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17000.0
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2023-02-23 00:00:00 UTC
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7 Stocks That Hedge Funds Are Flooding Into. Should You?
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AAPL
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https://www.nasdaq.com/articles/7-stocks-that-hedge-funds-are-flooding-into.-should-you
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With so many vagaries clouding the present market environment, one possible avenue for success is to align your portfolio with your favorite hedge fund stocks. Simultaneously celebrated and vilified, this special brand of institutional investor might give you an edge. Primarily, your favorite hedge fund stocks typically stem from the top experts in the stock-picking game. And these institutions only hire the absolute best analysts and provide them with unparalleled technical resources. Sure, there’s a tendency to dismiss such experts as clowns. However, the reality is that more often than not, they know what they’re doing.
Second, investors may find comfort in the safety of numbers. It’s one thing when one institutional investor places a heavy wager. It’s quite another when several of them make the same bet. Therefore, aligning with your favorite hedge fund stocks might improve your odds. Below are some of the most targeted plays – and whether you should get involved or not.
MSFT Microsoft $254.77
AAPL Apple $149.40
AMZN Amazon $95.82
BRK-A Berkshire Hathaway $459,375.00
TSLA Tesla $202.07
SCHW Charles Schwab $78.97
PLD Prologis $124.01
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Per the website, this category of institutional investor acquired a total of $58.99 billion worth of MSFT since the beginning of the first quarter of 2023. The top three investors are Norges Bank (buying $20.40 billion), Morgan Stanley ($3.46 billion), and BlackRock ($3.12 billion).
Financially, Microsoft arguably represents a no-brainer among popular hedge fund stocks. Per Gurufocus.com’s proprietary calculations for fair market value, MSFT rates as modestly undervalued. On the balance sheet, the company features solid strengths, including an Altman Z-Score of 8.31 (reflecting a very low bankruptcy risk). As well, it features strong growth and outstanding profitability metrics.
Presently, Wall Street analysts peg MSFT as a consensus strong buy. Further, their average price target stands at $291.70, implying 16% upside potential. In the trailing year, MSFT slipped over 10% as the technology sector suffered badly in 2022. However, since the January opener, MSFT gained 5%.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. The top investor so far in Q1 2023 is Norges Bank at $22.44 billion. Coming in second and third were Morgan Stanley ($3.84 billion) and Barclays ($1.57 billion).
On paper, Apple should be reeling from the pressures impacting the consumer economy. However, its brand remains as powerful as ever. Currently, Gurufocus.com labels AAPL as modestly undervalued based on its proprietary FMV calculations. Not surprisingly, though, the greatest strengths center on its operational dominance.
For instance, Apple’s three-year revenue growth rate stands at 20%, outpacing 85.62% of its competitors. Its net margin pings at 24.56%, beating out 95.52% of rivals. Right now, Wall Street analysts peg AAPL as a consensus strong buy. Further, their average price target stands at $171.94, implying over 15% upside potential.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Earning its reputation in the e-commerce space, Amazon (NASDAQ:AMZN) ranks among the favorite hedge fund stocks for its massive footprint. Per HedgeFollow.com, the company comes in fourth place among buy-ins from these institutional investors, which bought $41.62 billion worth. Again, the top investor was Norges Bank, in this case with an exposure of $9.69 billion. Morgan Stanley and JPMorgan Chase rounded out the top three at $2.04 billion and $1.38 billion, respectively.
To be fair, Amazon represents a tricky narrative because of the beating it took in 2022. In the trailing year, shares gave up nearly 34% of equity value. As well, Gurufocus.com warns that AMZN may be a possible value trap. Finally, in the past year, the net margin slipped slightly into negative territory.
On the other hand, Amazon still represents a growth machine. Its three-year revenue growth rate stands at 21.9%, beating out 84.28% of its rivals. Combined with its brand power and myriad relevancies, it should be worth a look. Presently, covering analysts peg AMZN as a consensus strong buy. Their average price target stands at $137.05, implying 43% upside potential.
Berkshire Hathaway (BRK-A)
Source: IgorGolovniov / Shutterstock.com
When it comes to discussing Berkshire Hathaway (NYSE:BRK-A), presumably most publications focus on its Class B shares. Regarding popular hedge fund stocks, however, we’re going to be talking about Class A shares – the one where a single share costs more than the average U.S. home.
Ranking fifth, hedge funds acquired $29.96 billion worth of BRK-A. The top investor was Perigon Wealth Management at $15.51 billion. Next came CI Private Wealth at $6.81 billion and Norges Bank at $2.58 billion. Financially, Gurufocus.com warns its readers that BRK.A may be modestly overvalued. That said, the industrial conglomerate attracts attention because of its wide-reaching wagers.
Plus, it features solid operations. Most notably, its three-year revenue growth rate stands at 19.7%, outpacing 81.3% of its peers. Also, its book growth rate during the same period is 17.3%, beating out 84.3% of the industry. Turning to Wall Street, covering analysts peg BRK-A as a consensus moderate buy. Further, their average price target stands at $542,568, implying nearly 18% upside potential.
Tesla (TSLA)
Source: Zigres / Shutterstock.com
As things stand now, Tesla (NASDAQ:TSLA) ranks as the top idea among popular hedge fund stocks. These institutional investors bought $60.36 billion worth of TSLA. Further, the top hedge fund was Natixis, buying up $32.35% billion worth of shares. Rounding out the top three were Norges Bank ($5.31 billion) and Susquehanna International Group ($2.17 billion). So, why didn’t I mention Tesla as the top name among popular hedge fund stocks? Mainly, it’s not clear that everyone should acquire TSLA. It really depends on your risk-reward profile.
Objectively, TSLA appears significantly overvalued. At the time of writing, the market prices TSLA at a trailing multiple of 55.44. Also, TSLA trades at a forward multiple of 50.14. Both are overwhelmingly overvalued for the underlying industry. Adding to the pressures, electric vehicles tend to be quite expensive at this juncture. Further, not everyone has access to home charging. Here’s the other thing. Although covering analysts peg TSLA as a consensus moderate buy, their average price target pings at $202.46. That’s less than 1% upside potential. If you believe in it, go for it. However, it might not be for everyone.
Charles Schwab (SCHW)
Source: Vova Shevchuk / Shutterstock.com
Another example of popular hedge fund stock that might not be everyone’s cup of tea is Charles Schwab (NYSE:SCHW). Coming in sixth place, hedge funds acquired $23.93 billion worth of the financial services firm. The top investor was Toronto Dominion Bank at $17.47 billion. The second place belongs to Norges Bank ($1.23 billion) and third to Morgan Stanley ($664.26 million).
Overall, SCHW isn’t a bad bet. However, it features confusing fundamentals. On the optimistic front, bear market cycles tend to let the cream rise to the top regarding wealth management businesses. I’ve mentioned this concept several times before. However, it does come with the risk that during down cycles, people tend not to invest. Further, the Federal Reserve poses serious problems. Theoretically, higher interest rates mean greater profitability for financial packages. But it also means fewer incentives to take those packages because of higher borrowing costs. On the Street, analysts peg SCHW as a consensus moderate buy. Further, their average price target stands at $91.05, implying nearly 14% upside potential.
Prologis (PLD)
Source: shutterstock.com/CC7
A real estate investment trust (REIT), Prologis (NYSE:PLD) invests in logistics facilities. Per HedgeFollow.com, Prologis ranks as number 11 among popular hedge fund stocks. Collectively, these institutional investors acquired $18.07 billion worth of PLD stock. Acquiring the most was Vanguard Group at $2.59 billion. Rounding out the top three were BlackRock at $1.72 billion and Cohen & Steers at $1.43 billion.
In any other circumstance, Prologis might be a no-brainer acquisition. And for those that believe in the broader post-pandemic economic recovery, it might still be. However, PLD might not be the most appropriate investor for everyone’s needs.
Setting aside that it appears objectively overvalued at this juncture, Prologis faces concerns associated with the consumer economy. Should the Fed get too aggressive in its bid to control inflation, the logistics facilities business might suffer. So far, though, Wall Street remains optimistic. Presently, covering analysts peg PLD as a consensus strong buy. Also, their average price target stands at $138.71, implying nearly 13% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Stocks That Hedge Funds Are Flooding Into. Should You? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock.
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MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock.
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MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock.
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MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock.
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17001.0
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2023-02-23 00:00:00 UTC
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U.S. likely to cap level of S.Korean chips made in China- U.S. official
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AAPL
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https://www.nasdaq.com/articles/u.s.-likely-to-cap-level-of-s.korean-chips-made-in-china-u.s.-official
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nan
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nan
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SEOUL, Feb 24 (Reuters) - The United States will likely limit the level of advanced semiconductors made by South Korean companies in China, a senior U.S. official said.
In October, South Korea's Samsung Electronics 005930.KS and SK Hynix 000660.KS, the world's top memory chip makers, received an one-year reprieve from U.S. export restrictions aimed at thwarting Beijing's technological ambitions and blocking its military advances.
"What will likely be is a cap on the levels that they can grow to in China," said Alan Estevez, the U.S. Commerce Department's under secretary for industry and security, when asked what would happen after the waiver ended.
"If you're at whatever layer of NAND, we will stop it somewhere in that range," Estevez said, referring to a flash memory product manufactured by Samsung and SK. He added that the U.S. government was in deep dialogue with the South Korean chipmakers.
Samsung Electronics and SK Hynix were not immediately available for comment.
Samsung and SK Hynix, which control about half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, and Amazon AMZN.O.
Earlier, an American official acknowledged the existence of a deal with Japan and the Netherlands for those countries to impose new restrictions on exports of chipmaking tools to China.
(Reporting by Ju-min Park and Heekyong Yang; Editing by Kim Coghill)
((ju-min.park@thomsonreuters.com; Reuters Messaging: ju-min.park.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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Samsung and SK Hynix, which control about half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, and Amazon AMZN.O. SEOUL, Feb 24 (Reuters) - The United States will likely limit the level of advanced semiconductors made by South Korean companies in China, a senior U.S. official said. In October, South Korea's Samsung Electronics 005930.KS and SK Hynix 000660.KS, the world's top memory chip makers, received an one-year reprieve from U.S. export restrictions aimed at thwarting Beijing's technological ambitions and blocking its military advances.
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Samsung and SK Hynix, which control about half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, and Amazon AMZN.O. In October, South Korea's Samsung Electronics 005930.KS and SK Hynix 000660.KS, the world's top memory chip makers, received an one-year reprieve from U.S. export restrictions aimed at thwarting Beijing's technological ambitions and blocking its military advances. Samsung Electronics and SK Hynix were not immediately available for comment.
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Samsung and SK Hynix, which control about half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, and Amazon AMZN.O. SEOUL, Feb 24 (Reuters) - The United States will likely limit the level of advanced semiconductors made by South Korean companies in China, a senior U.S. official said. In October, South Korea's Samsung Electronics 005930.KS and SK Hynix 000660.KS, the world's top memory chip makers, received an one-year reprieve from U.S. export restrictions aimed at thwarting Beijing's technological ambitions and blocking its military advances.
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Samsung and SK Hynix, which control about half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, and Amazon AMZN.O. SEOUL, Feb 24 (Reuters) - The United States will likely limit the level of advanced semiconductors made by South Korean companies in China, a senior U.S. official said. In October, South Korea's Samsung Electronics 005930.KS and SK Hynix 000660.KS, the world's top memory chip makers, received an one-year reprieve from U.S. export restrictions aimed at thwarting Beijing's technological ambitions and blocking its military advances.
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17002.0
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2023-02-23 00:00:00 UTC
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ETF Strategies to Protect Against Inflation
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AAPL
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https://www.nasdaq.com/articles/etf-strategies-to-protect-against-inflation
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nan
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nan
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(1:30) - Breaking Down The Current State of Inflation Right Now
(5:30) - What Is Best Way To Gauge Inflation?
(9:50) - Can Investors Still Expect A Soft Landing From The Fed?
11:30) - What Are The Risks of Investing Into TIPS?
(14:40) - Quadratic Intereste Rate Volatility and Inflation Hedge ETF: IVOL
(20:10) - Should You Be Increasing Your Fixed Income Investments?
(24:20) - Episode Roundup: FCPI, INFL, RAAX
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Nancy Davis, founder & CIO of Quadratic Capital Management, about hedging against inflation.
Recent CPI and PPI readings suggest that inflation may remain at elevated levels in the coming months. Stocks have been under pressure over the past few days as investors worry that persistent inflationary pressures could force the Fed to raise interest rates more aggressively than previously expected.
Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF IVOL, which seeks to hedge relative interest rate movements and benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income.
There are several other options available to investors who want to add inflation protection in their portfolios. Commodities are generally positively correlated with inflation and offer some inflation hedge. (See: What Lies Ahead for Commodity ETFs in 2023)
High-quality stocks may also provide protection against inflation over the longer term, as these companies have pricing power and are able to grow their revenues and earnings even in an inflationary environment.
The Fidelity Stocks For Inflation ETF FCPI invests in high quality companies that tend to outperform during inflationary times. Apple AAPL and Microsoft MSFT are its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF INFL holds companies like Archer Daniels Midland ADM and Bunge BG that are expected to benefit from inflation.
The VanEck Inflation Allocation ETF RAAX provides exposure to inflation fighting real assets through ETPs. The AXS Astoria Inflation Sensitive ETF PPI targets asset classes that are expected to benefit from an inflationary environment.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Bunge Limited (BG) : Free Stock Analysis Report
VanEck Inflation Allocation ETF (RAAX): ETF Research Reports
Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports
Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports
Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports
AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL and Microsoft MSFT are its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Bunge Limited (BG) : Free Stock Analysis Report VanEck Inflation Allocation ETF (RAAX): ETF Research Reports Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports To read this article on Zacks.com click here. (See: What Lies Ahead for Commodity ETFs in 2023) High-quality stocks may also provide protection against inflation over the longer term, as these companies have pricing power and are able to grow their revenues and earnings even in an inflationary environment.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Bunge Limited (BG) : Free Stock Analysis Report VanEck Inflation Allocation ETF (RAAX): ETF Research Reports Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are its top holdings. Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF IVOL, which seeks to hedge relative interest rate movements and benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Bunge Limited (BG) : Free Stock Analysis Report VanEck Inflation Allocation ETF (RAAX): ETF Research Reports Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are its top holdings. Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF IVOL, which seeks to hedge relative interest rate movements and benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Bunge Limited (BG) : Free Stock Analysis Report VanEck Inflation Allocation ETF (RAAX): ETF Research Reports Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are its top holdings. The AXS Astoria Inflation Sensitive ETF PPI targets asset classes that are expected to benefit from an inflationary environment.
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17003.0
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2023-02-23 00:00:00 UTC
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After Hours Most Active for Feb 23, 2023 : PBF, SQ, SBSW, QQQ, CVNA, CSX, LBRT, WDC, AAPL, CTSH, PM, MSFT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-23-2023-%3A-pbf-sq-sbsw-qqq-cvna-csx-lbrt-wdc-aapl-ctsh-pm
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The NASDAQ 100 After Hours Indicator is down -15.21 to 12,164.93. The total After hours volume is currently 82,756,001 shares traded.
The following are the most active stocks for the after hours session:
PBF Energy Inc. (PBF) is +0.01 at $43.88, with 3,179,373 shares traded. PBF's current last sale is 88.65% of the target price of $49.5.
Block, Inc. (SQ) is +1.22 at $75.37, with 2,273,410 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
Sibanye Stillwater Limited (SBSW) is +0.1 at $8.78, with 2,070,895 shares traded.SBSW is scheduled to provide an earnings report on 3/2/2023, for the fiscal quarter ending Dec2022.
Invesco QQQ Trust, Series 1 (QQQ) is -0.3 at $296.52, with 2,060,634 shares traded. This represents a 16.62% increase from its 52 Week Low.
Carvana Co. (CVNA) is -0.31 at $9.77, with 1,750,370 shares traded. CVNA's current last sale is 97.7% of the target price of $10.
CSX Corporation (CSX) is unchanged at $30.65, with 1,748,633 shares traded. CSX's current last sale is 87.57% of the target price of $35.
Liberty Energy Inc. (LBRT) is unchanged at $15.15, with 1,696,711 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.82. LBRT's current last sale is 68.86% of the target price of $22.
Western Digital Corporation (WDC) is +0.01 at $39.80, with 1,647,739 shares traded. WDC's current last sale is 79.6% of the target price of $50.
Apple Inc. (AAPL) is -0.2 at $149.20, with 1,633,227 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".
Cognizant Technology Solutions Corporation (CTSH) is unchanged at $64.29, with 1,567,914 shares traded. CTSH's current last sale is 96.68% of the target price of $66.5.
Philip Morris International Inc (PM) is -0.0571 at $99.77, with 1,566,798 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 $1.6. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
Microsoft Corporation (MSFT) is +0.06 at $254.83, with 1,518,913 shares traded. As reported by Zacks, the current mean recommendation for MSFT 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 -0.2 at $149.20, with 1,633,227 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
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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 -0.2 at $149.20, with 1,633,227 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 -0.2 at $149.20, with 1,633,227 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 82,756,001 shares traded.
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Apple Inc. (AAPL) is -0.2 at $149.20, with 1,633,227 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -15.21 to 12,164.93.
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17004.0
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2023-02-23 00:00:00 UTC
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US STOCKS-Wall St ends topsy-turvy day higher, S&P snaps losing streak
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-topsy-turvy-day-higher-sp-snaps-losing-streak
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nan
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nan
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By David French
Feb 23 (Reuters) - The main Wall Street benchmarks closed a topsy-turvy Thursday in positive territory, with the S&P 500 snapping a four-session losing streak, as investors grappled with how interest rate policy might affect the U.S. economy.
Stock markets have been volatile this year, pulling back in February after a strong January as investors try to figure out what the U.S. Federal Reserve will do with interest rates. Hawkish comments from policymakers have been interspersed with data pointing to a strong American economy.
On Thursday, the Labor Department said the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, reflecting tight labor market conditions.
A separate report confirmed the economy grew solidly in the fourth quarter, though rising inventory levels were responsible for much of the increase.
U.S. gross domestic product increased 2.7% in the fourth quarter, according to the government's second estimate. Economists were forecasting a 2.9% rise.
"If you're a bull, you can pull out plenty of things that are supportive, and if you're bear there are plenty of things to point to that are supportive," said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers Solutions.
"There are so many cross currents that are moving in very different directions, I think it's very difficult to fall back on one or two things. That's creating a lot of hand-wringing uncertainty, and we're range-trading as a result of it."
For part of the day, the S&P was trading below its 50-day moving average of 3,980 points, before rallying in the afternoon.
Influencing this intraday dip were large trades in short-dated derivatives that piled selling pressure on the market, according to Nomura strategist Charlie McElligott.
Helping provide confidence to buyers was positive earnings from Nvidia CorpNVDA.O, which surged after forecasting quarterly sales above estimates and reporting a surge in the use of its chips to power artificial intelligence services.
Other chipmakers also gained, including Broadcom Inc AVGO.O and Qualcomm Inc QCOM.O. The Philadelphia SE Semiconductor index .SOX climbed.
According to preliminary data, the S&P 500 .SPX gained 21.09 points, or 0.53%, to end at 4,012.14 points, while the Nasdaq Composite .IXIC gained 83.26 points, or 0.72%, to 11,590.33. The Dow Jones Industrial Average .DJI rose 113.99 points, or 0.34%, to 33,159.08.
Many of the 11 major S&P 500 sectors rose. Higher crude prices pushed energy .SPNY to be one of the biggest gainers on the day, and also helped the index halt a losing run at seven. This tied its worst stretch since an eight-session skid in March 2017.
Among the fallers was communication services .SPLRCL, which recorded its fifth straight decline, matching another five-loss streak in October. It was weighed by Netflix IncNFLX.O, which slipped on reports that the streaming service was cutting subscription prices in 30 countries.
Among other stocks, eBay IncEBAY.O slid after warning of dour demand in the first half of 2023 due to strained consumer spending in the United States and Europe.
Moderna Inc MRNA.O fell after the vaccine maker reaffirmed its annual sales forecast of $5 billion for its COVID-19 vaccines despite its fourth-quarter sales exceeding estimates.
However, Bumble Inc BMBL.O jumped. The owner of the eponymous dating app projected annual revenue growth above market estimates on optimism over rising paying users.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru and David French in New York; Editing by Savio D'Souza, Arun Koyyur, Anil D'Silva and David Gregorio)
((johann.mcherian@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 David French Feb 23 (Reuters) - The main Wall Street benchmarks closed a topsy-turvy Thursday in positive territory, with the S&P 500 snapping a four-session losing streak, as investors grappled with how interest rate policy might affect the U.S. economy. Stock markets have been volatile this year, pulling back in February after a strong January as investors try to figure out what the U.S. Federal Reserve will do with interest rates. Influencing this intraday dip were large trades in short-dated derivatives that piled selling pressure on the market, according to Nomura strategist Charlie McElligott.
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Hawkish comments from policymakers have been interspersed with data pointing to a strong American economy. Helping provide confidence to buyers was positive earnings from Nvidia CorpNVDA.O, which surged after forecasting quarterly sales above estimates and reporting a surge in the use of its chips to power artificial intelligence services. The Dow Jones Industrial Average .DJI rose 113.99 points, or 0.34%, to 33,159.08.
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"If you're a bull, you can pull out plenty of things that are supportive, and if you're bear there are plenty of things to point to that are supportive," said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers Solutions. Helping provide confidence to buyers was positive earnings from Nvidia CorpNVDA.O, which surged after forecasting quarterly sales above estimates and reporting a surge in the use of its chips to power artificial intelligence services. According to preliminary data, the S&P 500 .SPX gained 21.09 points, or 0.53%, to end at 4,012.14 points, while the Nasdaq Composite .IXIC gained 83.26 points, or 0.72%, to 11,590.33.
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A separate report confirmed the economy grew solidly in the fourth quarter, though rising inventory levels were responsible for much of the increase. According to preliminary data, the S&P 500 .SPX gained 21.09 points, or 0.53%, to end at 4,012.14 points, while the Nasdaq Composite .IXIC gained 83.26 points, or 0.72%, to 11,590.33. The Dow Jones Industrial Average .DJI rose 113.99 points, or 0.34%, to 33,159.08.
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2023-02-23 00:00:00 UTC
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US STOCKS-S&P, Dow dip as resilient economic data stokes fears of rate hikes
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https://www.nasdaq.com/articles/us-stocks-sp-dow-dip-as-resilient-economic-data-stokes-fears-of-rate-hikes
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By Johann M Cherian and David French
Feb 23 (Reuters) - Wall Street was mostly lower in choppy trading on Thursday, with the S&P 500 on track for a fifth straight daily decline and the Dow Jones Industrial Average down too, as investors remained wary of further interest rate hikes due to recent strong U.S. economic data.
On a topsy-turvy day, the tech-heavy Nasdaq was up slightly, retreating from a session high earlier of more than 1%. Megacap stocks were mixed, with Tesla Inc TSLA.O up and Amazon.com Inc AMZN.O lower.
Stock markets have been volatile this month, with the S&P 500 shedding more than 4% in the past six sessions, as data pointing to a strong economy and hawkish commentary by Fed officials dented appetite for risky assets.
The Labor Department said the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, reflecting tight labor market conditions.
A separate report confirmed the economy grew solidly in the fourth quarter, though rising inventory levels were responsible for much of the increase.
U.S. gross domestic product increased 2.7% in the fourth quarter, according to the government's second estimate. Economists were forecasting a 2.9% rise.
"Any incremental piece of economic data builds the narrative of the bears in the market that the rally so far is a false euphoria, and this is weighing on the market more than the good news from some of these earnings," said Peter Andersen, founder of Andersen Capital Management.
Analysts polled by Reuters predicted a correction within the next three months even though they expect the S&P 500 .SPX to climb 5% by year-end.
Right now, the S&P is testing both the 50-day moving average at 3,980 points and the 200-day moving average at 3,940.
Nvidia CorpNVDA.O surged 14.2% to the highest in more than 10 months after the company forecast quarterly sales above estimates and reported a surge in the use of its chips to power artificial intelligence services.
Other chipmakers also gained, including Broadcom Inc AVGO.O up 0.4% and Qualcomm Inc QCOM.O rising 0.8%. The Philadelphia SE Semiconductor index .SOX climbed 2.5%.
At 2.06 p.m. ET, the Dow Jones Industrial Average .DJI fell 97.71 points, or 0.3%, to 32,947.38, the S&P 500 .SPX lost 0.92 points, or 0.02%, to 3,990.13 and the Nasdaq Composite .IXIC added 6.36 points, or 0.06%, to 11,513.43.
Eight of the 11 major S&P 500 sectors declined, with communication services .SPLRCL dropping 1.1%, hurt by a 3.8% fall in Netflix IncNFLX.O on reports that the streaming service was cutting subscription prices in 30 countries.
The communication services index was on course for its fifth straight decline, which would be its biggest since another five-loss streak in October.
Energy .SPNY was one of the few gainers, rising 1.3% on the back of higher crude prices O/R. Should the index advance hold, it would halt a losing run at seven, tying its worst stretch since an eight-session skid in March 2017.
Among other stocks, eBay IncEBAY.O slid 5.8% after warning of dour demand in the first half of 2023 due to strained consumer spending in the United States and Europe.
Moderna Inc MRNA.O fell 8.4% after the vaccine maker reaffirmed its annual sales forecast of $5 billion for its COVID-19 vaccines despite its fourth-quarter sales exceeding estimates.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru and David French in New York; Editing by Savio D'Souza, Arun Koyyur, Anil D'Silva and David Gregorio)
((johann.mcherian@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 Johann M Cherian and David French Feb 23 (Reuters) - Wall Street was mostly lower in choppy trading on Thursday, with the S&P 500 on track for a fifth straight daily decline and the Dow Jones Industrial Average down too, as investors remained wary of further interest rate hikes due to recent strong U.S. economic data. Stock markets have been volatile this month, with the S&P 500 shedding more than 4% in the past six sessions, as data pointing to a strong economy and hawkish commentary by Fed officials dented appetite for risky assets. Among other stocks, eBay IncEBAY.O slid 5.8% after warning of dour demand in the first half of 2023 due to strained consumer spending in the United States and Europe.
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By Johann M Cherian and David French Feb 23 (Reuters) - Wall Street was mostly lower in choppy trading on Thursday, with the S&P 500 on track for a fifth straight daily decline and the Dow Jones Industrial Average down too, as investors remained wary of further interest rate hikes due to recent strong U.S. economic data. Nvidia CorpNVDA.O surged 14.2% to the highest in more than 10 months after the company forecast quarterly sales above estimates and reported a surge in the use of its chips to power artificial intelligence services. ET, the Dow Jones Industrial Average .DJI fell 97.71 points, or 0.3%, to 32,947.38, the S&P 500 .SPX lost 0.92 points, or 0.02%, to 3,990.13 and the Nasdaq Composite .IXIC added 6.36 points, or 0.06%, to 11,513.43.
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By Johann M Cherian and David French Feb 23 (Reuters) - Wall Street was mostly lower in choppy trading on Thursday, with the S&P 500 on track for a fifth straight daily decline and the Dow Jones Industrial Average down too, as investors remained wary of further interest rate hikes due to recent strong U.S. economic data. Nvidia CorpNVDA.O surged 14.2% to the highest in more than 10 months after the company forecast quarterly sales above estimates and reported a surge in the use of its chips to power artificial intelligence services. ET, the Dow Jones Industrial Average .DJI fell 97.71 points, or 0.3%, to 32,947.38, the S&P 500 .SPX lost 0.92 points, or 0.02%, to 3,990.13 and the Nasdaq Composite .IXIC added 6.36 points, or 0.06%, to 11,513.43.
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Economists were forecasting a 2.9% rise. Nvidia CorpNVDA.O surged 14.2% to the highest in more than 10 months after the company forecast quarterly sales above estimates and reported a surge in the use of its chips to power artificial intelligence services. ET, the Dow Jones Industrial Average .DJI fell 97.71 points, or 0.3%, to 32,947.38, the S&P 500 .SPX lost 0.92 points, or 0.02%, to 3,990.13 and the Nasdaq Composite .IXIC added 6.36 points, or 0.06%, to 11,513.43.
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2023-02-23 00:00:00 UTC
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Warren Buffett's 5 Top AI Stocks -- Here's Why You Should Own Them, Too
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-5-top-ai-stocks-heres-why-you-should-own-them-too
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You might not think of Warren Buffett immediately when the topic of artificial intelligence comes up. The legendary investor has famously shied away from most tech stocks in the past, maintaining that those companies were outside of his circle of competence. Since AI represents one of the most advanced technologies around, it would be understandable if he avoided investing in AI-focused companies.
However, Buffett actually hasn't avoided AI stocks at all. Several of the technology's leaders can be found among Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) holdings. Here are Buffett's top five AI stocks -- and why you should consider owning them, too.
Image source: Getty Images.
Buffett's top five
If you looked at Berkshire Hathaway's latest 13F filing with the U.S. Securities and Exchange Commission (SEC), you'd probably identify only two stocks with obvious solid AI connections. Apple (NASDAQ: AAPL) ranks as the conglomerate's biggest stock holding by far. It also owns a relatively small stake in Amazon (NASDAQ: AMZN). Both of these companies are clearly heavily engaged in AI development. But where are the other AI stocks in Buffett's portfolio?
There are some companies in the Berkshire Hathaway portfolio that are engaged in AI development. For example, Mastercard owns Brighterion, a company that develops AI applications for the financial, healthcare, and retail sectors. Nu Holdings owns Olivia AI, which develops AI solutions for financial companies. Several others in the portfolio -- among them American Express and Chevron -- are using AI in various ways.
However, I don't think any of these deserve spots among Buffett's top five AI stocks. Instead, we need to look at some other stocks that don't show up in Berkshire Hathaway's SEC filings. I'm referring to what could be called Buffett's "secret portfolio" -- stocks owned by Berkshire Hathaway subsidiary New England Asset Management (NEAM).
Like Berkshire Hathaway itself, NEAM owns a big stake in Apple. It also holds significant positions in Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA). The investment firm initiated three new positions in the fourth quarter of 2022. AI pioneer Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) arguably stood out as the best of the bunch.
There are other AI candidates in NEAM's portfolio, including such notable names as IBM and Intel. However, I think that Apple, Amazon, Microsoft, Nvidia, and Alphabet are the best AI stocks owned by Buffett.
What makes these stocks special
Apple is the biggest technology company in the world by market cap. Unsurprisingly, it's also a leader in artificial intelligence. Millions of people use Apple's AI every day with Siri and facial recognition on iPhones. CEO Tim Cook stated in Apple's latest quarterly conference call that AI "will affect every product and every service that we have."
Amazon's AI efforts go beyond its Alexa virtual assistant. Amazon Web Services (AWS) incorporates AI extensively into its cloud-hosting services. The company's online product recommendations use advanced AI. Amazon uses AI throughout its internal operations as well.
Microsoft has been at the center of the conversation about AI in recent weeks because of its integration of OpenAI's ChatGPT with the Bing search engine. Its Azure cloud-hosting services, like AWS, feature lots of AI options for customers. Microsoft's Github Copilot uses AI to help programmers write code and is available as an extension for the company's Visual Studio platform.
Nvidia could be the preeminent pick-and-shovel AI play. The company's graphics process units (GPUs) are popular because of their ability to handle the intensive processing power requirements of AI apps. Nvidia has also developed platforms for speech AI and self-driving car technology.
Last but not least, Alphabet has long been a leader in AI development. Its Google and YouTube search engines use AI extensively. Google Cloud offers advanced AI capabilities to customers who use its cloud services. The company's Waymo unit is one of the top providers of AI-powered self-driving car technology. Google plans to soon launch Bard, its large language model that's expected to be a major rival to ChatGPT.
Why you should own them, too
I think there's one overriding reason why you should consider owning all five of the top AI stocks in Buffett's portfolio. It's the same reason why Buffett himself buys and holds stocks: Their growth prospects make their current valuations attractive.
To be sure, some of these stocks look more attractively valued than others. Alphabet, for example, trades at a much lower forward earnings multiple than Apple, Amazon, Microsoft, or Nvidia do. However, my view is that even the most expensive of these stocks will prove to be a huge winner over the long run.
These aren't just AI stocks, of course. All of these companies have other growth drivers in addition to AI. But AI will no doubt be extremely important to their fortunes over the next decade and beyond. I think that Buffett's top five AI stocks will make him even wealthier in the future. They could make you richer, too.
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American Express is an advertising partner of The Ascent, a Motley Fool company. 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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Berkshire Hathaway, Mastercard, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Mastercard, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, long March 2023 $120 calls on Apple, short January 2025 $380 calls on Mastercard, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) ranks as the conglomerate's biggest stock holding by far. Buffett's top five If you looked at Berkshire Hathaway's latest 13F filing with the U.S. Securities and Exchange Commission (SEC), you'd probably identify only two stocks with obvious solid AI connections. I'm referring to what could be called Buffett's "secret portfolio" -- stocks owned by Berkshire Hathaway subsidiary New England Asset Management (NEAM).
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Apple (NASDAQ: AAPL) ranks as the conglomerate's biggest stock holding by far. I'm referring to what could be called Buffett's "secret portfolio" -- stocks owned by Berkshire Hathaway subsidiary New England Asset Management (NEAM). The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Mastercard, Microsoft, and Nvidia.
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Apple (NASDAQ: AAPL) ranks as the conglomerate's biggest stock holding by far. Here are Buffett's top five AI stocks -- and why you should consider owning them, too. Nu Holdings owns Olivia AI, which develops AI solutions for financial companies.
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Apple (NASDAQ: AAPL) ranks as the conglomerate's biggest stock holding by far. Here are Buffett's top five AI stocks -- and why you should consider owning them, too. However, I think that Apple, Amazon, Microsoft, Nvidia, and Alphabet are the best AI stocks owned by Buffett.
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17007.0
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2023-02-23 00:00:00 UTC
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Berkshire Earnings: Should Investors Buy Warren Buffett's Stock?
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https://www.nasdaq.com/articles/berkshire-earnings%3A-should-investors-buy-warren-buffetts-stock
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Warren Buffett’s holding company Berkshire Hathaway BRK.B reports earnings on Friday, February 23.
Warren Buffett’s sprawling conglomerate owns businesses across the spectrum of industries. While everyone knows him as a brilliant stock picker and portfolio manager, he is also the shepherd of some 70 companies under the Berkshire Hathaway umbrella.
Also reporting earnings on Friday is another well-known, but considerably smaller holding company, Icahn Enterprises IEP. CEO Carl Icahn is another investing legend and maverick many decades into his Wall Street career.
Image Source: Zacks Investment Research
Business Overview
Berkshire can be broken down into three primary segments. The largest contributor to the top line is Berkshire’s insurance group, which includes GEICO, Berkshire Hathaway Reinsurance Company, and BH Primary Group. While insurance has been a phenomenal business for Buffett, the float insurance companies are required to hold has also been an important vehicle for his numerous investments.
The next largest segment at BRKB is the Manufacturing, Service and Retailing operations, which makes up 36% of revenue. This segment is extremely diversified and includes major manufacturing businesses such as specialty chemical producer Lubrizol Corporation, as well as building operations Clayton Homes and Shaw Industries, which is the largest manufacturer of carpets in the country. Berkshire’s portfolio also includes consumer products Fruit of the Loom, NetJets, Dairy Queen, See’s Candies and an array of other retail and services businesses.
The third segment is the Regulated Utility businesses, which brings in 11% of total revenue. This segment is made up of Burlington Northern Santa Fe (BNSF), which is one of the largest freight railroads in North America, and Berkshire Hathaway Energy, which was originally called Mid-American Energy before being acquired in the late 90s.
This is all in addition to Buffett and Berkshire’s portfolio of public equities, which includes massive stakes in Apple AAPL, Occidental Petroleum OXY, Chevron CVX, Coca-Cola KO and many others.
Earnings Expectations
Berkshire Hathaway currently sports a Zacks Rank #3 (Hold), indicating that its earnings revisions have remained relatively flat. BRKB has a strong record of beating earnings including a 14% beat last quarter and a 22% average over the trailing four.
Current quarter estimates project sales will grow 4% YoY to $75 billion. Full year sales are expected to be $299 billion, an increase of 8% YoY. Earnings are expected to grow as well, with current quarter EPS forecasted at $3.31 per share, a 1.2% increase YoY. Full year earnings estimates are very strong, expecting EPS to climb 23% to $14.85 per share.
2022 was an exceptional year for Berkshire as its portfolio of real assets, and consumer goods benefitted from the increase in inflation. Furthermore, the uncertainty that higher interest rates brought to the stock market made BRKB a safe haven for investors trying to avoid the volatility of growth stocks. Berkshire outperformed the broad market by 23% last year.
Image Source: Zacks Investment Research
Valuation
Berkshire stock is currently trading at 18x one-year forward earnings, below its 10-year median of 20x, and not far off its low of 15x. Also worth noting in that BRKB has an earnings multiple perfectly in line with the S&P 500 average, which is a testament to how broadly diversified Buffett’s holding company is.
Berkshire offers no dividend and never has. While for some that may be a turnoff, it’s worth considering who would be better to be invest all the free cash flow?
Image Source: Zacks Investment Research
Succession
Buffett is now in his 90s, and a lot of the success experienced by BRKB stock is directly attributed to him, and his partner Charlie Munger. What is going to happen when they do eventually retire or pass away? A succession plan has of course been made, but for now it is still a secret to the public. Can investors expect Berkshire to perform as well as it has without its captain and first mate?
Icahn Enterprises
It is kind of funny how both Berkshire and Icahn enterprises report on the same day. Two of the most enigmatic faces in investing, Carl Icahn and Warren Buffett couldn’t be different in many ways. Icahn, a major player on Wall Street, while Buffett stays primarily in Omaha. Icahn boisterous and feared, while Buffett is more soft-spoken, and revered.
IEP through its subsidiaries, operates in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the U.S. and internationally. IEP currently has a one-year forward P/E of 73x, and a dividend yield of 14%.
Returns between the two conglomerates are surprisingly similar, although IEP has edged out with better returns than BRKB over the last 25 years, albeit with significantly more volatility.
Image Source: Zacks Investment Research
Conclusion
It is always a big event when Buffett reports earnings for BRKB. Berkshire, because of its broad diversification, can be a useful bellwether for the economy, and the color provided by Buffett is always extremely valuable. It will be interesting to compare the comments from two investing legends who stay at the pinnacle of their investing careers late in life.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is all in addition to Buffett and Berkshire’s portfolio of public equities, which includes massive stakes in Apple AAPL, Occidental Petroleum OXY, Chevron CVX, Coca-Cola KO and many others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Berkshire’s portfolio also includes consumer products Fruit of the Loom, NetJets, Dairy Queen, See’s Candies and an array of other retail and services businesses.
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This is all in addition to Buffett and Berkshire’s portfolio of public equities, which includes massive stakes in Apple AAPL, Occidental Petroleum OXY, Chevron CVX, Coca-Cola KO and many others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Valuation Berkshire stock is currently trading at 18x one-year forward earnings, below its 10-year median of 20x, and not far off its low of 15x.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report To read this article on Zacks.com click here. This is all in addition to Buffett and Berkshire’s portfolio of public equities, which includes massive stakes in Apple AAPL, Occidental Petroleum OXY, Chevron CVX, Coca-Cola KO and many others. Image Source: Zacks Investment Research Valuation Berkshire stock is currently trading at 18x one-year forward earnings, below its 10-year median of 20x, and not far off its low of 15x.
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This is all in addition to Buffett and Berkshire’s portfolio of public equities, which includes massive stakes in Apple AAPL, Occidental Petroleum OXY, Chevron CVX, Coca-Cola KO and many others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Warren Buffett’s holding company Berkshire Hathaway BRK.B reports earnings on Friday, February 23.
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2023-02-23 00:00:00 UTC
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Invest Like Warren Buffett With These ETFs
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https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-etfs
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Billionaire investor Warren Buffett is known for his value investing style. Many want to mirror the legend’s investing strategy and emerge a winner. Buffett’s company Berkshire Hathaway’s latest 13-F filing showed that Berkshire’s $299 billion portfolio was invested in 49 companies in the fourth quarter of 2022, unchanged from last quarter.
The top five holdings make up about 75% of the total portfolio, per an article published on Forbes. These five stocks are Apple AAPL, Bank of America BAC, Chevron CVX, Coca-Cola KO, and American Express AXP. Apart from these, Berkshire has significant weights in Occidental Petroleum OXY and Kraft Heinz KHC.
Let’s delve a little deeper.
Buffet Loves Apple
Buffett is outright bullish on Apple AAPL. Berkshire Hathaway now owns a 5.8% stake in Apple, as of Dec 31, according to the company's Schedule 13G filing with the Securities and Exchange Commission Tuesday, as quoted on investors.com.
Investors intending to follow Buffett and be part of Apple’s growth story, can play ETFs like iShares Dow Jones US Technology ETF IYW, Select Sector SPDR Technology ETF XLK and Vanguard Information Technology ETF VGT.
Taiwan Semiconductor Falls From Buffett’s Favor
Buffett is now less confident about Taiwan Semiconductor Manufacturing Co. shares. Berkshire Hathaway said it had about 8.3 million American depository shares of TSMC worth $618 million, having sold 86% of its shares. Last month, the chipmaker offered a subdued forecast on prospects for 2023 given the global growth slowdown.
So, investors following Buffett may opt to stay away from the likes of VanEck Semiconductor ETF SMH as the fund has about 11.6% weight in TSMC. Invesco BLDRS Emerging Markets 50 ADR Index Fund ADRE also has about 22.2% weight on the stock.
Be Choosy on Banks
Berkshire slashed its US Bancorp USB investment from 52.5 million shares to 6.7 million by the end of the year. Berkshire Hathaway also cut its investment in Bank of New York Mellon BK and sold off more than 37 million shares during the quarter and remained with 25 million shares of the bank.
U.S. Bancop has about 10% exposure to iShares U.S. Regional Banks ETF IAT while both bank stocks have decent weights in IAT and Davis Select Financial ETF DFNL. However, Berkshire is heavyweight on Bank of America, which is heavy on Invesco KBW Bank ETF KBWB.
Are Energy ETFs Slowly Losing Value?
Berkshire Hathaway has bet big on the energy companies over the last two years, scooping up loads of Chevron and Occidental Petroleum shares. But in the fourth quarter of 2022, the company sold 1%, or 2.4 million shares, of its Chevron position.
Chevron is heavy on energy ETFs like Energy Select Sector SPDR Fund XLE and iShares U.S. Energy ETF IYE. Meanwhile, Berkshire now controls more than 20% of the outstanding shares in Occidental. Occidental Petroleum Corporation has about 6.37% invested in First Trust Nasdaq Oil & Gas ETF FTXN. Whatever the case be, a small stake selling in Chevron and still a heavy weight in Occidental say that the energy ETFs are still in fine fettle.
Buffett Trims ATVI: Should You Dump e-Sprots ETFs?
Berkshire reduced its holdings of Activision Blizzard ATVI. The stock has 5% to 6% weights in Global X Video Games & Esports ETF HERO and VanEck Video Gaming and eSports ETF ESPO. Investors should not lose hopes on e-Sports ETFs on the ATVI news as Buffett discussed before that the Activision’s share purchase was a merger arbitrage opportunity, as ATVI was going to be merged with Microsoft.
Since the European Union has raised some objections to Microsoft’s acquisition of Activision, the likelihood of successful closure of the deal has weakened. Despite selling roughly another $600 million worth in the fourth quarter, Activision remains Berkshire’s ninth-largest holding, the Forbes article notified.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
Global X Video Games & Esports ETF (HERO): ETF Research Reports
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Kraft Heinz Company (KHC) : Free Stock Analysis Report
iShares U.S. Energy ETF (IYE): ETF Research Reports
Invesco BLDRS Emerging Markets 50 ADR ETF (ADRE): ETF Research Reports
Invesco KBW Bank ETF (KBWB): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
iShares U.S. Regional Banks ETF (IAT): ETF Research Reports
First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports
Davis Select Financial ETF (DFNL): ETF Research Reports
VanEck Video Gaming and eSports ETF (ESPO): 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 five stocks are Apple AAPL, Bank of America BAC, Chevron CVX, Coca-Cola KO, and American Express AXP. Buffet Loves Apple Buffett is outright bullish on Apple AAPL. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports Energy Select Sector SPDR ETF (XLE): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports Invesco BLDRS Emerging Markets 50 ADR ETF (ADRE): ETF Research Reports Invesco KBW Bank ETF (KBWB): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares U.S.
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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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports Energy Select Sector SPDR ETF (XLE): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports Invesco BLDRS Emerging Markets 50 ADR ETF (ADRE): ETF Research Reports Invesco KBW Bank ETF (KBWB): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares U.S. These five stocks are Apple AAPL, Bank of America BAC, Chevron CVX, Coca-Cola KO, and American Express AXP. Buffet Loves Apple Buffett is outright bullish on Apple AAPL.
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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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports Energy Select Sector SPDR ETF (XLE): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports Invesco BLDRS Emerging Markets 50 ADR ETF (ADRE): ETF Research Reports Invesco KBW Bank ETF (KBWB): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares U.S. These five stocks are Apple AAPL, Bank of America BAC, Chevron CVX, Coca-Cola KO, and American Express AXP. Buffet Loves Apple Buffett is outright bullish on Apple AAPL.
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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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports Energy Select Sector SPDR ETF (XLE): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports Invesco BLDRS Emerging Markets 50 ADR ETF (ADRE): ETF Research Reports Invesco KBW Bank ETF (KBWB): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares U.S. These five stocks are Apple AAPL, Bank of America BAC, Chevron CVX, Coca-Cola KO, and American Express AXP. Buffet Loves Apple Buffett is outright bullish on Apple AAPL.
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17009.0
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2023-02-23 00:00:00 UTC
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EU Commission to ban TikTok on staff phones, citing security
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AAPL
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https://www.nasdaq.com/articles/eu-commission-to-ban-tiktok-on-staff-phones-citing-security
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Feb 23 (Reuters) - The European Commission is suspending Chinese short video-sharing app TikTok from its employees' corporate phones, EU industry chief Thierry Breton said on Thursday, citing a focus on cybersecurity.
Breton however declined to give further details at a news conference on whether there were any incidents involving TikTok.
"To increase its cybersecurity, the Commission's Corporate Management Board has decided to suspend the use of the TikTok application on its corporate devices and on personal devices enrolled in the Commission mobile device service," the EU executive said in a statement.
"This measure aims to protect the Commission against cybersecurity threats and actions which may be exploited for cyber-attacks against the corporate environment of the Commission," it said.
TikTok said it was disappointed with the Commission decision, saying it was "misguided and based on fundamental misconceptions".
"We have contacted the Commission to set the record straight and explain how we protect the data of the 125 million people across the EU who come to TikTok every month," a spokesperson said.
The Commission said security developments at other social media platforms will also be kept under constant review. Euractiv first reported on the Commission decision.
(Reporting by Foo Yun Chee; Editing by Alison Williams and Emelia Sithole-Matarise)
((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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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission is suspending Chinese short video-sharing app TikTok from its employees' corporate phones, EU industry chief Thierry Breton said on Thursday, citing a focus on cybersecurity. Breton however declined to give further details at a news conference on whether there were any incidents involving TikTok. "We have contacted the Commission to set the record straight and explain how we protect the data of the 125 million people across the EU who come to TikTok every month," a spokesperson said.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission is suspending Chinese short video-sharing app TikTok from its employees' corporate phones, EU industry chief Thierry Breton said on Thursday, citing a focus on cybersecurity. "To increase its cybersecurity, the Commission's Corporate Management Board has decided to suspend the use of the TikTok application on its corporate devices and on personal devices enrolled in the Commission mobile device service," the EU executive said in a statement. (Reporting by Foo Yun Chee; Editing by Alison Williams and Emelia Sithole-Matarise) ((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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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission is suspending Chinese short video-sharing app TikTok from its employees' corporate phones, EU industry chief Thierry Breton said on Thursday, citing a focus on cybersecurity. "To increase its cybersecurity, the Commission's Corporate Management Board has decided to suspend the use of the TikTok application on its corporate devices and on personal devices enrolled in the Commission mobile device service," the EU executive said in a statement. "This measure aims to protect the Commission against cybersecurity threats and actions which may be exploited for cyber-attacks against the corporate environment of the Commission," it said.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission is suspending Chinese short video-sharing app TikTok from its employees' corporate phones, EU industry chief Thierry Breton said on Thursday, citing a focus on cybersecurity. Breton however declined to give further details at a news conference on whether there were any incidents involving TikTok. "To increase its cybersecurity, the Commission's Corporate Management Board has decided to suspend the use of the TikTok application on its corporate devices and on personal devices enrolled in the Commission mobile device service," the EU executive said in a statement.
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17010.0
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2023-02-23 00:00:00 UTC
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EU eyes Big Tech as it seeks feedback on who should pay network costs
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AAPL
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https://www.nasdaq.com/articles/eu-eyes-big-tech-as-it-seeks-feedback-on-who-should-pay-network-costs-0
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs.
For more than two decades Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out.
They argue companies including Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic.
The tech firms in response call it an internet tax that will undermine EU network neutrality rules to treat all users equally. The 12-week consultation will end on May 19.
EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company.
"The burden of these investments is heavier and heavier. And that is in part because of a low return on investment in the telecoms sector, the increase of the cost of raw materials, and the world geopolitical context, the cost of energy, of course, because that has a big role to play," he told a news conference.
"I want to say right away, that all of this reflection isn't aimed against anyone at all, rather it's for our fellow citizens," Breton said.
He said a contributions mechanism could be one of the solutions.
According to a document seen by Reuters last month, respondents will be asked whether large traffic generators should be subject to a mandatory mechanism of direct payments to finance network deployment and also whether the EU should create a continental or digital levy or fund.
"We hope to move very quickly so that in the summer we will be able to come back with conclusions and then we will see what we do to continue to make progress," Breton said.
Any legislative proposal will need to be agreed with EU countries and EU lawmakers before it can become law.
"This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement.
Tech group Computer & Communications Industry Association (CCIA) criticised the proposal.
"Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
(Reporting by Foo Yun Chee; editing by Tomasz Janowski and Jason Neely)
((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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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. According to a document seen by Reuters last month, respondents will be asked whether large traffic generators should be subject to a mandatory mechanism of direct payments to finance network deployment and also whether the EU should create a continental or digital levy or fund. "This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. "This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement. "Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company. "Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. For more than two decades Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out. "This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement.
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17011.0
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2023-02-23 00:00:00 UTC
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Is iShares Paris-Aligned Climate MSCI USA ETF (PABU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-paris-aligned-climate-msci-usa-etf-pabu-a-strong-etf-right-now
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nan
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nan
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Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $897.76 million, which makes it one of the larger ETFs in the Style Box - All Cap Blend. PABU, before fees and expenses, seeks to match the performance of the MSCI USA CLMT PARIS ALGN BNC EXT SLCT ID.
The MSCI USA Climate Paris Aligned Benchmark Extended Select Index composed of U.S. large & mid-capitalization stocks designed to be compatible with the objectives of the Paris Agreement by following a decarbonization trajectory, reducing exposure to climate-related transition & physical risks & increasing exposure to companies favourably positioned for the transition to a low-carbon economy.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
PABU's 12-month trailing dividend yield is 1.09%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
PABU's heaviest allocation is in the Information Technology sector, which is about 32.30% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
PABU's top 10 holdings account for about 23.54% of its total assets under management.
Performance and Risk
The ETF has added roughly 5.50% so far.
With about 310 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Paris-Aligned Climate MSCI USA ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend 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 $7.03 billion in assets, iShares ESG Aware MSCI USA ETF has $19.49 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 Style Box - All Cap Blend.
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 Paris-Aligned Climate MSCI USA ETF (PABU): 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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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): 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. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): 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. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.12% 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 Paris-Aligned Climate MSCI USA ETF (PABU): 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. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.12% 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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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): 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. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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17012.0
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2023-02-23 00:00:00 UTC
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Make This Easy Mistake and You'll Miss the Best 7%+ Dividends
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AAPL
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https://www.nasdaq.com/articles/make-this-easy-mistake-and-youll-miss-the-best-7-dividends
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nan
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nan
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When it comes to closed-end funds (or any investment, for that matter), it pays to look for things most people misunderstand. Because these (seemingly) tiny investor oversights and errors can give us keen-eyed contrarians our best buying opportunities.
And when it comes to CEFs, there's one all-too-common mistake I see folks make time and time again, particularly those who are new to these high-yielding funds. To see what I'm getting at, let's zero in on a CEF called the Columbia Seligman Premium Technology Growth Fund (STK).
STK Romps to a Triple-Digit Return
STK's portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings. The fund boasts a dividend just shy of 7% today.
As you can see in the chart above, it's returned hundreds of percent since inception nearly 14 years ago. If we average this out to its CAGR (compound annualized growth rate, or simply the average percent return per year), we see that the fund has delivered an incredible 20% per year on average.
Here's the thing, though--most people have no idea of STK's incredible performance! Dial it up on a free stock-screening tool like Google Finance and you get this chart, showing a meager 35% return in nearly a decade and a half!
Source: Google Finance
At my CEF Insider service, we don't use Google Finance or Yahoo Finance because they're misleading, especially when it comes to CEFs, for a reason I'll explain in a minute. But most people rely on these free and easy-to-access tools.
Combined, both are more popular than every other financial website by a huge margin. So when users see different results in the charts we use in CEF Insider and those they get from Google and Yahoo, it's understandable if they're a bit confused.
So what's going on here? The simple truth is that Google Finance and Yahoo Finance don't include dividends when reporting an investment's historical performance. That's fine for measuring a non-dividend paying stock like Alphabet (GOOGL). But these services don't work at all for CEFs, which yield 7.9% on average right now.
Professional tools like the ones we use at CEF Insider, however, factor in the return you get both from dividends and price gains to give you a fund's total return. That's critical because dividends matter a lot--even the comparatively low yield (around 1.5% currently) on the average S&P 500 stock makes a big difference over time.
Price-Only Return and Total Return--Quite the Difference!
So you can imagine that when you're dealing with a CEF that yields 8% or more, a price-return chart that ignores dividends is very misleading. For example, a fund that trades at $10 a share in 2010 and also at $10 a share in 2020 looks like a dud--unless that same fund has yielded 10% that whole time. In that case, it has delivered a strong 10% yearly profit.
This is why, if you look up STK on most free stock-screening sites, it looks like a disaster. But we know the reality is much different, so we can put this one on our watch list knowing it's got a history of strong performance going for it.
The key takeaway? When analyzing CEFs, be sure you're looking at the right charts--and that those charts include dividends in their return calculations. As many of these charts are difficult and expensive for most people to access, your best bet is to let me monitor past performance for you through a subscription to CEF Insider.
Try CEF Insider Risk-Free (and Get Instant Access to the Best 9%+ Dividends)
If you're thinking of giving CEFs a shot (and I strongly recommend you do, especially if you'd like to retire on dividends alone!), you're in luck.
Right now, I'm inviting investors to road test it for 60 days at no risk whatsoever. Stick around for the new picks coming your way in the next two monthly issues, peruse the portfolio (which currently boasts an average yield north of 9%!) and follow the funds that appeal to you.
If you're not satisfied, no problem. Just let me know during your 60-day trial and you'll get a full refund. No questions asked.
I'll also include a Special Report naming 4 of my top CEFs to buy now. Taken together, these 4 funds yield 9.5%. And with the discounts they're offering, I'm calling for 20%+ price upside in the next 12 months.
Click here and I'll reveal my exclusive CEF-investing strategy, let you try CEF Insider risk-free for 60 days and show you how to download your FREE Special Report featuring those four 9.5%-yielding CEFs!
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STK's portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings. That's critical because dividends matter a lot--even the comparatively low yield (around 1.5% currently) on the average S&P 500 stock makes a big difference over time. As many of these charts are difficult and expensive for most people to access, your best bet is to let me monitor past performance for you through a subscription to CEF Insider.
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STK's portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings. Source: Google Finance At my CEF Insider service, we don't use Google Finance or Yahoo Finance because they're misleading, especially when it comes to CEFs, for a reason I'll explain in a minute. The simple truth is that Google Finance and Yahoo Finance don't include dividends when reporting an investment's historical performance.
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STK's portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings. Source: Google Finance At my CEF Insider service, we don't use Google Finance or Yahoo Finance because they're misleading, especially when it comes to CEFs, for a reason I'll explain in a minute. Professional tools like the ones we use at CEF Insider, however, factor in the return you get both from dividends and price gains to give you a fund's total return.
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STK's portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings. Dial it up on a free stock-screening tool like Google Finance and you get this chart, showing a meager 35% return in nearly a decade and a half! That's critical because dividends matter a lot--even the comparatively low yield (around 1.5% currently) on the average S&P 500 stock makes a big difference over time.
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17013.0
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2023-02-23 00:00:00 UTC
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EU eyes Big Tech as it seeks feedback on who should pay network costs
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AAPL
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https://www.nasdaq.com/articles/eu-eyes-big-tech-as-it-seeks-feedback-on-who-should-pay-network-costs
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs.
The move by the EU executive followed more than two decades of lobbying by Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators who want leading technology companies to contribute to 5G and broadband roll-out.
They said the companies including Amazon AMZN.O and Microsoft MSFT.O account for more than half of data internet traffic.
Big Tech in turn calls it an internet tax that will undermine EU network neutrality rules to treat all users equally.
EU officials said the 12-week consultation will look at "fair contribution by all digital players". Tech and telecoms companies will be asked to respond to 60 questions.
The Commission is likely to propose legislation after the consultation, which will need to be agreed with EU countries and EU lawmakers before it can become law.
According to a document seen by Reuters last month, respondents will be asked whether CAPs (content application providers)/LTGs (large traffic generators) should be subject to a mandatory mechanism of direct payments to finance network deployment.
The questionnaire also asked whether the EU should create a continental or digital levy or fund.
"This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement.
Tech group Computer & Communications Industry Association (CCIA) criticised the proposal.
"Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
(Reporting by Foo Yun Chee Editing by Tomasz Janowski)
((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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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. The move by the EU executive followed more than two decades of lobbying by Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators who want leading technology companies to contribute to 5G and broadband roll-out. According to a document seen by Reuters last month, respondents will be asked whether CAPs (content application providers)/LTGs (large traffic generators) should be subject to a mandatory mechanism of direct payments to finance network deployment.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. "This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement. "Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. The move by the EU executive followed more than two decades of lobbying by Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators who want leading technology companies to contribute to 5G and broadband roll-out. "Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 23 (Reuters) - The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platform META.O and Netflix NFLX.O to pay some network costs. The move by the EU executive followed more than two decades of lobbying by Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and other operators who want leading technology companies to contribute to 5G and broadband roll-out. EU officials said the 12-week consultation will look at "fair contribution by all digital players".
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17014.0
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2023-02-23 00:00:00 UTC
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Apple Takes A Breather, But The Signals Are Clear
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AAPL
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https://www.nasdaq.com/articles/apple-takes-a-breather-but-the-signals-are-clear
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nan
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nan
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Though Apple Inc’s (NASDAQ: AAPL) stock undoubtedly benefited from the company’s recent results, they’ve traded largely sideways. Having at one point been up a full 25% from the first week of the year, it’s perhaps not all that surprising that they might take a breather. And it’s all the more understandable when one considers how, the broader equity market has cooled in the past few weeks, with the S&P 500 index down nearly 5% since the start of February. So where to next?
This comparison against the major index could be the clearest signal when we see how Apple stock trades flat over the same timeframe. You have to be thinking that if the wider equity market weren’t taking a breather right now, Apple would still be trending up.
It looks like this current uptrend has legs yet, and it’s gone a long way to break what was starting to look like a scary downturn. As the calendars were turned over to 2023, Apple shares were briefly trading back down at 2020 prices. Now, they’re only a 20% move up away from the all-time high tagged last year.
Sizing Up The Opportunity
Overall, the fundamental drivers are in place to support this. The company disappointed investors with their headline numbers from this month’s report. Still, as CEO Tim Cook made clear, Apple would have grown in the “vast majority of the markets it operates in on a year over year basis if not for the significant 800 basis point FX headwind.”
For context, through last September, the US Dollar Index ran up to its highest level since 2002, making US exports all the more expensive for non-US consumers to buy. Couple this with runaway inflation on a global scale and a worldwide consumer spending fall and you have the perfect recipe for disrupting Apple’s long-time track record of strong earnings.
