bet-on-growth-prospects
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nan
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nan
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Updates prices to open; adds details, comments
March 3 (Reuters) - Shares of artificial intelligence-based (AI) product makers zoomed on Friday, as a strong forecast from retail darling C3.ai Inc AI.N amplified an ongoing euphoria in the segment driven by the launch of OpenAI's ChatGPT.
C3.a1 forecast better-than-expected revenue and profit for both the fourth quarter and fiscal year 2023, after its third-quarter results topped Wall Street estimates.
Shares of the AI software provider were up 16% at $24.80, and were one of the top five trending stocks on StockTwits. If the gains hold, the stock is set to notch its strongest one-day gain in a month.
"The company is starting to gain momentum in building significant enterprise opportunities in its pipeline with its suite of innovative enterprise AI solutions," said Wedbush analyst Daniel Ives.
The firm's aim to turn cash positive and adjusted profitable by the end of fiscal year 2024 also boosted the stock, but Ives believes the execution of these ambitions is key to regain the Street's confidence heading into 2023.
Retail investors have flocked to small-cap firms building AI tools as companies such as Google-parent Alphabet Inc AAPL.O and Microsoft Corp MSFT.O have locked horns to make AI the next big growth driver.
Microsoft's investment in OpenAI's ChatGPT boosted AI firms' popularity further. Chatbots like the ChatGPT are software applications that aim to mimic human conversation using artificial intelligence.
Other major AI stocks also surged on Friday with BigBear.ai BBAI.N, conversation intelligence firm SoundHound AI SOUN.O, and Thailand's security firm Guardforce AI GFAI.O jumping between 5% and 20%.
So far this year, these stocks, including C3.ai, have surged 33.9%-321.6%, as of the previous day's close.
"AI could become the new gold rush on Wall Street," said Adam Sarhan, chief executive officer of 50 Park Investments in Florida.
(Reporting by Ankika Biswas in Bengaluru; editing by Uttaresh Venkateshwaran)
((Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Retail investors have flocked to small-cap firms building AI tools as companies such as Google-parent Alphabet Inc AAPL.O and Microsoft Corp MSFT.O have locked horns to make AI the next big growth driver. Updates prices to open; adds details, comments March 3 (Reuters) - Shares of artificial intelligence-based (AI) product makers zoomed on Friday, as a strong forecast from retail darling C3.ai Inc AI.N amplified an ongoing euphoria in the segment driven by the launch of OpenAI's ChatGPT. C3.a1 forecast better-than-expected revenue and profit for both the fourth quarter and fiscal year 2023, after its third-quarter results topped Wall Street estimates.
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Retail investors have flocked to small-cap firms building AI tools as companies such as Google-parent Alphabet Inc AAPL.O and Microsoft Corp MSFT.O have locked horns to make AI the next big growth driver. The firm's aim to turn cash positive and adjusted profitable by the end of fiscal year 2024 also boosted the stock, but Ives believes the execution of these ambitions is key to regain the Street's confidence heading into 2023. Microsoft's investment in OpenAI's ChatGPT boosted AI firms' popularity further.
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Retail investors have flocked to small-cap firms building AI tools as companies such as Google-parent Alphabet Inc AAPL.O and Microsoft Corp MSFT.O have locked horns to make AI the next big growth driver. The firm's aim to turn cash positive and adjusted profitable by the end of fiscal year 2024 also boosted the stock, but Ives believes the execution of these ambitions is key to regain the Street's confidence heading into 2023. Other major AI stocks also surged on Friday with BigBear.ai BBAI.N, conversation intelligence firm SoundHound AI SOUN.O, and Thailand's security firm Guardforce AI GFAI.O jumping between 5% and 20%.
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Retail investors have flocked to small-cap firms building AI tools as companies such as Google-parent Alphabet Inc AAPL.O and Microsoft Corp MSFT.O have locked horns to make AI the next big growth driver. The firm's aim to turn cash positive and adjusted profitable by the end of fiscal year 2024 also boosted the stock, but Ives believes the execution of these ambitions is key to regain the Street's confidence heading into 2023. Microsoft's investment in OpenAI's ChatGPT boosted AI firms' popularity further.
