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17600.0
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2023-01-13 00:00:00 UTC
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Tim Cook’s pay re-enters earth’s atmosphere
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AAPL
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https://www.nasdaq.com/articles/tim-cooks-pay-re-enters-earths-atmosphere
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nan
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nan
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Reuters
Reuters
NEW YORK (Reuters Breakingviews) - How to compensate Apple Chief Executive Tim Cook is one of the more puzzling questions for corporate governance experts. His pay has been out of this world, but then so has the iPhone maker’s share price performance. Nonetheless Apple, its investors and its board have agreed Cook’s pay should orbit closer to Earth in 2023.
The $2.1 trillion company has comfortably outperformed rivals over the past three years, with shareholder returns including reinvested dividends in the top percentile among its peers, according to Institutional Shareholder Services. Likewise, his annual compensation of $99 million in 2022 was over 4 times the median of peers, who include Amazon.com’s Andrew Jassy and AT&T’s John Stankey.
On Friday, Apple said Cook’s targeted pay will fall to $49 million. That’s an improvement, but still generous. Apple says it will target his pay between 80th and 90th percentile among peers in future years.
A bigger improvement is making Cook’s pay less of a giveaway. In 2022, half of his award of Apple stock paid out automatically over time – so all he had to do is wait. Now it’s 75% performance-based, and his unvested time-based awards lapse if he retires. This is hardly space-age stuff, but at least Apple’s pay is no longer stuck in the past. (By Robert Cyran)
Follow @Breakingviews on Twitter
Capital Calls - More concise insights on global finance:
BlackRock edges closer to its Blackstone roots
The fog lifts for Didi's path to normalcy
Inflation drop gives Fed leeway to save jobs
Gaming’s winter of discontent bolsters M&A logic
TSMC foots the bill for global chip supremacy
(Editing by John Foley and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK (Reuters Breakingviews) - How to compensate Apple Chief Executive Tim Cook is one of the more puzzling questions for corporate governance experts. Likewise, his annual compensation of $99 million in 2022 was over 4 times the median of peers, who include Amazon.com’s Andrew Jassy and AT&T’s John Stankey. (By Robert Cyran) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: BlackRock edges closer to its Blackstone roots The fog lifts for Didi's path to normalcy Inflation drop gives Fed leeway to save jobs Gaming’s winter of discontent bolsters M&A logic TSMC foots the bill for global chip supremacy (Editing by John Foley and Amanda Gomez) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK (Reuters Breakingviews) - How to compensate Apple Chief Executive Tim Cook is one of the more puzzling questions for corporate governance experts. On Friday, Apple said Cook’s targeted pay will fall to $49 million. Apple says it will target his pay between 80th and 90th percentile among peers in future years.
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On Friday, Apple said Cook’s targeted pay will fall to $49 million. Apple says it will target his pay between 80th and 90th percentile among peers in future years. (By Robert Cyran) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: BlackRock edges closer to its Blackstone roots The fog lifts for Didi's path to normalcy Inflation drop gives Fed leeway to save jobs Gaming’s winter of discontent bolsters M&A logic TSMC foots the bill for global chip supremacy (Editing by John Foley and Amanda Gomez) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Friday, Apple said Cook’s targeted pay will fall to $49 million. Apple says it will target his pay between 80th and 90th percentile among peers in future years. A bigger improvement is making Cook’s pay less of a giveaway.
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17601.0
|
2023-01-13 00:00:00 UTC
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Don't Ignore These Companies' Cash-Generating Abilities
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AAPL
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https://www.nasdaq.com/articles/dont-ignore-these-companies-cash-generating-abilities
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nan
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nan
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It goes without saying that searching for stocks can be challenging, especially with an extensive list of options available.
However, one way to cut out the bad apples is by focusing on stocks with strong free cash flow.
But what is free cash flow, and why does it matter?
In its simplest form, free cash flow is the amount of cash a company keeps after paying for operating costs and capital expenditures.
A high free cash flow allows for more growth opportunities, a greater potential for share buybacks, consistent dividend payouts, and the ability to pay off debt easily.
Three companies – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – all generate substantial cash. Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Apple
We’re all familiar with the legendary Apple, the company that’s entirely changed the mobile phone landscape, among many others. Currently, the company is a Zacks Rank #3 (Hold).
Apple is one of the biggest cash generators within the S&P 500; in its latest release, the company posted free cash flow of a sizable $20.8 billion, reflecting a sizable 23% Y/Y change.
Image Source: Zacks Investment Research
In addition, the company pays a small dividend, currently yielding 0.7% annually. While the yield is on the lower side, Apple’s 6.8% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
Verizon Communications
Verizon, one of the largest wireless carriers, offers communication and data services in various forms. As it stands, VZ is a Zacks Rank #3 (Hold).
In Verizon’s Q3, the company generated $5.2 billion in free cash flow. As we can see in the chart below, the company’s free cash flow has started to recover from 2022 lows.
Image Source: Zacks Investment Research
A significant perk of VZ shares is the dividend; Verizon’s annual dividend yields a sizable 6.2%, well above its Zacks Computer and Technology average.
And over the last five years, the company’s payout has grown by 2%.
Image Source: Zacks Investment Research
Alphabet
Another legendary company operating in the Zacks Computer and Technology sector, Alphabet, has quickly become an investor favorite. GOOGL is currently a Zacks Rank #3 (Hold).
The Google parent generated $16.1 billion in free cash flow in its latest quarter, good enough for a sizable 28% sequential increase.
Image Source: Zacks Investment Research
In addition, the company’s valuation multiples have pulled back extensively; GOOGL shares currently trade at an 18X forward earnings multiple, nowhere near the 26.3X five-year median and nicely beneath its Zacks sector average.
Alphabet carries a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Bottom Line
Searching for stocks can be overwhelming, with way too many options to sort through.
However, focusing on a company’s cash-generating abilities is a great initial screen for those interested in filtering out companies with a weak financial standing.
All three stocks above – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – carry remarkable cash-generating abilities.
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It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : 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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Three companies – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – all generate substantial cash. All three stocks above – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – carry remarkable cash-generating abilities. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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All three stocks above – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – carry remarkable cash-generating abilities. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Three companies – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – all generate substantial cash.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Three companies – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – all generate substantial cash. All three stocks above – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – carry remarkable cash-generating abilities.
|
Three companies – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – all generate substantial cash. All three stocks above – Apple AAPL, Alphabet GOOGL, and Verizon Communications VZ – carry remarkable cash-generating abilities. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17602.0
|
2023-01-13 00:00:00 UTC
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Justice Department official cleared to oversee Google probes -source
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AAPL
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https://www.nasdaq.com/articles/justice-department-official-cleared-to-oversee-google-probes-source
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 13 (Reuters) - The Justice Department's top antitrust official recently won approval from the department to oversee investigations involving Google parent Alphabet Inc GOOGL.O, a person briefed on the matter told Reuters.
The Wall Street Journal earlier reported the decision to allow Jonathan Kanter, assistant attorney general in charge of antitrust, to oversee matters involving the search engine and advertising company.
The Justice Department and Google declined to comment on Friday.
In November 2021, Google asked the Justice Department to consider requiring Kanter to recuse himself because of his work for a long list of Google critics like Yelp Inc YELP.N, which Alphabet described as "vociferously advocating for an antitrust case against Google for years."
Bloomberg News reported in May that Kanter had been barred from working on Google investigations as the department considered whether he was required to be recused.
On Wednesday, Google argued a U.S. judge should toss out a Justice Department antitrust lawsuit against it, saying agreements it made with Apple Inc AAPL.O and others to make Google the default search engine do not bar smartphone makers from promoting rivals.
The case is set to go to trial in September. If Google loses, it could be forced to spin off key assets.
In December, Google asked a court to throw out both the antitrust case that the Justice Department filed in 2020 along with 11 states as well as a related complaint brought by 35 states led by Colorado.
The Justice Department's October 2020 lawsuit alleges Google violated antitrust law in how it maintained dominance in search and search advertising. For example, it pointed to billions of dollars that Google paid annually to Apple AAPL.O, LG Electronics Inc 066570.KS and others to ensure Google search was the default on their devices.
Google faces additional allegations of antitrust violations from dozens of states. The lawsuit filed by Colorado and others, which was also filed in 2020, also alleges that Google illegally limits rivals' ability to operate its Search Ads 360 tool, used by advertisers to manage online marketing campaigns.
(Reporting by David Shepardson in Washington Editing by Matthew Lewis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Wednesday, Google argued a U.S. judge should toss out a Justice Department antitrust lawsuit against it, saying agreements it made with Apple Inc AAPL.O and others to make Google the default search engine do not bar smartphone makers from promoting rivals. For example, it pointed to billions of dollars that Google paid annually to Apple AAPL.O, LG Electronics Inc 066570.KS and others to ensure Google search was the default on their devices. By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Justice Department's top antitrust official recently won approval from the department to oversee investigations involving Google parent Alphabet Inc GOOGL.O, a person briefed on the matter told Reuters.
|
On Wednesday, Google argued a U.S. judge should toss out a Justice Department antitrust lawsuit against it, saying agreements it made with Apple Inc AAPL.O and others to make Google the default search engine do not bar smartphone makers from promoting rivals. For example, it pointed to billions of dollars that Google paid annually to Apple AAPL.O, LG Electronics Inc 066570.KS and others to ensure Google search was the default on their devices. By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Justice Department's top antitrust official recently won approval from the department to oversee investigations involving Google parent Alphabet Inc GOOGL.O, a person briefed on the matter told Reuters.
|
On Wednesday, Google argued a U.S. judge should toss out a Justice Department antitrust lawsuit against it, saying agreements it made with Apple Inc AAPL.O and others to make Google the default search engine do not bar smartphone makers from promoting rivals. For example, it pointed to billions of dollars that Google paid annually to Apple AAPL.O, LG Electronics Inc 066570.KS and others to ensure Google search was the default on their devices. By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Justice Department's top antitrust official recently won approval from the department to oversee investigations involving Google parent Alphabet Inc GOOGL.O, a person briefed on the matter told Reuters.
|
On Wednesday, Google argued a U.S. judge should toss out a Justice Department antitrust lawsuit against it, saying agreements it made with Apple Inc AAPL.O and others to make Google the default search engine do not bar smartphone makers from promoting rivals. For example, it pointed to billions of dollars that Google paid annually to Apple AAPL.O, LG Electronics Inc 066570.KS and others to ensure Google search was the default on their devices. In November 2021, Google asked the Justice Department to consider requiring Kanter to recuse himself because of his work for a long list of Google critics like Yelp Inc YELP.N, which Alphabet described as "vociferously advocating for an antitrust case against Google for years."
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17603.0
|
2023-01-13 00:00:00 UTC
|
Notable Friday Option Activity: AAPL, COST, SBUX
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AAPL
|
https://www.nasdaq.com/articles/notable-friday-option-activity%3A-aapl-cost-sbux
|
nan
|
nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.0 million contracts has been traded thus far today, a contract volume which is representative of approximately 101.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 121.3% of AAPL's average daily trading volume over the past month, of 83.9 million shares. Particularly high volume was seen for the $134 strike call option expiring January 13, 2023, with 62,748 contracts trading so far today, representing approximately 6.3 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $134 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) saw options trading volume of 24,143 contracts, representing approximately 2.4 million underlying shares or approximately 111% of COST's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $480 strike put option expiring January 13, 2023, with 1,030 contracts trading so far today, representing approximately 103,000 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $480 strike highlighted in orange:
And Starbucks Corp. (Symbol: SBUX) options are showing a volume of 67,402 contracts thus far today. That number of contracts represents approximately 6.7 million underlying shares, working out to a sizeable 110.5% of SBUX's average daily trading volume over the past month, of 6.1 million shares. Particularly high volume was seen for the $108 strike call option expiring January 20, 2023, with 11,360 contracts trading so far today, representing approximately 1.1 million underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $108 strike highlighted in orange:
For the various different available expirations for AAPL options, COST options, or SBUX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
CM Stock Predictions
BTX Historical Stock Prices
UBNK Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $134 strike call option expiring January 13, 2023, with 62,748 contracts trading so far today, representing approximately 6.3 million underlying shares of AAPL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.0 million contracts has been traded thus far today, a contract volume which is representative of approximately 101.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 121.3% of AAPL's average daily trading volume over the past month, of 83.9 million shares.
|
Particularly high volume was seen for the $134 strike call option expiring January 13, 2023, with 62,748 contracts trading so far today, representing approximately 6.3 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $134 strike highlighted in orange: Costco Wholesale Corp (Symbol: COST) saw options trading volume of 24,143 contracts, representing approximately 2.4 million underlying shares or approximately 111% of COST's average daily trading volume over the past month, of 2.2 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.0 million contracts has been traded thus far today, a contract volume which is representative of approximately 101.8 million underlying shares (given that every 1 contract represents 100 underlying shares).