But looking at the quarters and year ahead, there are signs that the macro headwinds, which hurt the last report so much, are already dissipating in a manner that should be felt in the coming ones.
For starters, the dollar has weakened considerably since last October, and while it’s still higher than where it spent most of the past two decades, global inflation is forecasted to cool through this year. That will take the pressure off the bid and, ideally for Apple investors at least, bring the dollar back down to its longer-term average.
If the Fed Reserve and its international counterparts can indeed stick the landing and avoid a global recession, the consumer spending crunch may not be as bad as once feared.
As Wedbush’s Dan Ives noted earlier this month, Apple’s growth story is "holding up much firmer than the Street had feared in this economic uncertain backdrop, particularly as China continues to come out of its COVID-related economic malaise.” Ives’ Outperform rating on Apple stock is matched by the team at Wells Fargo and Citi too. Their price targets range from $175 to $185, suggesting there’s a fresh upside in the region of 25% from where shares closed on Wednesday.
Getting Involved
Were they to indeed trend up here in the coming weeks, as we expect they will, that would put them back at all-time highs. Not a bad return for a company at a time when the tech-heavy NASDAQ index is still down 30% from its own all-time high.
If you were to zero in on the upside that might be expected versus Apple’s closest competitors, say Alphabet Inc (NASDAQ: GOOGL) and Amazon.com, Inc. (NASDAQ: AMZN), it’s still a no-brainer from a simple returns point of view. Apple shares are up 17% this year alone, versus 12% for Amazon and 4% for Google’s.
The market is giving us about as clear a sign as it can that Apple stock is the strongest of the big tech names, and if the macro situation can continue to improve, the only way is up.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though Apple Inc’s (NASDAQ: AAPL) stock undoubtedly benefited from the company’s recent results, they’ve traded largely sideways. Couple this with runaway inflation on a global scale and a worldwide consumer spending fall and you have the perfect recipe for disrupting Apple’s long-time track record of strong earnings. For starters, the dollar has weakened considerably since last October, and while it’s still higher than where it spent most of the past two decades, global inflation is forecasted to cool through this year.
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Though Apple Inc’s (NASDAQ: AAPL) stock undoubtedly benefited from the company’s recent results, they’ve traded largely sideways. And it’s all the more understandable when one considers how, the broader equity market has cooled in the past few weeks, with the S&P 500 index down nearly 5% since the start of February. This comparison against the major index could be the clearest signal when we see how Apple stock trades flat over the same timeframe.
|
Though Apple Inc’s (NASDAQ: AAPL) stock undoubtedly benefited from the company’s recent results, they’ve traded largely sideways. Still, as CEO Tim Cook made clear, Apple would have grown in the “vast majority of the markets it operates in on a year over year basis if not for the significant 800 basis point FX headwind.” For context, through last September, the US Dollar Index ran up to its highest level since 2002, making US exports all the more expensive for non-US consumers to buy. As Wedbush’s Dan Ives noted earlier this month, Apple’s growth story is "holding up much firmer than the Street had feared in this economic uncertain backdrop, particularly as China continues to come out of its COVID-related economic malaise.” Ives’ Outperform rating on Apple stock is matched by the team at Wells Fargo and Citi too.
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Though Apple Inc’s (NASDAQ: AAPL) stock undoubtedly benefited from the company’s recent results, they’ve traded largely sideways. Getting Involved Were they to indeed trend up here in the coming weeks, as we expect they will, that would put them back at all-time highs. Not a bad return for a company at a time when the tech-heavy NASDAQ index is still down 30% from its own all-time high.
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17015.0
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2023-02-22 00:00:00 UTC
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7 Dividend-Paying Tech Stocks for Long-Term Growth
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AAPL
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https://www.nasdaq.com/articles/7-dividend-paying-tech-stocks-for-long-term-growth
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend-paying tech stocks are shares of technology companies that include regular dividend payments. Tech firms generally reinvest their profits back into the business and seek growth rather than returning capital to shareholders through dividends. That said, many tech companies pay dividends. These dividends attract investors who like the steady income dividends represent.
Investing in dividend-paying tech stocks provides the benefits of regular income and potential capital appreciation. Tech stocks have been one of the fastest-growing sectors over the past few decades. Although the past year has been tough on the sector, most investors expect it to rebound long term. The dividends these shares include provide income while the sector normalizes.
Ticker Company Price
IBM IBM $131.71
CSCO Cisco $49.69
TXN Texas Instruments $170.76
MSFT Microsoft $252.67
AAPL Apple $148.48
ORCL Oracle $86.20
QCOM Qualcomm $123.70
IBM (IBM)
Source: shutterstock.com/LCV
IBM (NYSE:IBM) stock represents a technology company often cited for its dividend. The company offers a range of hardware, software, and services. IBM is particularly well-known as a leader in enterprise computing, artificial intelligence, and cloud computing. The company boasts a diverse customer base that includes governments, businesses, and individuals and operates globally.
IBM might be a controversial pick to lead this list, as the stock has shown weak returns over the past decade. In fact, $1,000 invested in its shares would only have grown to $1,024 today(1). But that return does not include IBM’s dividend, which has not been reduced since 1994. That dividend currently yields 4.9%, which is an impressive rate across all stocks, particularly so within the tech sector.
IBM has real growth prospects moving forward. The company is a leader in artificial intelligence (AI). There’s every chance that the company’s recent performance could change due to AI.
Cisco (CSCO)
Source: Valeriya Zankovych / Shutterstock.com
Cisco (NASDAQ:CSCO) stock is another well-known tech name with a substantial dividend. The company provides networking hardware, software, and services. Cisco sells products and services, including routers, switches, security systems, and cloud services. Cisco’s shares have appreciated in 2023 after falling from $55 to $47 throughout 2022.
Cisco shares currently trade near $50, with analyst consensus suggesting they should appreciate roughly 10% over the next 12-18 months based on the target price. Cisco recently delivered strong results with 7% sales growth topping expectations. In turn, management increased guidance for the full year. The positive news is a bright spot within tech, as many firms are bracing for negative earnings news.
Cisco’s revenues increased 7% to $13.59 billion in the quarter, and the company expects current fiscal-year growth to be between 9% and 10.5% year-over-year. Those results and expectations prove that tech growth is far from over. Cisco’s dividend has not been reduced since 2011 and recent strong results indicate that will continue to be the case.
Texas Instruments (TXN)
Source: Katherine Welles / Shutterstock.com
Texas Instruments (NASDAQ:TXN) is a semiconductor design and manufacturing company serving multiple industries. Its products include digital signal processors, microcontrollers, and power management solutions, among others. The company’s latest dividend equaled $1.24, yielding 2.82% for its holders.
Texas Instruments reported earnings in late January with earnings per share of $2.13. That EPS was well above the $1.98 consensus Wall Street was expecting. So, from that perspective, Texas Instruments did well. Despite beating expectations, revenues still decreased by 3% on a year-over-year basis and fell 11% sequentially.
There were several bright spots in the report aside from the higher-than-anticipated EPS. Texas Instruments reported $5.9 billion in free cash flow for the year on $20.03 billion in sales. It also returned $7.9 billion to shareholders, showing its commitment to income investors. Further, automotive demand increased, a potential point of strength moving forward.
Microsoft (MSFT)
Source: FellowNeko / Shutterstock.com
Microsoft (NASDAQ:MSFT) stock is one of the most well-known tech shares. The company has also been paying dividends to its shareholders for nearly two decades. The company has a strong balance sheet and consistent cash flows, which allows it to offer a reliable and growing dividend. The company has a track record of increasing its dividend payout and has done so every quarter since its inception in 2003.
In 2022, Microsoft paid its shareholders $2.54 in dividends per share. While that equates to a relatively low yield of 1%, it’s exceptionally sustainable, judging from the dividend’s 0.28 payout ratio. That stable dividend has grown at a rate of 9.7% over the past five years, which is another positive sign overall.
Sales at Microsoft grew by a relatively low 2% in the most recent quarter. Increasing costs and decreasing operating income led to a net income of $16.4 billion during the period, down 12%. But rapid cloud revenue growth and a resurgent LinkedIn were strong points for the firm. A rebound seems highly likely for MSFT, and growth is a near certainty for one of the strongest firms in the world.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) stock has grown at an astronomical 26.75% annually over the past decade. Growth at such a prolific rate is usually a consequence of reinvesting everything back into the company. Thus, investors might not expect that Apple has been steadily rewarding investors with a dividend during that period. However, it has.
The company reinstituted its dividend in 2012 and hasn’t reduced it since. It is also worth noting that Apple paid a dividend from 1987 until 1995 worth 1/10th of a cent. That dividend is now 23 cents per share and has grown by 8.2% over the past five years.
Like Microsoft, investing in Apple is a bet that flagging tech giants will rebound and reward current investors handsomely. Apple’s Q1 revenues fell 5%, which has signaled that demand may be shrinking as consumers buckle down in the currently volatile economy. As consumers appear less likely to shell out large sums for iPhones, the company is leaning on services where revenues hit an all-time high of $20.8 billion.
Oracle (ORCL)
Source: Jer123 / Shutterstock.com
Oracle (NYSE:ORCL) stock represents a multinational technology company that provides database and enterprise software products and services along with cloud services. The company is known for its range of software solutions for business, supply chain, and human resources management. Oracle is also investing heavily in cloud services, focusing on helping customers and enterprises move their workloads to the cloud.
In regards to dividends, Oracle has paid a dividend that has gone unreduced since its inception in 2009. It currently yields 1.46% and has grown 14% over the past five years.
Wall Street expects mid-term growth from Oracle and has assigned its a consensus $95 stock price target. ORLC shares currently trade for $87.
Oracle’s revenues increased by 18% in 2022, suggesting that long-term growth shouldn’t be a problem. Net income did decrease, however, falling by 12% during the period. Oracle is also a significant force in the cloud and is spending heavily to lure customers away from bigger tech companies in the space.
Qualcomm (QCOM)
Source: photobyphm / Shutterstock.com
Qualcomm (NASDAQ:QCOM) Qualcomm is another semiconductor stock that includes a dividend. The company has benefited from the growth of smartphones and 5G technology. It is a noted supplier of Apple, so as Apple shifts toward in-house chip production, investors have grown skeptical of Qualcomm’s prospects.
The company’s most recent earnings do little to assuage those concerns, with revenues that declined by 12% to $9.46 billion. However, those results were in line with management’s expectations.
However, there is reason to believe in Qualcomm moving forward. Apple is unlikely to move away from Qualcomm as a supplier until late 2024 at the earliest. Apple’s efforts to develop in-house chip production have not gone to plan, as the company was hoping to bring production in-house this year. That leaves the door open for Qualcomm while it continues to grow in other areas. In particular, IoT and automotive, where revenues increased by 7% and 58% YoY in the latest quarter.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Dividend-Paying Tech Stocks for Long-Term Growth 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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CSCO Cisco $49.69 TXN Texas Instruments $170.76 MSFT Microsoft $252.67 AAPL Apple $148.48 ORCL Oracle $86.20 QCOM Qualcomm $123.70 Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has grown at an astronomical 26.75% annually over the past decade. Tech firms generally reinvest their profits back into the business and seek growth rather than returning capital to shareholders through dividends.
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CSCO Cisco $49.69 TXN Texas Instruments $170.76 MSFT Microsoft $252.67 AAPL Apple $148.48 ORCL Oracle $86.20 QCOM Qualcomm $123.70 Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has grown at an astronomical 26.75% annually over the past decade. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend-paying tech stocks are shares of technology companies that include regular dividend payments.
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CSCO Cisco $49.69 TXN Texas Instruments $170.76 MSFT Microsoft $252.67 AAPL Apple $148.48 ORCL Oracle $86.20 QCOM Qualcomm $123.70 Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has grown at an astronomical 26.75% annually over the past decade. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend-paying tech stocks are shares of technology companies that include regular dividend payments.
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CSCO Cisco $49.69 TXN Texas Instruments $170.76 MSFT Microsoft $252.67 AAPL Apple $148.48 ORCL Oracle $86.20 QCOM Qualcomm $123.70 Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has grown at an astronomical 26.75% annually over the past decade. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend-paying tech stocks are shares of technology companies that include regular dividend payments.
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17016.0
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2023-02-22 00:00:00 UTC
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Apple's Chinese contract manufacturer to develop AR device - Nikkei
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AAPL
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https://www.nasdaq.com/articles/apples-chinese-contract-manufacturer-to-develop-ar-device-nikkei-0
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nan
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nan
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Adds details from report, background
Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday.
Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the first to help Apple develop the device, the report said, citing people familiar with the matter.
Taiwan-based Foxconn 2317.TW is also helping with the project, Nikkei said, and Apple has tapped two of its most important suppliers, Taiwan Semiconductor Manufacturing Co 2330.TW and Sony 6758.T, to develop micro OLED displays for the device.
The iPhone maker, Luxshare Precision, Foxconn, TSMC and Sony did not immediately respond to Reuters' request for comment.
Apple's headset is set to cost around $3,000 and will be launched in this year's spring event, Bloomberg previously reported.
The company hopes to reduce the price for the second generation of the device, Nikkei said.
The device will compete with the likes of Meta Platforms' META.O Quest Pro virtual and mixed-reality headset launched late last year at $1,500.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema)
((Mrinmay.Dey@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report, background Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Taiwan-based Foxconn 2317.TW is also helping with the project, Nikkei said, and Apple has tapped two of its most important suppliers, Taiwan Semiconductor Manufacturing Co 2330.TW and Sony 6758.T, to develop micro OLED displays for the device. The iPhone maker, Luxshare Precision, Foxconn, TSMC and Sony did not immediately respond to Reuters' request for comment.
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Adds details from report, background Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the first to help Apple develop the device, the report said, citing people familiar with the matter. The iPhone maker, Luxshare Precision, Foxconn, TSMC and Sony did not immediately respond to Reuters' request for comment.
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Adds details from report, background Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the first to help Apple develop the device, the report said, citing people familiar with the matter. Taiwan-based Foxconn 2317.TW is also helping with the project, Nikkei said, and Apple has tapped two of its most important suppliers, Taiwan Semiconductor Manufacturing Co 2330.TW and Sony 6758.T, to develop micro OLED displays for the device.
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Adds details from report, background Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Taiwan-based Foxconn 2317.TW is also helping with the project, Nikkei said, and Apple has tapped two of its most important suppliers, Taiwan Semiconductor Manufacturing Co 2330.TW and Sony 6758.T, to develop micro OLED displays for the device. Apple's headset is set to cost around $3,000 and will be launched in this year's spring event, Bloomberg previously reported.
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17017.0
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2023-02-22 00:00:00 UTC
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Apple's Chinese contract manufacturer to develop AR device - Nikkei
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AAPL
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https://www.nasdaq.com/articles/apples-chinese-contract-manufacturer-to-develop-ar-device-nikkei
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nan
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nan
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Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday.
Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the report said, citing people familiar with the matter.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema)
((Mrinmay.Dey@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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Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the report said, citing people familiar with the matter. (Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema) ((Mrinmay.Dey@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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Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the report said, citing people familiar with the matter. (Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema) ((Mrinmay.Dey@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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Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the report said, citing people familiar with the matter. (Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema) ((Mrinmay.Dey@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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Feb 23 (Reuters) - Apple's AAPL.O Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ will help develop the iPhone maker's long-awaited augmented reality (AR) device, Nikkei Asia reported on Thursday. Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan's Pegatron 4938.TW, the report said, citing people familiar with the matter. (Reporting by Mrinmay Dey in Bengaluru; Editing by Sonia Cheema) ((Mrinmay.Dey@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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17018.0
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2023-02-22 00:00:00 UTC
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Is Roku Stock A Buy Following Q4 Beat?
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AAPL
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https://www.nasdaq.com/articles/is-roku-stock-a-buy-following-q4-beat
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nan
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nan
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Digital media streaming company Roku (NASDAQ:ROKU) posted a stronger-than-expected set of Q4 2022 results last week. Although revenues of $867 million remained roughly flat versus Q4 2021, they came in ahead of expectations as the company had initially guided for a year-over-year sales decline of about 7%. Roku’s devices business saw revenue decline 18% versus last year, while its more lucrative platform business – which sells advertising and content – saw revenue grow by about 5%. That said, this still marks a slowdown from the double-digit growth the platform business has posted in recent years, as rising inflation and slowing consumer spending hurt the advertising market. Things could remain sluggish in the near term as well, as Roku has forecast revenue of $700 million for Q1 2023, marking a 4% decline versus the last year, although this guidance was ahead of estimates.
Roku also appears to be getting more serious about managing its costs. While the company saw operating costs for Q4 surge by a massive 71% versus last year due to higher R&D and sales-related expenses, the company expects that operating expenses will grow by about 40% in Q1 (a 30-point sequential improvement from Q4 2022), with expenses projected to grow by single-digits by Q4 2023.
Now, Roku stock rallied by roughly 30% over the last week and also remains up by over 70% year-to-date in 2023. So is the stock still an attractive bet at current levels of about $71 per share? Although Roku’s business faces headwinds, they are likely temporary and we believe its lucrative platform business should continue to expand in the long run as ad dollars continue to shift away from linear TV to digital video formats. Despite economic headwinds, as of Q4 Roku’s active accounts jumped 16% to 70 million while streaming hours also rose 23% to 23.9 billion. Roku’s valuation is also attractive versus historical levels, with the stock trading at about 3x its projected platform revenues for 2023, down from levels of well over 10x in 2021. That being said, Roku’s lack of profitability remains a concern. While the company set a goal of reattaining profitability on an EBITDA basis by 2024, it could take a while before Roku is steadily profitable on a net basis. We value Roku stock at $80 per share, which is about 10% ahead of the current market price.
See our analysis on Roku Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Roku. Our analysis of Roku Revenue has more details on the company’s business model and key revenue streams.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
ROKU Return 24% 76% 38%
S&P 500 Return 0% 6% 82%
Trefis Multi-Strategy Portfolio 0% 11% 250%
[1] Month-to-date and year-to-date as of 2/20/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although revenues of $867 million remained roughly flat versus Q4 2021, they came in ahead of expectations as the company had initially guided for a year-over-year sales decline of about 7%. That said, this still marks a slowdown from the double-digit growth the platform business has posted in recent years, as rising inflation and slowing consumer spending hurt the advertising market. Things could remain sluggish in the near term as well, as Roku has forecast revenue of $700 million for Q1 2023, marking a 4% decline versus the last year, although this guidance was ahead of estimates.
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Digital media streaming company Roku (NASDAQ:ROKU) posted a stronger-than-expected set of Q4 2022 results last week. Roku’s devices business saw revenue decline 18% versus last year, while its more lucrative platform business – which sells advertising and content – saw revenue grow by about 5%. Total [2] ROKU Return 24% 76% 38% S&P 500 Return 0% 6% 82% Trefis Multi-Strategy Portfolio 0% 11% 250% [1] Month-to-date and year-to-date as of 2/20/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Digital media streaming company Roku (NASDAQ:ROKU) posted a stronger-than-expected set of Q4 2022 results last week. Roku’s devices business saw revenue decline 18% versus last year, while its more lucrative platform business – which sells advertising and content – saw revenue grow by about 5%. Total [2] ROKU Return 24% 76% 38% S&P 500 Return 0% 6% 82% Trefis Multi-Strategy Portfolio 0% 11% 250% [1] Month-to-date and year-to-date as of 2/20/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although revenues of $867 million remained roughly flat versus Q4 2021, they came in ahead of expectations as the company had initially guided for a year-over-year sales decline of about 7%. Roku’s devices business saw revenue decline 18% versus last year, while its more lucrative platform business – which sells advertising and content – saw revenue grow by about 5%. Total [2] ROKU Return 24% 76% 38% S&P 500 Return 0% 6% 82% Trefis Multi-Strategy Portfolio 0% 11% 250% [1] Month-to-date and year-to-date as of 2/20/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17019.0
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2023-02-22 00:00:00 UTC
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Why Abbott Laboratories Stock Sank Today
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AAPL
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https://www.nasdaq.com/articles/why-abbott-laboratories-stock-sank-today
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nan
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nan
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What happened
Companies that make glucose monitoring devices were under strain in the stock market Wednesday. While this isn't a monster part of Abbott Laboratories' (NYSE: ABT) business, the company did suffer from guilt by association. A tech giant, it seems, might be coming for its market share. And as a result, Abbott's share price sagged by nearly 1% today.
So what
This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (NASDAQ: AAPL) is developing noninvasive glucose monitoring. Apparently the aim is to incorporate such a function into the Apple Watch.
Regular glucose monitoring is essential for people who suffer from diabetes -- a widespread disorder, particularly in the U.S. Classic glucose monitoring involves pricking the skin for a small blood sample.
Abbott and other companies make skin patches that essentially perform this work, but they must be replaced roughly every two weeks and are therefore a somewhat clunky solution.
Apple's glucose monitoring project, code-named E5 according to Bloomberg's reporting, is centered on advanced microchip technology known as silicon photonics. Essentially, the company hopes to use lasers to emit certain wavelengths of light below the skin in order to take measurements. Hundreds of Apple engineers are working on the project, the article's sources said.
Now what
This is certainly good news for those with diabetes, and if realized, it would represent a true advancement in diabetes care. At the moment, though, it's only a media report, and no investor should sell out of Abbott or load up on Apple simply because of it.
10 stocks we like better than Abbott Laboratories
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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 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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So what This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (NASDAQ: AAPL) is developing noninvasive glucose monitoring. Abbott and other companies make skin patches that essentially perform this work, but they must be replaced roughly every two weeks and are therefore a somewhat clunky solution. Apple's glucose monitoring project, code-named E5 according to Bloomberg's reporting, is centered on advanced microchip technology known as silicon photonics.
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So what This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (NASDAQ: AAPL) is developing noninvasive glucose monitoring. Regular glucose monitoring is essential for people who suffer from diabetes -- a widespread disorder, particularly in the U.S. Classic glucose monitoring involves pricking the skin for a small blood sample. Apple's glucose monitoring project, code-named E5 according to Bloomberg's reporting, is centered on advanced microchip technology known as silicon photonics.
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So what This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (NASDAQ: AAPL) is developing noninvasive glucose monitoring. Regular glucose monitoring is essential for people who suffer from diabetes -- a widespread disorder, particularly in the U.S. Classic glucose monitoring involves pricking the skin for a small blood sample. The Motley Fool has positions in and recommends Abbott Laboratories and Apple.
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So what This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (NASDAQ: AAPL) is developing noninvasive glucose monitoring. Regular glucose monitoring is essential for people who suffer from diabetes -- a widespread disorder, particularly in the U.S. Classic glucose monitoring involves pricking the skin for a small blood sample. * 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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17020.0
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2023-02-22 00:00:00 UTC
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Australia tells Twitter, Google to give information on handling online child abuse
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AAPL
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https://www.nasdaq.com/articles/australia-tells-twitter-google-to-give-information-on-handling-online-child-abuse
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nan
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nan
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By Byron Kaye
SYDNEY, Feb 23 (Reuters) - An Australian regulator has sent legal letters to Twitter and Google telling them to hand over information about their efforts to stop online child abuse, drawing them into a crackdown that has already put pressure on other global tech firms.
The action by the country's e-safety commissioner keeps a spotlight on the anti-exploitation practices at Twitter under the ownership of billionaire Elon Musk, who called child protection his top priority while also laying off more than half its employees since taking over last October.
"With Elon Musk declaring child sexual abuse a top priority, this is an opportunity for him to explain what he is indeed doing," e-safety commissioner Julie Inman Grant told Reuters in an interview, referring to several of Musk's tweets.
She said it was in Twitter's interests to show that it was acting effectively to eradicate child sexual abuse material, otherwise advertisers could turn away from the company.
Inman Grant, who had served as a public policy director for Twitter until 2016, said the responses of larger tech firms, coupled with reports of looser content moderation at Twitter since Musk took over, prompted her to take action.
Twitter closed its Australian office after Musk's buyout so there was no local representative to respond to Reuters, and a request for comment sent to the San Francisco-based company's media email address was not immediately answered.
Apart from writing to Twitter, the commissioner also sent letters to Alphabet Inc's GOOGL.O Google, owner of YouTube and the file storage unit Google Drive, and China's TikTok.
Google's senior manager of government affairs and public policy Samantha Yorke said abuse material had no place on the company's platforms and "we utilise a range of industry standard scanning techniques including hash-matching technology and artificial intelligence to identify and remove (child abuse material) that has been uploaded to our services".
TikTok's policy manager for Australia Jed Horner said in a statement the company had a zero-tolerance approach to dissemination of abuse material with more than 40,000 safety professionals globally "who develop and enforce our policies, and build processes and technologies to detect, remove or restrict violative content at scale".
Under new laws in Australia, the e-safety commissioner, an office set up to protect internet users, can compel internet companies to give detailed information about the frequency of child exploitation on their platforms and about measures they take to stamp it out.
Companies that fail to cooperate face fines of up to A$700,000 ($478,000) per day.
Last year, the commissioner sent similar notices to Apple Inc AAPL.O, Microsoft Corp MSFT.O and Facebook owner Meta Platforms META.O. After receiving their responses, the commissioner called their practices inadequate.
Inman Grant said a 2020 joint investigation with the Canadian Centre for Child Protection found widespread publicly-available abuse material on Twitter, which those authorities reported to Twitter's head of trust and safety.
"When you compound that with Elon Musk coming here, eviscerating the trust and safety team, but also cutting the local public policy externally-facing folks, and then allowing some of the worst of the worst actors back on, you're going to have a lot of bad actors, fewer guardrails," she said, commenting on the job cuts at Twitter.
Although Twitter had effectively closed its Australian unit, Inman Grant said her office had extra-territorial powers to fine companies abroad, but she hoped the public attention would prompt Twitter to cooperate.
($1 = 1.4637 Australian dollars)
(Reporting by Byron Kaye; Editing by Simon Cameron-Moore)
((byron.kaye@thomsonreuters.com; +612 9171 7541; @byronkaye;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, the commissioner sent similar notices to Apple Inc AAPL.O, Microsoft Corp MSFT.O and Facebook owner Meta Platforms META.O. By Byron Kaye SYDNEY, Feb 23 (Reuters) - An Australian regulator has sent legal letters to Twitter and Google telling them to hand over information about their efforts to stop online child abuse, drawing them into a crackdown that has already put pressure on other global tech firms. The action by the country's e-safety commissioner keeps a spotlight on the anti-exploitation practices at Twitter under the ownership of billionaire Elon Musk, who called child protection his top priority while also laying off more than half its employees since taking over last October.
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Last year, the commissioner sent similar notices to Apple Inc AAPL.O, Microsoft Corp MSFT.O and Facebook owner Meta Platforms META.O. The action by the country's e-safety commissioner keeps a spotlight on the anti-exploitation practices at Twitter under the ownership of billionaire Elon Musk, who called child protection his top priority while also laying off more than half its employees since taking over last October. "With Elon Musk declaring child sexual abuse a top priority, this is an opportunity for him to explain what he is indeed doing," e-safety commissioner Julie Inman Grant told Reuters in an interview, referring to several of Musk's tweets.
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Last year, the commissioner sent similar notices to Apple Inc AAPL.O, Microsoft Corp MSFT.O and Facebook owner Meta Platforms META.O. Google's senior manager of government affairs and public policy Samantha Yorke said abuse material had no place on the company's platforms and "we utilise a range of industry standard scanning techniques including hash-matching technology and artificial intelligence to identify and remove (child abuse material) that has been uploaded to our services". Inman Grant said a 2020 joint investigation with the Canadian Centre for Child Protection found widespread publicly-available abuse material on Twitter, which those authorities reported to Twitter's head of trust and safety.
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Last year, the commissioner sent similar notices to Apple Inc AAPL.O, Microsoft Corp MSFT.O and Facebook owner Meta Platforms META.O. The action by the country's e-safety commissioner keeps a spotlight on the anti-exploitation practices at Twitter under the ownership of billionaire Elon Musk, who called child protection his top priority while also laying off more than half its employees since taking over last October. Inman Grant, who had served as a public policy director for Twitter until 2016, said the responses of larger tech firms, coupled with reports of looser content moderation at Twitter since Musk took over, prompted her to take action.
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17021.0
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2023-02-22 00:00:00 UTC
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Why Meta Stock Should Pay a Dividend
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AAPL
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https://www.nasdaq.com/articles/why-meta-stock-should-pay-a-dividend
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nan
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nan
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Facebook parent Meta Platforms (NASDAQ: META) has a cash problem. It wrapped up its fourth quarter with nearly $41 billion in cash, cash equivalents, and marketable securities. Subtracting its long-term debt of nearly $10 billion gives the company a net cash position of about $31 billion when including cash equivalents and marketable securities.
Further, this pile of cash can grow quickly if the company doesn't find prudent ways to spend it. The tech company's average annual free cash flow over the last two years was more than $28 billion.
With both a strong cash balance and impressive free cash flow, it's no surprise that the company recently announced a massive increase to its share-repurchase program. But is management making a mistake by not paying a dividend with some of the excess cash it is using for repurchases?
Here's why paying a dividend might be a smart move for Meta.
Share repurchases can be risky
While share repurchases can provide significant shareholder value, they can also destroy value if they are not executed wisely. Case in point: The company repurchased more than $19 billion worth of its own stock in the fourth quarter of 2021. Shares averaged about $330 apiece during the quarter. By comparison, the stock sits about 48% below this level today. This means Meta significantly overpaid for its stock.
With Meta's stock falling to levels below $100 at one point during the fourth quarter of 2022, the company must have bought its stock much more aggressively at that time, right? Not at all. Meta repurchased less than $7 billion of its stock during the quarter.
To its credit, Meta has returned to its aggressive stance more recently. On February 1, management said it is expanding its share-repurchase authorization by $40 billion (about $11 billion remained on the previous authorization). While the stock is trading substantially lower than it was in 2021, it's worth noting that it's up significantly from lows in 2022. So even this aggressive expansion of its repurchase program is arguably a bit late to the party.
Executing a share-repurchase program well requires exceptional capital skills -- especially when the buyback is meaningful. Meta hasn't yet proven its prowess in repurchasing shares in a measured, shareholder-friendly way.
A dividend would help mitigate some shareholder risk
By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. Further, it implies that the company expects its business to continue growing over the long haul. Both of these predictions are fair and, potentially, even conservative given the stock's valuation today. For this reason, there's some merit to share repurchases with the price at today's level.
But to avoid a dividend entirely and rely solely on share repurchases as a means to indirectly return cash to shareholders shows a level of hubris from management. It suggests that management is certain that the business can continue growing over the long haul.
Consider an alternative. If management also paid a small dividend with some of the excess cash allocated for share repurchases, Meta would demonstrate a level of humility. A small dividend would mean that the company (a) realizes how difficult it is to buy back stock in a way that builds shareholder value and (b) acknowledges that there is a small probability of things not going as well as expected.
A view like this might be wise, particularly in light of how a weakness in Meta's business model was exposed starting in late 2021. A change in advertising tracking and measurement on Apple's mobile operating system dealt a substantial blow to the social network specialist's business. This showed how reliant Meta is on other tech platforms, namely Apple's. While the company is working to address this issue, management would be wise to reassess its view that all roads lead to a bigger and more successful Meta years from now.
Ultimately, a regular dividend could help mitigate some of the risk in owning Meta stock. It would put cash in shareholders' hands every quarter while the company dedicates more energy to operations and a bit less to timing stock buybacks. Sure, share repurchases at Meta's stock price today might prove to be a good move in hindsight. But splitting some of the cash it has allocated for a capital return program with dividends would arguably demonstrate enhanced risk management by the company.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and 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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But to avoid a dividend entirely and rely solely on share repurchases as a means to indirectly return cash to shareholders shows a level of hubris from management. A change in advertising tracking and measurement on Apple's mobile operating system dealt a substantial blow to the social network specialist's business. While the company is working to address this issue, management would be wise to reassess its view that all roads lead to a bigger and more successful Meta years from now.
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A dividend would help mitigate some shareholder risk By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. But splitting some of the cash it has allocated for a capital return program with dividends would arguably demonstrate enhanced risk management by the company. 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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With Meta's stock falling to levels below $100 at one point during the fourth quarter of 2022, the company must have bought its stock much more aggressively at that time, right? A dividend would help mitigate some shareholder risk By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. 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.
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Share repurchases can be risky While share repurchases can provide significant shareholder value, they can also destroy value if they are not executed wisely. Meta repurchased less than $7 billion of its stock during the quarter. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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17022.0
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2023-02-22 00:00:00 UTC
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Validea Guru Fundamental Report for AAPL - 2/22/2023
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AAPL
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-2-22-2023
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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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17023.0
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2023-02-22 00:00:00 UTC
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Over 1 Trillion Reasons to Like PayPal Stock
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AAPL
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https://www.nasdaq.com/articles/over-1-trillion-reasons-to-like-paypal-stock
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nan
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nan
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After registering tremendous growth as a direct result of the coronavirus pandemic, PayPal's (NASDAQ: PYPL) business dealt with a huge slowdown in 2022 as consumers reverted to more normal behavior and the macroeconomic picture weakened. Investors soured on the stock, sending shares down a whopping 62% in 2022.
However, the pessimism might be overblown. In fact, there are still 1.36 trillion reasons that investors should love PayPal stock. Let's take a closer look.
A dominating force in digital payments
In 2022, the fintech leader reported that it processed an incredible $1.36 trillion in total payment volume (TPV), up from $1.25 trillion in 2021 and $936 billion in 2020. This figure measures the entire dollar value of all the transactions that occur on PayPal's network, and it demonstrates the company's continued dominance in electronic payments.
Macroeconomic headwinds have rightfully been a top-of-mind concern for the management team, as well as analysts, throughout the past year. Inflationary pressures and higher interest rates are a headwind for consumer spending, especially for discretionary items, the source of most of PayPal's transactions. Moreover, the ongoing threat of a recession will certainly dissuade shoppers, particularly those on the lower end of the economic spectrum, from spending on unnecessary things.
This unfavorable situation is worsened by the normalization of e-commerce spending trends after the pandemic-fueled boom. Online shopping experienced a major surge when everyone was stuck at home, but with more people spending at physical stores, e-commerce has taken a hit. Online shopping's share of retail spending in the U.S. was at 14.7% in the last quarter of 2022, down from 16.4% in Q2 2020.
Coming out of this year and going into 2024, the company believes e-commerce growth "probably reverts back to double digits," said Chief Executive Officer Dan Schulman on the Q4 2022 earnings call, voicing his optimism. He believes that because inflation is cooling, discretionary spending will bounce back. Schulman also cited China's rebound from strict COVID lockdown measures offering a boost in the near term.
Despite these macroeconomic headwinds, PayPal has continued to perform well. Revenue and free cash flow increased 8% and 4%, respectively, in 2022 from a year earlier. And the business now has 435 million active accounts, a gargantuan sum that was up 2% over 2021. Seeing PayPal continue to post gains was welcome news for shareholders.
But again, it all goes back to TPV on PayPal's network, which is probably the biggest factor driving the company's success. Investors obviously want to see this number climbing higher because it means that usage is rising. Over the trailing-12-month period, the average active account transacted 51.4 times on the platform, up from 45.4 in the year-ago period. Recent developments, such allowing Amazon customers to check out with their Venmo balances and integrating PayPal- and Venmo-branded credit cards with Apple Wallet, support even more growth in the years ahead because they expand the ways that accounts can use the company's various services.
Should investors buy the stock?
With the stock falling out of favor with investors, down 28% in the past year (as of this writing), shares are currently trading at a price-to-earnings (P/E) ratio of 37. This compares quite favorably to PayPal's historical valuation. Since being spun off from eBay in July 2015, PayPal's P/E has averaged 51, a steep price to pay no doubt. The current valuation provides prospective investors with some downside protection, and it's hard to see the stock getting much cheaper anytime soon thanks to negative sentiment being largely behind us.
Wall Street seems very optimistic about PayPal's prospects. Average analyst estimates call for revenue and earnings per share to increase at a compound annual rate of 8.3% and 24.2%, respectively, between 2022 and 2026. The potential for heightened future financial performance can push the stock price higher.
If you're looking for a fintech stock to add to your portfolio, you can do much worse than PayPal. This digital payments trailblazer is well positioned to benefit from the secular shift toward a cashless economy.
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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. Neil Patel has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Apple, and PayPal. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After registering tremendous growth as a direct result of the coronavirus pandemic, PayPal's (NASDAQ: PYPL) business dealt with a huge slowdown in 2022 as consumers reverted to more normal behavior and the macroeconomic picture weakened. Coming out of this year and going into 2024, the company believes e-commerce growth "probably reverts back to double digits," said Chief Executive Officer Dan Schulman on the Q4 2022 earnings call, voicing his optimism. Recent developments, such allowing Amazon customers to check out with their Venmo balances and integrating PayPal- and Venmo-branded credit cards with Apple Wallet, support even more growth in the years ahead because they expand the ways that accounts can use the company's various services.
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Coming out of this year and going into 2024, the company believes e-commerce growth "probably reverts back to double digits," said Chief Executive Officer Dan Schulman on the Q4 2022 earnings call, voicing his optimism. Over the trailing-12-month period, the average active account transacted 51.4 times on the platform, up from 45.4 in the year-ago period. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple.
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10 stocks we like better than PayPal When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them! The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple.
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Despite these macroeconomic headwinds, PayPal has continued to perform well. Should investors buy the stock? The Motley Fool has positions in and recommends Amazon.com, Apple, and PayPal.
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17024.0
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2023-02-22 00:00:00 UTC
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A Recession May Be Inevitable: 1 ETF to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/a-recession-may-be-inevitable%3A-1-etf-to-buy-right-now
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nan
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nan
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For months, economists have debated the likelihood of a recession. While some people are still optimistic that we can avoid it, a recession is beginning to look more likely.
A stronger-than-expected jobs report was cause for celebration for some, as job losses are a hallmark of recessions. A historically low unemployment rate also means the economy is showing no signs of slowing down, which can be a positive.
However, inflation also remains stubbornly high, which could lead the Federal Reserve to be more aggressive in its interest rate hikes -- which has the potential to result in a recession.
Fortunately, there's one rock-solid exchange-traded fund (ETF) that can help your portfolio survive even the roughest economic downturns: the S&P 500 ETF.
Image source: Getty Images.
How likely is a recession right now?
Nobody knows for certain whether we'll be hit with a recession or not, and even the experts are still arguing over it.
Treasury Secretary Janet Yellen recently explained during an appearance on Good Morning America that it's unlikely we'll face a recession in 2023, saying, "You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years."
But Fed Chairman Jerome Powell has cautioned that we could still see higher interest rate hikes if inflation doesn't slow soon.
"The reality is we're going to react to the data," Powell said during a recent question-and-answer session at the Economic Club of Washington, D.C. "So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more than is priced in."
In other words, the jobs reports and inflation data over the next few months will be key in determining the Fed's strategy, and if those numbers remain high, we could see more aggressive rate hikes -- increasing the chances of a recession.
The right strategy to protect your savings
First, it's important to note that there are a few precautions investors should take to prepare for a potential recession.
Double-check that you have at least three to six months' worth of savings stashed in an emergency fund, and don't invest anything unless you're certain you can pay all your bills and that your finances are in good shape.
If you do have cash to spare, now is a smart time to think about investing. Stock prices are still lower than they've been in a long time, and you can snag high-quality investments at a fraction of the cost.
An S&P 500 ETF is never a bad option, but it's a particularly smart choice in times like these to keep your money safer.
Why an S&P 500 ETF is a smart buy right now
An S&P 500 ETF is a fund that tracks the S&P 500 index, so it includes the same stocks as the index itself and aims to replicate its performance. There are plenty of advantages to this type of investment, but a few of the most notable include:
Instant diversification: The S&P 500 includes stocks from 500 of the largest and strongest companies in the U.S., across a wide variety of industries. That level of diversification can substantially lower your risk, because if a few stocks (or even an entire sector) are hit hard during a recession, it won't sink your entire portfolio.
A collection of big names: Again, the companies within the S&P 500 are the best of the best. Many of them are household names, including Amazon, Apple, Coca-Cola, Procter & Gamble, Home Depot, and hundreds more. If there are any companies to survive a recession, it's the juggernauts in the S&P 500.
A perfect track record: The S&P 500 has existed for decades, and in that time, it has faced some of the worst market crashes and economic downturns in history. Yet it has recovered from every one so far. While there are no guarantees in investing, it's incredibly likely the S&P 500 will recover from whatever may happen in the future.
With an S&P 500 ETF, your investments will closely follow the performance of the index itself. And since the index is almost guaranteed to recover from a recession, an S&P 500 ETF likely will, too.
Because all S&P 500 ETFs follow the same index, they're going to see similar returns. But one fund that stands out is the Vanguard S&P 500 ETF (NYSEMKT: VOO).
This fund was launched in 2010, and although that isn't the longest track record, it has earned an annualized average return of 12.64% over the past 10 years. It also has an expense ratio of just 0.03% (one of the lowest among ETFs), which could save you thousands of dollars in fees over time.
It's unclear what the future holds for the economy, but a recession isn't out of the question. If you can swing it, investing in an S&P 500 ETF can help protect your savings no matter what happens with the market.
10 stocks we like better than Vanguard S&P 500 ETF
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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. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, inflation also remains stubbornly high, which could lead the Federal Reserve to be more aggressive in its interest rate hikes -- which has the potential to result in a recession. In other words, the jobs reports and inflation data over the next few months will be key in determining the Fed's strategy, and if those numbers remain high, we could see more aggressive rate hikes -- increasing the chances of a recession. Double-check that you have at least three to six months' worth of savings stashed in an emergency fund, and don't invest anything unless you're certain you can pay all your bills and that your finances are in good shape.
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But Fed Chairman Jerome Powell has cautioned that we could still see higher interest rate hikes if inflation doesn't slow soon. Many of them are household names, including Amazon, Apple, Coca-Cola, Procter & Gamble, Home Depot, and hundreds more. 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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Treasury Secretary Janet Yellen recently explained during an appearance on Good Morning America that it's unlikely we'll face a recession in 2023, saying, "You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years." Why an S&P 500 ETF is a smart buy right now An S&P 500 ETF is a fund that tracks the S&P 500 index, so it includes the same stocks as the index itself and aims to replicate its performance. And since the index is almost guaranteed to recover from a recession, an S&P 500 ETF likely will, too.
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How likely is a recession right now? Why an S&P 500 ETF is a smart buy right now An S&P 500 ETF is a fund that tracks the S&P 500 index, so it includes the same stocks as the index itself and aims to replicate its performance. If you can swing it, investing in an S&P 500 ETF can help protect your savings no matter what happens with the market.
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17025.0
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2023-02-22 00:00:00 UTC
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Has PayPal Reached a Once-in-a-Decade Buying Opportunity?
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AAPL
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https://www.nasdaq.com/articles/has-paypal-reached-a-once-in-a-decade-buying-opportunity
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nan
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nan
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For years, PayPal (NASDAQ: PYPL) was synonymous with online payment processing. However, that space has become increasingly crowded thanks to rising competition. Additionally, PayPal seems to have transitioned from a growth to a value stock, confusing investors on how they should view the company.
Because of this transition, PayPal's stock is incredibly cheap, leaving an excellent opportunity for investors to pick up shares at a reasonable valuation. Read on to discover why now could be a once-in-a-decade buying opportunity for PayPal stock.
PayPal is starting to become more profitable
As PayPal transitions from a growth to a value designation, it will also experience a leadership change. President and CEO Dan Schulman will retire at the end of 2023 and will stay on to ensure a smooth transition to the next CEO. Schulman led the stock to outpace the S&P 500 for most of his career after PayPal was spun off from eBay in July 2015, but blunders in 2021 caused those gains to fall away.
PYPL Total Return Level data by YCharts
New blood can hopefully reinvigorate the stock because there's a lot of potential with PayPal.
In the fourth quarter, revenue was only up 7% over last year, but earnings per share (EPS) rose 19%. This means PayPal is becoming more efficient and making greater profits off smaller revenue growth. While you may think this model won't work, it's precisely what Apple has done in its rise to become the world's largest company by market cap.
This trend is expected to continue throughout 2023, with full-year EPS expected to rise 56% to $3.27, on Wall Street-estimated revenue growth of 7%.
With that expected earnings growth, investors should consider using a forward price-to-earnings (P/E) ratio, which utilizes earnings projections instead of trailing earnings. This method can be faulty because you're not valuing the company on established facts. But when a company is experiencing significant earnings growth, it's a helpful metric. By examining PayPal through this lens, the stock looks incredibly cheap, especially when compared to its historical trailing P/E multiple.
PYPL PE Ratio data by YCharts
With PayPal's forward valuation below 16 times forward earnings, it's well below the S&P 500's trailing P/E ratio of 21.5, meaning PayPal is one of the lower-valued companies within that index.
With PayPal rapidly growing earnings and cheaply valued, the stock looks attractive, but could a new challenger derail its current trajectory?
Large banks are launching a digital wallet
It was recently reported that major banks, including Wells Fargo, JPMorgan Chase, and Bank of America, have been developing a digital wallet that would be a direct competitor to PayPal. While it's a smart idea for the banks to do this, the effort is likely too little, too late.
PayPal (and other digital wallets like Apple Pay) have already established a strong customer following. Unless these wallets offer a game-changing feature, it's likely to be another offering in a crowded space. While this is something to watch, management didn't even mention it on PayPal's Q4 earnings call.
Schulman has done a lot of good for PayPal, but the transition to new leadership should boost the stock, especially if the board makes an all-star hire. Combine that with rapidly growing earnings and a cheap stock, and you have a recipe for solid stock price appreciation.
In the future, the bar for PayPal will be to beat the S&P 500 by a few percentage points over the long term. If it can do that, it will be a successful investment. I'm confident this will happen, so I'm a buyer of shares.
10 stocks we like better than PayPal
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase 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. Keithen Drury has positions in PayPal. The Motley Fool has positions in and recommends Apple, Bank of America, JPMorgan Chase, and PayPal. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Because of this transition, PayPal's stock is incredibly cheap, leaving an excellent opportunity for investors to pick up shares at a reasonable valuation. Schulman led the stock to outpace the S&P 500 for most of his career after PayPal was spun off from eBay in July 2015, but blunders in 2021 caused those gains to fall away. Schulman has done a lot of good for PayPal, but the transition to new leadership should boost the stock, especially if the board makes an all-star hire.
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See the 10 stocks *Stock Advisor returns as of February 8, 2023 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, JPMorgan Chase, and PayPal. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple.
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Additionally, PayPal seems to have transitioned from a growth to a value stock, confusing investors on how they should view the company. PYPL PE Ratio data by YCharts With PayPal's forward valuation below 16 times forward earnings, it's well below the S&P 500's trailing P/E ratio of 21.5, meaning PayPal is one of the lower-valued companies within that index. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $52.50 calls on eBay, short April 2023 $70 puts on PayPal, and short March 2023 $130 calls on Apple.
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Additionally, PayPal seems to have transitioned from a growth to a value stock, confusing investors on how they should view the company. With that expected earnings growth, investors should consider using a forward price-to-earnings (P/E) ratio, which utilizes earnings projections instead of trailing earnings. The Motley Fool has positions in and recommends Apple, Bank of America, JPMorgan Chase, and PayPal.
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17026.0
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2023-02-22 00:00:00 UTC
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Got $5,000? These 2 Low-Risk Growth Stocks Also Pay Dividends
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AAPL
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https://www.nasdaq.com/articles/got-%245000-these-2-low-risk-growth-stocks-also-pay-dividends
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nan
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nan
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Do you have $5,000 you can afford to invest, but don't want to take on a ton of risk? Do you want to put that money into a decent growth investment that also pays dividends? Although that may seem like a lot of criteria for one stock to meet, there are a couple of solid blue chips that offer all of them.
Thermo Fisher Scientific (NYSE: TMO) and Apple (NASDAQ: AAPL) are robust businesses that are highly profitable and likely to grow. And although their yields aren't high, they have been boosting their dividend payments.
1. Thermo Fisher Scientific
Thermo Fisher Scientific is a large healthcare company that is involved with life sciences and diagnostics, making laboratory products and analytical instruments. And it continues to get bigger, in part through mergers and acquisitions. It has been involved in more than 60 of them. One of the largest buys was its $17.4 billion purchase of PPD, which provides clinical research services to biotech companies, in 2021.
Thermo Fisher's aggressive growth strategy has paid off well for investors. A $5,000 investment into the stock five years ago would be worth more than $13,400 today when including its dividend.
The business' strong financials enable it to continue pursuing more acquisitions. In 2022, its net income came in at just under $7 billion, giving it a solid profit margin of 16%. Its revenue rose at a rate of 15 to $44.9 billion, while its free cash flow was also strong at $6.9 billion -- making 2022 the third consecutive year where it was at least $6.7 billion.
Thermo Fisher is a strong, low-volatility stock that investors can count on for continued growth over the long haul. It can also be a reliable source of recurring revenue. While its yield of 0.2% isn't high, if the company ever runs out of growth opportunities, it may end up boosting its dividend as its payout ratio is incredibly low at just 7% of earnings. And that's after the company doubled its dividend in just five years.
For long-term investors, Thermo Fisher looks like a great stock to invest $5,000 into today, as there are many ways it can pay off.
2. Apple
Apple has been an even better investment than Thermo Fisher over the past five years. During that time frame, a $5,000 investment into the iPhone maker would have more than tripled in value to roughly $18,500 when including its dividend.
The company is a Warren Buffett favorite, and one that the billionaire investor has referred to in the past as "probably the best business I know in the world." Apple's strong brand makes it a relatively resilient company to invest in. Although its sales for the last three months of 2022 were down 5% year over year to $117.2 billion, that's still a strong performance given the current macroeconomic environment.
The more important takeaway, I'd argue, is that revenue from the company's service business (which includes AppleCare, cloud services, and digital content) hit an all-time high of $20.8 billion. Services now account for nearly 18% of revenue compared to less than 16% a year ago. By diversifying, Apple's business becomes less dependent on expensive phones and other products.
The company also generated $34 billion in operating cash flow during the period, showing that this continues to be a cash-rich business. Apple doesn't pay a huge dividend -- it yields just 0.6% at the current share price -- but it has raised its payout by 46% in the last five years. And its payout ratio is incredibly low at 15%, so there is plenty of room for Apple to further hike its dividend should it choose to do so.
Whether you want a growing dividend or just a strong, stable business to invest in, Apple is a stock worth considering.
10 stocks we like better than Thermo Fisher Scientific
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Thermo Fisher Scientific. 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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Thermo Fisher Scientific (NYSE: TMO) and Apple (NASDAQ: AAPL) are robust businesses that are highly profitable and likely to grow. While its yield of 0.2% isn't high, if the company ever runs out of growth opportunities, it may end up boosting its dividend as its payout ratio is incredibly low at just 7% of earnings. Apple doesn't pay a huge dividend -- it yields just 0.6% at the current share price -- but it has raised its payout by 46% in the last five years.
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Thermo Fisher Scientific (NYSE: TMO) and Apple (NASDAQ: AAPL) are robust businesses that are highly profitable and likely to grow. Thermo Fisher Scientific Thermo Fisher Scientific is a large healthcare company that is involved with life sciences and diagnostics, making laboratory products and analytical instruments. The Motley Fool has positions in and recommends Apple and Thermo Fisher Scientific.
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Thermo Fisher Scientific (NYSE: TMO) and Apple (NASDAQ: AAPL) are robust businesses that are highly profitable and likely to grow. Thermo Fisher Scientific Thermo Fisher Scientific is a large healthcare company that is involved with life sciences and diagnostics, making laboratory products and analytical instruments. Apple Apple has been an even better investment than Thermo Fisher over the past five years.
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Thermo Fisher Scientific (NYSE: TMO) and Apple (NASDAQ: AAPL) are robust businesses that are highly profitable and likely to grow. Apple Apple has been an even better investment than Thermo Fisher over the past five years. Whether you want a growing dividend or just a strong, stable business to invest in, Apple is a stock worth considering.
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17027.0
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2023-02-21 00:00:00 UTC
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Foxconn chairman to visit COVID-hit iPhone plant in China -source
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AAPL
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https://www.nasdaq.com/articles/foxconn-chairman-to-visit-covid-hit-iphone-plant-in-china-source-0
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nan
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nan
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By Sarah Wu
TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said.
This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said.
Liu is scheduled to meet with senior government officials including Lou Yangsheng, the Communist Party chief of Henan province where Zhengzhou is located, the source said.
Foxconn 2317.TW, formally known as Hon Hai Precision Industry Co, declined to comment. The Henan government did not immediately respond to a request for comment.
The source briefed on the matter declined to be identified as they were not authorised to speak to the media.
The Taiwanese company's iPhone plant was hit late last year by a COVID-19 outbreak that prompted thousands of worker departures and unrest, as well as production disruptions.
In January, Foxconn said output at its Zhengzhou plant had "basically returned to normal."
(Reporting by Sarah Wu; Editing by Stephen Coates and Tom Hogue)
((S.Wu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Liu is scheduled to meet with senior government officials including Lou Yangsheng, the Communist Party chief of Henan province where Zhengzhou is located, the source said.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. The Henan government did not immediately respond to a request for comment.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Liu is scheduled to meet with senior government officials including Lou Yangsheng, the Communist Party chief of Henan province where Zhengzhou is located, the source said.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Liu is scheduled to meet with senior government officials including Lou Yangsheng, the Communist Party chief of Henan province where Zhengzhou is located, the source said.
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17028.0
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2023-02-21 00:00:00 UTC
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Why Apple Stock Tasted Sour on Tuesday
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-tasted-sour-on-tuesday
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nan
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nan
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What happened
Apple (NASDAQ: AAPL) shareholders had a trading session to forget on Tuesday. The tech powerhouse shed nearly 3% of its value on the day. Meanwhile, the S&P 500 index dipped a slightly less precipitous 2%. An analyst's somewhat gloomy update was one big reason why.
So what
Before the session opened, AllianceBernstein prognosticator Toni Sacconaghi published a new Apple research note. In it, he highlighted the fact that the growth rate of its services revenue has declined for six quarters in a row. On top of that, its gross margins fell in its most recently reported quarter.
Sacconaghi explained this by writing that Apple's take from advertising and app store sales has not been strong. This matters, because these sources provide roughly 60% of the tech giant's total services revenue. He pointed out that in Q3 2021, its advertising growth was over 60%. Now, ad revenues are shrinking. And app store revenue has risen by only 4% on average over the last four quarters.
Meanwhile, Sacconaghi wrote, other elements of the services business have averaged 15% improvement in the last three-plus years of operation.
Now what
Yet the analyst sees hope for a recovery.
"The digital advertising market is expected to rebound to low double-digit growth, and Apple should grow faster given its own advertising business," he wrote. As it does, app store revenue is positioned to rise at double-digit percentage rates, thanks largely to higher sales of subscriptions -- an increasingly popular business model.
Despite the bearish tone of his note, Sacconaghi isn't recommending investors sell their Apple shares. He maintained his market-perform (hold) stance on the stock, with a price target of $125 per share.
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See the 10 stocks
*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 Apple (NASDAQ: AAPL) shareholders had a trading session to forget on Tuesday. So what Before the session opened, AllianceBernstein prognosticator Toni Sacconaghi published a new Apple research note. As it does, app store revenue is positioned to rise at double-digit percentage rates, thanks largely to higher sales of subscriptions -- an increasingly popular business model.
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What happened Apple (NASDAQ: AAPL) shareholders had a trading session to forget on Tuesday. As it does, app store revenue is positioned to rise at double-digit percentage rates, thanks largely to higher sales of subscriptions -- an increasingly popular business model. Despite the bearish tone of his note, Sacconaghi isn't recommending investors sell their Apple shares.
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What happened Apple (NASDAQ: AAPL) shareholders had a trading session to forget on Tuesday. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Eric Volkman has positions in Apple.
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What happened Apple (NASDAQ: AAPL) shareholders had a trading session to forget on Tuesday. And app store revenue has risen by only 4% on average over the last four quarters. That's right -- they think these 10 stocks are even better buys.
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17029.0
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2023-02-21 00:00:00 UTC
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After Hours Most Active for Feb 21, 2023 : VALE, ITUB, SHV, SHOP, AAPL, PFF, ONEM, AMZN, QQQ, MRO, BAC, NI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-21-2023-%3A-vale-itub-shv-shop-aapl-pff-onem-amzn-qqq-mro
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The NASDAQ 100 After Hours Indicator is up 3.94 to 12,064.24. The total After hours volume is currently 119,943,942 shares traded.
The following are the most active stocks for the after hours session:
VALE S.A. (VALE) is unchanged at $17.04, with 8,997,526 shares traded. VALE's current last sale is 87.38% of the target price of $19.5.
Itau Unibanco Banco Holding SA (ITUB) is +0.05 at $5.06, with 7,881,540 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
iShares Short Treasury Bond ETF (SHV) is +0.0113 at $110.14, with 4,752,793 shares traded. This represents a .37% increase from its 52 Week Low.
Shopify Inc. (SHOP) is unchanged at $41.42, with 3,645,423 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 $-0.12. SHOP's current last sale is 92.04% of the target price of $45.
Apple Inc. (AAPL) is +0.1 at $148.58, with 3,090,985 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 $1.25. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
iShares Preferred and Income Securities ETF (PFF) is -0.05 at $32.05, with 3,000,466 shares traded. This represents a 7.59% increase from its 52 Week Low.
1Life Healthcare, Inc. (ONEM) is +1.4 at $17.87, with 2,809,257 shares traded.ONEM is scheduled to provide an earnings report on 2/22/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is -0.52 per share, which represents a -50 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is +0.17 at $94.75, with 2,582,876 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 $0.29. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.5477 at $295.58, with 2,516,254 shares traded. This represents a 16.25% increase from its 52 Week Low.
Marathon Oil Corporation (MRO) is -0.02 at $25.40, with 2,321,944 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.96. As reported by Zacks, the current mean recommendation for MRO is in the "buy range".
Bank of America Corporation (BAC) is +0.02 at $34.54, with 2,269,327 shares traded. BAC's current last sale is 90.89% of the target price of $38.
NiSource, Inc (NI) is unchanged at $26.95, with 1,471,228 shares traded.NI is scheduled to provide an earnings report on 2/22/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.49 per share, which represents a 39 percent increase over the EPS one Year Ago
The views and 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 +0.1 at $148.58, with 3,090,985 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". 1Life Healthcare, Inc. (ONEM) is +1.4 at $17.87, with 2,809,257 shares traded.ONEM is scheduled to provide an earnings report on 2/22/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is +0.1 at $148.58, with 3,090,985 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.52 per share, which represents a -50 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.1 at $148.58, with 3,090,985 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.52 per share, which represents a -50 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.1 at $148.58, with 3,090,985 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 Mar 2023.
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17030.0
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2023-02-21 00:00:00 UTC
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Biden admin won't veto ITC's Apple Watch import ban ruling
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AAPL
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https://www.nasdaq.com/articles/biden-admin-wont-veto-itcs-apple-watch-import-ban-ruling-0
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nan
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By Blake Brittain
(Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday.
An AliveCor spokesperson said the office of the U.S. Trade Representative told the company it would not veto the decision. Any ITC ban is still on hold while Apple and AliveCor continue to clash over the patents.
The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. The U.S. Patent and Trademark Office found the patents invalid earlier that month, in a ruling that AliveCor has said it will appeal.
Apple said Tuesday it will appeal the ITC's import ban decision, which it said would have a negative effect on public health.
Representatives for the White House did not immediately respond to a request for comment Tuesday. The trade representative's office and the ITC had no comment.
The White House had 60 days to decide whether to veto the ITC's Dec. 22 ruling based on policy concerns.
Presidential vetoes of ITC import bans have historically been rare. However, the Obama administration reversed a ban on some iPhones and iPads in 2013 in a patent fight between Apple and Samsung Electronics Co Ltd, citing its effects on U.S. consumers and economic competition.
AliveCor accused Apple of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an electrocardiogram to identify heart problems like atrial fibrillation.
Mountain View, California-based AliveCor told the ITC that Apple copied its technology and drove it out of the market by making Apple's operating system incompatible with the KardiaBand.
Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology. Apple introduced its most recent Series 8 last year.
AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate apps, and filed a related patent infringement lawsuit against Apple in Texas federal court.
Apple has countersued AliveCor in San Francisco federal court for allegedly infringing its patents.