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16893.0
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2023-03-03 00:00:00 UTC
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US STOCKS-Wall Street climbs as yields pull back
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-as-yields-pull-back
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
March 3 (Reuters) - U.S. stocks rose on Friday as Treasury yields took a breather from a week-long rally that was sparked by worries that the Federal Reserve would keep interest rates higher for longer to tame stubborn inflation.
Wall Street indexes have had a volatile start to March after the latest economic data pointed to rising raw material costs and a resilient labor market, while signaling that the U.S. central bank was yet to see the desired impact of its policy tightening measures on inflation.
The U.S. 10-year Treasury yield US10YT=RR fell on Friday after touching a four-month high in the previous session but stayed above the 4% level. US/
"What is driving the optimism despite the new data we received in contrast to January is investors are still open for the next Fed meeting to come up with a 25 basis point hike," said Guido Petrelli, chief executive officer of Merlin Investor.
Offering respite to stock markets on Thursday, Atlanta Fed President Raphael Bostic said the impact of higher rates on the economy might only begin to "bite" in earnest this spring, an argument for the Fed to stick with "steady" quarter-point rate increases.
Hawkish comments from Fed policymakers and recent economic data have pushed traders to price in at least three more 25 basis point rate hikes this year and see interest rates peaking at 5.43% by September from the current 4.66%. FEDWATCH
The odds of a bigger 50 basis point rate hike in March stood at just 20% but investors are awaiting monthly payrolls and consumer prices data to see if the Fed will go big later this month.
The Institute for Supply Management's survey, due at 10:00 a.m. ET, is expected to show that a gauge of services sector activity in February eased to 54.5 in February from 55.2 in January.
Central bank officials including Bostic and Fed Dallas President Lorie Logan are scheduled to speak later in the day.
Nine of the 11 major S&P sectors were higher, with communication services .SPLRCL and technology .SPLRCT indexes leading gains.
Dell Technologies Inc DELL.N slipped 0.9% after it forecast current-quarter revenue and profit below Wall Street estimates, hit by an ongoing demand slump in its PC business.
Marvell Technology Inc MRVL.O slid 9% after the semiconductor maker reported lower-than-expected first-quarter profit and forecasts revenue below analysts' estimates.
Hewlett Packard Enterprise HPE.N rose 2.1% after the laptop maker gave an upbeat full-year earnings forecast.
Broadcom Inc AVGO.O rose 4.3% after the chipmaker forecast second-quarter revenue above analysts' estimates as increased investments in AI spurred demand for chips.
Advancing issues outnumbered decliners by a 2.98-to-1 ratio on the NYSE and 1.67-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and two new lows, while the Nasdaq recorded 36 new highs and 18 new lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Sruthi Shankar and Shristi Achar A March 3 (Reuters) - U.S. stocks rose on Friday as Treasury yields took a breather from a week-long rally that was sparked by worries that the Federal Reserve would keep interest rates higher for longer to tame stubborn inflation. Wall Street indexes have had a volatile start to March after the latest economic data pointed to rising raw material costs and a resilient labor market, while signaling that the U.S. central bank was yet to see the desired impact of its policy tightening measures on inflation. Dell Technologies Inc DELL.N slipped 0.9% after it forecast current-quarter revenue and profit below Wall Street estimates, hit by an ongoing demand slump in its PC business.
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Offering respite to stock markets on Thursday, Atlanta Fed President Raphael Bostic said the impact of higher rates on the economy might only begin to "bite" in earnest this spring, an argument for the Fed to stick with "steady" quarter-point rate increases. FEDWATCH The odds of a bigger 50 basis point rate hike in March stood at just 20% but investors are awaiting monthly payrolls and consumer prices data to see if the Fed will go big later this month. Marvell Technology Inc MRVL.O slid 9% after the semiconductor maker reported lower-than-expected first-quarter profit and forecasts revenue below analysts' estimates.
