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17300.0
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2023-02-02 00:00:00 UTC
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Democratic senator urges Apple, Google to kick TikTok out of app stores
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AAPL
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https://www.nasdaq.com/articles/democratic-senator-urges-apple-google-to-kick-tiktok-out-of-app-stores
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nan
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nan
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WASHINGTON, Feb 2 (Reuters) - TikTok, owned by China's ByteDance, should be removed from app stores run by Apple Inc AAPL.O and Alphabet's GOOGL.O Google because the short video social media app poses a risk to national security, Senator Michael Bennet, a Democrat on the intelligence committee, said in a letter dated Thursday.
The app, which Congress has already banned from federal government devices, has come under increasing criticism because of concern that China's government could use it to harvest data on Americans or advance Chinese interests.
"No company subject to CCP (Chinese Communist Party) dictates should have the power to accumulate such extensive data on the American people or curate content to nearly a third of our population," Bennet wrote in the letter to Alphabet Chief Executive Sundar Pichai and Apple CEO Tim Cook.
"Given these risks, I urge you to remove TikTok from your respective app stores immediately," he wrote.
Prior to Bennet's letter, Republicans have largely led the charge on TikTok and national security concerns, although Democratic Senator Dick Durbin previously urged Americans to stop using the app.
In the House, which is now in Republican hands, the Foreign Affairs Committee plans to hold a vote this month on a bill aimed at blocking TikTok's use in the United States, the committee confirmed.
In 2020, then-President Donald Trump attempted to block new users from downloading TikTok and ban other transactions that would have effectively prevented TikTok's use in the United States, but the move was rebuffed by the courts.
For its part, the company says China's government cannot access the personal data of U.S. citizens or manipulate the app's content.
TikTok Chief Executive Shou Zi Chew is due to appear before the U.S. House Energy and Commerce Committee in March.
(Reporting by Diane Bartz; Editing by Stephen Coates)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Feb 2 (Reuters) - TikTok, owned by China's ByteDance, should be removed from app stores run by Apple Inc AAPL.O and Alphabet's GOOGL.O Google because the short video social media app poses a risk to national security, Senator Michael Bennet, a Democrat on the intelligence committee, said in a letter dated Thursday. "No company subject to CCP (Chinese Communist Party) dictates should have the power to accumulate such extensive data on the American people or curate content to nearly a third of our population," Bennet wrote in the letter to Alphabet Chief Executive Sundar Pichai and Apple CEO Tim Cook. Prior to Bennet's letter, Republicans have largely led the charge on TikTok and national security concerns, although Democratic Senator Dick Durbin previously urged Americans to stop using the app.
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WASHINGTON, Feb 2 (Reuters) - TikTok, owned by China's ByteDance, should be removed from app stores run by Apple Inc AAPL.O and Alphabet's GOOGL.O Google because the short video social media app poses a risk to national security, Senator Michael Bennet, a Democrat on the intelligence committee, said in a letter dated Thursday. "No company subject to CCP (Chinese Communist Party) dictates should have the power to accumulate such extensive data on the American people or curate content to nearly a third of our population," Bennet wrote in the letter to Alphabet Chief Executive Sundar Pichai and Apple CEO Tim Cook. Prior to Bennet's letter, Republicans have largely led the charge on TikTok and national security concerns, although Democratic Senator Dick Durbin previously urged Americans to stop using the app.
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WASHINGTON, Feb 2 (Reuters) - TikTok, owned by China's ByteDance, should be removed from app stores run by Apple Inc AAPL.O and Alphabet's GOOGL.O Google because the short video social media app poses a risk to national security, Senator Michael Bennet, a Democrat on the intelligence committee, said in a letter dated Thursday. "No company subject to CCP (Chinese Communist Party) dictates should have the power to accumulate such extensive data on the American people or curate content to nearly a third of our population," Bennet wrote in the letter to Alphabet Chief Executive Sundar Pichai and Apple CEO Tim Cook. Prior to Bennet's letter, Republicans have largely led the charge on TikTok and national security concerns, although Democratic Senator Dick Durbin previously urged Americans to stop using the app.
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WASHINGTON, Feb 2 (Reuters) - TikTok, owned by China's ByteDance, should be removed from app stores run by Apple Inc AAPL.O and Alphabet's GOOGL.O Google because the short video social media app poses a risk to national security, Senator Michael Bennet, a Democrat on the intelligence committee, said in a letter dated Thursday. In the House, which is now in Republican hands, the Foreign Affairs Committee plans to hold a vote this month on a bill aimed at blocking TikTok's use in the United States, the committee confirmed. For its part, the company says China's government cannot access the personal data of U.S. citizens or manipulate the app's content.
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17301.0
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2023-02-02 00:00:00 UTC
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GLOBAL MARKETS-Fed up, BoE up, stocks up, ECB up next
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AAPL
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https://www.nasdaq.com/articles/global-markets-fed-up-boe-up-stocks-up-ecb-up-next
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nan
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nan
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By Marc Jones
LONDON, Feb 2 (Reuters) - Higher stock markets showed the bulls were still in charge on Thursday as the Bank of England followed the U.S. Federal Reserve in hiking interest rates, with the European Central Bank expected to do the same shortly.
Despite the ongoing harmony of hikes, traders were holding on to the view that after one of most rapid run of rate rises in history the heavyweights in the central banking ring were probably running out of punches.
Fed chair Jerome Powell's message that a "disinflationary" process was taking hold had kept both European shares and Wall Street pointing higher .N, and the dollar DXY. near a 10-month low. .EU/FRX
After Wednesday's 25 basis point Fed hike, the BoE's policymakers had raised Britain's by 50 basis points with a thumping 7-2 majority. The ECB was expected to do the same at 1315 GMT.
The usual pre-decision lull left the euro flat at just under $1.10, and while the pound was a still groggy 0.5% lower after the BoE raise, the parallel drop in bond market borrowing costs left the gap between U.S. and German 10-year yields DE10US10=RR at its smallest since September 2020. GVD/EUR
Dirk Schumacher, head of European macro research at Natixis, said that both the Fed and BoE were now effectively at the point of "fine tuning", whereas the ECB still had more ground to cover having started its hikes later.
"The questions is really how much there is to come," Schumacher said. "These are difficult waters and some guidance is what the markets are looking for."
Away from the central bank action, there was more drama in India as one of its biggest firms, Adani Group, was forced the axe a long-planned $2.5 billion stock offer in the wake of allegations, denied by the firm, of hidden debt and stock manipulation.
Its flagship firm Adani Enterprises ADEL.NS plunged 10% on Thursday, taking the wider group's overall losses since the scandal erupted to more than $100 billion.
Elsewhere, though, it did not derail the optimism that slowing, stopping and eventually lower interest rates in major economies will avoid a major economic slowdown.
MSCI's broadest index of global shares, which covers 47 countries was up 0.25 having just hit a near six-month high.
Nasdaq futures were up 1.3%, thanks to an additional boost of a $40 billion Meta META.Oshare buyback plan announced after-hours in the previous session, which was lifting tech stocks elsewhere.
Asia-Pacific shares .MIAP00000PUS where some of the biggest microchip makers and Chinese internet giants are listed closed up 0.2%.
That index is now up nearly 30% since October, helped heavily by China abandoning many of its COVID-19 restrictions.
BOE, ECB & EARNINGS
The Fed's 25 basis points interest rate increase on Wednesday came after a year of larger hikes. Though its statement said policymakers expected "ongoing increases" going forward traders leapt on Powell's "disinflationary" view. .N
Ali Hassan, portfolio manager and managing director at Thornburg Investment Management, said Powell had also seemingly shrugged off easing financial conditions as a concern in his news conference. "This was a green light that the market could buy without feeling that they are fighting the Fed."
Jamie Niven, a Senior Fund Manager at Candriam, said the BoE might now make only one more hike after its 10th in a row took UK rates to 4% or maybe even none if global growth splutters again.
Saxo Markets strategists said the ECB had surpassed its peers in hawkishness recently, and would likely repeat that shortly.
U.S. earnings season is in full swing too. Facebook owner Meta META.O was set to surge after its after-hours buyback news while internet giants Apple AAPL.O and Amazon AMZN.O are also due to report later.
In the currency market, the dollar buckled following Powell's remarks on Wednesday but was little changed at 101.50 =USD as U.S. trading started gathering momentum.
The euro EUR=EBS was in ECB wait mode at, the yen JPY=EBS was stalled at 128.97 per dollar, while sterling GBP=D3 was down below $1.23 having been above 1.24 earlier in the week.
In commodities, oil steadied, having climbed on the back the soft dollar, while gold XAU= added 0.2% to $1,953.44 an ounce, having touched a nine-month high of $1,957 per ounce earlier.
Brent LCOc1 was at $82.23, down 0.75% on the day, while West Texas Intermediate (WTI) U.S. crude CLc1 sat at $75.93 per barrel. O/R
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
The race to raise rateshttps://tmsnrt.rs/3JG2nW2
(Additional reporting by Ankur Banerjee in Singapre Editing by Mark Potter and Arun Koyyur)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Facebook owner Meta META.O was set to surge after its after-hours buyback news while internet giants Apple AAPL.O and Amazon AMZN.O are also due to report later. Fed chair Jerome Powell's message that a "disinflationary" process was taking hold had kept both European shares and Wall Street pointing higher .N, and the dollar DXY. GVD/EUR Dirk Schumacher, head of European macro research at Natixis, said that both the Fed and BoE were now effectively at the point of "fine tuning", whereas the ECB still had more ground to cover having started its hikes later.
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Facebook owner Meta META.O was set to surge after its after-hours buyback news while internet giants Apple AAPL.O and Amazon AMZN.O are also due to report later. By Marc Jones LONDON, Feb 2 (Reuters) - Higher stock markets showed the bulls were still in charge on Thursday as the Bank of England followed the U.S. Federal Reserve in hiking interest rates, with the European Central Bank expected to do the same shortly. .EU/FRX After Wednesday's 25 basis point Fed hike, the BoE's policymakers had raised Britain's by 50 basis points with a thumping 7-2 majority.
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Facebook owner Meta META.O was set to surge after its after-hours buyback news while internet giants Apple AAPL.O and Amazon AMZN.O are also due to report later. By Marc Jones LONDON, Feb 2 (Reuters) - Higher stock markets showed the bulls were still in charge on Thursday as the Bank of England followed the U.S. Federal Reserve in hiking interest rates, with the European Central Bank expected to do the same shortly. GVD/EUR Dirk Schumacher, head of European macro research at Natixis, said that both the Fed and BoE were now effectively at the point of "fine tuning", whereas the ECB still had more ground to cover having started its hikes later.
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Facebook owner Meta META.O was set to surge after its after-hours buyback news while internet giants Apple AAPL.O and Amazon AMZN.O are also due to report later. .EU/FRX After Wednesday's 25 basis point Fed hike, the BoE's policymakers had raised Britain's by 50 basis points with a thumping 7-2 majority. GVD/EUR Dirk Schumacher, head of European macro research at Natixis, said that both the Fed and BoE were now effectively at the point of "fine tuning", whereas the ECB still had more ground to cover having started its hikes later.
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17302.0
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2023-02-01 00:00:00 UTC
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GLOBAL MARKETS-Stocks rise, dollar falls after Fed hikes as expected
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-rise-dollar-falls-after-fed-hikes-as-expected
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rose and the U.S. dollar and Treasury yields were lower on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but communicated more increases were on the horizon.
The Fed said the U.S. economy was enjoying "modest growth" and "robust" job gains, with policymakers still "highly attentive to inflation risks" as it seeks to tighten financial conditions and reign in high prices. Markets have been pricing in the possibility of a rate cut by the Fed in the back half of the year.
On Wall Street, U.S. stocks were choppy after the Fed announcement but rebounded to turn positive as Chair Jerome Powell began to speak.
"The key thing the Fed is focused on is wages and we are seeing wage inflation continue to ameliorate if you look at both average hourly earnings and the employment cost index which just came out, wages are beginning to soften, but they are not softening enough to get inflation down to that 2% target," said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management in Wellesley, Massachusetts.
"They had a very slightly dovish change in the language where they previously had talked about determining the pace of future increases and now they are talking about determining the extent of future increases."
Investors will now closely eye comments from Fed Chair Powell for further signals on the path of the central bank's policy.
The Dow Jones Industrial Average .DJI fell 5.45 points, or 0.02%, to 34,080.59, the S&P 500 .SPX gained 30.83 points, or 0.76%, to 4,107.43 and the Nasdaq Composite .IXIC added 173.22 points, or 1.5%, to 11,757.77.
Before the policy announcement, economic data painted a mixed picture, with a labor market that remains strong while manufacturing activity continues to weaken, showing contraction for a third straight month.
Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation.
Earnings season also continues to roll on, with Facebook owner Meta META.O reporting earnings after the closing bell on Wednesday. Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O.
Early gains for European shares faded to close virtually unchanged ahead of the Fed statement, although industrial stocks SXNP, up 0.85%, were a bright spot. On the heels of the Fed, the European Central Bank (ECB) and Bank of England will make their policy statements on Thursday, in which each is largely expected to hike by 50 basis points.
The pan-European STOXX 600 index .STOXX closed down 0.03% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.81%.
Data on Wednesday showed headline inflation in the euro zone moderated to 8.5% in January, from 9% in December, while core prices picked up to 7% from 6.9%, likely keeping pressure on the ECB to raise interest rates aggressively.
The dollar started February on a lower note, continuing its weakening trajectory of the previous four months. The dollar index =USD fell 0.823%, with the euro EUR= up 0.99% to $1.097.
The Japanese yen strengthened 0.94% versus the greenback at 128.89 per dollar, while Sterling GBP= was last trading at $1.2378, up 0.47% on the day.
U.S. Treasury yields moved up after the statement but were still lower on the day, as benchmark 10-year notes US10YT=RR were down 11.6 basis points to 3.413%, from 3.529% late on Tuesday, although the two-year yield briefly turned higher after the most recent batch of economic data.
U.S. crude CLc1 recently fell 2.93% to $76.56 per barrel and Brent LCOc1 was at $82.91, down 2.98% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis and Diane Craft)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rose and the U.S. dollar and Treasury yields were lower on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but communicated more increases were on the horizon. Before the policy announcement, economic data painted a mixed picture, with a labor market that remains strong while manufacturing activity continues to weaken, showing contraction for a third straight month.
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Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rose and the U.S. dollar and Treasury yields were lower on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but communicated more increases were on the horizon. On the heels of the Fed, the European Central Bank (ECB) and Bank of England will make their policy statements on Thursday, in which each is largely expected to hike by 50 basis points.
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Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rose and the U.S. dollar and Treasury yields were lower on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but communicated more increases were on the horizon. "The key thing the Fed is focused on is wages and we are seeing wage inflation continue to ameliorate if you look at both average hourly earnings and the employment cost index which just came out, wages are beginning to soften, but they are not softening enough to get inflation down to that 2% target," said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management in Wellesley, Massachusetts.
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Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rose and the U.S. dollar and Treasury yields were lower on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but communicated more increases were on the horizon. Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation.
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17303.0
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2023-02-01 00:00:00 UTC
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GLOBAL MARKETS-Stocks dip, dollar falls as Fed decision looms
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-dip-dollar-falls-as-fed-decision-looms
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Feb 1 (Reuters) - A gauge of global stocks dipped on Wednesday while the U.S. dollar and Treasury yields fell after economic data showed signs of a softening labor market and boosted hopes a pause to the Federal Reserve's interest rate-hiking cycle could be on the horizon.
U.S. private employment increased by 106,000 jobs last month, the ADP National Employment report showed on Wednesday, short of the 178,000 estimate of economists polled by Reuters, although the drop was attributed to bad weather in some parts of the country.
Other data showed that job openings rose to 11.012 million in December from 10.44 million in the prior month, suggesting the labor market remains strong.
Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation.
The data comes ahead of the Fed's policy announcement scheduled for 2 p.m. EST (1900 GMT) in which the central bank is largely expected to raise its target interest rate by 25 basis points (bps) but keep a hawkish tone as it seeks to tighten financial conditions. Markets have been pricing in the possibility of a rate cut by the Fed in the back half of the year.
"The market has been easing financial conditions, which has got to be concerning to (the Fed); there is no question about it and that is going to be tricky for them to talk down, so they are going to have to come out with some new and different ways to retain optionality and keep financial conditions tight, if not try to tighten them more from here," said Jake Remley, senior portfolio Manager at Income Research + Management in Boston.
"This idea they are going to start cutting the rate later this year, they reiterated over and over again they are not going to do that, but the market continues to think this dovish pivot is closer to at the money than they are trying to make it out to be."
On Wall Street, U.S. stocks fell in early trading ahead of the Fed announcement, with each of the 11 major S&P sectors lower, led by a 1.53% decline in energy shares.
The Dow Jones Industrial Average .DJI fell 320.49 points, or 0.94%, to 33,765.55, the S&P 500 .SPX lost 19.66 points, or 0.48%, to 4,056.94 and the Nasdaq Composite .IXIC dropped 53.64 points, or 0.46%, to 11,530.91.
The Institute for Supply Management (ISM) said that its manufacturing PMI dropped to 47.4 last month from 48.4 in December, showing further contraction as higher rates dented demand for goods, although large layoffs among factory workers had not materialized.
Earnings season also continues to roll on, with Facebook owner Meta META.O reporting earnings after the closing bell on Wednesday. Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O.
European shares were slightly higher, aided by a 0.64% gain in industrial stocks SXNP. After the Fed announcement, the European Central Bank (ECB) and Bank of England will make their policy statements on Thursday, in which each is largely expected to hike by 50 basis points.
The pan-European STOXX 600 index .STOXX lost 0.17% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.08%.
Data on Wednesday showed headline inflation in the euro zone moderated to 8.5% in January, from 9% in December, while core prices picked up to 7% from 6.9%, likely keeping pressure on the ECB to raise interest rates aggressively.
The dollar started February on a lower note, continuing its weakening trajectory of the previous four months. The dollar index =USD fell 0.421%, while the euro EUR= was up 0.52% against the U.S. currency at $1.0918.
The Japanese yen JPY= strengthened 0.64% versus the greenback at 129.27 per dollar, while Sterling GBP= was last trading at $1.2322, up 0.02% on the day.
Longer-dated U.S. Treasury yields also declined, as benchmark 10-year notes US10YT=RR were down 2.4 basis points to 3.505%, from 3.529% late on Tuesday, although the two-year yield briefly turned higher after the most recent batch of economic data.
U.S. crude CLc1 recently fell 0.6% to $78.40 per barrel and Brent LCOc1 was at $84.72, down 0.87% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks dipped on Wednesday while the U.S. dollar and Treasury yields fell after economic data showed signs of a softening labor market and boosted hopes a pause to the Federal Reserve's interest rate-hiking cycle could be on the horizon. The data comes ahead of the Fed's policy announcement scheduled for 2 p.m. EST (1900 GMT) in which the central bank is largely expected to raise its target interest rate by 25 basis points (bps) but keep a hawkish tone as it seeks to tighten financial conditions.
|
Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks dipped on Wednesday while the U.S. dollar and Treasury yields fell after economic data showed signs of a softening labor market and boosted hopes a pause to the Federal Reserve's interest rate-hiking cycle could be on the horizon. The data comes ahead of the Fed's policy announcement scheduled for 2 p.m. EST (1900 GMT) in which the central bank is largely expected to raise its target interest rate by 25 basis points (bps) but keep a hawkish tone as it seeks to tighten financial conditions.
|
Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks dipped on Wednesday while the U.S. dollar and Treasury yields fell after economic data showed signs of a softening labor market and boosted hopes a pause to the Federal Reserve's interest rate-hiking cycle could be on the horizon. The data comes ahead of the Fed's policy announcement scheduled for 2 p.m. EST (1900 GMT) in which the central bank is largely expected to raise its target interest rate by 25 basis points (bps) but keep a hawkish tone as it seeks to tighten financial conditions.
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Later in the week will bring earnings from names such as Apple AAPL.O and Amazon .AMZN.O. Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation. The data comes ahead of the Fed's policy announcement scheduled for 2 p.m. EST (1900 GMT) in which the central bank is largely expected to raise its target interest rate by 25 basis points (bps) but keep a hawkish tone as it seeks to tighten financial conditions.
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17304.0
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2023-02-01 00:00:00 UTC
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PREVIEW-Apple set to post rare revenue drop as focus shifts to demand rebound
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AAPL
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https://www.nasdaq.com/articles/preview-apple-set-to-post-rare-revenue-drop-as-focus-shifts-to-demand-rebound
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nan
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nan
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By Nivedita Balu and Akash Sriram
Feb 1 (Reuters) - Apple Inc AAPL.O is expected to report its first decline in quarterly revenue in nearly four years after strict COVID-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn 2317.TW.
Investors will look for details on how Chief Executive Tim Cook is trying to bolster demand in a weak economy that has prompted mass layoffs in the tech industry, a move Apple has so far avoided thanks to frugal hiring during the pandemic.
"With supply chain challenges largely normalized, we now believe Apple is entering a period of slower demand due to macro factors," said Cowen analyst Krish Sankar, adding that he expects 2% fewer iPhone units to be sold in 2023.
The world's biggest public company is expected to report on Thursday that iPhone sales fell about 5% for the all-important holiday quarter, according to Refinitiv. The last time iPhone sales slipped was in the August-October period in 2020, months into the COVID-19 pandemic.
UBS analysts expect iPhone sales to have held up better in the United States than China and Europe, as the economies reeled from the impact of COVID-19 and the Russia-Ukraine war.
Some demand for the iPhone will likely be pushed into the current quarter after supply restrictions in the first quarter and some demand lost due to lack of product availability in the holiday period, BofA analyst Wamsi Mohan said.
The services business, a key growth engine for the company and home to Apple's music and video streaming services, is set to post its lowest revenue growth for the holiday quarter - another fallout of consumers limiting spending.
THE CONTEXT
The disruption at the world's biggest iPhone plant in Zhengzhou, China triggered a rare warning from Apple in November and limited stocks of its higher-end iPhone 14 models during what is typically its biggest sales quarter, powered by product launches and the holidays.
Greater China, including Hong Kong, is key to Apple's fortunes, contributing roughly a fifth to annual revenue. The Cupertino, California-based tech behemoth had in 2019 pared its total sales forecast due to an economic slowdown in the country following the Sino-U.S. trade war.
Analysts, however, expect a much-faster recovery this time as factories have restarted in China and Apple diversifies its production footprint with plants in India.
"Commentary from luxury goods companies indicates China is rebounding quickly, which implies Mar-qtr Chinese iPhone sales should be better than expected," Evercore ISI analysts said in a note.
FUNDAMENTALS
** Revenue estimated to have fallen 2% in the last three months of 2022, Apple's first fiscal quarter.
** IPhone sales likely fell for first time since 2020, while services business rose 6%.
** Analysts expect net income to have dropped 10.4%; earnings per share of $1.94
** Apple's shares fell about 27% in 2022 and have gained nearly 10% in January
WALL STREET SENTIMENT
** Since October, analysts have lowered some forecasts on Apple for the first quarter
Metric
Estimate in Oct.
Latest estimate
Earnings per share
$2.13
$1.94
Revenue
$127.88 billion
$121.20 billion
Gross Margin
42.80%
42.95%
iPhone revenue
$73.07 billion
$68.29 billion
Mac revenue
$10.28 billion
$9.63 billion
Services revenue
$21.95 billion
$20.67 billion
Free cash flow
$41.50 billion
$32.7 billion
Apple's revenue is set to fall for the first time in nearly 4 years Apple's revenue is set to fall for the first time in nearly 4 yearshttps://tmsnrt.rs/3WV91uD
Apple's iPhone revenue set to fall for the first time since the pandemic Apple's iPhone revenue set to fall for the first time since the pandemichttps://tmsnrt.rs/3WT1LiP
(Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Sriraj Kalluvila)
((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))
The views and 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 Nivedita Balu and Akash Sriram Feb 1 (Reuters) - Apple Inc AAPL.O is expected to report its first decline in quarterly revenue in nearly four years after strict COVID-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn 2317.TW. Investors will look for details on how Chief Executive Tim Cook is trying to bolster demand in a weak economy that has prompted mass layoffs in the tech industry, a move Apple has so far avoided thanks to frugal hiring during the pandemic. "With supply chain challenges largely normalized, we now believe Apple is entering a period of slower demand due to macro factors," said Cowen analyst Krish Sankar, adding that he expects 2% fewer iPhone units to be sold in 2023.
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By Nivedita Balu and Akash Sriram Feb 1 (Reuters) - Apple Inc AAPL.O is expected to report its first decline in quarterly revenue in nearly four years after strict COVID-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn 2317.TW. The world's biggest public company is expected to report on Thursday that iPhone sales fell about 5% for the all-important holiday quarter, according to Refinitiv. UBS analysts expect iPhone sales to have held up better in the United States than China and Europe, as the economies reeled from the impact of COVID-19 and the Russia-Ukraine war.
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By Nivedita Balu and Akash Sriram Feb 1 (Reuters) - Apple Inc AAPL.O is expected to report its first decline in quarterly revenue in nearly four years after strict COVID-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn 2317.TW. The disruption at the world's biggest iPhone plant in Zhengzhou, China triggered a rare warning from Apple in November and limited stocks of its higher-end iPhone 14 models during what is typically its biggest sales quarter, powered by product launches and the holidays. ** Since October, analysts have lowered some forecasts on Apple for the first quarter Metric Estimate in Oct. Latest estimate Earnings per share $2.13 $1.94 Revenue $127.88 billion $121.20 billion Gross Margin 42.80% 42.95% iPhone revenue $73.07 billion $68.29 billion Mac revenue $10.28 billion $9.63 billion Services revenue $21.95 billion $20.67 billion Free cash flow $41.50 billion $32.7 billion Apple's revenue is set to fall for the first time in nearly 4 years Apple's revenue is set to fall for the first time in nearly 4 yearshttps://tmsnrt.rs/3WV91uD Apple's iPhone revenue set to fall for the first time since the pandemic Apple's iPhone revenue set to fall for the first time since the pandemichttps://tmsnrt.rs/3WT1LiP (Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Sriraj Kalluvila) ((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;)) The views and 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 Nivedita Balu and Akash Sriram Feb 1 (Reuters) - Apple Inc AAPL.O is expected to report its first decline in quarterly revenue in nearly four years after strict COVID-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn 2317.TW. Investors will look for details on how Chief Executive Tim Cook is trying to bolster demand in a weak economy that has prompted mass layoffs in the tech industry, a move Apple has so far avoided thanks to frugal hiring during the pandemic. The world's biggest public company is expected to report on Thursday that iPhone sales fell about 5% for the all-important holiday quarter, according to Refinitiv.
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17305.0
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2023-02-01 00:00:00 UTC
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Samsung's newest Galaxy S smartphones a test of brand power in weak market
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AAPL
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https://www.nasdaq.com/articles/samsungs-newest-galaxy-s-smartphones-a-test-of-brand-power-in-weak-market
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nan
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nan
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By Joyce Lee
SEOUL, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction.
The Galaxy S23 smartphone series has better cameras and faster chips than its predecessor, but analysts said early sales would face weak demand as consumers spent less on discretionary goods amid surging inflation.
The top-line S23 Ultra has Samsung's first-ever 200-megapixel camera sensor, offering clearer photos after enlargement, and the series has adopted Qualcomm's QCOM.O Snapdragon 8 Gen 2 mobile processor, which is faster than chips used in the S22.
The S23 is the first Samsung phone to use Nvidia's NVDA.O GeForce RTX 4070 graphics card for games with heavy processor demands and for live-streaming playability. Many consumers judge a phone's quality based on those functions.
Samsung is working with companies such as Epic Games to optimise gaming experience on the phone.
In the United States, the base Galaxy S23 will be priced from $799 and two higher-specification versions, the S23 Plus and S23 Ultra, from $999 and $1,199, respectively. Samsung kept the prices at the same level as for last year's model despite rises in component costs.
But global smartphone shipments showed the largest-ever decline in a single quarter in the October-December period, when they were down 18.3% on a year earlier at 300.3 million units, according to data issued by research firm IDC last month. The figures cast doubt on forecasts for modest recovery in the market for mobiles this year.
In that tough environment, analysts said Samsung's mobile strategy would centre on profitability through premium offerings, including the S series and foldables.
"Samsung can't afford to focus on expanding volume anymore," said Liz Lee, associate director at research firm Counterpoint.
"It must boldly simplify low- and mid-range products, the parts of the market where Chinese competitors have caught up a lot."
Samsung said on Tuesday that a decline in low- and mid-range smartphone sales in the fourth quarter had been greater than expected.
With the launch of the S23, the company is also improving interconnectivity of its devices to lock customers into using Samsung products rather than deserting to devices from Apple AAPL.O and other rivals. Analysts say Samsung has far to go in interconnectivity, however.
The company said that, in an industry first, the mouse cursor of its recent Galaxy Book laptop could move directly into a Samsung phone screen to click on things. Users would have to upgrade their phone's software to use that feature, it said.
(Reporting by Joyce Lee; Editing by Bradley Perrett)
((joyce.lee@tr.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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With the launch of the S23, the company is also improving interconnectivity of its devices to lock customers into using Samsung products rather than deserting to devices from Apple AAPL.O and other rivals. By Joyce Lee SEOUL, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction. The Galaxy S23 smartphone series has better cameras and faster chips than its predecessor, but analysts said early sales would face weak demand as consumers spent less on discretionary goods amid surging inflation.
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With the launch of the S23, the company is also improving interconnectivity of its devices to lock customers into using Samsung products rather than deserting to devices from Apple AAPL.O and other rivals. The Galaxy S23 smartphone series has better cameras and faster chips than its predecessor, but analysts said early sales would face weak demand as consumers spent less on discretionary goods amid surging inflation. The top-line S23 Ultra has Samsung's first-ever 200-megapixel camera sensor, offering clearer photos after enlargement, and the series has adopted Qualcomm's QCOM.O Snapdragon 8 Gen 2 mobile processor, which is faster than chips used in the S22.
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With the launch of the S23, the company is also improving interconnectivity of its devices to lock customers into using Samsung products rather than deserting to devices from Apple AAPL.O and other rivals. By Joyce Lee SEOUL, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction. The top-line S23 Ultra has Samsung's first-ever 200-megapixel camera sensor, offering clearer photos after enlargement, and the series has adopted Qualcomm's QCOM.O Snapdragon 8 Gen 2 mobile processor, which is faster than chips used in the S22.
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With the launch of the S23, the company is also improving interconnectivity of its devices to lock customers into using Samsung products rather than deserting to devices from Apple AAPL.O and other rivals. In the United States, the base Galaxy S23 will be priced from $799 and two higher-specification versions, the S23 Plus and S23 Ultra, from $999 and $1,199, respectively. Samsung said on Tuesday that a decline in low- and mid-range smartphone sales in the fourth quarter had been greater than expected.
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17306.0
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2023-02-01 00:00:00 UTC
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Will Slowing Services Growth Hurt Apple's (AAPL) Q1 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-slowing-services-growth-hurt-apples-aapl-q1-earnings
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nan
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nan
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Apple’s AAPL first-quarter fiscal 2023 results, to be reported on Feb 2, are expected to reflect the impacts of the sluggishness in the Services business.
The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 21.3% of sales in fourth-quarter fiscal 2022.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow.
Apple currently has more than 900 million paid subscribers across its Services portfolio. The App Store has been continuing to draw the attention of prominent developers from around the world, helping the company offer appealing apps to drive the App Store traffic, thereby expanding the subscriber base.
Apple expects Services revenue growth to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Services revenues grew 5% year over year to $19.19 billion in the fiscal fourth quarter.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
Click here to know how Apple’s overall fiscal first-quarter results are likely to be.
Apple’s Non-iPhone Portfolio to Boost Revenues
Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have aided its top-line growth in the fiscal first quarter.
However, Mac revenues are expected to be negatively impacted by forex. Apple, which has a Zacks Rank #3 (Hold), expects Mac revenues to decline substantially year over year in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per Gartner’s latest report, 65.3 million PCs were shipped in the fourth quarter (December-end) of 2022, down 28.5% from the year-ago period. Lenovo LNVGY, HP HPQ and Dell Technologies DELL witnessed 28.6%, 29.1% and 37% declines, respectively. Apple witnessed a 10.2% decline, much better than HP and Dell’s figures.
Overall, Lenovo remained the top vendor, with a market share of 24%. HP holds the second spot, with a market share of 20.2% in worldwide PC shipments. Dell’s market share was 16.7% in fourth-quarter 2022.
Apple’s market share increased from 8.6% in fourth-quarter 2021 to 10.7% in fourth-quarter 2022.
Apple made the M2-supported MacBook Air available in the fiscal fourth quarter. The 13-inch MacBook Pro was launched in the fiscal third quarter.
In the to-be-reported quarter, Apple expanded its self-service repair program for MacBook Air and MacBook Pro notebooks with the M1 family of chips.
The Zacks Consensus Estimate for Mac revenues for the fiscal first quarter is pegged at $9.74 billion, implying a 10.2% decline from the figure reported in the year-ago quarter.
Apple has also been riding on its strong market share in the wearables space. The company’s endeavor to add healthcare features to its smartwatch has been a game changer for the device, which faces significant competition from the likes of Google, Xiaomi, Samsung Electronics and Huawei Technologies.
The consensus estimate for Wearables, Home and Accessories revenues is pegged at $15.53 billion, indicating 5.6% growth from the figure reported in the year-ago quarter.
Moreover, iPad sales are expected to increase in the to-be-reported quarter. The Zacks Consensus Estimate for the same is pegged at $7.70 billion, suggesting a 6.2% rise from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s AAPL first-quarter fiscal 2023 results, to be reported on Feb 2, are expected to reflect the impacts of the sluggishness in the Services business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple expects Services revenue growth to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL first-quarter fiscal 2023 results, to be reported on Feb 2, are expected to reflect the impacts of the sluggishness in the Services business. Lenovo LNVGY, HP HPQ and Dell Technologies DELL witnessed 28.6%, 29.1% and 37% declines, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL first-quarter fiscal 2023 results, to be reported on Feb 2, are expected to reflect the impacts of the sluggishness in the Services business. The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 21.3% of sales in fourth-quarter fiscal 2022.
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Apple’s AAPL first-quarter fiscal 2023 results, to be reported on Feb 2, are expected to reflect the impacts of the sluggishness in the Services business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Services revenues grew 5% year over year to $19.19 billion in the fiscal fourth quarter.
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17307.0
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2023-02-01 00:00:00 UTC
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MORNING BID-Markets go all in for disinflation
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AAPL
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https://www.nasdaq.com/articles/morning-bid-markets-go-all-in-for-disinflation
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nan
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nan
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By Wayne Cole
SYDNEY, Feb 2 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole.
Push back? What push back? The main theme ahead of the Fed announcement was that Chair Jerome Powell would definitely, totally, absolutely push back against the recent rapid easing in market conditions given inflation was still sky high.
Instead, Powell seemed to go out of his way to do the opposite. The very first question in the new conference invited him to scold markets, and he notes conditions had tightened a lot last year.
Given another opportunity, he says he's "not particularly concerned" about market pricing, and later "I'm not going to try to persuade people that have a different forecast" on inflation and policy.
Yes there were caveats about it being too early to declare victory and policy will need to be more restrictive. But even then he was blase about another "couple of hikes", and spent more time trying out his new favourite word "disinflation".
A pdf search of the conference shows disinflation or disinflationary was used 13 times, compared to twice at his December event. For sure, service inflation had yet to turn the corner, but he expected to see that "fairly soon."
For markets, this is like stealing the last cookie in the cookie jar, getting caught red handed, and, instead of a good spanking, you get another cookie, with chocolate on.
So of course Treasuries rallied, with 10s down 9bp and 2s 10bp in the wake of the conference and a bit more in Asia. Next targets are the Jan lows at 3.321% and 4.04%.
Fed funds partied by pricing in more rate cuts with Fed funds seen at 4.40% by end 2023 and 3.0% by the close of 2024.
The euro jumped to a 10-month peak of $1.1034 and could go further if ECB chief Christine Lagarde sounds as hawkish as everyone seems to expect after today's policy meeting.
The market is almost fully priced for a hike of 50bp and the promise of more to come, though it was notable that Euribor rallied overnight to imply deeper cuts next year.
The ECB is also set to reveal how exactly it plans to reduce the multi-trillion euro stock of bonds on its balance sheet.
Across the Channel, the Bank of England is also seen hiking 50bp today, though with some outside risk of 25bp.
The following media conference by Governor Andrew Bailey and colleagues is likely to be a tough one, assuming they can even get to it given all the strikes.
The IMF, and many others, are predicting recession but inflation is at 10.5% and wage growth running red hot - good luck squaring that circle.
For Wall Street, it's a massive earnings day and Meta helped overnight by announcing a $40 billion buy-back that sent its shares up 18%.
Healthcare companies BristolMeyers-Squibb Co BMY.N, Eli Lilly and Co LLY.N and Merck & Co MRK.N are due to report before trading commences on Wall Street.
The heavy-hitting trifecta of Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet Inc GOOGL.O are after the bell.
Key developments that could influence markets on Thursday:
- BoE rate decision is at 1200 GMT and the ECB at 1315 GMT. BoE Gov Bailey speaks to reporters at 1230 GMT and ECB President Lagarde at 1345 GMT.
The race to raise rateshttps://tmsnrt.rs/3JG2nW2
Fed rate cuts: not so fast?https://tmsnrt.rs/3HMayio
(Reporting by Wayne Cole; Editing by Stephen Coates)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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 heavy-hitting trifecta of Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet Inc GOOGL.O are after the bell. The main theme ahead of the Fed announcement was that Chair Jerome Powell would definitely, totally, absolutely push back against the recent rapid easing in market conditions given inflation was still sky high. The market is almost fully priced for a hike of 50bp and the promise of more to come, though it was notable that Euribor rallied overnight to imply deeper cuts next year.
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The heavy-hitting trifecta of Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet Inc GOOGL.O are after the bell. Fed funds partied by pricing in more rate cuts with Fed funds seen at 4.40% by end 2023 and 3.0% by the close of 2024. BoE Gov Bailey speaks to reporters at 1230 GMT and ECB President Lagarde at 1345 GMT.
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The heavy-hitting trifecta of Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet Inc GOOGL.O are after the bell. The main theme ahead of the Fed announcement was that Chair Jerome Powell would definitely, totally, absolutely push back against the recent rapid easing in market conditions given inflation was still sky high. Key developments that could influence markets on Thursday: - BoE rate decision is at 1200 GMT and the ECB at 1315 GMT.
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The heavy-hitting trifecta of Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet Inc GOOGL.O are after the bell. The main theme ahead of the Fed announcement was that Chair Jerome Powell would definitely, totally, absolutely push back against the recent rapid easing in market conditions given inflation was still sky high. The euro jumped to a 10-month peak of $1.1034 and could go further if ECB chief Christine Lagarde sounds as hawkish as everyone seems to expect after today's policy meeting.
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17308.0
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2023-02-01 00:00:00 UTC
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Samsung's newest Galaxy S smartphones a test of brand power in weak market
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AAPL
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https://www.nasdaq.com/articles/samsungs-newest-galaxy-s-smartphones-a-test-of-brand-power-in-weak-market-0
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nan
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nan
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By Joyce Lee and Jane Lanhee Lee
SEOUL/SAN FRANCISCO, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones with a focus on their powerful cameras on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction.
Analysts said the Galaxy S23 smartphone series, with its cameras and faster chips than its predecessor, could still face weak demand as consumers spend less amid surging inflation in a struggling global economy.
The smartphone maker showed off the S23 Ultra's performance at the Samsung Unpacked event in San Francisco with snippets of two films, "Behold" by Ridley Scott, director of "Gladiator" and "The Martian," and "Faith" by South Korean director Na Hong-jin both filmed using the top-line Galaxy smartphone.
It is Samsung's first-ever 200-megapixel camera sensor, and the series uses Qualcomm Inc's QCOM.O Snapdragon 8 Gen 2 mobile processor. Qualcomm said that with the S23 series, 100% of the processors use the Qualcomm chip.
At the event, executives from Samsung, Qualcomm and Alphabet Inc's GOOGL.O Google gathered on the stage to highlight their partnership in the XR space, which includes virtual and augmented reality.
Anshel Sag, an analyst at Moor Insights & Strategy, said the three have worked together since about a decade ago, but the reboot to partner in the XR space comes as Apple Inc AAPL.O is expected to launch its mixed reality headset this year.
"I think it's designed to give both Samsung and Google a little bit more credibility in the XR space, because they both have been pretty absent on the hardware side for quite some time," said Sag.
In the United States, the base Galaxy S23 will be priced from $799 and two higher-specification versions, the S23 Plus and S23 Ultra, from $999 and $1,199, respectively. Samsung kept the prices at the same level as for last year's model despite rises in component costs.
However, global smartphone shipments showed the largest-ever decline in a single quarter in the October-December period, when they were down 18.3% on a year earlier at 300.3 million units, according to data issued by research firm IDC last month. The figures cast doubt on forecasts for a modest recovery in the market for mobiles this year.
In that tough environment, analysts said Samsung's mobile strategy would center on profitability through premium offerings, including the S series and foldables.
"Samsung can't afford to focus on expanding volume anymore," said Liz Lee, associate director at research firm Counterpoint.
"It must boldly simplify low- and mid-range products, the parts of the market where Chinese competitors have caught up a lot."
Samsung said on Tuesday that a decline in low- and mid-range smartphone sales in the fourth quarter had been greater than expected.
(Reporting by Joyce Lee; Editing by Bradley Perrett and Jonathan Oatis)
((joyce.lee@tr.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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Anshel Sag, an analyst at Moor Insights & Strategy, said the three have worked together since about a decade ago, but the reboot to partner in the XR space comes as Apple Inc AAPL.O is expected to launch its mixed reality headset this year. Analysts said the Galaxy S23 smartphone series, with its cameras and faster chips than its predecessor, could still face weak demand as consumers spend less amid surging inflation in a struggling global economy. However, global smartphone shipments showed the largest-ever decline in a single quarter in the October-December period, when they were down 18.3% on a year earlier at 300.3 million units, according to data issued by research firm IDC last month.
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Anshel Sag, an analyst at Moor Insights & Strategy, said the three have worked together since about a decade ago, but the reboot to partner in the XR space comes as Apple Inc AAPL.O is expected to launch its mixed reality headset this year. By Joyce Lee and Jane Lanhee Lee SEOUL/SAN FRANCISCO, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones with a focus on their powerful cameras on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction. Analysts said the Galaxy S23 smartphone series, with its cameras and faster chips than its predecessor, could still face weak demand as consumers spend less amid surging inflation in a struggling global economy.
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Anshel Sag, an analyst at Moor Insights & Strategy, said the three have worked together since about a decade ago, but the reboot to partner in the XR space comes as Apple Inc AAPL.O is expected to launch its mixed reality headset this year. By Joyce Lee and Jane Lanhee Lee SEOUL/SAN FRANCISCO, Feb 1 (Reuters) - Samsung Electronics 005930.KS unveiled its latest premium smartphones with a focus on their powerful cameras on Wednesday, in a test of its brand power as the market for mobiles undergoes unprecedented contraction. The smartphone maker showed off the S23 Ultra's performance at the Samsung Unpacked event in San Francisco with snippets of two films, "Behold" by Ridley Scott, director of "Gladiator" and "The Martian," and "Faith" by South Korean director Na Hong-jin both filmed using the top-line Galaxy smartphone.
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Anshel Sag, an analyst at Moor Insights & Strategy, said the three have worked together since about a decade ago, but the reboot to partner in the XR space comes as Apple Inc AAPL.O is expected to launch its mixed reality headset this year. Qualcomm said that with the S23 series, 100% of the processors use the Qualcomm chip. At the event, executives from Samsung, Qualcomm and Alphabet Inc's GOOGL.O Google gathered on the stage to highlight their partnership in the XR space, which includes virtual and augmented reality.
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17309.0
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2023-02-01 00:00:00 UTC
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META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow
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AAPL
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https://www.nasdaq.com/articles/meta-aapl-amzn-predictions%3A-3-hot-stocks-for-tomorrow
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We all know what the focus is on Wednesday: The Fed. The Federal Reserve is forecast to raise interest rates by 25 basis points today and the action has been well-telegraphed by the Fed in recent weeks. However, it’s a busy week and that has us looking at some hot stocks for tomorrow.
On Thursday, we’ll hear from a number of big tech companies. Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) will all report earnings after the close.
Tomorrow we’ll also get interest rate decisions from the Bank of England and the European Central Bank.
So what are the other hot stocks for tomorrow — Thursday? Let’s look.
Hot Stocks for Tomorrow: Meta (META)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Alongside some of the big tech earnings this week, Meta (NASDAQ:META) will actually get the ball rolling on Wednesday evening. What does that mean for investors?
Well, after navigating a day likely filled with Fed-induced volatility, investors will have to gear up for earnings. We didn’t hear good things from Snap (NYSE:SNAP) and Match Group (NASDAQ:MTCH), but will Meta be any different?
The stock has enjoyed a nice rally lately but has struggled tremendously over the last 18 months. A rapid increase in spending (for metaverse-related infrastructure) combined with a decline in digital ad spend has pinched the company’s top and bottom lines.
Shares have now rallied for three straight months and are currently 67% off the 52-week low. At the low, META stock was down 77% from its all-time high. While 16 times this year’s earnings may seem cheap, earnings came down a lot this year and are forecast to fall again in 2023.
The Chart: Meta stock has had a nice run lately, but recently ran into the declining 200-day moving average. On a bullish reaction, the stock needs to clear $155, opening the door to $160 and $167, respectively. On the downside, bulls want to see META stock hold a pullback to the $137 area.
Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
As previously mentioned, most of Big Tech will report earnings on Thursday evening. While this group has been under pressure over the past year, the trio of Apple, Amazon and Alphabet still weigh in with a combined market capitalization of $4.58 trillion.
To say this group could be market-moving is an understatement — particularly if they all move in unison. For what it’s worth, the market has been rather forgiving thus far when it comes to lackluster or mediocre reports. Seeing how the market treats Meta tonight may give a clue on how they’ll treat the others on Thursday.
The biggest of the three and arguably the most closely followed among investors is Apple.
Bulls argue that the company’s robust balance sheet, high-margin Services unit and holiday quarter will be enough for the company to power higher on earnings. Plus, there’s been no negative pre-announcement.
Bears will argue that supply chain headaches and lower iPhone demand will weigh on the quarter and impact management’s outlook. We’ll find out soon enough who will be right.
The Chart: On the upside, bulls need to see Apple clear the recent high near $147, then resistance near $150. Above $150 and they can focus on $156.50 to $157.50 (the latter being the fourth-quarter high). On the downside, ideal support is near $138 to $140. However, a break of $135.50 is concerning, as it technically opens the door back down to the lows.
Hot Stocks for Tomorrow: Amazon (AMZN)
Click to Enlarge
Source: Chart courtesy of TrendSpider
I don’t mean to exclude Alphabet, because what the company has to say about search and digital ad spending is important. However, Amazon will help give investors a better idea about consumers.
Consumer spending has remained pretty strong despite concerns about an economic contraction. That said, inflation has remained stubbornly high. Even though consumers were paying for necessities, online shopping trends were favorable through the holidays.
More important than the holidays though will be management’s outlook. How does Amazon Web Services (AWS) look and how are consumers spending so far one month into the year? These will answer a lot of important questions for investors, both for Amazon and tech as a whole.
While I don’t necessarily mean to make today’s piece all about big-cap tech, it’s hard not to when they all report earnings.
The Chart: Amazon stock is ramming right into the $102.50 level, which was a key support in mid-2022, then resistance in the fourth quarter. A rally above this level puts the $109.77 gap-fill in play, along with the 200-day moving average. On the downside, bulls want Amazon stock to hold the 10-day moving average but need it to hold $91.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) will all report earnings after the close. Apple (AAPL) The post META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow appeared first on InvestorPlace.
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Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) will all report earnings after the close. Apple (AAPL) The post META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow appeared first on InvestorPlace.
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Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) will all report earnings after the close. Apple (AAPL) The post META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow appeared first on InvestorPlace.
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Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) will all report earnings after the close. Apple (AAPL) The post META, AAPL, AMZN Predictions: 3 Hot Stocks for Tomorrow appeared first on InvestorPlace.
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17310.0
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2023-02-01 00:00:00 UTC
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The 3 Most Undervalued Buffett Stocks to Buy in February 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-most-undervalued-buffett-stocks-to-buy-in-february-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Oracle of Omaha, Warren Buffett is one of the most successful investors of our time. So, it just makes sense to track some of the best Buffett stocks to buy. In addition, his company Berkshire Hathaway (NYSE:BRK-B) holds a well-diversified portfolio of stocks, many of which are often hand-picked by Warren Buffett himself. After all, Buffett is known for investing in quality companies with strong brands, good management, and solid financials.
In this article, we will take a look at the three undervalued stocks in Berkshire Hathaway’s portfolio, as listed in the company’s most recent 13F filing with the U.S. SEC. These undervalued Buffett stocks offer a glimpse into the types of companies that interest Buffett.
AAPL Apple $145.43
STNE StoneCo $11.35
SNOW Snowflake $165.22
Buffett Stocks to Buy: Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) is a no-brainer, as it is the largest holding of Berkshire Hathaway and a well-established company with a proven track record of success and a promising future. Berkshire has massive exposure to this stock, with 38.3% of its portfolio allocated to AAPL. This shows that Buffett is confident in Apple’s ability to continue delivering solid results and is willing to bet big on the stock.
For investors looking for a blue-chip stock with a growth history, Apple is definitely worth considering. The technology giant has consistently outperformed the market despite short-term hiccups and is currently one of the largest companies in the world by market capitalization. Its product lineup and closed-loop system, including products such as the iPhone, iPad, Mac, and Apple Watch, has helped it establish a loyal customer base and strong brand recognition.
The company also generates much of its revenue from wealthier customers, less affected by inflationary pressures. This is why Apple’s top line grew at an 8.14% clip, and its profits grew despite margins declining by 6.73%.
Buffett Stocks to Buy: StoneCo (STNE)
Source: Wright Studio / Shutterstock.com
While I could put big-name companies such as Bank of America (NYSE:BAC), Occidental Petroleum (NYSE:OXY), or Coca-Cola (NYSE:KO) on this list, each is far from undervalued. The stock that does fit the undervalued theme is StoneCo (NASDAQ:STNE), a Brazilian financial technology company offering digital solutions to small and medium-sized businesses, making it easier for them to manage their financials, receive payments, and run their operations. The company’s success can be attributed to its focus on serving the underserved and emerging market in Brazil, which traditional financial institutions have largely ignored.
The company is among the fastest growing in the fintech sphere, with its revenue growing 70% year-on-year last quarter and profits growing at 94%. Even more impressively, its profit margin more than doubled from the past-year period in Q3 2022, beating most expectations. These metrics have slowed, but STNE stock is still trading nearly 90% down from its peak. Therefore, I find it highly oversold in this range. Considering the long-term prospects, STNE provides an excellent entry point, and I’m confident it will surge as stabilizing exchange rates improve these metrics even more.
Snowflake (SNOW)
Source: rblfmr / Shutterstock.com
Almost all technology companies with a cloud segment are reporting a boom. Companies like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and IBM (NYSE:IBM) are seeing their cloud segment not only outgrowing other segments but becoming their primary growth driver. This may look like excellent news for a cloud-computing pure-play like Snowflake (NYSE:SNOW). But unfortunately, the stock is down 60% from its high.
Of course, the Street has justifiable reasons for being bearish on the stock for the past year. However, the perspective of SNOW stock is slowly shifting, and the stock is gearing up for a recovery. Snowflake’s growth is decelerating, but its financials are consistently improving and beating expectations. If the same trend persists, the company will likely narrow its losses significantly within a few quarters. That should compel a much higher premium.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.
The post The 3 Most Undervalued Buffett Stocks to Buy in February 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $145.43 STNE StoneCo $11.35 SNOW Snowflake $165.22 Buffett Stocks to Buy: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is a no-brainer, as it is the largest holding of Berkshire Hathaway and a well-established company with a proven track record of success and a promising future. Berkshire has massive exposure to this stock, with 38.3% of its portfolio allocated to AAPL. In addition, his company Berkshire Hathaway (NYSE:BRK-B) holds a well-diversified portfolio of stocks, many of which are often hand-picked by Warren Buffett himself.
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AAPL Apple $145.43 STNE StoneCo $11.35 SNOW Snowflake $165.22 Buffett Stocks to Buy: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is a no-brainer, as it is the largest holding of Berkshire Hathaway and a well-established company with a proven track record of success and a promising future. Berkshire has massive exposure to this stock, with 38.3% of its portfolio allocated to AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Oracle of Omaha, Warren Buffett is one of the most successful investors of our time.
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AAPL Apple $145.43 STNE StoneCo $11.35 SNOW Snowflake $165.22 Buffett Stocks to Buy: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is a no-brainer, as it is the largest holding of Berkshire Hathaway and a well-established company with a proven track record of success and a promising future. Berkshire has massive exposure to this stock, with 38.3% of its portfolio allocated to AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Oracle of Omaha, Warren Buffett is one of the most successful investors of our time.
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AAPL Apple $145.43 STNE StoneCo $11.35 SNOW Snowflake $165.22 Buffett Stocks to Buy: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) is a no-brainer, as it is the largest holding of Berkshire Hathaway and a well-established company with a proven track record of success and a promising future. Berkshire has massive exposure to this stock, with 38.3% of its portfolio allocated to AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Oracle of Omaha, Warren Buffett is one of the most successful investors of our time.
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17311.0
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2023-02-01 00:00:00 UTC
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Could Apple Stock Help You Become a Millionaire?
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AAPL
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https://www.nasdaq.com/articles/could-apple-stock-help-you-become-a-millionaire
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Undoubtedly, technology giant Apple (NASDAQ: AAPL) has created life-changing wealth for countless investors. All you had to do was be fortunate enough to hold the stock for a stretch of the stock's 143,000% lifetime total returns. But today, the company has a $2.3 trillion market capitalization, so it's far too large to see returns that high moving forward.
But don't make the mistake of doubting Apple's wealth-building prowess. The stock might be past its golden years, but there is plenty of juice to squeeze for long-term investors. Here is how Apple can still help you build a diversified million-dollar portfolio -- it just might take a bit longer. Let's dive in.
Apple found its golden goose
Steve Jobs co-founded Apple in 1976, but it wasn't until the company invented the iPhone some 31 years later that the company's trajectory shot into the stratosphere. Today, the iPhone is Apple's core product, surrounded by an ecosystem of apps and subscription services generating ancillary revenue.
You can see below that Apple keeps growing its revenue, and its margins are increasing too. That's a fantastic combination for investors, seeing Apple throw off $111 billion in cash profits over the past four quarters, more than most companies do in sales.
AAPL Free Cash Flow data by YCharts.
Many of its customers are locked into the ecosystem, upgrading their phones every so often, and generating monthly sales through Apple Music and Apple News, among several other services you can choose. Smartphones have become a staple in society, and Apple's business will likely thrive until that changes.
Putting all of that cash to use
Shareholders benefit when a business generates so much profit that it doesn't need it all; that typically means it finds its way into your pockets. Apple gives back to investors through a dividend and share repurchases. Apple has raised its dividend for 10 consecutive years. However, the company emphasizes buying back its stock, spending a staggering $89 billion over the past year alone on the cause:
AAPL Stock Buybacks (TTM) data by YCharts.
A company buying back stock helps grow earnings per share (EPS) because profits are spread across fewer shares. Higher EPS helps support the stock price, further benefiting shareholders. Apple has taken its share count from over 26 billion to less than 16 billion over the past decade, helping it grow EPS despite its massive size.
What does the math look like?
So how can Apple stock help you become a millionaire? Its dominant business and forward-looking growth make it an excellent pick for inclusion in a diversified portfolio. Apple's massive cash flows should continue fueling share repurchases moving forward. Ironically, investors should celebrate a bear market because a lower share price means that Apple is retiring more shares for its money.
As a result, analysts expect Apple's EPS to grow by an average of 12.5% annually over the next three to five years. If the stock's valuation remains constant, the share price will double after approximately six years if these growth estimates are accurate. It's possible that the share price can grow faster than the stock's market cap because Apple is constantly lowering the number of outstanding shares.
Apple may need to continue innovating to keep its pace over the longer term. Still, unless something dramatic happens, Apple's cash cow business seems remarkably intact for the foreseeable future. The company's rare combination of size and profitability means the stock can still help you generate wealth if you give it enough time.
10 stocks we like better than Apple
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Undoubtedly, technology giant Apple (NASDAQ: AAPL) has created life-changing wealth for countless investors. AAPL Free Cash Flow data by YCharts. However, the company emphasizes buying back its stock, spending a staggering $89 billion over the past year alone on the cause: AAPL Stock Buybacks (TTM) data by YCharts.
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Undoubtedly, technology giant Apple (NASDAQ: AAPL) has created life-changing wealth for countless investors. AAPL Free Cash Flow data by YCharts. However, the company emphasizes buying back its stock, spending a staggering $89 billion over the past year alone on the cause: AAPL Stock Buybacks (TTM) data by YCharts.
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Undoubtedly, technology giant Apple (NASDAQ: AAPL) has created life-changing wealth for countless investors. AAPL Free Cash Flow data by YCharts. However, the company emphasizes buying back its stock, spending a staggering $89 billion over the past year alone on the cause: AAPL Stock Buybacks (TTM) data by YCharts.
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Undoubtedly, technology giant Apple (NASDAQ: AAPL) has created life-changing wealth for countless investors. AAPL Free Cash Flow data by YCharts. However, the company emphasizes buying back its stock, spending a staggering $89 billion over the past year alone on the cause: AAPL Stock Buybacks (TTM) data by YCharts.
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17312.0
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2023-02-01 00:00:00 UTC
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Snap's earnings may hold positive news for Meta, Google
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AAPL
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https://www.nasdaq.com/articles/snaps-earnings-may-hold-positive-news-for-meta-google
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nan
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By Sheila Dang and Nivedita Balu
Feb 1 (Reuters) - A rise in a key advertising metric for Snap Inc SNAP.Nthat reported an otherwise insipid quarter could bode well for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday.
Shares of Snapchat owner fell 14% on dour revenue forecast, which the company blamed on a weak economy and stiff competition. But Snap's direct response advertising business, which is key for market leaders Meta and Google, was a bright spot.
Sales from the business rose 4% in the fourth quarter, Snap said.
"Snap is impacted by the reality that it has significant brand advertising exposure (which is getting hit harder than direct response)," said Evercore ISI analyst Mark Mahaney.
Headwinds for Meta and Google could be notably less severe, he said.
Alphabet's Google, the world's largest digital advertising platform, has long fared better than other ad-dependent companies because brands deem ads on Google searches crucial to driving website visits or other consumer actions.
Meta has said the bulk of its revenue also comes from direct response advertising. Facebook and Instagram reach billions of users, turning them into a key part of the marketing strategies of many brands.
Snap's direct response performance was a more positive takeaway for Meta than Alphabet, said CFRA Research analyst Angelo Zino, pointing to Meta's progress with measurement, optimization and artificial intelligence enhancements on its platform.
Snap's shares were trading at $10.80 before the bell on Wednesday. The company's weak outlook pulled down the shares of Meta and Pinterest PINS.N, which also earns revenue by selling digital advertising.
Analysts expect Meta to report a 6.5% fall in December-quarter revenue when it reports results later on Wednesday, its third consecutive quarter of decline, according to Refinitiv.
Alphabet will report results on Thursday, and analysts expect revenue to be unchanged from a year earlier.
Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. But it has the "added challenge of being a small player," said Jasmine Enberg, principal analyst at Insider Intelligence.
"Advertisers are turning to tried and true platforms."
Snap underperforms other social media stockshttps://tmsnrt.rs/40j2ZqJ
Snap expects its first ever revenue declinehttps://tmsnrt.rs/3YdWzqZ
(Reporting by Sheila Dang in Dallas and Nivedita Balu in Bengaluru, additional reporting by Akash Sriram in Bengaluru; Editing by Dhanya Ann Thoppil and Shinjini Ganguli)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. By Sheila Dang and Nivedita Balu Feb 1 (Reuters) - A rise in a key advertising metric for Snap Inc SNAP.Nthat reported an otherwise insipid quarter could bode well for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday. "Snap is impacted by the reality that it has significant brand advertising exposure (which is getting hit harder than direct response)," said Evercore ISI analyst Mark Mahaney.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. By Sheila Dang and Nivedita Balu Feb 1 (Reuters) - A rise in a key advertising metric for Snap Inc SNAP.Nthat reported an otherwise insipid quarter could bode well for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday. But Snap's direct response advertising business, which is key for market leaders Meta and Google, was a bright spot.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. By Sheila Dang and Nivedita Balu Feb 1 (Reuters) - A rise in a key advertising metric for Snap Inc SNAP.Nthat reported an otherwise insipid quarter could bode well for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday. Snap's direct response performance was a more positive takeaway for Meta than Alphabet, said CFRA Research analyst Angelo Zino, pointing to Meta's progress with measurement, optimization and artificial intelligence enhancements on its platform.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. But Snap's direct response advertising business, which is key for market leaders Meta and Google, was a bright spot. Meta has said the bulk of its revenue also comes from direct response advertising.
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17313.0
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2023-02-01 00:00:00 UTC
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GLOBAL MARKETS-Stocks rally, dollar slumps after Fed statement, Powell remarks
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-rally-dollar-slumps-after-fed-statement-powell-remarks
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nan
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By Chuck Mikolajczak
NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rallied and the U.S. dollar slumped on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but comments from Chair Jerome Powell were interpreted as dovish by the market.
The Fed said the U.S. economy was enjoying "modest growth" and "robust" job gains, with policymakers still "highly attentive to inflation risks" as it seeks to tighten financial conditions and reign in high prices. Markets have been pricing in the possibility of a rate cut by the Fed in the back half of the year.
On Wall Street, U.S. stocks were choppy after the Fed announcement but began to rally after Chair Jerome Powell acknowledged inflation was starting to ease and the disinflationary process was at an early stage.
"The market’s reaction implies investors feel we are much closer to the end than we are, let’s say, to the middle of the rate tightening cycle," said Sam Stovall chief investment strategist at CFRA in New York.
"You certainly need disinflation in order to get down to your inflationary target and even though he did say multiple times that we are not yet at a sufficiently restrictive policy stance to bring inflation back down to 2%, the other statements implied that we are getting pretty close."
The Dow Jones Industrial Average .DJI rose 6.92 points, or 0.02%, to 34,092.96, the S&P 500 .SPX gained 42.61 points, or 1.05%, to 4,119.21 and the Nasdaq Composite .IXIC added 231.77 points, or 2%, to 11,816.32.
The gains sent the S&P 500 to its highest close since August 25.
Before the policy announcement, economic data painted a mixed picture, with a labor market that remains strong while manufacturing activity continues to weaken, showing contraction for a third straight month.
Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation.
Earnings season with earnings from names such as Apple AAPL.O and Amazon .AMZN.Oare due on Thursday.
Early gains for European shares faded to close virtually unchanged ahead of the Fed statement, although industrial stocks SXNP, up 0.85%, were a bright spot. On the heels of the Fed, the European Central Bank (ECB) and Bank of England will make their policy statements on Thursday, in which each is largely expected to hike by 50 basis points.
The pan-European STOXX 600 index .STOXX closed down 0.03% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.08%. MSCI's index hit its highest intraday level since August 17 and was poised for its biggest one-day percentage gain since Jan 20.
Data on Wednesday showed headline inflation in the euro zone moderated to 8.5% in January, from 9% in December, while core prices picked up to 7% from 6.9%, likely keeping pressure on the ECB to raise interest rates aggressively.
The dollar started February on a lower note, continuing its weakening trajectory of the previous four months, losing further ground after Powell's comments, hitting its lowest level since late April. The dollar index =USD fell 0.901%, with the euro EUR= up 1.11% to $1.0983.
The Japanese yen strengthened 0.83% versus the greenback at 129.02 per dollar, while Sterling GBP= was last trading at $1.2371, up 0.41% on the day.
U.S. Treasury yields initially moved up after the statement but reversed course and mostly fell after Powell's comments were still lower on the day, as benchmark 10-year notes US10YT=RR were down 10.5 basis points to 3.424%, from 3.529% late on Tuesday, although the two-year yield briefly turned higher after the most recent batch of economic data.