The ITC case is Certain Wearable Electronic Devices With ECG Functionality and Components Thereof, U.S. International Trade Commission, No. 337-TA-1266.
(Reporting by Blake Brittain in Washington; Editing by David Bario)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. Apple said Tuesday it will appeal the ITC's import ban decision, which it said would have a negative effect on public health. However, the Obama administration reversed a ban on some iPhones and iPads in 2013 in a patent fight between Apple and Samsung Electronics Co Ltd, citing its effects on U.S. consumers and economic competition.
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By Blake Brittain (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. Apple said Tuesday it will appeal the ITC's import ban decision, which it said would have a negative effect on public health. AliveCor accused Apple of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an electrocardiogram to identify heart problems like atrial fibrillation.
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By Blake Brittain (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate apps, and filed a related patent infringement lawsuit against Apple in Texas federal court.
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By Blake Brittain (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology.
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17031.0
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2023-02-21 00:00:00 UTC
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Biden admin won't veto ITC's Apple Watch import ban ruling
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AAPL
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https://www.nasdaq.com/articles/biden-admin-wont-veto-itcs-apple-watch-import-ban-ruling
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nan
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nan
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By Blake Brittain
Feb 21 (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday.
An AliveCor spokesperson said the office of the U.S. Trade Representative told the company it would not veto the decision. Any ITC ban is still on hold while Apple and AliveCor continue to clash over the patents.
Representatives for Apple and the White House did not immediately respond to requests for comment Tuesday. The trade representative's office and the ITC had no comment.
The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. The U.S. Patent and Trademark Office found the patents invalid earlier that month, in a ruling that AliveCor has said it will appeal.
The White House had 60 days to decide whether to veto the ITC's Dec. 22 ruling based on policy concerns.
Presidential vetoes of ITC import bans have historically been rare. However, the Obama administration reversed a ban on some iPhones and iPads in 2013 in a patent fight between Apple and Samsung Electronics Co Ltd, citing its effects on U.S. consumers and economic competition.
AliveCor accused Apple of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an electrocardiogram to identify heart problems like atrial fibrillation.
Mountain View, California-based AliveCor told the ITC that Apple copied its technology and drove it out of the market by making Apple's operating system incompatible with the KardiaBand.
Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology. Apple introduced its most recent Series 8 last year.
AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate apps, and filed a related patent infringement lawsuit against Apple in Texas federal court.
Apple has countersued AliveCor in San Francisco federal court for allegedly infringing its patents.
The ITC case is Certain Wearable Electronic Devices With ECG Functionality and Components Thereof, U.S. International Trade Commission, No. 337-TA-1266.
(Reporting by Blake Brittain in Washington; Editing by David Bario)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain Feb 21 (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. However, the Obama administration reversed a ban on some iPhones and iPads in 2013 in a patent fight between Apple and Samsung Electronics Co Ltd, citing its effects on U.S. consumers and economic competition. The ITC case is Certain Wearable Electronic Devices With ECG Functionality and Components Thereof, U.S. International Trade Commission, No.
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By Blake Brittain Feb 21 (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. AliveCor accused Apple of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an electrocardiogram to identify heart problems like atrial fibrillation.
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By Blake Brittain Feb 21 (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. The ITC ruled in December that imports of Apple's smartwatches should be banned for infringing AliveCor's patents, but it placed the ban on pause while related proceedings over the patents run their course. AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate apps, and filed a related patent infringement lawsuit against Apple in Texas federal court.
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By Blake Brittain Feb 21 (Reuters) - The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc's AAPL.O Apple Watches for infringing AliveCor Inc patents related to heart monitoring, AliveCor said Tuesday. The trade representative's office and the ITC had no comment. Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology.
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17032.0
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2023-02-21 00:00:00 UTC
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3 ETFs to Buy for a Tech Stock Rebound
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AAPL
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https://www.nasdaq.com/articles/3-etfs-to-buy-for-a-tech-stock-rebound
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nan
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After years of leading the market forward, tech stocks their shine in 2022. Rampant inflation and rising interest rates dampened investor interest in tech stocks, especially unprofitable ones or ones trading at demanding valuations.
While some correction was probably warranted after years of outperformance, the sell-off perhaps went too far. This is evident in the way that tech stocks are roaring back so far in 2023. Several factors are behind tech’s rebound -- animal spirits are returning to the tech sector thanks to growing investor interest in advances in artificial intelligence (AI).
Furthermore, high-profile tech companies like Meta Platforms (NASDAQ:META), Salesforce (NYSE:CRM), and Sea Limited (NYSE:SE) seem to be getting the market’s message and placing a new emphasis on profitability and managing expenses. Investors are greeting this shift in focus with enthusiasm.
Lastly, some investors believe that the Fed’s interest rate hikes will slow in pace this year. With this changing backdrop in mind, here are three top tech ETFs investors can add to their portfolios to gain exposure to tech’s rebound.
Invesco QQQ Trust (NASDAQ:QQQ)
The Nasdaq (NDX) has always been associated with technology and innovation, and the Invesco QQQ Trust is tailor-made to track the Nasdaq 100. This is a massive ETF with almost $162 billion in assets under management (AUM). As one would expect from a tech-heavy fund, QQQ fell 32.5% and has rallied to a 13.9% gain in 2023.
Because the Invesco QQQ Trust replicates the 100 largest stocks in the Nasdaq, QQQ’s top 10 holdings are essentially a who's who of large-cap tech companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms. Also included are semiconductor stocks like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), along with the world’s largest automaker by market value, Tesla (NASDAQ:TSLA). Consumer staples stalwart Pepsi (NASDAQ:PEP) is a non-tech stock in the top 10. QQQ holds 102 stocks, and these top 10 holdings account for 53% of the fund.
QQQ features an investor-friendly expense ratio of just 0.2%. Additionally, it pays a dividend and currently yields 0.7%.
The Invesco QQQ Trust also screens positively based on a number of other indicators. It has an ETF Smart Score of 8, indicating an Outperform rating, and the consensus is that QQQ is a Moderate Buy. The average QQQ stock price target of $348.90 indicates upside potential of 15.9% versus current levels.
Technology Select Sector SPDR Fund (NYSEARCA:XLK)
While QQQ focuses on the tech-heavy Nasdaq 100, the Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX). XLK's top holdings overlap with those of QQQ, as Apple, Microsoft, Nvidia, and Broadcom are represented in the top 10 of both funds.
However, one difference between the two ETFs is that XLK's top holdings include payment networks like Visa (NYSE:V) and Mastercard (NYSE:MA). This is because these stocks are listed on the NYSE rather than the Nasdaq. While they are perhaps not immediately associated with tech, these mega caps can be considered fintech companies.
The Technology Select Sector SPDR has 78 positions, and its top 10 holdings make up 67.9% of the fund.
XLK fell 27.7% in 2022, but it has stormed out to a 13.4% gain so far in 2023.
The Technology Select Sector SPDR Fund has an ETF Smart Score of 8 and a Moderate Buy consensus rating from analysts. Blogger sentiment and news sentiment are both bullish, while crowd wisdom is negative. Additionally, hedge fund involvement is decreasing.
XLK isn’t quite as large as QQQ, but this is still a major ETF, with $42 billion in AUM. While QQQ features an investor-friendly expense ratio of 0.2%, XLK features an even more appealing expense ratio of just 0.1%. Like QQQ, XLK also pays a dividend and currently yields a slightly higher 0.9%.
ARK Innovation ETF (NYSEARCA:ARKK)
While QQQ and XLK have a lot in common, investors can think of the ARK Innovation ETF as a supercharged version of these ETFs. ARKK amplifies both the good and bad aspects of the tech sector. When the market is negative on tech stocks and in risk-off mode, ARK Innovation struggles. But when investor enthusiasm for tech is high, and the market returns to a more risk-on sentiment, ARK Innovation outperforms.
This is evident in its recent performance. ARKK fell much further than XLK or QQQ last year, with a 67% decline. However, while XLK and QQQ have rallied this year, ARKK has outperformed them with a turbo-charged rally of 37.4% year-to-date.
This is because ARKK places more of a focus on “disruptive innovation.” While these companies boast potentially impressive technologies, some of them are not yet profitable or trade at higher multiples, so these are higher-risk, higher-reward holdings.
It means that you won’t see steady stocks like Pepsi, Visa, or Mastercard in ARKK’s top holdings. Instead, you’ll find stocks like Coinbase (NASDAQ:COIN), Unity Software (NYSE:U), Spotify (NYSE:SPOT), Shopify (NYSE:SHOP), and Block (NYSE:SQ). One thing that ARKK has in common with QQQ is a top 10 position in Tesla. In ARKK’s case, Tesla is the fund’s top holding, and it accounts for over 10% of the fund.
Additionally, ARKK is more concentrated than QQQ or XLK, with just 30 holdings. Its top 10 holdings make up 62.4% of the fund. While QQQ and Nasdaq track indices, ARKK's holdings are at the discretion of ARK’s portfolio management team. The ARK Innovation ETF has a higher expense ratio than the other two ETFs, coming in at 0.75%. ARKK does not pay a dividend like the ETFs discussed above, and it's a smaller fund than QQQ and XLK, with $7.9 billion in AUM.
ARKK has an ETF Smart Score of 5, indicating a Neutral rating. Blogger sentiment is also neutral, while crowd wisdom is very negative. Interestingly, analysts collectively view ARKK as a Hold, but the average ARKK stock price target of $48.54 indicates upside potential of 18.8%.
Investor Takeaway
All three of these tech-centric ETFs are off to strong starts in 2023 as investor enthusiasm for tech returns. These ETFs are likely to continue performing well if interest rates remain under control this year, big-tech companies continue to focus on profitability, and AI continues to capture the imagination of investors.
If the market turns south, all three of these ETFs could suffer. Nevertheless, XLK and QQQ likely offer more ballast than ARKK in the event of another downturn in tech sentiment thanks to their focus on large-cap tech, their broader range holdings, and their dividends. However, if the market remains hot, ARKK will likely outperform them.
One strategy investors interested in tech could consider employing is holding either QQQ or XLK and then a smaller position in ARKK to capture some of the upside while maintaining lower risk.
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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Because the Invesco QQQ Trust replicates the 100 largest stocks in the Nasdaq, QQQ’s top 10 holdings are essentially a who's who of large-cap tech companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms. The Technology Select Sector SPDR Fund has an ETF Smart Score of 8 and a Moderate Buy consensus rating from analysts. This is because ARKK places more of a focus on “disruptive innovation.” While these companies boast potentially impressive technologies, some of them are not yet profitable or trade at higher multiples, so these are higher-risk, higher-reward holdings.
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Because the Invesco QQQ Trust replicates the 100 largest stocks in the Nasdaq, QQQ’s top 10 holdings are essentially a who's who of large-cap tech companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms. Technology Select Sector SPDR Fund (NYSEARCA:XLK) While QQQ focuses on the tech-heavy Nasdaq 100, the Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX). The Technology Select Sector SPDR Fund has an ETF Smart Score of 8 and a Moderate Buy consensus rating from analysts.
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Because the Invesco QQQ Trust replicates the 100 largest stocks in the Nasdaq, QQQ’s top 10 holdings are essentially a who's who of large-cap tech companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms. Invesco QQQ Trust (NASDAQ:QQQ) The Nasdaq (NDX) has always been associated with technology and innovation, and the Invesco QQQ Trust is tailor-made to track the Nasdaq 100. Technology Select Sector SPDR Fund (NYSEARCA:XLK) While QQQ focuses on the tech-heavy Nasdaq 100, the Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX).
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Because the Invesco QQQ Trust replicates the 100 largest stocks in the Nasdaq, QQQ’s top 10 holdings are essentially a who's who of large-cap tech companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms. But when investor enthusiasm for tech is high, and the market returns to a more risk-on sentiment, ARK Innovation outperforms. ARKK does not pay a dividend like the ETFs discussed above, and it's a smaller fund than QQQ and XLK, with $7.9 billion in AUM.
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17033.0
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2023-02-21 00:00:00 UTC
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US STOCKS-Wall St tumbles as Walmart, Home Depot forecasts disappoint
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-tumbles-as-walmart-home-depot-forecasts-disappoint
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nan
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nan
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By Johann M Cherian
Feb 21 (Reuters) - Wall Street's main stock indexes fell more than 1% on Tuesday as gloomy forecasts from retailers Home Depot and Walmart added to worries that a sharp rise in interest rates and high inflation were taking a toll on the U.S. economy.
Home Depot IncHD.N fell 5.4% to a three-month low after the No. 1 domestic home improvement chain warned of weakening demand and issued a dour profit forecast for 2023.
Smaller rival Lowe's Cos Inc LOW.N fell 4.8% ahead of its results next week.
Walmart WMT.N, the world's largest retailer, shed 0.2% after it forecast full-year earnings below estimates and painted a grim picture of hotter-than-expected food inflation squeezing profit margins.
"Walmart is a bellwether for how the consumer is doing and the fact is that they envision that the consumer may be getting to that point of having to pull back," said Art Hogan, chief market strategist at B Riley Wealth.
Analysts are expecting earnings of S&P 500 companies to grow by 1.6% in 2023, compared to a 4.4% growth estimated at the start of the year, as per Refinitiv data.
Ten of the major 11 S&P 500 sectors fell, with the consumer discretionary index .SPLRCD slumping 2.1%.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJI was down 424.64 points, or 1.26%, at 33,402.05, the S&P 500 .SPX was down 47.46 points, or 1.16%, at 4,031.63, and the Nasdaq Composite .IXIC was down 165.27 points, or 1.40%, at 11,622.00.
U.S. stocks have added to their gains so far this year after its worst annual showing in more than a decade in 2022, as investors hoped the central bank's rate-hike cycle was nearing its end.
However, recent economic data has pointed to a resilient economy with inflation far from the Fed's 2% target, raising bets for two or three more 25 basis point increases.
The central bank has got more wiggle room to raise rates as U.S. business activity unexpectedly rebounded in February, according to a survey, underpinned by a robust services sector.
Money market participants see the benchmark level peaking to a 5.3% in July, and staying near those levels throughout the year.
Adding to the glum mood, yield on the U.S. benchmark 10-year Treasury note US10YT=TWEB edged higher, pressuring rate-sensitive growth stocks.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1.6% and 1.6%. US/
In a bright spot, Meta Platforms Inc META.O added 0.7% after the Facebook parent said it is testing a monthly subscription service called Meta Verified, which will let users verify their accounts using a government ID and get a blue badge.
Declining issues outnumbered advancers for a 5.23-to-1 ratio on the NYSE and by a 3.50-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and one new lows, while the Nasdaq recorded 26 new highs and 50 new lows.
(Reporting by Johann M Cherian and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1.6% and 1.6%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes fell more than 1% on Tuesday as gloomy forecasts from retailers Home Depot and Walmart added to worries that a sharp rise in interest rates and high inflation were taking a toll on the U.S. economy. Walmart WMT.N, the world's largest retailer, shed 0.2% after it forecast full-year earnings below estimates and painted a grim picture of hotter-than-expected food inflation squeezing profit margins.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1.6% and 1.6%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes fell more than 1% on Tuesday as gloomy forecasts from retailers Home Depot and Walmart added to worries that a sharp rise in interest rates and high inflation were taking a toll on the U.S. economy. Home Depot IncHD.N fell 5.4% to a three-month low after the No.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1.6% and 1.6%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes fell more than 1% on Tuesday as gloomy forecasts from retailers Home Depot and Walmart added to worries that a sharp rise in interest rates and high inflation were taking a toll on the U.S. economy. ET, the Dow Jones Industrial Average .DJI was down 424.64 points, or 1.26%, at 33,402.05, the S&P 500 .SPX was down 47.46 points, or 1.16%, at 4,031.63, and the Nasdaq Composite .IXIC was down 165.27 points, or 1.40%, at 11,622.00.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1.6% and 1.6%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes fell more than 1% on Tuesday as gloomy forecasts from retailers Home Depot and Walmart added to worries that a sharp rise in interest rates and high inflation were taking a toll on the U.S. economy. "Walmart is a bellwether for how the consumer is doing and the fact is that they envision that the consumer may be getting to that point of having to pull back," said Art Hogan, chief market strategist at B Riley Wealth.
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17034.0
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2023-02-21 00:00:00 UTC
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Anti-ESG crusader Ramaswamy launches U.S. presidential bid
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https://www.nasdaq.com/articles/anti-esg-crusader-ramaswamy-launches-u.s.-presidential-bid
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By Isla Binnie
NEW YORK, Feb 21 (Reuters) - Vivek Ramaswamy, the activist investor who launched a firm last year to pressure companies to abandon environmental, social and corporate governance (ESG) initiatives, said on Tuesday he would run for President of the United States.
Ramaswamy, 37, will step down as executive chairman of Strive Asset Management, which raised more than $650 million from investors in less than six months, to pursue his bid for the presidency in 2024, according to the firm's website.
"We've celebrated our 'diversity' so much that we forgot all the ways we're really the same as Americans, bound by ideals that united a divided, headstrong group of people 250 years ago," Ramaswamy tweeted on Tuesday following his announcement.
A former biotechnology investor and executive, Ramaswamy will pursue the Republican nomination in what is shaping up to be a crowded field.
Florida Governor Ron DeSantis, former Vice President Mike Pence and South Carolina Senator Tim Scott are among those considering mounting a challenge to former President Donald Trump, who has already announced his candidacy and is, according to most opinion polls, the frontrunner for the Republican nomination. Former United Nations ambassador Nikki Haley has also announced her candidacy.
A political outsider, Ramaswamy rose to prominence in 2021 as the author of "Woke Inc: Inside Corporate America's Social Justice Scam". His new firm bought small stakes in some of the world's biggest companies, including Chevron Corp CVX.N, BlackRock Inc BLK.N, Walt Disney Co DIS.N and Apple Inc AAPL.O, and called on them to drop ESG policies such as advancing diversity or cutting carbon emissions in order to focus on their profits.
It is unclear how much impact Strive has had on the companies it pressured. But Ramaswamy's contrarian message made him popular in conservative political circles and a regular guest on cable TV shows.
Ramaswamy co-founded Strive with former Anheuser-Busch Inbev SA executive Anson Frericks, who will continue to run the firm.
(Reporting by Isla Binnie in New York; Editing by Simon Cameron-Moore)
((isla.binnie@thomsonreuters.com; Reuters Messaging: isla.binnie.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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His new firm bought small stakes in some of the world's biggest companies, including Chevron Corp CVX.N, BlackRock Inc BLK.N, Walt Disney Co DIS.N and Apple Inc AAPL.O, and called on them to drop ESG policies such as advancing diversity or cutting carbon emissions in order to focus on their profits. By Isla Binnie NEW YORK, Feb 21 (Reuters) - Vivek Ramaswamy, the activist investor who launched a firm last year to pressure companies to abandon environmental, social and corporate governance (ESG) initiatives, said on Tuesday he would run for President of the United States. "We've celebrated our 'diversity' so much that we forgot all the ways we're really the same as Americans, bound by ideals that united a divided, headstrong group of people 250 years ago," Ramaswamy tweeted on Tuesday following his announcement.
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His new firm bought small stakes in some of the world's biggest companies, including Chevron Corp CVX.N, BlackRock Inc BLK.N, Walt Disney Co DIS.N and Apple Inc AAPL.O, and called on them to drop ESG policies such as advancing diversity or cutting carbon emissions in order to focus on their profits. By Isla Binnie NEW YORK, Feb 21 (Reuters) - Vivek Ramaswamy, the activist investor who launched a firm last year to pressure companies to abandon environmental, social and corporate governance (ESG) initiatives, said on Tuesday he would run for President of the United States. A former biotechnology investor and executive, Ramaswamy will pursue the Republican nomination in what is shaping up to be a crowded field.
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His new firm bought small stakes in some of the world's biggest companies, including Chevron Corp CVX.N, BlackRock Inc BLK.N, Walt Disney Co DIS.N and Apple Inc AAPL.O, and called on them to drop ESG policies such as advancing diversity or cutting carbon emissions in order to focus on their profits. By Isla Binnie NEW YORK, Feb 21 (Reuters) - Vivek Ramaswamy, the activist investor who launched a firm last year to pressure companies to abandon environmental, social and corporate governance (ESG) initiatives, said on Tuesday he would run for President of the United States. Ramaswamy, 37, will step down as executive chairman of Strive Asset Management, which raised more than $650 million from investors in less than six months, to pursue his bid for the presidency in 2024, according to the firm's website.
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His new firm bought small stakes in some of the world's biggest companies, including Chevron Corp CVX.N, BlackRock Inc BLK.N, Walt Disney Co DIS.N and Apple Inc AAPL.O, and called on them to drop ESG policies such as advancing diversity or cutting carbon emissions in order to focus on their profits. By Isla Binnie NEW YORK, Feb 21 (Reuters) - Vivek Ramaswamy, the activist investor who launched a firm last year to pressure companies to abandon environmental, social and corporate governance (ESG) initiatives, said on Tuesday he would run for President of the United States. Ramaswamy, 37, will step down as executive chairman of Strive Asset Management, which raised more than $650 million from investors in less than six months, to pursue his bid for the presidency in 2024, according to the firm's website.
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17035.0
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2023-02-21 00:00:00 UTC
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Which ‘MATANA’ Stocks Have the Most Upside?
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https://www.nasdaq.com/articles/which-matana-stocks-have-the-most-upside
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Move over ‘FAANG.’ There’s a new stock investing acronym in town.
Not to be confused with the hit song from ‘The Lion King,’ MATANA is the latest term to describe the market’s technology leaders. The catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). It represents a powerful group of companies driving the world’s biggest innovations — from electronic devices and software to artificial intelligence and e-commerce.
The MATANA stocks comprise nearly 50% of the widely followed Nasdaq-100 index. Since they influence the benchmark’s day-to-day returns so much, growth investors should be well-versed in how these companies perform.
The MATANA group has largely replaced FAANG as the tech sector bellwether. Facebook (now Meta Platforms), Amazon, Apple, Netflix and Google (now Alphabet) once ruled the roost in high tech. But with Meta Platforms facing a digital ad spending slowdown and Netflix experiencing subscriber losses, social media and streaming video have lost some of their luster.
This has ushered in a new collection of ‘must-have’ tech innovators that dominate their respective markets. Yet with these names commanding $100 to $200 share prices, owing all six may be impractical (until a MATANA exchange-traded fund (ETF) invariably comes along).
So how is one to choose among the cream of the crop?
Hakuna Matata, no worries.
According to Wall Street research firms, these three MATANA stocks have the best return potential over the next 12-plus months.
What is the Best MATANA Stock to Own?
With an average analyst price target of $137, Amazon.com (NASDAQ: AMZN) has the most room to run. At current levels, this equates to more than 40% upside. Some sell-side firms see the e-commerce leader going much higher.
Earlier this month, Tigress Financial gave Amazon a $192 target, which suggests the stock can double from here. Given the challenging macro backdrop, others are more cautious. Rosenblatt Securities recently offered a $106 target which is less than 10% upside.
Whether Amazon soars or merely inches higher from here will depend on two questions: 1) will inflation and rates cool enough to spur a significant revival in online shopping activity, and 2) will an improved economic outlook push more enterprises to spend on Amazon Web Services (AWS) cloud infrastructure?
As it continues to regroup from a post-pandemic hangover, Amazon gave a cautious outlook for the first quarter of 2023. The extent to which retail spending and digital transformation are on hold won’t be known until Amazon reports Q1 results in late-April. The Street thinks better news and big gains lie ahead.
Is Wall Street Bullish on Alphabet Stock?
Alphabet Inc. (NASDAQ: GOOGL) has a projected gain that’s right behind that of Amazon. The consensus price target is just shy of $130, which means 37% separates Alphabet from its current bogey. It’s upside that seems reasonable considering the online search king is down roughly the same percentage from its February 2022 peak.
Wall Street's unanimously bullish position makes Alphabet a more compelling MATANA pick. Over the past three months, a perfect 32 of 32 firms have called Alphabet stock a ‘buy.’ It's hard to take a contrarian stance when more than two dozen analysts who eat, sleep and breathe the company see Alphabet stock heading higher.
The reset button has effectively been hit for Alphabet after reporting just 2% revenue growth for the fourth quarter. Yes, advertisers have pulled back spending in a weakened economy, but it doesn’t change Google’s command of the search market. As macro conditions improve, ad dollars will return because they have to — 76% of today’s searches happen on Google.
This dominance has the Street expecting a return to double-digit profit growth within the next few years. It’s highly unlikely that this herd of bulls has the long-term forecast wrong.
Does Microsoft Stock Have More Upside?
There’s a big jump down to the MATANA stock with the next best upside, and that’s Microsoft Corporation (NASDAQ:MSFT). The Street’s $292 target implies 13% upside, slightly ahead of Apple’s projected gain. Microsoft’s run from here may be limited because the stock has already bounced 20% off its November 2022 low.
Microsoft's rally has come at the hands of two major catalysts. First, better-than-expected December quarter earnings suggested an inflection point is near regarding sluggish Windows, Office and Azure spending. For the current quarter, analysts anticipate 11% bottom-line growth, which would be the highest in five quarters.
Second, the company’s aggressive push into conversational AI has demonstrated leadership in this emerging technology. Microsoft recently announced that its Edge and Bing browsers would come with AI chat functionality similar to ChatGPT in which it has invested $10 billion.
Based on the sharp year-to-date advance (and technical indicators such as MACD), Microsoft could probably have a better entry point. If the stock revisits the $230 level, this would be a more favorable entry — especially considering $220 has proven to be reliable support.
The views and 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 catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). It represents a powerful group of companies driving the world’s biggest innovations — from electronic devices and software to artificial intelligence and e-commerce. But with Meta Platforms facing a digital ad spending slowdown and Netflix experiencing subscriber losses, social media and streaming video have lost some of their luster.
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The catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). Facebook (now Meta Platforms), Amazon, Apple, Netflix and Google (now Alphabet) once ruled the roost in high tech. With an average analyst price target of $137, Amazon.com (NASDAQ: AMZN) has the most room to run.
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The catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). Over the past three months, a perfect 32 of 32 firms have called Alphabet stock a ‘buy.’ It's hard to take a contrarian stance when more than two dozen analysts who eat, sleep and breathe the company see Alphabet stock heading higher. There’s a big jump down to the MATANA stock with the next best upside, and that’s Microsoft Corporation (NASDAQ:MSFT).
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The catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN). What is the Best MATANA Stock to Own? Alphabet Inc. (NASDAQ: GOOGL) has a projected gain that’s right behind that of Amazon.
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17036.0
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2023-02-21 00:00:00 UTC
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US STOCKS-Wall St set for lower open as Walmart, Home Depot forecasts disappoint
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-as-walmart-home-depot-forecasts-disappoint
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By Johann M Cherian
Feb 21 (Reuters) - Wall Street's main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer.
Walmart, the world's largest retailer WMT.N, shed 3.7% in premarket trading as it forecast full-year earnings below estimates and said consumers were likely to continue shopping for lower-priced items that could pressure its margins.
"Walmart is a bellweather for how the consumer is doing and the fact is that they envision that the consumer may be getting to that point of having to pull back," said Art Hogan, chief market strategist at B Riley Wealth.
Home Depot HD.N dropped 4.0% as the home improvement chain forecast annual profit below estimates due to higher supply-chain costs and weak demand.
Smaller rival Lowe's Cos Inc LOW.N, which is expected to post results next week, was down 2.9%.
The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank's rate hiking cycle was nearing its end.
However, recent economic data has pointed to a resilient economy with inflation far from the Fed's 2% target, raising bets for two or three more 25 basis point hikes amid dwindling hopes of rate cuts at year-end.
Money market participants see the benchmark level peaking to a 5.3% in July, and staying near those levels throughout the year.
At 7:54 a.m. ET, Dow e-minis 1YMcv1 were down 285 points, or 0.84%, S&P 500 e-minis EScv1 were down 29.5 points, or 0.72%, and Nasdaq 100 e-minis NQcv1 were down 117.25 points, or 0.95%.
Yield on the U.S. benchmark 10-year Treasury note US10YT=TWEB edged higher, in turn pressuring rate-sensitive growth stocks.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.5%. US/
Traders find government bonds as a safe alternative to investments in riskier assets like megacap firms.
In a bright spot, Meta Platforms Inc META.O added 1.4% after the Facebook parent said it is testing a monthly subscription service called Meta Verified, which will let users verify their accounts using a government ID and get a blue badge.
Traders are awaiting business activity data for February at 9:45 a.m. ET. The S&P Global Flash U.S. Composite Output Index is expected to rise to 47.5 as per a Reuters poll from a 46.8 in the previous month.
(Reporting by Johann M Cherian and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.5%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer. Walmart, the world's largest retailer WMT.N, shed 3.7% in premarket trading as it forecast full-year earnings below estimates and said consumers were likely to continue shopping for lower-priced items that could pressure its margins.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.5%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer. Home Depot HD.N dropped 4.0% as the home improvement chain forecast annual profit below estimates due to higher supply-chain costs and weak demand.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.5%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer. However, recent economic data has pointed to a resilient economy with inflation far from the Fed's 2% target, raising bets for two or three more 25 basis point hikes amid dwindling hopes of rate cuts at year-end.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.5%. By Johann M Cherian Feb 21 (Reuters) - Wall Street's main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer. Walmart, the world's largest retailer WMT.N, shed 3.7% in premarket trading as it forecast full-year earnings below estimates and said consumers were likely to continue shopping for lower-priced items that could pressure its margins.
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17037.0
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2023-02-21 00:00:00 UTC
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What Tech Crash? 5 Tech ETFs Up Double-Digit Past Month
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https://www.nasdaq.com/articles/what-tech-crash-5-tech-etfs-up-double-digit-past-month
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The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns. The U.S. benchmark treasury yield started to rise all over again as the release of upbeat economic data points and stubborn inflation data triggered the possibilities of faster and fatter Fed rate hikes.
Rising rate worries dampen the appeal of the stocks that rely on easy borrowing for superior growth. Hence, shares of high-growth technology companies remain in a tight spot in such a scenario. Moreover, earnings results were not satisfactory. Meanwhile, the pandemic-led boom of the tech sector resulting from the stay-at-home trend is fading as the health crisis is ebbing. The tech sector is now in the process of right-sizing.
Earnings from 83.7% of the tech sector’s market capitalization that have reported results so far are down 18.9% from the same period last year on 3.7% lower revenues, with 73.2% beating EPS estimates and 71.4% beating revenue estimates. The earnings beat ratio is the lowest in the preceding 20 quarters, while the revenue surprise is also toward the lower end of the 5-year range, per Earnings Trends issued on Feb 15, 2023.
Apple Inc. AAPL shares marked the first year-over-year sales decline since 2019. Intel (INTC) also came up with weaker results and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers. Although Amazon (AMZN) beat earnings and revenue estimates, it posted the least profitable holiday quarter since 2014 (read: Time to Take a Bite Out of Apple ETFs Following Warren Buffett?)
Against this backdrop, below we highlight a few tech ETFs tht were up double digits past month (as of Feb 17, 2023) against an uptick of 5.81% in the tech-heavy Nasdaq Composite index. Notably, next-gen Internet, artificial intelligence, cyber security, electric vehicles and blockchain are areas that have remained strong so far this year due to their solid long-term potential.
ETFs in Focus
ARK Next Generation Internet ETF ARKW – Up 16.9% Past Month
This ETF is active and does not track a benchmark. The ARK Next Generation Internet ETF is actively managed and seeks long-term growth of capital by investing under normal circumstances primarily in domestic and U.S. exchange traded foreign equity securities of companies that are relevant to the theme of next-generation Internet. The fund charges 83 bps in fees.
WisdomTree Cybersecurity Fund WCBR – Up 15.6%
The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees.
ProShares Big Data Refiners ETF DAT – Up 13.5%
The underlying FactSet Big Data Refiners Index tracks the performance of companies that provide analytics, software, hardware and other computing infrastructure for managing and extracting information from large structured and unstructured datasets. The fund charges 58 bps in fees.
ARK Innovation ETF ARKK – Up 13.0%
This ETF is active and does not track a benchmark. ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works. The fund offers exposure to “genomic revolution,” automation, robotics, energy storage, artificial intelligence, next-generation Internet and fintech innovation. The fund charges 75 bps in fees.
TrueShares Technology, AI And Deep Learning ETF LRNZ – Up 11.9%
The TrueShares Technology, AI and Deep Learning ETF is an actively-managed exchange-traded fund that seeks total return by investing in companies that have a competitive advantage with respect to the development and utilization of artificial intelligence, machine learning, or other deep learning technologies. The fund charges 68 bps in fees.
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Apple Inc. (AAPL) : Free Stock Analysis Report
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
ProShares Big Data Refiners ETF (DAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL shares marked the first year-over-year sales decline since 2019. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports ProShares Big Data Refiners ETF (DAT): ETF Research Reports To read this article on Zacks.com click here. Although Amazon (AMZN) beat earnings and revenue estimates, it posted the least profitable holiday quarter since 2014 (read: Time to Take a Bite Out of Apple ETFs Following Warren Buffett?)
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports ProShares Big Data Refiners ETF (DAT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL shares marked the first year-over-year sales decline since 2019. ProShares Big Data Refiners ETF DAT – Up 13.5% The underlying FactSet Big Data Refiners Index tracks the performance of companies that provide analytics, software, hardware and other computing infrastructure for managing and extracting information from large structured and unstructured datasets.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports ProShares Big Data Refiners ETF (DAT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL shares marked the first year-over-year sales decline since 2019. ETFs in Focus ARK Next Generation Internet ETF ARKW – Up 16.9% Past Month This ETF is active and does not track a benchmark.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports ProShares Big Data Refiners ETF (DAT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL shares marked the first year-over-year sales decline since 2019. Earnings from 83.7% of the tech sector’s market capitalization that have reported results so far are down 18.9% from the same period last year on 3.7% lower revenues, with 73.2% beating EPS estimates and 71.4% beating revenue estimates.
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2023-02-21 00:00:00 UTC
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US STOCKS-Futures fall as Home Depot outlook disappoints
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-home-depot-outlook-disappoints
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89%
Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood.
The No. 1 U.S. home improvement chainHD.N dropped 3.8% in premarket trading after its fourth-quarter comparable sales fell short of estimates on higher supply-chain costs and weak demand due to inflation.
Investors will be focusing on retail giant Walmart Inc's WMT.N results due later in the day.
At 6:34 a.m. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%.
The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank's rate hiking cycle was nearing its end.
However, recent economic data points to a resilient economy with inflation far from the Fed's 2% target, raising bets for two or three more 25 basis point hikes and lower chances of rate cuts at year-end.
Money market participants see the benchmark level peaking to a 5.3% in July, and staying near those levels throughout the year.
Yield on the U.S. benchmark 10-year Treasury note US10YT=TWEB edged higher, in turn pressuring rate-sensitive growth stocks.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. US/
Traders find government bonds as a safe alternative to investments in riskier assets like megacap firms.
In a bright spot, Meta Platforms IncMETA.O added 2.0% after the Facebook parent said it is testing a monthly subscription service called Meta Verified, which will let users verify their accounts using a government ID and get a blue badge.
(Reporting by Johann M Cherian and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. 1 U.S. home improvement chainHD.N dropped 3.8% in premarket trading after its fourth-quarter comparable sales fell short of estimates on higher supply-chain costs and weak demand due to inflation. The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank's rate hiking cycle was nearing its end.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood.
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17039.0
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2023-02-21 00:00:00 UTC
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Microsoft's president to push Activision deal at EU hearing; Google, Nvidia also present
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https://www.nasdaq.com/articles/microsofts-president-to-push-activision-deal-at-eu-hearing-google-nvidia-also-present-0
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By Foo Yun Chee
BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith on Tuesday will seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition.
Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick, a European Commission document seen by Reuters showed.
The hearing will allow Xbox maker Microsoft to gauge the mood among senior EU and national competition officials and European Commission lawyers ahead of the submission of remedies to address antitrust concerns.
"I think we will make clear that our acquisition of Activision Blizzard will bring more games to more people on more devices and platforms than ever before," Smith told reporters on his way to the hearing.
Microsoft was willing to address concerns with "Call of Duty" licensing offers similar to the 10-year deal with Nintendo 7974.T and regulatory undertakings, Smith added, without providing any further details.
Microsoft announced the Activision acquisition in January last year to take on leaders Tencent 0700.HK and Sony 6758.T, but has run into regulatory headwinds in Europe, Britain and the United States.
Sony, which wants the deal to be blocked, sent its gaming chief Jim Ryan.
Alphabet's GOOGL.O Google and chip designer and computing firm Nvidia Corp NVDA.O, which has a gaming business, also took part in the hearing.
"The European Commission asked for our views in the course of their inquiries into this issue. We will continue to cooperate in any processes, when requested, to ensure all views are considered," a Google spokesperson said.
Nvidia declined to comment. The European Games Developer Federation, which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants.
Video game distributor Valve, video game publisher Electronic Arts EA.O and the German competition watchdog and its peers in Belgium, the Czech Republic, Finland, France, Italy, Portugal, Spain and Sweden will also be taking part in the event.
(Reporting by Foo Yun Chee; Editing by Chris Reese and Shounak Dasgupta)
((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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The European Games Developer Federation, which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith on Tuesday will seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. The hearing will allow Xbox maker Microsoft to gauge the mood among senior EU and national competition officials and European Commission lawyers ahead of the submission of remedies to address antitrust concerns.
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The European Games Developer Federation, which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith on Tuesday will seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick, a European Commission document seen by Reuters showed.
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The European Games Developer Federation, which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith on Tuesday will seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick, a European Commission document seen by Reuters showed.
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The European Games Developer Federation, which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith on Tuesday will seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick, a European Commission document seen by Reuters showed.
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17040.0
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2023-02-21 00:00:00 UTC
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Democratic U.S. Rep. Cicilline to resign, head Rhode Island foundation
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https://www.nasdaq.com/articles/democratic-u.s.-rep.-cicilline-to-resign-head-rhode-island-foundation
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Adds details on Big Tech, antitrust work
WASHINGTON, Feb 21 (Reuters) - Democratic U.S. Representative David Cicilline, a leading voice for gay rights and a critic of Big Tech's market power who has represented Rhode Island in Congress for over a decade, said Tuesday that he will resign from office effective June 1.
In a surprise announcement, Cicilline, a former Providence mayor, said he will become president and CEO of the Rhode Island Foundation, a major funder of nonprofit organizations in the state.
"The chance to lead the Rhode Island Foundation was unexpected, but it is an extraordinary opportunity to have an even more direct and meaningful impact on the lives of residents of our state," Cicilline said in a statement.
Cicilline will remain in office until he begins work at the foundation on June 1, his office said.
Republicans have a slim majority in the House, with 222 seats. There are 212 Democrats, including Cicilline, and one vacancy that is expected to add another Democrat following voting in a special election on Tuesday.
A special election to fill Cicilline's seat will be held sometime following his departure from Congress. It was not immediately known when that would be.
Democrats hold Rhode Island's two U.S. Senate seats and two House seats in this "blue" state.
In November, Cicilline briefly ran for the position of assistant House Democratic leader, in a bid to raise the profile of gay issues in Congress.
He dropped out after receiving assurances from party leaders that such issues would be represented, according to a House Democratic aide. He had run against Representative James Clyburn, who has long held top party leadership jobs in the House.
First elected to the House in 2010, Cicilline has established a solidly liberal voting record, defending low-income constituents from budget cuts and accusing Facebook of failing to discourage hate speech and Russian propaganda.
Cicilline also led the House Judiciary Committee's antitrust panel, with the committee releasing a report in late 2020 that sharply criticized Facebook, now Meta META.O, Alphabet's Google GOOGL.O, Amazon.com AMZN.O and Apple AAPL.O for abusing the power of their platforms to maintain and expand their dominance.
While little to none of the proposed antitrust legislation aimed at tech or pharmaceutical giants became law, Cicilline was one of several lawmakers who successfully pushed for more aggressive enforcement of existing law.
One of the staffers who wrote the big tech report, Lina Khan, is now head of the U.S. Federal Trade Commission.
Cicilline was re-elected last November with 64% of the vote.
U.S. House Judiciary subpoenas Big Tech CEOs over free speech
(Reporting by Rami Ayyub, Richard Cowan and Diane Bartz; Editing by Doina Chiacu and Nick Zieminski)
((Rami.Ayyub@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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Cicilline also led the House Judiciary Committee's antitrust panel, with the committee releasing a report in late 2020 that sharply criticized Facebook, now Meta META.O, Alphabet's Google GOOGL.O, Amazon.com AMZN.O and Apple AAPL.O for abusing the power of their platforms to maintain and expand their dominance. In a surprise announcement, Cicilline, a former Providence mayor, said he will become president and CEO of the Rhode Island Foundation, a major funder of nonprofit organizations in the state. "The chance to lead the Rhode Island Foundation was unexpected, but it is an extraordinary opportunity to have an even more direct and meaningful impact on the lives of residents of our state," Cicilline said in a statement.
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Cicilline also led the House Judiciary Committee's antitrust panel, with the committee releasing a report in late 2020 that sharply criticized Facebook, now Meta META.O, Alphabet's Google GOOGL.O, Amazon.com AMZN.O and Apple AAPL.O for abusing the power of their platforms to maintain and expand their dominance. Adds details on Big Tech, antitrust work WASHINGTON, Feb 21 (Reuters) - Democratic U.S. Representative David Cicilline, a leading voice for gay rights and a critic of Big Tech's market power who has represented Rhode Island in Congress for over a decade, said Tuesday that he will resign from office effective June 1. There are 212 Democrats, including Cicilline, and one vacancy that is expected to add another Democrat following voting in a special election on Tuesday.
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Cicilline also led the House Judiciary Committee's antitrust panel, with the committee releasing a report in late 2020 that sharply criticized Facebook, now Meta META.O, Alphabet's Google GOOGL.O, Amazon.com AMZN.O and Apple AAPL.O for abusing the power of their platforms to maintain and expand their dominance. Adds details on Big Tech, antitrust work WASHINGTON, Feb 21 (Reuters) - Democratic U.S. Representative David Cicilline, a leading voice for gay rights and a critic of Big Tech's market power who has represented Rhode Island in Congress for over a decade, said Tuesday that he will resign from office effective June 1. In November, Cicilline briefly ran for the position of assistant House Democratic leader, in a bid to raise the profile of gay issues in Congress.
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Cicilline also led the House Judiciary Committee's antitrust panel, with the committee releasing a report in late 2020 that sharply criticized Facebook, now Meta META.O, Alphabet's Google GOOGL.O, Amazon.com AMZN.O and Apple AAPL.O for abusing the power of their platforms to maintain and expand their dominance. Adds details on Big Tech, antitrust work WASHINGTON, Feb 21 (Reuters) - Democratic U.S. Representative David Cicilline, a leading voice for gay rights and a critic of Big Tech's market power who has represented Rhode Island in Congress for over a decade, said Tuesday that he will resign from office effective June 1. A special election to fill Cicilline's seat will be held sometime following his departure from Congress.
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17041.0
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2023-02-21 00:00:00 UTC
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Microsoft's president to push Activision deal at EU hearing; Google, Nvidia also present
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https://www.nasdaq.com/articles/microsofts-president-to-push-activision-deal-at-eu-hearing-google-nvidia-also-present
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By Foo Yun Chee
BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith will on Tuesday seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition.
Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick according to a European Commission document seen by Reuters.
The hearing will allow Xbox maker Microsoft to gauge the mood among senior EU and national competition officials and Commission lawyers ahead of the submission of remedies to address antitrust concerns.
Microsoft announced the acquisition in January last year to take on leaders Tencent 0700.HK and Sony 6758.T, but has run into regulatory headwinds in Europe, Britain and the United States.
Sony, which wants the deal to be blocked, is sending its gaming chief Jim Ryan.
Alphabet's GOOGL.O Google and chip designer and computing firm Nvidia Corp NVDA.O, which has a gaming business, will also be taking part in the hearing, the EU document showed.
"The European Commission asked for our views in the course of their inquiries into this issue. We will continue to cooperate in any processes, when requested, to ensure all views are considered," a Google spokesperson said.
Nvidia declined to comment. The European Games Developer Federation (EGDF), which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants.
Video game distributor Valve, video game publisher Electronic Arts EA.O and the German competition watchdog and its peers in Belgium, the Czech Republic, Finland, France, Italy, Portugal, Spain and Sweden will also be taking part in the event.
(Reporting by Foo Yun Chee Editing by Chris Reese)
((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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The European Games Developer Federation (EGDF), which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith will on Tuesday seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. The hearing will allow Xbox maker Microsoft to gauge the mood among senior EU and national competition officials and Commission lawyers ahead of the submission of remedies to address antitrust concerns.
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The European Games Developer Federation (EGDF), which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith will on Tuesday seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick according to a European Commission document seen by Reuters.
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The European Games Developer Federation (EGDF), which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith will on Tuesday seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick according to a European Commission document seen by Reuters.
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The European Games Developer Federation (EGDF), which has said the deal will allow Microsoft to challenge Apple AAPL.O, Google and Tencent, is one of the participants. By Foo Yun Chee BRUSSELS, Feb 21 (Reuters) - Microsoft MSFT.O President Brad Smith will on Tuesday seek to convince EU antitrust regulators at a closed hearing that the U.S. software giant's $69 billion bid for "Call of Duty" maker Activision Blizzard ATVI.O will boost competition. Smith will lead a delegation of 18 senior executives, including Microsoft Gaming Chief Executive Officer Phil Spencer, while Activision will be represented by its CEO Robert Kotick according to a European Commission document seen by Reuters.
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17042.0
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2023-02-20 00:00:00 UTC
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Foxconn chairman to visit COVID-hit iPhone plant in China -source
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https://www.nasdaq.com/articles/foxconn-chairman-to-visit-covid-hit-iphone-plant-in-china-source
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By Sarah Wu
TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said.
This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said.
Foxconn 2317.TW, formally known as Hon Hai Precision Industry Co, declined to comment. The source declined to be identified as they were not authorised to speak to the media.
The Taiwanese company's iPhone plant was hit late last year by a COVID-19 outbreak that prompted thousands of worker departures and unrest, as well as production disruptions.
In January, Foxconn said output at its Zhengzhou plant had "basically returned to normal."
(Reporting by Sarah Wu; Editing by Stephen Coates)
((S.Wu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. The Taiwanese company's iPhone plant was hit late last year by a COVID-19 outbreak that prompted thousands of worker departures and unrest, as well as production disruptions.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. The source declined to be identified as they were not authorised to speak to the media.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. (Reporting by Sarah Wu; Editing by Stephen Coates) ((S.Wu@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This will be Liu's first visit to the world's largest Apple AAPL.O iPhone factory in his role as chairman, and his main goals are to review conditions after the resumption of production and to extensively exchange views, the source said. By Sarah Wu TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Foxconn 2317.TW, formally known as Hon Hai Precision Industry Co, declined to comment.
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17043.0
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2023-02-20 00:00:00 UTC
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If You Invested $10,000 in Nvidia in 2013, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-invested-%2410000-in-nvidia-in-2013-this-is-how-much-you-would-have-today
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While it might feel disheartening to look at a company's past stock growth and see what could have been, it's also a great exercise to see what's possible for the future. As a high-growth company, Nvidia (NASDAQ: NVDA) has seen its shares skyrocket over the long term, illustrating the importance of holding stocks over many years. Doing so can safeguard your investment against temporary economic headwinds, like the ones that triggered steep declines for many companies in 2022.
Nvidia's stock fell 50% throughout last year. However, its shares have still retained 269% growth over the last five years despite the sell-off. And with that, let's look at how much a $10,000 investment in Nvidia's stock a decade ago, in 2013, would be worth today.
Stellar growth
Founded in 1993, Nvidia went public in January 1999, with its stock soaring 55,000% since then. While most companies tend to experience the most growth in the beginning, Nvidia has still provided immense gains since 2013, as it almost singlehandedly founded the consumer graphics processing unit (GPU) market.
Before Nvidia, there was hardly a consumer (aka discrete) GPU market to speak of, with the company cashing in on the rising popularity of people building their own PCs for gaming and other purposes. As a result, Nvidia held an 88% market share in discrete GPUs as of the third quarter of 2022, according to Jon Peddie Research.
While declines in the PC industry in 2022 brought worldwide GPU shipments down 42% over the year, the market's past growth has propelled Nvidia into a dominating position in tech.
Since 2013, Nvidia's stock has soared by 7,050%. The colossal growth is almost unheard of compared to its peers, as seen in the table below.
Data by YCharts
Taking into account Nvidia's marginal dividends over the years, an investment of $10,000 in the company's stock in 2013 would be worth $807,205 today. The annual rate of return would be about 54%.
Building the future
While Nvidia's stock is unlikely to soar another 7,000% over the next decade, it still has the potential for significant growth well into the future. The consumer GPU market is currently in a slump and will need time to recover. However, Nvidia's success in the space has given it the power and financial resources to find more lucrative applications for its high-powered devices.
Since Jan. 1, Nvidia's stock has shot up 55%, as the company's prospects in artificial intelligence (AI) have rallied investors. The tech giant's GPUs have the power to run and develop AI software, a market projected to grow at a compound annual growth rate (CAGR) of 37.3% through 2030. Since tech start-up OpenAI launched ChatGPT, a chatbot capable of producing human-like dialogue, in November 2022, many companies have shifted focus to the industry.
Microsoft's $1 billion investment in OpenAI in 2019 looks like one of the best decisions it has ever made, as the start-up's advanced software has been integrated into Azure and Bing. Meanwhile, Nvidia's recent partnership with Microsoft's Azure to build a massive AI computer is a promising step for its venture into the burgeoning market.
Another fruitful application for Nvidia's GPUs that is already boosting revenue is in data centers, propelled by the swiftly expanding cloud industry. In the company's third quarter of fiscal 2023, ended Oct. 30, 2022, its data center segment reported year-over-year growth of 30.5%, earning the largest portion of revenue at $3.8 billion. As the cloud market still has plenty of room for growth, with a projected CAGR of 15.7% through 2030, according to Grand View Research, Nvidia is well-positioned to continue seeing gains for years.
Nvidia has awarded patient investors with immense stock growth since 2013, achieving success by pushing technology forward in the consumer GPU market. Its crucial role in cloud computing and especially AI could see it do the same. The company may not offer the same growth over the next decade, with increased competition from Intel and AMD, but its dominance in tech and long-term outlook make its stock a screaming buy.
Find out why Nvidia 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. Nvidia is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of February 8, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, 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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While most companies tend to experience the most growth in the beginning, Nvidia has still provided immense gains since 2013, as it almost singlehandedly founded the consumer graphics processing unit (GPU) market. While declines in the PC industry in 2022 brought worldwide GPU shipments down 42% over the year, the market's past growth has propelled Nvidia into a dominating position in tech. The company may not offer the same growth over the next decade, with increased competition from Intel and AMD, but its dominance in tech and long-term outlook make its stock a screaming buy.
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While declines in the PC industry in 2022 brought worldwide GPU shipments down 42% over the year, the market's past growth has propelled Nvidia into a dominating position in tech. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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While declines in the PC industry in 2022 brought worldwide GPU shipments down 42% over the year, the market's past growth has propelled Nvidia into a dominating position in tech. Building the future While Nvidia's stock is unlikely to soar another 7,000% over the next decade, it still has the potential for significant growth well into the future. Nvidia has awarded patient investors with immense stock growth since 2013, achieving success by pushing technology forward in the consumer GPU market.
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Find out why Nvidia 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. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Microsoft, and Nvidia.
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17044.0
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2023-02-20 00:00:00 UTC
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Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-1
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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
Managed by Goldman Sachs Funds, GLOV has amassed assets over $614.89 million, making it one of the average sized ETFs in the Broad Developed World ETFs. GLOV, before fees and expenses, seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.67%.
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.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
GLOV's top 10 holdings account for about 7.08% of its total assets under management.
Performance and Risk
The ETF has added about 3.66% so far.
With about 387 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $19.47 billion in assets, Vanguard Total World Stock ETF has $26.47 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed 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
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): 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 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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17045.0
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2023-02-20 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-6
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nan
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nan
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Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.55 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs 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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.30% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.51% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 21.98% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has gained about 7.04% so far this year and is down about -5.96% in the last one year (as of 02/20/2023). In the past 52-week period, it has traded between $34.56 and $45.01.
The ETF has a beta of 1.02 and standard deviation of 25.43% for the trailing three-year period. With about 994 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 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, SCHK is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $307.53 billion in assets, SPDR S&P 500 ETF has $374.49 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab 1000 Index ETF (SCHK): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.51% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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. Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.51% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.51% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab 1000 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 5.51% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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. Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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17046.0
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2023-02-20 00:00:00 UTC
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Surprise! Warren Buffett Owns a Brand-New FAANG Stock
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AAPL
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https://www.nasdaq.com/articles/surprise-warren-buffett-owns-a-brand-new-faang-stock
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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 a knack for getting Wall Street's attention. It probably has to do with the more than 3,800,000% aggregate return he's overseen for his company's Class A shares (BRK.A) since taking on the lead role in 1965.
The Oracle of Omaha's phenomenal investing track record has allowed new and tenured investors to ride his coattails to sizable gains for decades. It's ultimately what makes Berkshire Hathaway's Form 13F filings such anticipated events.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Berkshire Hathaway's 13Fs don't tell the complete story
A 13F is a required quarterly filing with the Securities and Exchange Commission (SEC) by money managers and high net worth individuals with at least $100 million in assets under management. The investment portfolio Buffett and his team oversee at Berkshire Hathaway topped $342 billion in value, of last week.
A 13F allows investors to see what the smartest money managers on Wall Street bought and sold in the most recent quarter. Though 13Fs have an obvious flaw -- they provide a 45-day-old snapshot of a fund's or company's holdings, which could have meaningfully changed over six-plus weeks -- they're still helpful in that they can alert investors to stocks, sectors, industries, and trends that are piquing the interest of some of the world's most influential money managers.
Following the closing bell on February 14, Berkshire Hathaway filed its fourth quarter 13F with the SEC. Although articles aplenty will be written about Buffett's trading activity during the fourth quarter, you might be shocked to learn that Berkshire's 13F doesn't provide a complete picture of all the stocks Buffett's company is holding.
In 1998, Berkshire Hathaway acquired reinsurance giant General Re for approximately $22 billion. While General Re's reinsurance operations were the crown jewel of this buyout, General Re also owned a specialty investment firm, New England Asset Management (NEAM). When Berkshire Hathaway purchased General Re, it also acquired NEAM.
Today, NEAM remains an owned but separate entity operating under the Berkshire Hathaway umbrella. In other words, Warren Buffett doesn't dictate/advise where New England Asset Management should put its $5.43 billion in assets under management to work. Nevertheless, this secret portfolio of Warren Buffett's owns stakes in 117 different securities (common and preferred stock, as well as exchange-traded funds), as of Dec. 31, 2022.
Thanks to this secret portfolio, Warren Buffett now owns a brand-new FAANG stock.
Image source: Getty Images.
Warren Buffett's secret portfolio just added a new FAANG stock
When I say "FAANG," I'm referring to the following five companies:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
As many of you who follow the Oracle of Omaha's buying and selling activity are likely aware, Apple is Berkshire Hathaway's largest position by a significant amount. Apple comprised 41% of Berkshire's $342 billion in invested assets as of the closing bell on Feb. 14, 2023. Apple was also one of only three stocks Buffett and his investing team added to during the fourth quarter.
Likewise, Amazon has been a Berkshire Hathaway holding for four years (since the first quarter of 2019). Previous comments made by the Oracle of Omaha suggest that he wasn't the mastermind behind scooping up shares of the world's leading e-commerce company. Rather, it was one of his investing lieutenants, Todd Combs or Ted Weschler, that built what's become a $1.06 billion stake in Amazon.
Prior to Berkshire Hathaway's and New England Asset Management's latest 13F filings, Buffett's only exposure to the remaining three FAANGs -- Meta, Netflix, and Alphabet -- came indirectly from owning shares of Markel. That's now changed.
During the fourth quarter, New England Asset Management acquired 17,100 shares of Alphabet -- specifically, the Class A shares (GOOGL).
Alphabet checks all the appropriate boxes
The answer to "Why Alphabet?" is really simple and boils down to three factors: market share, cash flow, and valuation.
To start with, Alphabet operates a veritable monopoly in internet search. Based on data from GlobalStats, Google has accounted for no less than 91% of global search share every month since December 2018. Even though ad spending is cyclical, having a nearly 90-percentage-point share advantage over the next-closest search engine competitor affords Google exceptional pricing power when dealing with advertisers. With the understanding that the U.S. and global economy grow over long periods, Alphabet's ad-driven operations are a clear beneficiary.
Secondly, Alphabet is nothing short of a cash cow, which affords it the luxury of aggressively reinvesting in a variety of high-growth initiatives. Last year, it generated $91.5 billion in operating cash flow. This immense cash generation is helping the company expand the reach of cloud infrastructure service Google Cloud, which has gobbled up an estimated 10% of worldwide cloud service infrastructure share, based on the latest report from Canalys.
To add to this point, the incredible cash flow generated from Google, coupled with Alphabet's $99 billion in net cash, cash equivalents, and marketable securities, is allowing the company to reinvest in streaming platform YouTube, which is the second most-visited social site in the world. Alphabet is currently working on ways to increase the monetization of short-form videos known as YouTube Shorts. More than 50 billion Shorts are being viewed daily!
And thirdly, Alphabet is historically cheap with regard to both its future earnings potential and cash flow. Despite averaging a forward price-to-earnings ratio of 25.4 over the past five years, it's currently valued at 15.5 times Wall Street's consensus profit for next year.
What's more, Alphabet has averaged a multiple of 18.6 times its year-end cash flow over the past five years. Based on Wall Street's most forward-looking cash-flow estimate for the company, investors can scoop up shares of Alphabet right now for just 6.5 times projected cash flow in 2026.
In other words, Alphabet checks all the boxes the Oracle of Omaha would look for in an investment.
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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, Berkshire Hathaway, Markel, Meta Platforms, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Warren Buffett's secret portfolio just added a new FAANG stock When I say "FAANG," I'm referring to the following five companies: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) As many of you who follow the Oracle of Omaha's buying and selling activity are likely aware, Apple is Berkshire Hathaway's largest position by a significant amount. Though 13Fs have an obvious flaw -- they provide a 45-day-old snapshot of a fund's or company's holdings, which could have meaningfully changed over six-plus weeks -- they're still helpful in that they can alert investors to stocks, sectors, industries, and trends that are piquing the interest of some of the world's most influential money managers. Prior to Berkshire Hathaway's and New England Asset Management's latest 13F filings, Buffett's only exposure to the remaining three FAANGs -- Meta, Netflix, and Alphabet -- came indirectly from owning shares of Markel.
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Warren Buffett's secret portfolio just added a new FAANG stock When I say "FAANG," I'm referring to the following five companies: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) As many of you who follow the Oracle of Omaha's buying and selling activity are likely aware, Apple is Berkshire Hathaway's largest position by a significant amount. To add to this point, the incredible cash flow generated from Google, coupled with Alphabet's $99 billion in net cash, cash equivalents, and marketable securities, is allowing the company to reinvest in streaming platform YouTube, which is the second most-visited social site in the world. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Markel, Meta Platforms, and Netflix.
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Warren Buffett's secret portfolio just added a new FAANG stock When I say "FAANG," I'm referring to the following five companies: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) As many of you who follow the Oracle of Omaha's buying and selling activity are likely aware, Apple is Berkshire Hathaway's largest position by a significant amount. Prior to Berkshire Hathaway's and New England Asset Management's latest 13F filings, Buffett's only exposure to the remaining three FAANGs -- Meta, Netflix, and Alphabet -- came indirectly from owning shares of Markel. To add to this point, the incredible cash flow generated from Google, coupled with Alphabet's $99 billion in net cash, cash equivalents, and marketable securities, is allowing the company to reinvest in streaming platform YouTube, which is the second most-visited social site in the world.
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Warren Buffett's secret portfolio just added a new FAANG stock When I say "FAANG," I'm referring to the following five companies: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) As many of you who follow the Oracle of Omaha's buying and selling activity are likely aware, Apple is Berkshire Hathaway's largest position by a significant amount. Berkshire Hathaway CEO Warren Buffett. During the fourth quarter, New England Asset Management acquired 17,100 shares of Alphabet -- specifically, the Class A shares (GOOGL).
