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16900.0
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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
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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 keep its restrictive policy in place for longer than anticipated.
All three major U.S. stock indexes gained, led by the tech-laden Nasdaq, which climbed close to 2% and got 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 enjoying 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."
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 after Morgan Stanley said the stock could rally more than 20% this year on a potential hardware subscription.
Broadcom Inc AVGO.O surged 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 on the heels of its revenue miss, as high inflation dampened consumer demand.
Chipmaker Marvell Technology Inc MRVL.O lost ground in the wake of the company's quarterly profit miss and disappointing revenue forecast.
(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 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 keep its restrictive policy in place for longer than anticipated. All three major U.S. stock indexes gained, led by the tech-laden Nasdaq, which climbed close to 2% and got a boost from interest rate sensitive megacaps.
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Apple Inc AAPL.O jumped 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 keep its restrictive policy in place for longer than anticipated. Broadcom Inc AVGO.O surged 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 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 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 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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16901.0
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2023-03-03 00:00:00 UTC
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Taiwan's TSMC to recruit 6,000 engineers in 2023
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AAPL
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https://www.nasdaq.com/articles/taiwans-tsmc-to-recruit-6000-engineers-in-2023
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nan
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nan
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TAIPEI, March 4 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker, will recruit more than 6,000 new staff in 2023, the company said in a statement on Saturday.
The hiring drive comes despite a global downturn in the chip industry.
According to TSMC, the company will seek young engineers with associates, bachelor's, masters's or doctorate degrees in electrical engineering or software-related fields, in cities all across Taiwan.
The average overall salary of a new engineer with a master's degree is T$2 million ($65,578.07), the company added.
A decline in demand for electronics and high inventory levels following a shortage of some chips have led to a downturn for the semiconductor industry.
Since late 2022, a number of chip companies around the world have reined in investments.
Intel Corp INTC.O recently announced that it would cut payments to mid-level staff and executives from 5% to 25%.
TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple Inc AAPL.O has shielded it from downturn.
The company slightly reduced its annual capital expenditure for 2023 and predicts a first-quarter revenue drop, but has said it expects demand to pick up by the second half of this year.
($1 = 30.4980 Taiwan dollars)
(Reporting by Ben Blanchard in Taipei, writing by Josh Horwitz in Shanghai; Editing by Simon Cameron-Moore)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple Inc AAPL.O has shielded it from downturn. TAIPEI, March 4 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker, will recruit more than 6,000 new staff in 2023, the company said in a statement on Saturday. A decline in demand for electronics and high inventory levels following a shortage of some chips have led to a downturn for the semiconductor industry.
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TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple Inc AAPL.O has shielded it from downturn. TAIPEI, March 4 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker, will recruit more than 6,000 new staff in 2023, the company said in a statement on Saturday. The hiring drive comes despite a global downturn in the chip industry.
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TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple Inc AAPL.O has shielded it from downturn. TAIPEI, March 4 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker, will recruit more than 6,000 new staff in 2023, the company said in a statement on Saturday. According to TSMC, the company will seek young engineers with associates, bachelor's, masters's or doctorate degrees in electrical engineering or software-related fields, in cities all across Taiwan.
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TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple Inc AAPL.O has shielded it from downturn. TAIPEI, March 4 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker, will recruit more than 6,000 new staff in 2023, the company said in a statement on Saturday. The hiring drive comes despite a global downturn in the chip industry.
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16902.0
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2023-03-03 00:00:00 UTC
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Apple cloud chief Abbott to step down - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-cloud-chief-abbott-to-step-down-bloomberg-news
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nan
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nan
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March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday.
(Reporting by Leroy Leo 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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March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo 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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March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo 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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March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo 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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March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo 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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16903.0
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2023-03-03 00:00:00 UTC
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Can This Metaverse Crypto Reach $1?
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AAPL
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https://www.nasdaq.com/articles/can-this-metaverse-crypto-reach-%241
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nan
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nan
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One of the surprising stories of the crypto market so far in 2023 has been the comeback of metaverse tokens. In 2022, the top metaverse cryptos fell by 90% or more. This year, though, such tokens have been among the market's standout performers. In January, for example, Decentraland (CRYPTO: MANA) led the way with a sizzling 152% gain.
However, Decentraland, currently trading around $0.63, now faces a moment of truth. Its performance started to trail off in February, and it's down by 13.4% over the past 30 days. As a result, risk-seeking crypto investors might decide to look elsewhere -- such as to artificial intelligence-related tokens -- for upside potential. So does Decentraland have a realistic shot to break through the $1 threshold in 2023?
Momentum vs. metrics
When weighing that question, it's important to differentiate between momentum and metrics. Momentum refers to investor sentiment, and is much more influenced by speculation, hype, and buzz. Metrics refer to real-world numbers and real-world performance. Yes, the metaverse might be a $1 trillion market opportunity in the future, but how much activity is actually happening within these virtual worlds today?
That's why I'm concerned about Decentraland. So much of the crypto's huge rally in 2023 seems to be based on momentum, and not enough on metrics. Right now, the Decentraland metaverse platform -- the virtual 3D world, as opposed to the token -- only has 10,000 core users, down from a peak of 50,000 daily active users in early 2022. That represents an 80% drop in activity. Until and unless Decentraland can start to win back a significant portion of those users, or attract an entirely new demographic to its version of the metaverse, then it's hard to see how the underlying metrics at Decentraland are going to change.
Image source: Getty Images.
When you factor in all the new metaverse players -- ranging from new virtual worlds built on various blockchains to new gaming options for mobile devices -- then it's hard to see how Decentraland is going to consolidate and improve its position. For the token to break the $1 mark this year, it would need to gain nearly 60% in price. As a rough approximation, that would imply a similar gain in daily active users, or a similar gain in overall transaction activity taking place on the platform.
Real-world utility
One reason why I'm skeptical about the likelihood of this type of gain taking place is that the Decentraland token has yet to establish any sort of real-world utility. It's still very much a governance token for a specific small metaverse world. In short, there are limited ways to use your MANA in the real world. Unlike a digital currency like Bitcoin (CRYPTO: BTC), for example, you can't use MANA to buy things online that aren't directly related to the Decentraland metaverse world (such as virtual items for your in-game avatar).
That's not to say it's not possible to find economic use cases for Decentraland. But many of these use cases -- such as buying and selling virtual land plots within that virtual world, or hosting paid virtual events within it -- require a tremendous amount of time, attention, and expense from budding metaverse entrepreneurs, and may not appeal to average internet users.
Is Decentraland a buy?
As a concept, the metaverse is compelling. There's a good reason why big Silicon Valley tech players like Meta Platforms (NASDAQ: META) have spent literally billions of dollars trying to bring their metaverse ambitions to fruition. And it's understandable why Apple (NASDAQ: AAPL) may be planning to enter the metaverse business this year with a new virtual reality (VR) headset. Some company, eventually, is going to figure out how to monetize the metaverse, make using it a core activity for mainstream consumers, and make massive profits in the process.
Unfortunately, I don't think Decentraland is going to do that. Until it transforms into more than just a virtual gaming world, I don't see how it is ever going to win back its lost users. There are just so many choices available today for metaverse enthusiasts, and gamers are notoriously fickle as they continually search for newer and better virtual experiences.
For these reasons, I'm not confident at all that Decentraland can hit the $1 mark in 2023. For investors who believe in the long-term appeal of the metaverse, I'd recommend searching out a themed exchange-traded fund (ETF) that is much more diversified across the full range of potential metaverse opportunities.
10 stocks we like better than Decentraland
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 Decentraland 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
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. Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And it's understandable why Apple (NASDAQ: AAPL) may be planning to enter the metaverse business this year with a new virtual reality (VR) headset. When you factor in all the new metaverse players -- ranging from new virtual worlds built on various blockchains to new gaming options for mobile devices -- then it's hard to see how Decentraland is going to consolidate and improve its position. There are just so many choices available today for metaverse enthusiasts, and gamers are notoriously fickle as they continually search for newer and better virtual experiences.
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And it's understandable why Apple (NASDAQ: AAPL) may be planning to enter the metaverse business this year with a new virtual reality (VR) headset. As a rough approximation, that would imply a similar gain in daily active users, or a similar gain in overall transaction activity taking place on the platform. The Motley Fool has positions in and recommends Apple, Bitcoin, and Meta Platforms.
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And it's understandable why Apple (NASDAQ: AAPL) may be planning to enter the metaverse business this year with a new virtual reality (VR) headset. Right now, the Decentraland metaverse platform -- the virtual 3D world, as opposed to the token -- only has 10,000 core users, down from a peak of 50,000 daily active users in early 2022. Until and unless Decentraland can start to win back a significant portion of those users, or attract an entirely new demographic to its version of the metaverse, then it's hard to see how the underlying metrics at Decentraland are going to change.
|
And it's understandable why Apple (NASDAQ: AAPL) may be planning to enter the metaverse business this year with a new virtual reality (VR) headset. Yes, the metaverse might be a $1 trillion market opportunity in the future, but how much activity is actually happening within these virtual worlds today? Right now, the Decentraland metaverse platform -- the virtual 3D world, as opposed to the token -- only has 10,000 core users, down from a peak of 50,000 daily active users in early 2022.
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16904.0
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2023-03-03 00:00:00 UTC
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Beyond the iPhone: Here's What May Decide Apple's Future
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AAPL
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https://www.nasdaq.com/articles/beyond-the-iphone%3A-heres-what-may-decide-apples-future
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nan
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nan
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Apple (NASDAQ: AAPL) has stood as the world's most valuable public company for quite some time. With world-class products, global brand recognition, and customer loyalty that's second to none, it's easy to see why. Apple largely has one product to thank for its success: the iPhone.
You could argue that the iPhone is the greatest consumer product ever made. We often loosely say something has "changed the world," but in the iPhone's case, it's very true. And Apple, its equity-holding employees, and its investors have all benefited from it. The stock is up over 850% in the past decade.
After reportedly spending $150 million to develop the iPhone, Apple has since made well over $1 trillion from it. That's as good a return on investment as we've seen in the modern business world.
Apple's undisputed bread and butter
In its Q1 FY23, Apple's revenue decreased 5% year over year, largely due to a drop in iPhone sales. After it brought in more than $137.7 billion in 2020, $191.9 billion in 2021, and $205.4 billion in 2022, the iPhone's revenue dropped over 8% in this past quarter.
This can be attributed to a decline in overall smartphone sales this past year, but for Apple, it's another sign that expanding and tailoring its services options and becoming less dependent on the iPhone is the right move.
Image source: The Motley Fool.
The iPhone is the company's undisputed bread and butter, accounting for well over half of its revenue. Although the drop in iPhone sales hurt Apple's revenue, investors should take comfort in the year-over-year increase in services revenue.
The signs have been pointing to financial services
When Apple announced Apple Pay in 2014, that was its first foray into the financial services space, but it was more about convenience. It didn't seem Apple was seriously attempting to enter the then-$12 billion fintech space. Fast-forward five years, and the point was made clear with the announcement of the Apple Card.
With the Apple Card, Apple used Goldman Sachs to approve applications and fund loans and credit lines, so they still relied on a financial institution. However, Apple Pay Later represents the first time Apple will be underwriting and funding loans and credit lines by itself.
Although this means having to absorb any losses that come along, it's a huge step for a tech giant with the resources to compete in a growing fintech space that's expected to hit $700 billion by 2030.
Healthcare may be inevitable
Healthcare is an industry that's long overdue for some serious disruption, and Apple is undoubtedly throwing its hat into the ring. The company has been slowly increasing its health-related offerings to approach the industry from multiple angles.
With the iPads you can find in many doctors' offices and hospitals, Apple Watches tracking daily movement, and the suite of activity, fitness, and health apps, Apple's ecosystem is continuing to collect valuable data that can empower healthcare workers and make their jobs much easier and more efficient.
In February, Bloomberg reported that Apple reached a major milestone in its efforts to bring nonprick blood glucose monitoring to life via its Apple Watch. The effectiveness of this method will soon be determined, but the more important part of this news is how technology can transform healthcare as we know it, making it more preventative than reactive.
U.S. healthcare is a multitrillion-dollar industry. If Apple can become a serious player in the space, its growth potential is vast. This is great news for long-term investors who may be concerned that Apple's hypergrowth days are behind it.
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
Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ: AAPL) has stood as the world's most valuable public company for quite some time. This can be attributed to a decline in overall smartphone sales this past year, but for Apple, it's another sign that expanding and tailoring its services options and becoming less dependent on the iPhone is the right move. Although this means having to absorb any losses that come along, it's a huge step for a tech giant with the resources to compete in a growing fintech space that's expected to hit $700 billion by 2030.
|
Apple (NASDAQ: AAPL) has stood as the world's most valuable public company for quite some time. Apple's undisputed bread and butter In its Q1 FY23, Apple's revenue decreased 5% year over year, largely due to a drop in iPhone sales. The signs have been pointing to financial services When Apple announced Apple Pay in 2014, that was its first foray into the financial services space, but it was more about convenience.
|
Apple (NASDAQ: AAPL) has stood as the world's most valuable public company for quite some time. Apple's undisputed bread and butter In its Q1 FY23, Apple's revenue decreased 5% year over year, largely due to a drop in iPhone sales. The signs have been pointing to financial services When Apple announced Apple Pay in 2014, that was its first foray into the financial services space, but it was more about convenience.
|
Apple (NASDAQ: AAPL) has stood as the world's most valuable public company for quite some time. Apple's undisputed bread and butter In its Q1 FY23, Apple's revenue decreased 5% year over year, largely due to a drop in iPhone sales. It didn't seem Apple was seriously attempting to enter the then-$12 billion fintech space.
|
16905.0
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2023-03-03 00:00:00 UTC
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What is a Good Dividend Yield? How to Decide
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AAPL
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https://www.nasdaq.com/articles/what-is-a-good-dividend-yield-how-to-decide
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nan
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nan
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What is a good dividend yield, exactly? When evaluating different stocks to invest in, you'll notice some pay high dividends, some pay low dividends, and others pay none.
A dividend is a portion of a company's profits returned to shareholders as income, so naturally, we'd want to search for companies paying the highest dividend yield, right? Well, not exactly. Evaluating dividends is more complex than buying stocks with the highest yield stock dividends. Many factors come into play when considering dividends, not just the highest yield.
You'll need to understand a few different ratios and valuation metrics to determine if a company pays a good dividend yield.
What is Dividend Yield?
Calculating dividend yield is a relatively simple equation to solve. The dividend yield is a percentage (not the total dividend payout a company uses to reward investors). Instead, the yield is a metric used to evaluate cash flow or the rate a company returns profits to its stockholders on a per-share basis. The dividend yield may not tell you much about an individual firm, but it's a helpful measurement for comparing stocks and industries. The calculation for dividend yield looks like this:
Dividend Yield = Annual Dividend Payout Amount per Share / Price per Share
As you can see, the dividend yield fluctuates over time as share prices gyrate, so using dividend yield as your only evaluation metric would be foolhardy. Moreover, the dividend yield isn't a forward-looking metric and tells us little in isolation about a company's prospects. So what is a good average dividend yield? You'll need to consider a few other evaluation formulas to answer that.
What is a Good Dividend Yield?
Determining a good dividend yield requires more than just knowing the number.
Is a 2% yield good? What about a 5% yield? Obviously, a company with a dividend yield of 5% is better for investment than one with a 2% yield, right? You might be surprised, but the answer is a resounding "no." You can't simply look at the yield, select the highest-yielding dividend stocks and expect to outperform the market. The dividend yield is a bit like Goldilocks's porridge — it can't be too hot or cold; instead, it must be just right.
The dividend payout ratio (DPR) is a critical metric for evaluating the sustainability of a company's dividend. Instead of dividing the annual dividend payout by the share price as in dividend yield, the DPR looks at the percentage of a company's profits that goes toward paying dividends. The DPR formula looks like this:
Dividend Payout Rate = Total Dividends / Company Net Income
You can also find the dividend payout rate by taking the dividend payout per share and dividing it by net income per share. The DPR number shows how much (or little) a burden the dividend payout is on the company's balance sheet.
Once again, a "good" payout rate can vary depending on the company and sector, but it's easier to discern a stable dividend from a troubled one using the DPR calculation. For example, a payout rate of 30% is good for a company in a more growth-focused industry like tech, where retaining profits for R&D is crucial. On the other hand, an established company with little need for extensive R/D, like a bank or consumer staples producer, can have a payout rate over 50% and still be considered healthy.
If you see a dividend payout rate above 90%, be cautious. A company that devotes 90% or more of its earnings to a dividend could be in a precarious position should financial difficulties arise. Even the most mature and cost-conscious companies cannot sustain paying a dividend that absorbs too much of their net income. If the company can't sustain its dividend, it'll cut it. Dividend cuts can be brutal since investors lose out on expected income, faith in the company's future could go down and the stock price could fall.
Why Do You Need to Know Dividend Yield?
The dividend yield isn't a ratio you can use alone to evaluate a specific stock, but it's still a useful formula for investors. Comparing a rate to the share price provides more information than a dividend payout. A company with a $200 stock price paying $2 per share annually in dividends isn't rewarding shareholders as well as a company with a $50 stock price that pays $1.75 in annual dividends.
The dividend yield helps compare dividends across different stocks and sectors. For example, using dividend yield is how we know tech companies retain more earnings for growth than consumer staples or utility companies. Comparing the dividend yield of different sectors can be a good risk assessment tool when building a portfolio. Plus, you can compare the dividend yield of similar companies within the same sector to find the ones returning the most capital to shareholders. To find and compare different yields, use MarketBeat's dividend yield calculator.
When is a Dividend Yield Too Low?
A low dividend yield isn't necessarily a cause for concern. For example, Apple Inc. (NASDAQ: AAPL) pays a small yield because it retains most of its earnings for research and development in new projects. Apple's stock performance over time shows that investors are still getting rewarded even in the absence of large dividends.
Instead of simply looking at a company's dividend yield, compare it to other companies in the sector. A consumer staples firm paying a 2% dividend might be a worse investment than a tech firm paying a 1% dividend. Additionally, use the dividend payout ratio to estimate the sustainability of specific dividend yields.
When is a Dividend Yield Too High?
On the other hand, a high dividend yield doesn't necessarily mean the payout is at risk. Companies in certain industries consistently pay high dividends to reward shareholders for taking on unique risks. Cigarette companies like Altria Group Inc. (NYSE: MO) pay extraordinarily high yields since tobacco has many health risks and is heavily regulated and taxed by the government.
Again, a better method for determining whether a yield is too high would be to compare rates amongst rivals in their sector or to use the dividend payout rate to measure sustainability. A high dividend yield could be due to industry-specific reasons, like REITs, sin stocks and heavily regulated industries like utilities.
What Causes a Dividend Yield to Get Too High?
Dividend yields can grow out of control for several different reasons. Remember, a high yield doesn't necessarily mean an at-risk payout, but trouble could be on the horizon when the yield rises sharply or the dividend payout rate gets too burdensome.
A sudden drop in stock price is one of the most common reasons a dividend yield gets too high. Since yield ties to stock price, a sharp decline will send the dividend yield skyrocketing in the reverse direction. Additionally, when a company's stock price is under pressure, management won't want to rattle investors further by cutting the dividend.
One example of unsustainable management of a dividend comes from pipeline company Kinder Morgan Inc. (NYSE: KMI). In 2015, Kinder Morgan's stock suffered a significant downturn and the company had to retain more earnings for capital expenditures. As a result, the dividend hit the chopping block and management decided to reduce the quarterly payout by a whopping 75%.
How to Evaluate Dividend Yield
Dividend yield evaluation requires more than just knowing the number. Use the following steps to evaluate the sustainability of a company's dividend yield.
Step 1: Consider the stock sector.
Different industries tend to have different roadmaps when it comes to utilizing earnings. Growth-obsessed tech firms plow their profits back into the company for new ventures, while utilities and consumer staples firms focus more on returning capital to shareholders. When comparing dividend yields, know the average rate for the stock sector you're investigating. Tools like MarketBeat's dividend screener come in handy here.
Step 2: Analyze the company balance sheet.
Since dividends come from company earnings, the balance sheet will be a useful reference for evaluation. Is the company growing earnings to support the dividend? Will future debt obligations make the dividend difficult to manage in the future? Ensure the company you're researching has a sturdy balance sheet to support its dividend yield.
Step 3: Calculate the company's dividend payout ratio (DPR).
Always remember to consider the dividend payout ratio when studying dividend-paying stocks. The DPR helps measure the sustainability of future payouts by showing investors how much earnings capital a company uses to pay its dividend. A high DPR could be evidence of an unsustainable dividend. Use DPR in conjunction with dividend yield to locate the most promising high-dividend stocks.
Step 4: Review the company's dividend history.
Finally, the dividend payout history can be a valuable tool in evaluating yields. For example, companies that have raised dividend payouts for 25 years or more are known as Dividend Aristocrats. Companies that reach this level of consistency are proud of their capital management and want to continue rewarding shareholders. A company's dividend history might not be a crystal ball into its future, but it's another useful piece of information to evaluate.
Dividend Yield Alone Isn't Enough to Properly Evaluate Dividend Stocks
So, what is a good annual dividend yield? The answer depends on a few different factors. High-yielding dividends aren't always the most sustainable, and low-yielding dividends aren't always a sign of mismanaged capital. To properly evaluate a company's dividend yield, you must compare the number to others in the same industry. Also, consider the company's balance sheet and calculate the dividend payout rate. Dividend yield only provides information about the past, but combining this rate with DPR and some balance sheet analysis can offer a glimpse into the dividend's future.
FAQs
Here are a few commonly asked questions about finding good dividend yields:
What is a good average dividend yield?
A good average dividend yield varies depending on the stock sector, industry and other factors such as dividend payout rate. A good average yield in the tech sector will be much lower than in the banking sector. Always use multiple metrics when evaluating a company's dividend.
When is a dividend yield too high?
Dividend yields get too high when a company suffers a significant stock downturn or begins using too much of its earnings for dividend payouts. A high dividend yield isn't necessarily bad, but consider the payout rate and balance sheet when researching these firms.
When is a dividend yield too low?
Again, a low dividend yield isn't necessarily a sign of trouble. To determine whether a dividend yield is too low, compare the company to its peers in the industry and use the payout rate to measure the percentage of profit returned to shareholders.
The views and 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, Apple Inc. (NASDAQ: AAPL) pays a small yield because it retains most of its earnings for research and development in new projects. Once again, a "good" payout rate can vary depending on the company and sector, but it's easier to discern a stable dividend from a troubled one using the DPR calculation. Cigarette companies like Altria Group Inc. (NYSE: MO) pay extraordinarily high yields since tobacco has many health risks and is heavily regulated and taxed by the government.
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For example, Apple Inc. (NASDAQ: AAPL) pays a small yield because it retains most of its earnings for research and development in new projects. The DPR formula looks like this: Dividend Payout Rate = Total Dividends / Company Net Income You can also find the dividend payout rate by taking the dividend payout per share and dividing it by net income per share. The DPR helps measure the sustainability of future payouts by showing investors how much earnings capital a company uses to pay its dividend.
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For example, Apple Inc. (NASDAQ: AAPL) pays a small yield because it retains most of its earnings for research and development in new projects. The calculation for dividend yield looks like this: Dividend Yield = Annual Dividend Payout Amount per Share / Price per Share As you can see, the dividend yield fluctuates over time as share prices gyrate, so using dividend yield as your only evaluation metric would be foolhardy. The DPR formula looks like this: Dividend Payout Rate = Total Dividends / Company Net Income You can also find the dividend payout rate by taking the dividend payout per share and dividing it by net income per share.
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For example, Apple Inc. (NASDAQ: AAPL) pays a small yield because it retains most of its earnings for research and development in new projects. A company with a $200 stock price paying $2 per share annually in dividends isn't rewarding shareholders as well as a company with a $50 stock price that pays $1.75 in annual dividends. The DPR helps measure the sustainability of future payouts by showing investors how much earnings capital a company uses to pay its dividend.
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2023-03-03 00:00:00 UTC
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Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-latest-%242.9-billion-buy-brings-his-total-investment-in-this-stock-to-%2466
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, Wall Street attentively listens. That's because the Oracle of Omaha has crushed the benchmark S&P 500 since taking over as Berkshire CEO in 1965. The 3,787,464% aggregate gain in Berkshire Hathaway's Class A shares (BRK.A), through the end of 2022, is 153 times greater than the total return, including dividends paid, of the benchmark S&P 500 over the same period.
Mirroring Warren Buffett's trading activity has been a profitable venture for nearly six decades -- and it's easier than ever to do, thanks to Form 13F filings with the Securities and Exchange Commission.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Berkshire Hathaway's 13Fs are a gold mine for investors
In simple terms, a 13F provides investors with a snapshot of what money managers with at least $100 million in assets under management were holding at the end of the most recent quarter (in this case, as of Dec. 31, 2022). This snapshot allows investors to determine what the smartest, most successful fund managers bought, sold, and decided to continue holding in the latest quarter.
Over the past seven years, 13F filings have shown that Warren Buffett and his investing lieutenants (Todd Combs and Ted Weschler) have put big bucks to work in a select few companies.
For example, shares of tech stock Apple (NASDAQ: AAPL) were first purchased during the first quarter of 2016. Not including the shares held by Warren Buffett's secret portfolio, the Oracle of Omaha and his team have sunk more than $33 billion into Apple stock in seven years.
This has been a wildly successful investment for Berkshire Hathaway, with an estimated unrealized gain of $98 billion (not counting dividends). Apple has exceptional branding power, a loyal customer base, and a dominant lineup of products, led by the iPhone. It's also benefiting from the rapid growth of subscription services. However, Buffett's favorite aspect of Apple might just be that it's repurchased more than $550 billion of its common stock over the past 10 years.
Warren Buffett and his team have put a boatload of the company's cash to work in energy stocks, too. Close to $30 billion combined has been spent purchasing shares of Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Chevron became a continuous holding during the fourth quarter of 2020, with Occidental common stock entering Berkshire's portfolio in the first quarter of 2022.
This sudden fascination with energy stocks is likely based on the belief that crude oil prices will remain elevated for years to come. Years of capital underinvestment tied to the COVID-19 pandemic, coupled with Russia's invasion of Ukraine, makes it unlikely that global crude oil supply can be meaningfully increased anytime soon. This cap on supply should help put a floor beneath crude oil prices and boost the profit potential of Chevron's and Occidental Petroleum's upstream drilling segments.
Image source: Getty Images.
Warren Buffett has spent $66 billion buying this stock (and it's not listed in Berkshire's 13Fs)
However, investors might be surprised to learn that Berkshire Hathaway's quarterly 13F filings aren't telling the full story of where Buffett is putting his company's cash to work. To get that complete story, you'll need to dig into Berkshire Hathaway's quarterly operating results.
Although the Oracle of Omaha has piled into companies like Apple, Chevron, and Occidental Petroleum, there's another stock he's spent $66 billion buying since mid-July 2018. That stock, interestingly enough, is Berkshire Hathaway.
The key date for investors to know is July 17, 2018. Prior to this date, the only way Warren Buffett and executive vice chairman Charlie Munger were able to repurchase Berkshire Hathaway stock is if it were priced at or below 120% of book value. For more than a half-decade leading up to this date, Berkshire Hathaway's stock never fell to, or below, 120% of book value, which led to no share buybacks.
On July 17, 2018, the company's board of directors passed new measures that gave Buffett and Munger more liberty to buy back Berkshire Hathaway stock. As long as the company has $30 billion in aggregate cash, cash equivalents, and U.S. Treasury holdings, and Buffett and Munger agree the company's shares are trading below their intrinsic value, repurchases can be undertaken with no specific cap.
During the fourth quarter of 2022, Buffett and Munger OKed the repurchase of 4,280 Class A shares and 3,046,794 Class B shares. In total, this worked out to $2.86 billion worth of repurchase activity. In the more than four years since repurchase activity was recommenced, Berkshire Hathaway's dynamic duo has bought back a little over $66 billion worth of their company's shares.
Aggressively repurchasing Berkshire Hathaway stock has three specific advantages. To begin with, it can make companies with steady or growing net income more fundamentally attractive. If a company's outstanding share count declines over time due to buybacks, steady or growing net income will result in higher earnings per share.
Second, reducing the company's outstanding share count allows existing shareholders to grow their stake in the company without having to lift a finger. For example, Apple's substantial buyback program is what's helped increase Berkshire Hathaway's stake in the company to 5.8%. Over long periods, Berkshire's buyback program is having the same impact for its shareholders.
And third, repurchasing $66 billion of Berkshire Hathaway stock in a little over four years is Buffett's way of showing Wall Street that he's willing to bet on himself, his investment team, and the long-term ethos he's built. Whether it's the five dozen predominantly cyclical companies Buffett's company has acquired or the $328 billion investment portfolio, Berkshire Hathaway is perfectly positioned to grow in lockstep with the U.S. and global economy over the long run.
Don't expect these share buybacks to slow anytime soon.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, shares of tech stock Apple (NASDAQ: AAPL) were first purchased during the first quarter of 2016. Over the past seven years, 13F filings have shown that Warren Buffett and his investing lieutenants (Todd Combs and Ted Weschler) have put big bucks to work in a select few companies. Years of capital underinvestment tied to the COVID-19 pandemic, coupled with Russia's invasion of Ukraine, makes it unlikely that global crude oil supply can be meaningfully increased anytime soon.
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For example, shares of tech stock Apple (NASDAQ: AAPL) were first purchased during the first quarter of 2016. When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, Wall Street attentively listens. The 3,787,464% aggregate gain in Berkshire Hathaway's Class A shares (BRK.A), through the end of 2022, is 153 times greater than the total return, including dividends paid, of the benchmark S&P 500 over the same period.
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For example, shares of tech stock Apple (NASDAQ: AAPL) were first purchased during the first quarter of 2016. Warren Buffett has spent $66 billion buying this stock (and it's not listed in Berkshire's 13Fs) However, investors might be surprised to learn that Berkshire Hathaway's quarterly 13F filings aren't telling the full story of where Buffett is putting his company's cash to work. And third, repurchasing $66 billion of Berkshire Hathaway stock in a little over four years is Buffett's way of showing Wall Street that he's willing to bet on himself, his investment team, and the long-term ethos he's built.
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For example, shares of tech stock Apple (NASDAQ: AAPL) were first purchased during the first quarter of 2016. Chevron became a continuous holding during the fourth quarter of 2020, with Occidental common stock entering Berkshire's portfolio in the first quarter of 2022. Warren Buffett has spent $66 billion buying this stock (and it's not listed in Berkshire's 13Fs) However, investors might be surprised to learn that Berkshire Hathaway's quarterly 13F filings aren't telling the full story of where Buffett is putting his company's cash to work.
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2023-03-03 00:00:00 UTC
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Zacks Investment Ideas feature highlights: GameStop, Apple and Bank of America
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-gamestop-apple-and-bank-of-america
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For Immediate Release
Chicago, IL – March 3, 2023 – Today, Zacks Investment Ideas feature highlights GameStop GME, Apple AAPL and Bank of America BAC.
Who Is Bob Farrell?
Twelve years after the conclusion of the Second World War, Bob Farrell started his career at Merrill Lynch as a technical analyst. Before kickstarting his illustrious career at Merrill Lynch, Farrell studied at the prestigious Columbia business school under Benjamin Graham and David Dodd.
Graham and Dodd are widely hailed as the “godfathers of modern value investing” and are best known for their best-selling book “Security Analysis,” which was first published in 1934. In fact, Graham and Dodd are so synonymous with value investing that Warren Buffett (also a student of Graham at Columbia) attributes much of his success to the classic work and teachings of the two value investing legends.
A Wall Street Pioneer
While Mr. Farrell was educated under the value investing umbrella, he found his niche and success on Wall Street at the intersection of technical analysis, sentiment, and market psychology. Though this type of analysis was considered unconventional and even frowned upon at the onset of his career, by the end of Farrell’s nearly five-decade run on Wall Street, it had become mainstream.
Farrell became so respected in market circles that his daily newsletter was read by several of the world’s sharpest money managers, including the likes of multi-billionaire George Soros. There is little Mr. Farrell hasn’t seen or experienced throughout his career.
Below Are Farrell’s 10 Rules:
1. Markets tend to revert to the mean over time. Like a rubber band stretched in one direction, markets tend to snap back to the other direction eventually.
2. Excesses in one direction will lead to an opposite excess in the other direction. Think about the internet boom and bust. At one point, stocks like Pets.com would rocket 200% in a single trading session just because they had “.com” in the name. During 2000-2003, the market unraveled just as violently in the opposite direction. The COVID-19 crash and subsequent rally afterward is another prime example.
3. There are no new eras – excesses are never permanent. History is littered with boom-and-bust periods – nothing lasts forever. The great “Tulip Mania” of the 17th century, the dot com bust of 2000, and the 2008 housing debacle personify this rule.
4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways. The meme craze that occurred a few years ago is a good illustration of this rule. In 2020, GameStop ran from $1 to $5.50 in five months. After more than a 500% move in such a short time, that wasn’t the end. The following month, shares soared 1600% to $120 a share before correcting to their current price of $18 per share.
5. The public buys the most at the top and the least at the bottom. Most investors let their emotions get the best of them. Generally, if the public invested when they were most fearful and sold when they were most giddy, they would be much more profitable. In late 2022, most sentiment gauges showed fear. Over the next few months, the market went on a tear.
6. Fear and greed are stronger than long-term resolve. The fast-moving pace of Wall Street can wreak havoc on investor emotions. When the opening bell rings and real money is on the line, it is akin to having a volume dial on emotions for most investors. The lack of discipline to create and stick to a well thought out investing plan can be detrimental to investors. Even if a well-thought-out plan is created, execution always supersedes intentions.
7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names. A “blue chip” is a well-established mega-cap company such as Apple.Breadth refers to the number of stocks participating in a rally. The participation gauge is an important measure to follow because it can provide clues to a market breakdown prior to it occurring. In early 2021, Apple and other mega-cap blue chip stocks continued higher as the market began to stall slightly – a subtle, early caution flag for savvy investors who were paying attention.
8. Bear markets have three stages – sharp down, reflexive rebound, and a drawn-out fundamental downtrend. Because the public typically buys the dip at the wrong time or shorts “in the hole” when stocks have already moved down rapidly, equity markets usually have a violent “bear market rally” before trending lower.
9. When all the experts and forecasts agree – something else is going to happen. Contrarian, independent thinking is the clearest path to success on Wall Street. Following the Global Financial Crisis, David Tepper bought Bank of America in 2009. Later when he recounted the trade, he said, “I felt like I was alone.” The trade ended up netting him $4 billion. To achieve outstanding results, you must think differently.
10. Bull markets are more fun than bear markets! While making money in a down market can be done, bull markets are much more forgiving. Who can argue this?
Conclusion
Over Farrell’s 45-year career at Merrill Lynch, he saw bull markets, bear markets, and everything in between. While investors can educate themselves by reading books or attending seminars, nothing beats decades of seat time. Through his successful and deep experience, Farrell’s rules challenge investors to study history, the madness of crowds, and their inherent “humanness” and emotions.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – March 3, 2023 – Today, Zacks Investment Ideas feature highlights GameStop GME, Apple AAPL and Bank of America BAC. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report To read this article on Zacks.com click here. Farrell became so respected in market circles that his daily newsletter was read by several of the world’s sharpest money managers, including the likes of multi-billionaire George Soros.
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For Immediate Release Chicago, IL – March 3, 2023 – Today, Zacks Investment Ideas feature highlights GameStop GME, Apple AAPL and Bank of America BAC. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report To read this article on Zacks.com click here. Conclusion Over Farrell’s 45-year career at Merrill Lynch, he saw bull markets, bear markets, and everything in between.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – March 3, 2023 – Today, Zacks Investment Ideas feature highlights GameStop GME, Apple AAPL and Bank of America BAC. A Wall Street Pioneer While Mr. Farrell was educated under the value investing umbrella, he found his niche and success on Wall Street at the intersection of technical analysis, sentiment, and market psychology.
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For Immediate Release Chicago, IL – March 3, 2023 – Today, Zacks Investment Ideas feature highlights GameStop GME, Apple AAPL and Bank of America BAC. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report To read this article on Zacks.com click here. Conclusion Over Farrell’s 45-year career at Merrill Lynch, he saw bull markets, bear markets, and everything in between.
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2023-03-03 00:00:00 UTC
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SoftBank's Arm rebuffs London by choosing US listing over UK
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https://www.nasdaq.com/articles/softbanks-arm-rebuffs-london-by-choosing-us-listing-over-uk
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Adds UK government response, background
LONDON, March 3 (Reuters) - British chip technology firm Arm Ltd, owned by Japan's SoftBank 9984.T, said on Friday it would pursue a US-only listing this year, dashing the hopes of the British government that the tech giant would return to the London stock market.
Still, the company did not completely rule out an eventual London listing, saying it intended to consider a subsequent IPO there in due course, without providing further details.
Arm designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O.
"After engagement with the British Government and the Financial Conduct Authority over several months, SoftBank and Arm have determined that pursuing a U.S.-only listing of Arm in 2023 is the best path forward for the company and its stakeholders," Arm Chief Executive Officer Rene Haas said in a statement.
The decision is a blow to London, where Arm was listed until it was bought by SoftBank in 2016 in a $32 billion deal that received the minimum level of scrutiny by the government, leading to criticism that it had allowed Britain's biggest tech success to be bought by foreign investors.
A British government spokesperson said: "The UK is taking forward ambitious reforms to the rules governing its capital markets, building on our continued success as Europe's leading hub for investment, and the second largest globally.
"We continue to attract some of the most innovative and largest companies in the world – and note Arm’s commitment to expanding its presence in the UK, providing a boost to growth, jobs and investment."
Arm, which was founded and is based in Cambridge, east England, said it would open a new site in the English city of Bristol, with plans to maintain its headquarters, operations and material IP in Britain.
(Reporting by Jose Joseph and Kanjyik Ghosh in Bengaluru and Paul Sandle in London; Editing by Sherry Jacob-Phillips and William Schomberg)
((Jose.Joseph@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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Arm designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O. Adds UK government response, background LONDON, March 3 (Reuters) - British chip technology firm Arm Ltd, owned by Japan's SoftBank 9984.T, said on Friday it would pursue a US-only listing this year, dashing the hopes of the British government that the tech giant would return to the London stock market. "We continue to attract some of the most innovative and largest companies in the world – and note Arm’s commitment to expanding its presence in the UK, providing a boost to growth, jobs and investment."
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Arm designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O. Adds UK government response, background LONDON, March 3 (Reuters) - British chip technology firm Arm Ltd, owned by Japan's SoftBank 9984.T, said on Friday it would pursue a US-only listing this year, dashing the hopes of the British government that the tech giant would return to the London stock market. "After engagement with the British Government and the Financial Conduct Authority over several months, SoftBank and Arm have determined that pursuing a U.S.-only listing of Arm in 2023 is the best path forward for the company and its stakeholders," Arm Chief Executive Officer Rene Haas said in a statement.
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Arm designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O. Adds UK government response, background LONDON, March 3 (Reuters) - British chip technology firm Arm Ltd, owned by Japan's SoftBank 9984.T, said on Friday it would pursue a US-only listing this year, dashing the hopes of the British government that the tech giant would return to the London stock market. "After engagement with the British Government and the Financial Conduct Authority over several months, SoftBank and Arm have determined that pursuing a U.S.-only listing of Arm in 2023 is the best path forward for the company and its stakeholders," Arm Chief Executive Officer Rene Haas said in a statement.
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Arm designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O. Adds UK government response, background LONDON, March 3 (Reuters) - British chip technology firm Arm Ltd, owned by Japan's SoftBank 9984.T, said on Friday it would pursue a US-only listing this year, dashing the hopes of the British government that the tech giant would return to the London stock market. Still, the company did not completely rule out an eventual London listing, saying it intended to consider a subsequent IPO there in due course, without providing further details.
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16909.0
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2023-03-03 00:00:00 UTC
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ANALYSIS-Sharp drop in equity premium may mark return of 60/40 portfolio
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https://www.nasdaq.com/articles/analysis-sharp-drop-in-equity-premium-may-mark-return-of-60-40-portfolio
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By Mehnaz Yasmin
March 3 (Reuters) - The reward for holding U.S. stocks over Treasury bonds has not been this unattractive since 2004, possibly setting the stage for the sought-after 60/40 portfolio diversification to make a comeback after one of its worst years on record.
A 60/40 portfolio, which typically has 60% of its holdings in stocks and the remaining 40% in fixed income, counts on moves in the two asset classes to offset one another, with stocks strengthening amid economic optimism and bonds rising during turbulent times.
The strategy took a backseat in 2022 as the Federal Reserve raised interest rates aggressively to rein in inflation. However, signals from the stock and bond markets this year are pointing to a return of the popular asset allocation strategy.
At the end of February, the S&P 500 .SPX returned 5.41% in earnings yield, the reciprocal of price-to-earnings ratio, while the yield on the benchmark U.S. 10-year bond US10YT=RR surged to 3.94%, according to data from Refinitiv. The 1.47 percentage-point difference is the lowest upside stocks have held over bonds in nearly two decades.
Earnings yield here refers to the S&P 500 earnings per share estimate for the next 12 moths divided by the index price.
"The relative shine of equities is definitely dulled by rising yields across the Treasury curve," said Eric Leve, chief investment officer of wealth and investment management firm Bailard.
With estimates for earnings in 2023 implying essentially no growth over 2022, rates above 5% on short-term bonds and 10-year yields on the verge of 4% represent credible alternatives to stocks, according to Leve.
The thinning spread between returns from stocks and bonds is set to bring the 60/40 portfolio strategy back in favor.
"This strategy does provide excellent hedging in current environment," said Glenn Yin, Head of Research and Analysis at AETOS Capital Group.
The 60/40 portfolio has already had the best start to the year since 1991, according to Bank of America.
The Fed's move to tighten monetary policy at the fastest pace in decades pumped up bond yields after nearly two years of near-zero interest rates.
But a rise in yields poses headwinds for equities, especially growth stocks, and by extension, a large index like the S&P 500. Apple AAPL.O, Alphabet GOOGL.O and Amazon.com Inc AMZN.O are among the tech heavyweights that make up nearly a fifth of the index and bore the brunt of a sell-off last year.
"Equity yields will continue to struggle this year as both prices and earnings decline" amid an economic slowdown, said Lance Roberts, Chief Investment Strategist at RIA Advisors.
On the other hand, "during a recession, yields will fall and Treasury bond prices will rise," said Roberts. He prefers bonds over stocks today, he added.
Recent results and guidance from companies have bolstered the case for investors who believe the stock market's early-year rally is unlikely to last.
As of Feb. 24, results from 465 of the S&P 500 companies showed fourth-quarter earnings are estimated to have fallen 3.2% from the year-ago quarter while Wall Street's expectation for S&P earnings growth for 2023 fell to 1.7% from an expected 4.4% on Jan. 1, according to Refinitiv.
Expectations for U.S. earnings to decline in the first two quarters if the year come amid weaker-than-expected fourth-quarter results for 2022, which Credit Suisse estimates will be the worst earnings season outside of a recession in 24 years.
Investors are hoping that in case of a severe recession, the Fed would be forced to slash interest rates. While the economic downturn would hit stock returns, drop in bond yields should provide some relief in such a scenario, according to analysts.
"For me, the best risk-reward portfolio in this environment for now is long duration Treasury bonds, and deep value, dividend equities," Roberts said. Deep value refers to stocks that are trading at a huge discount to their intrinsic values.
"When the recession arrives, and the Fed cuts rates to zero, I will sell my bond portfolio to lock in the capital appreciation, and buy distressed equities with high yields and companies with strong balance sheets and earnings growth," he added.
Stock snaghttps://tmsnrt.rs/3II6COT
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Alden Bentley and Saumyadeb Chakrabarty)
((Mehnaz.Yasmin@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 AAPL.O, Alphabet GOOGL.O and Amazon.com Inc AMZN.O are among the tech heavyweights that make up nearly a fifth of the index and bore the brunt of a sell-off last year. By Mehnaz Yasmin March 3 (Reuters) - The reward for holding U.S. stocks over Treasury bonds has not been this unattractive since 2004, possibly setting the stage for the sought-after 60/40 portfolio diversification to make a comeback after one of its worst years on record. "Equity yields will continue to struggle this year as both prices and earnings decline" amid an economic slowdown, said Lance Roberts, Chief Investment Strategist at RIA Advisors.
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Apple AAPL.O, Alphabet GOOGL.O and Amazon.com Inc AMZN.O are among the tech heavyweights that make up nearly a fifth of the index and bore the brunt of a sell-off last year. "The relative shine of equities is definitely dulled by rising yields across the Treasury curve," said Eric Leve, chief investment officer of wealth and investment management firm Bailard. "Equity yields will continue to struggle this year as both prices and earnings decline" amid an economic slowdown, said Lance Roberts, Chief Investment Strategist at RIA Advisors.
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Apple AAPL.O, Alphabet GOOGL.O and Amazon.com Inc AMZN.O are among the tech heavyweights that make up nearly a fifth of the index and bore the brunt of a sell-off last year. A 60/40 portfolio, which typically has 60% of its holdings in stocks and the remaining 40% in fixed income, counts on moves in the two asset classes to offset one another, with stocks strengthening amid economic optimism and bonds rising during turbulent times. With estimates for earnings in 2023 implying essentially no growth over 2022, rates above 5% on short-term bonds and 10-year yields on the verge of 4% represent credible alternatives to stocks, according to Leve.
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Apple AAPL.O, Alphabet GOOGL.O and Amazon.com Inc AMZN.O are among the tech heavyweights that make up nearly a fifth of the index and bore the brunt of a sell-off last year. Earnings yield here refers to the S&P 500 earnings per share estimate for the next 12 moths divided by the index price. On the other hand, "during a recession, yields will fall and Treasury bond prices will rise," said Roberts.
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16910.0
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2023-03-03 00:00:00 UTC
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2 Buffett Stocks to Buy in 2023 and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-buffett-stocks-to-buy-in-2023-and-hold-forever
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nan
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nan
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Warren Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." Buying or selling a stock based on what it may do for your portfolio in the short term isn't a profitable way to invest over the long term.
However, if you're only buying great businesses with sustainable competitive advantages and plan to hold them for many years -- a key aspect of Buffett's strategy in building Berkshire Hathaway's famed portfolio -- you can root out the weeds and focus your capital on compelling, long-term growth stories.
Let's take a look a two such stocks from the Oracle of Omaha's portfolio that long-term investors may want to buy in the current discounted market.
1. Amazon
At the time of this writing, Amazon (NASDAQ: AMZN) comprises 0.3% of Berkshire's basket of stocks. Investors may have been dismayed by Amazon's recent 2022 earnings report, but a closer look at the company's performance last year puts those numbers in context.
For example, one of the most eye-catching figures from Amazon's 2022 earnings report was its net loss of $2.7 billion. However, this bottom-line figure -- while wince-worthy indeed -- was almost completely due to the drawback in Amazon's common stock investment in Rivian. Shares of Rivian have been absolutely pummeled by the market, and that was the guiding factor behind Amazon's first annual net loss in nearly a decade. But its partnership with the electric vehicle company remains a key part of the long-term fulfillment strategy for its market-leading e-commerce business. In fact, Amazon intends to have 100,000 Rivian vehicles on the road delivering its packages by 2030.
While Amazon's revenue was only up 9% and operating income was down year over year in 2022, these still totaled a healthy $514 billion and $12 billion for the 12-month period. This revenue figure represented an increase of 83% from 2019, before the pandemic drove a supercharged period of growth for Amazon. And, Amazon's market-leading cloud segment Amazon Web Services alone generated revenue of $80 billion in 2022, up 30% from 2021.
In short, when you dig deeper beyond the headlines and into the numbers, Amazon is still growing exponentially from pre-pandemic levels, and even that notable net loss was wholly unrelated to any issues with its underlying business. The company closed out 2022 with about $70 billion in cash and investments on its balance sheet.
The tech giant has plenty of liquidity on hand to weather any near-term storms plus a market-leading presence on a global scale in industries like cloud infrastructure and e-commerce. These sectors may see a pullback in spending in the near term, but are poised for explosive growth over the next decade and beyond -- creating a particularly compelling buying proposition at Amazon's current beaten-down share price.
2. Apple
Apple (NASDAQ: AAPL) accounts for 41% of Berkshire Hathaway's portfolio. The tech giant is trading down slightly from its position 12 months ago, but is up by double-digits since the start of 2023. And for investors who have stuck with the stock through the trailing decade, a combination of share price increases and steady dividend returns has enabled a total return of more than 980% in that 10-year period.
Apple has had to contend with issues like supply chain headwinds due to its heavy concentration of manufacturing infrastructure in China, not to mention a constrained consumer spending environment. But even as investor sentiment has remained in flux toward growth-oriented tech businesses, the long-term view for Apple is still abundant with green flags. Yes, people are spending less money on high-ticket items like smartphones right now. But this is only to be expected when they are contending with high inflation and a drain on their personal savings.
Still, Apple controls roughly 28% of the global smartphone market. This space is on a growth trajectory set to reach a valuation of nearly $500 billion by 2026. Even in the current environment where consumers are spending less as a rule, Apple still recorded a major milestone of more than 2 billion active devices installed worldwide as of the most recent quarter.
And of course, Apple has plenty of other products to rely on for future, prolonged growth -- such as its rapidly growing services segment, which includes everything from Apple Music to Apple TV+. Apart from smartphone sales, Apple's services segment now accounts for the second-largest portion of its sales. In the most recent quarter, these two segments alone brought in combined sales of $87 billion.
To put those figures in context, Apple recorded total net sales of $117 billion for the three-month period, along with net income of $30 billion. The tech behemoth generated $34 billion in operating cash flow in the quarter, having returned $25 billion in dividends to shareholders just in that single period. This is anything but the tale of a business with its glory days long behind it.