Despite the drop in the dollar, U.S. crude CLc1 settled down 3.12% to $$76.41 per barrel and Brent LCOc1 settled at $82.84, 3.07% lower on the day after U.S. government data showed big builds in inventories while OPEC and its allies kept to their output policy.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis and Diane Craft)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings season with earnings from names such as Apple AAPL.O and Amazon .AMZN.Oare due on Thursday. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rallied and the U.S. dollar slumped on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but comments from Chair Jerome Powell were interpreted as dovish by the market. On Wall Street, U.S. stocks were choppy after the Fed announcement but began to rally after Chair Jerome Powell acknowledged inflation was starting to ease and the disinflationary process was at an early stage.
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Earnings season with earnings from names such as Apple AAPL.O and Amazon .AMZN.Oare due on Thursday. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rallied and the U.S. dollar slumped on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but comments from Chair Jerome Powell were interpreted as dovish by the market. On Wall Street, U.S. stocks were choppy after the Fed announcement but began to rally after Chair Jerome Powell acknowledged inflation was starting to ease and the disinflationary process was at an early stage.
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Earnings season with earnings from names such as Apple AAPL.O and Amazon .AMZN.Oare due on Thursday. By Chuck Mikolajczak NEW YORK, Feb 1 (Reuters) - A gauge of global stocks rallied and the U.S. dollar slumped on Wednesday after the Federal Reserve raised its target interest rate by the expected 25 basis points but comments from Chair Jerome Powell were interpreted as dovish by the market. U.S. Treasury yields initially moved up after the statement but reversed course and mostly fell after Powell's comments were still lower on the day, as benchmark 10-year notes US10YT=RR were down 10.5 basis points to 3.424%, from 3.529% late on Tuesday, although the two-year yield briefly turned higher after the most recent batch of economic data.
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Earnings season with earnings from names such as Apple AAPL.O and Amazon .AMZN.Oare due on Thursday. Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation. Early gains for European shares faded to close virtually unchanged ahead of the Fed statement, although industrial stocks SXNP, up 0.85%, were a bright spot.
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17314.0
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2023-02-01 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-5
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $28.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. 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 usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has added roughly 6.64% so far this year and is down about -8.72% in the last one year (as of 02/01/2023). In the past 52-week period, it has traded between $196.94 and $255.89.
The ETF has a beta of 1.01 and standard deviation of 25.61% for the trailing three-year period, making it a medium risk choice in the space. With about 1017 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWB is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $307.04 billion in assets, SPDR S&P 500 ETF has $381.31 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell 1000 ETF (IWB): ETF Research Reports
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iShares Core S&P 500 ETF (IVV): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 5.31% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). It has amassed assets over $28.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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17315.0
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2023-02-01 00:00:00 UTC
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Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-ishares-esg-aware-msci-usa-etf-esgu-a-strong-etf-right-now-5
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Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $20.04 billion, making it the largest ETF in the Style Box - All Cap Growth. ESGU seeks to match the performance of the MSCI USA ESG Focus Index before fees and expenses.
The MSCI USA Extended ESG Focus Index comprises of U.S. companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 28% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 21.26% of total assets under management.
Performance and Risk
The ETF has added roughly 6.48% so far this year and is down about -9.69% in the last one year (as of 02/01/2023). In the past 52-week period, it has traded between $79.22 and $103.63.
The fund has a beta of 1.02 and standard deviation of 25.77% for the trailing three-year period. With about 313 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares ESG Aware MSCI USA ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index. Vanguard ESG U.S. Stock ETF has $6.11 billion in assets, iShares ESG Aware MSCI EAFE ETF has $7.23 billion. ESGV has an expense ratio of 0.09% and ESGD charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares ESG Aware MSCI USA ETF (ESGU): 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
Vanguard ESG U.S. Stock ETF (ESGV): 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 5.85% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): 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 Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): 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 Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): 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 Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): 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 Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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2023-02-01 00:00:00 UTC
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ANALYSIS-Hawkish Fed could hobble volatility funds’ stock buying spree
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https://www.nasdaq.com/articles/analysis-hawkish-fed-could-hobble-volatility-funds-stock-buying-spree
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By Saqib Iqbal Ahmed
NEW YORK, Feb 1 (Reuters) - Volatility-linked funds estimated to be buying as much as $2 billion in U.S. equities daily are helping drive this year's rebound in stocks and may ramp up purchases in coming weeks, though a hawkish Federal Reserve could spoil the party.
The S&P 500’s .SPX 6.2% surge in January has been accompanied by a drop in measures of volatility across the board. Daily swings in the index over the past month were the smallest since early 2022, while the Cboe Volatility Index .VIX also stands near a one-year low.
The drop in market gyrations has triggered a buy-signal for certain computer-driven strategies including volatility control funds, risk parity funds and Commodity Trading Advisors (CTAs).
Broadly known as systematic strategies, these funds have been scooping up between $1 billion and $2 billion a day in U.S. stocks, according to BNP Paribas estimates, helping drive an equity rally that has come despite worries that a hawkish Fed will plunge the U.S. economy into recession.
"This has definitely been more a flow-driven rally than a shift in the overall fundamental backdrop," said Max Grinacoff, U.S. equity and derivatives strategist at BNP Paribas.
Grinacoff estimates these types of funds could deploy another $50 billion-$60 billion of additional buying over the course of a month if realized volatility - a measure of daily stock swings - halves from its current level of around 16%, a level of calm unseen in U.S. stocks since late 2021.
Of course, the market will have to navigate a plethora of risks ahead - most prominently the Fed, which concludes its monetary policy meeting on Wednesday. Signs that the central bank is unlikely to pull back on its hawkish monetary policy outlook despite evidence of slowing inflation and softness in the economy could exacerbate recession fears and reignite volatility, forcing the funds to taper purchases or even start selling.
Markets widely expect the central bank to raise borrowing costs by another 25 basis points to between 4.50% and 4.75%.
Other potential pitfalls include earnings from some of the largest U.S. companies this week, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, as well as the closely watched U.S. nonfarm payrolls report on Friday.
"As we think that technical factors may have played a large role in the market performance so far this year, we expect this to eventually wane as fundamental factors resume the dominant position as market drivers," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note on Tuesday.
FAVORABLE CONDITIONS
Investors said conditions were supportive of a rally at the beginning of the year. The S&P 500's 19.4% drop last year, its worst annual percentage decline since 2008, had prompted market participants - including various volatility-linked strategies - to cut their equity allocations to historically low levels.
"We have this trifecta of seemingly depressed equity positioning across three major investor groups: vol target funds, CTAs and hedge funds," said Anand Omprakash, head of derivatives quantitative strategy at Elevation Securities.
Volatility control funds have raised their equity allocation to a nine-month high of 57.7%, strategists at Deutsche Bank wrote on Friday.
Grinacoff, of BNP Paribas, estimates volatility control funds have assets of about $275 billion, while CTAs, not all of which have a volatility control strategy, as a group have $800 billion allocated across strategies.
While that is modest relative to the roughly $34 trillion value of the S&P 500 alone, such funds bear watching since they buy in rising markets and sell when stocks tumble, and can potentially exacerbate downside moves as well as rallies.
To be sure, while volatility has fallen from last year’s peaks, when the VIX rose as high as 36.55, current levels remain above the index’s long-term average, a sign that options investors are likely mindful of the risks ahead, said Garrett DeSimone, head of quantitative research at OptionMetrics.
"Market volatility measured by VIX remains stuck above the 18 level, which is its long-term average. This indicates a slight anxiety regarding macro outcomes on future volatility," he said.
GRAPHIC: Volatility drophttps://tmsnrt.rs/3Yhnsul
(Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew Lewis)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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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Other potential pitfalls include earnings from some of the largest U.S. companies this week, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, as well as the closely watched U.S. nonfarm payrolls report on Friday. By Saqib Iqbal Ahmed NEW YORK, Feb 1 (Reuters) - Volatility-linked funds estimated to be buying as much as $2 billion in U.S. equities daily are helping drive this year's rebound in stocks and may ramp up purchases in coming weeks, though a hawkish Federal Reserve could spoil the party. Signs that the central bank is unlikely to pull back on its hawkish monetary policy outlook despite evidence of slowing inflation and softness in the economy could exacerbate recession fears and reignite volatility, forcing the funds to taper purchases or even start selling.
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Other potential pitfalls include earnings from some of the largest U.S. companies this week, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, as well as the closely watched U.S. nonfarm payrolls report on Friday. By Saqib Iqbal Ahmed NEW YORK, Feb 1 (Reuters) - Volatility-linked funds estimated to be buying as much as $2 billion in U.S. equities daily are helping drive this year's rebound in stocks and may ramp up purchases in coming weeks, though a hawkish Federal Reserve could spoil the party. The drop in market gyrations has triggered a buy-signal for certain computer-driven strategies including volatility control funds, risk parity funds and Commodity Trading Advisors (CTAs).
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Other potential pitfalls include earnings from some of the largest U.S. companies this week, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, as well as the closely watched U.S. nonfarm payrolls report on Friday. The drop in market gyrations has triggered a buy-signal for certain computer-driven strategies including volatility control funds, risk parity funds and Commodity Trading Advisors (CTAs). Grinacoff estimates these types of funds could deploy another $50 billion-$60 billion of additional buying over the course of a month if realized volatility - a measure of daily stock swings - halves from its current level of around 16%, a level of calm unseen in U.S. stocks since late 2021.
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Other potential pitfalls include earnings from some of the largest U.S. companies this week, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, as well as the closely watched U.S. nonfarm payrolls report on Friday. Broadly known as systematic strategies, these funds have been scooping up between $1 billion and $2 billion a day in U.S. stocks, according to BNP Paribas estimates, helping drive an equity rally that has come despite worries that a hawkish Fed will plunge the U.S. economy into recession. Grinacoff estimates these types of funds could deploy another $50 billion-$60 billion of additional buying over the course of a month if realized volatility - a measure of daily stock swings - halves from its current level of around 16%, a level of calm unseen in U.S. stocks since late 2021.
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17317.0
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2023-02-01 00:00:00 UTC
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Biden moves to slash U.S. credit card fees, app charges
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https://www.nasdaq.com/articles/biden-moves-to-slash-u.s.-credit-card-fees-app-charges
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By Douglas Gillison
WASHINGTON, Feb 1 (Reuters) - The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple Inc AAPL.O and Google parent Alphabet Inc GOOGL.O charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said.
President Joe Biden was also set to urge Congress to ban hidden "junk fees" and penalties that a federal consumer watchdog says are creeping into everyday retail services across industries, driving up consumer costs, including fees airlines charge for family members to sit next to young children, White House officials said.
Biden has been beating the drum on inflation, criticizing Republicans who now control the House of Representatives for backing tax measures that he said would benefit the wealthy at the expense of middle-class taxpayers.
Biden, who is expected to announce a bid for re-election in the coming weeks, has also been slamming Republicans for their refusal to approve an increase in the U.S. debt ceiling unless there is a deal on spending cuts. Wednesday's announcement coincides with a scheduled meeting between Biden and House Speaker Kevin McCarthy that is likely to mark the start of protracted maneuvering on raising the $31.4 trillion borrowing cap.
The Consumer Financial Protection Bureau will propose on Wednesday a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year.
"When someone misses a credit card payment, even if they paid just a day or two late, or even a few hours, they can be hit with a cascading series of fees," CFPB Director Rohit Chopra told reporters in a Tuesday call.
Chopra said such fees far exceeded any additional costs that lenders incurred and said the rule would cap a regulatory threshold at $8, a level indicated by CFPB data analysis.
Chopra said that after a comment period, the rule could take effect in 2024. However, regulations are frequently subject to challenge and litigation by industry groups that can block or delay them.
The National Telecommunications and Information Administration (NTIA), an arm of the Commerce Department, is releasing a report denouncing the market dominance enjoyed by Apple and Google in the app economy, where the vast majority of smartphone users and developers are hemmed inside the tech giants' software ecosystems, which the NTIA said drives up costs and limits innovation.
The report calls for greater user control over which applications are available, an end to platform operators' "self-preference" for their own apps, and a ban on requirements that apps use the operators' in-app payments systems.
The White House said the Transportation Department on Wednesday will propose regulations to bar airlines from charging family members to be seated next to children age 13 or younger. The department will disclose on a government dashboard which airlines do not charge such fees.
Wednesday's announcements will mark the fourth meeting of Biden's Competition Council, created in 2021 when consumer inflation was at 40-year highs and was widely seen as a political headwind ahead of the 2022 midterm elections.
(Reporting by Douglas Gillison and David Shepardson; Editing by Leslie Adler)
((douglas.gillison@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 Douglas Gillison WASHINGTON, Feb 1 (Reuters) - The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple Inc AAPL.O and Google parent Alphabet Inc GOOGL.O charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said. Wednesday's announcement coincides with a scheduled meeting between Biden and House Speaker Kevin McCarthy that is likely to mark the start of protracted maneuvering on raising the $31.4 trillion borrowing cap. "When someone misses a credit card payment, even if they paid just a day or two late, or even a few hours, they can be hit with a cascading series of fees," CFPB Director Rohit Chopra told reporters in a Tuesday call.
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By Douglas Gillison WASHINGTON, Feb 1 (Reuters) - The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple Inc AAPL.O and Google parent Alphabet Inc GOOGL.O charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said. President Joe Biden was also set to urge Congress to ban hidden "junk fees" and penalties that a federal consumer watchdog says are creeping into everyday retail services across industries, driving up consumer costs, including fees airlines charge for family members to sit next to young children, White House officials said. The Consumer Financial Protection Bureau will propose on Wednesday a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year.
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By Douglas Gillison WASHINGTON, Feb 1 (Reuters) - The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple Inc AAPL.O and Google parent Alphabet Inc GOOGL.O charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said. President Joe Biden was also set to urge Congress to ban hidden "junk fees" and penalties that a federal consumer watchdog says are creeping into everyday retail services across industries, driving up consumer costs, including fees airlines charge for family members to sit next to young children, White House officials said. The Consumer Financial Protection Bureau will propose on Wednesday a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year.
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By Douglas Gillison WASHINGTON, Feb 1 (Reuters) - The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple Inc AAPL.O and Google parent Alphabet Inc GOOGL.O charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said. President Joe Biden was also set to urge Congress to ban hidden "junk fees" and penalties that a federal consumer watchdog says are creeping into everyday retail services across industries, driving up consumer costs, including fees airlines charge for family members to sit next to young children, White House officials said. The Consumer Financial Protection Bureau will propose on Wednesday a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year.
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17318.0
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2023-02-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Meta Platforms, Mastercard, CVS Health and Ameriprise Financial
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-meta-platforms-mastercard-cvs-health-and
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For Immediate Release
Chicago, IL – February 1, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Mastercard Inc. MA, CVS Health Corp. CVS and Ameriprise Financial, Inc. AMP.
Here are highlights from Tuesday’s Analyst Blog:
Q4 Earnings Season Scorecard and Analyst Reports for Apple, Meta and MasterCard
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Inc. (MA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q4 Earnings Season Scorecard
Including all the reports that came out before the market's open this morning (January 31st), we now have Q4 results from 167 S&P 500 members or 33.4% of the index's total membership.
Total earnings for these companies are up +2.1% from the same period last year on +7.5% higher revenues, with 73.1% beating EPS estimates and 68.9% beating revenue estimates.
The growth pace for these 167 index members, for earnings as well as revenues, is in-line with the expected decelerating trend. That said, there is a divergence between the Q4 EPS and revenue beats percentages, with revenue beats about in-line with historical trends but EPS beats on the low side.
Looking at Q4 as a whole, combining the actual results that have come out with estimates for the still-to-come companies, S&P 500 earnings are on track to be down -6.3% from the same period last year on +4.7% higher revenues.
For the current period (2023 Q1), S&P 500 earnings are currently expected to be down -6.2% on +2.3% higher revenues. Estimates for the period have been coming down, with the current -6.2% expected decline down from -4% on January 6th and -2.9% in mid-December 2022.
This could change as we go through the remainder of this reporting cycle. But at this stage in the Q4 earnings season, the magnitude of negative revisions isn't of the level that many in the market appeared to fear a few weeks back. It is primarily in this context that the Q4 earnings season has proven, at this stage at least, to be better than feared.
Today's Featured Analyst Reports
Shares of Apple have held up better than the broader Tech sector over the past year (-18% vs. -23.9% for the Zacks Tech sector), but have lagged the broader market (-18% vs. -13% for the S&P 500 index). The company’s holiday season iPhone shipments are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou. The Zacks analyst expects Apple to ship roughly 70 million iPhones in the first quarter of fiscal 2023.
The company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.
(You can read the full research report on Apple here >>>)
Shares of Meta Platforms have underperformed the Zacks Internet - Software industry over the past year (-53.9% vs. -48.0%). The company is suffering from challenging macroeconomic conditions that is negatively impacting its advertising spending. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
User base in Europe declined in the reported quarter. Meta’s fourth-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. Meta expects Reels to monetize much slower than feed or stories. Shares have underperformed the industry in the past year.
However, Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
(You can read the full research report on Meta Platforms here >>>)
Shares of Mastercard have declined -5.3% over the past year against the Zacks Financial Transaction Services industry’s decline of -10.8%. The company’s steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. Its dividend yield is still lower than the industry average. As such, the stock warrants a cautious stance.
However, Numerous acquisitions are helping the company to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for MA's business to expedite its shift to the digital mode.
The company’s growing footprint in the crypto universe can position it for long-term growth. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions and deploy capital.
(You can read the full research report on Mastercard here >>>)
Other noteworthy reports we are featuring today include CVS Health Corp. and Ameriprise Financial, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Mastercard Inc. MA, CVS Health Corp. CVS and Ameriprise Financial, Inc. AMP. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Inc. (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Mastercard Inc. MA, CVS Health Corp. CVS and Ameriprise Financial, Inc. AMP. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Inc. (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Inc. (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Mastercard Inc. MA, CVS Health Corp. CVS and Ameriprise Financial, Inc. AMP.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Meta Platforms, Inc. META, Mastercard Inc. MA, CVS Health Corp. CVS and Ameriprise Financial, Inc. AMP. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Inc. (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17319.0
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2023-02-01 00:00:00 UTC
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An Investment of Just $1,000 in Any of These 3 Stocks Could've Made You a Millionaire
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AAPL
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https://www.nasdaq.com/articles/an-investment-of-just-%241000-in-any-of-these-3-stocks-couldve-made-you-a-millionaire
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nan
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nan
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The world's best investors often preach the importance of focusing on the long term. After all, Rome wasn't built in a day, nor were some of the greatest companies in America.
The best stock market returns are often delivered over a period of decades, and investors who were fortunate enough to buy into the initial public offerings (IPOs) for stocks like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) had the opportunity to turn relatively small sums of money into life-changing fortunes.
An investment of just $1,000 in any of those three companies around the time of their IPOs could've made you a millionaire. But even if you don't own them yet, here's why it's not too late.
1. Amazon is the biggest name in e-commerce, but it hasn't stopped there
Amazon stock hit the public markets on May 15, 1997. It was seen as a speculative bet on the power of the internet back then because selling products online was still a foreign concept. Fast-forward to 2023, and Wall Street analysts estimate the company will generate a whopping $559 billion in revenue this year alone, and over 80% of that is likely to come from its world-leading e-commerce business.
But Amazon never stopped innovating. It also leads the cloud computing industry through its Amazon Web Services (AWS) brand, which helps businesses migrate their operations online with hundreds of different solutions. That market could be worth $1.5 trillion per year by 2030 (according to Grand View Research), so AWS will remain a key driver of growth and profitability for Amazon as a whole for many years to come.
That's not all. The company is building an advertising empire through its ever-expanding portfolio of digital assets, including its streaming platforms Prime and Twitch, its music platform, and, of course, its flagship website Amazon.com. Not to mention, it also has exposure to the electric vehicle industry through its passive stake in up-and-coming EV manufacturer Rivian Automotive.
Amazon stock listed at a price of $18 back in 1997, but it soared so high at various points that management opted to conduct four stock splits (in 1998, two in 1999, and 2022) to ensure individual shares remained affordable for smaller investors. Therefore, $1,000 would've bought 55 shares of Amazon at its IPO, but you'd actually have 13,200 shares today with a cost basis of $0.075 per share.
Since Amazon trades at $102.24 today, that represents a whopping 136,220% return. In dollar terms, your $1,000 investment would be worth over $1.36 million today. Thanks to Amazon's commitment to innovation and expansion, it's never too late to add it to your portfolio.
2. An Apple a day keeps the doctor away ... from your portfolio
Chances are that you, or someone close to you, owns an Apple product. More than 2.2 billion iPhones have been sold globally in the last 15 years, and an entire ecosystem of hardware and software products has been built around the smartphone. Apple stock listed publicly on Dec. 12, 1980, and the company has since become the most valuable in America with a $2.3 trillion market capitalization.
Apple is a quintessential consumer products company, and it delivers new hardware releases like clockwork, creating an upgrade cycle that gives customers a quick, easy, and predictable path to purchasing the next generation of devices. It's rumored to be entering new territory this year with the release of a mixed-reality headset, taking wearable technology to the next level.
But Apple's services segment has attracted the most attention from investors over the last few years. It features subscription-based products like Apple Music, Apple News, and Apple TV, which generate recurring revenue streams at very high gross profit margins. Then there's Apple Pay, a digital wallet that enables consumers to shop online with their credit card details and personal data protected. The digital payments industry could be a $20 trillion opportunity as soon as 2026.
Apple stock hit the public markets in 1980 at $22 per share, giving you roughly 45 shares for an investment of $1,000. But the company has since completed seven stock splits, so you'd actually have 10,080 shares today with a cost basis of $0.10 per share.
Since Apple stock trades at $145.93 now, that translates to a return of 145,830%. In dollar terms, your $1,000 investment in Apple's IPO would be worth over $1.45 million! But that's not all, because Apple has paid a dividend in most years since 1987, so you'd have also collected $155,131 in dividend payments.
Investors can expect Apple to continue dominating the consumer electronics space and entrenching customers into its ecosystem by adding more services to its portfolio, so there's no time like the present to buy in.
3. Microsoft is gearing up for a future driven by AI
Microsoft has been a publicly traded company since March 1986, and it has grown to become America's second-largest company with a value of $1.8 trillion. While its flagship Windows PC operating system and Office 365 document suite are used by billions of people worldwide, Microsoft has also expanded into a range of other businesses.
Like Amazon, Microsoft's biggest growth driver over the last few years has been cloud computing. Its Azure platform serves businesses and ranks second in the industry to AWS, but it's delivering key integrations with OpenAI, the developer of the ChatGPT conversational platform, to create the future of the cloud. Microsoft invested $1 billion in OpenAI in 2019 and just followed that up with a further $10 billion as the company jostles for a leadership position in the artificial intelligence (AI) industry.
It could be the key to Azure eventually overtaking AWS and also growing its Bing search engine to compete with Alphabet's dominant Google Search.
Microsoft completed its IPO on March 13, 1986, at a price of $21, so your $1,000 would have bought 47 shares. But the company has since completed nine stock splits, meaning you'd have 13,536 shares today with a cost basis of $0.0729 per share.
Since Microsoft stock now trades at $248.16, that represents a return of 340,311% -- in other words, your initial $1,000 investment would be worth over $3.4 million today! But it gets better because Microsoft has paid a dividend since 2003, so you'd have also collected $350,717 in payments. In fact, you'd still be receiving $36,817 per year. Not bad for a $1,000 outlay.
Throughout its history, Microsoft has been a safe bet on personal computing and the cloud, among other things. Now it's one of the best bets on the transformative potential of AI, which is why investors should buy the stock for the long run.
10 stocks we like better than Amazon.com
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*Stock Advisor returns as of January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The best stock market returns are often delivered over a period of decades, and investors who were fortunate enough to buy into the initial public offerings (IPOs) for stocks like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) had the opportunity to turn relatively small sums of money into life-changing fortunes. It also leads the cloud computing industry through its Amazon Web Services (AWS) brand, which helps businesses migrate their operations online with hundreds of different solutions. Apple is a quintessential consumer products company, and it delivers new hardware releases like clockwork, creating an upgrade cycle that gives customers a quick, easy, and predictable path to purchasing the next generation of devices.
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The best stock market returns are often delivered over a period of decades, and investors who were fortunate enough to buy into the initial public offerings (IPOs) for stocks like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) had the opportunity to turn relatively small sums of money into life-changing fortunes. Amazon is the biggest name in e-commerce, but it hasn't stopped there Amazon stock hit the public markets on May 15, 1997. 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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The best stock market returns are often delivered over a period of decades, and investors who were fortunate enough to buy into the initial public offerings (IPOs) for stocks like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) had the opportunity to turn relatively small sums of money into life-changing fortunes. Apple stock hit the public markets in 1980 at $22 per share, giving you roughly 45 shares for an investment of $1,000. See the 10 stocks *Stock Advisor returns as of January 9, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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The best stock market returns are often delivered over a period of decades, and investors who were fortunate enough to buy into the initial public offerings (IPOs) for stocks like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) had the opportunity to turn relatively small sums of money into life-changing fortunes. Amazon is the biggest name in e-commerce, but it hasn't stopped there Amazon stock hit the public markets on May 15, 1997. The digital payments industry could be a $20 trillion opportunity as soon as 2026.
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17320.0
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2023-02-01 00:00:00 UTC
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GRAPHIC-End of easy-cash era is going to hurt
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AAPL
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https://www.nasdaq.com/articles/graphic-end-of-easy-cash-era-is-going-to-hurt
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nan
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nan
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LONDON, Feb 1 (Reuters) - The end of the easy-cash era is over and its impact yet to be felt on world markets, hopeful that the pain of aggressive rate hikes and high inflation has passed.
U.S. and UK central banks are unwinding stimulus further by offloading bonds they hold, and the European Central Bank will join them soon. Nomura estimates the balance sheets of the three banks will shrink by $3 trillion this year.
Tech stocks and crypto currencies look vulnerable. They are among risky assets that soared as cash pumped out by central banks fighting weak inflation in recent years searched for a home.
"When you have unprecedented monetary tightening, the likelihood is that you get issues that are uncovered – that might be something hidden such as liquidity or something more obvious like pressures in the housing market," said Zurich Insurance Group chief market strategist Guy Miller.
We look at some potential pressure points.
1/ DARLINGS NO MORE
Once darlings of the easy-cash era, tech stocks are being shunned by many investors even after a January bounce as higher rates make it more expensive to take punts on the potential earnings growth of early stage or speculative businesses.
When economic uncertainty is high, investors often look for reliable returns from dividends to safeguard portfolios. That makes the likes of tech stalwarts such as AppleAAPL.O, whose shares trade on a dividend yield of less than 1%, look vulnerable.
"We're at a stage where very elevated valuations in markets have collided with much less supportive policy," said James Harries, senior fund manager at Troy Asset Management. "So, the outlook is darkening."
Tech firms are reversing pandemic-era exuberance, cutting jobs after years of hiring sprees. Google owner Alphabet plans to axe about 12,000 workers; Microsoft, Amazon and Meta are firing almost 40,000.
2/ DEFAULT RISKS
Concerns about corporate defaults are mounting as rates rise, although recession worries have eased.
S&P Global said Europe had the second-highest default count last year since 2009.
It expects U.S. and European default rates to reach 3.75% and 3.25%, respectively, in September 2023 versus 1.6% and 1.4% a year before, with pessimistic forecasts of 6.0% and 5.5% not "out of the question."
Man GLG portfolio manager Michael Scott said markets have not fully priced in the risk of higher defaults.
3/ GOING PRIVATE
Private debt markets have ballooned since the financial crisis to $1.4 trillion from $250 billion in 2010.
The largely floating-rate nature of the financing appeals to investors, who can reap returns in high single to low double digits, and became popular as plunging rates post-2008 boosted risk assets.
Now, a reality check: higher rates imply a heavier burden for companies as recession looms, casting a shadow over their ability to generate sufficient cash to pay ballooning interest costs.
"What surprises me is that you're almost back to complacency," said Will Nicole, CIO of Private and Alternative Assets at M&G Investments. "We’ve gone from a position where three months ago everybody was talking about a credit cycle coming through for the first time in decades and now people appear to have forgotten that."
4/CRYPTO WINTER
Rising borrowing costs roiled crypto markets in 2022. The price of bitcoin BTC=BTSP plunged 64% and around $1.3 trillion was wiped off the global cryptocurrency market cap.
Bitcoin has rallied recently but caution remains. The collapse of various dominant crypto companies, most notably FTX, left investors shouldering large losses and prompted calls for more regulation.
January brought a fresh wave of job cuts as firms brace for the so-called crypto winter, while the lending unit of Genesis recently filed for U.S. bankruptcy protection, owing creditors at least $3.4 billion.
5/FOR SALE
Real estate markets, first responders to rate hikes, started cracking last year and 2023 will be tough with U.S. house prices expected to drop 12%.
Fund managers surveyed by BofA see China's troubled real estate sector as the second most likely source of a credit event.
European real estate is reporting distress levels not seen since 2012, according to data from law firm Weil, Gotshal & Manges.
How the sector services its debt is in focus and officials warn European banks risk significant profit hits from sliding house prices.
Real estate investment management firm AEW estimates the UK, France and Germany could face a 24 billion euro debt funding gap through 2025. Luckily, bank balance sheets are better positioned to absorb losses, so few expect a 2008 repeat.
($1 = 0.9192 euros)
Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm
Corporate default rate may double in 2023https://tmsnrt.rs/3JudelY
Distress in Europe's real estate sector riseshttps://tmsnrt.rs/3j7ru9z
Direct lending stellar growth https://tmsnrt.rs/3W1htcd
Pain in crypto landhttps://tmsnrt.rs/3JrguyK
Bloated central bank balance sheets start to shrinkhttps://tmsnrt.rs/3JybvfH
(Reporting by Chiara Elisei, Dhara Ranasinghe, Naomi Rovnick, Elizabeth Howcroft and Yoruk Bahceli; Graphics by Kripa Jayaram and Vincent Flasseur; Editing by Dhara Ranasinghe and Christina Fincher)
((Chiara.Elisei@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That makes the likes of tech stalwarts such as AppleAAPL.O, whose shares trade on a dividend yield of less than 1%, look vulnerable. Once darlings of the easy-cash era, tech stocks are being shunned by many investors even after a January bounce as higher rates make it more expensive to take punts on the potential earnings growth of early stage or speculative businesses. January brought a fresh wave of job cuts as firms brace for the so-called crypto winter, while the lending unit of Genesis recently filed for U.S. bankruptcy protection, owing creditors at least $3.4 billion.
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That makes the likes of tech stalwarts such as AppleAAPL.O, whose shares trade on a dividend yield of less than 1%, look vulnerable. European real estate is reporting distress levels not seen since 2012, according to data from law firm Weil, Gotshal & Manges. Real estate investment management firm AEW estimates the UK, France and Germany could face a 24 billion euro debt funding gap through 2025.
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That makes the likes of tech stalwarts such as AppleAAPL.O, whose shares trade on a dividend yield of less than 1%, look vulnerable. Once darlings of the easy-cash era, tech stocks are being shunned by many investors even after a January bounce as higher rates make it more expensive to take punts on the potential earnings growth of early stage or speculative businesses. Real estate markets, first responders to rate hikes, started cracking last year and 2023 will be tough with U.S. house prices expected to drop 12%.
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That makes the likes of tech stalwarts such as AppleAAPL.O, whose shares trade on a dividend yield of less than 1%, look vulnerable. Once darlings of the easy-cash era, tech stocks are being shunned by many investors even after a January bounce as higher rates make it more expensive to take punts on the potential earnings growth of early stage or speculative businesses. The price of bitcoin BTC=BTSP plunged 64% and around $1.3 trillion was wiped off the global cryptocurrency market cap.
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17321.0
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2023-02-01 00:00:00 UTC
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Snap's earnings may hold positive news for Meta, Google -analysts
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AAPL
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https://www.nasdaq.com/articles/snaps-earnings-may-hold-positive-news-for-meta-google-analysts
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nan
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nan
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By Sheila Dang and Nivedita Balu
Jan 31 (Reuters) - Snap Inc SNAP.N blamed a poor economy and increased competition for its ho-hum quarterly earnings, but a rise in the key ad metric could mean good news for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday.
Snap said its direct response business geared towards driving product sales or website visits rose 4% in October-December. But, revenue from brand advertising, aimed at promoting a brand's image, declined 11%, the company said in its quarterly earnings report on Tuesday.
That could "be viewed as a healthy sign for Meta and Google," whose businesses are tuned to direct response advertisers, said Mark Shmulik, senior analyst at research firm Bernstein.
Alphabet's Google, the world's largest digital advertising platform, has long fared better than other ad-dependent companies because brands consider ads on Google searches crucial to driving website visits or other consumer actions.
Similarly, Meta has said in previous quarters that the bulk of its revenue comes from direct response advertising. Facebook and Instagram reach billions of users, turning them a key part of the marketing strategies of many brands.
"Snap is impacted by the reality that it has significant brand advertising exposure (which is getting hit harder than direct response)," said Evercore ISI analyst Mark Mahaney.
Headwinds for Meta and Google could be notably less severe, he added.
Snap's shares slumped 14% on Tuesday after it projected a decline in current-quarter revenue by as much as 10%. The shares extended the losses on Wednesday, falling about 15% premarket.
The weak outlook pulled down the shares of rivals Meta, Google, and Pinterest PINS.N, which also earns revenue by selling digital advertising, on Tuesday.
Analysts expect Meta to report a 6.5% fall in December quarter revenue when it reports results on Wednesday, according to Refinitiv, its third consecutive quarter of decline.
Alphabet will report results on Thursday, and analysts expect revenue to be unchanged from a year earlier.
Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. But it has the "added challenge of a being a small player," said Jasmine Enberg, principal analyst at Insider Intelligence.
"Advertisers are turning to tried and true platforms."
(Reporting by Sheila Dang in Dallas and Nivedita Balu in Bengaluru; Editing by Dhanya Ann Thoppil)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. By Sheila Dang and Nivedita Balu Jan 31 (Reuters) - Snap Inc SNAP.N blamed a poor economy and increased competition for its ho-hum quarterly earnings, but a rise in the key ad metric could mean good news for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday. That could "be viewed as a healthy sign for Meta and Google," whose businesses are tuned to direct response advertisers, said Mark Shmulik, senior analyst at research firm Bernstein.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. But, revenue from brand advertising, aimed at promoting a brand's image, declined 11%, the company said in its quarterly earnings report on Tuesday. That could "be viewed as a healthy sign for Meta and Google," whose businesses are tuned to direct response advertisers, said Mark Shmulik, senior analyst at research firm Bernstein.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. By Sheila Dang and Nivedita Balu Jan 31 (Reuters) - Snap Inc SNAP.N blamed a poor economy and increased competition for its ho-hum quarterly earnings, but a rise in the key ad metric could mean good news for Facebook owner Meta Platforms META.O and Alphabet GOOGL.O, analysts said on Wednesday. But, revenue from brand advertising, aimed at promoting a brand's image, declined 11%, the company said in its quarterly earnings report on Tuesday.
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Snap's challenges, including privacy changes on Apple Inc AAPL.O devices that have made it harder for marketers to collect data, are not unique to the company. Alphabet's Google, the world's largest digital advertising platform, has long fared better than other ad-dependent companies because brands consider ads on Google searches crucial to driving website visits or other consumer actions. Similarly, Meta has said in previous quarters that the bulk of its revenue comes from direct response advertising.
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17322.0
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2023-02-01 00:00:00 UTC
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Apple distributor Redington's Q3 profit falls as costs outpace topline growth
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AAPL
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https://www.nasdaq.com/articles/apple-distributor-redingtons-q3-profit-falls-as-costs-outpace-topline-growth
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nan
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nan
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CHENNAI, Feb 1 (Reuters) - Redington (India) Ltd REDI.NS, the country's biggest Apple and IT products distributor, reported a 2% fall in third-quarter profit on Wednesday, as ballooning expenses countered record revenue.
For Redington, which distributes electronic products made by Apple AAPL.O and Dell DELL.N among others, consolidated profit slipped to 3.8 billion rupees ($46.4 million) for the quarter ended Dec. 31.
Companies across the globe have had to battle higher transportation and raw material costs as the Russia-Ukraine war led to an increase in the prices of several major commodities.
Redington's expenses rose about 32% to 212.2 billion rupees, narrowly outpacing a near-31% jump in revenue from operations to a record 216.74 billion rupees.
The company said revenue from Singapore, India and South Asia (SISA) increased nearly 29%, while that from the rest of the world, including the Middle East, Turkey, and Africa, rose around 32%.
Chennai-based Redington's topline went up even as the gadget distributor cautioned demand for remote-working equipment likely declined with people gradually returning to offices.
High inflation and interest rates as well as weaker currencies in markets where Redington operates posed further challenges.
Redington shares, which rose 25% in 2022 and 2% last month, closed over 1% lower at 182.65 rupees on Wednesday.
($1 = 81.8750 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)
((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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For Redington, which distributes electronic products made by Apple AAPL.O and Dell DELL.N among others, consolidated profit slipped to 3.8 billion rupees ($46.4 million) for the quarter ended Dec. 31. CHENNAI, Feb 1 (Reuters) - Redington (India) Ltd REDI.NS, the country's biggest Apple and IT products distributor, reported a 2% fall in third-quarter profit on Wednesday, as ballooning expenses countered record revenue. The company said revenue from Singapore, India and South Asia (SISA) increased nearly 29%, while that from the rest of the world, including the Middle East, Turkey, and Africa, rose around 32%.
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For Redington, which distributes electronic products made by Apple AAPL.O and Dell DELL.N among others, consolidated profit slipped to 3.8 billion rupees ($46.4 million) for the quarter ended Dec. 31. CHENNAI, Feb 1 (Reuters) - Redington (India) Ltd REDI.NS, the country's biggest Apple and IT products distributor, reported a 2% fall in third-quarter profit on Wednesday, as ballooning expenses countered record revenue. Redington's expenses rose about 32% to 212.2 billion rupees, narrowly outpacing a near-31% jump in revenue from operations to a record 216.74 billion rupees.
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For Redington, which distributes electronic products made by Apple AAPL.O and Dell DELL.N among others, consolidated profit slipped to 3.8 billion rupees ($46.4 million) for the quarter ended Dec. 31. CHENNAI, Feb 1 (Reuters) - Redington (India) Ltd REDI.NS, the country's biggest Apple and IT products distributor, reported a 2% fall in third-quarter profit on Wednesday, as ballooning expenses countered record revenue. Redington's expenses rose about 32% to 212.2 billion rupees, narrowly outpacing a near-31% jump in revenue from operations to a record 216.74 billion rupees.
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For Redington, which distributes electronic products made by Apple AAPL.O and Dell DELL.N among others, consolidated profit slipped to 3.8 billion rupees ($46.4 million) for the quarter ended Dec. 31. CHENNAI, Feb 1 (Reuters) - Redington (India) Ltd REDI.NS, the country's biggest Apple and IT products distributor, reported a 2% fall in third-quarter profit on Wednesday, as ballooning expenses countered record revenue. Companies across the globe have had to battle higher transportation and raw material costs as the Russia-Ukraine war led to an increase in the prices of several major commodities.
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17323.0
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2023-02-01 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-6
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Launched on 11/08/2005, the SPDR Portfolio S&P 500 ETF (SPLG) 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 State Street Global Advisors. It has amassed assets over $15.79 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
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
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 23.72% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF return is roughly 6.27% so far this year and is down about -8.22% in the last one year (as of 02/01/2023). In the past 52-week period, it has traded between $41.93 and $54.30.
The ETF has a beta of 1 and standard deviation of 25.35% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 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, SPLG is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $307.04 billion in assets, SPDR S&P 500 ETF has $381.31 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR Portfolio S&P 500 ETF (SPLG): 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 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 11/08/2005, the SPDR Portfolio S&P 500 ETF (SPLG) 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 11/08/2005, the SPDR Portfolio S&P 500 ETF (SPLG) 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 SPDR Portfolio S&P 500 ETF (SPLG): 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 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Alternatives SPDR Portfolio S&P 500 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 6.50% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $15.79 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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17324.0
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2023-02-01 00:00:00 UTC
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EXCLUSIVE-EU may miss gigabit target, more investments needed, telcoms group says
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AAPL
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https://www.nasdaq.com/articles/exclusive-eu-may-miss-gigabit-target-more-investments-needed-telcoms-group-says
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By Foo Yun Chee
BRUSSELS, Feb 1 (Reuters) - The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO.
The study by Analysys Mason comes as the bloc considers the possibility of getting Alphabet Inc's Google GOOGL.O, Meta META.O, Amazon.com Inc AMZN.O, Netflix NFLX.O, Apple AAPL.O and Microsoft MSFT.O to bear some of the network costs.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and their peers say this should be seen as a fair share contribution from the six content providers which account for more than half of data internet traffic.
(Reporting by Foo Yun Chee, Editing by Louise Heavens)
((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 study by Analysys Mason comes as the bloc considers the possibility of getting Alphabet Inc's Google GOOGL.O, Meta META.O, Amazon.com Inc AMZN.O, Netflix NFLX.O, Apple AAPL.O and Microsoft MSFT.O to bear some of the network costs. By Foo Yun Chee BRUSSELS, Feb 1 (Reuters) - The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and their peers say this should be seen as a fair share contribution from the six content providers which account for more than half of data internet traffic.
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The study by Analysys Mason comes as the bloc considers the possibility of getting Alphabet Inc's Google GOOGL.O, Meta META.O, Amazon.com Inc AMZN.O, Netflix NFLX.O, Apple AAPL.O and Microsoft MSFT.O to bear some of the network costs. By Foo Yun Chee BRUSSELS, Feb 1 (Reuters) - The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO. (Reporting by Foo Yun Chee, Editing by Louise Heavens) ((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 study by Analysys Mason comes as the bloc considers the possibility of getting Alphabet Inc's Google GOOGL.O, Meta META.O, Amazon.com Inc AMZN.O, Netflix NFLX.O, Apple AAPL.O and Microsoft MSFT.O to bear some of the network costs. By Foo Yun Chee BRUSSELS, Feb 1 (Reuters) - The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and their peers say this should be seen as a fair share contribution from the six content providers which account for more than half of data internet traffic.
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The study by Analysys Mason comes as the bloc considers the possibility of getting Alphabet Inc's Google GOOGL.O, Meta META.O, Amazon.com Inc AMZN.O, Netflix NFLX.O, Apple AAPL.O and Microsoft MSFT.O to bear some of the network costs. By Foo Yun Chee BRUSSELS, Feb 1 (Reuters) - The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC, Telecom Italia TLIT.MI and their peers say this should be seen as a fair share contribution from the six content providers which account for more than half of data internet traffic.
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17325.0
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2023-02-01 00:00:00 UTC
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Could Big Tech Drive ESPN Out of Business?
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AAPL
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https://www.nasdaq.com/articles/could-big-tech-drive-espn-out-of-business
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nan
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Once the go-to spot for sports fans, ESPN may now be losing its lead. Big tech companies are minting big deals to scoop up sports rights and the fans that come along with them.
Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). These big tech behemoths may not seem like your traditional sportscasters, but they're all jumping into the bidding game for sports rights, content, and talent. This heightened competition comes at a time when ESPN is facing pressure from increased cord-cutting and a weakening advertising market.
Former Disney CEO Bob Chapek fiercely defended the importance of ESPN as part of the overall Walt Disney business. Current CEO Bob Iger - the former helmsman who recently returned to again lead the company - was a strong defender of ESPN during his first term. But with the shifting environment, can Iger still make ESPN work?
Big names, big budgets
According to Variety, the value of U.S. TV and streaming sports rights will reach $26.6 billion in 2023, up 75% from $15.2 billion in 2015.
Two factors are driving those prices higher. First of all, live sports remain one of the few ways to get many people to watch the same thing simultaneously. That's important for drawing in big advertising dollars. Second, networks with long-term sports contracts are essential for distributors and subscribers. In the cord-cutting era, this has substantially increased the relative value of sports.
To capitalize on these trends, big tech has made a push for sports streaming rights. When Twitter originally purchased the rights to simulcast Thursday Night Football in 2016, it paid just $10 million. Six years later, Amazon is paying $1 billion per year for exclusive rights to weekly games.
Alphabet's YouTube is the new home of the NFL's Sunday Ticket package. For $2 billion per year, YouTube will be able to stream out-of-market NFL games, granting fans access to games not shown on local networks.
In mid-2022, Apple, which was also interested in Sunday Ticket, agreed to pay $2.5 billion for the rights to all Major League Soccer (MLS) regular season games and Leagues Cups for the next 10 years. The iPhone maker is also shelling out $85 million per year to Major League Baseball (MLB) to cast about 50 Friday Night Baseball games a season in the U.S. and eight other countries.
ESPN, though, continues to battle for rights. In October 2022, it secured the rights to Formula 1 racing for another three years, reportedly paying $85 million annually for a three-year contract. The rights were especially coveted after the sport's recent rise in popularity. In 2018, ESPN paid $5 million per year for Formula 1 rights.
There's a reason big tech companies are so interested in sports rights: They bring in subscribers. Amazon said it had its best three hours of Prime membership sign-ups for the debut Thursday Night Football match this season. While that means ESPN's competition is sure to continue, it also gives the company strong pricing power to mitigate the impact of cord-cutting on its business.
Can ESPN maintain its worldwide leadership?
As part of Disney, ESPN certainly has the resources to compete with its deep-pocketed competitors.
ESPN is, in and of itself, a profitable business. Disney's domestic linear networks generated more operating profits for the business than any other segment in fiscal year 2022, bringing in $8.5 billion. ESPN plays a substantial role in that segment, as it anchors the cable bundle and sells a lot of advertising. (ESPN+ falls under Disney's Direct-to-Consumer segment, along with all the company's other streaming services.)
Still, sports rights are pressuring profits. While the operating margin for linear networks remained stable in 2021 and 2022, hovering right around 30%, that metric has contracted over the past five years. In 2017, the operating margin for linear networks was nearly 34%. In that same time, sports rights commitments for the next year have climbed from about $6.6 billion to $10.8 billion.
As Amazon, Apple, Google, and others enter the bidding wars for sports rights, ESPN will face pressure to keep what's important and let some properties go. For example, it'll have to fend off Amazon when the NBA broadcasting rights come up for auction next year. The retailer is reportedly very interested in adding a set of games to its catalog, and the NBA is considering a streaming-only package.
ESPN also needs to be wary of letting less popular sports rights go to tech companies. ESPN got its start by buying up sports rights nobody wanted, growing into the behemoth it is today on the back of NASCAR and NCAA basketball, which it helped to popularize. Second-tier sports, like fighting or professional pickleball or alternative football leagues such as the XFL, could turn out to be valuable properties in the future. And, they won't cost very much to lock up long-term.
The good news for ESPN lovers and Disney shareholders is that the media mogul holds the brand, the personnel, and the profits to go after the sports rights that offer the best long-term value and opportunities. While competition from big tech is hurting its margins, it's not going to put the company out of business. Sports rights remain a strong business, and ESPN is in the catbird seat when it comes to making deals. It should remain a profit center for Disney for years to come.
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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. Adam Levy has positions in Alphabet, Amazon.com, Apple, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). As Amazon, Apple, Google, and others enter the bidding wars for sports rights, ESPN will face pressure to keep what's important and let some properties go. ESPN got its start by buying up sports rights nobody wanted, growing into the behemoth it is today on the back of NASCAR and NCAA basketball, which it helped to popularize.
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Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Former Disney CEO Bob Chapek fiercely defended the importance of ESPN as part of the overall Walt Disney business. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). As Amazon, Apple, Google, and others enter the bidding wars for sports rights, ESPN will face pressure to keep what's important and let some properties go. The good news for ESPN lovers and Disney shareholders is that the media mogul holds the brand, the personnel, and the profits to go after the sports rights that offer the best long-term value and opportunities.
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Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Six years later, Amazon is paying $1 billion per year for exclusive rights to weekly games. While that means ESPN's competition is sure to continue, it also gives the company strong pricing power to mitigate the impact of cord-cutting on its business.
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17326.0
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2023-01-31 00:00:00 UTC
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Apple (AAPL) to Report Q1 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-report-q1-earnings%3A-whats-in-the-offing-0
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nan
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Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.
Apple expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter (the September-end quarter) due to an unfavorable year-over-year impact from the forex of roughly 10%.
The Zacks Consensus Estimate for revenues is pegged at $121.21 billion, indicating a decline of 2.21% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $1.93 per share, unchanged over the past 30 days and indicating an 8.1% decrease from the figure reported in the year-ago quarter.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Apple’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 6.26% on average.
Let’s see how things have shaped up for the upcoming announcement.
iPhone Revenues to Suffer From China Disruptions
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 47% of net sales in the last reported quarter, wherein sales increased 9.7% year over year to $42.63 billion.
Our estimate for fiscal first-quarter iPhone net sales is pegged at $60.96 billion, down 14.9% year over year.
Apple is expected to have suffered from disruptions at its China partner Foxconn’s factory in Zhengzhou, as well as shrinking demand. We expect Apple to have shipped roughly 70 million iPhones in the first quarter of fiscal 2023.
Per the latest Canalys report on worldwide smartphone shipments, Apple expanded its market share to 25% in fourth-quarter 2022, beating Samsung’s 20%.
Services Growth to Slow Down in Q1
Apple expects Services revenue growth to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, and weakness in digital advertising and gaming.
In the fiscal fourth quarter, Services revenues grew 5% from the year-ago quarter to $19.19 billion and accounted for 21.3% of sales.
Nevertheless, an expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store.
Apple has more than 900 million paid subscribers across its Services portfolio. App Store has been grabbing the attention of prominent developers from around the world, helping the company to offer exciting apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows despite strong competition from Netflix NFLX, as well as services from Disney DIS and Amazon AMZN.
Per a report by JustWatch, Amazon prime video is the leader in the streaming market in the United States with a 21% market share, trailed by Netflix at a 20% market share and Disney+ at a 15% market share.
Meanwhile, Apple TV+ now has a 6%global marketshare, down 1% in fourth-quarter fiscal 2022.
Apple has been keeping no stone unturned to make TV+ service a success. At a more affordable price of $4.99, Apple TV+ has been benefiting from quality content with its strong portfolio of original shows and movies.
Our estimate for fiscal first-quarter Services net sales is pegged at $20.21 billion, up 3.5% year over year, lower than 5% growth reported in the previous quarter and 23.8% in the year-ago quarter.
Wearables’ Growth to Remain Strong
Apple has been dominating the wearables market, thanks to the strong adoption of the Apple Watch.
This Zacks Rank #3 (Hold) company’s Fitness+ subscription service, built on Apple Watch, has been a game changer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Fitness+ tracks health and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
Apple Watch’s adoption rate has been growing rapidly. More than two-thirds of customers, who purchased it in fourth-quarter fiscal 2022, were first-time customers.
Our estimate for Wearables, Home and Accessories revenues stands at $15.99 billion, up 8.8% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The consensus mark for earnings is pegged at $1.93 per share, unchanged over the past 30 days and indicating an 8.1% decrease from the figure reported in the year-ago quarter.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. Quote Apple’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 6.26% on average.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. Quote Apple’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 6.26% on average.
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Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Our estimate for fiscal first-quarter Services net sales is pegged at $20.21 billion, up 3.5% year over year, lower than 5% growth reported in the previous quarter and 23.8% in the year-ago quarter.
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17327.0
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2023-01-31 00:00:00 UTC
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Big Tech Earnings Preview: Time to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/big-tech-earnings-preview%3A-time-to-buy-apple-stock
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nan
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The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2.
Investors are on edge for better-than-expected guidance after Microsoft’s MSFT outlook was underwhelming despite the company beating its fiscal second-quarter earnings expectations last week.
Let’s see what’s in store for Apple stock specifically heading into its quarterly report this week.
Momentum
As we begin the new year, tech stocks are off to their best start in over 20 years with the Nasdaq up +10% in January and Apple stock has been on par with the technology indexes rally.
After a brutal 2022 for tech stocks, recent rallies were supported by December CPI numbers suggesting inflation is beginning to ease. This largely reflects why investors are hoping that Apple along with Microsoft’s other big tech peers can offer better guidance and keep the momentum going in the broader technology sector.
Image Source: Zacks Investment Research
Quarterly Estimates
The Zacks Consensus for Apple’s fiscal first quarter earnings is $1.93 per share which is on par with the Most Accurate estimate indicating Apple should reach expectations. Earnings are expected to be down -8% year over year compared to Q1 2022 EPS of $2.10 per share. First-quarter sales are forecasted to be $121.21 billion, down -2% from the prior year quarter.
Apple’s fiscal 2023 earnings are now projected to be up 1% and pop another 8% in FY24 at $6.68 per share. Earnings estimate revisions have slightly trended down over the last quarter. On the top line, sales are forecasted to rise 2% in FY23 and jump 5% in FY24 to $425.08 billion.
Image Source: Zacks Investment Research
Services & iPhone Growth
Among Apple’s overall top and bottom-line growth, Wall Street will be monitoring the individual growth and expansion of Apple’s paid subscription services along with its traditional source of income from iPhone revenue.
The growth of Apple’s paid services, in particular, has been very intriguing and a strong quarter in core product categories could lead to analysts hiking their price target for AAPL stock if the company is also able to offer positive or better-than-expected guidance in its outlook.
During Q4, revenue from Apple’s Services segment was $19.19 billion, up 5% from Q4 2021. This helped Apple achieve an overall record fourth quarter in terms of revenue and EPS with iPhone sales up 9% year over year during Q4 at $42.63 billion despite both segments missing analysts estimates.
Image Source: Zacks Investment Research
Historical Performance & Valuation
Over the last year, Apple stock is down -17% to underperform the S&P 500’s -13% but slightly top the Nasdaq’s -19%. In the last decade, Apple’s +788% has largely outperformed the broader indexes and also topped its big tech peers.
Image Source: Zacks Investment Research
Trading around $144 per share and 23.1X forward earnings Apple stock trades 40% below its decade high of 38.6X and closer to the median of 15.7X. Apple’s PEG ratio of 1.8 is on par with the benchmark and also below its decade-long high of 2.98 and close to the median of 1.42 with the industry average at 2.51.
Image Source: Zacks Investment Research
Bottom Line
Apple’s long-term growth prospects remain attractive, with the stock landing a Zacks Rank #3 (Hold) going into its fiscal Q1 earnings. More near-term upside will largely depend on the guidance. For now, holding on to shares of AAPL at their current levels could continue to be rewarding especially if the company can continue growing its paid subscription services.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The growth of Apple’s paid services, in particular, has been very intriguing and a strong quarter in core product categories could lead to analysts hiking their price target for AAPL stock if the company is also able to offer positive or better-than-expected guidance in its outlook. The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. For now, holding on to shares of AAPL at their current levels could continue to be rewarding especially if the company can continue growing its paid subscription services.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. The growth of Apple’s paid services, in particular, has been very intriguing and a strong quarter in core product categories could lead to analysts hiking their price target for AAPL stock if the company is also able to offer positive or better-than-expected guidance in its outlook.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. The growth of Apple’s paid services, in particular, has been very intriguing and a strong quarter in core product categories could lead to analysts hiking their price target for AAPL stock if the company is also able to offer positive or better-than-expected guidance in its outlook.
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The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. The growth of Apple’s paid services, in particular, has been very intriguing and a strong quarter in core product categories could lead to analysts hiking their price target for AAPL stock if the company is also able to offer positive or better-than-expected guidance in its outlook. For now, holding on to shares of AAPL at their current levels could continue to be rewarding especially if the company can continue growing its paid subscription services.
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2023-01-31 00:00:00 UTC
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After Hours Most Active for Jan 31, 2023 : C, SNAP, HBAN, EMBC, OPEN, AAPL, PPL, PARA, AMD, BAC, PFE, AMCR
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-31-2023-%3A-c-snap-hban-embc-open-aapl-ppl-para-amd-bac-pfe
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The NASDAQ 100 After Hours Indicator is down -30.43 to 12,071.5. The total After hours volume is currently 181,582,492 shares traded.
The following are the most active stocks for the after hours session:
Citigroup Inc. (C) is -0.07 at $52.15, with 19,894,238 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 $1.68. C's current last sale is 86.92% of the target price of $60.
Snap Inc. (SNAP) is -1.6 at $9.96, with 13,860,642 shares traded. Smarter Analyst Reports: Snap Plunges 22% After-Hours on Disappointing Q3 Results
Huntington Bancshares Incorporated (HBAN) is unchanged at $15.17, with 7,071,001 shares traded. HBAN's current last sale is 101.13% of the target price of $15.
Embecta Corp. (EMBC) is -0.001 at $26.39, with 5,898,455 shares traded. EMBC's current last sale is 99.58% of the target price of $26.5.
Opendoor Technologies Inc (OPEN) is -0.03 at $2.16, with 5,343,558 shares traded. OPEN's current last sale is 54% of the target price of $4.
Apple Inc. (AAPL) is -0.32 at $143.97, with 5,298,666 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.93. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
PPL Corporation (PPL) is unchanged at $29.60, with 4,774,808 shares traded. As reported by Zacks, the current mean recommendation for PPL is in the "buy range".
Paramount Global (PARA) is -0.07 at $23.09, with 4,397,653 shares traded. As reported in the last short interest update the days to cover for PARA is 8.861623; this calculation is based on the average trading volume of the stock.
Advanced Micro Devices, Inc. (AMD) is +2.6995 at $77.85, with 4,367,907 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Bank of America Corporation (BAC) is -0.04 at $35.44, with 3,416,944 shares traded. BAC's current last sale is 90.29% of the target price of $39.25.
Pfizer, Inc. (PFE) is -0.12 at $44.04, with 3,231,602 shares traded. Smarter Analyst Reports: Understanding Pfizer’s Newly Added Risk Factors
Amcor plc (AMCR) is unchanged at $12.06, with 2,697,991 shares traded.AMCR is scheduled to provide an earnings report on 2/7/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.18 per share, which represents a 18 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 -0.32 at $143.97, with 5,298,666 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. As reported in the last short interest update the days to cover for PARA is 8.861623; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.32 at $143.97, with 5,298,666 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.32 at $143.97, with 5,298,666 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.32 at $143.97, with 5,298,666 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. C's current last sale is 86.92% of the target price of $60.
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17329.0
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2023-01-31 00:00:00 UTC
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Another Chance to Look Back and Score Stock Picks
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AAPL
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https://www.nasdaq.com/articles/another-chance-to-look-back-and-score-stock-picks
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Some stocks that have been crushed recently look a lot better if you just step back and take a longer-term view.
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.
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This video was recorded on January 18, 2023.
David Gardner: Thirty separate times, about every 10 weeks on this podcast over six years, I picked five stocks. I chose a theme that made sense to me at the time sometimes sublime, sometimes this week included silly, and then I thought to myself, what are the five best recommendations that I can come up with for stocks that fit that theme? Aiming of course, always to beat the market, the S&P 500 because otherwise, why are we bothering? Then one year later we review the picks, and then another year passes the two-year review two years later. We never forget, we hope you wouldn't also, we score everything transparently, and accountably because we're Fools, and you should expect that of us and I would say, expect that of yourself too.
Well, then comes the three-year review, which is going to be the most telling and why is that? First, because three years have passed since I picked those five stocks, we really can be smarter about what has happened and why and what we can learn with the greater passage of time. That's the smarter part. But if I've done my job well, then we'll also be happier, and we hope richer too. Now, that three-year review and we have one of those this week is also important because most of the time we end the game right there. We're going to keep holding those stocks in real life mind you, you should too, if you own them. But if I kept reviewing all 30 of my samplers in years 4, 5, and 6, well, we wouldn't have time to do much else on this podcast. Thirty separate times I picked five stocks what I've also called my five-stock samplers, and we're going to review two of those samplers this week. Five stocks rolled up at random, and five stocks that spark joy. Review them we will with my two guest star analysts, Sanmeet Deo and Asit Sharma. Does rolling up random stocks work? Does picking stocks that spark joy? Does that work? Only on this week's, Rule Breaker Investing.
Welcome back to Rule Breaker Investing. I'm excited this week to be reviewing how our five-stock samplers have done. It's a funny discipline. Being a stock picker you would know this too I hope dear listener, many of us do at The Motley Fool. I'm a big sports fan. When something amazing happens in sports, the feedback is instant. The crowd stands up and cheers, the athlete usually gets to do a dance these days depending on what sport we're talking about, everybody celebrates its all over the news that night. Highlights, final score, we all know it. What you and I do, fellow listener as investors, is the exact opposite. We take actions that we hope will win, that we think are exciting, but we don't know five seconds later if it worked.
We don't know a day later. We don't usually know a year or two or three later if we did it right. Did it work? But when it does work, I do like to celebrate it because this is our moment. This is our time as non-athletes to do a little dance, to put some numbers up on the scoreboard years later and maybe to cheer. As I mentioned at the top we have two five-stock samplers to review, five stocks rolled up at random that was picked two years ago in January of 2021 and five stocks that spark joy, the 23rd ever five-stock sampler of 30, and we will be sending five stocks that spark joy to Foolhalla at the end of this week's episode. Foolhalla, the Valhalla where each of our sampler heroes, whether hero or goat, proceeds Foolhalla, the honored hall, festive with me.
Five stocks that spark joy will arrive in Foolhalla at the end of this podcast to join its brethren and sistren , the 22 that have already gone before. Speaking of before, a couple of quick notes before we get started. The first is a reminder about why we do this. I feel like I say this most of our reviewapaloozas, so long time listeners will have heard me say this before, but I think it's really important to score ourselves, not just in investing but in lots of other things in life. Well, I already confess my love of the hydrates smart water bottle in recent months. These days, I'm regularly scoring how much I'm hydrating from one day to the next, and I'm also regularly scoring, I wear my Apple watch to sleep every night I score my sleep, I get a three digit number the next morning from my sleep watch app.
I think it's helpful to score because if you don't score, you're not really sure if you're doing it right. You're not sure when you're winning and when you're losing now. Do we need to be scoring everything? Certainly not. There are many things, many aspects I think of our day-to-day life that probably should never be scored. But I think investing is one of those things that should be scored. After all, as a fellow Fool, you and I are buying stock directly in companies. I realize a lot of us may have funds, various forms of diversification, but at least for me, anytime I pick an individual stock, I feel like I'm giving the cold shoulder, talk to the hand, I'm saying to the market at large because I'm choosing not simply to buy an index fund, I'm choosing a company because I think it's going to outperform the index funds.
I think I'm going to do better and I believe that my public record and my own private record shows that over 30 plus years I've done way, way better than if I just bought index funds or diversified basket. Now, I realize many people will just do that. In fact, many fellow Fools hearing me now probably are doing some version of that, and I'm fine with that. When Tom and I wrote The Motley Fool Investment Guide, the first edition which came out in 1996, we started by saying everybody could just go with Jack Bogle and by the Vanguard diversified index fund, whether the total market index fund, which certainly is still exists today or the S&P 500 index fund, those are massive, massive pools of money today, decades later. We are huge fans of those for a lot of us mailing it in and just doing that, saving money which is the important thing, invested in every two weeks, that will lead to financial freedom, and we are huge fans of that approach.
The patience, the resilience, the persistence through good markets and bad to keep saving and keep investing. Yet, he's certainly a past guests on this podcast where Jack Bogle and I anyway, I think Tom would agree with him as well, where we part ways is we really do believe that you can and should buy stock directly in great companies. Skip the bad ones, skip the mediocre ones, focus on greatness, and we believe, and again, I think my public records shows that you will outperform the indices especially if you invest Foolishly, which means to use time and patience on your side. Scoring is the only way we can really know whether it's working or not, and so scoring is exactly what we're doing this week on this podcast as we look back at these two five-stock samplers.
In fact, I tweeted out today a line from Roz Brewer. Roz Brewer, I believe is today the CEO of Boots Alliance Walgreens. I think she's the highest paid female executive in America, but I was quoting her a few years ago on this podcast in a great quotes podcasts, this quote popped up. Roz Brewer's said, "You can and should set your own limits and clearly articulate them. This takes courage", she went on, "but it also is liberating and empowering and often earns you respect." You can and should set your own limits and clearly articulate them. I think that's exactly what we're doing when we're scoring ourselves in this podcast anywhere in public.
Setting your own limits, clearly articulating them will make you a much better investor overtime in the wins and the losses and we have both of those to share with you this week. Indeed, before we get started, I want to mention next week, of course, your Rule Breaker Investing, mailbag, our email address, rbi@fool.com. If you have a question, a thought, a reaction. We started the year with old, new, borrowed, and blue, and last week, a bunch of stock stories for you and of course, some reflections and thoughts about five-stock samplers and the stocks therein. If you have any questions about these companies, any thoughts about anything that happened in Rule Breaker them this month, rbi@fool.com, or you can tweet us @RBI podcast.