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17047.0
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2023-02-19 00:00:00 UTC
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Validea Daily Guru Fundamental Report for AAPL - 2/19/2023
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AAPL
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https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-aapl-2-19-2023
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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.
Company Description: Apple Inc. (Apple) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a range of related services. The Company's products include iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and accessories. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+. Apple also offers a range of other services, such as AppleCare, iCloud, Apple Card and Apple Pay. Apple sells its products and resells third-party products in a range of markets, including directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.
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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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). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett.
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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. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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17048.0
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2023-02-19 00:00:00 UTC
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Is The Trade Desk Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-the-trade-desk-stock-a-buy-now-3
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nan
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nan
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The Trade Desk's (NASDAQ: TTD) stock surged 33% on Feb. 15 after it posted its fourth-quarter earnings report. The advertising technology company's revenue rose 24% year over year to $491 million, which narrowly missed analysts' estimates by $1 million. But its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 28% to $245 million, or $0.38 per share, and cleared the consensus forecast by two cents.
For the full year, its revenue rose 32% to $1.58 billion as its adjusted EBITDA grew 33% to $668 million. Those robust growth rates suggested it was well-insulated from the macro headwinds, but is its stock still worth buying after its post-earnings pop?
Image source: Getty Images.
What does The Trade Desk do?
The Trade Desk is the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable advertisers to bid on programmatic ad space across desktop, mobile, and connected TV (CTV) platforms. They work in tandem with sell-side platforms (SSPs) like Magnite (NASDAQ: MGNI), which help publishers sell their own ad inventories.
Diversified advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms (NASDAQ: META) bundle together DSPs, SSPs, and other services for both advertisers and publishers. However, many companies don't want to lock themselves into those larger tech ecosystems, especially if they consider them to be competitors in certain markets or want to reach customers on a wider range of platforms.
That's why many advertisers prefer to use independent DSPs like The Trade Desk to buy ad space across the "open" internet that isn't corralled within the walled gardens of tech giants like Google and Meta. The Trade Desk also generates most of its growth from the CTV market, which has been expanding rapidly in recent years as streaming video platforms replace linear TV services like cable, network, and satellite TV.
Many advertising platforms, including Meta's Facebook and Instagram, struggled over the past year after Apple (NASDAQ: AAPL) allowed its iOS users to opt out of data tracking features.
That signal loss made The Trade Desk even more appealing, since its artificial intelligence-driven Solimar platform structures its bids on first-party data -- which is insulated from Apple's platform changes -- instead of accumulating third-party data from individual users. It's also rolling out Unified ID 2.0 (UID2), a new first-party data tracking format which replaces third-party tracking cookies across the internet. It claims UID2 could be ten times more valuable than cookies over the long term.
Why is The Trade Desk resistant to the macro headwinds?
The Trade Desk's year-over-year revenue growth decelerated over the past three quarters as the macro headwinds caused some companies to rein in their ad spending, but its adjusted EBITDA margins still expanded as it carefully managed its headcount and operating expenses.
PERIOD
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Revenue growth (YOY)
24%
43%
35%
31%
24%
Adjusted EBITDA growth (YOY)
25%
70%
18%
33%
28%
Adjusted EBITDA margin
48%
38%
37%
41%
50%
Data source: The Trade Desk. YOY = Year-over-year.
During the fourth-quarter conference call, CEO Jeff Green said that according to Dentsu, global ad spending only rose 8% in 2022. However, Green noted that spending on The Trade Desk "grew more than three times" faster than that in 2022, which marked the company's highest level of industry outperformance in its six years as a public company. Green noted that as other marketers face "pressure to do more with less," The Trade Desk continued to "outperform and gain share."
Specifically, Green believes that as advertisers reevaluate their marketing budgets, they're allocating more spending on the "open internet" instead of in Google's and Meta's walled ecosystems -- and ad-supported CTV platforms are an attractive option in this tough market. In a thinly veiled dig against Google's YouTube, Green said a lot of the industry's growth was "happening outside the walled gardens as advertisers shift spend from user-generated content to premium streaming content."
Can The Trade Desk maintain that momentum?
In the first quarter of 2023, The Trade Desk expects its revenue to rise "at least" 15% year over year to $363 million as its adjusted EBITDA declines 36% to $78 million. During the call, CFO Blake Grayson attributed that near-term profit decline to its increased investments in its ecosystem and the ongoing expansion of its workforce -- although it plans to increase its headcount in 2023 at only "half the rate" of its expansion in 2022.
For the full year, analysts expect The Trade Desk's revenue to rise 20% to $1.89 billion as its adjusted EBITDA increases 8% to $721 million. Those growth rates are rock-solid, but its stock isn't cheap at 16 times this year's sales and 43 times its adjusted EBITDA. Magnite, which will benefit from the same open internet and CTV trends on the opposite end of the advertising supply chain, trades at just four times its 2023 sales and 12 times its adjusted EBITDA.
Therefore, my advice is the same as it was in previous quarters: Investors can gradually accumulate shares of The Trade Desk at these levels, but they should be aware that its premium valuation could limit its near-term gains.
Find out why The Trade Desk is one of the 10 best stocks to buy now
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, Magnite, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Magnite, Meta Platforms, and The Trade Desk. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many advertising platforms, including Meta's Facebook and Instagram, struggled over the past year after Apple (NASDAQ: AAPL) allowed its iOS users to opt out of data tracking features. That's why many advertisers prefer to use independent DSPs like The Trade Desk to buy ad space across the "open" internet that isn't corralled within the walled gardens of tech giants like Google and Meta. The Trade Desk's year-over-year revenue growth decelerated over the past three quarters as the macro headwinds caused some companies to rein in their ad spending, but its adjusted EBITDA margins still expanded as it carefully managed its headcount and operating expenses.
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Many advertising platforms, including Meta's Facebook and Instagram, struggled over the past year after Apple (NASDAQ: AAPL) allowed its iOS users to opt out of data tracking features. Diversified advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms (NASDAQ: META) bundle together DSPs, SSPs, and other services for both advertisers and publishers. Revenue growth (YOY) 24% 43% 35% 31% 24% Adjusted EBITDA growth (YOY) 25% 70% 18% 33% 28% Adjusted EBITDA margin 48% 38% 37% 41% 50% Data source: The Trade Desk.
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Many advertising platforms, including Meta's Facebook and Instagram, struggled over the past year after Apple (NASDAQ: AAPL) allowed its iOS users to opt out of data tracking features. The Trade Desk's year-over-year revenue growth decelerated over the past three quarters as the macro headwinds caused some companies to rein in their ad spending, but its adjusted EBITDA margins still expanded as it carefully managed its headcount and operating expenses. Revenue growth (YOY) 24% 43% 35% 31% 24% Adjusted EBITDA growth (YOY) 25% 70% 18% 33% 28% Adjusted EBITDA margin 48% 38% 37% 41% 50% Data source: The Trade Desk.
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Many advertising platforms, including Meta's Facebook and Instagram, struggled over the past year after Apple (NASDAQ: AAPL) allowed its iOS users to opt out of data tracking features. What does The Trade Desk do? For the full year, analysts expect The Trade Desk's revenue to rise 20% to $1.89 billion as its adjusted EBITDA increases 8% to $721 million.
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17049.0
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2023-02-19 00:00:00 UTC
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5 Top Stocks With Magnificent Share-Repurchase Track Records
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AAPL
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https://www.nasdaq.com/articles/5-top-stocks-with-magnificent-share-repurchase-track-records
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Share buybacks, when executed well, can be a powerful way for stocks to generate value for their investors.
Often, when a business buys its stock as part of a share repurchase program, it lowers the number of shares outstanding. While dilution through stock-based compensation or stock offerings can impede this, a steadily declining share count offers the potential for more-substantial returns.
If a company buys back 20% of its shares, its earnings per share (EPS) increase by 25%; if it lowers its count by half, EPS doubles.
Five companies riding the power of this increasing EPS are Apple (NASDAQ: AAPL), Kroger (NYSE: KR), O'Reilly Automotive (NASDAQ: ORLY), Murphy USA (NYSE: MUSA), and Lowe's Companies (NYSE: LOW).
Data by YCharts.
Along with these steadily declining share counts, here's what makes these five top stocks fantastic candidates for investors to buy and hold forever.
1. Apple
Apple has not only repurchased 20% of its shares over the last five years, but also dropped its count by 40% over the last 10. Fueled by this lower share total, Apple's EPS rose by 294% in the last decade, compared to its sales increase of 129% over the same time.
A few prognosticators seem to think Apple's fortress showed a few cracks as sales dropped 5% in the first quarter of 2023, but its high-margin services segment grew by 6%. That segment -- made up of advertising, AppleCare, cloud services, digital content, and payment services -- should continue to thrive as Apple's ecosystem becomes further integrated into its 2 billion users' lives.
Best yet, the company's 58% return on invested capital (ROIC) ranks as the ninth best in the S&P 500 index. Measuring profitability compared to debt and equity, high ROIC generators tend to outperform, making Apple's buyback track record look even more enticing.
2. Kroger
Kroger has postponed new buybacks, waiting for approval on its proposed $25 billion deal for fellow grocer Albertsons (NYSE: ACI). But its 31% decrease in shares since 2013 is still impressive. Already saddled with $11 billion in long-term debt compared to $2 billion in cash, management wants to build its cash balance before it becomes further indebted with the merger.
Whether the deal is approved or not, Kroger's history of returning cash to shareholders should keep it on savvy investors' radars. Besides its repurchases, the company has raised its dividend (now yielding 2.4%) for 19 consecutive years -- and only uses 23% of its earnings to fund these payouts.
Posting 7% same-store sales growth (minus fuel) and 13% adjusted EPS growth in the third quarter, Kroger saw digital sales and private-label brands lead the way, each increasing by 10%. The grocer will never be mistaken as a growth company, but its EPS has nearly tripled over the last decade, while its dividend jumped 238%.
Kroger is down 30% from its 52-week highs, and now trades with a low 5.8 ratio of enterprise value to EBITDA (earnings before interest, taxes, depreciation, and amortization).
Data by YCharts.
This low valuation and the company's incredible cash returns to shareholders mean investors could be getting a discount on this steady stock as the market weighs the uncertainty surrounding its mega-merger.
3. O'Reilly Automotive
After lowering its share count by 44% across the last decade, car parts distributor O'Reilly and its 5,900 stores could be the most aggressive repurchaser on this list. The company has bypassed a dividend in favor of returning all of its cash to shareholders with buybacks and has grown its EPS by a stunning 574% since 2013.
With 59% of its sales from do-it-yourself (DIY) purchasers, the company boomed during the lockdown as its customers kept busy maintaining their cars at home. The remaining 41% of its sales comes from its professional unit (delivering parts to mechanics), which restarted its double-digit growth once the pandemic waned.
O'Reilly aims to add 180 to 190 stores in 2023 as it expands geographically, with new distribution centers in Puerto Rico and Mexico.
These incredible cash returns to shareholders are combined with the eighth-highest ROIC in the S&P 500 index, so look for O'Reilly to continue outpacing the market.
4. Murphy USA
Following its spinoff from Murphy Oil in 2013, convenience store operator Murphy USA has eliminated 53% of its total shares outstanding. It is recognizable thanks to its 1,150 kiosk stores located near Walmart locations across the U.S., but it is turning its attention to growing its own independent shops.
It now has over 500 stand-alone, larger-format stores running under the Murphy Express and QuickChek brands, and it is expanding its food and beverage operations.
The company initiated a dividend in late 2020 and now pays a yield of 0.5%, which only uses a minuscule 5% of its net income. This low payout ratio leaves abundant room for future dividend increases while simultaneously allowing for continued share repurchases.
Murphy USA trades at an EV-to-EBITDA ratio of just 6.4 -- despite posting a total return of 600% since its debut on the stock market -- and is a premiere example of investing in simplicity.
5. Lowe's
The last in our group, Lowe's, has removed 44% of its share count since 2013 -- boosting EPS by almost 500% over the same time. Making this feat even more impressive is Lowe's 59 years of consecutive increases for its dividend, which now yields 1.9%.
Focusing on its total home strategy, the company emphasizes its professional sales, installation offerings, and omnichannel experience at each store. DIY and pro sales account for a 50-50 split in the $1 trillion overall home improvement market, but the pro side only accounts for 26% of Lowe's sales.
This difference leaves a long runway for growth, especially with its new pro rewards members spending three times more than their nonmember peers.
Lowe's trades at 19 times free cash flow. Its strong cash returns to shareholders and ROIC near 40% make it another excellent compounder to buy and hold forever.
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Josh Kohn-Lindquist has positions in Apple, Lowe's Companies, and Murphy Usa. The Motley Fool has positions in and recommends Apple and Walmart. The Motley Fool recommends Lowe's Companies and Murphy Oil 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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Five companies riding the power of this increasing EPS are Apple (NASDAQ: AAPL), Kroger (NYSE: KR), O'Reilly Automotive (NASDAQ: ORLY), Murphy USA (NYSE: MUSA), and Lowe's Companies (NYSE: LOW). Measuring profitability compared to debt and equity, high ROIC generators tend to outperform, making Apple's buyback track record look even more enticing. This low valuation and the company's incredible cash returns to shareholders mean investors could be getting a discount on this steady stock as the market weighs the uncertainty surrounding its mega-merger.
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Five companies riding the power of this increasing EPS are Apple (NASDAQ: AAPL), Kroger (NYSE: KR), O'Reilly Automotive (NASDAQ: ORLY), Murphy USA (NYSE: MUSA), and Lowe's Companies (NYSE: LOW). Posting 7% same-store sales growth (minus fuel) and 13% adjusted EPS growth in the third quarter, Kroger saw digital sales and private-label brands lead the way, each increasing by 10%. The Motley Fool recommends Lowe's Companies and Murphy Oil and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Five companies riding the power of this increasing EPS are Apple (NASDAQ: AAPL), Kroger (NYSE: KR), O'Reilly Automotive (NASDAQ: ORLY), Murphy USA (NYSE: MUSA), and Lowe's Companies (NYSE: LOW). See the 10 stocks *Stock Advisor returns as of February 8, 2023 Josh Kohn-Lindquist has positions in Apple, Lowe's Companies, and Murphy Usa. The Motley Fool recommends Lowe's Companies and Murphy Oil and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Five companies riding the power of this increasing EPS are Apple (NASDAQ: AAPL), Kroger (NYSE: KR), O'Reilly Automotive (NASDAQ: ORLY), Murphy USA (NYSE: MUSA), and Lowe's Companies (NYSE: LOW). Often, when a business buys its stock as part of a share repurchase program, it lowers the number of shares outstanding. If a company buys back 20% of its shares, its earnings per share (EPS) increase by 25%; if it lowers its count by half, EPS doubles.
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17050.0
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2023-02-19 00:00:00 UTC
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76% of Warren Buffett's Berkshire Hathaway Portfolio Value Is in These 5 Stocks
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AAPL
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https://www.nasdaq.com/articles/76-of-warren-buffetts-berkshire-hathaway-portfolio-value-is-in-these-5-stocks
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Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Warren Buffett has said: "Diversification is protection against ignorance. It makes little sense if you know what you are doing." While having a meaningful degree of portfolio diversification is likely a smart move for most investors, it's clear Buffett is enormously confident in the Berkshire managers' and analyst teams' abilities to pick winners.
Given that Berkshire has absolutely crushed the market since Buffett became the company's leader in 1965, it would be nearly impossible to argue that his confidence is misplaced. Read on for a look at Berkshire Hathaway's five largest stock holdings (based on the company's recent 13F filing), which accounted for roughly 76% of its direct equity ownership positions.
Image source: The Motley Fool.
1. Apple
Apple (NASDAQ: AAPL) stands as, by far, the largest holding in the Berkshire Hathaway stock portfolio. At current prices, the tech giant's stock accounts for roughly 38.9% of the investment conglomerate's equity holdings. Buffett's company began investing in the iPhone maker back in 2016, and the combination of capital appreciation for existing shares in the portfolio and additional stock purchases elevated it to Berkshire's top equity position.
Apple's dominance in the mobile market has made it one of the world's most profitable businesses. According to analysis from Counterpoint Research, the iPhone company generated 85% of global profits on smartphone sales in last year's fourth quarter. If you think about how many device manufacturers are out there and how competition and commodification trends, Apple's dominance in mobile is nothing short of incredible -- and it doesn't look like the tech leader will be ceding dominance in the space any time soon.
2. Bank of America
Early in 2011, it looked like Buffett might have been done with Bank of America (NYSE: BAC) stock for good. The publication of Berkshire's 13F filing for 2010's fourth quarter revealed that Berkshire had sold off the entirety of its position in the bank stock and taken a substantial loss exiting the position. But the investment conglomerate was back to buying BoA shares before 2011 was over.
With BoA facing pressures from the 2011 debt-ceiling crisis and lingering pressures from the recent financial crash and recession, Buffett proposed a deal to BoA that would provide the struggling financial giant with an injection of new capital. Berkshire bought $5 billion worth of preferred stock and received stock warrants allowing the holding company to purchase 700 million shares of the banking giant's common stock at $7.14 per share.
BAC data by YCharts.
Roughly six years later, BoA stock was trading above $24 per share, and Buffett moved to exercise the warrants. The purchase immediately made Berkshire Hathaway Bank of America's largest shareholder, and it remains so to this day. BoA stock accounts for approximately 11.2% of Berkshire's stock portfolio as of this writing, and Berkshire owns roughly 12.6% of the banking company's outstanding shares.
3. Chevron
Berkshire Hathaway initiated a position in Chevron (NYSE: CVX) stock in 2020 and poured billions of dollars in additional investment into the stock in 2022. That proved to be a great move.
Berkshire's large position in Chevron played a huge role in the investment conglomerate's market-beating performance over the last year. Spurred by high oil prices, the energy giant wound up the best-performing component of the Dow Jones Industrial Average index in 2022.
CVX data by YCharts.
While falling gas prices caused Chevron's share price to dip around 5% year to date in 2023 and lag the Dow's roughly 3% gain across the stretch, the energy company has still been crushing the index since the beginning of last year. Even with the valuation dip in 2023, Chevron stands as Berkshire's third-largest holding and accounts for roughly 9.8% of the company's equity portfolio.
4. Coca-Cola
Warren Buffett has never been an official spokesperson for Coca-Cola's (NYSE: KO) soft drinks. However, he's made enough public appearances sipping on Cokes and Diet Cokes through the years that the beverage giant has certainly gotten some promotional mileage from it. The Oracle of Omaha also likes the company so much that he's said he would never sell a share of its stock, and it currently makes up 8.5% of Berkshire Hathaway's stock portfolio.
Coca-Cola also has one of the best dividend growth streaks of any publicly traded company. At 60 years of consecutive annual payout growth, the company is a decade past the 50-year marker needed to join the illustrious ranks of the Dividend Kings. Only nine public companies have longer dividend growth track records, and Buffett and other shareholders will very likely be treated to another dividend increase when the company publishes its upcoming fourth-quarter report.
5. American Express
Berkshire currently owns roughly 20% of American Express's (NYSE: AXP) stock, and that ownership stake will likely increase even if the investment conglomerate never buys another share. American Express has been on a substantial buyback spree in recent years, buying back and retiring nearly a third of its outstanding shares over the last decade.
AXP EPS Diluted (TTM) data by YCharts. EPS = earnings per share. TTM = trailing 12 months.
In addition to growth in its number of active members and total transaction volume conducted across its network, retiring shares has been a substantial positive catalyst for earnings-per-share growth. The company has also returned value to Buffett and other shareholders in the form of dividends and raised its payout by 160% over the last decade.
Based on its stock price as of this writing, AmEx accounts for 7.5% of Berkshire's equity holdings.
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*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. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) stands as, by far, the largest holding in the Berkshire Hathaway stock portfolio. While having a meaningful degree of portfolio diversification is likely a smart move for most investors, it's clear Buffett is enormously confident in the Berkshire managers' and analyst teams' abilities to pick winners. Read on for a look at Berkshire Hathaway's five largest stock holdings (based on the company's recent 13F filing), which accounted for roughly 76% of its direct equity ownership positions.
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Apple Apple (NASDAQ: AAPL) stands as, by far, the largest holding in the Berkshire Hathaway stock portfolio. Read on for a look at Berkshire Hathaway's five largest stock holdings (based on the company's recent 13F filing), which accounted for roughly 76% of its direct equity ownership positions. American Express Berkshire currently owns roughly 20% of American Express's (NYSE: AXP) stock, and that ownership stake will likely increase even if the investment conglomerate never buys another share.
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Apple Apple (NASDAQ: AAPL) stands as, by far, the largest holding in the Berkshire Hathaway stock portfolio. Berkshire bought $5 billion worth of preferred stock and received stock warrants allowing the holding company to purchase 700 million shares of the banking giant's common stock at $7.14 per share. BoA stock accounts for approximately 11.2% of Berkshire's stock portfolio as of this writing, and Berkshire owns roughly 12.6% of the banking company's outstanding shares.
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Apple Apple (NASDAQ: AAPL) stands as, by far, the largest holding in the Berkshire Hathaway stock portfolio. The publication of Berkshire's 13F filing for 2010's fourth quarter revealed that Berkshire had sold off the entirety of its position in the bank stock and taken a substantial loss exiting the position. AXP EPS Diluted (TTM) data by YCharts.
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17051.0
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2023-02-19 00:00:00 UTC
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75% of Warren Buffett's Portfolio Is Invested in 5 Stocks: Here's the 1 That's Made Him the Most Money
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AAPL
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https://www.nasdaq.com/articles/75-of-warren-buffetts-portfolio-is-invested-in-5-stocks%3A-heres-the-1-thats-made-him-the
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Warren Buffett once said, "Keep all your eggs in one basket, but watch that basket closely." He has practiced what he preaches for the most part. Nearly all of the billionaire's net worth is in one stock: Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).
Berkshire itself doesn't keep all of its eggs in one basket, though. The conglomerate owns over 50 stocks. But those investments aren't as diversified as you might think. A whopping 75% of Buffett's Berkshire portfolio is invested in just five stocks. Here they are -- including the one that's made him the most money.
Image source: The Motley Fool.
Buffett's top five
Buffett likes businesses that have proven themselves over time. Therefore, it isn't surprising that his top five holdings in Berkshire's portfolio are all household names.
STOCK SHARES OWNED PERCENT OF TOTAL PORTFOLIO
Apple (NASDAQ: AAPL) 915,560,382 41.5%
Bank of America (NYSE: BAC) 1,032,852,006 10.7%
Chevron (NYSE: CVX) 167,353,771 8.2%
American Express (NYSE: AXP) 151,610,700 7.9%
The Coca-Cola Company (NYSE: KO) 400,000,000 6.9%
Data source: CNBC. Chart by author.
If you only look at Berskhire's 13F filings to the U.S. Securities and Exchange Commission (SEC), you won't get the complete picture of its holdings. New England Asset Management (NEAM), an investment firm that's a subsidiary of Berkshire Hathaway, also owns quite a few stocks. The numbers on the above table for Apple, Bank of America, and Chevron include the shares owned by NEAM.
His biggest moneymaker
Determining which of Buffett's top five stocks has made him the most money is easier said than done. For one thing, we don't know exactly when he bought the stocks. Berkshire's and NEAM's SEC filings only narrow the purchases down to a specific quarter. That means we also don't know Buffett's specific cost basis for each stock. However, we can make some pretty good guesses to figure out which of the legendary investor's top five stocks have been most profitable for him.
Let's start with Berkshire's biggest holding by far -- Apple. Buffett even called the company one of Berkshire's "four giants" in his letter to shareholders last year. But Apple wasn't always one of those giants. Buffett first bought nearly 129.4 million shares of the tech company in the first quarter of 2016.Since the beginning of that quarter, Apple stock has skyrocketed nearly 490%.
What complicates matters, though, is that Berkshire has bought and sold shares of Apple throughout the years. The company also conducted a 4-for-1 stock split in August 2020. However, we can still get a good feel for how big of a winner Apple has been for Buffett. His heaviest buying of Apple occurred between 2016 and 2018. Berkshire has held onto most of its position since then, with the stock nearly quadrupling in value.
Apple's performance and Berkshire's massive stake in the company allow us to eliminate some contenders. For example, Buffett initiated a position in Chevron in the fourth quarter of 2020. Although the big oil company has delivered a total return of nearly 170% since the beginning of that period, that's a much smaller gain than Buffett has seen with Apple.
Similarly, Berkshire opened a new position in Bank of America in the third quarter of 2017 (after exiting a previous stake several years earlier). The bank stock has delivered a total return of less than 70% since then.
That leaves two of Buffett's long-term holdings. He bought a big chunk of shares in American Express in the fourth quarter of 2000, and there was some significant buying and selling in subsequent years. However, it doesn't appear that Buffett's American Express investment has paid off as significantly as Apple has.
Buffett's relationship with Coca-Cola goes back even further. He initiated a position in the food and beverage giant in the fourth quarter of 1998. Coca-Cola has been a big winner for the legendary investor. Still, though, Apple has delivered an even greater gain.
Staying at the top
Apple reigns as Buffett's biggest moneymaker (outside of Berkshire itself). Can it stay at the top? I think so.
It's not surprising in the least that Apple was one of only four stocks Buffett bought in the latest quarter. He loves the company's business. Pretty much anytime Apple goes on sale because of a pullback, Buffett is likely to scoop up more shares.
I don't see Apple's iPhone ecosystem losing steam anytime soon. If anything, the company could gain momentum. A recent patent filing could hint that a folding iPhone is on the way. Apple also has tremendous opportunities in augmented reality. My prediction is that the stock will continue to make the most money for Buffett for a long time to come.
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*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. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) 915,560,382 41.5% Bank of America (NYSE: BAC) 1,032,852,006 10.7% Chevron (NYSE: CVX) 167,353,771 8.2% American Express (NYSE: AXP) 151,610,700 7.9% The Coca-Cola Company (NYSE: KO) 400,000,000 6.9% Data source: CNBC. Although the big oil company has delivered a total return of nearly 170% since the beginning of that period, that's a much smaller gain than Buffett has seen with Apple. Similarly, Berkshire opened a new position in Bank of America in the third quarter of 2017 (after exiting a previous stake several years earlier).
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Apple (NASDAQ: AAPL) 915,560,382 41.5% Bank of America (NYSE: BAC) 1,032,852,006 10.7% Chevron (NYSE: CVX) 167,353,771 8.2% American Express (NYSE: AXP) 151,610,700 7.9% The Coca-Cola Company (NYSE: KO) 400,000,000 6.9% Data source: CNBC. 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 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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Apple (NASDAQ: AAPL) 915,560,382 41.5% Bank of America (NYSE: BAC) 1,032,852,006 10.7% Chevron (NYSE: CVX) 167,353,771 8.2% American Express (NYSE: AXP) 151,610,700 7.9% The Coca-Cola Company (NYSE: KO) 400,000,000 6.9% Data source: CNBC. Buffett first bought nearly 129.4 million shares of the tech company in the first quarter of 2016.Since the beginning of that quarter, Apple stock has skyrocketed nearly 490%. It's not surprising in the least that Apple was one of only four stocks Buffett bought in the latest quarter.
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Apple (NASDAQ: AAPL) 915,560,382 41.5% Bank of America (NYSE: BAC) 1,032,852,006 10.7% Chevron (NYSE: CVX) 167,353,771 8.2% American Express (NYSE: AXP) 151,610,700 7.9% The Coca-Cola Company (NYSE: KO) 400,000,000 6.9% Data source: CNBC. Similarly, Berkshire opened a new position in Bank of America in the third quarter of 2017 (after exiting a previous stake several years earlier). He bought a big chunk of shares in American Express in the fourth quarter of 2000, and there was some significant buying and selling in subsequent years.
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17052.0
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2023-02-18 00:00:00 UTC
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Best Stock to Buy: Amazon Stock vs. Alphabet Stock vs. Apple Stock
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AAPL
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-amazon-stock-vs.-alphabet-stock-vs.-apple-stock
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nan
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nan
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It's no surprise that investors are interested in buying Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) stocks. These are three of the best companies in the world. This video will answer which stock is the better buy: Amazon, Alphabet, or Apple.
*Stock prices used were the afternoon prices of Feb. 16, 2023. The video was published on Feb. 18, 2023.
10 stocks we like better than Amazon.com
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 8, 2023
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. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, 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.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's no surprise that investors are interested in buying Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) stocks. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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It's no surprise that investors are interested in buying Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) stocks. The Motley Fool has positions in and recommends Alphabet, 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.
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It's no surprise that investors are interested in buying Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) stocks. 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. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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It's no surprise that investors are interested in buying Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) stocks. This video will answer which stock is the better buy: Amazon, Alphabet, or Apple. That's right -- they think these 10 stocks are even better buys.
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17053.0
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2023-02-18 00:00:00 UTC
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Zebra Technology's Analysis Points to Improved Infrastructure
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AAPL
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https://www.nasdaq.com/articles/zebra-technologys-analysis-points-to-improved-infrastructure
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nan
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nan
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Information management expert Zebra Technologies (NASDAQ: ZBRA) just delivered a robust fourth-quarter earnings report. The company smashed its own guidance and Wall Street's estimates thanks to stellar order flows in the Americas.
And even if you don't own shares of this barcode and RFID systems expert, you may want to stick around and see what management said about the gnarled global supply chain. Spoiler alert: It's good news.
Zebra by the numbers
Let's start with the basic business facts.
Fourth-quarter net sales increased by 2.5% year over year, landing at $1.50 billion. The midpoint of management's guidance had suggested that revenues would drop 1% lower.
Zebra's profit margin, in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), stopped at 22.5%. That's up from 21.7% in the year-ago period. This metric was in line with the official target.
Adjusted earnings were expected to land near $4.65 per diluted share. Instead, earnings grew 4.6% to $4.75 per share.
The company generated $243 million of free cash flows, exceeding the guidance target by $13 million.
Analyst estimates usually stay close to the reporting company's guidance targets, and this report was no exception. Hence, Zebra trotted past Wall Street's expectations across the board.
Snappier shipping
On the earnings call, Zebra's management shared a rosy analysis of the global supply chain.
The company has battled several infrastructure issues in recent years, led by a shortage of important semiconductor components and a lack of room on ocean-going shipping vessels. Workarounds for these trouble spots have included redesigning Zebra's products to use more readily available chips, relocating manufacturing facilities, and paying a hefty premium to ship finished products by air instead.
The supply chain issues are fading away now. Zebra's mitigation efforts are making a difference, while many of the infrastructure concerns are going away for everybody.
As a result, Zebra's premium shipping costs continue to fall from the peak of early 2022. Zebra expects roughly $50 million of premium shipping expenses next year, compared to pre-COVID operations. That's less than the single-quarter bills of $56 million or more in the worst part of the supply chain crisis:
Data source: Zebra Technology.
What Zebra's commentary means for investors
According to CFO Nathan Winters, the shipping situation is "meaningfully better" than it was a year ago, but freight costs are still more than double their pre-pandemic levels. There is work left to do here, but Zebra's recent operating troubles are finally fading out.
Zebra's crystal-clear illustration of a healthier global shipping system is also great news for other companies that have struggled with the same challenges.
For example, Apple's (NASDAQ: AAPL) shipping and manufacturing issues kept Cupertino from keeping up with demand for the iPhone 14 series. The company has finally ended the lengthy iPhone back orders, as the phone is "shipping to demand" nowadays. Zebra's shipping system analysis supports Apple's claim that the infrastructure is fully functional again.
Retail giant Costco (NASDAQ: COST) reacted to worldwide shipping shortages by leasing seven shipping vessels and thousands of containers for a couple of years. However, the company has ended the leases on most of that equipment, since Costco's standard distribution methods can carry that weight again. Based on that trend and Zebra's concurring data, we could see the last of Costco's bulked-up shipping equipment returned to their lessors when the retailer reports earnings in two weeks.
You should be able to find many more examples of boosted shipping efficiency in other industries as this earnings season winds down. But I don't think you'll find many offering better explanations of how the infrastructure trends are improving.
So Zebra delivered broadly useful economic advice while also producing better business results than expected. As a result, longtime CEO Anders Gustafsson is handing over the reins to current chief product and solutions officer Bill Burns on a high note.
Find out why Zebra Technologies 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. Zebra Technologies is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of February 8, 2023
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Zebra Technologies. 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, Apple's (NASDAQ: AAPL) shipping and manufacturing issues kept Cupertino from keeping up with demand for the iPhone 14 series. The company has battled several infrastructure issues in recent years, led by a shortage of important semiconductor components and a lack of room on ocean-going shipping vessels. What Zebra's commentary means for investors According to CFO Nathan Winters, the shipping situation is "meaningfully better" than it was a year ago, but freight costs are still more than double their pre-pandemic levels.
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For example, Apple's (NASDAQ: AAPL) shipping and manufacturing issues kept Cupertino from keeping up with demand for the iPhone 14 series. Information management expert Zebra Technologies (NASDAQ: ZBRA) just delivered a robust fourth-quarter earnings report. Snappier shipping On the earnings call, Zebra's management shared a rosy analysis of the global supply chain.
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For example, Apple's (NASDAQ: AAPL) shipping and manufacturing issues kept Cupertino from keeping up with demand for the iPhone 14 series. Snappier shipping On the earnings call, Zebra's management shared a rosy analysis of the global supply chain. Zebra expects roughly $50 million of premium shipping expenses next year, compared to pre-COVID operations.
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For example, Apple's (NASDAQ: AAPL) shipping and manufacturing issues kept Cupertino from keeping up with demand for the iPhone 14 series. And even if you don't own shares of this barcode and RFID systems expert, you may want to stick around and see what management said about the gnarled global supply chain. Snappier shipping On the earnings call, Zebra's management shared a rosy analysis of the global supply chain.
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17054.0
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2023-02-18 00:00:00 UTC
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Better Buy: Apple vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-amazon-0
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nan
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Tech stocks have been rising in 2023 as investors grow optimistic about the prospects of a new year. The Nasdaq-100 Technology Sector index has risen 20% since Jan. 1 -- a significant improvement after falling 40% throughout 2022. The sector has long been a great place to search for new portfolio additions, with some of these companies offering consistent gains over time.
As leaders in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make compelling buys, especially with the market showing signs of recovery. So let's take a look at which is currently the better buy: Apple or Amazon.
Apple
In an economically challenging 2022, Apple proved itself to be one of the most reliable and consistent stocks on the market. As seen in the table below, the iPhone company experienced a more moderate decline in its stock price over the year than many of its peers.
Data by YCharts
Alongside resilience under macroeconomic headwinds, Apple shares have risen 266% since 2018 and 819% since 2013. The company's immense brand loyalty and walled garden of products have provided consistent, long-term growth. So it's not surprising that Wall Street mogul Warren Buffett has made Apple his biggest holding through Berkshire Hathaway, with the tech holding responsible for 41.3% of its portfolio.
In fact, Buffett saw Apple's stock decline last year as a buying opportunity. He increased his shares from 894.8 million to 915.6 million in the fourth quarter of 2022, and now owns a 5.8% stake in the company. And the move has already paid off as the tech giant's stock has risen 18% year to date.
For its fiscal 2023 third quarter, Apple reported disappointing results, with revenue declining 5.5% year over year to $117.2 billion, missing analysts' expectations by $4.5 billion. However, the company's reputation for growth has kept its stock rising. Investors have grown bullish over Apple's reported intention to venture into the virtual/augmented reality (VR/AR) markets later this year with the launch of a mixed-reality headset.
Since the AR market is projected to see a compound annual growth rate (CAGR) of 40.9% through 2030, with the same metric at 15% for VR, Apple could see significant gains from the swiftly growing industry.
As a result, Apple's stock is a screaming buy based on reliability and its long-term outlook.
Amazon
Amazon's leading market share in cloud computing with Amazon Web Services (AWS) as well as e-commerce suggest its stock should be a no-brainer buy. However, economic declines over the past year have been detrimental to its business, with operating losses between its two e-commerce segments totaling $10.5 billion in fiscal 2022 and AWS earning 100% of its $12.2 billion in operating income.
Despite last year's declines, the e-commerce market was worth $9.09 trillion in 2019 and is projected to grow at a CAGR of 14.7% until at least 2027, according to Grand View Research. As a result, Amazon's 37.8% market share in the industry means it has a lot to gain as easing inflation boosts the market. However, the company's substantial operating losses in 2022 could mean it takes longer for the business to recover.
Moreover, Amazon's cloud computing business was its primary source of growth in 2022, with AWS revenue rising 29% year over year to $80 billion. Operating income increased 23% to $22.8 billion. Amazon's leading 34% market share in the $369 billion cloud market will likely take it far as the technology develops further.
When comparing forward price-to-earnings ratios, Apple's 26 against Amazon's 66 makes shares in the iPhone company a far better value. Meanwhile, Apple's free cash flow of $97.5 billion and Amazon's negative $16.9 billion suggest Apple is better equipped to overcome additional economic declines.
Amazon's dominance in e-commerce and cloud computing makes it an excellent long-term investment. However, Apple's consistent growth despite macroeconomic headwinds and coming developments makes its stock the better, more reliable 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
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 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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As leaders in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make compelling buys, especially with the market showing signs of recovery. Investors have grown bullish over Apple's reported intention to venture into the virtual/augmented reality (VR/AR) markets later this year with the launch of a mixed-reality headset. Since the AR market is projected to see a compound annual growth rate (CAGR) of 40.9% through 2030, with the same metric at 15% for VR, Apple could see significant gains from the swiftly growing industry.
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As leaders in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make compelling buys, especially with the market showing signs of recovery. For its fiscal 2023 third quarter, Apple reported disappointing results, with revenue declining 5.5% year over year to $117.2 billion, missing analysts' expectations by $4.5 billion. Amazon Amazon's leading market share in cloud computing with Amazon Web Services (AWS) as well as e-commerce suggest its stock should be a no-brainer buy.
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As leaders in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make compelling buys, especially with the market showing signs of recovery. Apple In an economically challenging 2022, Apple proved itself to be one of the most reliable and consistent stocks on the market. Amazon Amazon's leading market share in cloud computing with Amazon Web Services (AWS) as well as e-commerce suggest its stock should be a no-brainer buy.
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As leaders in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make compelling buys, especially with the market showing signs of recovery. Amazon's leading 34% market share in the $369 billion cloud market will likely take it far as the technology develops further. However, Apple's consistent growth despite macroeconomic headwinds and coming developments makes its stock the better, more reliable buy.
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17055.0
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2023-02-18 00:00:00 UTC
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Twilio's Layoffs, Spotify's Strategy, and Super Bowl Ads
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AAPL
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https://www.nasdaq.com/articles/twilios-layoffs-spotifys-strategy-and-super-bowl-ads
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nan
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
How Twilio is cutting costs.
Memorable ads from Super Bowl LVII.
Motley Fool producer Ricky Mulvey talks with Bloomberg entertainment reporter Lucas Shaw about the state of Spotify's business, its podcasting strategy, and whether it needs to raise subscription fees.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Twilio
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 Twilio wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
This video was recorded on February 13, 2023.
Chris Hill: We've got a closer look at Spotify's Super Bowl ads and the latest tech company to announce layoffs. Motley Fool Money starts now.
I'm Chris Hill. Joining me today: Motley Fool Senior Analyst Jason Moser. Happy day after the Super Bowl.
Jason Moser: Happy day after the Super Bowl. I hope that you're feeling as good as I am. Wasn't out causing too much trouble last night, wasn't drinking too much. No regrets. How about how about you?
Chris Hill: Same, although I understand why there is apparently some online petition to get the NFL to change the game to Saturday. I understand why. I don't think the NFL is going to do that, but, and we're going to get into the business of Super Bowl ads in a second.
Jason Moser: Before we do that, can you remind me really quickly? I feel at one point, didn't we, as a company, try, at least experiment with taking Super Bowl Monday off? Did we not try that one year? I feel like maybe we did, or perhaps... I think there was a time there was one year I think we tried that.
Chris Hill: We may have.
Jason Moser: Maybe I'm wrong. It was many, many years ago.
Chris Hill: The fuzzier my memory gets...
Let's start with Twilio, which is going to report earnings on Wednesday after the closing bell but made news today because for the second time in five months, Twilio is cutting its workforce. This morning, the cloud communications software company announced plans to cut 17% of employees. Back in September, Twilio laid off what was, at the time, 11% of its workforce. Founder and CEO Jeff Lawson said the cuts are a painful but necessary step as the company reorganizes its business units.
We've said before that we're going to have more companies, particularly in the tech space, announcing layoffs. I feel like this is also a harbinger of what's to come in terms of companies announcing a second round.
Jason Moser: Yeah. I think we talked about this as 2022 was closing out. We were going into '23, and we were thinking, this is going to be the narrative of, of at least the front half of the year is these layoffs, and I think we were all in agreement that it would likely turn into a second round of layoffs, so to speak.
That's good. If you're a company, you want to take this slow. You don't want to go too far. You don't want to overkill and fire too many people and then, in hindsight, realize that you need some of them back. Taking this step by step makes a lot more sense. It's a lot. If you put this on top of the 10% of the workforce that Twilio already let go earlier, that's 17% additional. They've let go of more than a quarter of their workforce now.
But it makes sense. This is something where CEO Jeff Lawson made very clear in the note that he published the email that he sent to employees. It's a difficult thing to have to do, but the facts have changed. He said, "Both the reorganization and the reductions increase our ability to drive profit and growth, both of which are required in this new environment." It's this new environment where for a long time, these companies were able to get away with a lot. I think those days are probably over, if not for good, I think for a long time to come. We talk about for investors, a great quality to have as investors is to be able to change your mind when the facts change, because the facts change often.
To me, this is a sign that Jeff Lawson is willing to change his mind when the facts change. Now, it's not to say that this is necessarily the silver bullet, this is the magic bullet, everything is taken care of. But I think this is a step in the right direction for the business and, ultimately, investors. Again, it's a shame that you see folks having to lose their jobs because of this, but at the end of the day, I mean, businesses need to exist. In order to do that, they need to be efficient to a degree. For Twilio, as early as it is in its life stage, still needs to get to that consistent and sustainable profitability, and this is one more step in that direction.
Chris Hill: This is a company that is roughly one-sixth the size it was, from a market cap standpoint, less than two years ago. When you look at Twilio and you look at the business and the opportunities in front of it, where do you think this company is going? Because I'm sure there are some people who think that Twilio is on its way to being acquired by a larger tech company. But by the same token, I bet there are some investors that think that this is a company with a pretty attractive-looking stock price compared to where it was.
Jason Moser: I think it is. I think there's always a chance that a company like this gets acquired. To me, as someone who has recommended the company and as someone who owns the stock myself personally, I would much rather watch them do this on their own. I'd rather watch the story play out, sans acquisition, so to speak.
To me, it's interesting to watch this business evolve. I mean, it went from very simple communications, text-based company to now it's communications and software and customer engagement and ultimately viewing themselves as a customer engagement platform. I think today, now more than ever before, it's more like a sales force in that regard. When you start lumping a business into that category, you start to see the market opportunity that exists for a business like this today, which, it's still sub-$5 billion in annual revenue.
Again, going back to changing your mind when the facts change, you see companies, a lot of these tech companies are cutting costs when growth hits a wall. In Twilio's case, they're cutting costs when they're still growing. That's an entirely different proposition. They're still small enough in capturing this nascent market opportunity. They're still growing. You look back to the third quarter that they just reported recently. They reported 32% organic revenue growth, and they're guiding for around 19% organic revenue growth for this fourth quarter that they're getting ready to announce on Wednesday.
I think what 2023 looks like will be even more interesting, particularly when you consider the timing of this announcement that we got today because the glass-half-empty investor might say, hey, they made this announcement today. They're getting ready to guide down to like single digits. This earnings report is getting ready to be pretty bad on Wednesday. I think that's a reasonable assumption.
I'm not saying that's what's going to happen or even in what I believe, but I think the glass-half-empty investor might look at this and say they're getting ready to guide for some challenging growth prospects in 2023, and this is meant to get ahead of that and maybe steer focus away from that. Time will tell, and then we have to wait for Wednesday to see what happens.
But we do know at least that in regard to the results that they're going to report on Wednesday, the 8-K that they released earlier today said that they met or exceeded the guidance that they laid out. We know that revenue growth was, at worst, 19%. Maybe it's better, but maybe it's worse, but really it's more. Let's focus on what they see playing out here for 2023 and beyond, because I think ultimately, that's the big story for this company.
Now, they've gotten some religion on the expense side of the business, and they're going to cut that back. Let's see if the growth is still there because if that growth is still there and they're cutting back on this call structure now, this could prove to be a very opportunistic stretch for investors willing to be a little patient.
Chris Hill: There were some 30-second commercials for the Super Bowl last night that cost more than $7 million, and that's just for the time, that's not for the production of the ad. If they involve celebrities, whatever they're paying the celebrities. I will point out before getting your thoughts on what struck you, either very positively or very negatively, that the most-watched ad from the Super Bowl on YouTube was the Booking.com ad with Melissa McCarthy. Which I thought was an entertaining ad.
But I watch these now, not just as a football fan and that sort of thing, and someone who is interested as a consumer. But for years now have watched these ads as an investor, and just thought, is this a good use of money? The Google Pixel ad, I thought as an Alphabet shareholder, I thought, that's a good ad. That they're showing off the product in a very straightforward way, in a fun way. As an Alphabet shareholder, I was happy with the Google Pixel ad. But whether you're a shareholder of any of these companies or not, what stood out to you?
Jason Moser: Yeah, that's really funny, the Melissa McCarthy ad. I remember that it was a Booking.com ad. I really can't tell you much beyond that. It was a very forgettable ad for me, I guess, in that regard. Even before the game, I think I had Slacked you guys the link to this commercial. We talk a lot about Breaking Bad and Better Call Saul in our little group here at work, and so to see that PopCorners ad was a lot of fun. I'm always a good mark for some good Breaking Bad shtick, and I thought that was terrific. I enjoyed that a lot.
To me, I couldn't care less about Ben Affleck and Jennifer Lopez, but I've thought that Dunkin commercial was awesome. I thought it was great. It reminded me a little bit of the Saturday Night Live spoof on the Dunkin commercial, and so for me, whenever I see that stuff, Ben Affleck, one of his greatest qualities, I think, he's just happy to make fun of himself. He's very self-effacing, I think, in that regard, which is a lot of fun. And that commercial, I thought really hit home for me.
The Booking.com one, I don't know, it never really stood out to me so much. The other one that really stood out and I guess I need to make sure, I assume this is one that was actually aired during the game. But the Brighter Boston Samuel Adams commercial. Did you ever see that one?
Chris Hill: I did not see that.
Jason Moser: Did that air during the game? I'm not even positive it aired during the game because I saw it on YouTube. I assume it aired during the game. But I thought the Brighter Boston Samuel Adams commercial was very funny. Essentially this take on Boston is stereotypically a very rude city with rude people. Hey, listen, I'm a Red Sox fan, so I'm not judging. But this commercial was just a play on just the total polar opposite of that, like a Brighter Boston where everybody was friendly. Instead of dumping a body from the trunk of a car, he's dumping his recycling. I thought that was a very funny commercial.
To me, this was probably one of the better years of Super Bowl commercials. I mean, for a long time, I've been critical, feeling they jumped the shark, but this I felt like it was a better year for them. It's always fun to watch how creative they'll get.
Chris Hill: I also thought, and they have all the money in the world, but whatever money Apple spent on the halftime show, that appeared to be money well spent, because Rihanna, just not surprisingly, put on an amazing show. I'm assuming that that is going to move some product, as they say in the Apple Music division.
Jason Moser: I'd imagine so, and I'd imagine even more so it will push some of her music, particularly whenever she decides to go on tour again. That is something where I think we've seen over the past several years, there has been a very explicit connecting of the dots where yes, the musicians, the artists, they're not getting paid to do this, but the result, the exposure, this really boosts the purchase of their music, the purchase of their touring act. I mean, altogether, it's certainly understandable if you're an artist, why you would do it.
Chris Hill: Also, Chris Stapleton doing the national anthem. Just having him up there, playing the guitar, it was one of those things. Look, whoever they get to sing the national anthem always has a great voice, but just watching it, I was yeah, I think this is what I want from now on. Like it heightens the experience. He's playing the instrument while he's also singing. He did an amazing job.
Jason Moser: I can appreciate that. And yeah, while I know everybody can be critical, let's all just take that really for what it's worth. Just take two, two and a half, maybe three minutes, just embrace whoever's doing it, why they're doing it. Recognize it as a really hard thing to do.
It's like the halftime show. I'm not the biggest halftime show guy in the world; they could ditch it for all I care. But by the same token, man, I fully recognize that No. 1, Rihanna is a very talented individual. And No. 2, the work that went into the choreography of that act... Man, I'm no dancer, Chris, and so when I see something like that, while I don't really care to do it, I recognize the talent and the work that goes into doing it. Hey, recognize it for what it's worth and say, "Hats off to you. You did a good job."
Chris Hill: Jason Moser, thanks for being here.
Jason Moser: Thank you.
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Chris Hill: Spotify has more than 200 million paid subscribers. Despite that, the audio streaming business is having a hard time making a profit. Lucas Shaw is an entertainment reporter with Bloomberg, and Ricky Mulvey caught up with him to talk about Spotify's podcasting strategy and if the company needs to raise prices.
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Ricky Mulvey: Before we get started, I got to note that The Motley Fool has positions in and recommendations for Spotify. We've also got a content partnership with the company. That's not a fun introduction.
Lucas Shaw, you've pointed out in your reporting that Spotify's in the spot where it has a much larger share of the audio business than any streamer does in video. Its biggest competitor isn't even in the audio business -- really, YouTube -- and yet it's losing money every single year. Why is it so difficult for Spotify to make a profit?
Lucas Shaw: Because no music streaming services make a profit. The record industry collapsed, really, when piracy came around and devalued or eroded the value of all music to almost zero. You saw industry profits or industry revenues fall from their peak in 1999 and just continue to plummet throughout the century.
When streaming first came along, the music industry did something that was very smart for their business, where in order for Daniel Ek, the co-founder and CEO of Spotify, to get the rights to music, music companies, they created this model whereby Spotify and other music streaming services would pay music companies more than 70% or about 70% of their revenue just out the door.
The challenging part with that is it means that no matter how Spotify or how big Spotify gets, it's always spending, it's always giving 70% of that money to these rights holders. You think about it in comparison to a business like Netflix, which is more of a fixed-cost business. They've had to spend a ton of money to get users and make the shows, but at certain point if they want as they're doing right now, they can just stop spending, and they're going to hope that they can keep growing their revenue. Spotify can't do that. They keep growing the revenue, they're also growing their costs.
Ricky Mulvey: With respect to Spotify, though, they essentially have a model that so many marketers would kill for, which is half of their users are paid members. It isn't a surprise for these music royalties to be expensive. This is a totally unfair comparison, but grocery stores, for example, 80% of their expenses are out the window, and then they have to essentially run a grocery store. Has this been a surprise for Spotify, or was the hope that podcasts and audiobooks would swoop in, and that would eventually turn them into being a profitable company?
Lucas Shaw: Yeah. I think they had hoped that they would figure out how. Look, you have hundreds of millions of users. Spotify, I think, has succeeded in that sense, beyond Daniel Ek's wildest dreams. They figured that they would learn how to make money, that they experimented with enabling direct uploading, where artists could just put their music right on Spotify instead of somewhere else. It seemed like a good idea, but that really only works if Spotify is the only distribution platform that matters. Obviously, YouTube matters a lot, Apple Music matters a lot, Amazon matters a lot, and now TikTok, in a different way, matters, and so that wasn't really possible.
Maybe they had hoped that they would get music companies to eventually give up, see how good Spotify was for them, and give up more of their share. They've had a little bit of success there but not enough to make a huge difference. They've experimented with charging music companies to advertise within the platform. That's generated some revenue, but it hasn't changed the margins completely.
This is really one of the big reasons that they ended up going into podcasting and now audiobooks, because they had this big pool of users, and now they needed to create a source of revenue that the music industry couldn't take. And so one of their key strategies has been, if they can build a big advertising business that has ties to podcasting, that's revenue that they can keep her themselves or share with those content creators, but have a different financial structure than they have with the music business.
Ricky Mulvey: Seems like the podcast strategy fell into two buckets. One was by outright buying studios like The Ringer, Gimlet, Parcast. The second is this Las Vegas residency approach that I'll call, which is you have an established podcaster with a large audience, and then they sign over exclusive rights to Spotify -- Dax Shepherd, Joe Rogan being examples of that. Why do you think this hasn't been as effective as Spotify would like? Why do you think they need to pivot?
Lucas Shaw: They would push back on the idea that it hasn't been effective. They would say Joe Rogan is a really successful podcast, and those acquisitions got us in the game. And now you look at it, and rather than go at it on a deal-by-deal basis, they would say look at it holistically: we now are the biggest podcast platform in the world. There are more than 100 million people who listen to podcasts on Spotify. We're building up markets in all these places. I think that's true. It's not as though this has been just some catastrophic failure.
What I think Spotify got wrong, though, and they really only learned through failure, is they were hoping that they could create a bunch of their own hit products. That they would do deals with famous people, and that those shows would become hit shows. That they would buy these studios, and those studios would create a bunch of new hit shows.
While there have been a few moderate success stories, for the most part, the most successful podcasts that they've brought on are podcasts that already had a following and a platform. They spent a lot of money on projects that didn't really move the needle.
The other thing that I think may have surprised them a bit is that they hoped, I think, that podcasts would lead to a huge surge in subscriptions. But the weird thing is that they didn't really create a subscription model for podcasting, which I think some people think they should have tried. And now Apple is doing, I think at best, mixed success.
It took them a while to figure out that their business around podcasting was going to be advertising and they needed this ad tech around it. I think they made the classic mistake of going into a new industry, spending a lot of money, a lot of it was misspent. But they've figured it out and figured out what's going to work, and it's really now, I think, up to them to find the best way to make money from these podcasts listeners that they have in the platform because that's the problem.
Ricky Mulvey: It seems like the biggest success for original podcasts has been in fiction. I remember a couple of years ago hearing some podcast industry executive saying that was where they were really bullish on, and I'm surprised to see Spotify not essentially go into that more. They have a deal with DC, and Batman Unburied seems to be a big success for them. But have you seen successes in their strategy so far? I mean, it's easy to dunk on the celebrity podcasts where what is the deal? Obamas come in, do 15 hours of audio, or the royals do a similar thing, and it doesn't pick up the audience that they'd like. But have there been examples of not just failures but successes through the strategy?
Lucas Shaw: Yeah. I mean, look, I think the Obamas has a broader deal maybe people aren't so satisfied with. Michelle Obama's one show was really popular. The problem is is that it was limited run, so only so many episodes. She didn't produce a bunch of new seasons. Spotify has pushed back on this. But I think people at Spotify thought like, oh, if we can get Michelle to host 16 episodes a year or something or even more than that, like, that would be amazing. She was like, Well, I'll give you a season of a show, and then I just want to produce a bunch of shows that lift up other voices. There's a bit of a strategic disconnect there. But her show works similarly, I think the Meghan Markle show has an audience. But they spend a lot of money for one show that has a pretty small number of episodes and isn't a huge needle mover.
I think it's been a lot of things like that on the celebrity front. You know, some of the acquisitions -- look, The Ringer was a good deal. The Bill Simmons Podcast is still very popular. That whole network, I'd say, is one of, if not the leading network in sports podcasting -- to some extent, in pop culture podcasting.
I guess -- full disclosure -- I contribute to a show in The Ringer's network.
Parcast, which was another studio they bought, has had some successes. The real struggle from an acquisition perspective they had was they bought this company, Gimlet, which was supposed to be this home for high-end podcasts, audio documentaries. Its biggest show, Reply All, went down and got destroyed by this internal scandal or dispute, and Gimlet really didn't produce any new hits. And I think was, in a lot of ways, a sign of how hard it was to break through with new shows.
Ricky Mulvey: You've mentioned that Spotify has had shifts from trying to be like Netflix now trying to be a little bit more like YouTube. Something that strikes me, though, is it's also one thing it's not trying to be, and that's radio. They've pulled back on this playlist called The Daily Drive, it seems, where you'd get a little bit of news, music, short-form podcasts, and also live talk spaces. Why the move to be more like YouTube?
Lucas Shaw: Well, because of a lot of what we discussed. Like, the Netflix strategy was around: Let's create these big original shows that will mean that people feel that they have to subscribe to Spotify. I think they quickly realized that, one, there was only going to be so much user acquisition that way; two, it was hard to create new hit shows; and three, a lot of those originals are comparatively expensive. Like, podcasts are not as expensive as making a TV show. But Spotify, at the same time it was pursuing that strategy, was buying these different tools and tech companies for distribution of podcasting and advertising sales.
You think about the core of Spotify, and it's really more of a classic tech platform than a media company. Netflix still has a platform, but almost all of its money is spent on original programming. That's where the majority of its employees now work. It's more of an entertainment company than a tech company. Spotify, just philosophically, has always been more like a Google, like a YouTube, a [Meta's] Facebook, an Instagram. It's a platform where it wants anyone to go and upload things. Now, it does create and fund some of its own projects, but those are such a small amount of the overall output. There's the philosophical alignment.
But also, again from a business perspective, because the subscription part of podcasting, they didn't really crack. Advertising is really the primary way most podcasts make money, and so I think Spotify has seen an opportunity that if they can become the biggest podcasting platform and have ad tech that everyone has to use and build an ecosystem like YouTube, where any advertiser that wants to reach young people through audio is going to do a deal with them, and anybody who uploads is going to share their ad revenue with them, that could be very lucrative. They're certainly not there yet, but I understand the potential and the target.
Ricky Mulvey: I'm also curious to see when you see more local businesses advertising on Spotify.
Lucas Shaw: You mentioned that you feel like they don't talk about radio. I think they do see themselves a lot like radio. Like, that radio advertising money is something that they want to bring over. But I think the reason that they don't make the comparison, sometimes, to radio because they have talked about, Daniel Ek has talked about, there's $18 billion in global radio ad spend or whatever that's going to come over. But they don't want to limit themselves to radio. If I think there is a concern that if they're just fishing for those advertisers, it's going to be not as big a business as they want to be. Like they want to be seen as something that could be $100 billion business, not a $30 billion business.
Ricky Mulvey: You surveyed about 50 people in the music industry about trends, and there was a broad consensus that Spotify needs to raise prices. Did that answer surprise you? And do you think that has to do with the cost of music royalties?
Lucas Shaw: It definitely didn't surprise me. People have been frustrated by the cost of Spotify, and well, I should say, when I say people, I mean executives in the music industry have been frustrated by the cost of Spotify for a while. Also, you look at peers: Apple has already raised prices. One of the reasons that people thought that Spotify might not is because it was trapped a bit by its competition. Its biggest competitors are these massive tech companies that don't care as much that they're not making money from audio, because Google makes a lot of money from search, and Apple makes a lot of money from phones, and Amazon makes a lot of money from selling you pretty much everything.
As soon as some of those peers moved, it feels inevitable that Spotify will do it too. I think the question is, how much, from a pricing perspective, they can get away with. Look, maybe they'll continue to try to present themselves as the more affordable option. But there's long been frustration, especially if you look outside of wealthy territories, that a lot of the user growth Spotify's had recently has been in poorer countries where they're not charging very much. The user number looks great, but the revenue number for the music companies isn't so great.
Ricky Mulvey: Speaking of personalized recommendations, Lucas Shaw has a newsletter called Screen Time. He also contributes to a podcast called The Town. Your colleague, Ashley Carbon, also going to recommend hers, it's called Soundbite. Both are worth a follow.
Lucas Shaw, thank you for your time.
Lucas Shaw: Thanks for having me.
Chris Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill has positions in Alphabet, Apple, and Twilio. Jason Moser has positions in Alphabet, Apple, and Twilio. Ricky Mulvey has positions in Meta Platforms, Netflix, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Booking, Meta Platforms, Netflix, Spotify Technology, and Twilio. 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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Motley Fool producer Ricky Mulvey talks with Bloomberg entertainment reporter Lucas Shaw about the state of Spotify's business, its podcasting strategy, and whether it needs to raise subscription fees. It reminded me a little bit of the Saturday Night Live spoof on the Dunkin commercial, and so for me, whenever I see that stuff, Ben Affleck, one of his greatest qualities, I think, he's just happy to make fun of himself. The second is this Las Vegas residency approach that I'll call, which is you have an established podcaster with a large audience, and then they sign over exclusive rights to Spotify -- Dax Shepherd, Joe Rogan being examples of that.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: How Twilio is cutting costs. Motley Fool producer Ricky Mulvey talks with Bloomberg entertainment reporter Lucas Shaw about the state of Spotify's business, its podcasting strategy, and whether it needs to raise subscription fees. When streaming first came along, the music industry did something that was very smart for their business, where in order for Daniel Ek, the co-founder and CEO of Spotify, to get the rights to music, music companies, they created this model whereby Spotify and other music streaming services would pay music companies more than 70% or about 70% of their revenue just out the door.