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By Sruthi Shankar and Shristi Achar A March 3 (Reuters) - U.S. stocks rose on Friday as Treasury yields took a breather from a week-long rally that was sparked by worries that the Federal Reserve would keep interest rates higher for longer to tame stubborn inflation. Offering respite to stock markets on Thursday, Atlanta Fed President Raphael Bostic said the impact of higher rates on the economy might only begin to "bite" in earnest this spring, an argument for the Fed to stick with "steady" quarter-point rate increases. Hawkish comments from Fed policymakers and recent economic data have pushed traders to price in at least three more 25 basis point rate hikes this year and see interest rates peaking at 5.43% by September from the current 4.66%.
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The U.S. 10-year Treasury yield US10YT=RR fell on Friday after touching a four-month high in the previous session but stayed above the 4% level. Hawkish comments from Fed policymakers and recent economic data have pushed traders to price in at least three more 25 basis point rate hikes this year and see interest rates peaking at 5.43% by September from the current 4.66%. Marvell Technology Inc MRVL.O slid 9% after the semiconductor maker reported lower-than-expected first-quarter profit and forecasts revenue below analysts' estimates.
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16894.0
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2023-03-03 00:00:00 UTC
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Dow Movers: TRV, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-trv-aapl
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nan
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nan
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In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. Year to date, Apple registers a 14.5% gain.
And the worst performing Dow component thus far on the day is Travelers Companies, trading down 0.8%. Travelers Companies is lower by about 3.0% looking at the year to date performance.
Two other components making moves today are Dow, trading down 0.8%, and Cisco Systems, trading up 1.4% on the day.
VIDEO: Dow Movers: TRV, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: TRV, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 0.8%.
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VIDEO: Dow Movers: TRV, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. Year to date, Apple registers a 14.5% gain.
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VIDEO: Dow Movers: TRV, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 0.8%.
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VIDEO: Dow Movers: TRV, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Travelers Companies, trading down 0.8%. Travelers Companies is lower by about 3.0% looking at the year to date performance.
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16895.0
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2023-03-03 00:00:00 UTC
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Why Apple Shares Were Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-shares-were-higher-today
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) were up by 2.6% by 11 a.m. ET today. The rise comes after Morgan Stanley (NYSE: MS) analyst Erik Woodring raised his price target from $175 to $180, highlighting five catalysts for the stock:
Increasing iPhone demand
Accelerating services growth
New product launches
Record gross margins
A potential iPhone subscription
So what
While increasing demand for iPhones, the success of new product launches, and the iPhone subscription service are subject to debate, it's beyond doubt that Apple has a significant opportunity to grow services revenue and improve gross margin.
For example, while reported services growth was just 6% in the last quarter, Apple was hit with adverse foreign exchange movements. Nevertheless, on a constant currency basis, services revenue grew by 13%, easily in line with Woodring's expectation for double-digit services growth in 2023.
On its recentearnings call chief financial officer Luca Maestri said that Apple's "installed base of active devices grew double digits and achieved all-time records in each geographic segment and in each major product category." With over 2 billion active devices, the company has ample opportunity to grow service revenue into that installed base.
Given that its services gross margin is nearly 71% compared to its products' gross margin of about 37%, the opportunity to expand margins by growing services revenue is clear.
Now what
Apple is growing its services revenue at an impressive rate, and the company has an underlying opportunity from increasing market share in international markets. An iPhone subscription service is highly likely to help the company to at least maintain its dominant market position.
That said, the key to the investment case is, as ever, the success of growing product sales, particularly the iPhone. If that goes to plan, then all the other catalysts mentioned by Woodring will come into play, potentially leading to a significant upside for the stock.
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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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What happened Shares of Apple (NASDAQ: AAPL) were up by 2.6% by 11 a.m. On its recentearnings call chief financial officer Luca Maestri said that Apple's "installed base of active devices grew double digits and achieved all-time records in each geographic segment and in each major product category." With over 2 billion active devices, the company has ample opportunity to grow service revenue into that installed base.
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What happened Shares of Apple (NASDAQ: AAPL) were up by 2.6% by 11 a.m. The rise comes after Morgan Stanley (NYSE: MS) analyst Erik Woodring raised his price target from $175 to $180, highlighting five catalysts for the stock: Increasing iPhone demand Accelerating services growth New product launches Record gross margins A potential iPhone subscription So what While increasing demand for iPhones, the success of new product launches, and the iPhone subscription service are subject to debate, it's beyond doubt that Apple has a significant opportunity to grow services revenue and improve gross margin. On its recentearnings call chief financial officer Luca Maestri said that Apple's "installed base of active devices grew double digits and achieved all-time records in each geographic segment and in each major product category."