Well it's time to strap in because whenever we do a review of palooza, we're getting in the way back machine and it's time for a little bit of way-back music Rick Engdahl. Here we go back in time. Where are we going to land? We've alighted on January 20th of the year 2021. Around two years ago, this week, check it, the S&P 500 in these two years is up 3.8 percent. It used to be up a lot more some months ago, but it's now up 3.8 percent where it was two years ago. We're going to be comparing all five of the stocks in five stocks rolled up at random to that 3.8 percent bogey. Now here to join me as he did last year at this time, looking at these stocks, he's back Sanmeet there. How are you, sir?
Sanmeet Deo: Hi David. How are you? I'm doing great.
David Gardner: I'm doing really well. I do see you've got your hook and horns, burnt orange, University of Texas Longhorn's, hat on. I do note that your basketball team has higher rank than mine, North Carolina Tar Heels right now. Congratulations.
Sanmeet Deo: Thank you. Yeah, we're excited too. Excited for the seasons, see how we progress and we'll see what run they make in their tournament.
David Gardner: It does feel as if all of college basketball, it's your builds toward March Madness. I think the greatest event in sports, at least that's my take each year, but it's fun following these teams all the way through the regular season. I think you and I talked sports a little each time you come on, so on me. But I also wanted to ask you about ChatGPT because I'm curious. Have you used this yet? I know a lot of people are already very familiar. A lot of our fellow Rule Breakers, know this thing, but we also have a lot of listeners probably hearing that phrase for the first time. It's a popular example of artificial intelligence, chat bot. It is free to sign up for. Sanmeet, have you signed up yet?
Sanmeet Deo: I have not signed up and I've been meaning to try it, especially as a [Alphabet's] Google shareholder. I definitely want to keep track of what's happening with ChatGPT, because there's the headlines of will ChatGPT kill Google and that's maybe a little outlandish, but I've been itching to try and for actually I did go on the website once briefly with some friends and it said that it was it was too busy, so it couldn't even get on.
David Gardner: Yeah. As somebody who's been trying to use it about each day or so for the last month, I will note that you can almost always get in if you keep refreshing over time. Yet, seems to be about one in three or one in four times that I sign in. It's saying it's too busy. I think Sanmeet, we can all guest that in time. This is not going to be a free experience anymore. It's going to be a premium experience and maybe that will help give the servers a breather.
Sanmeet Deo: Yeah, I just saw a headline and I think there was this morning about Microsoft who has a big investment, is going to make a big investment, OpenAI, the creator, ChatGPT about charging for it. Definitely want to get in on that before they start charging.
David Gardner: Absolutely. Well, I think it's a fascinating time we're seeing, certainly starting with a lot of the image, artificial intelligence, a lot of the typing a phrase, and we'll give you original artwork, which started, I think last summer and then I think ChatGPT really in earnest in the late autumn. Now also hearing about Microsoft's, there's one that you speak into it with some audio clips and then it can take that voice and it could just make it say anything. There are some really interesting things happening, a little bit crazy sounding. Yet that's how so much of bleeding-edge technology strikes us sounding crazy initially, but it's getting more and more due rigor. We will see. Let's move on to five stocks rolled up at random now. Sanmeet, I'm not expecting you went back and listened to the original podcast at all, but do you remember how these stocks were picked?
Sanmeet Deo: No. I tried to focus on the past year, what's actually been happening, but they were just random, aren't they?
David Gardner: Yeah. Basically, I took all of the stock picks that I'd picked in Stock Advisor and Rule Breakers, two of the Motley Fool's biggest services. I just randomized from that roughly 300 or so stock total 10 of them. Then I thought, well, of the 10, which are the five that I would favor, and that is five stocks rolled up at random. Not completely random, although randomizing from a large pool and then exerting a little choice to say, I think I'd pick this one over that one, and that's how we ended up with these five companies. I'll present them alphabetically first and then Sanmeet, let's you and I talked through them, the five companies rolled up at random two years ago this week, Apple, Atlassian Corp, SolarEdge Technologies, Starbucks, and last is indeed least. A lot of times you hear the phrase last but not least last is very much the least Teladoc, coming in at the letter T. Apple, Atlassian, SolarEdge, Starbucks, and Teladoc.
I was checking back Sanmeet. I could never come up with this on my own, but I do use my Apple calendar to follow like what it was I doing on January 20, 2021. I'd forgotten. It was inauguration day that day. These stocks could have been five stocks rolled up at inauguration because that's what was happening on that particular day. But let's start with, as we always do, the worst performers. I've already spoiler alert, spoiled that one. Teladoc was in fifth place when you and I reviewed this a year ago. Sanmeet and Teladoc is very much even more in fifth place. This year the stock was at $246.74 two years ago when I picked it. Today is at $27.82. This stock is down 89 percent. One of the very worst stock pick I've ever made in a five-stock samplers. Sanmeet, what has been happening with Teladoc?
Sanmeet Deo: Well, Dave, Teladoc was a promising platform in the pandemic era when we're all stuck at home, we can go see our doctors or was too scared to maybe go see her doctors in-person. Wanted to say safe. They're telehealth platform gained a ton of prominence and users and almost looked like it was the next great thing in healthcare technology. Ever since that, as we've seen with many technology companies since the pandemic, the big boom came down with a big bust, and now we're normalizing with some of the companies of who can survive and still continue to do well in a new normal and new operating environment. There's just been a ton of uncertainty with this business. I mean, they've had declining operating metrics over the past year with utilization, visits, platform enabled sessions.
They've been having quite a management guidance game where almost every quarters, the beginning of the year they revised their 2022 outlook to reflect dynamics and the direct-to-consumer mental health and chronic condition markets which are experiencing pressure from higher advertising costs and elongated sales cycles, employers were delaying their decision-making to because of macro uncertainty. As we all know, recession and inflation has been the main concerns for any employer consumer in this market. They've just had issues with guidance. Guidance has been weak that causes stock to come down. They've had a heavy reliance on BetterHelp, which is their telehealth mental health app, which was very popular and a great platform for people to speak with therapists over message or video that grew very strongly during the pandemic, as one would imagine with so much so many people sitting at home and having too many thoughts and that started to slow.
It's been an issue because they do rely on it heavily for growth and they just haven't been successful with acquisitions. They made a huge acquisition of Livongo Health, which was not favorably looked upon. They've made multiple write-offs from that acquisition. I think it's almost overcome the amount of the acquisition cost. Then also just the big elephant in the room with Amazon making moves, whether it be starting some service related to telehealth or closing it down and then starting something else. They did partner with Amazon in about February early part of the year to bring their virtual healthcare to Alexa. Then that caused speculation of Amazon buying Teladoc completely. Lots of things going on in terms of their business revenue growth has slowed. Metrics, like I said, have been slowing. A lot of uncertainty, a lot of confusion whether this will be the next great healthcare platform that could really take off or will it just be a dud.
David Gardner: Well, Teladoc really is the poster child for telehealth. I mean, the platform. As this company merged with another fellow Rule Breaker pick Livongo, the market cap is up over $30 billion. Sanmeet, I now see the market gap down closer to just four billion-dollars a couple of years later. Anytime I see a company like this, Sanmeet, that has lost so much value and yet it's still in many ways a leader at what it does, I start wondering about the balance sheet and some of the financial dynamics. Because if a company has a fair amount of cash and maybe not much debt or if it's operational cash-flow positive, then one can see it clawing its way back. Sometimes you'd see a screaming buy for a company of this magnitudes still $4 billion down 90 percent from where it was. What do you see when you take a look at the balance sheet and Sanmeet, would you buy Teladoc stock down here at about 27?
Sanmeet Deo: Well, the balance sheet does concern me. They have about a one-and-a-half billion in debt. You have 900 million or so in cash, so that equates to about 600 plus million in net debt. But they are not operating cash flow positive, especially when you take out the highest stock compensation expense and they're not profitable. It's just too much uncertainty, none of balance sheet strength to really warrant me putting a position on in the stock.
David Gardner: I hear you and I'll say that I've been much more successful as an investor when I'm adding to what's winning, then when I'm trying to be a hero in the face of utter implosion, which is how Teladoc feels now to me two years later. One can imagine this five-stock sampler probably not beating the market when one of the stocks is down 90% and the overall market is only up four percent or so from two years ago, let's move from the big loser to the big winner and it's not really even much of a winner, but SolarEdge Technologies ticker symbol SEDG. Sanmeet, it was at 290.7 2 years ago, It's 319 as we speak, it's up 7.5 percent. That puts it about four percentage points of Alpha above and beyond the market average. One can imagine that's not nearly enough to tilt this one into the positive. But what's been going right for SolarEdge?
Sanmeet Deo: Well, as opposed to Teladoc, SolarEdge seems to have a lot of broader trends that are working. His favorite seems to be at the right place at the right time. Even though the stock hasn't truly reflected the strength of his business. They're seeing secular solar demand. There's a lot more favorable government policy toward clean energy in the United States and across the world. There's been the Russia, Ukraine war going on and that's caused higher electricity rates. But that actually has focused Europe, especially who's very reliant on Russia and Ukraine for energy.
David Gardner: We've seen that.
Sanmeet Deo: In a way it could be good because they're rethinking how they source their energy. That's caused a lot of strong demand for SolarEdge in Europe, for markets and Germany, UK, Netherlands. That's definitely been favorable. US solar growth is expected to slow in 2023, but that should be supplanted, like I said, by the European's demand. They're also seeing Taiwan, Japan, and other Asian nations expected to accelerate their expansion of solar build-outs and use. They've had revenue growing over 55 percent on average over the past four quarters. That's still strong. Wall Street has generally been bullish on the sector as well with multiple upgrades which has helped the stock continue to float up and competitors have done well, which has also caused causes them to do well. They're in a good spot.
David Gardner: Well, I certainly like the promise of solar energy. It's always felt to me as of looking backward from the future to today, everyone's going to be using the power of the sun for the most part, the most powerful thing in our solar system to power things. Of course, they're the possibilities of things like nuclear fusion and other alternative sources of energy. It's not nearly mature enough yet to start to really meaningfully replace fossil fuels at huge scale and yet playing the trends and looking backward from the future. I really do like solar energy.
I'm glad to know that this company has, well, I'm going to say tread water, I can't celebrate too much being four percentage points ahead of the market, Sanmeet, but given where the market has been and how bad Teladoc is, we'll take a win here. That's our worst stock, Teladoc, and our best stock here, SolarEdge. The other three, let me know if you'd like to talk about any of these Apple, Atlassian, and Starbucks briefly to account for them. Apple up three percent, Starbucks up two percent, Atlassian down 34 percent. Really we have three trickle upward stocks, Apple, SolarEdge, and Starbucks, none of which is up meaningfully one huge loser and then one significant loser. Atlassian, the Australian player ticker symbol T-E-A-M, has lost a third of its value over the last two years.
Sanmeet Deo: One of the things I like investing and enjoy analyzing is consumer-facing companies and the Peter Lynch philosophy, buy what you know. I'd love to talk a little bit about Starbucks. We've actually had quite a bit and noteworthy a year in terms of lots of news going on. In the early part of the 2022, I believe it was their first-quarter, they recorded their first EPS miss in over five years.
David Gardner: Only per share.
Sanmeet Deo: They're facing cost pressures due to commodity inflation, labor costs, those are impacting margins. Their margins are also being impacted by a massive investment in the workforce that they're planning. China, which is actually a big business for them, has been weak due to the COVID resurgence there. The good thing though is they've still had strong demand from customers and their pricing power is still pretty solid. Big noteworthy thing that happened is the CEO Kevin Johnson, announced his retirement April 2022. The longtime founder and former CEO, Howard Schultz is back again.
Some say he may never actually left. He was always hanging around. He came in. He plans on serving as Interim CEO until about the first quarter of this year. He paused buybacks because he wants to invest in employees and stores. Planning investments of almost a billion in 2022. There's that and they've also been battling unionization efforts all across our stores in the country. Lots going on Starbucks. They did confirm that Laxman Narasimhan will be the next CEO on April 2023.
David Gardner: That's right. Howard only came back as just an Interim CEO and we already know who the next CEO is.
Sanmeet Deo: He plans on coming in April 2023.
David Gardner: I thought it was April Fool's Day, in fact, Sanmeet. This is critically important to Fools everywhere. Keep going.
Sanmeet Deo: That's true. He was formerly the Global Chief Commercial Officer Pepsi. One thing too Howard Schultz, is he's always a fun person to listen to when he talks on calls or investor days. In September, they had a big analyst day outlining numerous the reinvention plan, I believe they called it and numerous initiatives, store investments, more automation, new brewing machine, and most importantly, a three-year goal of achieving 10-12 percent annual revenue growth and about 15-20 percent adjusted earnings growth.
David Gardner: Wow.
Sanmeet Deo: This is interesting. Their margins will be impacted with the big investment, all the cost pressures are facing. That's going to turn off maybe some investors because of slower EPS growth or earnings growth this year. But if their investments pay off and they're able to make some turns into in their business, it could be something that could do well in the next two to three plus years.
David Gardner: Well, let's hope so. I always have a heart for Starbucks. I'm certainly a Starbucks fan myself. Would love as one of my stock picks here in the five-stock sampler, I'm sure I'm sharing it on Apple. Is it $132 share two years ago this week, Sanmeet, 136 today another stock treading water right around where the market is. Do you have any thoughts about Apple?
Sanmeet Deo: The thing I'm actually looking forward to with Apple is what they actually come out with their virtual reality headset. It's either virtually or mixed reality headset.
David Gardner: Expected this spring or summer announcement, right?
Sanmeet Deo: Yeah, some time. Apple with the products they come out with, if it's as attractive as their other products and takes that technology to another level that'd be very exciting.
David Gardner: Yeah, I can imagine as wearables seem to be increasingly acceptable, I might even say popular at least one or two of the younger members of my family are often seen walking around with headphones on and strikes their grandparents says slightly anti-social but increasingly it seems like people are having headphones. Well, let's bring ChatGPT back in for a sec. Start bringing AI chatbots, you can imagine what you're hearing through your headphones about what you should do next or what you could say to this person in response to their all possibilities when we think about AI chat and headphones. It's certainly an interesting time. I'm an Apple shareholder, have been for a long time, continue to hold that stock.
Well, take all five of these together and I'm sorry to say that as of this point anyway, they're down 22.1 percent on average. That includes the very lows of Teladoc and the wimpy highest of a few of these stocks, the market again 3.8 percent. This basket, after two years with one year left is down 25.9 percentage points to the markets. Certainly a big red number, the exact opposite of what I was hoping for two years ago. But speaking of hope, I will continue to hope that five stocks rolled up at random and it will prove the power, Sanmeet of percentile dice, geeky D&D players like me, feeling like if you just get a great basket, you can randomize from that and beat the market. Again, a year for now, I'd love to be able to tell that tail. Teladoc may not come back much so we're going to need one of these stocks to catch fire. Maybe it's the year of Starbucks.
Sanmeet Deo: Maybe the first time I try out ChatGPT, the first thing I'll ask is, what is the stock winner for 2023?
David Gardner: I'm quite sure people are typing that in already. Well, thank you again, Sanmeet for helping me review this five stock sampler and you have a pre-invitation to join me a year from now when the Foolhalla music plays, and I hope it will be a happy tune.
Sanmeet Deo: Thank you, David.
David Gardner: Well, I'm about to welcome back, Asit Sharma to talk about five stocks that spark joy. I'm going to go a little bit further back in time. But before we do that, Rick Engdahl as Sanmeet and I discussed using ChatGPT to pick stocks for us, you raised your hand briefly. Why?
Rick Engdahl: I did in fact ask ChatGPT about some stock picks for the coming year.
David Gardner: I bet you're not the only one. I have to imagine that's happening a lot.
Rick Engdahl: Well, it very responsibly told me that I should do my own research and that is not allowed to give me stocks. Your job is safe right now. Brokamp, I'm not so sure because ChatGPT really did give me some good tips on personal finance when I asked them.
David Gardner: Well, I do think personal finance is probably a little bit more by the book and a little bit easier to speak to. But isn't that great to think that the chat AI bots of the future and even the present might well very responsibly be dispensing helpful personal finance advice worldwide. That sounds like a pretty good future.
Asit Sharma: It was fairly generic advice as you can imagine so maybe that gives Bro time to focus on some more discrete issues.
David Gardner: Well, strapping ourselves back in the way back machine, it's time to go even further back in time. In fact, right around this week, three years ago, the day was January 22, 2020. I hadn't yet read Marie Kondo's book about tidying up. But I was very familiar already with the concept of the con Murray method. Asit Sharma, you and I talked about this a little bit when you visited to talk about this basket of stocks a year ago. Is your house or apartment, is your home high-tier than it was maybe a year ago?
Asit Sharma: My home is tidier than it was a year ago, David. I am thinking that's something of that conversation rubbed off on me. I am the less tidy of the pair that now lives in the house, myself and my wife of many years, but I would love to do this every year.
David Gardner: I truly started to read, actually read Marie's book in the fall. I've already talked about this a little bit on the podcast, but I am dramatically tied here right now, and so it's a delight. I'm in a room surrounded by board games, and there were too many board games in this room. There still are hundreds, but there were even more than that and they were piled up on the floor all over. I was tripping around just trying to go over to my game table to play and now it's rather pristine. The only games left on the shelves are the ones that spark joy and that was the theme and is the theme for this five-stock sampler, five stocks that spark joy. The idea is you're supposed to pick something up and if it doesn't spark joy, toss it, give it away to somebody else, whether it's an old sweater or a stock.
What you're left with then is a sweater drawer of only the sweaters you love, or a stock portfolio of only the stocks you really want to be invested in. That was the theme, the five-stocks, alphabetical by company name, asset, Amazon, Apple, Etsy, Tesla, and Walt Disney, all of which are companies three years ago, and I would still say today three-years later, spark joy, for me. The theory is, if you invest your net worth, your lifetime savings in companies that truly do spark joy, probably not just for you, but that's important, but for the world at large, thinking of Disney, for example, I bet you're going to do pretty well as an investor.
Asit, let's talk through these stocks because it's Foolhalla time for this sampler. Let me say right up front that the market over these three years is up 20.1 percent. We'll just round that to 20 percent. That's what we're trying to beat, what I was trying to beat three-years ago with these five stocks. Let's go to the best performer. I'm really happy to say that Tesla, even though it's well down from its highs, was a stellar stock pick when it was selected as a company that sparks joy. Five-years ago, the price back then, just $37.97 today, the stock, well it's up over 200. In fact, today as we speak, it's up seven percent, the stock at $130 a share so Asit, this one is more than a three-bagger. What's been going right for Tesla?
Asit Sharma: Well, David, the major thing that's been going right for Tesla is that it's reaching the production scale that for a long time, management had predicated their success on. They open their Shanghai factory Gigafactory. They have Gigafactories now in Austin, in Berlin. This is a company which has the capacity to sell all those vehicles that they always posted to shareholders was a key for their success. That's one thing that's been going very right for them. The other thing that I'll mention is they continue to be fiercely innovative in their manufacturing. A very automated company so they have extremely high operating margins, much higher than a typical big automaker. Those things, I think, are in their favor as we even look forward beyond this year.
David Gardner: It's funny to be talking about what's going right at Tesla, Asit because you and I understandably are taking the three-year view for this stock because that's when it was picked and that's what this sampler is all about. But wow, Tesla is well down from its recent highs. Just as recently as mid September, it was at $300 a share, it's just at 130 now. Less than a year ago, it was triple where it is today. We're talking about a company in many ways under siege as CEO, regarded by many as a little bit of a loose cannon and that might be saying, at best, I continue to be generally an Elon Musk fan. I'm grateful for his existence and the many companies that he's scaled for good, I think overtime. Yet he's never been my five-star CEO type, a little bit of a wild man from my standpoint, but we've benefited mightily from buying and holding Tesla stock over a long period of time. Do you have any thoughts either about the state of Elon today or do you use Twitter, Asit, or what do you think about Tesla over the next year?
Asit Sharma: Like to take a stab at all three of those questions, maybe in one ago.
David Gardner: Awesome.
Asit Sharma: The first is that Elon Musk is someone who's always had an appetite for exploring new things, jumping into new ventures. Part of his new persona is not just taking on this latest venture in Twitter, but it's also getting out a little bit more in the public sphere using this big social platform to express views that before really weren't the concern of people who might buy the Tesla brand. Having said that, I think the outcome for Tesla, the stock is still pretty rosy. Again, if you take that 3-5-7 year view, whether this is going to be merely a good investment from here or great investment, I think will be directly correlated with the amount that Elon Musk chooses to focus on Tesla, how much it sparks joy for him, and he decides, maybe I'm tired of running this company, Twitter that isn't a company, that sparked my need to innovate on the manufacturing side. There is also some investor ANX in Tesla. The more recent term, over price cuts the company has been putting through on its vehicles as competition ramps up.
David Gardner: Saw that.
Asit Sharma: From other EV makers. But I do want to say there's something in this. Again, if you're looking past this year, that potentially it's beneficial to Tesla. That is that manufacturers, automakers look at something called cost volume profit analysis. To them, it's like if I sell enough cars to cover my base of fixed cost, then eventually I'm making incremental profit on every car I sell. That's the world of the big automakers. This is the world that Tesla is now entering cause it's reached that scale. It's actually not so unusual to see them now having to adjust sale prices as competition ramps up. Over time they're going to be poised to take more market share. I don't know if they'll ever be the undeniable category leader.
David Gardner: Probably not, don't you think? I was seeing Asit that electric vehicles in 2022 comprised 10 percent of global sales. That's for the first time, by the way. Obviously, well up from just the year before. But as the whole industry goes Electric, I can't imagine that there's going to be just this one, dominant player, but it does seem as if everybody is trying to catch Tesla. Even its installed network of chargers seems so beyond most, not just of any competitor, but the whole competition. It's going to be really interesting to watch. But neither one of us thinks this is a winner-take-all industry. Am I right?
Asit Sharma: You're correct. I think there you have it. Tesla can be a very good investment from here in an increasingly crowded marketplace. It could still be a great investment though, if Elon Musk gets back to his knitting and says, I want to make this more than about electric vehicles and see what manufacturer I can make out of this company. That will be something different. We shouldn't count on that. But I think both scenarios are fine for people who have the stock and are holding for that long-term period.
David Gardner: Awesome. Thank you Asit. Well, let's go from the best performer Tesla up 246 percent versus the market's 20. We start with a big class 226 in the win column. From that we go to the worst performer here. I'm really sorry to say it's Disney. Disney was $144 a share three years ago, it said 100 today, companies lost just about a third of its value down 30.3 percent. Again, with the market up 20, that means Disney is 50 percentage points behind the market averages. What has not been going so right in Disney?
Asit Sharma: It's interesting, you should ask, David today, Disney came out with an investor presentation to refute the claims made by an activist investor. One of the things they pointed out was almost hey, doesn't everyone remember there was a global pandemic and that hit our business model because part of that business model rests on theme parks. That cut into operating profits, and at the same time as we all know, Disney made the big leap into streaming services, which wasn't as easy to transition as some thought. But over time, as the world goes back to normal, and now we have Bob Iger coming back for a two-year stint to right the ship. I think the various components that have always worked very well for Disney are going to come together. The brand and the intellectual property of this company, second to none. I feel good about this making a bit of a comeback now, maybe not in time for the end of this basket, but feeling pretty positive on its prospects from here.
David Gardner: Well, it's a reminder, having just talked with Sanmeet about Howard Schultz riding back in on his Whitehorse to briefly take charge of Starbucks again before handing off the reins to someone else. I don't know whether it was the pandemic or declines in share prices, especially over the last 18 months. Or the activists who sometimes show up in the face of those. But we're seeing some of the well-known CEOs ride back in and take charge again. Well, these are long-term minded players. I don't think they're just trying to save their stock price in the near-term, but they are trying to, right the ship in some cases. Starbucks is actually up over the last few years. Disney though very much not. I regret to say it's 50 percentage points as I mentioned, behind the averages. Good news, we had a plus 226 with Tesla.
Let's look through the other three briefly take them one at a time based on reverse order of performance. In other words, our second worst performer after Disney was Amazon. Now this is a company that I've used extensively through the pandemic. I've bought and held the stock for a long time and I plan to keep doing that Asit. But Amazon, three-years ago this week at 94, this week at 96. It's up two percent. It's been volatile up and down and down recently like Tesla. But just two percent over three years, the market again up 20, so Amazon 18 percentage points behind the market. There are not that many three-year periods under Jeff Bezos, or in this case not entirely anymore under Jeff Bezos where Amazon underperformed. This has been one of them.
Asit Sharma: It's very interesting that over that same period in which Andrew Jassy took over the helm of Amazon. Amazon doubled its physical footprint for its fulfillment and distribution model. It took them 25 years to build the first iteration, two years to double it.
David Gardner: Just incredible scale.
Asit Sharma: Yeah. I feel this is going to pay off for them. All of the capital expenditure that they've committed to over the past few years has obscured the fact that they've now finished this big footprint and they will reap the rewards. If you look at their free cash flow, that free component I think, is going to come back as now they move into maintenance mode on that network. I've seen some projections as much as 78 billion in free cash flow for Amazon in 2026. This is an underappreciated part of their story. I think investors will look at that free cash flow in a few years and wonder for those who don't, why don't I own this? We will see some periods of outperformance.
David Gardner: Yeah. This is a company that surprisingly anyway, to me, given its outstanding performance for the most part, but it dropped below the one trillion dollar market cap markets now back into just 12 digits, not 13 anymore Asit, $972 billion for those playing the market cap game show at home. Amazon, an underperformer. The other two, I'm happy to say both have beaten the market and at least one of them quite substantially. Let's next go to Apple, which is performer number three here, among the mix of five, Apple up 71 percent over the last three years, the market up 20. Apple, well up over the market. Any thoughts about one of the more talked about companies?
Asit Sharma: I love this one big picture thought. In the last fiscal 12 months, Apple had 78 billion sales of its services. David, it only had 22 billion of cost against those services. That 56 billion differential in gross profit paid for all of Apple's overheads for its entire business, it had about $5 billion leftover. You throw in the production side the part of the business that is oriented toward product and you see just how much potential it's still has. I briefly want to say this looking forward today as we're taping, Apple rolled out new MacBooks with its own M2 chips, next
generation of chips. It is designing its own cellular modem chips. It'll be less reliant on Qualcomm about three years, it's moving production out of China into India and Vietnam. All these moves are operational moves. Apple has been gearing up for its next phase of growth in a very thoughtful manner. If you're doing such operational tweaks, who do you want to pushing those forward, but one of the best operational minds on the planet in Tim Cook? I think again, some under appreciated strengths of Apple that we'll see mature over a 2-3, 4-year period.
David Gardner: Having just talked about this company a little while with Sanmeet, where Apple over the last two years was up three percent, and unexciting also ran really just where the market's been. You just dial it back one year. All of a sudden we're talking about this wonderful winter up 70 percent against the market's 20. All of the Alpha didn't occur this year or last year. It really showed up between years three and two ago. It's just a great reminder. I think that we can't really no timing I think. I've always tried with each of the samplers just to find excellent companies that fit my themes. There's never any forensic ability I think on my part or intention to like pick it at the right moment.
But it's funny to think about how differently I regard Apple in this five-stock sampler versus the one we just talked about that's simply one year of duration, less it does remind you of where some of these stocks might go over the next year up or down, and we've seen both. It is fun to note that Apple has a $2.1 trillion market cap. More than twice the overall market cap of Amazon, I tend to think of them as similarly size, but at this point, and I really like what you pin down on there Asit, the software side of this business it's not to say Apple is no longer a hardware company, it is even more so probably that it was certainly 10 years ago. It's just that they added a huge new arrow to their quiver, or maybe a quiver to their quiver when they shifted toward software and services, and we're seeing now the incredible benefits of that thinking played out over not one year or two, but over the long term and the benefits for shareholders.
Asit Sharma: Absolutely.
David Gardner: Well, of Apple's the third best, and it was up 70 percent and Tesla was the best up 246 percent. Somewhere in between is an excellent company and that would be ticker symbol E-T-S-Y, Etsy, which three years ago was at 50. This week, it's at 133.5 stock up more than two times in value, up about 166 percent. Asit, were people buying more from Etsy during the pandemic?
Asit Sharma: They were David, that buying has cooled, but maybe not as much as people would expect. The CFO of Etsy said something at an investors conference recently that really caught my attention, Rachel Glaser, she said there are 100 million items sold on Etsy, so five million sellers, 90 million buyers, 100 million items sold. For the most part, these 100 million items are special, handmade things. It's just amazing this is a unique company. Like Tesla is operating at scale now, it's reached scale in its industry. Last quarter they had three billion dollars in gross merchandise volume. Now, the company posted this big loss because they took huge write-down on goodwill for acquisition of some other platforms they had made. Depop was one of those. So they haven't had a perfect track record. But I think investors are seeing beyond all that and just seeing how sticky this platform is.
Speaking of weird time periods, shares are down 49 percent year over year, but in the last six months after this huge trough in July, the shares are up 63 percent. That's how it comes in at the end with that performance. I think, wow, in an inflationary environment where everyone is hyper-focused on what the consumer is going to do for there to be so much confidence in Etsy on the part of investors shows that many investors are realizing how special this platform is and how buyers tend to stick around. I know you shouldn't ever take anecdotal evidence and extrapolate that is investment guidance. But I believe my family's bought more in Etsy this past year, I've maybe grumbled about how much? In your past, even as I've also been shocked by the price of eggs going up, I still bought more items and maybe a bigger dollar volume from Etsy over the past trailing 12 months.
David Gardner: Well, I love hearing that certainly as a long-term fan of Etsy, this company, the volatility that you're speaking to us. Again, I'm glad you're underlining that these are very unusual time. To think that the stock was around a year ago at 300 and today we're smiling and celebrating it at 133. For some of us, we feel like this stock's been cut in half. But if you'd bought six months ago with the stock somewhere around 70, you've practically doubled your money in the stock. Now we're not about the last six months, we're not about the last year. In this five-stock sampler, we're about three years. Really for most Foolish investors, that's an absolute minimum. That's how I think about three years. But the game we're playing of three-year, five-stock samplers gives you a much longer viewpoint.
There you see Etsy hovering at $50 a share three years ago. More than a double today for a company. Yeah. I agree with you said I think one of the great strengths of Etsy is I've always described it as Amazon proof because the things you buy an Amazon, other people can buy on Amazon and sometimes they're offered other places. The things you buy on Etsy, maybe only you got to buy that on Etsy and maybe no other platform has those things. Just checking the Wikipedia page, Josh Silverman, the CEO, I'm seeing he quit his job at AIDAC labs in 1998 to work full-time on building what would become e-vite. How often do we notice, especially among Internet CEOs, this ability to start one thing and then transition it to something else, shopping.com, eBay. He was also the CEO of Skype anyway today, Josh Silverman, the CEO of Etsy. Anyway, it's a great long-term business story. It's been a wonderful Rule Breaker stock for many. Yet, 300 dollars a share somewhere late last year. You're not very happy with your Etsy right now.
Asit Sharma: That's true. But they're showing something that I really liked very Marie Kondo-like, very Prieto principle like. They're focusing in on the sellers that sell the most and helping them to succeed more on the platform. I think they are undergoing that, those that bought at that level will take some patients for you to see your investment come to par probably, but they're doing the right things so that you can feel reasonably assured that over a long time you'll be able to come back at even. We can't predict what it will do from here, but certainly has all the elements to keep growing.
David Gardner: Well, we're here to remind everybody listening that even though this five-stock sampler is coming to an end, these are stocks to hold. Indeed, each of these stocks in Motley Fool services were recommended at prices well lower than the ones I'm picking from three years ago. This is the way to make money as an investor, to find great companies and hold them over long periods of time. I trust and hope anybody who owns any of these companies, whether it was three years ago when you heard this podcast or you've held it less than that. I hope you'll hold it much longer going forward. Asit, you and I are both agreeing. I saw you nodding earlier. These are companies, these are the things you should be filling up your portfolio with to return to the theme, "Companies that spark joy for you and for many others."
Asit Sharma: I look at these companies, I feel joyful. Sometimes it's a latent joy, when market's down and I see their positions have gone into the red. But over time, when I project forward, this is a basket of companies that I just feel so optimistic about because each of them is wow, innovating within its field, creating new products and services, making people happy, making consumers happy. I still think this has some mileage left in it beyond where the scorecard ends.
David Gardner: All right. Well speak in the scorecard ending, technically, this one doesn't end as of this podcast coming out as it does on Wednesdays. In this case, Wednesday, January 18th, because we have to let a full three-years play out and that means through Friday. So by the end of the week, we'll put the final numbers out. I'll put them out here for now. For now, this five-stock sampler, five stocks that spark joy averaging a 90.9 percent return those five stocks versus the market's 20.1.
So we are way up 70 percentage points plus for this five-stock sampler, it's sparks joy Asit for me to think that that's how things played out, especially given how really difficult the market has been. Many of these winners, half where they were a couple of years ago in some cases and yet look how it's done. I will say this, we're not going to play the Foolhalla music because we can't officially send this one off to Foolhalla until we get to the weekends. On next week's mailbag, we will play the Foolhalla music. Asit I hope you'll still be listening on next week's mailbag so you can hear and maybe get a little emotional as we watch five stocks that spark joy, ascend.
Asit Sharma: I can't not listen, David, because I'm an emotional guy and I love closure.
David Gardner: Well, closure is coming next week. It was a lot of fun to watch these companies perform through some of the strangest and in some cases, most difficult investment years I can remember. Let me thank again Sanmeet Deo and Asit Sharma once again for their intelligence, their efforts to track these companies and keep us informed about what's happening. Asit at any final takeaways as you think about the con Murray method, about sparking joy or about the future?
Asit Sharma: I think the future is going to be one in which we find joy in unexpected places. At the beginning of a new year, I'm seeing a lot of fun things, investment in great places, from digital healthcare to electric taxis. Just a lot of concepts that in the future are going to be joyful experiences. I'm optimistic. I know the market has all feeling a little ill at ease as of late, but a little positive start to the near. Let's see what happens.
David Gardner: Yeah. I think the market's going up this year and that's at least how it's started. Asit Sharma, thank you. You and I talked off air about ChatGPT. Did you commit to me at some point in the next three months to sign up for free, by the way, and start using the service?
Asit Sharma: I did, David. I'm going to stop this vicarious thrill business of watching people talk about their experiences on Twitter and go ahead and sign up and using myself.
David Gardner: You know what I've really benefited from? Sometimes I have these friends, maybe you dear listener and maybe you Asit Sharma have these friends too, who send you really long things. They may have sent you their three-page holiday letter about what happened in their lives or the five page PDF of their recent insights. It turns out you can copy and paste large blocks of texts into ChatGPT and say, summarize this for me. In a paragraph or two, it is a much more efficient way to hit the highlights without going all the way through that five page PDF. There's at least one practical use Asit that you can begin enjoying if you have such friends.
Asit Sharma: I feel like there's a devious usage in there. Dear X, here's what I love most about those 11 pages you sent me.
David Gardner: As long as you read it and agree with what ChatGPT came up with, I would say, yeah, hit the Send button.
Asit Sharma: Game on.
David Gardner: All right. Well, a reminder, we can't actually officially close five stocks that spark joy until the weekends. On next week's mailbag, I will give you the final numbers. Now, a reminder, next week is your mailbag, rbi@fool.com is our email address @RBI podcast you can tweet us on Twitter, love to have you join me with an interesting question, a valuable thought, or maybe as short poem on next week's mailbag. In the meantime, Fool on.
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. Asit Sharma has positions in Atlassian, Etsy, Microsoft, Teladoc Health, and Walt Disney. David Gardner has positions in Alphabet, Apple, Starbucks, Tesla, and Walt Disney. Rick Engdahl has positions in Alphabet, Amazon.com, Apple, Etsy, Microsoft, Starbucks, Teladoc Health, Tesla, and Walt Disney. Sanmeet Deo has positions in Alphabet, Amazon.com, Tesla, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Etsy, Microsoft, Starbucks, Teladoc Health, Tesla, and Walt Disney. The Motley Fool recommends SolarEdge Technologies and eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $45 calls on eBay, short January 2023 $92.50 puts on Starbucks, 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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They've been having quite a management guidance game where almost every quarters, the beginning of the year they revised their 2022 outlook to reflect dynamics and the direct-to-consumer mental health and chronic condition markets which are experiencing pressure from higher advertising costs and elongated sales cycles, employers were delaying their decision-making to because of macro uncertainty. Part of his new persona is not just taking on this latest venture in Twitter, but it's also getting out a little bit more in the public sphere using this big social platform to express views that before really weren't the concern of people who might buy the Tesla brand. More than twice the overall market cap of Amazon, I tend to think of them as similarly size, but at this point, and I really like what you pin down on there Asit, the software side of this business it's not to say Apple is no longer a hardware company, it is even more so probably that it was certainly 10 years ago.
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In September, they had a big analyst day outlining numerous the reinvention plan, I believe they called it and numerous initiatives, store investments, more automation, new brewing machine, and most importantly, a three-year goal of achieving 10-12 percent annual revenue growth and about 15-20 percent adjusted earnings growth. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Atlassian, Etsy, Microsoft, Starbucks, Teladoc Health, Tesla, and Walt Disney. The Motley Fool recommends SolarEdge Technologies and eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $45 calls on eBay, short January 2023 $92.50 puts on Starbucks, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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As I mentioned at the top we have two five-stock samplers to review, five stocks rolled up at random that was picked two years ago in January of 2021 and five stocks that spark joy, the 23rd ever five-stock sampler of 30, and we will be sending five stocks that spark joy to Foolhalla at the end of this week's episode. That was the theme, the five-stocks, alphabetical by company name, asset, Amazon, Apple, Etsy, Tesla, and Walt Disney, all of which are companies three years ago, and I would still say today three-years later, spark joy, for me. David Gardner: Having just talked about this company a little while with Sanmeet, where Apple over the last two years was up three percent, and unexciting also ran really just where the market's been.
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We don't usually know a year or two or three later if we did it right. David Gardner: Well, I'm about to welcome back, Asit Sharma to talk about five stocks that spark joy. I think the market's going up this year and that's at least how it's started.
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2023-01-31 00:00:00 UTC
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What Happens This Week Will Lead the Market for 2023
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AAPL
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https://www.nasdaq.com/articles/what-happens-this-week-will-lead-the-market-for-2023
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From big tech earnings to employment data and interest rate decisions, this is an extremely significant week for Wall Street. Markets are at a possible precipice and depending on the results of this week’s data deluge we may have a case to help determine where the market will trade going forward.
Monday was a light day for data, but not the market. Besides a few earnings releases there wasn’t much news on the day, but that didn’t stop the stock market indexes from selling off. On Tuesday morning the bulls stepped up though and have bid the market back to where it was yesterday. Not surprising that the market is chopping up traders before the big day, Wednesday.
Tuesday
Tuesday morning has been busy with several big earnings calls, and economic data releases. On the earnings side Exxon Mobil XOM reported an historic year. Exxon Mobil took home $56 billion in earnings in 2022, which is the most profitable year in Exxon’s history.
Other big reports came from Pfizer PFE and McDonald’s MCD. The big news from Pfizer was 2023 sales were guided down 33% to $67-$71 billion. This is following a historically successful 2022 for PFE with $100.3 billion in revenue reported driven by $50 billion from Covid vaccine and antiviral sales.
McDonald’s beat on both the top and bottom line and showed increasing visits from consumers. CEO Chris Kempczinski did note that he expects “short-term inflationary pressures to continue in 2023.”
On the economic data front, the big news today came from the Employment Cost Index (ECI). The ECI, a figure Federal Reserve officials watch closely for cues on inflation, was up less than. Wages and salaries increased just 1%, less than the expected 1.1%, and down from the Q3 number of 1.3%. This is good news for team soft landing, and plays favorably to the Federal Reserve, whose FOMC meeting, and press conference Wednesday are the most anticipated event of the week.
Economic data released Tuesday also included:
Case-Schiller home prices – showed a decrease of -3.1%, previously 2.8%
FHFA home price index – a decrease of -1.6%, previously 0%
Chicago business barometer – 44.3, estimated 45.3, previously 45.1.
Consumer confidence – 107.1, estimate 109.5, previously 109.0.
Also reporting earnings on Tuesday: AMD, CAT, AMGN, MDLZ, UBS, UPS, MCO, GM, PSX, MSCI
Wednesday
While Meta Platforms META reports earnings Wednesday February 1 after the close the real big news will be coming from the Fed. According to the federal funds futures curve, it is a near certainty that the Fed will be raising interest rates just 25 basis points at the conclusion of its meeting.
This will be the first 25 bps hike for this cycle, and marks a dovish pivot from the Fed. The soft-landing narrative has become extremely loud, and it seems the Fed believes they are close to success as well. This is a delicate balancing act though. Any upside surprise from inflation can really throw a wrench in the central bank’s plan.
Even more important will be the press conference and the rhetoric from Fed Chair Jerome Powell. There is no doubt that the rate of inflation is slowing, but how will that affect future rate hikes? Fed funds futures currently indicate the likeliest path is that March meeting will mark the final rate hike for the cycle. Followed by several meetings of maintaining the rate of 475-500 bps, and an eventual cut during the December meeting.
Image Source: CME
Meta’s Q4 and FY22 earnings results should be very interesting as well. Estimates from Zacks project Q4 sales of $31 billion, a -7% YoY decrease, and FY sales of $115 billion, a YoY decrease of -1.8%. Earnings have been revised lower by analysts for the current quarter, next quarter, and the current year, but next year’s estimates are slowly ticking up. Additionally, Zacks is expecting a positive earnings surprise of 6.9%. META currently holds a Zacks Rank #3 (Hold)
Image Source: Zacks Investment Research
Wednesday morning will also bring some important economic data:
ADP employment report – Median forecast 190,000, previous report 235,000
PMI manufacturing – Median forecast 46.6, previous report 46.8
ISM manufacturing – Median forecast 48%, previous report 48.4%
Job openings – Median forecast 10.3 million, previous report 10.5 million
Quits – Median forecast n/a, previous report 4.2 million
Also reporting earnings on Wednesday: MO, TMUS, NVO, GSK, WM, AFl
Thursday
Thursday after the market closes, we will see the big dogs Apple AAPL, Amazon AMZN, and Alphabet GOOGL report earnings. All three are currently Zack Rank #3 (Hold) stocks.
Apple’s Q1 FY23 sales are expected to decrease -2.2% YoY to $121 billion according to Zacks estimates. Earnings are expected to be lower as well, down -8.1% to $1.93 per share. Key data will come in the form of iPhone sales, Apple Services revenue, and guidance.
Amazon Q4 sales are expected to be $145.4 billion, which would be a 5.8% YoY increase, and FY sales are projected to be $510 billion an 8.6% increase YoY. Sales growth numbers from AMZN are an important indicator of the state of the consumer now. Also keep an eye on AWS numbers as growth rates have been slowing, and Amazon is losing cloud market share quarterly.
Alphabet, Google’s parent company, will provide insight on how the digital ads industry is faring. According to the analysts, the expectations are not great. GOOGL has had earnings revised lower on nearly all time frames, and the new antitrust case from the Department of Justice doesn’t help. Keep an eye on total ads revenue growth, and cloud growth.
Image Source: Zacks Investment Research
Also reporting earnings on Thursday: LLY, MRK, SHEL, COP QCOM, HON, SBUX GILD, ICE, F
Friday
Earnings will slow down a bit by Friday, but more important economic data will be coming out. In the morning there will be data released for Nonfarm payroll, Unemployment, Average hourly earnings, Labor force participation, PMI, and ISM services.
Earnings will include, SNY, CI, VCISY, REGN, AON, CHD and others.
Review
The importance of this week, especially Wednesday and Thursday, can’t be understated. Of course, nobody knows for certain what the future will bring, but the data coming out this week should provide some extremely valuable insights.
Earnings from big tech companies will tell us how consumers and leading businesses are managing in the current economy. The Fed will let us know what we can expect from interest rates, inflation, and employment. After a strong start for equities in 2023, and an easing of interest rates, this week may inform us about whether these trends will continue, or reverse.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Wednesday morning will also bring some important economic data: ADP employment report – Median forecast 190,000, previous report 235,000 PMI manufacturing – Median forecast 46.6, previous report 46.8 ISM manufacturing – Median forecast 48%, previous report 48.4% Job openings – Median forecast 10.3 million, previous report 10.5 million Quits – Median forecast n/a, previous report 4.2 million Also reporting earnings on Wednesday: MO, TMUS, NVO, GSK, WM, AFl Thursday Thursday after the market closes, we will see the big dogs Apple AAPL, Amazon AMZN, and Alphabet GOOGL report earnings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. CEO Chris Kempczinski did note that he expects “short-term inflationary pressures to continue in 2023.” On the economic data front, the big news today came from the Employment Cost Index (ECI).
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Image Source: Zacks Investment Research Wednesday morning will also bring some important economic data: ADP employment report – Median forecast 190,000, previous report 235,000 PMI manufacturing – Median forecast 46.6, previous report 46.8 ISM manufacturing – Median forecast 48%, previous report 48.4% Job openings – Median forecast 10.3 million, previous report 10.5 million Quits – Median forecast n/a, previous report 4.2 million Also reporting earnings on Wednesday: MO, TMUS, NVO, GSK, WM, AFl Thursday Thursday after the market closes, we will see the big dogs Apple AAPL, Amazon AMZN, and Alphabet GOOGL report earnings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Economic data released Tuesday also included: Case-Schiller home prices – showed a decrease of -3.1%, previously 2.8% FHFA home price index – a decrease of -1.6%, previously 0% Chicago business barometer – 44.3, estimated 45.3, previously 45.1.
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Image Source: Zacks Investment Research Wednesday morning will also bring some important economic data: ADP employment report – Median forecast 190,000, previous report 235,000 PMI manufacturing – Median forecast 46.6, previous report 46.8 ISM manufacturing – Median forecast 48%, previous report 48.4% Job openings – Median forecast 10.3 million, previous report 10.5 million Quits – Median forecast n/a, previous report 4.2 million Also reporting earnings on Wednesday: MO, TMUS, NVO, GSK, WM, AFl Thursday Thursday after the market closes, we will see the big dogs Apple AAPL, Amazon AMZN, and Alphabet GOOGL report earnings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Also reporting earnings on Tuesday: AMD, CAT, AMGN, MDLZ, UBS, UPS, MCO, GM, PSX, MSCI Wednesday While Meta Platforms META reports earnings Wednesday February 1 after the close the real big news will be coming from the Fed.
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Image Source: Zacks Investment Research Wednesday morning will also bring some important economic data: ADP employment report – Median forecast 190,000, previous report 235,000 PMI manufacturing – Median forecast 46.6, previous report 46.8 ISM manufacturing – Median forecast 48%, previous report 48.4% Job openings – Median forecast 10.3 million, previous report 10.5 million Quits – Median forecast n/a, previous report 4.2 million Also reporting earnings on Wednesday: MO, TMUS, NVO, GSK, WM, AFl Thursday Thursday after the market closes, we will see the big dogs Apple AAPL, Amazon AMZN, and Alphabet GOOGL report earnings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This is following a historically successful 2022 for PFE with $100.3 billion in revenue reported driven by $50 billion from Covid vaccine and antiviral sales.
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2023-01-31 00:00:00 UTC
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US STOCKS-Wall St gains after encouraging inflation data with Fed next
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-after-encouraging-inflation-data-with-fed-next
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By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal
NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision.
Investors also digested a full plate of earnings reports, including share-price gains in Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N following their results, countered by declines in Caterpillar Inc CAT.N and McDonald's Corp MCD.N.
U.S. labor costs increased at their slowest pace in a year in the fourth quarter as wage growth slowed, Labor Department data showed. The U.S. central bank on Wednesday is expected to hike the Fed funds rate by 25 basis points, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
The labor cost data is "indicating that maybe what the Fed has done is working and ... we’re rounding the corner on interest rate hikes," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
According to preliminary data, the S&P 500 .SPX gained 59.39 points, or 1.48%, to end at 4,077.16 points, while the Nasdaq Composite .IXIC gained 190.99 points, or 1.68%, to 11,584.55. The Dow Jones Industrial Average .DJI rose 371.04 points, or 1.10%, to 34,088.13.
The S&P 500 posted its first increase for the month of January since 2019, following a brutal 2022 in which the benchmark index sank 19.4%.
Aside from the Fed's rate decision on Wednesday, Chair Jerome Powell's news conference will be scrutinized for whether the rate-hiking cycle may be coming to a close and for signs of how long rates could stay elevated.
"Jerome Powell and team are probably looking at this easing of financial conditions that has happened over the last month, and we will see if they try to push back against it to any extent," said Mona Mahajan, senior investment strategist at Edward Jones. "I don’t think they would want markets to move up too far, too fast either."
In earnings news, Exxon Mobil shares rose after the oil major posted a $56 billion net profit for 2022, setting not only a company record but a historic high for the Western oil industry.
United Parcel Service shares climbed after its quarterly profit topped estimates, while General Motors Co GM.N shares jumped after it forecast stronger-than-expected earnings for 2023.
Caterpillar shares sank as the machinery maker's fourth-quarter earnings slid by 29%. McDonald's shares dropped after the burger chain warned inflation will weigh on margins in 2023.
A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report.
(Reporting by Lewis Krauskopf in New York, and Johann M Cherian and Shreyashi Sanyal in Bengaluru Editing by Maju Samuel and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. The labor cost data is "indicating that maybe what the Fed has done is working and ... we’re rounding the corner on interest rate hikes," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. Investors also digested a full plate of earnings reports, including share-price gains in Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N following their results, countered by declines in Caterpillar Inc CAT.N and McDonald's Corp MCD.N.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. Investors also digested a full plate of earnings reports, including share-price gains in Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N following their results, countered by declines in Caterpillar Inc CAT.N and McDonald's Corp MCD.N.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. Investors also digested a full plate of earnings reports, including share-price gains in Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N following their results, countered by declines in Caterpillar Inc CAT.N and McDonald's Corp MCD.N. The U.S. central bank on Wednesday is expected to hike the Fed funds rate by 25 basis points, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
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17332.0
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2023-01-31 00:00:00 UTC
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AMD forecasts first-quarter revenue below expectations
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AAPL
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https://www.nasdaq.com/articles/amd-forecasts-first-quarter-revenue-below-expectations
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adds background, revenue
Jan 31 (Reuters) - Advanced Micro Devices AMD.O on Thursday forecast first-quarter revenue below Wall Street estimates on fears of fewer orders due to worsening PC demand and slowing data center market.
AMD's forecast mirrored Intel's gloomy outlook for the PC market, which, according to Intel Chief Executive Pat Gelsinger, is seeing "some of the largest inventory corrections literally that we've ever seen in the industry".
PC shipments fell 16.5% to 292.3 million units in 2022, according to data from research firm IDC.
The chip designer had already started under-shipping in response to plummeting processor demand as customers looked to clear their inventory stash before buying more chips.
This decline led chipmakers to slash revenue forecasts, triggering a sell-off in chip stocks. AMD's stock fell 55% last year, underperforming the Philadelphia SE Semiconductor index .SOX during an industry downturn.
Slowing demand for graphics cards, used to enhance visuals and performance on personal computers, also took a toll, while growing signs of enterprise and cloud spending slowdown was an added blow.
Adjusted fourth-quarter revenue rose 16% to $5.60 billion. Analysts on average were expecting revenue of $5.50 billion, according to Refinitiv data.
The company forecast current-quarter revenue of $5.3 billion, plus or minus $300 million. Analysts on average expected revenue of $5.48 billion, according to Refinitiv data.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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adds background, revenue Jan 31 (Reuters) - Advanced Micro Devices AMD.O on Thursday forecast first-quarter revenue below Wall Street estimates on fears of fewer orders due to worsening PC demand and slowing data center market. AMD's stock fell 55% last year, underperforming the Philadelphia SE Semiconductor index .SOX during an industry downturn. Slowing demand for graphics cards, used to enhance visuals and performance on personal computers, also took a toll, while growing signs of enterprise and cloud spending slowdown was an added blow.
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adds background, revenue Jan 31 (Reuters) - Advanced Micro Devices AMD.O on Thursday forecast first-quarter revenue below Wall Street estimates on fears of fewer orders due to worsening PC demand and slowing data center market. Analysts on average were expecting revenue of $5.50 billion, according to Refinitiv data. Analysts on average expected revenue of $5.48 billion, according to Refinitiv data.
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adds background, revenue Jan 31 (Reuters) - Advanced Micro Devices AMD.O on Thursday forecast first-quarter revenue below Wall Street estimates on fears of fewer orders due to worsening PC demand and slowing data center market. Analysts on average were expecting revenue of $5.50 billion, according to Refinitiv data. Analysts on average expected revenue of $5.48 billion, according to Refinitiv data.
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adds background, revenue Jan 31 (Reuters) - Advanced Micro Devices AMD.O on Thursday forecast first-quarter revenue below Wall Street estimates on fears of fewer orders due to worsening PC demand and slowing data center market. AMD's forecast mirrored Intel's gloomy outlook for the PC market, which, according to Intel Chief Executive Pat Gelsinger, is seeing "some of the largest inventory corrections literally that we've ever seen in the industry". PC shipments fell 16.5% to 292.3 million units in 2022, according to data from research firm IDC.
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17333.0
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2023-01-31 00:00:00 UTC
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Who Are the World's Largest Patent Holders?
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https://www.nasdaq.com/articles/who-are-the-worlds-largest-patent-holders
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atents are often seen as a reflection of a company’s capacity and commitment for innovation. The World Intellectual Property Organization (WIPO) defines a patent as “an exclusive right granted for an invention. In other words, a patent is an exclusive right to a product or a process that generally provides a new way of doing something or offers a new technical solution to a problem.”
Therefore, patenting an idea or innovation is considered necessary to secure research and development (R&D) efforts, which will then eventually lead to economic gains.
Here’s an overview of the patent landscape in 2022, according to data by IFI Claims Patent Service.
Samsung claims the number one spot
With 6,248 patents granted during the year, Samsung (SSNLF) is the highest patent holder for 2022. The number of patent grants was down 2% vis-à-vis last year. In terms of cumulative patent holdings, Samsung is down by one spot to the second position with 92,593 active patent families. The South Korean conglomerate is the largest non-U.S. spender on R&D. Recently reported numbers for FY2022 show Samsung’s R&D spending ₩24.92 trillion ($20.14 billion) at 8.2% of sales, which stood at ₩302.23 trillion.
Samsung has 15 R&D centers in 14 countries. Samsung R&D Institute (SRI-B) in Bengaluru is the company’s largest R&D center outside Korea. SRI-B has filed over 7,500 patents in India and globally (till October 2022). According to Samsung, “Engineers at SRI-B have filed patents around areas such as multi-camera solutions, 5G, 6G as well as ultra-wideband wireless communications protocol. These patents have been commercialized in Samsung flagship Galaxy smartphones, smartwatches, and network equipment, among others.”
In December 2022, Samsung’s $220 million project for its R&D center in Vietnam, which was undertaken in 2020, was completed.
With a shift in its strategy, IBM moves to the second spot
IBM (IBM), popularly referred to as the Big Blue, has been leading the U.S. companies for 29 years in the number of patents received annually. However, the year 2022 witnessed a sharp fall of 49% in the number of patents granted. IBM received 4,398 patents in 2022 vis-à-vis 8,681 patents in 2021. This fall in number is an outcome of the company’s shift in approach making it more ‘focused.’ IBM’s Senior Vice President and Director of Research Darío Gil wrote, “While we will remain an intellectual property powerhouse with one of the strongest US patent portfolios, as part of our innovation strategy, focus means that we are taking a more selective approach to patenting.”
Key areas of innovation for IBM include hybrid cloud, data and AI, automation, security, semiconductors and quantum computing—which require deep focus and depth, and hence the company is working to free its engineers as it “needs more hands on the deck for each breakthrough.” In terms of the cumulative patent holdings globally, IBM ranked 16th with 43,014 active patent families.
TSMC moves up to the third position
Taiwan Semiconductor Manufacturing (TSM) placed itself comfortably among the top five patent holders in 2021 to be at the fourth spot, and in 2022, it continued its climb to the third place. During 2022, TSMC was awarded 3,024 patents, an 8% increase as compared to the previous year. TSMC is the world’s leading dedicated semiconductor foundry dominating more than 55% of the market share. A report by Counterpoint suggests that TSMC’s market share saw significant growth through 2022 and is expected to be around 60% in Q4 2022, up from 59% in Q3 2022.
TSMC’s Intellectual Patent Division (IPD) has “established a robust patent management system, which comprehensively constructs the patent territory through five strategies and four enforcement measures.”
Together, IPD and the R&D team develop short-, medium- and long-term technology plans. TSMC boasts of high patent quality, and the approval rate of its applications. TSMC reported a revenue of NT$2,263.89 billion ($75.88 billion) in 2022, an increase of 42.6% compared to the same period in FY2021. The company continues to spend 8-9% of the revenue on R&D.
Huawei inches up to the fourth place
Huawei has made a steady progress in the last two years, moving from the ninth spot in 2020 to the fifth place in 2021, and now to the fourth place. Huawei was awarded a total of 2,836 patents in 2022, an increase of 2%. Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. While the company is yet to report its final revenue for FY2022, a note at the start of 2023 by the company’s chairman mentions that Huawei “We expect to round off the year with a total revenue of ¥636.9 billion, which is in line with forecast.”
Over the years, Huawei has been investing heavily into R&D. Over the past decade, Huawei’s total R&D investment surpassed ¥845 billion. The number of people working in the company’s R&D constitutes more than half of its total workforce.
“Huawei leads in mainstream standards such as 5G, Wi-Fi 6 and H.266, and has entered into licensing agreements with pioneers in a wide range of areas, including the telecoms industry, connected cars, Internet of Things, and smart homes” according to Huawei.
Canon is at five
With 2,694 patents, Canon (CAJ) continues to be the only company in the world to have ranked in the top five for 37 years. Canon has reigned the third position for more than a decade but an 11% fall in the number of patent grants slid Canon to the fifth spot. Canon continues to retain the number one spot among Japanese companies for the 18th consecutive year. When seen in terms of cumulative patent holdings, Canon moved up to the fifth spot (from ninth) with 73,448 active patent families.
Canon’s four key business groups include printing, imaging, medical and industrial equipment. According to Canon, in recent years, “the company has been focusing on development of fundamental technologies, such as video analysis, cutting-edge image sensors, volumetric video and healthcare AI, that can be applied and utilized for various purposes, as well as the acquisition of patent rights for such technologies.”
The company’s R&D expenses for FY2022 were reported at ¥306.73 billion, equivalent to 7.6% of net sales. Canon has been allocating 7-9% of its net sales to R&D expenses over the years.
Rounding Up
With 2,641 patents, LG Electronics is at the sixth place, up by two places compared to 2021. The number of patents awarded to LG increased by 6% during the year.
With a solid 22% rise in patents received during 2022, Qualcomm (QCOM) rose from the tenth spot to the seventh. The company received 2,625 patents during the year.
Intel (INTC) received 2,418 patents during 2022, a drop of 7% since 2021 resulting in a slide by two places to the eighth spot.
A 10% fall in the number of patent grants during 2022 pushed Apple (AAPL) down by two places. Apple was awarded 2,285 patents during the year.
Toyota (TM) made it to the top ten with a 9% rise in patent grants. The company was granted 2,214 patents during 2022.
In Percentage Terms
While the rankings above are in absolute numbers, the top five names when seen in terms of parentage increase in patents are Dell (44%), Hewlett Packard (41%), Murata Manufacturing (23%), Qualcomm (22%) and Robert Bosch (18%).
Disclaimer: The author has no position in any stocks mentioned. Investors should consider the above information not as a de facto recommendation, but as an idea for further consideration. The report has been carefully prepared, and any exclusions or errors in it are totally unintentional. Data on patent is based on IFI Claims Patent Services report. Company specific data based on earnings and annual reports.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A 10% fall in the number of patent grants during 2022 pushed Apple (AAPL) down by two places. According to Samsung, “Engineers at SRI-B have filed patents around areas such as multi-camera solutions, 5G, 6G as well as ultra-wideband wireless communications protocol. This fall in number is an outcome of the company’s shift in approach making it more ‘focused.’ IBM’s Senior Vice President and Director of Research Darío Gil wrote, “While we will remain an intellectual property powerhouse with one of the strongest US patent portfolios, as part of our innovation strategy, focus means that we are taking a more selective approach to patenting.” Key areas of innovation for IBM include hybrid cloud, data and AI, automation, security, semiconductors and quantum computing—which require deep focus and depth, and hence the company is working to free its engineers as it “needs more hands on the deck for each breakthrough.” In terms of the cumulative patent holdings globally, IBM ranked 16th with 43,014 active patent families.
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A 10% fall in the number of patent grants during 2022 pushed Apple (AAPL) down by two places. This fall in number is an outcome of the company’s shift in approach making it more ‘focused.’ IBM’s Senior Vice President and Director of Research Darío Gil wrote, “While we will remain an intellectual property powerhouse with one of the strongest US patent portfolios, as part of our innovation strategy, focus means that we are taking a more selective approach to patenting.” Key areas of innovation for IBM include hybrid cloud, data and AI, automation, security, semiconductors and quantum computing—which require deep focus and depth, and hence the company is working to free its engineers as it “needs more hands on the deck for each breakthrough.” In terms of the cumulative patent holdings globally, IBM ranked 16th with 43,014 active patent families. When seen in terms of cumulative patent holdings, Canon moved up to the fifth spot (from ninth) with 73,448 active patent families.
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A 10% fall in the number of patent grants during 2022 pushed Apple (AAPL) down by two places. Samsung claims the number one spot With 6,248 patents granted during the year, Samsung (SSNLF) is the highest patent holder for 2022. This fall in number is an outcome of the company’s shift in approach making it more ‘focused.’ IBM’s Senior Vice President and Director of Research Darío Gil wrote, “While we will remain an intellectual property powerhouse with one of the strongest US patent portfolios, as part of our innovation strategy, focus means that we are taking a more selective approach to patenting.” Key areas of innovation for IBM include hybrid cloud, data and AI, automation, security, semiconductors and quantum computing—which require deep focus and depth, and hence the company is working to free its engineers as it “needs more hands on the deck for each breakthrough.” In terms of the cumulative patent holdings globally, IBM ranked 16th with 43,014 active patent families.
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A 10% fall in the number of patent grants during 2022 pushed Apple (AAPL) down by two places. Samsung claims the number one spot With 6,248 patents granted during the year, Samsung (SSNLF) is the highest patent holder for 2022. Canon is at five With 2,694 patents, Canon (CAJ) continues to be the only company in the world to have ranked in the top five for 37 years.
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2023-01-31 00:00:00 UTC
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Big Tech Earnings Preview: Time to Buy Amazon or Alphabet Stock?
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AAPL
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https://www.nasdaq.com/articles/big-tech-earnings-preview%3A-time-to-buy-amazon-or-alphabet-stock
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The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2.
Investors are on edge for better-than-expected guidance after Microsoft’s MSFT outlook was underwhelming despite the company beating its fiscal second-quarter earnings expectations last week.
Let’s see what’s in store for Alphabet and Amazon specifically heading into their quarterly reports this week.
Momentum
As we begin the new year, tech stocks are off to their best start in over 20 years with the Nasdaq up +10% in January. Amazon stock has stood out, up +21% with Microsoft lagging the big tech pack at +3%.
After a brutal 2022 for tech stocks, recent rallies were supported by December CPI numbers suggesting inflation is beginning to ease. This largely reflects why investors are hoping that Microsoft’s big tech peers can offer better guidance and keep the momentum going in the broader technology sector.
Image Source: Zacks Investment Research
Amazon Quarterly Estimates
Amazon’s fiscal fourth-quarter earnings are expected at $0.15 per share, which would be a -89% decrease from Q4 2021. This is indicative of a tougher operating environment as Q4 sales are expected to be up 6% year over year to $145.37 billion despite Amazon's large budget toward its growing streaming service with the company also expected to continue cutting its labor force.
Amazon would round out fiscal 2022 with EPS at -$0.14 per share compared to earnings of $3.24 a share in 2021. However, fiscal 2023 earnings are projected to climb back into the black at $1.58 per share although estimate revisions have trended down over the quarter.
Total sales for fiscal 2022 would be up 8% at $510.15 billion and are expected to jump another 9% in FY23. More impressive, fiscal 2023 sales projections of $556.57 billion would be a 98% increase from pre-pandemic levels with 2019 sales at $280.52 billion although this is modestly slower than the company's growth in the past.
Image Source: Zacks Investment Research
Alphabet Quarterly Estimates
Pivoting to Alphabet, Q4 earnings are expected at $1.17 per share, which would be a -23% drop from Q4 2021. Sales for the quarter are projected to be $63.15 billion, an 2% YoY increase from the prior year quarter.