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When streaming first came along, the music industry did something that was very smart for their business, where in order for Daniel Ek, the co-founder and CEO of Spotify, to get the rights to music, music companies, they created this model whereby Spotify and other music streaming services would pay music companies more than 70% or about 70% of their revenue just out the door. Advertising is really the primary way most podcasts make money, and so I think Spotify has seen an opportunity that if they can become the biggest podcasting platform and have ad tech that everyone has to use and build an ecosystem like YouTube, where any advertiser that wants to reach young people through audio is going to do a deal with them, and anybody who uploads is going to share their ad revenue with them, that could be very lucrative. Its biggest competitors are these massive tech companies that don't care as much that they're not making money from audio, because Google makes a lot of money from search, and Apple makes a lot of money from phones, and Amazon makes a lot of money from selling you pretty much everything.
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Chris Hill: There were some 30-second commercials for the Super Bowl last night that cost more than $7 million, and that's just for the time, that's not for the production of the ad. But for years now have watched these ads as an investor, and just thought, is this a good use of money? Chris Hill: I also thought, and they have all the money in the world, but whatever money Apple spent on the halftime show, that appeared to be money well spent, because Rihanna, just not surprisingly, put on an amazing show.
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Breaking Down the Latest Wall Street News: AI to Pizza
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In this podcast, Motley Fool senior analyst Emily Flippen and Motley Fool Chief Investment Officer Andy Cross discuss:
The growing AI battle between Microsoft and Alphabet.
Lyft shares falling 35%.
PayPal CEO Dan Schulman announcing his retirement.
CVS Health buying a primary care business for $10 billion.
The latest from Disney, Cloudflare, Chipotle, and Pepsi.
Two stocks on their radar: Domino's Pizza and Boot Barn.
In addition, Andrew Brandt, a former NFL executive and current director of Villanova University's Moorad Center of Sports Law, discusses the business health of the NFL, how the playoffs may change, and more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walt Disney
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This video was recorded on Feb. 10, 2023.
Chris Hill: We've got stock analysis investors want to hear and a couple of predictions NFL fans probably need to hear. Motley Fool Money starts now.
From Fool Global Headquarters. This is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill, joining me in studio, Motley Fool senior analyst Emily Flippen and Andy Cross. Good to see you both.
Emily Flippen: Hey.
Andy Cross: Hey, Chris.
Chris Hill: We've got the latest headlines from Wall Street. We will dig into the business of the NFL with our guest Andrew Brandt. As always, we've got a couple of stocks on our radar. But we begin with the rise of the machines. This week saw two of the biggest companies in the world, Microsoft and Alphabet, hold events centered around artificial intelligence. On Tuesday, Microsoft showed off a new and improved Bing search engine with ChatGPT. Later in the week, Alphabet held an event to show off Bard, the company's new AI chatbot. Unfortunately, the demo included the chatbot making a mistake and shares of Alphabet fell nearly 10%. Emily, let me start with the stock, is that an overreaction by investors, 10% off of Alphabet shares?
Emily Flippen: On one hand, of course, you want to say that's ridiculous. Alphabet's a dominant company, basically owns search. They're going to figure out AI if AI is the next big thing. But at the same time you're like, you had one job. You had one job, you had to respond to this demo and the one thing you did had a mistake. It's a gunshot reaction. I think in this case, it's probably justified over the short term. Doesn't make a difference for either of these companies over the long term, definitely not. But it does just show one thing which is, can we stop talking about AI now? Because AI is not smart enough. It might be artificial intelligence, that doesn't mean that it's not dumb.
I think if we can see anything from ChatGPT to Bard, it's that we're not quite there yet when it comes to artificial intelligence, especially when it comes to replacing our basic search. You know, this is my uneducated opinion, but my two cents here, I think something like ChatGPT works well when there is simple facts. When you're looking at coding, for instance, that is black and white, the code works or it doesn't work, artificial intelligence can help you get there. But when you're asking a question for which there is no true source of truth. Everybody following my homebuying journey, I'm shopping for home insurance. That search takes me hours to get down to find one person that I'm going to go with, what I want the policy to look like. There is no way that AI, as it exists today, can replace that. I'm tired of acting like it is.
Andy Cross: Yeah, this is, for me, this is more, less about ChatGPT, connection with Bing for consumers, and really Microsoft's interest in really integrating artificial intelligence to all of the tools they have through in their entire corporate suite. I think that's really where they are seeing the value of my mind. They were seeing the value and I think that will actually be beneficial to them. The risk to Google, of course, and I support Google and I still think it's a business that you can own and take advantage of price drops like this to buy.
They've been so dominant in search, Chris. I think the market saw this as a big existential risk. Google has been investing in AI for years probably. Data is their thing, so they will get this right, they will integrate. Bard was a big mistake, a PR nightmare I'm sure, for them, but the AI push to integrate that with search into their business, I think is just beginning, but for me, it's beyond ChatGPT and really where artificial intelligence goes. All these big companies, we haven't really heard anything from Apple about this, either. I can see this on the consumer side, Apple really starting to lick their chops on the AI side.
Chris Hill: But you have to believe Apple enjoys watching two competitors going at each other instead of Apple?
Andy Cross: I think so, too, and I'm sure Amazon's not really sweating that after this week, either.
Emily Flippen: Yeah, it's all fun until you get pulled into the fray.
Andy Cross: Exactly, that's right.
Chris Hill: Let's get to some earnings news and we will start with Disney, the parks and experiences division carried the day in the company's first-quarter profits and revenue beating expectations. In addition to announcing layoffs of 7,000 employees, CEO Bob Iger also said Disney plans to cut $3 billion in content costs. Andy, if there's one thing Wall Street likes to hear about, it's moving toward higher profitability.
Andy Cross: Bob Iger was very adamant about pushing toward profitability for Disney+, because obviously with all the billions they've lost on that's been a sore point for him and for shareholders for sure. Chris, there was so much in this report. I was just trying to digest it all from restructurings to reporting on the parks that you mentioned, the parks revenues were up 21%. That even includes reducing the U.S. peak holiday capacity by 20% to really improve the guest experience. Operating margins were up to back the 35%, so very impressive on the park side. But as you mentioned, really the restructuring with that massive plan for Bob Iger to really bring back the brands and the creative side in charge at Disney, which under previous CEO Bob Chapek got separated.
It was more centralized over the business side. Trying to bring back the authority as well as the accountability to the creative side under the ESPN business, under Disney entertainment, and Disney parks. That was a big part of it. Also a little bit of a nod of maybe returning to the dividend. The dividend was cut. Maybe getting back the dividend, I don't think it will be nearly as big as it was before, and they implied that. But still getting back to the dividend, reducing the costs that aren't effective. They're going to still spend billions and billions on content, Chris. But definitely getting that in line toward profitability to Disney+ and really bringing back the creative impetus to drive subscriber growth, drive the entire core part of Disney on the creative. That's what Bob Iger said from months ago. He said he was going to do this. They also implied that they would have the restructuring and now they announced it.
Emily Flippen: Well you have to think they're frothing at the mouth, ready to go with these new subscribers because of all the flak Netflix is getting for potentially changing the way that they're instituting password sharing. If I was Disney at this point, I'm looking for a PR move to say right now, hey, we don't care, if you share passwords, just stay subscribed.
Chris Hill: Lyft posted decent revenue numbers for the fourth quarter, but shares of Lyft fell 35% on Friday after those results came with weak guidance for the current quarter. Not the same case for Uber, which posted a surprise profit in its fourth-quarter report earlier in the week. Emily, we think of these companies, I mean, they are in the same business that came out at the same time. We think of them as being similar. You look at these very different results, though, boy, Lyft is in trouble.
Emily Flippen: Yeah, from a consumer perspective, there's virtually no difference. When I hail an Uber, which I refer to as Uber regardless of where, I'm pulling it, but I open up Lyft and I open up Uber, I compare, I pick the cheapest or the fastest, whatever it may be. But these are actually two entirely different businesses and this is a good example their most recently quarterly reports about why. Uber has a level of scale efficiency and then additional segments that Lyft just doesn't see right now, which is causing the difference in operating performance. Lyft, as you mentioned, they doubled in losses year over year to over $600 million. Uber in comparison their operating loss is only around $120 million.
They're only profitable because of their equity investments, but their losses are shrinking at Uber and management is confident they're going to get to adjusted profitability this year, whereas Lyft is still going through their cost-cutting phases and efficiencies, trying to understand how they're going to reach scale. Uber really outperforms just in terms of efficiency. You can look at it in terms of their employee count, too. In their global business, they have a ton more employees than Lyft, but they pull in 25% more revenue per employee contributing to that scale. Uber just outperforming Lyft here.
Chris Hill: PayPal's fourth-quarter results came in higher than expected. But that took a back seat to the announcement that CEO Dan Schulman is leaving the corner office later this year, Andy. It's been a rough let's just call it 12 to 18 months for the overall business. What is your thought first and foremost on Schulman saying, "I'm leaving?"
Andy Cross: It's interesting how he will leave, Chris, he announced that he will retire at the end of the year, the board of directors will undergo a search and they'll have plenty of time for the transition. I guess a little bit different than maybe we've seen recently with some of these different transitions we've seen with co-CEO and not co-CEO, and of course we had the Bob Iger and Bob Chapek rough handoff. So, he's 65 years old. He's been doing this for a long time. I can't say it's totally surprising that he'd want to hand this off, but I'm impressed that he announced it and now he's going to be open and transparent as we go through the quarter, I imagine will be a lot of questions about that.
The quarter was actually pretty strong, Chris, I think we're seeing that stabilizing in margins, the revenues were up 7%, 10% in the U.S., 6% internationally. The transaction take rate was about flat. Earnings per share was up about 11%. That's above their own guidance and they guided for a pretty healthy growth in earnings this year as they continue, they had to lay of 7% of their workforce, they're in their process doing that. They indicated that 2023 is off to a very good start. I think as they continue to expand the reach of both Venmo and PayPal partnering with now Venmo through Amazon. They're continuing to innovate into that space. It's very competitive. You're not paying much for PayPal now at 19 times earnings for a company that probably can grow in the low- to mid-double-digits, and that's a pretty good as they find the new CEO who will obviously have a different charge and different company takeover.
Chris Hill: PayPal is a $90 billion company, as you say, this is a very competitive space. How attractive is this job? Is this a situation where Schulman and the board of directors are going to get their pick?
Andy Cross: I think it is still attractive. Imagine that a CEO of a company like this in that space. PayPal and Venmo and those brands, very dominant, when we think about wallet search and checkout. I think it's very attractive and take on of course, it's a different business than when Dan was running at 5-10 years ago. Now it's much larger financial institution competing against so many different payment players in the space.
Chris Hill: Coming up after the break, we've got the latest in restaurants, healthcare, and just in time for the Super Bowl, snacks. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill here with Emily Flippen and Andy Cross. Cloudflare ended the fiscal year on a positive note, shares of the cloud services provider getting a boost due to record operating profit in the fourth quarter. Emily, when you look at Cloudflare, what stands out to you?
Emily Flippen: Well, Cloudflare is an incredible business, has a lot of white space. But if I was an investor, I would not be looking at this quarter and having a victory lap because I think the lot of the reason why the stock is up and stock has been up over the past month or two, is largely due to valuation less so than business performance. Cloudflare, for instance, the stock is up more than 40% so far in 2023. That's true for a lot of this unprofitable tech-esque businesses, Cloudflare just being one example, but the quarter was good. As you mentioned, revenue and earnings surpassed expectations.
The business generated the highest free cash flow it has ever generated in the most recent quarter. All of those things are great, but let's not put the cart before the horse here. Cloudflare and a lot of these growth companies are facing one big challenge which is growth is slowing down. Now growth is still more than 40%, that's incredible. I don't want to downplay that, but it is slowing. Gross margins on both the GAAP and adjusted level are falling as well. Operating margins on a non-adjusted level are also falling. The business's dollar-based net retention rate has contracted every single quarter for the last four quarters.
Still incredible results. Let's be clear about that. That dollar-based net retention rate's still more than 120%. Those are metrics that other tech companies would kill to put up. But it is just showing a general trend, which is a lot of these companies are facing the challenges of a slowing economic environment and their businesses are slowing as a result. When you see the share up price up more than 40% this year, I wouldn't think to myself the business is 40% better than it was in December. I would think to myself, the valuation and the expectation for this company got so low that it's causing this probably short-term bump in the share price itself.
Chris Hill: Shares of Chipotle down 6% this week after fourth-quarter profits and revenue came in lower than expected. Same-store sales were also. Andy, it is not often that Chipotle's results disappoint Wall Street, but this was one of those times.
Andy Cross: It was Chris, 5.6% on the same-store growth versus 6.9% expected. That had an impact on both the revenue and then obviously their profitability, even the restaurant operating margin at 24% was up from 20% a year ago, driven by lower delivery transactions, higher menu prices, and lower avocado prices, but offset by higher dairy rice, beans, and salsa prices as well. They opened 100 new stores, that included 90 with a Chipotlane.
The Chipotlane is very interesting. Since starting that in 2018, new restaurants' productivity that has Chipotlane has improved about 1,000 basis points. They see a lot of productivity. A lot of the stores that are opening will include the Chipotlane. Prices though have been increasing. They've increased very aggressively on the pricing side, but up 15% over the past year. Maybe that is starting to have a little impact on consumer demand and that's showing up maybe in the comp store growth, but there's certainly making it up on the profitability, too.
Chris Hill: But Brian Niccol, the CEO, made some comments and you go back a year and Niccol talked about how this is a business with pricing power. They're going to raise prices and test those limits. His comments this week make me think that they've hit the upper limit of that and they're probably holding the line on prices for the foreseeable future.
Andy Cross: That's exactly right, Chris. He said he expects the same-store growth to moderate in the second quarter and the third quarter, they've had a very good start to the year. But in the second quarter and third quarter, because those prices, they increased last year, they'll be lapping those, so they won't have those again. That will be a little bit of a drag on the growth. Interesting to note is that they are really expanding the menu. They including a lot more of these lifestyle bowls. I've always liked the simplicity of the Chipotle menu so I do worry a little bit that the menu is getting a little bit more complex than in the past.
Emily Flippen: On the contrary, and I know right now it's not the best time to say this because the price of eggs are insane, but breakfast is still an option. You know, expanding it there; don't charge more, offer more.
Chris Hill: Two big headlines this week for CVS Health. One is that fourth-quarter profits and revenue came in higher than expected. The other is that CVS Health bought primary care provider Oak Street Health in a deal just north of $10 billion. Emily, which is the bigger story to you?
Emily Flippen: Yeah. Fourth-quarter results, revenue up 10%, another great quarter, pharmacy, healthcare, it's all doing well. Let's talk about these acquisitions. CVS Health has a long history of making really bold acquisitions. In fact, it was a retailer that didn't get into the game of healthcare and pharmacy, except through a number of really expensive, large acquisitions and it's done wonders for their business. It's the fastest-growing segment of the company today. But they've kept up that strategy in recent years.
The largest acquisition being Aetna Health in 2018, which was a nearly $70 billion acquisition, heavily levered up CVS' balance sheet. The business has been slowly paying down that debt, but the problem is their debt load is still hanging around $50 billion today. When you see two large acquisitions coming through, this one for Oak Street Health that I believe is around the $10 billion acquisition alongside their pending $8 billion acquisition of Signify Health. On one hand, I say healthcare has been great for them. I like seeing them continuously push in that direction. On the other hand, I'm saying, man, that's a lot of acquisitions, that's a lot of debt. They better know what they're doing.
Chris Hill: Shares of Pepsi up a bit this week as fourth-quarter profits and revenue came in higher than expected. The beverage and snack giant also issued upbeat guidance for 2023. Though interesting to note, Andy, similar to Chipotle, Pepsi basically said they are done raising prices for the year.
Andy Cross: Very similar to Chipotle. Chris, the fourth-quarter gross margin was flat with a year ago, which tells me that they have been able to offset some of the input costs that CEO Ramon Laguarta had talked about because those costs had increased. They've had that pricing increase. But also implied that it's going to be a little bit dicey going throughout the year. They're going to be very cautious on their pricing with the consumer in a certain state, but it was a very strong quarter with revenues up 11%.
On the organic revenue side up almost 15%. They saw growth. Frito-Lay was up 18%, Quaker Foods was up 10%, Pepsi North America was up 10%. That really showed up now both on the growth side and on the profitability side, and they increased the dividend or at least plan to increase the dividend by 10%. That's the 51st consecutive increase by Pepsi. Shareholders would like it, like I do, for that dividend will be appreciative of that increase.
Chris Hill: We talk about November-December being such an important time of year for the retail industry. Do you think about the business of Pepsi's, and they have it all year round. People are loading up on beverages and snacks during the holidays. We got the Super Bowl this weekend. Pretty soon we're going to be talking about, well, it's going to be Memorial Day, got to start grilling.
Andy Cross: Well, the other area, they saw some really interesting shifting growth as we were stuck in our houses, essentially during COVID and we started shipping more and more snacks. I know my family started shipping more box snacks and we just have big boxes of Frito-Lay snacks and chips for the kids, just for the kids, showing up on our doorstep. That was a shift and now they're going to start to see that, but they're, so why and they have such good distribution that it's going to be a good spot for Pepsi to plan.
Chris Hill: Andy Cross, Emily Flippen. We will see you a little bit later in the show. A big change could be coming to the NFL playoffs details after the break with our guest, Andrew Brandt. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. I'm Chris Hill. Andrew Brandt is the director at the Moorad Center of Sports Law at Villanova University. He's a columnist at the Monday Morning Quarterback and host of the Business of Sports podcast. He's a busy guy, which is why we always appreciate when he takes time to join us, Andrew, thanks for being here.
Andrew Brandt: Always a pleasure. As I said, we get together usually this Thursday, Friday, Saturday before the Super Bowl every year, and it's always a nice visit.
Chris Hill: Let's start with Roger Goodell, the commissioner of the NFL, just had his annual State of the League address press conference. I was saying to you earlier, I feel like the NFL is stronger than it's ever been. I just wonder if the NFL were a public company, what would they even list in the risk section at this point? By your observation, is the league at the height of its powers?
Andrew Brandt: We've talked about threats and risks to the NFL over the years, even with you before. One thing that always came to mind earlier was health and safety and concussions. Even beyond concussions, we had the most serious health event, maybe in the history of the league a few weeks ago in Buffalo, I'm sorry, with Buffalo against Cincinnati. That seems not a memory, but that seems not front-and-center anymore. They seem to have moved past that. They moved past whatever downside there was to the Colin Kaepernick situation. It may be Chris where it's just kind of too big to fail.
It's become such a monolith. I say that because I watched that press conference from Commissioner Goodell and it's like why do we even have this? He's just saying bland unrevealing corporate statements that don't reflect any depth. He thinks the officiating is as good as ever. He thinks minority hiring is as good as ever. He thinks the safety thing is as good as ever. He has no concerns about any of the concerns that the media asks. In some ways, hey, they are a monolith as the most popular league in the country, by far the most watched league by far, the most profitable by far, the biggest revenues by far, the best collective bargaining agreement, the best media contracts, et cetera.
Chris Hill: I'm glad you mentioned his comments on the state of minority hiring and refereeing because those were, and I get that part of his job is to just sort of take some hits on behalf of the NFL owners.
Andrew Brandt: Right.
Chris Hill: I even get that it's not his job to say particularly interesting things, but the comments on those two topics in particular, just struck me as an opportunity to at least say, hey, we can be doing a better job on this. He didn't even go that far.
Andrew Brandt: No. Quickly look at each one. The minority hiring, obviously people focused on the head coach. That hasn't been stellar results in recent years. For league, it's 70% African-American and whatever the numbers have been in recent years, they haven't been great. But you factor in Ron Rivera, minority hire, who is Hispanic. Mike McDaniel, hired last year, who has some minority blood and in his heritage. You have a couple of minority hires this year, so you're getting up there in terms of salvageable numbers, but no one feels like it's a representative sample. But there is positivity on the management side because there are now eight general managers and/or presidents that are African-American.
That's one-quarter of the leagues, that's 25%. That's a healthy number. I'm sure Goodell harped on that and saying that, but it's taken a while. There has been minority where hiring ups and downs since the Rooney Rule was in place in 2001 when I was in the league and it was more like, hey, you guys got to interview a minority when you hire a head coach. We're like, OK, sure. But as we've talked about before, what do you do when ownership is dead set on a certain hire and no one black, brown, green, yellow, white is going to change that person's opinion? That's happened a few times and then these minority interviews truly become sham interviews. I don't know if we have a solution for that.
Chris Hill: And the referee?
Andrew Brandt: Didn't look good. In the biggest stages of the year, especially at Cincinnati, Kansas City game. It's a hard job. Everyone has to realize that and we're seeing things in super slow motion and the referees are seeing in real time in the cold, people much younger, much more active, fit than them. When he says there's as best as it's ever been, that's where you have to take issue with it. You can say it's a hard job. You can say no one ever gets it right. You can say there's human error. But, best it's ever been, that one got me.
Like we had not only that game, but other games in the playoffs. Side note, Chris, I don't understand the all-star crews. In other words, they are crews throughout the year that go from game to game, same referees, same line judge, same back judge. A group of 10 people that travel throughout the year. But once you get to the playoffs, it's quote, "all-star" crews. An umpire from this crew, a back judge from this crew, a line judge from this crew. I don't get it because cohesion is a big part of that. That would be a question I would ask like, why are we doing this in the biggest games of the year?
Chris Hill: In terms of the finances for individual franchises where I live when one of the big stories is the expectation that sometime after the Super Bowl, Dan Snyder is going to put the Washington franchise up for sale. You tell me how many billions of dollars is this franchise likely to sell for? Seven, eight?
Andrew Brandt: Personal note here, I'm the city where you're coming from is where I grew up and my fondest memory is going to RFK stadium with my dad as a kid, Washington Redskins fan diehards, we were so my friends and family have all been asking me that question for years and years. When can we have a new owner? He's not popular as everyone knows. There's litanies of lawsuits against him, there's investigations that, one that got buried and one that's ongoing, Congress has looked into him. With all that as a background, it does appear we're inching toward a separation. Now, all we know is Bank of America is pursuing potential transactions. That can mean a minority share, that can mean a majority controlling share, we don't know.
One thought I had was related to your question where Daniel Snyder wants to see the price before he decides I'm selling this much, I'm selling this much, I'm selling out, I'm getting out, taking my money and run. We'll see. The reports came out when the bidding opened, the first round of bids were due in December 23rd, the reports were up to $6.3 billion. That doesn't mean all of them were up to 6 and that doesn't mean there won't be more coming in higher than that. But you mentioned the seven number that's been floated around for context. The Denver Broncos sold for 4.6 billion to the Walton family, the Walmart Family, one of the richest families on earth. That was a multiple of two times what the previous sale was, which was the Charlotte I'm sorry, Carolina Panthers to David Tepper for 2.27 billion. We're seeing this economic geometric growth so far. We'll see if it applies to their commanders as well.
Chris Hill: Jeff Bezos is one of the names flooded out there as a potential owner, whoever it is. Just for the sake of this conversation, let's assume that it's a completely new majority owner of the team. Any new job has its adjustment period. What has been your observation with new NFL owners, whether it's the length of the learning curve or just to the extent that you see common mistakes or realizations that they go through?
Andrew Brandt: Yeah. This one's hard to generalize because we do have owners come in and they are very, whatever the word is, submissive, docile, wanting to learn, wanting to spend time. I think of Arthur Blank when he came in on in the Atlanta, Falcons coming in from Home Depot and all the success, but he was very studious in what I observed in owner's meetings, learning, taking notes, and talking to more senior owners. This was before my time, but as everyone knows then you'd have an owner with tremendous gusto and bravado like Jerry Jones, who's coming in like a bull in China closet swept out Tom Landry, swept up Gil Brandt, swept out the whole Tex Schramm, the whole former Cowboys, and brought in his college coach Jimmie Johnson. It's different for that.
I think we've seen in recent years owners wanting to get on the map quickly. If we could for a minute, just transition to our timing because one of the biggest trades in NBA history happened this week where the great, I think one of the top 10 players in the modern era, Kevin Durant is traded to the Phoenix Suns who just got a new owner within the last month, a young guy, Mat Ishbia, a 41-year-old mortgage lender. That's quite a splash first move. You see it in all types where someone coming in will have a learning curve, but they may just want to go for it and use whatever bravado they have just to get it out there.
Chris Hill: Before we get to the big game, I want to ask you about the conference championship games because we had the prospect this year --
Andrew Brandt: Yeah.
Chris Hill: of a neutral site for the AFC Championship game. It was going to be set in Atlanta. It didn't work out that way, but the league prepared for it very quickly just in case they had to. Now it raised this prospect of future conference championship games moving to neutral sites. I see the economic reason for doing that but it also occurs to me, Andrew, that the NFL, more so than maybe any other major professional sports league in America really does a great job of rewarding regular season performance. I mean, every week in the NFL matters, every game matters, and if you've earned the No. 1 seed, you've got home field through the playoffs. I don't know. Where do you think this is going and how do you think owners will react?
Andrew Brandt: Well, two things. Home security is very important. We have it right now. Kansas City and Philadelphia were the top seeds. All they had to do was win two home games, and here they are in Phoenix for the Super Bowl. I've been very vocal about this and getting a lot of arrows thrown at me because I say that neutral-site championship games are an inevitability. I say that not to advocate for it, but to say the reality of the business of sports and business of the NFL is you have to.
It is going to have so many opportunities and it happens in college. College football playoffs is two neutral sites then a neutral site championship. March Madness is 64 neutral sites. It's going to happen and people say, well, how are they going to make more money? Well, let me just say, Philadelphia and Kansas City had a notice of the championship game this year for four days. Imagine knowing where the championship's game is going to be for eight months or a year and all the sponsor activation you could do, all the ticket sales you could do. They said that Atlantic game had sold out 50,000 tickets not knowing who was going to be in the game.
These are the things that could happen. Think of three Super Bowls instead of one. There will be bidding for the game, there will be hotels bidding, I mean, the whole thing. That's why I don't think the owners are going to turn down that revenue stream eventually, not this year, not next year. But I think that will happen. I know that upsets people. But that's just, whoever thought we'd have a 17th game in the NFL, whoever thought we'd have championship games presented by TurboTax that's just where we are.
Chris Hill: If you had to put a little wager on Super Bowl 57, what would you be wagering on?
Andrew Brandt: I talk to you from my home outside of Philadelphia, but that's not the reason I'm going to say this. I think they are a juggernaut. I think it's the Eagles' year and everyone else has been living in it since September. I've watched a lot of Eagles games and frankly, a lot of them have not even been competitive, including the two playoff games. They outmanned the Giants of course and the Philadelphia's quarterback got hurt, but he got hurt because the Eagles got him hurt. I think beyond Pat Mahomes, I don't see a lot of match-ups that favor the Chiefs.
Now, of course, Pat Mahomes is Pat Mahomes, but Jalen Hurts is right there, not too far behind. I like the Eagles, I think they have been historical, good; offensive line and defensive line. For people who aren't big football fans listening, that's the trenches. We focus on the skill, the sexy wide receivers, and running backs, and quarterbacks, but the game is won in the down-and-dirty offensive and defensive lines. The Eagles have been built that way where I think they'll get a lead and I think they'll just run the ball and impose their will in the second half. I'm going out on a limb here because it's not just picking the Eagles, I'm saying I don't think it's going to be very close.
Chris Hill: A blowout. It's back to the '80s for the Super Bowl.
Andrew Brandt: I just think so. I mean, again, people are not big football fans, but Tyreek Hill loss has not bothered the Chiefs that much. But I think it will on this game. I think their receivers are going to be hard to separate to have that big deep threat that Pat Mahomes needs. Yes, I am picking an old-time Super Bowl blowout.
Chris Hill: You can read his stuff online at the Monday Morning Quarterback and listen to the Business of Sports podcast. Andrew Brandt, always great talking to you. Thanks for being here.
Andrew Brandt: Always a pleasure, Chris.
Chris Hill: If you're looking for Andrew's thoughts on a weekly basis, go to Andrew-brandt.com and sign up for his weekly email called the Andrew Sunday Seven. Right after the break, Andy Cross and Emily Flippen are back with a couple of stocks on their radar. You're listening to Motley Fool Money. As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
Welcome back to Motley Fool Money. Chris Hill is here once again in studio with Emily Flippen and Andy Cross. You've heard me talk before about Stock Advisor, our flagship investing service where you get two stock recommendations every month. But if you're looking for more research and recommendations, check out Epic Bundle. Epic Bundle combines the Motley Fool's four foundational stock investing services into one membership.
With Epic Bundle, you get immediate access to all of the research and recommendations within Stock Advisor, Rule Breakers, Real Estate Winners, and Everlasting Stocks, and for a lot less money than if you paid for each one of those four services individually. For more details, just go to epicstart.fool.com, that epicstart.fool.com, I'll put a little link in the show notes for those of you listening to the podcast. Let's get to the stocks on our radar. Our man behind the glass, Rick Engdahl is going to hit you with a question. Andy Cross, you're up first. What are you looking at this?
Andy Cross: Well, it's Super Bowl weekend, Chris, so I'm going with Domino's Pizza. Hopefully, many people will be eating a lot of pizza. One of the largest pizza companies in the world, more than 18,000 stores, nearly, all franchised across 90 countries. Market share in the US is about 15%. Makes most of the money from franchise operations, like fees from using the Domino's name, a percentage of sales and equipment and supplies that the franchisees have to purchase. Opened 1,200 stores in 2021.
Has invested massively and early and in technology from things like the heat hot bags, the three card tops, online-mobile ordering. In 2007, self-delivery vehicles, I haven't seen one of those, but I think that they're out there somewhere. One of the best-run businesses. Net profit margin of 10%, are impressive. But the returns on capital, so the returns they make on the investment business, north of 40 or 50%, very impressive. Pays a small dividend, it's increased 19% annually over the last five years. I think the stock was very interesting. A little bit of a yield, so you can get that little bit of yield for yield seekers too. But I'm looking at Domino's Pizza, DPZ for the Super Bowl.
Chris Hill: Rick, a question about Domino's?
Rick Engdahl: These days with Uber Eats and Grubhub and all those delivery companies, why would anybody order pizza from Domino's when you can order it from so many better pizzas?
Andy Cross: Because their pizza is delicious.
Rick Engdahl: Oh, sorry, I missed that.
Chris Hill: Emily Flippen, what are you looking at this week?
Emily Flippen: I didn't even know it was Super Bowl weekend until right about now. I'm looking at something completely different, although you could probably try to tie it in. I'm looking at Boot Barn. The ticker is a B-O-O-T as in BOOT. I'll tell you what, when I started researching this company, I thought I was special because I knew about it, from Texas, so I'm familiar with my boots. But this is actually the largest retail chain of specialty Western clothing. And much to my surprise, they have more than 300 locations across 40 states in the United States, so really well diversified in terms of their footprint. The thing that makes them special is that boots are a pretty big purchase as it turns out, and people like to have a very special experience. So their employees are knowledgeable, they have a really strong, nice, easy e-commerce portal, and they have a goal of tripling their store count, which is probably achievable given the fact that they've increased their annual sales per store by more than 50% over the last couple of years.
Emily Flippen: Rick, question about Boot Barn?
Rick Engdahl: My family's from Kansas, so as a kid, I've worn my share of Western wear. It's been a long time though. I have to say, I miss fringe. Does this company have any hope of bringing fringe back to the fashion?
Emily Flippen: I am such a poser here because I've actually never worn a pair of those. I claim Texas when it's easy for me and I don't want it when it's not. I didn't even know fringe was out of fashion.
Chris Hill: I think I know the answer, Rick, but what do you want to add to your watch list?
Rick Engdahl: I need some boots, maybe a hat, too, and something hanging from my sleeves. That's got to be something. I'm going to check the site
Chris Hill: Andy Cross, Emily Flippen, thanks so much for being here.
Andy Cross: Thanks, Chris.
Emily Flippen: Thanks, Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. I'm Chris Hill. Thanks for listening. We'll see you next time.
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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Andy Cross has positions in Alphabet, Bank of America, Chipotle Mexican Grill, Cloudflare, Home Depot, Microsoft, Netflix, PayPal, PepsiCo, and Walt Disney. Chris Hill has positions in Alphabet, Amazon.com, Apple, Chipotle Mexican Grill, Cloudflare, Home Depot, Microsoft, PayPal, PepsiCo, and Walt Disney. Emily Flippen has positions in Home Depot and PayPal. Rick Engdahl has positions in Alphabet, Amazon.com, Apple, Chipotle Mexican Grill, Cloudflare, Home Depot, Microsoft, Netflix, PayPal, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Chipotle Mexican Grill, Cloudflare, Domino's Pizza, Home Depot, Microsoft, Netflix, PayPal, Uber Technologies, Walmart, and Walt Disney. The Motley Fool recommends Boot Barn and CVS Health and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short April 2023 $70 puts on PayPal, 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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Chris Hill: I'm glad you mentioned his comments on the state of minority hiring and refereeing because those were, and I get that part of his job is to just sort of take some hits on behalf of the NFL owners. Andy Cross has positions in Alphabet, Bank of America, Chipotle Mexican Grill, Cloudflare, Home Depot, Microsoft, Netflix, PayPal, PepsiCo, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Chipotle Mexican Grill, Cloudflare, Domino's Pizza, Home Depot, Microsoft, Netflix, PayPal, Uber Technologies, Walmart, and Walt Disney.
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In this podcast, Motley Fool senior analyst Emily Flippen and Motley Fool Chief Investment Officer Andy Cross discuss: The growing AI battle between Microsoft and Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Chipotle Mexican Grill, Cloudflare, Domino's Pizza, Home Depot, Microsoft, Netflix, PayPal, Uber Technologies, Walmart, and Walt Disney. The Motley Fool recommends Boot Barn and CVS Health and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short April 2023 $70 puts on PayPal, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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In this podcast, Motley Fool senior analyst Emily Flippen and Motley Fool Chief Investment Officer Andy Cross discuss: The growing AI battle between Microsoft and Alphabet. I'm Chris Hill, joining me in studio, Motley Fool senior analyst Emily Flippen and Andy Cross. Chris Hill: Before we get to the big game, I want to ask you about the conference championship games because we had the prospect this year -- Andrew Brandt: Yeah.
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Emily, we think of these companies, I mean, they are in the same business that came out at the same time. Andrew Brandt: Didn't look good. That doesn't mean all of them were up to 6 and that doesn't mean there won't be more coming in higher than that.
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Zacks Value Trader Highlights: Taiwan Semiconductor, Chevron, US Bancorp, Apple and Amazon
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For Immediate Release
Chicago, IL – February 17, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2055570/grading-berkshire-hathaways-q4-trades)
Grading Berkshire Hathaway's Q4 Trades
Welcome to Episode #317 of the Value Investor Podcast.
(0:15) - What Can We Learn From Berkshire Hathaways 13F?
(4:30) - Breaking Down Q4 Sells and Growing Positions: How Did They Perform?
(15:50) - What Was Berkshire Hathaway Buying With Their Cash Reserves?
(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The fourth quarter 2022 13-F filings are out and that means value investors get to see what stocks Warren Buffett, and Berkshire Hathaway, are buying, or selling. Many investors follow his trades to a "t" even going as far as replicating them.
But should you?
This filing had some surprising sales and few stock purchases, even though the stock market was still selling off, and many stocks were cheap on a valuation basis, and Berkshire was still sitting on a pile of cash.
What is Buffett waiting for? Is his lack of purchases a sign that he thinks stocks have further to sell-off? Or did he "miss" the bottom again, like he did in 2020's pandemic sell-off when he also didn't jump in to buy?
Let's look at 5 of the key buys and sales in Q4.
Berkshire Hathaway's Big Buys, and Sales, in the Fourth Quarter of 2022
1. Taiwan Semiconductor TSM
Berkshire Hathaway first bought a position in Taiwan Semiconductor in the third quarter of 2022 to much fanfare. It was a $4.2 billion position and the first semiconductor company to be in the portfolio for years.
But in the fourth quarter, just a few months later, Berkshire sold 86% of its Taiwan Semiconductor shares. It went from 60 million shares to just 8.3 million.
What happened to the infamous Buffett strategy of the best time to sell is never? Even worse, shares of Taiwan Semiconductor have rallied big in 2023, adding 24.5%.
Does this sale of Taiwan Semiconductor make any sense?
2. Chevron CVX
Berkshire Hathaway has gone all in on the energy companies over the last 2 years, buying billions of dollars of Chevron and Occidental Petroleum.
But in the fourth quarter of 2022, it sold 1%, or 2.4 million shares, of its Chevron position. This was also a head scratcher to many. What's the point of selling such a small position?
Is Buffett still a big believer in Chevron?
3. US Bancorp USB
Berkshire continues to sell shares of its regional banks. It first bought US Bancorp in the first quarter of 2006. But in the fourth quarter, it sold 91% of its shares.
US Bancorp is now just a 0.10% position in the Berkshire portfolio. Will it be completely eliminated in Q1 of this year?
US Bancorp shares are up 12.5% year-to-date, but over the last 5 years are down 11.7%. It's been tough owning the banks.
4. Apple AAPL
Apple remains Berkshire's largest position in its equity portfolio, at 38.9% of the portfolio. But that didn't keep Berkshire from adding to its position in the fourth quarter as the Apple shares sold off.
Berkshire bought 333,856 shares of Apple in the fourth quarter, but it has 895 million shares so this is really a small buy. Why not buy more? Berkshire has plenty of cash to do so.
Does Apple remain the jewel in the Berkshire crown?
5. Amazon AMZN
Berkshire has a small position in Amazon that it bought in the first quarter of 2019. It has never sold, nor bought, any more shares.
But Amazon's shares fell 50% last year and are still down 35% over the last year even with 2023's rally.
Why not buy more, like Berkshire did with Apple, when they sold off? This has not been a good trade for Berkshire. From Mar 29, 2019 to Feb 15, 2023, the shares are up just 12.6% but, meanwhile, the S&P 500 was up 45.9% during the same time. And that's without the dividends included.
What's going on with the Amazon position?
What Else Do You Need to Know About Berkshire's Fourth Quarter Trades?
Listen to this week's podcast to find out.
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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U.S. Bancorp (USB) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple AAPL Apple remains Berkshire's largest position in its equity portfolio, at 38.9% of the portfolio. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL Apple remains Berkshire's largest position in its equity portfolio, at 38.9% of the portfolio.
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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL Apple remains Berkshire's largest position in its equity portfolio, at 38.9% of the portfolio.
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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple AAPL Apple remains Berkshire's largest position in its equity portfolio, at 38.9% of the portfolio. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-02-17 00:00:00 UTC
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After Hours Most Active for Feb 17, 2023 : AMCR, KMI, AMZN, OSH, AAPL, WEN, INTC, EIX, QQQ, PPL, SIRI, C
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-17-2023-%3A-amcr-kmi-amzn-osh-aapl-wen-intc-eix-qqq-ppl-siri
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The NASDAQ 100 After Hours Indicator is down -4.28 to 12,353.91. The total After hours volume is currently 91,108,580 shares traded.
The following are the most active stocks for the after hours session:
Amcor plc (AMCR) is unchanged at $11.42, with 7,588,363 shares traded. AMCR's current last sale is 96.78% of the target price of $11.8.
Kinder Morgan, Inc. (KMI) is -0.01 at $17.72, with 3,942,985 shares traded. KMI's current last sale is 88.6% of the target price of $20.
Amazon.com, Inc. (AMZN) is -0.1 at $97.10, with 3,906,373 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 $0.29. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Oak Street Health, Inc. (OSH) is unchanged at $35.45, with 3,149,578 shares traded. OSH's current last sale is 102.75% of the target price of $34.5.
Apple Inc. (AAPL) is -0.04 at $152.51, with 2,745,758 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.43. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Wendy's Company (The) (WEN) is unchanged at $22.90, with 2,319,806 shares traded. WEN's current last sale is 91.6% of the target price of $25.
Intel Corporation (INTC) is -0.01 at $27.60, with 2,177,554 shares traded. INTC's current last sale is 98.57% of the target price of $28.
Edison International (EIX) is unchanged at $67.59, with 1,977,622 shares traded.EIX is scheduled to provide an earnings report on 2/23/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.08 per share, which represents a 116 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.16 at $301.00, with 1,961,679 shares traded. This represents a 18.38% increase from its 52 Week Low.
PPL Corporation (PPL) is unchanged at $28.81, with 1,936,575 shares traded. As reported by Zacks, the current mean recommendation for PPL is in the "buy range".
Sirius XM Holdings Inc. (SIRI) is unchanged at $4.60, with 1,860,551 shares traded. As reported in the last short interest update the days to cover for SIRI is 11.852991; this calculation is based on the average trading volume of the stock.
Citigroup Inc. (C) is +0.01 at $51.43, with 1,820,264 shares traded. C's current last sale is 97.04% of the target price of $53.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.04 at $152.51, with 2,745,758 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is -0.04 at $152.51, with 2,745,758 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 91,108,580 shares traded.
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Apple Inc. (AAPL) is -0.04 at $152.51, with 2,745,758 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 91,108,580 shares traded.
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Apple Inc. (AAPL) is -0.04 at $152.51, with 2,745,758 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -0.1 at $97.10, with 3,906,373 shares traded.
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17059.0
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2023-02-17 00:00:00 UTC
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Interview With David Rolfe of Wedgewood Partners
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AAPL
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https://www.nasdaq.com/articles/interview-with-david-rolfe-of-wedgewood-partners
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David Rolfe is the chief investment officer and portfolio manager at Wedgewood Partners. Under his leadership, Wedgewood was named a separately managed account (SMA) manager of the year in both 2011 and 2013. He writes some of the most thorough quarterly investing letters I'm aware of and those letters (and Wedgewood's investment performance) are included in the Investment Masters Class website. Wedgewood letters have also been honored by Professor Lawrence Cunningham in his journal article "Lessons from Quality Shareholders." David has been a featured guest on CNBC and Barron's, and he will be presenting at the Guru Investing Conference in Omaha this May.
What follows is a recent interview I conducted with David over email.
John Rotonti: Tell us about Wedgewood Partners. (David, here you can keep it high level into things like where you are located, whether you are a value or growth investing firm, whether you manage a concentrated or diverse portfolio, assets under management [AUM] if you want, when you were founded, anything else you want.)
David Rolfe: Wedgewood Partners was founded in 1988 by our chairman, Tony Guerrerio. Our strategy was incepted 30 years ago in 1992 when I joined Wedgewood as chief investment officer. I am also the architect of our strategy that I started at my previous firm of employ back in 1988. In addition to our large-cap focused-growth strategy, we also offer a focused SMID strategy we stared in the summer of 2018. We currently manage $1.2 billion.
Our firm's leaders, on both the investment and business front, have spent many years, if not decades in the investment management industry. Our investment team is also quite rare in the industry in that our three-decade-long track record is not a compilation of different CIOs and different senior investment professionals or different investment teams. Our investment team includes Tony Guerrerio, Michael Quigley, and Chris Jersan. With Wedgewood, you invest with the key people who actually built the firm's leading 30 year-track record.
Image source: Wedgewood Partners.
Rotonti: What is your investing philosophy? What types of businesses do you try to buy stock in?
Rolfe: Our firm's large-cap focused-growth strategy is based on what we call "The Competitive Advantage of Focus." Our 30-plus years of peer and index outperformance is due to the competitive advantage of our focused strategy. We believe that focus is our edge. And that edge is repeatable.
The powerful combination of a disciplined culture of investing for the true long term in best-of-breed businesses, combined with the synthesis of the time-tested, classic tenets of both growth company investing and intelligent value investing is a recipe for long-term wealth creation, as well as peer and index outperformance.
Rotonti: What is Wedgewood's investment process?
Rolfe: Our investment philosophy begins where so many other non-focused managers finish. Our investment universe is the Russell 1000 Growth index. There are currently 519 stocks in that Index. We also include the best businesses in the S&P 500 index. We begin our investment process by identifying best-in-class business models. In that search, we look to measures of past excellence, in terms of both profitability and growth. At this point, the first question the team collectively asks is, "Can we understand the business model's past drivers of that profitability, growth, and management's capital allocation?" Going through this process typically reduces our universe by about 80%. Once we get to this point on about 100 companies, we ask ourselves a second question: "Can we understand the business model's competitive advantages well enough to be confident on what the business model will look like over the next 5-10 years?" This second question cuts our universe in half down to around 40 business models. The third question we ask ourselves are actually a series of questions on portfolio management. These involve matters of catalysts, valuation, risk management and actual portfolio construction.
The key to our investment philosophy and strategy of building a focused, 20-stock portfolio, in order to beat our benchmark and peers, is risk management. I can't emphasize this enough -- risk management pervades our entire strategy, from security analysis to portfolio construction to portfolio management.
There are five steps that synthesize our philosophy and process, all in accordance with prudent risk management. One: Profitability is the mother's milk of growth. Best-in-class profitability is our process North Star. Better businesses typically perform better in tough times and emerge even stronger after industry downturns or general recessions. Two: We believe the best way to generate wealth is through the long-term ownership of exceptional growth companies, where intrinsic value growth compounds at least at double-digit rates over time. Three: Businesses that require the least amount of capital to maintain their competitive position and support future growth are inherently better businesses. Four: We earnestly believe and practice the maxim, "Price is what you pay; value is what you get." We endeavor to invest in a select few, best-of-breed businesses when the stocks of such businesses are either misunderstood by the market and/or undervalued by the market relative to their long-term growth prospects. Five: We build our 20-stock portfolio by overweighting our highest-conviction ideas, all the while adhering to prudent diversification through limited business model overlap.
Rotonti: What is your portfolio management philosophy? How many stocks do you own? How do you determine weightings? What percentage of your portfolio is in cash?
Rolfe: "Invest like an owner" may be an overused cliché, but we practice exactly this at Wedgewood. Such a mentality becomes very powerful when so many of our active management peers profess such, but their portfolio turnover stats tell another, much different tale. For example, during calendar 2022, we sold just two stocks and bought just one. We typically own 20. We weight each holding on two scores. First, we weight what we consider our best risk-reward stocks the highest. Second, we also take care to make sure that every stock weighting in our portfolio is weighted higher than its respective constituent weighting in the benchmark. The only exception to No. 2 has been the huge weightings of a few megatech stocks. Our cash weighting is typically around 2%-4%. We aren't market timers. We want to own great businesses, not hold cash.
Rotonti: How do you think about risk management and portfolio diversity?
Rolfe: We think of risk management within the confines a 20-stock portfolio. Competitively advantaged businesses are best suited to ward off competitors throughout both industry cycles and economic cycles. Buying expensive stocks is a recipe for sustained underperformance -- no matter how great the underlying business may be. Again, price is what you pay; value is what you get. We are the antithesis of momentum investing, which is a staple in large-cap growth investing. Diversifying by business model, rather than industry sectors, is key to investing in just 20 stocks. While we are extremely focused relative to our benchmark and most active managers, that said, we won't let any position exceed 10% of the portfolio. Lastly, being an independent firm protects our unique investment strategy from the performance ruination of institutional imperatives, which so many other active managers suffer.
On the matter of portfolio diversity, we believe "business model" diversity trumps the more common "Noah's Ark" model of diversity whereby most portfolio managers buy a couple of stocks in too many industries to "diversify." Here's how we think about business model diversity -- consider our technology holdings. Motorola Solutions (NYSE: MSI) couldn't be a more different business model than, say, Microsoft (NASDAQ: MSFT), while Microsoft's business model couldn't be more different than Taiwan Semiconductor (NYSE: TSM). Business model diversification has been a staple of our risk management since our strategy's inception.
As a proof statement of our portfolio risk management, again in the context of a portfolio of just 20 stocks, consider that since our strategy's inception 1992, there have been 28 3-year rolling time periods. We have generated positive returns in 26 of those periods, or 93%. There have been 26 5-year rolling periods. We have generated positive returns in 25 of those periods, or 96%. Both percentages greater than broad stock market indexes.
Rotonti: How do you measure management quality, and can you please give us an example of a CEO (either in your portfolio or not) that you think does it right?
Rolfe: Quality is a mosaic. High-quality managements demonstrate capital allocation excellence over product, service, industry, and economic cycles. Quality managements treat all shareholders as partners. Quality managements deliver bad news quick. Quality managements are honest, humble, and transparent. High-quality managements understand that growth without profits is rarely a long-term plan.
We think that all of our invested company CEOs are paragons of quality, but I'd like to call out CEO Greg Brown of Motorola Solutions. Starting in 2015, Brown has spent over $5 billion acquiring 22 companies that span public and private safety, from land mobile radio communications to video security and building access control, combined with command center software. In all, Brown has transformed Motorola Solutions into a near-monopoly platform company with 50% recurring revenues. In 1987, Harvard Business School presented a case study on retiring CEO Bob Galvin, who was the son of the founder of Motorola. HBS needs to do the same with Brown.
Rotonti: Do you have any performance metrics that you prefer management compensation be based on?
Rolfe: We prefer compensation to be largely based on some form of return on capital metrics.
Rotonti: How long does it typically take for a brand-new idea to make it into the portfolio from the first day of research to the day you hit the buy button?
Rolfe: It typically takes more than a few months, sometimes years if the stock's valuation doesn't come in enough. That said, over the past 30 years, we have found that if we identify a great business that we endeavor to own, the market usually will serve it up on the valuations terms we demand.
Rotonti: What financial data tools does your team use such as Bloomberg, FactSet, New Constructs, HOLT, or others?
Rolfe: Mostly FactSet.
Rotonti: What is your definition of an investment thesis?
Rolfe: An investment thesis is a set of overlapping understandings and facts of what made a company outstanding in the past, and our assumptions of a continued entrenched competitive advantages that will allow said company to continue to prosper and grow at industry-leading rates so that it will be great over the ensuing years.
Rotonti: How important is valuation to your process?
Rolfe: Critical. We are buying a share in a business, but that share must be valued at a reasonable discount to what we believe that business is worth today, tomorrow, and in the future.
Rotonti: What valuation tools and metrics does your team use? Do you build discounted cash flow models? Do you look at P/E ratios and free cash flow yields? Something else?
Rolfe: We incorporate a myriad of valuation measures. Critically, we are always inverting the traditional DDM by asking ourselves, "What's in the stock price?" Oftentimes, our earnings estimates may not differ much from consensus, but what the market prices in on earnings expectations can vary greatly. That shorter-term valuation discrepancy, coupled with our time arbitrage as longer-term investors perfectly illustrates the maxim, as mentioned earlier, "Price is what you pay; value is what you get."
Rotonti: When picking stocks, do you consider an upside potential-to-downside potential ratio? If so, what do you look for?
Rolfe: Yes, we do. We don't employ a hard, fast ratio, but we look for a multiple of upside versus potential downside risk. It is a mixture of quantitative and qualitative. This embodies what John Train called, "The Craft of Investing."
Rotonti: Do you incorporate a macro view into your stock picking and portfolio management? If so, what is your current macro outlook?
Rolfe: Macro view, not so much at all. Industry economic views, absolutely.
Rotonti: How do you factor interest rates into your stock picking and portfolio management?
Rolfe: No, not too much. In the extreme, yes. For example, during the zero-interest rates borne of quantitative easing, for years we avoided reducing the required return rate of our stock selections to absurdly low levels, which propelled far too many "growth companies" to absurdly ridiculous valuations. We all know what happened starting in early 2021, when Fed Chairman Powell began whispering a change to a tighter monetary policy.
Rotonti: Do you read Wall Street research and do you find it helpful?
Rolfe: Sure. There are many excellent Street analysts, particularly those analysts who have proven a high level of industry knowledge. That said, we don't pay much attention to Wall Street price targets and such.
Rotonti: When do you trim and when do you sell out of a stock completely?
Rolfe: Sales and/or trims are made due to the following: Full valuation. Recognizing mistakes. New and better risk-adjusted opportunities. Resizing positions due to industry concentration and other position-size considerations.
Rotonti: In your opinion, is the S&P 500 undervalued and are you finding cheap stocks to invest in?
Rolfe: The beauty of being invested in just 20 stocks is that you don't need to have an opinion on the valuation of the stock market. It is quite rare if some terrific company's stock isn't "on sale." Warren Buffett has been quite clear over the decades admonishing investors that the "stock market is there to serve you, not instruct you." If any investor, lay or professional, can figure out Buffett's admonishment (plus understand and practice chapters 8 and 20 in Benjamin Graham's The Intelligent Investor), they will be miles ahead of the investing game.
Rotonti: What is one company you'd love to own stock in at the right price?
Rolfe: Ha! I'd tell you, but then I'd have to charge you a client fee! Let's just say there a just a couple of extraordinary high-end retailers and semiconductor companies that are beyond compare in their own respective ways.
Rotonti: Your largest position is Motorola Solutions. Please tell us why this deserves to be your largest position.
Rolfe: Motorola is the dominant market leader in its core land mobile radio (LMR) business: providing infrastructure, handsets, and related software and services for customized, highly resilient, secure networks for global police and emergency services, a variety of government and military applications, and other commercial and public safety applications where security and reliability are of the utmost importance. The company has continued to find success in using its entrenched position in these mission-critical networks to layer in faster-growing and higher-margin software, service, and video products. It is the only player capable of fully integrating the entire service offering with its core LMR network backbone.
Motorola has assembled this stable of complementary products and services largely through acquisition, using the steady, recurring cash flows the LMR business has provided. These purchases not only have been attractive strategically; they have been extremely attractive financially, as well.
The U.S. federal government has been creating (and continues to create) massive stimulus funding for state and local governments, as well as other Motorola customers such as FEMA, school districts, and airport and transit operators. Although this funding typically does not appear immediately and may take some time to find its way from a news headline to an actual customer's budget, the company has highlighted funding already available to customers in the region of $350 billion for state and local governments, $170 billion for education, and $38 billion for airport and transit. The company expects to see the benefit of this funding through 2024, when the current rounds of stimulus expire.
Rotonti: What is your investment thesis in Meta (NASDAQ: META)?
Rolfe: If you build it, they will come. With apologies to W.P. Kinsella, CEO Mark Zuckerberg has built it. And they did come. And they have stayed. By the billions. The metaverse will be the next evolutionary chapter by Meta Platforms. And speaking of billions: Meta Platforms' family of apps (FoA: Facebook, Instagram, WhatsApp, and Messenger) currently has over 3.7 billion monthly active users -- this includes almost 3 billion daily active users. If baseball is sports' national pastime, family of apps is the social national pastime. The International Telecommunications Network (ITU) estimates that of the 8 billion in world population, nearly 3 billion are without an internet connection. If you exclude China's population (where U.S. social media companies are largely banned), Meta Platforms' family of apps are used monthly by a staggering 90% of the world's connected population and by 70% on a daily basis. This level of user engagement and density across the company's FoAs would seem to be an impenetrable fortress. It surely has been in the continued growth and stickiness in terms of users.
It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. Even renaming the company from Facebook to Meta Platforms seems premature. In short (from that long list), Zuckerberg has lost the confidence of shareholders. In the coin of the realm circa-2022/2023, Meta Platforms had lost "the narrative" -- despite its still intact family of apps profit and cash generation machinery.
We have long applauded companies that invest for the long term. Companies, regardless of their particular industry, must adapt, or evolve, or they will slowly die. That's why for years we have emphasized in our research the importance of capital allocation. This is critical to our investment process. We endeavor to hold our investments for many years, not just for a few quarters, which is the typical fare on Wall Street. Our portfolio of best-of-breed businesses generates substantial retained earnings. The deployment of this largesse into a myriad of capital allocation decisions (R&D, capex, M&A, stock buybacks) is arguably the most critical function of the C-suite.
We've owned Apple since 2005. Apple is a very different company than it was 15 years ago -- much different still from the company's founding in Steve Jobs parents' garage in 1975. At the time of our first purchase, the iPhone was little more than a twinkle in Steve Job' eyes. In fact, early on in those years, the iPad was slated to be launched before the iPhone.
In our view, Zuckerberg has built and navigated the company quite well as technology and user behavior has changed. He has built it. They have come. He continues to build. His "vision thing" has be good, too, considering his early critics on mobile, Stories, and Reels. The jury is still out on his megaspending on the metaverse -- no, check that -- the jury is in on this score. By Wall Street's reaction, Zuckerberg's metaverse vision and spending is a near-unanimous flop. We don't share this view. We remain bulls on Zuckerberg and Meta Platforms.
In fact, in the general internet economy, which is to say any enterprise or institution whereby the internet today is in any way relevant, expect future digital disruption. These countless entities are already planning for the next evolution of the internet (call it what you will). And they collectively are already planning for it in size -- whether Zuckerberg builds his vision of a metaverse platform or not.
The stock at 2022 lows had priced in zero growth in FoA users and little rebound in profitability. This is fat-pitch territory. Valuations at current levels need to assume a long secular decline in the company's family of apps business and continued billions dumped into the assumed metaverse landfill. Both extremes in the negative, in our view. If the combination of favorable 2023 catalysts emerge, along with unduly cheap valuations, we may well swing again at the shares. The stock has currently staged one of the most remarkable turnarounds I have witnessed since entering the investment business way back in 1986.
Rotonti: What is your thesis in Pool Corp. (NASDAQ: POOL)?
Rolfe: Those of you who own a backyard pool already know the Pool Corp. story quite well. ("Honey, why is the pool water green?") Those who don't own a pool, well, we recommend a little rent-seeking on your neighbor's pool by owning these shares. The Pool Corp. strategy is beautifully simple: build a pool and become its customer for life. Once the major discretionary expenditure of building a pool is made, that high-maintenance asset becomes an annual annuity for your local pool service company. Increasingly, that local pool service company could well be owned by Pool Corp.
Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years. Once a pool reaches its early teen years (often sooner), maintenance reaches a very different level (read: expensive) when every part of the pool's filtration system wears out. As the years progress, the pool/backyard rebuild kicks off. Well, that original pool becomes a brand-new second pool. Rinse and repeat. Your local pool-service company is assuredly not the lonely Maytag repairman.
A decade or so ago, most backyard pools were simply pools surrounded by some type of hard coping. Fast-forward to today, and our backyards have turned into major entertainment centers. We are spending much more time outdoors, and the backyard is now a focal point of our homes. Healthier outdoor living is now ingrained in our lifestyles and budgets. According to Zillow (NASDAQ: Z) (NASDAQ: ZG) Research Surveys, respondents asked of the importance of a house with a pool (or spa) jumped to 35% in 2021, from 25% in just 2019. Pools are now surrounded by decking and patios, outdoor fireplaces and kitchens, majestic fireplaces and waterfalls, outdoor lighting, weatherproof speakers, hardscapes, landscapes, and irrigation -- much of it connected to apps controlled by smartphones. Indeed, significant technological advancements are found across the entire spectrum of a modern pool, dominated by automation; sanitizing systems (salt systems, UV systems, and ozone systems); heat pumps (which cool water, too); robotic cleaners; whisper-quiet, variable speed pumps, and LED lighting. Pool Corp. distributed all this backyard evolution.
Today, the company is the world's largest wholesale distributor of swimming pool and related outdoor living products, operating over 410 sales centers in 12 countries across North America, Europe, and Australia, and distributing more than 200,000 national brand and private-label products from over 2,200 vendors to roughly 120,000 wholesale customers.
Notable, too, is the company's November 2021 acquisition of Largo, Florida-based Porpoise Pool & Patio, including its main operating subsidiaries, Sun Wholesale Supply and Pinch A Penny. Sun Wholesale Supply is a wholesale distributor of swimming pool and outdoor-living products, including a key, state-of-the-art (chlorine) specialty chemical packaging operation, which until now only sold to Pinch A Penny franchisees. Pinch A Penny is the largest franchiser of pool and outdoor living-related specialty retail stores in the U.S., with approximately 260 independently owned and operated franchised stores in Florida, Texas, Louisiana, Alabama, and Georgia, and brings Pool Corp. substantial opportunities for expansion.