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What happened Shares of Apple (NASDAQ: AAPL) were up by 2.6% by 11 a.m. The rise comes after Morgan Stanley (NYSE: MS) analyst Erik Woodring raised his price target from $175 to $180, highlighting five catalysts for the stock: Increasing iPhone demand Accelerating services growth New product launches Record gross margins A potential iPhone subscription So what While increasing demand for iPhones, the success of new product launches, and the iPhone subscription service are subject to debate, it's beyond doubt that Apple has a significant opportunity to grow services revenue and improve gross margin. Given that its services gross margin is nearly 71% compared to its products' gross margin of about 37%, the opportunity to expand margins by growing services revenue is clear.
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What happened Shares of Apple (NASDAQ: AAPL) were up by 2.6% by 11 a.m. The rise comes after Morgan Stanley (NYSE: MS) analyst Erik Woodring raised his price target from $175 to $180, highlighting five catalysts for the stock: Increasing iPhone demand Accelerating services growth New product launches Record gross margins A potential iPhone subscription So what While increasing demand for iPhones, the success of new product launches, and the iPhone subscription service are subject to debate, it's beyond doubt that Apple has a significant opportunity to grow services revenue and improve gross margin. Now what Apple is growing its services revenue at an impressive rate, and the company has an underlying opportunity from increasing market share in international markets.
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16896.0
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2023-03-03 00:00:00 UTC
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Guide to Artificial Intelligence ETFs
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AAPL
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https://www.nasdaq.com/articles/guide-to-artificial-intelligence-etfs
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nan
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nan
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Robots and artificial intelligence (AI) are increasingly gaining precedence in our daily life. The pandemic-driven stay-at-home trend made these more important as we have become more dependent on technology. The growing accessibility and falling costs are also making the space more demanding and lucrative.
The global artificial intelligence market size was valued at $136.55 billion in 2022 and is projected to witness a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, per Grand View Research.The recent success of ChatGPT also made the space even more intriguing. ChatGPT is an artificial intelligence chatbot developed by OpenAI and launched in November 2022.
It is constructed on top of OpenAI's GPT-3 family of large language models and has been modified further using both supervised and reinforcement learning techniques. OpenAI has now been working on a more powerful version of the ChatGPT system called GPT-4, which is set to be released in 2023.
Worldwide revenues for the AI market were $383.3 billion in 2021, up 20.7% year over year, per IDC. Notably, IDC expects the AI market value to have reached about $450 billion in 2022 and maintain a year-over-year growth rate in the high teens throughout the five-year forecast.
How Hot Is Artificial Intelligence as an Investing Area?
Artificial intelligence can transform the productivity and GDP potential of the global economy, per a PWC article. PWC’s research reveals that 45% of total economic gains by 2030 will come from product enhancements, boosting consumer demand. This will be possible because AI will bring about product variety, with increased personalization and affordability. The maximum economic benefit from AI will be in China (26% boost to GDP in 2030) and North America (14.5% boost), per PWC.
Ark Investment Management founder Cathie Wood also sees it as a fast-growing area. “We were assuming that in the next 10 years, artificial intelligence would deliver, in the enterprise software space, a market cap opportunity of $30 trillion,” the star stockpicker said at a Milken Institute conference last month. “Our new number is $80 trillion,” per Cathie Wood, as quoted on a MoneyWise article.
Big Techs Foraying Into A.I. With Full Force
Microsoft MSFT is investing billions into OpenAI, the creator of ChatGPT, and launched its new AI-powered Bing search and Edge browser. CEO Satya Nadella told CNBC that AI is the biggest thing to have happened to the company in the nine years since he took over (read: ChatGPT & AI Mania: Stocks & ETFs in Focus).
Alphabet GOOGL, which has invested heavily in AI and machine learning over the past few years, rushed to roll out its chatbot competitor BARD. However, BARD failed to see initial success as it gave inaccurate information. Meta Platform is releasing a new AI tool LLaMA. Baidu BIDU revealed its plan to launch ChatGPT-style ‘Ernie Bot’ in early Feb.