This would round out Alphabet’s fiscal 2022 with EPS declining -17% to $4.65 per share compared to earnings of $5.61 a share in 2021. Fiscal 2023 earnings are forecasted to rise 8% to $5.05 a share although estimates have slightly declined over the quarter.
Total sales for FY22 would be $233.98 billion, up 10% YoY with FY23 sales forecasted to rise another 7%. Plus, with 2019 sales at $161.85 billion FY23 sales projections of $249.70 billion would represent 54% growth.
Image Source: Zacks Investment Research
Cloud Growth
Along with overall top and bottom-line growth, Wall Street will be monitoring the cloud growth for both Alphabet and Amazon as leaders in the space along with Microsoft’s Azure cloud services.
During the third quarter, Google cloud grew 36% YoY to $6.86 billion topping revenue expectations as shown in the chart below but also produced a larger operating loss at -$699 million compared to -$644 million in the prior year quarter.
Continued expansion of cloud services is very lucrative but managing operating costs will be important, with this especially true for Alphabet’s Google cloud as the segment is still on the path to profitability.
Image Source: Zacks Investment Research
As for Amazon, its AWS cloud service grew 27% during Q3 to $20.53 billion. Operating income for AWS was up 13% to $5.52 billion last quarter, compared to $4.85 billion in Q3 2021.
However, Amazon lowered its Q4 revenue guidance on slowing e-commerce sales and declining AWS growth and analysts will be scoping the expansion in its cloud service as the quarterly growth rate has been closer to 40% in the past.
For now, AWS is still the largest cloud service provider estimated to have 34% of the market share followed by Microsoft’s Azure at 22%, and Google Cloud at 9.5%.
Image Source: Zacks Investment Research
Historical Performance & Valuation
Over the last year, Alphabet stock is down -29% Vs. Amazon’s -32% with both underperforming the S&P 500’s -13% and the Nasdaq’s -20%. With that being said, Amazon’s +677% and Alphabet’s +403% in the last decade have still impressively outperformed the broader indexes.
Image Source: Zacks Investment Research
Still well off of their 52-week highs after last year’s selloff, investors are hoping strong Q4 reports will get Alphabet and Amazon stocks back on track to continue their stellar performances.
Trading at $97 per share and 19.1X forward earnings Alphabet stock is intriguing relative to its past valuation. Shares of GOOGL trade 48% below the decade-high of 37X and at a 28% discount to the median of 26.5X.
Similarly, Amazon also looks attractive from a historical perspective. Shares of AMZN are trading around $102 a share and 58.2X forward earnings. Amazon trades well below its extreme decade-long high of 8,055X and at a 55% discount to the median of 130.1X.
Bottom Line
Going into their Q4 earnings report both Amazon and Alphabet stock land a Zacks Rank #3 (Hold). These tech giants certainly trade attractively relative to their past but more near-term upside will largely depend upon the guidance and outlook they offer during the quarterly reports.
At the moment, holding on to Amazon and Alphabet stock at their current levels could still be rewarding long term given their tremendous businesses with much of the risk from slowing growth in correlation with broader economic challenges appearing to already be priced into the stocks.
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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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are on edge for better-than-expected guidance after Microsoft’s MSFT outlook was underwhelming despite the company beating its fiscal second-quarter earnings expectations last week.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. Image Source: Zacks Investment Research Amazon Quarterly Estimates Amazon’s fiscal fourth-quarter earnings are expected at $0.15 per share, which would be a -89% decrease from Q4 2021.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. Image Source: Zacks Investment Research Amazon Quarterly Estimates Amazon’s fiscal fourth-quarter earnings are expected at $0.15 per share, which would be a -89% decrease from Q4 2021.
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The outlook for technology companies will become clearer soon, as big tech companies Alphabet GOOGL, Amazon AMZN, and Apple AAPL are all set to report earnings on Thursday, February 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Alphabet Quarterly Estimates Pivoting to Alphabet, Q4 earnings are expected at $1.17 per share, which would be a -23% drop from Q4 2021.
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2023-01-31 00:00:00 UTC
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US STOCKS-Wall St gains over 1% after encouraging inflation data with Fed next
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-over-1-after-encouraging-inflation-data-with-fed-next
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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.
Nasdaq posts biggest January gain since 2001
U.S. labor cost growth slows in fourth quarter
Exxon, UPS rise after results, Caterpillar slumps
Fed decision on interest rates on Wednesday
Indexes up: Dow 1.09%, S&P 500 1.46%, Nasdaq 1.67%
Adds further market data
By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal
NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed over 1% higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision.
Investors also digested a full plate of earnings reports. Shares of Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N rose following their respective results, while Caterpillar Inc CAT.N and McDonald's Corp MCD.N ended weaker after their results.
The S&P 500 tallied its first January increase since 2019, gaining 6.2%, while the tech-heavy Nasdaq jumped 10.7% for the month - its biggest January percentage rise since 2001.
U.S. labor costs increased at their slowest pace in a year in the fourth quarter as wage growth slowed, Labor Department data showed. The U.S. central bank on Wednesday is expected to hike the Fed funds rate by 25 basis points, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
The labor cost data is "indicating that maybe what the Fed has done is working and ... we’re rounding the corner on interest rate hikes," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
The Dow Jones Industrial Average .DJI rose 368.95 points, or 1.09%, to 34,086.04, the S&P 500 .SPX gained 58.83 points, or 1.46%, to 4,076.6 and the Nasdaq Composite .IXIC added 190.74 points, or 1.67%, to 11,584.55.
All 11 S&P 500 sectors ended in positive territory, led by materials .SPLRCM and consumer discretionary .SPLRCD, both up over 2%.
Aside from the Fed's rate decision on Wednesday, Chair Jerome Powell's news conference will be scrutinized for whether the rate-hiking cycle may be coming to a close and for signs of how long rates could stay elevated.
"Jerome Powell and team are probably looking at this easing of financial conditions that has happened over the last month, and we will see if they try to push back against it to any extent," said Mona Mahajan, senior investment strategist at Edward Jones. "I don’t think they would want markets to move up too far, too fast either."
In earnings news, Exxon Mobil shares rose 2.2% after the oil major posted a $56 billion net profit for 2022, setting not only a company record but a historic high for the Western oil industry.
United Parcel Service shares climbed 4.7% after its quarterly profit topped estimates, while General Motors Co GM.N shares jumped 8.3% after it forecast stronger-than-expected earnings for 2023.
Caterpillar shares sank 3.5% as the machinery maker's fourth-quarter earnings slid by 29%. McDonald's shares dropped 1.3% after the burger chain warned inflation will weigh on margins in 2023.
A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report.
Advancing issues outnumbered declining ones on the NYSE by a 4.91-to-1 ratio; on Nasdaq, a 3.12-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and no new lows; the Nasdaq Composite recorded 100 new highs and 25 new lows.
About 12 billion shares changed hands in U.S. exchanges, compared with the 11.4 billion daily average over the last 20 sessions.
(Reporting by Lewis Krauskopf in New York, and Johann M Cherian and Shreyashi Sanyal in Bengaluru Editing by Maju Samuel and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. Nasdaq posts biggest January gain since 2001 U.S. labor cost growth slows in fourth quarter Exxon, UPS rise after results, Caterpillar slumps Fed decision on interest rates on Wednesday Indexes up: Dow 1.09%, S&P 500 1.46%, Nasdaq 1.67% Adds further market data By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed over 1% higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. The labor cost data is "indicating that maybe what the Fed has done is working and ... we’re rounding the corner on interest rate hikes," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. Nasdaq posts biggest January gain since 2001 U.S. labor cost growth slows in fourth quarter Exxon, UPS rise after results, Caterpillar slumps Fed decision on interest rates on Wednesday Indexes up: Dow 1.09%, S&P 500 1.46%, Nasdaq 1.67% Adds further market data By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed over 1% higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. Shares of Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N rose following their respective results, while Caterpillar Inc CAT.N and McDonald's Corp MCD.N ended weaker after their results.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. Nasdaq posts biggest January gain since 2001 U.S. labor cost growth slows in fourth quarter Exxon, UPS rise after results, Caterpillar slumps Fed decision on interest rates on Wednesday Indexes up: Dow 1.09%, S&P 500 1.46%, Nasdaq 1.67% Adds further market data By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed over 1% higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. Shares of Exxon Mobil Corp XOM.N and United Parcel Service Inc UPS.N rose following their respective results, while Caterpillar Inc CAT.N and McDonald's Corp MCD.N ended weaker after their results.
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A busy week for markets will also include reports in coming days from Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, central bank meetings in Europe and the monthly U.S. employment report. Nasdaq posts biggest January gain since 2001 U.S. labor cost growth slows in fourth quarter Exxon, UPS rise after results, Caterpillar slumps Fed decision on interest rates on Wednesday Indexes up: Dow 1.09%, S&P 500 1.46%, Nasdaq 1.67% Adds further market data By Lewis Krauskopf, Johann M Cherian and Shreyashi Sanyal NEW YORK, Jan 31 (Reuters) - Major U.S. stock indexes closed over 1% higher on Tuesday as labor cost data encouraged investors about the Federal Reserve's aggressive approach to taming inflation a day ahead of the central bank's critical policy decision. The U.S. central bank on Wednesday is expected to hike the Fed funds rate by 25 basis points, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
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2023-01-31 00:00:00 UTC
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GLOBAL MARKETS-Stocks up, yields dip after U.S. data; Fed on deck
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-up-yields-dip-after-u.s.-data-fed-on-deck
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By Chuck Mikolajczak
NEW YORK, Jan 31 (Reuters) - A gauge of global stocks rose on Tuesday while U.S. Treasury yields mostly fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements.
On Wall Street, U.S. stocks were higher, reversing declines in equity futures after data showed labor cost growth in the fourth quarter was the smallest in a year, at 1.0%, even in a tight labor market. Other data showed consumer confidence eased in January, as inflation expectations for the next 12 months climbed to 6.8% from 6.6% last month.
The Federal Reserve is widely expected to raise interest rates by 25 basis points (bps) at the conclusion of its two-day policy meeting on Wednesday. Investors will closely monitor comments from Fed Chair Jerome Powell following the announcement for clues on the path of monetary policy. FEDWATCH
"The Fed tomorrow will have to strike a delicate balance in signaling slowing in the pace of rate increases, while at the same time emphasizing that they're not done yet with tightening rates," Oscar Munoz, U.S. macro strategist at TD Securities, told the Reuters Global Markets Forum.
"It has to acknowledge the recent improvement in the inflation data, but also note that the job's not done yet despite the recent good news."
The S&P 500, up about 5.2% for the month, is on track for its first January gain since 2019.
Interest rate announcements from the Bank of England and the European Central Bank are scheduled for Thursday, with both seen as likely to hike rates by 50 basis points.
Markets will also grapple with a host of U.S. economic data this week, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labor market as a key factor in bringing down high inflation. Other data this week include gauges of the manufacturing and services sectors.
In addition, more than 100 S&P 500 companies, including market heavyweights Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet GOOGL.O, are scheduled to report results this week.
CaterpillarCAT.N and McDonald'sMCD.N both lost ground on Tuesday following their quarterly results. However, Exxon Mobil rose after posting a $56 billion net profit for 2022.
European shares retreated ahead of the central bank meetings to end the month on a down note, but still notched their biggest January percentage gain since 2015. Economic data for the euro zone showed slight growth for the fourth quarter, but further weakness is expected this year.
The pan-European STOXX 600 index .STOXXlost 0.26%, and MSCI's gauge of stocks across the globe .MIWD00000PUSgained 0.39%. MSCI's index was on pace for its biggest January percentage gain since 2019.
Benchmark U.S. 10-year notes US10YT=RR were down 2.9 basis points to 3.522% in the wake of the data, after hitting a two-week high of 3.574% on Monday.
In currencies, the U.S. dollar index =USD, on track for a fourth month of declines, fell 0.196%, with the euro EUR=up 0.22% to $1.0868.
Oil prices recovered from earlier lows, as U.S. crude CLc1 recently rose 0.81% to $78.53 per barrel and Brent LCOc1 was at $84.47, down 0.51% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
(Reporting by Chuck Mikolajczak; additional reporting by Lisa Pauline Mattackal; editing by Diane Craft and Leslie Adler)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, more than 100 S&P 500 companies, including market heavyweights Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet GOOGL.O, are scheduled to report results this week. By Chuck Mikolajczak NEW YORK, Jan 31 (Reuters) - A gauge of global stocks rose on Tuesday while U.S. Treasury yields mostly fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements. The Federal Reserve is widely expected to raise interest rates by 25 basis points (bps) at the conclusion of its two-day policy meeting on Wednesday.
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In addition, more than 100 S&P 500 companies, including market heavyweights Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet GOOGL.O, are scheduled to report results this week. By Chuck Mikolajczak NEW YORK, Jan 31 (Reuters) - A gauge of global stocks rose on Tuesday while U.S. Treasury yields mostly fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements. MSCI's index was on pace for its biggest January percentage gain since 2019.
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In addition, more than 100 S&P 500 companies, including market heavyweights Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet GOOGL.O, are scheduled to report results this week. By Chuck Mikolajczak NEW YORK, Jan 31 (Reuters) - A gauge of global stocks rose on Tuesday while U.S. Treasury yields mostly fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements. On Wall Street, U.S. stocks were higher, reversing declines in equity futures after data showed labor cost growth in the fourth quarter was the smallest in a year, at 1.0%, even in a tight labor market.
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In addition, more than 100 S&P 500 companies, including market heavyweights Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet GOOGL.O, are scheduled to report results this week. By Chuck Mikolajczak NEW YORK, Jan 31 (Reuters) - A gauge of global stocks rose on Tuesday while U.S. Treasury yields mostly fell as investors assessed economic data and earnings reports ahead of a run of central bank policy announcements. In currencies, the U.S. dollar index =USD, on track for a fourth month of declines, fell 0.196%, with the euro EUR=up 0.22% to $1.0868.
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2023-01-31 00:00:00 UTC
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Will Lower Ad Revenues Hurt Meta Platforms' (META) Q4 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-lower-ad-revenues-hurt-meta-platforms-meta-q4-earnings
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Meta Platforms’ META fourth-quarter 2022 results, set to be reported on Feb 1, are expected to reflect the impacts of weak advertising revenues.
The Zacks Consensus Estimate for fourth-quarter advertising is pegged at $30.32 billion, down 7.1% year over year. Our estimate stands at $29.26 billion, down 10.4% year over year.
In the third quarter of 2022, advertising revenues (99.3% of Family of Apps revenues) decreased 3.7% year over year to $28.15 billion and accounted for 98.3% of revenues.
Meta’s results are expected to have been affected by higher interest expenses, raging inflation and challenging macroeconomic conditions globally.
Meta Platforms, Inc. Revenue (TTM)
Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote
Click here to know how Meta’s overall fourth-quarter performance is likely to have been.
Ad-Targeting Headwinds to Hurt Top-Line Growth
Ad targeting-related headwinds are expected to have affected the ad-revenue growth rate in the to-be-reported quarter. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes has also become difficult, thereby hurting its ad revenue growth.
Further impacting Meta’s top line is slowing global Monthly Active Users (MAU). In the third quarter, Meta reported 2.958 billion, up 1.6% year over year. MAUs in the Asia-Pacific, RoW, and the United States & Canada grew 2.7%, 2.3% and 1.9% year over year, respectively.
However, Europe MAUs declined 3.5% year over year, a trend expected to have continued in the fourth quarter, due to the loss of users in Russia. This is also likely to have impacted Global MAU negatively.
The Zacks Consensus Estimate for MAUs for the Asia-Pacific, RoW, the United States & Canada, and Europe is pegged at 1.326 million, 0.977 million, 0.267 million and 0.412 million, respectively.
Declining ad revenues have affected Meta’s strategy to fund reality labs. In the third quarter of 2022, Reality Labs’ revenues (1% of total revenues) plunged 48.9% year over year to $285 million primarily due to lower Quest 2 sales.
The consensus estimate for Reality Labs is pegged at $800 million.
AI, ML & Metaverse Driving Prospects
Meta, which currently carries a Zacks Rank #3 (Hold), is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse created using virtual and augmented reality. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Instagram’s growing popularity in international markets, particularly in Asia, has been helping Meta expand its user base. Much of it can be attributed to the growing popularity of short-form videos, Reels on Instagram. Reels have been attracting Gen-Z to the platform amid competition from Snapchat, Twitter and TikTok.
To increase revenues, Meta has been growing video monetization, especially in short-form videos like Reels using AI and ML.
Meta’s expanding partner base, which includes the like of NVIDIA NVDA and Advanced Micro Devices AMD, is noteworthy in this regard.
AMD collaborated with META as an ecosystem partner to build a Metaverse-ready radio access unit. AMD’s radio chip Xilinx Zynq UltraScale RFSoC will be utilized to develop multiple Evenstar radio units to expand 4G/5G mobile network infrastructure, which is crucial for the metaverse.
Meta collaborated with NVIDIA to build an AI research supercomputer, which is helping its researchers to build different AI models crucial for building the metaverse.
What Do Estimates Say?
The Zacks Consensus Estimate for fourth-quarter earnings stands at $2.23 per share, up 4.7% over the past 30 days but down 39.24%.
Our fourth-quarter earnings estimate stands at $1.49 per share, up from the previous estimate of $1.25.
The consensus estimate for fourth-quarter revenues is pegged at $31.31 billion, indicating a decline of 7.02% from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s results are expected to have been affected by higher interest expenses, raging inflation and challenging macroeconomic conditions globally.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. The Zacks Consensus Estimate for MAUs for the Asia-Pacific, RoW, the United States & Canada, and Europe is pegged at 1.326 million, 0.977 million, 0.267 million and 0.412 million, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Meta Platforms’ META fourth-quarter 2022 results, set to be reported on Feb 1, are expected to reflect the impacts of weak advertising revenues.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Meta Platforms’ META fourth-quarter 2022 results, set to be reported on Feb 1, are expected to reflect the impacts of weak advertising revenues.
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17338.0
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2023-01-31 00:00:00 UTC
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Tesla & Supercharged Electric Vehicle ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/tesla-supercharged-electric-vehicle-etfs-in-focus
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Tesla’s TSLA stock surged about 33% last week after the company posted strong results and is now up more than 50% this month. CEO Elon Musk was optimistic about the outlook and said the company could produce 2 million cars this year.
Earlier this month, the EV giant slashed prices on some of its models and Ford Motor F announced price cuts on its electric Mustang Mach-E yesterday, stepping up price wars in the EV market.
Tesla controls about 65% of the US EV market and remains years ahead of competitors, with vastly higher profit margins. EV start-ups like Rivian Automotive RIVN and Lucid Group LCID may not report profits any time soon.
Lucid had soared last week on unconfirmed rumors that the company could be acquired by Saudi Arabia Public Investment Fund.
Annual EV sales are expected to increase from around 10 million in 2022 to more than 20 million by 2025 and over 60 million by 2035, per Rho Motion.
The Inflation Reduction Act and the Infrastructure Investment and Jobs Act aim to boost EV development and adoption through billions of dollars in funding.
To learn about the Global X Autonomous & Electric Vehicles ETF DRIV, the iShares Self-Driving EV and Tech ETF IDRV and the KraneShares Electric Vehicles and Future Mobility Index ETF KARS, please watch the short video above.
In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs.
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
Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports
Tesla, Inc. (TSLA) : Free Stock Analysis Report
KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports
iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports
Lucid Group, Inc. (LCID) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Tesla controls about 65% of the US EV market and remains years ahead of competitors, with vastly higher profit margins.
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In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. To learn about the Global X Autonomous & Electric Vehicles ETF DRIV, the iShares Self-Driving EV and Tech ETF IDRV and the KraneShares Electric Vehicles and Future Mobility Index ETF KARS, please watch the short video above.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Earlier this month, the EV giant slashed prices on some of its models and Ford Motor F announced price cuts on its electric Mustang Mach-E yesterday, stepping up price wars in the EV market.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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17339.0
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2023-01-31 00:00:00 UTC
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EU studying whether Big Tech should pay network costs -EU document
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AAPL
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https://www.nasdaq.com/articles/eu-studying-whether-big-tech-should-pay-network-costs-eu-document
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nan
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By Foo Yun Chee
BRUSSELS, Jan 31 (Reuters) - The European Union (EU) will consult the technology and telecoms sectors on whether tech giants like Alphabet Inc's Google GOOGL.O, Meta META.O and Amazon.com Inc AMZN.O should subsidize network costs, according to a Commission document seen by Reuters on Tuesday.
EU telecoms providers including Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI say the six largest content providers account for more than half of data internet traffic and should contribute their fair share. The providers also point to Netflix Inc NFLX.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O.
The tech giants say the idea is equivalent to an internet traffic tax that could interfere with Europe's net neutrality rules treating all users equally.
The commission's query is part of a 19-page document the EU executive drafted before it proposes legislation.
The EU executive is expected to publish the document next week to garner feedback from telecoms operators and Big Tech, although the timing may change. The next step is an agreement with EU countries and lawmakers to finalise the legislation.
"Some stakeholders have suggested a mandatory mechanism of direct payments from CAPs (content application providers)/LTGs (large traffic generator) to contribute to finance network deployment. Do you support such suggestion and if so why? If no, why not?" the questionnaire asked.
The questionnaire also asks who the mechanism should apply t; whether it would negatively impact innovation, the internet ecosystem and consumers; and whether the EU should create a continental or digital levy or fund.
The EU will also query Big Tech and telecoms providers' investment spending and future developments, confirming a Reuters storythis month.
"The Commission's questionnaire is basically asking questions that seek to justify the 'fair share' narrative pushed by big telcos. What is more, it seems to ignore the impact on consumers and fundamental net neutrality protections," an industry source said.
"The Commission is also asking for detailed business information, such as peering contracts, that is usually confidential. This effectively excludes key stakeholders from taking part.
(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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The providers also point to Netflix Inc NFLX.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O. The tech giants say the idea is equivalent to an internet traffic tax that could interfere with Europe's net neutrality rules treating all users equally. "Some stakeholders have suggested a mandatory mechanism of direct payments from CAPs (content application providers)/LTGs (large traffic generator) to contribute to finance network deployment.
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The providers also point to Netflix Inc NFLX.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O. EU telecoms providers including Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI say the six largest content providers account for more than half of data internet traffic and should contribute their fair share. The commission's query is part of a 19-page document the EU executive drafted before it proposes legislation.
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The providers also point to Netflix Inc NFLX.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, Jan 31 (Reuters) - The European Union (EU) will consult the technology and telecoms sectors on whether tech giants like Alphabet Inc's Google GOOGL.O, Meta META.O and Amazon.com Inc AMZN.O should subsidize network costs, according to a Commission document seen by Reuters on Tuesday. EU telecoms providers including Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI say the six largest content providers account for more than half of data internet traffic and should contribute their fair share.
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The providers also point to Netflix Inc NFLX.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O. The commission's query is part of a 19-page document the EU executive drafted before it proposes legislation. "Some stakeholders have suggested a mandatory mechanism of direct payments from CAPs (content application providers)/LTGs (large traffic generator) to contribute to finance network deployment.
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17340.0
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2023-01-31 00:00:00 UTC
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Apple workplace rules violate U.S. labor law, agency finds
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AAPL
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https://www.nasdaq.com/articles/apple-workplace-rules-violate-u.s.-labor-law-agency-finds
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nan
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By Daniel Wiessner
Jan 31 (Reuters) - Apple Inc AAPL.O maintains workplace policies that unlawfully discourage employees from discussing working conditions, a U.S. labor agency has found.
The National Labor Relations Board will issue a complaint targeting the policies and claiming Apple executives made comments that stymied worker organizing unless the company settles first, an agency official said on Monday in an email reviewed by Reuters.
The official had sent the email to Ashley Gjovik, a former Apple senior engineering manager who filed complaints against the company in 2021.
The NLRB investigates charges filed by workers and unions and decides whether to issue formal complaints against companies. The agency can seek to strike down workplace policies and require employers to notify workers of legal violations.
Apple did not respond to a request for comment. The company has said it takes worker complaints seriously and thoroughly investigates them.
An NLRB spokeswoman did not immediately respond to a request for comment.
Gjovik in an email on Tuesday said she hoped the development will spur more Apple workers to speak up about working conditions and to organize.
In her complaints, Gjovik said various Apple rules, including those relating to confidentiality and surveillance policies, deter employees from discussing issues such as pay equity and sex discrimination with each other and the media.
Gjovik also cited a 2021 email from Apple Chief Executive Tim Cook that allegedly sought to stop workers from speaking to the press and said "people who leak confidential information do not belong here."
Many tech companies have strict confidentiality policies designed to protect trade secrets.
U.S. labor law prohibits policies that could discourage workers from exercising their right to band together to improve working conditions.
Apple is facing several pending NLRB complaints, including one claiming the tech giant unlawfully required workers at an Atlanta retail store to attend anti-union meetings. Apple has denied wrongdoing.
(Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi and Bernadette Baum)
((daniel.wiessner@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 Daniel Wiessner Jan 31 (Reuters) - Apple Inc AAPL.O maintains workplace policies that unlawfully discourage employees from discussing working conditions, a U.S. labor agency has found. The National Labor Relations Board will issue a complaint targeting the policies and claiming Apple executives made comments that stymied worker organizing unless the company settles first, an agency official said on Monday in an email reviewed by Reuters. In her complaints, Gjovik said various Apple rules, including those relating to confidentiality and surveillance policies, deter employees from discussing issues such as pay equity and sex discrimination with each other and the media.
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By Daniel Wiessner Jan 31 (Reuters) - Apple Inc AAPL.O maintains workplace policies that unlawfully discourage employees from discussing working conditions, a U.S. labor agency has found. The National Labor Relations Board will issue a complaint targeting the policies and claiming Apple executives made comments that stymied worker organizing unless the company settles first, an agency official said on Monday in an email reviewed by Reuters. Apple is facing several pending NLRB complaints, including one claiming the tech giant unlawfully required workers at an Atlanta retail store to attend anti-union meetings.
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By Daniel Wiessner Jan 31 (Reuters) - Apple Inc AAPL.O maintains workplace policies that unlawfully discourage employees from discussing working conditions, a U.S. labor agency has found. The National Labor Relations Board will issue a complaint targeting the policies and claiming Apple executives made comments that stymied worker organizing unless the company settles first, an agency official said on Monday in an email reviewed by Reuters. In her complaints, Gjovik said various Apple rules, including those relating to confidentiality and surveillance policies, deter employees from discussing issues such as pay equity and sex discrimination with each other and the media.
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By Daniel Wiessner Jan 31 (Reuters) - Apple Inc AAPL.O maintains workplace policies that unlawfully discourage employees from discussing working conditions, a U.S. labor agency has found. The official had sent the email to Ashley Gjovik, a former Apple senior engineering manager who filed complaints against the company in 2021. Gjovik in an email on Tuesday said she hoped the development will spur more Apple workers to speak up about working conditions and to organize.
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17341.0
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2023-01-31 00:00:00 UTC
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Q4 Earnings Season Scorecard and Analyst Reports for Apple, Meta & Mastercard
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AAPL
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https://www.nasdaq.com/articles/q4-earnings-season-scorecard-and-analyst-reports-for-apple-meta-mastercard
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nan
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nan
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Tuesday, January 31, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Incorporated (MA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q4 Earnings Season Scorecard
Including all the reports that came out before the market's open this morning (January 31st), we now have Q4 results from 167 S&P 500 membrers or 33.4% of the index's total membership.
Total earnings for these companies are up +2.1% from the same period last year on +7.5% higher revenues, with 73.1% beating EPS estimates and 68.9% beating revenue estimates.
The growth pace for these 167 index members, for earnings as well as revenues, is in-line with the expected decelerating trend. That said, there is a divergence between the Q4 EPS and revenue beats percentages, with revenue beats about in-line with historical trends but EPS beats on the low side.
Looking at Q4 as a whole, combining the actual results that have come out with estimates for the still-to-come companies, S&P 500 earnings are on track to be down -6.3% from the same period last year on +4.7% higher revenues.
For the current peirod (2023 Q1), S&P 500 earnings are currently expected to be down -6.2% on +2.3% higher revenues. Estimates for the period have been coming down, with the current -6.2% expected decline down from -4% on January 6th and -2.9% in mid-December 2022.
This could change as go through the remainder of this reporting cycle. But at this stage in the Q4 earnings season, the magnitude of negative revisions isn't of the level that many in the market appeared to fear a few weeks back. It is primarily in this context that the Q4 earnings season has proven, at this stage at least, to be better than feared.
Today's Featured Analyst Reports
Shares of Apple have held up better than the broader Tech sector over the past year (-18% vs. -23.9% for the Zacks Tech sector), but have lagged the broader market (-18% vs. -13% for the S&P 500 index). The company’s holiday season iPhone shipments are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou. The Zacks analyst expects Apple to ship roughly 70 million iPhones in the first quarter of fiscal 2023.
The company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.
(You can read the full research report on Apple here >>>)
Shares of Meta Platforms have underperformed the Zacks Internet - Software industry over the past year (-53.9% vs. -48.0%). The company is suffering from challenging macroeconomic conditions that is negatively impacting its advertising spending. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
User base in Europe declined in the reported quarter. Meta’s fourth-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. Meta expects Reels to monetize much slower than feed or stories. Shares have underperformed the industry in the past year.
However, Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
(You can read the full research report on Meta Platforms here >>>)
Shares of Mastercard have declined -5.3% over the past year against the Zacks Financial Transaction Services industry’s decline of -10.8%. The company’s steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. Its dividend yield is still lower than the industry average. As such, the stock warrants a cautious stance.
However, Numerous acquisitions are helping the company to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for MA's business to expedite its shift to the digital mode.
The company’s growing footprint in the crypto universe can position it for long-term growth. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions and deploy capital.
(You can read the full research report on Mastercard here >>>)
Other noteworthy reports we are featuring today include Elevance Health Inc. (ELV), CVS Health Corporation (CVS) and Ameriprise Financial, Inc. (AMP).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Apple (AAPL) Banks on Services to Counter Weak iPhone Demand
User Growth, Instagram Strength Aids Meta Platforms (META)
Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)
Featured Reports
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. However, rising costs are denting profits.
CVS Health (CVS) Digital Offerings Grow Amid Stiff Rivalry
The Zacks analyst is impressed with CVS Health's expansion in digital offering with the addition of 1 million new customers during Q3. Yet, stiff rivalry remains a concern.
Hormel Foods (HRL) Benefits From Focus on Prudent Buyouts
Per the Zacks analyst, Hormel Foods is strengthening its business on the back of strategic acquisitions. The company is likely to keep gaining from the Planters and Sadler's Smokehouse buyouts.
BioMarin's (BMRN) Progress with Gene Therapies Encouraging
While BioMarin's existing drugs continue to drive its topline, the Zacks Analyst is encouraged by BioMarin's launch of two new gene therapy treatments in its portfolio.
FUJIFILM (FUJIY) To Benefit From Strong Product Portfolio
Per the Zacks analyst, FUJIFILM's performance is gaining from strong revenue growth across all business segments. Also, strategic collaborations bodes well.
Mohawk (MHK) Rides on Restructuring Plan, Lower Volume Ail
Per the Zacks analyst, strategic/restructuring initiatives to improve profitability are likely to aid Mohawk. Yet, lower volume and higher unabsorbed costs and material inflation hurt.
Strong Demand Aid SunPower (SPWR) Growth, Tariff Impacts Hit
Per the Zacks Analyst, strong demand in residential and commercial markets aid SunPower's growth prospects. Yet, the extended tariff on import of Chinese solar energy equipment, may hurt its earnings.
New Upgrades
Business Restructuring Efforts to Support Ameriprise (AMP)
Per the Zacks analyst, Ameriprise's efforts to restructure operations, focus on core businesses and robust assets under management (AUM) balance will support revenues.
Pro-Investor Steps and Liquidity Boost Interpublic (IPG)
Per the Zacks analyst, increasing current ratio indicates that Interpublic has no problem meeting its short-term obligations. Also, shareholder-friendly steps are tailwinds.
Sales Process Initiatives to Drive Applied Industrial (AIT)
The Zacks analyst is encouraged by Applied Industrial's growth owing to sales process initiativesp, break-fix MRO activity and ongoing pricing actions in its Service Center Based Distribution segment.
New Downgrades
Asset Concentration, Lack of Hedging to Hurt Magnolia (MGY)
The Zacks analyst is worried about Magnolia Oil & Gas' lack of geographic dispersal of properties. The absence of any hedge protection also makes it more exposed to commodity price volatility.
High Costs, Loan Concentration to Hurt Valley National (VLY)
Per the Zacks analyst, elevated expenses due to inorganic growth efforts will likely hurt Valley National's profits. A concentrated loan portfolio is another woe which makes us apprehensive.
Elevated Costs, Fee Income Woes Hurt Bank of Hawaii (BOH)
Per the Zacks analyst, rising costs due to investments in technology and innovation will likely hurt Bank of Hawaii's profits. A decline in fee income due to lower mortgage banking income is a woe.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : 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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand User Growth, Instagram Strength Aids Meta Platforms (META) Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA) Featured Reports Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Incorporated (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Incorporated (MA). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand User Growth, Instagram Strength Aids Meta Platforms (META) Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA) Featured Reports Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Incorporated (MA). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand User Growth, Instagram Strength Aids Meta Platforms (META) Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA) Featured Reports Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand User Growth, Instagram Strength Aids Meta Platforms (META) Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA) Featured Reports Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Today's Research Daily features a real-time update on the ongoing Q4 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Mastercard Incorporated (MA). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17342.0
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2023-01-31 00:00:00 UTC
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Validea Daily Guru Fundamental Report for AAPL - 1/31/2023
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AAPL
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https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-aapl-1-31-2023
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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 twelve 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 twelve 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 twelve 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 twelve 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 twelve 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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17343.0
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2023-01-31 00:00:00 UTC
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GLOBAL MARKETS-World stocks waver as investors catch central bank jitters
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AAPL
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https://www.nasdaq.com/articles/global-markets-world-stocks-waver-as-investors-catch-central-bank-jitters-0
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nan
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nan
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By Nell Mackenzie
LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data.
Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points (bps) on Wednesday. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers.
Tuesday sees the release of fourth-quarter labour costs, while Friday brings the all-important January non-farm payrolls report.
"Reality is setting in," said Bruno Schneller, a managing director at INVICO Asset Management in Zurich.
Equity markets may have factored in the end of central bank rate hikes, but they do not yet reflect the potential hit to earnings from a slowing economy, Schneller said.
"Recent corporate results, especially 2023 guidance, indicate a negative outlook leading us to maintain a reduced position in equities," he said.
"In the shorter term, there doesn't appear to be an obvious safe haven for investors," said Schneller.
European shares dropped on Tuesday, dented by healthcare stocks, with the Euro Stoxx index .STOXX down 0.8%, Germany's DAX .GDAXI falling 0.7% and the FTSE .FTSE 0.8% lower. U.S. stock futures, the S&P 500 e-minis ESc1, were down 0.4%.
"This whole week is about rate hikes but from a credit markets point of view, credit spreads have traded back to the pre-Ukraine invasion levels," said Azhar Hussain, head of global credit at Royal London Asset Management.
Credit spreads, the difference between the yields of two different debt instruments with the same maturity, are often taken by traders to indicate market stability and company financial health.
"Over the last 12-months, yields have traded much higher than predicted a year ago. Compare that to valuations and the two are out of sync," said Hussain.
"Where investors should feel more nervous is with company valuations," he said.
U.S. stock futures .ESc1, .NQc1 fell, pointing to a lower open for the benchmark indexes following Monday's losses.
At the end of the Fed's two-day policy meeting on Wednesday, investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
U.S. Treasury yields edged lower ahead of the central bank meetings and economic data, with the benchmark 10-year note down 3 bps at 3.522% US10YT=RR.
The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, fell 3 bps on the day to 4.226%.
In currencies, the U.S. dollar index, which was poised for its fourth month of declines, was up 0.2% at 102.44 against a basket of other major currencies. =USD
The euro EUR= fell 0.1% to $1.0835, but was still heading for a gain of 1% this month.
In the energy market, oil prices fell ahead of the expected hikes by central banks and on the back of data that showed Russian exports are rising, despite international sanctions.
Brent crude LCOc1 fell 1% to $84.08 per barrel.
Spot gold XAU= also dropped 1% to $1,902.68 per ounce, driven lower by a stronger dollar. GOL/
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Julie Zhu; Editing by Emelia Sithole-Matarise and Mark Potter)
((Nell.mackenzie@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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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. By Nell Mackenzie LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data. At the end of the Fed's two-day policy meeting on Wednesday, investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. "This whole week is about rate hikes but from a credit markets point of view, credit spreads have traded back to the pre-Ukraine invasion levels," said Azhar Hussain, head of global credit at Royal London Asset Management. U.S. Treasury yields edged lower ahead of the central bank meetings and economic data, with the benchmark 10-year note down 3 bps at 3.522% US10YT=RR.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. By Nell Mackenzie LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps. "This whole week is about rate hikes but from a credit markets point of view, credit spreads have traded back to the pre-Ukraine invasion levels," said Azhar Hussain, head of global credit at Royal London Asset Management.
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17344.0
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2023-01-31 00:00:00 UTC
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GLOBAL MARKETS-Asian stocks edge down as investors eye central bank hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-stocks-edge-down-as-investors-eye-central-bank-hikes
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nan
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nan
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By Julie Zhu
Jan 31 (Reuters) - Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data.
Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points (bps) on Wednesday. Interest rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers.
"It's a big week for both central banks and U.S. equities, with ... some of the household names due to make earnings announcements that will provide a micro overview of the macro economy," ANZ analysts said in a note.
"We expect a 25 bps (U.S.) rate rise and anticipate that the Fed will caution against an early pause in the tightening cycle .... Risk appetite could be vulnerable to a correction."
European markets were set for a lower open, with pan-region Euro Stoxx 50 futures STXEc1 down 0.48%, German DAX futures FDXc1 falling 0.47% and FTSE futures FFIc1 dropping 0.29%. U.S. stock futures, the S&P 500 e-minis ESc1, were down 0.06%.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUSwas 1.1% lower. The index is up 9.9% so far this month and is on course for its best January performance since 2012.
Japan's Nikkei stock index .N225 slid 0.23% while Australian shares .AXJO were down 0.15%.
China's economic activity swung back to growth in January, after a wave of COVID-19 infections passed through the country faster than expected following abandonment of pandemic controls. The official purchasing managers' index, which measures manufacturing activity, rose to 50.1 from 47.0 in December.
Investors remained cautious, however, looking for more signs of recovery in the pandemic-hit economy. China's blue-chip CSI300 index .CSI300 was down 1% in afternoon trade after reaching a half-year high on Monday.
While Hong Kong's Hang Seng index .HSI dropped 1.23% on Tuesday, it was still set to post its best January performance since 1989.
On Monday, U.S. stocks lost ground, with the major indexes sinking, weighed down by declines in technology and other giant corporations' shares.
The Dow Jones Industrial Average .DJI fell 0.8% to 33,717.09, the S&P 500 .SPX lost 1.3% to 4,017.77 and the Nasdaq Composite .IXIC dropped 2.0% to 11,393.81.
Despite Monday's declines, the S&P 500 remained on track to post its biggest January gain since 2019.
At the end of the Fed's two-day policy meeting on Wednesday, investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
Markets will also grapple with a flood of U.S. economic data, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labour market as a key factor in bringing down high inflation.
U.S. Treasury yields remained firm ahead of the central bank meetings and economic data, with the yield on benchmark 10-year Treasury notes US10YT=RR standing at 3.5457% compared with its U.S. close of 3.551% on Monday.
The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, touched 4.2424% compared with a U.S. close of 4.261%.
In currencies, the U.S. dollar, which was poised for its fourth month of declines, was slightly up at 102.29 against a basket of other major currencies.
The European single currency EUR=was largely unchanged on the day at $1.0841, having gained 1.3% in a month.
In the energy market, oil prices fell ahead of the expected hikes by central banks and signals of strong Russian exports.
U.S. crude CLc1 dipped 0.44% to $77.56 a barrel. Brent crude LCOc1 fell to $84.85 per barrel.
Gold was slightly lower. Spot gold XAU= was traded at $1920.84 per ounce. GOL/
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banerjee; Editing by Kenneth Maxwell and B)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.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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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. "It's a big week for both central banks and U.S. equities, with ... some of the household names due to make earnings announcements that will provide a micro overview of the macro economy," ANZ analysts said in a note.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. Interest rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. Interest rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. Despite Monday's declines, the S&P 500 remained on track to post its biggest January gain since 2019.
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17345.0
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2023-01-31 00:00:00 UTC
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Is Intel a Value Stock or a Value Trap for 2023?
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AAPL
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https://www.nasdaq.com/articles/is-intel-a-value-stock-or-a-value-trap-for-2023
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nan
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nan
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Intel (NASDAQ: INTC) could not have kicked off 2023 in worse fashion. Its fourth-quarter 2022 earnings were near the bottom of the already not-great guidance it had provided a few months ago, and the first quarter of 2023 is going to be even uglier. Intel has a very difficult and expensive uphill battle ahead of it as it tries to catch up to its peers on multiple fronts.
By some metrics, Intel may actually appear like an incredible value at this point. Indeed, the stock price hasn't been this low in years and trades for less than 1.7 times trailing-12-month sales -- a meager metric that semiconductor stocks rarely trade for. But there are good reasons for the pessimism a would-be value hunter should be aware of, because Intel could very well be a value trap (a stock that looks cheap but isn't).
Intel's silver lining isn't much more than a consolation prize
Intel's Q4 2022 revenue and non-GAAP (adjusted) earnings per share (EPS) fell a respective 32% and 92% compared to a year ago. Things will get worse before they get better. Revenue, at the midpoint of guidance, will fall another 40% year over year in the first quarter of 2023. Adjusted EPS will swing to negative $0.15, compared to positive $0.87 in Q1 2022.
CEO Pat Gelsinger and the top team also declined to provide any full-year 2023 guidance. While it somewhat echoed second-half 2023 optimism as the chip industry deals with excess inventory in PCs and laptops, it left open the possibility that full-year 2023 earnings and free cash flow could wind up being in the red. In other words, based on current and immediate-term profitability (or complete lack thereof in this case), Intel is no value stock.
Gelsinger and company have often pointed out (including on the last earnings call) that the company is rapidly improving its process manufacturing to catch up with Taiwan Semiconductor Manufacturing (NYSE: TSM). I take issue with this, though. While Intel is indeed catching up to AMD (NASDAQ: AMD) with its designs for PC and laptop processors -- currently Intel's bread-and-butter -- it's terrible timing. Consumers are pulling back on computer spending in grand fashion. Market share gains for Intel, yes, but it's a shrinking market. Plus, there's also Apple (NASDAQ: AAPL) and its top-notch in-house design M-series chips for its MacBooks, which are clobbering Intel in computing performance.
And then there's the data center segment, where all the semiconductor industry growth is really to be had these days. Intel is still woefully behind and ceding market share here to AMD, which has dramatically shifted its focus away from consumer-facing products to emphasize enterprise chips for the cloud and data centers. While AMD and others grow in this department, Intel is in retreat.
INTEL SEGMENT
Q4 2022 REVENUE
YOY INCREASE (DECREASE)
Client computing group (CCG)
$6.6 billion
(36%)
Data center and AI
$4.3 billion
(33%)
Network and edge (NEX)
$2.1 billion
(1%)
Mobileye (NASDAQ: MBLY)
$565 million
59%
Accelerated computing and graphics (ACX)
$247 million
1%
Intel Foundry Services (IFS)
$319 million
30%
Data source: Intel.
Intel promises it will recapture its design and manufacturing leadership by 2025. Maybe it will. But that will be an expensive endeavor that will hinge on new (and incredibly expensive) equipment purchased from ASML (NASDAQ: ASML). Thus, I think Intel's most bullish silver lining from its recent investor updates is more of a nod to ASML than a boon to Intel.
Deprioritizing its current superstars
Moving beyond Intel's top revenue segments, there appeared to be more good news from the Network and edge (NEX) segment, as well as from automotive technology chip subsidiary Mobileye. But not so fast!
Though the NEX segment held up relatively well in the last year (it reported record revenue in 2022), Intel is in cost-cutting mode to try and shore up its withering profit margins. In its search for cash, it has decided to cut future investments into NEX -- specifically its network-switching portfolio. Unfortunately, in the world of chip design, stopping investment in research and development is essentially waving the flag in surrender.
The investment cut apparently includes the Tofino ethernet switch chips, which trace their roots to a small acquisition in 2019. But even in this department, Intel is lagging behind the competition from the likes of Broadcom, Marvell Technology Group, and more recent entries into the space like Nvidia, which acquired network switching specialist Mellanox in early 2020.
Basically, up to $9 billion in annual revenue from Intel NEX could now be up for grabs.
And what of Mobileye, a leader in providing chips for advanced driver assist systems (ADAS) and self-driving car chips? Remember that Intel partially spun out Mobileye in 2022 and sold 5% of its stake to raise some cash. Up to this point, Intel has indicated it could use Mobileye's relisting on stock exchanges to sell shares and raise cash. If I were an Intel shareholder, I would hope this isn't the plan. That would be akin to treating your star racehorse like a dairy cow.
For the time being, Intel says it still owns 94% of Mobileye shares.
There needs to be better news to warrant a buy
With most other semiconductor companies remaining profitable and indicating their businesses will return to growth by the second half of 2023, Intel's current outlook is dismal. Revenue is in sharp retreat and could remain so for the foreseeable future. Moreover, the balance sheet is in just OK shape, with cash and short-term investments of $28 billion, offset by debt of $42 billion.
Until the company can provide some more concrete guidance on its recovery -- and return to profitability because it certainly should at least be that with $11 billion in quarterly revenue expected in Q1 -- this looks like a value trap. There are far better semiconductor stocks to buy now that have a much better risk-to-reward payoff than Intel stock offers. So I'll double down on what I said a few months ago and say it's way too early to bet on an Intel recovery.
10 stocks we like better than Intel
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 Intel 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 January 9, 2023
Nicholas Rossolillo and his clients have positions in ASML, Advanced Micro Devices, Apple, Broadcom, Marvell Technology, and Nvidia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Marvell Technology and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, 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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Plus, there's also Apple (NASDAQ: AAPL) and its top-notch in-house design M-series chips for its MacBooks, which are clobbering Intel in computing performance. While it somewhat echoed second-half 2023 optimism as the chip industry deals with excess inventory in PCs and laptops, it left open the possibility that full-year 2023 earnings and free cash flow could wind up being in the red. Intel is still woefully behind and ceding market share here to AMD, which has dramatically shifted its focus away from consumer-facing products to emphasize enterprise chips for the cloud and data centers.
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Plus, there's also Apple (NASDAQ: AAPL) and its top-notch in-house design M-series chips for its MacBooks, which are clobbering Intel in computing performance. Client computing group (CCG) $6.6 billion (36%) Data center and AI $4.3 billion (33%) Network and edge (NEX) $2.1 billion (1%) Mobileye (NASDAQ: MBLY) $565 million 59% Accelerated computing and graphics (ACX) $247 million 1% Intel Foundry Services (IFS) $319 million 30% Data source: Intel. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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Plus, there's also Apple (NASDAQ: AAPL) and its top-notch in-house design M-series chips for its MacBooks, which are clobbering Intel in computing performance. Intel's silver lining isn't much more than a consolation prize Intel's Q4 2022 revenue and non-GAAP (adjusted) earnings per share (EPS) fell a respective 32% and 92% compared to a year ago. Client computing group (CCG) $6.6 billion (36%) Data center and AI $4.3 billion (33%) Network and edge (NEX) $2.1 billion (1%) Mobileye (NASDAQ: MBLY) $565 million 59% Accelerated computing and graphics (ACX) $247 million 1% Intel Foundry Services (IFS) $319 million 30% Data source: Intel.
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Plus, there's also Apple (NASDAQ: AAPL) and its top-notch in-house design M-series chips for its MacBooks, which are clobbering Intel in computing performance. There needs to be better news to warrant a buy With most other semiconductor companies remaining profitable and indicating their businesses will return to growth by the second half of 2023, Intel's current outlook is dismal. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Intel wasn't one of them!
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17346.0
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2023-01-31 00:00:00 UTC
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Biggest Earnings Week of the Season: Key Stocks to Watch
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AAPL
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https://www.nasdaq.com/articles/biggest-earnings-week-of-the-season%3A-key-stocks-to-watch
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nan
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nan
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The week of January 30th is arguably the most critical week of this earnings season. Some of the names reporting this week include energy, biotech, and mega-cap tech stocks. Below, we highlight some of the most watched EPS reports of the week:
Tuesday 1/31 (Before Market Open):
Exxon Mobil XOM is set to report earnings before the market opens today. The oil juggernaut is a bellwether in the energy space and will provide investors with clues about how much is left in the tank for the energy group. The stock has been a top performer amid geopolitical events in Ukraine and higher oil prices. XOM has surprised to the upside for two straight quarters.
Image Source: Zacks Investment Research
Pfizer PFE, the giant behind the COVID-19 vaccine, is one of the major beneficiaries of the pandemic. In 2022, the biotech reported record earnings numbers. However, recently, the company has been facing growing scrutiny after the Director of Research and Development divulged to an undercover journalist that the company is weighing purposely mutating the COVID-19 virus in the name of profits. The stock is on a five-week losing streak, and multiple insiders have sold seven figures worth of stock in recent months. Watch how management addresses the recent scrutiny and monitor how the stock reacts post-earnings.
Image Source: Zacks Investment Research
Tuesday 1/31 (After Market Close):
Advanced Micro Devices AMD is a semiconductor leader and one of the strongest challengers to Nvidia’s NVDA dominance in the graphic processing unit (GPU) market. Semiconductors are on the mend in recent months as the recent popularity of ChatGpt, and other AI platforms are expected to help boost earnings.
Snap SNAP is the creator of Snapchat, a mobile video application that helps people to communicate through short videos called Snaps. Snap has been on a free fall as Chinese-based ByteDance has taken market share with its competing short video-sharing platform Tiktok. However, there is renewed interest in the stock after Josh Hawley announced he would introduce a bill to ban Tiktok in the United States amid national security concerns. Monday, SNAP showed bucked the market trend and rose. Shares are trying to emerge from a multi-month price structure.
Image Source: Zacks Investment Research
Wednesday 2/1 (After Market Close):
Meta Platforms META, the parent company of Facebook, Instagram, and WhatsApp, is slated to kick off a slew of mega-cap tech earnings Wednesday. Like Snap, Meta shares stand to benefit from a potential Tiktok ban. Investors will also be watching what CEO Mark Zuckerberg has to say about the bold bet the company is making on the metaverse. Investors have punished shares of META over the past year as the company focuses more on the metaverse and less on its core social media business. Meta has a robust Zack’s Earnings Expected Surprise Prediction (ESP) of 13.39%, suggesting that the social media giant is likely to beat earnings expectations.
Thursday 2/2 (After Market Close):
From a tech perspective, Thursday marks the biggest day of earnings season. Amazon AMZN, Apple AAPL, and Alphabet GOOGL are set to report. Just how big of a bearing do these three names have on tech? The three tech monsters have a combined market cap of over $4 trillion and account for roughly 25% of the Nasdaq 100 ETF QQQ. All three names are approaching the underside of their 200-day moving averages – a critical price zone to monitor in the short-term.
Image Source: Zacks Investment Research
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Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : 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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Amazon AMZN, Apple AAPL, and Alphabet GOOGL are set to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, there is renewed interest in the stock after Josh Hawley announced he would introduce a bill to ban Tiktok in the United States amid national security concerns.
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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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon AMZN, Apple AAPL, and Alphabet GOOGL are set to report. Below, we highlight some of the most watched EPS reports of the week: Tuesday 1/31 (Before Market Open): Exxon Mobil XOM is set to report earnings before the market opens today.
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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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon AMZN, Apple AAPL, and Alphabet GOOGL are set to report. Below, we highlight some of the most watched EPS reports of the week: Tuesday 1/31 (Before Market Open): Exxon Mobil XOM is set to report earnings before the market opens today.
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Amazon AMZN, Apple AAPL, and Alphabet GOOGL are set to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Some of the names reporting this week include energy, biotech, and mega-cap tech stocks.
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17347.0
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2023-01-31 00:00:00 UTC
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Better Tech Stock in 2023: Apple vs. AMD
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https://www.nasdaq.com/articles/better-tech-stock-in-2023%3A-apple-vs.-amd
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Tech stocks have been on the rise since Jan. 1, beginning to recover from the steep declines they suffered in 2022. Investors have rallied around Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), with both companies' shares up more than 10% in the new year.
Apple has a variety of new products launching this year, including one that will see it venture into a high-growth market. Meanwhile, AMD's booming data center business recently got a huge leg up on Intel, one of its biggest competitors.
Apple and AMD would likely be an asset to any portfolio, offering substantial and consistent long-term growth, with both companies' stocks enjoying triple-digit gains over the last five years. But if you're only looking to add shares of one of these tech specialists right now, you'll need to know which is the better buy in 2023. Let's find out.
Apple seeks new strength through independence
After a year plagued with macroeconomic headwinds, the theme of Apple's 2023 seems to be striving for independence, starting with its iPhone. This priority on moving away from relying on other companies to manufacture a product that made up 52% of its revenue in 2022 is positive for Apple's long-term stability and growth.
On Jan. 9, Bloomberg reported Apple will begin using homegrown telecom and Wi-Fi/Bluetooth chips by 2025, ending partnerships with current sources Qualcomm and Broadcom. Then on Jan. 11., Bloomberg revealed the Mac maker would be swapping out iPhone screens from Samsung and LG for in-house designed versions.
Both moves will reduce operating costs, allowing Apple to earn more per phone, which adds extra protection to its business in the case of further economic challenges weakening demand.
In addition to component independence, Apple is taking steps to differentiate the iPhone's operating system from Alphabet's Google apps by improving offerings concerning maps, search, and advertising. Apple's attitude going forward seems to be if there's money to be made from its most in-demand product, it will be the company to make it.
Apple shares have risen 242% since 2018. With potentially boosted profits in its iPhone business over the long term and high demand for its other popular products and services, the company is absolutely worth an investment in 2023.
AMD shows potential with data center innovation
AMD shares plummeted 55% in 2022 as declines in the PC market sent investors running for the hills. The company has gradually begun to recover in 2023, with its stock up 12% since Jan. 1.
Despite a challenging year, AMD has much to offer over the long term, as evidenced by its 463% gains since 2018. It's not out of the woods in regards to the sluggish PC market. However, its booming data center business makes the semiconductor company an attractive potential investment.
In the third quarter of 2022, AMD's data center segment made up the greatest portion of revenue, rising 45% year over year to $1.6 billion. And the business is looking more lucrative with the launch of AMD's new generation of data center chips. The Genoa chips, which were released in November, already have cloud platforms such as Microsoft's Azure, Oracle, and Alphabet's Google signed on as clients.
However, more impressive is AMD's leg up on Intel's data center chips, which were unveiled on Jan. 10. The Intel chips, called Sapphire Rapids, had gone through four delays, which led them to be released two years later than expected. In addition to being tardy, Bernstein analyst Stacy Rasgon claims that recent benchmarks show AMD's Genoa outperforms Sapphire Rapids on "general purpose workloads."
With a more powerful chip -- the Genoa-X -- due to launch later this year, AMD could be well positioned in the quickly growing data center market.
Which is the better buy?
Apple and AMD both have excellent long-term outlooks, with solid positions in some of the world's most lucrative markets. In order to determine which might be the better buy today, we can look at a few valuation metrics that help indicate whether a company's stock price aligns with its financial performance. Comparing price-to-earnings ratios, Apple's P/E ratio of 23.4 makes its stock a better bargain than AMD's P/E ratio of 43.4. Using this metric alongside the price-to-free cash flow metric, which helps gauge how much cash a company has on hand relative to its stock price, we can see that the iPhone company has clearly overcome an economically challenging year in better form (Apple's P/FCF ratio is 21; whereas, AMD's is 31.3).
Ultimately, Apple is currently in a more stable, reliable position. This makes it the better tech stock in 2023. However, AMD is still a company to keep a close eye on and potentially invest in at the next opportunity.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has positions in LG Display. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Microsoft, and Qualcomm. The Motley Fool recommends Broadcom and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, 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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Investors have rallied around Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), with both companies' shares up more than 10% in the new year. Both moves will reduce operating costs, allowing Apple to earn more per phone, which adds extra protection to its business in the case of further economic challenges weakening demand. In addition to component independence, Apple is taking steps to differentiate the iPhone's operating system from Alphabet's Google apps by improving offerings concerning maps, search, and advertising.
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Investors have rallied around Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), with both companies' shares up more than 10% in the new year. AMD shows potential with data center innovation AMD shares plummeted 55% in 2022 as declines in the PC market sent investors running for the hills. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Microsoft, and Qualcomm.
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Investors have rallied around Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), with both companies' shares up more than 10% in the new year. Apple and AMD would likely be an asset to any portfolio, offering substantial and consistent long-term growth, with both companies' stocks enjoying triple-digit gains over the last five years. Using this metric alongside the price-to-free cash flow metric, which helps gauge how much cash a company has on hand relative to its stock price, we can see that the iPhone company has clearly overcome an economically challenging year in better form (Apple's P/FCF ratio is 21; whereas, AMD's is 31.3).
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Investors have rallied around Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), with both companies' shares up more than 10% in the new year. But if you're only looking to add shares of one of these tech specialists right now, you'll need to know which is the better buy in 2023. AMD shows potential with data center innovation AMD shares plummeted 55% in 2022 as declines in the PC market sent investors running for the hills.
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17348.0
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2023-01-31 00:00:00 UTC
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Where Will Broadcom Stock Be In 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-broadcom-stock-be-in-1-year
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Broadcom's (NASDAQ: AVGO) stock rose about 3.8% over the past 12 months. During that same period, the S&P 500 declined 9.3%, and the PHLX Semiconductor Sector index lost 13.2% of its value.
Broadcom outperformed the market and many of its industry peers for four reasons. It wasn't heavily exposed to the declining PC market, it generated stable revenues from its infrastructure-oriented businesses, its stock was cheap, and it paid a high dividend. Those strengths made it a good safe haven play as rising interest rates crushed the tech sector's pricier and more speculative stocks. But will Broadcom continue to outperform the market over the next 12 months?
Image source: Getty Images.
Understanding Broadcom's business
Avago Technologies, a chipmaker originally based in Singapore, acquired the original Broadcom in 2016. It subsequently adopted its name and relocated its headquarters to the United States in 2018. The "new" Broadcom continued to expand by buying the network gear maker Brocade in 2017, the software company CA Technologies in 2018, and Symantec's enterprise security business in 2019. It nearly bought Qualcomm via a hostile takeover which was blocked by the U.S. government in 2018, and it's in the process of acquiring the cloud software giant VMware (NYSE: VMW).
Broadcom's semiconductor business generated 78% of its revenue in fiscal 2022 (which ended last October), and it produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets. Its largest client is Apple (NASDAQ: AAPL), which installs its Wi-Fi and Bluetooth combo chips in its iPhones and other hardware devices. Apple accounted for about 20% of Broadcom's total revenue in both fiscal 2021 and fiscal 2022, but it's widely expected to replace Broadcom's chips with its own in-house silicon by 2025.
Broadcom is a "fabless" chipmaker that outsources the production of its chips to third-party foundries like Taiwan Semiconductor Manufacturing. Therefore, it probably won't see much of a benefit from the CHIPS and Science Act's subsidies and tax breaks for integrated device manufacturers (IDMs) like Intel and Texas Instruments, which manufacture their own chips domestically.
Broadcom's infrastructure software business (which generated the remaining 22% of its revenue in fiscal 2022) was mainly built on its acquisitions of CA and Symantec's security business. The expansion of that business, which will accelerate significantly if it closes its takeover of VMware this year, reduces its overall dependence on Apple and the cyclical chip market.
How fast is Broadcom growing?
Broadcom's revenue rose 21% in fiscal 2022 -- driven by robust demand for fresh chips across the hyperscale, service provider, enterprise, and wireless markets -- and accelerated from its 15% growth in fiscal 2021.
During Broadcom's fourth-quarter conference call in December, CEO Hock Tan said that "in contrast to weak consumer electronics spending today and despite concerns of a global recession, we believe overall infrastructure spending remains strong, and we continue to experience sustained demand in most of our end markets." That's why Broadcom generated such stable sales growth across both of its main businesses over the past year.
METRIC
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Semiconductor Solutions revenue growth (YOY)
17%
20%
29%
32%
26%
Infrastructure Software revenue growth (YOY)
8%
5%
5%
5%
4%
Total revenue growth (YOY)
15%
16%
23%
25%
21%
Data source: Broadcom. YOY = Year over year.
Broadcom's scale also enables it to grow its margins consistently. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 27% in fiscal 2022, and its adjusted EBITDA margin expanded from 60.4% to 63.3%. Its annual free cash flow (FCF) increased 22% to $16.3 billion, which also boosted its FCF margin from 48.5% to 49.1%.
Where will Broadcom's stock be in a year?
For the first quarter of fiscal 2023, Broadcom expects its revenue to rise 15% year over year with an adjusted EBITDA margin of 63%. For the full year, analysts expect its revenue and adjusted EBITDA to both rise 6%, and for its adjusted earnings per share (EPS) to grow 8%.
Broadcom's chip sales to most of its enterprise-facing markets should remain stable, but slower sales of iPhones and macro headwinds for its infrastructure software business could offset some of those gains.
However, analysts still haven't factored in Broadcom's potential acquisition of VMware -- which would cause its reported revenue to rise by double digits again in 2023 or 2024 -- into their near-term forecasts yet. Broadcom expects to close that $61 billion deal this year, but it still needs to resolve a new antitrust probe in Europe and gain regulatory approvals in other key markets before that happens.
Closing the VMware deal would certainly be a bullish catalyst for Broadcom since it would boost its near-term revenue, breathe life into its slower-growth infrastructure software unit, and reduce its long-term dependence on Apple. But even if it doesn't close that massive deal this year, Broadcom's stock is still cheap at 14 times forward earnings, and it pays a high forward dividend yield of 3.1%.
I'm not certain if Broadcom will outperform the market again in 2023, but I believe it will either hold steady or rise gradually as more investors appreciate the scale and quality of its core businesses.
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Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Texas Instruments. The Motley Fool recommends Broadcom and VMware and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, 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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Its largest client is Apple (NASDAQ: AAPL), which installs its Wi-Fi and Bluetooth combo chips in its iPhones and other hardware devices. It wasn't heavily exposed to the declining PC market, it generated stable revenues from its infrastructure-oriented businesses, its stock was cheap, and it paid a high dividend. Broadcom's semiconductor business generated 78% of its revenue in fiscal 2022 (which ended last October), and it produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets.
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Its largest client is Apple (NASDAQ: AAPL), which installs its Wi-Fi and Bluetooth combo chips in its iPhones and other hardware devices. Semiconductor Solutions revenue growth (YOY) 17% 20% 29% 32% 26% Infrastructure Software revenue growth (YOY) 8% 5% 5% 5% 4% Total revenue growth (YOY) 15% 16% 23% 25% 21% Data source: Broadcom. The Motley Fool has positions in and recommends Apple, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Texas Instruments.
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Its largest client is Apple (NASDAQ: AAPL), which installs its Wi-Fi and Bluetooth combo chips in its iPhones and other hardware devices. Apple accounted for about 20% of Broadcom's total revenue in both fiscal 2021 and fiscal 2022, but it's widely expected to replace Broadcom's chips with its own in-house silicon by 2025. Semiconductor Solutions revenue growth (YOY) 17% 20% 29% 32% 26% Infrastructure Software revenue growth (YOY) 8% 5% 5% 5% 4% Total revenue growth (YOY) 15% 16% 23% 25% 21% Data source: Broadcom.
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Its largest client is Apple (NASDAQ: AAPL), which installs its Wi-Fi and Bluetooth combo chips in its iPhones and other hardware devices. Broadcom's infrastructure software business (which generated the remaining 22% of its revenue in fiscal 2022) was mainly built on its acquisitions of CA and Symantec's security business. Where will Broadcom's stock be in a year?
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2023-01-31 00:00:00 UTC
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Apple Could Teach Fellow Top Warren Buffett Stock Chevron a Valuable Lesson
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AAPL
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https://www.nasdaq.com/articles/apple-could-teach-fellow-top-warren-buffett-stock-chevron-a-valuable-lesson
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Chevron (NYSE: CVX) recently made headlines by unveiling a massive $75 billion share repurchase program. That's enough money to potentially repurchase up to 20% of its outstanding shares, given its current market cap. While that sounds impressive, a closer look at the company's repurchase history leaves much to be desired.