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.0 million contracts has been traded thus far today, a contract volume which is representative of approximately 101.8 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAPL's trailing twelve month trading history, with the $134 strike highlighted in orange: Costco Wholesale Corp (Symbol: COST) saw options trading volume of 24,143 contracts, representing approximately 2.4 million underlying shares or approximately 111% of COST's average daily trading volume over the past month, of 2.2 million shares. That number works out to 121.3% of AAPL's average daily trading volume over the past month, of 83.9 million shares.
|
Below is a chart showing AAPL's trailing twelve month trading history, with the $134 strike highlighted in orange: Costco Wholesale Corp (Symbol: COST) saw options trading volume of 24,143 contracts, representing approximately 2.4 million underlying shares or approximately 111% of COST's average daily trading volume over the past month, of 2.2 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.0 million contracts has been traded thus far today, a contract volume which is representative of approximately 101.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 121.3% of AAPL's average daily trading volume over the past month, of 83.9 million shares.
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17604.0
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2023-01-13 00:00:00 UTC
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Why Metaverse Cryptocurrencies Jumped This Week
|
AAPL
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https://www.nasdaq.com/articles/why-metaverse-cryptocurrencies-jumped-this-week
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nan
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nan
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What happened
Dreams of the metaverse are alive again (for now) as the values of top metaverse-related cryptocurrencies jumped this week. Those gains were driven in part by macro news, but also due to bullishness about the metaverse.
According to data provided by S&P Global Market Intelligence, as of 11:30 a.m. ET on Friday, Axie Infinity (CRYPTO: AXS) was up 22% over the past week, Decentraland (CRYPTO: MANA) was up 39.4%, The Sandbox (CRYPTO: SAND) had jumped 35.5%, and ApeCoin (CRYPTO: APE) had popped by 20.5%.
So what
The latest Consumer Price Index report, released on Thursday, showed prices declining slightly month over month in December, with year-over-year inflation continuing its decline to 6.5%. That led investors to speculate that interest rate increases will slow and potentially reverse in 2023, which caused them to bid growth stocks higher. And since most cryptocurrencies trade in correlation with high-growth assets, they rose as well.
We can't overlook the metaverse-specific news, though. According to new reports, not only is Apple (NASDAQ: AAPL) building a combination virtual- and augmented-reality headset, but the new device will also be released this year. Meta Platforms (NASDAQ: META) has thus far been the biggest tech name attempting to make a splash in virtual reality and metaverse applications, so getting Apple into the mix could be good for adoption and usage.
To be clear, the week's gains for related cryptos were not driven by any indications that these metaverses or games had actually experienced increased adoption, nor was there news about any big releases. Rather, they appeared to be powered by speculation that in the future, more people will be interested in these activities.
I think it's possible that metaverse applications, particularly those that run on blockchains, will become extremely valuable. But that hasn't proven to be true yet.
Now what
One of the challenges cryptocurrencies and metaverses share is user adoption. The more users they have, the more valuable the tokens will be. And over the last year, there's been a decline in adoption and trading activity almost across the board. But that narrative could be shifting.
A lot of the leverage from exchanges and hedge funds has been flushed out of cryptocurrencies, and now, a more natural adoption curve is taking place. That will be good for some projects and bad for others, just like in the traditional gaming industry.
While I do think that blockchain ownership of assets and using tokens for transactions are compelling use cases, they have yet to be proven in reality. And all of these projects have been built on the Ethereum (CRYPTO: ETH) blockchain, which is plagued by high transaction costs ("gas fees") and relatively slow transaction times. I'm not sure how that dynamic will hinder these applications specifically.
As much as investors like to see the values of their assets go up, I don't think this week's price gains for metaverse-related tokens will last long. There's no indication that Apple will be supporting any of these games (yet), and users have yet to adopt them on a widespread basis. I think the right move would be to stay on the sidelines until we see real user growth gain traction in one of these metaverses.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Ethereum. The Motley Fool has positions in and recommends Apple, Ethereum, and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
According to new reports, not only is Apple (NASDAQ: AAPL) building a combination virtual- and augmented-reality headset, but the new device will also be released this year. That led investors to speculate that interest rate increases will slow and potentially reverse in 2023, which caused them to bid growth stocks higher. To be clear, the week's gains for related cryptos were not driven by any indications that these metaverses or games had actually experienced increased adoption, nor was there news about any big releases.
|
According to new reports, not only is Apple (NASDAQ: AAPL) building a combination virtual- and augmented-reality headset, but the new device will also be released this year. To be clear, the week's gains for related cryptos were not driven by any indications that these metaverses or games had actually experienced increased adoption, nor was there news about any big releases. The Motley Fool has positions in and recommends Apple, Ethereum, and Meta Platforms.
|
According to new reports, not only is Apple (NASDAQ: AAPL) building a combination virtual- and augmented-reality headset, but the new device will also be released this year. Meta Platforms (NASDAQ: META) has thus far been the biggest tech name attempting to make a splash in virtual reality and metaverse applications, so getting Apple into the mix could be good for adoption and usage. To be clear, the week's gains for related cryptos were not driven by any indications that these metaverses or games had actually experienced increased adoption, nor was there news about any big releases.
|
According to new reports, not only is Apple (NASDAQ: AAPL) building a combination virtual- and augmented-reality headset, but the new device will also be released this year. Now what One of the challenges cryptocurrencies and metaverses share is user adoption. As much as investors like to see the values of their assets go up, I don't think this week's price gains for metaverse-related tokens will last long.
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17605.0
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2023-01-13 00:00:00 UTC
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Is Berkshire Hathaway a Value Stock?
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AAPL
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https://www.nasdaq.com/articles/is-berkshire-hathaway-a-value-stock
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nan
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nan
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(0:45) - Value Stocks Back In Favor: Should You jump On The Warren Buffett Bandwagon?
(6:00) - Ark Invest vs Berkshire Hathaway: What Fits Best Into Your Portfolio?
(21:00) - Episode Roundup: BRKB, ARKK, AAPL, BAC, KO, AXP, TSM, CVX, EXAS, ZM, TSLA
Podcast@Zacks.com
Welcome to Episode #312 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
With value stocks out performing in 2022, value investing has come back into favor.
And that means the cult of Warren Buffett, and Berkshire Hathaway, is back. At the end of 2022, there was a chart making the rounds on Twitter that compared Cathie Wood’s ARK Innovation performance over the last 5 years with Berkshire Hathaway’s.
As you might have guessed, Berkshire Hathaway is outperforming thanks to ARKK’s terrible 2022. Over the last 5 years, Berkshire Hathaway is up 76.3% while ARKK is down 18.9%.
Meanwhile, many investors are diving into Berkshire Hathaway’s stock in search of safety. Over the last three months, Berkshire’s B shares are up 19.3% versus the S&P 500’s gain of 10.5%.
But is Berkshire Hathaway itself even a value stock?
Should value investors be investing in the stock, and its large holdings?
Is there Value in Berkshire Hathaway?
1. Berkshire Hathaway (BRK.B)
Berkshire Hathaway is a large cap holding company that owns dozens of businesses, cash and equity investments. Reminder: it’s not a mutual fund or an ETF fund. It’s a corporation with Warren Buffett as Chairman and CEO.
Berkshire Hathaway trades with a forward P/E of 19, which is more expensive than the S&P 500 and is not in the normal range for most value investors. Tracey usually looks for companies trading under 15.
What about its PEG ratio? Berkshire Hathaway has a PEG of 2.7, which does not indicate value either. A PEG under 1.0 indicates a company has growth and value.
However, Berkshire does have a P/B ratio of 1.5, which is under 3.0, and indicates value.
Is a low P/B ratio enough for value investors or should they wait for a sell-off in the Berkshire Hathaway shares?
2. Apple Corp. AAPL
Apple is Berkshire’s largest equity holding. It was cheap when Buffett first bought it in 2016, with a forward P/E of around 10.
But in 2023, it is trading at 21x, which is much higher than the S&P 500 which is trading around 18. Apple has a PEG of 1.7.
Additionally, earnings are expected to rise just 1% in fiscal 2023 so there isn’t much growth there either.
Should value investors take a pass on Apple?
3. Bank of America BAC
Bank of America is Berkshire’s second largest holding, and has been for several years. Warren Buffett has been patient with Bank of America, even while selling many of his other bank stocks.
Shares of Bank of America are down 30% in the last year. It’s cheap with a forward P/E of 9.5. But with banks, investors should also look at P/B ratio. Bank of America’s is 1.15. With banks, a P/B ratio near 1.0 indicates there’s value.
Should investors join Buffett and add Bank of America to their own short list?
4. Chevron Corp. CVX
Chevron suddenly became the third largest position in Berkshire’s portfolio, at 8%, last year when Buffett went all in on the energy stocks.
Chevron shares surged in 2022, rising 36.9% as energy was the best performing sector for the second year in a row. But it remains cheap as earnings have also risen. Chevron is trading with a forward P/E of just 10.8.
It’s yielding 3.2% now.
Should you follow Buffett into the energy trade, or is it too late to jump into Chevron?
5. The Coca-Cola Company KO
Coca-Cola has been in the Berkshire portfolio since the first quarter of 2001. Berkshire has held it through the Great Recession and the pandemic. It’s still the fourth largest position in the portfolio.
Coca-Cola shares are up 25% over the last 2 years, versus just 5.4% for the S&P 500.
But shares aren’t cheap. It trades with a forward P/E of 24.4. And Coca-Cola has a PEG ratio of 3.9.
Is Coca-Cola too expensive for value investors in 2023?
What Else Should You Know About Berkshire Hathaway to Start 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns BAC in Zacks Value Investor portfolio.]
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
CocaCola Company The (KO) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(21:00) - Episode Roundup: BRKB, ARKK, AAPL, BAC, KO, AXP, TSM, CVX, EXAS, ZM, TSLA Podcast@Zacks.com Welcome to Episode #312 of the Value Investor Podcast. Apple Corp. AAPL Apple is Berkshire’s largest equity holding. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company The (KO) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple Corp. AAPL Apple is Berkshire’s largest equity holding. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company The (KO) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. (21:00) - Episode Roundup: BRKB, ARKK, AAPL, BAC, KO, AXP, TSM, CVX, EXAS, ZM, TSLA Podcast@Zacks.com Welcome to Episode #312 of the Value Investor Podcast.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company The (KO) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. (21:00) - Episode Roundup: BRKB, ARKK, AAPL, BAC, KO, AXP, TSM, CVX, EXAS, ZM, TSLA Podcast@Zacks.com Welcome to Episode #312 of the Value Investor Podcast. Apple Corp. AAPL Apple is Berkshire’s largest equity holding.
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(21:00) - Episode Roundup: BRKB, ARKK, AAPL, BAC, KO, AXP, TSM, CVX, EXAS, ZM, TSLA Podcast@Zacks.com Welcome to Episode #312 of the Value Investor Podcast. Apple Corp. AAPL Apple is Berkshire’s largest equity holding. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company The (KO) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17606.0
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2023-01-13 00:00:00 UTC
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Is It the Right Time to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-the-right-time-to-buy-apple-stock
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nan
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Apple (NASDAQ: AAPL) is a stalwart stock that many investors own in their portfolios, but when it comes to new money being invested, the tech giant can get overlooked because of its size and perceived lack of growth potential. In this episode, Jamie Louko and Connor Allen break down the bull case for Apple stock and the growth opportunity this behemoth still has in store. If you enjoy this episode, leave a like and consider subscribing.
*Stock prices used were the after-market prices of Jan. 10, 2023. The video was published on Jan. 13, 2023.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 9, 2023
Connor Allen has positions in Apple. Jamie Louko has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jamie Louko is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is a stalwart stock that many investors own in their portfolios, but when it comes to new money being invested, the tech giant can get overlooked because of its size and perceived lack of growth potential. In this episode, Jamie Louko and Connor Allen break down the bull case for Apple stock and the growth opportunity this behemoth still has in store. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) is a stalwart stock that many investors own in their portfolios, but when it comes to new money being invested, the tech giant can get overlooked because of its size and perceived lack of growth potential. In this episode, Jamie Louko and Connor Allen break down the bull case for Apple stock and the growth opportunity this behemoth still has in store. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) is a stalwart stock that many investors own in their portfolios, but when it comes to new money being invested, the tech giant can get overlooked because of its size and perceived lack of growth potential. In this episode, Jamie Louko and Connor Allen break down the bull case for Apple stock and the growth opportunity this behemoth still has in store. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Connor Allen has positions in Apple.
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Apple (NASDAQ: AAPL) is a stalwart stock that many investors own in their portfolios, but when it comes to new money being invested, the tech giant can get overlooked because of its size and perceived lack of growth potential. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! See the 10 stocks *Stock Advisor returns as of January 9, 2023 Connor Allen has positions in Apple.
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17607.0
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2023-01-13 00:00:00 UTC
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Can the PC Market Bounce Back From Its Multi-Year Lows?