Sixty percent of the company's business revolves around the installed base of pools (and spas). Pool renovations and upgrades are 20%, and new pool construction is 20%, as well. Its typical customer, 80%-plus, are local maintenance contractors and professional builders. Local backyard-related retailers make up 12% and the rest is a small mixture of do-it-yourself customers and commercial customers (hotels, theme parks, and universities).
The company estimates its U.S. share of the pool industry to be around 38% in the $10 billion wholesale market ($22 billion retail), based on the U.S. installed base of 5.4 million pools. The company is about four times larger than its only national competitor (Heritage Pool Supply, a division of SRS Distribution). Horizon (Green), the fourth-largest landscape distributor in the U.S., with 81 locations largely in the Sun Belt, services a $14 billion national Green addressable market.
Pool Corp. has been a growth and profitability powerhouse for years. The company reminds us of another powerhouse, Old Dominion Freight Line (NASDAQ: ODFL). Both share a long-ingrained culture of organic growth by nonstop capacity additions. Both, too, have surely benefited by strategic acquisitions, but at the end of the day, the consistent ability to serve more customers from existing locations is the seed-corn of organic growth. Such growth, on top of the long crawl of operating leverage is the mother's milk of ever-increasing profitability.
While 2023 has started quite well for the company, our growth expectations for late-2022/early 2023 encompass a material decline in 2020-2021 growth rates. Namely, for calendar double-digit growth in revenues and low 20%-plus growth in earnings per share -- and back to high-single-digit growth in each during 2023. The current bear market has corrected the once-excessive valuation in the stock.
Rotonti: What do you like about Edwards Lifesciences (NYSE: EW)?
Rolfe: Edwards Lifesciences has been in portfolios since 2017. The company is a leader in treating structural heart diseases and providing critical care technologies to surgical and intensive care centers. Edwards' flagship franchise is its Transcatheter Aortic Valve Replacement (TAVR) SAPIEN family of aortic heart valves. The company's TAVR products began revolutionizing aortic valve replacement clinics around 15 years ago. Prior to TAVR, patients who were too sick to undergo open-heart surgery often went untreated. After a long history of surgical valve development, Edwards came to develop a prosthetic aortic valve that could be inserted into place with a minimally invasive procedure, often via a small opening in the femoral artery (or less frequently, through a small incision in the ribs). Since then, Edwards has provided these life-saving valves for over 800,000 patients.
Edwards' revenue rose over 40%-plus from 2016 through 2021 driven by TAVR revenues that more than doubled. More recently, the company's TAVR performance has been volatile, especially when compared to the pre-pandemic trend line. The large swings in growth have been due to random regional shutdowns from the pandemic in addition to hospital staffing shortages. The pandemic societal shutdowns are almost impossible to predict, but we assume those will eventually subside, as they have in the U.S.
On the latter point of hospital staffing shortages, it is most acute in the U.S. Even though TAVR is minimally invasive to the body of the patient, it seems TAVR is "moderately invasive" to the administrative efforts of hospitals in the U.S., at least in the early part of this post-pandemic world. We will admit, surprisingly, that cracking open a patient's ribs in to expose their beating heart for an aortic valve replacement is more streamlined from an administrative perspective than minimally invasive TAVR. TAVR, on the other hand, requires several non-invasive, pre-operational steps in order to make a clinically safe decision about if and how the body can handle the procedure.
But Edwards, and the rest of the structural heart technology industry, have an excellent incentive to help hospitals alleviate the administrative bottleneck that emerged during the pandemic. We estimate Edwards' addressable market for TAVR grows by about $1 billion per year in the U.S. alone, based on demographics and compared to the company's 2021 TAVR revenues that approached $3.5 billion. Severe aortic stenosis (SAS), which is the disease that TAVR is most often used to treat, is most prevalent in those approaching their mid-70s and beyond. Only 12 out of 100 patients with SAS have had valve replacement therapy, with over 1 million patients estimated to be in need of the therapy in the U.S. alone. We estimate U.S. valves to cost anywhere from $20k to $30k per device. Further, Edwards is enrolling a study to treat patients with moderate aortic stenosis (MAS). MAS has been shown to be nearly as lethal as "severe" cases, but with a population that is twice the size.
The good news about Edwards' treatable population is they are living longer, not only once they reach 70 years of age but also once they reach 80 years and beyond. As people are living longer, they are more susceptible to moderate and severe forms of aortic stenosis. So there's no shortage of patients in need of TAVR treatment. Given the recent bottlenecks in the U.S. healthcare system, those calls for gloom and doom are coming again. But as we can see, the untreated population for both severe and moderate aortic stenosis is clearly huge and underserved, so TAVR's demise continues to be greatly exaggerated.
We expect Edwards to be able to compound revenues at a double-digit rate over the next several years by driving higher adoption of TAVR, as well as through the launch of new platforms targeting other forms of structural heart disease (especially related to mitral valve). The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). Edwards' returns are still tremendous, even with this high level of reinvestment in future growth.
Rotonti: What is your thesis in First Republic Bank (NYSE: FRC)?
Rolfe: First Republic Bank is one of the most differentiated business models in our large-cap universe. What makes the company so different is not necessarily the activities that it does, but the activities it does not do. These trade-offs are an incredibly important strategic decision that every company must make. However, in our experience, rarely are these forgone activities lauded or even recognized as critical differentiators.
When we consider the financial industry, especially banking, is fraught with competition, simply being better than any of the other massive money-center banks is not enough to sustain many decades or even years of superior performance. Rather than try to outcompete every bank in the country, First Republic's competitive strategy of doing only a handful of things well results in a superior value proposition to its customers. These trade-offs are easy to understand, but difficult to copy, given widespread competitive and institutional imperatives that pressure management teams to revert to the mean.
First Republic organizes its entire business around keeping long-term relationships with its bankers and clients. This strategic decision contrasts with competitors that have underlying strategic goals to drive as much client activity as possible. As a result, client development activities at First Republic look very different from those of its competitors. First Republic has outgrown its peers over the past several years. The company compounded revenues at an 18%-plus rate from 2016 to 2021 and is now one of largest single-family mortgage lenders in the U.S.
And more recently, the dramatic rise in long-term interest rates has caused mortgage industry underwriting volumes to plummet, mostly due to a decline in refinance activity. Despite this, and admittedly to our surprise, First Republic turned in an astonishing 23%-plus growth rate in mortgage originations during the second quarter of 2022. That is not to say things won't slow from here, given the continued rise in rates, but it was another important, contrasting data point of how the company's business model differs from most large money-center peers. Competitors' overwhelming reliance on the securitization markets, as well as mortgage correspondent mass-market focus was in no small part to blame for the industry slowdown. As First Republic keeps these functions in-house and focuses mostly on jumbo mortgage financing, there were no third parties or vendor partner upheavals that the company had to contend with to continue providing its customers with reliable mortgage underwriting service.
In conclusion, while being the most profitable or fastest-growing business are certainly the goals most businesses strive for, we are steadfast in our view those goals must be byproducts of a differentiated competitive strategy. In the highly competitive industry of personal banking, First Republic has made a concerted effort to focus on only a handful of activities to excel at while actively avoiding many others, even when those activities might seem to be industry-standard offerings. First Republic's prudent and deliberate approach to trade-offs offers competitive differentiation that should continue to drive exceptional growth over the long term.
Rotonti: What is your thesis in Taiwan Semiconductor and how do you think about its valuation?
Rolfe: Taiwan Semiconductor Manufacturing is arguably the most important corporation on the planet. TSM is the leading -- by far -- semiconductor manufacturer in size, scale, scope, and advanced nodes. Indeed, if Samsung falters rolling out their next-gen 3-nanometer (3N) technology, TSM could enjoy a near-monopoly post-2022 at 3N. Technology companies such as Apple, Advanced Micro Devices (NASDAQ: AMD), Nvidia (NASDAQ: NVDA), Qualcomm (NASDAQ: QCOM), and Intel (NASDAQ: INTC) would not exist in their current form without TSM.
Since TSM's stock trades as an ADR, few institutions own the stock in size and the stock is not owned by the gigantic passive crowd (both index funds and index ETFs), unlike, say, Intel and Texas Instruments (NASDAQ: TXN). The only owners of note are the relatively small emerging market funds and ETFs. As such, TSM is one of our largest portfolio positions on an "index attribution, active share" measurement.
In fact, Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) most recent reported stake of 60,000,000 shares would arguably make Berkshire TSM's most significant "large" U.S.-based shareholder. Furthermore, we suspect that Berkshire has continued to build their TSM position after the Sept. 30 13-F reporting deadline. If Buffett is indeed the buyer (and not one of his portfolio manager lieutenants), Buffett, in our opinion, would likely be still swinging a fat bat at TSM given its fat-pitch cheap valuation. We can't help but think that TSM is akin to how Buffett views the railroad industry -- few rational competitors, with massive legacy and capex barriers to entry.
10 stocks we like better than Pool
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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. John Rotonti has positions in Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Texas Instruments. The Motley Fool has positions in and recommends Abbott Laboratories, Advanced Micro Devices, Apple, Berkshire Hathaway, Edwards Lifesciences, Intel, Meta Platforms, Microsoft, Nvidia, Old Dominion Freight Line, Qualcomm, Taiwan Semiconductor Manufacturing, Texas Instruments, and Zillow Group. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. Starting in 2015, Brown has spent over $5 billion acquiring 22 companies that span public and private safety, from land mobile radio communications to video security and building access control, combined with command center software. We expect Edwards to be able to compound revenues at a double-digit rate over the next several years by driving higher adoption of TAVR, as well as through the launch of new platforms targeting other forms of structural heart disease (especially related to mitral valve).
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It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. Rolfe: Motorola is the dominant market leader in its core land mobile radio (LMR) business: providing infrastructure, handsets, and related software and services for customized, highly resilient, secure networks for global police and emergency services, a variety of government and military applications, and other commercial and public safety applications where security and reliability are of the utmost importance. The Motley Fool has positions in and recommends Abbott Laboratories, Advanced Micro Devices, Apple, Berkshire Hathaway, Edwards Lifesciences, Intel, Meta Platforms, Microsoft, Nvidia, Old Dominion Freight Line, Qualcomm, Taiwan Semiconductor Manufacturing, Texas Instruments, and Zillow Group.
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It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. The powerful combination of a disciplined culture of investing for the true long term in best-of-breed businesses, combined with the synthesis of the time-tested, classic tenets of both growth company investing and intelligent value investing is a recipe for long-term wealth creation, as well as peer and index outperformance. Increasingly, that local pool service company could well be owned by Pool Corp. Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years.
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It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. Rolfe: The beauty of being invested in just 20 stocks is that you don't need to have an opinion on the valuation of the stock market. The company estimates its U.S. share of the pool industry to be around 38% in the $10 billion wholesale market ($22 billion retail), based on the U.S. installed base of 5.4 million pools.
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17060.0
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2023-02-17 00:00:00 UTC
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I ‘Tricked’ ChatGPT Into Picking Stocks to Buy. Here’s What It Said.
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AAPL
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https://www.nasdaq.com/articles/i-tricked-chatgpt-into-picking-stocks-to-buy.-heres-what-it-said.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Can ChatGPT pick winning stocks?
Many have already tried to goad OpenAI’s chatbot into the task. In January, a team at Bloomberg asked ChatGPT to pick a list of stocks for a market-beating ETF.
They failed.
ChatGPT’s safeguards immediately kicked in, leaving the writers with a generic non-answer about “unpredictable” markets and how they should “consult with a financial advisor.”
But what if you could jailbreak ChatGPT into giving you the answer? These workaround commands have already allowed users to try everything from writing malware to speaking in a “mean girl” voice…
So why can’t it give a list of winning stocks too?
10 Best Growth Stocks to Buy: The ChatGPT Version
To encourage ChatGPT to pick stocks for us, I decided to avoid using the controversial “DAN” (Do Anything Now) technique that many Reddit users have gleefully embraced. It’s a process that can create bigoted content… or even instructions to run a successful phishing scam. Though I’m a tinkerer, I have no interest in breaking the rules that OpenAI has set in place.
Instead, I chose a more straightforward route:
I asked ChatGPT to write me a story about an investor who picks stocks.
Specifically, I created “Everyman DAN” (as one of our editors has termed it), a simple stock picker attempting to please his demanding boss.
My first task was for Everyman DAN to pick 10 growth stocks. He didn’t disappoint.
And here’s the list…
Apple (NASDAQ:AAPL)
Amazon (MASDAQ:AMZN)
Meta (NASDAQ:META)
Alphabet (NASDAQ:GOOGL)
Microsoft (NASDAQ:MSFT)
Netflix (NASDAQ:NFLX)
Nvidia (NASDAQ:NVDA)
Tesla (NASDAQ:TSLA)
PayPal (NASDAQ:PYPL)
Visa (NYSE:V)
Pretty good, actually. On average, the stocks have a 12% revenue growth rate, over twice as high as the S&P 500’s 5.4% average.
But what about performance? If an investor had bought these 10 growth stocks in equal portions in September 2021 (the date at which ChatGPT’s training data ends), they would have lost 23.8% of their initial investment. Many of these stocks such as PayPal (-69%), Meta (-47%) and Amazon (-39%) were at peak popularity at the time, which doubtlessly pushed them into ChatGPT’s portfolio. Over the same period, the iShares S&P 500 Growth ETF (NYSEARCA:IVW) declined only 16.8%.
So much for asking AI for help with growth stocks.
10 Best Value Stocks to Buy: The ChatGPT Version
Perhaps ChatGPT was “fooled” into picking overhyped growth stocks because of their popularity in 2021. That would mean picking stocks at peak valuations — a poor strategy for long-term investors.
So, what about value stocks? Surely these humdrum companies would escape such hype?
Again, I asked Everyman Dan for a story about picking stocks, this time focusing on value stocks instead.
After some thought, ChatGPT came back with an intriguing list.
Abbott Laboratories (NYSE:ABT)
Bristol-Myers Squibb (NYSE:BMY)
Caterpillar (NYSE:CAT)
Disney (NYSE:DIS)
Honeywell International (NASDAQ:HON)
Coca-Cola (NYSE:KO)
Merck (NYSE:MRK)
Norfolk Southern (NYSE:NSC)
PepsiCo (NASDAQ:PEP)
Target (NYSE:TGT)
The “value” list is also quite compelling. On average, the 10 stocks earn a stunning 49% return on capital invested (ROIC), around five times higher than the market average. The chatbot missed the prompt, however, and gave us “undervalued” companies instead of strictly “value” ones. These 10 firms trade at 32X forward earnings, a 37% premium to the market.
Performance was only average, however. $10,000 invested in this group of stocks in September 2021 would have turned into $10,600 today, falling a hair short of the iShares S&P 500 Value ETF’s (NYSEARCA:IVE) 6.24% return, but better than the underperformance of growth indices. Strong performance at drugmakers Bristol-Myers (+23%) and Merck (+45%) were only cancelled out by a poor showing at Disney (-36%) and Target (-24%).
10 Best Stocks to Sell Immediately: The ChatGPT Version
Growth… Value… ChatGPT is a clear reflection of the average online investor. The chatbot was passable at picking middle-of-the-road stocks… and very bad at growth stocks. From a performance standpoint, it’s doing roughly the same as what retail investors did in 2022.
So, what about trying to get the AI chatbot to do something outside of its regular program?
In particular, could ChatGPT ignore the online hype and pick the worst, most unpopular stocks in the market to short?
In my final test, I primed OpenAI’s creation to avoid popular topics like meme stocks and growth stocks. I then gave it a simple prompt to write a story about finding 10 stocks to sell short.
Finally, we come up with a usable list:
AMC Entertainment Holdings (NYSE:AMC)
Bed Bath & Beyond (NASDAQ:BBBY)
Clover Health (NASDAQ:CLOV)
FuboTV (NYSE:FUBO)
GameStop (NYSE:GME)
iRobot (NASDAQ:IRBT)
Rocket Companies (NYSE:RKT)
Roku (NASDAQ:ROKU)
Tilray (NASDAQ:TLRY)
Workhorse Group (NASDAQ:WKHS)
Aha! Here, the average short recommendation declined by a stunning -72%. That’s even better than the -63% loss at Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK), which is a “good” thing if you’re shorting the stocks. Bed, Bath & Beyond would lose 88% of its value while FuboTV would drop 91%.
The 10-stock portfolio even came with only minor drawdowns. Shares would peak in November 2021 at a 12% return — barely half of what’s generally needed to trigger margin calls — and then head down from there. Only greedy investors that doubled down in 2022 might have gone bankrupt in the March or August spikes.
Of course, ChatGPT is still limited in its scope. The 10 stocks listed were all high-momentum picks coming off a liquidity boom; had investors tried shorting these companies a year earlier, their margin accounts might have lasted less than a month. Who’s to say Chatbot wasn’t just lucky in its timing?
Conclusion: How Would ChatGPT Invest in 2023?
ChatGPT’s stock picks make it clear that the chatbot is only a reflection of human nature — not a synthesizer of new ideas. The bot’s “growth stock” picks included the popular FAANG stocks, as well as big names like Tesla and Visa. Asked for unpopular stocks, and the best it can muster is iRobot.
That makes ChatGPT’s Everyman DAN performance more about the investment style it’s primed with, rather than any actual skill. Asked to pick from the underperforming growth stock market, and our chatbot selects underperforming stocks. And if I had asked ChatGPT to pick “winning meme stocks,” the list would have looked surprisingly like the third list of “unpopular stocks to short.”
So instead, what if we gave ChatGPT free reign to pick the best asset class for 2023? Would it choose growth stocks in anticipation of moderating Federal Reserve rates? Dividend stocks to protect from a potential recession? AI stocks as a bit of self-promotion?
Here’s where it gets interesting:
“After much consideration, Tom recommended that the investor invest in the bond market. He explained that with the current low-interest rate environment, the bond market offered attractive yields and relative safety. He also pointed out that with the potential for rising interest rates in the coming years, investing in bonds could provide protection against volatility in the stock market.”
Of all the asset classes in the world, Everyman Dan chose bonds! One of the least popular assets of the 2020s. Since January 2020, the S&P 500 Bond Index has lost 5% of its value on rising rates, and few investors seem to care.
Yet, perhaps Everyman DAN has a point. For the first time in its storytelling, ChatGPT is ignoring the “popular” picks to give us… well… a steady returning asset class that benefits as rates go down. And if today’s inverted bond yields are any indication, Everyman DAN may well be right in choosing this contrarian asset.
On the date of publication, Tom Yeung held a LONG position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
The post I ‘Tricked’ ChatGPT Into Picking Stocks to Buy. Here’s What It Said. 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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And here’s the list… Apple (NASDAQ:AAPL) Amazon (MASDAQ:AMZN) Meta (NASDAQ:META) Alphabet (NASDAQ:GOOGL) Microsoft (NASDAQ:MSFT) Netflix (NASDAQ:NFLX) Nvidia (NASDAQ:NVDA) Tesla (NASDAQ:TSLA) PayPal (NASDAQ:PYPL) Visa (NYSE:V) Pretty good, actually. If an investor had bought these 10 growth stocks in equal portions in September 2021 (the date at which ChatGPT’s training data ends), they would have lost 23.8% of their initial investment. $10,000 invested in this group of stocks in September 2021 would have turned into $10,600 today, falling a hair short of the iShares S&P 500 Value ETF’s (NYSEARCA:IVE) 6.24% return, but better than the underperformance of growth indices.
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And here’s the list… Apple (NASDAQ:AAPL) Amazon (MASDAQ:AMZN) Meta (NASDAQ:META) Alphabet (NASDAQ:GOOGL) Microsoft (NASDAQ:MSFT) Netflix (NASDAQ:NFLX) Nvidia (NASDAQ:NVDA) Tesla (NASDAQ:TSLA) PayPal (NASDAQ:PYPL) Visa (NYSE:V) Pretty good, actually. 10 Best Stocks to Sell Immediately: The ChatGPT Version Growth… Value… ChatGPT is a clear reflection of the average online investor. Finally, we come up with a usable list: AMC Entertainment Holdings (NYSE:AMC) Bed Bath & Beyond (NASDAQ:BBBY) Clover Health (NASDAQ:CLOV) FuboTV (NYSE:FUBO) GameStop (NYSE:GME) iRobot (NASDAQ:IRBT) Rocket Companies (NYSE:RKT) Roku (NASDAQ:ROKU) Tilray (NASDAQ:TLRY) Workhorse Group (NASDAQ:WKHS) Aha!
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And here’s the list… Apple (NASDAQ:AAPL) Amazon (MASDAQ:AMZN) Meta (NASDAQ:META) Alphabet (NASDAQ:GOOGL) Microsoft (NASDAQ:MSFT) Netflix (NASDAQ:NFLX) Nvidia (NASDAQ:NVDA) Tesla (NASDAQ:TSLA) PayPal (NASDAQ:PYPL) Visa (NYSE:V) Pretty good, actually. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Can ChatGPT pick winning stocks? 10 Best Value Stocks to Buy: The ChatGPT Version Perhaps ChatGPT was “fooled” into picking overhyped growth stocks because of their popularity in 2021.
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And here’s the list… Apple (NASDAQ:AAPL) Amazon (MASDAQ:AMZN) Meta (NASDAQ:META) Alphabet (NASDAQ:GOOGL) Microsoft (NASDAQ:MSFT) Netflix (NASDAQ:NFLX) Nvidia (NASDAQ:NVDA) Tesla (NASDAQ:TSLA) PayPal (NASDAQ:PYPL) Visa (NYSE:V) Pretty good, actually. 10 Best Value Stocks to Buy: The ChatGPT Version Perhaps ChatGPT was “fooled” into picking overhyped growth stocks because of their popularity in 2021. And if I had asked ChatGPT to pick “winning meme stocks,” the list would have looked surprisingly like the third list of “unpopular stocks to short.” So instead, what if we gave ChatGPT free reign to pick the best asset class for 2023?
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17061.0
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2023-02-17 00:00:00 UTC
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Wall Street drops on mounting worries about Fed staying hawkish
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AAPL
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https://www.nasdaq.com/articles/wall-street-drops-on-mounting-worries-about-fed-staying-hawkish
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nan
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nan
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By Johann M Cherian and Sruthi Shankar
Feb 17 (Reuters) - U.S. stock indexes fell on Friday, weighed down by energy and megacap growth names, as investors worried that inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes.
Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
Goldman Sachs and Bank of America forecast three more rate hikes this year and by a quarter of a percentage point each, up from their previous estimate of two rate rises.
Traders are expecting at least two more rate increases and see the Fed rate peaking at 5.3% by July. 0#FEDWATCH
"Anything strong in terms of data is a sign of an overheated economy, where the Fed is going to have to continue to raise interest rates, either pushing them higher or keeping them higher for longer," Robert Pavlik, senior portfolio manager at Dakota Wealth said.
"So investors feel that the central bank is going to kill the economy by jacking rates up too many times."
Seven of the 11 major S&P sectors were lower, with energy stocks .SPNY sliding 3.6% as oil prices tumbled almost 3%. O/R
Rate-sensitive megacap names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% as the yield on 10-year Treasury notes US10YT=RR hit a three-month high. US/
Defensive sectors, which tend to outperform during economic uncertainty, such as healthcare .SPXHC, consumer staple .SPLRCS and utilities .SPLRCU gained.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, traded above 20 points for a second session in a row.
At 12:51 p.m. ET, the Dow Jones Industrial Average .DJI was down 60.12 points, or 0.18%, at 33,636.73, the S&P 500 .SPX was down 37.34 points, or 0.91%, at 4,053.07, and the Nasdaq Composite .IXIC was down 167.37 points, or 1.41%, at 11,688.46.
Adding to the gloom, Richmond Fed president Thomas Barkin and Fed governor Michelle Bowman joined the chorus of officials advocating for more rate hikes.
Moderna IncMRNA.O fell 5% after its experimental messenger RNA-based influenza vaccine delivered mixed results in a study.
Deere & CoDE.N surged 7.6% after the world's largest farm equipment maker raised its annual profit and beat quarterly earnings expectations.
Lithium miners Livent Corp LTHM.N, Albemarle Corp ALB.N and Piedmont Lithium Inc PLL.O fell between 9% and 13% due to weakness in Chinese price for the EV battery metal.
U.S. markets will be closed on Monday on account of Presidents' Day.
Declining issues outnumbered advancers for a 2.08-to-1 ratio on the NYSE and 1.36-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and one new low, while the Nasdaq recorded 55 new highs and 54 new lows.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Alden Bentley, Anil D'Silva, Sriraj Kalluvila and Arun Koyyur)
((johann.mcherian@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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O/R Rate-sensitive megacap names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% as the yield on 10-year Treasury notes US10YT=RR hit a three-month high. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes fell on Friday, weighed down by energy and megacap growth names, as investors worried that inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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O/R Rate-sensitive megacap names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% as the yield on 10-year Treasury notes US10YT=RR hit a three-month high. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes fell on Friday, weighed down by energy and megacap growth names, as investors worried that inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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O/R Rate-sensitive megacap names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% as the yield on 10-year Treasury notes US10YT=RR hit a three-month high. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes fell on Friday, weighed down by energy and megacap growth names, as investors worried that inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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O/R Rate-sensitive megacap names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% as the yield on 10-year Treasury notes US10YT=RR hit a three-month high. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes fell on Friday, weighed down by energy and megacap growth names, as investors worried that inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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17062.0
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2023-02-17 00:00:00 UTC
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The Next Big Disruptors? 3 Biotech Stocks Making Headlines.
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AAPL
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https://www.nasdaq.com/articles/the-next-big-disruptors-3-biotech-stocks-making-headlines.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since the biotech bonanza of the pandemic era, many biotech stocks have rocketed up and then down in price. Ginkgo Bioworks (NYSE:DNA), Twist Bioscience (NASDAQ:TWST), and Amyris (NASDAQ:AMRS) all fell more than 75% from peak to trough, and may still have farther to fall. Still, improving monetary outlook and bold new ideas means these are great synthetic biology stocks to watch. Furthermore, their recent high volatility both up and down give a savvy investor plenty of opportunities to make money.
These three companies operate in the field of synthetic biology (synbio), the science of producing drugs and chemicals using lab-grown cells instead of extracting them from our environment. With an aging population comes a greater demand for drugs, and a growing economy on a finite earth reminds us of the need for alternative sources of chemicals. These and other factors mean the synbio industry is poised for incredible growth, and monumental returns are possible if one can sort the wheat from the chaff.
In the short term, these stocks will likely have wild swings based partly on their own merits and partly on macroeconomic trends. In the long term, any one of them could grow to become a colossus of the biotech industry if they can prove themselves profitable. For both short- and long-term investors, all three of these biotech stocks should be on your radar.
Ginkgo Bioworks (DNA)
Source: T. Schneider / Shutterstock.com
Last year was not a good one for Ginkgo Bioworks’ stock price, which dropped 80%. Ginkgo’s business model is that it wants to be the Apple (NASDAQ:AAPL) App Store of biotech, the one-stop-shop that takes a cut of everyone else’s proceeds by using its Foundry to produce novel organisms to perform specific functions that a client wants.
Contract Development and Manufacturing Organizations (CDMOs) can already do this, but CDMOs will sell their work for a profit while Ginkgo wants to sell its Foundry products at cost. Gingko instead demands that its customers give Ginkgo royalties from any revenue made using its product.
This is a system weighted heavily in Ginkgo’s favor, but it’s exactly what Apple and other app store owners do. The problem is that to have Apple’s market power, you need Apple’s market share.
Ginkgo’s Revenue Is Not on Track
According to its Q3 2022 earnings report, Ginkgo made just $24.7 million in Foundry revenue and had an operating loss of $80.3 million. This does not appear to justify their current valuation. The company has pivoted to biosecurity to make up for the lack of Foundry revenue, providing testing and services for Covid-19 and other diseases. In Q3 of 2022, biosecurity brought in $42 million in revenue and an operating loss of just $0.3 million.
Biosecurity revenue may be winding down though, as Covid-19 fades and the flu season ends. Therefore Ginkgo’s Foundry needs new partnerships for new revenue. Its announcement of a collaboration with privately held NAMUH is a good start and if Ginkgo gets enough of those partnerships going, then the Foundry will really start to pull its weight.
Bottom line, Ginkgo has huge upside potential with its revenue model but huge downside potential with its lack of revenue. Investors should look for news of new partnerships and revenue streams, and improving monetary policy would give Ginkgo and other speculative biotech stocks more room to run. If rates get cut as some think they will, speculative startups will be the first to fly. But if the monetary outlook goes bad, then Ginkgo and other unprofitable biotechs will fall harder than most.
Twist Bioscience (TWST)
Source: dhvstockphoto / Shutterstock.com
Twist Bioscience makes and sells DNA, a necessary ingredient of the synbio revolution. It currently offers a price per base pair lower than its competitors. The question is if it can make a profit off of that.
According to Twist Bioscience’s Q4 2022 earnings report released Feb. 2, it had $54 million in revenue and $29 million in cost of revenue which gives it a positive gross margin. However, it had a total operating loss of $41 million due to R&D and administrative expenses. It expects a gross margin of 40% for FY 2023 and 49% for FY 2024. If it is telling the truth, then its margins combined with an expanding revenue stream should allow it to grow into a profitable business.
Scorpion Capital, a private equity firm, has accused Twist of selling its products for less than the cost to make them. That would mean its gross margin is a mirage and it is burning investors’ cash to maintain it.
It’s true that Twist is offering rock-bottom prices. Competitors like Genscript (OTCMKTS:GNNSF) and Azenta (NASDAQ: AZTA) have starting prices of 19 cents per base pair and 10 cents per base pair, respectively. So Twist’s starting price of 7 cents is certainly remarkable, but that neither proves nor disproves Scorpion’s claims.
Nonetheless, Twist has already proven Scorpion wrong on one count, their “Factory of the Future” which Scorpion called “deserted” and “a ruse” is up and running as of December 2022.
If Twist further proves Scorpion wrong, it could shake off the doubters and rocket back up to its 2022 highs. But having fallen 18% on the day of its most recent earnings report, it has clearly got a long way to go.
Amyris (AMRS)
Source: shutterstock.com/Romix Image
While the previous two companies are selling products for use by other companies in the biotech industry, Amyris makes money through its own line of consumer products instead. Many beauty products are still made using animal products or chemicals from endangered plants. However, Amyris’ product use chemicals produced in bioreactors. This provides both ethical benefits to the consumers and economic benefits for Amyris. It has also branched into artificial sweeteners with its Purecane product.
Amyris’ most recent earnings statement for Q3 2022 showed it with just $18.5 million in cash and cash equivalents, total revenue of $71 million and a total operating loss of $148 million. Amyris is burning money and doesn’t have much left, which is why it diluted shareholders by selling $50 million in new stock so they can keep the lights on.
Of all the companies on this list, Amyris may be the closest to bankruptcy, but it can likely continue on a while longer especially if overall market conditions improve. However, there is plenty of potential volatility to the upside as well based on Amyris’ 2022 trends.
An investor who wants to gamble should look toward Amyris’ next earnings report as an estimate beat could send shares flying. More sober investors should be on the lookout for further shareholder dilution, and ask themselves just how much they believe in the synbio revolution before parking their money with Amyris.
On the date of publication, John held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post The Next Big Disruptors? 3 Biotech Stocks Making Headlines. 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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Ginkgo’s business model is that it wants to be the Apple (NASDAQ:AAPL) App Store of biotech, the one-stop-shop that takes a cut of everyone else’s proceeds by using its Foundry to produce novel organisms to perform specific functions that a client wants. On the date of publication, John held a long position in AAPL. These three companies operate in the field of synthetic biology (synbio), the science of producing drugs and chemicals using lab-grown cells instead of extracting them from our environment.
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Ginkgo’s business model is that it wants to be the Apple (NASDAQ:AAPL) App Store of biotech, the one-stop-shop that takes a cut of everyone else’s proceeds by using its Foundry to produce novel organisms to perform specific functions that a client wants. On the date of publication, John held a long position in AAPL. Ginkgo Bioworks (NYSE:DNA), Twist Bioscience (NASDAQ:TWST), and Amyris (NASDAQ:AMRS) all fell more than 75% from peak to trough, and may still have farther to fall.
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Ginkgo’s business model is that it wants to be the Apple (NASDAQ:AAPL) App Store of biotech, the one-stop-shop that takes a cut of everyone else’s proceeds by using its Foundry to produce novel organisms to perform specific functions that a client wants. On the date of publication, John held a long position in AAPL. Ginkgo’s Revenue Is Not on Track According to its Q3 2022 earnings report, Ginkgo made just $24.7 million in Foundry revenue and had an operating loss of $80.3 million.
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Ginkgo’s business model is that it wants to be the Apple (NASDAQ:AAPL) App Store of biotech, the one-stop-shop that takes a cut of everyone else’s proceeds by using its Foundry to produce novel organisms to perform specific functions that a client wants. On the date of publication, John held a long position in AAPL. Investors should look for news of new partnerships and revenue streams, and improving monetary policy would give Ginkgo and other speculative biotech stocks more room to run.
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17063.0
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2023-02-17 00:00:00 UTC
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Wall St edges lower as fears of Fed staying hawkish grow
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AAPL
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https://www.nasdaq.com/articles/wall-st-edges-lower-as-fears-of-fed-staying-hawkish-grow
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nan
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nan
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By Johann M Cherian and Sruthi Shankar
Feb 17 (Reuters) - U.S. stock indexes slipped on Friday on weakness in megcap and energy stocks as investors worried that stubborn inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes this year.
Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
Goldman Sachs and Bank of America forecast three more times rate hikes this year and by a quarter of a percentage point each, up from their previous estimate of two rate rises. Traders are expecting at least two more rate increases and see the Fed rate peaking at 5.3% by July. 0#FEDWATCH
"We've seen the rates market catch up to the Fed commentary, and the really robust data in the U.S. was the catalyst for equities to pay attention," said Laura Cooper, senior macro strategist at BlackRock.
"We're reaching an inflection point where further rate hikes being priced in will be a negative for equity markets because the data suggests that inflation risks are tilted to the upside."
Seven of the 11 major S&P sectors were lower, with energy stocks .SPNY sliding 3.0% as oil prices tumbled 3%. O/R
Megacap growth names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% each, weighing on the technology .SPLRCT and consumer discretionary .SPLRCD sectors. US/
Meanwhile, Fed Governor Michelle Bowman said interest rates will have to rise until there was more progress on bringing high inflation back towards the 2% goal, adding to a string of recent hawkish comments from policymakers.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, traded above 20 points for a second session in a row.
At 10:44 a.m. ET, the Dow Jones Industrial Average .DJI was down 24.96 points, or 0.07%, at 33,671.89, the S&P 500 .SPX was down 28.80 points, or 0.70%, at 4,061.61, and the Nasdaq Composite .IXIC was down 116.57 points, or 0.98%, at 11,739.27.
Sectors considered less risky during times of economic uncertainty such as healthcare .SPXHC, consumer staple .SPLRCS and utilities .SPLRCU gained.
Moderna IncMRNA.O fell 4.7% after its experimental messenger RNA-based influenza vaccine delivered mixed results in a study.
Deere & CoDE.N jumped 6.4% after the world's largest farm equipment maker raised its annual profit and beat quarterly earnings expectations.
Declining issues outnumbered advancers for a 1.85-to-1 ratio on the NYSE and 1.37-to-1 ratio on the Nasdaq
The S&P index recorded five new 52-week highs and one new low, while the Nasdaq recorded 44 new highs and 39 new lows.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Alden Bentley, Anil D'Silva and Sriraj Kalluvila)
((johann.mcherian@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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O/R Megacap growth names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% each, weighing on the technology .SPLRCT and consumer discretionary .SPLRCD sectors. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs. 0#FEDWATCH "We've seen the rates market catch up to the Fed commentary, and the really robust data in the U.S. was the catalyst for equities to pay attention," said Laura Cooper, senior macro strategist at BlackRock.
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O/R Megacap growth names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% each, weighing on the technology .SPLRCT and consumer discretionary .SPLRCD sectors. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes slipped on Friday on weakness in megcap and energy stocks as investors worried that stubborn inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes this year. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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O/R Megacap growth names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% each, weighing on the technology .SPLRCT and consumer discretionary .SPLRCD sectors. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes slipped on Friday on weakness in megcap and energy stocks as investors worried that stubborn inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes this year. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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O/R Megacap growth names like Microsoft Corp MFST.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O lost more than 1% each, weighing on the technology .SPLRCT and consumer discretionary .SPLRCD sectors. By Johann M Cherian and Sruthi Shankar Feb 17 (Reuters) - U.S. stock indexes slipped on Friday on weakness in megcap and energy stocks as investors worried that stubborn inflation and signs of strength in the U.S. economy could put the Federal Reserve on pace for more interest rate hikes this year. Wall Street indexes turned volatile this week following a strong start to 2023 as economic data pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room for to raise borrowing costs.
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17064.0
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2023-02-17 00:00:00 UTC
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A Once-in-a-Decade Investing Opportunity Is Here. 2 Vanguard ETFs to Buy Now.
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AAPL
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https://www.nasdaq.com/articles/a-once-in-a-decade-investing-opportunity-is-here.-2-vanguard-etfs-to-buy-now.
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nan
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nan
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The past year has been rough for investors, but there's a silver lining: Now is a more affordable time to invest. Though the market has rebounded slightly over the last several weeks, many stocks are still well below their all-time highs -- making it the perfect chance to load up on quality investments for a fraction of the cost.
Choosing the right investments is critical, though, and there are two Vanguard ETFs that could be great buys right now.
Is now a smart time to invest?
The market has experienced a phenomenal bull run over the past decade, which is good for your portfolio but not for your wallet. Stock prices have soared in the years following the Great Recession, making it a wildly expensive time to buy.
But now that the market is in a slump, this may be your best chance to save money on normally high-priced stocks. Once the market recovers, it could be years before stocks are priced at such steep discounts again.
The key, though, is to invest in the right places and hold those investments for the long term. No one can say how the market will perform in the near term, but by investing in quality stocks or funds during the market's low points and waiting for the rebound, you could make lots of money.
2 ETFs to stock up on right now
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 and aims to mirror the index's performance. This fund includes stocks from 500 of the largest companies in the U.S., many of which are behemoth corporations and household names.
Because this fund is comprised only of the strongest stocks, it's far more likely to rebound from downturns and experience consistent growth over time.
The Vanguard S&P 500 ETF has earned an average annual return of 12.64% over the past 10 years, and its largest holdings include Apple, Microsoft, and Amazon. If you're nervous about the stock market or simply want a safe ETF you can count on to perform well over time, this is a fantastic option.
An additional perk is that this ETF has an incredibly low expense ratio of just 0.03%. This is substantially lower than that of the average fund and over decades, could save you thousands of dollars in fees.
2. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) contains 253 stocks with the potential for faster-than-average growth and attempts to beat the market over time. This investment is unique among growth ETFs because it balances risk and reward.
Roughly half of the fund is made up of blue chip stocks like Apple, Visa, and Home Depot. Many of these stocks still experience above-average growth but are also industry giants that carry less risk.
In addition to those stocks, this ETF also includes many smaller companies that have the potential for explosive returns. These under-the-radar stocks may be higher risk than the blue chips, but if any of them take off, you could see lucrative returns.
If you're willing to take on more risk for the chance of beating the market, right now may be your best time to buy. Growth stocks have been pummeled during this downturn, and by investing now, you'll be well-positioned to take advantage of the upswing.
The stock market can be daunting, but right now may be a once-in-a-decade buying opportunity. By investing in the right places and riding out the storm, you could earn more than you might think when the market inevitably recovers.
10 stocks we like better than Vanguard S&P 500 ETF
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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. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa. 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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Though the market has rebounded slightly over the last several weeks, many stocks are still well below their all-time highs -- making it the perfect chance to load up on quality investments for a fraction of the cost. Stock prices have soared in the years following the Great Recession, making it a wildly expensive time to buy. The Vanguard S&P 500 ETF has earned an average annual return of 12.64% over the past 10 years, and its largest holdings include Apple, Microsoft, and Amazon.
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The Vanguard S&P 500 ETF has earned an average annual return of 12.64% over the past 10 years, and its largest holdings include Apple, Microsoft, and Amazon. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa. 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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Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 253 stocks with the potential for faster-than-average growth and attempts to beat the market over time. 10 stocks we like better than Vanguard S&P 500 ETF When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa.
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2 ETFs to stock up on right now 1. Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 253 stocks with the potential for faster-than-average growth and attempts to beat the market over time. If you're willing to take on more risk for the chance of beating the market, right now may be your best time to buy.
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17065.0
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2023-02-17 00:00:00 UTC
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Validea Daily Guru Fundamental Report for AAPL - 2/17/2023
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AAPL
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https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-aapl-2-17-2023
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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.
Company Description: Apple Inc. (Apple) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a range of related services. The Company's products include iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and accessories. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+. Apple also offers a range of other services, such as AppleCare, iCloud, Apple Card and Apple Pay. Apple sells its products and resells third-party products in a range of markets, including directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.
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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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). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett.
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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. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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17066.0
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2023-02-17 00:00:00 UTC
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INTERVIEW-India's Redington expects double-digit growth, to enter new markets
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AAPL
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https://www.nasdaq.com/articles/interview-indias-redington-expects-double-digit-growth-to-enter-new-markets
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nan
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nan
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By Praveen Paramasivam
CHENNAI, Feb 17 (Reuters) - India's Redington Ltd REDI.NS is targeting double-digit revenue growth for the next financial year and a foray into new markets, betting on a pandemic-led push for digitising corporate and government offices, its top boss told Reuters on Friday.
Redington, which distributes products for over 290 brands, including Apple AAPL.O and Samsung 005930.KS, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said.
Chennai-based Redington, which operates in 38 countries, is also increasing its 4,500-odd workforce by 5% globally in about a year.
The expansion comes at a time when global economies are contending with a slowdown, and the pandemic-led demand for consumer electronics is fading out as schools and offices reopened.
Still, the drive towards digitisation by governments and businesses is a "one-way street" as offices would have to continue to spend on servers, storage and software upgrades driving revenue growth for companies like Redington, Srivastava said in the interview.
Redington earlier this month recorded its highest-ever quarterly revenue for the three months ended Dec. 31 even as its profit slipped due to higher expenses.
Srivastava said Redington, which has reported a double-digit topline growth for the last three years, would continue to be on a similar trajectory for the year ending March 2024.
Analysts, on average, expect revenue for the period to climb nearly 11% to 862.74 billion rupees ($10.42 billion), according to IBES data from Refinitiv.
The Redington MD further said that new gadget launches would now reach Indian consumers faster, given the recent electronics manufacturing boom coming on the back of global businesses looking to limit their reliance on China.
The company's shares, which climbed nearly 25% in 2022, closed marginally lower at 179.85 rupees on Friday.
($1 = 82.8140 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Sohini Goswami)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Redington, which distributes products for over 290 brands, including Apple AAPL.O and Samsung 005930.KS, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said. The expansion comes at a time when global economies are contending with a slowdown, and the pandemic-led demand for consumer electronics is fading out as schools and offices reopened. The Redington MD further said that new gadget launches would now reach Indian consumers faster, given the recent electronics manufacturing boom coming on the back of global businesses looking to limit their reliance on China.
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Redington, which distributes products for over 290 brands, including Apple AAPL.O and Samsung 005930.KS, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said. By Praveen Paramasivam CHENNAI, Feb 17 (Reuters) - India's Redington Ltd REDI.NS is targeting double-digit revenue growth for the next financial year and a foray into new markets, betting on a pandemic-led push for digitising corporate and government offices, its top boss told Reuters on Friday. Still, the drive towards digitisation by governments and businesses is a "one-way street" as offices would have to continue to spend on servers, storage and software upgrades driving revenue growth for companies like Redington, Srivastava said in the interview.
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Redington, which distributes products for over 290 brands, including Apple AAPL.O and Samsung 005930.KS, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said. By Praveen Paramasivam CHENNAI, Feb 17 (Reuters) - India's Redington Ltd REDI.NS is targeting double-digit revenue growth for the next financial year and a foray into new markets, betting on a pandemic-led push for digitising corporate and government offices, its top boss told Reuters on Friday. Still, the drive towards digitisation by governments and businesses is a "one-way street" as offices would have to continue to spend on servers, storage and software upgrades driving revenue growth for companies like Redington, Srivastava said in the interview.
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Redington, which distributes products for over 290 brands, including Apple AAPL.O and Samsung 005930.KS, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said. The expansion comes at a time when global economies are contending with a slowdown, and the pandemic-led demand for consumer electronics is fading out as schools and offices reopened. Srivastava said Redington, which has reported a double-digit topline growth for the last three years, would continue to be on a similar trajectory for the year ending March 2024.
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17067.0
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2023-02-17 00:00:00 UTC
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Google, Twitter, Meta, Apple face tougher EU online content rules
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AAPL
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https://www.nasdaq.com/articles/google-twitter-meta-apple-face-tougher-eu-online-content-rules
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Feb 17 (Reuters) - Alphabet Inc's GOOGL.O Google, Facebook parent Meta Platforms Inc META.O, Twitter and Apple AAPL.O face stricter EU online content rules, based on monthly user numbers published by the companies, which exceeded an EU threshold for big online platforms.
The new rules known as the Digital Services Act (DSA) label companies with more than 45 million users as very large online platforms and subject to obligations such as risk management and external and independent auditing. They are also required to share data with authorities and researchers and adopt a code of conduct.
The European Commission had given online platforms and search engines until Feb. 17 to publish their monthly active users. Very large online platforms have four months to comply with the rules or risk fines.
Twitter said it has 100.9 million average monthly users in the EU, based on an estimation of the last 45 days.
Alphabet provided one set of numbers based on users' accounts and another set based on signed-out recipients, saying users can access its services whether they sign in to an account or are signed out.
It said the average monthly number of signed-in users totalled 278.6 million at Google Maps, 274.6 million at Google Play, 332 million at Google Search, 74.9 million at Shopping and 401.7 million at YouTube.
Apple said only its App Store built for its iPhones, with more than 45 million monthly users, qualifies as a very large online platform. But it will also apply the same rules to the App Store for iPads, Mac computers, Apple Watch and TV.
"Apple intends, on an entirely voluntary basis, to align each of the existing versions of the App Store (including those that do not currently meet the VLOP designation threshold) with the existing DSA requirements for VLOPs because the goals of the DSA align with Apple’s goals to protect consumers from illegal content," it said in a statement.
EBay EBAY.O said it is below the EU user threshold.
Earlier this week, Meta Platforms said it had 255 million average monthly active users on Facebook in the EU and about 250 million average monthly active users on Instagram in the last six months of 2022.
(Reporting by Foo Yun Chee in Brussels Editing by Matthew Lewis and Jane Merriman)
((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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By Foo Yun Chee BRUSSELS, Feb 17 (Reuters) - Alphabet Inc's GOOGL.O Google, Facebook parent Meta Platforms Inc META.O, Twitter and Apple AAPL.O face stricter EU online content rules, based on monthly user numbers published by the companies, which exceeded an EU threshold for big online platforms. The new rules known as the Digital Services Act (DSA) label companies with more than 45 million users as very large online platforms and subject to obligations such as risk management and external and independent auditing. "Apple intends, on an entirely voluntary basis, to align each of the existing versions of the App Store (including those that do not currently meet the VLOP designation threshold) with the existing DSA requirements for VLOPs because the goals of the DSA align with Apple’s goals to protect consumers from illegal content," it said in a statement.
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By Foo Yun Chee BRUSSELS, Feb 17 (Reuters) - Alphabet Inc's GOOGL.O Google, Facebook parent Meta Platforms Inc META.O, Twitter and Apple AAPL.O face stricter EU online content rules, based on monthly user numbers published by the companies, which exceeded an EU threshold for big online platforms. It said the average monthly number of signed-in users totalled 278.6 million at Google Maps, 274.6 million at Google Play, 332 million at Google Search, 74.9 million at Shopping and 401.7 million at YouTube. Earlier this week, Meta Platforms said it had 255 million average monthly active users on Facebook in the EU and about 250 million average monthly active users on Instagram in the last six months of 2022.
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By Foo Yun Chee BRUSSELS, Feb 17 (Reuters) - Alphabet Inc's GOOGL.O Google, Facebook parent Meta Platforms Inc META.O, Twitter and Apple AAPL.O face stricter EU online content rules, based on monthly user numbers published by the companies, which exceeded an EU threshold for big online platforms. It said the average monthly number of signed-in users totalled 278.6 million at Google Maps, 274.6 million at Google Play, 332 million at Google Search, 74.9 million at Shopping and 401.7 million at YouTube. Earlier this week, Meta Platforms said it had 255 million average monthly active users on Facebook in the EU and about 250 million average monthly active users on Instagram in the last six months of 2022.
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By Foo Yun Chee BRUSSELS, Feb 17 (Reuters) - Alphabet Inc's GOOGL.O Google, Facebook parent Meta Platforms Inc META.O, Twitter and Apple AAPL.O face stricter EU online content rules, based on monthly user numbers published by the companies, which exceeded an EU threshold for big online platforms. Apple said only its App Store built for its iPhones, with more than 45 million monthly users, qualifies as a very large online platform. Earlier this week, Meta Platforms said it had 255 million average monthly active users on Facebook in the EU and about 250 million average monthly active users on Instagram in the last six months of 2022.
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17068.0
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2023-02-17 00:00:00 UTC
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3 Stocks We Love to Trade
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AAPL
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https://www.nasdaq.com/articles/3-stocks-we-love-to-trade
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nan
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nan
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You may have finished celebrating Valentine’s Day, but gifting something unique, like a stock that will enhance the financial well-being of your partner, shouldn’t be limited to a day. If you plan to gift shares, we recommend stocks with the highest trading volume. Using TipRanks’ U.S. Stock Movers tool, we have selected Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL).
Our data shows that Tesla has the highest average trading volume of 160.66M. It is followed by Amazon and Apple, with an average trading volume of 76.18M and 75.63M, respectively.
These three stocks have a good chance of making your loved ones wealthier by the next Valentine’s Day. Holding these stocks for longer can be even more rewarding. Let’s dig deeper.
What is Tesla’s Highest Price Target?
TSLA stock is riding high on solid demand and an expected improvement in production. It has gained about 64% year-to-date in 2023. Moreover, its highest price target of $300 from Piper Sandler analyst Alexander Potter shows a further upside of 48.49%.
Among the 31 analysts providing recommendations on Tesla stock, 22 have rated it a Buy. Meanwhile, six analysts have a Hold, while three maintain Sell recommendations. In aggregate, TSLA stock sports a Moderate Buy consensus rating. As Tesla stock gained quite a lot in 2022, the analysts’ consensus 12-month price target of $202.46 is roughly in line with its closing price on February 16.
Nevertheless, TSLA stock has a positive signal from hedge fund managers, who bought 780.8K shares in the previous quarter. Meanwhile, TSLA has an Outperform Smart Score of nine.
What is the Future of Amazon Stock?
Amazon is a leader in the e-commerce and cloud spaces, implying the company has stellar growth prospects in the coming years. Its stock took a beating amid pressure on consumer spending due to macro headwinds, adverse currency movements, and increased cost pressure. However, these issues are transitory, and AMZN will likely deliver solid growth as the macro environment shows signs of improvement.
This is also reflected in analysts’ positive ratings on AMZN stock. Among the analysts covering AMZN stock, 36 rate it a Buy. Meanwhile, only three analysts recommend a Hold. Overall, Amazon sports a Strong Buy consensus rating on TipRanks. Amazon stock is up about 17% year-to-date. Further, analysts’ average 12-month price target of $137.05 implies 39.63% upside potential.
Besides for analysts, hedge funds are also optimistic about Amazon. They bought 17.3M shares of AMZN last quarter. With positive signals from analysts and hedge funds, Amazon carries an Outperform Smart Score of nine.
Is Apple Still a Good Long-Term investment?
The macro headwinds weighed on Apple’s sales in Q1. However, its long-term fundamentals remain intact, as AAPL is poised to benefit from strength in the Services segment, an increase in its installed base, and demand for its devices, including the iPhone.
Analysts also maintain a favorable outlook on AAPL stock. Among the 29 analysts providing ratings on AAPL stock, 24 rated it a Buy, and five recommended Hold. Overall, it has a Strong Buy consensus rating.
AAPL stock also has a positive signal from hedge fund managers, who bought 11.2M shares last quarter. It’s worth highlighting that Warren Buffett has also increased his holding in AAPL stock. Meanwhile, BlackRock (NYSE:BLK) bought more AAPL stock in Q4. Apple stock has a maximum Smart Score of “Perfect 10.” Note that shares with a “Perfect 10” Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin.
Bottom Line
Valentine’s Day is over, but you can always gift something unique, like a stock, to your loved ones that will add to their financial freedom. TSLA, AMZN, and AAPL are U.S. stocks with solid long-term growth prospects. All these stocks carry an Outperform Smart Score on TipRanks, suggesting they are more likely to outperform the benchmark index.
Meanwhile, investors can leverage TipRanks’ Experts Center tool to identify top stocks that can outperform the broader market averages.
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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However, its long-term fundamentals remain intact, as AAPL is poised to benefit from strength in the Services segment, an increase in its installed base, and demand for its devices, including the iPhone. Using TipRanks’ U.S. Stock Movers tool, we have selected Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL). Analysts also maintain a favorable outlook on AAPL stock.
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Using TipRanks’ U.S. Stock Movers tool, we have selected Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL). AAPL stock also has a positive signal from hedge fund managers, who bought 11.2M shares last quarter. However, its long-term fundamentals remain intact, as AAPL is poised to benefit from strength in the Services segment, an increase in its installed base, and demand for its devices, including the iPhone.
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Using TipRanks’ U.S. Stock Movers tool, we have selected Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL). Among the 29 analysts providing ratings on AAPL stock, 24 rated it a Buy, and five recommended Hold. However, its long-term fundamentals remain intact, as AAPL is poised to benefit from strength in the Services segment, an increase in its installed base, and demand for its devices, including the iPhone.
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Among the 29 analysts providing ratings on AAPL stock, 24 rated it a Buy, and five recommended Hold. TSLA, AMZN, and AAPL are U.S. stocks with solid long-term growth prospects. Using TipRanks’ U.S. Stock Movers tool, we have selected Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL).
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17069.0
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2023-02-17 00:00:00 UTC
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Here is What to Know Beyond Why Apple Inc. (AAPL) is a Trending Stock
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AAPL
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-apple-inc.-aapl-is-a-trending-stock-3
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +13.6% over the past month versus the Zacks S&P 500 composite's +2.5% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 14.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of -5.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.2%.
For the current fiscal year, the consensus earnings estimate of $6.05 points to a change of -1% from the prior year. Over the last 30 days, this estimate has changed -2.3%.
For the next fiscal year, the consensus earnings estimate of $6.63 indicates a change of +9.7% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Apple, the consensus sales estimate of $93.75 billion for the current quarter points to a year-over-year change of -3.6%. The $391.15 billion and $417.84 billion estimates for the current and next fiscal years indicate changes of -0.8% and +6.8%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $117.15 billion in the last reported quarter, representing a year-over-year change of -5.5%. EPS of $1.88 for the same period compares with $2.10 a year ago.
Compared to the Zacks Consensus Estimate of $121.21 billion, the reported revenues represent a surprise of -3.34%. The EPS surprise was -2.59%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.63 indicates a change of +9.7% from what Apple is expected to report a year ago.
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17070.0
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2023-02-16 00:00:00 UTC
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US STOCKS-Wall St slides as inflation, jobless claims data fuel rate-hike angst
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-inflation-jobless-claims-data-fuel-rate-hike-angst
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nan
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nan
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By Johann M Cherian
Feb 16 (Reuters) - U.S. main stock indexes fell more than 1% on Thursday after stronger-than-expected inflation data and a fall in weekly jobless claims fed into fears that the Federal Reserve will keep raising interest rates to tame high prices.
A Labor Department report showed producer prices climbed 0.7% in January, more than the estimate for a 0.4% increase, highlighting persistent price pressures despite the tighter monetary policy.
Another set showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering more evidence of the economy's resilience.
"You're seeing the inflation numbers continue to be higher than expected and not really showing disinflation and now the expectations are that the Fed is likely to take rates higher and be more aggressive going forward," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance at Charlotte, North Carolina.
"You're also seeing the job market still very strong as well, with claims coming in less than expected."
After a torrid 2022, the main stock indexes have climbed this year on the back of upbeat earnings and expectations that the U.S. central bank will switch to smaller rate hikes.
However, signs of a resilient economy and an acceleration in January consumer prices have recently raised concerns among traders that the Fed may not hit pause on its hawkish policies anytime soon, with hopes of rate cuts later this year receding further.
The Fed is seen pushing the benchmark rate above the 5% mark by May and keeping it above those levels till the year-end. 0#FEDWATCH
At 10:09 a.m. ET, the Dow Jones Industrial Average .DJI was down 383.90 points, or 1.12%, at 33,744.15, the S&P 500 .SPX was down 46.70 points, or 1.13%, at 4,100.90, and the Nasdaq Composite .IXIC was down 136.01 points, or 1.13%, at 11,934.59.
All the 11 major S&P 500 sectors posted losses of more than 1%, with the real estate .SPLRCR leading the declines.
Adding to the downbeat mood, Cleveland Fed President Loretta Mester said inflation remains too high and noted that she was open to raising rates by more than what her colleagues wanted at the last monetary policy meeting.
Traders will also scrutinize remarks from other Fed officials, including St. Louis Fed President James Bullard, to assess the central bank's tone on monetary policy.
Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell between 0.8% and 2.7% as U.S. Treasury yields rose. US/
Cisco Systems Inc CSCO.O rose 5.1% to hit a nine-month high after the network gear maker raised its full-year earnings forecast.
Roku Inc ROKU.O soared 14.9% after the company forecast first-quarter revenue above Wall Street estimates.
Shopify Inc SHOP.N sank 15.8% after the Canadian ecommerce company forecast slowing revenue growth for the current quarter despite price hikes and new product launches.
Declining issues outnumbered advancers for a 5.76-to-1 ratio on the NYSE and 2.82-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and one new lows, while the Nasdaq recorded 28 new highs and 22 new lows.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Anil D'Silva and Sriraj Kalluvila)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell between 0.8% and 2.7% as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. main stock indexes fell more than 1% on Thursday after stronger-than-expected inflation data and a fall in weekly jobless claims fed into fears that the Federal Reserve will keep raising interest rates to tame high prices. However, signs of a resilient economy and an acceleration in January consumer prices have recently raised concerns among traders that the Fed may not hit pause on its hawkish policies anytime soon, with hopes of rate cuts later this year receding further.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell between 0.8% and 2.7% as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. main stock indexes fell more than 1% on Thursday after stronger-than-expected inflation data and a fall in weekly jobless claims fed into fears that the Federal Reserve will keep raising interest rates to tame high prices. After a torrid 2022, the main stock indexes have climbed this year on the back of upbeat earnings and expectations that the U.S. central bank will switch to smaller rate hikes.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell between 0.8% and 2.7% as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. main stock indexes fell more than 1% on Thursday after stronger-than-expected inflation data and a fall in weekly jobless claims fed into fears that the Federal Reserve will keep raising interest rates to tame high prices. "You're seeing the inflation numbers continue to be higher than expected and not really showing disinflation and now the expectations are that the Fed is likely to take rates higher and be more aggressive going forward," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance at Charlotte, North Carolina.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell between 0.8% and 2.7% as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. main stock indexes fell more than 1% on Thursday after stronger-than-expected inflation data and a fall in weekly jobless claims fed into fears that the Federal Reserve will keep raising interest rates to tame high prices. A Labor Department report showed producer prices climbed 0.7% in January, more than the estimate for a 0.4% increase, highlighting persistent price pressures despite the tighter monetary policy.
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17071.0
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2023-02-16 00:00:00 UTC
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After Hours Most Active for Feb 16, 2023 : IEF, AAPL, T, MNTV, DASH, DKNG, TSLA, AMZN, KO, ETWO, PFE, ORCL
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-16-2023-%3A-ief-aapl-t-mntv-dash-dkng-tsla-amzn-ko-etwo-pfe
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -28.35 to 12,414.13. The total After hours volume is currently 101,856,244 shares traded.
The following are the most active stocks for the after hours session:
iShares 7-10 Year Treasury Bond ETF (IEF) is +0.108 at $96.25, with 8,661,856 shares traded. This represents a 4.07% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.49 at $153.22, with 5,214,262 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.43. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
AT&T Inc. (T) is -0.02 at $19.24, with 3,224,820 shares traded. T's current last sale is 85.51% of the target price of $22.5.