From the continued growth trajectory of its key operating segments to the explosive opportunity in its more nascent sales streams like advertising -- a business that Apple thinks could balloon to $10 billion in revenue in the near future -- there is plenty of runway left for this business.
10 stocks we like better than Amazon.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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. Rachel Warren has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) accounts for 41% of Berkshire Hathaway's portfolio. However, if you're only buying great businesses with sustainable competitive advantages and plan to hold them for many years -- a key aspect of Buffett's strategy in building Berkshire Hathaway's famed portfolio -- you can root out the weeds and focus your capital on compelling, long-term growth stories. In short, when you dig deeper beyond the headlines and into the numbers, Amazon is still growing exponentially from pre-pandemic levels, and even that notable net loss was wholly unrelated to any issues with its underlying business.
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Apple Apple (NASDAQ: AAPL) accounts for 41% of Berkshire Hathaway's portfolio. And, Amazon's market-leading cloud segment Amazon Web Services alone generated revenue of $80 billion in 2022, up 30% from 2021. To put those figures in context, Apple recorded total net sales of $117 billion for the three-month period, along with net income of $30 billion.
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Apple Apple (NASDAQ: AAPL) accounts for 41% of Berkshire Hathaway's portfolio. And of course, Apple has plenty of other products to rely on for future, prolonged growth -- such as its rapidly growing services segment, which includes everything from Apple Music to Apple TV+. To put those figures in context, Apple recorded total net sales of $117 billion for the three-month period, along with net income of $30 billion.
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Apple Apple (NASDAQ: AAPL) accounts for 41% of Berkshire Hathaway's portfolio. And, Amazon's market-leading cloud segment Amazon Web Services alone generated revenue of $80 billion in 2022, up 30% from 2021. That's right -- they think these 10 stocks are even better buys.
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16911.0
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2023-03-03 00:00:00 UTC
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3 Tech Stocks to Help Hedge Against a Recession
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-to-help-hedge-against-a-recession
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nan
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nan
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While the jury is still out as to the possibility of an impending recession, there's no doubt that fraught economic waters persist and the reality of inflation continues to afflict companies of all sizes across a range of industries. In the event of a full-blown recession, it's likely that many companies -- even in more traditionally recession-resilient sectors like healthcare, for example -- would face headwinds to revenue growth and profitability for a time.
Historically, tech has been a particularly volatile place to invest in a recessionary time, but that doesn't negate the quality of great businesses that can outlast the volatility of these periods -- a fact that patient, risk-resilient investors can seize upon.
When you're investing in companies for a minimum of three to five years, if not longer, a recession would represent a relatively brief span within that window of time. And by putting your cash into resilient businesses that can generate long-term growth, not companies revolving around short-term tailwinds, you can better prepare your portfolio for an economic downturn and the market mayhem that often follows -- as well as the rebound that has always tailed these dips in the market.
Here are three such tech stocks to consider adding to your portfolio.
1. Airbnb
Airbnb (NASDAQ: ABNB) faced the same environment other travel stocks have in the last year, as the broader travel recovery moved ahead with the reopening of international borders while the reality of declining consumer savings and fears of a recessionary environment lingers. However, Airbnb's performance over the past year amid this environment has largely left that of its peers well and truly in the rearview mirror.
The company recorded an annual profit of $2 billion in 2022, its first full year of profitability, compared to a net loss of $352 million in 2021. Revenue soared 40% year over year to $8.4 billion, but this figure was up by an incredible 75% on a three-year clip.
Meanwhile, the company generated free cash flow in the amount of $3.4 billion in the 12-month period alone, up 49% year over year and 3,072% on a three-year basis. There are a variety of catalysts that continue to drive Airbnb's growth forward even in this challenging macro environment.
Certainly, the prolonged recovery that short-term travel is witnessing is a factor here. At the same time, people aren't just staying on Airbnb for short periods. As of the end of 2022, 21% of all nights booked on the platform were long-term stays, and nearly 50% of stays booked on Airbnb were a minimum of seven nights.
This indicates a wide variety of travelers with many types of travel needs are utilizing Airbnb, whether for a vacation, business travel, leisure travel, or a combination somewhere in the middle, enabled by the enhanced flexibility that the digital age created.
The versatility of Airbnb's offerings for every type of travel need offer its business a measure of resilience that can help it weather a recessionary storm, if one comes. And the stockpile of cash and profits it's raking in can also help to remain on favorable financial footing if consumers temporarily scale back travel spending, another green flag that means investors might consider even a modest position in this top growth stock.
2. Chewy
Chewy (NYSE: CHWY) is another consumer-facing business, but the nature of the products and services it sells also lend an element of recession resilience due to one simple fact: While a recession may induce consumers to scale back spending, they'll still shell out for their pets. Even given the current macro situation at hand, it's estimated pet spending remains on track to reach a total of $275 billion by the year 2030.
As of the end of the third quarter of 2022, Chewy counted a customer base of more than 20 million individuals, a 100,000 increase compared to the same period in 2021. Meanwhile, autoship customer sales jumped nearly 19% in the three-month period, with this segment growing to comprise 73% of all net sales for the quarter. Chewy's third-quarter net sales totaled $2.5 billion, a 15% year-over-year increase, while net income came to $2.3 million.
Chewy provides a wide range of products and services designed to furnish the needs that someone might face over the course of their pet ownership journey. From toys to bedding to generic and compounded medications to on-demand telehealth services to curated insurance plans, Chewy's focus on building a diversified line of businesses is not only paying off and continue to help the company differentiate itself from competition.
The company is also working to streamline costs and strengthen its supply chain to support its future growth goals with a quickly expanding portfolio of automated fulfillment centers. These facilities shorten fulfillment times and reduce overhead costs for Chewy. Over the long run, this is a business poised to continue capitalizing off varied segments of pet spending, and investors can benefit from this trajectory in the process.
3. Apple
Apple (NASDAQ: AAPL) continues to prove the resilience of its business, even as consumer spending across all types of retail categories remains in flux against the backdrop of an environment where savings are down and concerns about a recession remain at the forefront. In the most recent quarter, Apple reported a record number of its devices installed for customers around the world -- 2 billion, in fact.
Even though revenue and net earnings were down slightly year over year, these still totaled $117 billion and $30 billion, respectively. Bear in mind, this follows the trailing five-year period, in which Apple increased annual revenue and earnings by respective amounts of 50% and 68%.
It's also worth noting that Apple's top and bottom lines in the most recent quarter still represented whopping increases of 28% and 35% on a three-year clip. The tech giant also saw services revenue reach an all-time high in the three-month period. While smartphones remain the leading driver of Apple's revenue and profits, its services segment -- which includes services like Apple Music and Apple Fitness+ -- is quickly catching up.
Out of the company's total revenue in the most recent quarter, $66 billion was derived from smartphone sales, while services comprised the second-largest driver of revenue totaling $21 billion, a new record for this segment. Even if consumers spend less on Apple products in a recession, the company's market leadership and the increasing diversity of its revenue streams can continue to propel its growth over the long term.
Apple has withstood many a market storm. Investors may be mistaken if they think the company is ill equipped to navigate the next one. A multiyear buy-and-hold position in this growth stock looks like a shrewd move in the current market and well beyond.
Find out why Airbnb is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of February 8, 2023
Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Airbnb, Apple, and Chewy. 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) continues to prove the resilience of its business, even as consumer spending across all types of retail categories remains in flux against the backdrop of an environment where savings are down and concerns about a recession remain at the forefront. While the jury is still out as to the possibility of an impending recession, there's no doubt that fraught economic waters persist and the reality of inflation continues to afflict companies of all sizes across a range of industries. And the stockpile of cash and profits it's raking in can also help to remain on favorable financial footing if consumers temporarily scale back travel spending, another green flag that means investors might consider even a modest position in this top growth stock.
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Apple Apple (NASDAQ: AAPL) continues to prove the resilience of its business, even as consumer spending across all types of retail categories remains in flux against the backdrop of an environment where savings are down and concerns about a recession remain at the forefront. While smartphones remain the leading driver of Apple's revenue and profits, its services segment -- which includes services like Apple Music and Apple Fitness+ -- is quickly catching up. Out of the company's total revenue in the most recent quarter, $66 billion was derived from smartphone sales, while services comprised the second-largest driver of revenue totaling $21 billion, a new record for this segment.
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Apple Apple (NASDAQ: AAPL) continues to prove the resilience of its business, even as consumer spending across all types of retail categories remains in flux against the backdrop of an environment where savings are down and concerns about a recession remain at the forefront. Airbnb Airbnb (NASDAQ: ABNB) faced the same environment other travel stocks have in the last year, as the broader travel recovery moved ahead with the reopening of international borders while the reality of declining consumer savings and fears of a recessionary environment lingers. While smartphones remain the leading driver of Apple's revenue and profits, its services segment -- which includes services like Apple Music and Apple Fitness+ -- is quickly catching up.
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Apple Apple (NASDAQ: AAPL) continues to prove the resilience of its business, even as consumer spending across all types of retail categories remains in flux against the backdrop of an environment where savings are down and concerns about a recession remain at the forefront. Airbnb Airbnb (NASDAQ: ABNB) faced the same environment other travel stocks have in the last year, as the broader travel recovery moved ahead with the reopening of international borders while the reality of declining consumer savings and fears of a recessionary environment lingers. The company recorded an annual profit of $2 billion in 2022, its first full year of profitability, compared to a net loss of $352 million in 2021.
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16912.0
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2023-03-03 00:00:00 UTC
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1 High-Flying Growth Stock With 19% Upside, According to Wall Street
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AAPL
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https://www.nasdaq.com/articles/1-high-flying-growth-stock-with-19-upside-according-to-wall-street
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nan
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nan
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Medical device specialist DexCom (NASDAQ: DXCM) has been on fire over the past year, significantly outperforming the broader market. The healthcare company can thank several tailwinds for its performance, including the continued adoption of the technology it has helped pioneer -- continuous glucose monitoring (CGM) -- and the launch of new products.
But DexCom still has some upside left, at least if we go by Wall Street's predictions. The company's current average price target of $132.22 (according to Yahoo! Finance) represents a 19% upside over its stock price of about $111 as of this writing. Should investors follow the Street's advice and buy DexCom's shares? Let's dig in and find out.
The advantage of continuous glucose monitoring
CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. Typically, those with diabetes have to draw blood with a device sometimes called a glucometer that measures the amount of sugar in the blood sample. But this method is painful and suffers from one other major drawback: It only tells patients their blood glucose levels at a specific point when they measure it. Enter CGM options, like DexCom's G6.
The G6 system has a small sensor inserted under the skin that measures blood glucose levels once every five minutes. That's 12 times per hour and 288 times per day. Having access to this much data can allow patients to better navigate the day-to-day challenges of living with diabetes. The G6 also sends alerts to compatible devices if blood glucose levels go above or below a predetermined threshold.
This option is superior. And it has helped DexCom make serious headway in the diabetes market. The company currently serves an estimated 1.7 million patients worldwide, and its G6 is the most popular CGM system in the world. Further DexCom's revenue has grown. Last year, the company's top line jumped by 19% year over year to $2.91 billion.
But there is plenty of upside left. There are 37.3 million diabetes patients in the U.S. alone. According to the World Health Organization, there are 422 million of them globally. DexCom's installed base of 1.7 million is just a minuscule portion of that. The company does have several competitors, but it leads this market with Abbott Laboratories, whose CGM devices franchise, the FreeStyle Libre, generated $4.3 billion in revenue in 2022.
DexCom has been able to continue to increase its revenue and its installed base despite the competition from the much larger Abbott Laboratories.
Even if there is a combined 20 million CGM users worldwide (an unlikely number), there is still massive room to grow globally. And that's before we add the fact that the population of patients with diabetes will maintain an upward trajectory for decades. Meanwhile, DexCom has released the G7, an updated CGM system whose sensor is smaller than that of the G6.
It started launching it in Europe last year and should do so in the U.S. this year. The DexCom ONE is another device that focuses on simplicity and accessibility (in terms of price). These newer devices will help DexCom as it continues to gain new users.
A solid buy despite the risks
All companies face risks. DexCom is no exception to this iron rule. Let's consider two potential headwinds for investors to consider before initiating a position in this healthcare company; the first is valuation. DexCom's shares look richly valued, with a forward price-to-earnings ratio of 106. That looks high by almost any standard. By comparison, the S&P 500's forward P/E is just 20. DexCom's valuation is likely a reflection of the company's prospects and the fact that it has historically grown its revenue very rapidly.
In the past five years, DexCom's top line has increased by an average of 42.5% per year. Companies with impressive revenue growth and attractive opportunities often command much higher premiums. However, DexCom could be vulnerable to heightened volatility in the short term, especially if it fails to live up to investors' expectations which are, to some extent, already baked into its stock price.
Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. It could eventually integrate this feature into some of its devices like the Apple Watch. According to recent reports, Apple has reached the proof-of-concept phase of its work in this area. What should investors think of these potential problems for DexCom?
Let's start with the second. It's important to note that the proof-of-concept stage is a fancy way of saying, there is real promise here, but there is still a long way to go. It could be five years or more before this technology sees the light of day if it does at all. And while valuation is an issue, DexCom could justify its rich premium over the long run, given the massive opportunity ahead in the diabetes market. Will the healthcare company meet the Street's predictions in the next year?
My view is that it will. But even if it doesn't, DexCom still looks like an excellent long-term bet.
10 stocks we like better than DexCom
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 DexCom 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
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends DexCom 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 advantage of continuous glucose monitoring CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. The company does have several competitors, but it leads this market with Abbott Laboratories, whose CGM devices franchise, the FreeStyle Libre, generated $4.3 billion in revenue in 2022. However, DexCom could be vulnerable to heightened volatility in the short term, especially if it fails to live up to investors' expectations which are, to some extent, already baked into its stock price.
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The advantage of continuous glucose monitoring CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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In the past five years, DexCom's top line has increased by an average of 42.5% per year. Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Finance) represents a 19% upside over its stock price of about $111 as of this writing. There are 37.3 million diabetes patients in the U.S. alone. * They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them!
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16913.0
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2023-03-03 00:00:00 UTC
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Want to Get Richer? 3 Top Stocks to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-3-top-stocks-to-buy-now-and-hold-forever-5
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nan
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nan
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In 2022, the Nasdaq-100 Technology Sector index plunged almost 40% after macroeconomic declines led to reduced spending in the industry. As a result, many of the world's most valuable companies experienced steep declines in their share prices.
The economically challenging year highlighted the importance of holding stocks for the long term because your investment may just be facing temporary headwinds. For instance, many stocks have been rising since the start of 2023, which would be a missed opportunity for those who sold at the bottom last year.
So, want to get richer? Here are three stocks you can buy now and hold forever.
1. Amazon
Amazon (NASDAQ: AMZN) had a worse year than most in 2022, with its stock falling 49.6%. The decline was mainly due to challenges in its e-commerce segment, which reported operating losses totaling $10.6 billion for the year.
Despite the losses, Amazon proved the strength of its diversified business model with its cloud platform, Amazon Web Services (AWS), earning 100% of the company's $12.2 billion in operating income. AWS also reported a year-over-year revenue increase of 28.7% to $80 billion.
Amazon may have started 2023 at a disadvantage, but it remains one of the best growth stocks out there. The company's shares have risen 23% over the last five years and 609% over the last 10 years. Meanwhile, its annual revenue has increased 189% to $513.98 billion since 2018, and operating income has soared 198% to $12.2 billion over that same time frame.
In the coming years, Amazon's leading market share in e-commerce and cloud computing will likely continue to pay off. Despite recent declines in its online retail business, the market still has plenty of room for growth, making Amazon's stock an excellent investment to buy now and hold forever.
2. Apple
Apple's (NASDAQ: AAPL) stock is always easy to recommend and makes a great addition to almost any portfolio. For instance, while the Nasdaq-100 Technology Sector index tumbled 40% in 2022, the iPhone maker proved its resilience by falling a more moderate 26.8%. Apple's stock also fared better than many of its peers amid economic challenges, as seen in the chart below.
Data by YCharts
Moreover, Apple has offered investors significant gains over the long term. Since 2018, the tech giant's stock has climbed 233%, and it's soared 837% since 2013. The impressive returns have come alongside five-year revenue growth of 130% to $394 billion, with its operating income increasing 144% to $119 billion during that time frame.
With reliable and consistent growth, it's not surprising Wall Street mogul Warren Buffett allocated 41.3% of Berkshire Hathaway's portfolio to Apple shares. In fact, Buffett saw the company's stock dip last year as a buying opportunity, boosting Berkshire's stake in the fourth quarter of 2022 by $3 billion.
Apple's stock has risen 179% since Berkshire first invested in 2016. The growth is thanks to its almost unparalleled brand loyalty and a walled garden of products that brings consumers deeper and deeper into its ecosystem with just one purchase. Apple's business has made it the world's most valuable company, with a market cap of $2.35 trillion, making it an excellent stock to hold indefinitely.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) was one of the hardest-hit companies last year, with its stock plummeting 55%. The business suffered from declines in the PC market, which saw worldwide shipments for components such as graphics processing units (GPUs) fall 42% year over year in the third quarter.
Despite the stock's substantial tumble, AMD shares have returned 538% in the last five years and over 3,000% in the last decade. Additionally, the company's annual revenue has increased by 264% to $23.6 billion since 2019, while operating income has risen 180% to $1.2 billion. AMD's growth has largely come from success in custom and consumer processors (CPUs), with its Ryzen series leading it to steal market share from Intel consistently. According to Statista, since Q2 2017, AMD's CPU market share has gone from 20.2% to 35.2%, while Intel's has gone from 79.7% to 62.8%.
However, the biggest reason to invest in AMD is its resilience after a challenging 2022. In Q4 2022, the slumping PC market led the company's client and gaming segments to report revenue declines of 51% and 7%, respectively, year over year. As a result, AMD pivoted to more lucrative parts of its business, with its highest-earning division becoming data centers, which posted a revenue increase of 42% to $1.7 billion. Meanwhile, its embedded segment saw revenue grow over 1,800% to $1.4 billion. The redirection in its business meant the company retained growth despite market headwinds, with revenue rising 43.6% to $23.6 billion in its fiscal 2022.
AMD has solid leadership, with CEO Lisa Su taking the company from the brink of bankruptcy prior to 2017 to a dominating position in tech. AMD's performance under pressure and immense long-term growth makes its stock one to buy and hold forever.
10 stocks we like better than Amazon.com
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, 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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Apple Apple's (NASDAQ: AAPL) stock is always easy to recommend and makes a great addition to almost any portfolio. Despite recent declines in its online retail business, the market still has plenty of room for growth, making Amazon's stock an excellent investment to buy now and hold forever. With reliable and consistent growth, it's not surprising Wall Street mogul Warren Buffett allocated 41.3% of Berkshire Hathaway's portfolio to Apple shares.
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Apple Apple's (NASDAQ: AAPL) stock is always easy to recommend and makes a great addition to almost any portfolio. Despite recent declines in its online retail business, the market still has plenty of room for growth, making Amazon's stock an excellent investment to buy now and hold forever. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) was one of the hardest-hit companies last year, with its stock plummeting 55%.
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Apple Apple's (NASDAQ: AAPL) stock is always easy to recommend and makes a great addition to almost any portfolio. Despite recent declines in its online retail business, the market still has plenty of room for growth, making Amazon's stock an excellent investment to buy now and hold forever. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) was one of the hardest-hit companies last year, with its stock plummeting 55%.
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Apple Apple's (NASDAQ: AAPL) stock is always easy to recommend and makes a great addition to almost any portfolio. The company's shares have risen 23% over the last five years and 609% over the last 10 years. In the coming years, Amazon's leading market share in e-commerce and cloud computing will likely continue to pay off.
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16914.0
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2023-03-02 00:00:00 UTC
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Here's Why Microsoft Isn't Sweating a Looming Recession
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AAPL
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https://www.nasdaq.com/articles/heres-why-microsoft-isnt-sweating-a-looming-recession
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nan
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nan
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Though nobody can say with certainty whether we'll be entering a recession in 2023, enough signs are pointing that way to cause both people and businesses to begin preparing accordingly. For investors, this could mean rough times ahead for many of their investments.
Big tech has had its fair share of humble pie in the past 12 months, and with a looming recession in 2023, it might get worse before it gets better. However, of all big tech companies, none may be more recession-resistant than Microsoft (NASDAQ: MSFT).
Microsoft is dividing and conquering
One thing differentiating Microsoft from many competitors is just how diverse its revenue streams are. Its ecosystem of products and services all do a good job of pulling in their fair share of the revenue load.
Having this many income streams isn't exclusive to Microsoft, but the difference is how spread out the revenue is among them. Of the $52.75 billion Microsoft made in the second quarter of its fiscal 2023, no segment accounted for more than 38%. For perspective, just the iPhone itself accounts for more than half of Apple's revenue, and Google advertising accounts for over 80% of Alphabet's revenue.
Having diverse revenue streams ensures the business isn't too affected if one segment is hit hard by economic conditions. For example, spending on gaming may slow during a recession, but luckily, that represents less than 10% of Microsoft's revenue.
It's the type of customers that benefit Microsoft
Aside from the many different ways Microsoft makes money, what makes it more recession-resistant than its competitors is just who its customers are: other companies. There are countless companies in the world that rely on Microsoft products and services to run their business.
Plenty of companies use Windows PCs for daily work. Industries like finance would go into a frenzy without Excel. Cloud services have increasingly become a necessity, especially for companies operating online. It's hard to imagine job recruiting and searching without LinkedIn. The list goes on of ways Microsoft is intertwined with many companies' daily operations.
If a recession does occur, there's a good chance that consumers will slow down their spending, especially on consumer discretionary products and services. Microsoft's corporate clients, however, likely won't be going anywhere or drastically decreasing how much they spend with the company.
It's easy for a consumer to forgo the latest iPhone when money is tight and the economy is less than ideal; it's much harder for a company to go from using cloud storage back to in-house storage.
Services allow for a higher margin
Since a lot of Microsoft's revenue comes from its services and software, it's able to operate with a higher gross profit margin than many other big tech companies that rely on hardware sales. Once most software is made, you can ship as much of it as you like without incurring too much extra cost (aside from maintenance and updates). It costs to make every single phone, tablet, or laptop sold.
Data by YCharts
This higher margin gives Microsoft more flexibility to adjust its prices without hurting its profit too much. That's extra important during times when the company may need to lower certain prices (or keep them the same while costs go up) to accommodate economic conditions.
A priority for the company is keeping customers in its ecosystem and the recurring revenue coming in.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big tech has had its fair share of humble pie in the past 12 months, and with a looming recession in 2023, it might get worse before it gets better. Having diverse revenue streams ensures the business isn't too affected if one segment is hit hard by economic conditions. That's extra important during times when the company may need to lower certain prices (or keep them the same while costs go up) to accommodate economic conditions.
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It's the type of customers that benefit Microsoft Aside from the many different ways Microsoft makes money, what makes it more recession-resistant than its competitors is just who its customers are: other companies. Services allow for a higher margin Since a lot of Microsoft's revenue comes from its services and software, it's able to operate with a higher gross profit margin than many other big tech companies that rely on hardware sales. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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Microsoft is dividing and conquering One thing differentiating Microsoft from many competitors is just how diverse its revenue streams are. It's the type of customers that benefit Microsoft Aside from the many different ways Microsoft makes money, what makes it more recession-resistant than its competitors is just who its customers are: other companies. Services allow for a higher margin Since a lot of Microsoft's revenue comes from its services and software, it's able to operate with a higher gross profit margin than many other big tech companies that rely on hardware sales.
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It's the type of customers that benefit Microsoft Aside from the many different ways Microsoft makes money, what makes it more recession-resistant than its competitors is just who its customers are: other companies. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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16915.0
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2023-03-02 00:00:00 UTC
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Analysts See 18.5% Upside in This Growth-Stock ETF
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AAPL
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https://www.nasdaq.com/articles/analysts-see-18.5-upside-in-this-growth-stock-etf
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nan
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After growth stocks hit a wall in 2022, they’re back in vogue so far in 2023. For example, the Vanguard Growth ETF (NYSEARCA:VUG), one of the largest growth ETFs in the market with over $75 billion in assets under management (AUM), suffered a 33.1% decline last year, but it's up 8.7% year-to-date. While this is a nice gain so far, analysts believe that VUG still has plenty of upside ahead -- the average VUG stock price target of $275.23 implies upside potential of 18.5% from current levels. Additionally, according to the views of 4K analysts, the Vanguard Growth ETF is a “Moderate Buy.”
TipRanks uses proprietary technology to compile analyst forecasts and price targets for ETFs based on a combination of the individual performances of the underlying assets. By using the Analyst Forecast tool, you will get an overview of the overall analyst rating, analyst price target, and upside or downside for an ETF, as well as the highest and lowest price targets.
TipRanks calculates a weighted average based on the combination of all the ETFs’ holdings. The average price forecast for an ETF is calculated by multiplying each individual holding’s price target by its weighting within the ETF.
For the Vanguard Growth ETF, 65.5% of the analysts in our data set rate this ETF a Buy, while 30.6% view it as a Hold. Just 3.8% call VUG a Sell.
Furthermore, VUG has an ETF Smart Score of 8, meaning that it is likely to outperform the market. Other indicators tracked by TipRanks, such as Crowd wisdom and blogger sentiment, are also positive.
VUG's Holdings
VUG's holdings include 254 stocks, and its top 10 holdings make up 46% of the fund. The fund tracks the CRSP US Large Cap Growth Index, which is comprised of large-cap U.S. growth stocks. Growth stocks are simply stocks that are expected to grow their revenue, profit, or cash flow at a faster rate than the broader market. Growth stocks are often companies with innovative new technologies or companies that are disrupting existing industries.
While growth stocks are more volatile than the broader market, picking the right growth stocks can lead to significant returns. This is where an ETF like VUG that offers broad diversification to a wide array of top U.S. growth stocks comes in handy -- investors get exposure to hundreds of blue-chip growth stocks without single-stock risk.
There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) within VUG's top 10 holdings.
But growth stocks aren't limited to the tech sector -- payment networks Mastercard (NYSE:MA) and Visa (NYSE:V) are also among the top holdings, as is home improvement giant Home Depot (NYSE:HD). Other notable holdings include names like ThermoFisher (NYSE:TMO), McDonald’s (NYSE:MCD), and Nike (NYSE:NKE), so this ETF invests across a wide swath of high-quality U.S. growth stocks. Below is a look at the fund’s top 10 holdings.
Seven out of the top 10 holdings have Strong Buy ratings from analysts, including all five of the top five holdings. Analysts are particularly bullish on holdings like Amazon and Alphabet, which they collectively see as having upside potential of 50% and 43%, respectively.
Long-Term Performance
The Vanguard Growth ETF has a stellar track record over the long term. VUG suffered a 33.1% decline in 2022 as growth stocks struggled due to rampant inflation and rising interest rates. However, zoom further out, and VUG's performance looks a lot more impressive. VUG has returned 56.8% over the past five years and just under 200% over a 10-year time frame, even after accounting for last year's sell-off. Since its inception in 2004, VUG has returned 357.8%.
Dividend and Expenses
While it isn't necessarily enough to put VUG on the radar of income investors, this ETF is a dividend payer that currently yields about 0.64%. In addition to this dividend, its bullish outlook from analysts, and its comprehensive portfolio of blue-chip growth stocks, one thing that really makes the Vanguard Growth ETF stand out is its minuscule expense ratio.
VUG features an expense ratio of just 0.04%, meaning that an individual investing $10,000 in VUG would pay just a negligible $4 in management fees over the course of a year. This is significantly cheaper than the 0.95% that Vanguard says is the average expense ratio for similar funds. Over the course of years and even decades, this can make a huge difference for an investor’s portfolio.
Assuming no change to the fee and a 5% annualized return, after 10 years, an investor with $10,000 in VUG would pay just $51 in fees over the course of the decade. Compare this to an ETF with an expense ratio of 0.5%, for example, and an investor would pay $50 in fees in just the first year alone. Over time, this makes a meaningful difference, and low fees like this can help investors preserve money.
Looking Ahead
While VUG is off to a nice start to 2023, analysts see more upside ahead, as discussed above. VUG could have more reversion to the mean coming after underperforming the S&P 500 (SPX) last year, as investor enthusiasm for growth and technology seems to be returning to the market based on a number of factors.
Inflation cooling down and the Federal Reserve slowing the pace of interest rate hikes would both bode well for growth stocks. Also worth noting is the fact that valuations for many growth stocks came down after last year's sell-off, meaning that valuation is now more palatable in many cases. Lastly, excitement over new innovations like consumer-facing generative Artificial Intelligence (AI) applications like ChatGPT is reigniting investor enthusiasm for tech stocks.
The Vanguard Growth ETF is a great way for investors who are just starting out to quickly gain instant, diversified exposure to a large group of blue-chip U.S. growth stocks, as 7 of the top 10 stocks enjoy Strong Buy designations based on TipRank's data.
Furthermore, with its low fees and strong historical performance, VUG is a great ETF for investors of all levels who want to have low-cost, broad exposure to growth in their portfolios.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) within VUG's top 10 holdings. VUG could have more reversion to the mean coming after underperforming the S&P 500 (SPX) last year, as investor enthusiasm for growth and technology seems to be returning to the market based on a number of factors. Lastly, excitement over new innovations like consumer-facing generative Artificial Intelligence (AI) applications like ChatGPT is reigniting investor enthusiasm for tech stocks.
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There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) within VUG's top 10 holdings. While this is a nice gain so far, analysts believe that VUG still has plenty of upside ahead -- the average VUG stock price target of $275.23 implies upside potential of 18.5% from current levels. Additionally, according to the views of 4K analysts, the Vanguard Growth ETF is a “Moderate Buy.” TipRanks uses proprietary technology to compile analyst forecasts and price targets for ETFs based on a combination of the individual performances of the underlying assets.
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There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) within VUG's top 10 holdings. This is where an ETF like VUG that offers broad diversification to a wide array of top U.S. growth stocks comes in handy -- investors get exposure to hundreds of blue-chip growth stocks without single-stock risk. The Vanguard Growth ETF is a great way for investors who are just starting out to quickly gain instant, diversified exposure to a large group of blue-chip U.S. growth stocks, as 7 of the top 10 stocks enjoy Strong Buy designations based on TipRank's data.
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There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) within VUG's top 10 holdings. VUG's Holdings VUG's holdings include 254 stocks, and its top 10 holdings make up 46% of the fund. VUG has returned 56.8% over the past five years and just under 200% over a 10-year time frame, even after accounting for last year's sell-off.
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16916.0
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2023-03-02 00:00:00 UTC
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After Hours Most Active for Mar 2, 2023 : BAC, PTON, AI, BHC, TQQQ, UBER, WFC, INFN, CHPT, INTC, AAPL, VIAV
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-2-2023-%3A-bac-pton-ai-bhc-tqqq-uber-wfc-infn-chpt-intc-aapl
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nan
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The NASDAQ 100 After Hours Indicator is down -17.79 to 12,027.08. The total After hours volume is currently 83,197,551 shares traded.
The following are the most active stocks for the after hours session:
Bank of America Corporation (BAC) is +0.01 at $33.50, with 3,925,518 shares traded. BAC's current last sale is 88.16% of the target price of $38.
Peloton Interactive, Inc. (PTON) is -0.02 at $12.90, with 3,678,065 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 $-0.5. PTON's current last sale is 75.88% of the target price of $17.
C3.ai, Inc. (AI) is +2.94 at $24.25, with 3,433,203 shares traded. AI's current last sale is 186.54% of the target price of $13.
Bausch Health Companies Inc. (BHC) is -0.005 at $9.25, with 2,540,408 shares traded. BHC's current last sale is 115.61% of the target price of $8.001.
ProShares UltraPro QQQ (TQQQ) is -0.05 at $22.06, with 2,389,844 shares traded. This represents a 37.02% increase from its 52 Week Low.
Uber Technologies, Inc. (UBER) is -0.04 at $33.65, with 2,354,444 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $-0.14. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Wells Fargo & Company (WFC) is +0.02 at $45.82, with 2,248,876 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Infinera Corporation (INFN) is unchanged at $7.28, with 1,816,136 shares traded. As reported in the last short interest update the days to cover for INFN is 20.433464; this calculation is based on the average trading volume of the stock.
ChargePoint Holdings, Inc. (CHPT) is -1.52 at $9.74, with 1,731,009 shares traded. Smarter Analyst Reports: ChargePoint Books Loss in Q4; Shares Rise on Revenue Beat
Intel Corporation (INTC) is -0.02 at $26.18, with 1,722,500 shares traded. INTC's current last sale is 93.5% of the target price of $28.
Apple Inc. (AAPL) is -0.12 at $145.79, with 1,504,017 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 $1.24. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Viavi Solutions Inc. (VIAV) is unchanged at $10.56, with 1,439,614 shares traded. VIAV's current last sale is 74.11% of the target price of $14.25.
The views and 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 -0.12 at $145.79, with 1,504,017 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is -0.12 at $145.79, with 1,504,017 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,197,551 shares traded.
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Apple Inc. (AAPL) is -0.12 at $145.79, with 1,504,017 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,197,551 shares traded.
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Apple Inc. (AAPL) is -0.12 at $145.79, with 1,504,017 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". C3.ai, Inc. (AI) is +2.94 at $24.25, with 3,433,203 shares traded.
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16917.0
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2023-03-02 00:00:00 UTC
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Broadcom forecasts second-quarter revenue above estimates on AI boost
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AAPL
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https://www.nasdaq.com/articles/broadcom-forecasts-second-quarter-revenue-above-estimates-on-ai-boost
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nan
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nan
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Adds share movement, Q1 revenue
March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers.
In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT.
Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work.
The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year.
Shares of San Jose, California-based Broadcom rose 1.3% in extended trading.
The chip designer expects current-quarter revenue to be about $8.7 billion, while analysts on average expect $8.59 billion, according to Refinitiv data.
Revenue for the three-month ended Jan. 29 was $8.92 billion, compared with analysts' average estimate of $8.90 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT.
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The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work. The chip designer expects current-quarter revenue to be about $8.7 billion, while analysts on average expect $8.59 billion, according to Refinitiv data.
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The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work.
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The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT.
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16918.0
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2023-03-02 00:00:00 UTC
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Thursday's ETF with Unusual Volume: PDP
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-pdp
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nan
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nan
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The Invesco DWA Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 150,000 shares traded versus three month average volume of about 40,000. Shares of PDP were up about 0.1% on the day.
Components of that ETF with the highest volume on Thursday were Apple, trading off about 0.8% with over 17.9 million shares changing hands so far this session, and ON Semiconductor, off about 5.1% on volume of over 8.0 million shares. Celsius Holdings is the component faring the best Thursday, higher by about 5% on the day.
VIDEO: Thursday's ETF with Unusual Volume: PDP
The views and 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 Invesco DWA Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 150,000 shares traded versus three month average volume of about 40,000. Components of that ETF with the highest volume on Thursday were Apple, trading off about 0.8% with over 17.9 million shares changing hands so far this session, and ON Semiconductor, off about 5.1% on volume of over 8.0 million shares. Celsius Holdings is the component faring the best Thursday, higher by about 5% on the day.
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The Invesco DWA Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 150,000 shares traded versus three month average volume of about 40,000. Components of that ETF with the highest volume on Thursday were Apple, trading off about 0.8% with over 17.9 million shares changing hands so far this session, and ON Semiconductor, off about 5.1% on volume of over 8.0 million shares. VIDEO: Thursday's ETF with Unusual Volume: PDP The views and 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 Invesco DWA Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 150,000 shares traded versus three month average volume of about 40,000. Components of that ETF with the highest volume on Thursday were Apple, trading off about 0.8% with over 17.9 million shares changing hands so far this session, and ON Semiconductor, off about 5.1% on volume of over 8.0 million shares. VIDEO: Thursday's ETF with Unusual Volume: PDP The views and 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 Invesco DWA Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 150,000 shares traded versus three month average volume of about 40,000. Shares of PDP were up about 0.1% on the day. Components of that ETF with the highest volume on Thursday were Apple, trading off about 0.8% with over 17.9 million shares changing hands so far this session, and ON Semiconductor, off about 5.1% on volume of over 8.0 million shares.
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16919.0
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2023-03-02 00:00:00 UTC
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Apple blocks update to email app with ChatGPT tech - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-blocks-update-to-email-app-with-chatgpt-tech-wsj-0
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nan
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nan
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Adds tweet from Blix co-founder
March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer.
An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal.
Volach in a Twitter post said Apple was unfairly targeting BlueMail and that the app has content filtering. Placing a higher age restriction on the app could limit distribution to potential new users.
"We want fairness. If we're required to be 17-plus, then others should also have to," he tweeted, adding that many other apps that advertise ChatGPT-like features listed on Apple's app store do not have age restrictions.
Apple, which said it was looking into the complaint, said developers have the option to challenge a rejection through the App Review Board process.
Blix and Volach did not immediately respond to Reuters' requests for comment.
OpenAI's ChatGPT, which can generate content in response to user prompts, has captivated the tech industry.
Microsoft MSFT.O and Alphabet Inc's GOOGL.O Google both announced their own AI chatbots earlier in February.
While AI-powered chatbots are a nascent field, early search results and conversations have made headlines with their unpredictability.
(Reporting by Akash Sriram and Samrhitha Arunasalam in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and 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 tweet from Blix co-founder March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. Volach in a Twitter post said Apple was unfairly targeting BlueMail and that the app has content filtering. While AI-powered chatbots are a nascent field, early search results and conversations have made headlines with their unpredictability.
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Adds tweet from Blix co-founder March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. If we're required to be 17-plus, then others should also have to," he tweeted, adding that many other apps that advertise ChatGPT-like features listed on Apple's app store do not have age restrictions.
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Adds tweet from Blix co-founder March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. If we're required to be 17-plus, then others should also have to," he tweeted, adding that many other apps that advertise ChatGPT-like features listed on Apple's app store do not have age restrictions.
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Adds tweet from Blix co-founder March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. Placing a higher age restriction on the app could limit distribution to potential new users.
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16920.0
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2023-03-02 00:00:00 UTC
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April 14th Options Now Available For Apple (AAPL)
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AAPL
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https://www.nasdaq.com/articles/april-14th-options-now-available-for-apple-aapl
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new April 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $141.00 strike price has a current bid of $3.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $141.00, but will also collect the premium, putting the cost basis of the shares at $137.95 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $144.33/share today.
Because the $141.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.16% return on the cash commitment, or 18.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $141.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $147.00 strike price has a current bid of $4.25. If an investor was to purchase shares of AAPL stock at the current price level of $144.33/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $147.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.79% if the stock gets called away at the April 14th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $147.00 strike highlighted in red:
Considering the fact that the $147.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.94% boost of extra return to the investor, or 25.02% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $144.33) to be 35%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
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AGL shares outstanding 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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Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $147.00 strike highlighted in red: Considering the fact that the $147.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the April 14th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $147.00 strike highlighted in red: Considering the fact that the $147.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the April 14th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $147.00 strike highlighted in red: Considering the fact that the $147.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new April 14th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new April 14th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $147.00 strike highlighted in red: Considering the fact that the $147.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the April 14th expiration.
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16921.0
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2023-03-02 00:00:00 UTC
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ANALYSIS-Goldman Sachs faces hard sell for its consumer assets
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AAPL
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https://www.nasdaq.com/articles/analysis-goldman-sachs-faces-hard-sell-for-its-consumer-assets-1
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nan
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nan
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By Saeed Azhar
NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers.
In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion.
The deposits business under Marcus remains a core business and is not under review, a source familiar with the matter told Reuters.
Analysts are assessing which of the remaining businesses are up for grabs, and what price they would fetch after underperforming for Goldman.
Observers have been critical of the bank's foray onto Main Street, which was aimed at diversifying its earnings from the more lucrative mainstays of trading and investment banking.
Those interested could be traditional banks, or Goldman could seek partnerships with certain insurance or private equity shops, the banker said.
"Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
Last year, Goldman folded Marcus into its newly formed asset and wealth-management unit. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
Goldman Sachs said in an email "we presented our path to reach pre-tax breakeven by 2025 at our Investor Day and we look forward to providing regular updates on our progress."
(Additional reporting by Nupur Anand and David French in New York and Mehnaz Yasmin in Bengaluru; Editing by Lananh Nguyen and Anna Driver)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. "Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
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16922.0
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2023-03-02 00:00:00 UTC
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2 Major Catalysts for Apple Stock
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AAPL
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https://www.nasdaq.com/articles/2-major-catalysts-for-apple-stock
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) have pulled back over the last two weeks, falling about 6% since Feb. 15. This retreat in the stock price has been driven by broader market declines, as the S&P 500 and the Nasdaq Composite fell about 5% and 6%, respectively, during this time. Investors have been spooked by continued macroeconomic uncertainty amid interest rate hikes and inflation.
Should investors be fearful? Or is this a good time to take a closer look at quality stocks like Apple. I'd argue the latter. The iPhone maker's decline is arguably giving investors another chance to buy into the stock at an attractive valuation. Sure, there's no guessing the overall market's bottom before it reverses course. The same can be said about Apple stock specifically. But shares of the tech giant are certainly looking compelling for investors willing to buy and hold the stock for the long haul.
As investors consider whether Apple shares are a good investment today, here are two potential catalysts worth giving some weight to in an analysis of the stock.
The iPhone is winning over young people
As The Wall Street Journal (WSJ) recently pointed out, the iPhone's popularity seems to be high with Gen Z, or people in their teens and early 20s. Its popularity with this population is growing outside of the U.S. in particular. This is good news since Apple already enjoys high market share in the U.S., with iPhones accounting for an estimated 57% of smartphones shipped in the fourth quarter, according to recent research from Counterpoint.
Noting that the Gen Z population around the world increasingly sees Apple's iPhone as a "must have," WSJ author Jiyoung Sohn provides the example of the iPhone's growing market share in South Korea, the home country of Samsung, which is the company behind Apple's most formidable competitor. Citing polls by Gallup Korea, Sohn said 52% of people in South Korea between the ages of 18 and 29 were using Apple's iPhone. This is up from 44% market share in 2020.
Services should see steady growth
While Apple's iPhone is important today, accounting for more than half of the tech giant's revenue, another key segment is arguably equally vital to the tech company's future: services. The segment, which includes Apple's revenue from native apps, third-party apps, and other services, has been growing in importance to the company for years. Not only has the segment become Apple's second largest (following its iPhone segment, of course) when measured by revenue, but it's the company's highest-margin segment.
This segment's importance to Apple was particularly notable in the company's most recent quarter when services revenue increased 6% despite a year-over-year decline in product revenue. Indeed, Apple said in its fiscal Q1 earnings call that its $20.8 billion in services revenue for the period was ahead of its expectations. "We achieved double-digit revenue growth from App Store subscriptions and set all-time revenue records across a number of categories, including cloud and payment services," explained Apple CEO Tim Cook.
These two catalysts make a good case for Apple stock being a solid long-term investment, particularly with the stock trading at less than 25 times earnings at the time of this writing.
10 stocks we like better than Apple
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*Stock Advisor returns as of February 8, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. 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) have pulled back over the last two weeks, falling about 6% since Feb. 15. The iPhone maker's decline is arguably giving investors another chance to buy into the stock at an attractive valuation. As investors consider whether Apple shares are a good investment today, here are two potential catalysts worth giving some weight to in an analysis of the stock.
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Shares of Apple (NASDAQ: AAPL) have pulled back over the last two weeks, falling about 6% since Feb. 15. Noting that the Gen Z population around the world increasingly sees Apple's iPhone as a "must have," WSJ author Jiyoung Sohn provides the example of the iPhone's growing market share in South Korea, the home country of Samsung, which is the company behind Apple's most formidable competitor. The segment, which includes Apple's revenue from native apps, third-party apps, and other services, has been growing in importance to the company for years.
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Shares of Apple (NASDAQ: AAPL) have pulled back over the last two weeks, falling about 6% since Feb. 15. Noting that the Gen Z population around the world increasingly sees Apple's iPhone as a "must have," WSJ author Jiyoung Sohn provides the example of the iPhone's growing market share in South Korea, the home country of Samsung, which is the company behind Apple's most formidable competitor. Services should see steady growth While Apple's iPhone is important today, accounting for more than half of the tech giant's revenue, another key segment is arguably equally vital to the tech company's future: services.
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Shares of Apple (NASDAQ: AAPL) have pulled back over the last two weeks, falling about 6% since Feb. 15. This is up from 44% market share in 2020. That's right -- they think these 10 stocks are even better buys.
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16923.0
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2023-03-02 00:00:00 UTC
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Garmin Stock: Bear vs. Bull
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AAPL
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https://www.nasdaq.com/articles/garmin-stock%3A-bear-vs.-bull
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nan
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nan
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Wall Street was happy with the latest operating update from Garmin (NYSE: GRMN). Sure, the tech device company reported declining sales in late 2022 while projecting another year of weaker margins ahead. But Garmin performed well given all the pressures on its industry late last year.
The company has a packed pipeline of new product introductions across key niches like smartwatches and aviation navigation platforms, too.
With those contrasts in mind, let's look at the key bullish and bearish arguments for 2023 and beyond.
The bear case
Bears can point to several deteriorating metrics to support their arguments. In 2022, the company posted a second consecutive year of declining profit margin, and executives projected a third straight drop for 2023.
Garmin's long streak of solid sales growth ended last year, too. After six consecutive years of growth, revenue fell 2% to $4.9 billion. The worst segment was the fitness division, too, which had been its single largest unit heading into the year. That segment shrank by 27% in the fourth quarter and for the full fiscal year as consumer interest in fitness trackers fell.
Things aren't likely to improve by much in 2023, either. Along with that profit-margin drop, Garmin is forecasting revenue growth of just 3% this year. Achieving that result would put the sales footprint about where it was sitting two years earlier, at the end of 2021.
The bull case
Still, Garmin should get credit for posting such a modest sales drop in 2022 even as its biggest sales division slumped.
The company grew its smartwatch sales and posted solid gains in both its aviation and marine navigation divisions. These wins illustrate how Garmin's deep portfolio protects its growth rate even as parts of the business shrink.
And Garmin remains highly profitable. The 20% operating profit margin that management is projecting for 2023 isn't far from Apple's (NASDAQ: AAPL) industry-leading results. And the tech titan's profit margins fell in recent quarters, too, reinforcing the fact that Garmin's struggles were part of a wider pattern among tech manufacturers.
GRMN operating margin (TTM) data by YCharts. TTM = trailing 12 months.
The company's track record leading up to 2022 supports that bullish reading, as sales and earnings rose consistently with the company introducing a steady stream of new products across its targeted niches.
Looking ahead
That pace of launches will speed up in 2023, management says. The packed pipeline should help Garmin again avoid any large sales slump even if pockets of the business contract. But investors should be more excited about the long-term potential for this stock.
Once the temporary demand and cost challenges subside, Garmin is likely to return to its more-normal operating cadence, which had been annual growth in the high single digits. And operating profit margin has room to begin moving back up toward 25% of sales with new introductions in areas like aviation and specialty smartwatches. Apple's recent entry in the ultra-premium segment confirms the attractiveness of that niche, after all.
Altogether, there's a good chance that Garmin will be generating far more than $5 billion of annual revenue in a decade, along with more impressive earnings per share. Given that the stock's valuation has slumped since late 2021, success on these scores would likely deliver excellent returns for patient growth-stock investors.
10 stocks we like better than Garmin
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Garmin 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
Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple and Garmin. 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 20% operating profit margin that management is projecting for 2023 isn't far from Apple's (NASDAQ: AAPL) industry-leading results. Once the temporary demand and cost challenges subside, Garmin is likely to return to its more-normal operating cadence, which had been annual growth in the high single digits. And operating profit margin has room to begin moving back up toward 25% of sales with new introductions in areas like aviation and specialty smartwatches.
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The 20% operating profit margin that management is projecting for 2023 isn't far from Apple's (NASDAQ: AAPL) industry-leading results. Sure, the tech device company reported declining sales in late 2022 while projecting another year of weaker margins ahead. The company has a packed pipeline of new product introductions across key niches like smartwatches and aviation navigation platforms, too.
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The 20% operating profit margin that management is projecting for 2023 isn't far from Apple's (NASDAQ: AAPL) industry-leading results. Sure, the tech device company reported declining sales in late 2022 while projecting another year of weaker margins ahead. Garmin's long streak of solid sales growth ended last year, too.
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The 20% operating profit margin that management is projecting for 2023 isn't far from Apple's (NASDAQ: AAPL) industry-leading results. Sure, the tech device company reported declining sales in late 2022 while projecting another year of weaker margins ahead. The company has a packed pipeline of new product introductions across key niches like smartwatches and aviation navigation platforms, too.
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16924.0
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2023-03-02 00:00:00 UTC
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Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-6
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nan
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nan
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The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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 John Hancock. It has amassed assets over $710.18 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.41%.
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 22.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 15.01% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has gained about 3.15% so far this year and is down about -4.54% in the last one year (as of 03/02/2023). In the past 52-week period, it has traded between $45.43 and $57.85.
The ETF has a beta of 1.01 and standard deviation of 25.14% for the trailing three-year period, making it a medium risk choice in the space. With about 771 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor 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, JHML 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 $296.02 billion in assets, SPDR S&P 500 ETF has $358.57 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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 $710.18 million, 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 John Hancock Multifactor Large Cap ETF (JHML): 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, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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 John Hancock Multifactor Large Cap ETF (JHML): 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, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor 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, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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 John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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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16925.0
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2023-03-02 00:00:00 UTC
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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-fidelity-high-dividend-etf-fdvv-a-strong-etf-right-now-4
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nan
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nan
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The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Fidelity, and has been able to amass over $1.39 billion, which makes it one of the largest ETFs in the Style Box - All Cap Value. This particular fund seeks to match the performance of the Fidelity Core Dividend Index before fees and expenses.
The Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.
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.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.35%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20.50% of the portfolio. Financials and Energy round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
Its top 10 holdings account for approximately 29.61% of FDVV's total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF return is roughly 2.65% so far, and was up about 0.69% over the last 12 months (as of 03/02/2023). FDVV has traded between $33.02 and $42.25 in this past 52-week period.
The ETF has a beta of 1.01 and standard deviation of 24.71% for the trailing three-year period. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend 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 $8.20 billion in assets, iShares Core S&P U.S. Value ETF has $13 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.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Fidelity High Dividend ETF (FDVV): 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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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report Fidelity High Dividend ETF (FDVV): 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. The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report Fidelity High Dividend ETF (FDVV): 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. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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Click to get this free report Fidelity High Dividend ETF (FDVV): 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. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report Fidelity High Dividend ETF (FDVV): 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. The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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16926.0
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2023-03-02 00:00:00 UTC
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Could Apple Be the Next Big Tech Company to Make a Move in Healthcare?
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AAPL
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https://www.nasdaq.com/articles/could-apple-be-the-next-big-tech-company-to-make-a-move-in-healthcare
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nan
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nan
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Apple (NASDAQ: AAPL) has shown an interest in healthcare with its Apple Watch. Its watch has multiple features, including high and low heart rate notifications, fall detection, irregular rhythm notification, and many other ways for users to stay on top of their health. But what it's currently working on may be the biggest game changer of them all, and it could be a sign that a bigger move into the healthcare industry may be inevitable.
Apple is working on a glucose monitor
According to a report from Bloomberg, Apple may be close to bringing a glucose monitor to market, potentially as part of the Apple Watch. The process is not invasive and uses chip technology along with lasers and lights to help determine a person's blood glucose levels. This is not a new project for the company; it goes back a decade. But the progress has been encouraging and is supposedly enough that Bloomberg's sources believe the technology is now viable.
If Apple is indeed close to bringing an Apple Watch to market that tracks blood glucose levels, that could be a game changer for the company. Consumers already spend money on continuous glucose monitors from Abbott Laboratories and DexCom. However, those require patches that need to be replaced every few weeks. The Apple Watch could potentially simplify the process of tracking glucose levels even further.
Could an acquisition be the next big move for the company?
Given the resources Apple has been spending on this initiative, investors shouldn't rule out the possibility that an even bigger move may be in the cards. The tech giant may be looking for a new opportunity to grow its business; for the last three months of 2022, Apple's net sales of $117 billion were down 5.5% from the same period last year. Adding a strong healthcare business to the mix could not only complement the Apple Watch but also give the company some serious growth potential.
Apple also has over $51 billion in cash and marketable securities as of the end of 2022, which could put it in an excellent position to invest in a healthcare business, especially with share prices of many growth stocks plummeting over the past year. Fellow tech giant Amazon recently closed on its acquisition of primary care operator 1Life Healthcare, and that cost it a relatively modest $3.9 billion.
Given Apple's interest in healthcare, the need for more growth, and valuations being down right now, I wouldn't be surprised if it were the next big tech company to acquire a healthcare business.
Should you buy Apple's stock?
Apple has a solid business that many investors find attractive. Despite high prices, consumers continue to buy up iPhones and iPads. And even if that does slow down due to a recession this year, that's not a trend that is likely to last given the strong brand loyalty that Apple enjoys.
With significant cash on its books and the company generating $97 billion in free cash flow over the trailing 12 months, Apple's business is a solid one to invest in. And if it gets deeper into healthcare, which looks to be what it's doing now, there could be even more potential in the company's future, making it an even better buy. Overall, the stock makes for a good buy now and can be an even better one if it makes a big healthcare acquisition in the future.
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 Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories, Amazon.com, and Apple. The Motley Fool recommends DexCom 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 (NASDAQ: AAPL) has shown an interest in healthcare with its Apple Watch. Adding a strong healthcare business to the mix could not only complement the Apple Watch but also give the company some serious growth potential. Apple also has over $51 billion in cash and marketable securities as of the end of 2022, which could put it in an excellent position to invest in a healthcare business, especially with share prices of many growth stocks plummeting over the past year.
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Apple (NASDAQ: AAPL) has shown an interest in healthcare with its Apple Watch. Apple is working on a glucose monitor According to a report from Bloomberg, Apple may be close to bringing a glucose monitor to market, potentially as part of the Apple Watch. If Apple is indeed close to bringing an Apple Watch to market that tracks blood glucose levels, that could be a game changer for the company.
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Apple (NASDAQ: AAPL) has shown an interest in healthcare with its Apple Watch. Apple is working on a glucose monitor According to a report from Bloomberg, Apple may be close to bringing a glucose monitor to market, potentially as part of the Apple Watch. If Apple is indeed close to bringing an Apple Watch to market that tracks blood glucose levels, that could be a game changer for the company.
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Apple (NASDAQ: AAPL) has shown an interest in healthcare with its Apple Watch. Adding a strong healthcare business to the mix could not only complement the Apple Watch but also give the company some serious growth potential. Should you buy Apple's stock?
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16927.0
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2023-03-02 00:00:00 UTC
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Why Apple, Paramount Global, and Walt Disney Are No-Brainer Buys Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-paramount-global-and-walt-disney-are-no-brainer-buys-right-now
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nan
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nan
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There's no doubt the market sell-off last year shook investor confidence in a way not seen since the 2008 market crash. After plunging more than 20% from its highs, the blue-chip-heavy S&P 500 index rebounded slightly but remains down around 16% since the beginning of 2022.
As with every bear market that has come before, this too shall pass. While there's no certainty where stocks will end up in 2023, betting on the futures of quality companies is a good bet.
If you have some extra cash to tuck away for at least five years, let's look at why Apple (NASDAQ: AAPL), Paramount Global (NASDAQ: PARA), and Walt Disney (NYSE: DIS) are relatively safe bets that could deliver satisfactory returns.
Apple
If you're looking for a solid long-term investment, look no further than Apple. The stock returned 232% over the past five years, and has already climbed another 14% year to date, pacing well ahead of the broader market.
Apple designs high-quality products that drive consistent customer satisfaction scores and loyalty. It has remained true to Steve Jobs' original vision of tightly integrating hardware and software, which ultimately delivers an experience that customers love. This is why Apple more than doubled its installed base of devices over the last seven years to more than 2 billion.
The stock pulled back along with the broader market last year over concerns about supply shortages and how that would impact sales of the iPhone, which generates about half of Apple's revenue. Apple passed with flying colors, with management forecasting accelerating iPhone revenue in the quarter ending in March.
While it's possible a severe recession could pressure sales of iPhones, Apple's brand and growing cash resources make the business too strong to be knocked off course. Impressively, the company's free cash flow roughly doubled to around $100 billion over the last five years. The company is using these resources to not only fund new product development, but also reward shareholders through share repurchases and dividends. Investors can't go wrong holding Apple stock for the long haul.
Paramount Global
Paramount is one of the leading entertainment companies, owning the namesake Paramount Pictures studio, in addition to top TV networks like CBS, Comedy Central, and many others. But recent muted financial results due largely to the weak advertising market and investments to support the company's streaming services sent the stock down 26% over the last year, although it has rebounded 30% year to date.
Right now there are some negatives weighing on the stock. Most of all, Paramount's TV media revenue fell 7% year over year in the fourth quarter, which offset robust growth in the streaming and film segments. Moreover, Paramount reported a 63% decline in operating profit last year related to content spending to support the growth of Paramount+. This also shows what will send the stock back up.
Paramount will improve its operating profit and free cash flow, but meanwhile the company's market cap (total shares outstanding times the stock price) is sitting at less than five times its previous free cash flow peak from a few years ago. That's an incredible bargain for this top media franchise.
Data by YCharts
Free cash flow over the last four quarters was negative $139 million. But this has been part of a plan to launch Paramount+, which just completed a record quarter of subscriber gains. Management has stated that 2022 was an investment year, but the focus is to return to positive free cash flow in 2024, which is a catalyst.
The market has lost sight of the long-term intrinsic value of Paramount's entertainment properties. When you own an iconic film studio and a deep library of content, including the past year's biggest domestic box office hit with Top Gun: Maverick, good things will happen for patient investors.
As Paramount Global marches toward positive free cash flow over the next few years, the payoff could be very rewarding.
Walt Disney
Disney owns timeless characters and brands that have been entertaining people for decades. After a decade of great returns for shareholders, the stock didn't have the best outing last year, falling about 44%. But with Disney's streaming business continuing to gain new subscribers and the company's theme parks benefiting from a pickup in travel, the future looks bright for the Magic Kingdom.
Disney+ core subscriber count ended calendar 2023 at 104 million, excluding the international Hotstar service. That is tremendous growth since the service launched in 2019, thanks to a seemingly never-ending pipeline of Star Wars and Marvel content.
Meanwhile, Disney's theme parks are performing exceptionally well. The parks, experiences, and products segment reported a 21% year-over-year increase in revenue last quarter. Operating profits grew even faster at 25%, reflecting solid operating leverage and digital initiatives at the parks to improve the guest experience and lift margins.
Disney has a strong lineup of films and original series this year, including a new Indiana Jones film, The Little Mermaid, and season three of The Mandalorian on Disney+. The recent release of Avatar: The Way of Water was the fourth-biggest launch of all time, bringing in $2.2 billion at the box office. Disney is wasting no time capitalizing on Avatar's popularity by announcing a new Avatar experience coming to Disneyland.
Disney has been turning success at the box office into a lucrative stream of revenue for decades. It has literally thousands of characters across all its franchises that it can mine for years of entertainment. With the stock trading about 50% off its highs, now is a great time to buy the stock before the market changes its mind.
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 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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If you have some extra cash to tuck away for at least five years, let's look at why Apple (NASDAQ: AAPL), Paramount Global (NASDAQ: PARA), and Walt Disney (NYSE: DIS) are relatively safe bets that could deliver satisfactory returns. The stock pulled back along with the broader market last year over concerns about supply shortages and how that would impact sales of the iPhone, which generates about half of Apple's revenue. When you own an iconic film studio and a deep library of content, including the past year's biggest domestic box office hit with Top Gun: Maverick, good things will happen for patient investors.
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If you have some extra cash to tuck away for at least five years, let's look at why Apple (NASDAQ: AAPL), Paramount Global (NASDAQ: PARA), and Walt Disney (NYSE: DIS) are relatively safe bets that could deliver satisfactory returns. Paramount will improve its operating profit and free cash flow, but meanwhile the company's market cap (total shares outstanding times the stock price) is sitting at less than five times its previous free cash flow peak from a few years ago. As Paramount Global marches toward positive free cash flow over the next few years, the payoff could be very rewarding.
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If you have some extra cash to tuck away for at least five years, let's look at why Apple (NASDAQ: AAPL), Paramount Global (NASDAQ: PARA), and Walt Disney (NYSE: DIS) are relatively safe bets that could deliver satisfactory returns. But recent muted financial results due largely to the weak advertising market and investments to support the company's streaming services sent the stock down 26% over the last year, although it has rebounded 30% year to date. Paramount will improve its operating profit and free cash flow, but meanwhile the company's market cap (total shares outstanding times the stock price) is sitting at less than five times its previous free cash flow peak from a few years ago.
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If you have some extra cash to tuck away for at least five years, let's look at why Apple (NASDAQ: AAPL), Paramount Global (NASDAQ: PARA), and Walt Disney (NYSE: DIS) are relatively safe bets that could deliver satisfactory returns. Walt Disney Disney owns timeless characters and brands that have been entertaining people for decades. See the 10 stocks *Stock Advisor returns as of February 8, 2023 John Ballard has no position in any of the stocks mentioned.
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16928.0
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2023-03-02 00:00:00 UTC
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Apple blocks update to email app with ChatGPT tech - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-blocks-update-to-email-app-with-chatgpt-tech-wsj
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nan
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nan
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March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer.
An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal.
Blix and Apple did not immediately respond to a Reuters request for comment.
OpenAI's ChatGPT, which can generate content in response to user prompts, has captivated the tech industry.
Microsoft MSFT.O and Alphabet Inc's GOOGL.O Google both announced their own AI chatbots earlier in February.
While AI-powered chatbots are a nascent field, early search results and conversations have made headlines with their unpredictability.
(Reporting by Akash Sriram in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and 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 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. OpenAI's ChatGPT, which can generate content in response to user prompts, has captivated the tech industry. While AI-powered chatbots are a nascent field, early search results and conversations have made headlines with their unpredictability.
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March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. While AI-powered chatbots are a nascent field, early search results and conversations have made headlines with their unpredictability.
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March 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. (Reporting by Akash Sriram in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;)) The views and 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 2 (Reuters) - Apple Inc AAPL.O has delayed the approval of an update to an email app with AI-powered tools due to worries that it may generate inappropriate content for children, the Wall Street Journal reported on Thursday, citing communications between the iPhone maker and the app developer. An update to the email app, BlueMail, which uses a customized version of OpenAI's GPT-3 language model, was blocked last week, Ben Volach, co-founder of BlueMail developer Blix Inc, told the Journal. Blix and Apple did not immediately respond to a Reuters request for comment.
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16929.0
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2023-03-01 00:00:00 UTC
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Warren Buffett vs. Cathie Wood: Where Would You Rather Invest?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-vs.-cathie-wood%3A-where-would-you-rather-invest
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nan
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nan
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Cathie Wood went from the hottest investing guru around to cold fish in just a year. Her Ark Invest exchange-traded funds (ETFs) doubled investors' money in 2020, but subsequently collapsed when the tech stock bull market came to a screeching halt.
However, Wood's Ark Innovation ETF is running strong again in 2023, up over 23% since the start of the year compared to a 1.5% decline in Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Warren Buffett, of course, has an enviable 60-year track record under his belt and has generated returns of 3,600,000% in that time frame (yes, you read that right -- 3.6 million percent returns).
Image source: The Motley Fool.
The investing styles of Wood and Buffett could hardly be more different, though. Whereas the Oracle of Omaha generally sticks to a buy-and-hold philosophy, Wood trades much more frenetically as she's not opposed to jumping into and out of positions frequently, sometimes on a daily basis.
For all her trading and the collapse of the tech sector, Wood is still a sharp Wall Street guru who has 10-year annual returns of over 85%, indicating how well she did during the former bull market.
Do you prefer Buffett's more laid-back, big-bet style on solid businesses or Wood's in-and-out pace trying to capture a stock's trend? Let's take a look at the stock each of the investing gurus has made their biggest bet on.
Apple
For an investor who famously swore off tech stocks because he didn't understand them, Buffett has tightly embraced Apple's (NASDAQ: AAPL) stock, making it his biggest holding by far. The consumer gadget maker comprises 41% of Berkshire Hathaway's portfolio, some $136 billion in total.
No doubt Buffett likes the fact that this iconic brand commands the loyalty of tens of millions of consumers willing to pay a premium for its products, as well as being an innovative tech stock. Arguably its greatest product is the iPhone, which generates 85% of Cupertino's operating profits and 48% of its revenue.
Yet it has a strong presence across many gadgets, including computers and wearables. The Apple Watch has more than twice the market share of its nearest rival, for example. The tech giant now has an installed base of more than 2 billion active devices, or double what it was seven years ago.
Where Apple will likely be seeing future growth, however, is in services. The segment just achieved record revenue this past quarter, hitting $20.8 billion, or almost 18% of total sales. Margins for the services business are also generous, representing around 70% of revenue.
Although Wall Street seems to write off Apple every time there's a bump in the road, there may be a lot more success ahead for this growth-oriented tech stock.
Image source: Tesla.
Tesla
Wood seems to have a love-hate relationship with Tesla (NASDAQ: TSLA) as she is forever buying and selling the stock. Even so, it is the largest holding across her ETFs, representing almost 7.9% of the total. At last count, she owned over 5 million shares, making it a billion-dollar holding for her funds.
Yet, her holdings seem to track the rise and fall in the electric car stock itself, which not that long ago had a $1 trillion market valuation only to see it implode and lose over 60% of its value. It's marching higher once more as auto sales rose 35%, but questions remain about how sustainable that growth is.
Tesla cut prices, which may help to juice sales further, but it will reduce revenue and profit margins in the process. The automaker maintains that gross margins, however, will still exceed 20%, which is better than its rivals.
EVs will have a rough road ahead, no matter what. Challenges include dependence on tax credits to boost consumer demand; a shaky national electric grid that will only be stressed more as new EVs are sold; more manufacturers chasing finite resources, which will increase costs; and an increasingly competitive international marketplace.
Tesla remains the leading EV maker by far, but analysts see Ford and General Motors surpassing it sooner rather than later. It still has a place in the market, but growth may be lumpier and take longer to achieve than what investors hope.
Buffett or Wood?
Buying into Buffett's Berkshire Hathaway means its performance will be heavily swayed by how Apple's stock performs. Buffett's second top pick, Chevron, has just a 10% position in the portfolio and won't influence its returns nearly as much as Apple.
While Tesla commands Wood's top spot, four more stocks are not far behind with around a 5% or so weighting in her portfolio. No one company will unduly sway returns and it comes down to her stock-picking prowess.
Individual investors need to determine their own appetite for risk and decide whether they find themselves more on Team Buffett or Team Wood.
10 stocks we like better than Apple
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*Stock Advisor returns as of February 8, 2023
Rich Duprey has positions in Chevron. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla. 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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Apple For an investor who famously swore off tech stocks because he didn't understand them, Buffett has tightly embraced Apple's (NASDAQ: AAPL) stock, making it his biggest holding by far. Her Ark Invest exchange-traded funds (ETFs) doubled investors' money in 2020, but subsequently collapsed when the tech stock bull market came to a screeching halt. Whereas the Oracle of Omaha generally sticks to a buy-and-hold philosophy, Wood trades much more frenetically as she's not opposed to jumping into and out of positions frequently, sometimes on a daily basis.
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Apple For an investor who famously swore off tech stocks because he didn't understand them, Buffett has tightly embraced Apple's (NASDAQ: AAPL) stock, making it his biggest holding by far. The consumer gadget maker comprises 41% of Berkshire Hathaway's portfolio, some $136 billion in total. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla.
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Apple For an investor who famously swore off tech stocks because he didn't understand them, Buffett has tightly embraced Apple's (NASDAQ: AAPL) stock, making it his biggest holding by far. Buying into Buffett's Berkshire Hathaway means its performance will be heavily swayed by how Apple's stock performs. 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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Apple For an investor who famously swore off tech stocks because he didn't understand them, Buffett has tightly embraced Apple's (NASDAQ: AAPL) stock, making it his biggest holding by far. The consumer gadget maker comprises 41% of Berkshire Hathaway's portfolio, some $136 billion in total. Buffett or Wood?
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16930.0
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2023-03-01 00:00:00 UTC
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Warren Buffett Loves These Stocks. Are They Right for You?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-loves-these-stocks.-are-they-right-for-you-4
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nan
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nan
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Warren Buffett is one of the most successful investors of all time. This is a fact that's undisputed, making his stock picks among the most watched in the investing community.
Buffett's Berkshire Hathaway (NYSE: BRK.B) is perhaps the most intriguing conglomerate on the planet. Now a holding company for Buffett's investments, Berkshire's former status as a New England textiles maker has been long forgotten (and notably one of Buffett's self-proclaimed worst investments, but that's a whole other story).
These three stocks are ones I think best exemplify some of Buffett's wisest moves in recent history. Let's dive in and see if they're good fits for your portfolio.
Apple
Any list of top Warren Buffett stocks has to include Apple (NASDAQ: AAPL). The world's largest company by market value, and Buffett's largest holding (making up 39% of his portfolio), Apple remains the centerpiece of the Berkshire Hathaway portfolio.
Indeed, Apple's dominance in Berkshire's portfolio highlights Buffett's belief in big bets. Buffett's previous commentary on diversification is notable. He said, "Diversification is protection against ignorance. It makes little sense if you know what you are doing." His bet on Apple speaks to this maxim loudly.
While Buffett has trimmed his position in Apple from time to time, he's mostly been in adding mode since initiating his position in 2016. In fact, he's been noted as saying that he would have bought more in 2022 had Apple stock not rebounded so nicely. That's a good position to be in -- to hope that your largest position provides a better entry point so you can buy more.
Ultimately, Apple's dominant market position in the U.S. smartphone market, and its valuable closed-loop ecosystem supported by a very loyal customer base, provide the kind of durable competitive advantage Buffett is looking for. While Apple stock isn't cheap, trading at about 25 times trailing earnings, it's the company's quality that Buffett is so clearly enamored of. The idea that buying a great company at a reasonable price is better than buying a reasonable company at a great price is on full display with Buffett's continued faith in Apple.
Taiwan Semiconductor
A rather controversial pick to put on this list, Taiwan Semiconductor (NYSE: TSM) is a company many may argue Buffett and his investing team doesn't really love. That's because after adding a significant $4.1 billion position this past fall, Buffett has since trimmed his position, big time. As of Berkshire's most recent 13-F filing, Buffett's stake in the world's largest semiconductor company by revenue has dwindled to a "meager" $617 million.
That said, I think it's worth exploring what led Buffett and his team to take this position in the first place.
Taiwan Semi's dominant market share in chip manufacturing makes this company one that's about as sensitive to fluctuations in the global economy as any out there. But for Buffett, a forever bull on the future of America (and by extension the world), investing in a cyclical name when it's been beaten down is the right choice.
Now, ongoing geopolitical concerns about China are no joke. It's also unclear whether Buffett initiated this position on his own, or if one of his two lieutenants did so unilaterally. Indeed, perhaps Buffett's recent sale of TSM stock indicates he believes the rewards of owning this stock long-term aren't worth the near-term risks. That's something investors need to consider.
That said, for those taking a bullish stance on the long-term growth of the global economy, this is a stock to keep on the watch list now.
Occidental Petroleum
One of the most prescient investments Buffett has made in recent history has to be Occidental Petroleum (NYSE: OXY). Indeed, the history of Buffett's investments in Occidental are worth a deep dive on their own. But the broad strokes are as follows.
Essentially, Buffett's first foray into Occidental came via a preferred share purchase in the spring of 2019, when Berkshire invested $10 billion in cumulative preferred stock, paying an 8% yield. This capital injection was tied to Occidental's acquisition of Anadarko Petroleum, which turned into a bidding war at the time. As a result of this transaction, Buffett received 80 million warrants (now 83.9 million) which could be converted into OXY stock at any point over the coming eight years, at an exercise price of $59.62 per share.
With the stock now trading around this amount, it's unclear whether Occidental will use its buyback program to reacquire these preferred shares. However, Buffett has since beefed up his stake in Occidental, purchasing more than 194 million shares of common stock (worth roughly $12.2 billion) since early 2022. An earlier position in Occidental stock that was built in 2019 was subsequently sold in early 2022 at the onset of the pandemic.
When Buffett stared rebuying Occidental stock, the shares were trading at about $46. Thus, despite Occidental trading well below its 52-week high of $77.13 per share (below $60 at the time of writing), it's been very profitable for Buffett thus far, and remains the Oracle of Omaha's seventh-largest position.
For those eager to have a portfolio hedge against commodity inflation, or who simply want to rake in an impressive dividend yield while waiting out what could be a turbulent economic period, following in Buffett's footsteps with Occidental Petroleum certainly seems like a solid bet.
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.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
Chris MacDonald has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Any list of top Warren Buffett stocks has to include Apple (NASDAQ: AAPL). However, Buffett has since beefed up his stake in Occidental, purchasing more than 194 million shares of common stock (worth roughly $12.2 billion) since early 2022. Thus, despite Occidental trading well below its 52-week high of $77.13 per share (below $60 at the time of writing), it's been very profitable for Buffett thus far, and remains the Oracle of Omaha's seventh-largest position.
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Apple Any list of top Warren Buffett stocks has to include Apple (NASDAQ: AAPL). The world's largest company by market value, and Buffett's largest holding (making up 39% of his portfolio), Apple remains the centerpiece of the Berkshire Hathaway portfolio. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing.
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Apple Any list of top Warren Buffett stocks has to include Apple (NASDAQ: AAPL). The world's largest company by market value, and Buffett's largest holding (making up 39% of his portfolio), Apple remains the centerpiece of the Berkshire Hathaway portfolio. Essentially, Buffett's first foray into Occidental came via a preferred share purchase in the spring of 2019, when Berkshire invested $10 billion in cumulative preferred stock, paying an 8% yield.
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Apple Any list of top Warren Buffett stocks has to include Apple (NASDAQ: AAPL). While Buffett has trimmed his position in Apple from time to time, he's mostly been in adding mode since initiating his position in 2016. * 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!
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16931.0
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2023-03-01 00:00:00 UTC
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Notable Wednesday Option Activity: AAPL, HD, BIG
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-hd-big
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 625,193 contracts have traded so far, representing approximately 62.5 million underlying shares. That amounts to about 91.1% of AAPL's average daily trading volume over the past month of 68.7 million shares. Especially high volume was seen for the $146 strike call option expiring March 03, 2023, with 30,118 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $146 strike highlighted in orange:
Home Depot Inc (Symbol: HD) saw options trading volume of 35,209 contracts, representing approximately 3.5 million underlying shares or approximately 90.2% of HD's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $282.50 strike put option expiring March 03, 2023, with 1,561 contracts trading so far today, representing approximately 156,100 underlying shares of HD. Below is a chart showing HD's trailing twelve month trading history, with the $282.50 strike highlighted in orange:
And Big Lots, Inc. (Symbol: BIG) saw options trading volume of 10,476 contracts, representing approximately 1.0 million underlying shares or approximately 89.3% of BIG's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $17.50 strike call option expiring March 17, 2023, with 5,389 contracts trading so far today, representing approximately 538,900 underlying shares of BIG. Below is a chart showing BIG's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
For the various different available expirations for AAPL options, HD options, or BIG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding SIG
Funds Holding FLGR
Institutional Holders of RORO
The views and 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 $146 strike call option expiring March 03, 2023, with 30,118 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 625,193 contracts have traded so far, representing approximately 62.5 million underlying shares. That amounts to about 91.1% of AAPL's average daily trading volume over the past month of 68.7 million shares.
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Especially high volume was seen for the $146 strike call option expiring March 03, 2023, with 30,118 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $146 strike highlighted in orange: Home Depot Inc (Symbol: HD) saw options trading volume of 35,209 contracts, representing approximately 3.5 million underlying shares or approximately 90.2% of HD's average daily trading volume over the past month, of 3.9 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 625,193 contracts have traded so far, representing approximately 62.5 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 625,193 contracts have traded so far, representing approximately 62.5 million underlying shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $146 strike highlighted in orange: Home Depot Inc (Symbol: HD) saw options trading volume of 35,209 contracts, representing approximately 3.5 million underlying shares or approximately 90.2% of HD's average daily trading volume over the past month, of 3.9 million shares. That amounts to about 91.1% of AAPL's average daily trading volume over the past month of 68.7 million shares.
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Especially high volume was seen for the $146 strike call option expiring March 03, 2023, with 30,118 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $146 strike highlighted in orange: Home Depot Inc (Symbol: HD) saw options trading volume of 35,209 contracts, representing approximately 3.5 million underlying shares or approximately 90.2% of HD's average daily trading volume over the past month, of 3.9 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 625,193 contracts have traded so far, representing approximately 62.5 million underlying shares.
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16932.0
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2023-03-01 00:00:00 UTC
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Validea Guru Fundamental Report for AAPL - 3/1/2023
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AAPL
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-3-1-2023
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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/p>
Harry Browne Permanent Portfolio/p>
Ray Dalio All Weather Portfolio/p>
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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16933.0
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2023-03-01 00:00:00 UTC
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Are Artificial Intelligence Investors Overlooking Apple?
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AAPL
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https://www.nasdaq.com/articles/are-artificial-intelligence-investors-overlooking-apple
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nan
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nan
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It’s easy to understand why artificial intelligence (AI) has been Wall Street’s new shiny toy in 2023, as the technology allows us to achieve digital feats that otherwise felt impossible.
And, of course, several big-tech players, including Microsoft MSFT and Alphabet GOOGL, have been scurrying to become the leader.
However, what if Apple AAPL could be another AI play hidden in plain sight? Let’s take a closer look at AI developments surrounding all three companies.
Apple
During the company’s most recentearnings callin early February, the topic of artificial intelligence came up. CEO Tim Cook undoubtedly has a positive view of the technology, claiming that AI will affect nearly all product and service offerings.
Interestingly enough, the legendary tech titan has already implemented the technology in several areas, including within the Apple Watch and the iPhone. Perhaps to the surprise of some, Apple’s Siri is powered by artificial intelligence.
So, while Apple may not be making flashy headlines surrounding the technology, it’s very much alive within the company.
The company posted worse-than-expected results, falling short of both earnings and revenue estimates in the face of a challenging business environment. It’s worth noting that the miss snapped a long streak of double beats.
Image Source: Zacks Investment Research
Microsoft
Microsoft gained widespread investor attention following announcements of a new AI-powered Bing search engine and Edge browser.
The new search engine and Edge browser are expected to deliver enhanced search results, complete answers, a new chat experience, and an overall much easier experience when exploring the web.
On top of AI exposure, MSFT shares provide a modest income stream; the company’s annual dividend presently yields 1.1%, with the tech titan boasting an impressive 10.3% five-year annualized growth rate.
Image Source: Zacks Investment Research
Alphabet
Alphabet recently unveiled its new conversational AI service, Bard, which is powered by its next-generation LaMDA (language model for dialogue applications).
Bard is expected to deliver high-quality responses drawn from the web, pairing the globe’s knowledge with the power of Alphabet’s LaMDA.
GOOGL shares have gotten cheaper following rough price action in 2022, with the company’s 17.6X current forward earnings multiple sitting well beneath the 26.1X five-year median and highs of 34.5X in 2021.
Image Source: Zacks Investment Research
Bottom Line
While the market continues to clamor about Microsoft’s MSFT and Alphabet’s GOOGL AI developments, Apple has seemingly flown under the radar.
It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch.
With such a rich history, could Apple eventually become a leader in AI?
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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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However, what if Apple AAPL could be another AI play hidden in plain sight? It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, what if Apple AAPL could be another AI play hidden in plain sight? It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, what if Apple AAPL could be another AI play hidden in plain sight? It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch.
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It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch. However, what if Apple AAPL could be another AI play hidden in plain sight? Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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16934.0
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2023-03-01 00:00:00 UTC
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ANALYSIS-Goldman Sachs faces hard sell for its consumer assets
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AAPL
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https://www.nasdaq.com/articles/analysis-goldman-sachs-faces-hard-sell-for-its-consumer-assets
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nan
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nan
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By Saeed Azhar
NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers.
In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at 'strategic alternatives' for the consumer business, a signal of a possible sale.
Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion.
Analysts are assessing which of those businesses are up for grabs, and what price they would fetch after underperforming for Goldman.
Observers have been critical of the bank's foray onto Main Street, which was aimed at diversifying its earnings from the more lucrative mainstays of trading and investment banking.
Those interested could be traditional banks, or Goldman could seek partnerships with certain insurance or private equity shops, the banker said.
"Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
Last year, Goldman folded Marcus into its newly formed asset and wealth-management unit. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
Goldman Sachs said in an email "we presented our path to reach pre-tax breakeven by 2025 at our Investor Day and we look forward to providing regular updates on our progress."
(Additional reporting by Nupur Anand and David French in New York and Mehnaz Yasmin in Bengaluru; Editing by Lananh Nguyen and Anna Driver)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at 'strategic alternatives' for the consumer business, a signal of a possible sale.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. "Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at 'strategic alternatives' for the consumer business, a signal of a possible sale.
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16935.0
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2023-03-01 00:00:00 UTC
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ANALYSIS-Goldman Sachs faces hard sell for its consumer assets
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AAPL
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https://www.nasdaq.com/articles/analysis-goldman-sachs-faces-hard-sell-for-its-consumer-assets-0
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nan
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nan
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By Saeed Azhar
NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers.
In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion.
The deposits business under Marcus remains a core business and is not under review, a source familiar with the matter told Reuters.
Analysts are assessing which of the remaining businesses are up for grabs, and what price they would fetch after underperforming for Goldman.
Observers have been critical of the bank's foray onto Main Street, which was aimed at diversifying its earnings from the more lucrative mainstays of trading and investment banking.
Those interested could be traditional banks, or Goldman could seek partnerships with certain insurance or private equity shops, the banker said.
"Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
Last year, Goldman folded Marcus into its newly formed asset and wealth-management unit. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
Goldman Sachs said in an email "we presented our path to reach pre-tax breakeven by 2025 at our Investor Day and we look forward to providing regular updates on our progress."
(Additional reporting by Nupur Anand and David French in New York and Mehnaz Yasmin in Bengaluru; Editing by Lananh Nguyen and Anna Driver)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. It also created a Platform Solutions unit to house the credit card partnerships, the GreenSky business and transaction banking.
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. "Consumer banking businesses are incredibly hard to build," said Chris Kotowski, an analyst at Oppenheimer & Co. "The incumbent brick-and-mortar banks that everyone thought were dinosaurs actually have a unique and hard to replicate value proposition with checking accounts, cards, a branch near home and one by the office."
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Goldman still holds $100 billion in deposits from its Marcus consumer banking business, $4.5 billion in personal loans, credit card partnerships with Apple Inc AAPL.O and General Motors Co GM.N, and merchant lending platform GreenSky for $2.2 billion. By Saeed Azhar NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc GS.N is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at "strategic alternatives" for the consumer business, a signal of a possible sale.
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16936.0
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2023-03-01 00:00:00 UTC
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After Hours Most Active for Mar 1, 2023 : EXEL, AAPL, BABA, CMAX, RADI, CRM, TSLA, GOOGL, TTE, SNOW, ET, GM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-mar-1-2023-%3A-exel-aapl-baba-cmax-radi-crm-tsla-googl-tte-snow
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 15.23 to 11,953.8. The total After hours volume is currently 83,362,029 shares traded.
The following are the most active stocks for the after hours session:
Exelixis, Inc. (EXEL) is unchanged at $17.47, with 4,528,151 shares traded. As reported by Zacks, the current mean recommendation for EXEL is in the "buy range".
Apple Inc. (AAPL) is +0.03 at $145.34, with 3,577,128 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 $1.24. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alibaba Group Holding Limited (BABA) is +0.25 at $90.20, with 3,242,934 shares traded. BABA's current last sale is 62.64% of the target price of $144.
CareMax, Inc. (CMAX) is unchanged at $4.12, with 2,764,540 shares traded. As reported in the last short interest update the days to cover for CMAX is 29.739673; this calculation is based on the average trading volume of the stock.
Radius Global Infrastructure, Inc. (RADI) is +0.67 at $14.57, with 2,730,158 shares traded. As reported in the last short interest update the days to cover for RADI is 11.40534; this calculation is based on the average trading volume of the stock.
Salesforce, Inc. (CRM) is +23.65 at $191.00, with 2,594,337 shares traded. As reported by Zacks, the current mean recommendation for CRM is in the "buy range".
Tesla, Inc. (TSLA) is -1.27 at $201.50, with 2,579,537 shares traded. TSLA's current last sale is 98.29% of the target price of $205.
Alphabet Inc. (GOOGL) is +0.29 at $90.65, with 2,260,398 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.23. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
TotalEnergies SE (TTE) is unchanged at $62.19, with 1,864,771 shares traded. As reported by Zacks, the current mean recommendation for TTE is in the "buy range".
Snowflake Inc. (SNOW) is -8.85 at $145.65, with 1,357,109 shares traded. Smarter Analyst Reports: Snowflake Drops 22% on Surprise Quarterly Loss & Disappointing Guidance
Energy Transfer L.P. (ET) is +0.04 at $12.83, with 1,108,407 shares traded. ET's current last sale is 75.47% of the target price of $17.
General Motors Company (GM) is unchanged at $38.72, with 1,050,788 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $1.38. GM's current last sale is 84.17% of the target price of $46.
The views and 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 +0.03 at $145.34, with 3,577,128 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for CMAX is 29.739673; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +0.03 at $145.34, with 3,577,128 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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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.03 at $145.34, with 3,577,128 shares traded. The total After hours volume is currently 83,362,029 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.03 at $145.34, with 3,577,128 shares traded. BABA's current last sale is 62.64% of the target price of $144.
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16937.0
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2023-03-01 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-2
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nan
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nan
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Apple (NASDAQ: AAPL) has been one of the most successful companies in the world over the last 20 years, and it doesn't show any signs of stopping. iPhones continue improving, Macs are better than ever, and new accessories like AirPods and the Apple Watch have taken the market by storm.
But what do smart investors know about Apple? Let's dig into why this company is so successful.
The iPhone is the key to Apple's success
Everything Apple does today stems from the iPhone. Not only did the iPhone generate $65.8 billion of the company's $117.2 billion in revenue in the fiscal first quarter of 2023 (which ended December 31, 2022), it drove a lot of the $20.8 billion in services revenue from the App Store, iCloud, and advertising.
The iPhone has also been both the gateway to products like Macs, iPads, and accessories and the testing ground for new innovations that integrate the company's products more completely. And this level of integration is what sets Apple apart from the competition.
Image source: Apple.
Integration is the point
Apple has always been a unique company in that it integrates hardware with software. But over the last decade, it's taken the strategy to a new level.
Apple now manufactures its own chips for the iPhone, the Mac, and even designs their smaller devices like AirPods and the Apple Watch in house. The software and hardware are integrated, but so are chips and other components.
This allows Apple to make more efficient products for its specific use cases. Computers can last longer on a charge and be built to efficiently operate for most use cases and future functionality like incorporating AI models on the chip (something Apple is working on).
The disparate PC and Android model of pulling together components from multiple suppliers and then tying them together with Android or Windows has advantages like cost and flexibility, but Apple is more concerned with a better user experience, and integration allows that to happen.
Apple is returning cash to shareholders at an unprecedented level
Not only is Apple upgrading and introducing new products, it's also returning cash to shareholders at an incredible pace. Over the past year, it has returned over $100 billion to shareholders through buybacks and dividends.
AAPL Stock Buybacks (TTM) data by YCharts
This may be a sign of a maturing business that doesn't have major new projects to invest in, but Apple is also generating cash at a scale few companies have ever come close to. So returning cash is likely the best use of company funds, rather than chasing new markets that may never materialize (ahem, Meta).
Still one of the best
Apple isn't growing as quickly as it was a decade ago, but it's still a giant in technology. The company has an incredibly sticky business that starts with the iPhone and extends to the Mac and other products. I don't see its dominant position ending anytime soon, and that's why it's still one of the best stocks on the market today.
10 stocks we like better than Apple
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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. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has been one of the most successful companies in the world over the last 20 years, and it doesn't show any signs of stopping. AAPL Stock Buybacks (TTM) data by YCharts This may be a sign of a maturing business that doesn't have major new projects to invest in, but Apple is also generating cash at a scale few companies have ever come close to. Computers can last longer on a charge and be built to efficiently operate for most use cases and future functionality like incorporating AI models on the chip (something Apple is working on).
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Apple (NASDAQ: AAPL) has been one of the most successful companies in the world over the last 20 years, and it doesn't show any signs of stopping. AAPL Stock Buybacks (TTM) data by YCharts This may be a sign of a maturing business that doesn't have major new projects to invest in, but Apple is also generating cash at a scale few companies have ever come close to. Not only did the iPhone generate $65.8 billion of the company's $117.2 billion in revenue in the fiscal first quarter of 2023 (which ended December 31, 2022), it drove a lot of the $20.8 billion in services revenue from the App Store, iCloud, and advertising.
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Apple (NASDAQ: AAPL) has been one of the most successful companies in the world over the last 20 years, and it doesn't show any signs of stopping. AAPL Stock Buybacks (TTM) data by YCharts This may be a sign of a maturing business that doesn't have major new projects to invest in, but Apple is also generating cash at a scale few companies have ever come close to. The iPhone is the key to Apple's success Everything Apple does today stems from the iPhone.
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Apple (NASDAQ: AAPL) has been one of the most successful companies in the world over the last 20 years, and it doesn't show any signs of stopping. AAPL Stock Buybacks (TTM) data by YCharts This may be a sign of a maturing business that doesn't have major new projects to invest in, but Apple is also generating cash at a scale few companies have ever come close to. The iPhone is the key to Apple's success Everything Apple does today stems from the iPhone.
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16938.0
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2023-03-01 00:00:00 UTC
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2 Buffett-Approved Stocks to Ride Out the Next Recession
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AAPL
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https://www.nasdaq.com/articles/2-buffett-approved-stocks-to-ride-out-the-next-recession
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nan
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nan
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According to some data, there have been eight recessions in the U.S. since 1965. Some experts think there could be another one this year, which would complicate matters for consumers and investors alike. Interestingly enough, 1965 was also the year Warren Buffett took over Berkshire Hathaway. Despite facing an more than a few economic downturns, the legendary investor has beat the market in that time period.
So, taking some inspiration from the Oracle of Omaha is a great place to start for those looking to navigate the next recession as smoothly as possible. With that said, here are two stocks, some of whose shares are owned by Warren Buffett's Berkshire Hathaway, that are ideal to recession-proof any portfolio: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL).
1. Johnson & Johnson
Johnson & Johnson is a major pharmaceutical and medical technology company that generates consistent revenue and profit. The healthcare giant has an impeccable track record with a history of innovation that dates back more than 100 years. Today, Johnson & Johnson continues to market dozens of medicines that are incredibly important -- sometimes lifesaving -- for patients.
This is not an area where customers will cut back, even during an economic recession. Similarly, Johnson & Johnson's portfolio of medical devices in eye care, surgery, and orthopedics meets a critical need that doesn't simply stop due to economic problems. Even during the worst of the pandemic, when healthcare facilities were swamped with COVID-19 patients, many surgeries that couldn't be performed as a result were merely postponed.
The company recently reported that procedure volume is recovering and will continue to do so, boosting its medtech business. Meanwhile, Johnson & Johnson will continue to innovate. The company boasts nearly four dozen programs in its phase 3 pipeline alone and many others in earlier stages of development.
The drugmaker routinely adds new products to its lineup or earns new indications for existing ones. That's one way the company's revenue and earnings can continue growing. Additionally, Johnson & Johnson is an excellent dividend stock. It's raised payouts for a staggering 60 consecutive years, which makes it a Dividend King. There aren't many companies with a better track record.
Reliable dividend-paying companies like Johnson & Johnson don't suspend or slash their dividends during challenging times. And the regular cash payments they offer can help smooth out market losses. Naturally, Johnson & Johnson faces some risks, most notably those related to the thousands of lawsuits linked to its talcum-based products, which allegedly caused cancer.
However, even a somewhat plausible worst-case scenario with the outcome of these lawsuits wouldn't be the end for Johnson & Johnson, although it would eat into its profits in the short term. Investors should look past this issue because of the company's robust balance sheet.
With a AAA credit rating from Standard & Poor's, the highest rating possible, Johnson & Johnson has the funds to take care of its obligations, be it during a recession or following an adverse outcome in a trial. In short, the drugmaker is a robust company that can help investors navigate any economic environment.
2. Apple
Apple has been one of Warren Buffett's favorite stocks for a while. It's not hard to understand why. The tech giant has a solid competitive edge that largely relies on the strength of its brand name, which is highly regarded. Customers are so loyal to Apple that even during difficult economic times such as last year, they continue to buy the company's nonessential and rather expensive products at an impressive rate, despite the presence of multiple cheaper alternatives.
That doesn't mean Apple is completely immune to economic challenges. The company's net sales in the first quarter of its fiscal year 2023 (ended on Dec. 31) decreased by 5.47% year over year to $117.2 billion. Apple's diluted earnings per share decreased to $1.88, down from $2.10. Still, Apple's top line increased for most of last year until the December quarter.
And at any rate, generating more than $100 billion worth of sales, mainly from high-end products is nothing to sneeze at. All those sales have led to another exciting development for Apple: The company now has an installed base of more than 2 billion devices worldwide.
This represents the future for Apple as it will seek to develop novel ways to monetize this massive customer base. It already does so through its high-margin services segment. And the company is constantly looking for new growth avenues, including within the healthcare sector. Given Apple's knack for innovation, we can confidently expect it to develop newer and better ways to serve its clients and generate even higher profits.
With a solid business, strong moat, and attractive long-term opportunities to monetize its massive userbase, Apple is an excellent company to help investors weather tough economic challenges.
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.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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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With that said, here are two stocks, some of whose shares are owned by Warren Buffett's Berkshire Hathaway, that are ideal to recession-proof any portfolio: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Customers are so loyal to Apple that even during difficult economic times such as last year, they continue to buy the company's nonessential and rather expensive products at an impressive rate, despite the presence of multiple cheaper alternatives. Given Apple's knack for innovation, we can confidently expect it to develop newer and better ways to serve its clients and generate even higher profits.
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With that said, here are two stocks, some of whose shares are owned by Warren Buffett's Berkshire Hathaway, that are ideal to recession-proof any portfolio: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Similarly, Johnson & Johnson's portfolio of medical devices in eye care, surgery, and orthopedics meets a critical need that doesn't simply stop due to economic problems. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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With that said, here are two stocks, some of whose shares are owned by Warren Buffett's Berkshire Hathaway, that are ideal to recession-proof any portfolio: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson Johnson & Johnson is a major pharmaceutical and medical technology company that generates consistent revenue and profit. 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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With that said, here are two stocks, some of whose shares are owned by Warren Buffett's Berkshire Hathaway, that are ideal to recession-proof any portfolio: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson Johnson & Johnson is a major pharmaceutical and medical technology company that generates consistent revenue and profit. Meanwhile, Johnson & Johnson will continue to innovate.
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16939.0
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2023-03-01 00:00:00 UTC
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What Are Blue Chip Stocks? An Overview of Blue Chips
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AAPL
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https://www.nasdaq.com/articles/what-are-blue-chip-stocks-an-overview-of-blue-chips
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nan
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nan
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If you've been looking for smart investments to add to your portfolio, you may have come across the term "blue-chip stocks." Blue-chip stocks are renowned for being reliable investments and can offer numerous advantages.
This article will give you a comprehensive overview of the answer to the question, "What are blue chip stocks?" When you finish reading, you'll know what they are, where they come from and why they provide a safe investment option.
Overview of Blue-Chip Stocks
The term "blue chip" originated in 1923 with Oliver Gingold, who worked on Wall Street at Dow Jones & Co. He coined the term to describe stocks with high value and potential for long-term growth. Blue chips usually grow over time and outperform the market indices such as the S&P 500 or Dow Jones Industrial Average (DJIA). The term comes from poker, where the highest-value chips are blue, so a blue chip refers to some of the highest-quality stock on the market.
A blue-chip stock comes from a well-established company with consistently strong performance. These stocks have a long history of paying dividends and increasing their market share. Blue-chip stocks also tend to be resilient when markets take a dip. Since well-established and successful companies issue them, their prices tend to rise more slowly than other stocks, making them less likely to experience rapid drops during downturns. They have strong balance sheets and business models, making them one of the safest investments. By investing in blue chips, your investment is more likely to bring good returns and relatively low risk.
Blue chips tend to have higher dividend yields, which can provide more income without selling the stock. They also tend to be less risky because their performance is more predictable than other stocks. The downside is that a blue chip stock doesn't always outperform the market. You may miss out on potential returns if you don't diversify your portfolio with other investments.
Characteristics of Blue-Chip Stocks
Blue-chip stocks are those of large, well-established and financially sound companies. These companies have operated for many years. Due to their stable history and outlook, their stocks offer investors a steady stream of dividend income and capital appreciation. These stocks usually have a track record of raising dividends over time and have a reputation for stability in the market.
Blue-chip stocks are often less volatile than other types of stocks, which makes them attractive if you're a conservative investor seeking low-risk investments. Here are some critical characteristics of blue-chip stocks:
Reputation: Blue-chip stocks are associated with more established companies with a long history of success.
Financials: These stocks typically have strong balance sheets, consistent revenues and healthy cash flows.
Stability: Since they're associated with larger companies with long-standing operating histories, blue chips are more insulated from sudden market shifts. Blue chips are also less volatile due to their diversification across different industries and sectors, which makes them an appealing choice if you want steady returns.
High dividend yields: Blue-chip stocks usually offer higher dividend yields than other investments. The companies behind these high-yield blue chips have established dividend policies where they can provide attractive returns to their shareholders.
Reasons to Invest in Blue-Chip Stocks
Blue-chip stocks can offer you numerous advantages. They are some of the most popular investments because they provide a reliable and safe option. Here are five reasons to invest in blue-chip stocks.
Reason 1: Diversification
Investing in blue chips can provide diversification for your portfolio. They tend to have lower volatility than other types of stocks. You're less likely to experience significant losses if one stock performs poorly. Because the companies behind these stocks tend to operate in different sectors and industries, you can diversify further by investing in blue chips across various industries.
Reason 2: Income
Blue-chip stocks usually offer higher dividend yields than other stocks, making them a solid choice if you want regular income from your portfolio. These companies have strong financials and a record of paying dividends with good yields. They're likely to continue to deliver steady dividends over time.
Reason 3: Stability
Companies behind blue-chip stocks have a long operating history and strong financials, making them reliable investments over the long term. Since blue-chip stocks tend to be less volatile than other investments, they're more likely to provide steady returns. Investing in blue chips at a low stock price can offer you a prime opportunity for capital appreciation. Remember, while these stocks are generally more stable, their share prices still fluctuate and may even dip below their 52-week lows.
Reason 4: Recession Protection
Blue-chip stocks are often recession-resistant. These stocks generate strong balance sheets, steady revenues and healthy cash flows. They can provide a buffer against economic downturns because they're more insulated from sudden market shifts.
Reason 5: High Liquidity
Many buyers and sellers of blue-chip stocks make them easy to buy, sell or trade quickly. If needed, you can easily access your capital because more buyers and sellers provide more liquidity to the market.