Because of that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Apple is by far Berkshire's largest position, at more than $132 billion, which is over 38% of Berkshire's investment portfolio. Chevron ranks third, at over $30 billion, representing about 9% of its investment portfolio. Apple's success in buying back its shares likely increases Berkshire's confidence to hold such a large stake in the tech giant.
A buyback machine
Apple generates mountains of cash each year. In 2022, it produced an astounding $122.2 billion of operating cash flow, $18 billion more than the prior year.
The company returns the lion's share of this money to investors. It used $89.4 billion of its cash flow to repurchase shares in 2022, about $3.4 billion more than it repurchased the prior year. Apple also paid over $14.8 billion of dividends.
Apple's repurchases have taken a big bite out of its outstanding shares over the years:
AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts
One reason Apple has made such a meaningful dent in its outstanding shares is that, unlike many tech companies, it doesn't make large-scale acquisitions using its stock as currency. The biggest purchase in recent years was its 2014 acquisition of Beats for $3 billion, consisting of $2.6 billion of cash and $400 million of stock that vested over time.
By avoiding big acquisitions, Apple has sidestepped the associated dilution. This means its repurchases aren't fighting an uphill battle from new issuances.
Not much to show for its repurchases
Chevron recently announced a monster $75 billion buyback that goes into effect in April with no expiration date. It will replace its existing $25 billion authorization.
That will extend the oil company's long history of share repurchases:
Data source: Chevron investor relations presentation.
As that slide showcases, Chevron has repurchased more than $65 billion of its stock over the last 19 years. The company noted that it made those repurchases at an average price of about $2 below the market average during that period.
But while that sounds impressive, Chevron's repurchases haven't put much of a dent in its outstanding shares over the years:
CVX Average Diluted Shares Outstanding (Quarterly) data by YCharts
As that chart shows, Chevron's outstanding shares are basically flat over those 19 years. One culprit is large-scale acquisitions paid for by issuing new shares.
For example, the company spent $18 billion in stock (75%) and cash (25%) to buy Unocal in 2005, $5 billion in stock to buy Noble Energy in 2020, and subsequently acquired the rest of Noble Midstream that it didn't own in an all-stock deal. These deals added to its outstanding shares.
On a more positive note, the company's acquisitions and other investments have helped fuel strong profit growth. Chevron delivered a record profit in 2022 at $36.5 billion, $10 billion more than its prior peak in 2011. Cash flow and free cash flow also set records at $49.6 billion and $37.6 billion, respectively. The company's robust cash flows position it to continue buying back more stock in the future.
However, for those repurchases to reduce the company's share count, Chevron needs to learn a lesson from Apple and avoid using its stock as deal currency. That was the strategy it followed last year when it bought Renewable Energy Group for $3.15 billion in an all-cash deal.
Meanwhile, it's in a better position to continue following Apple's playbook by making all-cash deals in the future thanks to its strong balance sheet. Its net leverage ratio was a low 3.3% at the end of 2022. That gives it the financial flexibility to continue repurchasing shares and investing throughout the oil cycle.
Chevron needs to get better at buying back its stock
Chevron grabbed the market's attention by unveiling a massive buyback program. Unfortunately, the oil giant's track record at repurchasing its shares is rather lackluster, as they haven't offset the dilution from its acquisitions. Because of that, it needs to learn to follow the acquisition strategy of fellow top Buffett holding Apple by avoiding large-scale and dilutive deals so its buybacks can put a meaningful dent in its outstanding shares. That might give Buffett's company the confidence to make Chevron an even larger part of its portfolio.
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Matthew DiLallo has positions in Apple and Berkshire Hathaway and has the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, 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 that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Apple's repurchases have taken a big bite out of its outstanding shares over the years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts One reason Apple has made such a meaningful dent in its outstanding shares is that, unlike many tech companies, it doesn't make large-scale acquisitions using its stock as currency. That will extend the oil company's long history of share repurchases: Data source: Chevron investor relations presentation.
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Apple's repurchases have taken a big bite out of its outstanding shares over the years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts One reason Apple has made such a meaningful dent in its outstanding shares is that, unlike many tech companies, it doesn't make large-scale acquisitions using its stock as currency. Because of that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). But while that sounds impressive, Chevron's repurchases haven't put much of a dent in its outstanding shares over the years: CVX Average Diluted Shares Outstanding (Quarterly) data by YCharts As that chart shows, Chevron's outstanding shares are basically flat over those 19 years.
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Apple's repurchases have taken a big bite out of its outstanding shares over the years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts One reason Apple has made such a meaningful dent in its outstanding shares is that, unlike many tech companies, it doesn't make large-scale acquisitions using its stock as currency. Because of that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). But while that sounds impressive, Chevron's repurchases haven't put much of a dent in its outstanding shares over the years: CVX Average Diluted Shares Outstanding (Quarterly) data by YCharts As that chart shows, Chevron's outstanding shares are basically flat over those 19 years.
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Apple's repurchases have taken a big bite out of its outstanding shares over the years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts One reason Apple has made such a meaningful dent in its outstanding shares is that, unlike many tech companies, it doesn't make large-scale acquisitions using its stock as currency. Because of that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). It used $89.4 billion of its cash flow to repurchase shares in 2022, about $3.4 billion more than it repurchased the prior year.
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17350.0
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2023-01-31 00:00:00 UTC
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Interactive Brokers and Generac Holdings have been highlighted as Zacks Bull and Bear of the Day
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AAPL
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https://www.nasdaq.com/articles/interactive-brokers-and-generac-holdings-have-been-highlighted-as-zacks-bull-and-bear-of
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For Immediate Release
Chicago, IL – January 31, 2023 – Zacks Equity Research shares Interactive Brokers IBKR as the Bull of the Day and Generac Holdings GNRC asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Alphabet GOOGL.
Here is a synopsis of all five stocks.
Bull of the Day:
The Zacks Financial – Investment Bank industry is currently ranked in the top 22% (54 out of 249) of all Zacks Industries.
As we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A stock residing within the industry and a part of the Zacks Finance sector, Interactive Brokers, has seen its earnings outlook shift positively over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Interactive Brokers Group operates as an automated global electronic market maker and broker. The company strives to provide customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities, and investment products all at low prices.
Let’s take a closer look at how the company currently stacks up.
Share Performance & Valuation
IBKR shares have been notably strong over the last six months, up nearly 40% and crushing the S&P 500’s performance.
The picture remains the same when shrinking the timeframe to encompass just 2023; year-to-date, IBKR shares have outperformed the S&P 500, up 7.4%.
Clearly, buyers have been present.
Further, IBKR shares currently trade at a 14.3X forward earnings multiple, a fraction of the 22.1X five-year median and nearly in line with the Zacks Finance sector average.
Quarterly Performance
Interactive Brokers has posted better-than-expected quarterly results as of late, exceeding the Zacks Consensus EPS Estimate in back-to-back quarters.
Just in its latest release, IBKR reported earnings more than 12% above expectations and posted a 5.3% revenue surprise.
Dividends
Who doesn’t enjoy getting paid?
Fortunately for those who seek income, Interactive Brokers has that covered; the company’s annual dividend currently yields a modest 0.5%, below the Zacks Finance sector by a fair margin.
In addition, the company’s 10% payout ratio is definitely sustainable.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Interactive Brokers would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
As we’re all very aware, 2022 was a challenging environment for many companies, with deep valuation slashes occurring regularly.
Fortunately, 2023 has certainly gotten off to a much better start, with green widespread across many areas year-to-date.
However, the outlook isn’t great for all companies, including Generac Holdings. Analysts have taken a bearish stance on the company’s earnings outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Generac Holdings is a manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial, and industrial generators.
How does the company currently stack up? Let’s take a closer look.
Share Performance
GNRC shares haven’t fared well over the last six months, down roughly 60% and widely lagging behind the general market.
However, GNRC shares have busted out of the gate strong in 2023, up more than 12% and outperforming the S&P 500.
Growth Outlook
The company is forecasted to witness quite a slowdown in growth, with estimates indicating an 11% pullback in earnings for its current fiscal year (FY22) and a further 15% in FY23.
GNRC’s top-line is in slightly better shape, with estimates indicating a positive 20% Y/Y change in FY22 but a 7% pullback in FY23.
Quarterly Performance
Generac has primarily delivered better-than-expected quarterly results, exceeding earnings estimates in four consecutive quarters.
In its latest release, the company exceeded the Zacks Consensus EPS Estimate by roughly 8% but marginally fell short of revenue expectations.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Generac Holdings is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Apple, Amazon, Alphabet: Global Week Ahead
Each earnings season moves fast. We get over 100 major company reports this week.
Within this Global Week Ahead report surge, three major U.S. tech firms supply results.
Forward guidance is always key.
This Q4 earnings season is particularly sensitive to broad company data laying out any recession scares, and seeks insight into upstream and downstream price movements.
The Fed meets at mid-week too.
The latest FOMC policy decisions arrive on Wednesday, Feb. 1st.
On Thursday, follow-on central bank decisions arrive from the European Central Bank (ECB) and the Bank of England (BoE).
China’s workers come back from their Lunar New Year holiday.
(1) On Thursday, Apple, Amazon and Alphabet Report Q4 Earnings
The three “A's" — Apple, Amazon and Alphabet, three of the top four U.S. companies by market value — all report earnings on Thursday.
Over 100 companies in the S&P 500 deliver results as the earnings season gets into full swing.
Microsoft, the fourth of the U.S. mega-caps, has already reported results. Its cloud business hit Wall Street targets, but it delivered a lackluster forecast that offered little cheer to the broader tech sector.
Tech companies generally are under pressure to grow while cutting costs ahead of a potential recession.
S&P 500 earnings are set to have fallen -2.9% from the year-ago period, according to Refinitiv IBES data as of Tuesday.
(2) The Fed Meeting Dominates Markets, Of Course
Will the Federal Reserve tone down its hawkish rhetoric in the face of cooling inflation or stick to its guns?
Investors widely expect a 25-basis point rate increase at the Feb. 1st meeting and for rates to stop short of hitting 5.0%.
Fed officials, however, have indicated they expect the key policy rate to top out at 5.00-5.25% this year.
Whatever signals the Fed sends could play an importing role in determining the longevity of the rally so far this year.
Dollar bears, meanwhile, will watch for dovish leanings that could further accelerate a decline in the greenback.
The currency has tumbled nearly 11% since hitting multi-decade highs last September.
(3) On Thursday, European Central Bank (ECB) Meets
The ECB meets Thursday and is widely tipped to raise rates by 50 bps to 2.5%. Markets care most about what happens next and that's not clear.
Policy hawks are already pushing for more of the same in March. After all, inflation is well above the 2% target as preliminary January data out on Wednesday is likely to show.
Futures price in a further 100 bps worth of tightening between now and July. Amundi reckons ECB rates could reach 4.0%.
But the doves are getting louder. Yes, inflation is high but it's off record peaks, they say. So, caution is needed before pre-committing to rate hikes beyond February.
Markets, whipped around by the differing opinions, will be looking for the ECB to speak with one voice. That, at least, is the hope.
(4) Bank of England (BoE) to Raise 50 Basis Points
The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
Money markets predict the BoE will raise rates by 0.5 percentage points to 4.0%.
Headline inflation moderated in December to +10.5%, but it's still over five times the Bank's official target.
Deutsche Bank analysts say this will be the BoE's final "forceful" hike. Recent data has shown a sharp contraction in UK business activity and lackluster Christmas retail sales.
Economists polled by Reuters now expect the BoE to stop at 4.25%. But many cited sticky core inflation, which excludes food and energy costs, as the main reason they could be wrong.
(5) The End of China’s Lunar New Year
Chinese markets are back from the week-long Lunar New Year holidays, and will look to pick up where they left off — at a five-month peak for mainland blue chips.
The mood should stay bullish after officials said COVID deaths have dropped about 80% from the peak earlier this month, running counter to worries that the New Year travel rush would trigger a fresh wave of infections.
Some experts even suggest that the surge in cases after the government abruptly reversed its zero-COVID policies last month has resulted in hyper-speedy herd immunity.
The impact of China's Great Reopening may show up in PMIs next Tuesday, with the services sector bouncing back to expansion.
Manufacturing is likely still contracting, but that has a lot to do with the timing of the New Year holiday, and next month should see a strong rebound.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Fortunately for those who seek income, Interactive Brokers has that covered; the company’s annual dividend currently yields a modest 0.5%, below the Zacks Finance sector by a fair margin.
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In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – January 31, 2023 – Zacks Equity Research shares Interactive Brokers IBKR as the Bull of the Day and Generac Holdings GNRC asthe Bear of the Day.
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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 Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Alphabet GOOGL. A stock residing within the industry and a part of the Zacks Finance sector, Interactive Brokers, has seen its earnings outlook shift positively over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
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In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. These stocks should outperform the market more than any other rank.
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2023-01-31 00:00:00 UTC
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Europe's luxury stocks have room to rise, but becoming costly
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AAPL
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https://www.nasdaq.com/articles/europes-luxury-stocks-have-room-to-rise-but-becoming-costly
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By Lucy Raitano
LONDON, Jan 31 (Reuters) - Europe's glittering luxury companies, the region's top stock-market performers in 2023, may see yet more gains driven by a rebound in Chinese spending, but for some the sector is starting to look expensive.
The likes of French luxury giant and Louis Vuitton-owner LVMH LVMH, and Swiss jewelry company Richemont CFR.S, have benefited from the resilience of their wealthy customers against the cost-of-living crisis.
Since the start of 2023, China's decision to allow more normal activity and dismantle its strict COVID-19 restrictions has provided another boost for the sector.
An index of European luxury goods retailers .dMIEU0TA00PUS has rallied around 18% so far this year, outperforming the wider pan-European STOXX 600 .STOXX, which is up 6.2% in the same time frame.
But the fact that luxury goods companies are not as cheap as they once were is a "concern/point of attention", said Kasper Elmgreen, Head of Equities at Amundi, Europe's largest asset manager.
"They’re much more fairly valued today, there is less that is perhaps undiscovered. The risk is that when something moves to being priced to perfection there is always a higher risk of disappointment."
The price-to-earnings ratio of the MSCI Europe luxury index is around 26, while that of the broader STOXX is closer to 13, according to Refinitiv data.
European luxury has historically traded at a big premium relative to the broader market, but this has widened even further in recent years. At 23 times 12-month forward earnings, its current premium of 82% is almost twice as much as the 20-year average, according to Refintiv Datastream.
THE APPLE OF EUROPE'S EYE
LVMH, Europe's most valuable company by market capitalisation, has a PE ratio of around 30, while rival Hermes HRMS.PA has a valuation of almost 60, according to Refinitiv data. Apple AAPL.O, the world's most valuable company, commands a PE ratio of around 23.
Jelena Sokolova, senior equity analyst at Morningstar, said that China reopening is the key issue for European luxury stocks this year, and is already at least 50% priced in.
"Currently we don’t see this sector as undervalued anymore ... there were some opportunities last year, but they are fairly valued now, or a little too overvalued at the moment,” she said.
In a January research note, UBS analysts said 2023 was "the year of the Chinese consumer for European luxury”, and highlighted Richemont, Hermes HRMS.PA and Italian luxury group Moncler MONC.MI as their top picks and "the most balanced, high-quality plays on China re-opening".
Ongoing concerns of recession, an expected fall in earnings expectations, and sky-high inflation mean the potential returns on luxury stocks could be a boon in what promises to be a difficult year for stock-pickers.
The ability to increase the price of products without losing customers has stood out as a key strength of Europe's luxury brands, and remains in focus for equity investors even as inflation on the continent eased in December.
"The things they sell don’t really depend on the price that they charge, with the average price of a product at Cartier of $10,000 whether it increases to $11,000 is neither here nor there," said Nick Clay, head of global equity income at investment manager Redwheel.
These shares have more room to run higher as Chinese consumers hit the shops again and luxury companies flex their pricing power. But with valuations already fairly lofty, investors question how much higher they can go.
LVMH's most recent earnings showed a 9% rise in organic sales in the fourth quarter as shoppers in Europe and the United States splurged over the holiday season, helping partly to offset COVID-19 disruptions in China.
But some analysts focused on the margins, taking some of the shine off the fourth-quarter sales boost. That said, it had little impact on the share price, which has risen by 600% in the last 10 years, compared with a 91% gain in the benchmark STOXX.
"Companies like LVMH have high quality businesses, they compound profits over long periods of time and deliver great returns for shareholders," said Mark Denham, head of European equities at French asset manager Carmignac.
"It is true that the ratings of these companies have risen so it becomes slightly more asymmetric, but over the long term earnings compounding is the dominant factor.”
Ahead of the indexhttps://tmsnrt.rs/3kGoy4d
Luxury premium https://tmsnrt.rs/3Dh9m43
LVMH vs Apple https://tmsnrt.rs/3He2Agz
(Reporting by Lucy Raitano and Danilo Masoni; Editing by Amanda Cooper and Sharon Singleton)
((Lucy.Raitano@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, the world's most valuable company, commands a PE ratio of around 23. By Lucy Raitano LONDON, Jan 31 (Reuters) - Europe's glittering luxury companies, the region's top stock-market performers in 2023, may see yet more gains driven by a rebound in Chinese spending, but for some the sector is starting to look expensive. LVMH's most recent earnings showed a 9% rise in organic sales in the fourth quarter as shoppers in Europe and the United States splurged over the holiday season, helping partly to offset COVID-19 disruptions in China.
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Apple AAPL.O, the world's most valuable company, commands a PE ratio of around 23. In a January research note, UBS analysts said 2023 was "the year of the Chinese consumer for European luxury”, and highlighted Richemont, Hermes HRMS.PA and Italian luxury group Moncler MONC.MI as their top picks and "the most balanced, high-quality plays on China re-opening". "Companies like LVMH have high quality businesses, they compound profits over long periods of time and deliver great returns for shareholders," said Mark Denham, head of European equities at French asset manager Carmignac.
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Apple AAPL.O, the world's most valuable company, commands a PE ratio of around 23. Jelena Sokolova, senior equity analyst at Morningstar, said that China reopening is the key issue for European luxury stocks this year, and is already at least 50% priced in. In a January research note, UBS analysts said 2023 was "the year of the Chinese consumer for European luxury”, and highlighted Richemont, Hermes HRMS.PA and Italian luxury group Moncler MONC.MI as their top picks and "the most balanced, high-quality plays on China re-opening".
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Apple AAPL.O, the world's most valuable company, commands a PE ratio of around 23. But the fact that luxury goods companies are not as cheap as they once were is a "concern/point of attention", said Kasper Elmgreen, Head of Equities at Amundi, Europe's largest asset manager. The price-to-earnings ratio of the MSCI Europe luxury index is around 26, while that of the broader STOXX is closer to 13, according to Refinitiv data.
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2023-01-31 00:00:00 UTC
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Bargain Shopping? 2 Unstoppable Stocks to Buy Hand Over Fist in 2023
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AAPL
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https://www.nasdaq.com/articles/bargain-shopping-2-unstoppable-stocks-to-buy-hand-over-fist-in-2023
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After one of the worst years for the market in years, there are plenty of good opportunities to buy quality companies at more attractive prices.
Well-entrenched brands that generate a lot of cash would make great additions to any investor's portfolio. Let's take a look at two growth stocks poised to bounce back and deliver stellar long-term returns.
1. Apple
Shares of Apple (NASDAQ: AAPL) are down over 22% from their previous high. The stock currently trades at a price-to-earnings ratio of 23.4 based on this year's earnings estimates and pays a small quarterly dividend. After the dip, I believe the shares offer great value for one of the most valuable brands in the world.
Why is Apple unstoppable? The iPhone maker is sitting on $60 billion of net cash -- and that's on top of more than $100 billion in free cash flow coming through the door every year. Moreover, Apple is ranked the second most valuable globally, according to Brand Finance.
Data by YCharts
While Wall Street worries about how many devices the company will sell next quarter, Apple is loaded with cash to weather a weak consumer spending environment. Its massive cash pile is a strong fortress to continue paying dividends. Plus, Apple is not short of resources to keep investing in new innovations to create more demand. Apple is widely reported to be working on a self-driving car.
Apple is generating its highest gross profit margin in over 10 years. Gross profit jumped significantly over the last few years from about 38% of revenue to 43%, which has a lot to do with the growth in app sales and subscriptions through the App Store. It is also squeezing a little more profit out of its Mac lineup after replacing Intel's chips with its higher-margin proprietary M1 and M2 processors. When you generate as much cash as Apple does, you have the luxury of investing in new initiatives that keep squeezing more returns out of the business.
Apple is a cash gusher that will continue to find ways to reward shareholders over the long term. It has a knack for introducing new products that people don't think they need until they see them. That's tremendous brand power and explains why Apple is Warren Buffett's favorite stock.
2. Microsoft
Shares of Microsoft (NASDAQ: MSFT) are down 31% from previous highs and currently trade at a forward P/E of 26.7 with a 1.02% yield. Its recurring revenue streams from Office subscriptions and cloud services are why the stock deserves to trade at a premium.
Like Apple, Microsoft generates robust cash flows from its market-leading software products. Over the last year, it generated nearly $60 billion in free cash flow on $204 billion in revenue, but the main reason to consider buying the stock is its place in the cloud.
Data by YCharts
Microsoft is a solid No. 2 in the booming cloud infrastructure services market. Wall Street was disappointed with slowing growth in Microsoft's cloud business in the most recent quarter, but this is still a huge long-term growth opportunity for the software giant.
Microsoft's cloud business generated over $27 billion in revenue last quarter, growing 29% year over year, excluding currency changes. That should be enough for Microsoft Azure to hold its market share gains in recent years, where it has narrowed the gap with Amazon Web Services.
Cloud growth is an important reason to invest in Microsoft. The uncertainty in the economy might cause cloud spending to slow a bit this year, but it's not going away.
The adoption of cloud services by enterprises will continue to grow for many years, primarily because it saves companies money from not having to maintain on-premise data systems and hardware. This is why CEO Satya Nadella believes Microsoft is still in the early innings of long-term growth, and that's a good reason to buy the stock on the dip.
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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. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Apple, Intel, and Microsoft. 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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Apple Shares of Apple (NASDAQ: AAPL) are down over 22% from their previous high. Data by YCharts While Wall Street worries about how many devices the company will sell next quarter, Apple is loaded with cash to weather a weak consumer spending environment. The adoption of cloud services by enterprises will continue to grow for many years, primarily because it saves companies money from not having to maintain on-premise data systems and hardware.
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Apple Shares of Apple (NASDAQ: AAPL) are down over 22% from their previous high. Over the last year, it generated nearly $60 billion in free cash flow on $204 billion in revenue, but the main reason to consider buying the stock is its place in the cloud. Microsoft's cloud business generated over $27 billion in revenue last quarter, growing 29% year over year, excluding currency changes.
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Apple Shares of Apple (NASDAQ: AAPL) are down over 22% from their previous high. Over the last year, it generated nearly $60 billion in free cash flow on $204 billion in revenue, but the main reason to consider buying the stock is its place in the cloud. Microsoft's cloud business generated over $27 billion in revenue last quarter, growing 29% year over year, excluding currency changes.
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Apple Shares of Apple (NASDAQ: AAPL) are down over 22% from their previous high. Like Apple, Microsoft generates robust cash flows from its market-leading software products. Microsoft's cloud business generated over $27 billion in revenue last quarter, growing 29% year over year, excluding currency changes.
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17353.0
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2023-01-31 00:00:00 UTC
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Apple Just Laid the Groundwork for Its Next Multibillion-Dollar Opportunity
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https://www.nasdaq.com/articles/apple-just-laid-the-groundwork-for-its-next-multibillion-dollar-opportunity
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nan
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nan
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Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue.
The new Apple Business Connect suite is a set of tools that allows small businesses to update how their location place cards look across Apple apps like Maps, Messages, and Wallet. Businesses can ensure their information is up to date and showcase certain items, including promotions or a call-to-action. The suite also provides an insight dashboard to show how customers find a business and interact with the place card.
That last detail could be the essential groundwork for building a massive advertising segment to rival Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Maps.
Winning over small businesses
Apple is giving small businesses a lot of free tools to win them over.
Not only will the new Business Connect tools make it easier for small businesses to ensure iPhone users have accurate information about them, but they'll also make it easier for users to find and patronize those businesses.
There are a couple of tools to improve discoverability for small businesses. They will be able to add subcategories to their location listings, increasing the accuracy of searches in Maps. And they can provide information in the "Good to Know" section, which could be used to filter for businesses with free Wi-Fi or wheelchair accessibility.
More interesting is the "Action" button Apple is introducing. It gives users the ability to interact with a business directly through Maps. Apple gives examples of ordering delivery, booking a room, or reserving a table. Those are valuable actions to businesses because they can see a direct benefit from improving their presence on Maps and Apple's other apps.
And if Apple can show how valuable it is for users to see a business's place card, it may be able to provide them with more ways to stand out in Maps and other apps, perhaps at a price.
A $10 billion opportunity
Advertising in Maps could be a $10 billion opportunity.
Estimates for Google's Maps segment range around that number today. The digital advertising leader only rolled out ads in its maps app in 2019. Shortly after its introduction, Morgan Stanley analyst Brian Nowak estimated that business could generate $11 billion in revenue in 2023.
Google announced that it counted over 1 billion monthly users on Google Maps way back in 2015. That number has likely grown since then as Android adoption has increased. But Apple Maps might not be too far behind. Apple said iOS users use its Maps app 3 times more than Google's that same year. Analyst Horace Dediu estimated Apple Maps had over 1 billion users in 2021.
Apple is now rolling out new features in Maps at a rapid pace -- cycling directions, EV routing, 3D details -- as it works to catch up to Google in some areas. Mapping projects could be beneficial beyond the Maps app for Apple, as they could play into its augmented reality product or the long-rumored Apple car. Every improvement serves to increase engagement and draw in new users.
Showing businesses how those hundreds of millions of users discover and interact with their business and how those interactions convert into sales is the necessary groundwork to develop a strong advertising segment. The opportunity is big, even for Apple, as it mostly looks to the services business to fuel its profits going forward.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Levy has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue. And if Apple can show how valuable it is for users to see a business's place card, it may be able to provide them with more ways to stand out in Maps and other apps, perhaps at a price. Shortly after its introduction, Morgan Stanley analyst Brian Nowak estimated that business could generate $11 billion in revenue in 2023.
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Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue. That last detail could be the essential groundwork for building a massive advertising segment to rival Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Maps. Winning over small businesses Apple is giving small businesses a lot of free tools to win them over.
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Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue. The new Apple Business Connect suite is a set of tools that allows small businesses to update how their location place cards look across Apple apps like Maps, Messages, and Wallet. Not only will the new Business Connect tools make it easier for small businesses to ensure iPhone users have accurate information about them, but they'll also make it easier for users to find and patronize those businesses.
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Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue. A $10 billion opportunity Advertising in Maps could be a $10 billion opportunity. But Apple Maps might not be too far behind.
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17354.0
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2023-01-31 00:00:00 UTC
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GLOBAL MARKETS-World stocks waver as investors catch central bank jitters
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AAPL
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https://www.nasdaq.com/articles/global-markets-world-stocks-waver-as-investors-catch-central-bank-jitters
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nan
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nan
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By Nell Mackenzie and Julie Zhu
LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data.
Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points (bps) on Wednesday. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers.
Tuesday sees the release of fourth-quarter labour costs, while Friday brings the all-important January non-farm payrolls report.
"Reality is setting in," said Bruno Schneller, a managing director at INVICO Asset Management in Zurich.
Equity markets may have factored in the end of central bank rate hikes, but they do not yet reflect the potential hit to earnings from a slowing economy, Schneller said.
"Recent corporate results, especially 2023 guidance, indicate a negative outlook leading us to maintain a reduced position in equities," he said.
"In the shorter term, there doesn't appear to be an obvious safe haven for investors," said Schneller.
European shares dropped on Tuesday, dented by healthcare stocks, with the pan-regional Euro Stoxx 50 futures index STXEc1 down 0.6%, German DAX futures FDXc1 falling 0.5% and FTSE futures FFIc1 0.6% lower. U.S. stock futures, the S&P 500 e-minis ESc1, were down 0.3%.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.4%. The index is up over 8% so far this month. Japan's Nikkei stock index and Australian shares traded slightly down.
Data on Tuesday showed China's manufacturing activity swung back to growth in January but the country's blue-chip CSI 300 index .CSI300 still lost 1.1%.
U.S. stock futures .ESc1, .NQc1 fell, pointing to a lower open for the benchmark indices following Monday's losses.
At the end of the Fed's two-day policy meeting on Wednesday, investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
Markets will also grapple with a flood of U.S. economic data.
"It's a big week for both central banks and U.S. equities, with ... some of the household names due to make earnings announcements that will provide a micro overview of the macro economy," ANZ analysts said in a note.
"Risk appetite could be vulnerable to a correction," they said.
U.S. Treasury yields edged lower ahead of the central bank meetings and economic data, with the benchmark 10-year note last down 3 basis points at 3.524% US10YT=RR.
The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, also fell 3 bps on the day to 4.228%.
In currencies, the U.S. dollar, which was poised for its fourth month of declines, was up 0.2% at 102.48 against a basket of other major currencies. =USD
The euro EUR= fell 0.2% to $1.0832, but was still heading for a gain of 1% this month.
In the energy market, oil prices fell ahead of the expected hikes by central banks and on the back of data that showed Russian exports are rising, despite international sanctions.
Brent crude LCOc1 fell 1.2% to $83.89 per barrel.
Spot gold XAU= also dropped 0.8% to $1,904.88 per ounce, driven lower by a stronger dollar. GOL/
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banerjee; Editing by Kenneth Maxwell and Emelia Sithole-Matarise)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.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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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. By Nell Mackenzie and Julie Zhu LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data. At the end of the Fed's two-day policy meeting on Wednesday, investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. By Nell Mackenzie and Julie Zhu LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data. U.S. Treasury yields edged lower ahead of the central bank meetings and economic data, with the benchmark 10-year note last down 3 basis points at 3.524% US10YT=RR.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. By Nell Mackenzie and Julie Zhu LONDON, Jan 31 (Reuters) - World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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Meanwhile, more than 100 S&P 500 companies, including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers. The index is up over 8% so far this month. U.S. Treasury yields edged lower ahead of the central bank meetings and economic data, with the benchmark 10-year note last down 3 basis points at 3.524% US10YT=RR.
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17355.0
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2023-01-31 00:00:00 UTC
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3 Dividend Stocks That Beat the Market in 2022 but Are Still Worth Buying Now
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-that-beat-the-market-in-2022-but-are-still-worth-buying-now
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nan
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nan
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Bear markets can be a great time to buy down-beaten stocks at discount prices. But sometimes, stocks go up during bear markets for the right reasons.
It's human nature to want to buy something at a discount. But basing whether a stock is expensive or cheap on the price action alone isn't a recipe for sound long-term investing. It's better to look at the fundamentals and results of a company to see if the stock's price is justified.
Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today.
Image source: Getty Images.
Favorable end market conditions will help Baker Hughes in 2023
Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger. The reason comes from a combination of less-than-optimal execution, charges taken upon exiting Russia, and surging raw material and supply chain costs.
Still, the good news is all these three headwinds can turn into tailwinds in 2023. First, the loss of work in Russia is now in the numbers, making easier comparisons to beat in 2023. Second, management is taking action to improve execution. The company already plans to reduce complexity and annual costs by $150 million by shifting to two reporting segments rather than four and streamlining its operations in the process.
Third, like many industrial companies, Baker Hughes has a margin expansion opportunity coming from a moderation in raw material and supply chain costs caused by higher interest rates.
Underpinning all of this is the fact that, despite plenty of talk of recession and a stock market correction, the price of oil is still above $80 a barrel, making end market conditions favorable for oil capital spending and, ultimately, oil equipment and services companies.
Fuel your passive income stream with Phillips 66
Scott Levine (Phillips 66): Soaring 44% in 2022, shares of Phillips 66 handily beat the market. The midstream company and refineries operator strongly benefited from rising energy prices as investors rushed to power their portfolios with oil and gas stocks. That wasn't the only catalyst, however. The company beat expectations during its third-quarter 2022 earnings report and continued its streak of raising the dividend. Even with the stock's impressive outperformance last year, though, the stock still has room to run, giving investors good reason to scoop it up along with its attractive forward dividend yield of 3.7%.
Despite the stock's strong performance last year, shares are still steeply undervalued. Trading at 6.6 times operating cash flow, shares are trading at a discount to their five-year average cash flow multiple of 9. Using the forward earnings multiple to assess the price tag, investors will find the stock still looks inexpensive. Whereas shares of Phillips 66 have a five-year average forward earnings multiple of 16.4, they're currently valued at only 7.5 times forward earnings.
Phillips 66 has demonstrated a strong commitment to rewarding shareholders in the past. Over the past five years, the company has raised its dividend at a compound annual rate of 12.5%. Management will likely continue to return an increasing amount of capital to shareholders in the future. One way that will help the company to do this without jeopardizing its financial well-being is through acquisitions. Most recently, for example, Phillips 66 announced that it had entered into a definitive agreement to acquire the outstanding units of DCP Midstream -- a deal that will fortify its midstream natural gas business. Moreover, management expects the transaction will provide $1 billion in adjusted earnings before interest, taxes, depreciation, and amortization.
Deere stock deserves to be near an all-time high
Daniel Foelber (Deere): Given its size and industry-leading position in precision agriculture, you would think that Deere stock's monster outperformance would have caught more headlines. But oftentimes, the best stocks are the ones that make the least amount of noise. Deere's subtle success can be attributed to margin growth, a surge in sales, and, most importantly, the ability to raise prices without crushing demand. Over the last three years, Deere stock has surged 143% compared to just a 21.8% gain for the S&P 500 and a 20.4% gain for the industrial sector.
Blue chip industrial stocks of Deere's size rarely post that degree of outperformance in such a small amount of time. But in the case of Deere, everything seems to be clicking because the stock's surge is backed by fundamentals.
DE Revenue (TTM) data by YCharts
Deere's revenue and net income are at all-time highs. Its operating margin is also near an all-time high thanks to effective price increases. Deere's short-term performance is still heavily dependent on the market cycle, commodity prices, and the traditional industries it serves. But the most exciting aspect for long-term investors is the company's smart industrial strategy, which is centered around investments in automation, hardware, and software to boost crop yield, sustainability, forestry, construction, and more. All told, the investments are meant to widen Deere's gap over the competition, as well as extend the lifecycle of the customer by keeping them involved with services even after the initial purchase.
In this vein, Deere could end up becoming the Apple of agriculture as it builds out an ecosystem for its customers and makes its products more sticky.
Deere stock only has a dividend yield of 1.2%. But that is mainly because the company spends so much of its free cash flow reinvesting in the business, as well as buying back its own stock. Deere doesn't pack the same passive income punch as higher-yielding industrial companies. But what it lacks in the dividend it more than makes up for with its growth potential. After crushing the market over the past few years, Deere is still poised to outperform the market over the next three to five years, making the stock a worthy investment now.
10 stocks we like better than Baker Hughes
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 Baker Hughes 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 January 9, 2023
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Deere 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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Third, like many industrial companies, Baker Hughes has a margin expansion opportunity coming from a moderation in raw material and supply chain costs caused by higher interest rates. The midstream company and refineries operator strongly benefited from rising energy prices as investors rushed to power their portfolios with oil and gas stocks. But the most exciting aspect for long-term investors is the company's smart industrial strategy, which is centered around investments in automation, hardware, and software to boost crop yield, sustainability, forestry, construction, and more.
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Favorable end market conditions will help Baker Hughes in 2023 Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger. Underpinning all of this is the fact that, despite plenty of talk of recession and a stock market correction, the price of oil is still above $80 a barrel, making end market conditions favorable for oil capital spending and, ultimately, oil equipment and services companies. Trading at 6.6 times operating cash flow, shares are trading at a discount to their five-year average cash flow multiple of 9.
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Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today. Deere stock deserves to be near an all-time high Daniel Foelber (Deere): Given its size and industry-leading position in precision agriculture, you would think that Deere stock's monster outperformance would have caught more headlines. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Daniel Foelber has no position in any of the stocks mentioned.
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Even with the stock's impressive outperformance last year, though, the stock still has room to run, giving investors good reason to scoop it up along with its attractive forward dividend yield of 3.7%. After crushing the market over the past few years, Deere is still poised to outperform the market over the next three to five years, making the stock a worthy investment now. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Baker Hughes wasn't one of them!
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17356.0
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2023-01-31 00:00:00 UTC
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MORNING BID-'Soft landing' or 'no landing'?
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AAPL
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https://www.nasdaq.com/articles/morning-bid-soft-landing-or-no-landing
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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
There's an uncomfortable feeling in markets this week that good news may be bad news once again - mainly because of what the former means for this week's big central banking set pieces.
As U.S. Federal Reserve's Federal Open Market Committee kicks off its two-day policymaking meeting, the economic news from around the world brightened considerably.
Possibly wary of a premature easing of financial conditions before its tightening campaign is finished, some investors suspect the Fed may want to hang tough for a bit longer - stressing more needs to be done to ensure inflation is licked even as it slows the pace of rate hikes another notch to a quarter point rise on Wednesday.
Another one-two of half point rate rises from the European Central Bank and Bank of England the following day adds to the trepidation, not least with Spain reminding everyone on Monday that inflation rates can re-accelerate again even after peaking.
And if global recession is avoided, the hawkishness may persist. That's why China's new year bounce back from COVID-lockdowns and the euro zone dodging a downturn due to falling energy prices in a warm winter matter so much. They account for the world's second and third biggest economic areas.
China's economic activity swung back to growth in January after three months of contraction, according to official business surveys released on Tuesday.
The euro zone economy confounded forecasts for a quarterly contraction of gross domestic product in the final three months of 2022. Eurostat estimated GDP in the bloc rose 0.1% in Q4 despite consensus expectations for a fall of 0.1%.
And if the significant energy price relief of the past two months means activity picked up further early this year, the long-standing assumptions for a winter euro zone recession will evaporate.
Underlining the point, the International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to "surprisingly resilient" demand in the United States and Europe, easing energy costs and China's reopening.
Dogged by Brexit, tax rises and serial labour strikes, Britain was the clear outlier and is the only G7 nation to have suffered a cut to its 2023 IMF, with the economy set to shrink by 0.6% this year - a sharp downgrade from the prior IMF forecast.
The constellation leaves markets on the back foot as they await the big monetary policy decisions.
Deep in the weeds of the latest corporate earnings season - with more than a fifth of S&P500 firms reporting this week alone and Apple, Amazon and Alphabet all due on Thursday - Wall St stock futures remain in the red after a dour start to the week on Monday. European and Asia bourses were lower too.
The dollar .DXY has picked up across the board, with two-year U.S. Treasury yields giving back only some of their gains to near three-week highs on Monday.
Despite the upbeat macro news, China tech stocks .STAR50 dropped 1.7% on media reports that the Biden administration has stopped approving licenses for U.S. companies to export most items to China's Huawei, signalling new tension in the Sino-U.S. tech war.
UniCreditCRDI.MI jumped 8.1% to the top of STOXX 600 after the giant Italian lender pledged to return 5.25 billion euros ($5.69 billion) to investors based on its 2022 results after posting its best profit in more than a decade.
UBSUBSG.S shares fell 3% after the Swiss banking giant predicted an "uncertain" year ahead plagued by accelerating inflation and higher interest rates - even as it beat estimates, upped its dividend and proposed another $5 billion stock buyback this year.
Indian billionaire Gautam Adani's $2.5 billion share sale inched closer to full subscription on Tuesday as investors pumped in funds after a tumultuous week for his group in which its stocks were pummelled by a scathing short-seller report
Key developments that may provide direction to U.S. markets later on Tuesday:
* U.S. Federal Reserve's Federal Open Market Committee starts two-day meeting
* U.S. Q4 employment costs, Jan consumer confidence, Chicago PMI business survey, Dallas Fed services index, Nov house prices
* U.S. corp earnings: Exxon Mobil, Marathon, Pfizer, McDonald's, UPS, Amgen, Caterpillar, AMD, Stryker, Mondelez, Moody's, GM, MSCI, Electronic Arts, Spotify, Snap, Chubb, Western Digital, Juniper Networks, Boston Properties, Edwards Lifesciences, Match, Sysco, Corning, Pentair, Intl Paper, AO Smith, Dover
Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2
Fed's bond cull lags some forecastshttps://tmsnrt.rs/3kTryKG
China economic activity reboundshttps://tmsnrt.rs/3DrrmIQ
UK is only G7 economy yet to regain pre-pandemic sizehttps://tmsnrt.rs/40b7V0O
(By Mike Dolan, editing by Ed Osmond, 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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Possibly wary of a premature easing of financial conditions before its tightening campaign is finished, some investors suspect the Fed may want to hang tough for a bit longer - stressing more needs to be done to ensure inflation is licked even as it slows the pace of rate hikes another notch to a quarter point rise on Wednesday. Underlining the point, the International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to "surprisingly resilient" demand in the United States and Europe, easing energy costs and China's reopening. Indian billionaire Gautam Adani's $2.5 billion share sale inched closer to full subscription on Tuesday as investors pumped in funds after a tumultuous week for his group in which its stocks were pummelled by a scathing short-seller report Key developments that may provide direction to U.S. markets later on Tuesday: * U.S. Federal Reserve's Federal Open Market Committee starts two-day meeting * U.S. Q4 employment costs, Jan consumer confidence, Chicago PMI business survey, Dallas Fed services index, Nov house prices * U.S. corp earnings: Exxon Mobil, Marathon, Pfizer, McDonald's, UPS, Amgen, Caterpillar, AMD, Stryker, Mondelez, Moody's, GM, MSCI, Electronic Arts, Spotify, Snap, Chubb, Western Digital, Juniper Networks, Boston Properties, Edwards Lifesciences, Match, Sysco, Corning, Pentair, Intl Paper, AO Smith, Dover Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2 Fed's bond cull lags some forecastshttps://tmsnrt.rs/3kTryKG China economic activity reboundshttps://tmsnrt.rs/3DrrmIQ UK is only G7 economy yet to regain pre-pandemic sizehttps://tmsnrt.rs/40b7V0O (By Mike Dolan, editing by Ed Osmond, mike.dolan@thomsonreuters.com.
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As U.S. Federal Reserve's Federal Open Market Committee kicks off its two-day policymaking meeting, the economic news from around the world brightened considerably. Another one-two of half point rate rises from the European Central Bank and Bank of England the following day adds to the trepidation, not least with Spain reminding everyone on Monday that inflation rates can re-accelerate again even after peaking. Indian billionaire Gautam Adani's $2.5 billion share sale inched closer to full subscription on Tuesday as investors pumped in funds after a tumultuous week for his group in which its stocks were pummelled by a scathing short-seller report Key developments that may provide direction to U.S. markets later on Tuesday: * U.S. Federal Reserve's Federal Open Market Committee starts two-day meeting * U.S. Q4 employment costs, Jan consumer confidence, Chicago PMI business survey, Dallas Fed services index, Nov house prices * U.S. corp earnings: Exxon Mobil, Marathon, Pfizer, McDonald's, UPS, Amgen, Caterpillar, AMD, Stryker, Mondelez, Moody's, GM, MSCI, Electronic Arts, Spotify, Snap, Chubb, Western Digital, Juniper Networks, Boston Properties, Edwards Lifesciences, Match, Sysco, Corning, Pentair, Intl Paper, AO Smith, Dover Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2 Fed's bond cull lags some forecastshttps://tmsnrt.rs/3kTryKG China economic activity reboundshttps://tmsnrt.rs/3DrrmIQ UK is only G7 economy yet to regain pre-pandemic sizehttps://tmsnrt.rs/40b7V0O (By Mike Dolan, editing by Ed Osmond, mike.dolan@thomsonreuters.com.
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A look at the day ahead in U.S. and global markets from Mike Dolan There's an uncomfortable feeling in markets this week that good news may be bad news once again - mainly because of what the former means for this week's big central banking set pieces. UBSUBSG.S shares fell 3% after the Swiss banking giant predicted an "uncertain" year ahead plagued by accelerating inflation and higher interest rates - even as it beat estimates, upped its dividend and proposed another $5 billion stock buyback this year. Indian billionaire Gautam Adani's $2.5 billion share sale inched closer to full subscription on Tuesday as investors pumped in funds after a tumultuous week for his group in which its stocks were pummelled by a scathing short-seller report Key developments that may provide direction to U.S. markets later on Tuesday: * U.S. Federal Reserve's Federal Open Market Committee starts two-day meeting * U.S. Q4 employment costs, Jan consumer confidence, Chicago PMI business survey, Dallas Fed services index, Nov house prices * U.S. corp earnings: Exxon Mobil, Marathon, Pfizer, McDonald's, UPS, Amgen, Caterpillar, AMD, Stryker, Mondelez, Moody's, GM, MSCI, Electronic Arts, Spotify, Snap, Chubb, Western Digital, Juniper Networks, Boston Properties, Edwards Lifesciences, Match, Sysco, Corning, Pentair, Intl Paper, AO Smith, Dover Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2 Fed's bond cull lags some forecastshttps://tmsnrt.rs/3kTryKG China economic activity reboundshttps://tmsnrt.rs/3DrrmIQ UK is only G7 economy yet to regain pre-pandemic sizehttps://tmsnrt.rs/40b7V0O (By Mike Dolan, editing by Ed Osmond, mike.dolan@thomsonreuters.com.
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A look at the day ahead in U.S. and global markets from Mike Dolan There's an uncomfortable feeling in markets this week that good news may be bad news once again - mainly because of what the former means for this week's big central banking set pieces. Another one-two of half point rate rises from the European Central Bank and Bank of England the following day adds to the trepidation, not least with Spain reminding everyone on Monday that inflation rates can re-accelerate again even after peaking. China's economic activity swung back to growth in January after three months of contraction, according to official business surveys released on Tuesday.
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17357.0
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2023-01-30 00:00:00 UTC
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No Hyperbole: This Really is a Critical Week for Stocks
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AAPL
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https://www.nasdaq.com/articles/no-hyperbole%3A-this-really-is-a-critical-week-for-stocks
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nan
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nan
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O
ne of the dangers for investors of paying attention to financial media, whether it is TV channels such as CNBC or Fox Business, or internet sites that offer commentary and opinion (such as this one), is that it makes you prone to exaggerate the importance of everything that happens. Every writer, presenter, and editor knows that a piece with the words “crisis,” “crash,” or “boom” will do better than one that says that nothing much is going to happen, even though nothing much happening is always a far more likely scenario. In the world of financial media, every data release is “critical,” and every stock is “set to soar” or “about to collapse.”
That is why I am reluctant in some ways to say that this week is “critical” for stocks. I don’t want to employ the kind of hyperbole that distorts reality, but the more I look at the economic and earnings calendars for the week, the more convinced I am that that is the case.
The economic calendar side of that may surprise some people, given that the calendar for this week doesn’t show any major data until the jobs report on Friday, and even then, unemployment has become a much less significant indicator than it once was. What makes this week so important, however, is not new data but the interpretation of existing data. What really matters right now is how central banks interpret that data.
If the actual numbers mattered, the Fed would have started to hike rates a lot sooner than they did, and nobody would have uttered the word “transient,” but that isn’t what happened. Instead, they looked at employment, price, and consumer spending data that screamed “inflation!” and told us that that was misleading, that price rises were driven primarily by supply chain disruptions and would quickly fade away. They delayed raising rates, and inflation is probably worse than it could have been as a result. The data at that time wasn't what mattered; it was the Fed’s interpretation of that data that drove policy. We are in the same place now in terms of whether to pause or even reverse the rising rate policy.
The deliberations of the Fed, the ECB and the Bank of England this week are, in many ways, more important than the numbers they will be deliberating.
Then there are earnings. It is a huge week for big tech, with Meta (META), Alphabet (GOOG, GOOGL), Apple (AAPL), and Amazon (AMZN) all reporting on either Wednesday or Thursday. This is always a significant part of earnings season, but especially now. These are the names that led the market lower last year but have bounced as optimism increased this month. They have all talked about a tough start to 2023 and, in most cases, have announced cutbacks and layoffs. If it turns out that pessimism was prompted by a bad Q4, and/or if it continues in terms of their outlook for the rest of the year, the midweek big tech could easily prompt a sharp reversal in the major indices.
This will be a week of risk. There is a risk that tone-deaf central banks will get behind the curve again, and that what is now seen as an abundance of caution by big tech companies will be revealed as necessary cutbacks prompted by terrible business conditions. Either of those could cause a major drop in stocks; on the other hand, this week could also add fuel to the rally. A more dovish time from central banks, or better than expected Q4 results from Meta, Alphabet, Apple, and Amazon with neutral to positive outlooks could send stocks higher.
It is, therefore, not hyperbole to say that this week is critical for stocks. It is just a statement of fact.
* In addition to contributing here, Martin Tillier works as Head of Research at the crypto platform SmartFI.
The views and 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 is a huge week for big tech, with Meta (META), Alphabet (GOOG, GOOGL), Apple (AAPL), and Amazon (AMZN) all reporting on either Wednesday or Thursday. ne of the dangers for investors of paying attention to financial media, whether it is TV channels such as CNBC or Fox Business, or internet sites that offer commentary and opinion (such as this one), is that it makes you prone to exaggerate the importance of everything that happens. There is a risk that tone-deaf central banks will get behind the curve again, and that what is now seen as an abundance of caution by big tech companies will be revealed as necessary cutbacks prompted by terrible business conditions.
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It is a huge week for big tech, with Meta (META), Alphabet (GOOG, GOOGL), Apple (AAPL), and Amazon (AMZN) all reporting on either Wednesday or Thursday. If it turns out that pessimism was prompted by a bad Q4, and/or if it continues in terms of their outlook for the rest of the year, the midweek big tech could easily prompt a sharp reversal in the major indices. A more dovish time from central banks, or better than expected Q4 results from Meta, Alphabet, Apple, and Amazon with neutral to positive outlooks could send stocks higher.
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It is a huge week for big tech, with Meta (META), Alphabet (GOOG, GOOGL), Apple (AAPL), and Amazon (AMZN) all reporting on either Wednesday or Thursday. In the world of financial media, every data release is “critical,” and every stock is “set to soar” or “about to collapse.” That is why I am reluctant in some ways to say that this week is “critical” for stocks. The economic calendar side of that may surprise some people, given that the calendar for this week doesn’t show any major data until the jobs report on Friday, and even then, unemployment has become a much less significant indicator than it once was.
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It is a huge week for big tech, with Meta (META), Alphabet (GOOG, GOOGL), Apple (AAPL), and Amazon (AMZN) all reporting on either Wednesday or Thursday. What makes this week so important, however, is not new data but the interpretation of existing data. If the actual numbers mattered, the Fed would have started to hike rates a lot sooner than they did, and nobody would have uttered the word “transient,” but that isn’t what happened.
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17358.0
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2023-01-30 00:00:00 UTC
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US STOCKS-Nasdaq falls as megacaps drop ahead of earnings, Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-falls-as-megacaps-drop-ahead-of-earnings-fed-meet-in-focus-0
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By Shreyashi Sanyal and Johann M Cherian
Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet fell ahead of their earnings reports this week, while investors awaited the U.S. Federal Reserve's rate-setting meeting.
The central bank is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, followed by Fed Chair Jerome Powell's speech, which will be scrutinized for any signs of further increases.
"How strong of a language he (Powell) uses is what it's going to come down to," said Andre Bakhos, president at Ingenium Analytics LLC in Bernardsville, New Jersey.
This will likely be the smallest rate increase since the Fed kicked off its tightening cycle 10 months ago with a 25 bps hike, with financial markets pricing in a final rate hike in March.
Money markets now see rates peaking at 4.9% in June, still below the 5% level expected by Fed policymakers. 0#FEDWATCH
After a slew of layoffs by large-cap tech and financial firms through the month, investors will now keep an eye on the Labor Department's January nonfarm payrolls data expected on Friday.
A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down between 1% to 2%.
Analysts expect S&P 500 earnings for the fourth quarter to decline 3%, compared with a 1.6% drop expected at the beginning of the year, according to Refinitiv data.
Wall Street is expected to end the month higher, with the Nasdaq .IXIC and the S&P 500 Growth index .IGX recouping more than half their monthly losses from December. The S&P 500 index .SPX is set for the best start to the year since 2019.
Tighter monetary policies have stood in the way of growth firms expanding their businesses, which have also been pressured for much of last year by high Treasury yields.
Bakhos said that the decline in growth stocks on Monday could be due to some profit-taking, noting that earnings from these companies could be less dire than what most expect.
The European Central Bank and the Bank of England are also seen raising interest rates later in the week.
Johnson & JohnsonJNJ.N slipped 3% on the dismissal of a bankruptcy petition filed by its LTL Management unit by the 3rd U.S. Circuit Court of Appeals.
American Express Co AXP.Nrose 2.7% after several brokerages raised price targets on the stock on its strong full-year forecast.
Declining issues outnumbered advancers for a 1.70-to-1 ratio on the NYSE and for a 1.66-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and no new lows, while the Nasdaq recorded 46 new highs and 13 new lows.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down between 1% to 2%. 0#FEDWATCH After a slew of layoffs by large-cap tech and financial firms through the month, investors will now keep an eye on the Labor Department's January nonfarm payrolls data expected on Friday. Tighter monetary policies have stood in the way of growth firms expanding their businesses, which have also been pressured for much of last year by high Treasury yields.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down between 1% to 2%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet fell ahead of their earnings reports this week, while investors awaited the U.S. Federal Reserve's rate-setting meeting. The central bank is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, followed by Fed Chair Jerome Powell's speech, which will be scrutinized for any signs of further increases.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down between 1% to 2%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet fell ahead of their earnings reports this week, while investors awaited the U.S. Federal Reserve's rate-setting meeting. The central bank is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, followed by Fed Chair Jerome Powell's speech, which will be scrutinized for any signs of further increases.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down between 1% to 2%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet fell ahead of their earnings reports this week, while investors awaited the U.S. Federal Reserve's rate-setting meeting. The central bank is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, followed by Fed Chair Jerome Powell's speech, which will be scrutinized for any signs of further increases.
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17359.0
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2023-01-30 00:00:00 UTC
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Meta Platforms (META) to Report Q4 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q4-earnings%3A-what-to-expect
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Meta Platforms META is set to report its fourth-quarter 2022 results on Feb 1.
Meta expects total revenues between $30 billion and $32.5 billion for the fourth quarter of 2022. Unfavorable forex is expected to hurt year-over-year top-line growth by 7%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $31.31 billion, indicating a decrease of 7.02% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $2.23 per share, up 4.7% over the past 30 days, suggesting a decline of 39.24% from the figure reported in the year-ago quarter.
Meta’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative surprise being 2.55%.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Meta’s fourth-quarter top line is expected to have been affected by a challenging macroeconomic environment, high inflation, and rising interest rates hurting the ad spending budgets of enterprises. This is expected to have weighed on the ad revenues of Meta in the to-be-reported quarter.
Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
In the third quarter of 2022, Meta’s ad revenues represented 98.3% of the total revenues, which decreased 3.7% year over year to $27.24 billion. The declining revenue trend is expected to have continued in the fourth quarter.
Nevertheless, Meta is banking on adding users, driven by features like protections against malicious links in Facebook messenger and Instagram direct messages using automated systems, Instagram impostor alerts, and increased Instagram verified badge specialty.
Meta also announced the introduction of age verification technology to Facebook Dating in the United States to prevent users under the age of 18 from accessing experiences meant to be enjoyed as adults.
However, higher operating expenses due to an estimated $900 million in additional charges related to the consolidation of office facilities are expected to have hurt profitability.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Meta currently has an Earnings ESP of +13.39% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Juniper JNPR has an Earnings ESP of +1.89% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Juniper shares have declined 8% in the past year. JNPR is set to report its fourth-quarter 2022 results on Jan 31.
Perion Network PERI has an Earnings ESP of +13.40% and a Zacks Rank #3.
Perion shares have gained 62.1% in the past year. PERI is set to report its fourth-quarter 2022 results on Feb 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
Perion Network Ltd (PERI) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The consensus mark for earnings is pegged at $2.23 per share, up 4.7% over the past 30 days, suggesting a decline of 39.24% from the figure reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $31.31 billion, indicating a decrease of 7.02% from the year-ago quarter’s reported figure.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Let’s see how things have shaped up for the upcoming announcement.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $31.31 billion, indicating a decrease of 7.02% from the year-ago quarter’s reported figure.
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17360.0
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2023-01-30 00:00:00 UTC
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Wall Street Waits for Fed FOMC and Key Economic Data
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AAPL
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https://www.nasdaq.com/articles/wall-street-waits-for-fed-fomc-and-key-economic-data
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nan
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We have a consequential week in the markets ahead of us — perhaps the most consequential week we’ve seen so far this year. Not only do we have a new Fed funds rate out mid-week (expectations are for a 25 bps bump to a 4.50-4.75% range), but we also get roughly 20% of the S&P 500 reporting quarterly earnings before Friday’s closing bell.
Among those companies reporting, we’re now in a “free for all” in terms of sectors accounting for their past quarters, A normal earnings season starts with Big Banks and moves to Big Tech, ending with Restaurants and Retailers in the final stages. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD.
Today we’ll here from Whirlpool WHR, among others, after the closing bell. The Durable Goods staple of home appliances limps into earnings season with a Zacks Rank #5 (Strong Sell). As consumers become a little more discriminatory in terms of their purchases, we shall see if Whirlpool is able to manage its way through this rough patch.
In addition, monthly jobs numbers from the private sector via ADP ADP and the U.S. government (BLS) are out Wednesday and Friday, respectively, along with JOLTS figures and weekly Jobless Claims. Case-Shiller home prices and ISM Manufacturing and Services join the party throughout the week, as well. Suffice it to say we’ll be in a new zone by the end of this week than we are here at the beginning.
Following another solid week of gains — which is sizing up to be one of the strongest January trading months in years — pre-market futures are selling off some of their profits: the Dow is -150 points at this hour, the S&P 500 is -30 and the Nasdaq -130. This is not to say market participants are cooling on overall prospects in equities, but after last year’s half-dozen or so head-fakes, investors appear to believe it’s best not to get far out ahead of the data soon to come.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Whirlpool Corporation (WHR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only do we have a new Fed funds rate out mid-week (expectations are for a 25 bps bump to a 4.50-4.75% range), but we also get roughly 20% of the S&P 500 reporting quarterly earnings before Friday’s closing bell.
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Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only do we have a new Fed funds rate out mid-week (expectations are for a 25 bps bump to a 4.50-4.75% range), but we also get roughly 20% of the S&P 500 reporting quarterly earnings before Friday’s closing bell.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. We have a consequential week in the markets ahead of us — perhaps the most consequential week we’ve seen so far this year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. Today we’ll here from Whirlpool WHR, among others, after the closing bell.
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17361.0
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2023-01-30 00:00:00 UTC
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US STOCKS-Nasdaq falls as megacaps drop ahead of earnings, Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-falls-as-megacaps-drop-ahead-of-earnings-fed-meet-in-focus
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nan
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By Shreyashi Sanyal and Johann M Cherian
Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet declined ahead of their earnings reports this week, while investors also awaited key central bank meetings.
The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
This will likely be the smallest rate increase since the Fed kicked off its tightening cycle 10 months ago with a 25 bps hike, with financial markets pricing in a final rate hike in March.
"The Fed's going to continue to err on the side of caution with respect to inflation because of the fact that it still remains well above the 2% target ... we're seeing signs that inflation may be coming down, but it's still not low enough," said Adam Sarhan, chief executive of 50 Park Investments in New York.
Money markets now see rates peaking at 4.9% in June, still below the 5% level expected by Fed policymakers. 0#FEDWATCH
After a slew of layoffs by large-cap tech and financial firms through the month, investors will now watch out for the Labor Department's January nonfarm payrolls data expected on Friday.
A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down about 1%.
Analysts expect S&P 500 earnings during the fourth-quarter to decline 3%, compared with the 1.6% drop expected at the beginning of the year, according to Refinitiv data.
Wall Street is expected to end the month higher with the Nasdaq .IXIC and the S&P 500 Growth index .IGX recouping more than half their monthly losses from December.
Tighter monetary policies have stood in the way of growth firms expanding their businesses, which have also been pressured for much of last year by high Treasury yields.
"The month of January was a big 'up-month' on Wall Street, led mostly by many of the big stocks that got crushed last year," Sarhan added, noting that the decline in growth stocks on Monday could be due to some profit-taking.
Other major central banks including the European Central Bank and the Bank of England are also seen raising interest rates later in the week.
At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI was up 14.55 points, or 0.04%, at 33,992.63, the S&P 500 .SPX was down 20.90 points, or 0.51%, at 4,049.66, and the Nasdaq Composite .IXIC was down 133.10 points, or 1.15%, at 11,488.61.
Countering declines on the blue-chip Dow .DJI, American Express AXP.N rose 1.6% after several brokerages raised price targets on the stock on its strong full-year forecast.
Five of the major 11 S&P 500 sector indexes fell with communication services .SPLRCL and technology .SPLRCT leading the fall.
Declining issues outnumbered advancers by a 1.36-to-1 ratio on the NYSE and by a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 39 new highs and eight new lows.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down about 1%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet declined ahead of their earnings reports this week, while investors also awaited key central bank meetings. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down about 1%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet declined ahead of their earnings reports this week, while investors also awaited key central bank meetings. This will likely be the smallest rate increase since the Fed kicked off its tightening cycle 10 months ago with a 25 bps hike, with financial markets pricing in a final rate hike in March.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down about 1%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet declined ahead of their earnings reports this week, while investors also awaited key central bank meetings. Wall Street is expected to end the month higher with the Nasdaq .IXIC and the S&P 500 Growth index .IGX recouping more than half their monthly losses from December.
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A total of 107 S&P 500 firms are expected to report quarterly results in the busiest week of the earnings season, including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, each down about 1%. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - The tech-focused Nasdaq fell more than 1% on Monday as megacap growth stocks including Apple, Amazon and Alphabet declined ahead of their earnings reports this week, while investors also awaited key central bank meetings. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
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17362.0
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2023-01-30 00:00:00 UTC
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Apple Earnings Preview: Why AAPL Stock Could Dive After the Feb. 2 Report
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AAPL
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https://www.nasdaq.com/articles/apple-earnings-preview%3A-why-aapl-stock-could-dive-after-the-feb.-2-report
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) shares, like the overall stock market, have zoomed higher in recent weeks. Rising optimism that the Federal Reserve will soon ease on interest rate hikes has resulted in big inflows back in stocks, in particular big tech names such as AAPL stock.
But besides the possibility that the Federal Reserve carries on with raising rates to bring down, there’s another factor that perhaps leaves AAPL at risk of a big pullback. That would be the tech giant’s upcoming earnings report on Feb. 2.
The market knows full well that Apple’s results for the preceding quarters are all-but-certain to be underwhelming, compared to its numbers from prior fiscal quarters. However, investors today may be overly optimistic that today’s challenges are just about to dissipate, and a return to growth is just around the corner.
With this, I wouldn’t chase this stock’s latest rally.
AAPL Apple
Why AAPL Stock Could Dive After Earnings
Over the past few months, Apple has walked back expectations regarding its results for the December quarter. For example, in November, management warned investors via press release that, because of China’s Covid-19 lockdowns iPhone shipments will likely come in lower-than-expected during the December quarter.
In response to this and other developments, such as the overall slowdown in consumer tech spending, sell-side analysts covering AAPL stock have also walked back their respective forecasts.
So, with most expecting weak numbers out of Apple, why is the stock at risk of a post-earnings dive? Sure, often a stock can pop after delivering a subpar earnings report, simply by providing promising outlook updates. Unfortunately, I wouldn’t count on this happening.
At least, that’s the view of many analysts. In a recent research note, BofA’s Wamsi Mohan argued that updates to guidance for the current quarter, and the next few quarters, fall short of what Wall Street presently expects.
Another analyst, Bernstein’s Toni Sacconaghi, has expressed similar sentiments. If these forecasts prove correct, and Apple signals that it’s not about to turn a corner, AAPL’s latest rally could reverse course.
When Will Shares Get Back into the Fastlane?
AAPL stock may not be at risk of re-testing its lows. Even if the aforementioned scenario plays out, shares could still find support at levels slightly above the stock’s 52-week low ($124.17 per share).
That said, if Apple falls back into a slump, it may stay there for a quite some time. The current downturn in tech, and the overall economy, is likely to persist throughout most of Apple’s current fiscal year (ending Sep. 30, 2023). It may not be until the start of the 2024 fiscal year that Apple’s operating performance begins a sustainable comeback.