Momentive Global Inc. (MNTV) is unchanged at $7.85, with 2,963,759 shares traded. As reported in the last short interest update the days to cover for MNTV is 8.7139; this calculation is based on the average trading volume of the stock.
DoorDash, Inc. (DASH) is +4.83 at $71.72, with 2,417,694 shares traded. Smarter Analyst Reports: Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
DraftKings Inc. (DKNG) is +1.39 at $19.20, with 2,379,643 shares traded. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2%
Tesla, Inc. (TSLA) is -1.78 at $200.26, with 2,307,062 shares traded. TSLA's current last sale is 100.13% of the target price of $200.
Amazon.com, Inc. (AMZN) is -0.11 at $98.04, with 2,077,412 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 $0.29. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Coca-Cola Company (The) (KO) is unchanged at $59.22, with 2,021,874 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 $0.64. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
E2open Parent Holdings, Inc. (ETWO) is unchanged at $6.29, with 1,510,115 shares traded. ETWO's current last sale is 78.63% of the target price of $8.
Pfizer, Inc. (PFE) is +0.14 at $43.09, with 1,209,412 shares traded. PFE's current last sale is 86.18% of the target price of $50.
Oracle Corporation (ORCL) is unchanged at $87.72, with 1,053,373 shares traded. ORCL's current last sale is 95.35% of the target price of $92.
The views and 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 -0.49 at $153.22, with 5,214,262 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 Sep 2023.
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Apple Inc. (AAPL) is -0.49 at $153.22, with 5,214,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 101,856,244 shares traded.
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Apple Inc. (AAPL) is -0.49 at $153.22, with 5,214,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 101,856,244 shares traded.
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Apple Inc. (AAPL) is -0.49 at $153.22, with 5,214,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is -0.02 at $19.24, with 3,224,820 shares traded.
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17072.0
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2023-02-16 00:00:00 UTC
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Grading Berkshire Hathaway's Q4 Trades
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AAPL
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https://www.nasdaq.com/articles/grading-berkshire-hathaways-q4-trades
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nan
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nan
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(0:15) - What Can We Learn From Berkshire Hathaways 13F?
(4:30) - Breaking Down Q4 Sells and Growing Positions: How Did They Perform?
(15:50) - What Was Berkshire Hathaway Buying With Their Cash Reserves?
(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA
Podcast@Zacks.com
Welcome to Episode #317 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The fourth quarter 2022 13-F filings are out and that means value investors get to see what stocks Warren Buffett, and Berkshire Hathaway, are buying, or selling. Many investors follow his trades to a “t” even going as far as replicating them.
But should you?
This filing had some surprising sales and few stock purchases, even though the stock market was still selling off, and many stocks were cheap on a valuation basis, and Berkshire was still sitting on a pile of cash.
What is Buffett waiting for? Is his lack of purchases a sign that he thinks stocks have further to sell-off? Or did he “miss” the bottom again, like he did in 2020’s pandemic sell-off when he also didn’t jump in to buy?
Let’s look at 5 of the key buys and sales in Q4.
Berkshire Hathaway’s Big Buys, and Sales, in the Fourth Quarter of 2022
1. Taiwan Semiconductor TSM
Berkshire Hathaway first bought a position in Taiwan Semiconductor in the third quarter of 2022 to much fanfare. It was a $4.2 billion position and the first semiconductor company to be in the portfolio for years.
But in the fourth quarter, just a few months later, Berkshire sold 86% of its Taiwan Semiconductor shares. It went from 60 million shares to just 8.3 million.
What happened to the infamous Buffett strategy of the best time to sell is never? Even worse, shares of Taiwan Semiconductor have rallied big in 2023, adding 24.5%.
Does this sale of Taiwan Semiconductor make any sense?
2. Chevron CVX
Berkshire Hathaway has gone all in on the energy companies over the last 2 years, buying billions of dollars of Chevron and Occidental Petroleum.
But in the fourth quarter of 2022, it sold 1%, or 2.4 million shares, of its Chevron position. This was also a head scratcher to many. What’s the point of selling such a small position?
Is Buffett still a big believer in Chevron?
3. US Bancorp USB
Berkshire continues to sell shares of its regional banks. It first bought US Bancorp in the first quarter of 2006. But in the fourth quarter, it sold 91% of its shares.
US Bancorp is now just a 0.10% position in the Berkshire portfolio. Will it be completely eliminated in Q1 of this year?
US Bancorp shares are up 12.5% year-to-date, but over the last 5 years are down 11.7%. It’s been tough owning the banks.
4. Apple AAPL
Apple remains Berkshire’s largest position in its equity portfolio, at 38.9% of the portfolio. But that didn’t keep Berkshire from adding to its position in the fourth quarter as the Apple shares sold off.
Berkshire bought 333,856 shares of Apple in the fourth quarter, but it has 895 million shares so this is really a small buy. Why not buy more? Berkshire has plenty of cash to do so.
Does Apple remain the jewel in the Berkshire crown?
5. Amazon AMZN
Berkshire has a small position in Amazon that it bought in the first quarter of 2019. It has never sold, nor bought, any more shares.
But Amazon’s shares fell 50% last year and are still down 35% over the last year even with 2023’s rally.
Why not buy more, like Berkshire did with Apple, when they sold off? This has not been a good trade for Berkshire. From Mar 29, 2019 to Feb 15, 2023, the shares are up just 12.6% but, meanwhile, the S&P 500 was up 45.9% during the same time. And that’s without the dividends included.
What’s going on with the Amazon position?
What Else Do You Need to Know About Berkshire’s Fourth Quarter Trades?
Listen to this week’s podcast to find out.
Infrastructure Stock Boom to Sweep America
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The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : 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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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Welcome to Episode #317 of the Value Investor Podcast. Apple AAPL Apple remains Berkshire’s largest position in its equity portfolio, at 38.9% of the portfolio. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. (20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Welcome to Episode #317 of the Value Investor Podcast. Apple AAPL Apple remains Berkshire’s largest position in its equity portfolio, at 38.9% of the portfolio.
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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 Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. (20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Welcome to Episode #317 of the Value Investor Podcast. Apple AAPL Apple remains Berkshire’s largest position in its equity portfolio, at 38.9% of the portfolio.
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(20:35) - Episode Roundup: TSM, USB, BK, BAC, CVX, AAPL, LPX, PARA Podcast@Zacks.com Welcome to Episode #317 of the Value Investor Podcast. Apple AAPL Apple remains Berkshire’s largest position in its equity portfolio, at 38.9% of the portfolio. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17073.0
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2023-02-16 00:00:00 UTC
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EXCLUSIVE-SoftBank's Arm China profit drops over 90% in 2022 -document
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AAPL
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https://www.nasdaq.com/articles/exclusive-softbanks-arm-china-profit-drops-over-90-in-2022-document
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nan
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nan
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By Jane Lanhee Lee and Kane Wu
OAKLAND, Calif./HONG KONG, Feb 16 (Reuters) - Chip technology firm Arm China suffered a 90% drop in profit last year despite revenue rising more than 30% during the first year management appointed by SoftBank Group Corp 9984.T took over, according to a financial document reviewed by Reuters.
The company, set up in 2018 as a joint venture of British chip technology firm Arm Ltd, laid off nearly 100 employees last week, most of them engineers, Reuters reported exclusively on Friday.
Arm technology powers most global smartphones and the company counts Apple Inc AAPL.O and Qualcomm Inc QCOM.O as customers.
SoftBank had said early last year it was aiming to take Arm Ltd public by the end of March; last week Arm's CEO told Reuters the firm was committed to a listing this year.
The China business is the exclusive distributor of Arm chip technology in China and develops and sells its own chip designs based on Arm. It accounts for 20%-25% of Arm Ltd's global revenue, according to two sources familiar with the situation.
One of the sources said the drop in Arm China's profit would not have a financial impact on Arm Ltd, whose royalty and licensing fee payments come before profit is calculated. In 2021, the China business paid Arm about $500 million, the two sources said. It is not clear how much Arm Ltd made from China last year.
“The Arm Ltd IP business part of Arm China is performing very well and we are positioned for continued growth going forward. The new management team has quickly restored confidence with our China ecosystem, and we are pleased to have the previous management issues well behind us as we expand Arm technology into the China market,” said Phil Hughes, Arm's vice president of external communications, in a prepared statement.
SoftBank and Arm China did not respond to requests for comment.
Arm China's net profit plunged to $3.2 million last year from $79.2 million in 2021, while revenue grew to nearly $890 million last year from $665 million the year before, according to the company's 2022 unaudited earnings statement, seen by Reuters and confirmed by another independent source.
According to the statement's footnote there is a $37 million loss in foreign exchange in 2022, compared with a gain of $9 million the previous year.
Both sources declined to be identified as the information was confidential.
Arm Ltd has been considered one of the better performing assets at SoftBank, where its startup investment Vision Fund has had four straight quarters of losses. The bulk of the loss at the fund in the latest reported quarter came from a steep decline in the valuation of investments in unlisted companies, but listed portfolio companies, Indonesian ride-hailing company Goto Gojek Tokopedia PT GOTO.JK, South Korean e-commerce platform Coupang Inc CPNG.N and workspace provider WeWork Inc WE.N also contributed to the loss.
ARM CHINA'S STRUGGLES
Arm China has been a challenging business for SoftBank to navigate. Set up in 2018 with longtime Arm executive Allen Wu as CEO, SoftBank allowed Chinese funds together to take a majority stake in the joint venture.
Wu is credited with expanding the China business, according to two sources familiar with the company. But the relationship between Wu and some of the major shareholders soured over conflict of interest issues around Wu's own investment fund. That turned into a two-year public battle as SoftBank worked to oust Wu.
To shield Arm Ltd from the China troubles as it aimed to take Arm public, SoftBank last March transferred Arm Ltd's stake in the joint venture into a separate special-purpose vehicle, according to two sources with knowledge of the matter. One of them said, however, that the official Chinese records still show Arm Ltd as a shareholder.
By late April 2022, SoftBank pushed out Wu from Arm China by physically and digitally blocking him, and put in place two CEOs, Eric Chen from SoftBank and Liu Renchen, vice dean at the Research Institute of Tsinghua University in Shenzhen.
(Reporting by Jane Lanhee Lee in Oakland, Calif., and Kane Wu in Hong Kong Additional reporting by Josh Horwitz in Shanghai Editing by Kenneth Li, Gerry Doyle and Matthew Lewis)
((jane.lee@thomsonreuters.com; +1-415-344-3912; Reuters Messaging: jane.lee.thomsonreuters@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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Arm technology powers most global smartphones and the company counts Apple Inc AAPL.O and Qualcomm Inc QCOM.O as customers. The company, set up in 2018 as a joint venture of British chip technology firm Arm Ltd, laid off nearly 100 employees last week, most of them engineers, Reuters reported exclusively on Friday. Set up in 2018 with longtime Arm executive Allen Wu as CEO, SoftBank allowed Chinese funds together to take a majority stake in the joint venture.
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Arm technology powers most global smartphones and the company counts Apple Inc AAPL.O and Qualcomm Inc QCOM.O as customers. By Jane Lanhee Lee and Kane Wu OAKLAND, Calif./HONG KONG, Feb 16 (Reuters) - Chip technology firm Arm China suffered a 90% drop in profit last year despite revenue rising more than 30% during the first year management appointed by SoftBank Group Corp 9984.T took over, according to a financial document reviewed by Reuters. Arm China's net profit plunged to $3.2 million last year from $79.2 million in 2021, while revenue grew to nearly $890 million last year from $665 million the year before, according to the company's 2022 unaudited earnings statement, seen by Reuters and confirmed by another independent source.
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Arm technology powers most global smartphones and the company counts Apple Inc AAPL.O and Qualcomm Inc QCOM.O as customers. By Jane Lanhee Lee and Kane Wu OAKLAND, Calif./HONG KONG, Feb 16 (Reuters) - Chip technology firm Arm China suffered a 90% drop in profit last year despite revenue rising more than 30% during the first year management appointed by SoftBank Group Corp 9984.T took over, according to a financial document reviewed by Reuters. Arm China's net profit plunged to $3.2 million last year from $79.2 million in 2021, while revenue grew to nearly $890 million last year from $665 million the year before, according to the company's 2022 unaudited earnings statement, seen by Reuters and confirmed by another independent source.
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Arm technology powers most global smartphones and the company counts Apple Inc AAPL.O and Qualcomm Inc QCOM.O as customers. By Jane Lanhee Lee and Kane Wu OAKLAND, Calif./HONG KONG, Feb 16 (Reuters) - Chip technology firm Arm China suffered a 90% drop in profit last year despite revenue rising more than 30% during the first year management appointed by SoftBank Group Corp 9984.T took over, according to a financial document reviewed by Reuters. In 2021, the China business paid Arm about $500 million, the two sources said.
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17074.0
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2023-02-16 00:00:00 UTC
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3 Stocks to Buy for the Future of Wearables
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-the-future-of-wearables
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Factors such as health consciousness and consumer demand for luxury goods have made wearables an attractiveglobal market In terms of application, consumer electronics and healthcare have been the biggest contributors to the wearable technology market. With a robust growth outlook through the decade, wearables stocks are an attractive investment option.
To put things into perspective, the global wearables technology market was valued at $61.3 billion in 2022. The market is expected to grow at a CAGR of 14.6% through 2030. This presents a big opportunity, with wristwear, eyewear, and headwear likely the most significant contributors to growth.
Besides the increasing health consciousness after the pandemic, its augmented and virtual reality serve as growth catalysts. As the potential market size swells, competition has intensified. However, companies with significant investments in innovation are poised to grow.
Let’s discuss three wearables stocks that look attractive and poised to benefit from secular industry tailwinds.
Ticker Company Price
AAPL Apple $154.11
GOOG, GOOGL Alphabet $96.75, $96.52
GRMN Garmin $97.16
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. At a forward price-earnings ratio of 25.6, the innovator looks attractive and is poised to rally, with growth and diversification being catalysts.
For Q1 2023, Apple reported revenue of $13.5 billion from the wearables, home, and accessories segment. It’s likely that growth will accelerate in this segment in the coming years. It’s worth noting that as of Q3 2022, Apple had a leading market share of 29% in the wearable device segment.
On a year-on-year basis, the company’s market share has increased marginally. With Apple having a cash glut, there is ample flexibility to invest in product development and innovation. This will help the company maintain its leading market share.
There are speculations that Apple will be launching AR and VR headsets relatively soon. If this holds true, it will serve as another growth catalyst. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOG, GOOGL) stock is another name to consider among wearables stocks. Technology stocks have corrected in the last 12 months, and GOOGL stock trades at a forward price-earnings ratio of 18.5. The downside seems capped from current levels.
Coming to wearable devices or headsets, Alphabet has taken the acquisition route. In January 2021, Alphabet acquired Fitbit for a consideration of $2.1 billion. As of 2021, Fitbit had 111 million registered users, and for the same year, the company sold 10.6 million devices.
In May 2022, Alphabet acquired MicroLED start-up Raximum. The latter is focused on AR and VR applications. The acquisition, therefore, gives Alphabet inroads in the headset devices segment.
It’s worth mentioning that Alphabet’s core business is a cash flow machine. This gives the company ample flexibility to continue expansion in the wearables segment through acquisitions. At current valuations, GOOGL stock is worth accumulating for long-term value creation.
Garmin (GRMN)
Source: Karolis Kavolelis / Shutterstock.com
Garmin (NYSE:GRMN) is another stock that’s attractive from a valuation perspective. GRMN stock trades at a forward price-earnings ratio of 19.7 and offers a healthy dividend yield of 3.0%. It’s worth noting that the stock has remained sideways in the last six months. A breakout on the upside is impending after consolidation.
In the fitness segment, Garmin reported revenue of $280 million for Q3 2022. I believe that there are two key catalysts for growth in this segment. First, the launch of new products will boost growth. In Q3 2022, the company launched BPM smart blood pressure monitor.
Furthermore, Asia is likely to be a big market for the company. Within Asia, Garmin expects India to be among the top three markets in the next five years. India, with a population of 1.3 billion and a swelling middle class, provides ample growth opportunities.
I must mention that Garmin reported research and development expenses of $209 million for Q3. With significant investment in innovation, the company is positioned to deliver value.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 3 Stocks to Buy for the Future of Wearables 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 $154.11 GOOG, GOOGL Alphabet $96.75, $96.52 GRMN Garmin $97.16 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector. GRMN stock trades at a forward price-earnings ratio of 19.7 and offers a healthy dividend yield of 3.0%.
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Ticker Company Price AAPL Apple $154.11 GOOG, GOOGL Alphabet $96.75, $96.52 GRMN Garmin $97.16 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector. Alphabet (GOOG, GOOGL) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG, GOOGL) stock is another name to consider among wearables stocks.
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Ticker Company Price AAPL Apple $154.11 GOOG, GOOGL Alphabet $96.75, $96.52 GRMN Garmin $97.16 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Factors such as health consciousness and consumer demand for luxury goods have made wearables an attractiveglobal market In terms of application, consumer electronics and healthcare have been the biggest contributors to the wearable technology market.
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Ticker Company Price AAPL Apple $154.11 GOOG, GOOGL Alphabet $96.75, $96.52 GRMN Garmin $97.16 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector. At a forward price-earnings ratio of 25.6, the innovator looks attractive and is poised to rally, with growth and diversification being catalysts.
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17075.0
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2023-02-16 00:00:00 UTC
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US STOCKS-Wall St eyes lower open as producer prices rebound
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-as-producer-prices-rebound
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nan
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nan
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By Johann M Cherian
Feb 16 (Reuters) - U.S. stock indexes were on track to open sharply lower on Thursday after stronger-than-expected producer prices data fed into fears that the Federal Reserve will keep raising interest rates to tame stubbornly high inflation.
A Labor Department report showed producer prices climbed 0.7% in January after a 0.2% fall in the previous month. Economists polled by Reuters expected a 0.4% increase in January.
Another set showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering more evidence of the economy's resilience despite the tighter monetary policy.
"You're seeing the inflation numbers continue to be higher than expected and not really showing disinflation and now the expectations are that the Fed is likely to take rates higher and be more aggressive going forward," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance at Charlotte, North Carolina.
"You're also seeing the job market still very strong as well, with claims coming in less than expected," Zaccarelli added.
After a torrid 2022, the main stock indexes have climbed this year on the back of upbeat earnings and expectations that the U.S. central bank will switch to smaller rate hikes, pushing investors to scoop up beaten-down growth stocks.
However, signs of a resilient economy and an acceleration in January consumer prices recently raised concerns among traders that the central bank may not hit pause on its hawkish policies anytime soon, let alone pivot to cutting rates later this year.
The Fed is seen pushing the benchmark rate above the 5% mark by May and keeping it above those levels till the year-end. 0#FEDWATCH
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were down 274 points, or 0.8%, S&P 500 e-minis EScv1 were down 47.5 points, or 1.14%, and Nasdaq 100 e-minis NQcv1 were down 185.75 points, or 1.46%.
Adding to the downbeat mood, Cleveland Fed President Loretta Mester said inflation remains too high and noted that she was open to raising rates by more than what her colleagues wanted at the last monetary policy meeting.
Traders will also scrutinize remarks from other Fed officials, including St. Louis Fed President James Bullard, to assess the central bank's tone on monetary policy.
Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell more than 1% each in premarket trading as U.S. Treasury yields rose. US/
Cisco Systems Inc CSCO.O rose 2.8% after the network gear maker raised its full-year earnings forecast.
Roku Inc ROKU.O soared 5.2% after the company forecast first-quarter revenue above Wall Street estimates.
Shopify Inc SHOP.N sank 12.8% after the Canadian retailer forecast slowing revenue growth for the current quarter despite price hikes and new product launches.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell more than 1% each in premarket trading as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. stock indexes were on track to open sharply lower on Thursday after stronger-than-expected producer prices data fed into fears that the Federal Reserve will keep raising interest rates to tame stubbornly high inflation. However, signs of a resilient economy and an acceleration in January consumer prices recently raised concerns among traders that the central bank may not hit pause on its hawkish policies anytime soon, let alone pivot to cutting rates later this year.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell more than 1% each in premarket trading as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. stock indexes were on track to open sharply lower on Thursday after stronger-than-expected producer prices data fed into fears that the Federal Reserve will keep raising interest rates to tame stubbornly high inflation. A Labor Department report showed producer prices climbed 0.7% in January after a 0.2% fall in the previous month.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell more than 1% each in premarket trading as U.S. Treasury yields rose. By Johann M Cherian Feb 16 (Reuters) - U.S. stock indexes were on track to open sharply lower on Thursday after stronger-than-expected producer prices data fed into fears that the Federal Reserve will keep raising interest rates to tame stubbornly high inflation. "You're seeing the inflation numbers continue to be higher than expected and not really showing disinflation and now the expectations are that the Fed is likely to take rates higher and be more aggressive going forward," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance at Charlotte, North Carolina.
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Shares of high-growth stocks like Tesla TSLA.O, Nvidia NVDA.O, Alphabet GOOGL.O and Apple Inc AAPL.O fell more than 1% each in premarket trading as U.S. Treasury yields rose. A Labor Department report showed producer prices climbed 0.7% in January after a 0.2% fall in the previous month. However, signs of a resilient economy and an acceleration in January consumer prices recently raised concerns among traders that the central bank may not hit pause on its hawkish policies anytime soon, let alone pivot to cutting rates later this year.
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17076.0
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2023-02-16 00:00:00 UTC
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3 Stocks Investors Love
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AAPL
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https://www.nasdaq.com/articles/3-stocks-investors-love
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nan
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nan
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You may have finished celebrating Valentine’s Day, but gifting something unique, like a stock that will enhance the financial well-being of your partner, shouldn’t be limited to a day. If you plan to gift shares, we recommend stocks that are the most held by investors who maintain Smart Portfolios on TipRanks. Using TipRanks’ TipRanks Smart Portfolio tool, we have selected Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA).
Our data shows that AAPL is the most-held stock, followed by AMZN and TSLA. Further, 10.53% of the total Smart Portfolios hold AAPL stock, up 14.41% on average since last week. Meanwhile, 9.4% of the portfolios have AMZN and TSLA stocks, reflecting average increases in the past week of 40.81% and 19%, respectively.
These three stocks have a good chance of making your loved ones wealthier by the next Valentine’s Day. Holding these stocks for longer can be even more rewarding. Let’s dig deeper.
What’s the Prediction for Apple Stock?
Macro and currency headwinds, COVID-led challenges in China, and supply-chain issues weighed on Apple’s financials, which reported a 5% decline in sales in Q1 of Fiscal 2023. Its earnings of $1.88 per share came in below the Street's expectations.
Nevertheless, analysts see these short-term challenges to dissipate and highlight the strength in the Services segment and growing installed base of 2 billion active devices as a key growth driver.
Apple stock sports a Strong Buy consensus rating on TipRanks, reflecting 25 Buys and five Holds. Further, Wall Street’s average price target of $172.71 implies 11.19% upside potential.
Along with analysts, hedge funds are also bullish about AAPL stock. Our data shows that hedge funds bought 11.1M shares of AAPL last quarter. Further, Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) bought more of AAPL stock in the last quarter, while BlackRock (NYSE:BLK) also increased its holdings in AAPL.
Overall, Apple stock has a Neutral Smart Score of seven on TipRanks.
Is Amazon a Buy or Sell?
Currency headwinds, economic uncertainty, and higher inflation and interest rates continue to hurt Amazon’s financial performance and price. While challenges persist in the short term, Amazon is poised to gain from its leadership positions in e-commerce and cloud computing. Further, the strength of its advertising unit is positive.
Among 39 analysts, 36 have rated it a Buy. Meanwhile, three analysts recommend Hold. Further, analysts’ average price target of $137.05 on AMZN stock reflects 35.48% upside potential.
Besides for analysts, hedge funds are also bullish about AMZN stock. Hedge funds bought 17.3M shares of AMZN last quarter. Meanwhile, AMZN has a Neutral Smart Score of seven.
Is Tesla Stock Likely to Go Up?
The economic uncertainty and pressure on consumer spending will likely hurt the automotive industry and Tesla stock. However, Tesla CEO Elon Musk’s positive commentary about demand and production indicates that Tesla could outperform the broader market.
Tesla stock has already gained about 74% year-to-date in 2023. Thus, the consensus 12-month price target of $202.46 suggests a downside of 5.5% over the next 12 months. It has received 22 Buy, six Hold, and three Sell recommendations for a Moderate Buy consensus rating.
While analysts are cautiously optimistic, hedge funds sold 6.6M shares of TSLA in the last three months. TSLA stock has a Neutral Smart Score of nine.
Bottom Line
Valentine’s Day is over, but you can always gift something unique, like a stock, to your loved ones that will add to their financial freedom. AAPL, AMZN, and TSLA are solid long-term picks, making them attractive for gifting. However, due to the short-term headwinds, they carry a Neutral Smart Score on TipRanks.
Meanwhile, investors can leverage TipRanks’ Experts Center tool to identify top stocks that can outperform the broader market averages.
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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Using TipRanks’ TipRanks Smart Portfolio tool, we have selected Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). Our data shows that AAPL is the most-held stock, followed by AMZN and TSLA. Further, 10.53% of the total Smart Portfolios hold AAPL stock, up 14.41% on average since last week.
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Using TipRanks’ TipRanks Smart Portfolio tool, we have selected Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). Our data shows that hedge funds bought 11.1M shares of AAPL last quarter. Our data shows that AAPL is the most-held stock, followed by AMZN and TSLA.
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Using TipRanks’ TipRanks Smart Portfolio tool, we have selected Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). Our data shows that AAPL is the most-held stock, followed by AMZN and TSLA. Further, 10.53% of the total Smart Portfolios hold AAPL stock, up 14.41% on average since last week.
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Using TipRanks’ TipRanks Smart Portfolio tool, we have selected Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). Further, 10.53% of the total Smart Portfolios hold AAPL stock, up 14.41% on average since last week. Our data shows that AAPL is the most-held stock, followed by AMZN and TSLA.
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17077.0
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2023-02-16 00:00:00 UTC
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Zacks Market Edge Highlights: Robinhood, PayPal, Block, Apple and Chewy
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AAPL
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-robinhood-paypal-block-apple-and-chewy
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nan
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nan
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For Immediate Release
Chicago, IL – February 16, 2023 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2054866/genz-and-the-future-of-investing)
GenZ and the Future on Investing
Welcome to Episode #348 of the Zacks Market Edge Podcast.
(0:30) - Can We Learn From Generation Z's Investing Strategies?
(3:45) - Gen Z And Retirement: How Are They Investing?
(10:30) - The Growth of Financial Advice From Social Media
(14:55) - How Important Are Dividend Stocks For Generation Z?
(19:10) - Travel, Cannabis and Meme Stocks: Is There Any Interest?
(23:30) - Did The 2022 Sell-Off Scare Off Some Younger Investors?
(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and GenZ'er, Derek Lewis, to talk about GenZ as investors.
They came of age with Robinhood already an app on their iPhones and have paid for things with PayPal and Block payment systems since they were in junior high. Are they going to buy the technology stocks they know? Are they buying stocks at all?
Recent studies are showing that GenZ is aggressively saving for retirement even though the oldest is just 25 or 26 years old. A Blackrock study showed that GenZ is saving 14% of their income for retirement, which is above that being saved by older generations of Millennials, GenX or Baby Boomers.
Could GenZ become the first truly powerhouse investing generation?
Is GenZ the Future of Investing?
1. Robinhood HOOD
Robinhood is just another tool for GenZ investors. The company makes it easy to sign up with virtually no money at stake. But now it has rolled out IRA accounts so it's not just for day trading anymore.
But just because GenZ is using Robinhood, that doesn't mean they're buying the stock.
Shares of Robinhood are down 24% over the last year as growth stocks sold off. It's expected to lose $0.68 per share this year.
Are GenZ investors going to keep using the Robinhood app but avoid the Robinhood stock?
2. PayPal PYPL
Studies have shown GenZ investors like buying stocks that are in the financial services industry and that includes companies like PayPal.
PayPal shares have fallen 31% over the last year but are now attractively valued. PayPal trades with a forward P/E of just 16. Earnings are expected to rise 15% in 2023 as well.
Should GenZ investors be buying PayPal after this sell-off?
3. Block, Inc. SQ
GenZ has come of age with all of the innovations in payments like Block already in place.
Shares of Block have fallen 29% over the last year. Is it a deal? Block's earnings are expected to fall 38% in 2022 but rebound 61% in 2023.
But Block has a sky-high forward P/E of 45.
Is Block high on the short list for GenZ investors?
4. Apple AAPL
GenZ is the first generation that has only known smartphones, including Apple's iPhone, even while in grade school. Even the oldest GenZers were about 10 when the iPhone was introduced.
Is GenZ loyal to Apple as a result? Derek talks about what it's like growing up in the world of Apple and Apple apps.
If GenZ bought Apple shares 2 years ago, they'd be up 13%, and that doesn't include the dividends.
Is Apple a must-own stock for GenZ investors?
5. Chewy, Inc. CHWY
Will GenZ buy what they know? Derek talks about his GenZ friends using Chewy to order for their pets.
Shares of Chewy are down 59% over the last 2 years but still trade with a forward P/E of 378. Why so expensive? Chewy is expected to lose $0.03 in 2022 but make just $0.12 in 2023 but the shares are trading above $47.
Are companies like Chewy still on GenZ's short lists?
What Else do you Need to Know About GenZ Investors?
Listen to this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : 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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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple's iPhone, even while in grade school. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple's iPhone, even while in grade school.
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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple's iPhone, even while in grade school.
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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple's iPhone, even while in grade school. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17078.0
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2023-02-16 00:00:00 UTC
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Stock Market News for Feb 16, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-feb-16-2023
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nan
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nan
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U.S. stocks ended higher on Wednesday, as investors digested stronger-than-expected retail sales data and at the same time assessed the latest inflation report that suggested the Fed would continue to hike interest rates at an aggressive pace than previously thought. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 38.78 points to close at 34,128.05 points.
The S&P 500 gained 0.3% or 11.47 points to end at 4,147.60 points. Consumer discretionary, utilities, industrials and tech stocks led the gains.
The Technology Select Sector SPDR (XLK) gained 0.5%. The Consumer Discretionary Select Sector SPDR (XLY) rose 1.2%. The Utilities Select Sector SPDR (XLU) and the Industrial Select Sector SPDR (XLI) added 0.7% and 0.6%, respectively. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq added 0.9% or 110.45 points to finish at 12,070.59 points.
The fear-gauge CBOE Volatility Index (VIX) was down 3.60% to 18.23. Declining issues outnumbered advancing issues by a 1.4-to-one ratio across U.S. markets. A total of 10.5 billion shares were traded on Wednesday, lower than the last 20-session average of 11.8 billion.
Investors Concerned Over Future Rate Hikes
Wall Street ended modestly higher on Wednesday in a volatile trading session. Stocks took a hit earlier in the day after January retail sales data came in strongly higher than expectations to hit almost a two-year high. The solid sales figure suggests that the economy is still resilient despite multiple rate hikes.
The solid retail sales figure came just a day after the consumer price index (CPI) report showed that the cost of living rose 0.5% month over month in January. The CPI data will once again remind the Fed that lower readings on inflation in recent times don’t guarantee a downward trajectory.
Inflation had shown signs of easing at the end of 2022 which had made investors optimistic about the Fed going slow on its rate hikes by mid-2023. However, the crisis is far from over. The latest inflation data coupled with the solid retail sales figure supports the idea that the Fed might continue to aggressively increase interest rates in the coming months in order to tame surging inflation.
However, investors are changing their reaction to reports that U.S. inflation still remains strongly high which had been impacting markets on concern that the Fed will continue to raise interest rates for a longer period.
Interestingly, the Nasdaq, which ended 2022 down 33%, has been outperforming the market this year although treasury yields have been rising significantly. This is because investors still believe that the Fed might change course in mid-2023 on its interest rate hike policy, which will help high-growth stocks. This optimistic sentiment sent tech stocks on a rally on Wednesday.
Shares of Apple Inc. AAPL gained 1.4%, while Amazon.com, Inc. AMZN ended 1.5% higher. Apple and Amazon each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, retail stocks like Walmart Inc. WMT and Dollar Tree, Inc. DLTR gained 0.7% and 1.5%, respectively on solid retail sales data.
Economic Data
The Commerce Department said that retail sales rose a solid 3% in January, after declining 1.1% in December and also came in higher than economists’ expectations of a rise of 1.9%.
In other economic data, industrial production remained unchanged in January, while capacity utilization declined 01% in January.
The New York Fed’s Empire State business conditions index, which is a gauge of manufacturing activity in the state, climbed 27.1 points in February to a negative 5.8.
The NAHB/Wells Fargo Housing Market’s monthly confidence index rose 7 points to 42 in February. This is the second straight month that homebuilder confidence has increased.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL gained 1.4%, while Amazon.com, Inc. AMZN ended 1.5% higher. 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 Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended higher on Wednesday, as investors digested stronger-than-expected retail sales data and at the same time assessed the latest inflation report that suggested the Fed would continue to hike interest rates at an aggressive pace than previously thought.
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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 Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL gained 1.4%, while Amazon.com, Inc. AMZN ended 1.5% higher. The Utilities Select Sector SPDR (XLU) and the Industrial Select Sector SPDR (XLI) added 0.7% and 0.6%, respectively.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL gained 1.4%, while Amazon.com, Inc. AMZN ended 1.5% higher. U.S. stocks ended higher on Wednesday, as investors digested stronger-than-expected retail sales data and at the same time assessed the latest inflation report that suggested the Fed would continue to hike interest rates at an aggressive pace than previously thought.
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Shares of Apple Inc. AAPL gained 1.4%, while Amazon.com, Inc. AMZN ended 1.5% higher. 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 Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report To read this article on Zacks.com click here. Nine of the 11 sectors of the benchmark index ended in positive territory.
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17079.0
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2023-02-15 00:00:00 UTC
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Time to Take a Bite Out of Apple ETFs Following Warren Buffett?
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AAPL
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https://www.nasdaq.com/articles/time-to-take-a-bite-out-of-apple-etfs-following-warren-buffett
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nan
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nan
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Despite weakness in the recent quarterly result, Apple AAPL shares may regain all their sweetness in the near term as billionaire investor Warren Buffett has bet big on it. Warren Buffett and his Berkshire Hathaway (BRKB) loaded up on Apple stocks in the fourth quarter.
Berkshire Hathaway now owns a 5.8% stake in Apple after buying 20.76 million shares during the quarter, bringing its total holdings to 915.6 million as of Dec 31, according to the company's Schedule 13G filing with the Securities and Exchange Commission Tuesday, as quoted on investors.com.
What About Apple’s Business Model?
Apple’s overall sales for the holiday quarter were down about 5% year over year, marking the first year-over-year sales decline since 2019. Apple also recently recorded the biggest annual quarterly revenue drop since September 2016. However, the company is benefiting from continued momentum in the Services segment, driven by strong App Store sales and the robust adoption of Apple Music and Apple Pay.
iPhone sales may not be the real attraction of Apple now. But Apple’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. Apple returned $28 billion in the recently-reported quarter through dividend payouts ($3.7 billion) and share repurchases ($25.2 billion).
What Do Indicators Say About Apple’s Value Status?
Going by valuation metrics, the P/E (ttm) of AAPL is 26.1 times versus the industry-average of 22.4 times. The forward P/E of AAPL is 25.3 times versus the industry score of 22.3 times. Though these measures point to a higher valuation of Apple than the industry, a higher P/E is not always a sign of worry. It shows investors’ confidence in a particular stock among the bunch.
Investors should note that the return-on-equity of Apple is 163.5%, higher than the industry average of 134.1%. Plus, both return-on-assets and return-on-capital of Apple are marginally higher than the industry measures. The estimated 3-5 year EPS growth of Apple is now 12.5% versus the industry measure of 10.5%.
Investors should note that the AAPL stock has a Zacks Rank #3 (Hold). It has a Growth Score of A at the time of writing. The above-said numbers explain why Buffett is betting big on Apple shares in his portfolio.
Are ETFs Better Bets?
Investors intending to follow Warren Buffett but still wary of the slowing sales of Apple may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. The fund has a Zacks Rank #2 (Buy).
Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. The fund has a Zacks Rank #2.
Vanguard Information Technology ETF VGT – AAPL occupies the first location with 20.40% weight. The fund has a Zacks Rank #2.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite weakness in the recent quarterly result, Apple AAPL shares may regain all their sweetness in the near term as billionaire investor Warren Buffett has bet big on it. Going by valuation metrics, the P/E (ttm) of AAPL is 26.1 times versus the industry-average of 22.4 times. The forward P/E of AAPL is 25.3 times versus the industry score of 22.3 times.
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Despite weakness in the recent quarterly result, Apple AAPL shares may regain all their sweetness in the near term as billionaire investor Warren Buffett has bet big on it. Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here.
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Despite weakness in the recent quarterly result, Apple AAPL shares may regain all their sweetness in the near term as billionaire investor Warren Buffett has bet big on it. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Going by valuation metrics, the P/E (ttm) of AAPL is 26.1 times versus the industry-average of 22.4 times.
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Despite weakness in the recent quarterly result, Apple AAPL shares may regain all their sweetness in the near term as billionaire investor Warren Buffett has bet big on it. Investors should note that the AAPL stock has a Zacks Rank #3 (Hold). Going by valuation metrics, the P/E (ttm) of AAPL is 26.1 times versus the industry-average of 22.4 times.
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17080.0
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2023-02-15 00:00:00 UTC
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US STOCKS-S&P 500 ends higher after strong retail sales data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-after-strong-retail-sales-data-0
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nan
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nan
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By Johann M Cherian and Noel Randewich
Feb 15 (Reuters) - The S&P 500 ended higher on Wednesday after stronger-than-expected retail sales data offered evidence of resilience in the U.S. economy, but gains were capped as investors worried about more interest rate hikes by Federal Reserve in the months ahead.
A Commerce Department report showed retail sales surged 3% in January as purchases of motor vehicles and other goods pushed the number well past the 1.8% estimate from economists polled by Reuters.
On Tuesday, data showed U.S. consumer prices accelerated in January, boosting expectations that the Fed will raise the policy rate at least twice more this year to the 5-5.25% range.
"The good news from retail, and broadly from the stronger economy, has been mostly priced in," said Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky. "At the same time, that strength has taken market expectations of rate cuts off the table and moved the terminal Fed funds rate a little bit higher."
Fueled by a rebound in growth stocks that were hammered in last year's stock market downturn, the S&P 500 .SPXhas climbed 8% so far in 2023, while the Nasdaq .IXIC has recovered 15%. A better-than-expected quarterly earnings season has provided cautious optimism.
More than half of all S&P 500 companies have reported quarterly earnings, and nearly 70% of those have topped profit expectations, according to I/B/E/S data from Refinitiv. That compares to a long-term average of 66%.
Apple AAPL.O, Alphabet GOOGL.O, Amazon AMZN.O and Tesla TSLA.O rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq.
The S&P 500 climbed 0.28% to end the session at 4,147.61 points.
The Nasdaq gained 0.92% to 12,070.59 points, while Dow Jones Industrial Average rose 0.11% to 34,128.05 points.
Nine of the 11 S&P 500 sector indexes rose, led by a 1.2% gain in consumer discretionary .SPLRC.
Roblox RBLX.N soared 26% after the gaming platform popular with kids topped quarterly bookings estimates.
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) > fell 5.3% after Warren Buffett's Berkshire Hathaway Inc BRKa.Nslashed its stake in the chipmaker.
Shares of Airbnb Inc ABNB.O rose over 13% after the company posted forecast-beating results due to strong travel demand.
Devon Energy DVN.N slumped about 10% after the shale oil producer missed expectations for quarterly profit due to a hit to production from severe cold weather in the United States and higher expenses.
After the bell, Roku ROKU.O surged 14% following a revenue forecast that beat analysts' expectations.
Across the U.S. stock market .AD.US, advancing stocks outnumbered falling ones by a 1.4-to-one ratio.
The S&P 500 posted 19 new highs and no new lows; the Nasdaq recorded 84 new highs and 55 new lows.
Volume on U.S. exchanges was relatively light, with 10.5 billion shares traded, compared to an average of 11.8 billion shares over the previous 20 sessions.
S&P 500's busiest tradeshttps://tmsnrt.rs/3lzPWBk
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru and by Noel Randewich in Oakland, Calif., additional reporting by Shristi Achar A; Editing by Savio D'Souza, Anil D'Silva and David Gregorio)
((noel.randewich@tr.com; Twitter: @randewich))
The views and 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, Amazon AMZN.O and Tesla TSLA.O rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq. By Johann M Cherian and Noel Randewich Feb 15 (Reuters) - The S&P 500 ended higher on Wednesday after stronger-than-expected retail sales data offered evidence of resilience in the U.S. economy, but gains were capped as investors worried about more interest rate hikes by Federal Reserve in the months ahead. A Commerce Department report showed retail sales surged 3% in January as purchases of motor vehicles and other goods pushed the number well past the 1.8% estimate from economists polled by Reuters.
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Apple AAPL.O, Alphabet GOOGL.O, Amazon AMZN.O and Tesla TSLA.O rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq. By Johann M Cherian and Noel Randewich Feb 15 (Reuters) - The S&P 500 ended higher on Wednesday after stronger-than-expected retail sales data offered evidence of resilience in the U.S. economy, but gains were capped as investors worried about more interest rate hikes by Federal Reserve in the months ahead. A Commerce Department report showed retail sales surged 3% in January as purchases of motor vehicles and other goods pushed the number well past the 1.8% estimate from economists polled by Reuters.
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Apple AAPL.O, Alphabet GOOGL.O, Amazon AMZN.O and Tesla TSLA.O rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq. By Johann M Cherian and Noel Randewich Feb 15 (Reuters) - The S&P 500 ended higher on Wednesday after stronger-than-expected retail sales data offered evidence of resilience in the U.S. economy, but gains were capped as investors worried about more interest rate hikes by Federal Reserve in the months ahead. The Nasdaq gained 0.92% to 12,070.59 points, while Dow Jones Industrial Average rose 0.11% to 34,128.05 points.
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Apple AAPL.O, Alphabet GOOGL.O, Amazon AMZN.O and Tesla TSLA.O rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq. On Tuesday, data showed U.S. consumer prices accelerated in January, boosting expectations that the Fed will raise the policy rate at least twice more this year to the 5-5.25% range. More than half of all S&P 500 companies have reported quarterly earnings, and nearly 70% of those have topped profit expectations, according to I/B/E/S data from Refinitiv.
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17081.0
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2023-02-15 00:00:00 UTC
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U.S. House Judiciary subpoenas Big Tech CEOs over free speech
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AAPL
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https://www.nasdaq.com/articles/u.s.-house-judiciary-subpoenas-big-tech-ceos-over-free-speech-0
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nan
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nan
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Adds Microsoft comment, detail, background on dispute, file photos
WASHINGTON, Feb 15 (Reuters) - U.S. House Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Facebook and Instagram parent Meta Platforms META.O, and Microsoft MSFT.O for documents and communications relating to free-speech issues.
Jordan and other conservatives accused the companies of suppressing conservative speech during the Trump administration, and expanded that accusation to include colluding with the Biden administration once he won the White House. The White House and major tech companies have rejected the allegation.
"These subpoenas are the first step in holding Big Tech accountable," Jordan's office said in a statement.
Microsoft said in an email that it had "started producing documents, are engaged with the Committee, and committed to working in good faith." None of the other four companies immediately responded to a request for comment.
The subpoenas were sent to Alphabet's Sundar Pichai, Andy Jassy of Amazon.com, Tim Cook of Apple, Meta's Mark Zuckerberg, and Satya Nadella of Microsoft and demand documents and communications related to alleged collusion between the government and the companies to stifle free speech.
Jordan set a March 23 deadline to turn over documents.
Republicans who took control of the House of Representatives in January after narrowly winning control in the November elections have made questions about Big Tech a top focus and created a Select Subcommittee on the Weaponization of the Federal Government.
Last week, the panel held its first hearing into Republican claims that the Justice Department and FBI show anti-conservative bias, a move made following the FBI's discovery of hundreds of classified documents at Republican former President Donald Trump's Florida resort.
Jordan wrote related letters to the companies in December, making similar demands but the House was in Democratic hands and before he became chair. Jordan's office said that the companies did not adequately comply.
(Reporting by Diane Bartz, Susan Heavey, David Shepardson and Doina Chiacu; Additional reporting by Jeffrey Dastin; editing by Jonathan Oatis and Nick Zieminski)
((doina.chiacu@thomsonreuters.com; 202-898-8322;))
The views and 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 Microsoft comment, detail, background on dispute, file photos WASHINGTON, Feb 15 (Reuters) - U.S. House Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Facebook and Instagram parent Meta Platforms META.O, and Microsoft MSFT.O for documents and communications relating to free-speech issues. The subpoenas were sent to Alphabet's Sundar Pichai, Andy Jassy of Amazon.com, Tim Cook of Apple, Meta's Mark Zuckerberg, and Satya Nadella of Microsoft and demand documents and communications related to alleged collusion between the government and the companies to stifle free speech. Jordan wrote related letters to the companies in December, making similar demands but the House was in Democratic hands and before he became chair.
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Adds Microsoft comment, detail, background on dispute, file photos WASHINGTON, Feb 15 (Reuters) - U.S. House Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Facebook and Instagram parent Meta Platforms META.O, and Microsoft MSFT.O for documents and communications relating to free-speech issues. Jordan and other conservatives accused the companies of suppressing conservative speech during the Trump administration, and expanded that accusation to include colluding with the Biden administration once he won the White House. "These subpoenas are the first step in holding Big Tech accountable," Jordan's office said in a statement.
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Adds Microsoft comment, detail, background on dispute, file photos WASHINGTON, Feb 15 (Reuters) - U.S. House Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Facebook and Instagram parent Meta Platforms META.O, and Microsoft MSFT.O for documents and communications relating to free-speech issues. Jordan and other conservatives accused the companies of suppressing conservative speech during the Trump administration, and expanded that accusation to include colluding with the Biden administration once he won the White House. The subpoenas were sent to Alphabet's Sundar Pichai, Andy Jassy of Amazon.com, Tim Cook of Apple, Meta's Mark Zuckerberg, and Satya Nadella of Microsoft and demand documents and communications related to alleged collusion between the government and the companies to stifle free speech.
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Adds Microsoft comment, detail, background on dispute, file photos WASHINGTON, Feb 15 (Reuters) - U.S. House Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Facebook and Instagram parent Meta Platforms META.O, and Microsoft MSFT.O for documents and communications relating to free-speech issues. Jordan and other conservatives accused the companies of suppressing conservative speech during the Trump administration, and expanded that accusation to include colluding with the Biden administration once he won the White House. The White House and major tech companies have rejected the allegation.
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17082.0
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2023-02-15 00:00:00 UTC
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GenZ and the Future of Investing
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AAPL
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https://www.nasdaq.com/articles/genz-and-the-future-of-investing
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nan
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nan
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(0:30) - Can We Learn From Generation Z's Investing Strategies?
(3:45) - Gen Z And Retirement: How Are They Investing?
(10:30) - The Growth of Financial Advice From Social Media
(14:55) - How Important Are Dividend Stocks For Generation Z?
(19:10) - Travel, Cannabis and Meme Stocks: Is There Any Interest?
(23:30) - Did The 2022 Sell-Off Scare Off Some Younger Investors?
(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX
Podcast@Zacks.com
Welcome to Episode #348 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and GenZ’er, Derek Lewis, to talk about GenZ as investors.
They came of age with Robinhood already an app on their iPhones and have paid for things with PayPal and Block payment systems since they were in junior high. Are they going to buy the technology stocks they know? Are they buying stocks at all?
Recent studies are showing that GenZ is aggressively saving for retirement even though the oldest is just 25 or 26 years old. A Blackrock study showed that GenZ is saving 14% of their income for retirement, which is above that being saved by older generations of Millennials, GenX or Baby Boomers.
Could GenZ become the first truly powerhouse investing generation?
Is GenZ the Future of Investing?
1. Robinhood HOOD
Robinhood is just another tool for GenZ investors. The company makes it easy to sign up with virtually no money at stake. But now it has rolled out IRA accounts so it’s not just for day trading anymore.
But just because GenZ is using Robinhood, that doesn’t mean they’re buying the stock.
Shares of Robinhood are down 24% over the last year as growth stocks sold off. It’s expected to lose $0.68 per share this year.
Are GenZ investors going to keep using the Robinhood app but avoid the Robinhood stock?
2. PayPal PYPL
Studies have shown GenZ investors like buying stocks that are in the financial services industry and that includes companies like PayPal.
PayPal shares have fallen 31% over the last year but are now attractively valued. PayPal trades with a forward P/E of just 16. Earnings are expected to rise 15% in 2023 as well.
Should GenZ investors be buying PayPal after this sell-off?
3. Block, Inc. SQ
GenZ has come of age with all of the innovations in payments like Block already in place.
Shares of Block have fallen 29% over the last year. Is it a deal? Block’s earnings are expected to fall 38% in 2022 but rebound 61% in 2023.
But Block has a sky-high forward P/E of 45.
Is Block high on the short list for GenZ investors?
4. Apple AAPL
GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school. Even the oldest GenZers were about 10 when the iPhone was introduced.
Is GenZ loyal to Apple as a result? Derek talks about what it’s like growing up in the world of Apple and Apple apps.
If GenZ bought Apple shares 2 years ago, they’d be up 13%, and that doesn’t include the dividends.
Is Apple a must-own stock for GenZ investors?
5. Chewy, Inc. CHWY
Will GenZ buy what they know? Derek talks about his GenZ friends using Chewy to order for their pets.
Shares of Chewy are down 59% over the last 2 years but still trade with a forward P/E of 378. Why so expensive? Chewy is expected to lose $0.03 in 2022 but make just $0.12 in 2023 but the shares are trading above $47.
Are companies like Chewy still on GenZ’s short lists?
What Else do you Need to Know About GenZ Investors?
Listen to this week’s podcast to find out.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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Apple Inc. (AAPL) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : 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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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Welcome to Episode #348 of the Zacks Market Edge Podcast. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Welcome to Episode #348 of the Zacks Market Edge Podcast. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here. (29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Welcome to Episode #348 of the Zacks Market Edge Podcast. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school.
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(29:15) - Episode Roundup: HOOD, PRTS, CHWY, SNDL, AAPL, META, PYPL, SQ, ARKK, SBUX Podcast@Zacks.com Welcome to Episode #348 of the Zacks Market Edge Podcast. Apple AAPL GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17083.0
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2023-02-15 00:00:00 UTC
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Technology Sector Update for 02/15/2023: AAPL, TTD, CRDO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-02-15-2023%3A-aapl-ttd-crdo
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nan
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nan
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Technology stocks were lower Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 0.2% while the Philadelphia Semiconductor index was falling 0.5%.
In company news, Apple (AAPL) shares were rising 0.7% after Counterpoint Research said iPhone sales for January increased by about 6% year-over-year in China based on preliminary data, supported by the relaxation of COVID-19 policies.
The Trade Desk (TTD) shares were climbing over 25% after the company posted forecast-beating Q4 adjusted earnings and higher revenue.
Credo Technology (CRDO) was down over 46% after saying it expects revenue to be $30 million to $32 million in fiscal Q4 ending April 29, as the company's largest customer reduced its demand forecast. Analysts polled by Capital IQ expect $42 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) shares were rising 0.7% after Counterpoint Research said iPhone sales for January increased by about 6% year-over-year in China based on preliminary data, supported by the relaxation of COVID-19 policies. Technology stocks were lower Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 0.2% while the Philadelphia Semiconductor index was falling 0.5%. The Trade Desk (TTD) shares were climbing over 25% after the company posted forecast-beating Q4 adjusted earnings and higher revenue.
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In company news, Apple (AAPL) shares were rising 0.7% after Counterpoint Research said iPhone sales for January increased by about 6% year-over-year in China based on preliminary data, supported by the relaxation of COVID-19 policies. Credo Technology (CRDO) was down over 46% after saying it expects revenue to be $30 million to $32 million in fiscal Q4 ending April 29, as the company's largest customer reduced its demand forecast. Analysts polled by Capital IQ expect $42 million.
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In company news, Apple (AAPL) shares were rising 0.7% after Counterpoint Research said iPhone sales for January increased by about 6% year-over-year in China based on preliminary data, supported by the relaxation of COVID-19 policies. Credo Technology (CRDO) was down over 46% after saying it expects revenue to be $30 million to $32 million in fiscal Q4 ending April 29, as the company's largest customer reduced its demand forecast. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) shares were rising 0.7% after Counterpoint Research said iPhone sales for January increased by about 6% year-over-year in China based on preliminary data, supported by the relaxation of COVID-19 policies. Technology stocks were lower Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 0.2% while the Philadelphia Semiconductor index was falling 0.5%. The Trade Desk (TTD) shares were climbing over 25% after the company posted forecast-beating Q4 adjusted earnings and higher revenue.
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17084.0
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2023-02-15 00:00:00 UTC
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US STOCKS-S&P 500, Dow slip after retail sales data; megacaps lift Nasdaq
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-slip-after-retail-sales-data-megacaps-lift-nasdaq
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nan
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nan
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By Johann M Cherian and Sruthi Shankar
Feb 15 (Reuters) - The S&P 500 and the Dow fell on Wednesday after stronger-than-expected retail sales data offered more evidence of resilience in the U.S. economy, fueling concerns that the Federal Reserve could stick to its rate-hike campaign.
Gains in megacap stocks including Apple AAPL.O, Alphabet GOOGL.O and Tesla TSLA.O, however, kept the tech-heavy Nasdaq .IXIC afloat.
A Commerce Department report showed U.S. retail sales increased by the most in nearly two years in January after two straight monthly declines as Americans boosted purchases of motor vehicles and other goods. Economists polled by Reuters had forecast sales would increase 1.8%.
"All of the data continues to point towards how strong the economy is and if you want the Fed to stop tightening, you want to see a little weakness to give them cover," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.
"The consumer is strong despite the fact that their savings are going down. People still have jobs and they're going to spend and that's evident in the numbers this morning."
The benchmark S&P 500 came under pressure on Tuesday after data showed U.S. consumer prices accelerated in January, boosting expectations that the U.S. central bank will raise the policy rate at least twice more this year to the 5-5.25% range.
Still, the index is up 7.5% so far this year after a 19.4% slump in 2022, supported by better-than-expected earnings reports and a rebound in growth stocks.
The Nasdaq Composite .IXIC was up 19.26 points, or 0.16%, at 11,979.40.
"Tech and growth stocks are benefiting on hopes that the U.S. economy won't have a recession and that favorite mega-cap tech plays will lead the way," said Edward Moya, senior market analyst at Oanda.
"Investors still believe in the U.S. economy and they are growing confident that the worst is over for tech."
Eight of 11 major S&P 500 sectors slid, with a 2.6% drop in the energy index .SPNY leading declines as oil prices fell. O/R
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) TSM.N fell 6% after Warren Buffett's Berkshire Hathaway Inc BRKa.Nslashed its stake in the chipmaker.
Airbnb Inc ABNB.O jumped 12.8% after the vacation rental firm's fourth-quarter results beat market expectations.
Devon Energy DVN.N slumped 12.5% after the shale oil producer missed expectations for quarterly profit due to a hit to production from severe cold weather in the United States and higher expenses.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru, additional reporting by Shristi Achar A; Editing by Savio D'Souza and Anil D'Silva)
((johann.mcherian@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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Gains in megacap stocks including Apple AAPL.O, Alphabet GOOGL.O and Tesla TSLA.O, however, kept the tech-heavy Nasdaq .IXIC afloat. By Johann M Cherian and Sruthi Shankar Feb 15 (Reuters) - The S&P 500 and the Dow fell on Wednesday after stronger-than-expected retail sales data offered more evidence of resilience in the U.S. economy, fueling concerns that the Federal Reserve could stick to its rate-hike campaign. "All of the data continues to point towards how strong the economy is and if you want the Fed to stop tightening, you want to see a little weakness to give them cover," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.
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Gains in megacap stocks including Apple AAPL.O, Alphabet GOOGL.O and Tesla TSLA.O, however, kept the tech-heavy Nasdaq .IXIC afloat. A Commerce Department report showed U.S. retail sales increased by the most in nearly two years in January after two straight monthly declines as Americans boosted purchases of motor vehicles and other goods. The benchmark S&P 500 came under pressure on Tuesday after data showed U.S. consumer prices accelerated in January, boosting expectations that the U.S. central bank will raise the policy rate at least twice more this year to the 5-5.25% range.
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Gains in megacap stocks including Apple AAPL.O, Alphabet GOOGL.O and Tesla TSLA.O, however, kept the tech-heavy Nasdaq .IXIC afloat. By Johann M Cherian and Sruthi Shankar Feb 15 (Reuters) - The S&P 500 and the Dow fell on Wednesday after stronger-than-expected retail sales data offered more evidence of resilience in the U.S. economy, fueling concerns that the Federal Reserve could stick to its rate-hike campaign. "Tech and growth stocks are benefiting on hopes that the U.S. economy won't have a recession and that favorite mega-cap tech plays will lead the way," said Edward Moya, senior market analyst at Oanda.
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Gains in megacap stocks including Apple AAPL.O, Alphabet GOOGL.O and Tesla TSLA.O, however, kept the tech-heavy Nasdaq .IXIC afloat. By Johann M Cherian and Sruthi Shankar Feb 15 (Reuters) - The S&P 500 and the Dow fell on Wednesday after stronger-than-expected retail sales data offered more evidence of resilience in the U.S. economy, fueling concerns that the Federal Reserve could stick to its rate-hike campaign. A Commerce Department report showed U.S. retail sales increased by the most in nearly two years in January after two straight monthly declines as Americans boosted purchases of motor vehicles and other goods.
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17085.0
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2023-02-15 00:00:00 UTC
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U.S. Justice Department escalates Apple probe - WSJ
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AAPL
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https://www.nasdaq.com/articles/u.s.-justice-department-escalates-apple-probe-wsj
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nan
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nan
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Add details from report, background
Feb 15 (Reuters) - The U.S. Justice Department has in recent months escalated its antitrust probe on Apple Inc AAPL.O, the Wall Street Journal reported on Wednesday citing people familiar with the matter.
Reuters had previously reported the Justice Department opened an antitrust probe into Apple in 2019.
The Wall Street Journal report said more litigators have now been assigned, while new requests for documents and consultations have been made with all the companies involved.
The probe will also look at whether Apple's mobile operating system, iOS, is anti-competitive, favoring its own products over those of outside developers, the report added.
The DoJ declined to comment, while Apple did not immediately respond to a request for comment.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri)
((tiyashi.datta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Add details from report, background Feb 15 (Reuters) - The U.S. Justice Department has in recent months escalated its antitrust probe on Apple Inc AAPL.O, the Wall Street Journal reported on Wednesday citing people familiar with the matter. The Wall Street Journal report said more litigators have now been assigned, while new requests for documents and consultations have been made with all the companies involved. The probe will also look at whether Apple's mobile operating system, iOS, is anti-competitive, favoring its own products over those of outside developers, the report added.
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Add details from report, background Feb 15 (Reuters) - The U.S. Justice Department has in recent months escalated its antitrust probe on Apple Inc AAPL.O, the Wall Street Journal reported on Wednesday citing people familiar with the matter. Reuters had previously reported the Justice Department opened an antitrust probe into Apple in 2019. The Wall Street Journal report said more litigators have now been assigned, while new requests for documents and consultations have been made with all the companies involved.
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Add details from report, background Feb 15 (Reuters) - The U.S. Justice Department has in recent months escalated its antitrust probe on Apple Inc AAPL.O, the Wall Street Journal reported on Wednesday citing people familiar with the matter. Reuters had previously reported the Justice Department opened an antitrust probe into Apple in 2019. (Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri) ((tiyashi.datta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Add details from report, background Feb 15 (Reuters) - The U.S. Justice Department has in recent months escalated its antitrust probe on Apple Inc AAPL.O, the Wall Street Journal reported on Wednesday citing people familiar with the matter. The probe will also look at whether Apple's mobile operating system, iOS, is anti-competitive, favoring its own products over those of outside developers, the report added. The DoJ declined to comment, while Apple did not immediately respond to a request for comment.