Reason 6: Valuation
Blue-chip stocks may not experience the same type of volatility as other stocks, but they usually have high valuations and are relatively expensive compared to other equities. They have strong fundamentals and consistent track records, making them popular investments.
Reason 7: Tax Advantages
Investing in blue chips can also offer several tax advantages, depending on your circumstances. If you reinvest your dividends in more shares of the same stock (known as "dividend reinvestment"), this may help you reduce your taxes. Consult with a tax professional to see if investing in blue chips can provide you with any tax advantages.
Examples of Blue-Chip Stocks
Blue-chip stocks can come from various industries, some of the most common being banks, technology and energy. Here is a list of blue-chip stocks, along with their key characteristics:
Apple Inc. (NYSE: AAPL): This tech giant is one of the most well-known companies in the world. It has delivered steady returns. Apple's long track record in the tech space and its reputation as an innovator makes it a popular choice.
Microsoft Co. (NYSE: MSFT): Microsoft is one of the largest tech companies in the world. Its stock has seen significant growth over the past decade. As an industry leader, this blue-chip stock can offer you high stability.
Johnson & Johnson (NYSE: JNJ): The pharmaceutical company has existed for over 100 years. It shows consistent returns and dividends. Johnson & Johnson makes a great choice if you're looking for income from your portfolio.
Exxon Mobil Co. (NYSE: XOM): Exxon Mobil Co. is the largest publicly traded oil and gas company in the United States and the fourth largest in the world.
Walmart Inc. (NYSE: WMT): Walmart is one of the world's largest retailers, offering competitive prices on everyday items. Its stock has been relatively stable.
Consider Investing in Blue-Chip Funds
If you want a diversified portfolio, consider investing in blue-chip funds. These mutual and exchange-traded funds (ETFs) invest primarily in blue-chip stocks. Investing in a blue-chip fund allows you to diversify your portfolio without buying individual stocks.
The benefits of investing in a blue-chip fund include:
Low management costs: The administrative costs of an ETF are typically lower due to passive management.
High liquidity: Blue-chip funds tend to have high liquidity because they contain easily traded stocks, which means you can access your capital quickly if needed.
Stability: Because these funds focus on large, established companies, they tend to be less volatile than other investments. They can offer you steady returns and a way to reduce portfolio risk.
Diversification: These funds offer you exposure to different industries and sectors. They can help you spread out your investments among the most reliable companies in the world.
Investing in blue-chip funds can be a great option if you want reliable returns with minimal risk. It can also give you access to some of the biggest and most well-known companies.
The Bottom Line on Blue Chip Stocks
Blue-chip stocks are an appealing option if you're looking for a long-term, low-risk approach to investing. They offer a variety of advantages, such as consistency in returns, steady income, high liquidity, low risk and recession protection.
Investing in blue-chip funds allows you access to professional advice and diversification across companies and industries. Investing in blue chips can bring you peace of mind. You'll know your portfolio is in the hands of some of the most reliable companies in the world.
FAQs
After discovering the answer to the question "What is a blue chip stock?" and how to invest in blue-chip stocks, you may have further questions. Here are answers to some of the most frequently asked questions about these types of stocks.
What are considered blue chip stocks?
Blue-chip stocks are shares of large, well-established companies and are proven reliable investments. The best blue-chip stocks on MarketBeat offer numerous advantages, such as consistent returns, steady income, high liquidity and minimal risk.
Is Apple a blue-chip stock?
Yes, Apple is a blue-chip stock. It is one of the world's largest and most well-known companies, offering reliable returns and dividend yields. As a leader in the tech industry, investing in Apple can provide you with a high level of stability.
How do you know if a stock is a blue chip?
To determine if a stock is a blue chip, look at its financials and track record, including whether it has a large market capitalization (at least $10 billion). It should also have strong balance sheets, high liquidity and healthy dividend yields. Look for companies that have consistently performed well and are leaders in their respective industries.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here is a list of blue-chip stocks, along with their key characteristics: Apple Inc. (NYSE: AAPL): This tech giant is one of the most well-known companies in the world. Overview of Blue-Chip Stocks The term "blue chip" originated in 1923 with Oliver Gingold, who worked on Wall Street at Dow Jones & Co. Since well-established and successful companies issue them, their prices tend to rise more slowly than other stocks, making them less likely to experience rapid drops during downturns.
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Here is a list of blue-chip stocks, along with their key characteristics: Apple Inc. (NYSE: AAPL): This tech giant is one of the most well-known companies in the world. Financials: These stocks typically have strong balance sheets, consistent revenues and healthy cash flows. Reason 3: Stability Companies behind blue-chip stocks have a long operating history and strong financials, making them reliable investments over the long term.
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Here is a list of blue-chip stocks, along with their key characteristics: Apple Inc. (NYSE: AAPL): This tech giant is one of the most well-known companies in the world. Characteristics of Blue-Chip Stocks Blue-chip stocks are those of large, well-established and financially sound companies. Reasons to Invest in Blue-Chip Stocks Blue-chip stocks can offer you numerous advantages.
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Here is a list of blue-chip stocks, along with their key characteristics: Apple Inc. (NYSE: AAPL): This tech giant is one of the most well-known companies in the world. Here are five reasons to invest in blue-chip stocks. Since blue-chip stocks tend to be less volatile than other investments, they're more likely to provide steady returns.
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2023-03-01 00:00:00 UTC
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Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-motley-fool-100-index-etf-tmfc-be-on-your-investing-radar-5
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
The fund is sponsored by Motley Fool Asset Management. It has amassed assets over $381.52 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
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 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.25%.
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 42.90% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.06% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG).
The top 10 holdings account for about 53.79% of total assets under management.
Performance and Risk
TMFC seeks to match the performance of the MOTLEY FOOL 100 INDEX before fees and expenses. The Motley Fool 100 Index is an index of US stocks, recommended by The Motley Fool, LLC (TMF) analysts, either in the Motley Fool IQ analyst opinion database or TMF research publications. From this recommendation pool, the index chooses the 100 largest US companies by market cap and weights them according to market capitalization. The index undergoes quarterly reconstitution.
The ETF has gained about 8.01% so far this year and is down about -15.24% in the last one year (as of 03/01/2023). In the past 52-week period, it has traded between $29.82 and $41.87.
The ETF has a beta of 1.07 and standard deviation of 27.93% for the trailing three-year period. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Motley Fool 100 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, TMFC is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $74.78 billion in assets, Invesco QQQ has $156.13 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Motley Fool 100 Index ETF (TMFC): ETF Research Reports
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.06% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $381.52 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.06% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.06% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Alternatives Motley Fool 100 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 13.06% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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2023-03-01 00:00:00 UTC
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2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying
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https://www.nasdaq.com/articles/2-faang-stocks-billionaires-are-selling-in-droves-and-1-they-cant-stop-buying
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It's been a busy four weeks for Wall Street. In that time, investors have digested hundreds of meaningful earnings reports, another month's worth of economic data, and a Federal Open Market Committee meeting. But what might have flown under the radar was the deadline for institutional money managers to file Form 13Fs with the Securities and Exchange Commission (SEC) on Feb. 14.
A 13F provides investors with a snapshot of what Wall Street's most prominent money managers were buying and selling in the latest quarter. Even though 13Fs are often more than six weeks old by the time they're filed with the SEC, they can provide insight as to what stocks and trends have the attention of top-tier money managers.
The true eye-opener of the latest round of 13F filings is how billionaire money managers view the FAANG stocks.
Image source: Getty Images.
When I say "FAANG," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META);
Apple (NASDAQ: AAPL);
Amazon (NASDAQ: AMZN);
Netflix (NASDAQ: NFLX); and
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
For more than a decade, these five stocks have been market leaders and dominant forces within their respective industries. When Wall Street hit a rough patch and needed some form of leadership, it's been the FAANG stocks that big-time money managers have turned to. But that wasn't necessarily the case during the fourth quarter.
Based on 13Fs from billionaire fund managers, two FAANG stocks were heavily sold. By comparison, just one stood out as a clear-cut buy.
FAANG stock No. 1 billionaires are selling in droves: Alphabet
The first of the FAANGs that had billionaire investors heading for the exit during the fourth quarter is Alphabet, the parent company of internet search engine Google, autonomous vehicle company Waymo, and streaming content provider YouTube.
Billionaires Jeff Yass of Susquehanna International, Chase Coleman of Tiger Global Management, and Jim Simons of Renaissance Technologies were all big sellers. Respectively, these billionaires oversaw the sale of 4.52 million shares, 1.75 million shares, and 0.99 million shares of Alphabet Class A (GOOGL) stock in the fourth quarter.
If you're looking for a reason to be pessimistic about Alphabet, the state of the advertising market is where you'll find the rationale. It's not uncommon for advertisers to pare back their spending when the likelihood of a U.S. or global recession rises. Most of Alphabet's revenue comes from advertising.
A more recent headwind for Alphabet is the rapid success of artificial intelligence (AI) chatbot ChatGPT. OpenAI, which developed ChatGPT, helped Microsoft to incorporate AI into its search engine, Bing. The overwhelming buzz surrounding AI and its future potential has some folks wondering if Google will cede search engine market share to Bing.
Despite these near-term issues, little has changed for Alphabet and its long-term growth strategy. Google remains exceptionally dominant, with a nearly 93% share of worldwide internet search as of January 2023. Since recessions don't last very long, Alphabet should be able to command superior ad-pricing power more often than not.
Other aspects of Alphabet's businesses are growing nicely as well. YouTube has become the second-most visited social site on the planet. Furthermore, viewers are flocking to its short-form videos known as YouTube Shorts. In a nine-month stretch, the number of daily views for Shorts grew from about 30 billion to more than 50 billion. That's a huge advertising opportunity for YouTube and parent company Alphabet.
It's also worth noting that the tech titan is cheaper now that at any point since going public in 2004. Despite consistently growing at a double-digit rate during bull markets, Alphabet stock can be scooped up for less than 15 times forward-year earnings. Chances are that Yass, Coleman, and Simons will regret selling shares of Alphabet.
FAANG stock No. 2 billionaires are selling in droves: Meta Platforms
The second FAANG stock billionaires actively sold during the fourth quarter is social media giant Meta Platforms. Meta is the company behind Facebook, Facebook Messenger, WhatsApp, and Instagram.
In particular, five billionaires couldn't press the sell button fast enough. This includes Ole Andreas Halvorsen of Viking Global Investors, Stephen Mandel of Lone Pine Capital, Ken Fisher of Fisher Asset Management, and John Overdeck and David Siegel of Two Sigma Investments. In order, these billionaires respectively sold around 2.96 million shares, 2.91 million shares, 2.69 million shares, and 1.16 million shares of Meta.
Not to sound like a broken record, but the weak advertising industry is a big reason why billionaires sold Meta in droves last quarter. Only $3 billion of the company's $116.6 billion in full-year sales didn't come from advertising in 2022. With no clear sign that the U.S. will avoid a recession, these billionaires appear to be taking the safe route by avoiding an ad-driven operating model.
The other big headwind for Meta Platforms has been CEO Mark Zuckerberg's aggressive spending on metaverse initiatives. Last year, Reality Labs' operating loss grew to $13.7 billion, and amounts to nearly $24 billion over a two-year stretch. With ad spending down, investors have been less tolerant of Zuckerberg's willingness to spend on initiatives that are years away from making a meaningful impact on the company's bottom line.
Nevertheless, Meta's social media assets continue to deliver. Even in a down environment for advertising, the company's family of apps recognized a $42.7 billion operating profit in 2022. Facebook, WhatsApp, Instagram, and Facebook Messenger are consistently among the most downloaded apps worldwide. Advertisers understand that Meta's social media assets give them the best chance to reach consumers.
Meta can also turn heads with a little lever-pulling. The company's latest operating expense forecast for 2023 came in $5 billion below the midpoint of its previous guidance. Likewise, it announced it would repurchase up to $40 billion worth of shares.
Meta's ad struggles aren't going to disappear overnight. However, it's relatively inexpensive at less than 15 times Wall Street's forward-year consensus profit forecast.
Image source: Amazon.
The only FAANG stock billionaires are comfortable buying right now: Amazon
But not all billionaires were avoiding the FAANG stocks during the fourth quarter. Though there were a few sellers, billionaire investors were overwhelmingly buyers of e-commerce stock Amazon.
All told, eight billionaires piled in, including Jim Simons of Renaissance Technologies, Chase Coleman of Tiger Global, Steven Cohen of Point72 Asset Management, Ole Andreas Halvorsen of Viking Global, Stephen Mandel of Lone Pine, John Overdeck and David Siegel of Two Sigma, and Israel Englander of Millennium Management. In order, these billionaires respectively bought approximately 8.2 million shares, 5.91 million shares, 3.21 million shares, 3.2 million shares, 2.96 million shares, 2.76 million shares, and 2.7 million shares of Amazon.
This optimism is a bit surprising given the weakening state of retail sales and the large percentage of revenue Amazon derives from its online marketplace. Nevertheless, these eight billionaires wisely recognize that e-commerce is a generally low-margin operating segment for the company. The divisions that provide Amazon with the lion's share of its cash flow are still growing by a double-digit percentage.
As an example, Amazon has been able to use its online retail sales dominance to get more than 200 million people worldwide to subscribe to Prime. Keep in mind this "200 million" figure is from Amazon as of April 2021. Retail sales steadily shifting to e-commerce, coupled with the company having the exclusive rights to Thursday Night Football, has assuredly sent this figure even higher. Excluding currency movements, subscription revenue is growing in the mid-teens on a year-over-year basis.
Even more important than subscription services is cloud infrastructure service segment Amazon Web Services (AWS). AWS recently surpassed an $85 billion annual sales run rate and is responsible for the bulk of Amazon's operating income, despite accounting for only around one-sixth of the company's net revenue. Enterprise cloud spending is still in its early innings, which gives AWS plenty of runway to significantly grow Amazon's operating cash flow.
While it could be difficult for some investors to look past short-term weakness in Amazon's top revenue-generating segment (online sales), the company's cash-flow needle is pointing decisively higher. Based on future cash flow, Amazon is cheaper now than it's ever been.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META); Apple (NASDAQ: AAPL); Amazon (NASDAQ: AMZN); Netflix (NASDAQ: NFLX); and Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Billionaires Jeff Yass of Susquehanna International, Chase Coleman of Tiger Global Management, and Jim Simons of Renaissance Technologies were all big sellers. AWS recently surpassed an $85 billion annual sales run rate and is responsible for the bulk of Amazon's operating income, despite accounting for only around one-sixth of the company's net revenue.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META); Apple (NASDAQ: AAPL); Amazon (NASDAQ: AMZN); Netflix (NASDAQ: NFLX); and Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). This includes Ole Andreas Halvorsen of Viking Global Investors, Stephen Mandel of Lone Pine Capital, Ken Fisher of Fisher Asset Management, and John Overdeck and David Siegel of Two Sigma Investments. All told, eight billionaires piled in, including Jim Simons of Renaissance Technologies, Chase Coleman of Tiger Global, Steven Cohen of Point72 Asset Management, Ole Andreas Halvorsen of Viking Global, Stephen Mandel of Lone Pine, John Overdeck and David Siegel of Two Sigma, and Israel Englander of Millennium Management.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META); Apple (NASDAQ: AAPL); Amazon (NASDAQ: AMZN); Netflix (NASDAQ: NFLX); and Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Respectively, these billionaires oversaw the sale of 4.52 million shares, 1.75 million shares, and 0.99 million shares of Alphabet Class A (GOOGL) stock in the fourth quarter. In order, these billionaires respectively sold around 2.96 million shares, 2.91 million shares, 2.69 million shares, and 1.16 million shares of Meta.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META); Apple (NASDAQ: AAPL); Amazon (NASDAQ: AMZN); Netflix (NASDAQ: NFLX); and Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Most of Alphabet's revenue comes from advertising. 2 billionaires are selling in droves: Meta Platforms The second FAANG stock billionaires actively sold during the fourth quarter is social media giant Meta Platforms.
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2023-03-01 00:00:00 UTC
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2 Warren Buffett Stocks to Hold Forever
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-hold-forever
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When Warren Buffett speaks, people tend to listen. And for good reason. Through his company, Berkshire Hathaway (NYSE: BRK.B), Buffett has had investing success not replicated by many. Luckily for investors, Berkshire Hathaway's holdings are readily available, so you can get insight into what Buffett and his team invest in.
If you're looking for two Buffett stocks to buy and hold forever, look no further.
Visa
When it comes to payment processing, it's basically a duopoly between Visa (NYSE: V) and Mastercard. Still, there's a sizable gap between the two regarding reach. With over 80 million merchant locations worldwide accepting Visa, you'd be hard-pressed to find a place that accepts cards but not Visa.
The competitive moat Visa has been able to form with its merchant reach is one of the main things that attracts Buffett to the company. It's also the reason Visa is primed for long-term success. In the past three years, the company has added 19 million merchants, signaling that it's growing at a pace that will be hard for competitors to keep up with or reach anytime soon.
Visa's core business model is simple: When somebody uses a Visa card to pay for something or uses Visa infrastructure to accept card payments, the company takes a percentage. So the more merchants accepting Visa, the merrier. Since higher inflation means costlier bills, Visa has been on the good side of the economy in the past year. Add in the billions the company receives from licensing and account holder services, and Visa continues to be a cash cow.
In its fiscal 2022 (ended Sept. 30), Visa had more than $29.3 billion in revenue. That's up from $24.1 billion in 2021 and $21.8 billion in 2020. Maybe more important is the fact that Visa operates with high margins. Most of the investments to expand its network have been in place for many years, so it's not costing the company much to generate current revenue.
With margins hovering in the 80% range, there are very few companies in any industry that can compare.
Data by YCharts.
Apple
You don't become the most valuable public company in the world by accident. Through some of the most innovative products of our time, Apple (NASDAQ: AAPL) has built a brand and brand loyalty that makes it the cream of the crop, not in just the tech world, but arguably the business world as a whole.
Apple is by far Berkshire Hathaway's largest holding in its publicly traded portfolio, accounting for over 41% of it. It also bought an additional 334,000 shares of Apple in its fiscal year 2022 fourth quarter. That should tell you how much faith Buffett has in the company.
Apple's fiscal 2023 first-quarter revenue declined by 5% year over year, but it still stands at an admirable $117.2 billion. For perspective, that's more than the full 2022 revenues of Nike, Salesforce, and Capital One combined. Still, it's a bit unusual to see revenue decline from Apple.
This shouldn't worry long-term investors, though. Apple's revenue slide is largely due to a drop in iPhone sales (around 56% of its revenue), bringing in roughly $5.85 billion less than in FY22 Q1. Smartphone sales have plummeted across the board, so this isn't just an Apple and iPhone issue. And it's not likely to be a long-term problem.
Revenue aside, what should excite long-term Apple investors is that its active devices crossed the 2 billion mark. That's 500 million more than at the start of 2020. As more people use Apple devices -- whether it's the iPhone, iPad, or Mac -- the more they use Apple services. Apple's service segment set a revenue record in its last quarter, bringing in $20.8 billion (up $1.3 billion year over year).
Apple's foreseeable growth will likely be in the hands of its services segment, but that's a good thing. Apple has been slowly easing into both financial and health services, and even a modest amount of success in those industries could pay off big time for the company. The stock isn't "cheap" right now per se, but it's still a great buy and hold at current prices.
10 stocks we like better than Visa
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Visa wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Nike, Salesforce, and Visa. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike, 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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Through some of the most innovative products of our time, Apple (NASDAQ: AAPL) has built a brand and brand loyalty that makes it the cream of the crop, not in just the tech world, but arguably the business world as a whole. In the past three years, the company has added 19 million merchants, signaling that it's growing at a pace that will be hard for competitors to keep up with or reach anytime soon. Add in the billions the company receives from licensing and account holder services, and Visa continues to be a cash cow.
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Through some of the most innovative products of our time, Apple (NASDAQ: AAPL) has built a brand and brand loyalty that makes it the cream of the crop, not in just the tech world, but arguably the business world as a whole. Through his company, Berkshire Hathaway (NYSE: BRK.B), Buffett has had investing success not replicated by many. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Nike, Salesforce, and Visa.
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Through some of the most innovative products of our time, Apple (NASDAQ: AAPL) has built a brand and brand loyalty that makes it the cream of the crop, not in just the tech world, but arguably the business world as a whole. Visa's core business model is simple: When somebody uses a Visa card to pay for something or uses Visa infrastructure to accept card payments, the company takes a percentage. Apple's service segment set a revenue record in its last quarter, bringing in $20.8 billion (up $1.3 billion year over year).
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Through some of the most innovative products of our time, Apple (NASDAQ: AAPL) has built a brand and brand loyalty that makes it the cream of the crop, not in just the tech world, but arguably the business world as a whole. Through his company, Berkshire Hathaway (NYSE: BRK.B), Buffett has had investing success not replicated by many. In the past three years, the company has added 19 million merchants, signaling that it's growing at a pace that will be hard for competitors to keep up with or reach anytime soon.
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16943.0
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2023-03-01 00:00:00 UTC
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India state launches probe into fire at Apple supplier Foxlink
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https://www.nasdaq.com/articles/india-state-launches-probe-into-fire-at-apple-supplier-foxlink
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By Praveen Paramasivam
CHITTOOR, India, March 1 (Reuters) - India's Andhra Pradesh state has launched an investigation into what caused a fire at the factory of Apple AAPL.O supplier Foxlink that led to the collapse of part of the building and disrupted production, a government official said on Wednesday.
Foxlink's 2392.TW plant, which makes charging cables for iPhones in the southern state, was engulfed in a massive fire on Monday, but there were no casualties. The fire department has said much of the fire safety equipment at the factory was not functional.
The factories department, which is responsible for ensuring the safety and welfare of workers in the state, has launched an investigation.
The department is "investigating the fire accident at Foxlink factory and, over the next couple of days, is looking to probe how the fire happened," Ramakrishna Reddy, deputy chief inspector of factories, told Reuters.
Reddy added that his initial assessment was there were no immediate worker safety concerns as only a few employees had to be taken to hospital for first-aid after they reported dizziness following the incident.
Foxlink on Wednesday said it is investigating the cause of the fire and "working hard to resume production".
The incident has raised supply chain concerns for the U.S. tech giant Apple, given Foxlink was a "key supplier" in India, Reuters has reported.
(Reporting by Praveen Paramsivam; Writing by Arpan Chaturvedi; Editing by Aditya Kalra and Kim Coghill)
((Arpan.Chaturvedi@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Praveen Paramasivam CHITTOOR, India, March 1 (Reuters) - India's Andhra Pradesh state has launched an investigation into what caused a fire at the factory of Apple AAPL.O supplier Foxlink that led to the collapse of part of the building and disrupted production, a government official said on Wednesday. Foxlink's 2392.TW plant, which makes charging cables for iPhones in the southern state, was engulfed in a massive fire on Monday, but there were no casualties. Reddy added that his initial assessment was there were no immediate worker safety concerns as only a few employees had to be taken to hospital for first-aid after they reported dizziness following the incident.
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By Praveen Paramasivam CHITTOOR, India, March 1 (Reuters) - India's Andhra Pradesh state has launched an investigation into what caused a fire at the factory of Apple AAPL.O supplier Foxlink that led to the collapse of part of the building and disrupted production, a government official said on Wednesday. Reddy added that his initial assessment was there were no immediate worker safety concerns as only a few employees had to be taken to hospital for first-aid after they reported dizziness following the incident. The incident has raised supply chain concerns for the U.S. tech giant Apple, given Foxlink was a "key supplier" in India, Reuters has reported.
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By Praveen Paramasivam CHITTOOR, India, March 1 (Reuters) - India's Andhra Pradesh state has launched an investigation into what caused a fire at the factory of Apple AAPL.O supplier Foxlink that led to the collapse of part of the building and disrupted production, a government official said on Wednesday. The fire department has said much of the fire safety equipment at the factory was not functional. The department is "investigating the fire accident at Foxlink factory and, over the next couple of days, is looking to probe how the fire happened," Ramakrishna Reddy, deputy chief inspector of factories, told Reuters.
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By Praveen Paramasivam CHITTOOR, India, March 1 (Reuters) - India's Andhra Pradesh state has launched an investigation into what caused a fire at the factory of Apple AAPL.O supplier Foxlink that led to the collapse of part of the building and disrupted production, a government official said on Wednesday. The fire department has said much of the fire safety equipment at the factory was not functional. The factories department, which is responsible for ensuring the safety and welfare of workers in the state, has launched an investigation.
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16944.0
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2023-03-01 00:00:00 UTC
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5 Key Takeaways From Warren Buffett's 2023 Annual Letter
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AAPL
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https://www.nasdaq.com/articles/5-key-takeaways-from-warren-buffetts-2023-annual-letter
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nan
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nan
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Warren Buffett recently released his 2023 letter to Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders, and as usual, it was packed full of important lessons and takeaways. In this video, I review the five most important things investors should pay attention to.
*Stock prices used were the morning prices of Feb. 28, 2023. The video was published on Feb. 28, 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.
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. Matthew Frankel, CFP® has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. 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.
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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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Matthew Frankel, CFP® has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's.
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Matthew Frankel, CFP® has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple.
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10 stocks we like better than Berkshire Hathaway When our award-winning analyst team has a stock tip, it can pay to listen. 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. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's.
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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. Matthew Frankel, CFP® has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's.
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16945.0
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2023-03-01 00:00:00 UTC
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Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-etf-iwl-be-on-your-investing-radar-4
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $833.78 million, 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
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 30.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 28.37% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has added about 3.55% so far this year and is down about -9.43% in the last one year (as of 03/01/2023). In the past 52-week period, it has traded between $84.55 and $110.51.
The ETF has a beta of 0.99 and standard deviation of 25.12% for the trailing three-year period, making it a medium risk choice in the space. With about 196 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 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, IWL 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 $297.32 billion in assets, SPDR S&P 500 ETF has $361.66 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 Russell Top 200 ETF (IWL): 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 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 ETF (IWL): 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 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 ETF (IWL): 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 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report iShares Russell Top 200 ETF (IWL): 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 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
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16946.0
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2023-03-01 00:00:00 UTC
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The Best FAANG Stocks to Buy Now? Our 3 Top Picks
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AAPL
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https://www.nasdaq.com/articles/the-best-faang-stocks-to-buy-now-our-3-top-picks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In recent years, the tech industry has been dominated by five companies collectively known as FAANG stocks.
These companies include some of the most impressive U.S. tech players. Many on this list have seen multi-decade growth rates smaller tech companies can only dream of. This impressive growth has led to valuation surges, which ultimately peaked around the pandemic.
However, with valuations on the decline, many of these top FAANG stocks have sold off hard. While these have typically been the go-to names in the tech sector in times of previous turmoil, it remains to be seen if these companies can continue their long-term trends.
With that said, I think certain FAANG stocks now provide the right mix of growth and value. Here are our three top picks for investors looking for a place to hide in the tech sector right now.
GOOG Alphabet $91.12
META Meta Platforms $175.35
AAPL Apple $148.72
Alphabet (GOOG)
Source: rvlsoft / Shutterstock.com
Although Alphabet’s (NASDAQ:GOOG) 20-for-1 stock split has already occurred, its significance remains relevant.
As the market experiences a prolonged bearish period, investors are seeking secure investment opportunities to allocate their funds. Consequently, Alphabet remains a reliable haven for growth-oriented investors to keep an eye on.
Firstly, Alphabet’s recent 2-for-1 stock split has made the stock more affordable, potentially boosting demand for the shares. This change has reduced the stock’s price, making it accessible to more investors.
Google has successfully navigated significant economic challenges, such as the dot com bubble in 2000 and the financial crisis in 2008, and emerged even more vital. The Google cloud and search engine are expected to contribute significantly in 2023.
The company’s balance sheet is robust, with solid cash flows. At worst, 2023 is expected to be a relatively neutral year for Alphabet, but significant investment opportunities may still be available at a low price point below $100.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Investors who want to invest in social media still make Meta Platforms (NASDAQ:META) as their top choice.
Since the beginning of social media, the company has been a significant player in the industry and has created a new sector, formerly known as Facebook.
Meta experienced a terrible year due to a decline in advertising spending and increased costs related to its Reality Labs metaverse division. As a result, the company’s free cash flow and earnings suffered, and its double-digit revenue growth stopped.
Although there may still be economic uncertainty in early 2023 that could affect advertising spending, Meta has everything it needs to stabilize and deliver positive results for its investors again.
Meta’s investments in the Reality Labs business have caused unease among investors due to the significant losses the segment has incurred.
In November 2022, there was a significant increase of almost 27% in Meta’s stock price following the announcement of a cost-cutting plan that involved the layoff of 11,000 employees. The market responded positively, as investors saw the potential for the company to recover its losses, particularly with the phasing out of certain offices and products.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Over the last decade, Apple’s (NASDAQ:AAPL) stock has seen impressive annual growth of 26.75%, on average. This exceptional growth is typically the result of reinvesting profits into the company. However, surprisingly, Apple has also regularly provided dividends to its investors during this time.
Like numerous companies sensitive to economic changes, Apple has faced challenges due to supply chain issues and a declining macroeconomic climate. However, investors may still wonder if it’s an excellent time to purchase AAPL stock. As the iPhone market matures, there’s speculation among investors about the potential future growth catalysts for Apple stock.
Apple didn’t meet analyst expectations when it announced its fiscal 2023 first-quarter results. The company reported earnings per share of $1.88, whereas analysts had anticipated $1.94 per share. Apple’s holiday quarter revenue declined by 5.5% compared to the previous year, amounting to $117.15 billion. This is the first year-over-year sales drop since 2019 and the most significant quarterly revenue decrease since September 2016.
Despite the challenges, Apple remains the market leader in the smartphone industry, and the services segment is projected to be a significant driver of future growth.
Even though the company may experience reduced growth in some product categories during an economic downturn, it’s improbable that it will lose its market share because of its strong brand and popularity with younger demographics.
On the date of publication, Chris MacDonald has a position in AAPL and META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post The Best FAANG Stocks to Buy Now? Our 3 Top Picks 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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GOOG Alphabet $91.12 META Meta Platforms $175.35 AAPL Apple $148.72 Alphabet (GOOG) Source: rvlsoft / Shutterstock.com Although Alphabet’s (NASDAQ:GOOG) 20-for-1 stock split has already occurred, its significance remains relevant. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Over the last decade, Apple’s (NASDAQ:AAPL) stock has seen impressive annual growth of 26.75%, on average. However, investors may still wonder if it’s an excellent time to purchase AAPL stock.
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GOOG Alphabet $91.12 META Meta Platforms $175.35 AAPL Apple $148.72 Alphabet (GOOG) Source: rvlsoft / Shutterstock.com Although Alphabet’s (NASDAQ:GOOG) 20-for-1 stock split has already occurred, its significance remains relevant. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Over the last decade, Apple’s (NASDAQ:AAPL) stock has seen impressive annual growth of 26.75%, on average. However, investors may still wonder if it’s an excellent time to purchase AAPL stock.
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GOOG Alphabet $91.12 META Meta Platforms $175.35 AAPL Apple $148.72 Alphabet (GOOG) Source: rvlsoft / Shutterstock.com Although Alphabet’s (NASDAQ:GOOG) 20-for-1 stock split has already occurred, its significance remains relevant. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Over the last decade, Apple’s (NASDAQ:AAPL) stock has seen impressive annual growth of 26.75%, on average. However, investors may still wonder if it’s an excellent time to purchase AAPL stock.
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GOOG Alphabet $91.12 META Meta Platforms $175.35 AAPL Apple $148.72 Alphabet (GOOG) Source: rvlsoft / Shutterstock.com Although Alphabet’s (NASDAQ:GOOG) 20-for-1 stock split has already occurred, its significance remains relevant. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Over the last decade, Apple’s (NASDAQ:AAPL) stock has seen impressive annual growth of 26.75%, on average. However, investors may still wonder if it’s an excellent time to purchase AAPL stock.
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16947.0
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2023-03-01 00:00:00 UTC
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Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-6
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Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $864.54 million, this makes it one of the larger ETFs in the World ETFs. CRBN is managed by Blackrock. Before fees and expenses, CRBN seeks to match the performance of the MSCI ACWI Low Carbon Target Index.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.20% for CRBN, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.87%.
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.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
So far this year, CRBN has gained about 4.17%, and is down about -8.52% in the last one year (as of 03/01/2023). During this past 52-week period, the fund has traded between $126.30 and $166.96.
CRBN has a beta of 0.94 and standard deviation of 23.41% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1360 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.98 billion in assets, iShares ESG Aware MSCI USA ETF has $19.32 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): 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 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): 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 MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014.
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16948.0
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2023-02-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Linde, Marsh & McLennan Companies, GSK and Expedia
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-linde-marsh-mclennan-companies-gsk-and-expedia
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nan
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For Immediate Release
Chicago, IL – February 28, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports from Apple, Linde and Marsh & McLennan
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Apple have roughly matched the broader market over the past year (-10.4% for Apple vs. -10.9% for the S&P 500 index), but handily outperformed the Zacks Tech sector (down - 19.8%).
The Zacks analyst covering Apple expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.
(You can read the full research report on Apple here >>>)
Linde shares have outperformed the Zacks Chemical - Diversified industry over the past year (+18.6% vs. +10.3%). The company’s wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, the cost of sales continues to increase, hurting the firm’s bottom line. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Marsh & McLennan shares have outperformed the Zacks Insurance - Brokerage industry over the past year (+4.3% vs. +3.6%). The company is well-poised to grow on the back of significant investments and acquisitions made within its operating units, the launch of new products and branching out into new businesses.
Its increased stake in Marsh India will further buoy growth. Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to revenue growth for a while. MMC had around $4.3 billion left under authorization as of Dec 31, 2022.
However, high operating costs might weigh on the margins. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.
(You can read the full research report on Marsh & McLennan here >>>)
Other noteworthy reports we are featuring today include GSK plc and Expedia Group, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Linde plc (LIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc.
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Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports from Apple, Linde and Marsh & McLennan The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc.
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16949.0
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2023-02-28 00:00:00 UTC
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3 Things About Garmin That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-garmin-that-smart-investors-know
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Garmin (NYSE: GRMN) just concluded an unusually weak fiscal year that saw sales drop while profit margins declined. The tech device giant was pressured by collapsing demand for its fitness products after soaring growth in earlier phases of the pandemic. Currency exchange rates and rising costs didn't help, either.
But smart investors know there's much more to this business than you might glean from simply relying on the last few quarters of results. Garmin has a proven ability to win market share across a wide array of tech niches. It's a highly profitable business, too, despite earnings pressures that will carry on into 2023.
Let's look at some standout reasons to like Garmin stock.
1. The business is diverse
While some tech device specialists are highly exposed to demand swings, Garmin isn't. Sure, in the last fiscal year, sales fell a brutal 28% in its segment that includes fitness trackers. That division grew 16% in the prior fiscal year.
But Garmin still managed essentially flat results in 2022 thanks to growth in other parts of its portfolio, particularly smartwatches. The company's marine and aviation segments provide solid protection against swift changes in consumer demand, too.
That's no fluke, as Garmin entered 2022 having boosted sales and earnings in each of the last six fiscal years. Investors prize that level of consistency, which is hard to find in the tech device industry.
2. The company is profitable
Garmin's 2022 marked a second straight year of falling profit margins. Operating income peaked at 25.2% of sales in 2020 before falling to 24.5% of sales in 2021 and 21.1% last year. Management is projecting another decline, with earnings dropping to roughly 20.3% of sales in 2023.
That slump looks much better with some context, though. Garmin entered this period with extremely high margins, for example, that rivaled Apple's (NASDAQ: AAPL) industry-leading result. And most tech companies, including Apple, have endured declines in this area due to currency-exchange shifts, slowing demand, and soaring costs.
GRMN Operating Margin (TTM) data by YCharts. TTM = trailing 12 months.
Against that backdrop, shareholders can be thrilled to see Garmin protecting most of its earnings power despite huge stresses on the business.
3. The stock is cheap
Garmin's valuation shift has made it an even more attractive stock for growth-focused investors. In retrospect, it was clearly overpriced in late 2021 when investors were paying 7 times annual sales for the business.
Wall Street seems to have overreacted in the opposite direction lately, though, with the price-to-sales ratio falling below 4 in early 2023. Apple is trading at over 6 times revenue.
Apple deserves a big premium for its wider sales base, cash holdings, and brand strength. But Garmin shares many of the same impressive characteristics that have made Apple such a reliable producer of market-beating shareholder returns.
Cautious investors might prefer to watch Garmin for a few more quarters for signs of a return to its prior path of rising profit margins and fast growth. You can pick up the stock at a compelling discount now, though, if you're willing to take on the risk of more volatility in the short term.
10 stocks we like better than Garmin
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 Garmin 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
Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple and Garmin. 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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Garmin entered this period with extremely high margins, for example, that rivaled Apple's (NASDAQ: AAPL) industry-leading result. Garmin (NYSE: GRMN) just concluded an unusually weak fiscal year that saw sales drop while profit margins declined. And most tech companies, including Apple, have endured declines in this area due to currency-exchange shifts, slowing demand, and soaring costs.
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Garmin entered this period with extremely high margins, for example, that rivaled Apple's (NASDAQ: AAPL) industry-leading result. Garmin (NYSE: GRMN) just concluded an unusually weak fiscal year that saw sales drop while profit margins declined. GRMN Operating Margin (TTM) data by YCharts.
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Garmin entered this period with extremely high margins, for example, that rivaled Apple's (NASDAQ: AAPL) industry-leading result. Garmin (NYSE: GRMN) just concluded an unusually weak fiscal year that saw sales drop while profit margins declined. The company is profitable Garmin's 2022 marked a second straight year of falling profit margins.
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Garmin entered this period with extremely high margins, for example, that rivaled Apple's (NASDAQ: AAPL) industry-leading result. Garmin (NYSE: GRMN) just concluded an unusually weak fiscal year that saw sales drop while profit margins declined. It's a highly profitable business, too, despite earnings pressures that will carry on into 2023.
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16950.0
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2023-02-28 00:00:00 UTC
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Apple supplier Foxlink says working to resume production after India fire
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxlink-says-working-to-resume-production-after-india-fire-0
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Adds stock reaction
TAIPEI, March 1 (Reuters) - Taiwanese Apple Inc AAPL.O supplier Foxlink 2392.TW said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables.
The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week.
Foxlink, in a statement to the Taiwan stock exchange, said it is investigating the cause of the fire and "working hard to resume production".
In an earlier statement late on Tuesday, the company said that the site had been blocked off by the fire department and that four production lines were known to be damaged.
As the plant, equipment and inventory are covered by insurance, the fire has not yet had a significant impact on the company's finances and business, it added.
The company will coordinate with customers and suppliers to "discuss solutions for the production capacity affected before resuming work".
It did not elaborate.
The company's stock was down more than 2% in early morning trade Wednesday, compared to a 0.5% fall for the broader market .TWII.
(Reporting by Ben Blanchard and Yimou Lee; Editing by Shri Navaratnam and Christopher Cushing)
((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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Adds stock reaction TAIPEI, March 1 (Reuters) - Taiwanese Apple Inc AAPL.O supplier Foxlink 2392.TW said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables. The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week. In an earlier statement late on Tuesday, the company said that the site had been blocked off by the fire department and that four production lines were known to be damaged.
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Adds stock reaction TAIPEI, March 1 (Reuters) - Taiwanese Apple Inc AAPL.O supplier Foxlink 2392.TW said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables. The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week. Foxlink, in a statement to the Taiwan stock exchange, said it is investigating the cause of the fire and "working hard to resume production".
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Adds stock reaction TAIPEI, March 1 (Reuters) - Taiwanese Apple Inc AAPL.O supplier Foxlink 2392.TW said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables. Foxlink, in a statement to the Taiwan stock exchange, said it is investigating the cause of the fire and "working hard to resume production". It did not elaborate.
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Adds stock reaction TAIPEI, March 1 (Reuters) - Taiwanese Apple Inc AAPL.O supplier Foxlink 2392.TW said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables. The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week. Foxlink, in a statement to the Taiwan stock exchange, said it is investigating the cause of the fire and "working hard to resume production".
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16951.0
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2023-02-28 00:00:00 UTC
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Why Globalstar Stock Triumphed on Tuesday
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AAPL
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https://www.nasdaq.com/articles/why-globalstar-stock-triumphed-on-tuesday
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nan
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What happened
On Tuesday, the day before it was slated to publish its latest set of quarterly earnings, Globalstar (NYSEMKT: GSAT) enjoyed a more than 10% lift in its share price. It wasn't only optimism about said earnings -- the company reported a big prepayment from a top business partner that may or may not be a famous tech company.
So what
In a regulatory filing, Globalstar disclosed that it and this partner, which it did not name, on Monday agreed to amend their existing cooperation agreement. One result of the amendment is that the partner will hand over $252 million as a prepayment to Globalstar for the provision of satellite services.
Globalstar said in the filing that it will use these funds for current and future costs related to its business.
This partner is widely speculated to be tech sector titan Apple, which offers an Emergency SOS with Satellite service packed into its current iPhone 14 models. As the name implies, the service allows users not in range of cellular signals or Wi-Fi to send text messages by communicating with satellites. Globalstar is the operator of those satellites.
Now what
Having Apple as a partner is a big deal, as is receiving a prepayment well in the nine-figure range.
Of course, the immediate fate of Globalstar's stock will depend quite a bit on the company's fourth-quarter and full-year 2022 earnings, which are to be published before market open on Wednesday. The few analysts tracking the stock are collectively expecting a 12% rise in revenue to just under $39 million for the quarter, with a net loss of $0.01 per share matching the fourth-quarter 2021 result.
10 stocks we like better than Globalstar
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Globalstar 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
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened On Tuesday, the day before it was slated to publish its latest set of quarterly earnings, Globalstar (NYSEMKT: GSAT) enjoyed a more than 10% lift in its share price. This partner is widely speculated to be tech sector titan Apple, which offers an Emergency SOS with Satellite service packed into its current iPhone 14 models. The few analysts tracking the stock are collectively expecting a 12% rise in revenue to just under $39 million for the quarter, with a net loss of $0.01 per share matching the fourth-quarter 2021 result.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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10 stocks we like better than Globalstar When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Eric Volkman has positions in Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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One result of the amendment is that the partner will hand over $252 million as a prepayment to Globalstar for the provision of satellite services. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple.
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16952.0
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2023-02-28 00:00:00 UTC
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After Hours Most Active for Feb 28, 2023 : VFC, LUMN, WU, COLB, EXC, UMPQ, RIVN, T, AAPL, GGG, LNC, AFRM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-28-2023-%3A-vfc-lumn-wu-colb-exc-umpq-rivn-t-aapl-ggg-lnc
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The NASDAQ 100 After Hours Indicator is down -24.08 to 12,018.04. The total After hours volume is currently 218,601,584 shares traded.
The following are the most active stocks for the after hours session:
V.F. Corporation (VFC) is +0.08 at $24.90, with 29,062,369 shares traded. VFC's current last sale is 84.41% of the target price of $29.5.
Lumen Technologies, Inc. (LUMN) is unchanged at $3.40, with 24,539,189 shares traded. LUMN's current last sale is 56.67% of the target price of $6.
Western Union Company (The) (WU) is unchanged at $12.96, with 13,012,594 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.42. WU's current last sale is 94.25% of the target price of $13.75.
Columbia Banking System, Inc. (COLB) is unchanged at $29.73, with 11,960,181 shares traded. As reported in the last short interest update the days to cover for COLB is 11.502479; this calculation is based on the average trading volume of the stock.
Exelon Corporation (EXC) is -0.0021 at $40.39, with 8,483,439 shares traded. As reported by Zacks, the current mean recommendation for EXC is in the "buy range".
Umpqua Holdings Corporation (UMPQ) is unchanged at $17.66, with 5,485,584 shares traded. UMPQ's current last sale is 92.95% of the target price of $19.
Rivian Automotive, Inc. (RIVN) is -1.27 at $18.03, with 4,518,215 shares traded. Smarter Analyst Reports: Report: Rivian Raises Vehicle Prices by up to 20%; Shares Sink 8.4%
AT&T Inc. (T) is unchanged at $18.91, with 4,033,850 shares traded. T's current last sale is 84.04% of the target price of $22.5.
Apple Inc. (AAPL) is +0.0073 at $147.42, with 3,959,094 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 $1.24. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Graco Inc. (GGG) is unchanged at $69.54, with 3,272,872 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.62. GGG's current last sale is 90.31% of the target price of $77.
Lincoln National Corporation (LNC) is unchanged at $31.72, with 3,253,485 shares traded. LNC's current last sale is 88.11% of the target price of $36.
Affirm Holdings, Inc. (AFRM) is -0.06 at $13.56, with 2,913,784 shares traded. AFRM's current last sale is 90.4% of the target price of $15.
The views and 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 +0.0073 at $147.42, with 3,959,094 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.0073 at $147.42, with 3,959,094 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 218,601,584 shares traded.
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Apple Inc. (AAPL) is +0.0073 at $147.42, with 3,959,094 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Umpqua Holdings Corporation (UMPQ) is unchanged at $17.66, with 5,485,584 shares traded.
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Apple Inc. (AAPL) is +0.0073 at $147.42, with 3,959,094 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Umpqua Holdings Corporation (UMPQ) is unchanged at $17.66, with 5,485,584 shares traded.
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16953.0
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2023-02-28 00:00:00 UTC
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Dell Technologies (DELL) to Post Q4 Earnings: What's in Store?
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AAPL
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https://www.nasdaq.com/articles/dell-technologies-dell-to-post-q4-earnings%3A-whats-in-store-0
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nan
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nan
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Dell Technologies DELL is set to report its fourth-quarter fiscal 2023 results on Mar 2.
Dell expects fiscal fourth-quarter revenues of $23-$24 billion, suggesting a 16% decline on a year-over-year basis at the mid-point. Earnings are expected between $1.50 and $1.80 per share, indicating a 4% decline on a year-over-year basis at the mid-point.
The Zacks Consensus Estimate for revenues is pegged at $22.82 billion, suggesting an 18.51% decline from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings is pegged at $1.64 per share, indicating a 4.65% decline from the year-ago quarter’s reported figure. The consensus estimate for earnings has declined 1.8% in the past 30 days.
Dell's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one. The company delivered a trailing four-quarter earnings surprise of 17.09% on average.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Let's see how things have shaped up for DELL before this announcement.
Factors to Watch
Dell is expected to have benefited from the ongoing digital transformation and strong demand environment in the to-be-reported quarter.
However, unfavorable foreign exchange is expected to have been a headwind. Dell expects a 500-basis-point impact on revenues.
Challenging macroeconomic conditions are expected to have hurt Infrastructure Solutions Group’s (ISG) growth in the to-be-reported quarter. IT purchase delay is expected to have hurt the top line. Dell expects ISG revenues to remain flat.
Nevertheless, Client Solutions Group revenues are expected to have suffered from declining PC demand, both in the customer and enterprise business segments.
Per Gartner, worldwide PC shipments in the fourth quarter of 2022 witnessed a year-over-year decrease of 28.5%, reaching 65.292 million units. Dell was ranked the third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.
This Zacks Rank #3 (Hold) company shipped 10.884 million units, witnessing a 37% year-over-year decline in the fourth quarter of 2022, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lenovo, HP and Apple shipped 15.663 million, 13.216 million and 7.011 million units, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dell was ranked the third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Watch Dell is expected to have benefited from the ongoing digital transformation and strong demand environment in the to-be-reported quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell was ranked the third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. The Zacks Consensus Estimate for revenues is pegged at $22.82 billion, suggesting an 18.51% decline from the figure reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell was ranked the third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Dell Technologies Inc. Price and EPS Surprise Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote Let's see how things have shaped up for DELL before this announcement.
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Dell was ranked the third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell expects a 500-basis-point impact on revenues.
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16954.0
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2023-02-28 00:00:00 UTC
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Is Amazon a Blue Chip Stock?
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AAPL
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https://www.nasdaq.com/articles/is-amazon-a-blue-chip-stock
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Investing in blue chip stocks has been a tried-and-true method of wealth creation for American investors for more than a century.
When you think of blue chip stocks, you usually think of long-standing financial or industrial companies like JPMorgan Chase (NYSE: JPM) or Caterpillar Inc. (NYSE: CAT).
Not every company must have a century-long business history to be considered a blue chip. For example, is Amazon a blue chip stock? That's the question we'll debate in this article, and the answer may surprise you.
What is Considered a Blue-Chip Stock?
"Blue chip stock" isn't a term you can narrow down to specific qualities. Instead, blue chip status is something a company earns over time by proving its stability to investors. It's important to note that blue chips tend to underperform growth stocks over long time horizons. Still, investors who value security and reliability over maximum returns can benefit significantly from blue chip stocks.
Blue chips are among the safest and most secure stocks available compared to the whole market. While losses are inevitable in any investment, blue chips tend to suffer less than their peers in down markets and usually rebound with strength when markets stabilize. Blue-chip stocks come from different sectors and industries, but they all share some similarities: large market caps, liquid shares, strong balance sheets and positive brand recognition. Here are a few blue-chip stock examples across different sectors:
Financials: JP Morgan Chase and Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: G.S.), Visa Inc. (NYSE: V), American Express Company (NYSE: AXP)
Healthcare: UnitedHealth Group Inc. (NYSE: UNH), Merck and Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ), Amgen Inc. (NYSE: AMGN)
Technology: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Intel Corp. (NASDAQ: INTC)
Industrials: Boeing Co. (NYSE: B.A.), Caterpillar Inc. (NYSE: CAT), Lockheed Martin Corp. (NYSE: LMT)
Consumer discretionary: Starbucks Corp. (NASDAQ: SBUX), McDonald's Corp. (NYSE: MCD), Walmart Inc. (NYSE: WMT), Walt Disney Co. (NYSE: DIS)
Overview of Amazon.com Inc.