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AAPL
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https://www.nasdaq.com/articles/can-the-pc-market-bounce-back-from-its-multi-year-lows
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nan
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nan
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Global PC sales, which soared during the peak of the pandemic, have been on a steady decline. During the height of the epidemic, sales of PCs, which include laptops and tablets, unexpectedly jumped as millions worked and learned remotely. However, as things started returning to normal and people began going back to their jobs and schools, demand showed signs of fading.
However, there are several other challenges plaguing the industry. The supply-chain problem is one of the biggest among them.
PC Sales Continue to Decline
The COVID-19 epidemic severely impacted a number of industries but allowed some to reap significant rewards. The PC industry was one that profited the most. However, the situation has changed since then, with sales declining almost every quarter.
Global PC shipments totaled 65.3 million units in the fourth quarter of 2022, down 28.5% on a year-over-year basis, according to the latest from Gartner. This is also the largest quarterly decline since the firm started tracking the PC market in the 1990s.
Overall global PC shipments for 2022 totaled 286.2 million units, declining 16.2% from 2021.
Also, for theglobal market this is the third consecutive quarter of double-digit decline. According to the report, the PC market has been hit by the fears of a global recession, rising inflation and increasing interest rates.
According to the report, the PC market is currently experiencing a bottleneck due to higher inventory levels that began to accumulate in the first half of 2022. High demand and supply chain interruptions until 2021 resulted in low PC supply, which was swiftly transformed into an excess of supply after demand dropped quickly and drastically.
Challenges Aplenty
With the steep decline in PC shipments, the market leaders appear to be the biggest sufferers. Although their rankings as market leaders haven’t changed, the top three PC manufacturers have also suffered the greatest losses over this time.
Lenovo Group Limited LNVGY, continues to dominate the top spot with a market share of 24%. However, LNVGY recorded its steepest quarterly decline since the mid-1990s. This was also the fifth consecutive quarter of sales decline for Lenovo Group Limited.
Also, HP Inc. HPQ and Dell Technologies Inc DELL witnessed sharp quarterly declines. HPQ suffered the most in the EMEA market, with shipments plummeting 44% on a year-over-year basis in the fourth quarter of 2022. However, HP Inc. now holds the biggest market share of 26.8% in terms of shipments in the United States.
Dell Technologies also held its position as the third-biggest player. However, DELL’s business was affected in the fourth quarter by sluggish demand in the large business market. Dell Technologies now has the second biggest market share in the United States with 23.4%, but slowing sales have been impacting its business.
Apple, Inc. AAPL is the only exception among the top players. AAPL saw a 3.6% jump in shipments in the fourth quarter on a year-over-year basis. This follows a 7% jump in the third quarter and a 9.3% jump in the second quarter. Apple currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The U.S. PC market, one of the biggest markets, plummeted 20.5% in the fourth quarter of 2022, recording its sixth straight quarterly decline. The U.S. PC market as a whole is suffering from slowing laptop sales. However, demand for desktops has slightly increased.
The industry is facing a spate of challenges, with price being the biggest concern. Americans have cut back on expensive items as a result of soaring inflation. The supply-chain issue began to ease in the third quarter, but excessive inventory levels are now causing new worries as demand continues to decline in both the consumer and commercial markets.
Also, sales of semiconductors are increasingly being affected by the decline in PC demand. A number of chip manufacturers have claimed that lower PC demand is having an effect on their sales. Overall, 2022 was a difficult year for the PC market, and experts don't expect things to get better until the second half of 2023.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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, Inc. AAPL is the only exception among the top players. AAPL saw a 3.6% jump in shipments in the fourth quarter on a year-over-year basis. 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.
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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, Inc. AAPL is the only exception among the top players. AAPL saw a 3.6% jump in shipments in the fourth quarter on a year-over-year basis.
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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, Inc. AAPL is the only exception among the top players. AAPL saw a 3.6% jump in shipments in the fourth quarter on a year-over-year basis.
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Apple, Inc. AAPL is the only exception among the top players. AAPL saw a 3.6% jump in shipments in the fourth quarter on a year-over-year basis. 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.
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17608.0
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2023-01-13 00:00:00 UTC
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The 3 Types of Artificial Intelligence and Top Companies Leading the AI Revolution
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AAPL
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https://www.nasdaq.com/articles/the-3-types-of-artificial-intelligence-and-top-companies-leading-the-ai-revolution
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nan
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nan
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W
hile the great crypto collapse may have garnered most of the headlines towards the end of last year, history will likely mark the biggest news in disruptive tech for 2022 to be OpenAI’s launch of ChatGPT in late November. It amassed over 1 million users in just five days right on the heels of its launch of Dall-E in April. In a market that has seen shares plummet, OpenAI has reignited heady valuations.
In this week’s World Reimagined, we will look at the rapidly evolving world of Artificial Intelligence (AI), some of its players, and what companies are poised to gain from a pivotal year where AI hits center stage.
Back in 2018, venture capitalist and computer scientist Kai-Fu Lee told CBS, “I believe [AI] is going to change the world more than anything in the history of mankind. More than electricity.”
For AI to realize its full potential, it needs to be widely available. The launch of ChatGPT, Dall-E and Stable Diffusion in 2022, along with their related applications, make it likely that this is the year Kai-Fu Lee’s prediction becomes real to those outside of AI-focused sectors.
The 3 Types of AI
AI can be divided into three categories based on capabilities:
Narrow or weak AI is designed to perform a specific task. This application is becoming increasingly common in our daily lives as machine learning and deep learning techniques improve.
General or strong AI is designed to perform any intellectual task that a human can. So far, this has proved highly elusive, but we are getting closer as an international AI race becomes the new global arms race.
Super AI is currently only a hypothetical concept. It is an AI that can perform any task better than a human, is sentient, has emotions and has been used to terrify moviegoers for decades - think Westworld, Blade Runner or Skynet.
Examples of narrow AI include Google’s (GOOG) AlphaGo, IBM’s (IBM) chess-playing supercomputer Deep Blue, Apple’s (AAPL) FaceID unlock, the virtual filters on Snapchat (SNAP) and every writer’s best friend, Grammarly. When I asked ChatGPT if it is a type of narrow AI, this was its response: “Yes, ChatGPT is considered a narrow AI, as it is designed to perform specific tasks and has a limited scope of understanding and capabilities. It is trained on a large dataset of text and can generate human-like responses to text-based prompts, but it does not have the ability to perform a wide range of tasks or understand and process information like a human would.”
AI Goes Mainstream
AI is being used across a wide range of industries, such as retail, agriculture, banking, transportation and even by HR departments. Before its public launch, there was already a legion of third-party services and tools being built on top of OpenAI.
For example, on Dec. 12, 2022, Jay Browder, CEO of DoNotPay, tweeted a screen-capture of his company’s AI talking to Comcast’s (CMCSA) AI-driven chatbot to save one of his company’s engineers $120 a year on their internet bill - an AI-to-AI chat that can save you money! The company plans to take on two speeding ticket cases in court next month, using its AI to tell the defendants what to say.
Other ChatGPT-based applications include QuickVid, which is designed to generate viral YouTube shorts, and MightyGPT, which puts the “superpowers of GPT-3 and ChatGPT” on Meta’s (Meta) WhatsApp and soon on Apple’s (AAPL) iMessage. In October 2022, another OpenAI-based service, Jasper, reached a $1.5 billion valuation just 18 months after it launched, having amassed 100,000 customers, around 75% of whom pay $80 or more monthly for the company’s suite of AI-powered writing templates, striking fear into the hearts of contract writers everywhere.
OpenAI and its ChatGPT aren’t the only games in town. Anthropic, which was started by former OpenAI employees, has received over $700 million in funding and developed an AI system similar to ChatGPT that reportedly has more “grace” than ChatGPT. Its AI, dubbed Claude, is currently accessible only through a Slack integration as part of a closed beta. The tech was created using a technique called “constitutional AI” that aims to provide a principle-based approach to aligning AI systems with human intentions, which basically means it will be more polite and less offensive in its responses than other models. When you think that these AIs learn from the internet, offensive responses aren’t much of a stretch. The company has indicated that it is looking for a valuation of at least $5 billion in its upcoming $200 million round. Sam Bankman-Fried, Caroline Ellison and other ex-FTX colleagues collectively invested over $500 million in Anthropic during prior rounds, so their stakes will likely get sold to the highest bidder soon since their assets have been frozen.
Adept AI Labs is another startup whose founders include former leaders of OpenAI and Google AI. It reportedly recently sought a valuation of around $1 billion following its $250 million valuation during its latest funding round last year. Both Adept and Anthropic are looking for valuations that are hundreds of times their projected topline revenue – heady days are back in parts of the tech sector!
The release of Stable Diffusion in 2022 was not remarkable only because it was open source, but even more amazing was its diminutive size; AI code tends to be bulky. Upon its release, it was already possible to run it on some consumer graphics cards. In less than a month, it had been optimized to the point where it could be run on an iPhone, leading Apple to announce in December that it had released “optimizations to Core ML for Stable Diffusion in MacOS12.1 and iOS 16.2, along with code to get started deploying in Apple Silicon devices.” What is likely the most interesting aspect of this is the privacy angle because any data entered by an Apple user using this tool will stay on the device. It also means that after downloading it, users won’t need an internet connection, opening up opportunities in areas where connectivity is challenging.
Innovation is only going to accelerate. According to Senior Partner & Managing Director at Boston Consulting Group and Global Leader of BCG X Sylvain Duranton, “Despite economic headwinds, 60% of BCG’s recently surveyed companies plan to increase their investments in digital and AI in 2023.” According to IDC Research, spending worldwide by governments and businesses on AI technology will top $500 billion in 2023.
Microsoft Gets Serious
The power of ChatGPT lit up social media, with some hypothesizing that it could mean the end of Google’s search dominance. According to Semafor, Microsoft (MSFT) has reportedly been in talks to invest an additional $10 billion in the owner of ChatGPT in a deal that would value OpenAI at $29 billion. The two have been intimately linked since inception. Three years ago, Microsoft invested $1 billion in a project originally co-founded by Elon Musk and Sam Altman, former Y Combinator president, that became known as OpenAI, in an effort to overtake Amazon (AMZN) and Google in their AI efforts.
ChatGPT’s stunning success means OpenAI needs more of everything, as anyone who has tried to use it can attest. The Microsoft OpenAI deal is a highly unusual structure, according to those claiming to be familiar with the deal. First, OpenAI will pay back its first investors. Then, Microsoft gets 75% of OpenAI’s profits until its principal investment is paid back and 49% of profits after that until it reaches a theoretical cap.
Who’s Winning?
We are still in the early innings of the AI race, but it is already clear that Amazon’s AWS is poised to be a winner as AI requires massive amounts of computing power. For example, the CEO of Stability reported that his company used 256 Nvidia (NVDA) A100s on AWS for 150,000 hours at the cost of $600,000 to train Stable Diffusion. ChatGPT obviously is using Microsoft for computing capacity. Click here to read about chip manufacturers that are poised to benefit in my article last month on Healthcare and AI.
The next phase of AI could also benefit the social media OG Meta, given its massive amounts of data, which is vital food for machine learning, and the reality that its entire business is based on AI that seeks to target users with increasingly personalized content. Its business is basically all about AI experimentation and iteration. Don’t count this behemoth out just yet and keep a close eye on what is happening with MightyGPT on WhatsApp.
Alphabet’s Google claims to have image generation AI that outperforms Dall-E and is rumored to have a conversation chat product that is superior to ChatGPT, but so far, it is all just rumor.
We’ve already discussed Microsoft getting even cozier with OpenAI, but what could be yet another major coup for the tech giant is the rumored incorporation of OpenAI’s AI into its Word, PowerPoint, Excel, Outlook, and other apps. The Information recently reported that the company’s Bing search plans to use OpenAI’s ChatGPT technology. For those really interested, I suggest you ask ChatGPT itself about how Microsoft could use it, if you can find a time when it isn’t already at capacity.
The Bottom Line
The internet shrunk the world, allowing us to transact and communicate, regardless of geography. The smartphone placed the whole of human knowledge in the palm of one’s hand and further expanded our ability to communicate, transact and learn. Buckminster Fuller’s “knowledge doubling curve,” pointed out that until 1900, human knowledge doubled approximately every century. By the end of World War II, knowledge was doubling every 25 years.
Today, on average, human knowledge is estimated to double every 13 months. AI will not just accelerate growth in knowledge but will also give us the ability to use that knowledge in ways that will likely make every other technological advance pale in comparison. From healthcare to energy, construction to the cosmos, we will be able to solve more problems, solve them faster, and solve them more effectively than we could have been dreamed of just a few decades 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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Examples of narrow AI include Google’s (GOOG) AlphaGo, IBM’s (IBM) chess-playing supercomputer Deep Blue, Apple’s (AAPL) FaceID unlock, the virtual filters on Snapchat (SNAP) and every writer’s best friend, Grammarly. Other ChatGPT-based applications include QuickVid, which is designed to generate viral YouTube shorts, and MightyGPT, which puts the “superpowers of GPT-3 and ChatGPT” on Meta’s (Meta) WhatsApp and soon on Apple’s (AAPL) iMessage. hile the great crypto collapse may have garnered most of the headlines towards the end of last year, history will likely mark the biggest news in disruptive tech for 2022 to be OpenAI’s launch of ChatGPT in late November.