Apple AAPL and Amazon AMZN also have enormous roles to play in the field, according to Wedbush, as quoted on Fortune. In a nutshell, the AI war among tech behemoths is heating up as generative technologies capture investors’ attention.
Not only these big techs, there are many small-scale A.I. companies that could be tapped at a go with the ETF approach. Against this backdrop, below, we highlight a few artificial intelligence ETFs that are great bets now.
ETFs in Detail
AI Powered Equity ETF AIEQ
The first actively managed ETF to fully utilize artificial intelligence as a method for stock selection. The $120.3-million fund charges 75 bps in fees. The fund holds 141 stocks in total. Novavax (4.75%), Oracle (4.69%) and Citigroup (3.90%) hold the top three positions.
The ROBO Global Robotics and Automation Index ETF ROBO
The ROBO Global Robotics and Automation Index ETF is the first in the space, following the ROBO Global Robotics and Automation Index, which measures the performance of companies that derive a portion of revenues and profits from robotics-related or automation-related products or services. The fund has an asset base of $1.31 billion.
ROBO invests in about 80 global companies that are driving transformative innovations in robotics, automation, and AI. No stock accounts for more than 2.16% of the fund. The fund ROBO charges 95 bps in fees.
The Global X Robotics & Artificial Intelligence ETF BOTZ
The Global X Robotics & Artificial Intelligence ETF is the largest product in the space, with more than $1.52 billion in assets. The fund follows the Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
Intuitive Surgical (10.15%), ABB LTD (9.84%) and KEYENCE (9.37%) get the highest allocations in the portfolio of BOTZ. The fund charges 68 bps in fees.
iShares Robotics and Artificial Intelligence Multisector ETF IRBO
iShares Robotics and Artificial Intelligence Multisector ETF has amassed about $275.6 million in assets. IRBO is the cheapest product in the space charging only 47 bps in fees. iShares Robotics and Artificial Intelligence Multisector ETF follows an equal-weighted index. No stock makes up more than 1.62% of the fund.
First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT
The First Trust Nasdaq Artificial Intelligence and Robotics ETF follows the underlying Nasdaq CTA Artificial Intelligence and Robotics Index, which is designed to track the performance of companies engaged in Artificial intelligence, robotics and automation. The $213.3-million-fund follows a modified equal-weighted index. The 113-stock fund ROBT charges 65 bps in fees. No stock accounts for more than 2.69% of the fund.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
AI Powered Equity ETF (AIEQ): ETF Research Reports
First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): 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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Baidu BIDU revealed its plan to launch ChatGPT-style ‘Ernie Bot’ in early Feb. Apple AAPL and Amazon AMZN also have enormous roles to play in the field, according to Wedbush, as quoted on Fortune. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports AI Powered Equity ETF (AIEQ): ETF Research Reports First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports To read this article on Zacks.com click here. The global artificial intelligence market size was valued at $136.55 billion in 2022 and is projected to witness a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, per Grand View Research.The recent success of ChatGPT also made the space even more intriguing.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports AI Powered Equity ETF (AIEQ): ETF Research Reports First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports To read this article on Zacks.com click here. Baidu BIDU revealed its plan to launch ChatGPT-style ‘Ernie Bot’ in early Feb. Apple AAPL and Amazon AMZN also have enormous roles to play in the field, according to Wedbush, as quoted on Fortune. iShares Robotics and Artificial Intelligence Multisector ETF IRBO iShares Robotics and Artificial Intelligence Multisector ETF has amassed about $275.6 million in assets.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports AI Powered Equity ETF (AIEQ): ETF Research Reports First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports To read this article on Zacks.com click here. Baidu BIDU revealed its plan to launch ChatGPT-style ‘Ernie Bot’ in early Feb. Apple AAPL and Amazon AMZN also have enormous roles to play in the field, according to Wedbush, as quoted on Fortune. The Global X Robotics & Artificial Intelligence ETF BOTZ The Global X Robotics & Artificial Intelligence ETF is the largest product in the space, with more than $1.52 billion in assets.