Today, you can find any product under the sun in Amazon's vast catalog. However, in the beginning, Amazon.com Inc. (NASDAQ: AMZN) sold a single item — books! Founder and (now former) CEO Jeff Bezos created Amazon in his garage in 1994, and while he had a broad vision of becoming an online retail giant, he started with books for several reasons.
First, books are easy to acquire, store and ship. In the 1990s, e-commerce was a niche industry, and consumers were apprehensive about placing personal information online and receiving items. Books were easy items to package, and the risk of damage in transit was minimal. In addition, the public at the time wasn't interested in receiving electronics, clothes and other household items through mail or delivery.
Second, the global catalog of published books is far greater than anything a brick-and-mortar bookstore could hold. An internet bookseller was the ideal marketplace since the company could acquire and sell any text in any language. Bezos later expanded to music by selling C.D.s, video games, computer software and other consumer products. The company went public in 1997, surviving the dot-com crash and flourishing as an e-commerce leader in the succeeding years.
Amazon Total Returns Since Inception
Today, Amazon isn't just an e-commerce behemoth. Bezos launched Amazon Web Services in 2004, which offers cloud computing services to individuals, companies and governments. AWS earnings represent a substantial portion of the company's overall profits. Additionally, Amazon owns Whole Foods Markets, Twitch, Audible and Ring. While not every acquisition has been a winner, Amazon has added tremendous value to its portfolio over the last 10 to 15 years, and shareholders have greatly profited.
Amazon's common stock has split four times since the company went public in 1997. The first three splits occurred during 15 months in 1998 and 1999. After 1999, Amazon went more than 20 years without a stock split. The fourth and final stock split occurred in June 2022; the company split shares 20-1 instead of 2-1 or 3-1 like previous splits.
Amazon reached an all-time high of $3,507 in July 2021, which, adjusted for the June 2022 split, would be $186. If you held Amazon stock since inception and sold at an all-time high, you'd have netted yourself a 54,000% return — not bad for less than three decades of work. Amazon is now one of the largest companies in the world and should be considered a blue-chip firm, but blue-chip status means that meteoric 54,000% returns are unlikely to be repeated in the future.
Reasons Amazon is a Blue-Chip Stock
Amazon is one of the world's largest and most recognizable companies, and you should consider it for blue-chip investing. One knock against Amazon as a blue chip is the lack of dividends. However, a dividend isn't always required for blue-chip recognition. Dividends can play a significant role when investing in older blue chip firms, but Amazon is still less than 30 years old and still retains a large amount of profit for research and development.
Reason 1: Large Market Capitalization
One characteristic that all blue-chip stocks have is a large market cap. The stock market is a machine where investors vote with their money, and companies with large market caps spring up slowly. A large market cap shows that demand for shares is consistently high, and the company has a solid financial base to fall back on. As of this writing, Amazon is one of the three largest U.S. companies in the world by market capitalization.
Reason 2: Industry Leader
Amazon may have started in a dusty garage, but today the name is synonymous with e-commerce. Amazon Prime, the company's upgrade membership service, boasts over 200 million global subscribers. Of those subscribers, over 60% reported shopping on Amazon at least once a month. Amazon Web Services is an industry leader in cloud computing and API services.
Reason 3: Successful Business History
Few companies have raised their profile more over the last 30 years than Amazon. The company consistently beats earnings estimates, and revenue has grown tremendously, especially in the last 10 years. Amazon shareholders have received handsome rewards, and the company continues to expand into new markets and industries (although it remains to be seen how well the company can perform now that its heart and soul, CEO Jeff Bezos, has retired).
Reason 4: Trades on Major Exchanges
Blue-chip companies are large conglomerates with popular stocks, meaning trading on a major exchange is necessary. Amazon trades on the NASDAQ exchange in the United States — it is one of the largest members of the S&P 500.
Reason 5: High Liquidity / Low Volatility
There was a time when Amazon was a volatile growth stock, but the growth story faded a bit as Amazon matured as a company. Shares still carry a higher beta (1.3) than the overall market. Still, Amazon's place in the tech and consumer discretionary sectors makes it inherently more volatile than consumer staples or bank stocks. This low volatility combines with Amazon's ample liquidity to create a blue ship stock worth owning for the long haul.
Why Consider Investing in Blue-Chip Stocks?
Blue chip firms are highly regarded in capital markets. These companies have stood tall in the face of bear markets, recessions or even economic disasters like the 2008 financial crisis. But, of course, a blue-chip investment isn't going to go straight up every day. Plenty of solid companies have gone through extended bear markets, and you can't diversify market risk away just by building a sturdy portfolio of blue chips.
Whether you're searching for blue chips at 52-week lows or buying them based on momentum, an investment in America's largest and most stable companies has almost always produced quality risk-adjusted returns over extended time frames. Plus, investors who wish to still hold equities in retirement can sleep easy at night knowing their capital is invested in blue chips and not volatile startups.
Amazon Has Shed its Growth Label and Entered Blue-Chip Territory
By nearly all standards and classifications, Amazon is a blue-chip stock. Gone are the days of volatile drawdowns and parabolic gains; the stock certainly isn't at risk of dropping 90% anymore, but the 200% and 300% years are probably in the past. Slow and steady may not excite previous shareholders who saw their investment balloon over the last decade, but Amazon is here to stay.
Amazon has a massive market cap, nearly universal brand recognition and the balance sheet strength to remain a force for decades to come. The company might not yet pay a dividend, but this is really the only mark against its blue-chip status. Consider Amazon as you would other tech giants like Apple and Microsoft — even if their stocks are more volatile than blue chips in other industries, they deserve consideration when looking for blue chip stocks to invest in.
FAQs
Is Amazon a blue chip stock? Here are a few frequent thoughts regarding its status in the investment landscape.
Is Amazon a growth or blue-chip stock?
At one time, Amazon was the pinnacle of growth stocks and its returns since inception bear out that fact. However, while Amazon is still expanding and reinvesting profits into the company, it carries more qualities of a blue chip stock than a growth-obsessed volatile startup.
Is Apple a blue chip stock?
Apple is an excellent stock compared to Amazon since they're both considered tech companies founded by virtuoso leaders in Steve Jobs and Jeff Bezos. Apple is the largest stock in the world by market cap and has a recognizable brand found anywhere in the world. And they even pay a dividend! Apple is most certainly a blue-chip stock based on these criteria.
How do you know if a stock is a blue chip?
There's no hard and fast qualification for blue chip status. Instead, blue chips share a few common characteristics like large market caps, liquid shares, strong sales history, brand recognition and little risk of financial burdens or bankruptcy. Blue chip stocks may not offer the same hefty returns as small caps or growth stocks, but the risk factor is toned down significantly, and a portfolio of blue chips is still a stable path to wealth preservation.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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), Visa Inc. (NYSE: V), American Express Company (NYSE: AXP) Healthcare: UnitedHealth Group Inc. (NYSE: UNH), Merck and Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ), Amgen Inc. (NYSE: AMGN) Technology: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Intel Corp. (NASDAQ: INTC) Industrials: Boeing Co. (NYSE: B.A. Dividends can play a significant role when investing in older blue chip firms, but Amazon is still less than 30 years old and still retains a large amount of profit for research and development. Whether you're searching for blue chips at 52-week lows or buying them based on momentum, an investment in America's largest and most stable companies has almost always produced quality risk-adjusted returns over extended time frames.
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), Visa Inc. (NYSE: V), American Express Company (NYSE: AXP) Healthcare: UnitedHealth Group Inc. (NYSE: UNH), Merck and Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ), Amgen Inc. (NYSE: AMGN) Technology: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Intel Corp. (NASDAQ: INTC) Industrials: Boeing Co. (NYSE: B.A. Blue-chip stocks come from different sectors and industries, but they all share some similarities: large market caps, liquid shares, strong balance sheets and positive brand recognition. Instead, blue chips share a few common characteristics like large market caps, liquid shares, strong sales history, brand recognition and little risk of financial burdens or bankruptcy.
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), Visa Inc. (NYSE: V), American Express Company (NYSE: AXP) Healthcare: UnitedHealth Group Inc. (NYSE: UNH), Merck and Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ), Amgen Inc. (NYSE: AMGN) Technology: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Intel Corp. (NASDAQ: INTC) Industrials: Boeing Co. (NYSE: B.A. Reasons Amazon is a Blue-Chip Stock Amazon is one of the world's largest and most recognizable companies, and you should consider it for blue-chip investing. Consider Amazon as you would other tech giants like Apple and Microsoft — even if their stocks are more volatile than blue chips in other industries, they deserve consideration when looking for blue chip stocks to invest in.
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), Visa Inc. (NYSE: V), American Express Company (NYSE: AXP) Healthcare: UnitedHealth Group Inc. (NYSE: UNH), Merck and Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ), Amgen Inc. (NYSE: AMGN) Technology: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Intel Corp. (NASDAQ: INTC) Industrials: Boeing Co. (NYSE: B.A. For example, is Amazon a blue chip stock? Why Consider Investing in Blue-Chip Stocks?
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2023-02-28 00:00:00 UTC
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5 Ways to Differentiate Leaders & Laggards
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AAPL
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https://www.nasdaq.com/articles/5-ways-to-differentiate-leaders-laggards
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Stick with the Leaders
Since going public in 2010, Tesla TSLA has been a true market leader. Over that period, the stock is up a staggering 13,000% versus just 200% in the S&P 500 Index during the same time frame, catapulting CEO Elon Musk to be the wealthiest human on Earth.
Image Source: Zacks Investment Research
Tesla’s undeniable success can provide investors with a valuable blueprint to help separate market leaders from laggards. Below we will identify 5 ways to differentiate between the two, including:
1. Explosive Growth: Tesla has produced annual earnings per share (EPS) growth every year over the past five years. Contrast that with competitors in the EV space or the traditional automaker space (trying to break into the EV industry), and you will not find the same growth. For example, competitors like Ford Motor (F) and Nio Inc NIO have seen annual earnings per share oscillate back and forth over the same period. Other EV industry peers, such as Fisker Inc FSR, Rivian RIVN, and Lucid Group LCID, have yet to post a profit as a public company.
Image Source: Zacks Investment Research
2. Brand Recognition:When you think of search, you likely think of Alphabet GOOGL. When you think of smartphones, you think of Apple’s AAPL iPhone. EVs are synonymous with Tesla. The recognizable brands often become the strongest performers in the long run.
3. Innovation:Blockbuster Video is no longer in business because of a lack of innovation. On the contrary, Netflix NFLX, which was just a tiny company in the beginning, grew in a “hockey stick” like fashion due to innovating and birthing the streaming business. When you want to find a winning company, find a visionary CEO. Think Elon Musk, Steve Jobs, or Reed Hastings.
4. Financial Efficiency:In the end, it’s not about the revenue you can produce, but rather, the bottom line. For example, Tesla has a return on equity (ROE) of 38%, while the automotive industry has a negative ROE as a whole. In fact, the only automaker that compares to Tesla favorably is in a different segment (supercars). Ferrari RACE has an ROE of 41% and has been a top performer over the past few years.
5. Price & Price Action:Like most things in life, you get what you pay for on Wall Street. Leading growth stocks tend to have higher valuations than laggards. This is because investors are willing to pay a higher premium for growth. Leading stocks also tend to outperform on a relative basis. Said another way, the price action in the market will show you the way.
Conclusion:
Leading companies tend to trade at higher valuations than laggards, reflecting their strong fundamentals and growth prospects. Investors who stick with leading stocks are more likely to benefit from capital appreciation over the long term.
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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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When you think of smartphones, you think of Apple’s AAPL iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Tesla’s undeniable success can provide investors with a valuable blueprint to help separate market leaders from laggards.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. When you think of smartphones, you think of Apple’s AAPL iPhone. Image Source: Zacks Investment Research Tesla’s undeniable success can provide investors with a valuable blueprint to help separate market leaders from laggards.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. When you think of smartphones, you think of Apple’s AAPL iPhone. Image Source: Zacks Investment Research Tesla’s undeniable success can provide investors with a valuable blueprint to help separate market leaders from laggards.
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When you think of smartphones, you think of Apple’s AAPL iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Explosive Growth: Tesla has produced annual earnings per share (EPS) growth every year over the past five years.
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2023-02-28 00:00:00 UTC
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Got $1,000? 2 Buffett Stocks to Buy in 2023 and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/got-%241000-2-buffett-stocks-to-buy-in-2023-and-hold-forever
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has famously said that his company's favorite holding period for stocks is "forever." Of course, finding investment opportunities that are worth holding for the ultra-long term is no easy task, but Buffett and Berkshire have an incredible track record on that front.
Thanks to strong leadership, a foundation of smart money-managing principles, and a series of fantastically successful investment moves that were given time to flourish, Berkshire Hathaway currently stands as the world's sixth-largest publicly traded company and sports a market capitalization of roughly $671 billion. Not too shabby, especially considering that Berkshire was a struggling textiles company when Buffett purchased a controlling stake in the business and became its chief executive back in 1965.
If you're looking to invest like the Oracle of Omaha, read on for a look at two Buffett-backed stocks that are worth buying and holding for the long haul.
Image source: The Motley Fool.
1. Apple
If you're ever wondering what Berkshire Hathaway's favorite stock is, a quick look at the equity positions disclosed in the company's 13F filings will clear things up quickly. The money does the talking. Apple (NASDAQ: AAPL) is by far Berkshire's largest equity position, accounting for roughly 41% of the company's total stock portfolio. For comparison, Bank of America stands as the investment conglomerate's second-largest holding and accounts for roughly 10.8% of the company's holdings as of this writing.
Of course, you can also look to Buffett's own words for confirmation of just how much Buffett loves Apple. The famous investor has described his company's equity position in Apple as Berkshire's third pillar (in addition to its insurance and railway subsidiaries), and he's said that the tech giant may be the single best business he knows of.
In addition to being a huge fan of Apple stock, Buffett is among the legions of devoted iPhone customers. In 2020, the Oracle of Omaha finally said goodbye to his trusty flip phone and embraced Apple's signature mobile device.
Apple basically pioneered the mobile market, and the company's incredible brand strength, much-loved penchant for design, and efficient manufacturing operations have allowed it to absolutely dominate the smartphone industry. Last year, the company captured an astounding 85% of total operating profits from worldwide smartphone sales. While that marked the company's best-ever share of global smartphone profits, it wasn't exactly a one-off performance either. Apple has essentially been the clear-cut leader in the category since the release of the first iPhone in 2007.
Through its dominance in mobile, contributions from other hardware products, and its expanding software-and-services ecosystem, the tech leader is one of the most profitable companies in existence. Even with the stock trading down roughly 19% from its high, Apple still stands as the world's largest company. And with its leading position in consumer electronics potentially paving the way for the company to expand into categories including augmented reality, smart cars, and new wearable hardware, it still has growth opportunities ahead.
2. Amazon
Once valued at roughly $1.9 trillion, Amazon's (NASDAQ: AMZN) market capitalization has been pushed down to a meager $951 billion. Tongue-in-cheek comments about the company's diminutive valuation aside, the e-commerce and cloud-computing leader still ranks as the world's fifth-largest publicly traded company.
But while Amazon is still a huge company even after recent sell-offs, it also remains a relatively small position in the Berkshire stock portfolio. As of this writing, Amazon stock accounts for just 0.3% of the investment conglomerate's total equity holdings, but it wouldn't be shocking to see the company increase its position in the tech stock in the not-too-distant future.
AMZN data by YCharts
Berkshire last purchased Amazon stock in the second quarter of 2019, and the tech leader's share price is currently in roughly the same range at which Buffett's company made its last purchase. Facing macroeconomic pressures on multiple fronts, stock trades down roughly 50% from its peak, but there's a good chance it will eventually bounce back and go on to hit new highs. The tech titan's cloud-computing and digital-advertising businesses are still serving up solid double-digit sales growth, and the market may be severely underestimating profit potential in e-commerce.
Amazon's technology and infrastructure advantages will make it very hard for competitors to challenge it in the online retail industry, and the e-commerce business actually has the potential to become dramatically more profitable over the long term. Advances in artificial intelligence, robotics, and autonomous vehicle technologies will likely cut down warehouse and delivery expenses for the company's online business, paving the way for the e-commerce business to become a much more powerful earnings driver.
While economic slowdown may pressure the company's business segments, Amazon remains one of the strongest companies in the world, and it remains fantastically positioned for the long-term future.
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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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is by far Berkshire's largest equity position, accounting for roughly 41% of the company's total stock portfolio. Thanks to strong leadership, a foundation of smart money-managing principles, and a series of fantastically successful investment moves that were given time to flourish, Berkshire Hathaway currently stands as the world's sixth-largest publicly traded company and sports a market capitalization of roughly $671 billion. Apple basically pioneered the mobile market, and the company's incredible brand strength, much-loved penchant for design, and efficient manufacturing operations have allowed it to absolutely dominate the smartphone industry.
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Apple (NASDAQ: AAPL) is by far Berkshire's largest equity position, accounting for roughly 41% of the company's total stock portfolio. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has famously said that his company's favorite holding period for stocks is "forever." Thanks to strong leadership, a foundation of smart money-managing principles, and a series of fantastically successful investment moves that were given time to flourish, Berkshire Hathaway currently stands as the world's sixth-largest publicly traded company and sports a market capitalization of roughly $671 billion.
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Apple (NASDAQ: AAPL) is by far Berkshire's largest equity position, accounting for roughly 41% of the company's total stock portfolio. As of this writing, Amazon stock accounts for just 0.3% of the investment conglomerate's total equity holdings, but it wouldn't be shocking to see the company increase its position in the tech stock in the not-too-distant future. AMZN data by YCharts Berkshire last purchased Amazon stock in the second quarter of 2019, and the tech leader's share price is currently in roughly the same range at which Buffett's company made its last purchase.
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Apple (NASDAQ: AAPL) is by far Berkshire's largest equity position, accounting for roughly 41% of the company's total stock portfolio. If you're looking to invest like the Oracle of Omaha, read on for a look at two Buffett-backed stocks that are worth buying and holding for the long haul. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway.
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2023-02-28 00:00:00 UTC
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Apple faces EU charge over App Store rules as regulators narrow case
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https://www.nasdaq.com/articles/apple-faces-eu-charge-over-app-store-rules-as-regulators-narrow-case
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nan
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By Foo Yun Chee and Sudip Kar-Gupta
BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions.
The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system.
The EU competition watchdog said Apple's so-called "anti-steering obligations" for developers are "neither necessary nor proportionate for the provision of the App Store on iPhones and iPads and that they are detrimental to users of music streaming services on Apple's mobile devices who may end up paying more".
Apple said it was pleased the Commission had narrowed the case and it would respond to the regulator's concerns.
The case was triggered by Spotify SPOT.N, which complained Apple unfairly restricted rivals to its own music streaming service Apple Music on iPhones.
That prompted the Commission to open a case and issue a charge sheet against Apple in April 2021 over its anti-steering mechanism and in-app payment system.
The Commission said Tuesday's charge sheet, known as a statement of objections, would replace the 2021 document.
(Reporting by Foo Yun Chee and Sudip Kar-Gupta Editng by Mark Potter)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee and Sudip Kar-Gupta BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The EU competition watchdog said Apple's so-called "anti-steering obligations" for developers are "neither necessary nor proportionate for the provision of the App Store on iPhones and iPads and that they are detrimental to users of music streaming services on Apple's mobile devices who may end up paying more". That prompted the Commission to open a case and issue a charge sheet against Apple in April 2021 over its anti-steering mechanism and in-app payment system.
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By Foo Yun Chee and Sudip Kar-Gupta BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The case was triggered by Spotify SPOT.N, which complained Apple unfairly restricted rivals to its own music streaming service Apple Music on iPhones. (Reporting by Foo Yun Chee and Sudip Kar-Gupta Editng by Mark Potter) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee and Sudip Kar-Gupta BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The EU competition watchdog said Apple's so-called "anti-steering obligations" for developers are "neither necessary nor proportionate for the provision of the App Store on iPhones and iPads and that they are detrimental to users of music streaming services on Apple's mobile devices who may end up paying more". The case was triggered by Spotify SPOT.N, which complained Apple unfairly restricted rivals to its own music streaming service Apple Music on iPhones.
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By Foo Yun Chee and Sudip Kar-Gupta BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The EU competition watchdog said Apple's so-called "anti-steering obligations" for developers are "neither necessary nor proportionate for the provision of the App Store on iPhones and iPads and that they are detrimental to users of music streaming services on Apple's mobile devices who may end up paying more". That prompted the Commission to open a case and issue a charge sheet against Apple in April 2021 over its anti-steering mechanism and in-app payment system.
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16958.0
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2023-02-28 00:00:00 UTC
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Should Abbott and DexCom Investors Be Worried About Apple's Latest News?
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AAPL
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https://www.nasdaq.com/articles/should-abbott-and-dexcom-investors-be-worried-about-apples-latest-news
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nan
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nan
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Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Patients can easily monitor their glucose and receive alerts when thresholds are exceeded on their smart devices.
But that relationship could be about to change significantly in a way that isn't helpful to the two big CGM makers. Bloomberg reported last week about one of Apple's major development efforts. Should Abbott and DexCom investors be worried about Apple's latest news?
Image source: Getty Images.
From partner to competitor
The CGM market is already huge and continues to grow rapidly. Abbott posted sales of $1.1 billion for its FreeStyle Libre in the fourth quarter of 2022, a year-over-year jump of more than 40%. DexCom's Q4 sales for its CGM devices topped $815 million, up 17% year over year.
Apple wants to take a bite of its own out of this big market opportunity. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. The tech giant's goal is to launch its own CGM tied to its Apple Watch, according to Bloomberg's sources, who are familiar with Apple's efforts.
The two current market leaders in CGM use patches that are inserted into the skin of a person's arm. These patches must be replaced regularly -- every 10 days for DexCom's G7 and every 14 days for Abbott's FreeStyle Libre.
However, Apple is using a much different method to measure glucose. The company's approach is to use lasers to bounce light off of areas beneath the skin that contain interstitial fluids that leak from capillaries. These interstitial fluids are absorbed by glucose in the blood. Apple's process, known as optical absorption spectroscopy, measures the reflected light to determine an individual's concentration of glucose. This concentration can then be used to calculate the blood glucose level.
Immediate jolts
It's understandable that Apple's potential entrance into the CGM market immediately caught the attention of Abbott's and DexCom's shareholders. The two healthcare stocks took a hit after the news broke about Apple's secret E5 project.
Abbott's share price fell nearly 3% immediately after the Bloomberg story was published on Feb. 22. The stock bounced back quickly, however. Still, though, Abbott's shares remain nearly 2% lower than they were prior to the revelation of Apple's CGM development efforts.
DexCom stock was hit even harder. Shares sank as much as 8% on Feb. 22 before recovering later in the day. The stock has continued to claw its way back this week but is still a little lower than it was before the Apple project was reported.
A long way to go
Should Abbott and DexCom investors really be worried about Apple's CGM efforts? Yes. The growth trajectories for both companies could be negatively impacted if Apple becomes a direct rival.
The competition would likely hurt DexCom the most. While Abbott has many other products other than FreeStyle Libre, all of DexCom's revenue is generated from its CGM systems. However, Abbott would definitely be affected if Apple is able to carve out a significant market share.
Perhaps the best news for Abbott and DexCom is that Apple still has a long way to go to perfect its CGM technology. Apple is only at the proof-of-concept stage at this point, according to Bloomberg's sources. The company could take several years before it could potentially launch a CGM product. And it's possible that Apple's efforts will fail.
Bloomberg also reported that Apple is working on a prototype device that's roughly the size of an iPhone. Abbott's and DexCom's current CGM patches are much smaller and could be preferred by many people with diabetes.
In the meantime, both Abbott and DexCom continue to invest in research and development to build better CGM technology. The companies could be able to out-innovate Apple.
The bottom line is that Apple could be a formidable rival in the CGM market at some point in the future. For now, however, Abbott and DexCom should continue to deliver solid growth with their respective CGM products.
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
Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends DexCom 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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Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood.
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Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood.
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Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The tech giant's goal is to launch its own CGM tied to its Apple Watch, according to Bloomberg's sources, who are familiar with Apple's efforts. A long way to go Should Abbott and DexCom investors really be worried about Apple's CGM efforts?
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Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. A long way to go Should Abbott and DexCom investors really be worried about Apple's CGM efforts?
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16959.0
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2023-02-28 00:00:00 UTC
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EU antitrust regulators narrow case against Apple
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AAPL
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https://www.nasdaq.com/articles/eu-antitrust-regulators-narrow-case-against-apple
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nan
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nan
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BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions.
The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system.
(Reporting by Foo Yun Chee and Sudip Kar-Gupta)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system. (Reporting by Foo Yun Chee and Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system. (Reporting by Foo Yun Chee and Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system. (Reporting by Foo Yun Chee and Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BRUSSELS, Feb 28 (Reuters) - EU antitrust regulators on Tuesday narrowed their case against Apple AAPL.O, saying its App Store rules that prevent developers from informing users of other purchasing options violate the bloc's rules against unfair trading conditions. The European Commission, which acts as the executive for the 27-country European Union, dropped an earlier charge that targeted Apple's rules which require developers to use its own in-app payment system. (Reporting by Foo Yun Chee and Sudip Kar-Gupta) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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16960.0
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2023-02-28 00:00:00 UTC
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Can You Actually Retire a Millionaire With ETFs Alone?
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AAPL
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https://www.nasdaq.com/articles/can-you-actually-retire-a-millionaire-with-etfs-alone-4
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nan
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nan
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Do you think investing your way to millions requires expert stock-picking skills? Think again. Sometimes the best investments are effortless. And therein lies the beauty of exchange-traded funds, or ETFs.
An ETF gives you an automatically diversified basket of investments that you buy and sell exactly as you would trade an individual stock. Because a single ETF spreads your money across many different investments, you don't face the risks that come with picking individual stocks. Keep reading to learn what it takes to retire a millionaire through ETFs alone.
Image source: Getty Images.
Can ETFs really make you rich?
In a nutshell: Yes, ETFs alone are enough to make you rich. With just one investment, you can capture the growth of the overall stock market or a certain segment of it.
For example, you can find ETFs that focus on pretty much any industry, investment theme, or region of the globe. Want to invest in artificial intelligence or electric vehicles? There are ETFs for that. Or you can choose ETFs that invest in stocks within a specified market capitalization range or that meet environmental, social, and governance criteria.
Probably the best way to get started is with an ETF that tracks most of the U.S. stock market, if not all of it -- like an S&P 500 ETF. Your money won't get the jaw-dropping returns you would get if you could pick the next Apple (NASDAQ: AAPL) or Amazon (NASDAQ: AMZN).
But for every stock that delivers blockbuster returns, there are many more that turn out to be busts for early investors. Because you're spreading out your risk, your odds of substantial losses are lower with an ETF compared with individual stocks.
Over long stretches of time, the overall market has historically produced wealth-building returns. Take the S&P 500 index, which represents roughly 80% of the value of the U.S. stock market. In the past 30 years, the index has produced a gain of around 800%. Had you invested $100,000 in the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), which aims to replicate the index's returns, shortly after its inception in 1993, you'd have just shy of $900,000 today.
^SPX data by YCharts.
The value of time for ETF investors
ETFs don't deliver get-rich-quick results. So it's important to start investing early and then use a buy-and-hold strategy, giving your money plenty of time to compound.
Going back to our example of the SPDR S&P 500 ETF Trust: That same $100,000 investment that would have grown to almost $900,000 if you'd invested 30 years ago would be worth less than $470,000 had you invested 20 years ago.
How many ETFs do you need?
It's possible to get most of the diversification you need with a single ETF that tracks most of the U.S. stock market. If you want to go beyond the companies in the S&P 500, you could choose a total stock market fund, like the Vanguard Total Stock Market ETF (NYSEMKT: VTI), which will invest your money in nearly 4,000 U.S. stocks.
Still, it's typically wise to invest a small percentage of your portfolio in a bond ETF, since bonds tend to be less volatile than stocks. And as you get closer to retirement, it's smart to raise that percentage. You might want to diversify even further, perhaps by adding a real estate or international ETF.
Building a seven-figure nest egg through ETFs requires time and patience, not luck. If you start investing early enough, a couple of ETFs could easily grow into a million-dollar investment portfolio.
10 stocks we like better than SPDR S&P 500 ETF Trust
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 SPDR S&P 500 ETF Trust 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 Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Robin Hartill, CFP® has positions in Vanguard Index Funds-Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard Index Funds-Vanguard Total Stock Market ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Your money won't get the jaw-dropping returns you would get if you could pick the next Apple (NASDAQ: AAPL) or Amazon (NASDAQ: AMZN). Or you can choose ETFs that invest in stocks within a specified market capitalization range or that meet environmental, social, and governance criteria. Had you invested $100,000 in the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), which aims to replicate the index's returns, shortly after its inception in 1993, you'd have just shy of $900,000 today.
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Your money won't get the jaw-dropping returns you would get if you could pick the next Apple (NASDAQ: AAPL) or Amazon (NASDAQ: AMZN). If you want to go beyond the companies in the S&P 500, you could choose a total stock market fund, like the Vanguard Total Stock Market ETF (NYSEMKT: VTI), which will invest your money in nearly 4,000 U.S. stocks. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard Index Funds-Vanguard Total Stock Market ETF.
|
Your money won't get the jaw-dropping returns you would get if you could pick the next Apple (NASDAQ: AAPL) or Amazon (NASDAQ: AMZN). Probably the best way to get started is with an ETF that tracks most of the U.S. stock market, if not all of it -- like an S&P 500 ETF. Going back to our example of the SPDR S&P 500 ETF Trust: That same $100,000 investment that would have grown to almost $900,000 if you'd invested 30 years ago would be worth less than $470,000 had you invested 20 years ago.
|
Your money won't get the jaw-dropping returns you would get if you could pick the next Apple (NASDAQ: AAPL) or Amazon (NASDAQ: AMZN). Probably the best way to get started is with an ETF that tracks most of the U.S. stock market, if not all of it -- like an S&P 500 ETF. If you want to go beyond the companies in the S&P 500, you could choose a total stock market fund, like the Vanguard Total Stock Market ETF (NYSEMKT: VTI), which will invest your money in nearly 4,000 U.S. stocks.
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16961.0
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2023-02-28 00:00:00 UTC
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Apple supplier Foxlink had faulty safety equipment at India site hit by fire-official
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxlink-had-faulty-safety-equipment-at-india-site-hit-by-fire-official
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nan
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nan
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By Praveen Paramasivam and Munsif Vengattil
CHITTOOR, India Feb 28 (Reuters) - Most of the fire safety equipment was not functional at Apple supplier Foxlink's 2392.TW facility in southern India which has halted production due to a massive fire incident, a top government official told Reuters.
Except for fire extinguishers, safety systems such as smoke detectors, sprinklers and fire hydrants were in faulty condition at the Andhra Pradesh factory, leading to a slower response in containing the fire, said J Ramanaiah, who leads the regional Fire Services Department.
Apple AAPL.O and Foxlink did not immediately respond to a request for comment.
Foxlink, which makes charging cables for iPhones, is unlikely to resume full operations for two months after Monday's fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source told Reuters on Tuesday.
A part of the Foxlink building had collapsed to the ground due to the fire.
(Reporting by Praveen Paramasivam in Chittoor and Munsif Vengattil in New Delhi; Editing by Aditya Kalra and Louise Heavens)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O and Foxlink did not immediately respond to a request for comment. By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India Feb 28 (Reuters) - Most of the fire safety equipment was not functional at Apple supplier Foxlink's 2392.TW facility in southern India which has halted production due to a massive fire incident, a top government official told Reuters. Foxlink, which makes charging cables for iPhones, is unlikely to resume full operations for two months after Monday's fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source told Reuters on Tuesday.
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Apple AAPL.O and Foxlink did not immediately respond to a request for comment. By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India Feb 28 (Reuters) - Most of the fire safety equipment was not functional at Apple supplier Foxlink's 2392.TW facility in southern India which has halted production due to a massive fire incident, a top government official told Reuters. Foxlink, which makes charging cables for iPhones, is unlikely to resume full operations for two months after Monday's fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source told Reuters on Tuesday.
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Apple AAPL.O and Foxlink did not immediately respond to a request for comment. By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India Feb 28 (Reuters) - Most of the fire safety equipment was not functional at Apple supplier Foxlink's 2392.TW facility in southern India which has halted production due to a massive fire incident, a top government official told Reuters. Except for fire extinguishers, safety systems such as smoke detectors, sprinklers and fire hydrants were in faulty condition at the Andhra Pradesh factory, leading to a slower response in containing the fire, said J Ramanaiah, who leads the regional Fire Services Department.
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Apple AAPL.O and Foxlink did not immediately respond to a request for comment. By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India Feb 28 (Reuters) - Most of the fire safety equipment was not functional at Apple supplier Foxlink's 2392.TW facility in southern India which has halted production due to a massive fire incident, a top government official told Reuters. Except for fire extinguishers, safety systems such as smoke detectors, sprinklers and fire hydrants were in faulty condition at the Andhra Pradesh factory, leading to a slower response in containing the fire, said J Ramanaiah, who leads the regional Fire Services Department.
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16962.0
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2023-02-28 00:00:00 UTC
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Apple supplier Foxlink unlikely to resume full India operations for two months-source
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxlink-unlikely-to-resume-full-india-operations-for-two-months-source
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nan
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nan
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By Praveen Paramasivam and Munsif Vengattil
CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday.
The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. There were no casualties.
A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which four were completely damaged and unlikely to resume operations for two months.
The remaining six assembly lines will resume operations later this week as even though they were unaffected by the fire incident, they cannot be operated due to damage to IT servers.
A second source familiar with the developments said that Foxlink was a key supplier for Apple in India, and "there could be potential supply chain disruptions for iPhones made in India or shipped from India."
Apple and Foxlink did not immediately respond to requests for comment. The root cause of the incident is still being investigated, the first source added.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi, and Praveen Paramasivam in Tirupati, Editing by Louise Heavens)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. (Reporting by Munsif Vengattil and Aditya Kalra in New Delhi, and Praveen Paramasivam in Tirupati, Editing by Louise Heavens) ((munsif.vengattil@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which four were completely damaged and unlikely to resume operations for two months. The remaining six assembly lines will resume operations later this week as even though they were unaffected by the fire incident, they cannot be operated due to damage to IT servers.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which four were completely damaged and unlikely to resume operations for two months. A second source familiar with the developments said that Foxlink was a key supplier for Apple in India, and "there could be potential supply chain disruptions for iPhones made in India or shipped from India."
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. There were no casualties.
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16963.0
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2023-02-28 00:00:00 UTC
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Apple supplier Foxlink unlikely to resume full India operations for two months-source
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxlink-unlikely-to-resume-full-india-operations-for-two-months-source-0
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nan
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nan
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By Praveen Paramasivam and Munsif Vengattil
CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday.
The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. There were no casualties.
A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which 4 were completely damaged and unlikely to resume operations for two months.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi, and Praveen Paramasivam in Tirupati, Editing by Louise Heavens)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. (Reporting by Munsif Vengattil and Aditya Kalra in New Delhi, and Praveen Paramasivam in Tirupati, Editing by Louise Heavens) ((munsif.vengattil@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which 4 were completely damaged and unlikely to resume operations for two months.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. There were no casualties. A source with direct knowledge said that Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which 4 were completely damaged and unlikely to resume operations for two months.
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By Praveen Paramasivam and Munsif Vengattil CHITTOOR, India, Feb 28 (Reuters) - Apple AAPL.O supplier Foxlink's factory in southern India is unlikely to resume full operations for two months after a fire incident, raising concerns of supply chain disruptions for the iPhone maker, a source with direct knowledge told Reuters on Tuesday. The facility in India's Andhra Pradesh state, where Foxlink makes charging cables for iPhones, was engulfed in a massive fire on Monday that led part of the building to collapse to the ground. There were no casualties.
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16964.0
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2023-02-28 00:00:00 UTC
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EU Says Apple Breached Antitrust Law In Music-Streaming Case - Quick Facts
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AAPL
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https://www.nasdaq.com/articles/eu-says-apple-breached-antitrust-law-in-music-streaming-case-quick-facts
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nan
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nan
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(RTTNews) - The European Commission has sent a Statement of Objections to Apple clarifying its concerns over App Store rules for music streaming providers.
The Statement of Objections outlined the Commission's preliminary view that Apple abused its dominant position by imposing its own in-app purchase payment technology on music streaming app developers, and restricting app developers' ability to inform iPhone and iPad users of alternative music subscription services or 'anti-steering obligations'.
The Commission takes the preliminary view that Apple's anti-steering obligations are unfair trading conditions.
In June 2020, the Commission opened formal proceedings into Apple's rules for app developers on the distribution of apps via the App Store. In April 2021, the Commission sent Apple a Statement of Objections to which Apple responded in September 2021.
In a separate press release, Spotify said Tuesday that the European Commission has once again made it abundantly clear that consumers are the ultimate victims of Apple's abusive and anticompetitive behavior—and putting a stop to it is a top priority.
Apple's anti-steering rules, which prohibit Spotify and other developers from telling consumers about deals or promotions through their own apps, mean that users are deprived of opportunities to save money and enjoy a higher quality service. That directly harms consumers, Spotify said in a statement.
Spotify noted that the European Commission has sent a clear message that Apple must play fair and let competition work. Momentum is on the side of consumers but they deserve final resolution—and soon.
The views and 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) - The European Commission has sent a Statement of Objections to Apple clarifying its concerns over App Store rules for music streaming providers. In a separate press release, Spotify said Tuesday that the European Commission has once again made it abundantly clear that consumers are the ultimate victims of Apple's abusive and anticompetitive behavior—and putting a stop to it is a top priority. Apple's anti-steering rules, which prohibit Spotify and other developers from telling consumers about deals or promotions through their own apps, mean that users are deprived of opportunities to save money and enjoy a higher quality service.
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(RTTNews) - The European Commission has sent a Statement of Objections to Apple clarifying its concerns over App Store rules for music streaming providers. The Statement of Objections outlined the Commission's preliminary view that Apple abused its dominant position by imposing its own in-app purchase payment technology on music streaming app developers, and restricting app developers' ability to inform iPhone and iPad users of alternative music subscription services or 'anti-steering obligations'. The Commission takes the preliminary view that Apple's anti-steering obligations are unfair trading conditions.
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(RTTNews) - The European Commission has sent a Statement of Objections to Apple clarifying its concerns over App Store rules for music streaming providers. The Statement of Objections outlined the Commission's preliminary view that Apple abused its dominant position by imposing its own in-app purchase payment technology on music streaming app developers, and restricting app developers' ability to inform iPhone and iPad users of alternative music subscription services or 'anti-steering obligations'. In June 2020, the Commission opened formal proceedings into Apple's rules for app developers on the distribution of apps via the App Store.
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(RTTNews) - The European Commission has sent a Statement of Objections to Apple clarifying its concerns over App Store rules for music streaming providers. The Statement of Objections outlined the Commission's preliminary view that Apple abused its dominant position by imposing its own in-app purchase payment technology on music streaming app developers, and restricting app developers' ability to inform iPhone and iPad users of alternative music subscription services or 'anti-steering obligations'. In June 2020, the Commission opened formal proceedings into Apple's rules for app developers on the distribution of apps via the App Store.
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16965.0
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2023-02-28 00:00:00 UTC
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Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-etf-eps-a-strong-etf-right-now-4
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nan
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nan
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund launched on 02/23/2007.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, EPS has amassed assets over $648.20 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Earnings 500 Index.
The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.08% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.89%.
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 in the Information Technology sector - about 22.30% of the portfolio. Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 26.17% of EPS's total assets under management.
Performance and Risk
The ETF has gained about 3.58% so far this year and is down about -6.83% in the last one year (as of 02/28/2023). In the past 52-week period, it has traded between $38.39 and $49.35.
The fund has a beta of 1 and standard deviation of 24.78% for the trailing three-year period, which makes EPS a medium risk choice in this particular space. With about 502 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $51.89 billion in assets, Vanguard Value ETF has $101.89 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund launched on 02/23/2007.
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16966.0
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2023-02-27 00:00:00 UTC
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Apple pays $12.1 mln fine for alleged app market abuse in Russia - Antimonopoly Service
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AAPL
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https://www.nasdaq.com/articles/apple-pays-%2412.1-mln-fine-for-alleged-app-market-abuse-in-russia-antimonopoly-service
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nan
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nan
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This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.
Adds FAS statement in paragraphs 5-6
MOSCOW, Feb 27 (Reuters) - U.S. tech giant Apple APPL.O has paid a 906 million rouble ($12.12 million) fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said on Monday.
Apple, which did not immediately respond to a request for comment, has previously "respectfully disagreed" with a FAS ruling that Apple's distribution of apps through its iOS operating system gave its own products a competitive advantage.
The FAS determined in August 2020 that Apple had abused its dominant position, then issued a directive requiring Apple to remove provisions giving it the right to reject third-party apps from its App Store.
That move followed a complaint from cybersecurity company Kaspersky Lab, which had said a new version of its Safe Kids application had been declined by Apple's operating system.
"Apple has paid a 906 million rouble antitrust fine," the FAS said in a statement on its Telegram channel.
Apple had appealed the decision at various stages, but had been unsuccessful and ultimately complied with the order, the FAS said.
In a separate case, the FAS in January said it had fined Apple around $17.4 million for allegedly forcing Russian developers to use Apple's payment services with the iOS App Store.
Apple paused all product sales in Russia a year ago, after Moscow despatched its armed forces to Ukraine, and limited its Apple Pay service in Russia.
($1 = 74.7265 roubles)
(Reporting by Caleb Davis and Alexander Marrow; Editing by Kevin Liffey)
((alexander.marrow@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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This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. Adds FAS statement in paragraphs 5-6 MOSCOW, Feb 27 (Reuters) - U.S. tech giant Apple APPL.O has paid a 906 million rouble ($12.12 million) fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said on Monday. That move followed a complaint from cybersecurity company Kaspersky Lab, which had said a new version of its Safe Kids application had been declined by Apple's operating system.
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Adds FAS statement in paragraphs 5-6 MOSCOW, Feb 27 (Reuters) - U.S. tech giant Apple APPL.O has paid a 906 million rouble ($12.12 million) fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said on Monday. "Apple has paid a 906 million rouble antitrust fine," the FAS said in a statement on its Telegram channel. In a separate case, the FAS in January said it had fined Apple around $17.4 million for allegedly forcing Russian developers to use Apple's payment services with the iOS App Store.
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Adds FAS statement in paragraphs 5-6 MOSCOW, Feb 27 (Reuters) - U.S. tech giant Apple APPL.O has paid a 906 million rouble ($12.12 million) fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said on Monday. Apple, which did not immediately respond to a request for comment, has previously "respectfully disagreed" with a FAS ruling that Apple's distribution of apps through its iOS operating system gave its own products a competitive advantage. In a separate case, the FAS in January said it had fined Apple around $17.4 million for allegedly forcing Russian developers to use Apple's payment services with the iOS App Store.
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Adds FAS statement in paragraphs 5-6 MOSCOW, Feb 27 (Reuters) - U.S. tech giant Apple APPL.O has paid a 906 million rouble ($12.12 million) fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said on Monday. Apple, which did not immediately respond to a request for comment, has previously "respectfully disagreed" with a FAS ruling that Apple's distribution of apps through its iOS operating system gave its own products a competitive advantage. Apple paused all product sales in Russia a year ago, after Moscow despatched its armed forces to Ukraine, and limited its Apple Pay service in Russia.
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16967.0
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2023-02-27 00:00:00 UTC
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Dow Turns Red YTD: 5 Stocks in ETF Still in Green
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AAPL
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https://www.nasdaq.com/articles/dow-turns-red-ytd%3A-5-stocks-in-etf-still-in-green
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nan
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nan
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After a strong rally, Wall Street has lost momentum this month, with the Dow Jones logging in the fourth consecutive week of decline. The blue-chip index fell 3% last week, turning red from a year-to-date look. This marks the longest losing streak in 10 months (read: 5 Most Heavily Shorted ETFs So Far This Year).
SPDR Dow Jones Industrial Average ETF DIA, tracking the Dow Jones Index, is still up a modest 0.3% and most of the stocks have helped it to stay tall. These include American Express Company AXP, Salesforce Inc. CRM, The Goldman Sachs Group Inc. GS, Microsoft Corporation MSFT and Apple Inc. AAPL.
Hot economic data lately suggests stronger economic activity and have rekindled worries about a longer-than-expected Fed rate hike. U.S. consumer spending increased by the most in nearly two years in January amid a surge in wage gains, while inflation accelerated. Hiring surprisingly surged with the economy adding a solid 517,000 jobs in January. The unemployment rate fell from 3.5% to 3.4%, the lowest since 1969. Business activity unexpectedly rebounded in February, reaching its highest level in eight months, while U.S. builder confidence rose for the second consecutive month to the highest level since September 2022.
Meanwhile, Americans have been regaining confidence in the U.S. economy, with consumer sentiment in early February jumping to its highest level in 13 months, per the latest University of Michigan's consumer survey (read: 5 ETFs to Benefit as Monthly Inflation Drops to 2-Year Low).
Inflation has also come in hotter than expected. The Federal Reserve’s preferred inflation gauge accelerated in January at its fastest pace since June, an alarming sign that price pressures remain entrenched in the U.S. economy and could lead the Fed to keep raising interest rates well into this year. Earlier this month, per the government report, the consumer price index surged 0.5% in January following a 0.1% increase in December. It climbed 6.4% year over year, down from a peak of 9.1% in June but far above the Fed’s 2% inflation target.
Let’s take a closer look at the fundamentals of DIA and its performance.
DIA in Focus
This is one of the largest and most popular ETFs in the large-cap space, with AUM of $28.5 billion and an average daily volume of 3.5 million shares. Holding 30 blue chip stocks, the fund is widely spread across components, with each holding less than 10% share. Healthcare (19.8%), Information Technology (19.8%), Financials (17.1%), Industrials (14.9%), and Consumer Discretionary (13.6%) are the top five sectors. DIA charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Best Performing Stocks of DIA
American Express is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. The stock jumped about 12% over the past month and its earnings are expected to grow 13.7% this year.
American Express makes up for 3.5% of assets in DIA and has a Zacks Rank #3 (Hold). It has a VGM Score of B.
Salesforce is the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has risen 4.7% in a month and accounts for 3.3% in the fund’s basket.
Salesforce has an expected earnings growth rate of 18.9% for the fiscal year (ending January 2024). It has a Zacks Rank #2 (Buy).
Goldman Sachs is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. The stock makes up for 7.2% of assets in the DIA portfolio.
Goldman Sachs gained 4.5% in a month and has an expected earnings growth rate of 8.6% for this year. It has a Zacks Rank #3.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 80% of the market share for operating systems. MSFT gained 3% in a month and accounts for 5.1% in the fund’s basket (read: What Tech Crash? 5 Tech ETFs Up Double-Digit Past Month).
Microsoft is expected to see an earnings growth of 1.4% for the fiscal year (ending June 2023) and has a Zacks Rank #3.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. Shares of AAPL are up about 3% over the past month.
Apple’s earnings are expected to decline 1% for the fiscal year (ending September 2023). It accounts for a 3% share in DIA and has a Zacks ETF Rank of 3. It has a VGM Score of B.
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
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
SPDR Dow Jones Industrial Average ETF (DIA): 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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These include American Express Company AXP, Salesforce Inc. CRM, The Goldman Sachs Group Inc. GS, Microsoft Corporation MSFT and Apple Inc. AAPL. Shares of AAPL are up about 3% over the past month. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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These include American Express Company AXP, Salesforce Inc. CRM, The Goldman Sachs Group Inc. GS, Microsoft Corporation MSFT and Apple Inc. AAPL. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Shares of AAPL are up about 3% over the past month.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. These include American Express Company AXP, Salesforce Inc. CRM, The Goldman Sachs Group Inc. GS, Microsoft Corporation MSFT and Apple Inc. AAPL. Shares of AAPL are up about 3% over the past month.
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These include American Express Company AXP, Salesforce Inc. CRM, The Goldman Sachs Group Inc. GS, Microsoft Corporation MSFT and Apple Inc. AAPL. Shares of AAPL are up about 3% over the past month. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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16968.0
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2023-02-27 00:00:00 UTC
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After Hours Most Active for Feb 27, 2023 : NU, QQQ, CMCSA, GOOGL, AAPL, KBWB, AMZN, LUMN, OSH, PPL, NEM, COP
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-27-2023-%3A-nu-qqq-cmcsa-googl-aapl-kbwb-amzn-lumn-osh-ppl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 2.36 to 12,060.15. The total After hours volume is currently 77,202,552 shares traded.
The following are the most active stocks for the after hours session:
Nu Holdings Ltd. (NU) is +0.01 at $4.98, with 2,744,004 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.35 at $294.29, with 2,586,536 shares traded. This represents a 15.74% increase from its 52 Week Low.
Comcast Corporation (CMCSA) is unchanged at $37.35, with 2,481,017 shares traded. CMCSA's current last sale is 83.93% of the target price of $44.5.
Alphabet Inc. (GOOGL) is +0.01 at $89.88, with 2,358,700 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.23. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Apple Inc. (AAPL) is +0.18 at $148.10, with 2,079,463 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 $1.24. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco KBW Bank ETF (KBWB) is +0.181 at $56.40, with 1,880,000 shares traded. This represents a 18.74% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.01 at $93.75, with 1,816,100 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".
Lumen Technologies, Inc. (LUMN) is -0.03 at $3.37, with 1,735,724 shares traded., following a 52-week high recorded in today's regular session.
Oak Street Health, Inc. (OSH) is unchanged at $35.23, with 1,563,312 shares traded. OSH's current last sale is 95.22% of the target price of $37.