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Examples of narrow AI include Google’s (GOOG) AlphaGo, IBM’s (IBM) chess-playing supercomputer Deep Blue, Apple’s (AAPL) FaceID unlock, the virtual filters on Snapchat (SNAP) and every writer’s best friend, Grammarly. Other ChatGPT-based applications include QuickVid, which is designed to generate viral YouTube shorts, and MightyGPT, which puts the “superpowers of GPT-3 and ChatGPT” on Meta’s (Meta) WhatsApp and soon on Apple’s (AAPL) iMessage. When I asked ChatGPT if it is a type of narrow AI, this was its response: “Yes, ChatGPT is considered a narrow AI, as it is designed to perform specific tasks and has a limited scope of understanding and capabilities.
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Examples of narrow AI include Google’s (GOOG) AlphaGo, IBM’s (IBM) chess-playing supercomputer Deep Blue, Apple’s (AAPL) FaceID unlock, the virtual filters on Snapchat (SNAP) and every writer’s best friend, Grammarly. Other ChatGPT-based applications include QuickVid, which is designed to generate viral YouTube shorts, and MightyGPT, which puts the “superpowers of GPT-3 and ChatGPT” on Meta’s (Meta) WhatsApp and soon on Apple’s (AAPL) iMessage. The 3 Types of AI AI can be divided into three categories based on capabilities: Narrow or weak AI is designed to perform a specific task.
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Examples of narrow AI include Google’s (GOOG) AlphaGo, IBM’s (IBM) chess-playing supercomputer Deep Blue, Apple’s (AAPL) FaceID unlock, the virtual filters on Snapchat (SNAP) and every writer’s best friend, Grammarly. Other ChatGPT-based applications include QuickVid, which is designed to generate viral YouTube shorts, and MightyGPT, which puts the “superpowers of GPT-3 and ChatGPT” on Meta’s (Meta) WhatsApp and soon on Apple’s (AAPL) iMessage. According to Semafor, Microsoft (MSFT) has reportedly been in talks to invest an additional $10 billion in the owner of ChatGPT in a deal that would value OpenAI at $29 billion.
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17609.0
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2023-01-13 00:00:00 UTC
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Technology Sector Update for 01/13/2023: ATOM, SATX, AAPL, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-01-13-2023%3A-atom-satx-aapl-xlk-soxx
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nan
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nan
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Technology stocks were retreating pre-bell Friday with the Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) recently slipping past 1%.
Atomera (ATOM) was 3.5% higher after saying it formed a partnership with Arizona State University for research and development aimed at advancing semiconductor materials.
SatixFy Communications (SATX) was up more than 2% after it named Ido Gur as its new chief executive officer, succeeding David Ripstein, effective on Sunday, Jan.15.
Apple (AAPL) has lowered the 2023 total compensation for CEO Tim Cook to $49 million from $84 million last year, the company said in a filing with the US Securities and Exchange Commission. Apple was slipping past 1% recently.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has lowered the 2023 total compensation for CEO Tim Cook to $49 million from $84 million last year, the company said in a filing with the US Securities and Exchange Commission. Technology stocks were retreating pre-bell Friday with the Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) recently slipping past 1%. Atomera (ATOM) was 3.5% higher after saying it formed a partnership with Arizona State University for research and development aimed at advancing semiconductor materials.
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Apple (AAPL) has lowered the 2023 total compensation for CEO Tim Cook to $49 million from $84 million last year, the company said in a filing with the US Securities and Exchange Commission. Technology stocks were retreating pre-bell Friday with the Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) recently slipping past 1%. Apple was slipping past 1% recently.
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Apple (AAPL) has lowered the 2023 total compensation for CEO Tim Cook to $49 million from $84 million last year, the company said in a filing with the US Securities and Exchange Commission. Technology stocks were retreating pre-bell Friday with the Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) recently slipping past 1%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has lowered the 2023 total compensation for CEO Tim Cook to $49 million from $84 million last year, the company said in a filing with the US Securities and Exchange Commission. Technology stocks were retreating pre-bell Friday with the Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) recently slipping past 1%. Atomera (ATOM) was 3.5% higher after saying it formed a partnership with Arizona State University for research and development aimed at advancing semiconductor materials.
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17610.0
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2023-01-13 00:00:00 UTC
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Apple Is Reportedly Designing Chips to Cut Broadcom Out of the Mix -- Time to Sell Broadcom Stock?
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AAPL
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https://www.nasdaq.com/articles/apple-is-reportedly-designing-chips-to-cut-broadcom-out-of-the-mix-time-to-sell-broadcom
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nan
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In today's video, Jose Najarro and Nick Rossolillo discuss Broadcom (NASDAQ: AVGO) and why Nick might not be too worried about Apple (NASDAQ: AAPL) designing its chips, but Jose might need some convincing. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Jan. 10, 2023. The video was published on Jan. 12, 2023.
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Jose Najarro has no position in any of the stocks mentioned. Nicholas Rossolillo has positions in Apple and Broadcom. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's video, Jose Najarro and Nick Rossolillo discuss Broadcom (NASDAQ: AVGO) and why Nick might not be too worried about Apple (NASDAQ: AAPL) designing its chips, but Jose might need some convincing. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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In today's video, Jose Najarro and Nick Rossolillo discuss Broadcom (NASDAQ: AVGO) and why Nick might not be too worried about Apple (NASDAQ: AAPL) designing its chips, but Jose might need some convincing. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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In today's video, Jose Najarro and Nick Rossolillo discuss Broadcom (NASDAQ: AVGO) and why Nick might not be too worried about Apple (NASDAQ: AAPL) designing its chips, but Jose might need some convincing. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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In today's video, Jose Najarro and Nick Rossolillo discuss Broadcom (NASDAQ: AVGO) and why Nick might not be too worried about Apple (NASDAQ: AAPL) designing its chips, but Jose might need some convincing. Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has no position in any of the stocks mentioned.
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17611.0
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2023-01-13 00:00:00 UTC
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3 Warren Buffett Stocks to Avoid Like the Plague in 2023
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-avoid-like-the-plague-in-2023
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Pretty much all Warren Buffett has done is win since becoming CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965. Including the 4% gain for Berkshire's Class A shares (BRK.A) in 2022, the Oracle of Omaha has overseen a greater than 3,700,000% aggregate return for his shareholders since taking the reins.
However, Buffett isn't infallible. Even the greatest investors in the world are going to be wrong from time to time. With approximately four dozen securities in Berkshire Hathaway's investment portfolio, some are bound to underperform.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
As investors continue to steam ahead into the new year, three Warren Buffett stocks stand out as potential underperformers that can be avoided like the plague.
Snowflake
To be perfectly clear, Buffett and his investment team don't pile into train wrecks. They tend to buy businesses that offer a long history of profitability and/or present with clear-cut competitive advantages. Cloud data-warehousing company Snowflake (NYSE: SNOW) falls into the latter camp, with easily identifiable competitive edges.
Snowflake built its solutions atop the most popular cloud infrastructure services. While it can be difficult to share data across competing cloud infrastructure platforms without Snowflake, data-sharing is seamless for the company's customers.
Further, Snowflake has shunned cloud-based subscriptions in favor of a pay-as-you-go model. Customers are charged based on the amount of data stored and Snowflake Compute Credits used. This considerably more transparent payment approach is well liked, as evidenced by Snowflake's net revenue retention rate of 165% in the October-ended fiscal quarter. This retention rate means existing customers are spending 65% more on a year-over-year basis.
Despite these advantages, I fully expect Snowflake to underperform the broader market in 2023. With the Federal Reserve rapidly raising interest rates to tame historically high inflation, it's growth-oriented companies that'll be hit hardest. If the tea leaves are correct and the U.S. falls into a recession at some point this year, new customer generation and net revenue retention rate would both be expected to slow.
The other issue that can't be ignored is its premium valuation. Despite Snowflake stock losing in the neighborhood of 70% since hitting an all-time high of $405 in November 2021, it's still, arguably, the most expensive cloud stock relative to sales. Even if the company manages the 46% sales growth Wall Street's consensus is calling for in fiscal 2024 (which covers a good portion of the 2023 calendar year), it'll still be valued at more than 13 times the $3 billion in revenue analysts expect.
To add, Snowflake is nowhere close to generating a profit based on generally accepted accounting principles (GAAP). In fact, the company's GAAP net loss through the first nine months of fiscal 2023 widened to nearly $590 million from $546 million in the comparable period last fiscal year. Value investors aren't going to want anything to do with Snowflake during a bear market.
Kraft Heinz
The second Buffett stock to avoid like the plague in 2023 may very well be the worst investment in Berkshire Hathaway's entire portfolio: Kraft Heinz (NASDAQ: KHC).
On one hand, Kraft Heinz is doling out an inflation-fighting 3.8% yield, and it owns a vast portfolio of well-known and beloved prepackaged food brands. This includes Kraft and Heinz, as well as Oscar Mayer, Ore-Ida, Velveeta, and Jell-O, among others.
Kraft Heinz has also been a clear beneficiary of the COVID-19 pandemic. With consumers choosing to eat at home more often, the company's prepackaged and easy-to-make meals, snacks, and condiments have received a boost. Through the first nine months of 2022, its organic growth rate clocked in at a blistering 9.5%.
However, there are a number of red flags to suggest that Kraft Heinz is in for a rough year. For instance, even though organic growth surged 9.5% through the first nine months of 2022, it's been a function of higher price points and not volume. As a whole, price is up 12.3% and volume is down 2.8%. In my view, this leaves the company exposed to substitution bias from consumers with inflation well above average and the U.S. economy weakening. In other words, consumers could start trading down to store/generic brands that don't cost as much as the brand-name products Kraft Heinz sells.
Perhaps the most glaring problem with Kraft Heinz can be found on its balance sheet. Thanks to acquisitions, the company is sitting on $30.6 billion in goodwill -- effectively the premium Kraft Heinz paid above the tangible value of the businesses it's purchased -- and close to $20.1 billion in long-term debt. What Kraft Heinz really needs is cash to reignite interest in its brands. Unfortunately, the company is constrained by its balance sheet.
Normally, a consumer staples company with a forward-year price-to-earnings ratio of 15 would be viewed as a safe-haven investment during a bear market. But with virtually no sales growth on the docket for 2023, and the company's balance sheet still a mess, it stands out as an easy stock to avoid.
Image source: Getty Images.
Apple
The third and final Buffett stock to avoid like the plague is none other than Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL).
To reiterate, once again, Buffett and his team invest in high-quality businesses. But even top-notch companies can have bad years.
On the plus side, Apple has led with innovation. The company's iPhone accounts for approximately half of all U.S. smartphone market share. What's more, Apple's ongoing shift to subscription services should provide a sustained lift on its operating margin and help to reduce the revenue ebbs and flows associated with physical product replacement cycles.
Apple also has the most impressive capital-return program on the planet. Since the beginning of 2013, Apple has repurchased an almost unfathomable $554 billion worth of its common stock. Not including itself, that's more than the market cap of all but four other S&P 500 companies.
On the other side of the coin, Apple's iPhone 14 failed to provide a lot of differentiation from its preceding model. As a result, Apple ramped down plans to boost iPhone production this past September. Since the iPhone is its top-selling product, this bodes poorly for revenue growth over the next couple of quarters.
The other issue for Apple is that rapidly rising interest rates have walled off its access to cheap capital. Even though Apple generates plenty of operating cash flow, it had previously turned to the debt market to raise money for share repurchases. With rates rapidly rising, it wouldn't be a surprise to see Apple's share repurchases tail off in 2023.
As I stated earlier this week, Apple trading at a price-to-earnings multiple of 21 for the current year isn't egregious. But with the company only slated to grow sales by 2% or 3% this year, it simply isn't a good value. I fully expect Apple stock to fall below $100 this year, which makes it a Buffett stock to avoid.
10 stocks we like better than Snowflake
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*Stock Advisor returns as of December 1, 2022
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Snowflake. The Motley Fool recommends Kraft Heinz and 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 The third and final Buffett stock to avoid like the plague is none other than Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). If the tea leaves are correct and the U.S. falls into a recession at some point this year, new customer generation and net revenue retention rate would both be expected to slow. Even if the company manages the 46% sales growth Wall Street's consensus is calling for in fiscal 2024 (which covers a good portion of the 2023 calendar year), it'll still be valued at more than 13 times the $3 billion in revenue analysts expect.