Not only that, although earnings could rebound in FY24, AAPL’s stock price recovery may only play out gradually. Current forecasts call for earnings growth of around 9.45% next fiscal year, and 5.4% during FY25.
As it may prove difficult for AAPL (trading for around 23.9 times earnings) to justify a higher earnings multiple with this level of growth, it may not be until two fiscal years from now (when the company is expected to earn around $7.08 per share) that the stock re-hits its all-time closing high (around $180 per share).
Bottom Line
Yes, there’s still the potential for Apple to pleasantly surprise once the economy normalizes. However, until there’s more concrete evidence this rosier scenario plays out, there’s no need to buy on the mere hopes of it happening.
It’s worth noting that it’s not just softening iPhone demand that’s affecting Apple’s current performance. The Services unit, one of the company’s emerging segments, is also experiencing a growth slowdown.
Don’t get me wrong, Apple is in a much better place than many of its peers. Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), the parent company of Google and YouTube, is contending with rising competition.
Facebook and Instagram parent Meta Platforms (NASDAQ:META) is burning through billions with its ill-timed metaverse wager.
Still, although facing fewer issues, treat this FAANG component like the others, and hold off on AAPL stock.
AAPL stock earns a D rating in Portfolio Grader.
On the date of publication, Louis Navellier had a long position in GOOG and META. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Apple Earnings Preview: Why AAPL Stock Could Dive After the Feb. 2 Report appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But besides the possibility that the Federal Reserve carries on with raising rates to bring down, there’s another factor that perhaps leaves AAPL at risk of a big pullback. In response to this and other developments, such as the overall slowdown in consumer tech spending, sell-side analysts covering AAPL stock have also walked back their respective forecasts. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) shares, like the overall stock market, have zoomed higher in recent weeks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) shares, like the overall stock market, have zoomed higher in recent weeks. Rising optimism that the Federal Reserve will soon ease on interest rate hikes has resulted in big inflows back in stocks, in particular big tech names such as AAPL stock. But besides the possibility that the Federal Reserve carries on with raising rates to bring down, there’s another factor that perhaps leaves AAPL at risk of a big pullback.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) shares, like the overall stock market, have zoomed higher in recent weeks. AAPL Apple Why AAPL Stock Could Dive After Earnings Over the past few months, Apple has walked back expectations regarding its results for the December quarter. As it may prove difficult for AAPL (trading for around 23.9 times earnings) to justify a higher earnings multiple with this level of growth, it may not be until two fiscal years from now (when the company is expected to earn around $7.08 per share) that the stock re-hits its all-time closing high (around $180 per share).
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AAPL Apple Why AAPL Stock Could Dive After Earnings Over the past few months, Apple has walked back expectations regarding its results for the December quarter. The post Apple Earnings Preview: Why AAPL Stock Could Dive After the Feb. 2 Report appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) shares, like the overall stock market, have zoomed higher in recent weeks.
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17363.0
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2023-01-30 00:00:00 UTC
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GLOBAL MARKETS-Stocks fall, U.S. yields climb with central banks on tap
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-fall-u.s.-yields-climb-with-central-banks-on-tap
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nan
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By Chuck Mikolajczak
NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation.
Investors widely expect the Federal Reserve will raise rates by 25 basis points (bps) on Wednesday, with announcements on Thursday from the Bank of England and European Central Bank (ECB), both of which are largely expected to hike by 50 bps.
"It would be pretty shocking for them to come out and do anything other than 25 on Wednesday just because it has been priced in there and they haven’t taken the opportunity to push back on it," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.
"It’s not necessarily in the Fed’s best interest to forecast a pause or pivot at this stage – they still have an inflation number that is too high, they still have an employment situation they believe is too tight."
The Dow Jones Industrial Average .DJI fell 189.88 points, or 0.56%, to 33,788.2, the S&P 500 .SPX lost 43.59 points, or 1.07%, to 4,026.97 and the Nasdaq Composite .IXIC dropped 193.19 points, or 1.66%, to 11,428.52.
The rate increase expected at the Federal Open Market Committee's Jan. 31-Feb. 1 meeting would bring the policy rate to the 4.5%-4.75% range. That's two quarter-point rate hikes short of the level most Fed policymakers in December thought would be "sufficiently restrictive" to bring inflation under control. But futures 0#FF: currently expect rates to peak at about 4.9% in June before retreating to 4.5% by year-end.FEDWATCH
Markets will also grapple with a host of U.S. economic data, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labor market as a key factor in bringing down high inflation. Other data included gauges of the manufacturing and services sectors.
The U.S. corporate earnings season also continues to roll on, with earnings this week expected from the likes of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, per Refinitiv data, weaker than the 1.6% fall seen at the start of the year.
Stocks in Europe closed lower, with rate-sensitive names such as technology shares among the primary decliners after inflation data from Spain came in above expectations while other data showed the German economy unexpectedly contracted in the fourth quarter.
The pan-European STOXX 600 index .STOXX lost 0.17% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.85%. MSCI's index was on track for its biggest January percentage gain since 2019 while the STOXX 600 was poised for its largest January percentage gain since 2015.
U.S. Treasury yields rose ahead of the central bank meetings and economic data, with the 10-year yield up for a third consecutive session. Benchmark 10-year notes US10YT=RR were up 2.6 basis points to 3.544%, from 3.518% late on Friday.
The greenback, which was poised for its fourth month of declines as expectation have increased the Fed was nearing the end of its rate-hiking cycle, was up for a third straight session against a basket of major currencies.
The dollar index =USD rose 0.402%, with the euro EUR= down 0.25% to $1.084.
The Japanese yen weakened 0.51% versus the greenback to 130.51 per dollar, while Sterling GBP= was last trading at $1.2338, down 0.48% on the day.
Crude prices fell ahead of the expected hikes by central banks and signals of strong Russian exports.
U.S. crude CLc1 fell 2.16% to $77.96 per barrel and Brent LCOc1 was at $84.86, down 2.08% on the day.
Global asset performance http://tmsnrt.rs/2yaDPgn
World FX rateshttp://tmsnrt.rs/2egbfVh
(Reporting by Chuck Mikolajczak Editing by Bernadette Baum)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and 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 U.S. corporate earnings season also continues to roll on, with earnings this week expected from the likes of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. But futures 0#FF: currently expect rates to peak at about 4.9% in June before retreating to 4.5% by year-end.FEDWATCH Markets will also grapple with a host of U.S. economic data, culminating in Friday's payrolls report for January.
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The U.S. corporate earnings season also continues to roll on, with earnings this week expected from the likes of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. U.S. Treasury yields rose ahead of the central bank meetings and economic data, with the 10-year yield up for a third consecutive session.
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The U.S. corporate earnings season also continues to roll on, with earnings this week expected from the likes of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. Investors widely expect the Federal Reserve will raise rates by 25 basis points (bps) on Wednesday, with announcements on Thursday from the Bank of England and European Central Bank (ECB), both of which are largely expected to hike by 50 bps.
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The U.S. corporate earnings season also continues to roll on, with earnings this week expected from the likes of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. The rate increase expected at the Federal Open Market Committee's Jan. 31-Feb. 1 meeting would bring the policy rate to the 4.5%-4.75% range. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, per Refinitiv data, weaker than the 1.6% fall seen at the start of the year.
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17364.0
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2023-01-30 00:00:00 UTC
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Unusual Options Activity: COIN, LCID, AAPL and 6 Others
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AAPL
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https://www.nasdaq.com/articles/unusual-options-activity%3A-coin-lcid-aapl-and-6-others
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nan
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Many investors brush off or ignore options trading because options are complex and misunderstood. However, many other traders have learned how to “follow the flow.”
In other words, they want to know what the big funds and institutions are doing. When these buyers make their move in the options world, they leave a trail behind them — footsteps.
We can follow those footsteps when looking for unusual options activity.
Thankfully, there’s a leaderboard of options activity for both calls and puts, helping us keep track of it all when we see outsized volume. Let’s look at some of the most interesting action of the past week.
Las Vegas Sands (LVS)
Shares of Las Vegas Sands (US:LVS) have been trading really well lately, up about 75% from the fourth-quarter low and up more than double from the 52-week low set in May. The company also recently reported earnings on Jan. 25th.
After the company reported, one trader swooped in and dropped some huge premium, paying $37.25 million for the June $45 calls on Jan. 26th. These calls were deep-in-the-money, with shares trading at near $58 at the time of the trade.
Because the trade was so large, it completely overshadowed some of the other big trades, like the nearly $1 million in premium that went into the September $50 calls 10 minutes later.
MGM Resorts International (MGM)
MGM Resorts International (US:MGM) wont reportuntil early February and while it’s been trading well — up about 23.5% from the fourth-quarter low — it hasn’t been anywhere near as good as Las Vegas Sands.
That’s not stopping the bullish options flow, though. That’s as one trader bought the in-the-money June $35 calls and paid more than $1.8 million in premium.
That trade — which was similar to the one in LVS — was on Jan. 30th, a day there was additional flow. That’s as someone paid roughly $1.8 million for the January 2024 $45 calls and as someone paid $224,000 for the June $45 calls.
Apple (AAPL)
We don’t see Apple (US:AAPL) on the top of the list too often, but it weighed in at No. 3 on the leaderboard this week. With a $2.3 trillion market cap and earnings due up on Feb. 2nd, it’s no surprise there are some heavy bets.
One trade that really stood out occurred when someone bought more than $8.5 million worth of the May $140 calls when shares were trading near $145 on Jan. 27th. Interestingly, someone bought almost $500,000 worth of the May $140 puts too, about 30 minutes later.
Another trader paid $584,000 for the May $165 calls. That either kickstarted momentum in these calls or it was a part of a larger order. That’s as that particular call attracted more than $6.2 in additional long premium by the end of the day.
Lastly, there was some bearish action too. That’s as someone sold almost $2.4 million worth of the December $200 calls, while someone else bought $240,000 worth of the Feb. 10th $147 puts and $200,000 of the Feb. 3rd $142 puts (both of which were at-the-money).
Lucid Motors (LCID)
In the headlines over a potential buyout or larger investment from Saudi Arabia’s Public Investment Fund, Lucid Motors (US:LCID) has been in focus lately.
That speculation was boiling over on Friday, as traders piled into the February $15 calls. One trader (or a series of traders) spent over $3.3 million in premium for those calls, while other short-term calls were in focus.
The call side was getting more action on Monday Jan. 30th, including $200,000 on this week’s $12.50 calls and $230,000 on the December $7 calls.
General Motors (GM)
Sticking with the automotive trade, General Motors (US:GM) made the list as well. With earnings due up on Tuesday Jan. 31st, we’re seeing a lot of action on the call side for GM.
Of course, that doesn’t guarantee there will be a bullish reaction to earnings, but that’s where the action has been in the days leading up to it. Broadly, the $39 and $39.50 calls expiring Feb. 3rd, Feb. 10th and Feb. 17th were getting the most action, with more than $1.3 million in premium spread out between these calls.
Rivian (RIVN)
One last automotive/EV stock on the list was Rivian (US:RIVN). Unlike GM, one trade in particular really stood out.
That occurred on Jan. 27th, when one trader bought $1.36 million worth of the March $27.50 calls. These calls were quite out-of-the-money, as shares of Rivian were trading near $20 at the time of the trade.
Shopify (SHOP)
Tech stocks have had one of their best months in quite some time and Shopify (US:SHOP) has been enjoying the run as well. At least one trader (and possibly more) are betting on further upside in Shopify.
On Jan. 27th, one trader dropped $2.8 million on the $47.50 calls that expire on Feb. 2nd. On the same day, another trader spent close to $3.7 million on the Feb. 2nd $45 calls.
Lastly, on Monday Jan. 30th, another trader (or possibly the same trader) spent more than $2 million in premium on this week’s $45.50 calls.
Netflix (NFLX)
Similarly, Netflix (US:NFLX) stock has traded quite well on the long side. In fact, it’s been the best-performing FAANG stock over the last six and 12 months. I bet not too many traders would have expected that.
Netflix reported earnings earlier this month, but a favorable reaction from big tech this week could send it higher. That seems to be the bet from one trader, who spent almost $3 million for the Feb. 3rd $360 calls, which were slightly in-the-money at the time of the trade on Jan. 27th.
Salesforce (CRM)
Last but certainly not least is Salesforce (US:CRM). The company has been a recent focus among investors and traders alike, as activist investor Elliott Management took a stake in the stock.
On Jan. 26th, one trader bought $1.27 million of the Feb. 10th $170 calls when shares were trading near $160. Later in the day, someone bought ~$218,000 of the Feb. 3rd $160 calls.
That said, it’s hard to ignore the ~$33 million in various put premium that hit the tape on Jan. 18th.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) We don’t see Apple (US:AAPL) on the top of the list too often, but it weighed in at No. Thankfully, there’s a leaderboard of options activity for both calls and puts, helping us keep track of it all when we see outsized volume. After the company reported, one trader swooped in and dropped some huge premium, paying $37.25 million for the June $45 calls on Jan. 26th.
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Apple (AAPL) We don’t see Apple (US:AAPL) on the top of the list too often, but it weighed in at No. Las Vegas Sands (LVS) Shares of Las Vegas Sands (US:LVS) have been trading really well lately, up about 75% from the fourth-quarter low and up more than double from the 52-week low set in May. MGM Resorts International (MGM) MGM Resorts International (US:MGM) wont reportuntil early February and while it’s been trading well — up about 23.5% from the fourth-quarter low — it hasn’t been anywhere near as good as Las Vegas Sands.
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Apple (AAPL) We don’t see Apple (US:AAPL) on the top of the list too often, but it weighed in at No. One trader (or a series of traders) spent over $3.3 million in premium for those calls, while other short-term calls were in focus. The call side was getting more action on Monday Jan. 30th, including $200,000 on this week’s $12.50 calls and $230,000 on the December $7 calls.
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Apple (AAPL) We don’t see Apple (US:AAPL) on the top of the list too often, but it weighed in at No. That’s as one trader bought the in-the-money June $35 calls and paid more than $1.8 million in premium. Lastly, on Monday Jan. 30th, another trader (or possibly the same trader) spent more than $2 million in premium on this week’s $45.50 calls.
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17365.0
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2023-01-30 00:00:00 UTC
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US STOCKS-Tech, megacaps drag Wall St down at start of big market week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-tech-megacaps-drag-wall-st-down-at-start-of-big-market-week
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nan
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nan
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By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian
NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports.
The heavyweight tech sector .SPLRCT was among the biggest S&P 500 sector decliners on the day. Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are due to post results later this week, all slumped.
More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data.
“The market has had a big run and the trading is a bit more cautious heading into a week which likely will be an inflection point for the overall market,” said Keith Lerner, co-chief investment officer at Truist Advisory Services.
According to preliminary data, the S&P 500 .SPX lost 52.38 points, or 1.29%, to end at 4,018.18 points, while the Nasdaq Composite .IXIC lost 227.89 points, or 1.96%, to 11,393.81. The Dow Jones Industrial Average .DJI fell 254.47 points, or 0.75%, to 33,723.61.
Despite Monday's declines, the S&P 500 was on track to post its biggest January gain since 2019.
The U.S. central bank is seen hiking the Fed funds rate by 25 basis points at the end of its two-day policy meeting on Wednesday, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
Fed Chair Jerome Powell's news conference will be scrutinized for whether the rate-hiking cycle may be coming to a close and for signs of how rates could stay elevated.
“It’s probably one of the most important meetings since the whole thing began," said Sameer Samana, seniorglobal marketstrategist at Wells Fargo Investment Institute. "Unless the Fed extends that timeline meaningfully from what the market expects, which is that the Fed will be done in the next meeting or two, this may end up marking the pause, so to speak.”
Meanwhile, the European Central Bank is expected to deliver another large rate hike on Thursday.
Investors are also focused on earnings reports, amid concerns the economy may be facing a recession. With more than 140 companies having reported so far, S&P 500 earnings are expected to have fallen 3% in the fourth quarter compared with the prior-year period, according to Refinitiv IBES.
In company news, shares of Johnson & JohnsonJNJ.N fell after the healthcare giant's strategy to use bankruptcy to resolve the multibillion-dollar litigation over claims its talc products cause cancer was rejected by a federal appeals court.
(Reporting by Lewis Krauskopf in New York, and Shreyashi Sanyal and Johann M Cherian in Bengaluru Editing by Anil D'Silva and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are due to post results later this week, all slumped. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data. Fed Chair Jerome Powell's news conference will be scrutinized for whether the rate-hiking cycle may be coming to a close and for signs of how rates could stay elevated.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are due to post results later this week, all slumped. By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are due to post results later this week, all slumped. By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. The U.S. central bank is seen hiking the Fed funds rate by 25 basis points at the end of its two-day policy meeting on Wednesday, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are due to post results later this week, all slumped. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data. According to preliminary data, the S&P 500 .SPX lost 52.38 points, or 1.29%, to end at 4,018.18 points, while the Nasdaq Composite .IXIC lost 227.89 points, or 1.96%, to 11,393.81.
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17366.0
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2023-01-30 00:00:00 UTC
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After Hours Most Active for Jan 30, 2023 : ET, AAPL, DV, MPLX, CLVT, OPEN, MSFT, BBAI, GOOGL, QQQ, AMZN, RFP
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-30-2023-%3A-et-aapl-dv-mplx-clvt-open-msft-bbai-googl-qqq
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The NASDAQ 100 After Hours Indicator is up 12.01 to 11,924.4. The total After hours volume is currently 78,645,844 shares traded.
The following are the most active stocks for the after hours session:
Energy Transfer L.P. (ET) is unchanged at $13.10, with 18,114,274 shares traded. ET's current last sale is 77.06% of the target price of $17.
Apple Inc. (AAPL) is +0.21 at $143.21, with 3,821,260 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.93. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
DoubleVerify Holdings, Inc. (DV) is -0.01 at $26.94, with 3,789,587 shares traded. As reported by Zacks, the current mean recommendation for DV is in the "buy range".
MPLX LP (MPLX) is -0.17 at $34.50, with 3,686,337 shares traded.MPLX is scheduled to provide an earnings report on 1/31/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.84 per share, which represents a 78 percent increase over the EPS one Year Ago
Clarivate Plc (CLVT) is unchanged at $11.05, with 3,442,134 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
Opendoor Technologies Inc (OPEN) is +0.02 at $2.09, with 2,833,167 shares traded. OPEN's current last sale is 52.25% of the target price of $4.
Microsoft Corporation (MSFT) is +0.24 at $242.95, with 2,466,646 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 $2.55. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
BigBear.ai, Inc. (BBAI) is +0.12 at $4.10, with 2,440,526 shares traded. BBAI's current last sale is 82% of the target price of $5.
Alphabet Inc. (GOOGL) is +0.27 at $97.21, with 2,360,730 shares traded.GOOGL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.17 per share, which represents a 153 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +0.47 at $290.74, with 2,278,033 shares traded. This represents a 14.35% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is +0.15 at $100.70, with 2,270,081 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 $0.35. AMZN is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.19 per share, which represents a 139 percent increase over the EPS one Year Ago
Resolute Forest Products Inc. (RFP) is -0.03 at $21.52, with 1,719,895 shares traded. RFP's current last sale is 93.57% of the target price of $23.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. Apple Inc. (AAPL) is +0.21 at $143.21, with 3,821,260 shares traded. Alphabet Inc. (GOOGL) is +0.27 at $97.21, with 2,360,730 shares traded.GOOGL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is +0.21 at $143.21, with 3,821,260 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.21 at $143.21, with 3,821,260 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.93 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.21 at $143.21, with 3,821,260 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. ET's current last sale is 77.06% of the target price of $17.
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17367.0
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2023-01-30 00:00:00 UTC
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GLOBAL MARKETS-Stocks fall, U.S. yields climb as central bank hikes awaited
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-fall-u.s.-yields-climb-as-central-bank-hikes-awaited
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation.
Investors widely expect the Federal Reserve will raise rates by 25 basis points (bps) on Wednesday, with announcements on Thursday from the Bank of England and European Central Bank (ECB), both of which are largely expected to hike by 50 bps.
"The market has had a big run and the trading is a bit more cautious heading into a week which likely will be an inflection point for the overall market," said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta, Georgia.
On Wall Street, U.S. stocks slumped, with 10 of the 11 S&P sectors closing lower, while Johnson & Johnson JNJ.N lost 3.70% after a U.S. court rejected the company's plan to offload into bankruptcy tens of thousands of lawsuits over its talc products.
The Dow Jones Industrial Average .DJI fell 260.99 points, or 0.77%, to 33,717.09, the S&P 500 .SPX lost 52.79 points, or 1.30%, to 4,017.77 and the Nasdaq Composite .IXIC dropped 227.90 points, or 1.96%, to 11,393.81.
The rate increase expected at the Federal Open Market Committee's Jan. 31-Feb. 1 meeting would bring the policy rate to the 4.5%-4.75% range. That's two quarter-point rate hikes short of the level most Fed policymakers in December thought would be "sufficiently restrictive" to bring inflation under control. But futures 0#FF: currently expect rates to peak at about 4.9% in June before retreating to 4.5% by year-end.FEDWATCH
Markets will also grapple with a host of U.S. economic data, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labor market as a key factor in bringing down high inflation. Other data included gauges of the manufacturing and services sectors.
The U.S. corporate earnings season also rolls on, with earnings this week expected from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, according to Refinitiv data, weaker than the 1.6% fall seen at the start of the year.
Stocks in Europe closed lower, with rate-sensitive names such as technology shares among the primary decliners after inflation data from Spain came in above expectations while other data showed the German economy unexpectedly contracted in the fourth quarter.
The pan-European STOXX 600 index .STOXX lost 0.17% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.99%. MSCI's index was on track for its biggest January percentage gain since 2019 while the STOXX 600 was poised for its largest January percentage gain since 2015.
U.S. Treasury yields rose ahead of the central bank meetings and economic data, with the 10-year yield up for a third consecutive session. Benchmark 10-year notes US10YT=RR were up 2.6 basis points to 3.544%, from 3.518% late on Friday.
The greenback, which was poised for its fourth month of declines as expectation have increased the Fed was nearing the end of its rate-hiking cycle, was up for a third straight session against a basket of major currencies.
The dollar index =USD rose 0.334%, with the euro EUR= down 0.17% to $1.0848.
The Japanese yen weakened 0.42% versus the greenback to 130.40 per dollar, while Sterling GBP= was last trading at $1.2345, down 0.42% on the day.
Crude prices fell ahead of the expected hikes by central banks and signals of strong Russian exports.
U.S. crude CLc1 settled down 2.23% at $77.90 per barrel and Brent LCOc1 settled at $84.90, down 2.03% on the day.
Global asset performance http://tmsnrt.rs/2yaDPgn
World FX rateshttp://tmsnrt.rs/2egbfVh
Rates and inflation Rates and inflationhttps://tmsnrt.rs/3U8HdD2
(Reporting by Chuck Mikolajczak, additional reporting by Lewis Krauskopf Editing by Bernadette Baum and Deepa Babington)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and 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 U.S. corporate earnings season also rolls on, with earnings this week expected from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. But futures 0#FF: currently expect rates to peak at about 4.9% in June before retreating to 4.5% by year-end.FEDWATCH Markets will also grapple with a host of U.S. economic data, culminating in Friday's payrolls report for January.
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The U.S. corporate earnings season also rolls on, with earnings this week expected from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. The rate increase expected at the Federal Open Market Committee's Jan. 31-Feb. 1 meeting would bring the policy rate to the 4.5%-4.75% range.
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The U.S. corporate earnings season also rolls on, with earnings this week expected from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. By Chuck Mikolajczak NEW YORK, Jan 30 (Reuters) - A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. Investors widely expect the Federal Reserve will raise rates by 25 basis points (bps) on Wednesday, with announcements on Thursday from the Bank of England and European Central Bank (ECB), both of which are largely expected to hike by 50 bps.
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The U.S. corporate earnings season also rolls on, with earnings this week expected from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O. The rate increase expected at the Federal Open Market Committee's Jan. 31-Feb. 1 meeting would bring the policy rate to the 4.5%-4.75% range. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, according to Refinitiv data, weaker than the 1.6% fall seen at the start of the year.
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17368.0
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2023-01-30 00:00:00 UTC
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Time to Take Another Bite of Apple Before Q1 Earnings?
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AAPL
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https://www.nasdaq.com/articles/time-to-take-another-bite-of-apple-before-q1-earnings
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nan
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nan
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It’s finally time for big tech to take the spotlight and unveil quarterly results. Needless to say, investors are more than ready to finally see what has transpired behind the scenes.
We’ve received several notable quarterly reports so far, including those from Microsoft MSFT, Netflix NFLX, and Tesla TSLA.
Now, the legendary Apple AAPL is gearing up to unveil its quarterly results on Thursday, February 2nd, after the market close.
How does the titan stack up heading into the release? Let’s take a closer look.
Key Metrics
Of course, iPhone revenue will be a closely monitored metric, as it’s been the company’s flagship product and primary source of income. In addition, the results will slightly gauge how many consumers chose to stay with their current iPhone model rather than upgrade in the face of a harsh economic environment.
For the quarter, the Zacks Consensus Estimate for iPhone revenue stands firm at $68.7 billion, indicating a decrease of 4% Y/Y. Still, it’s worth noting that Apple has exceeded our consensus iPhone revenue estimate in three of its last four quarters, with one marginal miss coming in its latest release.
In addition, revenue from the company’s services, including Apple TV+, Apple News+, and Apple Card, has become a solid contributor to its top line, another metric investors will look out for.
Currently, the Zacks Consensus Estimate for Apple’s Services revenue stands at $20.5 billion, suggesting an increase of nearly 6% Y/Y.
Quarterly Estimates
Analysts have taken a bearish stance for the quarter to be reported, with seven downward earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $1.93 suggests a decrease of roughly 8% Y/Y.
Image Source: Zacks Investment Research
Our consensus revenue estimate for the quarter sits at $121.2 billion, indicating a decline of roughly 2% Y/Y.
Quarterly Performance
Apple has managed to deliver better-than-expected results despite facing a challenging business environment, exceeding the Zacks Consensus EPS Estimate in four consecutive quarters.
Just in its latest release, the titan registered a 2.4% EPS beat paired with a 1.9% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Valuation
Currently, Apple shares trade at a 23.7X forward earnings multiple, nearly in line with its five-year median and Zacks sector average but nowhere near highs of 31.3X in 2022.
Image Source: Zacks Investment Research
Further, the company’s forward price-to-sales ratio presently sits at 5.7X, again nearly in line with its five-year median and below highs of 7.7X in 2022.
Image Source: Zacks Investment Research
Putting Everything Together
Perhaps the most popular stock in the market, Apple AAPL, is slated to unveil quarterly results this week.
Regarding the results, investors will be laser-focused on iPhone revenue, as it’s the company’s primary source of income and a slight indicator of consumer health.
In addition, revenue from the company’s services will also be closely monitored, as the segment has quickly become a solid contributor to top line growth.
Analysts have been primarily bearish for the quarter to be reported, with estimates indicating a pullback in earnings and revenue Y/Y.
Further, the company’s valuation multiples have pulled back, with its forward price-to-sales and forward earnings multiple residing at their respective five-year medians.
Heading into the print, Apple is currently a Zacks Rank #3 (Hold) with an Earnings ESP Score of -0.3%.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Putting Everything Together Perhaps the most popular stock in the market, Apple AAPL, is slated to unveil quarterly results this week. Now, the legendary Apple AAPL is gearing up to unveil its quarterly results on Thursday, February 2nd, after the market close. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Now, the legendary Apple AAPL is gearing up to unveil its quarterly results on Thursday, February 2nd, after the market close. Image Source: Zacks Investment Research Putting Everything Together Perhaps the most popular stock in the market, Apple AAPL, is slated to unveil quarterly results this week.
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Image Source: Zacks Investment Research Putting Everything Together Perhaps the most popular stock in the market, Apple AAPL, is slated to unveil quarterly results this week. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Now, the legendary Apple AAPL is gearing up to unveil its quarterly results on Thursday, February 2nd, after the market close.
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Image Source: Zacks Investment Research Putting Everything Together Perhaps the most popular stock in the market, Apple AAPL, is slated to unveil quarterly results this week. Now, the legendary Apple AAPL is gearing up to unveil its quarterly results on Thursday, February 2nd, after the market close. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17369.0
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2023-01-30 00:00:00 UTC
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GLOBAL MARKETS-Asian stocks slip as investors eye central bank hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-stocks-slip-as-investors-eye-central-bank-hikes
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nan
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nan
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By Julie Zhu
Jan 31 (Reuters) - Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data.
Investors broadly expect the U.S. Federal Reserve will raise interest rates by 25 basis points (bps) on Wednesday. Rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
Meanwhile, more than 100 S&P 500 companies including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers.
"It's a big week for both central banks and U.S. equities, with ... some of the household names due to make earnings announcements that will provide a micro overview of the macro economy," ANZ analysts said in a note.
"We expect a 25 bps (U.S.) rate rise and anticipate that the Fed will caution against an early pause in the tightening cycle ... Risk appetite could be vulnerable to a correction."
Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.1%. U.S. stock futures, the S&P 500 e-minis ESc1, rose 0.1%.
Japan's Nikkei stock index .N225 slid 0.1% while Australian shares .AXJO were up 0.2%.
China's blue-chip CSI300 index .CSI300 remained flat in early trade. Hong Kong's Hang Seng index .HSI opened up 0.4%.
On Monday, U.S. stocks lost ground with the major indexes sinking, weighed down by declines in technology and other giant corporations' shares.
The Dow Jones Industrial Average .DJI fell 0.8% to 33,717.09, the S&P 500 .SPX lost 1.3% to 4,017.77 and the Nasdaq Composite .IXIC dropped 2.0% to 11,393.81.
Despite Monday's declines, the S&P 500 remained on track to post its biggest January gain since 2019.
At the end of the Fed's two-day policy meeting on Wednesday investors will be glued to Chair Jerome Powell's news conference for clues on whether the rate-hiking cycle may be coming to a close, and for signs of how long rates could stay elevated.
Markets will also grapple with a flood of U.S. economic data, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labour market as a key factor in bringing down high inflation.
U.S. Treasury yields remained firm ahead of the central bank meetings and economic data, with the yield on benchmark 10-year Treasury notes US10YT=RR standing at 3.5384% compared with its U.S. close of 3.551% on Monday.
The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, touched 4.2402% compared with a U.S. close of 4.261%.
In currencies, the U.S. dollar, which was poised for its fourth month of declines, was down at 102.19 against a basket of other major currencies.
The European single currency EUR= was up 0.1% on the day at $1.0852, having gained 1.4% in a month.
In the energy market, oil prices fell on Monday ahead of the expected hikes by central banks and signals of strong Russian exports.
U.S. crude CLc1 ticked up 0.2% to $78.02 a barrel while Brent crude LCOc1 settled at $84.9 per barrel early in the Asia session.
Gold was slightly higher. Spot gold XAU= was traded at $1922.91 per ounce. GOL/
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Editing by Kenneth Maxwell)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.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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Meanwhile, more than 100 S&P 500 companies including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data. "It's a big week for both central banks and U.S. equities, with ... some of the household names due to make earnings announcements that will provide a micro overview of the macro economy," ANZ analysts said in a note.
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Meanwhile, more than 100 S&P 500 companies including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data. U.S. Treasury yields remained firm ahead of the central bank meetings and economic data, with the yield on benchmark 10-year Treasury notes US10YT=RR standing at 3.5384% compared with its U.S. close of 3.551% on Monday.
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Meanwhile, more than 100 S&P 500 companies including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data. Rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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Meanwhile, more than 100 S&P 500 companies including Apple AAPL.O, Amazon.com AMZN.O and Google parent Alphabet GOOGL.O are expected to report results this week, which also will see the publication of closely watched U.S. employment numbers. By Julie Zhu Jan 31 (Reuters) - Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data. Rate announcements are due on Thursday from both the Bank of England and the European Central Bank - and both are expected to hike rates by 50 bps.
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17370.0
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2023-01-30 00:00:00 UTC
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Notable Monday Option Activity: AAPL, CMRE, FSR
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aapl-cmre-fsr
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 546,972 contracts have traded so far, representing approximately 54.7 million underlying shares. That amounts to about 74.6% of AAPL's average daily trading volume over the past month of 73.3 million shares. Particularly high volume was seen for the $140 strike put option expiring February 17, 2023, with 29,585 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange:
Costamare Inc (Symbol: CMRE) options are showing a volume of 4,274 contracts thus far today. That number of contracts represents approximately 427,400 underlying shares, working out to a sizeable 73.1% of CMRE's average daily trading volume over the past month, of 585,045 shares. Particularly high volume was seen for the $10 strike put option expiring February 17, 2023, with 2,094 contracts trading so far today, representing approximately 209,400 underlying shares of CMRE. Below is a chart showing CMRE's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Fisker Inc (Symbol: FSR) saw options trading volume of 45,664 contracts, representing approximately 4.6 million underlying shares or approximately 72.7% of FSR's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $6 strike put option expiring August 18, 2023, with 6,007 contracts trading so far today, representing approximately 600,700 underlying shares of FSR. Below is a chart showing FSR's trailing twelve month trading history, with the $6 strike highlighted in orange:
For the various different available expirations for AAPL options, CMRE options, or FSR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stock MACD
Funds Holding FIG
YCL shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $140 strike put option expiring February 17, 2023, with 29,585 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 546,972 contracts have traded so far, representing approximately 54.7 million underlying shares. That amounts to about 74.6% of AAPL's average daily trading volume over the past month of 73.3 million shares.
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Particularly high volume was seen for the $140 strike put option expiring February 17, 2023, with 29,585 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: Costamare Inc (Symbol: CMRE) options are showing a volume of 4,274 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 546,972 contracts have traded so far, representing approximately 54.7 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 546,972 contracts have traded so far, representing approximately 54.7 million underlying shares. Particularly high volume was seen for the $140 strike put option expiring February 17, 2023, with 29,585 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. That amounts to about 74.6% of AAPL's average daily trading volume over the past month of 73.3 million shares.
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Particularly high volume was seen for the $140 strike put option expiring February 17, 2023, with 29,585 contracts trading so far today, representing approximately 3.0 million underlying shares of AAPL. Below is a chart showing FSR's trailing twelve month trading history, with the $6 strike highlighted in orange: For the various different available expirations for AAPL options, CMRE options, or FSR options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 546,972 contracts have traded so far, representing approximately 54.7 million underlying shares.
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17371.0
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2023-01-30 00:00:00 UTC
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US STOCKS-Tech, megacaps drag Wall St lower at start of big market week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-tech-megacaps-drag-wall-st-lower-at-start-of-big-market-week
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nan
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nan
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By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian
NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes fell on Monday, dragged lower by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports.
The tech sector .SPLRCT slumped 1.7%, with most sectors trading lower. Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are all due to post results later this week, dropped over 1%.
More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data.
“The market has had a big run and the trading is a bit more cautious heading into a week which likely will be an inflection point for the overall market,” said Keith Lerner, co-chief investment officer at Truist Advisory Services.
The Dow Jones Industrial Average .DJI fell 125.11 points, or 0.37%, to 33,852.97, the S&P 500 .SPX lost 38.49 points, or 0.95%, to 4,032.07 and the Nasdaq Composite .IXIC dropped 184.56 points, or 1.59%, to 11,437.15.
U.S. Treasury yields rose, providing another pressure point for tech shares that have otherwise rebounded to start the year after a rough 2022.
Despite Monday's declines, the S&P 500 was on track to post its biggest January gain since 2019.
The U.S. central bank is seen hiking the Fed funds rate by 25 basis points at the end of its two-day policy meeting on Wednesday, following a 2022 in which the Fed aggressively hiked rates to control soaring inflation.
Fed Chair Jerome Powell's news conference will be scrutinized for signs of how high rates may go and how long they could stay elevated. Meanwhile, the European Central Bank is expected to deliver another large rate hike on Thursday.
Investors are also focused on earnings reports, amid concerns the economy may be facing a recession. With more than 140 companies having reported so far, S&P 500 earnings are expected to have fallen 3% in the fourth quarter compared with the prior-year period, according to Refinitiv IBES.
In company news, shares of Johnson & JohnsonJNJ.N fell over 3% after the healthcare giant's strategy to use bankruptcy to resolve the multibillion-dollar litigation over claims its talc products cause cancer was rejected by a federal appeals court.
Declining issues outnumbered advancing ones on the NYSE by a 1.81-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored decliners.
The S&P 500 posted five new 52-week highs and no new lows; the Nasdaq Composite recorded 51 new highs and 14 new lows.
(Reporting by Lewis Krauskopf in New York, and Shreyashi Sanyal and Johann M Cherian in Bengaluru Editing by Anil D'Silva and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are all due to post results later this week, dropped over 1%. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data. Fed Chair Jerome Powell's news conference will be scrutinized for signs of how high rates may go and how long they could stay elevated.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are all due to post results later this week, dropped over 1%. By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes fell on Monday, dragged lower by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are all due to post results later this week, dropped over 1%. By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes fell on Monday, dragged lower by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. The U.S. central bank is seen hiking the Fed funds rate by 25 basis points at the end of its two-day policy meeting on Wednesday, following a 2022 in which the Fed aggressively hiked rates to control soaring inflation.
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Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Google parent Alphabet Inc GOOGL.O, which are all due to post results later this week, dropped over 1%. By Lewis Krauskopf, Shreyashi Sanyal and Johann M Cherian NEW YORK, Jan 30 (Reuters) - Major U.S. stock indexes fell on Monday, dragged lower by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched U.S. employment data.
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2023-01-30 00:00:00 UTC
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GRAPHIC-Take Five: Goldilocks and the three bears
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https://www.nasdaq.com/articles/graphic-take-five%3A-goldilocks-and-the-three-bears
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Repeats Friday story with no changes to text
Jan 27 (Reuters) - Not too hot and not too cold. That's what investors are hoping for in terms of the economic outlook, as China recovers from COVID and as companies grapple with sticky inflation and increasingly cash-strapped consumers.
But the story three of the world's largest central banks, set to hold their first policy meetings of 2023, tell isn't that of a "Goldilocks" scenario of a gentle slowdown in growth and a gradual easing in inflation.
Here's a look at the week ahead in markets from Kevin Buckland in Tokyo, Dhara Ranasinghe and Naomi Rovnik in London and Ira Iosebashvili and Lewis Krauskopf in New York.
1/WILL THE FED FOLD?
Will the Federal Reserve tone down its hawkish rhetoric in the face of cooling inflation or stick to its guns? Investors widely expect a 25-basis point rate increase at the Feb. 1 meeting and for rates to stop short of hitting 5%.
Fed officials, however, have indicated they expect the key policy rate to top out at 5.00-5.25% this year.
Whatever signals the Fed sends could play an importing role in determining the longevity of the rally so far this year. Dollar bears, meanwhile, will watch for dovish leanings that could further accelerate a decline in the greenback. The currency has tumbled nearly 11% since hitting multi-decade highs last September.
2/ BACK FROM BREAK
Chinese markets are back from the week-long Lunar New Year holidays, and will look to pick up where they left off - at a five-month peak for mainland blue chips .CSI300.
The mood should stay bullish after officials said COVID deaths have dropped about 80% from the peak earlier this month, running counter to worries that the New Year travel rush would trigger a fresh wave of infections.
Some experts even suggest that the surge in cases after the government abruptly reversed its zero-COVID policies last month has resulted in hyper-speedy herd immunity.
The impact of China's Great Reopening may show up in PMIs next Tuesday, with the services sector bouncing back to expansion. Manufacturing is likely still contracting, but that has a lot to do with the timing of the New Year holiday, and next month should see a strong rebound.
3/ YOUR MOVE, ECB
The ECB meets Thursday and is widely tipped to raise rates by 50 bps to 2.5%. Markets care most about what happens next and that's not clear.
Policy hawks are already pushing for more of the same in March. After all, inflation is well above the 2% target as preliminary January data out on Wednesday is likely to show.
Futures price in a further 100 bps worth of tightening between now and July. Amundi reckons ECB rates could reach 4%.
But the doves are getting louder. Yes, inflation is high but it's off record peaks, they say. So, caution is needed before pre-commiting to rate hikes beyond February.
Markets, whipped around by the differing opinions, will be looking for the ECB to speak with one voice. That, at least, is the hope.
4/THE "A" TEAM
The three "A's" -- Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O - three of the top four U.S. companies by market value - all report earnings on Thursday.
Over 100 companies in the S&P 500 deliver results as the earnings season gets into full swing.
Microsoft, the fourth of the U.S. megacaps, has already reported results. Its cloud business hit Wall Street targets, but it delivered a lacklustre forecast that offered little cheer to the broader tech sector.
Tech companies generally are under pressure to grow while cutting costs ahead of a potential recession.
S&P 500 earnings are set to have fallen 2.9% from the year-ago period, according to Refinitiv IBES data as of Tuesday.
5/THE END MAY BE NIGH
The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
Money markets predict the BoE will raise rates by 0.5 percentage points to 4%. Headline inflation moderated in December to 10.5%, but it's still over five times the Bank's official target.
Deutsche Bank analysts say this will be the BoE's final "forceful" hike. Recent data has shown a sharp contraction in UK business activity and lacklustre Christmas retail sales.
Economists polled by Reuters now expect the BoE to stop at 4.25%. But many cited sticky core inflation, which excludes food and energy costs, as the main reason they could be wrong.
Summer peakhttps://tmsnrt.rs/3XZep0R
China's convalescent business activityhttps://tmsnrt.rs/3WNFUcU
ECB expected to hike againhttps://tmsnrt.rs/3Y1vp6r
Big tech's earnings growth put to the testhttps://tmsnrt.rs/3Rb7gbm
Inflation mixed baghttps://tmsnrt.rs/3XTo9d3
(Compiled by Amanda Cooper; Graphics by Sumanta Sen, Pasit Kongkunakornkul and Vincent Flasseur; Editing by Toby Chopra)
((amanda.cooper@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The three "A's" -- Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O - three of the top four U.S. companies by market value - all report earnings on Thursday. But the story three of the world's largest central banks, set to hold their first policy meetings of 2023, tell isn't that of a "Goldilocks" scenario of a gentle slowdown in growth and a gradual easing in inflation. The mood should stay bullish after officials said COVID deaths have dropped about 80% from the peak earlier this month, running counter to worries that the New Year travel rush would trigger a fresh wave of infections.
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The three "A's" -- Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O - three of the top four U.S. companies by market value - all report earnings on Thursday. Investors widely expect a 25-basis point rate increase at the Feb. 1 meeting and for rates to stop short of hitting 5%. The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
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The three "A's" -- Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O - three of the top four U.S. companies by market value - all report earnings on Thursday. Investors widely expect a 25-basis point rate increase at the Feb. 1 meeting and for rates to stop short of hitting 5%. The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
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The three "A's" -- Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O - three of the top four U.S. companies by market value - all report earnings on Thursday. Investors widely expect a 25-basis point rate increase at the Feb. 1 meeting and for rates to stop short of hitting 5%. Fed officials, however, have indicated they expect the key policy rate to top out at 5.00-5.25% this year.
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17373.0
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2023-01-30 00:00:00 UTC
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Amazon, Alphabet, Apple, Intel and Microsoft are part of Zacks Earnings Preview
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https://www.nasdaq.com/articles/amazon-alphabet-apple-intel-and-microsoft-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – January 30, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Intel INTC and Microsoft MSFT.
Will This Week's Big Tech Earnings Be a Train Wreck?
The market’s initial reaction to the Microsoft report was negative, which made sense given the sluggish top-line growth pace and weak guidance. But sentiment on the numbers shifted as market participants realized that Microsoft’s cloud numbers were hardly the ‘train wreck’ that many had started fearing ahead of the release.
Broadly speaking, the market’s favorable reaction to the Microsoft results is in the same spirit with which it has received all incoming results in the Q4 earnings season.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q4 earnings season as good enough; not great, but not bad either. With results from more than 28% of S&P 500 members already out, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears were warning us of.
The way we see it, the ‘better-than-feared’ view of the Q4 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We want to dwell on the Microsoft report a bit more given the read-through that its business provides us for broad trends in enterprise spending.
Microsoft’s business in the PC and ‘adjacent’ spaces validated the market’s ‘train wreck’ fears, with the view getting reconfirmed by another disappointing report from Intel. But Microsoft has been far less about PCs and far more about cloud (Azure), and results on that front are good enough.
Azure growth of +38%, in constant-currency terms, beat consensus estimates by a hair. Management pointed to a notable deceleration as the quarter unfolded, with the growth pace in December 2022 in the mid-30’s percentage range and they guided towards a bit lower growth pace for the March quarter.
These Azure trends are hardly abstract for the market, as they provide the set up for this week’s Amazon and Alphabet results. Microsoft’s Azure is generally seen as the runner up to Amazon Web Services, with Alphabet’s cloud offering as third in place. In addition to Alphabet and Amazon, we also have Apple on the docket reporting results this week.
The chart below shows the one-year stock market performance of the Zacks Technology sector (the red line; down -18.8%), Apple (green line; -14.8%), Microsoft (blue line; -19.7%), Alphabet (purple line; -26.1%), Amazon (-29.5) and Meta (-49.9%).
The S&P 500 index, which we deliberately kept out of the above chart to reduce clutter in the visual, was down only -9.7% in the period.
These businesses aren’t exactly comparable, though digital advertising is core for Alphabet and Meta and to a smaller extent for Amazon. As noted earlier, Amazon is a leader in both the cloud as well as retail spaces, with the latter business facing capacity issues lately. And then there is Apple, which is in a league of its own.
Take a look at the chart below that shows current consensus expectations for this group for the current and coming periods in the context of what they were able to achieve in the preceding period.
We have highlighted the expected -11.7% earnings decline on +9.2% higher revenues for this group of 5 Tech leaders in 2022 Q2.
Revenue growth is expected to remain in positive territory, with cost pressures weighing on earnings expectations. Needless to add that these Tech leaders are faced with compressed margins.
Whether the growth trend for these companies is decelerating or not is a function of your holding horizon. These companies are impressive growth engines in the long run, even if those estimates for 2023 and 2024 come down in the days ahead.
As the macroeconomic clouds clear, as they eventually will, these digital platforms will be there to recapture those spending dollars.
Beyond the big 5 Tech players, total Q4 earnings for the Technology sector as a whole are expected to be down -18.5% from the same period last year on -2.6% lower revenues.
2022 Q4 Earnings Season Scorecard
As of Friday, January 27th, we now have Q4 results from 143 S&P 500 members or 28.6% of the index’s total membership. Total earnings for these 143 index members are down -3.3% from the same period last year on +6.1% higher revenues, with 71.3% beating EPS estimates and 67.1% beating revenue estimates.
With 108 index members on deck to report Q4 results this week, we will have seen results from one-half of all the index members by the end of the week.
The Earnings Big Picture
Estimates for 2023 have been steadily coming down, as we have been flagging for some time now. The $1.941 trillion in expected aggregate earnings for the index in 2023 approximates to an index ‘EPS’ of $218.56, which compares to $216.89 in 2022.
From their peak in mid-April 2022, S&P 500 earnings estimates have been revised down by -10.8% for the index as a whole and by -12.92% on an ex-Energy basis, with much bigger cuts to estimates for the Construction, Consumer Discretionary, Retail, Tech and Aerospace sectors.
For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Digging Into the Early Q4 Earnings Scorecard
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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 week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Intel INTC and Microsoft MSFT. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The market’s initial reaction to the Microsoft report was negative, which made sense given the sluggish top-line growth pace and weak guidance.
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This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Intel INTC and Microsoft MSFT. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the one-year stock market performance of the Zacks Technology sector (the red line; down -18.8%), Apple (green line; -14.8%), Microsoft (blue line; -19.7%), Alphabet (purple line; -26.1%), Amazon (-29.5) and Meta (-49.9%).
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Intel INTC and Microsoft MSFT. The chart below shows the one-year stock market performance of the Zacks Technology sector (the red line; down -18.8%), Apple (green line; -14.8%), Microsoft (blue line; -19.7%), Alphabet (purple line; -26.1%), Amazon (-29.5) and Meta (-49.9%).
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This week’s list includes Amazon AMZN, Alphabet GOOGL, Apple AAPL, Intel INTC and Microsoft MSFT. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to Alphabet and Amazon, we also have Apple on the docket reporting results this week.
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2023-01-30 00:00:00 UTC
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InterDigital Raises Its Earnings Guidance
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https://www.nasdaq.com/articles/interdigital-raises-its-earnings-guidance
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Mobile and video technology development company InterDigital Inc. (NASDAQ: IDCC) stock has been on a four-week surge since breaking out of its weekly rectangle trading range. A series of events has led shares to skyrocket since the beginning of 2023 as it approaches its 52-week highs.
The Company focuses its research on wireless communications, standards, data transfers, and cellular technology, building up a treasure trove of patents and IPs. The Company is also partaking in the EU's five Horizon Europe 6G flagship research projects.
Big Patent Licensing Portfolio
InterDigital licenses its patents to major tech firms for use in its products. It also performs R&D for clients as well as consulting services. The Company licenses its patents to technology giants, including Intel Co. (NASDAQ: INTC), Qualcomm Technologies Inc. (NASDAQ: QCOM), Sony, NEC, Huawei, ZTE, Samsung Electronics Co. (OTCMKTS: SSNLF), and Nokia Oyj (NYSE: NOK). The Company recently renewed its license agreements with Apple Inc. (NASDAQ: AAPL) through 2029.
They were previously embroiled in a patent infringement case concerning iPhones and iPads, which was settled with a licensing agreement.
Bottom Line Beat with Top Line Shrinkage
InterDigital reported its fiscal Q3 2022 earnings for the quarter ending in September 2022 on Nov. 3, 2022. The Company reported earnings-per-share (EPS) of $0.74, beating consensus analyst estimates of $0.59 by $0.15. Revenues fell (-20%) year-over-year (YoY) to $114.8 million, beating consensus analyst estimates for $113.51 million.
InterDigital CEO Liren Chen commented, “We significantly strengthened our business by renewing our license with Apple through 2029. In addition, new agreements drove our sixth consecutive quarter of recurring revenue growth in the consumer electronics and IoT/automotive markets.
Altogether, we have signed sixteen agreements over the last eighteen months with a total estimated contract value of more than $1.5 billion.
I look forward to building on this foundation as we pursue significant growth opportunities in licensing both devices and services.”
Q4 2022 Revenue Estimate
InterDigital expects recurring revenues for Q4 2022 between $98 million to $112 million. This estimate is based on existing contracts which include the renewal with Apple. It doesn't consider any new contracts they may sign during the balance of the fourth quarter.
Eventual January 2023
InterDigital started off the new year with several material news items. On Jan. 3, 2023, InterDigital renewed two patent licenses with Panasonic Entertainment & Communications covering its DTV and HEVC patents. It also signed a VVC and HEVC patent license with LG Electronics covering LG products from PCs to televisions. It also boosted its stock buyback program to $400 million.
Re-raised Q4 Guidance
On Jan. 19, 2023, InterDigital issued upside guidance for Q4 2022 EPS of $0.93 versus $0.74 consensus analyst estimates. It sees Q4 2022 revenues of $114 million versus $102.55 million analyst estimates. The raised guidance was primarily due to new contracts being signed in the fourth quarter. Net non-operating income will be around $1 million versus the previous expectation of non-operating expenses between $4 million to $6 million due to higher interest income and FX gains.
Dutch Auction Tender Offer
On Jan. 23, 2023, InterDigital announced a Dutch auction tender offer to buy back up to $200 million of stock between $60 to $69 per share from shareholders, which expires Feb. 17, 2023. A Dutch auction tender is when the Company offers to buy back shares from its shareholders within a specified price range.
Shareholders decide how many shares they wish to sell and at what price back to the Company. The Company will then decide the highest price it's willing to pay for those shares, at which point all shareholders who priced their shares at or below that price will have their shares purchased at that price.
This tender offer is also referred to as a reverse auction since the Company starts at a high price and gradually lowers it until it achieves the number of shares it set out to acquire. InterDigital plans to purchase between 2.9 million to 3.3 million shares, or roughly 9.8% to 11.2% of outstanding shares.
Weekly Rectangle Breakout
IDCC shares triggered a market structure high (MSH) breakdown after peaking at $66.75 in June 2022. The MSH triggered in August 2022, resulting in nine consecutive weeks of selling as it peaked at $40.23 in September 2022. IDCC staged a rally as the weekly market structure low (MSL) triggered the breakout through $49.19.
But shares got caught in a weekly rectangle trading range between $51.24 and $43.87 from October through December 2022 before finally breaking out in January 2023 for four straight weeks as shares near their 52-week highs. The weekly stochastic made its oscillation up from the 10-band through the 90-band.
The weekly 20-period exponential moving average (EMA) rises to $54.57 to cross the 50-period MA at $56.60. Shares are overbought on the weekly chart, so it's prudent to watch for pullbacks to support at $59.13 weekly MSH trigger, $54.85, $52.13, and $49.19 weekly MSL trigger.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Company recently renewed its license agreements with Apple Inc. (NASDAQ: AAPL) through 2029. Mobile and video technology development company InterDigital Inc. (NASDAQ: IDCC) stock has been on a four-week surge since breaking out of its weekly rectangle trading range. The Company focuses its research on wireless communications, standards, data transfers, and cellular technology, building up a treasure trove of patents and IPs.
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The Company recently renewed its license agreements with Apple Inc. (NASDAQ: AAPL) through 2029. I look forward to building on this foundation as we pursue significant growth opportunities in licensing both devices and services.” Q4 2022 Revenue Estimate InterDigital expects recurring revenues for Q4 2022 between $98 million to $112 million. Dutch Auction Tender Offer On Jan. 23, 2023, InterDigital announced a Dutch auction tender offer to buy back up to $200 million of stock between $60 to $69 per share from shareholders, which expires Feb. 17, 2023.
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The Company recently renewed its license agreements with Apple Inc. (NASDAQ: AAPL) through 2029. I look forward to building on this foundation as we pursue significant growth opportunities in licensing both devices and services.” Q4 2022 Revenue Estimate InterDigital expects recurring revenues for Q4 2022 between $98 million to $112 million. The Company will then decide the highest price it's willing to pay for those shares, at which point all shareholders who priced their shares at or below that price will have their shares purchased at that price.
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The Company recently renewed its license agreements with Apple Inc. (NASDAQ: AAPL) through 2029. I look forward to building on this foundation as we pursue significant growth opportunities in licensing both devices and services.” Q4 2022 Revenue Estimate InterDigital expects recurring revenues for Q4 2022 between $98 million to $112 million. On Jan. 3, 2023, InterDigital renewed two patent licenses with Panasonic Entertainment & Communications covering its DTV and HEVC patents.
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2023-01-30 00:00:00 UTC
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Why Apple Is Poised For A Tough Holiday Quarter
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AAPL
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https://www.nasdaq.com/articles/why-apple-is-poised-for-a-tough-holiday-quarter
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Apple (NASDAQ:AAPL) is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones. We estimate that Apple’s revenue will come in at about $123 billion for the quarter, marginally ahead of consensus estimates, although this would mark a slight year-over-year decline. We estimate that earnings will stand at close to $1.99 per share, compared to a consensus of $1.97 per share. So what are some of the trends that are likely to drive Apple’s results? See our interactive dashboard analysis on Apple Earnings Preview for more details on how Apple’s revenues and earnings are likely to trend for the quarter.
Sales of Apple’s new iPhone 14 are likely to be the biggest driver of the company’s Q1 results. However, the more popular iPhone Pro models witnessed shortages through the holidays due to Covid-19-related issues in China and protests at contract manufacturer Foxconn’s factory in Zhengzhou. Demand for Apple’s Mac and iPads is also likely to have cooled versus last year, as the remote working and learning trend seen through the Covid-19 pandemic eases. However, Apple’s focus on pricier devices such as the iPad Pros, and upgraded Macbook Air, could help to offset the demand headwinds to an extent. We will be closely watching the performance of Apple’s services business over the quarter. Services sales have cooled off considerably in recent quarters. Over Q4 FY’22, the division grew by just 5%, compared to double-digit levels in previous quarters, and also below overall Apple Revenue growth which stood at 8% last quarter. This is concerning, given that services are very lucrative, with segment gross margins standing at over 70%.
At the current market price of $136 per share, Apple stock trades at just over 22x forward earnings, which we believe is reasonable given the company’s earnings growth prospects, and solid balance sheet. Apple should also handle a potential economic downturn better than its tech peers given its ecosystem lock-in, the high desirability of its products, and the ability to upsell to existing customers. We continue to remain bullish on Apple stock, with a $166 price estimate which is about 24% ahead of the current market price. See our analysis of Apple Valuation for more details on what’s driving our price estimate for Apple and how it compares with peers.
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 Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return 9% 9% 387%
S&P 500 Return 5% 5% 80%
Trefis Multi-Strategy Portfolio 10% 10% 245%
[1] Month-to-date and year-to-date as of 1/23/2023
[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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Apple (NASDAQ:AAPL) is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones. Total [2] AAPL Return 9% 9% 387% S&P 500 Return 5% 5% 80% Trefis Multi-Strategy Portfolio 10% 10% 245% [1] Month-to-date and year-to-date as of 1/23/2023 [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. However, the more popular iPhone Pro models witnessed shortages through the holidays due to Covid-19-related issues in China and protests at contract manufacturer Foxconn’s factory in Zhengzhou.
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Total [2] AAPL Return 9% 9% 387% S&P 500 Return 5% 5% 80% Trefis Multi-Strategy Portfolio 10% 10% 245% [1] Month-to-date and year-to-date as of 1/23/2023 [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. Apple (NASDAQ:AAPL) is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones. At the current market price of $136 per share, Apple stock trades at just over 22x forward earnings, which we believe is reasonable given the company’s earnings growth prospects, and solid balance sheet.
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Total [2] AAPL Return 9% 9% 387% S&P 500 Return 5% 5% 80% Trefis Multi-Strategy Portfolio 10% 10% 245% [1] Month-to-date and year-to-date as of 1/23/2023 [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. Apple (NASDAQ:AAPL) is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones. See our interactive dashboard analysis on Apple Earnings Preview for more details on how Apple’s revenues and earnings are likely to trend for the quarter.
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Total [2] AAPL Return 9% 9% 387% S&P 500 Return 5% 5% 80% Trefis Multi-Strategy Portfolio 10% 10% 245% [1] Month-to-date and year-to-date as of 1/23/2023 [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. Apple (NASDAQ:AAPL) is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones. We estimate that earnings will stand at close to $1.99 per share, compared to a consensus of $1.97 per share.
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17376.0
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2023-01-30 00:00:00 UTC
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Japan's Nikkei tracks Wall Street gains to end at over 1-month high
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AAPL
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https://www.nasdaq.com/articles/japans-nikkei-tracks-wall-street-gains-to-end-at-over-1-month-high
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nan
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nan
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TOKYO, Jan 30 (Reuters) - Japan's Nikkei index ended at a more than one-month high on Monday, tracking Wall Street gains in the last session, although the gains were capped by caution ahead of the U.S. Federal Reserve's meeting and domestic corporate earnings announcements.
The Nikkei share average .N225 gained 0.19% to close at 27,433.40, its highest close since Dec. 16, after briefly slipping in the negative territory. The broader Topix .TOPX was marginally down 0.01% at 1,982.40.
The week is filled with market-moving events, so investors are being more cautious, said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
"I am unsure if this (upbeat) momentum will continue this week. Investors are cautious and could sell stocks to book profits ahead of the Fed meeting, U.S. employment data as well as domestic corporate results."
Wall Street rose on Friday, marking the end of a rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of the U.S. Federal Open Market Committee this week. .N
A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others.
Investors are also reacting to Japan's corporate outlook, as the earnings season reaches its peak this week.
Fanuc 6954.T jumped 3.58% after the robot maker raised its annual operating profit outlook and announced a 5-for-1 stock split.
Shin-Etsu Chemical 4063.T, up 5.08%, posted a fourth straight session of gains as the silicon wafter maker raised its annual operating profit outlook.
Japanese semiconductor equipment makers showed muted reaction to news that Washington had made progress towards a deal to curb exports of some advanced chip-making equipment to China with several governments.
Tokyo Electron 8035.T rose 0.68% and Advantest 6857.T lost 0.32%, while Nikon 7731.T inched up 0.16%.
(Reporting by Junko Fujita; editing by Uttaresh.V and Rashmi Aich)
((junko.fujita@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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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. The week is filled with market-moving events, so investors are being more cautious, said Shigetoshi Kamada, general manager at the research department at Tachibana Securities. Investors are cautious and could sell stocks to book profits ahead of the Fed meeting, U.S. employment data as well as domestic corporate results."
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index ended at a more than one-month high on Monday, tracking Wall Street gains in the last session, although the gains were capped by caution ahead of the U.S. Federal Reserve's meeting and domestic corporate earnings announcements. Fanuc 6954.T jumped 3.58% after the robot maker raised its annual operating profit outlook and announced a 5-for-1 stock split.
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index ended at a more than one-month high on Monday, tracking Wall Street gains in the last session, although the gains were capped by caution ahead of the U.S. Federal Reserve's meeting and domestic corporate earnings announcements. Wall Street rose on Friday, marking the end of a rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of the U.S. Federal Open Market Committee this week.
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index ended at a more than one-month high on Monday, tracking Wall Street gains in the last session, although the gains were capped by caution ahead of the U.S. Federal Reserve's meeting and domestic corporate earnings announcements. The Nikkei share average .N225 gained 0.19% to close at 27,433.40, its highest close since Dec. 16, after briefly slipping in the negative territory.
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17377.0
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2023-01-30 00:00:00 UTC
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UK video streaming market shows signs of recovery in last quarter of 2022
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AAPL
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https://www.nasdaq.com/articles/uk-video-streaming-market-shows-signs-of-recovery-in-last-quarter-of-2022
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nan
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nan
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LONDON, Jan 30 (Reuters) - The UK video streaming market showed a tentative recovery in the final quarter of 2022, with subscriber numbers edging higher after a sharp decline earlier in the year when cash-strapped households sought savings, industry data showed on Monday.
Market researcher Kantar said that between October and December the number of UK homes that had at least one paid-for video streaming service rose by 55,000 to 16.24 million, representing 56% of households.
Kantar said 5% of British households took out a new streaming subscription during the final quarter of the year.
The recovery followed a period of 12 months when one million British households dropped out of the subscription video-on-demand market, as they prioritised spending on essentials, such as food and energy.
“Prime Video had a strong final quarter of the year, with an increasing number of households taking out Prime memberships and using the Prime delivery service in the run-up to the Christmas holidays," Dominic Sunnebo, global insight director, Kantar, Worldpanel Division, said.
However, the recovery may be short lived, Kantar added.
The proportion of consumers planning to cancel one or more video-on-demand services in the next quarter rose to 12% versus 10% in the third quarter of 2022, it said, indicating that short-term subscribers looking to cover the festive period could soon cut back.
Getting an accurate gauge of the UK economy is currently proving tricky.
Official UK retail sales data showed inflation-pinched consumers cut their shopping by the most in the key month of December in at least 25 years and consumer confidence levels are at historic lows.
However, several major British retailers, including Tesco TSCO.L, Sainsbury's SBRY.L and Marks & Spencer MKS.L, reported better-than-expected Christmas sales, while airlines have reported strong bookings into summer.
Also, unemployment is close to its lowest in almost 50 years.
(Reporting by James Davey; editing by Clelia Oziel)
((james.davey@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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LONDON, Jan 30 (Reuters) - The UK video streaming market showed a tentative recovery in the final quarter of 2022, with subscriber numbers edging higher after a sharp decline earlier in the year when cash-strapped households sought savings, industry data showed on Monday. Market researcher Kantar said that between October and December the number of UK homes that had at least one paid-for video streaming service rose by 55,000 to 16.24 million, representing 56% of households. The recovery followed a period of 12 months when one million British households dropped out of the subscription video-on-demand market, as they prioritised spending on essentials, such as food and energy.
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LONDON, Jan 30 (Reuters) - The UK video streaming market showed a tentative recovery in the final quarter of 2022, with subscriber numbers edging higher after a sharp decline earlier in the year when cash-strapped households sought savings, industry data showed on Monday. “Prime Video had a strong final quarter of the year, with an increasing number of households taking out Prime memberships and using the Prime delivery service in the run-up to the Christmas holidays," Dominic Sunnebo, global insight director, Kantar, Worldpanel Division, said. Official UK retail sales data showed inflation-pinched consumers cut their shopping by the most in the key month of December in at least 25 years and consumer confidence levels are at historic lows.