PPL Corporation (PPL) is unchanged at $27.55, with 1,356,714 shares traded. As reported by Zacks, the current mean recommendation for PPL is in the "buy range".
Newmont Corporation (NEM) is unchanged at $43.34, with 1,308,625 shares traded. NEM's current last sale is 76.04% of the target price of $57.
ConocoPhillips (COP) is +0.04 at $105.90, with 1,258,596 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $3.12. As reported by Zacks, the current mean recommendation for COP 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 +0.18 at $148.10, with 2,079,463 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Apple Inc. (AAPL) is +0.18 at $148.10, with 2,079,463 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Apple Inc. (AAPL) is +0.18 at $148.10, with 2,079,463 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is +0.18 at $148.10, with 2,079,463 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 2.36 to 12,060.15.
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16969.0
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2023-02-27 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): 2023 Could Be Its Most Exciting Year Yet
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-2023-could-be-its-most-exciting-year-yet
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nan
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nan
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It's been a tough slog for Apple (NASDAQ:AAPL) stock over the past year, with shares sinking over 30% at their worst. Even with a potential recession and more rate hikes to come, there are some reasons to believe that 2023 could be Apple's most interesting year yet.
Indeed, there are some catalysts, tailwinds, and innovations that could help Apple stock to buck the trend and move higher, even without help from the broader market. I am bullish.
Indeed, true innovation can help power earnings, even when the consumer is feeling a bit spent. As 2023 progresses, I think Apple will show us that it's innovating on many fronts.
A Few Innovations May Land in 2023
Recession or not, it's shaping up to be a pretty exciting 2023 for Apple, with a few intriguing innovations that may land over the coming months. According to Morgan Stanley (NYSE:MS), which is quite bearish on the broader market, Apple is its top hardware stock for the year.
Sure, macro headwinds could weigh heavily on demand for the latest and greatest consumer tech. Still, Morgan Stanley sees four catalysts that could kick in this year. A services re-acceleration, "pent-up demand" for the next iPhone, a mixed-reality headset launch, and a Hardware-as-a-Service type of model.
Indeed, pent-up demand for iPhone is a catalyst that could help Apple offset most of the recession headwinds on the horizon. Over the past few quarters, supply-side woes have really weighed Apple down. Still, there's a good chance that the supply headwinds of past quarters will result in some sort of push-forward in demand — the opposite of what we saw during early-2020 pandemic lockdowns.
Beyond iPhone 15, which may feature a titanium build, a services jolt and Apple's much-awaited move into headsets could be a significant boon for the stock.
On the services side, a hardware subscription could be Apple's biggest offering to date. It could "smoothen" out iPhone sales over time and could help consumers justify stepping up their purchases to a higher-tier iPhone, given easier-to-stomach monthly payments.
Apple may also have other services up its sleeves for the months ahead. This past week, Apple made headlines for progress with its prick-free blood glucose tracking capabilities that could be included in a future release of the Apple Watch. Such an innovation would make Apple one of the most exciting firms in the health space. Indeed, the medical device market is a fast-growing field that could be ripe for a disruptor like Apple to break into.
Apple may very well make a huge impact in the world of health, as it has in consumer hardware. In any case, such health innovations may pave the way for health-tracking services.
Only time will tell when Apple is ready to unveil such a breakthrough. Regardless, it's an exciting time to be an Apple shareholder with all the potential innovations trickling out of the rumor mill of late.
2023: The Year of the Apple Headset?
Apple's mixed-reality headset could be ready for an unveiling during its next WWDC meeting in the summer. Of course, there's a risk that the launch could be delayed further. Apple is known for only launching products that are incredibly polished and ready for prime time.
In any case, I do think the odds are high that 2023 is the year that Apple unveils its next big hardware innovation to the world. Headsets are expensive, and the mixed-reality space is still nascent.
Further, such a headset is likely to have top-of-the-line hardware, which means the headset could be incredibly costly, if not costlier than an iPhone. As a result, the headset launch may be less awe-inspiring than the iPhone launch in 2007 and more akin to an iPad or Apple Watch launch — one that draws intrigue but takes a few years to gain mass adoption.
Regardless, Apple's first splash into the headset world could cause many analysts covering the name to return to the drawing board again. The longer-term growth potential behind a headset is huge. The "metaverse" market could enjoy around 47% in CAGR through 2027, according to MarketsandMarkets.
Is AAPL Stock a Buy, According to Analysts?
Turning to Wall Street, AAPL stock is a Strong Buy. Out of 29 analyst ratings, there are 24 Buys and five Holds.
The average Apple stock price target is $171.94, implying upside potential of 13.3%. Analyst price targets range from a low of $125 per share to a high of $210 per share.
The Bottom Line on Apple Stock
Even if 2023 is another rough year for markets, Apple seems to have enough up its sleeves to separate itself from the pack. New innovations could inspire some to purchase the latest and greatest Apple product at the expense of other discretionary goods.
I view Apple as cheap at 24.9 times trailing earnings, even though the multiple is stretched from a historical standpoint. Given the company-specific tailwinds on the horizon, Apple may be ready to leave the rest of the market behind.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's been a tough slog for Apple (NASDAQ:AAPL) stock over the past year, with shares sinking over 30% at their worst. Is AAPL Stock a Buy, According to Analysts? Turning to Wall Street, AAPL stock is a Strong Buy.
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It's been a tough slog for Apple (NASDAQ:AAPL) stock over the past year, with shares sinking over 30% at their worst. Is AAPL Stock a Buy, According to Analysts? Turning to Wall Street, AAPL stock is a Strong Buy.
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It's been a tough slog for Apple (NASDAQ:AAPL) stock over the past year, with shares sinking over 30% at their worst. Is AAPL Stock a Buy, According to Analysts? Turning to Wall Street, AAPL stock is a Strong Buy.
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It's been a tough slog for Apple (NASDAQ:AAPL) stock over the past year, with shares sinking over 30% at their worst. Is AAPL Stock a Buy, According to Analysts? Turning to Wall Street, AAPL stock is a Strong Buy.
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16970.0
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2023-02-27 00:00:00 UTC
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Mimic Warren Buffett's Strategy With These 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/mimic-warren-buffetts-strategy-with-these-3-stocks
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nan
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nan
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Warren Buffett, also known as the Oracle of Omaha, is a name that jumps to the forefront of many minds when thinking of the financial world.
Many mimic his portfolio moves.
And recently, the Oracle of Omaha has been critical of those opposing share buybacks, as revealed in the latest shareholder letter.
Many have become weary of buybacks, with President Joe Biden fiercely opposing the practice by introducing a new 1% tax on the practice.
Of course, much more was discussed in the letter, including an update on operations and financial results.
Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple AAPL, Bank of America BAC, and Chevron CVX – would provide precisely that.
Below is a chart illustrating the year-to-date performance of all three stocks above, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Interestingly enough, the company recently unveiled a massive $75 billion share purchase program.
The surge in energy prices has amplified the company’s cash-generating abilities, with CVX reporting free cash flow of $8.6 billion in its latest quarter. This is further illustrated in the chart below.
Image Source: Zacks Investment Research
And, of course, the company’s dividend has benefited as well, with CVX’s payout growing by 6% over the last year. The company’s annual dividend currently yields a solid 3.7%.
Image Source: Zacks Investment Research
Apple
Buffett states that he loves the tech titan because of its customers’ brand loyalty; consumers are likely to trade in old Apple products for new ones.
The company snapped a streak of positive surprises in its latest release, falling short of the Zacks Consensus EPS Estimate by roughly 2% and reporting sales 3% below expectations.
Image Source: Zacks Investment Research
The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
Image Source: Zacks Investment Research
Apple shares presently trade at a 24.3X forward earnings multiple, a few ticks above the 23.6X five-year median and the Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
The stock currently has a Value Style Score of “D.”
Bank of America
Another one of the portfolio’s largest holdings, Bank of America, is one of the largest financial holding companies in the U.S.
The company’s TTM price-to-book ratio presently works out to be 1.1X, precisely in line with the five-year median and below highs of 1.7X in 2022.
Image Source: Zacks Investment Research
And similar to CVX, Bank of America rewards its shareholders nicely; the company’s annual dividend yields 2.6%, modestly above the Zacks Finance sector average.
Image Source: Zacks Investment Research
BAC posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 11% and posting revenue 2% above expectations.
Image Source: Zacks Investment Research
Bottom Line
Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway (BRK.B), a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and others.
And recently, his comments regarding share buybacks in an annual shareholder letter have made headlines during a time when many have become critical of the practice.
Although all may not agree with his statements, for those interested in looking past and structuring a portfolio similar to the Oracle of Omaha, all three stocks above – Apple AAPL, Bank of America BAC, and Chevron CVX – place you on the right track.
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : 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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Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple AAPL, Bank of America BAC, and Chevron CVX – would provide precisely that. Although all may not agree with his statements, for those interested in looking past and structuring a portfolio similar to the Oracle of Omaha, all three stocks above – Apple AAPL, Bank of America BAC, and Chevron CVX – place you on the right track. Image Source: Zacks Investment Research The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple AAPL, Bank of America BAC, and Chevron CVX – would provide precisely that. Image Source: Zacks Investment Research The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple AAPL, Bank of America BAC, and Chevron CVX – would provide precisely that. Image Source: Zacks Investment Research The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
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Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple AAPL, Bank of America BAC, and Chevron CVX – would provide precisely that. Image Source: Zacks Investment Research The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session. Although all may not agree with his statements, for those interested in looking past and structuring a portfolio similar to the Oracle of Omaha, all three stocks above – Apple AAPL, Bank of America BAC, and Chevron CVX – place you on the right track.
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16971.0
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2023-02-27 00:00:00 UTC
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The Only 3 Tech Stocks That Matter
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AAPL
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https://www.nasdaq.com/articles/the-only-3-tech-stocks-that-matter
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing in tech stocks is becoming increasingly popular as the stock market grows. With tech companies continuing to innovate and develop new products, tech stocks offer investors the potential for great returns, making them a great investment choice.
The stock market is full of opportunities. And investing in tech stocks can be one of the best ways to make money. By understanding the fundamentals of the stock market, investors can make informed decisions about which tech stocks to invest in and when to buy or sell them.
Unfortunately, tech stocks did not have the same strong showing in 2022 as usual. This trend has been somewhat unusual for the sector.
The stock market has been volatile over the past few months due to fears of a potential recession. This has caused investors to rotate from growth stocks to value stocks in search of great investments.
In particular, tech stocks have been hit hard as investors fear their high valuations may not be sustainable in a downturn. As such, many investors have shifted their focus to value stocks as they will likely be more resilient during an economic downturn.
Regardless, the technology sector has experienced short-term downturns for more than 10 years, and these have always been great buying opportunities. This situation is the same today, making it an ideal investment time.
Ticker Company Price
AAPL Apple $148.61
MSFT Microsoft $250.89
ACN Accenture $267.91
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is one of the most popular stocks on the market, and for a good reason. It has been a great investment for many investors, with its stock price increasing steadily.
It is also a leader in the tech industry, with its products and services used by millions worldwide.
Apple’s product range consists of a closed-off environment, known as a ‘walled garden,’ which offers comfort and convenience for consumers. Accessories such as AirPods, HomePods, and AirTags easily integrate into this ecosystem.
This makes the Apple experience highly attractive to customers since it encourages them to stay loyal for an extended period.
With a loyal customer base, a continuously expanding market, and reliable cashflows, it is no surprise that Apple has been particularly successful in using its capital. The company’s leadership has an impressive history of making and implementing strategic decisions.
Apple, like other technology companies, has been feeling the strain lately. Apple has maintained a steady workforce throughout the recent economic turmoil, unlike many competitors. However, Apple has been letting go of some of its contract workers over the last few days, the New York Post reported, citing people privy to the matter.
Meanwhile, Foxconn, or Hon Hai Precision (OTCPK:HNHPF), Apple’s primary partner for manufacturing, has reportedly just concluded a deal that would expand its presence in Vietnam.
In addition, Apple is speculated to release its first mixed-reality headset during its Worldwide Developers Conference in June.
Apple has many irons in the fire that will please its investors. Short-term issues won’t significantly affect investor perception for this one.
Microsoft Corp. (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft Corp. (NASDAQ:MSFT) is one of the most popular tech stocks on the market, and it is a great investment for any savvy investor. With its long history of success and innovation, Microsoft has become one of the most successful companies in the world.
Microsoft has shown resilience in the face of economic downturns, making it an attractive stock for investors looking for a safe bet.
With its strong foothold in different sectors, MSFT is certain to stay a major player for years to come.
In particular, Microsoft’s transition to cloud-based operations has had remarkable successes, offering vast potential for longevity in the marketplace. This strategy provides a strong foundation for future growth.
Microsoft’s overall income has been hugely supplemented by cloud-oriented businesses, with two-thirds of total revenue coming from it.
There have been numerous conversations about Microsoft’s possible $68.7 billion all-cash deal to purchase Activision Blizzard (NASDAQ:ATVI) amongst investors in recent months.
However, putting the deal to one side, there are other things to consider if you want to invest in MSFT.
In particular, Microsoft’s Azure cloud division continues to experience healthy growth. That will help balance the sluggishness of its gaming and personal computing divisions.
In its latest reported quarter, growth slowed to 31% from 35%. However, it is still double-digit growth amid a recessionary environment.
Microsoft has invested hugely in AI and is a leader in the sector. It has invested in OpenAI, the developer of ChatGPT technology. This technology has been utilized in many Microsoft products to make them better and more efficient for users.
The last half-year has been unfavorable for Microsoft shares, with a 7.62% decline – making it an optimal opportunity to buy more shares in this growing business.
Accenture (ACN)
Source: Tada Images/ShutterStock.com
Accenture (NYSE:ACN) is one of the most successful tech stocks in the stock market. It specializes in consulting and outsourcing services, and its stock has been one of the best-performing tech stocks over the past few years.
Accenture has a strong presence in many industries, including IT, healthcare, financial services, etc. Its success can be attributed to its focus on innovation, strategic partnerships, and customer service. Investing in Accenture is a great way to diversify your portfolio and benefit from its long-term growth prospects.
Despite a sluggish economic environment, Accenture should be able to sustain its business operations efficiently.
The company is supported by a loyal clientele, boasts a stable financial position, and generates superior earnings growth year after year.
Although Accenture faced a minor blip in 2022 due to Russia’s incursion into Ukraine, the company is confident that its strong employee base, valuable partnerships with software vendors, and continued business growth will generate positive results for investors in the long run.
Furthermore, Accenture has a proven track record of being generous to investors. Their commitment is visible as they plan to reward shareholders with a return of $7.1 billion through dividends and share repurchases in fiscal 2023.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post The Only 3 Tech Stocks That Matter 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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Ticker Company Price AAPL Apple $148.61 MSFT Microsoft $250.89 ACN Accenture $267.91 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most popular stocks on the market, and for a good reason. Meanwhile, Foxconn, or Hon Hai Precision (OTCPK:HNHPF), Apple’s primary partner for manufacturing, has reportedly just concluded a deal that would expand its presence in Vietnam. There have been numerous conversations about Microsoft’s possible $68.7 billion all-cash deal to purchase Activision Blizzard (NASDAQ:ATVI) amongst investors in recent months.
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Ticker Company Price AAPL Apple $148.61 MSFT Microsoft $250.89 ACN Accenture $267.91 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most popular stocks on the market, and for a good reason. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investing in tech stocks is becoming increasingly popular as the stock market grows. With tech companies continuing to innovate and develop new products, tech stocks offer investors the potential for great returns, making them a great investment choice.
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Ticker Company Price AAPL Apple $148.61 MSFT Microsoft $250.89 ACN Accenture $267.91 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most popular stocks on the market, and for a good reason. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investing in tech stocks is becoming increasingly popular as the stock market grows. With tech companies continuing to innovate and develop new products, tech stocks offer investors the potential for great returns, making them a great investment choice.
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Ticker Company Price AAPL Apple $148.61 MSFT Microsoft $250.89 ACN Accenture $267.91 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most popular stocks on the market, and for a good reason. With tech companies continuing to innovate and develop new products, tech stocks offer investors the potential for great returns, making them a great investment choice. By understanding the fundamentals of the stock market, investors can make informed decisions about which tech stocks to invest in and when to buy or sell them.
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16972.0
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2023-02-27 00:00:00 UTC
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Better Dividend Stock: Abbott Laboratories or Medtronic?
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AAPL
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https://www.nasdaq.com/articles/better-dividend-stock%3A-abbott-laboratories-or-medtronic
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nan
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nan
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Dividend stocks tend to outperform other asset classes during economically challenging times. The simple reason is that companies with mature businesses, and hence stable free cash flows, are typically less sensitive to economic headwinds.
The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. Despite both companies raising their dividends for over four straight decades, Abbott and Medtronic's shares actually sank faster than the broader markets over the course of 2022.
ABT data by YCharts.
Which of these beaten-down dividend stocks is the better buy right now? Let's dig deeper to find out.
The case for Abbott Laboratories
Abbott's stock price has struggled of late for four reasons:
An investigation into its infant formula business isn't sitting well with shareholders.
Declining COVID-19 product sales weighed heavily on its 2022 fourth-quarter financial results.
Apple's rumored development of a noninvasive glucose monitoring device (CGM) is a potential competitive threat to the company's Libre CGM franchise. Libre sales currently account for approximately 10% of Abbott's consolidated revenue.
Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio.
On the plus side of the ledger, Abbott is expected to return to top-line growth next year. Wall Street bulls think that newer medical devices like the transcatheter aortic valve implantation system Navitor and the chronic pain device Eterna can power the company past most, if not all, of these headwinds.
Dividend-wise, Abbott pays out an annualized yield of 2% at current levels, which is slightly higher than the average dividend-paying stock in the benchmark S&P 500 index. Its dividend also appears sustainable for the long haul based on the company's below-average payout ratio of 48%.
The case for Medtronic
Medtronic's stock took a step backward in 2022 due to supply chain issues, hospital staffing challenges, and a sharp uptick in patients delaying medical procedures due to the pandemic, among other headwinds beyond the company's control.
With most of these difficulties starting to ease, Wall Street analysts think the company's financial results ought to normalize over the balance of the current year. What's more, the medical device giant's bulls are optimistic that new product launches in cardiovascular care and diabetes could return it to mid-single-digit top-line growth in 2024.
On the dividend front, Medtronic has proven its dedication to rewarding loyal shareholders through its 45-year streak of consecutive payout increases. At current levels, the company also offers an above-average yield of 3.26%.
Medtronic's relatively high dividend yield is especially attractive in light of its bargain-basement valuation. While the average large-cap medical device company trades at over 45 times trailing earnings, Medtronic's stock is presently being valued at a far more modest price-to-earnings ratio of 27.9.
Now, Medtronic's payout ratio is on the high side at 87.8%. And while its return to top-line growth next year should improve this key metric, this elevated payout ratio does imply that future dividend increases might be modest in nature.
Verdict
Although Abbott and Medtronic both have fundamentally sound businesses, Medtronic is arguably the better dividend stock to buy right now. The medical device titan sports a substantially higher yield, and it comes with fewer question marks from a near-term growth standpoint.
Medtronic's rich history of annual dividend increases should also comfort any investors concerned about a possible payout reduction. The company's payout ratio, after all, should normalize as the medical procedure space ramps up post-COVID.
10 stocks we like better than Abbott Laboratories
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories 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
George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories 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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Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. While the average large-cap medical device company trades at over 45 times trailing earnings, Medtronic's stock is presently being valued at a far more modest price-to-earnings ratio of 27.9. And while its return to top-line growth next year should improve this key metric, this elevated payout ratio does imply that future dividend increases might be modest in nature.
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The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. 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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Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. The case for Medtronic Medtronic's stock took a step backward in 2022 due to supply chain issues, hospital staffing challenges, and a sharp uptick in patients delaying medical procedures due to the pandemic, among other headwinds beyond the company's control. Verdict Although Abbott and Medtronic both have fundamentally sound businesses, Medtronic is arguably the better dividend stock to buy right now.
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Now, Medtronic's payout ratio is on the high side at 87.8%. And while its return to top-line growth next year should improve this key metric, this elevated payout ratio does imply that future dividend increases might be modest in nature. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them!
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16973.0
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2023-02-27 00:00:00 UTC
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Apple supplier Foxlink halts production at Indian facility after massive fire
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxlink-halts-production-at-indian-facility-after-massive-fire
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nan
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nan
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By Munsif Vengattil
NEW DELHI, Feb 27 (Reuters) - Apple AAPL.O supplier Foxlink has halted production at its assembly facility in the Southern Indian state of Andhra Pradesh and evacuated 400 of its employees after a massive fire on Monday, two local government officials told Reuters.
Foxlink makes cables for iPhones. Roughly 50% of the machinery at the facility was damaged and half of the building collapsed, said J Ramanaiah, who leads the Disaster Response and Fire Services Department for Tirupati district in the state, where the incident occurred.
Management has estimated damage of 1 billion Indian rupees ($12 million) at the facility, he said, adding there were no casualties.
Apple did not immediately respond to a request for comment. An official for Foxlink did not respond to calls.
($1 = 82.7320 Indian rupees)
(Reporting by Munsif Vengattil in New Delhi, Editing by Louise Heavens and Sharon Singleton)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Munsif Vengattil NEW DELHI, Feb 27 (Reuters) - Apple AAPL.O supplier Foxlink has halted production at its assembly facility in the Southern Indian state of Andhra Pradesh and evacuated 400 of its employees after a massive fire on Monday, two local government officials told Reuters. Roughly 50% of the machinery at the facility was damaged and half of the building collapsed, said J Ramanaiah, who leads the Disaster Response and Fire Services Department for Tirupati district in the state, where the incident occurred. Management has estimated damage of 1 billion Indian rupees ($12 million) at the facility, he said, adding there were no casualties.
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By Munsif Vengattil NEW DELHI, Feb 27 (Reuters) - Apple AAPL.O supplier Foxlink has halted production at its assembly facility in the Southern Indian state of Andhra Pradesh and evacuated 400 of its employees after a massive fire on Monday, two local government officials told Reuters. Management has estimated damage of 1 billion Indian rupees ($12 million) at the facility, he said, adding there were no casualties. ($1 = 82.7320 Indian rupees) (Reporting by Munsif Vengattil in New Delhi, Editing by Louise Heavens and Sharon Singleton) ((munsif.vengattil@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Munsif Vengattil NEW DELHI, Feb 27 (Reuters) - Apple AAPL.O supplier Foxlink has halted production at its assembly facility in the Southern Indian state of Andhra Pradesh and evacuated 400 of its employees after a massive fire on Monday, two local government officials told Reuters. Roughly 50% of the machinery at the facility was damaged and half of the building collapsed, said J Ramanaiah, who leads the Disaster Response and Fire Services Department for Tirupati district in the state, where the incident occurred. ($1 = 82.7320 Indian rupees) (Reporting by Munsif Vengattil in New Delhi, Editing by Louise Heavens and Sharon Singleton) ((munsif.vengattil@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Munsif Vengattil NEW DELHI, Feb 27 (Reuters) - Apple AAPL.O supplier Foxlink has halted production at its assembly facility in the Southern Indian state of Andhra Pradesh and evacuated 400 of its employees after a massive fire on Monday, two local government officials told Reuters. Foxlink makes cables for iPhones. Roughly 50% of the machinery at the facility was damaged and half of the building collapsed, said J Ramanaiah, who leads the Disaster Response and Fire Services Department for Tirupati district in the state, where the incident occurred.
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16974.0
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2023-02-27 00:00:00 UTC
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US STOCKS-Wall Street climbs after worst weekly selloff of 2023
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-after-worst-weekly-selloff-of-2023
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nan
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nan
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By Sruthi Shankar
Feb 27 (Reuters) - U.S. stocks climbed on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about tighter monetary policies.
The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
The mood, however, was buoyant on Monday as U.S. Treasury yields slipped after a strong rally, lifting rate-sensitive growth stocks such Apple Inc AAPL.O and Amazon.com Inc AMZN.O more than 1%. US/
Tesla TSLA.O rallied 4% after the electric automaker said its plant in Brandenburg near Berlin was producing 4,000 cars a week, three weeks ahead of schedule according to a recent production plan reviewed by Reuters.
"We are looking at a relief rally today because the market was down so much last week," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"February historically is the second worst month of the year for the stock market. So investors are concluding from a seasonal perspective that maybe stocks could rally at least in the near term."
The yield on two-year notes US2YT=RR, the most sensitive to short-term rate expectations, slipped after touching a near four-month high earlier in the session. US/
Traders added to their bets of a 50-basis-point (bps) hike in March after data last week showed the Personal Consumption Expenditures price index, the metric by which the Fed measures its 2% inflation target, rose 5.4% last month.
Fed fund futures show traders have priced in a third 25 bps hikes this year and see rates peaking at 5.39% by September. FEDWATCH
At 9:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 200.27 points, or 0.61%, at 33,017.19, the S&P 500 .SPX was up 28.03 points, or 0.71%, at 3,998.07, and the Nasdaq Composite .IXIC was up 104.12 points, or 0.91%, at 11,499.06.
Data on Monday showed new orders for key U.S.-made capital goods increased more than expected in January but orders for durable goods that are meant to last three years or more fell more than forecast.
After last week's hawkish comments from the Fed policymakers, investors will turn to Fed Governor Philip Jefferson's speech later in the day.
Warren Buffett's Berkshire Hathaway Inc BRKa.N inched higher after it reported its highest-ever annual operating profit, even as foreign currency losses and rising rates led to lower earnings in the fourth quarter.
Seagen Inc SGEN.O surged 12.2% after the Wall Street Journal reported that Pfizer PFE.N was in early talks to acquire the biotech firm. Pfizer's shares slipped 1.1%.
U.S. railroad operator Union Pacific UNP.N jumped 9.6% as Chief Executive Lance Fritz said he would step down, a move that follows calls from hedge fund Soroban Capital Partners for his ouster.
Fisker Inc FSR.N soared 23.7% after the EV maker reported increased orders for its sports utility vehicle Ocean and maintained its production forecast for the year.
Advancing issues outnumbered decliners by a 4.29-to-1 ratio on the NYSE and 2.66-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and three new lows, while the Nasdaq recorded 37 new highs and 28 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The mood, however, was buoyant on Monday as U.S. Treasury yields slipped after a strong rally, lifting rate-sensitive growth stocks such Apple Inc AAPL.O and Amazon.com Inc AMZN.O more than 1%. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks climbed on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about tighter monetary policies. The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
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The mood, however, was buoyant on Monday as U.S. Treasury yields slipped after a strong rally, lifting rate-sensitive growth stocks such Apple Inc AAPL.O and Amazon.com Inc AMZN.O more than 1%. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks climbed on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about tighter monetary policies. Fed fund futures show traders have priced in a third 25 bps hikes this year and see rates peaking at 5.39% by September.
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The mood, however, was buoyant on Monday as U.S. Treasury yields slipped after a strong rally, lifting rate-sensitive growth stocks such Apple Inc AAPL.O and Amazon.com Inc AMZN.O more than 1%. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks climbed on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about tighter monetary policies. The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
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The mood, however, was buoyant on Monday as U.S. Treasury yields slipped after a strong rally, lifting rate-sensitive growth stocks such Apple Inc AAPL.O and Amazon.com Inc AMZN.O more than 1%. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks climbed on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about tighter monetary policies. Pfizer's shares slipped 1.1%.
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2023-02-27 00:00:00 UTC
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Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now-3
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Launched on 04/28/2015, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $1.24 billion, making it one of the largest ETFs in the Style Box - All Cap Value. LRGF seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index before fees and expenses.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for LRGF are 0.08%, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.71%.
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.
Representing 28.80% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Financials round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.34% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
LRGF's top 10 holdings account for about 20.12% of its total assets under management.
Performance and Risk
The ETF has added about 4.20% and is down about -2.14% so far this year and in the past one year (as of 02/27/2023), respectively. LRGF has traded between $36.22 and $45.54 during this last 52-week period.
The ETF has a beta of 0.98 and standard deviation of 25.79% for the trailing three-year period, making it a medium risk choice in the space. With about 334 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Equity Factor 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 $8.14 billion in assets, iShares Core S&P U.S. Value ETF has $13.05 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.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares 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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When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.34% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Launched on 04/28/2015, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.34% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 04/28/2015, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.34% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 04/28/2015, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.34% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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16976.0
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2023-02-27 00:00:00 UTC
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86% of Warren Buffett's $5.4 Billion Secret Portfolio Is Invested in Only 4 Stocks
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https://www.nasdaq.com/articles/86-of-warren-buffetts-%245.4-billion-secret-portfolio-is-invested-in-only-4-stocks
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing -- at least according to his track record. Since taking over as CEO in 1965, he's overseen a greater than 3,700,000% aggregate return in his company's Class A shares (BRK.A). Hypothetically, these shares could lose 99% of their value tomorrow and Buffett's company would still be handily outpacing the benchmark S&P 500's total return, including dividends paid, since 1965.
The Oracle of Omaha's long-term success has encouraged investors young and old to ride his coattails. This can be done relatively easily by tracking Berkshire Hathaway's trading activity via Form 13F filings with the Securities and Exchange Commission.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
A 13F is a required quarterly filing for institutional investors with at least $100 million in assets under management. It allows investors an under-the-hood look at what stocks, trends, industries, and sectors are intriguing the brightest and most-successful fund managers on Wall Street. But in Buffett's case, Berkshire Hathaway's 13F doesn't tell the complete story.
In 1998, Buffett's company acquired reinsurance giant General Re for $22 billion. At the time, General Re owned a specialty investment firm known as New England Asset Management (NEAM). When Berkshire Hathaway bought General Re, NEAM came with it and effectively became Warren Buffett's secret portfolio. Although Buffett doesn't oversee NEAM's investment activity as he does with Berkshire's $331 billion portfolio, what New England Asset Management holds stakes in is, effectively, owned by Buffett's company.
Since New England Asset Management has more than $5.4 billion in assets under management, it's required to file a quarterly 13F. What this latest filing showed is that Warren Buffett's secret portfolio is highly concentrated, with 86% of invested assets tied up in only four stocks (as of Dec. 31, 2022).
Apple: 48.92% of invested assets
Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Whereas it accounts for 41% of invested assets in Berkshire's $331 billion investment portfolio, it comprises nearly 49% of Buffett's secret portfolio.
Apple has been a continuous holding for New England Asset Management for the past 10 years. The reasons it accounts for almost half of invested assets probably has to do with its innovation and capital-return program.
In one respect, Apple's physical products have endeared hundreds of millions of people worldwide to its brand. Following the launch of 5G-capable iPhones in the U.S. a little over two years ago, Apple's share of the smartphone market rocketed higher and settled around the 50% mark.
However, Apple's future depends just as much, if not more, on its evolution as a services-oriented company. CEO Tim Cook and his management team are spearheading a transition that focuses on high-margin subscription services. As services grows into a larger percentage of net sales, the ebbs and flows Apple would experience from physical product replacement cycles should be minimized.
Apple is also a cash-flow powerhouse. It's generated more than $109 billion in operating cash flow over the trailing four quarters, is returning close to $14.6 billion to its shareholders each year via dividends, and has repurchased more than $550 billion of its common stock over the past decade.
Image source: Getty Images.
Chevron: 14.64% of invested assets
Energy stock Chevron (NYSE: CVX) has been an especially popular buy in Warren Buffett's secret portfolio. The oil and gas giant is closing in on a 15% share of invested assets and has been a continuous holding by NEAM for more than two decades.
The most logical reason for New England Asset Management to have nearly $800 million put to work in Chevron stock would be the expectation of elevated energy commodity prices. Although the spot price of natural gas has absolutely nosedived due to a warmer winter in parts of the U.S. and Europe, crude oil has held up quite well.
The thesis behind higher crude oil prices relates to Russia's invasion of Ukraine and the COVID-19 pandemic. While a lot of emphasis has been placed on Europe's energy demand needs following Russia's invasion of Ukraine, three years of capital underinvestment because of the pandemic is, arguably, a bigger issue. Increasing the global supply of oil will take time, which in the interim is helping to buoy the spot price of West Texas Intermediate and Brent crude.
It's worth pointing out that Chevron is an integrated operator. Though it generates its best margins from drilling, it also operates transmission pipelines, chemical plants, and refineries. These are segments that provide predictable cash flow and/or help to hedge against weaker crude oil prices.
Furthermore, Chevron capital-return program is pretty special. It recently raised its base annual payout for a 36th consecutive year and announced a share repurchase program that could total as much as $75 billion.
Bank of America: 13.88% of invested assets
Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). Money-center bank BofA has been a continuous holding for NEAM since the third quarter of 2017.
The attractiveness of bank stocks has to do with the predictability of the U.S. and global economy over time. Even though banks are cyclical and recessions are an inevitable part of the economic cycle, the U.S. and global economy tend to grow over long periods. With time as an ally, companies like Bank of America can focus on growing their loans and deposits and generate higher net income as the U.S. economy expands.
The most intriguing aspect about BofA is its interest rate sensitivity. With the Federal Reserve combatting historically high inflation by rapidly increasing interest rates, banks with outstanding variable-rate loans have seen their net-interest income rise. However, no bank is seeing a larger bump in net interest income than Bank of America, which recognized a $3.3 billion increase from the year-ago period during the fourth quarter.
Bank of America also deserves recognition for its aggressive investments in digitization. As of the end of 2022, 44 million people were active digital users -- that's up 6 million from three years earlier -- and 49% of total sales were completed online or via mobile app. It's much cheaper for banks when customers transact digitally, and it's allowing BofA the option to consolidate some of its physical branches to reduce its operating expenses.
HP: 8.15% of invested assets
The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ). Despite accounting for more than 8% of New England Asset Management's invested assets, it's been a holding for less than two years.
One of the lures of HP is that its operating model tends to be predictable. Putting aside the fact that PC sales surged during the pandemic and are now falling back to normalized levels, HP can generally count on predictable sales and cash flow from PCs and printing solutions each year.
To add to the above predictability, HP is also a value stock. During bear markets, investors tend to seek out highly profitable, time-tested businesses with relatively low price-to-earnings multiples. Even though HP's growth heyday is long gone, there's (presumably) a pretty safe floor beneath a company's stock that's valued at just 8 times forecast earnings in 2024.
Similar to the other companies on this list, HP has beefed up its capital-return program as a way to reward its long-term shareholders. HP used $4.3 billion of its cash during fiscal 2022 to repurchase 126 million shares of its common stock. It recently announced a 5% increase to its quarterly dividend as well.
While HP is far from an exciting investment, it provides stability at a time when the stock market can be whipsawed at a moment's notice.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. 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: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Increasing the global supply of oil will take time, which in the interim is helping to buoy the spot price of West Texas Intermediate and Brent crude. With time as an ally, companies like Bank of America can focus on growing their loans and deposits and generate higher net income as the U.S. economy expands.
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Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Bank of America: 13.88% of invested assets Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). HP: 8.15% of invested assets The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ).
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Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Bank of America: 13.88% of invested assets Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). HP: 8.15% of invested assets The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ).
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Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Although Buffett doesn't oversee NEAM's investment activity as he does with Berkshire's $331 billion portfolio, what New England Asset Management holds stakes in is, effectively, owned by Buffett's company. It's generated more than $109 billion in operating cash flow over the trailing four quarters, is returning close to $14.6 billion to its shareholders each year via dividends, and has repurchased more than $550 billion of its common stock over the past decade.
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2023-02-27 00:00:00 UTC
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Qualcomm, Android phone makers developing satellite messaging feature
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https://www.nasdaq.com/articles/qualcomm-android-phone-makers-developing-satellite-messaging-feature
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By Stephen Nellis
Feb 27 (Reuters) - Qualcomm Inc QCOM.O on Monday said it was working with a group of Android smartphone companies to add satellite-based messaging capabilities to their devices.
The San Diego, California-based company, which is the world's biggest supplier of chips that connect mobile phones to wireless data networks, said it is working with Honor, Lenovo-owned0992.HK Motorola, Nothing, OPPO, Vivo and Xiaomi Corp 1810.HK to develop the devices.
Satellite-based communications can send and receive data in remote or rural regions where other telecommunications networks are not available. Qualcomm announced that it was adding the capabilities to its chips earlier this year.
Qualcomm's work with Android device makers is likely to intensify competition between those brands and Apple Inc AAPL.O, which last year unveiled the ability to send emergency satellite messages as one of the flagship features of its newest iPhone lineup. Those new iPhones contain a chip from Qualcomm, though Apple told Reuters that they also contain custom hardware and software that are proprietary to Apple.
Qualcomm did not say when the new satellite messaging features from the Android smartphone brands named on Monday would become available. Earlier this year, Qualcomm said that some Android phones would have the features by the second half of this year.
(Reporting by Stephen Nellis in San Francisco; Editing by Lisa Shumaker)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Qualcomm's work with Android device makers is likely to intensify competition between those brands and Apple Inc AAPL.O, which last year unveiled the ability to send emergency satellite messages as one of the flagship features of its newest iPhone lineup. By Stephen Nellis Feb 27 (Reuters) - Qualcomm Inc QCOM.O on Monday said it was working with a group of Android smartphone companies to add satellite-based messaging capabilities to their devices. The San Diego, California-based company, which is the world's biggest supplier of chips that connect mobile phones to wireless data networks, said it is working with Honor, Lenovo-owned0992.HK Motorola, Nothing, OPPO, Vivo and Xiaomi Corp 1810.HK to develop the devices.
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Qualcomm's work with Android device makers is likely to intensify competition between those brands and Apple Inc AAPL.O, which last year unveiled the ability to send emergency satellite messages as one of the flagship features of its newest iPhone lineup. By Stephen Nellis Feb 27 (Reuters) - Qualcomm Inc QCOM.O on Monday said it was working with a group of Android smartphone companies to add satellite-based messaging capabilities to their devices. Qualcomm did not say when the new satellite messaging features from the Android smartphone brands named on Monday would become available.
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Qualcomm's work with Android device makers is likely to intensify competition between those brands and Apple Inc AAPL.O, which last year unveiled the ability to send emergency satellite messages as one of the flagship features of its newest iPhone lineup. By Stephen Nellis Feb 27 (Reuters) - Qualcomm Inc QCOM.O on Monday said it was working with a group of Android smartphone companies to add satellite-based messaging capabilities to their devices. The San Diego, California-based company, which is the world's biggest supplier of chips that connect mobile phones to wireless data networks, said it is working with Honor, Lenovo-owned0992.HK Motorola, Nothing, OPPO, Vivo and Xiaomi Corp 1810.HK to develop the devices.
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Qualcomm's work with Android device makers is likely to intensify competition between those brands and Apple Inc AAPL.O, which last year unveiled the ability to send emergency satellite messages as one of the flagship features of its newest iPhone lineup. By Stephen Nellis Feb 27 (Reuters) - Qualcomm Inc QCOM.O on Monday said it was working with a group of Android smartphone companies to add satellite-based messaging capabilities to their devices. Earlier this year, Qualcomm said that some Android phones would have the features by the second half of this year.
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16978.0
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2023-02-27 00:00:00 UTC
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Dutch warn against internet toll as EU looks to Big Tech to fund networks
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https://www.nasdaq.com/articles/dutch-warn-against-internet-toll-as-eu-looks-to-big-tech-to-fund-networks
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By Foo Yun Chee
BRUSSELS, Feb 27 (Reuters) - The Netherlands on Monday warned against hitting Big Tech with a so-called internet toll to help pay for billions of euros in network investments, saying such a move may breach net neutrality rules and lead to price hikes for Europeans.
The comments by Dutch Economic Affairs Minister Micky Adriaansens marked the first by an EU country after EU industry chief Thierry Breton kicked off a consultation last Thursday on who should foot the bill to roll out costly 5G and broadband.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have long lobbied for a Big Tech contribution and have found an ally in Breton, a former chief executive at Orange.
Among the companies that said an internet tax would undermine EU rules to treat all users equally are Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. These companies account for more than half of data internet traffic, according to telecom operators.
Adriaansens said the Dutch government had commissioned a study by economic consultancy Oxera which showed the drawbacks of such a tax.
"It will penalise the consumers," she told Reuters in an interview, saying that consumers who pay subscription fees to telecoms providers and also subscribe to streaming and video services may see the latter fees go up with Big Tech likely to pass on the internet tax.
"We should analyse the problem first and what the normal market reaction is to these challenges. The first one is the government in place to facilitate or are there other funds available or is it just the markets' responsibility to take care of this infrastructure?" Adriaansens said.
"I think that there is this concern that our infrastructure is not able to meet our expectations and our ambitions. So I understand that concern but I don't think that this is the way to go then, so fast," she said.
According to Oxera's study, Europe's telecoms providers have not been burdened with higher network costs despite the strong growth in internet data traffic. Oxera also found that these companies' operating profits have been boosted by network modernisation which has led to fewer employees and lower capital costs.
"Our analysis of the proposals for a levy shows that such a policy cannot robustly be shown to increase economic efficiency, and would potentially bring substantial transaction and set-up costs," the report said.
(Reporting by Foo Yun Chee in Brussels Editing by Matthew Lewis)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the companies that said an internet tax would undermine EU rules to treat all users equally are Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, Feb 27 (Reuters) - The Netherlands on Monday warned against hitting Big Tech with a so-called internet toll to help pay for billions of euros in network investments, saying such a move may breach net neutrality rules and lead to price hikes for Europeans. "Our analysis of the proposals for a levy shows that such a policy cannot robustly be shown to increase economic efficiency, and would potentially bring substantial transaction and set-up costs," the report said.
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Among the companies that said an internet tax would undermine EU rules to treat all users equally are Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, Feb 27 (Reuters) - The Netherlands on Monday warned against hitting Big Tech with a so-called internet toll to help pay for billions of euros in network investments, saying such a move may breach net neutrality rules and lead to price hikes for Europeans. These companies account for more than half of data internet traffic, according to telecom operators.
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Among the companies that said an internet tax would undermine EU rules to treat all users equally are Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, Feb 27 (Reuters) - The Netherlands on Monday warned against hitting Big Tech with a so-called internet toll to help pay for billions of euros in network investments, saying such a move may breach net neutrality rules and lead to price hikes for Europeans. The comments by Dutch Economic Affairs Minister Micky Adriaansens marked the first by an EU country after EU industry chief Thierry Breton kicked off a consultation last Thursday on who should foot the bill to roll out costly 5G and broadband.
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Among the companies that said an internet tax would undermine EU rules to treat all users equally are Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. Adriaansens said the Dutch government had commissioned a study by economic consultancy Oxera which showed the drawbacks of such a tax. The first one is the government in place to facilitate or are there other funds available or is it just the markets' responsibility to take care of this infrastructure?"
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16979.0
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2023-02-27 00:00:00 UTC
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US STOCKS-Wall Street set for opening gains after sharp weekly losses
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-opening-gains-after-sharp-weekly-losses
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nan
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By Sruthi Shankar
Feb 27 (Reuters) - U.S. stocks were set for a relief rally on Monday as investors found value in beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about restrictive monetary policies.
The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
Futures pointed to a recovery in sentiment on Monday as U.S. Treasury yields slipped after a strong rally. Rate-sensitive growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O climbed in premarket trading. US/
Tesla TSLA.O added 2.8% after the electric automaker said its plant in Brandenburg near Berlin was producing 4,000 cars a week, three weeks ahead of schedule according to a recent production plan reviewed by Reuters.
"We are looking at a relief rally today because the market was down so much last week," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"February historically is the second worst month of the year for the stock market. So investors are concluding from a seasonal perspective that maybe stocks could rally at least in the near term."
The yield on two-year notes US2YT=RR, the most sensitive to short-term rate expectations,slipped after touching a near four-month high earlier in the session. US/
Traders added to theirbets of a 50-basis-point (bps) hike in March after data last week showed the Personal Consumption Expenditures price index, the metric by which the Fed measures its 2% inflation target, rose 5.4% last month.
Fed fund futures show traders have priced in a third 25 bps hikes this year and see rates peaking at 5.38% by September. FEDWATCH
At 8:52 a.m. ET, Dow e-minis 1YMcv1 were up 235 points, or 0.72%, S&P 500 e-minis EScv1 were up 34 points, or 0.86%, and Nasdaq 100 e-minis NQcv1 were up 134.5 points, or 1.12%.
Data on Monday showed new orders for key U.S.-manufactured capital goods increased more than expected in January but orders for durable goods fell more than expected.
After last week's hawkish comments from the Fed policymakers, investors will turn to Fed Governor Philip Jefferson's speech later in the day.
Seagen Inc SGEN.O surged 13.2% after the Wall Street Journal reported that Pfizer PFE.N was in early talks to acquire the biotech firm. Pfizer's shares slipped 1.1%.
U.S. railroad operator Union Pacific UNP.N jumped 9.7% as Chief Executive Lance Fritz said he would step down, a move that follows calls from hedge fund Soroban Capital Partners for his ouster.
Fisker Inc FSR.N climbed 9.2% after the EV maker reported increased orders for its sports utility vehicle Ocean and maintained its production forecast for the year.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O climbed in premarket trading. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks were set for a relief rally on Monday as investors found value in beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about restrictive monetary policies. The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
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Rate-sensitive growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O climbed in premarket trading. Fed fund futures show traders have priced in a third 25 bps hikes this year and see rates peaking at 5.38% by September. ET, Dow e-minis 1YMcv1 were up 235 points, or 0.72%, S&P 500 e-minis EScv1 were up 34 points, or 0.86%, and Nasdaq 100 e-minis NQcv1 were up 134.5 points, or 1.12%.
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Rate-sensitive growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O climbed in premarket trading. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks were set for a relief rally on Monday as investors found value in beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about restrictive monetary policies. The blue-chip Dow .DJI erased its gains for the year in Friday's selloff and the S&P 500 .SPX logged its third straight week of losses on fears of that a strong U.S. economy and high inflation will give the Fed more room to raise rates.
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Rate-sensitive growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O climbed in premarket trading. By Sruthi Shankar Feb 27 (Reuters) - U.S. stocks were set for a relief rally on Monday as investors found value in beaten-down shares after the main benchmarks suffered their worst weekly selloff this year on worries about restrictive monetary policies. Futures pointed to a recovery in sentiment on Monday as U.S. Treasury yields slipped after a strong rally.
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16980.0
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2023-02-27 00:00:00 UTC
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E-Commerce Sales Set to Hit New Highs: 4 Stocks to Buy
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AAPL
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https://www.nasdaq.com/articles/e-commerce-sales-set-to-hit-new-highs%3A-4-stocks-to-buy
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E-commerce has played a major role in driving retail sales ever since the onset of the pandemic. Although life has bounced back to normal, the spending habit of consumers has changed drastically over the past couple of years, with an increasing number of people shopping online.
Be it consumer staples, discretionary items, or consumer durable goods, people are today more confident making their purchases online. This has also made retailers’ online shopping and delivery arms stronger. Given this scenario, stocks like Tapestry, Inc. TPR, Costco Wholesale Corporation COST, Conagra Brands, Inc. CAG and General Mills, Inc. GIS are likely to benefit in the near term.
Online Shopping Boosts Retail Sales
The Commerce Department reported that retail sales rose 3% month over month in January, surpassing economists’ expectations of a jump of 1.9%. E-commerce once again played a major role in driving overall retail sales, as online sales grew 1.3% month over month.
E-commerce has emerged as the most popular mode of shopping. Millions of people chose to shop from home throughout the pandemic due to fears of contracting the COVID-19 virus. They finally understood the benefits of online purchasing as a result of this. Since then, the tendency has prevailed and significantly aided the retail industry.
This comes as e-commerce retail sales crossed the $1 trillion mark for the first time in 2022. According to ComScore’s annual State of Digital Commerce report, online sales hit $1.09 trillion in 2022, climbing 11% from $904.3 billion recorded in 2021. Overall online sales increased 18% year over year in the fourth quarter.
E-Commerce Poised to Grow
People have been shopping online for years but e-commerce got a boost only after the pandemic, and since then, it has been capturing more market share almost every day. According to a Forbes report, 20.8% of overall retail purchases are expected to be done online in 2023.
A physical presence is thus no longer a top priority, with retailers shifting focus toward having a solid web presence that will allow a low barrier to entry for consumers. The report also mentions that 24% of retail purchases will be online by 2026.
E-commerce sales are expected to grow 10.3% in 2023, while the global e-commerce market is poised to hit $6.3 trillion in 2023. The U.S. e-commerce market, in particular, is expected to hit $8.1 trillion by 2026.
The report further mentions that the big brands will continue to dominate the online space. At present, Amazon.com, Inc. AMZN accounts for 37.8% of the overall online sales, followed by Walmart, Inc. WMT, Apple, Inc. AAPL and eBay, Inc. EBAY.
Our Choices
This is, thus, the right opportunity to invest in retail stocks that have a strong online presence.
Tapestry, Inc. is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
Tapestry’sexpected earnings growth rate for the current year is 7.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. TPR presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco Wholesale Corporation sells high volumes of food and general merchandise (including household products and appliances) at discounted prices through membership warehouses. Costco is one of the largest warehouse club operators in the United States. COST also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
Costco Wholesale Corporation’s expected earnings growth rate for the current year is 18%. The Zacks Consensus Estimate for current-year earnings improved 0.8% over the past 60 days. COST has a Zacks Rank #2.
Conagra Brands, Inc. is one of the leading branded food companies in North America. CAG offers premium edible products with a refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of the end-users.
Conagra Brands’ expected earnings growth rate for the current year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. CAG presently sports a Zacks Rank #1.
General Mills, Inc. is a global manufacturer and marketer of branded consumer foods sold through retail stores. GIS also serves the foodservice and commercial baking industries. General Mills’ principal product categories include ready-to-eat cereals, convenient meals, snacks (including grain, fruit and savory snacks, nutrition bars, and frozen hot snacks), super-premium ice creams, as well as baking mixes and ingredients.