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Baidu BIDU revealed its plan to launch ChatGPT-style ‘Ernie Bot’ in early Feb. Apple AAPL and Amazon AMZN also have enormous roles to play in the field, according to Wedbush, as quoted on Fortune. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports AI Powered Equity ETF (AIEQ): ETF Research Reports First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports To read this article on Zacks.com click here. Worldwide revenues for the AI market were $383.3 billion in 2021, up 20.7% year over year, per IDC.
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16897.0
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2023-03-03 00:00:00 UTC
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US STOCKS-Wall Street rallies, on course for weekly gains as Treasury yields dip
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-on-course-for-weekly-gains-as-treasury-yields-dip
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nan
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nan
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By Stephen Culp
NEW YORK, March 3 (Reuters) - Wall Street advanced on Friday near the close of an up-and-down week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will keep its restrictive policy in place for longer than anticipated.
All three U.S. stock indexes were positive, led by the tech-laden Nasdaq, which was given a solid boost by market leading, interest rate sensitive megacaps. U.S. Treasury yields eased in the wake of comments from Fed officials that calmed fears over inflation and interest rates.
For the week, the indexes appear to be on track to notch gains, with the S&P snapping a three-week losing streak and the Dow enjoying its first weekly gain since late January.
The week also saw the benchmark S&P 500 break through its 50- and 200-day moving averages, two closely watched technical levels.
"You have a market that's oversold, that traded down to major support levels and it’s above the resistance level of the 50" day moving average, said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "It’s an indication that a shift is transpiring. And a lot of people are suspect of it, but they don't want to be left behind."
Economic data released on Friday showed steady demand for services, with purchasing managers' indexes (PMI) from the Institute for Supply Management and S&P Global indicating that activity in the sector continues to expand even as input prices cool.
"Nothing indicates we're going off a cliff," Pavlik added. "The employment market is still very strong and the data this morning points to a soft landing."
At 1:56PM ET, the Dow Jones Industrial Average .DJI rose 279.29 points, or 0.85%, to 33,282.86, the S&P 500 .SPX gained 51.18 points, or 1.29%, to 4,032.53 and the Nasdaq Composite .IXIC added 189.80 points, or 1.66%, to 11,652.78.
Among the 11 major sectors of the S&P 500, all but consumer staples .SPLRCS were in positive territory, with communication services .SPLRCL and consumer discretionary .SPLRCD enjoying the largest percentage gains.
Fourth-quarter earnings season is on the final stretch, with all but seven of the companies in the S&P 500 having reported. Results for the quarter have beaten consensus estimates 68% of the time, according to Refinitiv.
Still, on aggregate, analysts believe S&P 500 earnings will have fallen 3.2% in the fourth quarter compared to the prior year, and expect negative year-on-year numbers for the first two quarters of 2023. This would imply the S&P 500 entered a three-quarter earnings recession in the closing months of 2022, per Refinitiv.
Apple Inc AAPL.O jumped 2.9% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription.
Broadcom Inc AVGO.O advanced 5.5% after the chipmaker forecast second-quarter revenue above analysts' estimates as increased investments in AI spurred demand for chips.
Among losers, Costco Wholesale Corp COST.O slipped 2.8% on the heels of its revenue miss, as high inflation dampened consumer demand.
Chipmaker Marvell Technology Inc MRVL.O slid 6.3% in the wake of the company's quarterly profit miss and disappointing revenue forecast.
Advancing issues outnumbered declining ones on the NYSE by a 4.63-to-1 ratio; on Nasdaq, a 2.33-to-1 ratio favored advancers.
The S&P 500 posted 21 new 52-week highs and two new lows; the Nasdaq Composite recorded 73 new highs and 49 new lows.
(Reporting by Stephen Culp; Additional reporting by Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O jumped 2.9% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street advanced on Friday near the close of an up-and-down week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will keep its restrictive policy in place for longer than anticipated. All three U.S. stock indexes were positive, led by the tech-laden Nasdaq, which was given a solid boost by market leading, interest rate sensitive megacaps.