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Apple The third and final Buffett stock to avoid like the plague is none other than Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). If the tea leaves are correct and the U.S. falls into a recession at some point this year, new customer generation and net revenue retention rate would both be expected to slow. Kraft Heinz The second Buffett stock to avoid like the plague in 2023 may very well be the worst investment in Berkshire Hathaway's entire portfolio: Kraft Heinz (NASDAQ: KHC).
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Apple The third and final Buffett stock to avoid like the plague is none other than Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Kraft Heinz The second Buffett stock to avoid like the plague in 2023 may very well be the worst investment in Berkshire Hathaway's entire portfolio: Kraft Heinz (NASDAQ: KHC). The Motley Fool recommends Kraft Heinz and 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.
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Apple The third and final Buffett stock to avoid like the plague is none other than Berkshire Hathaway's largest holding, tech stock Apple (NASDAQ: AAPL). Value investors aren't going to want anything to do with Snowflake during a bear market. Kraft Heinz The second Buffett stock to avoid like the plague in 2023 may very well be the worst investment in Berkshire Hathaway's entire portfolio: Kraft Heinz (NASDAQ: KHC).
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2023-01-13 00:00:00 UTC
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EXCLUSIVE-Chinese EV maker BYD to build Vietnam component plant - sources
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https://www.nasdaq.com/articles/exclusive-chinese-ev-maker-byd-to-build-vietnam-component-plant-sources
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By Phuong Nguyen and Francesco Guarascio
HANOI, Jan 13 (Reuters) - Chinese electric vehicle (EV) maker BYD Auto Co plans to build a plant in Vietnam to produce car parts, three people with knowledge of the plan told Reuters, in a move that would reduce the company's reliance on China and deepen its supply chain in Southeast Asia as part of a global expansion.
The investment in northern Vietnam would exceed $250 million, one of the people said, expanding parent BYD Co's 002594.SZ presence in Vietnam, where its electronic unit produces solar panels.
The move underscores a wider trend by manufacturers to reduce their exposure to China amid trade tensions with the United States and production disruptions caused by Beijing's previous COVID-19 lockdowns.
BYD declined to comment.
The Xian-based carmaker, which outsold rival Tesla Inc TSLA.O in EVs by more than two to one in China last year, has been expanding elsewhere in Asia, including Singapore and Japan, and Europe.
Backed by Warren Buffett's Berkshire Hathaway BRKa.N, BYD makes both plug-in hybrids and pure electric vehicles. Like Tesla, BYD controls much of its supply chain, including battery production, a strategy that sets it apart from established automakers.
The company announced in September it would build an EV assembly plant in Thailand with annual capacity of 150,000 cars from 2024.
By investing in Vietnam, BYD is looking to add capacity, control costs and diversify production from its operations in China, where demand has been strong.
Talks are underway to select a site for the Vietnam plant, said the sources, who declined to be named because the discussions are confidential. One said construction was planned to start by mid-year.
DOUBLING FOOTPRINT
It was not immediately clear what components BYD would build in Vietnam and whether it would include batteries or battery packs.
BYD's planned investment and a $400 million project by digital display maker BOE000725.SZ reported by Reuters this week would equal more than a quarter of the $2.5 billion Chinese companies invested in Vietnam all of last year.
U.S. corporations such as Apple Inc AAPL.O and their suppliers, such as Taiwan's Foxconn2354.TW and China's Luxshare002475.SZ, have also been seeking alternative production hubs, with neighbouring Vietnam one of the main options.
BYD is looking to lease 80 hectares (200 acres) of industrial land, more than doubling its footprint in Vietnam, where its electronic unit rents 60 hectares, a second source said.
The Vietnam plant will export components to the assembly plant to be built in Thailand, one source said.
The operation in Vietnam could also serve the local market, mostly through maintenance services and spare parts for BYD vehicles imported from China, one source said.
That would pose a direct challenge to VinFast, a Vietnamese EV maker that began selling cars in 2019 and plans to expand in the United States and Europe.
In December the U.S. Commerce Department found that units of BYD and other Chinese companies were circumventing decade-old U.S. tariffs on Chinese solar cells and panels.
If finalised in May, that finding would mean those companies would be subject to duties on products made in Vietnam and some other Southeast Asian countries.
(Reporting by Phuong Nguyen and Francesco Guarascio in Hanoi; Additional reporting by Zoey Zhang; Editing by William Mallard)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. corporations such as Apple Inc AAPL.O and their suppliers, such as Taiwan's Foxconn2354.TW and China's Luxshare002475.SZ, have also been seeking alternative production hubs, with neighbouring Vietnam one of the main options. By Phuong Nguyen and Francesco Guarascio HANOI, Jan 13 (Reuters) - Chinese electric vehicle (EV) maker BYD Auto Co plans to build a plant in Vietnam to produce car parts, three people with knowledge of the plan told Reuters, in a move that would reduce the company's reliance on China and deepen its supply chain in Southeast Asia as part of a global expansion. The move underscores a wider trend by manufacturers to reduce their exposure to China amid trade tensions with the United States and production disruptions caused by Beijing's previous COVID-19 lockdowns.
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U.S. corporations such as Apple Inc AAPL.O and their suppliers, such as Taiwan's Foxconn2354.TW and China's Luxshare002475.SZ, have also been seeking alternative production hubs, with neighbouring Vietnam one of the main options. By Phuong Nguyen and Francesco Guarascio HANOI, Jan 13 (Reuters) - Chinese electric vehicle (EV) maker BYD Auto Co plans to build a plant in Vietnam to produce car parts, three people with knowledge of the plan told Reuters, in a move that would reduce the company's reliance on China and deepen its supply chain in Southeast Asia as part of a global expansion. The investment in northern Vietnam would exceed $250 million, one of the people said, expanding parent BYD Co's 002594.SZ presence in Vietnam, where its electronic unit produces solar panels.
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U.S. corporations such as Apple Inc AAPL.O and their suppliers, such as Taiwan's Foxconn2354.TW and China's Luxshare002475.SZ, have also been seeking alternative production hubs, with neighbouring Vietnam one of the main options. By Phuong Nguyen and Francesco Guarascio HANOI, Jan 13 (Reuters) - Chinese electric vehicle (EV) maker BYD Auto Co plans to build a plant in Vietnam to produce car parts, three people with knowledge of the plan told Reuters, in a move that would reduce the company's reliance on China and deepen its supply chain in Southeast Asia as part of a global expansion. The investment in northern Vietnam would exceed $250 million, one of the people said, expanding parent BYD Co's 002594.SZ presence in Vietnam, where its electronic unit produces solar panels.
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U.S. corporations such as Apple Inc AAPL.O and their suppliers, such as Taiwan's Foxconn2354.TW and China's Luxshare002475.SZ, have also been seeking alternative production hubs, with neighbouring Vietnam one of the main options. By Phuong Nguyen and Francesco Guarascio HANOI, Jan 13 (Reuters) - Chinese electric vehicle (EV) maker BYD Auto Co plans to build a plant in Vietnam to produce car parts, three people with knowledge of the plan told Reuters, in a move that would reduce the company's reliance on China and deepen its supply chain in Southeast Asia as part of a global expansion. The investment in northern Vietnam would exceed $250 million, one of the people said, expanding parent BYD Co's 002594.SZ presence in Vietnam, where its electronic unit produces solar panels.
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17613.0
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2023-01-13 00:00:00 UTC
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Porsche to ensure familiar software is available for customers, spokesperson says
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https://www.nasdaq.com/articles/porsche-to-ensure-familiar-software-is-available-for-customers-spokesperson-says
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BERLIN, Jan 13 (Reuters) - Porsche AG P911_p.DE will ensure that familiar software platforms like Google and Apple will be accessible for its customers, a spokesperson said on Tuesday following reports that it was considering integrating Google software into its cockpit.
The luxury carmaker declined to comment on whether it was currently in talks with Google GOOGL.O over a deal to incorporate Google applications like Google Maps and Google Assistant into their vehicles.
A source close to the company told Reuters on Thursday discussions were underway, marking a shift in strategy for the newly listed carmaker which previously had been reluctant to use Google software.
(Reporting by Ilona Wissenbach, Writing by Victoria Waldersee, Editing by Rachel More)
((Victoria.Waldersee@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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BERLIN, Jan 13 (Reuters) - Porsche AG P911_p.DE will ensure that familiar software platforms like Google and Apple will be accessible for its customers, a spokesperson said on Tuesday following reports that it was considering integrating Google software into its cockpit. A source close to the company told Reuters on Thursday discussions were underway, marking a shift in strategy for the newly listed carmaker which previously had been reluctant to use Google software. (Reporting by Ilona Wissenbach, Writing by Victoria Waldersee, Editing by Rachel More) ((Victoria.Waldersee@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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BERLIN, Jan 13 (Reuters) - Porsche AG P911_p.DE will ensure that familiar software platforms like Google and Apple will be accessible for its customers, a spokesperson said on Tuesday following reports that it was considering integrating Google software into its cockpit. A source close to the company told Reuters on Thursday discussions were underway, marking a shift in strategy for the newly listed carmaker which previously had been reluctant to use Google software. (Reporting by Ilona Wissenbach, Writing by Victoria Waldersee, Editing by Rachel More) ((Victoria.Waldersee@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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BERLIN, Jan 13 (Reuters) - Porsche AG P911_p.DE will ensure that familiar software platforms like Google and Apple will be accessible for its customers, a spokesperson said on Tuesday following reports that it was considering integrating Google software into its cockpit. The luxury carmaker declined to comment on whether it was currently in talks with Google GOOGL.O over a deal to incorporate Google applications like Google Maps and Google Assistant into their vehicles. (Reporting by Ilona Wissenbach, Writing by Victoria Waldersee, Editing by Rachel More) ((Victoria.Waldersee@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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BERLIN, Jan 13 (Reuters) - Porsche AG P911_p.DE will ensure that familiar software platforms like Google and Apple will be accessible for its customers, a spokesperson said on Tuesday following reports that it was considering integrating Google software into its cockpit. The luxury carmaker declined to comment on whether it was currently in talks with Google GOOGL.O over a deal to incorporate Google applications like Google Maps and Google Assistant into their vehicles. A source close to the company told Reuters on Thursday discussions were underway, marking a shift in strategy for the newly listed carmaker which previously had been reluctant to use Google software.
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2023-01-12 00:00:00 UTC
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My Top Tech IPO to Buy in January
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https://www.nasdaq.com/articles/my-top-tech-ipo-to-buy-in-january-0
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Last year was not kind to the initial public offering market, with global IPO activity volume tumbling 45%, leading to a 61% decline in proceeds. In fact, only a little over 1,300 IPOs raised just $179.5 billion, according to Ernst & Young, though technology issues led the way, accounting for nearly a quarter of the total number.
In the U.S., there were just 214 IPOs that raised $21.8 billion in 2022, a far cry from the 1,091 offerings that raised $335 billion in 2021.
One of the biggest was Mobileye (NASDAQ: MBLY), the autonomous vehicle technology spinoff from Intel (NASDAQ: INTC) that went public on Oct. 26, issuing 51.9 million shares at a price of $21 per share. It generated a little over $1 billion in net proceeds for the tech stock.
In a little over two months of trading, the stock gained 59%, and though there are substantial risks for this business, this may be a tech IPO you'll want to buy this month.
Image source: Getty Images.
Driving to new heights
The autonomous vehicle market is exploding. Already a $25 billion opportunity that's growing at a near-26% compounded annual rate, it's expected the market could reach as high as $197 billion by 2030, depending upon who's counting. While analysts tend to extrapolate an industry's growth at a sharply rising angle, it's clear the self-driving vehicle market is one that could actually achieve the growth projected.
Mobileye is a leading player in the space and was always one of Intel's successful divisions from the time Intel acquired it in 2017, counting Ford, BMW, General Motors, Volkswagen, and Toyota among its customers.
The company makes chips that power not only the cameras and other driver assistance systems for self-driving vehicles, but according to Intel, Mobileye also offers a complete software platform that can enable the "entire stack" of assisted and autonomous driving technologies.
Mobileye generated almost $1.4 billion in revenue in 2021, but has already generated $1.3 billion through the first nine months of 2022, up 27% year over year.
CEO Amnon Shashua told the Consumer Electronics Show 2023 he expected Mobileye would see as much as $17 billion in assisted-driving product revenue by 2030, with 20% of that, or $3.5 billion, coming from its SuperVision product that was only launched in the fourth quarter of 2021.
SuperVision was developed by China's Geely Group and is an outgrowth of Mobileye's camera-only subsystems, offering premium, full-surround computer vision and operational point-to-point assisted driving navigation. It carries a higher price tag, which helped boost quarterly revenue and average system pricing to $53 million from $45.7 million last year, but it also sports lower margins due to the additional hardware it contains.
Image source: Getty Images.
Near-term headwinds
Despite all this upward momentum behind Mobileye, Wall Street is only looking for single-digit earnings growth in 2023, as it feels this will be something of a transition year for the tech stock. Still, Mobileye is the only autonomous driving pure-play stock and appears well positioned to deliver robust growth in the years ahead.