General Mills’ expected earnings growth rate for the current year is 6.1%. The Zacks Consensus Estimate for General Mills’current-year earnings has improved 1.5% over the past 60 days. GIS has a Zacks Rank #2.
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 >>
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
Walmart Inc. (WMT) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Conagra Brands (CAG) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : 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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At present, Amazon.com, Inc. AMZN accounts for 37.8% of the overall online sales, followed by Walmart, Inc. WMT, Apple, Inc. AAPL and eBay, Inc. EBAY. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Although life has bounced back to normal, the spending habit of consumers has changed drastically over the past couple of years, with an increasing number of people shopping online.
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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 Walmart Inc. (WMT) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. At present, Amazon.com, Inc. AMZN accounts for 37.8% of the overall online sales, followed by Walmart, Inc. WMT, Apple, Inc. AAPL and eBay, Inc. EBAY. Given this scenario, stocks like Tapestry, Inc. TPR, Costco Wholesale Corporation COST, Conagra Brands, Inc. CAG and General Mills, Inc. GIS are likely to benefit in the near term.
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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 Walmart Inc. (WMT) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. At present, Amazon.com, Inc. AMZN accounts for 37.8% of the overall online sales, followed by Walmart, Inc. WMT, Apple, Inc. AAPL and eBay, Inc. EBAY. Online Shopping Boosts Retail Sales The Commerce Department reported that retail sales rose 3% month over month in January, surpassing economists’ expectations of a jump of 1.9%.
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At present, Amazon.com, Inc. AMZN accounts for 37.8% of the overall online sales, followed by Walmart, Inc. WMT, Apple, Inc. AAPL and eBay, Inc. EBAY. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Given this scenario, stocks like Tapestry, Inc. TPR, Costco Wholesale Corporation COST, Conagra Brands, Inc. CAG and General Mills, Inc. GIS are likely to benefit in the near term.
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16981.0
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2023-02-26 00:00:00 UTC
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Warren Buffett's, Bill Ackman's, and Michael Burry's Portfolios All Have 1 Thing In Common
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-bill-ackmans-and-michael-burrys-portfolios-all-have-1-thing-in-common
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nan
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If we're talking about great investors, three names that immediately come to mind are Warren Buffett, Bill Ackman, and Michael Burry.
Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) have routinely beaten the market since Buffett took over the company in 1965. Ackman and his fund Pershing Square Capital Management have generated 17% annualized returns since the fund launched in 2004. And Burry is famous for his call that the housing bubble would collapse prior to the Great Recession, a bet that would yield him and his investors an $800 million profit.
Yes, all three of these investors have a proven track record and decades of experience. But if you look at all three of their portfolios, you'll also notice one common trait.
They don't preach diversification
Common investing advice you've probably heard time and time again is to diversify your portfolio. That way if one of your companies goes out of business, you are not completely exposed to its stock. Don't have all of your eggs in one basket.
Image source: The Motley Fool.
But Buffett, Ackman, and Burry really throw this conventional wisdom out the window. Berkshire reports owning 49 stocks and invests hundreds of billions into these assets. But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX).
Ackman and Pershing Square have a much smaller portfolio than Berkshire. It's valued at around $9 billion, but there are only six stocks in it. The home improvement retailer Lowe's (NYSE: LOW) makes up more than 23% of the portfolio.
Finally, Burry's fund Scion Asset Management is much, much smaller than Berkshire or Pershing and is currently valued at about $47 million. The fund only owns nine stocks, and the government service provider GEO Group (NYSE: GEO) makes up about a quarter of the portfolio.
So none of these great investors seem to really worry about diversification too much. Buffett has even said he's not a big fan of the practice. "You know, we think diversification is -- as practiced generally -- makes very little sense for anyone that knows what they're doing... it is a protection against ignorance," the Oracle of Omaha has famously said.
Buffett has also been a big believer in seizing opportunity and going in big when you see the market pricing a stock incorrectly, because these opportunities do not present themselves every day.
Should you follow their lead?
While many might perceive Buffett's quote on diversification as arrogant or elitist, I think it's important for investors to really heed his advice.
If you are a retail investor, work a full-time job, and have a family, then there's a good chance you simply do not have the time or resources to put in the required research to go all in on just a few stocks.
So when you invest, you may not have a complete 360-degree view of an individual company and all the different scenarios it may face under various economic conditions. That doesn't mean you can't do a lot of research and arrive at an informed thesis that leads you to invest. It just means you may want to protect against some downside, in which case diversification makes a lot of sense.
But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds. But this is why they make the big bucks and regularly beat the market.
10 stocks we like better than Berkshire Hathaway
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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 Lowe's Companies 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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But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). If we're talking about great investors, three names that immediately come to mind are Warren Buffett, Bill Ackman, and Michael Burry. And Burry is famous for his call that the housing bubble would collapse prior to the Great Recession, a bet that would yield him and his investors an $800 million profit.
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But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). The home improvement retailer Lowe's (NYSE: LOW) makes up more than 23% of the portfolio. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). They don't preach diversification Common investing advice you've probably heard time and time again is to diversify your portfolio. But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds.
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16982.0
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2023-02-26 00:00:00 UTC
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2 Monster Metaverse Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/2-monster-metaverse-stocks-to-buy-for-the-long-haul-5
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nan
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Given the recent performance, investors may understandably have lost interest in the metaverse. Facebook parent Meta Platforms continues to make massive investments in this virtual world. But with revenue in its metaverse-driven segment Reality Labs declining in 2022, investors appear to have cooled to its virtual world.
Nonetheless, given its ability to help users understand the natural world better, the metaverse continues to hold tremendous potential to drive revenue growth. Two companies that could prosper amid these improved perceptions are Apple (NASDAQ: AAPL) and Unity Software (NYSE: U).
Apple
Apple has become more of a metaverse-oriented company than some might assume. As the world's largest augmented reality (AR) platform, it has manufactured hundreds of millions of AR-capable devices and thousands of apps.
Now, it appears positioned to take this technology one step further. According to multiple reports, its headset, which is currently in development, does not utilize a controller. Instead, it relies on hand and eye-tracking technology to detect movement.
Admittedly, at a rumored retail cost of $3,000, it may only attract serious attention from high-end consumers. However, if rumors of a cheaper second-generation model also prove true, it presents a serious challenge to Meta, which appears to have become reliant on this space to develop a new growth engine.
Moreover, Apple's headset would become the first new product since it released the Apple Watch in 2015, a factor that could invigorate Apple's revenue. At $117 billion for the first quarter of fiscal 2023 (which ended Dec. 31), revenue fell for the first time since 2019, dropping 5% year over year. The decline was caused primarily by a drop in product sales, which fell by 8%.
Nonetheless, Apple stock held up relatively well amid the tech bear market of 2022, falling by less than 10% as many tech stocks lost most of their value. Also, its price-to-earnings (P/E) ratio of 25 has dropped steadily from a peak of over 40 at the height of the pandemic. Given these conditions, a metaverse-driven product may just be what Apple needs to reinvigorate growth.
Unity Software
For investors up for a riskier stock, Unity's real-time development platform has evolved into one of the primary building blocks of the metaverse. Its development software is likely best known as a gaming-development platform. However, the metaverse is likely the platform where Unity will reach beyond gaming, helping it to target industries such as architecture, automotive, and film.
Additionally, Unity acquired app-development company ironSource in November. Through ironSource, Unity can now make the game-development process more interactive. Consequently, developers can gain much faster feedback from players, making it easier to create games that customers actually want.
Still, for all that promise, the software-as-a-service (SaaS) stock became one of the more notable victims of the bear market, and the stock fell by almost 90% from its 2021 high.
Also, the recent financials probably make it more of a buy for the long term. The $1.4 billion in revenue that the company generated in 2022 was a 25% increase from 2021. However, the customer count for those who spend more than $100,000 appears to have experienced flat growth last year, putting aside the ironSource acquisition. Revenue growth also did not prevent the company's net loss from increasing to $919 million from $533 million in 2021.
Such news implies the stock will struggle in the near term and, due to the lack of GAAP profitability, will not give Unity a P/E ratio. However, at a price-to-sales (P/S) ratio of 7, its valuation is just above its record lows. That lower valuation may help ease the pain of going into a stock that's admittedly more speculative. But considering Unity's increasingly critical role in the metaverse, a buy right now could bring outsized gains later.
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 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. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two companies that could prosper amid these improved perceptions are Apple (NASDAQ: AAPL) and Unity Software (NYSE: U). Nonetheless, given its ability to help users understand the natural world better, the metaverse continues to hold tremendous potential to drive revenue growth. As the world's largest augmented reality (AR) platform, it has manufactured hundreds of millions of AR-capable devices and thousands of apps.
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Two companies that could prosper amid these improved perceptions are Apple (NASDAQ: AAPL) and Unity Software (NYSE: U). Facebook parent Meta Platforms continues to make massive investments in this virtual world. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software.
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Two companies that could prosper amid these improved perceptions are Apple (NASDAQ: AAPL) and Unity Software (NYSE: U). Nonetheless, Apple stock held up relatively well amid the tech bear market of 2022, falling by less than 10% as many tech stocks lost most of their value. Unity Software For investors up for a riskier stock, Unity's real-time development platform has evolved into one of the primary building blocks of the metaverse.
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Two companies that could prosper amid these improved perceptions are Apple (NASDAQ: AAPL) and Unity Software (NYSE: U). Unity Software For investors up for a riskier stock, Unity's real-time development platform has evolved into one of the primary building blocks of the metaverse. Also, the recent financials probably make it more of a buy for the long term.
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16983.0
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2023-02-26 00:00:00 UTC
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Better Buy: Apple Stock vs. Disney Stock
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-stock-vs.-disney-stock-0
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nan
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nan
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After a challenging 2022, when countless companies suffered steep stock declines, 2023 has seen Wall Street rally over industries that fell out of favor last year. For instance, the entertainment and tech industries have attracted bullish investors, with market leaders Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) seeing their stocks rise about 17% and 14%, respectively, since Jan. 1. That's after Apple's stock fell roughly 27% and Disney's 44% in 2022.
These companies are leaders in their respective industries while also in direct competition in streaming. As Apple and Disney's stocks show signs of recovery, now is an excellent time to consider investing. So which is the better buy? Let's take a look.
Apple: The king of reliability
Last year, the Nasdaq-100 Technology Sector index fell 40%, while Apple's more moderate decline of 27% meant it outperformed peers like Alphabet and Amazon, which saw their stocks plunge by 38% and 49% respectively. As a result, the iPhone company proved its resilience last year, with macroeconomic strains hitting its competitors harder.
An innovative technology stock, Apple climbed about 247% in the last five years and 832% in the last decade. Meanwhile, revenue increased by 48% to $394.33 billion since 2018, and operating income soared 68% to $119.44 billion. The company's consistent growth has gained it a reputation for reliability, which safeguards its stock in the case of dismal quarterly results.
For example, in the first quarter of 2023, Apple reported its first quarterly revenue decline since 2019, with revenue falling 5.5% year over year to $117.15 billion and missing analysts' forecasts by $4.5 billion. While a quarterly miss will often send a company's stock tumbling, Apple shares rose 6% in the week after its earnings release.The company's consistent growth over the long term makes temporary headwinds inconsequential to many of its investors.
Regarding the next year, Apple has some promising developments, which include a reported venture into the virtual/augmented reality (VR/AR) markets with the release of a new headset and other updates to its product lineup. The AR and VR market is projected to reach $31.12 billion in 2023 and hit $52.05 billion by 2027, expanding at a compound annual growth rate of 13.72%.
With potentially lucrative projects in the works and reliable growth over the long term, Apple always feels like a smart investment.
Disney: A box office smash
Disney's Q1 2023 was a mixed bag, with revenue of $23.51 billion rising 7.7% year over year and beating Wall Street forecasts by $230 million. However, the quarter was tainted by a loss of 2.4 million subscribers on Disney+ when its biggest competitor, Netflix, gained more than 7 million new members in the same period.
Despite the mixed quarter, Disney has started the year with a bang after a massive hit at the box office. Avatar: The Way of Water overtook 1997's Titanic as the third-highest-grossing movie of all time this month, having earned $2.24 billion globally so far.
According to Variety, Disney and 20th Century spent about $460 million producing and promoting the Avatar sequel, suggesting the company's entertainment segment can likely expect a significant boost to earnings in its current quarter. The profit bump is positive, considering Disney's latest quarter saw the segment report $10 million in operating losses after a costly investment in streaming content.
Disney has had a rough few years, with the pandemic depleting box office and parks revenue in 2020 and 2021, then economic headwinds in 2022 straining the company's expensive streaming venture. As a result, Disney's stock declined by about 2.8% in the last five years and rose by 88% in the last 10 years.
A solid return of park guests and theater audiences suggests the House of Mouse is back on the path to growth. However, Apple's strength amid economic declines, its history of consistent long-term growth, and lucrative developments in its future make it the better stock. Additionally, Apple's price-to-earnings ratio of 22 compared to Disney's 47 makes its stock a far better value right now.
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 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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For instance, the entertainment and tech industries have attracted bullish investors, with market leaders Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) seeing their stocks rise about 17% and 14%, respectively, since Jan. 1. According to Variety, Disney and 20th Century spent about $460 million producing and promoting the Avatar sequel, suggesting the company's entertainment segment can likely expect a significant boost to earnings in its current quarter. Disney has had a rough few years, with the pandemic depleting box office and parks revenue in 2020 and 2021, then economic headwinds in 2022 straining the company's expensive streaming venture.
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For instance, the entertainment and tech industries have attracted bullish investors, with market leaders Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) seeing their stocks rise about 17% and 14%, respectively, since Jan. 1. For example, in the first quarter of 2023, Apple reported its first quarterly revenue decline since 2019, with revenue falling 5.5% year over year to $117.15 billion and missing analysts' forecasts by $4.5 billion. Disney: A box office smash Disney's Q1 2023 was a mixed bag, with revenue of $23.51 billion rising 7.7% year over year and beating Wall Street forecasts by $230 million.
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For instance, the entertainment and tech industries have attracted bullish investors, with market leaders Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) seeing their stocks rise about 17% and 14%, respectively, since Jan. 1. For example, in the first quarter of 2023, Apple reported its first quarterly revenue decline since 2019, with revenue falling 5.5% year over year to $117.15 billion and missing analysts' forecasts by $4.5 billion. While a quarterly miss will often send a company's stock tumbling, Apple shares rose 6% in the week after its earnings release.The company's consistent growth over the long term makes temporary headwinds inconsequential to many of its investors.
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For instance, the entertainment and tech industries have attracted bullish investors, with market leaders Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) seeing their stocks rise about 17% and 14%, respectively, since Jan. 1. For example, in the first quarter of 2023, Apple reported its first quarterly revenue decline since 2019, with revenue falling 5.5% year over year to $117.15 billion and missing analysts' forecasts by $4.5 billion. As a result, Disney's stock declined by about 2.8% in the last five years and rose by 88% in the last 10 years.
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16984.0
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2023-02-25 00:00:00 UTC
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Validea Guru Fundamental Report for AAPL - 2/25/2023
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AAPL
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-2-25-2023
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nan
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nan
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Below is Validea's daily 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
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.
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 daily 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 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 daily 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 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 daily guru fundamental report for APPLE INC (AAPL).
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Below is Validea's daily 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. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time.
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16985.0
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2023-02-25 00:00:00 UTC
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Buffett's Berkshire posts record annual operating profit
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-posts-record-annual-operating-profit
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nan
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nan
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By Jonathan Stempel
Feb 25 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday reported its highest-ever annual operating profit, even as foreign currency losses and lower gains from investments caused fourth-quarter profit to fall.
Buffett called 2022 a "good year" for Berkshire in his annual shareholder letter after the conglomerate's dozens of businesses generated $30.8 billion of profit despite rising inflation and supply chain disruptions, including from the war in Ukraine.
Berkshire also bulked up its cash hoard, ending the year with $128.6 billion.
The Omaha, Nebraska-based conglomerate sold about $16.3 billion of stocks in the fourth quarter and found better value repurchasing its own shares, buying back $2.6 billion in the quarter and $7.9 billion for all of 2022.
Berkshire shareholders "trust us to treat their money as we do our own," Buffett said in his letter. "And that is a promise we can make."
Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion.
Results included about $1.2 billion of currency losses and more underwriting losses at the car insurer Geico, which has struggled more than some rivals with accident claims and properly pricing policies to reflect risk.
Profit also fell at the BNSF railroad, while Berkshire generated more profit from its energy businesses and more income from its insurance investments as interest rates rose.
Quarterly net income fell 54% to $18.16 billion, or $12,412 per Class A share, from $39.65 billion, or $26,690 per share, a year earlier.
For all of 2022, Berkshire lost $22.82 billion, largely because of losses in its $308.8 billion common stock portfolio.
Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc AAPL.O and Bank of America Corp BAC.N, regardless of what Berkshire buys or sells.
A dearth of new investments helps explain how Berkshire boosted its cash stake despite having spent $11.5 billion in the fourth quarter to buy the insurance company Alleghany Corp.
That purchase helped Berkshire boost insurance "float," which reflects premiums collected up front before claims are paid and help fund growth, 12% last year to $164.1 billion.
"We're delighted to see the growth in float," said Thomas Russo, a partner at Gardner Russo & Quinn who helps invest $8 billion, about 17% of which is in Berkshire stock. "Buffett often describes float as more important than cash."
Berkshire also spent $8.2 billion on Jan. 31 to boost its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%.
Berkshire's share price rose 4% in 2022, far outpacing the Standard & Poor's 500 .SPX which fell 18% including dividends, and reflecting Berkshire's status as a defensive investment in rocky markets.
The shares have fallen 1.5% in 2023, while the index is up 3.4%.
(Reporting by Jonathan Stempel in New York Editing by Mark Potter and Diane Craft)
((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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Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc AAPL.O and Bank of America Corp BAC.N, regardless of what Berkshire buys or sells. Buffett called 2022 a "good year" for Berkshire in his annual shareholder letter after the conglomerate's dozens of businesses generated $30.8 billion of profit despite rising inflation and supply chain disruptions, including from the war in Ukraine. Berkshire also spent $8.2 billion on Jan. 31 to boost its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%.
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Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc AAPL.O and Bank of America Corp BAC.N, regardless of what Berkshire buys or sells. Buffett called 2022 a "good year" for Berkshire in his annual shareholder letter after the conglomerate's dozens of businesses generated $30.8 billion of profit despite rising inflation and supply chain disruptions, including from the war in Ukraine. Quarterly net income fell 54% to $18.16 billion, or $12,412 per Class A share, from $39.65 billion, or $26,690 per share, a year earlier.
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Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc AAPL.O and Bank of America Corp BAC.N, regardless of what Berkshire buys or sells. The Omaha, Nebraska-based conglomerate sold about $16.3 billion of stocks in the fourth quarter and found better value repurchasing its own shares, buying back $2.6 billion in the quarter and $7.9 billion for all of 2022. Quarterly net income fell 54% to $18.16 billion, or $12,412 per Class A share, from $39.65 billion, or $26,690 per share, a year earlier.
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Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc AAPL.O and Bank of America Corp BAC.N, regardless of what Berkshire buys or sells. Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion. Quarterly net income fell 54% to $18.16 billion, or $12,412 per Class A share, from $39.65 billion, or $26,690 per share, a year earlier.
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16986.0
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2023-02-25 00:00:00 UTC
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A Bull Market Is Coming: 3 Reasons to Buy Apple Stock
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-reasons-to-buy-apple-stock
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) are up 14% year to date, outperforming the 4% return of the S&P 500 index. There are good reasons Apple stock is leading the market higher in 2023. iPhone demand has held up better than Wall Street expected given the macroeconomic headwinds. Most importantly, Apple appears set to introduce new revenue streams over the next several years that could send its stock much higher.
Let's dive deeper into why you should buy Apple stock before the next bull market.
1. Strong outlook for iPhone sales
Apple has seen steady growth over the past several years. But even though total revenue in the most recent quarter is up 28% compared to the same period three years ago, investors have been concerned about supply chain constraints and lower shipments in China weighing on iPhone revenue. In its fiscal first quarter, ended in December, the company reported revenue of $117 billion, which was down 5% year over year, with iPhone revenue down 8%.
AAPL Revenue (Quarterly) data by YCharts.
Demand for the new iPhone 14 lineup has been strong, but sales were weighed down by supply shortages last quarter. However, improving supply in China is expected to drive more growth from Apple's best-selling product in the near term.
UBS analyst David Vogt estimates that China smartphone shipments in December were down 18% compared to a 30% increase in the same period in the previous year. But Apple's iPhone shipments in China outperformed the rest of the market, rising 88% in December over November's totals.
The recovery in China sets up an acceleration in iPhone revenue growth next quarter. Management is guiding for total revenue to be in line with the quarter ended in December. For iPhone, specifically, Apple expects revenue to accelerate over the December quarter's year-over-year growth rate.
2. Growing demand for apps and subscriptions
Apple's services revenue rose just 6% year over year, compared to a robust 24% increase in the year-ago quarter. That might have disappointed some investors, but as we saw with iPhone, Apple is doing much better here than its headline number suggests.
One of the largest drives of Apple's services business is advertising, which makes up an estimated 60% of services revenue, according to Bernstein analyst Toni Sacconaghi. Investors can blame the weak ad market for Apple's soft services performance, but demand for Apple's non-advertising services is doing just fine.
Apple's services revenue came to $20.8 billion in the last quarter, which was better than management expected. In fact, App Store subscriptions grew by double-digit percentages, with revenue achieving all-time highs in cloud and payment services.
Apple's growing installed base of devices, now over 2 billion, should become an increasingly important growth driver for the company -- which is another catalyst for the stock.
3. Optionality
The latest reports have Apple unveiling its long-rumored mixed-reality headset in June at its annual developers' conference. Other reports say Apple is deep into developing a self-driving car using its in-house chip design. Whatever is going on, Apple's annual research and development (R&D) expense has more than doubled over the past five years to $27 billion. The company is investing in new products and services that may not even be reflected in the its current valuation.
AAPL Research and Development Expense (TTM) data by YCharts.
One opportunity that is already contributing to a growing stream of revenue to Apple is advertising. Sure, advertising revenue was estimated to decline last quarter, but over the long term, Apple is well-positioned to turn advertising into a large and profitable revenue stream.
Bank of America analyst Wamsi Mohan estimates that if Apple monetizes ads outside the App Store, it could become a $20 billion business over the next four years, which would equal Apple's current quarterly revenue from services right now.
To sum up, easing supply constraints on iPhone sales, growing demand for non-ad services, and the opportunities to introduce new revenue streams over time are key catalysts that can drive more growth for Apple and send the stock higher.
While the stock isn't cheaply valued, at 25 times expected earnings this year, it's also not expensive. The stock's outperformance so far this year is giving investors an insight into how well Apple shares can perform as the business continues to grow over the next decade.
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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Bank of America. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and 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) are up 14% year to date, outperforming the 4% return of the S&P 500 index. AAPL Revenue (Quarterly) data by YCharts. AAPL Research and Development Expense (TTM) data by YCharts.
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Shares of Apple (NASDAQ: AAPL) are up 14% year to date, outperforming the 4% return of the S&P 500 index. AAPL Revenue (Quarterly) data by YCharts. AAPL Research and Development Expense (TTM) data by YCharts.
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Shares of Apple (NASDAQ: AAPL) are up 14% year to date, outperforming the 4% return of the S&P 500 index. AAPL Revenue (Quarterly) data by YCharts. AAPL Research and Development Expense (TTM) data by YCharts.
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Shares of Apple (NASDAQ: AAPL) are up 14% year to date, outperforming the 4% return of the S&P 500 index. AAPL Revenue (Quarterly) data by YCharts. AAPL Research and Development Expense (TTM) data by YCharts.
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16987.0
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2023-02-25 00:00:00 UTC
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2 Top Dividend Stocks to Buy and Hold for 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-top-dividend-stocks-to-buy-and-hold-for-2023-and-beyond
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nan
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nan
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Sometimes it's better to invest in companies that have a long and steady history of raising dividends and returning capital to shareholders than it is to invest in companies that offer high yields, which might not be sustainable. Whereas plenty of businesses can sustain paying out at a high dividend yield for a short period, few have the staying power to hike their payout repeatedly over time, and the ones that do tend to be solid investments.
With that in mind, let's look at two attractive dividend stocks that might not yield enough to make it past your screener search. Yet, both of them are great purchases, especially if you plan on holding them for years and years to get the full benefit of their plodding dividend growth.
Image source: Getty Images.
1. Steris
Steris (NYSE: STE) sells to hospitals and laboratories the sterilization equipment and consumable products, like sanitary wipes, that are needed to maintain a clean and safe working environment. As boring as sterilizing devices like autoclaves and laboratory glass washing stations may sound, they're actually critical for providing high-quality medical care, performing good research, and making sure that biomedical waste is safe to dispose.
So, as the healthcare sector grows, Steris is a dead ringer for growing in lockstep as companies need to sterilize more things to keep up with a higher level of output.
And that's precisely why its quarterly net income rose by 68.2% over the last five years, reaching $123.8 million in its fiscal third quarter. Importantly, of its $4.6 billion in revenue for 2022, management estimates that a whopping 80% of its sales are recurring in nature, as individual hospitals and laboratories tend to buy the same volume of sterilization goods every quarter.
The other 20% of its sales are of hardware, which typically also implies a stream of recurring revenue when customers need help with maintenance or replacement parts for their sterilization devices.
With a business model that yields such reliable revenue, Steris is more than stable enough to pay a dividend to its shareholders. While its forward dividend yield is a hair under 1%, which means it won't be making you rich anytime soon, the company has a long history of hiking the dividend each year. In the past 10 years, its dividend rose by 123.8%, easily beating the 112.6% increase of the SPDR S&P 500 ETF Trust in the same period.
Dividend growth at that pace will take some time to pay off, but if you're willing to hold onto your Steris shares for a long time, there's a good chance that the total return of your shares will outperform the market on an annual basis.
2. Apple
Apple (NASDAQ: AAPL) is another stock that's ideal for buying soon and holding for decades as it's one of the world's most valuable businesses -- and its growth model also yields plenty of recurring revenue. You're probably already familiar with the company's product lineup of Mac computers, iPhones, peripherals, and its entire software ecosystem. Most of its offerings are designed for regular replacement cycles as well as for generating subscription revenue to Apple's software services.
For example, a smartphone purchased in 2022 will be replaced by the consumer in an average of 2.6 years, according to Statista. That means people will pay upward of $800 every 2.6 years, while also likely paying between $1 and $10 monthly for iCloud services like storage. So it's no surprise that Apple increased its quarterly revenue by 168.7% in the last 10 years, nor is it a surprise that its quarterly net income rose by 214.2% to reach a cool $30 billion in its fiscal first quarter of 2023.
Much like Steris, Apple's dividend yield is a measly 0.6%, but its dividend's growth of 111% during the last 10 years is somewhat deceptive. Since the close of fiscal 2012, the company has bought back $573.3 billion in its shares, meaning that when including the $135.6 billion in dividends it paid out during that time, it has returned $740.3 billion to its shareholders.
So if you're willing to buy this stock and hold it, you'll be getting a significant return in the form of share price appreciation, even if the dividend isn't growing as fast as it might be with other businesses. And that means while you shouldn't expect the yield to grow by much, you should still expect your investment to make plenty of money over time.
10 stocks we like better than Steris
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 Steris 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. 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 another stock that's ideal for buying soon and holding for decades as it's one of the world's most valuable businesses -- and its growth model also yields plenty of recurring revenue. Whereas plenty of businesses can sustain paying out at a high dividend yield for a short period, few have the staying power to hike their payout repeatedly over time, and the ones that do tend to be solid investments. As boring as sterilizing devices like autoclaves and laboratory glass washing stations may sound, they're actually critical for providing high-quality medical care, performing good research, and making sure that biomedical waste is safe to dispose.
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Apple Apple (NASDAQ: AAPL) is another stock that's ideal for buying soon and holding for decades as it's one of the world's most valuable businesses -- and its growth model also yields plenty of recurring revenue. Whereas plenty of businesses can sustain paying out at a high dividend yield for a short period, few have the staying power to hike their payout repeatedly over time, and the ones that do tend to be solid investments. So it's no surprise that Apple increased its quarterly revenue by 168.7% in the last 10 years, nor is it a surprise that its quarterly net income rose by 214.2% to reach a cool $30 billion in its fiscal first quarter of 2023.
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Apple Apple (NASDAQ: AAPL) is another stock that's ideal for buying soon and holding for decades as it's one of the world's most valuable businesses -- and its growth model also yields plenty of recurring revenue. While its forward dividend yield is a hair under 1%, which means it won't be making you rich anytime soon, the company has a long history of hiking the dividend each year. Much like Steris, Apple's dividend yield is a measly 0.6%, but its dividend's growth of 111% during the last 10 years is somewhat deceptive.
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Apple Apple (NASDAQ: AAPL) is another stock that's ideal for buying soon and holding for decades as it's one of the world's most valuable businesses -- and its growth model also yields plenty of recurring revenue. Importantly, of its $4.6 billion in revenue for 2022, management estimates that a whopping 80% of its sales are recurring in nature, as individual hospitals and laboratories tend to buy the same volume of sterilization goods every quarter. So if you're willing to buy this stock and hold it, you'll be getting a significant return in the form of share price appreciation, even if the dividend isn't growing as fast as it might be with other businesses.
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16988.0
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2023-02-25 00:00:00 UTC
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3 Safe Tech Stocks for Any Market Environment
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AAPL
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https://www.nasdaq.com/articles/3-safe-tech-stocks-for-any-market-environment
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nan
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nan
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Among investors, tech stocks have gained a reputation as a source for growth. While that reputation is well earned, the tech industry's successes have also led to it producing many of the safest stocks to invest in.
It's that safety designation that helped a select group of tech stocks develop a following among conservative investors. These investors are drawn to these stocks because they deliver the safety they seek while benefiting from some of the growth that has attracted more risk-tolerant shareholders. Here are three examples.
1. Apple
You can't discuss safe tech stocks without including Apple (NASDAQ: AAPL). Backed by the iPhone and other popular products in the iOS ecosystem, Apple grew into the world's largest tech stock. So solid is its value proposition that 41% of Berkshire Hathaway's outside investment portfolio is tied up in this one stock.
Apple holds a $165 billion liquidity position. This affords it tremendous optionality, where it can not only weather brutal economic storms but also buy or create new, varied revenue streams that can bolster its ecosystem and balance sheet. That liquidity should support Apple through its current slump. In its first quarter of 2023 (ended Dec. 31), revenue fell 5% year over year to $117 billion after having increased 8% in fiscal 2022. Currency exchange headwinds, macroeconomic challenges, and supply shortages led to the decline.
Despite that setback, Apple generated over $30 billion in free cash flow in the most recent quarter. And even with the modest struggles in the stock, it still sells at about 25 times earnings. With its ability to generate cash, investors will likely continue to pay that earnings multiple despite its current challenges.
2. Alphabet
Like Apple, Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is showing its strength amid recent troubles. Although it owns Google Cloud and is working to diversify its revenue base, the majority of its revenue comes from advertising on its search engine, YouTube, and other platforms.
The advertising success led to tech developments and acquisitions that will transform the company over time. It also brought Alphabet $114 billion in liquidity, which fell from $140 billion at the end of 2021.
Still, that spending is likely a sign of investments made rather than any serious trouble with the company. In 2022, it generated $283 billion in revenue, a 10% increase from last year. That occurred as Q4 growth slowed to 1% amid declining ad revenue. It also did not stop its 2022 net income from falling 21% to $60 billion. Increases in operating expenses and a rise in unrealized investment losses led to the decline.
Such results probably contributed to Alphabet's stock decline during the 2022 bear market and the P/E ratio dropping to 20. Still, Alphabet generated $43 billion in free cash flow for the year. And given its asset base and a likely recovery in the ad market, the stock's sell-off is probably temporary.
3. Microsoft
One of Alphabet's primary competitors in the cloud, Microsoft (NASDAQ: MSFT), also offers its investors a high degree of safety. For most of its history, investors knew Microsoft for its domination of the PC operating systems -- before the Apple iPhone reduced the need for PCs.
However, Satya Nadella became CEO in 2014 and successfully turned Microsoft into one of the primary infrastructure cloud companies. Today, it lags behind only the cloud industry pioneer Amazon in market share.
Image source: Statista.
Microsoft's safety is backed by about $100 billion in liquidity, which allows it to compete in the cloud market and bolster its businesses with operating systems, productivity software, and gaming. It has also invested in moves into the metaverse, and a relationship with ChatGPT developer OpenAI may help it compete with Google on the search front.
Such results may have contributed to a modest slide in the stock over the last year. Still, its P/E ratio of 28 indicates that investors remain confident in the stock. And since it generated $22 billion in free cash flow over the last two quarters, investors likely have a good reason for believing in the cloud stock's strength and safety.
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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. Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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 You can't discuss safe tech stocks without including Apple (NASDAQ: AAPL). This affords it tremendous optionality, where it can not only weather brutal economic storms but also buy or create new, varied revenue streams that can bolster its ecosystem and balance sheet. Microsoft's safety is backed by about $100 billion in liquidity, which allows it to compete in the cloud market and bolster its businesses with operating systems, productivity software, and gaming.
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Apple You can't discuss safe tech stocks without including Apple (NASDAQ: AAPL). Alphabet Like Apple, Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is showing its strength amid recent troubles. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft.
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Apple You can't discuss safe tech stocks without including Apple (NASDAQ: AAPL). And since it generated $22 billion in free cash flow over the last two quarters, investors likely have a good reason for believing in the cloud stock's strength and safety. See the 10 stocks *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.
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Apple You can't discuss safe tech stocks without including Apple (NASDAQ: AAPL). Among investors, tech stocks have gained a reputation as a source for growth. With its ability to generate cash, investors will likely continue to pay that earnings multiple despite its current challenges.
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16989.0
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2023-02-24 00:00:00 UTC
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This Supercharged Nasdaq Stock Is Up 35% in 2023, But Is It a Buy?
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AAPL
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https://www.nasdaq.com/articles/this-supercharged-nasdaq-stock-is-up-35-in-2023-but-is-it-a-buy
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nan
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nan
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Shares of chipmaker Cirrus Logic (NASDAQ: CRUS) have been red-hot so far in 2023 amid the broader market rally as well as solid results for its fiscal 2023 third quarter (ended Dec. 24, 2022, and released on Feb. 2).
The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. What's more, Cirrus' adjusted earnings turned out to be way better than Wall Street had expected. Investors cheered the company's results, which is evident from the stock's terrific returns so far this year.
But can Cirrus sustain this momentum? Or will the chipmaker's rally fizzle out thanks to its poor near-term guidance? Let's find out.
Cirrus Logic faces near-term headwinds
Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. Adjusted earnings of $2.40 per share also topped the estimate of $1.99 per share by a wide margin.
The company credited its smartphone business for the resilient showing last quarter, which may seem a tad surprising given the 18.3% year-over-year plunge in global smartphone shipments in the fourth quarter of 2022. What's more, Apple is Cirrus' largest customer, and the manufacturer of iPhones didn't escape the smartphone slowdown either. Shipments of iPhones were reportedly off by almost 15% year over year last quarter.
As Cirrus' largest customer produced 88% of its total revenue last quarter, the slowdown in iPhone sales should have crushed the chipmaker. But that wasn't the case as Cirrus was supplying additional content for smartphones and enjoyed an improvement in average selling prices last quarter. It is worth noting that Cirrus has moved beyond its traditional business of selling audio chips that are used by Apple. The Cupertino, California-based tech giant is tapping Cirrus for power conversion chips as well.
So Cirrus was able to offset the losses of lower unit volumes with the help of more content in each iPhone. But the massive reliance on Apple has a downside as well. Cirrus forecasts $370 million in revenue this quarter at the midpoint of its guidance range, translating into a year-over-year drop of nearly 25%.
But seasonality in the smartphone market in the first quarter of the calendar year, along with the fact that Cirrus benefited from the launch of the 5G-enabled iPhone SE in March 2022 -- a tailwind that it doesn't have this year -- means that the company will end fiscal 2023 on the back foot. Cirrus' guidance suggests that it will end the fiscal year with a 6% increase in total revenue to $1.89 billion. Adjusted earnings are expected to shrink to $6.35 per share from $6.90 per share in fiscal 2022.
CRUS Revenue Estimates for Current Fiscal Year data by YCharts.
Analysts don't expect much of an acceleration in the chipmaker's growth in the next couple of fiscal years either. However, Cirrus may have a surprise up its sleeve and step on the gas later this year. Let's see why that may be the case.
A potential catalyst could send the stock higher
Cirrus' near-term outlook doesn't look inspiring right now, but management dropped hints on the latestearnings conference callthat it could gain more business from its largest customer later this year. CEO John Forsyth pointed out that Cirrus has been witnessing an improvement in the adoption of its high-performance mixed-signal (HPMS) chips, such as camera controllers by smartphone OEMs (original equipment manufacturers), a trend that it expects to continue when it launches its next-generation camera controller later in 2023.
Forsyth also added that Cirrus has "made excellent progress toward the introduction of a new HPMS component during the second half of this year," suggesting that the company may be able to further increase its content level at Apple. Supply chain gossip suggests that Apple may equip the next-generation iPhones with touch-based buttons, and Cirrus could be the one providing chips to enable the same.
Along with a potential gain in content at Apple, Cirrus may also be able to take advantage of stronger shipments in 2023. IDC estimates that iPhone shipments were down 4% in 2022 to 226 million units. Apple is expected to ship 233.5 million iPhones, a small improvement over the prior year. One key reason why Apple may be able to increase its iPhone shipments in 2023 is because of faster growth in sales of 5G devices.
It is estimated that 5G devices could account for 69% of overall smartphone sales in 2023, up from 52% last year. That points toward a nice jump in the adoption of 5G smartphones this year, as 43% of devices sold in 2021 were 5G-enabled, suggesting that their growth slowed down in 2022 thanks to the weakness in the smartphone space. Apple is the dominant player in the 5G smartphone market as it controls nearly a third of this space, which could pave the way for an improvement in iPhone shipments this year.
So there is a chance that Cirrus' growth could accelerate in the second half of 2023, which is why investors might consider adding this tech stock to their portfolios, especially considering its valuation. Trading at 18 times trailing earnings and 16 times forward earnings, Cirrus is attractively valued when compared to the Nasdaq 100's price-to-earnings ratio of 25, which means it isn't too late for investors to buy Cirrus Logic even after its latest rally.
10 stocks we like better than Cirrus Logic
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Cirrus Logic 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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Cirrus Logic 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 company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Shares of chipmaker Cirrus Logic (NASDAQ: CRUS) have been red-hot so far in 2023 amid the broader market rally as well as solid results for its fiscal 2023 third quarter (ended Dec. 24, 2022, and released on Feb. 2). A potential catalyst could send the stock higher Cirrus' near-term outlook doesn't look inspiring right now, but management dropped hints on the latestearnings conference callthat it could gain more business from its largest customer later this year.
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The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Cirrus Logic faces near-term headwinds Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. As Cirrus' largest customer produced 88% of its total revenue last quarter, the slowdown in iPhone sales should have crushed the chipmaker.
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The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Cirrus Logic faces near-term headwinds Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. But seasonality in the smartphone market in the first quarter of the calendar year, along with the fact that Cirrus benefited from the launch of the 5G-enabled iPhone SE in March 2022 -- a tailwind that it doesn't have this year -- means that the company will end fiscal 2023 on the back foot.
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The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. But that wasn't the case as Cirrus was supplying additional content for smartphones and enjoyed an improvement in average selling prices last quarter. Analysts don't expect much of an acceleration in the chipmaker's growth in the next couple of fiscal years either.
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16990.0
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2023-02-24 00:00:00 UTC
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3 Stocks Investors Can Buy to Join the AI Revolution
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AAPL
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https://www.nasdaq.com/articles/3-stocks-investors-can-buy-to-join-the-ai-revolution
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nan
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nan
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The recent release of ChatGPT and Microsoft’s new AI enabled Bing search engine seems to have put the Artificial Intelligence industry into hyperdrive. The possibilities of AI are being realized today and the competition is on to see who can build the best AI enabled applications.
AI, which requires more computing power than ever before, is going to make for a boon across the technology industry. The creative ways that AI can be used to enhance productivity and creativity are only just beginning to become clear. Furthermore, because of the required computing power necessary it will also boost all the computing industries surrounding it.
Industries that are likely to be altered by AI include software, search, semiconductors, mobile, research, music, art, gaming and the list goes on.
Of course, there are also some people who warn about the dangers this new wild west of AI can bring. Some people in the field believe there needs to be more oversight of the activities going on, for fear of birthing AI sentience or singularity.
I have used some of these apps and although they are impressive, they are still very imperfect. So the singularity talks sounds a bit alarmist to me – at least for now.
ChatGPT and OpenAI
The release of ChatGPT, by OpenAI was extremely exciting and very well publicized. Using it for the first time truly felt like technology was entering a new paradigm, and the use of the application exploded. ChatGPT was the fastest growing web application of all time, building a user base of 100 million people less than two months after release.
With funding from Microsoft MSFT, OpenAI now functions essentially as another arm of the technology giant, and MSFT hasn’t waited to implement the technology. The AI underlying ChatGPT has been implemented into MSFT’s Bing search engine, as well as Microsoft Teams, and the reception has been very positive.
MSFT seems to have the jump on other technology giants, but it is unlikely that Alphabet GOOGL, Apple AAPL, or even Meta META are going to just roll over. It will be exciting to see the creative ways they decide to implement AI into their own ecosystems.
I am sure smaller start-ups will come out with exciting new technologies as well.
Semiconductors
“Pick and Shovel” investing is an expression that applies well to the semiconductor industry regarding AI. Pick and shovel refers to the 19th century gold rush, where pioneers traveled west in search of gold. But the people who really got rich during the rush were those selling the tools such as pick axes and shovels.
Semiconductors are a logical play to benefit from the explosion in AI. Big tech and new startups will be in ruthless competition to create the best apps and technology, but predicting the winner is very challenging. Start-ups and established companies alike are all going to need to upgrade their computing power though. There is no doubt that more and regular upgrades of microchips are going to be necessary for developing AI enabled tech, as well as consumers, who want to utilize the applications.
One semiconductor stock that looks very appealing is Microchip Technology MCHP. Microchip Technology currently boasts a Zacks Rank #1 (Strong Buy), indicating upward trending earnings revisions. MCHP is also one of the leading stocks in the market today, up 14% YTD.
Microchip Technology is well positioned to benefit from the explosion in AI, with an extensive portfolio of microprocessors optimized for AI, and machine learning research and frameworks.
Image Source: Zacks Investment Research
Making it an even more compelling investment is its very reasonable valuation. MCHP is trading at 14x one-year forward earnings, below its five-year median of 17x, and below the industry average 18x.
Image Source: Zacks Investment Research
When semiconductors come up many investors will go straight to Nvidia NVDA. After its most recent earnings, which were decent, NVDA highlighted its commitment to the AI industry and became a buzz in the industry. But I think MCHP is a much more appealing investment right now. While NVDA gets all the hype, it comes with a very premium valuation.
Nvidia is trading at a one-year forward P/E of 77x, well above its median of 50x, and way higher than the industry average of 18x. There is no doubt NVDA is a phenomenal business, but this valuation is extremely rich, and there are semiconductor stocks with more appealing valuations.
Image Source: Zacks Investment Research
C3.ai
C3.ai AI is an enterprise artificial intelligence software company based in California. C3.ai has created a design and development environment to enable AI developers to build enterprise ready apps for CRM, and data analysis.
AI stock has done extremely poorly since its IPO, down -80% off its 2021 high, but that may be a good thing for discerning investors.
Image Source: Zacks Investment Research
C3.ai is not a profitable company, posting negative earnings for its entire time as a public company. Additionally, trading at 10x one-year forward sales, it is still quite expensive. But AI is putting together an improving financial situation and has been posting earnings beats for the last few reporting periods.
Image Source: Zacks Investment Research
AI has a Zacks Rank #3 (Hold), indicating a flat trend in earnings revision. AI is a company that has benefitted from the hype of AI, and though its valuation is maybe a bit ahead of itself, it is worth putting on the watchlist. As AI implementation into enterprise applications becomes more popular, C3.ai may be one of the first places businesses go to enhance their AI capabilities.
Alphabet
Alphabet, with its unfathomably large data sets, is likely to be major benefactors of the AI revolution. It seems that MSFT and GOOGL are currently in an AI arms race, and MSFT is ahead, but maybe it will work in GOOGL’s advantage. Mistakes are likely to be made in the early days, so those who can learn quickly from them and remain flexible should do well.
Alphabet also has a long history of being on the cutting edge of big data, machine learning, and artificial intelligence. Though it hasn’t been releasing chat bots, these technologies have been critical in optimizing search and other products. GOOGL likely already has some of the top talent in the industry, allowing the team to quickly build on the innovations of OpenAI.
GOOGL’s valuation is as appealing as it has been in a very long time. Trading at 18x one-year forward earnings is well below its five-year median of 26x and is close to its all-time low of 15x. In addition to its future AI potential, GOOGL is a beast of a company, with very strong sales and earnings growth, even as a very large and mature business.
Image Source: Zacks Investment Research
Conclusion
Artificial intelligence has already begun to shake industries across the spectrum. The potential capabilities of AI are hard to fathom. At the least these tools will upgrade our productivity and enhance our creative abilities. At the most, it may completely alter the way we live, and give rise to intelligent machines.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
C3.ai, Inc. (AI) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MSFT seems to have the jump on other technology giants, but it is unlikely that Alphabet GOOGL, Apple AAPL, or even Meta META are going to just roll over. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The recent release of ChatGPT and Microsoft’s new AI enabled Bing search engine seems to have put the Artificial Intelligence industry into hyperdrive.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. MSFT seems to have the jump on other technology giants, but it is unlikely that Alphabet GOOGL, Apple AAPL, or even Meta META are going to just roll over. The recent release of ChatGPT and Microsoft’s new AI enabled Bing search engine seems to have put the Artificial Intelligence industry into hyperdrive.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. MSFT seems to have the jump on other technology giants, but it is unlikely that Alphabet GOOGL, Apple AAPL, or even Meta META are going to just roll over. Microchip Technology is well positioned to benefit from the explosion in AI, with an extensive portfolio of microprocessors optimized for AI, and machine learning research and frameworks.
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MSFT seems to have the jump on other technology giants, but it is unlikely that Alphabet GOOGL, Apple AAPL, or even Meta META are going to just roll over. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Semiconductors “Pick and Shovel” investing is an expression that applies well to the semiconductor industry regarding AI.
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16991.0
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2023-02-24 00:00:00 UTC
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Apple Breaks Below 200-Day Moving Average - Notable for AAPL
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AAPL
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https://www.nasdaq.com/articles/apple-breaks-below-200-day-moving-average-notable-for-aapl
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nan
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nan
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In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed below their 200 day moving average of $147.23, changing hands as low as $145.73 per share. Apple Inc shares are currently trading down about 2.2% on the day. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average:
Looking at the chart above, AAPL's low point in its 52 week range is $124.17 per share, with $179.61 as the 52 week high point — that compares with a last trade of $146.39. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
Also see:
Analyst Actions
Top 10 Hedge Funds Holding General Motors
AGII Split 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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In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed below their 200 day moving average of $147.23, changing hands as low as $145.73 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $124.17 per share, with $179.61 as the 52 week high point — that compares with a last trade of $146.39. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Analyst Actions Top 10 Hedge Funds Holding General Motors AGII Split 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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In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed below their 200 day moving average of $147.23, changing hands as low as $145.73 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $124.17 per share, with $179.61 as the 52 week high point — that compares with a last trade of $146.39. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Analyst Actions Top 10 Hedge Funds Holding General Motors AGII Split 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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In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed below their 200 day moving average of $147.23, changing hands as low as $145.73 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $124.17 per share, with $179.61 as the 52 week high point — that compares with a last trade of $146.39. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Analyst Actions Top 10 Hedge Funds Holding General Motors AGII Split 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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In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed below their 200 day moving average of $147.23, changing hands as low as $145.73 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $124.17 per share, with $179.61 as the 52 week high point — that compares with a last trade of $146.39. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Analyst Actions Top 10 Hedge Funds Holding General Motors AGII Split 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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16992.0
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2023-02-24 00:00:00 UTC
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Soccer-LAFC favored to repeat as MLS season kicks off
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AAPL
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https://www.nasdaq.com/articles/soccer-lafc-favored-to-repeat-as-mls-season-kicks-off
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nan
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nan
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By Rory Carroll
LOS ANGELES, Feb 24 (Reuters) - LAFC will look to get their bid for back-to-back MLS championships off to a winning start when they battle crosstown rivals LA Galaxy in front of an anticipated record crowd at the Rose Bowl in Pasadena on Saturday night.
LAFC prevailed in the most thrilling final in league history against Philadelphia last season when Gareth Bale's stunning extra time goal tied the rollercoaster affair 3-3.
The home side then broke the hearts of the Union in a one-sided penalty shootout to claim their first MLS Cup and cap a season where they also won the Supporters' Shield for having the best regular-season record.
With the win, LAFC delivered on the high expectations that came when the team launched in 2018 with a celebrity ownership group and a glamorous new stadium.
That investment has more than paid off. Earlier this month Forbes announced that LAFC was the first MLS club to reach $1 billion in value.
Despite Bale's retirement, oddsmakers like LAFC and veteran captain Carlos Vela to hoist the Cup again with the Union, NYCFC and Austin FC also in the mix.
APPLE TV ERA BEGINS
Saturday's supersized edition of the "El Trafico" derby is expected to draw more than 75,000 to the historic Rose Bowl and help launch a new era for MLS, which entered into a blockbuster 10-year partnership with Apple TV during the offseason.