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Apple Inc AAPL.O jumped 2.9% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street advanced on Friday near the close of an up-and-down week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will keep its restrictive policy in place for longer than anticipated. At 1:56PM ET, the Dow Jones Industrial Average .DJI rose 279.29 points, or 0.85%, to 33,282.86, the S&P 500 .SPX gained 51.18 points, or 1.29%, to 4,032.53 and the Nasdaq Composite .IXIC added 189.80 points, or 1.66%, to 11,652.78.
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Apple Inc AAPL.O jumped 2.9% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street advanced on Friday near the close of an up-and-down week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will keep its restrictive policy in place for longer than anticipated. Economic data released on Friday showed steady demand for services, with purchasing managers' indexes (PMI) from the Institute for Supply Management and S&P Global indicating that activity in the sector continues to expand even as input prices cool.
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Apple Inc AAPL.O jumped 2.9% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. U.S. Treasury yields eased in the wake of comments from Fed officials that calmed fears over inflation and interest rates. Results for the quarter have beaten consensus estimates 68% of the time, according to Refinitiv.
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16898.0
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2023-03-03 00:00:00 UTC
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US STOCKS-Wall Street closes sharply higher, notches weekly gains as Treasury yields ease
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-sharply-higher-notches-weekly-gains-as-treasury-yields-ease-0
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nan
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nan
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By Stephen Culp
NEW YORK, March 3 (Reuters) - Wall Street rallied on Friday to end a volatile week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will have to keep its restrictive policy in place until late in the year.
All three major U.S. stock indexes surged more than 1%, with the tech-laden Nasdaq climbing close to 2% with a boost from interest rate sensitive megacaps. U.S. Treasury yields eased in the wake of comments from Fed officials that calmed fears over inflation and interest rates.
For the week, the indexes notched gains, with the S&P snapping a three-week losing streak and the Dow, returning to positive territory year-to-date, enjoyed its first weekly advance since late January.
The week also saw the benchmark S&P 500 break through its 50- and 200-day moving averages, two closely watched technical levels.
"It’s an indication that a shift is transpiring," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "And a lot of people are suspect of it, but they don't want to be left behind."
Economic data released on Friday showed steady demand for services, with purchasing managers' indexes (PMI) from the Institute for Supply Management and S&P Global indicating that activity in the sector continues to expand even as input prices cool.
"Investors saw what they wanted in the ISM data, which was basically healthy growth with slowing prices," Carter added. "It suggests they are willing to stay on the plane as they are less worried about the landing."
The Dow Jones Industrial Average .DJIrose 387.4 points, or 1.17%, to 33,390.97, the S&P 500 .SPXgained 64.29 points, or 1.61%, to 4,045.64 and the Nasdaq Composite .IXICadded 226.02 points, or 1.97%, to 11,689.01.
All 11 major sectors of the S&P 500 ended the session green, with tech .SPLRCT and consumer discretionary .SPLRCD enjoying the largest percentage gains.
Fourth-quarter earnings season is on the final stretch, with all but seven of the companies in the S&P 500 having reported. Results for the quarter have beaten consensus estimates 68% of the time, according to Refinitiv.
Still, on aggregate, analysts believe S&P 500 earnings will have fallen 3.2% in the fourth quarter compared to the prior year, and expect negative year-on-year numbers for the first two quarters of 2023. This would imply the S&P 500 entered a three-quarter earnings recession in the closing months of 2022, per Refinitiv.
Apple Inc AAPL.O jumped 3.5% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription.
Broadcom Inc AVGO.O advanced 5.7% after the chipmaker forecast second-quarter revenue above analysts' estimates as increased investments in AI spurred demand for chips.
Among losers, Costco Wholesale Corp COST.O slipped 2.1% on the heels of its revenue miss, as high inflation dampened consumer demand.
Chipmaker Marvell Technology Inc MRVL.O slid 4.7% in the wake of the company's quarterly profit miss and disappointing revenue forecast.
Advancing issues outnumbered declining ones on the NYSE by a 4.54-to-1 ratio; on Nasdaq, a 2.36-to-1 ratio favored advancers.
The S&P 500 posted 23 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 79 new highs and 57 new lows.
Volume on U.S. exchanges was 10.83 billion shares, compared with the 11.10 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Additional reporting by Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O jumped 3.5% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street rallied on Friday to end a volatile week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will have to keep its restrictive policy in place until late in the year. All three major U.S. stock indexes surged more than 1%, with the tech-laden Nasdaq climbing close to 2% with a boost from interest rate sensitive megacaps.