It's not only from Mobileye's SuperVision analysts are expecting big things, but also its EyeQ system on a chip (SoC), which is an integrated circuit that integrates most of a computer's systems. Although product revenue jumped 28% in the third quarter, it's been hampered by the global chip shortage and continuing supply chain problems. Mobileye purchases all of its SoC from a single supplier, and three Tier 1 auto companies -- ZF, Valeo, and Aptiv -- accounted for 35%, 19%, and 17%, respectively, of its revenue in 2021.
The stock is also not cheap, trading at 49 times next year's earnings, though it is already free-cash-flow positive, producing $316 million in the third quarter. Mobileye faces stiff competition from Tesla, Apple, and Sony, all of which have larger resources available to them.
The pure play in the space
Mobileye looks like a good, long-term tech IPO to buy, even if you ultimately don't get the lowest price on its stock right now.
A recession could hamper consumer spending and might delay just how fast the autonomous vehicle market takes off. Yet for investors willing to accept some degree of risk in their portfolios, Mobileye could ultimately drive higher returns down the road.
10 stocks we like better than Mobileye Global
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Mobileye Global 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
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Aptiv Plc, Intel, Tesla, and Volkswagen Ag. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft 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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Last year was not kind to the initial public offering market, with global IPO activity volume tumbling 45%, leading to a 61% decline in proceeds. SuperVision was developed by China's Geely Group and is an outgrowth of Mobileye's camera-only subsystems, offering premium, full-surround computer vision and operational point-to-point assisted driving navigation. Near-term headwinds Despite all this upward momentum behind Mobileye, Wall Street is only looking for single-digit earnings growth in 2023, as it feels this will be something of a transition year for the tech stock.
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One of the biggest was Mobileye (NASDAQ: MBLY), the autonomous vehicle technology spinoff from Intel (NASDAQ: INTC) that went public on Oct. 26, issuing 51.9 million shares at a price of $21 per share. The Motley Fool has positions in and recommends Apple, Aptiv Plc, Intel, Tesla, and Volkswagen Ag. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft 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.
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The company makes chips that power not only the cameras and other driver assistance systems for self-driving vehicles, but according to Intel, Mobileye also offers a complete software platform that can enable the "entire stack" of assisted and autonomous driving technologies. Mobileye generated almost $1.4 billion in revenue in 2021, but has already generated $1.3 billion through the first nine months of 2022, up 27% year over year. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft 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.
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One of the biggest was Mobileye (NASDAQ: MBLY), the autonomous vehicle technology spinoff from Intel (NASDAQ: INTC) that went public on Oct. 26, issuing 51.9 million shares at a price of $21 per share. Still, Mobileye is the only autonomous driving pure-play stock and appears well positioned to deliver robust growth in the years ahead. The Motley Fool has positions in and recommends Apple, Aptiv Plc, Intel, Tesla, and Volkswagen Ag.
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2023-01-12 00:00:00 UTC
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3 High-Growth Stocks to Buy Before They Take Off in 2023
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https://www.nasdaq.com/articles/3-high-growth-stocks-to-buy-before-they-take-off-in-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Among the sub-sectors of the stock market that’s been hit the hardest in 2022, growth certainly leads the pack. Investors who sought out high-growth stocks last year are now focusing on companies with durable competitive advantages, defensive business models, and cash-flow-generating businesses.
Makes sense. But in this current downturn, some high-growth stocks have simply become too attractive to avoid. Despite earnings estimates which are still likely to come down, there are plenty of companies out there worth considering.
The Federal Reserve is likely to keep its foot firmly on the brakes through the first half of the year. However, the market appears to be pricing in a greater probability of a pause and pivot than Fed officials would like to admit. Thus, for those banking on an end-of-year rally, adding some exposure to high-growth stocks right now isn’t a bad idea.
Here are three such companies that I think are worth considering in this current environment. They are among the beaten-down FAANG group of companies. These stocks each have the kind of fundamentals, and defensive posture long-term investors want. And the kicker is they’re all trading far below their peaks right now.
AAPL Apple $133.49
GOOG, GOOGL Alphabet $92.26, $91.52
AMZN Amazon $95.09
Apple (AAPL)
Source: WeDesing / Shutterstock.com
Let’s start off this list of high-growth stocks to buy with the world’s largest company, shall we?
With a projected net income of $94.6 billion in 2022, Apple (NASDAQ:AAPL) is among the blue-chip corporations with the strongest financial foundation worldwide. Apple may no longer be a stock with significant growth potential, but the company nonetheless had an 8.1% increase in revenue in the most recent quarter.
Analyst Angelo Zino appreciates Apple’s substantial worldwide ecosystem, growing potential market, and good customer retention rates. Zino is also optimistic about the management team and the firm’s ambitious buyback program. For the AAPL stock, CFRA has a “buy” rating and a $165 price objective.
The market is beginning to perceive less of a need for the Federal Reserve to be proactive about monetary policy in the near future, despite the fact that the Federal Reserve remains typically hawkish about interest rates.
For instance, several regions of Europe appear to be experiencing greater strain on the economy than the US. Investors might find it appealing that over half of Apple’s revenue comes from the Americas, particularly the US, during uncertain economic times worldwide.
Between 2021 and 2022, Apple stock was briefly viewed by many as a gamble on inflation. This kind of encouraging market mood could be advantageous for AAPL as long as consumer prices are high.
Alphabet (GOOG, GOOGL)
Source: rvlsoft / Shutterstock.com
Alphabet (NASDAQ:GOOG, GOOGL), the parent company of Google, YouTube, and Google Cloud, is a world leader in online advertising and search.
In the third quarter of 2022, Alphabet’s revenue growth dropped to only 6.1%. According to Post, Alphabet’s revenue from search and YouTube has been especially disappointing, while its revenue growth from cloud services actually jumped from 36% to 38% in the quarter.
Alphabet, according to a leading market analyst, is “a defensive stock with value support,” and given its strong cash flow, it may be eligible for significant stock buybacks. The stock also has a “buy” rating and a $114 price target from Bank of America.
Alphabet announced over a 6% increase in sales for the third quarter, which includes a 38% increase in cloud revenue. According to Zino, Alphabet is valued favorably in comparison to other large-cap tech firms. According to Zino, Alphabet has outstanding cash flow potential and can support long-term revenue growth of between 7% and 11%. For GOOGL stock, CFRA has a “buy” rating and a $120 price objective.
Amazon (AMZN)
Source: Jonathan Weiss / Shutterstock.com
A leading e-commerce giant, Amazon (NASDAQ:AMZN), really needs no introduction. This tech juggernaut has been on an impressive decline of late, dropping nearly 50% in 2022 alone. Of course, compared to the broader tech sector, that sort of underperformance is really unheard of. Accordingly, many long-term investors are now viewing this massive e-commerce player ass a compelling contrarian pick for 2023.
I’m one such investor.
Amazon’s Q4 revenue projection, according to Bank of America analyst Justin Post, was “very disappointing,” but he maintains that the business is still a “share gainer with loads of leverage ahead.” He predicts that as macroeconomic conditions improve, Amazon can increase margins, and over the next three years, Amazon Web Services, advertising, and third-party services will have a potential profit of $69 billion.
Investors may be disappointed by Amazon’s earnings growth during the coming year, but according to analyst Arun Sundaram, the company is well-positioned for long-term profit growth due to its investments in efficiency, cost control, and high-margin industries like cloud services and advertising. Sundaram anticipates a slowing of Amazon’s revenue growth to 8% in 2023. AMZN, which ended at $89.09 on December 9th, has a “buy” rating from CFRA and a $152 price target.
Also, this stock currently has a “buy” rating and a $137 price target from BoA.
On the date of publication, Chris MacDonald has a position in AAPL and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 High-Growth Stocks to Buy Before They Take Off 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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With a projected net income of $94.6 billion in 2022, Apple (NASDAQ:AAPL) is among the blue-chip corporations with the strongest financial foundation worldwide. AAPL Apple $133.49 GOOG, GOOGL Alphabet $92.26, $91.52 AMZN Amazon $95.09 Apple (AAPL) Source: WeDesing / Shutterstock.com Let’s start off this list of high-growth stocks to buy with the world’s largest company, shall we? For the AAPL stock, CFRA has a “buy” rating and a $165 price objective.
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AAPL Apple $133.49 GOOG, GOOGL Alphabet $92.26, $91.52 AMZN Amazon $95.09 Apple (AAPL) Source: WeDesing / Shutterstock.com Let’s start off this list of high-growth stocks to buy with the world’s largest company, shall we? With a projected net income of $94.6 billion in 2022, Apple (NASDAQ:AAPL) is among the blue-chip corporations with the strongest financial foundation worldwide. For the AAPL stock, CFRA has a “buy” rating and a $165 price objective.
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AAPL Apple $133.49 GOOG, GOOGL Alphabet $92.26, $91.52 AMZN Amazon $95.09 Apple (AAPL) Source: WeDesing / Shutterstock.com Let’s start off this list of high-growth stocks to buy with the world’s largest company, shall we? With a projected net income of $94.6 billion in 2022, Apple (NASDAQ:AAPL) is among the blue-chip corporations with the strongest financial foundation worldwide. For the AAPL stock, CFRA has a “buy” rating and a $165 price objective.
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AAPL Apple $133.49 GOOG, GOOGL Alphabet $92.26, $91.52 AMZN Amazon $95.09 Apple (AAPL) Source: WeDesing / Shutterstock.com Let’s start off this list of high-growth stocks to buy with the world’s largest company, shall we? With a projected net income of $94.6 billion in 2022, Apple (NASDAQ:AAPL) is among the blue-chip corporations with the strongest financial foundation worldwide. For the AAPL stock, CFRA has a “buy” rating and a $165 price objective.
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17616.0
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2023-01-12 00:00:00 UTC
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New Data Center Chips Could Mean Massive Growth for 1 Tiny Semiconductor Company
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AAPL
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https://www.nasdaq.com/articles/new-data-center-chips-could-mean-massive-growth-for-1-tiny-semiconductor-company
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Aehr Test Systems (NASDAQ: AEHR) has been on a wild ride. Shares of the tiny chip manufacturing equipment company have been all over the board in the last year as the market tries to get a handle on the company's biggest growth driver right now: The electric vehicle (EV) market. Its latest trick has been a more than 50% bounce following the second-quarter fiscal 2023 earnings update (the three months ended November 2022). Aehr beat financial expectations, but this recent surge in optimism has less to do with EVs and a lot more to do with data centers.
A massive new market even bigger than electric vehicles?
On the surface, Aehr stock's recent run-up has everything to do with the last quarter's results. Revenue was up 54% year over year to $14.8 million, and net income was $3.73 million (compared to just $717,000 last year). Both figures handily beat market analyst predictions as Aehr reported two new customers ramping up production of silicon carbide (SiC) chips, adding fuel to the SiC fire that Aehr's leading customer ON Semi (NASDAQ: ON), as well as SiC pioneer Wolfspeed (NYSE: WOLF), have helped start. The EV market is quickly displacing legacy autos, and Aehr's equipment that tests SiC chips needed in EVs could enjoy strong demand for the duration of the 2020s.
However, as a cyclical manufacturing business that relies on hard-to-predict timing of customer orders for equipment, Aehr has been playing coy with investors. Despite a stellar first half of the current fiscal year, CEO Gayne Erickson and the top team have simply reiterated their outlook for full-fiscal year 2023 revenue to be $60 million to $70 million -- implying growth of 18% to 28% from 2022.
Erickson and company have always maintained that Aehr has other growth verticals outside of EVs, though, and the company provided more than a passing hint at what that is during the lastearnings call Data centers, specifically silicon photonic chips. Through the first half of the current fiscal year, Aehr has reportedly shipped over $5 million in upgrade equipment to silicon photonics manufacturers, up more than 300% from 2021.
Analysts were intrigued, especially by Erickson's further allusion to this being just as big a market, or bigger, for Aehr than EVs. Erickson had this to say when queried about the matter:
So with the announcements by some major suppliers, the 2 largest microprocessor suppliers in the world, the main graphics processors companies in the world, even some of the large fabs like [Taiwan Semiconductor Manufacturing (NYSE: TSM)] and GlobalFoundries (NASDAQ: GFS) have created these consortiums to talk about heterogeneous integration, which is a fancy word for multiple chips in one package that include fiber optic transceiver ports on it. And what they're saying is servers first are going to start having chipsets that are in communication with processors and disk drives and data storage through fiber optic ports directly.
In laypersons' terms, data center chips need to get faster to support cloud computing and artificial intelligence applications. As chip designers and manufacturers -- including top semiconductor names like Intel (NASDAQ: INTC), Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), and others -- push the current limits of chip technology, silicon photonics (which transmit data from chip to another) could help push those boundaries a bit further. And Aehr Test Systems equipment could play a very large role in the manufacture of those photonics.