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LONDON, Jan 30 (Reuters) - The UK video streaming market showed a tentative recovery in the final quarter of 2022, with subscriber numbers edging higher after a sharp decline earlier in the year when cash-strapped households sought savings, industry data showed on Monday. Market researcher Kantar said that between October and December the number of UK homes that had at least one paid-for video streaming service rose by 55,000 to 16.24 million, representing 56% of households. “Prime Video had a strong final quarter of the year, with an increasing number of households taking out Prime memberships and using the Prime delivery service in the run-up to the Christmas holidays," Dominic Sunnebo, global insight director, Kantar, Worldpanel Division, said.
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LONDON, Jan 30 (Reuters) - The UK video streaming market showed a tentative recovery in the final quarter of 2022, with subscriber numbers edging higher after a sharp decline earlier in the year when cash-strapped households sought savings, industry data showed on Monday. Kantar said 5% of British households took out a new streaming subscription during the final quarter of the year. The recovery followed a period of 12 months when one million British households dropped out of the subscription video-on-demand market, as they prioritised spending on essentials, such as food and energy.
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17378.0
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2023-01-30 00:00:00 UTC
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GLOBAL MARKETS-Shares shaky as rate-hike week looms
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-shaky-as-rate-hike-week-looms
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nan
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nan
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By Wayne Cole and Lawrence White
SYDNEY/LONDON, Jan 30 (Reuters) - Shares slipped on Monday at the start of an agenda-setting week for markets in which likely interest rate hikes in Europe and the United States, as well as U.S. jobs and wage data will give markets a fresh update on the battle against inflation.
Investors expect the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
Earnings from tech giants will also test the mettle of Wall Street bulls, who are looking to propel the Nasdaq to its best January since 2001.
Europe's benchmark STOXX index fell 0.5% on Monday morning, echoing a slight dip in MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which has surged 11% in January so far as China's reopening bolsters its economy.
Meanwhile, U.S. stocks were set to follow the nervous Monday mood with S&P 500 futures ESc1 and Nasdaq futures NQc1 down nearly 1%, as investors await guidance later in the week on the Federal Reserve's policy.
Analysts expect a hawkish tone suggesting that more needs to be done to tame inflation.
"With U.S. labour markets still tight, core inflation elevated and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
"We also look for him to continue to push back against market pricing of rate cuts later this year."
There is a lot of pushing to do given futures 0#FF: currently expect rates to peak at 5% in March, only to fall back to 4.5% by year end. FEDWATCH
The dollar index =USD was flat ahead of the data, on course for a fourth straight monthly loss of more than 1.5% on growing expectations that the Fed is nearing the end of its rate-hike cycle.
APPLE'S CORE
Yields on 10-year notes US10YT=RR have fallen 33 basis points so far this month to 3.50%, essentially due to easing financial conditions even as the Fed talks tough on tightening.
That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys.
Reading on EU inflation could be important for whether the ECB signals a half-point rate rise for March, or opens the door to a slowdown in the pace of tightening.
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others.
"Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
"Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added. "Apple will likely cut some costs around the edges, but we do not expect mass layoffs."
Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.6% =USD so far this month to stand at 101.790 against a basket of major currencies.
The euro is up 1.5% for January at $1.0878 EUR=EBS and just off a nine-month top. The dollar has even lost 1.3% on the yen to 129.27 JPY=EBS despite the Bank of Japan's dogged defence of its ultra-easy policies.
The drop in the dollar and yields has been a boon for gold, which is up 5.8% for the month so far at $1,930 an ounce XAU=. GOL/
The precious metal was flat on Monday ahead of the slew of key central bank moves and data releases.
China's rapid reopening is seen as a windfall for commodities in general, supporting everything from copper to iron ore to oil prices. O/R
The oil market was hesitant amid concerns the likely Fed rate hikes could choke fuel demand, with Brent LCOc1 down nearly 1% $85.88 a barrel, while U.S. crude CLc1 eased 87 cents to $78.8.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole and Lawrence White; Editing by Christopher Cushing and Arun Koyyur)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. "With U.S. labour markets still tight, core inflation elevated and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March. "Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Wayne Cole and Lawrence White SYDNEY/LONDON, Jan 30 (Reuters) - Shares slipped on Monday at the start of an agenda-setting week for markets in which likely interest rate hikes in Europe and the United States, as well as U.S. jobs and wage data will give markets a fresh update on the battle against inflation. Investors expect the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Wayne Cole and Lawrence White SYDNEY/LONDON, Jan 30 (Reuters) - Shares slipped on Monday at the start of an agenda-setting week for markets in which likely interest rate hikes in Europe and the United States, as well as U.S. jobs and wage data will give markets a fresh update on the battle against inflation. Investors expect the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Investors expect the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock. Yields on 10-year notes US10YT=RR have fallen 33 basis points so far this month to 3.50%, essentially due to easing financial conditions even as the Fed talks tough on tightening.
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17379.0
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2023-01-30 00:00:00 UTC
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Apple's India supplier Jabil making AirPods parts for export-Bloomberg
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AAPL
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https://www.nasdaq.com/articles/apples-india-supplier-jabil-making-airpods-parts-for-export-bloomberg
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nan
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nan
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Repeats with no changes to text
Jan 29 (Reuters) - Apple-supplier Jabil Inc's JBL.N India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter.
Apple Inc AAPL.O and Jabil did not immediately respond to a Reuters request for comment.
The move marks another step in Apple's plans to shift its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.
The iPhone maker wants India to account for up to 25% of its production, from about 5%-7% now.
Apple has bet big on India since it began iPhone assembly in the country in 2017, in line with the Indian government's push for local manufacturing.
(Reporting by Siddharth Jindal in Bengaluru; Editing by Savio D'Souza)
((Siddharth.Jindal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Jabil did not immediately respond to a Reuters request for comment. Repeats with no changes to text Jan 29 (Reuters) - Apple-supplier Jabil Inc's JBL.N India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter. The move marks another step in Apple's plans to shift its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.
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Apple Inc AAPL.O and Jabil did not immediately respond to a Reuters request for comment. Repeats with no changes to text Jan 29 (Reuters) - Apple-supplier Jabil Inc's JBL.N India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter. (Reporting by Siddharth Jindal in Bengaluru; Editing by Savio D'Souza) ((Siddharth.Jindal@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Jabil did not immediately respond to a Reuters request for comment. Repeats with no changes to text Jan 29 (Reuters) - Apple-supplier Jabil Inc's JBL.N India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter. The move marks another step in Apple's plans to shift its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.
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Apple Inc AAPL.O and Jabil did not immediately respond to a Reuters request for comment. Repeats with no changes to text Jan 29 (Reuters) - Apple-supplier Jabil Inc's JBL.N India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter. The move marks another step in Apple's plans to shift its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.
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17380.0
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2023-01-30 00:00:00 UTC
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Nearly 43% of Warren Buffett's Portfolio Is Invested in These 5 Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/nearly-43-of-warren-buffetts-portfolio-is-invested-in-these-5-tech-stocks
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nan
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nan
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Bigfoot exists. Spring will arrive early if the groundhog doesn't see its shadow on Feb. 2. Warren Buffett doesn't like tech stocks.
At least one of the three previous statements is irrefutably a myth. Buffett doesn't have the aversion to tech stocks that some people think he has. How can we know this for certain? Nearly 43% of Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio is invested in these five tech stocks.
1. Apple
Apple (NASDAQ: AAPL) dispels the myth about Buffett and tech stocks all by itself. It's by far Berkshire Hathaway's largest equity holding. Including shares owned by Berkshire subsidiary New England Asset Management, Apple makes up 38.4% of Berkshire's total portfolio.
Don't be surprised if that stake grows larger. Buffett bought more Apple shares in the first half of 2022 when the stock was priced higher than it is now. It's almost certainly one of the stocks he's buying this year.
2. Taiwan Semiconductor Manufacturing
Buffett bought a boatload of shares of a chip giant last year. Until the third quarter of 2022, Berkshire didn't have a position at all in Taiwan Semiconductor Manufacturing (NYSE: TSM). Today, it makes up 1.6% of Berkshire's portfolio. That ranks Taiwan Semi as the conglomerate's ninth-largest holding.
Strong moats have always been attractive to Buffett. Taiwan Semi certainly has one. The company makes most of the world's advanced chips, with a who's who list of customers including Apple.
3. Activision Blizzard
Playing bridge is more up Buffett's alley than playing Call of Duty. But that hasn't stopped the legendary investor from buying a major video game stock. Activision Blizzard (NASDAQ: ATVI) makes up 1.3% of Berkshire's portfolio, putting the stock just outside Berkshire's top 10 holdings.
Berkshire initiated its position in Activision Blizzard before Microsoft announced plans to acquire the game developer. That deal appears to be on thin ice now, though, with government regulators threatening to block the takeover.
4. HP
HP (NYSE: HPQ) ranks just behind Activision Blizzard as Berkshire's twelfth-largest holding. The computer and printing solutions giant comprises 1% of Berkshire's total portfolio.
That percentage includes shares owned by New England Asset Management. The Berkshire subsidiary appears to be especially bullish about HP, with the stock making up nearly 7% of its investment portfolio.
5. Verisign
Only one other tech stock cracks Berkshire's top 20. The conglomerate owns over 12.8 million shares of Verisign (NASDAQ: VRSN). The provider of domain name registry services and internet infrastructure makes up 0.8% of Berkshire's total portfolio and ranks No. 17 among its largest holdings.
As mentioned earlier, Buffett likes strong moats. He no doubt loves Verisign's business. The company is the exclusive internet registry for all .com, .net, and .name domain names and provides registry services for other popular domain names as well. Verisign also operates two of the world's 13 internet root servers.
Should these stocks make up a big chunk of your portfolio?
Just because Buffett owns these five tech stocks doesn't mean that every investor should. Your investing objectives could be quite different from his. That being said, there's something to like about each of these stocks.
Apple's iPhone ecosystem seems unstoppable. The company should have solid growth prospects as it expands into augmented reality and virtual reality.
The demand for chips, although volatile, should rise steadily over the long run. That should bode well for Taiwan Semi's fortunes.
Activision Blizzard could be in for choppy waters with regulatory objections to Microsoft's acquisition. However, the video game market should grow nicely over the next decade and beyond.
Investors who love reliable cash flow should continue to like Verisign. Income investors will no doubt like HP's dividend yield of nearly 3.7%.
The bottom line is that any of these stocks could be good picks, depending on your specific investing goals. Make your own decision -- maybe as you're searching for Bigfoot and waiting for the groundhog to see its shadow.
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Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, HP, Taiwan Semiconductor Manufacturing, and VeriSign. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, 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) dispels the myth about Buffett and tech stocks all by itself. Berkshire initiated its position in Activision Blizzard before Microsoft announced plans to acquire the game developer. The provider of domain name registry services and internet infrastructure makes up 0.8% of Berkshire's total portfolio and ranks No.
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Apple Apple (NASDAQ: AAPL) dispels the myth about Buffett and tech stocks all by itself. Including shares owned by Berkshire subsidiary New England Asset Management, Apple makes up 38.4% of Berkshire's total portfolio. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, HP, Taiwan Semiconductor Manufacturing, and VeriSign.
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Apple Apple (NASDAQ: AAPL) dispels the myth about Buffett and tech stocks all by itself. Activision Blizzard (NASDAQ: ATVI) makes up 1.3% of Berkshire's portfolio, putting the stock just outside Berkshire's top 10 holdings. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Keith Speights has positions in Apple and Berkshire Hathaway.
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Apple Apple (NASDAQ: AAPL) dispels the myth about Buffett and tech stocks all by itself. Activision Blizzard (NASDAQ: ATVI) makes up 1.3% of Berkshire's portfolio, putting the stock just outside Berkshire's top 10 holdings. Just because Buffett owns these five tech stocks doesn't mean that every investor should.
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17381.0
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2023-01-30 00:00:00 UTC
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GLOBAL MARKETS-Shares and bonds nervy as rate-hike week looms
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-and-bonds-nervy-as-rate-hike-week-looms
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By Lawrence White
LONDON, Jan 30 (Reuters) - Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation.
Investors expect the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
Europe's benchmark STOXX index fell 0.8% on Monday morning, echoing a slight dip in MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which has surged 11% in January so far as China's reopening bolsters sentiment.
The U.S. Nasdaq index is likewise on course for its best January since 2001, a rally that will be tested by earnings updates from tech giants this week.
U.S. stocks were set to follow the nervous Monday mood with S&P 500 futures ESc1 down 1% and Nasdaq futures NQc1falling 1.3%, as investors await guidance later in the week on the Federal Reserve's policy.
Analysts expect a hawkish tone suggesting that more needs to be done to tame inflation.
"With U.S. labour markets still tight, core inflation elevated and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
"We also look for him to continue to push back against market pricing of rate cuts later this year."
There is a lot of pushing to do given futures 0#FF: currently expect rates to peak at 5% in March and to fall back to 4.5% by year end. FEDWATCH
Europe offered a brisk reminder that the fight against rising prices is far from over, as bond yields in the region rose sharply on Monday in the wake of stronger-than-expected Spanish inflation data.
The data showing inflation rose 5.8% year-on-year in January, against expectations of 4.7%, pushed up the zone's benchmark German 10-year government bond yield DE10YT=RR 7 basis points (bps) to 2.3190%, its highest since Jan. 10.
Italian and Spanish yields also inched up.
The dollar index =USD was flat ahead of the week's key data, on course for a fourth straight monthly loss of more than 1.5% on growing expectations that the Fed is nearing the end of its rate-hike cycle.
APPLE'S CORE
Yields on 10-year notes US10YT=RR have fallen 33 basis points so far this month to 3.50%, essentially due to easing financial conditions even as the Fed talks tough on tightening.
That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys.
Reading on EU inflation could be important for whether the ECB signals a half-point rate rise for March, or opens the door to a slowdown in the pace of tightening.
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others.
"Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
"Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added. "Apple will likely cut some costs around the edges, but we do not expect mass layoffs."
Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.6% =USD so far this month to stand at 101.85 against a basket of major currencies.
The euro is up 1.5% for January at $1.0878 EUR=EBS and just off a nine-month top. The dollar has even lost 1.3% on the yen to 129.27 JPY=EBS despite the Bank of Japan's dogged defence of its ultra-easy policies.
The drop in the dollar and yields has been a boon for gold, which is up 5.8% for the month so far at $1,930 an ounce XAU=. GOL/
The precious metal was flat on Monday ahead of the slew of key central bank moves and data releases.
China's rapid reopening is seen as a windfall for commodities in general, supporting everything from copper to iron ore to oil prices. O/R
Oil steadied on Monday after earlier losses, with prices bolstered by rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
Brent crude LCOc1 rose 10 cents, or 0.12%, to $86.76 a barrel by 1200 GMT while U.S. West Texas Intermediate crude CLc1 added 4 cents, or 0.05%, to $79.72.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting Lawrence White and Wayne Cole; Editing by Christopher Cushing, Arun Koyyur and Christina Fincher)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Lawrence White LONDON, Jan 30 (Reuters) - Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation. "With U.S. labour markets still tight, core inflation elevated and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Lawrence White LONDON, Jan 30 (Reuters) - Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation. The data showing inflation rose 5.8% year-on-year in January, against expectations of 4.7%, pushed up the zone's benchmark German 10-year government bond yield DE10YT=RR 7 basis points (bps) to 2.3190%, its highest since Jan. 10.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Lawrence White LONDON, Jan 30 (Reuters) - Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation. "With U.S. labour markets still tight, core inflation elevated and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Lawrence White LONDON, Jan 30 (Reuters) - Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation. The U.S. Nasdaq index is likewise on course for its best January since 2001, a rally that will be tested by earnings updates from tech giants this week.
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17382.0
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2023-01-30 00:00:00 UTC
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MORNING BID-This might hurt
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AAPL
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https://www.nasdaq.com/articles/morning-bid-this-might-hurt
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A look at the day ahead in markets from Amanda Cooper, Europe breaking news editor.
This week promises to be one of the most action-packed in a while. Three of the world's most influential central banks are likely to raise rates to their highest since the financial crisis, while Q4 earnings season is starting to gather pace.
Big Tech royalty in the form of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O deliver earnings. With the tech sector bleeding profitability and jobs, whatever these three say on that front could carry almost as much weight as whatever the Federal Reserve says when it pronounces on the economic outlook on Wednesday.
With 109 of the S&P's 500 components .SPX set to report in the coming five days alone, investors are going to get a non-stop barrage of hot takes on anything from inflation to the impact of the gyrations of the dollar, to China and beyond.
The euphoria that marked the end of 2022, fed by China dismantling its COVID restrictions and more benign energy prices, has carried through this month, despite a decidedly gloomy earnings season and an insistence among central bankers that high inflation isn't going anywhere any time soon.
The S&P itself is heading for a 6.1% rise this month - which would mark its best January since 2019. The first month of the year tends to be one of the strongest anyway, according to Refinitiv data.
In the last 94 years, the S&P has risen by 1.2% on average in January, compared with an average rise of 1.3% in December, the month with the highest returns.
One of the major boosts that the stock market has enjoyed this January has been the seemingly cast-iron conviction among traders and investors that the Fed, while not bluffing exactly, won't raise rates as much as policymakers say they will, and that inflation won't prove nearly as sticky.
This has translated into a near 30 basis-point drop in 10-year Treasury yields and the S&P hasn't got as much bang for its buck in the month of January from a drop in yields like this in recent memory.
Even in strong Januarys, such as that of 2019, when the index rose by 7%, 10-year yields fell only 6 bps. In January 1987, when the index rose 13%, yields fell just 6 bps.
With so much riding on the Fed being wrong and the markets being right about the outlook for monetary policy, there would appear to be a lot more scope than usual for equity bulls to get a smack in the face from anything that might force a rethink on where U.S. rates might peak.
Key developments that should provide more direction to markets on Monday:
- Dallas Fed Manufacturing Business Index January -18.8 prior
- Dallas Fed PCE 3.4% prior
- German economy unexpectedly shrinks in Q4
The race to raise rateshttps://tmsnrt.rs/3Dcpm76
(Reporting by Amanda Cooper; Editing by Hugh Lawson)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big Tech royalty in the form of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O deliver earnings. The euphoria that marked the end of 2022, fed by China dismantling its COVID restrictions and more benign energy prices, has carried through this month, despite a decidedly gloomy earnings season and an insistence among central bankers that high inflation isn't going anywhere any time soon. With so much riding on the Fed being wrong and the markets being right about the outlook for monetary policy, there would appear to be a lot more scope than usual for equity bulls to get a smack in the face from anything that might force a rethink on where U.S. rates might peak.
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Big Tech royalty in the form of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O deliver earnings. One of the major boosts that the stock market has enjoyed this January has been the seemingly cast-iron conviction among traders and investors that the Fed, while not bluffing exactly, won't raise rates as much as policymakers say they will, and that inflation won't prove nearly as sticky. In January 1987, when the index rose 13%, yields fell just 6 bps.
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Big Tech royalty in the form of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O deliver earnings. The euphoria that marked the end of 2022, fed by China dismantling its COVID restrictions and more benign energy prices, has carried through this month, despite a decidedly gloomy earnings season and an insistence among central bankers that high inflation isn't going anywhere any time soon. One of the major boosts that the stock market has enjoyed this January has been the seemingly cast-iron conviction among traders and investors that the Fed, while not bluffing exactly, won't raise rates as much as policymakers say they will, and that inflation won't prove nearly as sticky.
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Big Tech royalty in the form of Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O deliver earnings. A look at the day ahead in markets from Amanda Cooper, Europe breaking news editor. The euphoria that marked the end of 2022, fed by China dismantling its COVID restrictions and more benign energy prices, has carried through this month, despite a decidedly gloomy earnings season and an insistence among central bankers that high inflation isn't going anywhere any time soon.
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17383.0
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2023-01-30 00:00:00 UTC
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US STOCKS-Wall Street set to open lower ahead of Fed rate decision
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-lower-ahead-of-fed-rate-decision
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By Shreyashi Sanyal and Johann M Cherian
Jan 30 (Reuters) - Wall Street was set to open lower on Monday, with the tech-focused Nasdaq futures dropping more than 1%, at the start of the busiest week of the earnings season and ahead of key central bank meetings.
The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
This will likely be the smallest rate increase since the Fed kicked off its tightening cycle 10 months ago with a 25 bps hike, with financial markets pricing in a final rate hike in March.
"The Fed's going to continue to err on the side of caution with respect to inflation because of the fact that it still remains well above the 2% target ... we're seeing signs that inflation may be coming down, but it's still not low enough," said Adam Sarhan, chief executive of 50 Park Investments in New York.
Money markets now see rates peaking at 4.9% in June, still below the 5% level expected by Fed policymakers. 0#FEDWATCH
After a slew of layoffs by large-cap tech and financial firms through the month, investors will now watch out for the Labor Department's January nonfarm payrolls data expected on Friday.
A total of 107 S&P 500 firms are expected to report quarterly earnings this week including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, all down about 1% each in premarket trading.
Analysts expect S&P 500 earnings during the fourth-quarter to decline 2.9%, compared with the 1.6% drop expected at the beginning of the year, according to Refinitiv data as of Friday.
Data reflecting cooling inflation and a slowing economy has raised hopes among investors that the Fed might steer away from its hawkish rhetoric, stoking interest in growth stocks this month, with the S&P 500 Growth index .IGX recouping more than half its monthly losses from December.
Tighter monetary policies have stood in the way of business expansion of growth firms, which have also been pressured for much of last year by high Treasury yields.
Wall Street is expected to end the month higher with the tech-inclined Nasdaq .IXIC and the benchmark S&P 500 .SPX recovering December losses.
"The month of January was a big 'up-month' on Wall Street, led mostly by many of the big stocks that got crushed last year," Sarhan added, noting that the decline in growth stocks on Monday could be due to some profit-taking.
At 8:48 a.m. ET, Dow e-minis 1YMcv1 were down 157 points, or 0.46%, S&P 500 e-minis EScv1 were down 32.5 points, or 0.8%, and Nasdaq 100 e-minis NQcv1 were down 138 points, or 1.13%.
Other major central banks including the European Central Bank and the Bank of England are also seen raising interest rates later in the week.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A total of 107 S&P 500 firms are expected to report quarterly earnings this week including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, all down about 1% each in premarket trading. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - Wall Street was set to open lower on Monday, with the tech-focused Nasdaq futures dropping more than 1%, at the start of the busiest week of the earnings season and ahead of key central bank meetings. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
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A total of 107 S&P 500 firms are expected to report quarterly earnings this week including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, all down about 1% each in premarket trading. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation. Data reflecting cooling inflation and a slowing economy has raised hopes among investors that the Fed might steer away from its hawkish rhetoric, stoking interest in growth stocks this month, with the S&P 500 Growth index .IGX recouping more than half its monthly losses from December.
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A total of 107 S&P 500 firms are expected to report quarterly earnings this week including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, all down about 1% each in premarket trading. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - Wall Street was set to open lower on Monday, with the tech-focused Nasdaq futures dropping more than 1%, at the start of the busiest week of the earnings season and ahead of key central bank meetings. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
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A total of 107 S&P 500 firms are expected to report quarterly earnings this week including heavyweight growth companies Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O, all down about 1% each in premarket trading. By Shreyashi Sanyal and Johann M Cherian Jan 30 (Reuters) - Wall Street was set to open lower on Monday, with the tech-focused Nasdaq futures dropping more than 1%, at the start of the busiest week of the earnings season and ahead of key central bank meetings. The U.S. Federal Reserve is seen hiking the Fed funds rate by 25 basis points (bps) at the end of its two-day policy meeting on Wednesday, close on the heels of economic reports showing signs of slowing demand and cooling inflation.
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17384.0
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2023-01-30 00:00:00 UTC
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Big Week Ahead for Q4 Earnings, Econ Data
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https://www.nasdaq.com/articles/big-week-ahead-for-q4-earnings-econ-data
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Monday, January 30th, 2023
We have a consequential week in the markets ahead of us — perhaps the most consequential week we’ve seen so far this year. Not only do we have a new Fed funds rate out mid-week (expectations are for a 25 bps bump to a 4.50-4.75% range), but we also get roughly 20% of the S&P 500 reporting quarterly earnings before Friday’s closing bell.
Among those companies reporting, we’re now in a “free for all” in terms of sectors accounting for their past quarters, A normal earnings season starts with Big Banks and moves to Big Tech, ending with Restaurants and Retailers in the final stages. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD.
Today we’ll here from Whirlpool WHR, among others, after the closing bell. The Durable Goods staple of home appliances limps into earnings season with a Zacks Rank #5 (Strong Sell). As consumers become a little more discriminatory in terms of their purchases, we shall see if Whirlpool is able to manage its way through this rough patch.
In addition, monthly jobs numbers from the private sector via ADP (ADP) and the U.S. government (BLS) are out Wednesday and Friday, respectively, along with JOLTS figures and weekly Jobless Claims. Case-Shiller home prices and ISM Manufacturing and Services join the party throughout the week, as well. Suffice it to say we’ll be in a new zone by the end of this week than we are here at the beginning.
Following another solid week of gains — which is sizing up to be one of the strongest January trading months in years — pre-market futures are selling off some of their profits: the Dow is -150 points at this hour, the S&P 500 is -30 and the Nasdaq -130. This is not to say market participants are cooling on overall prospects in equities, but after last year’s half-dozen or so head-fakes, investors appear to believe it’s best not to get far out ahead of the data soon to come.
Questions or comments about this article and/or its author? 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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Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only do we have a new Fed funds rate out mid-week (expectations are for a 25 bps bump to a 4.50-4.75% range), but we also get roughly 20% of the S&P 500 reporting quarterly earnings before Friday’s closing bell.
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Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research?
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. We have a consequential week in the markets ahead of us — perhaps the most consequential week we’ve seen so far this year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Now it’s everyone: Apple AAPL, Amazon AMZN, Alphabet GOOGL, Ford F, McDonald's MCD and AMD AMD. We have a consequential week in the markets ahead of us — perhaps the most consequential week we’ve seen so far this year.
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17385.0
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2023-01-30 00:00:00 UTC
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METALS-Copper under pressure, China demand worry dominates mood
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https://www.nasdaq.com/articles/metals-copper-under-pressure-china-demand-worry-dominates-mood
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By Pratima Desai
LONDON, Jan 30 (Reuters) - Copper prices dropped on Monday as worries about the outlook for demand in top consumer China dominated sentiment ahead of key data from the country's manufacturing sector, while a softer dollar provided some support.
Benchmark copper CMCU3 on the London Metal Exchange was down 0.2% at $9,244 a tonne at 1112 GMT. It hit a seven-month high earlier this month as speculators piled in after China removed its COVID restrictions.
"Production of metal/copper containing goods in China, things like cars and washing machines, rose significantly last year. They don't need to be produced this year even if shoppers return," said Julius Baer analyst Carsten Menke.
Neither does Menke expect any boost to metals demand from the property sector. "China's population is shrinking, demand for property is declining structurally, why would the government use property to stimulate growth."
Clues to demand prospects will come from surveys of purchasing managers in China's manufacturing sector this week.
A lower U.S. currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand. FRX/
The future direction of interest and currency rates could be determined by earnings reports from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O and a meeting of the Federal Reserve this week.
Technical support for copper is around $9,025 where a Fibonacci retracement level and the 21-day moving average meet.
Meanwhile, the zinc market is focussing on dwindling stocks in LME approved warehouses MZN-STOCKS, which at 17,425 tonnes are at their lowest since 1989 and large holdings of zinc warrants and cash contracts 0#LME-WHC.
Concern about the availability on the LME has created a premium or backwardation for the cash over the three-month zinc contracts CMZN0-3, which ended Friday at $25.25.
Three-month zinc CMZN3 was up 0.4% at $3,428 a tonne.
In other metals, aluminium CMAL3 was down 0.4% at $2,616 a tonne, lead CMPB3 rose 0.2% to $2,188, tin CMZN3 ceded 1.9% to $30,245 and nickel CMNI3 was up 1.9% at $29,445.
(Reporting by Pratima Desai; editing by Kirsten Donovan)
((pratima.desai@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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FRX/ The future direction of interest and currency rates could be determined by earnings reports from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O and a meeting of the Federal Reserve this week. By Pratima Desai LONDON, Jan 30 (Reuters) - Copper prices dropped on Monday as worries about the outlook for demand in top consumer China dominated sentiment ahead of key data from the country's manufacturing sector, while a softer dollar provided some support. Concern about the availability on the LME has created a premium or backwardation for the cash over the three-month zinc contracts CMZN0-3, which ended Friday at $25.25.
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FRX/ The future direction of interest and currency rates could be determined by earnings reports from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O and a meeting of the Federal Reserve this week. By Pratima Desai LONDON, Jan 30 (Reuters) - Copper prices dropped on Monday as worries about the outlook for demand in top consumer China dominated sentiment ahead of key data from the country's manufacturing sector, while a softer dollar provided some support. Neither does Menke expect any boost to metals demand from the property sector.
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FRX/ The future direction of interest and currency rates could be determined by earnings reports from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O and a meeting of the Federal Reserve this week. By Pratima Desai LONDON, Jan 30 (Reuters) - Copper prices dropped on Monday as worries about the outlook for demand in top consumer China dominated sentiment ahead of key data from the country's manufacturing sector, while a softer dollar provided some support. Neither does Menke expect any boost to metals demand from the property sector.
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FRX/ The future direction of interest and currency rates could be determined by earnings reports from Apple AAPL.O, Alphabet GOOGL.O and Amazon AMZN.O and a meeting of the Federal Reserve this week. Benchmark copper CMCU3 on the London Metal Exchange was down 0.2% at $9,244 a tonne at 1112 GMT. Neither does Menke expect any boost to metals demand from the property sector.
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17386.0
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2023-01-30 00:00:00 UTC
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Should Invesco FTSE RAFI US 1000 ETF (PRF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-ftse-rafi-us-1000-etf-prf-be-on-your-investing-radar-5
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nan
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nan
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Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $6.15 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 19% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL).
The top 10 holdings account for about 16.4% of total assets under management.
Performance and Risk
PRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses. The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
The ETF has gained about 4.85% so far this year and is up about 0.85% in the last one year (as of 01/30/2023). In the past 52-week period, it has traded between $138.77 and $174.26.
The ETF has a beta of 1 and standard deviation of 25.64% for the trailing three-year period, making it a medium risk choice in the space. With about 1004 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PRF is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.19 billion in assets, Vanguard Value ETF has $101.60 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Alternatives Invesco FTSE RAFI US 1000 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.81% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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17387.0
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2023-01-29 00:00:00 UTC
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China's 2022 smartphone sales plunge to lowest level in a decade
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AAPL
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https://www.nasdaq.com/articles/chinas-2022-smartphone-sales-plunge-to-lowest-level-in-a-decade
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nan
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nan
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By Josh Horwitz
SHANGHAI, Jan 30 (Reuters) - China's smartphone sales endured a record fall in 2022, tumbling 13% to their lowest level in a decade as COVID controls and a slowing economy sapped consumer appetite, data from third-party research firms showed.
The total number of devices shipped was 286 million, down from 329 million in 2022. It was the lowest sales volume since 2013 and the first time since then that annual sales have dropped below 300 million, IDC said in a report.
Strict COVID-19 controls weighed heavily on the Chinese economy last year but Beijing started dismantling the restrictions in December, boosting consumption.
"The strict pandemic control poicy has resulted in historically high household savings as consumer spending became conservative," said Lucas Zhong, who tracks China's smartphone sector for research firm Canalys.
Android handset maker Vivo was the top-selling brand in 2022, with a market share of 18.6%, according to IDC. Its total shipments fell 25.1% year-on-year.
Huawei Technologies spin-off HWT.UL Honor ranked as the second best-selling brand, with shipments growing more than 34%, albeit from a low base.
Apple Inc AAPL.O was the third best-selling phone brand in 2022, tied with Oppo, moving up from fourth place in the previous year.
Apple's overall sales fell 4.4% year-on-year, according to IDC, while all other rivals excluding Honor saw sales fall in the double digits.
Overall, the plunge in smartphone sales in China reflected the sector's performance globally. In 2022, global smartphone shipments hit 1.2 billion, the lowest since 2013 and a year-on-year fall of more than 11%, according to IDC.
A separate report from Canalys published on Monday said that in the fourth quarter of 2022, Apple sold 16.4 million devices, down 24% year-on-year. This compared to a 37.3% shipments slump from Xiaomi and Honor's 14.1% fall during the same quarter.
That marks the first time Apple shipments dropped year-on-year in China since early 2020, when the first wave of COVID-19 swept the country. The fall was caused by an earlier release of the latest iPhone series as well as by worker unrest at its major manufacturer Foxconn's plant in the city of Zhengzhou that impacted its supply chain, Canalys said.
Still, Apple remained the top-selling phone maker in China in the quarter, hitting record-high market share, Canalys added.
(Reporting by Josh Horwitz; Editing by Robert Birsel and Stephen Coates)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O was the third best-selling phone brand in 2022, tied with Oppo, moving up from fourth place in the previous year. By Josh Horwitz SHANGHAI, Jan 30 (Reuters) - China's smartphone sales endured a record fall in 2022, tumbling 13% to their lowest level in a decade as COVID controls and a slowing economy sapped consumer appetite, data from third-party research firms showed. "The strict pandemic control poicy has resulted in historically high household savings as consumer spending became conservative," said Lucas Zhong, who tracks China's smartphone sector for research firm Canalys.
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Apple Inc AAPL.O was the third best-selling phone brand in 2022, tied with Oppo, moving up from fourth place in the previous year. "The strict pandemic control poicy has resulted in historically high household savings as consumer spending became conservative," said Lucas Zhong, who tracks China's smartphone sector for research firm Canalys. That marks the first time Apple shipments dropped year-on-year in China since early 2020, when the first wave of COVID-19 swept the country.
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Apple Inc AAPL.O was the third best-selling phone brand in 2022, tied with Oppo, moving up from fourth place in the previous year. By Josh Horwitz SHANGHAI, Jan 30 (Reuters) - China's smartphone sales endured a record fall in 2022, tumbling 13% to their lowest level in a decade as COVID controls and a slowing economy sapped consumer appetite, data from third-party research firms showed. Apple's overall sales fell 4.4% year-on-year, according to IDC, while all other rivals excluding Honor saw sales fall in the double digits.
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Apple Inc AAPL.O was the third best-selling phone brand in 2022, tied with Oppo, moving up from fourth place in the previous year. It was the lowest sales volume since 2013 and the first time since then that annual sales have dropped below 300 million, IDC said in a report. In 2022, global smartphone shipments hit 1.2 billion, the lowest since 2013 and a year-on-year fall of more than 11%, according to IDC.
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17388.0
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2023-01-29 00:00:00 UTC
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GLOBAL MARKETS-Asia shares turn cagey as rate hikes, earnings loom
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-turn-cagey-as-rate-hikes-earnings-loom
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nan
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nan
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By Wayne Cole
SYDNEY, Jan 30 (Reuters) - Asian shares turned cagey on Monday ahead of a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.
Earnings from a who's who of tech giants will also test the mettle of Wall Street bulls, who are looking to propel the Nasdaq to its best January since 2001.
Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January so far at a nine-month high.
The index was off 0.2% on Monday with markets mixed across the region. Japan's Nikkei .N225 went flat, while Taiwan .TWII jumped 3.1%.
The Nikkei newspaper reported Renault RENA.PA was to lower its share holding in Nissan 7201.T to 15%, while the latter would invest in Renault's EV business.
Chinese blue chips .CSI300 climbed 1.1% after returning from the holidays. Beijing reported Lunar New Year travel trips inside China surged 74% from last year, though that was still only half of pre-pandemic levels.
S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.3%, while EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 dipped 0.2%.
Investors are confident the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done.
"With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
"We also look for him to continue to push back against market pricing of rate cuts later this year."
There is a lot of pushing to do given futures 0#FF: currently have rates peaking at 5.0% in March, only to fall back to 4.5% by year end. FEDWATCH
EYEING APPLE
Yields on 10-year notes US10YT=RR have fallen 33 basis points so far this month to 3.50%, essentially easing financial conditions even as the Fed talks tough on tightening.
That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys.
Figures on EU inflation could be important for whether the ECB signals a half-point rate rise for March, or opens the door to slowdown in the pace of tightening.
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others.
"Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
"Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added. "Apple will likely cut some costs around the edges, but we do not expect mass layoffs."
Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.6% =USD so far this month to stand at 101.790 against a basket of major currencies.
The euro is up 1.5% for January at $1.0878 EUR=EBS and just off a nine-month top. The dollar has even lost 1.3% on the yen to 129.27 JPY=EBS despite the Bank of Japan's dogged defence of its uber-easy policies.
The drop in the dollar and yields has been a boon for gold, which is up 5.8% for the month so far at $1,930 an ounce XAU=. GOL/
China's rapid reopening is seen as a windfall for commodities in general, supporting everything from copper to iron ore to oil prices. O/R
The oil market was hesitant on Monday, with Brent LCOc1 off 11 cents at $86.55 a barrel, while U.S. crude CLc1 eased 3 cents to $79.65.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Christopher Cushing)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Wayne Cole SYDNEY, Jan 30 (Reuters) - Asian shares turned cagey on Monday ahead of a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go. "With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done. "We also look for him to continue to push back against market pricing of rate cuts later this year."
|
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January so far at a nine-month high. S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.3%, while EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 dipped 0.2%.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done. "We also look for him to continue to push back against market pricing of rate cuts later this year."
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17389.0
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2023-01-29 00:00:00 UTC
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GLOBAL MARKETS-Asia shares brace for rate hikes, earnings rush
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-brace-for-rate-hikes-earnings-rush
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nan
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nan
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By Wayne Cole
SYDNEY, Jan 30 (Reuters) - Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.
Earnings from a who's who of tech giants will also test the mettle of Wall Street bulls, who are looking to propel the Nasdaq to its best January since 2001.
Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January at a nine-month high.
Early Monday, the index was up 0.1% as investors looked forward to China's market resuming after the Lunar New Year holidays, while Japan's Nikkei .N225 added 0.2%.
S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.1%.
Investors are confident the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done.
"With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
"We also look for him to continue to push back against market pricing of rate cuts later this year."
There is a lot of pushing to do given futures 0#FF: currently have rates peaking at 5.0% in March, only to fall back to 4.5% by year end. FEDWATCH
EYEING APPLE
Yields on 10-year notes US10YT=RR have fallen 31 basis points so far this month to 3.518%, essentially easing financial conditions even as the Fed seeks to tighten.
That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys.
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others.
"Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
"Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added. "Apple will likely cut some costs around the edges, but we do not expect mass layoffs."
Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.5% =USD so far this month against a basket of major currencies.
The euro is up 1.4% for January at $1.0870 EUR=EBS and just off a nine-month top. The dollar has even lost 1% on the yen to 129.92 JPY=EBS despite the Bank of Japan's dogged defence of its uber-easy policies.
The drop in the dollar and yields has been a boon for gold, which is up 5.6% for the month so far at $1,928 an ounce XAU=. GOL/
China's rapid reopening is seen as a windfall for commodities in general, supporting everything from copper to iron ore to oil prices. O/R
Beijing reported Lunar New Year travel trips inside China surged 74% from last year, though that was still only half of pre-pandemic levels.
Early Monday, Brent LCOc1 was up 79 cents at $87.45 a barrel, while U.S. crude CLc1 rose 66 cents to $80.34.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Christopher Cushing)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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.
|
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Wayne Cole SYDNEY, Jan 30 (Reuters) - Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go. "With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
|
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Early Monday, the index was up 0.1% as investors looked forward to China's market resuming after the Lunar New Year holidays, while Japan's Nikkei .N225 added 0.2%. Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done.
|
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January at a nine-month high. Early Monday, the index was up 0.1% as investors looked forward to China's market resuming after the Lunar New Year holidays, while Japan's Nikkei .N225 added 0.2%.
|
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Early Monday, the index was up 0.1% as investors looked forward to China's market resuming after the Lunar New Year holidays, while Japan's Nikkei .N225 added 0.2%. "We also look for him to continue to push back against market pricing of rate cuts later this year."
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17390.0
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2023-01-29 00:00:00 UTC
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7 Growth Stocks That Will Be Big Winners in 2023
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AAPL
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https://www.nasdaq.com/articles/7-growth-stocks-that-will-be-big-winners-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
After a tumultuous bear market in 2022, investors are eager for a more stable year. Moreover, it seems as though the equity market is rebounding, with many of the best growth stocks trading in the green.
Though there is still considerable volatility in the market, there’s much to look forward to this year.
There are still plenty of risks, such as supply chain hiccups, high-interest rates, and other macroeconomic factors. Those who have been patient enough to wait until now could reap healthy long-term rewards. The valuations of many of the top growth stocks have become particularly attractive following the selloff last year. Having said that, here are seven growth stocks with great potential for superior returns in 2023.
AAPL Apple $145.93
ISRG Intuitive Surgical $247.26
CHPT ChargePoint $12.16
DDOG Datadog $77.23
U Unity Software $36.29
MARA Marathon Digital Holdings $8.02
PANW Palo Alto Networks $159.78
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors.
Even though the launch of the Apple Glass got delayed, it is still forging ahead into the AI/virtual reality sector. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now.
Meanwhile, its massive customer base continues to purchase its flagship products, such as iPhones, Apple watches, and other accessories, resulting in stronger revenue and earnings growth.
Apple has blown past estimates across both lines in 18 out of the past 20 quarters. This gives investors more confidence in buying the stock of this future-focused tech giant as it continues to play a major role in the ever-evolving economy.
Intuitive Surgical (ISRG)
Source: Sundry Photography / Shutterstock.com
Intuitive Surgical (NASDAQ:ISRG) is incredibly positioned for the future on the back of robust demand for robotic surgery in the upcoming decade.
The company’s success is already apparent in the glowing results of its da Vinci Surgical System, which saw double-digit growth in its installed base during its most recent quarter. As robotic technology continues to evolve and improve, it appears that Intuitive will be one of many beneficiaries of this trend.
ISRG’s track record of growing its sales and earnings has been mighty impressive. Over the past five years, Intuitive’s revenue growth has averaged 16%.
Analysts expect to see double-digit growth in earnings for the next five years. Layer that up with its massive addressable market, ISRG stock is likely to offer tremendous upside down the road.
ChargePoint (CHPT)
Source: JL IMAGES / Shutterstock.com
ChargePoint (NYSE:CHPT) is changing how electric mobility works with its robust range of charging solutions, boasting a leadership position in the niche.
The firm has grown its sales at an incredible pace, with revenues up over 90% in its most recent quarter. Also, with passenger EV sales expecting a 51% compound annual growth rate from 2020 to 2026, investing in CHPT stock remains an incredible long-term opportunity.
With the recent agreement between Chargepoint, Mercedes-Benz Group, and MNB Energy, EV drivers in the U.S. and Canada are sure to benefit from increased access to fast chargers that will get their vehicles up and running.
Even with a few cautionary notes, such as diminishing investors’ support for CHPT stock and the company’s road to profitability projected for several years down the line, it’s well worth investing in this EV charging giant.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions.
Instead of juggling multiple services to monitor and protect IT systems adequately, businesses can have it all under a one-stop-shop platform such as Datadog. Its intuitive and user-friendly service makes it easy for any business to access the necessary tools without needing specialized IT support.
This all-in-one approach makes Datadog so attractive for businesses looking for a comprehensive cloud solution.
Datadog has had a remarkable success story, with its sales jumping from $101 million in 2017 to over $1.2 billion in the past three quarters. Additionally, forward revenue growth estimates are over 50%, with the firm likely to break even soon. All this suggests that Datadog can continue growing at a robust pace and become a dominant force in its market.
Unity Software (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) is a leading video game engine developer who has effectively revolutionized the sphere.
However, Unity’s success has extended further than the game domain with its foray into video animation, architecture, and e-commerce. This bold expansion by Unity comes at key rival Unreal’s expense. Together, the two companies now control an impressive majority of the video-game-engine market with its potent user base.
The future looks bright for Unity’s software suite as the rise of virtual and augmented reality unlocks a new world of potential. The firm’s revenue growth has averaged over 40% growth over the past five years.
Also, it continues to invest in its cloud capabilities and has shifted to a subscription sales model, which should significantly expand its margins. With its latest advancements in VR/AR technology and subscription models, Unity will be well-poised to reap the rewards from this burgeoning industry over the long run.
Marathon Digital Holdings (MARA)
Source: Yev_1234 / Shutterstock
Marathon Digital Holdings (NASDAQ:MARA) has seen the potential growth in blockchain technology and its subsequent possibilities for the industry, providing the hope that the value of Bitcoin will not only return but will continue to expand.
Though 2022 wasn’t ideal, it’s far too early to write off the incomparable value Bitcoin can bring.
Marathon Digital Holdings has made a name for itself amongst bitcoin miners as an industry leader, consistently displaying impressive growth.
This is especially true during the crypto winter of 2022 when its output increased by 29%. Also, analysts believe that it could take until the year 2040 for all of the remaining two million bitcoin to be mined, pointing to a massive addressable market for the stock.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Palo Alto Networks (NASDAQ:PANW) is in an enviable position concerning the increasing demand for cybersecurity solutions.
During such unprecedented times, the need for secure access has driven the relentless search for reliable and advanced technologies, creating favorable conditions for Palo Alto’s security portfolio.
Investing heavily in research and development while leveraging its expansive data will undoubtedly place Palo Alto far ahead of its competitors in this digital age of security.
Palo Alto has long been a leader in the field of cybersecurity, and this recent distinction as the top global vendor is no surprise.
The company’s dedication to premium technology and strong consistency have put it in a position for success, positioning it far above the competition. Palo Alto’s impressive gross profit margins of over 60% indicate just how successful its operations have been and justify its premium valuation in the tech space.
This win is only another example of Palo Alto’s dominance within the industry, which surely set them up for continued success.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 Growth Stocks That Will Be Big Winners in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now. Meanwhile, its massive customer base continues to purchase its flagship products, such as iPhones, Apple watches, and other accessories, resulting in stronger revenue and earnings growth.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now. Intuitive Surgical (ISRG) Source: Sundry Photography / Shutterstock.com Intuitive Surgical (NASDAQ:ISRG) is incredibly positioned for the future on the back of robust demand for robotic surgery in the upcoming decade.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
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17391.0
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2023-01-29 00:00:00 UTC
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Weekly Preview: Earnings To Watch This Week 1-29-23 (AAPL, AMZN, GOOG, META)
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AAPL
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https://www.nasdaq.com/articles/weekly-preview%3A-earnings-to-watch-this-week-1-29-23-aapl-amzn-goog-meta
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nan
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nan
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W
e’ve been asking for some time whether all of the bad news has been priced into the market; this question can only be answered by looking at whether we have reached a bottom. Although there have been many head-fakes for the latter, there is strong evidence that this time a legitimate bottom has, in fact, already been reached as far back as two weeks ago when the S&P 500 began its uptrend above 3900.
Stocks closed out Friday on a positive note, albeit off the highs, booking decent gains for the day and for the week. This suggests that “yes” might be the answer for both of the questions above. This week’s trading activity showed not only an aggressive return to risk assets, but that investors are also less fearful of the high-growth stocks like Tesla (TSLA) and Netflix (NFLX), which were beaten down previously amid recession fears.
Investor optimism was also driven by, among other things, release of fourth quarter earnings that weren’t as bad a feared. Just as encouraging, the guidance that has been provided thus far suggests that CEOs are more optimistic about their ability to navigate the inflationary climate. Of the roughly 21% of S&P 500 companies have reported earnings so far, almost three-quarters have beaten analyst expectations, marking a strong start to the fourth quarter earnings season. This could be a sign of things to come.
The Dow Jones Industrial Average on Friday was rose by 28.67 points, or 0.08%, to end Friday's session at 33,978.08. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Disney (DIS). The S&P 500 added 10.13 points, or 0.25%, finishing at 4,070.56, while the tech-heavy Nasdaq Composite gained 109.3 points, or 0.95%, to close at 11,621.71. The Nasdaq, which is on pace for its best January in almost two decades, was powered by, among others, 11% rise in shares of Tesla (TSLA) and a 6% gain in Roku (ROKU).
The Nasdaq booked its fourth straight week of gains, jumping 4.3%. This marked the index’s longest weekly winning streak since August. For the week, the Dow rose 1.8%, while the S&P 500 gained 2.5%. The main question heading into the week is whether this rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Meta Platform (META) slated to announce their results. While it’s still early in the reporting cycle, the guidance they provide for the current quarter and beyond will reveal their level of confident and ability to navigate inflationary headwinds.
Here are the earnings I'm watching this week:
Meta Platforms (META) - Reports after the close, Wednesday, Feb. 1
Wall Street expects the Facebook parent to earn $2.21 per share on revenue of $31.44 billion. This compares to the year-ago quarter when earnings came to $3.67 per share on revenue of $33.67 billion.
What to watch: Meta Platforms suffered the biggest losses among its FAANG peers in terms of market cap percentage in 2022. Roughly $450 billion of its market cap disappeared. Aside from slowing user growth and prolonged weakness in digital ad business at its core Facebook and Instagram products, there’s increasing investor concerns whether the company can effectively compete with the likes of TikTok. However, in 2023, even amid inflationary cost pressures and struggles with daily active users, Meta can still beat profit expectations, which are low. Although the company is heavily reliant on digital ad spending growth to fund its various initiatives and to generate free cash flow, the stock nonetheless presents a compelling risk-versus-reward opportunity at current levels. Its shares are priced at just fifteen times forward earnings, while the business still generates strong free cash flow. With a consensus analyst price target of $152, which suggests 26% upside from current levels, Meta stock should be on any short list of stocks to buy in 2023. The company on Wednesday will nonetheless need to show improvements in its Reality Labs, demonstrating that the business can emerge as Meta’s profit center that it is expected to become.
Alphabet (GOOG , GOOGL) - Reports after the close, Thursday, Feb. 2
Wall Street expects Alphabet to earn $1.18 per share on revenue of $76.48 billion. This compares to the year-ago quarter when earnings came to $1.53 per share on revenue of $75.33 billion.
What to watch: Shares of the Google and YouTube parent have fallen 23% over the past year, compared to a 6.6% decline in the S&P 500 index. The stock has also fallen 8% and 11% in the respective three months and six months. Amid various macroeconomic concerns such as rising inflation, the tech conglomerate has suffered a slowdown in digital advertising. That said, consistent execution hasn’t been an issue for Google. In the last two years, the company’s quarterly reports have beaten revenue estimates for eight consecutive time, while missing on profit estimates just once in that span. But the stock is cheap, according to Jefferies analyst Brent Thill, who has a Buy rating and $125 price target on GOOGL stock, suggesting a near 30% upside from current levels. Thill suggests being "tactically cautious" in the near term, with macroeconomic headwinds swirling, but "for investors looking past the looming recession," GOOGL is trading well below its historical average on a profitability perspective. Google's advertising business, which is expected to experience some weakness, will continue to be a key driver of that valuation. On Thursday, assuming prolonged slowing trends in the digital ad business, investors will look to see if Google’s cloud business, which currently accounts for less than 10% of Google's total revenues, can be a strong offsetting factor.
Apple (AAPL) - Reports after the close, Thursday, Feb. 2
Wall Street expects Apple to earn $1.95 per share on revenue of $121.9 billion. This compares to the year-ago quarter when earnings came to $2.10 per share on revenue of $123.94 billion.
What to watch: Driven by prolonged monetary tightening, the tech-heavy Nasdaq Composite Index which suffered the worst of the three major averages, lost 34% to end 2022. Among the biggest decliners were large-cap technology stocks such as Apple which lost 22% of its value, logging the third-worst performance since 2000. Although Apple ended the year as the world's most valuable company, it suffered a massive market cap decline of roughly $755 billion, ending the year with a market valuation of $2.07 trillion. However, after licking their wounds in 2022, Apple investors have some strong catalysts to be excited about in 2023. To be sure, inflation continues to drive higher operating expenses for several companies like Apple, which remains a headwind for its profit margins. It’s still hard to ignore the attractive valuation in Apple heading into 2023. While iPhone sales generate a sizable portion of revenues, Apple’s collective high-margin Services businesses are also growing. Apple Services segment in 2022 generated a gross margin of 72%, compared to 36% for hardware and devices. In 2023, investors can expect stronger revenue growth and margin expansion, thanks to price increases on Apple Music, TV+ and its One bundle. It remains to be seen if the Services segment power the company through what is expected to be a tough hardware environment. Apple shares have not performed as well as investors would have liked, with a consensus analyst price target of $176, which suggests 30% upside from current levels, Apple stock should be on any short list of stocks to buy in 2023.
Amazon (AMZN) - Reports after the close, Thursday, Feb. 2
Wall Street expects Amazon to earn 17 cents per share on revenue of $145.37 billion. This compares to the year-ago quarter when earnings came to $1.39 per share on revenue of $137.41 billion.
What to watch: Amazon’s decelerated profit growth has been one the key reasons for the stock’s struggles over the past year. The company’s investments its workforce along with research and development has taken a sizable portion of what would have otherwise been its profits. Since the start of the quarter, revenue and earnings estimates have been revised lower, suggesting the market’s growing concerns about the company’s ability to navigate through the challenging inflationary environment that has impacted consumer spending. The company’s FY 2022 EPS has been revised lower on 30 occasions. It’s not a surprise that the company guided for Q4 revenue to rise between 2% and 8%. On the bright side, there’s still Amazon Web Services which is expected to deliver revenue growth of close to 30%. With Q4 revenue expected to come in the range of $22.4 billion to $23.1 billion, the company’s dominant cloud platform is also expected to post strong profitability, driven by growing product adoption within its large enterprise customers. With the stock losing roughly a third of its value in the past year, now seems like an ideal time to place a bet a a recovery for the next 12 to 18 months. However, for that to matter in the near term, on Thursday beyond a top- and bottom line beat, investors will want strong profit guidance to support the long-term return investment thesis.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Disney (DIS). The main question heading into the week is whether this rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Meta Platform (META) slated to announce their results. Apple (AAPL) - Reports after the close, Thursday, Feb. 2 Wall Street expects Apple to earn $1.95 per share on revenue of $121.9 billion.
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Apple (AAPL) - Reports after the close, Thursday, Feb. 2 Wall Street expects Apple to earn $1.95 per share on revenue of $121.9 billion. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Disney (DIS). The main question heading into the week is whether this rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Meta Platform (META) slated to announce their results.
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Apple (AAPL) - Reports after the close, Thursday, Feb. 2 Wall Street expects Apple to earn $1.95 per share on revenue of $121.9 billion. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Disney (DIS). The main question heading into the week is whether this rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Meta Platform (META) slated to announce their results.
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Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Disney (DIS). The main question heading into the week is whether this rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Meta Platform (META) slated to announce their results. Apple (AAPL) - Reports after the close, Thursday, Feb. 2 Wall Street expects Apple to earn $1.95 per share on revenue of $121.9 billion.
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17392.0
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2023-01-29 00:00:00 UTC
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Why 2023 Is Tesla's Year To Prove Itself
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AAPL
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https://www.nasdaq.com/articles/why-2023-is-teslas-year-to-prove-itself
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nan
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nan
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Tesla (NASDAQ: TSLA) reported earnings that impressed investors this week, and shares jumped higher. But there was a lot to dig into in this report, including falling margins and questions about long-term demand. Travis Hoium and Jason Hall have a nuanced discussion about what Tesla has to prove in 2023.
*Stock prices used were end-of-day prices of Jan. 26, 2023. The video was published on Jan. 27, 2023.
Find out why Tesla 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. Tesla 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 January 9, 2023
Jason Hall has positions in Ford Motor Company. Travis Hoium has positions in Apple and General Motors and has the following options: long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Apple, Netflix, and Tesla. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft 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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Tesla (NASDAQ: TSLA) reported earnings that impressed investors this week, and shares jumped higher. Find out why Tesla is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. Travis Hoium has positions in Apple and General Motors and has the following options: long March 2023 $250 puts on Tesla.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Netflix, and Tesla. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Travis Hoium has positions in Apple and General Motors and has the following options: long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Apple, Netflix, and Tesla. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Travis Hoium has positions in Apple and General Motors and has the following options: long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Apple, Netflix, and Tesla. The Motley Fool has a disclosure policy.
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17393.0
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2023-01-29 00:00:00 UTC
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2 FAANG Stocks Investors Should Buy Hand Over Fist for 2023
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AAPL
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https://www.nasdaq.com/articles/2-faang-stocks-investors-should-buy-hand-over-fist-for-2023
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nan
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nan
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The acronym FAANG coined by CNBC host Jim Cramer consists of five companies:
(F) Meta Platforms (NASDAQ: META), formerly known as Facebook
(A) Amazon (NASDAQ: AMZN)
(A) Apple (NASDAQ: AAPL)
(N) Netflix (NASDAQ: NFLX)
(G) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), formerly known as Google
This group of five large-cap tech companies dominated the market through late 2021, absolutely crushing the S&P 500.
META Total Return Level data by YCharts.
Since then, almost every company has been a disaster.
META Total Return Level data by YCharts.
Still, these companies are dominant in their fields, and with their poor performance over the past year and a half, a couple of stocks have reached a strong buying point. So which ones do I think have a chance for a strong recovery? Read on to find out.
1. Amazon
In 2022, Amazon dealt with the problems of its overexpansion. It's currently incinerating cash at the rate of nearly $20 billion over the past 12 months, but through layoffs and shutting down programs, it's slowly clawing its way back to a cash-generative state.
While this cash burn is what many investors focus on (rightfully so), its North American commerce and Amazon Web Services (AWS) segments have both done well, as revenue grew 20% and 27% in the third quarter. Furthermore, Amazon's advertising services grew 25% year over year and became Amazon's fourth-biggest segment, generating $9.5 billion in sales.
Amazon's business, from the revenue side, is thriving. While it has some kinks to work out in the middle, the bones of a strong business are there. However, the market is valuing Amazon like it's doomed.
AMZN PS Ratio data by YCharts.
The current Amazon is a much broader business than it used to be last time it was valued this low. At this price, Amazon is a steal, and investors should consider picking up shares if they think Amazon can fix its expense problems.
2. Alphabet
Similar to Amazon, Alphabet's expenses have come under the microscope. Despite Alphabet's operating expenses rising 26% and headcount increasing 25%, the company could only deliver 6% revenue growth in Q3. That's an atrocious return on its hiring. However, Alphabet recently took steps to remedy that.
Alphabet laid off about 12,000 employees, or 6% of its workforce, in mid-January. That's expected to save between $2.5 billion and $3 billion annually in costs, which is helpful but still not nearly enough to offset its hiring spree (Alphabet hired more than 35,000 people over the past year).
However, With Alphabet's dominance in the search (Google) and video (YouTube) space, its properties will continue to generate massive revenue streams once advertisers are ready to spend again (likely near the end of 2023). Furthermore, its Google Cloud segment grew at a 38% pace in Q3 -- significantly faster than AWS's 27% growth.
Despite Alphabet's margins getting crunched, the stock trades at 21 times free cash flow -- its lowest in a decade. Betting on Alphabet to right the ship is likely a great strategy, and with the stock trading for as cheaply as it is, it's practically a no-brainer buy at these levels.
Why aren't the remaining three aren't great buys?
So with Amazon and Alphabet two solid choices among the FAANG names, what's wrong with the others?
The hardest one to leave out of my two best buys list was Apple, the largest company on Earth by market cap. It's also the only stock to beat the S&P 500 while many others were decimated. Over this period, it has proven to be the best managed, which has earned the stock a premium valuation. At 23 times earnings, Apple is well above its pre-2020 average valuation of around 16. Apple is an expensive stock, and while it will likely perform well going forward, it doesn't have the upside of my two favorites.
The worst-performing stock of the bunch since November 2021 is Meta Platforms. With the business model switching to a metaverse focus, the company's earnings plummeted, and free cash flow (FCF) fell off a cliff. Couple that with a challenging advertising environment, and Meta isn't a stock I'd want to own shares in currently.
Netflix hasn't performed much better than Meta due to its struggle to grow subscribers. In 2022, Netflix's subscriber count fell for the first time on record. Although it has begun to recapture some of those clients, the growth hasn't been impressive -- it's in the mid-single digits. Netflix is going through a significant business transformation, and now likely isn't the best time to get into the stock.
This will be a pivotal year for the FAANG stocks, as all but Apple have a lot of work to do, including cutting costs and increasing profitability. However, the market is pricing both Alphabet and Amazon like it won't happen -- a bet many investors should be willing to take. With both companies reporting earnings in early February, investors should consider getting in before they lay out their 2023 plans to improve their profitability -- moves that will likely send their stocks up.
Find out why Amazon.com 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. Amazon.com 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 January 9, 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. 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. Keithen Drury has positions in Alphabet and Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The acronym FAANG coined by CNBC host Jim Cramer consists of five companies: (F) Meta Platforms (NASDAQ: META), formerly known as Facebook (A) Amazon (NASDAQ: AMZN) (A) Apple (NASDAQ: AAPL) (N) Netflix (NASDAQ: NFLX) (G) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), formerly known as Google This group of five large-cap tech companies dominated the market through late 2021, absolutely crushing the S&P 500. It's currently incinerating cash at the rate of nearly $20 billion over the past 12 months, but through layoffs and shutting down programs, it's slowly clawing its way back to a cash-generative state. While this cash burn is what many investors focus on (rightfully so), its North American commerce and Amazon Web Services (AWS) segments have both done well, as revenue grew 20% and 27% in the third quarter.
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The acronym FAANG coined by CNBC host Jim Cramer consists of five companies: (F) Meta Platforms (NASDAQ: META), formerly known as Facebook (A) Amazon (NASDAQ: AMZN) (A) Apple (NASDAQ: AAPL) (N) Netflix (NASDAQ: NFLX) (G) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), formerly known as Google This group of five large-cap tech companies dominated the market through late 2021, absolutely crushing the S&P 500. Furthermore, Amazon's advertising services grew 25% year over year and became Amazon's fourth-biggest segment, generating $9.5 billion in sales. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix.
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The acronym FAANG coined by CNBC host Jim Cramer consists of five companies: (F) Meta Platforms (NASDAQ: META), formerly known as Facebook (A) Amazon (NASDAQ: AMZN) (A) Apple (NASDAQ: AAPL) (N) Netflix (NASDAQ: NFLX) (G) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), formerly known as Google This group of five large-cap tech companies dominated the market through late 2021, absolutely crushing the S&P 500. *Stock Advisor returns as of January 9, 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. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix.
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The acronym FAANG coined by CNBC host Jim Cramer consists of five companies: (F) Meta Platforms (NASDAQ: META), formerly known as Facebook (A) Amazon (NASDAQ: AMZN) (A) Apple (NASDAQ: AAPL) (N) Netflix (NASDAQ: NFLX) (G) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), formerly known as Google This group of five large-cap tech companies dominated the market through late 2021, absolutely crushing the S&P 500. Alphabet Similar to Amazon, Alphabet's expenses have come under the microscope. Netflix is going through a significant business transformation, and now likely isn't the best time to get into the stock.
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17394.0
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2023-01-29 00:00:00 UTC
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5 Top Stocks for February
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This year has started with a very different kind of investment atmosphere than folks were used to in 2022. The Nasdaq Composite has surged over 11% so far this month as growth stocks retake center stage.
But the rally doesn't mean that now is the time to repeat past mistakes, like investing in bad businesses just because they are hot stocks. Instead, it's better to find companies with compelling investment theses that can unlock multidecade growth potential.
Shopify (NYSE: SHOP), the Vanguard Growth ETF (NYSEMKT: VUG), Nio (NYSE: NIO), Beam Therapeutics (NASDAQ: BEAM), and Roku (NASDAQ: ROKU) have that kind of potential. Here's what makes each company a great buy now, according to five Motley Fool contributors.
Image source: Getty Images.
The leading e-commerce software vendor
Trevor Jennewine (Shopify): Soaring inflation has put many retailers in a tough spot, simultaneously creating a headwind to consumer spending while providing a tailwind that boosts operating expenses. That combination led to a series of disappointing financial results from Shopify over the past year, and the situation might not improve in the coming quarters.
But the fear inspired by those temporary obstacles has actually left patient investors with an excellent buying opportunity.
Global retail e-commerce spending is expected to grow at 13% annually to hit $15 trillion by 2030, and few businesses are better positioned to capitalize on that trend than Shopify. Its ability to simplify commerce by integrating dozens of sales channels on a single platform -- online marketplaces like Amazon (NASDAQ: AMZN), social media like Meta Platforms' Instagram, direct-to-consumer websites, and brick-and-mortar stores -- is a compelling value proposition for merchants.
Shopify sweetens the deal with an array of adjacent services for merchants, including payment processing, money management, and financing. And the company is building a fulfillment network that will support two-day delivery across multiple sales channels.
The platform empowers large brands to build customized digital storefronts with Shopify Plus, its enterprise-level commerce software. Merchants also have access to sophisticated tools for automation, marketing, and wholesale commerce.