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Apple Inc AAPL.O jumped 3.5% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street rallied on Friday to end a volatile week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will have to keep its restrictive policy in place until late in the year. Broadcom Inc AVGO.O advanced 5.7% after the chipmaker forecast second-quarter revenue above analysts' estimates as increased investments in AI spurred demand for chips.
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Apple Inc AAPL.O jumped 3.5% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. By Stephen Culp NEW YORK, March 3 (Reuters) - Wall Street rallied on Friday to end a volatile week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will have to keep its restrictive policy in place until late in the year. For the week, the indexes notched gains, with the S&P snapping a three-week losing streak and the Dow, returning to positive territory year-to-date, enjoyed its first weekly advance since late January.
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Apple Inc AAPL.O jumped 3.5% after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription. U.S. Treasury yields eased in the wake of comments from Fed officials that calmed fears over inflation and interest rates. Results for the quarter have beaten consensus estimates 68% of the time, according to Refinitiv.
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16899.0
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2023-03-03 00:00:00 UTC
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Apple cloud chief Abbott to step down in April - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-cloud-chief-abbott-to-step-down-in-april-bloomberg-news
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nan
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nan
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Adds background
March 3 (Reuters) - Apple Inc's AAPL.O top executive Michael Abbott, who is in charge of cloud services, is leaving the company in April, Bloomberg News reported on Friday citing people familiar with the matter.
The iPhone maker did not immediately respond to a Reuters request for comment.
Abbott, who joined Apple in 2018, heads the iCloud service and is in charge of the platform that powers features such as Emergency SOS and Find My on iPhones as well as new features including iCloud data encryption.
He previously held top roles at Twitter and Palm, and was a partner at venture capital firm Kleiner Perkins.
Jeff Robbin, long-time Apple engineer, will take on Abbott's responsibilities, Bloomberg News reported.
Earlier this year, Insider reported that vice president of services Peter Stern, who oversaw an expansion of Apple's paid subscription businesses, particularly its television offering Apple TV+, would be leaving the company.
Shares in Apple were up about 3.4% in afternoon trading.
(Reporting by Leroy Leo and Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and 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 background March 3 (Reuters) - Apple Inc's AAPL.O top executive Michael Abbott, who is in charge of cloud services, is leaving the company in April, Bloomberg News reported on Friday citing people familiar with the matter. He previously held top roles at Twitter and Palm, and was a partner at venture capital firm Kleiner Perkins. Jeff Robbin, long-time Apple engineer, will take on Abbott's responsibilities, Bloomberg News reported.
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Adds background March 3 (Reuters) - Apple Inc's AAPL.O top executive Michael Abbott, who is in charge of cloud services, is leaving the company in April, Bloomberg News reported on Friday citing people familiar with the matter. Abbott, who joined Apple in 2018, heads the iCloud service and is in charge of the platform that powers features such as Emergency SOS and Find My on iPhones as well as new features including iCloud data encryption. Jeff Robbin, long-time Apple engineer, will take on Abbott's responsibilities, Bloomberg News reported.
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Adds background March 3 (Reuters) - Apple Inc's AAPL.O top executive Michael Abbott, who is in charge of cloud services, is leaving the company in April, Bloomberg News reported on Friday citing people familiar with the matter. Abbott, who joined Apple in 2018, heads the iCloud service and is in charge of the platform that powers features such as Emergency SOS and Find My on iPhones as well as new features including iCloud data encryption. Earlier this year, Insider reported that vice president of services Peter Stern, who oversaw an expansion of Apple's paid subscription businesses, particularly its television offering Apple TV+, would be leaving the company.
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Adds background March 3 (Reuters) - Apple Inc's AAPL.O top executive Michael Abbott, who is in charge of cloud services, is leaving the company in April, Bloomberg News reported on Friday citing people familiar with the matter. The iPhone maker did not immediately respond to a Reuters request for comment. Abbott, who joined Apple in 2018, heads the iCloud service and is in charge of the platform that powers features such as Emergency SOS and Find My on iPhones as well as new features including iCloud data encryption.
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