The deal, which is reportedly worth $2.5 billion, is a bet by the tech giant that the league and its youthful, diverse and tech-savvy fanbase will contend with the NFL, NBA and MLB in the years to come.
"We talk about how we want the league to continue to grow and bridge the gap in comparison with other leagues, and I think having this Apple partnership is a step in the right direction," LAFC midfielder Kellyn Acosta told reporters last month.
"Leading into the World Cup in 2026, you want to build momentum and gain more exposure, and I think this partnership is going to truly be beautiful."
While Fox and FS1 will still carry some games on traditional cable, the bulk of the matches will be streamed on Apple TV through its MLS Season Pass at a price of $79 a year for Apple TV+ subscribers and $99 for those without.
Season Pass subscribers can watch matches on Apple and non-Apple devices. Broadcasts will be available in English and Spanish, with all matches involving Canadian teams also available in French.
LEAGUE EXPANSION
The season could also be pivotal for the continued growth of the league, which began in 1996 with just 10 teams but will boast 29 this season with the addition of St. Louis City SC.
MLS commissioner Don Garber is widely expected to announce yet another expansion franchise before the year's end, with the goal of fielding 30 teams when the United States co-hosts the 2026 World Cup.
"Those people who don't even know that they love the game will love the game when they experience the World Cup, because that's the nature of the pageantry and the passion and the uniqueness of so many countries coming together and playing this almost life-or-death tournament," Garber told Reuters.
He said while San Diego and Las Vegas were the well-publicized frontrunners to get the nod to host a team, it was still very much up for grabs. He also pointed to Sacramento as a potential candidate.
"We've said that in the past ... a city was a front runner. Then somebody swooped in and it ended up going someplace else," he said.
(Additional reporting by Amy Tennery in New York; Editing by Sonali Paul)
((Rory.Carroll@thomsonreuters.com; 503-830-8017;))
The views and 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 Rory Carroll LOS ANGELES, Feb 24 (Reuters) - LAFC will look to get their bid for back-to-back MLS championships off to a winning start when they battle crosstown rivals LA Galaxy in front of an anticipated record crowd at the Rose Bowl in Pasadena on Saturday night. Saturday's supersized edition of the "El Trafico" derby is expected to draw more than 75,000 to the historic Rose Bowl and help launch a new era for MLS, which entered into a blockbuster 10-year partnership with Apple TV during the offseason. MLS commissioner Don Garber is widely expected to announce yet another expansion franchise before the year's end, with the goal of fielding 30 teams when the United States co-hosts the 2026 World Cup.
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While Fox and FS1 will still carry some games on traditional cable, the bulk of the matches will be streamed on Apple TV through its MLS Season Pass at a price of $79 a year for Apple TV+ subscribers and $99 for those without. Season Pass subscribers can watch matches on Apple and non-Apple devices. MLS commissioner Don Garber is widely expected to announce yet another expansion franchise before the year's end, with the goal of fielding 30 teams when the United States co-hosts the 2026 World Cup.
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"We talk about how we want the league to continue to grow and bridge the gap in comparison with other leagues, and I think having this Apple partnership is a step in the right direction," LAFC midfielder Kellyn Acosta told reporters last month. While Fox and FS1 will still carry some games on traditional cable, the bulk of the matches will be streamed on Apple TV through its MLS Season Pass at a price of $79 a year for Apple TV+ subscribers and $99 for those without. MLS commissioner Don Garber is widely expected to announce yet another expansion franchise before the year's end, with the goal of fielding 30 teams when the United States co-hosts the 2026 World Cup.
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Saturday's supersized edition of the "El Trafico" derby is expected to draw more than 75,000 to the historic Rose Bowl and help launch a new era for MLS, which entered into a blockbuster 10-year partnership with Apple TV during the offseason. While Fox and FS1 will still carry some games on traditional cable, the bulk of the matches will be streamed on Apple TV through its MLS Season Pass at a price of $79 a year for Apple TV+ subscribers and $99 for those without. The season could also be pivotal for the continued growth of the league, which began in 1996 with just 10 teams but will boast 29 this season with the addition of St. Louis City SC.
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2023-02-24 00:00:00 UTC
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79% of Warren Buffett's $338 Billion Portfolio Is Invested in Just 6 Stocks
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AAPL
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https://www.nasdaq.com/articles/79-of-warren-buffetts-%24338-billion-portfolio-is-invested-in-just-6-stocks
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Few, if any, investors have a larger following than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. That's because the Oracle of Omaha, as he's now known, has vastly outperformed the benchmark S&P 500 since he became CEO in 1965. Through the end of 2021, Berkshire Hathaway's Class A shares (BRK.A) delivered an aggregate return that was 120 times greater than that of the S&P 500, including dividends paid, since Buffett took over.
With the exception of Berkshire Hathaway's annual shareholder meeting, the company's quarterly Form 13F filing is, arguably, the most anticipated event for shareholders and investing enthusiasts. A 13F allows investors to see exactly what Buffett and his investing team bought, sold, and held in the most recent quarter.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
On Valentine's Day (Feb. 14), Berkshire Hathaway's 13F showed investors precisely which stocks the Oracle of Omaha "loves." But despite holding stakes in 49 securities, Buffett and his team have highly concentrated the company's investment portfolio in just a few companies. A whopping 79% of Warren Buffett's $338 billion portfolio is invested in just six stocks.
1. Apple: 41.4% of invested assets
Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (NASDAQ: AAPL), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio.
Apple is viewed as a pillar investment for Berkshire because of its branding power, incredible cash flow, and considerable capital-return program.
Apple has an exceptionally loyal customer base, and is currently the leading provider of smartphones in the U.S. by a considerable amount. On top of attracting users with its physical products, CEO Tim Cook is overseeing a steady transformation of Apple to a services-oriented company. Even though Apple hasn't forgotten about the physical products that made it famous, evolving into a services-oriented company will improve long-term margins and minimize revenue fluctuations during physical product replacement cycles.
What's more, Apple has repurchased well over $550 billion worth of its common stock over the past decade, and it's parsing out one of the largest nominal-dollar dividends each year (almost $14.6 billion). Buffett loves publicly traded companies that reward their patient shareholders.
2. Bank of America: 10.8% of invested assets
If there's an industry the Oracle of Omaha loves to put Berkshire Hathaway's money to work in more than any others, it tends to be banking. At the moment, Bank of America (NYSE: BAC) is Buffett's undisputed favorite bank stock, as evidenced by the 10.8% weighting in Berkshire's investment portfolio.
The reason Buffett and his investing team favor bank stocks is because they're cyclical and can take advantage of a simple numbers game that favors long-term investors. You see, even though recessions are inevitable, they're usually short-lived. Comparatively, economic expansions can go on for years. This allows banks to grow their loans and deposits and generate higher income over time.
What makes Bank of America special is its interest rate sensitivity. With the Fed combating historically high inflation by raising interest rates, BofA is benefiting from higher interest rates on its outstanding variable-rate loans. The result was a $3.3 billion boost to net interest income during the fourth quarter from the prior-year period. Keep in mind, the nation's central bank isn't done with this rate-hiking cycle yet, either.
WTI Crude Oil Spot Price data by YCharts.
3. Chevron: 8.1% of invested assets
Over the past year, Buffett and his cohorts have become big fans of the energy sector. That's why you've seen energy stock Chevron (NYSE: CVX) grow into Berkshire Hathaway's third-largest position.
The logic behind having a $27 billion position in Chevron is that energy commodity prices will remain elevated for years to come. A lot of investors are focused on Russia's invasion of Ukraine and what that might do to Europe's energy supply needs. But the bigger concern is what three years of reduced capital investment tied to COVID-19 has done to the global energy supply chain. Although warmer weather has crushed the price of natural gas, supply constraints are buoying crude oil well above its average in recent years.
Chevron has also done an excellent job of strengthening its balance sheet and rewarding its shareholders. Last year, Chevron reduced its net debt from $25.7 billion to $5.4 billion. Further, the company increased its base annual payout for the 36th consecutive year in January 2023, and its board authorized a share buyback totaling as much as $75 billion.
Image source: American Express.
4. American Express: 8% of invested assets
This year marks the 30th consecutive year credit-services provider American Express (NYSE: AXP) is a Berkshire Hathaway holding. The patience of Buffett and his investing lieutenants (Todd Combs and Ted Weschler) to allow this position to play out has resulted in an unrealized gain of approximately $25.5 billion, not counting dividends.
Similar to BofA, American Express benefits from extended periods of economic expansion. In addition to being a payment processor and collecting fees from merchants, AmEx is also a lender. During booms, it's able to generate interest income and annual fees from its cardholders, as well as enjoy the fruits as a payment processor from higher levels of consumer and enterprise spending.
Another reason for American Express' ongoing success is its ability to court high-net-worth individuals. People with higher incomes are less likely to alter their spending habits or fail to pay their bills when the inflation rate picks up or a modest recession takes place. This helps to partially insulate AmEx against economic downturns.
5. Coca-Cola: 7.1% of invested assets
The only stock Berkshire Hathaway has been continuously holding longer than AmEx is beverage giant Coca-Cola (NYSE: KO). The Oracle of Omaha has been a shareholder of Coca-Cola since 1988, and is currently benefiting from a dividend yield, relative to Berkshire's cost basis, of 56.7%. Coke's dividend alone is more than doubling Buffett's initial investment every two years.
What makes Coca-Cola's business tick is its geographic diversity and its top-notch branding/marketing. With regard to the former, the company has operations ongoing in every country worldwide, with the exception of North Korea, Cuba, and Russia -- the latter due to its invasion of Ukraine. This geographic diversity allows Coca-Cola to rake in predictable operating cash flow in developed markets, while building on faster organic growth rates in emerging countries.
In terms of branding, Coca-Cola is, arguably, the best-known consumer goods brand on the planet. The company's marketing campaigns have for decades been incredibly successful connecting with consumers. Today, this involves using social media to reach younger consumers, while relying on its holiday connections with Santa Claus to engage a more mature global audience.
6. Kraft Heinz: 3.9% of invested assets
The sixth and final holding that concentrates a little over 79% of Berkshire Hathaway's invested assets into just a half-dozen stocks is packaged foods, snacks, and condiments company Kraft Heinz (NASDAQ: KHC).
Whereas most companies were, in some way or another, clobbered by the COVID-19 pandemic, Kraft Heinz was one of the few beneficiaries. Since people were stuck in their homes, Kraft Heinz's easy-to-prepare meals and snacks flew off grocery store shelves. It also doesn't hurt that the company owns more than a dozen well-known brands and can hike prices, as needed, to counter the effects of inflation.
But as I've previously argued, Kraft Heinz is one of Buffett's worst investments. Kraft Heinz took a goodwill write-down of more than $15 billion in February 2019, and is still lugging around a balance sheet heavy with long-term debt, goodwill, and intangible assets.
Additionally, signs of consumer strain and substitution bias are taking shape. During the fourth quarter, Kraft Heinz delivered 10.4% organic net sales growth, which was the result of a 15.2% increase in price. In other words, volume/mix declined by 4.8%. That's potentially worrisome for such a large holding in Berkshire's portfolio.
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: 41.4% of invested assets Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (NASDAQ: AAPL), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio. The patience of Buffett and his investing lieutenants (Todd Combs and Ted Weschler) to allow this position to play out has resulted in an unrealized gain of approximately $25.5 billion, not counting dividends. During booms, it's able to generate interest income and annual fees from its cardholders, as well as enjoy the fruits as a payment processor from higher levels of consumer and enterprise spending.
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Apple: 41.4% of invested assets Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (NASDAQ: AAPL), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio. Few, if any, investors have a larger following than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. American Express: 8% of invested assets This year marks the 30th consecutive year credit-services provider American Express (NYSE: AXP) is a Berkshire Hathaway holding.
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Apple: 41.4% of invested assets Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (NASDAQ: AAPL), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio. American Express: 8% of invested assets This year marks the 30th consecutive year credit-services provider American Express (NYSE: AXP) is a Berkshire Hathaway holding. Kraft Heinz: 3.9% of invested assets The sixth and final holding that concentrates a little over 79% of Berkshire Hathaway's invested assets into just a half-dozen stocks is packaged foods, snacks, and condiments company Kraft Heinz (NASDAQ: KHC).
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Apple: 41.4% of invested assets Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (NASDAQ: AAPL), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio. Apple is viewed as a pillar investment for Berkshire because of its branding power, incredible cash flow, and considerable capital-return program. See the 10 stocks *Stock Advisor returns as of February 8, 2023 American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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2023-02-24 00:00:00 UTC
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3 Hot Stocks for Monday: Predictions for ZM, WDAY, BRK.B
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https://www.nasdaq.com/articles/3-hot-stocks-for-monday%3A-predictions-for-zm-wday-brk.b
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market has been a mess over the last few days, and now more than ever, it’s got investors looking for the hot stocks for Monday.
Volatility is picking up as earnings continue to drive large moves in individual stocks. At the same time, larger broader-market swings are taking place as inflation continues to be an issue. Earlier this month, the CPI and PPI reports came in hotter than expected. Before that, the January jobs report came in much higher than expected.
On Friday morning, the PCE report also topped expectations, adding to the worries that inflation isn’t slowing down fast enough. That’s got investors thinking about increased rate hikes from the Federal Reserve, and that’s creating some violent swings in equities.
Let’s look at a few hot stocks for Monday.
Ticker Company Price
ZM Zoom Video $73.56
WDAY Workday $182.65
BRK-A Berkshire Hathaway $461,500.10
BRK-B Berkshire Hathaway $304.61
Zoom Video (ZM)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Zoom Video (NASDAQ:ZM) was probably the pandemic stock to watch from the Covid-19 outbreak. Its online video chat platform became a must-have for work-from-home employees and the stock promptly exploded as a result.
Unless investors have been living under a rock though, they also know these pandemic stocks have now found momentum going the other way — to the downside. After an 850% rally during Covid-19, ZM stock has promptly fallen almost 90% from its peak.
Now the company is scheduled to report earnings on Monday after the close. Despite beating earnings in each of its last two reports, Zoom Video stock has sold off after each event. In August, shares fell 16.5% in a single day, while they fell a much more mild 3.9% in November.
What can we expect this time around?
The Chart: Zoom Video stock is resting just above a key area on the chart, trying to hold the $70 to $72 area. On the upside, bulls want to see ZM reclaim its 10-day and 21-day moving averages, potentially opening the door up to the $85 area — which is a recent resistance zone and just shy of the 200-day moving average.
On the downside, a flush below $70 puts the mid-$60s in play.
Workday (WDAY)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Like Zoom Video, Workday (NASDAQ:WDAY) is scheduled to report earnings on Monday after the close. Unlike Zoom, the last two earnings reactions have been positive for Workday.
Many tech stocks have struggled over the past year, but have been roaring higher over the last few months. In the case of Workday, shares rallied 50% from the November low to this month’s high.
While shares did suffer a peak-to-trough decline of 58%, that was actually better than many other growth stocks.
The Chart: On the downside, bulls actually have a decent long setup if — and that’s a big “if” — the $175 to $177.50 area can hold as support. If that’s the case, Workday could be a buy-the-dip setup. On the flip side, a break of this area could put $160-ish in play.
On the upside, $190 to $192 is the first target, followed by $200.
Berkshire Hathaway (BRK-A, BRK-B)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is like no other company out there. It’s a conglomerate made up of public and private companies and run by two of history’s best investors: Warren Buffett and Charlie Munger.
The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. Lastly, it reports earnings on Saturday. Put simply, this is a very unique holding.
While investors will be interested to see the company’s operating results, they will be far more interested in what management has to say about the market, the economy and interest rates. Buffett & Co. carry a lot of weight when it comes to investors, so what they say will be important.
The Chart: Shares tried to gain traction over $320 and just couldn’t do so. Now they are clinging to $300 as support, with the 21-month and 200-day moving averages and the 38.2% retracement there to help as well. Plus, it’s been key support area over the last few months.
A break here could put $290 in play next, followed by the more significant level of $282 to $284. On the upside, bulls want to see shares clear $310 — and thus the 10-day and 21-day moving averages — and open the door back to $320-plus.
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 Monday: Predictions for ZM, WDAY, BRK.B appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. Click to Enlarge Source: Chart courtesy of TrendSpider Zoom Video (NASDAQ:ZM) was probably the pandemic stock to watch from the Covid-19 outbreak. Click to Enlarge Source: Chart courtesy of TrendSpider Like Zoom Video, Workday (NASDAQ:WDAY) is scheduled to report earnings on Monday after the close.
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The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. Ticker Company Price ZM Zoom Video $73.56 WDAY Workday $182.65 BRK-A Berkshire Hathaway $461,500.10 BRK-B Berkshire Hathaway $304.61 Zoom Video (ZM) Click to Enlarge Source: Chart courtesy of TrendSpider Like Zoom Video, Workday (NASDAQ:WDAY) is scheduled to report earnings on Monday after the close.
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The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The market has been a mess over the last few days, and now more than ever, it’s got investors looking for the hot stocks for Monday. Ticker Company Price ZM Zoom Video $73.56 WDAY Workday $182.65 BRK-A Berkshire Hathaway $461,500.10 BRK-B Berkshire Hathaway $304.61 Zoom Video (ZM)
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The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. Ticker Company Price ZM Zoom Video $73.56 WDAY Workday $182.65 BRK-A Berkshire Hathaway $461,500.10 BRK-B Berkshire Hathaway $304.61 Zoom Video (ZM) Click to Enlarge Source: Chart courtesy of TrendSpider Like Zoom Video, Workday (NASDAQ:WDAY) is scheduled to report earnings on Monday after the close.
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2023-02-24 00:00:00 UTC
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What is a Blue Chip Company? Examples of Blue Chips
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https://www.nasdaq.com/articles/what-is-a-blue-chip-company-examples-of-blue-chips
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What is a blue chip company? When an asset is valuable and highly sought after, it might earn the term "blue chip." Consumers can label anything a blue chip, such as a painting from a renowned artist or a college football prospect with tremendous physical gifts.
A blue-chip stock returns dividends, which is why many of the largest and most successful public companies also carry the moniker "blue chips."
Overview of Blue-Chip Companies
So, what are blue chips, anyway? If you've ever played table games like poker or blackjack at a casino, you likely noticed the different colors assigned to chips. Traditionally, white and red casino chips are the most common and carry the lowest values. On the other hand, blue is the color casinos most frequently reserve for their highest-value chips, so the term floated into popular culture to describe assets of the highest value and quality.
The term "blue-chip stocks" entered market vocabulary in the 1920s thanks to investment writer Oliver Gingold, who worked at the predecessor to the Dow Jones company.
Like a poker player who wants to collect as many blue casino chips as possible, an investor looking for long-term gains will fill a portfolio with blue-chip companies. Blue chip firms are industry leaders recognized for their staying power, long-term profitability and ability to weather market downturns and recessions. You're likely familiar with the Dow Jones Industrial Average (DJIA), the oldest of the three major indices used to track the performance of the U.S. stock market. Experts often call the DJIA the "blue-chip index" because it tracks a relatively small swath of the market but contains 30 large-cap blue-chip companies from various sectors and industries.
Characteristics of Blue-Chip Companies
Blue-chip firms can be found in different industries and fields, both domestically and abroad. But when most investors talk about blue-chip companies, they reference large-cap American stocks. While there are no rigid criteria on what makes a company a blue chip, they all share a few common characteristics:
Large market cap: A blue-chip company doesn't necessarily need to be a $500 billion behemoth, but having a large market capitalization figure is essential for stability and accessibility. Small and mid-cap companies usually aren't considered blue chips; a market cap of $10 billion or more is a common cutoff point.
Easy to trade: Liquidity is another common feature of blue-chip companies. Blue chip stocks should be easy to find and not have high bid/ask spreads. One of the main benefits for institutional investors is the ability to buy large blocks of stock without paying high transaction fees. Blue chips usually trade millions of shares daily.
History of success: One of the reasons the Dow Jones remains a heavily-tracked index is its focus on blue-chip stocks. The stocks in the Dow are blue chips in the most robust sense, many of which have 50 or more years of business success. Blue chips tend to be older companies in less growth-focused industries, although this rule has plenty of exceptions.
Low volatility: Beta is a metric that measures a stock's volatility compared to the volatility of the overall market. A low-beta company has weaker price gyrations than the market; blue-chip stocks frequently find themselves in this low-beta category. Low volatility can be a major perk for investors who want predictability in their stocks, but low volatility also tends to mean lower returns.
Increasing dividend payouts: Not all blue-chip companies are dividend payers. A company like T-Mobile U.S. Inc. (NASDAQ: TMUS) meets all the standard criteria of a blue-chip stock but pays zero dividends. However, dividends are often a major component of blue-chip investing, and the companies that increase their dividends annually belong to a special group. For example, the Dividend Aristocrats are a group of large-cap companies in the S&P 500 that have raised their dividend payouts for 25 consecutive years.
Why Invest in Blue-Chip Companies?
Now that we've answered the question, "What are blue chip companies?", it shouldn't be too hard to understand why blue-chip investing is so popular. Raking in the highest possible gain isn't the goal for many investors. If you're young and will have plenty of time in the market, riskier investments like growth stocks or small caps make sense. These companies may have a higher risk of failure, but the rewards can be significant, and a long time horizon helps negate some risks.
Blue-chip companies don't have the promise of sky-high returns. After all, it's much easier for a small company to double its market cap than a large-cap Dow Jones component. But for retirees, institutions and other investors with a conservative slant, blue chips are a way to maintain market exposure and collect dividends without taking on too much risk. Blue chips have proven track records of capital preservation, which is why many investing strategies revolve around them.
Some common blue-chip investing techniques involve buying stocks near their 52-week lows or using dividend capture to reap the payouts without the exposure risk. But most blue-chip investors buy and hold these stocks for long periods, often decades or more. If you're looking for one of the more proven "set it and forget it" investment strategies, buying and holding blue-chip firms is a great place to start.
Examples of Blue-Chip Companies
You can find blue-chip companies in every sector of the market. Here are a few examples from differing industries:
3M Company Inc. (NYSE: MMM): 3M is a member of the Dividend Aristocrats, one of the select companies with 25-plus years of annual dividend payout increases. A member of the DJIA and S&P 500 indices, 3M has a market cap of $60 billion and operates in various industries. Most investors know 3M for its consumer products like adhesives, home improvement and first aid supplies. If you've ever tried to mount a picture frame on a wall, you've likely used a 3M product.
UnitedHealth Group Inc. (NYSE: UNH): UnitedHealth Group is one of the largest companies in the entire world. Operating in hospitals, home care, government, life sciences and pharmacy services, UnitedHealth has its hands in many healthcare systems across the United States.
Apple Inc. (NASDAQ: AAPL): Apple is a unique member of the DJIA. While indeed not the oldest member of the blue-chip index, it's now the largest by market cap and one of the most notable companies in the entire world. Apple isn't your typical blue chip — it pays a small dividend, shares many similarities with growth stocks and sells electronics and tech.
Alternatives to Blue-Chip Investing
Investing in blue-chip companies is typically a buy-and-hold strategy. Blue chips comprise most Americans' retirement portfolios, whether through direct equity, ETFs and mutual funds or target date funds. But blue-chip investing is a slow process meant to preserve capital and build wealth over time. If you have a high risk tolerance or short time horizons, you might want to consider some alternatives, such as:
Day trading: Day trading means using technical indicators to buy and sell stocks in a single trading session. You hold no positions overnight, and gains are incremental.
Swing trading: A combination of technical analysis, fundamentals and potential catalysts are employed to buy and sell stocks quickly. You may hold positions for several weeks or months or as short as a single night.
Growth investing: The opposite of blue-chip stocks would be risky growth stocks, which offer the potential for high returns and the risk of substantial losses. Growth stocks tend to be smaller companies focused on the tech or pharmaceutical industries, but growth stocks can also be large companies like Alphabet Inc. (NASDAQ: GOOG) and Netflix Inc. (NASDAQ: NFLX).
Pros and Cons of Blue-Chip Investing
Investors deciding on whether to utilize a blue-chip strategy should weigh the following pros and cons before purchasing any shares:
Pros
First, the pros:
Predictability: Blue-chip stocks have low volatility and usually provide consistent income through dividends. Investors like retirees on a fixed income need consistency and reliability, not market-smashing outperformance. Blue chips are some of the safest equities you can buy.
Low risk of large losses: While blue chip bankruptcy isn't unheard of (think Lehman Brothers and Chrysler), it is rare. Companies like JPMorgan Chase & Co. (NYSE: JPM), Colgate-Palmolive Company (NYSE: CL) and Cigna Corporation (NYSE: CI) have been around for more than 200 years! These are stocks that many investors hold for life and then pass down to heirs.
Range of industries and sectors: Every industry has leaders; you can find blue chips in all market corners. Investing in blue chips is an excellent way to build a diverse stock portfolio.
Cons
Now, the downsides:
May underperform growth-oriented peers: Reliability is important, but investors looking for outperformance may prefer minimal exposure to blue chips, especially during bull markets that reward risk-taking.
Dividends can be tax-inefficient: Be sure to understand the tax status of all your dividends, especially if holding these stocks in a taxable account. Some dividends are unqualified if certain holding periods aren't met and unqualified dividends are taxed at income level.
Cannot eliminate risk: Blue chips might be safe compared to growth stocks, but no security can escape market risk, and even the best blue chips will lose value in a bear market. The goal of blue-chip investing isn't to prevent losses but to minimize them in a downturn.
Blue Chips: Safe but Possibly Unspectacular
Blue-chip stocks are a popular asset class amongst retirees, savers and institutional investors thanks to their reliability and staying power. Many blue chips can boast a century or more of successful business practice, and their stockholders receive steady gains.
But large dividend-paying companies aren't always the best choice for every investor. If you have a long time horizon or a strong risk tolerance, something other than blue-chip investing might fit your desired goals. However, check out MarketBeat's list of the best blue-chip stocks to protect capital while still earning market returns.
FAQs
Here are a few quick answers to common blue-chip investing questions:
What is the meaning of a blue-chip company?
Blue-chip companies are large, established firms with a history of consistent returns. Blue chips are safe and reliable investments compared to riskier growth stocks.
Are Amazon and Apple blue-chip companies?
Yes, Amazon and Apple are considered blue chips thanks to their size and history, despite coming from the traditionally riskier tech sector. Apple is one of the 30 companies in the Dow Jones Industrial Average.
Which companies are blue-chip companies?
Any company with a large market cap, long business history and sturdy balance sheet can be considered a blue chip company. Investors seek out blue chips for their security and low risk of failure.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (NASDAQ: AAPL): Apple is a unique member of the DJIA. On the other hand, blue is the color casinos most frequently reserve for their highest-value chips, so the term floated into popular culture to describe assets of the highest value and quality. Cons Now, the downsides: May underperform growth-oriented peers: Reliability is important, but investors looking for outperformance may prefer minimal exposure to blue chips, especially during bull markets that reward risk-taking.
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Apple Inc. (NASDAQ: AAPL): Apple is a unique member of the DJIA. While there are no rigid criteria on what makes a company a blue chip, they all share a few common characteristics: Large market cap: A blue-chip company doesn't necessarily need to be a $500 billion behemoth, but having a large market capitalization figure is essential for stability and accessibility. If you're young and will have plenty of time in the market, riskier investments like growth stocks or small caps make sense.
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Apple Inc. (NASDAQ: AAPL): Apple is a unique member of the DJIA. While there are no rigid criteria on what makes a company a blue chip, they all share a few common characteristics: Large market cap: A blue-chip company doesn't necessarily need to be a $500 billion behemoth, but having a large market capitalization figure is essential for stability and accessibility. Pros and Cons of Blue-Chip Investing Investors deciding on whether to utilize a blue-chip strategy should weigh the following pros and cons before purchasing any shares: Pros First, the pros: Predictability: Blue-chip stocks have low volatility and usually provide consistent income through dividends.
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Apple Inc. (NASDAQ: AAPL): Apple is a unique member of the DJIA. What is a blue chip company? Why Invest in Blue-Chip Companies?
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16996.0
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2023-02-24 00:00:00 UTC
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Should Investors Buy the Dip on This Stock With Major Growth Potential?
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AAPL
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https://www.nasdaq.com/articles/should-investors-buy-the-dip-on-this-stock-with-major-growth-potential
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nan
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nan
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It's always interesting when a growth stock stumbles, not least because it can create a compelling buying opportunity. That's possibly the case with machine vision specialist Cognex (NASDAQ: CGNX). The company disappointed investors with its recent earnings, as 2022 turned out to be weaker than hoped, and the outlook for 2023 was also uninspiring. What's going on, and is Cognex a stock worth avoiding or one to buy on the dip?
Cognex disappoints investors
As CEO Robert Willett put it on the recent Q4earnings call "Our fourth-quarter results were largely in line with our guidance, but are not representative of our long-term growth expectations."
Cognex's Q4 sales declined by 2% compared to the same period last year, and its full-year sales fell by 3% versus 2021. Management doesn't offer full-year guidance, but its first-quarter forecast for revenue of $180 million to $200 million compared unfavorably to $282.4 million in sales in Q1 of 2022. It gets worse. Management guided toward first-quarter gross margin in the low-70% range compared to its long-term target level in the mid-70% range.
What went wrong
There are three main factors to consider around Cognex's earnings and guidance. First, the company suffered a loss of inventory last year due to a fire at a primary contractor. The fire forced Cognex to purchase higher-priced components from brokers in order to replenish inventory. It resulted in a $40 million increase in costs -- enough to drop Cognex's 2022 gross margin to 72% from 76%. However, the good news is the company expects a $25 million to $35 million reduction in that expense this year as it winds down buying from brokers.
Second, management spoke of a weakening economic environment, with Willett noting that he was seeing "a broader slowdown across many of our end markets as customers are wary of committing to significant investment," contributing to a "slow start to 2023."
Third, Cognex is seeing a significant slowdown in its largest current market -- logistics -- and specifically in machine vision systems in e-commerce fulfillment centers. A quick look at the company's main end markets shows the extent of the decline in 2022.
MAIN END MARKET
SHARE OF REVENUE 2022
MANAGEMENT COMMENTARY
Automotive
25%
Up 13% (constant currency basis) in 2022
Consumer electronics
20%
Up mid-teens percentage (constant currency basis) in 2022
Logistics
20%
Declined by 25% in 2022
Data source: Cognex presentations.
Cognex has two large customers that, respectively, accounted for more than 10% of revenue within consumer electronics and logistics. Apple was previously identified as a major customer, and based on analysts' questions and management's answers to them, I would bet that the unnamed large logistics customer is Amazon.com.
What tanked Cognex's logistics earnings
In a nutshell, e-commerce companies, and notably Amazon, are pulling back on large-scale investments in e-fulfillment centers as they pare back spending following a pandemic-inspired surge. In addition, the slowing economy is encouraging them to sit on their hands even more.
For example, on Amazon's recentearnings call CEO Andrew Jassy said his "No. 1 priority" is trying to reduce "our cost to serve in our operations network" while also pointing out that the company had doubled the "fulfillment center footprint" it had built over the previous 25 years in the last two years alone.
It's not just Cognex that's feeling the pinch. Honeywell (NASDAQ: HON) has a warehouse automation business, Intelligrated, within its warehouse and workflow solutions segment. It's also seeing a significant slump in revenue. Although it's not an apples-to-apples comparison, it serves to highlight just how dramatic the increase in 2021 revenue was versus the decline in 2022, with weak conditions persisting in 2023.
Data source: Honeywell presentations. YOY = year over year.
Is Cognex stock a buy on the dip?
I think there's a strong case to be made for the stock. The impact of the fire will dissipate through 2023. Honeywell's management believes its warehouse automation end market will bottom out in 2023, leading to growth in 2024. It looks more like a pause in a market that had previously surged rather than a structural decline. If that plays out, then Cognex's logistics revenue is also likely to grow next year. Meanwhile, the company continues to have excellent prospects in automotive (not least EV and EV battery-related spending). As for consumer electronics, Cognex could benefit from spending on the development of premium smartphones. We'll get more color on that in May when management has a clearer view of orders in consumer electronics.
As such, the dip in the share price is a useful buying opportunity for long-term investors, particularly now that expectations have been reset for 2023 in light of the weakness in e-commerce fulfillment spending.
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. Lee Samaha has positions in Honeywell International. The Motley Fool has positions in and recommends Amazon.com, Apple, and Cognex. 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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Cognex disappoints investors As CEO Robert Willett put it on the recent Q4earnings call "Our fourth-quarter results were largely in line with our guidance, but are not representative of our long-term growth expectations." Second, management spoke of a weakening economic environment, with Willett noting that he was seeing "a broader slowdown across many of our end markets as customers are wary of committing to significant investment," contributing to a "slow start to 2023." As such, the dip in the share price is a useful buying opportunity for long-term investors, particularly now that expectations have been reset for 2023 in light of the weakness in e-commerce fulfillment spending.
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Management doesn't offer full-year guidance, but its first-quarter forecast for revenue of $180 million to $200 million compared unfavorably to $282.4 million in sales in Q1 of 2022. Automotive 25% Up 13% (constant currency basis) in 2022 Consumer electronics 20% Up mid-teens percentage (constant currency basis) in 2022 Logistics 20% Declined by 25% in 2022 Data source: Cognex presentations. What tanked Cognex's logistics earnings In a nutshell, e-commerce companies, and notably Amazon, are pulling back on large-scale investments in e-fulfillment centers as they pare back spending following a pandemic-inspired surge.
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Automotive 25% Up 13% (constant currency basis) in 2022 Consumer electronics 20% Up mid-teens percentage (constant currency basis) in 2022 Logistics 20% Declined by 25% in 2022 Data source: Cognex presentations. What tanked Cognex's logistics earnings In a nutshell, e-commerce companies, and notably Amazon, are pulling back on large-scale investments in e-fulfillment centers as they pare back spending following a pandemic-inspired surge. 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.
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Third, Cognex is seeing a significant slowdown in its largest current market -- logistics -- and specifically in machine vision systems in e-commerce fulfillment centers. We'll get more color on that in May when management has a clearer view of orders in consumer electronics. That's right -- they think these 10 stocks are even better buys.
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16997.0
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2023-02-24 00:00:00 UTC
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Sirius XM (SIRI) and Toyota Collaborate to Celebrate Hybrids
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AAPL
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https://www.nasdaq.com/articles/sirius-xm-siri-and-toyota-collaborate-to-celebrate-hybrids
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nan
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nan
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Sirius XM SIRI havs recently announced a collaboration with Toyota Motor TM to celebrate all hybrids, which can be people or cars. Hybrid is meant to be getting the best of both the worlds.
This digital marketing campaign promotes the latest Toyota Camry hybrid and RAV4 hybrid. Both of these cars would come with three-month subscription of Sirius XM platinum plan. This plan includes Sirius XM’s full exclusive lineup of exclusive curated content and SXM app which gives SiriusXM access outside the vehicle and on connected devices and speakers.
Sirius and Toyota are bringing onboard Katya Echazarreta, an electrical engineer and the first Mexican-born woman to travel to the outer space.
The campaign has started from Feb 22, 2023, in which Enchazarreta will share her inspiring stories in a series of digital and social ads and celebrate the hybrid in all of us. The campaign would also consist of a fun interactive filter which will show that we all are hybrids in one way or another.
Inspired by Enchazarrets, Sirius XM also collaborates with Girls Who Code, helping them to close the gender disparity in technology by supporting engineers who identify as girls or non-binary. This initiative will help more students to develop computer skills needed for opportunities in the 21st century.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
Slow Subscriber Growth Expectations Create Dull Prospects
This Zacks Rank #3 (Hold) company continues to reduce its marketing costs which might result in a smaller number of new subscriber additions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sales and marketing cost stands at $224 million for the fourth quarter of 2022 compared with $315 million in the year ago quarter, indicating a 28.9% decrease in sales and marketing cost.
The management is looking to opt for a more conservative marketing spend for most of the year before the company relaunches its streaming experience in the fourth quarter. This would most likely result in lower net subscriber additions in the short run.
Shares of Sirius XM have declined 27.6% in the past year, comparing with the Zacks Consumer Discretionary sector’s decline of 19.2% in the same period.
The management has been planning to boost their subscribers in a very competitive market by offering quality and variety of content to its customers. The main competitors of Sirius XM in the U.S. market are Spotify SPOT, Apple AAPL music and Amazon Music.
It is difficult to differentiate these streaming music companies from one another at a glance but the companies are separated mainly by the content offered and price.
According to a PCMag report, Spotify is priced at $9.99 per month, Amazon music at $8.99 per month and both Apple music and Sirius XM are priced at $10.99 per month in the U.S. market.
Some notable collaborations of Sirius XM are with NFL, NBA, NHL MLB, Formula 1 NASCAR and some famous podcasts are Crime Junkie, Office Ladies, Dateline NBC, Pod Save America and Conan O'Brien Needs a Friend.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The main competitors of Sirius XM in the U.S. market are Spotify SPOT, Apple AAPL music and Amazon Music. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Sirius XM SIRI havs recently announced a collaboration with Toyota Motor TM to celebrate all hybrids, which can be people or cars.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. The main competitors of Sirius XM in the U.S. market are Spotify SPOT, Apple AAPL music and Amazon Music. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Slow Subscriber Growth Expectations Create Dull Prospects This Zacks Rank #3 (Hold) company continues to reduce its marketing costs which might result in a smaller number of new subscriber additions.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. The main competitors of Sirius XM in the U.S. market are Spotify SPOT, Apple AAPL music and Amazon Music. Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Slow Subscriber Growth Expectations Create Dull Prospects This Zacks Rank #3 (Hold) company continues to reduce its marketing costs which might result in a smaller number of new subscriber additions.
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The main competitors of Sirius XM in the U.S. market are Spotify SPOT, Apple AAPL music and Amazon Music. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. This digital marketing campaign promotes the latest Toyota Camry hybrid and RAV4 hybrid.
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16998.0
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2023-02-23 00:00:00 UTC
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Apple's Secret Plans to Dominate (Another) $16 Billion Market
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AAPL
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https://www.nasdaq.com/articles/apples-secret-plans-to-dominate-another-%2416-billion-market
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nan
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nan
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Apple (NASDAQ: AAPL) has made no secret about its ambitions in the healthcare market. Over the past several years, the company has developed a custom chip to process data from the health and wellness sensors on the Apple Watch, partnered with the Department of Veterans Affairs to jump-start the Health Records feature on the iPhone, and debuted a heart rate monitor in the Apple Watch that can detect potentially life-threatening spikes in a user's heart rate.
Now, Apple has set its sights on helping those with diabetes.
Image source: Getty Images.
A secret project
Apple is working on a top-secret project that will help the company make additional inroads into the healthcare field, according to a report by Bloomberg. This mission, which has been kept under wraps for more than a decade, involves measuring a diabetic's sugar levels without the need to draw blood -- one of the more painful aspects of a patient's ongoing disease-management regimen.
Apple has developed a non-invasive way to test blood glucose levels employing a specialized silicon photonics chip for use in a process known as optical absorption spectroscopy. While it sounds rather complicated, it's actually quite simple. The process uses a laser to shine a light, in a specific wavelength, into the skin. By measuring how much light is reflected back, the system can measure the amount of glucose -- or blood sugar -- present.
Apple has achieved major milestones recently, according to the report, and has reached the proof-of-concept stage, showing that the technology is feasible. Apple eventually plans to integrate the glucose monitoring technology into the Apple Watch.
Solving a common complaint
One of the biggest challenges for those who suffer from diabetes is keeping tabs on blood sugar levels. In most instances, this involves the patient pricking their finger and using a drop of blood to determine glucose levels by using an in-home testing kit. For the average diabetic, blood sugar testing is recommended between four and 10 times per day, resulting in a lot of finger sticks, which can quickly become a painful process.
There are other, less painful methods.
Several companies -- including DexCom and Abbott Laboratories, among others -- offer continuous glucose monitoring (CGM) solutions that measure glucose levels in real time, 24 hours per day, while allowing patients to track changes over time. These systems involve a wire or sensor inserted under the skin, which continuously detects and updates blood sugar levels, sending the information to a monitoring device worn by the patient. These systems also have limitations, as the sensor must be changed every seven to 14 days.
A sizable market
This could be big business for Apple. It's estimated that more than 10% of the U.S. population, or roughly 34 million people, have diabetes. Worldwide, about 537 million people suffer from the disease, but that number is expected to jump to 643 million by 2030 and 783 million by 2045.
If Apple is successful in its endeavor, the company could quickly make progress in the CGM market, which is expected to top $16 billion by 2030.
While this would no doubt be a positive development for Apple shareholders, it's also important to put it in context. In the company's fiscal 2022 (which ended Sept. 24, 2022), Apple generated revenue of nearly $394 billion, so even if the tech titan dominated the market, the new market would be a drop in the bucket compared to existing revenue.
That said, Apple never stops innovating, creating a sticky and ever-expanding ecosystem for its iPhone users, who now number more than 1.5 billion. That's just one of many reasons Apple stock is a 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
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends DexCom 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.
|
Apple (NASDAQ: AAPL) has made no secret about its ambitions in the healthcare market. This mission, which has been kept under wraps for more than a decade, involves measuring a diabetic's sugar levels without the need to draw blood -- one of the more painful aspects of a patient's ongoing disease-management regimen. Apple has developed a non-invasive way to test blood glucose levels employing a specialized silicon photonics chip for use in a process known as optical absorption spectroscopy.
|
Apple (NASDAQ: AAPL) has made no secret about its ambitions in the healthcare market. This mission, which has been kept under wraps for more than a decade, involves measuring a diabetic's sugar levels without the need to draw blood -- one of the more painful aspects of a patient's ongoing disease-management regimen. Several companies -- including DexCom and Abbott Laboratories, among others -- offer continuous glucose monitoring (CGM) solutions that measure glucose levels in real time, 24 hours per day, while allowing patients to track changes over time.
|
Apple (NASDAQ: AAPL) has made no secret about its ambitions in the healthcare market. Over the past several years, the company has developed a custom chip to process data from the health and wellness sensors on the Apple Watch, partnered with the Department of Veterans Affairs to jump-start the Health Records feature on the iPhone, and debuted a heart rate monitor in the Apple Watch that can detect potentially life-threatening spikes in a user's heart rate. Apple eventually plans to integrate the glucose monitoring technology into the Apple Watch.
|
Apple (NASDAQ: AAPL) has made no secret about its ambitions in the healthcare market. This mission, which has been kept under wraps for more than a decade, involves measuring a diabetic's sugar levels without the need to draw blood -- one of the more painful aspects of a patient's ongoing disease-management regimen. For the average diabetic, blood sugar testing is recommended between four and 10 times per day, resulting in a lot of finger sticks, which can quickly become a painful process.
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16999.0
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2023-02-23 00:00:00 UTC
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Have $1,000? 2 Warren Buffett Stocks to Buy
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AAPL
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https://www.nasdaq.com/articles/have-%241000-2-warren-buffett-stocks-to-buy-3
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nan
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nan
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Warren Buffett's holding company Berkshire Hathaway submitted its 13F filing to the Securities and Exchange Commission on Feb. 14, giving investors insight into the Oracle of Omaha's investing moves during the fourth quarter of 2022.
While Berkshire didn't initiate any positions during the quarter, it did add to its existing holdings in certain companies. Apple (NASDAQ: AAPL), which is Berkshire's largest holding at 41.4% of the total portfolio, was one of those stocks. Berkshire added roughly 334,000 shares of Apple during the quarter.
Meanwhile, Berkshire slashed its position in multiple companies, but it continues to hold a stake in Snowflake (NYSE: SNOW), a cloud platform provider that is sitting on a huge addressable market.
If you have $1,000 to spare -- which means you don't have any high-interest credit card debt, your bills are paid, and you have enough saved for a rainy day -- then you might want to buy these Buffett stocks. Here's a closer look at what makes each appealing.
1. Apple
Shares of Apple have rallied strongly in 2023 so far, gaining 19%. That's despite weak fiscal 2023 first-quarter results (for the period ending Dec. 31), which revealed a slide in revenue and earnings.
Quarterly revenue was down 5.5% year over year to $117 billion. Earnings shrunk to $1.88 per share from $2.10. The numbers missed Wall Street's expectations for $1.94 per share in earnings on $121.1 billion in revenue.
Apple's poor performance last quarter can be attributed to the weakness in smartphone sales. Market research firm IDC estimates that global smartphone sales plunged 18.3% year over year in the fourth quarter of 2022 to 300.3 million units. Apple's shipments dropped nearly 15% year over year to 72.3 million units.
As a result, iPhone revenue dropped an estimated 8.2% over the prior-year period. Given that the device generated 56% of Apple's top line last quarter, the weak sales of its flagship product weighed heavily on its performance. But a turnaround in 2023 is certainly possible. IDC believes that global smartphone sales might recover 2.8% in 2023 following an 11.3% drop in 2022.
Although IDC maintains that its projection could be hampered by inflation and macroeconomic concerns that may weigh on consumer spending, I have faith in the recovery narrative. After all, inflation is cooling, with the U.S. Department of Labor indicating a 6.4% year-over-year increase in the consumer price index (CPI) in January 2023 compared to 9.1% in June 2022. And Goldman Sachs expects inflation to cool further to 3.1% in the fourth quarter of 2023.
Meanwhile, the International Monetary Fund (IMF) now expects the U.S. economy to grow 1.4% in 2023 compared to its prior forecast of 1%. IMF also bumped its global growth forecast to 2.9% from 2.7%. Combine this expected growth with cooling inflation and consumer spending could increase leading to even stronger growth this year. In other words, while there are certainly plenty of challenges ahead, a recovery for Apple could be on the way in 2023.
Likewise, an acceleration in 5G smartphone shipments could be another tailwind for the company this year. The daily newspaper DigiTimes forecasts that 5G smartphone sales could clock 20%-plus growth in 2023 following a 15% increase in 2022. And Apple controlled over 29% of the 5G smartphone market last year.
The company is also expected to move into a new market this year. It will reportedly release its mixed-reality headset (allowing users to interact with both physical and virtual items and environments) in June, according to Bloomberg. The device is expected to cost around $3,000. While that's steep, Apple could introduce a budget version of the device in early 2024.
The company's move into mixed reality could unlock a huge opportunity. Mordor Intelligence estimates that this market could clock annual growth of 41.8% through 2028, driven by its adoption in education, defense, and industry.
So it won't be surprising to see an acceleration in Apple's growth in 2024 and 2025 following a down year in fiscal 2023, when its revenue is expected to drop by 1.5% to $389 billion.
AAPL Revenue Estimates for Current Fiscal Year data by YCharts.
In all, a potential recovery in smartphones, a move into new markets, and the solid health of its services business could be tailwinds for Apple as the year progresses. That might explain why Buffett bought the stock. And you can consider doing so, too, if you have $1,000 in investable cash.
2. Snowflake
Snowflake's impressive growth and the size of its addressable opportunity make this cloud stock an attractive bet. The stock was severely punished in the 2022 sell-off. But better times look to be ahead thanks to the emergence of new catalysts and the strength of its existing markets.
Among other services, Snowflake provides data warehousing, data mining, machine learning (ML), and cybersecurity through its cloud-based platform. The company estimates that it has a total addressable market of $248 billion, which could expand further thanks to the growing popularity of generative artificial intelligence (AI), used in applications such as chatbots.
For example, OpenAI's chatbot ChatGPT was fed with 570 gigabytes of text data from various sources on the internet, including books, articles, blog posts, and Wikipedia. That allows ChatGPT to provide conversational responses using 300 billion words that have been fed into the chatbot.
Snowflake allows customers to access a massive global data network from a single access point, thereby reducing the time required to look for specific data. As a result, the demand for Snowflake's offerings should increase with a jump in the adoption of generative AI solutions.
Generative AI is expected to produce 10% of all the data produced globally by 2025 compared to only 1% at present, according to Gartner.
These AI applications can create images, text, audio, video, and even code based on user inputs. So they need quick access to massive amounts of data, and this is where Snowflake could step in. It allows users to store filtered data for future analysis (data warehousing), study massive amounts of information to generate meaningful insights (data science), and store unfiltered data in "data lakes."
This end-market opportunity is why Snowflake is forecast to clock powerful growth. The company will release its fiscal 2023 results on March 1, and it is expected to end the year with a 68% spike in revenue to $2 billion. More importantly, its top line is anticipated to head significantly higher in the coming years.
SNOW Revenue Estimates for Current Fiscal Year data by YCharts.
So investors looking to buy a growth stock from Warren Buffett's Berkshire portfolio might try Snowflake if they have $1,000 to spare based on its impressive long-term upside.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Goldman Sachs Group, and Snowflake. The Motley Fool recommends Gartner and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ: AAPL), which is Berkshire's largest holding at 41.4% of the total portfolio, was one of those stocks. AAPL Revenue Estimates for Current Fiscal Year data by YCharts. Warren Buffett's holding company Berkshire Hathaway submitted its 13F filing to the Securities and Exchange Commission on Feb. 14, giving investors insight into the Oracle of Omaha's investing moves during the fourth quarter of 2022.
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AAPL Revenue Estimates for Current Fiscal Year data by YCharts. Apple (NASDAQ: AAPL), which is Berkshire's largest holding at 41.4% of the total portfolio, was one of those stocks. Market research firm IDC estimates that global smartphone sales plunged 18.3% year over year in the fourth quarter of 2022 to 300.3 million units.
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Apple (NASDAQ: AAPL), which is Berkshire's largest holding at 41.4% of the total portfolio, was one of those stocks. AAPL Revenue Estimates for Current Fiscal Year data by YCharts. Market research firm IDC estimates that global smartphone sales plunged 18.3% year over year in the fourth quarter of 2022 to 300.3 million units.
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Apple (NASDAQ: AAPL), which is Berkshire's largest holding at 41.4% of the total portfolio, was one of those stocks. AAPL Revenue Estimates for Current Fiscal Year data by YCharts. Quarterly revenue was down 5.5% year over year to $117 billion.
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