Few competitors, if any, pack as much functionality into their platforms as Shopify, and that advantage has propelled the company to the forefront of the industry. It is the leading e-commerce software vendor, both in terms of market presence and user satisfaction, according to research company G2.
And with shares trading at 11.5 times sales, a big discount to the three-year average of 34.8 times sales, patient investors should buy a few shares of this stock in February.
This foundational ETF has it all
Daniel Foelber (Vanguard Growth ETF): The stock market has rallied nicely to kick off 2023. Even so, there are plenty of excellent stocks that remain down big off their highs.
Thankfully, most of the growth stocks that stand out as particularly compelling buys now can be found in the Vanguard Growth Exchange-Traded Fund (ETF). The top 10 largest holdings make up just under half the fund, but it has over 250 stocks in total. The fund is well structured because it has a rare balance of stability from industry-leading companies as well as exposure to smaller names.
Besides the quality of companies that make up the top holdings -- like Apple, Microsoft (NASDAQ: MSFT), Amazon, and Alphabet -- possibly the fund's greatest characteristic is its simplicity.
With the Vanguard Growth ETF, you don't have to ping-pong between Apple and Microsoft. Instead, the fund essentially provides a starting position across big tech that you can build upon. In this vein, the ETF does an excellent job of making sure initial-position sizing is under control while leaving room for investors to then add larger stakes in their favorite companies through individual stocks.
During a prolonged stock market sell-off, where price swings in individual stocks can be particularly jarring, the Vanguard Growth ETF offers peace of mind that could be just what an investor needs to weather the storm by holding through periods of volatility.
This EV stock deserves better
Neha Chamaria (Nio): Shares of Chinese electric vehicle (EV) manufacturer Nio hit an all-time high of $62.84 per share in early 2021. Its dizzying rally didn't last long, though, and the stock came crashing down, with 2022 turning out to be a trying year for investors.
So what went wrong with Nio? Lots of factors, including intense selling in growth stocks, surging COVID-19 cases in China, the threat of de-listing Chinese stocks from the U.S. stock exchanges, and fears of a recession.
Yet, if you notice, all of these are macroeconomic headwinds that Nio could only do so much about, and it's not as if the company has stopped growing for two years. In fact, revenue more than doubled in 2021 to $5.6 billion. The stock, though, continued to sink.
Nio's growth certainly decelerated in 2022, but it was also a hugely challenging year given the unanticipated surge in raw material prices, a shortage of batteries and other key parts, and COVID disruptions. Yet Nio launched the models it planned to in 2022 and delivered a record number of EVs in the fourth quarter, up 60% year over year.
While it's true that Nio stock didn't deserve the heady premium of early 2021, it's also true that it is now trading at a price-to-sales ratio of less than 3, one that it last saw before 2020. This is despite record deliveries, steady revenue growth, and several model launches lined up to take advantage of China's booming EV market. I believe that makes Nio a top EV stock to consider right now.
Beam me up
Keith Speights (Beam Therapeutics): My pick for February admittedly isn't for every investor. Beam Therapeutics is a clinical-stage biotech. It isn't generating any sales at this point. The company continues to burn through cash. If you're not willing to take on considerable risk, don't buy this stock.
That said, I think that Beam could skyrocket in the next bull market. Its shares are down nearly 70% from the high set in mid-2021. Most of this decline is due to the overall malaise for biotech stocks.
However, its stock wasn't helped when the Food and Drug Administration (FDA) placed a clinical hold on Beam's application to advance experimental leukemia therapy BEAM-201 into an early-stage clinical study.
That FDA clinical hold was lifted in December 2022. Beam expects to begin administering BEAM-201 to patients by the middle of this year. The company is also already evaluating BEAM-101 in an early-stage clinical study in treating sickle cell disease. It hopes to file for FDA approvals to begin clinical testing of two other experimental therapies by early 2024.
What makes Beam special? The company is a leader in developing base-editing therapies. Most gene-editing methods, such as CRISPR, are sort of like scissors: They cut part of the genome.
Base editing, though, is more like a pencil with an eraser. This means that base-editing therapies hold the potential for a high level of precision without some of the off-target edits that other approaches sometimes have.
Beam Therapeutics was co-founded by a who's who of gene editing. David Liu and his team invented base editing. Feng Zhang is a pioneer of CRISPR gene editing. J. Keith Joung is an award-winning genetic scientist.
Again, Beam is a speculative, risky stock. But the potential for its base-editing technology is huge. If the company's clinical studies go well, Beam will almost certainly be a multibagger down the road.
Roku is spring-coiled for a massive rally
Anders Bylund (Roku): Media-streaming technology developer Roku should report holiday-quarter results in mid-February. Earnings reports often have market-moving power, and this one looks special.
Anybody who tells you they know exactly what will happen on the stock market in the future is selling something. However, Roku's fourth-quarter report seems likely to crush Wall Street's extremely low expectations, based on evidence from Netflix (NASDAQ: NFLX).
The video-streaming veteran and longtime Roku partner, formerly known for its iconic red DVD mailers, collected 7.7 million net new subscribers in the fourth quarter. Furthermore, Netflix's management said it was "pleased" with its recently launched ad-supported streaming plan.
That's good tidings for Roku. Keep in mind that weak digital advertising sales and slower subscriber growth across the streaming segment inspired the stock's deep dip in 2022.
Microsoft seemed to undermine this bullish message the week after Netflix's update when it reported "lower than expected" sales of online advertising. However, Microsoft's disappointment still referred to double-digit-percentage growth.
And Roku's stock is spring-loaded like a jack-in-the-box packed with an angry kangaroo. The share price is down 70% from 52-week highs and nearly 90% below the all-time peak in July 2021. Roku shares are changing hands at just 2.2 times trailing sales and 3.4 times cash on hand -- far below the valuation ratios of many traditional value stocks.
That's a big mistake, and Roku's long-term growth story should reward the brave investors who buy in at these rock-bottom prices.
Again, I can't promise that the upcoming fourth-quarter report will release the downward pressure on Roku's tightly coiled shares. But even if it doesn't, I'm sure that your future self will appreciate buying the deeply discounted shares available to your current self.
10 stocks we like better than Shopify
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*Stock Advisor returns as of January 9, 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. 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. Anders Bylund has positions in Alphabet, Amazon.com, Netflix, and Roku. Daniel Foelber has positions in Alphabet and has the following options: long February 2023 $35 calls on Shopify, long January 2025 $240 calls on Meta Platforms, long January 2025 $90 calls on Amazon.com, long July 2023 $22.50 calls on Shopify, long June 2025 $80 calls on Amazon.com, short February 2023 $36 calls on Shopify, short January 2025 $250 calls on Meta Platforms, short July 2023 $25 calls on Shopify, short June 2025 $85 calls on Amazon.com, and short March 2023 $95 calls on Alphabet. Keith Speights has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. Neha Chamaria has no position in any of the stocks mentioned. Trevor Jennewine has positions in Amazon.com, Roku, and Shopify. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Beam Therapeutics, Meta Platforms, Microsoft, Netflix, Nio, Roku, Shopify, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The leading e-commerce software vendor Trevor Jennewine (Shopify): Soaring inflation has put many retailers in a tough spot, simultaneously creating a headwind to consumer spending while providing a tailwind that boosts operating expenses. In this vein, the ETF does an excellent job of making sure initial-position sizing is under control while leaving room for investors to then add larger stakes in their favorite companies through individual stocks. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Beam Therapeutics, Meta Platforms, Microsoft, Netflix, Nio, Roku, Shopify, and Vanguard Index Funds-Vanguard Growth ETF.
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Daniel Foelber has positions in Alphabet and has the following options: long February 2023 $35 calls on Shopify, long January 2025 $240 calls on Meta Platforms, long January 2025 $90 calls on Amazon.com, long July 2023 $22.50 calls on Shopify, long June 2025 $80 calls on Amazon.com, short February 2023 $36 calls on Shopify, short January 2025 $250 calls on Meta Platforms, short July 2023 $25 calls on Shopify, short June 2025 $85 calls on Amazon.com, and short March 2023 $95 calls on Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Beam Therapeutics, Meta Platforms, Microsoft, Netflix, Nio, Roku, Shopify, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple.
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Shopify (NYSE: SHOP), the Vanguard Growth ETF (NYSEMKT: VUG), Nio (NYSE: NIO), Beam Therapeutics (NASDAQ: BEAM), and Roku (NASDAQ: ROKU) have that kind of potential. Daniel Foelber has positions in Alphabet and has the following options: long February 2023 $35 calls on Shopify, long January 2025 $240 calls on Meta Platforms, long January 2025 $90 calls on Amazon.com, long July 2023 $22.50 calls on Shopify, long June 2025 $80 calls on Amazon.com, short February 2023 $36 calls on Shopify, short January 2025 $250 calls on Meta Platforms, short July 2023 $25 calls on Shopify, short June 2025 $85 calls on Amazon.com, and short March 2023 $95 calls on Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Beam Therapeutics, Meta Platforms, Microsoft, Netflix, Nio, Roku, Shopify, and Vanguard Index Funds-Vanguard Growth ETF.
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Yet Nio launched the models it planned to in 2022 and delivered a record number of EVs in the fourth quarter, up 60% year over year. What makes Beam special? The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Beam Therapeutics, Meta Platforms, Microsoft, Netflix, Nio, Roku, Shopify, and Vanguard Index Funds-Vanguard Growth ETF.
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Japan's Nikkei tracks Wall Street higher, U.S. events in focus
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https://www.nasdaq.com/articles/japans-nikkei-tracks-wall-street-higher-u.s.-events-in-focus
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TOKYO, Jan 30 (Reuters) - Japan's Nikkei index rose on Monday, tracking Wall Street's climb in the previous session, although the gains were capped by caution ahead of the Federal Reserve's meeting and domestic corporate earnings announcements.
The Nikkei share average .N225 was up 0.33% at 27,473.75 by the midday break, while the broader Topix .TOPX inched 0.14% higher at 1,985.42.
The week is filled with market-moving cues, so investors are being more cautious, said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
"I am unsure if this (upbeat) momentum will continue this week. Investors are cautious and could sell stocks to book profits ahead of the Fed meeting, U.S. employment data as well as domestic corporate results."
Wall Street rose on Friday, marking the end of a rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of the U.S. Federal Open Market Committee (FOMC) this week. .N
A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others.
Investors are also reacting to Japanese corporate outlook as the earnings season reaches its peak this week.
Fanuc 6954.T jumped 4.25% after the robot maker raised its annual operating profit outlook and announced a 5-for-1 stock split.
Shin-Etsu Chemical 4063.T, up 4.48%, posted a fourth straight session of gains as the silicon wafter maker raised its annual operating profit outlook.
Japanese semiconductor equipment makers showed muted reaction to news that Washington had made progress towards a deal to curb exports of some advanced chip-making equipment to China with several governments.
Tokyo Electron 8035.T rose 0.54% and Advantest 6857.T inched up 0.21%, while Nikon 7731.T rose 0.48%.
(Reporting by Junko Fujita; editing by Uttaresh.V)
((junko.fujita@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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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index rose on Monday, tracking Wall Street's climb in the previous session, although the gains were capped by caution ahead of the Federal Reserve's meeting and domestic corporate earnings announcements. Investors are cautious and could sell stocks to book profits ahead of the Fed meeting, U.S. employment data as well as domestic corporate results."
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index rose on Monday, tracking Wall Street's climb in the previous session, although the gains were capped by caution ahead of the Federal Reserve's meeting and domestic corporate earnings announcements. Fanuc 6954.T jumped 4.25% after the robot maker raised its annual operating profit outlook and announced a 5-for-1 stock split.
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index rose on Monday, tracking Wall Street's climb in the previous session, although the gains were capped by caution ahead of the Federal Reserve's meeting and domestic corporate earnings announcements. Wall Street rose on Friday, marking the end of a rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of the U.S. Federal Open Market Committee (FOMC) this week.
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.N A string of high profile earnings reports are on tap globally, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. TOKYO, Jan 30 (Reuters) - Japan's Nikkei index rose on Monday, tracking Wall Street's climb in the previous session, although the gains were capped by caution ahead of the Federal Reserve's meeting and domestic corporate earnings announcements. The Nikkei share average .N225 was up 0.33% at 27,473.75 by the midday break, while the broader Topix .TOPX inched 0.14% higher at 1,985.42.
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2023-01-29 00:00:00 UTC
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GLOBAL MARKETS-Asia shares welcome China back, ready for rate hikes
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By Wayne Cole
SYDNEY, Jan 30 (Reuters) - Asian shares edged higher on Monday into a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.
Earnings from a who's who of tech giants will also test the mettle of Wall Street bulls, who are looking to propel the Nasdaq to its best January since 2001.
Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January so far at a nine-month high.
Early Monday, the index was up 0.2%, while Chinese blue chips .CSI300 climbed 1.3% after returning from the holidays.
Beijing reported Lunar New Year travel trips inside China surged 74% from last year, though that was still only half of pre-pandemic levels.
Japan's Nikkei .N225 added 0.3% and Taiwan .TWII 3.1%. S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.2%, while EUROSTOXX 50 futures STXEc1 dipped 0.1% and FTSE futures FFIc1 barely budged.
Investors are confident the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.
Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done.
"With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
"We also look for him to continue to push back against market pricing of rate cuts later this year."
There is a lot of pushing to do given futures 0#FF: currently have rates peaking at 5.0% in March, only to fall back to 4.5% by year end. FEDWATCH
EYEING APPLE
Yields on 10-year notes US10YT=RR have fallen 31 basis points so far this month to 3.52%, essentially easing financial conditions even as the Fed seeks to tighten.
That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys.
As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others.
"Apple will give a glimpse into the overall demand story for consumers globally and a snapshot of the China supply chain issues starting to slowly abate," wrote analysts at Wedbush.
"Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added. "Apple will likely cut some costs around the edges, but we do not expect mass layoffs."
Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.5% =USD so far this month against a basket of major currencies.
The euro is up 1.4% for January at $1.0870 EUR=EBS and just off a nine-month top. The dollar has even lost 0.7% on the yen to 130.10 JPY=EBS despite the Bank of Japan's dogged defence of its uber-easy policies.
The drop in the dollar and yields has been a boon for gold, which is up 5.6% for the month so far at $1,928 an ounce XAU=. GOL/
China's rapid reopening is seen as a windfall for commodities in general, supporting everything from copper to iron ore to oil prices. O/R
Brent LCOc1 was up 32 cents at $86.97 a barrel, while U.S. crude CLc1 rose 26 cents to $79.94.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Christopher Cushing)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. By Wayne Cole SYDNEY, Jan 30 (Reuters) - Asian shares edged higher on Monday into a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go. "With U.S. labor markets still tight, core inflation elevated, and financial conditions easing, Fed Chair Powell's tone will be hawkish, stressing that a downshifting to a 25bp hike doesn't mean a pause is coming," said Bruce Kasman, chief economist at JPMorgan, who expects another rise in March.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Just as important will be the guidance on future policy with analysts expecting a hawkish message of inflation is not yet beaten and more needs to be done. "We also look for him to continue to push back against market pricing of rate cuts later this year."
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. Asia has been no slouch either as China's swift reopening bolsters the economic outlook, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 11% in January so far at a nine-month high. S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.2%, while EUROSTOXX 50 futures STXEc1 dipped 0.1% and FTSE futures FFIc1 barely budged.
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As for Wall Street's recent rally, much will depend on earnings from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among many others. "We also look for him to continue to push back against market pricing of rate cuts later this year." Market pricing of early Fed easing has been a burden for the dollar, which has lost 1.5% =USD so far this month against a basket of major currencies.
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2023-01-28 00:00:00 UTC
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What's Going on With REITs? An Investors Guide
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https://www.nasdaq.com/articles/whats-going-on-with-reits-an-investors-guide
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In this podcast, Motley Fool analyst Deidre Woollard and Motley Fool contributor Matt Frankel discuss:
How REITs differ from stocks.
Publicly traded REITs vs. private REITs.
One office REIT that's evolving.
Ways to spot a yield trap.
REITs benefiting from e-commerce trends.
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 Walmart
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Stock Advisor returns as of January 9, 2023
This video was recorded on Jan. 21, 2023.
Matt Frankel: The whole premise of a REIT is that it's not economical for all of these businesses to own their own real estate. It's not economical for companies like Walgreens to own the buildings they operate in, which creates an opportunity for companies like Realty Income. There's a whole bunch of examples like that where it just doesn't make sense to own your own real estate. That's one thing that I think the market's really overlooking when it comes to data centers.
Chris Hill: I'm Chris Hill and that's Motley Fool contributor Matt Frankel. Despite a down market, some real estate trends aren't going away. That's part of what Deidre Woollard and Matt discuss in this episode, along with the fundamentals of REITs, how to spot a yield trap, and investment ideas in warehousing, retail, and a couple of ETFs.
Deidre Woollard: Not a great year for REITs in 2022. The FTSE, the all-equity REIT number for the year, that came in at a negative 24.95%. That's not great. It's below the S&P, it's below the Dow. Not as bad as the Nasdaq, tech had a worse year than REITs, but 2021, REITs were total rockstars. Usually, REITs are the steady part of my portfolio. What's the story here? What's the volatility? Why did this happen this way?
Matt Frankel: You're right in the sense that REITs usually aren't so volatile, but you have to remember that neither are interest rates. Interest rates have been particularly volatile this year. Usually REITs move a whole lot slower than they have over the past year. It's really rare for, say, the mortgage rate to double in a single year. REITs are very rate-sensitive instruments. They're designed to pay out steady income, and income-focused investments generally are very sensitive to changes in yields. When you think about it this way, if the 10-year Treasury is paying 2%, a REIT index fund that's paying 4% seems pretty appealing to income investors.
But if the 10-year Treasury that's risk-free is paying 4%, all of a sudden, a 4% yield from a REIT fund might not seem that appealing. In order for REITs to keep up with the market, rates have to rise, the yields have to rise, and because yield and price have an inverse relationship, it generally puts a lot of pressure on REIT prices, and that's really what we saw in 2022. It wasn't that the businesses were doing poorly, we didn't see massive amounts of tenants not paying their rent, we didn't see a lot of vacancies, if anything, REITs business-wise did better than they had been. But it's really a function of just the yield environment and what it does to income investments.
Deidre Woollard: Well, that's a really good point. Another thing about REITs is the impact of interest rates in terms of trying to keep buying new properties. Looking forward, do you think that we're going to see more mergers and acquisitions or more acquisitions in general? Is the cost of capital too high for REITs right now?
Matt Frankel: There's actually a lot to unpack in the cost of capital. When you think about it, there's two different ways that REITs generally fund their growth. Three, but the two main ways are by selling new shares, which I mentioned when yields rise, REIT prices go down, so it's less desirable to sell shares and dilute shareholders to raise money that way. Or they can take on debt, which as you mentioned, is at a much higher interest rate. Growth becomes a little more difficult in this environment. The third way is using some of the cash flow that you're not required to pay out as dividends in order to fund growth. That's usually a minor way to fund growth for REITs.
REITs with a lot of cash on their balance sheets going into this are in very good shape. That's where you're starting to see a lot, and you're starting to see a lot of private equity takeovers of REITs over the past year. Just some of our favorites, unfortunately, got taken out over the past year, American Campus Communities, STORE Capital is about to go private. These are going private because one, private equity investors or alternative asset managers are seeing a lot of demand for investments that aren't stocks right now, which isn't a big surprise because of what the market is doing, people are like, get me out of here, let's get into something that's a little more stable and predictable or at least that I don't have to look at the price every day.
You're seeing a lot of demand on the private equity side. You're seeing a lot of take-private transactions. As far as mergers and acquisitions, I could see it coming back a little bit in 2023, a lot of REITs are very financially strong. REITs that have A credit ratings can still borrow relatively cheaply, but as far as just the flurry of M&A and the flurry of debt issuance and rapid growth that we saw over the past decade or so, actually, I'm expecting muted growth in 2023.
Deidre Woollard: When you say muted growth, what does that also mean for the dividends? Because that's one thing that people are looking at with REITs. Obviously, you just talked about 2022 being not-so-great. Should we be looking for better dividend performance going forward?
Matt Frankel: Well, a lot of them raised their dividend significantly in 2020. Think of industrial REITs that are getting 30% more for the same leases than they were before the pandemic. They've passed some of that onto their shareholders. The general goal with REITs is you don't think of it in terms of a year-to-year dividend increase, you want your income to grow over time. The general goal when I invest in a REIT is that I want to see its dividend rise at an annualized rate of 4%-5% over the long run. That's what I aim for and I consider that to be strong dividend growth.
Remember, REITs have to pay out 90% of their taxable income, but there's a lot more to that than a lot of investors realize. This doesn't mean that if a REIT makes a dollar in profit per share, they have to pay out 90 cents of it. They have to pay out 90 cents of their taxable income, which can actually vary a lot from year to year. REITs have the tax deduction of depreciation, which in a lot of cases can chop their earnings in half for tax purposes, even though they're making a lot more money. But with that in mind, REITs are still making money. But I'm expecting, I hate to use the word muted again, but muted dividend increases this year. Because of that high cost of capital, it's putting a strain on growth.
If a REIT doesn't have to give a 5% dividend increase, if they can keep their streak alive with a 2% increase and satisfy the requirements to remain a REIT by handing out at least 90% of its taxable income, from a REIT's perspective, that's a way to retain some of its earnings and reinvest that in growth instead of diluting shareholders by issuing new shares or taking on more debt or things like that. I'm expecting REITs to raise their dividends just enough this year to keep their dividend streak alive, but nothing like the 10% dividend increases that you've seen in some recent years.
Deidre Woollard: That makes sense. I like the way you framed that, how it's a bit of a balancing act for REITs trying to keep all of those things equal and still deliver on what people expect, which is of course those steady dividend increases. I'm excited to talk about sectors with you, and especially I wanted to talk about office because I feel like you and I have had this conversation for so long and I love having it with you, but I want to take it in different direction this time. I want to talk about one of your favorite REITs, Empire State Realty Trust. For those of you who don't know, this is one of Matt's favorites. It owns the Empire State Building and a lot of other buildings, but it's doing something interesting that other office REITs are also doing which is getting into other sectors. If office isn't dead, but office is shifting, does it make sense for some of these bigger office REITs to look at differently, do they need to change up their property mix?
Matt Frankel: First of all, you hit the nail on the head with the office isn't dead, but it's different. You have to be a lot more selective than you used to. I would compare that to say the calls that the mall is dead five years ago. The mall wasn't dead, people just wanted to go to the good malls. You saw Simon Property Group is doing off-the-charts well, which we'll talk about later in the show. But the regional malls got hammered, even the decent quality regional malls got hammered. The same thing is starting to happen with offices. If there's something special about an office property, be it the location, the history like the Empire State Building, you're still seeing a lot of tenant demand for office space.
It would be nice if someone had been saying this all along, but employers are starting to realize that there is an element of productivity and collaboration that comes with being in person in the office. You're starting to see more and more of the companies that said they were going to be remote forever start to switch to you need to be in the office two days a week if it's practical, things like that. Office isn't dead, companies want office space. There's a big element of collaboration there. They have to be selective. But on the second point of should office REITs start to buy other things like you mentioned, Empire State and their apartments, it is a good time to do some, what I'd call opportunistic diversification.
At the time when Empire State bought its apartment buildings that you're referring to, a lot of people were saying that inner-city apartments were dead. No one's going to want to live and pay New York City prices if they don't have to live in the city because they can work remotely. From everything I can tell, just analyzing it, they got a deal for those properties. I think that diversification, especially when it's opportunistic like that, is a good thing. Office REITs should do what they're comfortable with. An office REIT, just because their properties aren't doing well, shouldn't just run out and buy a mall, because that's not in their circle of competence. Empire State in particular knows New York City very well, and they're not buying an apartment building in Albuquerque, they're buying apartment buildings that are right around the corner from their office buildings, areas they know very well that they can analyze very well, their managers live around the corners from, that's their circle of competence, is New York.
It's not necessarily office because their office buildings have retail elements, they have entertainment elements to it. The observatory on top of the Empire State Building. They have experience with a few different property types, but all within the context of the New York City metropolitan area, which is where they're sticking to. The short answer to the question is yes, diversification is probably a smart move for them with the office uncertainty, but I don't think office is dead, and I think if you have the knowledge, it's really a nice luxury to have three or four different avenues that you could direct your capital to when you see opportunities.
Deidre Woollard: I like what you said there. I think it's a good reminder for investors that anytime you see the headlines of something is dead, don't immediately agree. Question that, look around. I also like what you said about how REITs need to know what they're good at and what they're good at might not be just what you see on the surface in terms of sector. I wanted to talk about another sector I'm thinking a lot about lately and that's multifamily.
You just mentioned it with Empire State Realty, it's going to be an interesting year for multifamily. Rents have been up, but they're slowing, vacancies are rising. There was a report recently from CoStar from their Apartments.com about absorption, absorption of newly built units that has been slowing down, and yet we also have the housing shortage. Some of this is, I think that we're building a little too much at the high end of things, but it's going to be an interesting year for multifamily. What are you seeing?
Matt Frankel: You mentioned that CoStar report where they said limited absorption of newly built units is driving up vacancies, that's generally at the higher end. You're seeing the worst hit at the higher end. The housing shortage, we've all heard the headlines, there's a shortage of about 4 million housing units, give or take, depending on which report you are reading. What people don't realize, it's almost exclusively starter homes that are just non-existent and that's on the rental and ownership side. Let me just give a couple of statistics that I find really just mind-blowing. In the 1970s, the average rate of construction of entry-level homes, which we generally define as under 1,400 squire feet, enough space for a new family and things like that, was about 418,000 per year in the United States.
By the '90s, that had been cut in half to about 207,000 in the average year in the 1990s. In the 2010s, the past decade, the most recent decade, 55,000 a year, almost about 1/9th of what it was in the 1970s. It's pretty much stabilized at that for now in 2022, 65,000 so-called starter homes have been built. But in 2020, 65,000 starter homes had been built, but there were 2.4 million first-time homebuyers in the market. People were buying a lot of house, and now that the mortgage rates are higher, home prices are higher, it's a lot more difficult to afford that, we're starting to see a trend in the other direction, but there's not enough being built. Short answer to your question is that we need more entry-level housing units and we need rent to stabilize.
Rent, it's starting to pull back a little bit, but I wouldn't call it stable in any way. If you look at a chart of rent prices in the U.S., it looks like a checkmark right now, it doesn't look like any type of flat graph that you up and then just down. Rent needs to stabilize and we need to see a lot more entry-level units, especially even on the apartment side of things. We've spent a lot of time talking about built-for-rent housing, but the average built-for-rent home right now is about 2,500 square feet. It's still an expensive place to live, and it's pricing a lot of people who need homes out of the market. It's all about entry-level homes. I think entry-level housing construction in general is going to be a massive investment opportunity over the next decade or two.
Deidre Woollard: You and I have talked before about where that housing is, too, and the migration that we were seeing certainly before the pandemic, but increasingly during the pandemic. We've talked about the Sun Belt, it's always the Sun Belt. Although some of those markets got too hot, too fast, I'm thinking about Austin, Texas, but some of the markets have longer-term staying power, certainly in North Carolina and around the Research Triangle. It's important to, I think, to think about where the housing is, where we're going, where population is growing. It's a complicated thing. I think it's something that we're talking about publicly traded REITs.
But I wanted to shift a little bit because the non-traded REITs are trying to figure this out, too. With Blackstone's, they recently paused redemptions. For the non-traded REITs, it's a little different. You can't trade a like a publicly traded REIT, you have to redeem your shares. Usually this happens pretty regularly, but it's almost a little bit like a bank run. I hate using that phrase. But is there a high-profile redemption like little bit of panic going on? Is that anything that would bleed over into the public REIT market in terms of how people are considering REITs?
Matt Frankel: A redemption pause is a necessary evil for private REITs, I would say. It prevents them from having to sell a lot of properties to cover redemptions at fire-sale prices. If I were to tell you you have to sell your house within the next 10 days to get the money, you probably wouldn't get full market value for it. It prevents them from having to sell assets when they don't want to and things like that, but I also think it tells us that public REITs are the way to go for 99% of investors. It's something that you just don't like to see.
You want a REIT because you want access to your money. If I want an illiquid real estate asset, I'll buy a rental property. This would be like if Vanguard said you can't redeem its mutual funds. Obviously, that's a gigantic scale, if Vanguard said we don't have the money for redemptions that would crash the market. But it's the same idea, where you are saying, we don't want people to pull their money out of the fund as quickly, let's hold off. But for me, it's one of the big reasons why I invest in rental properties and publicly traded REITs. The private REITs are in that middle ground. They can be very lucrative investments if you don't care about liquidity.
Deidre Woollard: I invest in some of the real estate crowdfunding, Fundrise and RealtyMogul, and we haven't heard anything major on those yet, but definitely I know that that's something that they're looking at, too. Our producer had a question that I think is worth considering, which is real estate trends that aren't going away, and I'm going to start with one, industrial real estate. As we're taping this, Prologis had their earnings today, and a lot of companies are, they scaled back their use of warehouses last year, certainly most famously Amazon. I'm not worried about industrial in the long term. What trends are you watching that you think aren't going away?
Matt Frankel: First of all, I totally agree with you on industrial demand for warehouses is strong, and fulfillment spaces, things like that are very strong from the long term, but they can be rather cyclical, and they tend to anticipate cycles rather than react to them. What I mean by that is you're seeing a lot of operators like Amazon and things like that, they're getting hesitant to invest in new warehouse space at a time when they think the consumer is going to stop spending. It can be cyclical, but the long-term trend is fine. Data centers are another example of one that I think gives a great opportunity right now because that is massive long-term trends.
Forget the short-seller calls. I know Jim Chanos has come out publicly and said that the data centers are his big short, I don't buy it. His thesis is that the tech companies are going to start bringing data centers in-house, they don't want that capital commitment. Maybe like the Apples of the world, don't care and have hundreds of billions of dollars to build their own data centers. But the tech start-ups that pride themselves on being asset-light businesses are not going to shy away from data centers. They might stop spending for the next year or two similar to industrial tenants. They might stop investing in growth in times of uncertainty, but your long-term that trajectory is still very positive.
Deidre Woollard: I love that, too. I've been thinking about the data centers, too, totally agree with that because I think it's akin to industrial. Amazon is a huge tenant of industrial REITs, but they also build their own. With data centers, it's the same thing. Alphabet and Meta, they build their own data centers. At the same time, they're also tenants of the data center REITs because they want that flexibility and that's important. They don't want it all on their shoulders for some really good reasons.
Matt Frankel: It's the same reason that Facebook doesn't own most of the office buildings it's in, it leases them. It wants to keep its capital commitments low, even though it could afford to buy them. But the whole premise of a REIT is that it's not economical for all of these businesses to own their own real estate. It's not economical for companies like Walgreens to own the buildings they operate in, which creates an opportunity for companies like Realty Income. There's a whole bunch of examples like that where it's just doesn't make sense to own your own real estate. That's one thing that I think the market is really overlooking when it comes to data centers.
Deidre Woollard: Well, you teased it earlier in the show talking about retail, so let's go into that a little bit. Last year, a great year for retail, great year for foot traffic. We kept using the term "revenge spending," but people wanted to go back to the malls certainly, but they also wanted to go back to the grocery stores, which I thought was interesting. Everybody got their Instacart accounts, but when they could, they wanted to go back and do more shopping. I've got favorites in both the shopping center side and the mall side, and I think you mentioned Simon, we both share that one, what else are you watching when it comes to retail?
Matt Frankel: Well, for one thing, it wasn't just the foot traffic was up. It's that we saw occupancy for the first time in a long time trending the right direction. One that I follow his Tanger Outlets which along with Simon dominate the outlet industry. Simon's No. 1 by far with its premium outlets, and then Tanger is the big stand-alone, ticker's SKT on that one. They're both doing great, not just in terms of foot traffic they are, both of their tenants have never been making more money per square footage basis, which allows them to raise rent, but their occupancy is trending in the right direction as well. The outlet industry is very conducive to the e-commerce shift we're seeing.
It's a much more economical way for retailers to maintain a vast physical presence without having to pay high-end mall rent. Outlets are generally very cheap rent-wise compared to space in a mall. One of the reasons that both premium outlets -- you know, Simon -- and Tanger have been raising occupancy is that they're bringing companies that historically don't have an outlet presence into their system. We've talked about the malls being dead. The malls aren't dead, the high-end malls are fine, but the mid-level malls, a company like Abercrombie & Fitch, might start closing some of its underperforming stores in mid-level malls, and shifting more of those resources to outlets where it can be a much more economical way to have that physical presence. I'm very bullish on the outlet space. Companies that just generally have an online presence are starting to open up outlets.
Companies that are big-box stores are starting to open up smaller outlets to get rid of merchandise that they need to get rid of. Dick's Sporting Goods opened its first outlet during COVID in a Tanger property. For me, outlets are the area of retail that I'm most bullish on over the next, say, 20 years, but if you're worried about cyclicality, if you're worried about recessions, the grocery anchored, like you mentioned, is a fantastic way to go and that's one that's just not going anywhere. Now, you have to be selective. It's just like the malls where you want your properties located in good areas, you want them to be relatively young, you don't want a REIT full of old strip malls that just happened to grocery stores in them. Kimco's, one of my favorites in that space, KIM, that's probably what you were going to say, but I think Tanger is probably my favorite retail stock right now in terms of real estate and with Simon and Kimco being a close second and third.
Deidre Woollard: As we wrap up here, if you're an investor and you're starting with REITs, we've talked about different sectors, does it make sense to just go for an ETF or should you try to pick a favorite in each sector?
Matt Frankel: Well, picking favorites is definitely good if you have a good working knowledge of the stock market in general and how to evaluate REITs. I know we have some good guidance on the Fool. As far as the ETF route, there's absolutely nothing wrong with that, and it's a great way to add diversification if you're say, mostly a tech-focused growth investor, adding a REIT ETF can be a good move. I'll tell you, too, that I really like for beginners, there's the Vanguard Real Estate ETF that I mentioned a lot. VNQ is the symbol on that one. The biggest problem with that is it's very top-heavy. There are some really big REITs like American Tower, Crown Castle, Prologis, Equinix, but then there's a lot of really small ones.
I don't know the exact percentage off the top of my head, but it's something like 30 percent of that fund's assets are concentrated in like four companies. If you don't want that kind of exposure, Invesco does have an equal-weight real estate ETF that invests in the exact same index. The ticker symbol for that one is EWRE, and it splits the money equally. A company like Prologis has the same weight as say, Simon Property Group, which is a couple of times smaller than it. An equal-weight fund could be a nice option for newer investors if they don't want that much exposure to say the big communications REITs because that's really what the big ones are. They're all very similar in nature and you would have very limited exposure to things like retail REITs like we're talking about, which tend to be relatively small compared to those.
Those are two ETFs that are perfect for beginners. REITs are nice sector where it's not that tough to find stable companies. It's not like investing, if I wanted to buy say, cybersecurity stocks, it's a lot tougher to pick the winners, pick the companies that are still gonna be here in 10 years, things like that. In the real estate sector, it's not, and that's a luxury that newer investors can use to their advantage. It's less guesswork. A company, like would we mention Prologis, what's the chances that Prologis will zero X in the next 10 years. It's almost nil. I actually would call real estate probably the most beginner-friendly sector in the stock market.
Deidre Woollard: I would definitely agree with that, although I think they're absolutely ways you can still get yourself into trouble just like any other sector.
Matt Frankel: Absolutely. Stay away from yield traps. If a REIT that owns properties yields more than say, 7% or 8% and there's not a really good reason why, you should probably stay away from it. Yield traps are the way you get in trouble in real estate.
Deidre Woollard: That is really good advice. As we wrap up, I want to pivot away from the beginner and to something like, if you want something risky, there are things in real estate, they can be a little riskier, maybe as a smaller REIT or something like that, what's something you would maybe look at?
Matt Frankel: The riskier REIT that I'm looking at right now is Innovative Industrial Properties. That's known as the marijuana REIT. They own legalized marijuana production facilities mainly. It's mostly in industrial REIT and they rent out to those very specific group of tenants. The risk is, what happens if one of those tenants goes bankrupt, which one of them just did? The re-leasing and everything like that can be very tricky. Those are very purpose-built facilities. It can be very tough to re-lease those.
But having said that, the operators that they do have signed 15- to 20-year leases, so as long as they're in business, it's going to be a very steady income stream, it's really a well-run company, but it's one that does have its risks. For example, their tenants are generally outside of the main banking system. They're usually cash businesses. Right now, marijuana is still federally illegal, so they're tenants can open an account at Bank of America for their businesses. There are some unique risks, but after, I think it's down like 70% from the highs right now, and still making very good profits. It's one that I'm watching very closely right now.
Deidre Woollard: That one is interesting because it got so caught up in that cannabis hype cycle that I think it went up a lot more than it should have and then it went down with the cannabis hype cycle, which happens because sometimes people, when they get caught in the hype cycle, they don't look at the underlying fundamentals. I liked that you bring that one up. I think they have an interesting way of expansion, too.
Matt Frankel: There are a bunch of interesting ones on the radar right now, but most of the REITs I like aren't that risky. It's just that they're beaten down and paying great dividends because of that yield sensitivity that I mentioned. There are some great REITS right now paying 6% or 7% dividends with a lot of growth potential. So I don't really need to venture too much into the realm of the risky right now. Investors can get great returns just by staying safe.
Chris Hill: As always, people on the program may have an 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.
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 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Alphabet, Amazon.com, American Tower, and Apple. Deidre Woollard has positions in Alphabet, American Tower, Apple, CoStar Group, Empire State Realty Trust, Meta Platforms, Prologis, and Simon Property Group. Matthew Frankel, CFP® has positions in Amazon.com, Bank of America, Empire State Realty Trust, Realty Income, Simon Property Group, and Tanger Factory Outlet Centers. The Motley Fool has positions in and recommends Alphabet, Amazon.com, American Tower, Apple, Bank of America, Blackstone, CoStar Group, Crown Castle, Equinix, Innovative Industrial Properties, Meta Platforms, Prologis, and Vanguard Specialized Funds - Vanguard Real Estate ETF. The Motley Fool recommends Empire State Realty Trust, Simon Property Group, Store Capital, and Tanger Factory Outlet Centers 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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That's part of what Deidre Woollard and Matt discuss in this episode, along with the fundamentals of REITs, how to spot a yield trap, and investment ideas in warehousing, retail, and a couple of ETFs. Matt Frankel: You mentioned that CoStar report where they said limited absorption of newly built units is driving up vacancies, that's generally at the higher end. In the 1970s, the average rate of construction of entry-level homes, which we generally define as under 1,400 squire feet, enough space for a new family and things like that, was about 418,000 per year in the United States.
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Deidre Woollard has positions in Alphabet, American Tower, Apple, CoStar Group, Empire State Realty Trust, Meta Platforms, Prologis, and Simon Property Group. The Motley Fool has positions in and recommends Alphabet, Amazon.com, American Tower, Apple, Bank of America, Blackstone, CoStar Group, Crown Castle, Equinix, Innovative Industrial Properties, Meta Platforms, Prologis, and Vanguard Specialized Funds - Vanguard Real Estate ETF. The Motley Fool recommends Empire State Realty Trust, Simon Property Group, Store Capital, and Tanger Factory Outlet Centers and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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It wasn't that the businesses were doing poorly, we didn't see massive amounts of tenants not paying their rent, we didn't see a lot of vacancies, if anything, REITs business-wise did better than they had been. These are going private because one, private equity investors or alternative asset managers are seeing a lot of demand for investments that aren't stocks right now, which isn't a big surprise because of what the market is doing, people are like, get me out of here, let's get into something that's a little more stable and predictable or at least that I don't have to look at the price every day. If a REIT doesn't have to give a 5% dividend increase, if they can keep their streak alive with a 2% increase and satisfy the requirements to remain a REIT by handing out at least 90% of its taxable income, from a REIT's perspective, that's a way to retain some of its earnings and reinvest that in growth instead of diluting shareholders by issuing new shares or taking on more debt or things like that.
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Deidre Woollard: Not a great year for REITs in 2022. It's something that you just don't like to see. Last year, a great year for retail, great year for foot traffic.
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2023-01-28 00:00:00 UTC
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Big Banks Try to Take On Apple Wallet and PayPal
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AAPL
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https://www.nasdaq.com/articles/big-banks-try-to-take-on-apple-wallet-and-paypal
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
Spotify announcing layoffs.
Seven large banks combining forces to create a digital wallet product.
How and why Apple and PayPal have such a large lead in this industry.
In addition, Motley Fool senior analyst Asit Sharma and Motley Fool producer Rickey Mulvey discuss corporate governance and an under-the-radar pop culture company going through some fundamental changes.
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 Apple
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This video was recorded on Jan. 23, 2023.
Chris Hill: The big banks are teaming up. It's like The Avengers, but instead of superpowers, they've got Excel spreadsheets. Motley Fool Money starts now. I'm Chris Hill, joining me today, Motley Fool senior analyst Jason Moser. Thanks for being here.
Jason Moser: Hey, thanks for having me.
Chris Hill: We're going to get to the big banks in a minute, but let's start with Spotify. The audio streaming company became the latest to announce layoffs in what is now becoming a common refrain. Spotify CEO Daniel Ek said the company was overly ambitious in it's hiring and investments during the pandemic and is going to be reducing head count by 6%, which is about 600 employees. This one hits a little bit closer to home for me because we've been working with Spotify as our partner on the new Stock Advisor Roundtable podcast and they've been fantastic to work with. Hopefully, this next stage goes as smoothly as it possibly can for them. But at a higher level, Jason, this is really what we've been seeing over the past couple of months and we are almost certainly going to be seeing more of this.
Jason Moser: Yeah, it sounds like I think was sounding like a broken record. This is going to be a theme for the first half of the year. We say that I think every week. This is not surprising to see this. It is just one more domino to fall, I guess. This is coming as Ek puts it from the angle of efficiency and eliminating redundancies, which makes a lot of sense. I think a lot of businesses out there are suffering from that right now. When you consider some of the metrics that matter here, it makes a lot of sense. Now in his memo, he did note that in 2022 the growth in Spotify's operating expenses outpaced the revenue growth by a factor of two. With a business like this, you don't want to see, that's a bad, that is a no. If you look at over the stretch of time here, how they've grown their employee base versus how they've grown their business, it starts to make a lot more sense, too.
If you go back to 2018, their 20-F quotes an average of 3,651 employees over the course of the year. In 2021, that number goes to 6,617 If you look at now, it's around 9,800. With expectations of $12.7 billion in revenue, we start to get an idea of the efficiencies that this company is wringing out. Unfortunately, it's going in the opposite direction of what investors should be hoping for. If you look at 2018 and 2021, for example, I mean the revenue per employee clocks in at around $1.6 million. That's fine. You look at now though, I mean, that number is going to come in closer to $1.3 million. And the bottom line remains challenged. Now part of that is because of content costs. Content costs are always going to be the shadow that looms large over this business. But they don't need a bloated employee base adding salt to that wound, so to speak. That's what gets us to where we are today with these job cuts.
Chris Hill: I like how you put the time frame on it because it really does seem like the way everyone is talking. When I say everyone, I'm talking about everyone. I'm talking about company executives, Wall Street analysts, analysts here at The Motley Fool, there really does seem to be this expectation that the second half of the year has the potential to be better both in terms of what we see out of the stock market and where companies are in terms of their own sizing. I know some people bristle at the term right-sizing, but it really does seem like we're setting up for that second half. Do you think we're going to start hearing more? We talk about how there's the old adage sell in May and go away. Do you think that's going to get bumped up? Like I'm steeling myself for some economists and certainly some Wall Street analysts saying, you know what just sit on the sidelines until we hit July 1st.
Jason Moser: Yeah, last year it was like sell in May, sell in June, sell in July, sell in August. It's just this perpetual selling that's been going on and it's certainly understandable. I was thinking about this morning. You try to gauge how far forward the market really does look because we're at a point right now obviously the consumer is in a tough spot and that spot is only getting tougher. You have these projections that the consumer is going to "run out of money" by the middle of the year. If you think about it from that perspective, then if we're looking at that timeline, then how is the market assessing that? Because you're right, we see a lot of job cuts coming through here over the last several months. It's no news that the consumer is in a tougher spot. At some point we get to a bottom. It definitely every day it starts to look like we're getting closer and closer to that bottom.
Then how far forward is the market looking? Like if we get to a point in the middle of the year, if that prognostication holds and the consumer runs out of money in the middle of the year and really has to start battening down the hatches and becoming more thoughtful about how they spend. If we get to that point where these businesses have ultimately right-sized themselves to the degree that it makes sense. Do we see more optimism, more glass-half-full perspective here in the back half of the year and that's going into this year that has been my mindset. It's what I wrote out in my investor letter from my services here. It seems that we're set up for a challenging first half of the year. But if this plays out the way that it looks like it is going to play out, yeah, I think it makes a lot of sense that the market would start to take a little bit more of an optimistic look on things for the back half of the year and going into 2024. Obviously, there are a lot of factors at play, but I can definitely see a world where that works out.
Chris Hill: The battle for your wallet has entered a new stage. Bank of America, JPMorgan Chase, Wells Fargo, Capital One, PNC, Truist, and US Bancorp are all teaming up to create a new digital wallet product to compete against PayPal and Apple Wallet. The goal is to make this new product available in the second half of the year. I have a few thoughts on this, Jason. I guess my first one is good luck.
Jason Moser: Yeah, that's a good first one.
Chris Hill: I'll get to my other thoughts in a second. Let's start with this. though. On a more serious note, what was your thought when you saw this story?
Jason Moser: One of the first thoughts was good luck. But really to take that to a little bit further, I don't blame them for doing this. I think it's the right thing to do. I think it could be a day late, a dollar short as they say. This is something that should have been happening a long time ago. Now what we've got is we've got some companies that have really made a lot of headway. They've invested a lot of money in this space over the course of many years. They're so far ahead of where these banks are in regard to this digital wallet-style offering. It's not to say the banks can't realize success from this, but it is going to be a slog. When you look at the numbers, I like to look at Zelle as an idea of where this could go. Zelle, I think has been successful. I think Zelle is a fine offering and it serves a very good purpose and clearly people are using it.
If you look at the numbers there, the fourth quarter of 2022, Bank of America announced that they had 18.2 million active Zelle users that sent and received 273 million transfers worth the $81 billion. If you go back to the same quarter in 2019, that was 9.7 million users with 95 million payments and about $24 billion in volumes. Clearly, it's a platform, it's a service that is growing. Now, I don't think it's the greatest platform in the world. I said earlier I tried to use Zelle a couple of separate times to transfer money. Never worked, couldn't get the accounts linked up. It was more hassle than it was worth and I listen man got, I'll try it a couple of times but I'm out, I'm done because I know there are other platforms out there at war, PayPal, Venmo Block, Cash App, all that stuff that's already out there.
That's what they're going to have to really deal with. You look at PayPal, the third quarter of 2022, they put $340 billion through that network. Venmo alone was just 64 billion of that, 430 million users and 5.6 billion transactions. That's just for the quarter. Then you look at other companies like Block, you look at what Apple Pay is doing, and you think that's a very competitive space. Again, I don't blame the banks at all for trying to get their share. But changing consumer behavior is really difficult when it becomes so ingrained. And we've been using these tools, Cash App, Apple Pay, PayPal, Venmo. We've been using them for so long and what's even more our kids are using them. You've got a whole new generation of potential customers coming online here that probably aren't going to really buy into that service because they're already so used to using these other platforms. Again, not to say it can't be successful, it's just going to be really long slog, I think.
Chris Hill: I'm glad you hit the point about essentially not blaming them for trying this because they're not just going to sit on the sidelines and say, well, this hasn't worked, we're just giving up altogether. You look at the combined customer bank base of these seven banks. That's a huge reach. That's a huge potential built-in customer base. On the flip side, the phrase, "too many cooks in the kitchen" did pop into my head when I was thinking about this, just everything from the interface. If they can pull this off in any meaningful way, you're going to have to tip your hat to them because you think about customer interface and even things like branding, just how this gets branded, how this gets rolled out to customers. This isn't just a high bar, this is actually a series of high bars. When you consider that it is seven separate banks all trying to work together and get on the same page. Yes, some are bigger than others and presumably, they'll have more sway and more say in this conversation, but this is going to be tough to pull off.
Jason Moser: Yeah. I'm glad you keyed in on that. That's going to be a big challenge, is just there's a singularity of vision with your PayPals and your Apples and your Blocks of the world. This is a consortium of competitors coming together to try to do something together, which can be difficult. It just can be difficult to do. Then further, I think the big request you'd have to ask yourself is really, what are they going to do better? What are they going to do that really differentiates them from the PayPals and Apples and Blocks of the world and in the investments and capabilities that they've already developed. Those two things alone right there, those are big questions that need to be answered. How will these banks be able to really work? Can they work together enough? Then furthermore, what are they going to do necessarily better than these others? I don't know. We'll have to wait and see there.
Chris Hill: Could be interesting to find out in the second half of the year. Jason Moser, thanks for being here.
Jason Moser: Thank you.
Chris Hill: If you're the type of investor who keeps a watch list of stocks that you're waiting to pull back a bit from their highs, then you might be interested in the list of five stocks that our team of analysts has put together. It's companies whose stocks have fallen recently, but they've got strong fundamentals and catalysts to set them up for future success. All of the details and analysis are in a new report called "Five Pullback Stocks." It's free to Stock Advisor members, just go to fool.com/pullback to access the report. That's fool.com/pullback. A public company CEO has got plenty on his or her plate without having to worry about activist investors. Let's face it, Bob Iger isn't exactly thrilled about Nelson Peltz has pushed to join Disney's board. But shareholders might be a little happier. Asit Sharma joins Ricky Mulvey to talk corporate governance and one lesser-known pop culture company that's going through some fundamental changes.
Ricky Mulvey: It's corporate governance day. Yeah, that makes it sounds like we're about to take you through some mandatory workplace training or a nice trip to the dentist. But hopefully, we've got some good takeaways for investors. Asit, when I think of corporate governance, it's basically who's on the board, what are the controls? How are you handling CEO succession planning? Anything I missed there before we keep moving?
Asit Sharma: That's going to be our focus today, Ricky, there are more objectives, right, there is that whole ESG component that's increasingly important to many investors. But at the heart of it, that's where my mind goes when I think about corporate governance, it goes first who's on the board? Why are they on the board? What is this board trying to achieve? How effective are they? Is there anything smarmy here that I should be looking for, that type of thing. I think you nailed it.
Ricky Mulvey: It's also something that I think when it's become a buzzword when there are numerical points attached to it when this is a qualitative measurement. The big corporate governance story right now is Nelson Peltz's latest battle at Disney. He thinks management has essentially got too rich of a compensation plan. He would like to see them cut expenses, get streaming to profitability, then just some criticisms about acquisitions specifically around the Fox deal. Bob Iger has not welcomed these criticisms, CEO of Disney. Is in your mind, is Nelson Peltz telling Disney anything they don't know right now, too?
Asit Sharma: Freaky, he's not telling the board anything they don't already know, and he's not telling other shareholders things that they're not already aware of. Nelson Peltz is lobbying for a seat on Disney's board. He's got this proxy challenge. Shareholders will have to vote on him as an independent director in an upcoming proxy voting process. But as controversial as many people find Nelson Peltz, I don't think this is such a bad thing for Disney shareholders. You have a voice who is quite experienced, who's calling out things to try to hold the board accountable. These are issues everyone is aware of. I want to point out, if you look at Disney's rebuttal to Trian Management's press release, Trian Management is the company that Nelson Peltz essentially runs. They list action items that Bob Iger is taking care of.
These are reorganizing the leadership structure to put more decision-making back into the hands of creative teams, implementing cost-reduction plans, prioritizing streaming profitability, and improving the guest experience at the parks by providing more value and flexibility, i.e., not jacking up prices so much and maybe decreasing them in some places. Well, these are all reversals almost to the last of initiatives that Bob Chapek, who was Bob Iger's handpicked successor put into place. Nelson Peltz has a point where he says, look, the succession planning at this company really hasn't worked out. We have another stint with an extremely capable CEO and in fact, on the Stock Advisor team, we think that Bob Iger is going to perform, but what happens next? He's got two years to not only turn the company around, but to find his successor. So maybe you want a loud and prominent voice holding you to that, holding your feet to the fire on those items.
Ricky Mulvey: Bob Iger says he's only sticking around for two years, but I think he's kicked the can on that before. I also find that history is repeating itself a little bit with the Nelson Peltz at Disney story because you have an outsider telling management things that in some cases they already know, some cases things they very much disagree with. Management saying Nelson Peltz, you have no experience in this category, this is exactly what happened at Procter & Gamble, I think it would be about five years ago during the proxy battle there and Peltz goes on the board of Procter & Gamble after kicking and screaming by shareholders and the board. Then it seems by my observation that it wasn't the atom bomb that shareholders and Procter & Gamble employees worried that it would be.
Asit Sharma: Totally Ricky. We've seen this time and again, it's like a pattern. Nelson Peltz tends to get under skin of boards of the companies he wants to join up and help lead on the board level. They seem to have a visceral reaction to him, but he's mellowed out with age, he's got a lot to bring, he's got what's called a TSR approach, total shareholder return approach, which advocates for good capital allocation, good management, he started like the crazy dad. When you go in middle-school to a friend's house for the first time in the dad's making all kinds of bad dad jokes and just looks a little off, you tell your friend like, don't worry about him, he's actually pretty normal like if you remove all this weird stuff and that's the experience. These companies fight sometimes viciously to keep them off the board, a few years later, they write about a nice little blurb that Trian Management puts on the top of its website about what a collaborative guy he is and then how good he has been for the company's performance.
Ricky Mulvey: I guess the flip side of that is that's usually when he's leaving the board as well, it's like, you've done a great job and we're so happy to see you go. His media, one of the last things I'll say on this, I think it's one of the funniest moments when Peltz goes on CNBC saying I do have media experience criticizing the corporate governance of Disney and he explains that he's served on the board of The Madison Square Garden group, which if you follow that company, is not exactly the exemplar of good corporate governance under CEO James Dolan who just for one example, banned a New York Knicks fan for life when the fans shouted at him above the tunnel, "Sell the team." I don't know if that counts. He's also implemented facial recognition technology in a lot of their venues to keep out the entire law firms of any firm that may have a suit against him.
Anyway, with that context, when David Faber pressed Peltz on his experience at MSG, he said, "At least the hockey team is doing well." It is a little bit of a game for him, which for many of the people who work at these companies and for the board of directors, I can understand why they might not take that well. I want to go to a less talked about corporate governance story, we've talked about the big headline, but this is one where Bob Iger is also involved in.
It's a pop culture company and that is Funko, which makes the vinyl bobbleheads, it has the branded backpacks and it's replaced its CEO, Andrew Perlmutter, who is still on the board, it's bringing back in the old CEO after a really bad quarter with declining margins and some cloudy guidance. What's your take on what's going on at Funko and when you see these shifting seats, do you see it as short-term in patience or do you like seeing a board reminding the executive team that they work for shareholders here?
Asit Sharma: It's interesting because Brian Moriarty, who was the former CEO and took an interim position, I think from around August of 2021, as like this creative visionary. He's been with this company for many years, he comes back as of December of last year to lead the company again. As you mentioned, the CEO who hasn't been in the chair very long, Andrew Perlmutter, he stays both on the board and on the executive team now as president. There's a little bit of backstory here in that Funko grew fairly rapidly over the past few years, even during the COVID years, it acquired a company called Loungefly, and that company started taking off. They have never quite had the operations piece in their company that they needed as they've expanded, so there's back-filling that over time, they're going to put a COO at this position to the management team.
Another part of this story is that the chief financial officer, Jennifer Jung, I hope I pronounced that correctly, is stepping down, they're going to find a new CFO. The combination of a new-ish CFO and then a person who had been around for a while and was expected to be a great CEO, that didn't work out, especially given all the macro events that happened last year with a spike in inflation and then consumers pulling back, they whiffed on what the holiday season would look like. That's not great for a small company like Funko, which by the way, Ricky has just moved all its distribution into this big, fancy new distribution center because you don't want to be holding inventory that will be slow-moving in the spring and the summer. I think that rattled shareholders and the board decided to bring back Brian Moriarty because he's been pretty good at managing inventory levels.
I think they still need both to keep Brian Moriarty involved on a strategic level, they've got to fill in an operations piece here, but I think the company will be fine. As for the short-termism, it's hard to say because you've got a problem here that you really want to rectify quickly, you want to make sure that they don't start mismanaging inventory quarter after quarter, so it makes sense on one level. But it doesn't solve the problem of how they're going to strengthen their operations long-term. This is a company which has seen, as you pointed out, or alluded to, quite a bit of investment that Chernin Group invested in Funko last year, Bob Iger now owns part of the company. They've got some really prominent people who have stepped in and taken interest in this company, so I think the board wants to make sure it's best positioned to move forward in a way that's going to be productive for both for the business results and for shareholders.
Ricky Mulvey: Yeah, when we talk about shareholders of this company, it's really the Chernin Group, which owns 25% of the shares outstanding, so in some ways that's what you're seeing, I think a heavy response to is the demands from that particular investment group, which I guess has more sway, especially for these much smaller companies where it's pretty hard to own 25% of Disney, but for a company like Funko, which is trading around, I think a little over $500 million, you can see those activists investors take a much larger stake.
Asit Sharma: True. I just want to interject there that boards and management teams also show a lot more visible perspiration when you are worried that as that major shareholder that comes in and you want to change or shake up at the sea level.
Ricky Mulvey: You can always interject, that's what you're here for Asit. Investing-y question Funko's trading at about 0.5 times sales. It's been profitable on a free cash flow basis before, still profitable on an operating income basis, these margins decline a little bit. In share count, I also want to point out, under this current board, increased by 20 percent year over year. I know you've followed it for a while, is it more interesting to you now or does it look more like a value trap?
Asit Sharma: I want to be consistent with something, I said recently in a internal presentation to some of our members for service I work on at The Motley Fool, which is they've got to prove what's going on with this new distribution footprint and what's going on with the inventory before we make any judgment calls. I'm pretty positive on this little company, I like their licensing model, I like the fact that they licensed from companies like Disney and they've got Star Wars IP that they can slap on products. At the same time, this model begs that you manage your product very carefully, so we have to take a pause here and now the stock has recovered from the hit that it took back in the late November time frame somewhat, it went all the way down to seven dollars a share it's up close to 12.
That midpoint between the bottom and where it was trading before, I feel fairly positive that Brian Moriarty will be able to right things for whatever this temporary period is. I think they will smooth out the logistical growing pains of new distribution and that should be anyway, a lot more efficient versus the multiwarehouse approach they had before. But with these cases, you have to put up the numbers and you have to show investors that you can get back off the mat when you've had to stumble. I have to reserve a little bit of what would be some enthusiastic response on this company that I like pretty much. We'll see how that inventory count looks next quarter, what the margins look like, and what the outlook is for the rest of this year.
Ricky Mulvey: Maybe next time we'll take a deep dive into the dual-class share structure, but that's all on corporate governance for today. Asit Sharma, appreciate your time and always great chatting with you.
Asit Sharma: Ricky, I can't believe we had this mandatory fun together.
Ricky Mulvey: Yes.
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.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Asit Sharma has positions in Funko, PayPal, and Walt Disney. Chris Hill has positions in Apple, Block, JPMorgan Chase, PayPal, and Walt Disney. Jason Moser has positions in Apple, Block, PayPal, and Walt Disney. Ricky Mulvey has positions in PayPal, Procter & Gamble, Spotify Technology, and Walt Disney. The Motley Fool has positions in and recommends Apple, Bank of America, Block, Funko, JPMorgan Chase, PNC Financial Services, PayPal, Spotify Technology, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These are reorganizing the leadership structure to put more decision-making back into the hands of creative teams, implementing cost-reduction plans, prioritizing streaming profitability, and improving the guest experience at the parks by providing more value and flexibility, i.e., not jacking up prices so much and maybe decreasing them in some places. The combination of a new-ish CFO and then a person who had been around for a while and was expected to be a great CEO, that didn't work out, especially given all the macro events that happened last year with a spike in inflation and then consumers pulling back, they whiffed on what the holiday season would look like. The Motley Fool has positions in and recommends Apple, Bank of America, Block, Funko, JPMorgan Chase, PNC Financial Services, PayPal, Spotify Technology, and Walt Disney.
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In addition, Motley Fool senior analyst Asit Sharma and Motley Fool producer Rickey Mulvey discuss corporate governance and an under-the-radar pop culture company going through some fundamental changes. The Motley Fool has positions in and recommends Apple, Bank of America, Block, Funko, JPMorgan Chase, PNC Financial Services, PayPal, Spotify Technology, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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I'm talking about company executives, Wall Street analysts, analysts here at The Motley Fool, there really does seem to be this expectation that the second half of the year has the potential to be better both in terms of what we see out of the stock market and where companies are in terms of their own sizing. His media, one of the last things I'll say on this, I think it's one of the funniest moments when Peltz goes on CNBC saying I do have media experience criticizing the corporate governance of Disney and he explains that he's served on the board of The Madison Square Garden group, which if you follow that company, is not exactly the exemplar of good corporate governance under CEO James Dolan who just for one example, banned a New York Knicks fan for life when the fans shouted at him above the tunnel, "Sell the team." Ricky Mulvey: Yeah, when we talk about shareholders of this company, it's really the Chernin Group, which owns 25% of the shares outstanding, so in some ways that's what you're seeing, I think a heavy response to is the demands from that particular investment group, which I guess has more sway, especially for these much smaller companies where it's pretty hard to own 25% of Disney, but for a company like Funko, which is trading around, I think a little over $500 million, you can see those activists investors take a much larger stake.
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I don't know. Chris Hill: If you're the type of investor who keeps a watch list of stocks that you're waiting to pull back a bit from their highs, then you might be interested in the list of five stocks that our team of analysts has put together. 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.
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17399.0
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2023-01-27 00:00:00 UTC
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After Hours Most Active for Jan 27, 2023 : PAA, QQQ, EPD, SNOW, LCID, TSLA, CCL, AAPL, AMZN, CVE, WFC, WES
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-27-2023-%3A-paa-qqq-epd-snow-lcid-tsla-ccl-aapl-amzn-cve-wfc
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nan
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The NASDAQ 100 After Hours Indicator is down -8.12 to 12,158.48. The total After hours volume is currently 72,331,711 shares traded.
The following are the most active stocks for the after hours session:
Plains All American Pipeline, L.P. (PAA) is -0.03 at $12.93, with 5,999,345 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is -0.17 at $296.09, with 4,820,692 shares traded. This represents a 16.45% increase from its 52 Week Low.
Enterprise Products Partners L.P. (EPD) is -0.02 at $26.51, with 4,664,347 shares traded.EPD is scheduled to provide an earnings report on 2/1/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.6 per share, which represents a 52 percent increase over the EPS one Year Ago
Snowflake Inc. (SNOW) is -0.36 at $159.00, with 3,297,991 shares traded. As reported by Zacks, the current mean recommendation for SNOW is in the "buy range".
Lucid Group, Inc. (LCID) is -0.08 at $12.79, with 2,352,849 shares traded. LCID's current last sale is 75.24% of the target price of $17.
Tesla, Inc. (TSLA) is +0.29 at $178.19, with 2,265,565 shares traded. TSLA's current last sale is 95.8% of the target price of $186.
Carnival Corporation (CCL) is +0.03 at $11.05, with 2,117,260 shares traded. CCL's current last sale is 110.5% of the target price of $10.
Apple Inc. (AAPL) is +0.02 at $145.95, with 2,089,315 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.94. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.94 per share, which represents a 210 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is -0.12 at $102.12, with 1,769,832 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 $0.35. AMZN is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.15 per share, which represents a 139 percent increase over the EPS one Year Ago
Cenovus Energy Inc (CVE) is +0.005 at $20.40, with 1,641,393 shares traded. As reported by Zacks, the current mean recommendation for CVE is in the "buy range".
Wells Fargo & Company (WFC) is -0.02 at $46.10, with 1,629,770 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 $1.19. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Western Midstream Partners, LP (WES) is unchanged at $28.20, with 1,575,034 shares traded. As reported by Zacks, the current mean recommendation for WES 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 +0.02 at $145.95, with 2,089,315 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. Plains All American Pipeline, L.P. (PAA) is -0.03 at $12.93, with 5,999,345 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.02 at $145.95, with 2,089,315 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.6 per share, which represents a 52 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.02 at $145.95, with 2,089,315 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.6 per share, which represents a 52 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.02 at $145.95, with 2,089,315 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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