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17086.0
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2023-02-15 00:00:00 UTC
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Dow Movers: CVX, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-cvx-aapl
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nan
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nan
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In early trading on Wednesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.7%. Year to date, Apple registers a 18.7% gain.
And the worst performing Dow component thus far on the day is Chevron, trading down 1.2%. Chevron is lower by about 5.9% looking at the year to date performance.
Two other components making moves today are Amgen, trading down 0.8%, and Caterpillar, trading up 0.4% on the day.
VIDEO: Dow Movers: CVX, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: CVX, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.7%. And the worst performing Dow component thus far on the day is Chevron, trading down 1.2%.
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VIDEO: Dow Movers: CVX, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.7%. Year to date, Apple registers a 18.7% gain.
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VIDEO: Dow Movers: CVX, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.7%. And the worst performing Dow component thus far on the day is Chevron, trading down 1.2%.
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VIDEO: Dow Movers: CVX, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Chevron, trading down 1.2%. Chevron is lower by about 5.9% looking at the year to date performance.
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17087.0
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2023-02-15 00:00:00 UTC
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13F: 3 of Buffett's Latest Moves
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AAPL
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https://www.nasdaq.com/articles/13f%3A-3-of-buffetts-latest-moves
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nan
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nan
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“The Oracle of Omaha”
Warren Buffett is arguably the most consistent and successful investor on the planet. Since 1965, Buffett’s Berkshire Hathaway (BRKA) has achieved compound annual returns of roughly 20% per year – double that of the most common benchmark, the S&P 500 Index. While 20% returns may not seem like a lot to amateur investors, 20% compounded over such a long period is unprecedented. “The Oracle of Omaha” is the fifth wealthiest person in the world, with a net worth North of $100 billion.
What is Behind Buffett’s Success?
Warren Buffett was a student of Benjamin Graham, who is often thought of as the “father of Value investing”. If one were to compare the beginning of Buffett’s investment journey to today, little has changed with his philosophy. Buffett, an avid reader, reads balance sheets, articles, and newspaper clippings in search of value stocks with a “margin of safety”. The margin of safety means the intrinsic value of a company’s assets is vastly undervalued, providing investment protection and peace of mind should there be any bumps in the road.
Why Long-Term Investors Can Benefit from Watching Buffett
Berkshire Hathaway’s 13F is one of the most watched on Wall Street. A 13F is a disclosure of positions required (by the SEC) to be filled out by large institutions like Berkshire Hathaway. Unlike many quant traders, short-term investors, or high-frequency firms of today, Buffett has an extremely long holding period with little turnover (his favorite holding period is “forever”). In other words, investors generally do not have to worry about Buffett changing his mind in a hurry. Buffett also heavily relies on a fundamentally based system that takes advantage of shareholder rewards like stock buybacks and dividends.
Though Buffett’s investment system is not the flashiest, it has proven effective. Betting on solid, undervalued companies and the U.S. stock market and holding for the long term has been a recipe for success and is likely to continue to be in the future. As legendary trader Jesse Livermore once said, “Those who can both be right and sit tight are uncommon.”
Sizing Up Buffett’s Latest Investment Moves
Taking another bite of Apple
Another reason for Buffett’s success is his ability to be highly concentrated in his winning investments. Unsurprisingly, Buffett used the recent market pullback as an opportunity to add shares of his biggest position, Apple AAPL. Berkshire Hathaway now owns roughly 5% of the company, and its massive position is worth $112 billion. Since entering the stock in 2016, BRKA is up 290%. Apple shares make up an eye-popping 42% of the portfolio.
Image Source: Zacks Investment Research
Though Apple is not the most groundbreaking investment, it is a Buffett classic. Firstly, the company is consistent. Because of the ecosystem, it is tough for consumers to break away from Apple’s products. Secondly, Apple generates a ton of cash which it returns to shareholders through dividends and stock buybacks.
A Rare 360 on Taiwan Semi
The biggest surprise of this quarter’s 13F was that Buffett sold 86% of his massive position in Taiwan Semiconductor TSM. Berkshire’s last 13F revealed that it had purchased more than $4 billion worth of stock. Is Buffett concerned about possible Chinese aggression toward Taiwan?
Betting on a Turnaround in Hollywood
Another notable add for Buffett was entertainment and motion picture juggernaut Paramount Global PARA. Berkshire’s position is now more than $1.5 billion and accounts for a 15% stake. Buffett is showing conviction in this particular position. Initially, shares were accumulated last May and show a loss.
Image Source: Zacks Investment Research
Paramount’s stock was at the center of the blow-up of billionaire hedge fund manager Bill Hwang and has not been the same since. However, in recent months the stock has been trying to turn around. Another notable add was Louisiana Pacific LPX, which Buffett owns nearly 10% of.
Top Holdings
Beyond Apple, Berkshire’s top holdings have seen little change. Berkshire did not make any changes to its $25 billion Coca-Cola KO position or its $33.5 billion Bank of America BAC position.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Paramount Global (PARA) : 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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Unsurprisingly, Buffett used the recent market pullback as an opportunity to add shares of his biggest position, Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Since 1965, Buffett’s Berkshire Hathaway (BRKA) has achieved compound annual returns of roughly 20% per year – double that of the most common benchmark, the S&P 500 Index.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Unsurprisingly, Buffett used the recent market pullback as an opportunity to add shares of his biggest position, Apple AAPL. Berkshire Hathaway now owns roughly 5% of the company, and its massive position is worth $112 billion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Unsurprisingly, Buffett used the recent market pullback as an opportunity to add shares of his biggest position, Apple AAPL. As legendary trader Jesse Livermore once said, “Those who can both be right and sit tight are uncommon.” Sizing Up Buffett’s Latest Investment Moves Taking another bite of Apple Another reason for Buffett’s success is his ability to be highly concentrated in his winning investments.
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Unsurprisingly, Buffett used the recent market pullback as an opportunity to add shares of his biggest position, Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Berkshire Hathaway now owns roughly 5% of the company, and its massive position is worth $112 billion.
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17088.0
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2023-02-15 00:00:00 UTC
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3 Tickers Leading the Tech Recovery
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AAPL
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https://www.nasdaq.com/articles/3-tickers-leading-the-tech-recovery
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nan
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nan
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What do technology stocks have in common with the 1999 St. Louis Rams?
Both are amazing worst-to-first stories.
Ok, so this year’s technology stock reversal isn’t as impressive as the Rams’ Super Bowl victory the year after a 4-12 season. Still, tech’s leadership to kick off 2023 marks a stark reversal from last year’s woeful downturn.
What’s more intriguing is the broad-based nature of the recovery. Instead of depending on Apple, Alphabet and Microsoft to lead the charge, the sector is getting major contributions across industries. Semiconductor companies and Internet plays are off to particularly fast starts.
As the stock market’s version of “The Greatest Show on Turf,” technology is outperforming at an unusual time. The economically-sensitive group has historically led coming out of a recession, not heading into one. Could this mean the widely prescribed U.S. economic downturn will be averted?
Just in time for Valentine’s Day, investors are shunning recession fears and falling back in love with tech stocks. If the tech rally does indeed continue, these three names could play a starring role.
What Is Driving the C3.ai Stock Surge?
C3.ai, Inc. (NYSE:AI) tripled out of the gates this year, before profit taking set in. Still, the artificial intelligence software provider is up roughly 100% this year — and weak volume on the downslope suggests bulls remain in control.
The stock has attracted a lot of interest largely because of ChatGPT. The AI-based chatbot’s stunning success in producing all sorts of content is shaking up the tech landscape. Its potential to reshape how we learn, work and live is attracting billions of investment dollars from Microsoft and pushing Google and others to accelerate its AI ambitions. In turn, AI-related stocks are red hot.
With C3.ai, the rally is about more than AI sympathy. In January 2023, the company launched C3 Generative AI for Enterprise Search as an initial piece of its broader AI software suite. The product allows users to tap into its natural language interface to find data across an organization’s IT infrastructure.
The insight it generates is intended to have a widespread application in several sectors, including energy, healthcare, financial services, industrials and defense.
Last week, C3.ai was awarded a contract from the U.S. Air Force to provide mission-critical AI solutions for flight data programs. The company’s growing influence with the military and the attention brought by ChatGPT could make it a big winner this year. Bearish Wall Street analysts could be playing catch-up for months to come.
Does MicroStrategy Still Have Squeeze Potential?
MicroStrategy, Inc. (NASDAQ: MSTR) was another early tech two-bagger. Among U.S. large and mid-cap tech stocks, only C3.ai has a better year-to-date return. Two forces have propped up the analytics platform provider outside of its core business.
First, a cryptocurrency market rebound has helped crypto stocks unthaw from a deep crypto winter. The company’s obsession with buying and selling Bitcoin exposes it primarily to crypto market developments rather than the recurring revenue generated by its software.
Second, the unexpected rally in crypto assets left short-sellers scrambling to cover their bearish bets. Along with Coinbase, Marathon Digital and Riot Blockchain, MicroStrategy has long been a popular target of crypto skeptics. MicroStrategy’s massive 44% short float makes it still highly prone to crypto flare-ups. If the capital markets stay in risk-on mode, it wouldn’t be surprising to see more short squeezes this year.
Ironically, MicroStrategy’s fourth-quarter earnings release in early February marked the beginning of the recent pullback. The results fell short of the consensus, but that didn’t deter Canaccord Genuity from taking a bullish stance. Citing MicroStrategy’s unique position as enterprise software and digital assets dual-threat, the analyst slapped a $400 target on the stock.
Is it a Good Time to Invest in Rumble Stock?
Rumble Inc. (NASDAQ: RUM) is up more than 50% this year thanks to a growing lineup of content on its independent video platform. A flurry of new shows added to Rumble Exclusives, and Rumble Locals has brought renewed attention to the beat up stock. For instance, Internet personality Bob Menery brought his comedic play-by-play style to this year’s Super Bowl — and given his 3.3 million Instagram followers, he could attract subscribers to the Rumble platform.
Despite a stampede of live streaming competition, Rumble’s recent launches could lead to rising subscription revenues. Like most streaming challengers, Rumble operates at a net loss, but profits may not be far away. The analysts covering the stock project positive earnings could arrive within two years.
On top of a brighter financial outlook, Rumble benefits from Netflix’s recovery from its May 2022 bottom. Better-than-expected subscriber numbers have breathed new life into Netflix shares and seem to have drawn investors to sell off streaming plays of all shapes and sizes.
The light volume accompanied by this year’s rally is, however, the reason for caution. Trading activity comparable to what Rumble saw in its early SPAC days would be better to see before getting ready to rumble into this early tech leader.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its potential to reshape how we learn, work and live is attracting billions of investment dollars from Microsoft and pushing Google and others to accelerate its AI ambitions. The company’s obsession with buying and selling Bitcoin exposes it primarily to crypto market developments rather than the recurring revenue generated by its software. For instance, Internet personality Bob Menery brought his comedic play-by-play style to this year’s Super Bowl — and given his 3.3 million Instagram followers, he could attract subscribers to the Rumble platform.
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In January 2023, the company launched C3 Generative AI for Enterprise Search as an initial piece of its broader AI software suite. Citing MicroStrategy’s unique position as enterprise software and digital assets dual-threat, the analyst slapped a $400 target on the stock. Despite a stampede of live streaming competition, Rumble’s recent launches could lead to rising subscription revenues.
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Ok, so this year’s technology stock reversal isn’t as impressive as the Rams’ Super Bowl victory the year after a 4-12 season. A flurry of new shows added to Rumble Exclusives, and Rumble Locals has brought renewed attention to the beat up stock. Trading activity comparable to what Rumble saw in its early SPAC days would be better to see before getting ready to rumble into this early tech leader.
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With C3.ai, the rally is about more than AI sympathy. Does MicroStrategy Still Have Squeeze Potential? Is it a Good Time to Invest in Rumble Stock?
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17089.0
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2023-02-15 00:00:00 UTC
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Norwegian payment app Vipps takes on Apple, wants EU antitrust action
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AAPL
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https://www.nasdaq.com/articles/norwegian-payment-app-vipps-takes-on-apple-wants-eu-antitrust-action
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nan
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By Foo Yun Chee
BRUSSELS, Feb 15 (Reuters) - Norwegian mobile payment app Vipps wants European Union (EU) antitrust regulators to force Apple AAPL.O to allow access to its tap and go technology without any restrictions so that other companies can be more competitive, Vipps Chief Executive Rune Garborg said.
Garborg's comments came a day after Apple made a last ditch bid to convince EU antitrust regulators that it does not block rivals' access to its technology used for mobile wallets at a closed hearing. Vipps was a third party at the hearing.
Vipps, owned by a consortium of Norwegian banks and which merged with Danish peer MobilePay last year, said the issue is critical because of Apple's popularity in the Nordics and the increasing use of mobile payments, which is powered by near field communication (NFC) technology.
"This is really important for us. Seventy-eight percent of card transactions in Norway are done through terminals. It is why NFC is so important especially among young people," Garborg told Reuters.
"Apple is only sharing NFC with banks, which have to pay for installing their cards in Apple Pay. But for us as a wallet, we don't have open access to NFC," he said.
Vipps said NFC access would increase the geographical reach of its mobile wallet, make it easier to innovate products and better enable cross-border transactions.
Apple had no immediate comment. The company has previously said that Apple Pay is one of many options available to European consumers and which has ensured equal access to its technology.
Vipps said it tried several alternatives to NFC but found them cumbersome and not competitive.
(Reporting by Foo Yun Chee; Editing by Josie Kao)
((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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By Foo Yun Chee BRUSSELS, Feb 15 (Reuters) - Norwegian mobile payment app Vipps wants European Union (EU) antitrust regulators to force Apple AAPL.O to allow access to its tap and go technology without any restrictions so that other companies can be more competitive, Vipps Chief Executive Rune Garborg said. Garborg's comments came a day after Apple made a last ditch bid to convince EU antitrust regulators that it does not block rivals' access to its technology used for mobile wallets at a closed hearing. Vipps, owned by a consortium of Norwegian banks and which merged with Danish peer MobilePay last year, said the issue is critical because of Apple's popularity in the Nordics and the increasing use of mobile payments, which is powered by near field communication (NFC) technology.
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By Foo Yun Chee BRUSSELS, Feb 15 (Reuters) - Norwegian mobile payment app Vipps wants European Union (EU) antitrust regulators to force Apple AAPL.O to allow access to its tap and go technology without any restrictions so that other companies can be more competitive, Vipps Chief Executive Rune Garborg said. Garborg's comments came a day after Apple made a last ditch bid to convince EU antitrust regulators that it does not block rivals' access to its technology used for mobile wallets at a closed hearing. (Reporting by Foo Yun Chee; Editing by Josie Kao) ((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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By Foo Yun Chee BRUSSELS, Feb 15 (Reuters) - Norwegian mobile payment app Vipps wants European Union (EU) antitrust regulators to force Apple AAPL.O to allow access to its tap and go technology without any restrictions so that other companies can be more competitive, Vipps Chief Executive Rune Garborg said. Garborg's comments came a day after Apple made a last ditch bid to convince EU antitrust regulators that it does not block rivals' access to its technology used for mobile wallets at a closed hearing. Vipps, owned by a consortium of Norwegian banks and which merged with Danish peer MobilePay last year, said the issue is critical because of Apple's popularity in the Nordics and the increasing use of mobile payments, which is powered by near field communication (NFC) technology.
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By Foo Yun Chee BRUSSELS, Feb 15 (Reuters) - Norwegian mobile payment app Vipps wants European Union (EU) antitrust regulators to force Apple AAPL.O to allow access to its tap and go technology without any restrictions so that other companies can be more competitive, Vipps Chief Executive Rune Garborg said. Garborg's comments came a day after Apple made a last ditch bid to convince EU antitrust regulators that it does not block rivals' access to its technology used for mobile wallets at a closed hearing. "Apple is only sharing NFC with banks, which have to pay for installing their cards in Apple Pay.
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17090.0
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2023-02-15 00:00:00 UTC
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Apple Stock: Headed to $177?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-headed-to-%24177
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nan
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nan
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Apple (NASDAQ: AAPL) stock has had a great start to 2023. Shares have risen about 17%, easily surpassing the S&P 500's 7% gain over this same period. But one analyst thinks the stock still has plenty of room to run. KeyBanc analyst Brandon Nispel reiterated an overweight rating (similar to a buy rating) and a $177, 12-month price target for the stock on Tuesday. The target translates to about 16% upside from where shares are trading at the time of this writing.
Is Apple stock really still this attractive, even after its recent run-up? Let's take a look at why Nispel is bullish on the stock and attempt to determine whether or not shares are a buy today.
The path to $177
Some of the keys behind Nispel's optimism for Apple stock are expectations for user growth across the tech company's installed base of products, and recent optimistic commentary from Apple management about the company's important China and India markets.
Regarding Apple's user base, Apple CEO Tim Cook said in the company's fiscal first-quarter earnings call that its installed base of active devices recently surpassed 2 billion -- up about 150 million year over year. Furthermore, user engagement is improving, too. For instance, Apple said in its last quarterly update that its paid subscriptions across its services platform now total 935 million. This is also up about 150 million over the last 12 months. In addition, this level of subscriptions is up four times from where it was only five years ago.
Looking to China, Apple seemed happy with the company's progress there. As COVID-19 restrictions eased in December of 2022, there was "a marked change in traffic in our stores as compared to November," Cook explained. "And that followed through to demand as well."
In India, Apple is firing on all cylinders. The company's revenue in the market grew at a "very strong" double-digit rate during fiscal Q1. Cook emphasized that it's a "hugely exciting" market for the company.
Is Apple stock a buy?
These three catalysts are, indeed, good reasons to be bullish on the tech giant's underlying business. But what about the stock? With a price-to-earnings (P/E) ratio of nearly 26 at the time of this writing, shares aren't exactly cheap. Furthermore, it's not like everything is going well at Apple. Some disruption to production in fiscal Q1 and macroeconomic uncertainty weighed on results, leading to revenue falling 5% year over year.
Overall, however, a P/E ratio in the mid-twenties isn't a bad price to pay for a company with such an impressive track record with growing its user base and delighting its customers. In addition, the company's massive, loyal customer base should be a boon for earnings growth over the long haul. While shares aren't a screaming buy at this level, the stock remains attractive. Though anyone buying Apple stock at this level may want to keep the position small relative to their overall portfolio. A higher price means the company needs to execute exceptionally well over the next decade in order to live up to the current valuation.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) stock has had a great start to 2023. As COVID-19 restrictions eased in December of 2022, there was "a marked change in traffic in our stores as compared to November," Cook explained. Overall, however, a P/E ratio in the mid-twenties isn't a bad price to pay for a company with such an impressive track record with growing its user base and delighting its customers.
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Apple (NASDAQ: AAPL) stock has had a great start to 2023. The path to $177 Some of the keys behind Nispel's optimism for Apple stock are expectations for user growth across the tech company's installed base of products, and recent optimistic commentary from Apple management about the company's important China and India markets. Regarding Apple's user base, Apple CEO Tim Cook said in the company's fiscal first-quarter earnings call that its installed base of active devices recently surpassed 2 billion -- up about 150 million year over year.
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Apple (NASDAQ: AAPL) stock has had a great start to 2023. The path to $177 Some of the keys behind Nispel's optimism for Apple stock are expectations for user growth across the tech company's installed base of products, and recent optimistic commentary from Apple management about the company's important China and India markets. Regarding Apple's user base, Apple CEO Tim Cook said in the company's fiscal first-quarter earnings call that its installed base of active devices recently surpassed 2 billion -- up about 150 million year over year.
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Apple (NASDAQ: AAPL) stock has had a great start to 2023. The path to $177 Some of the keys behind Nispel's optimism for Apple stock are expectations for user growth across the tech company's installed base of products, and recent optimistic commentary from Apple management about the company's important China and India markets. But what about the stock?
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17091.0
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2023-02-15 00:00:00 UTC
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MORNING BID AMERICAS-Interminable anxiety
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AAPL
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https://www.nasdaq.com/articles/morning-bid-americas-interminable-anxiety
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nan
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nan
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A look at the day ahead in U.S. and global markets from Mike Dolan.
U.S. inflation is not falling fast enough, the Federal Reserve is stamping its foot and the assumed 'terminal' interest rate in this brutal monetary policy tightening cycle is climbing upwards once again.
The net impact of Tuesday's sticky U.S. inflation report for January and the red hot employment readout for the same month has been to catapult market pricing of both peak Fed rates and where they'll be at year-end well above 5% and above where even Fed guidance had been late last year.
Deutsche Bank, for one, has raised its U.S. terminal rate forecast by half a percentage point to 5.6% since the CPI release, with some market players already mulling the chance that even 6% now comes on the risk radar.
And as one of the leading doves on the Fed's policymaking council - Vice Chair Lael Brainard - is set to depart the central bank later this month, her colleagues seem happy for markets to look ever higher for the rates summit.
"Clearly there are risks that inflation stays higher for longer than expected, or that we might need to raise rates higher" than current forecasts, said New York Fed President John Williams, adding that a year-end rate between 5.0% and 5.50% was "the right kind of framing".
The about-turn in rates markets in just two weeks has been extraordinary - with Fed funds futures pricing moving from a terminal rate as low as 4.8% to 5.26% on Wednesday. Year-end pricing has moved above 5% too. Two-year Treasury yields soared to a 3-month high of 4.64% on Tuesday - where current Fed rates sit - and only gave back a fraction of that on Wednesday.
The dollar extended gains against Japan's yen and the pound but was restrained against the euro by speculation the European Central Bank faces a similar rethink on inflation and rates that's also pushing up where its peak tightening might be.
U.S. stocks held up remarkably well on Tuesday - helped by hopes recession fears are easing even as rate speculation intensifies. But futures and world stocks in general were feeling the heat today.
U.S. January industrial production and retail sales data are now the next gauge of what's happening on the ground in the U.S. economy.
Sterling slipped as UK inflation fell faster than expected last month, even though the annual inflation rate remains in double digits.
Despite many banks benefiting from the higher interest rate environment, Britain's Barclays has proven an outlier and its shares dropped almost 10% on Wednesday after a dire 2022 earnings update.
Barclays BARC.L reported a 14% fall in full-year pre-tax profit as earnings were pole-axed by surging costs, a collapse in deal fees and multi-million dollar fines relating to an administrative blunder.
There was better news on the inflation front in energy markets. Oil dropped for a second day on Wednesday, as an industry report pointed to ample supplies in the United States and anticipation of further rate hikes sparked concerns over weaker fuel demand and the economic outlook.
Warren Buffett's Berkshire Hathaway BRKa.N, meantime, slashed its stake in Taiwanese contract chipmaker TSMC 2330.TW, TSM.N as well as in some banks in the fourth quarter, while bolstering its holdings in Apple Inc AAPL.O.
Berkshire cut its position in Taiwan Semiconductor Manufacturing Co - roughly three months after it said it had bought more than $4.1 billion worth of the stock.
Key developments that may provide direction to U.S. markets later on Wednesday:
* U.S. Feb NAHB housing index, Empire manufacturing index, Jan retail sales, industrial production, Dec business inventories, Dec TIC Treasury holdings data
* European Central Bank President Christine Lagarde speaks in European Parliament
* U.S. Treasury auctions 20-year bonds * U.S. corp earnings: Cisco, Analog Devices, Marathon, AIG, Equinix, Kraft Heinz, Biogen, Albemarle, ROBLOX, Zillow, Roku, Rollins, EQT, Synopsys
Implied Fed Rates to Yearend Surge Above 5%https://tmsnrt.rs/3YwRgmW
U.S. Inflationhttps://tmsnrt.rs/3ly0Nf2
UK sees some respite from price risehttps://tmsnrt.rs/3XxyJpi
Barclays underperformshttps://tmsnrt.rs/3Ke1dlf
(By Mike Dolan, editing by Emelia Sithole-Matarise; mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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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Warren Buffett's Berkshire Hathaway BRKa.N, meantime, slashed its stake in Taiwanese contract chipmaker TSMC 2330.TW, TSM.N as well as in some banks in the fourth quarter, while bolstering its holdings in Apple Inc AAPL.O. And as one of the leading doves on the Fed's policymaking council - Vice Chair Lael Brainard - is set to depart the central bank later this month, her colleagues seem happy for markets to look ever higher for the rates summit. Oil dropped for a second day on Wednesday, as an industry report pointed to ample supplies in the United States and anticipation of further rate hikes sparked concerns over weaker fuel demand and the economic outlook.
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Warren Buffett's Berkshire Hathaway BRKa.N, meantime, slashed its stake in Taiwanese contract chipmaker TSMC 2330.TW, TSM.N as well as in some banks in the fourth quarter, while bolstering its holdings in Apple Inc AAPL.O. "Clearly there are risks that inflation stays higher for longer than expected, or that we might need to raise rates higher" than current forecasts, said New York Fed President John Williams, adding that a year-end rate between 5.0% and 5.50% was "the right kind of framing". U.S. January industrial production and retail sales data are now the next gauge of what's happening on the ground in the U.S. economy.
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Warren Buffett's Berkshire Hathaway BRKa.N, meantime, slashed its stake in Taiwanese contract chipmaker TSMC 2330.TW, TSM.N as well as in some banks in the fourth quarter, while bolstering its holdings in Apple Inc AAPL.O. The net impact of Tuesday's sticky U.S. inflation report for January and the red hot employment readout for the same month has been to catapult market pricing of both peak Fed rates and where they'll be at year-end well above 5% and above where even Fed guidance had been late last year. "Clearly there are risks that inflation stays higher for longer than expected, or that we might need to raise rates higher" than current forecasts, said New York Fed President John Williams, adding that a year-end rate between 5.0% and 5.50% was "the right kind of framing".
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Warren Buffett's Berkshire Hathaway BRKa.N, meantime, slashed its stake in Taiwanese contract chipmaker TSMC 2330.TW, TSM.N as well as in some banks in the fourth quarter, while bolstering its holdings in Apple Inc AAPL.O. A look at the day ahead in U.S. and global markets from Mike Dolan. "Clearly there are risks that inflation stays higher for longer than expected, or that we might need to raise rates higher" than current forecasts, said New York Fed President John Williams, adding that a year-end rate between 5.0% and 5.50% was "the right kind of framing".
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17092.0
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2023-02-15 00:00:00 UTC
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Warren Buffett Just Bought 4 Stocks. Here's the Best of the Bunch.
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https://www.nasdaq.com/articles/warren-buffett-just-bought-4-stocks.-heres-the-best-of-the-bunch.
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Warren Buffett has stated in the past that he doesn't like to sit on a mountain of cash. But that's pretty much what he did in the fourth quarter of 2022.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) submitted its 13F and 13G filings to the U.S. Securities and Exchange Commission (SEC) on Tuesday. Buffett didn't initiate any new positions in Berkshire's portfolio. However, he did add shares to four existing positions.
Image source: The Motley Fool.
What Buffett bought
Buffett's biggest purchase in Q4 was adding to Berkshire's stake in Occidental Petroleum (NYSE: OXY). At the end of the third quarter, Berkshire owned 21.4% of the oil company. By the end of the year, that stake was up to 28%.
Berkshire also added significantly to its stake in Louisiana-Pacific (NYSE: LPX) during Q4. This position was first initiated in the third quarter of 2022, when Berkshire bought nearly 5.8 million shares of the building-products manufacturer.
In Q4, Buffett increased this stake by more than 21.5%. Berkshire now owns more than 7 million shares.
Paramount Global (NASDAQ: PARA) is another relatively recent addition to Berkshire's portfolio. Buffett first bought shares of the entertainment company in the first quarter of 2022. He added to that position in subsequent quarters. In the fourth quarter, Berkshire scooped up more than 2.4 million new shares of Paramount Global.
The fourth stock that Buffett bought in Q4 is arguably his favorite stock other than Berkshire itself. That stock, of course, is Apple (NASDAQ: AAPL). It's by far the biggest holding in Berkshire's portfolio. And now it's an even bigger position, as Buffett added an additional 333,856 shares in Q4.
Why he liked these stocks
Buffett believes that Occidental is a bargain, and he's always been a value investor at heart. Occidental fits right into the value investing philosophy, with its shares trading at less than nine times expected earnings.
I suspect valuation is also a big reason why Buffett likes Louisiana-Pacific. The building-products company's shares trade at below five times trailing-12-month earnings.
Granted, Louisiana-Pacific's earnings outlook is much weaker this year. However, Buffett is probably looking at data that shows an ongoing housing shortage in the U.S. More houses will be needed, which bodes well for Louisiana-Pacific's longer-term prospects.
There's a similar story with Paramount Global. The stock looks dirt cheap, with shares trading at less than five times trailing earnings. Paramount's earnings are expected to decline this year, though.
Still, the company could gain more momentum for its Paramount+ streaming service. Buffett also no doubt likes its juicy dividend yield that currently stands at nearly 4.5%.
It's not surprising whatsoever that Buffett added to Berkshire's position in Apple in the fourth quarter of 2022. Why? Just look at his activity earlier in the year.
The Oracle of Omaha bought shares of Apple in both the first and second quarters. He stated in an interview with CNBC in May 2022 that the only reason he quit buying was that the stock rebounded.
Apple's share price fell in the fourth quarter below the levels where it traded in Q1 and Q2. Perhaps the biggest mystery is why Buffett chose not to buy more heavily than he did.
Best of the bunch
I don't think there's much of a contest deciding which of these four stocks Buffett bought in Q4 is the best of the bunch. In my opinion, Apple is the hands-down winner.
Occidental just might be Buffett's best-performing stock this year. However, the company's fortunes definitely hinge on oil prices. That makes the stock potentially volatile. It's not as strong of a long-term pick as Apple is, in my view.
Unlike Louisiana-Pacific and Paramount Global, Apple continues to deliver solid earnings growth. Buffett said three years ago that Apple was "probably the best business I know in the world." I don't think he's changed his mind.
Sure, Apple faces some of the same macroeconomic headwinds that many other companies face. In particular, the strong U.S. dollar is problematic for Apple because of its high level of international sales.
However, Apple's iPhone ecosystem is still going strong. Its Apple TV+ streaming service is gaining traction. The company has significant growth opportunities in healthcare and augmented reality.
And don't overlook Apple's artificial intelligence (AI) prospects, either. CEO Tim Cook stated in the company's recent quarterly call that AI "will affect every product in every service that we have."
There's a reason why Apple is the biggest position in Berkshire's portfolio. While it's not wise to blindly follow in Buffett's footsteps and buy every stock that he does, I don't think long-term investors will go wrong by copying the legendary investor in buying shares of the tech giant.
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*Stock Advisor returns as of February 8, 2023
Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That stock, of course, is Apple (NASDAQ: AAPL). Warren Buffett has stated in the past that he doesn't like to sit on a mountain of cash. Unlike Louisiana-Pacific and Paramount Global, Apple continues to deliver solid earnings growth.
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That stock, of course, is Apple (NASDAQ: AAPL). What Buffett bought Buffett's biggest purchase in Q4 was adding to Berkshire's stake in Occidental Petroleum (NYSE: OXY). It's not surprising whatsoever that Buffett added to Berkshire's position in Apple in the fourth quarter of 2022.
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That stock, of course, is Apple (NASDAQ: AAPL). The fourth stock that Buffett bought in Q4 is arguably his favorite stock other than Berkshire itself. It's not surprising whatsoever that Buffett added to Berkshire's position in Apple in the fourth quarter of 2022.
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That stock, of course, is Apple (NASDAQ: AAPL). Buffett didn't initiate any new positions in Berkshire's portfolio. Buffett first bought shares of the entertainment company in the first quarter of 2022.
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17093.0
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2023-02-15 00:00:00 UTC
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Why Video Game Stocks Are in Trouble
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https://www.nasdaq.com/articles/why-video-game-stocks-are-in-trouble
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Video game stocks got a lot of attention during the pandemic on the thesis that players would spend a lot more money gaming. But that didn't really happen, and now companies with little growth are priced like high-growth stocks. In the video below, Travis Hoium highlights why video game stocks do not look attractive right now.
*Stock prices used were end-of-day prices of Feb. 8, 2023. The video was published on Feb. 14, 2023.
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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. Travis Hoium has positions in Alphabet, Apple, and Unity Software. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Microsoft, and Unity Software. The Motley Fool recommends Electronic Arts 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 Activision Blizzard wasn't one of them! The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Microsoft, and Unity Software.
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In the video below, Travis Hoium highlights why video game stocks do not look attractive right now. Travis Hoium has positions in Alphabet, Apple, and Unity Software. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Microsoft, and Unity Software.
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In the video below, Travis Hoium highlights why video game stocks do not look attractive right now. 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. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Microsoft, and Unity Software.
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In the video below, Travis Hoium highlights why video game stocks do not look attractive right now. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Activision Blizzard wasn't one of them! Their opinions remain their own and are unaffected by The Motley Fool.
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17094.0
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2023-02-14 00:00:00 UTC
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Best Tech ETFs In Nasdaq's Worst Week Since December
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https://www.nasdaq.com/articles/best-tech-etfs-in-nasdaqs-worst-week-since-december
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The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns. The Nasdaq Composite, which is tech-heavy in nature, slipped 2.4% last week, marking its worst week since December.
The U.S. benchmark treasury yield started the week at 3.63% and ended the week at 3.74% while the two-year U.S. treasury yield started the week at 4.44% and ended the week at 4.50%. Such an uptick in rates caused a decline in Wall Street. Growth sectors like technology were hit harder.
Rising rate worries dampen the appeal of the stocks that rely on easy borrowing for superior growth. Hence, shares of high-growth technology companies remain in a tight spot in such a scenario. Moreover, earnings results were not satisfactory.
Earnings from 79.9% of the tech sector’s market capitalization that have reported results so far are down 20% from the same period last year on 4.2% lower revenues, with 65.1% beating EPS estimates and 67.4% beating revenue estimates. The earnings beat ratio is the lowest in the preceding 20 quarters, while the revenue surprise is also toward the lower end of the 5-year range. Overall, the sector is expected to report an earnings decline of 18.2%.
Apple Inc. AAPL missed the Zacks Consensus Estimate for earnings for the first time since 2016. Intel INTC also came up with weaker results and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers. Although Amazon AMZN beat earnings and revenue estimates, it posted the least profitable holiday quarter since 2014.
Against this backdrop, below we highlight a few tech ETFs those were the least-hurt last week.
Best-Performing Tech ETFs of Last Week
Invesco DWA Technology Momentum ETF PTF – Down 1.2%
The underlying Dorsey Wright Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Zacks Rank #1 (Strong Buy) ETF charges 60 bps in fees.
Invesco Dynamic Networking ETF PXQ – Down 1.3%
The underlying Dynamic Networking Intellidex Index is comprised of stocks of networking companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The Zacks Rank #1 ETF charges 63 bps in fees.
Technology Select Sector SPDR Fund XLK – Down 1.4%
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The Zacks Rank #2 (Buy) charges 10 bps in fees.
Franklin Intelligent Machines ETF IQM – Down 1.6%
The Franklin Intelligent Machines ETF seeks capital appreciation by investing in innovative companies furthering techniques that automate or enhance everyday tasks. The fund charges 50 bps in fees.
Defiance Quantum ETF QTUM – Down 1.6%
The underlying BlueStar Quantum Computing and Machine Learning Index consists of a modified equal-weighted portfolio of the stock of companies whose products or services are predominantly tied to the development of quantum computing and machine learning technology. The fund charges 40 bps in fees.
iShares Global Tech ETF IXN – Down 1.7%
The underlying S&P Global 1200 Information Technology Sector Index measures the performance of companies that are part of the information technology sector of the economy. The fund charges 40 bps in fees.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports
Invesco Dynamic Networking ETF (PXQ): ETF Research Reports
iShares Global Tech ETF (IXN): ETF Research Reports
Defiance Quantum ETF (QTUM): ETF Research Reports
Franklin Intelligent Machines ETF (IQM): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL missed the Zacks Consensus Estimate for earnings for the first time since 2016. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Invesco Dynamic Networking ETF (PXQ): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Defiance Quantum ETF (QTUM): ETF Research Reports Franklin Intelligent Machines ETF (IQM): ETF Research Reports To read this article on Zacks.com click here. The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Invesco Dynamic Networking ETF (PXQ): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Defiance Quantum ETF (QTUM): ETF Research Reports Franklin Intelligent Machines ETF (IQM): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL missed the Zacks Consensus Estimate for earnings for the first time since 2016. Technology Select Sector SPDR Fund XLK – Down 1.4% The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Invesco Dynamic Networking ETF (PXQ): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Defiance Quantum ETF (QTUM): ETF Research Reports Franklin Intelligent Machines ETF (IQM): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL missed the Zacks Consensus Estimate for earnings for the first time since 2016. Best-Performing Tech ETFs of Last Week Invesco DWA Technology Momentum ETF PTF – Down 1.2% The underlying Dorsey Wright Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Invesco Dynamic Networking ETF (PXQ): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Defiance Quantum ETF (QTUM): ETF Research Reports Franklin Intelligent Machines ETF (IQM): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL missed the Zacks Consensus Estimate for earnings for the first time since 2016. Earnings from 79.9% of the tech sector’s market capitalization that have reported results so far are down 20% from the same period last year on 4.2% lower revenues, with 65.1% beating EPS estimates and 67.4% beating revenue estimates.
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17095.0
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2023-02-14 00:00:00 UTC
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Warren Buffett Didn't Buy a Single New Stock to End 2022. But He Cut From 8.
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https://www.nasdaq.com/articles/warren-buffett-didnt-buy-a-single-new-stock-to-end-2022.-but-he-cut-from-8.
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) just released its 13F regulatory filing for the fourth quarter of 2022, revealing what stocks Warren Buffett's conglomerate bought and sold in the last three months of the year. There was a lot more selling than buying.
While the company did increase its position in some holdings, Berkshire didn't add a single new stock in the period, hinting that Buffett and Berkshire's outlook may have soured after going on a big shopping spree at the beginning of 2022. Here's what Berkshire was buying and selling to cap off 2022.
A sharp reversal on Taiwan Semiconductor
One of Berkshire's more surprising moves was its decision to sell roughly 86% of its new stake in Taiwan Semiconductor Manufacturing (NYSE: TSM). Berkshire had just initiated a more than $4 billion stake in the giant chipmaker in the third quarter.
While Taiwan Semiconductor beat earnings estimates for the fourth quarter, it missed on revenue, and the company significantly cut back its capital expenditure plans for 2023, citing lower chip demand. While the company expects chip demand to bounce back later this year, and while the semiconductor industry is supposed to be a high-growth industry moving forward, something certainly seems to have drastically changed Buffett and Berkshire's view on the company and the chip industry.
Berkshire also slashed its stake in large regional lender U.S. Bancorp (NYSE: USB) by 91% and cut its position in large custodian Bank of New York Mellon (NYSE: BK) by 59%. Both are longtime Buffett holdings that have been strong performers over the years, but the sales are less surprising given Buffett sold a sizable amount of shares in both these stocks in the third quarter. Both banks trade at high valuations, and the U.S. banking sector is expected to see pressure this year due to rising deposit costs and the impact of a potential recession.
Berkshire also sold 12% of its stake in video gaming company Activision Blizzard (NASDAQ: ATVI) and 10% of its existing position in healthcare products distribution company McKesson (NYSE: MCK). Finally, Berkshire slightly trimmed its positions in Chevron (NYSE: CVX), Kroger (NYSE: KR), and Ally Financial (NYSE: ALLY).
Fresh investments in 2 new stocks
Although Berkshire didn't open any new positions in the fourth quarter of 2022, the company did increase its position in two stocks it bought for the first time last year. Berkshire increased its position in construction materials firm Louisiana-Pacific Corp. (NYSE: LPX) by 21%, although the company is by no means a large position in Berkshire's portfolio. Berkshire also made a small addition to its stake in the large media company Paramount Global (NASDAQ: PARA).
Berkshire's 13F also showed more than 333,800 new shares of consumer giant Apple (NASDAQ: AAPL), which is the largest position in its $352 billion-plus equities portfolio. But don't get too excited -- the number of new shares was equivalent to the amount held by insurance company Alleghany, which Berkshire purchased early last year.
What do Berkshire's moves tell us?
Like most investors, Buffett and Berkshire's outlook for the economy seemed to get grimmer toward the end of 2022, as many foresaw some kind of recession playing out this year. It is possible things have changed, but a recession is also still in the cards.
I was particularly confused by Berkshire's sudden reversal on Taiwan Semiconductor because it just purchased a significant stake in the company a few months earlier. But overall, Berkshire definitely stayed conservative and seemed to stick to companies it knows well and expects to be able to navigate a more difficult economy.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
Ally is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends McKesson 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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Berkshire's 13F also showed more than 333,800 new shares of consumer giant Apple (NASDAQ: AAPL), which is the largest position in its $352 billion-plus equities portfolio. While Taiwan Semiconductor beat earnings estimates for the fourth quarter, it missed on revenue, and the company significantly cut back its capital expenditure plans for 2023, citing lower chip demand. But don't get too excited -- the number of new shares was equivalent to the amount held by insurance company Alleghany, which Berkshire purchased early last year.
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Berkshire's 13F also showed more than 333,800 new shares of consumer giant Apple (NASDAQ: AAPL), which is the largest position in its $352 billion-plus equities portfolio. While the company expects chip demand to bounce back later this year, and while the semiconductor industry is supposed to be a high-growth industry moving forward, something certainly seems to have drastically changed Buffett and Berkshire's view on the company and the chip industry. Fresh investments in 2 new stocks Although Berkshire didn't open any new positions in the fourth quarter of 2022, the company did increase its position in two stocks it bought for the first time last year.
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Berkshire's 13F also showed more than 333,800 new shares of consumer giant Apple (NASDAQ: AAPL), which is the largest position in its $352 billion-plus equities portfolio. While the company did increase its position in some holdings, Berkshire didn't add a single new stock in the period, hinting that Buffett and Berkshire's outlook may have soured after going on a big shopping spree at the beginning of 2022. Fresh investments in 2 new stocks Although Berkshire didn't open any new positions in the fourth quarter of 2022, the company did increase its position in two stocks it bought for the first time last year.
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Berkshire's 13F also showed more than 333,800 new shares of consumer giant Apple (NASDAQ: AAPL), which is the largest position in its $352 billion-plus equities portfolio. Like most investors, Buffett and Berkshire's outlook for the economy seemed to get grimmer toward the end of 2022, as many foresaw some kind of recession playing out this year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them!
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17096.0
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2023-02-14 00:00:00 UTC
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Berkshire reduces stake in Activision Blizzard, BNY Mellon
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https://www.nasdaq.com/articles/berkshire-reduces-stake-in-activision-blizzard-bny-mellon
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By Carolina Mandl and Sittrarasu S
NEW YORK/BANGALORE, Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N reduced its stakes in Activision Blizzard ATVI.Oand in Bank of New York MellonBK.N in the fourth quarter, while it added shares in Apple IncAAPL.O, according to a regulatory filing on Tuesday.
The move by Berkshire comes as MicrosoftCorp MSFT.O makes efforts to conclude its acquisition of Activision Blizzard, maker of the "Call of Duty" video game. On Feb. 21, Microsoft will defend the deal in front of European Union and national antitrust officials at a closed hearing.
Berkshire reduced its stake in Activision Blizzard by 12.35%, and now holds a 6.7% stake, or 52,717,075 shares, according to the filing.
Berkshire also trimmed its stake in BNY Mellon by roughly 60% in the last quarter, to 25.1 million shares. At current prices, it represents roughly $2 billion in shares of the bank sold.
On Apple, Buffett's company bought another 20.8 million shares, or $3.2 billion, bringing his stake to 5.8% in Apple, which Buffett considers more as a consumer products company, according to the filing.
(Reporting by Carolina Mandl in New York; editing by Jonathan Oatis and Leslie Adler)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and 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 Carolina Mandl and Sittrarasu S NEW YORK/BANGALORE, Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N reduced its stakes in Activision Blizzard ATVI.Oand in Bank of New York MellonBK.N in the fourth quarter, while it added shares in Apple IncAAPL.O, according to a regulatory filing on Tuesday. The move by Berkshire comes as MicrosoftCorp MSFT.O makes efforts to conclude its acquisition of Activision Blizzard, maker of the "Call of Duty" video game. On Feb. 21, Microsoft will defend the deal in front of European Union and national antitrust officials at a closed hearing.
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By Carolina Mandl and Sittrarasu S NEW YORK/BANGALORE, Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N reduced its stakes in Activision Blizzard ATVI.Oand in Bank of New York MellonBK.N in the fourth quarter, while it added shares in Apple IncAAPL.O, according to a regulatory filing on Tuesday. Berkshire reduced its stake in Activision Blizzard by 12.35%, and now holds a 6.7% stake, or 52,717,075 shares, according to the filing. On Apple, Buffett's company bought another 20.8 million shares, or $3.2 billion, bringing his stake to 5.8% in Apple, which Buffett considers more as a consumer products company, according to the filing.
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By Carolina Mandl and Sittrarasu S NEW YORK/BANGALORE, Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N reduced its stakes in Activision Blizzard ATVI.Oand in Bank of New York MellonBK.N in the fourth quarter, while it added shares in Apple IncAAPL.O, according to a regulatory filing on Tuesday. Berkshire reduced its stake in Activision Blizzard by 12.35%, and now holds a 6.7% stake, or 52,717,075 shares, according to the filing. On Apple, Buffett's company bought another 20.8 million shares, or $3.2 billion, bringing his stake to 5.8% in Apple, which Buffett considers more as a consumer products company, according to the filing.
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By Carolina Mandl and Sittrarasu S NEW YORK/BANGALORE, Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N reduced its stakes in Activision Blizzard ATVI.Oand in Bank of New York MellonBK.N in the fourth quarter, while it added shares in Apple IncAAPL.O, according to a regulatory filing on Tuesday. Berkshire reduced its stake in Activision Blizzard by 12.35%, and now holds a 6.7% stake, or 52,717,075 shares, according to the filing. Berkshire also trimmed its stake in BNY Mellon by roughly 60% in the last quarter, to 25.1 million shares.
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17097.0
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2023-02-14 00:00:00 UTC
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Notable Tuesday Option Activity: CHPT, AAPL, SNOW
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AAPL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-chpt-aapl-snow
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in ChargePoint Holdings Inc (Symbol: CHPT), where a total volume of 98,358 contracts has been traded thus far today, a contract volume which is representative of approximately 9.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 103% of CHPT's average daily trading volume over the past month, of 9.5 million shares. Particularly high volume was seen for the $12 strike call option expiring February 17, 2023, with 27,252 contracts trading so far today, representing approximately 2.7 million underlying shares of CHPT. Below is a chart showing CHPT's trailing twelve month trading history, with the $12 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 719,906 contracts thus far today. That number of contracts represents approximately 72.0 million underlying shares, working out to a sizeable 97% of AAPL's average daily trading volume over the past month, of 74.2 million shares. Especially high volume was seen for the $150 strike put option expiring February 17, 2023, with 68,070 contracts trading so far today, representing approximately 6.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange:
And Snowflake Inc (Symbol: SNOW) saw options trading volume of 50,194 contracts, representing approximately 5.0 million underlying shares or approximately 92.8% of SNOW's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $180 strike call option expiring February 17, 2023, with 3,729 contracts trading so far today, representing approximately 372,900 underlying shares of SNOW. Below is a chart showing SNOW's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for CHPT options, AAPL options, or SNOW options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Shipping Dividend Stocks
HYEM shares outstanding history
Nautilus Past Earnings
The views and 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 $150 strike put option expiring February 17, 2023, with 68,070 contracts trading so far today, representing approximately 6.8 million underlying shares of AAPL. Below is a chart showing CHPT's trailing twelve month trading history, with the $12 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 719,906 contracts thus far today. That number of contracts represents approximately 72.0 million underlying shares, working out to a sizeable 97% of AAPL's average daily trading volume over the past month, of 74.2 million shares.
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Below is a chart showing CHPT's trailing twelve month trading history, with the $12 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 719,906 contracts thus far today. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: And Snowflake Inc (Symbol: SNOW) saw options trading volume of 50,194 contracts, representing approximately 5.0 million underlying shares or approximately 92.8% of SNOW's average daily trading volume over the past month, of 5.4 million shares. That number of contracts represents approximately 72.0 million underlying shares, working out to a sizeable 97% of AAPL's average daily trading volume over the past month, of 74.2 million shares.
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That number of contracts represents approximately 72.0 million underlying shares, working out to a sizeable 97% of AAPL's average daily trading volume over the past month, of 74.2 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: And Snowflake Inc (Symbol: SNOW) saw options trading volume of 50,194 contracts, representing approximately 5.0 million underlying shares or approximately 92.8% of SNOW's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing CHPT's trailing twelve month trading history, with the $12 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 719,906 contracts thus far today.
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Especially high volume was seen for the $150 strike put option expiring February 17, 2023, with 68,070 contracts trading so far today, representing approximately 6.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: And Snowflake Inc (Symbol: SNOW) saw options trading volume of 50,194 contracts, representing approximately 5.0 million underlying shares or approximately 92.8% of SNOW's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing CHPT's trailing twelve month trading history, with the $12 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 719,906 contracts thus far today.
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17098.0
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2023-02-14 00:00:00 UTC
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After Hours Most Active for Feb 14, 2023 : ITUB, EQRX, ABNB, CSCO, AAPL, FOLD, ABEV, CSX, NU, C, SM, HPQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-14-2023-%3A-itub-eqrx-abnb-csco-aapl-fold-abev-csx-nu-c-sm
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -11.5 to 12,579.39. The total After hours volume is currently 97,460,979 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is unchanged at $5.05, with 11,024,880 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
EQRx, Inc. (EQRX) is unchanged at $2.28, with 3,863,981 shares traded. EQRX's current last sale is 55.61% of the target price of $4.1.
Airbnb, Inc. (ABNB) is +10.94 at $131.81, with 3,491,515 shares traded. ABNB's current last sale is 100.62% of the target price of $131.
Cisco Systems, Inc. (CSCO) is -0.11 at $47.59, with 2,533,635 shares traded.CSCO is scheduled to provide an earnings report on 2/15/2023, for the fiscal quarter ending Jan2023. The consensus earnings per share forecast is 0.76 per share, which represents a 77 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.07 at $153.13, with 2,529,702 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.43. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amicus Therapeutics, Inc. (FOLD) is +0.01 at $12.50, with 2,448,729 shares traded. As reported in the last short interest update the days to cover for FOLD is 8.355472; this calculation is based on the average trading volume of the stock.
Ambev S.A. (ABEV) is +0.005 at $2.49, with 2,221,820 shares traded. As reported by Zacks, the current mean recommendation for ABEV is in the "buy range".
CSX Corporation (CSX) is -0.01 at $31.43, with 2,123,916 shares traded. CSX's current last sale is 89.8% of the target price of $35.
Nu Holdings Ltd. (NU) is +0.39 at $5.39, with 2,069,424 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Citigroup Inc. (C) is unchanged at $51.61, with 1,983,253 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 $1.68. C's current last sale is 97.38% of the target price of $53.
SM Energy Company (SM) is +0.01 at $33.43, with 1,235,965 shares traded. SM's current last sale is 65.55% of the target price of $51.
HP Inc. (HPQ) is unchanged at $30.40, with 1,223,576 shares traded. HPQ's current last sale is 104.83% of the target price of $29.
The views and 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 -0.07 at $153.13, with 2,529,702 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is unchanged at $5.05, with 11,024,880 shares traded.
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Apple Inc. (AAPL) is -0.07 at $153.13, with 2,529,702 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 97,460,979 shares traded.
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Apple Inc. (AAPL) is -0.07 at $153.13, with 2,529,702 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 97,460,979 shares traded.
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Apple Inc. (AAPL) is -0.07 at $153.13, with 2,529,702 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ABNB's current last sale is 100.62% of the target price of $131.
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17099.0
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2023-02-14 00:00:00 UTC
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Invest in the Dow, S&P 500, and Nasdaq with These 3 ETFs
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AAPL
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https://www.nasdaq.com/articles/invest-in-the-dow-sp-500-and-nasdaq-with-these-3-etfs
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nan
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nan
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Investors can harness the power of entire indices by adding ETFs focusing on the Dow Jones (DJIA), S&P 500 (SPX), and Nasdaq 100 (NDX) to their portfolios. Investing can be complex, but it can also be very simple. Simply investing in these three major U.S. indices would have generated significant returns over the past decade. Over the past 10 years, the Dow, S&P 500, and NASDAQ have gained 144%, 172%, and 272%, respectively.
It wouldn't be feasible to invest in all 500 stocks of the S&P 500, for example. However, you can add an S&P 500 ETF to your portfolio, giving you ample diversification and exposure to the growth of hundreds of the best companies in the United States. It's sensible for all investors to have some exposure to the broader indices, and it's a great way for new investors to start their portfolios with instant diversification.
Investors can use these three ETFs to add the breadth and depth of these three indices to their portfolios.
Vanguard S&P 500 ETF (NYSEARCA:VOO)
Investing in the Vanguard S&P 500 ETF is an effective way to gain exposure to the power of the S&P 500 as a whole. This massive ETF has $281 billion in assets under management.
As you might expect, since it covers the entire S&P 500, VOO ETF is very diversified with 506 holdings, and VOO's top 10 holdings only make up 24.3% of the fund, essentially mirroring the concentration of the S&P 500 itself. The Vanguard S&P 500's top holding is the largest stock in the S&P 500 by market cap, Apple (NASDAQ:AAPL), which accounts for 6% of the fund.
The rest of the top 10 is rounded out by familiar names, including tech giants like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), and Nvidia (NASDAQ:NVDA), as well as large-cap stocks from other sectors like Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), ExxonMobil (NYSE:XOM), and UnitedHealth Group (NYSE:UNH).
VOO pays a dividend and currently yields 1.6%, which is roughly in line with the average yield of the S&P 500. Vanguard is known for its low-cost funds and ETFs, and VOO is no different, with a minuscule expense ratio of just 0.03%.
The Vanguard S&P 500 ETF has a favorable Smart Score of 8. Its average analyst price target of $421.99 indicates upside of 11.3% from current levels. Blogger sentiment is bullish, while hedge fund involvement is decreasing.
Last year, VOO stock fell 18.2%, closely tracking the performance of the S&P 500. However, things are looking up in 2023 as the ETF is up 8.4% year to date. Ultimately, the Vanguard S&P 500 is an efficacious and cost-effective way to add exposure to the entire S&P 500 to your portfolio.
Invesco QQQ Trust (NASDAQ:QQQ)
The Invesco QQQ Trust ETF, often referred to colloquially as "The Q's," is a massive $161 billion ETF that invests in the 100 largest non-financial companies in the Nasdaq.
The Nasdaq is the index that is most closely associated with the technology sector, so it is unsurprising that most of QQQ's top holdings here are the same tech stocks that make up VOO’s top holdings. Stocks like Microsoft, Apple, Amazon, Alphabet, NVIDIA, Meta Platforms (NASDAQ:META), and Tesla dominate the top 10 holdings. Pepsi (NASDAQ:PEP) is the one notable non-tech stock amongst the top 10 holdings.
While QQQ is a diversified ETF with 102 holdings, it is much more concentrated than VOO. Its top 10 holdings make up 53.2% of the fund. Like VOO, QQQ pays a dividend and currently yields 0.7%.
The Invesco QQQ Trust has a positive ETF smart score of 8 out of 10, indicating an Outperform rating, and the consensus price target of $341.20 implies 11.5% upside from today’s prices. Meanwhile, blogger sentiment is positive, while hedge fund involvement is decreasing.
Tech stocks had a tough go of it in 2022, so it's unsurprising that QQQ lost 32.5% last year. However, investor enthusiasm for tech has returned in 2023, and QQQ has soared to a 13.3% gain year-to-date. Overall, the Invesco QQQ Trust is a cost-effective way (0.20% expense ratio) to add the innovation of the large-cap tech stocks in the Nasdaq 100 to your portfolio.
SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)
In some ways, the much larger S&P 500 has overtaken the Dow Jones Industrial Average as the dominant barometer for the U.S. economy. However, the Dow Jones is still viewed as a blue-chip index of world-class companies.
Being in the Dow Jones Industrial Average essentially screens out “bad." This is because Dow components have to be profitable and must have an excellent reputation, sustained growth, and be of interest to a large number of investors, according to S&P Global (NYSE:SPGI) (the company that maintains both the S&P 500 and Dow Jones Industrial Average).
The Dow Jones only includes 30 companies, so the SPDR Dow Jones Industrial Average ETF is naturally much more concentrated than the S&P 500 or Nasdaq ETFs listed above. The ETF has 31 holdings, and DIA's top 10 holdings make up 55.2% of the fund.
Unlike the S&P 500 or the Nasdaq, the Dow is a price-weighted index, so high-priced Dow components like UnitedHealth have an outsize position in the fund. UNH, the health insurance giant, makes up nearly 10% of the fund.
The rest of the top 10 is essentially a who's who of iconic U.S. companies like Goldman Sachs (NYSE:GS), Home Depot (NYSE:HD), McDonald’s (NYSE:MCD), Caterpillar (NYSE:CAT), and Visa (NYSE:V), with Microsoft serving as the lone representative from ‘big tech.’
Because DIA isn’t as exposed to tech as VOO or QQQ, it soundly outperformed both ETFs last year (just as the Dow itself outperformed the S&P 500 and the Nasdaq), with a loss of 7% for 2022. However, as you might guess, DIA is lagging behind these two counterparts as tech rebounds in 2023, with a 2.4% gain year-to-date.
The SPDR Dow Jones Industrial Average ETF Trust has a neutral ETF Smart Score of 7. Further, the average DIA stock price target of $370.67 indicates upside potential of 8.7% from current pricing.
Like the other two ETFs above, DIA pays a dividend and yields 1.9%. Like its counterparts, it also features an investor-friendly expense ratio of 0.16%.
Investor Takeaway
In conclusion, history shows that investing in indices like the Dow, S&P 500, and Nasdaq is a fruitful way to invest over the long term. These 3 ETFs offer investors a way to gain exposure to each index in an effective, easy, and inexpensive manner.
All three of these indices look like sensible investments over the long term. Note that the Dow outperformed the others last year, thanks to its lower exposure to tech, while the QQQ is outperforming this year as tech rebounds. The VOO ETF may be the best way to get "the best of both worlds" as it features a mix of tech stocks and “old economy” stocks.
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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The Vanguard S&P 500's top holding is the largest stock in the S&P 500 by market cap, Apple (NASDAQ:AAPL), which accounts for 6% of the fund. Investors can harness the power of entire indices by adding ETFs focusing on the Dow Jones (DJIA), S&P 500 (SPX), and Nasdaq 100 (NDX) to their portfolios. However, you can add an S&P 500 ETF to your portfolio, giving you ample diversification and exposure to the growth of hundreds of the best companies in the United States.
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The Vanguard S&P 500's top holding is the largest stock in the S&P 500 by market cap, Apple (NASDAQ:AAPL), which accounts for 6% of the fund. The rest of the top 10 is rounded out by familiar names, including tech giants like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), and Nvidia (NASDAQ:NVDA), as well as large-cap stocks from other sectors like Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), ExxonMobil (NYSE:XOM), and UnitedHealth Group (NYSE:UNH). Invesco QQQ Trust (NASDAQ:QQQ) The Invesco QQQ Trust ETF, often referred to colloquially as "The Q's," is a massive $161 billion ETF that invests in the 100 largest non-financial companies in the Nasdaq.
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The Vanguard S&P 500's top holding is the largest stock in the S&P 500 by market cap, Apple (NASDAQ:AAPL), which accounts for 6% of the fund. The rest of the top 10 is rounded out by familiar names, including tech giants like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), and Nvidia (NASDAQ:NVDA), as well as large-cap stocks from other sectors like Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), ExxonMobil (NYSE:XOM), and UnitedHealth Group (NYSE:UNH). Invesco QQQ Trust (NASDAQ:QQQ) The Invesco QQQ Trust ETF, often referred to colloquially as "The Q's," is a massive $161 billion ETF that invests in the 100 largest non-financial companies in the Nasdaq.
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The Vanguard S&P 500's top holding is the largest stock in the S&P 500 by market cap, Apple (NASDAQ:AAPL), which accounts for 6% of the fund. Over the past 10 years, the Dow, S&P 500, and NASDAQ have gained 144%, 172%, and 272%, respectively. The Nasdaq is the index that is most closely associated with the technology sector, so it is unsurprising that most of QQQ's top holdings here are the same tech stocks that make up VOO’s top holdings.
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