Not much has changed, at least not yet
Silicon photonics already have some use today. For example, photonic chips are used in the 2D and 3D sensing chips used in fingerprint readers and facial recognition capabilities in some high-end smartphones (like Apple's (NASDAQ: AAPL) iPhones). However, as Erickson pointed out on the call, those photonic devices are only on for seconds during the lifetime of the phone, since a biometric or facial scan takes milliseconds to complete. The testing requirements for such photonic chips are minimal as a result.
But things change with silicon photonics used for data transmission, like in a massive data center, where the device will be in use constantly. Testing of the device will be stringent, which leads Erickson to now believe that the silicon photonics market could eventually be larger than SiC for the auto industry.
The key word here, though, is "eventually." For now, EVs are what is powering Aehr's financial results. Photonic connections in data center chips won't start really showing up until "the second half of this decade" -- 2025 and beyond. That's still a couple of years away, and it remains to be seen how much new business Aehr could pick up from these manufacturers that might start implementing this new technology.
After this last update, Aehr stock trades for over 61 times trailing 12-month earnings per share. Current year expected growth looks handily priced in, and I'm not inclined to add to my position here. For the record, my fair value estimate on Aehr is about $20 a share, though that is by no means a price target or estimate on where I think the stock will head next. However, exciting things are afoot over at Aehr Test Systems. Keep this small chip company on your radar as it begins to expand into new markets like data centers.
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Nicholas Rossolillo and his clients have positions in Advanced Micro Devices, Aehr Test Systems, Apple, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Wolfspeed. 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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For example, photonic chips are used in the 2D and 3D sensing chips used in fingerprint readers and facial recognition capabilities in some high-end smartphones (like Apple's (NASDAQ: AAPL) iPhones). Erickson had this to say when queried about the matter: So with the announcements by some major suppliers, the 2 largest microprocessor suppliers in the world, the main graphics processors companies in the world, even some of the large fabs like [Taiwan Semiconductor Manufacturing (NYSE: TSM)] and GlobalFoundries (NASDAQ: GFS) have created these consortiums to talk about heterogeneous integration, which is a fancy word for multiple chips in one package that include fiber optic transceiver ports on it. However, as Erickson pointed out on the call, those photonic devices are only on for seconds during the lifetime of the phone, since a biometric or facial scan takes milliseconds to complete.
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For example, photonic chips are used in the 2D and 3D sensing chips used in fingerprint readers and facial recognition capabilities in some high-end smartphones (like Apple's (NASDAQ: AAPL) iPhones). As chip designers and manufacturers -- including top semiconductor names like Intel (NASDAQ: INTC), Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), and others -- push the current limits of chip technology, silicon photonics (which transmit data from chip to another) could help push those boundaries a bit further. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Wolfspeed.
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For example, photonic chips are used in the 2D and 3D sensing chips used in fingerprint readers and facial recognition capabilities in some high-end smartphones (like Apple's (NASDAQ: AAPL) iPhones). Both figures handily beat market analyst predictions as Aehr reported two new customers ramping up production of silicon carbide (SiC) chips, adding fuel to the SiC fire that Aehr's leading customer ON Semi (NASDAQ: ON), as well as SiC pioneer Wolfspeed (NYSE: WOLF), have helped start. Erickson and company have always maintained that Aehr has other growth verticals outside of EVs, though, and the company provided more than a passing hint at what that is during the lastearnings call Data centers, specifically silicon photonic chips.
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For example, photonic chips are used in the 2D and 3D sensing chips used in fingerprint readers and facial recognition capabilities in some high-end smartphones (like Apple's (NASDAQ: AAPL) iPhones). Through the first half of the current fiscal year, Aehr has reportedly shipped over $5 million in upgrade equipment to silicon photonics manufacturers, up more than 300% from 2021. But things change with silicon photonics used for data transmission, like in a massive data center, where the device will be in use constantly.
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17617.0
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2023-01-12 00:00:00 UTC
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Company News for Jan 12, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-jan-12-2023
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Shares of The Goldman Sachs Group Inc. GS fell 2% as the company has initiated a process to retrench around 6.5% of its total workforce in order to save costs.
Shares of Intuitive Surgical, Inc. ISRG tumbled 4.2% after the company reported that the placement of its da Vinci robot fell 4% year over year fourth-quarter 2022 to 369.
Apple Inc.’s AAPL shares rose 2.1% following news that the company is mulling touchscreen Mac laptop for 2025.
AMC Entertainment Holdings Inc.’s AMC shares soared 21.2% following speculation that the company could be a potential acquisition target.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : 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 Inc.’s AAPL shares rose 2.1% following news that the company is mulling touchscreen Mac laptop for 2025. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of The Goldman Sachs Group Inc. GS fell 2% as the company has initiated a process to retrench around 6.5% of its total workforce in order to save costs.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s AAPL shares rose 2.1% following news that the company is mulling touchscreen Mac laptop for 2025. Shares of The Goldman Sachs Group Inc. GS fell 2% as the company has initiated a process to retrench around 6.5% of its total workforce in order to save costs.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s AAPL shares rose 2.1% following news that the company is mulling touchscreen Mac laptop for 2025. Shares of Intuitive Surgical, Inc. ISRG tumbled 4.2% after the company reported that the placement of its da Vinci robot fell 4% year over year fourth-quarter 2022 to 369.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s AAPL shares rose 2.1% following news that the company is mulling touchscreen Mac laptop for 2025. Shares of Intuitive Surgical, Inc. ISRG tumbled 4.2% after the company reported that the placement of its da Vinci robot fell 4% year over year fourth-quarter 2022 to 369.
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17618.0
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2023-01-12 00:00:00 UTC
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PC Shipments Crashes in Q4 on Weak Demand, Macroeconomic Woes
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AAPL
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https://www.nasdaq.com/articles/pc-shipments-crashes-in-q4-on-weak-demand-macroeconomic-woes
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nan
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The decline in personal computer (PC) shipments in the first three quarters of 2022, after two consecutive years of strong year-over-year growth, aggravated in the fourth quarter, according to the latest data compiled by market research firm Gartner.
Per the preliminary data released by Gartner, PC shipments in the October-December 2022 quarter plunged 28.5% year over year to 65.3 million units. The independent research firm claims the decline to be the largest since it has been tracking the PC market since the mid-1990s.
Why is PC Sales Collapsing?
Gartner opines that the year-over-year decline was mainly due to weakening consumer demand for PCs and high inventory levels. Softening IT spending amid the ongoing economic and geopolitical uncertainties resulted in a decline in demand for PCs.
Computer - Mini computers Industry 5YR % Return
Computer - Mini computers Industry 5YR % Return
In 2020 and 2021, PC manufacturers benefited from increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the recent back-to-back four quarters of declining PC shipments depict an end to the industry’s demand boom. We believe that consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, Enterprises are delaying their large IT spending amid the macroeconomic challenges.
Gartner, in its report, pointed out that though supply-chain challenges have eased, higher inventory level has become a major issue due to softened demand for consumers and commercial PCs.
Vendor-Wise PC Shipments
Gartner revealed that all vendors registered steep year-over-year declines in their PC sales volumes. Per the data compiled by Gartner, Acer registered the highest fall of 41.2% to 3.59 million units, followed by Dell Technologies’ DELL 37% to $10.88 million PCs.
HP Inc.’s HPQ PC volumes plunged 29.1% to 13.22 million units, while Lenovo LNVGY registered a 28.6% year-over-year shipment decline to 15.66 million units. ASUS shipments contracted 19.8% to 4.88 million, while Apple AAPL witnessed a 10.2% decline to 7.01 million units.
Per Gartner, Lenovo continues to hold the top spot in the vendor list, followed by HP and Dell, with a market share of 24%, 20.2% and 16.7%, respectively. Apple, ASUS and Acer ended the October-December quarter with a market share of 10.7%, 7.5% and 5.5%, respectively.
Among the leading vendors, Dell, Apple and Lenovo each carry a Zacks Rank #3 (Hold), while HP Inc. has a Zacks Rank #4 (Sell). Shares of DELL, AAPL, LNVGY and HPQ have plunged 31.9%, 24%, 28.2% and 26.1%, respectively, year to date.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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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ASUS shipments contracted 19.8% to 4.88 million, while Apple AAPL witnessed a 10.2% decline to 7.01 million units. Shares of DELL, AAPL, LNVGY and HPQ have plunged 31.9%, 24%, 28.2% and 26.1%, respectively, year to date. 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.
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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. ASUS shipments contracted 19.8% to 4.88 million, while Apple AAPL witnessed a 10.2% decline to 7.01 million units. Shares of DELL, AAPL, LNVGY and HPQ have plunged 31.9%, 24%, 28.2% and 26.1%, respectively, year to date.
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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. ASUS shipments contracted 19.8% to 4.88 million, while Apple AAPL witnessed a 10.2% decline to 7.01 million units. Shares of DELL, AAPL, LNVGY and HPQ have plunged 31.9%, 24%, 28.2% and 26.1%, respectively, year to date.
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ASUS shipments contracted 19.8% to 4.88 million, while Apple AAPL witnessed a 10.2% decline to 7.01 million units. Shares of DELL, AAPL, LNVGY and HPQ have plunged 31.9%, 24%, 28.2% and 26.1%, respectively, year to date. 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.
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17619.0
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2023-01-12 00:00:00 UTC
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AAPL March 3rd Options Begin Trading
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AAPL
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https://www.nasdaq.com/articles/aapl-march-3rd-options-begin-trading
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the March 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new March 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $131.00 strike price has a current bid of $4.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $131.00, but will also collect the premium, putting the cost basis of the shares at $126.10 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $132.38/share today.
Because the $131.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.74% return on the cash commitment, or 27.31% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $131.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $136.00 strike price has a current bid of $3.90. If an investor was to purchase shares of AAPL stock at the current price level of $132.38/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $136.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.68% if the stock gets called away at the March 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $136.00 strike highlighted in red:
Considering the fact that the $136.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.95% boost of extra return to the investor, or 21.51% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $132.38) to be 36%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
PTEN shares outstanding history
MainStreet Bancshares Historical Earnings
UONE shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $136.00 strike highlighted in red: Considering the fact that the $136.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the March 3rd expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $136.00 strike highlighted in red: Considering the fact that the $136.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the March 3rd expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $136.00 strike highlighted in red: Considering the fact that the $136.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the March 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new March 3rd contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new March 3rd contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $136.00 strike highlighted in red: Considering the fact that the $136.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the March 3rd expiration.
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17620.0
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2023-01-12 00:00:00 UTC
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Top ETF Stories Of 2022 & 2023 Outlook
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AAPL
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https://www.nasdaq.com/articles/top-etf-stories-of-2022-2023-outlook
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nan
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nan
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(1:00) - 2023 Outlook For ETF Asset Growth
(7:10) - The Rise Of Actively Managed ETFs
(11:00) - Will Investors Continue To Move Away From Mutual Funds?
(14:05) - What Should You Know About Fee Compression Trends?
(17:20) - What New ETFs Were The Favorites In 2022?
(23:40) - ESG vs Anti ESG ETFs
(28:50) - Top ETFs To Watch In 2023
(32:10) - Episode Roundup: VOO, VTI, VOTE
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Elisabeth Kashner, Director of Global Fund Analytics at FactSet, about the biggest ETF stories of 2022 and 2023 outlook.
2022 was another great year for the fast-growing ETF industry. US ETFs attracted net inflows of almost $600 billion, the second highest on record, despite continued market turbulence.
Mutual funds, on the other hand, lost assets at a record pace, resulting in a $1.5 trillion gap in the flow of money from them into ETFs, per Bloomberg data.
About 430 new ETFs were introduced last year, slightly lower than record-breaking number of 477 in 2021. New launches included some very interesting strategies like single security ETFs.
Many actively managed ETFs beat their benchmarks in the challenging market conditions and gathered a lot of cash. These included the JPMorgan Equity Premium Income ETF JEPI and the iMGP DBi Managed Futures Strategy ETF DBMF.
Fund managers are also converting some of their mutual funds into ETFs. About 40 mutual funds have been converted into ETFs since Guinness Atkinson started the trend in March 2021, followed by a big move by Dimensional Fund Advisors.
We also discuss fee compression trends, the role of alternative strategies in a portfolio, and the rise of anti-ESG ETFs.
Elisabeth’s favorite ETFs for 2023 include the Vanguard S&P 500 ETF VOO and the Vanguard Total Stock Market ETF VTI. Apple AAPL, Microsoft MSFT and Alphabet GOOGL are the top holdings in these funds.
Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports
JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT and Alphabet GOOGL are the top holdings in these funds. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. Mutual funds, on the other hand, lost assets at a record pace, resulting in a $1.5 trillion gap in the flow of money from them into ETFs, per Bloomberg data.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT and Alphabet GOOGL are the top holdings in these funds. These included the JPMorgan Equity Premium Income ETF JEPI and the iMGP DBi Managed Futures Strategy ETF DBMF.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT and Alphabet GOOGL are the top holdings in these funds. (23:40) - ESG vs Anti ESG ETFs (28:50) - Top ETFs To Watch In 2023 (32:10) - Episode Roundup: VOO, VTI, VOTE Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Elisabeth Kashner, Director of Global Fund Analytics at FactSet, about the biggest ETF stories of 2022 and 2023 outlook.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT and Alphabet GOOGL are the top holdings in these funds. (1:00) - 2023 Outlook For ETF Asset Growth (7:10) - The Rise Of Actively Managed ETFs (11:00) - Will Investors Continue To Move Away From Mutual Funds?
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17621.0
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2023-01-12 00:00:00 UTC
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Why Apple Is My Favorite Big Tech Stock Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-is-my-favorite-big-tech-stock-right-now
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nan
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nan
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As investors look across the biggest tech stocks in the world, they'll find some seriously battered and bruised names. Meta Platforms, Microsoft, Alphabet, Amazon, Apple (NASDAQ: AAPL), and Netflix, for instance, have all been hammered over the past 12 months. Their stocks are down anywhere from 23% (for Apple) to about 59% (Meta) during this time.
Given all of these companies' histories of strong execution, profitable growth, and leading positions in many of the markets they operate in, this set of beaten-down stocks is a great place to look for investment ideas.
But which one is potentially the best investment? I'd argue it's Apple -- and here's why.
Its product focus
What really differentiates Apple from some of its peers is its focused business model. The company makes its money from only a handful of product lines. Highlighting the intense focus of the tech company are Apple's business segments:
iPhone (about 52% of revenue)
Mac (10%)
iPad (7%)
Services (20%)
Wearables, home, and accessories; these largely consist of Apple TV devices, headphones, smartwatches, and smart speakers (about 10% of revenue).
With such a focused business, Apple is able to be very thoughtful about what new products it wants to add to its arsenal over the years. This has worked out well for the company historically, with the iPhone, iPad, Apple Watch, and AirPods all serving as great examples of new product lines that contributed substantially to Apple's growth.
Given how loyal the company's customer base is, it wouldn't be surprising to see another new product eventually come to market and provide another phase of significant growth for the company.
Monetizing users
Apple's services business, which now accounts for nearly 20% of overall revenue, is one of the most promising aspects of the business. Through sales of third-party apps and app subscriptions and native services like AppleCare, Apple Pay, Apple Music, Apple Fitness, and Apple TV+, the company is monetizing its growing base of active devices, which as of the last reported count was 1.8 billion.
This growing number of active devices represents an immense opportunity for the company to continually look for more ways to provide value and, ultimately, monetize its user base.
A good steward of capital
Lastly (and probably most important), Apple has proved to be an exceptional capital allocator. This is a crucial trait to look for when considering investing in profitable companies.
Without prudent capital allocation, companes might squander their cash. Instead of burning through cash in unprofitable and speculative business ventures or acquisitions, Apple pinches pennies when it comes to acquisitions, and it pays back cash to shareholders in a way that balances dividends and prudent (and even opportunistic) share repurchases.
Today, Apple investors get a 0.7% dividend yield, and they can take comfort in the fact that management has executed a monstrous share repurchase program over the years, buying back $550 billion worth of its stock at an average price of $47 (on a split-adjusted basis) since the inception of the buyback program in 2012.
Apple continues to repurchase shares regularly and plans to do so for the foreseeable future. Given the company's good execution on its share repurchase program to date, management will likely continue to exercise wisdom regarding when and how much to spend on its own shares.
Combining these factors with the stock's reasonable valuation of 22 times earnings, it's easy to see why this looks like a good time to invest in Apple stock.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms, Microsoft, Alphabet, Amazon, Apple (NASDAQ: AAPL), and Netflix, for instance, have all been hammered over the past 12 months. Given all of these companies' histories of strong execution, profitable growth, and leading positions in many of the markets they operate in, this set of beaten-down stocks is a great place to look for investment ideas. This growing number of active devices represents an immense opportunity for the company to continually look for more ways to provide value and, ultimately, monetize its user base.
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Meta Platforms, Microsoft, Alphabet, Amazon, Apple (NASDAQ: AAPL), and Netflix, for instance, have all been hammered over the past 12 months. Through sales of third-party apps and app subscriptions and native services like AppleCare, Apple Pay, Apple Music, Apple Fitness, and Apple TV+, the company is monetizing its growing base of active devices, which as of the last reported count was 1.8 billion. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Netflix.
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Meta Platforms, Microsoft, Alphabet, Amazon, Apple (NASDAQ: AAPL), and Netflix, for instance, have all been hammered over the past 12 months. Highlighting the intense focus of the tech company are Apple's business segments: iPhone (about 52% of revenue) Mac (10%) iPad (7%) Services (20%) Wearables, home, and accessories; these largely consist of Apple TV devices, headphones, smartwatches, and smart speakers (about 10% of revenue). This has worked out well for the company historically, with the iPhone, iPad, Apple Watch, and AirPods all serving as great examples of new product lines that contributed substantially to Apple's growth.
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Meta Platforms, Microsoft, Alphabet, Amazon, Apple (NASDAQ: AAPL), and Netflix, for instance, have all been hammered over the past 12 months. Monetizing users Apple's services business, which now accounts for nearly 20% of overall revenue, is one of the most promising aspects of the business. That's right -- they think these 10 stocks are even better buys.
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17622.0
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2023-01-12 00:00:00 UTC
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Apple CEO Cook's pay more dependent on stock performance in 2023
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AAPL
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https://www.nasdaq.com/articles/apple-ceo-cooks-pay-more-dependent-on-stock-performance-in-2023
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nan
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nan
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Jan 12 (Reuters) - Apple Inc AAPL.O Chief Executive Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year and depend more on how well the iPhone maker's shares perform relative to market peers, regulatory filings showed.
Cook's compensation for the fiscal 2022 year ended September was $99.4 million, slightly higher than the $98.7 million he received the previous year, the company said in securities filings.
For 2023, Cook's compensation target was set at $49 million, more than 40% lower than his 2022 pay. Apple made the changes after 64% of shareholders approved Cook's pay package at its annual meeting last year, down from 94.9% the previous year.
The biggest change came in Cook's stock awards.
For fiscal 2022, Apple granted him $75 million in stock awards, half of which were based on how well Apple's shares performed. For fiscal 2023, Cook's stock award target was reduced to $40 million, with $30 million of the total depending on share performance.
If Apple's shares hit performance thresholds, the $30 million in performance awards could double to at least $60 million.
(Reporting by Stephen Nellis, editing by Deepa Babington)
((Stephen.Nellis@thomsonreuters.com ; (415) 344-4934))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 12 (Reuters) - Apple Inc AAPL.O Chief Executive Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year and depend more on how well the iPhone maker's shares perform relative to market peers, regulatory filings showed. Cook's compensation for the fiscal 2022 year ended September was $99.4 million, slightly higher than the $98.7 million he received the previous year, the company said in securities filings. For 2023, Cook's compensation target was set at $49 million, more than 40% lower than his 2022 pay.
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Jan 12 (Reuters) - Apple Inc AAPL.O Chief Executive Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year and depend more on how well the iPhone maker's shares perform relative to market peers, regulatory filings showed. For fiscal 2023, Cook's stock award target was reduced to $40 million, with $30 million of the total depending on share performance. If Apple's shares hit performance thresholds, the $30 million in performance awards could double to at least $60 million.
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Jan 12 (Reuters) - Apple Inc AAPL.O Chief Executive Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year and depend more on how well the iPhone maker's shares perform relative to market peers, regulatory filings showed. Cook's compensation for the fiscal 2022 year ended September was $99.4 million, slightly higher than the $98.7 million he received the previous year, the company said in securities filings. For fiscal 2023, Cook's stock award target was reduced to $40 million, with $30 million of the total depending on share performance.
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Jan 12 (Reuters) - Apple Inc AAPL.O Chief Executive Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year and depend more on how well the iPhone maker's shares perform relative to market peers, regulatory filings showed. Cook's compensation for the fiscal 2022 year ended September was $99.4 million, slightly higher than the $98.7 million he received the previous year, the company said in securities filings. For fiscal 2022, Apple granted him $75 million in stock awards, half of which were based on how well Apple's shares performed.
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17623.0
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2023-01-12 00:00:00 UTC
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The Apple and Meta Battle Is Moving to the Metaverse
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AAPL
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https://www.nasdaq.com/articles/the-apple-and-meta-battle-is-moving-to-the-metaverse
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nan
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nan
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Apple's (NASDAQ: AAPL) app tracking transparency changes had an estimated $10 billion impact on Meta Platforms' (NASDAQ: META) business and now Apple is coming after Meta's metaverse business. This is a battle investors will want to watch, as Travis Hoium covers in this video.
*Stock prices used were end-of-day prices of Jan. 9, 2023. The video was published on Jan. 12, 2023.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Shopify. 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. 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.
|
Apple's (NASDAQ: AAPL) app tracking transparency changes had an estimated $10 billion impact on Meta Platforms' (NASDAQ: META) business and now Apple is coming after Meta's metaverse business. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of 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.
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Apple's (NASDAQ: AAPL) app tracking transparency changes had an estimated $10 billion impact on Meta Platforms' (NASDAQ: META) business and now Apple is coming after Meta's metaverse business. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Shopify. 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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Apple's (NASDAQ: AAPL) app tracking transparency changes had an estimated $10 billion impact on Meta Platforms' (NASDAQ: META) business and now Apple is coming after Meta's metaverse business. See the 10 stocks *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 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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Apple's (NASDAQ: AAPL) app tracking transparency changes had an estimated $10 billion impact on Meta Platforms' (NASDAQ: META) business and now Apple is coming after Meta's metaverse business. This is a battle investors will want to watch, as Travis Hoium covers in this video. Travis Hoium has positions in Apple and Shopify.
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17624.0
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2023-01-12 00:00:00 UTC
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Google, Porsche in talks over Google Apps access - Manager Magazin
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AAPL
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https://www.nasdaq.com/articles/google-porsche-in-talks-over-google-apps-access-manager-magazin-0
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nan
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nan
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Adds further detail
BERLIN, Jan 12 (Reuters) - Google GOOGL.O and Porsche P911_p.DE are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies.
A focus of the deal would be access to Google Maps, the report added.
Spokespeople for Porsche and Google were not immediately available for comment.
Porsche Chief Financial Officer Lutz Meschke said at a conference call last October that the company was in close contact with Google and Apple as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China following the end of its cooperation with Volkswagen's Cariad unit on software research and development.
Porsche had previously been reluctant to use Google software because Google asked for too much data to be shared, according to Manager Magazin, even as Volkswagen brand Audi enabled its customers to connect their vehicles to Android phones.
Porsche managers travelled late in 2021 to the United States to discuss possible joint projects with iPhone maker Apple, whose CarPlay software already features in Porsche vehicles.
Porsche, which overtook its former parent as Europe's most valuable carmaker after listing on the stock exchange last September, reported earlier on Thursday a 3% rise in deliveries in 2022.
(Writing by Rachel More and Victoria Waldersee, Editing by Miranda Murray)
((rachel.more@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 further detail BERLIN, Jan 12 (Reuters) - Google GOOGL.O and Porsche P911_p.DE are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies. Porsche Chief Financial Officer Lutz Meschke said at a conference call last October that the company was in close contact with Google and Apple as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China following the end of its cooperation with Volkswagen's Cariad unit on software research and development. Porsche, which overtook its former parent as Europe's most valuable carmaker after listing on the stock exchange last September, reported earlier on Thursday a 3% rise in deliveries in 2022.
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Adds further detail BERLIN, Jan 12 (Reuters) - Google GOOGL.O and Porsche P911_p.DE are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies. Porsche had previously been reluctant to use Google software because Google asked for too much data to be shared, according to Manager Magazin, even as Volkswagen brand Audi enabled its customers to connect their vehicles to Android phones. Porsche managers travelled late in 2021 to the United States to discuss possible joint projects with iPhone maker Apple, whose CarPlay software already features in Porsche vehicles.
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Adds further detail BERLIN, Jan 12 (Reuters) - Google GOOGL.O and Porsche P911_p.DE are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies. Porsche Chief Financial Officer Lutz Meschke said at a conference call last October that the company was in close contact with Google and Apple as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China following the end of its cooperation with Volkswagen's Cariad unit on software research and development. Porsche had previously been reluctant to use Google software because Google asked for too much data to be shared, according to Manager Magazin, even as Volkswagen brand Audi enabled its customers to connect their vehicles to Android phones.
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Adds further detail BERLIN, Jan 12 (Reuters) - Google GOOGL.O and Porsche P911_p.DE are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies. A focus of the deal would be access to Google Maps, the report added. Spokespeople for Porsche and Google were not immediately available for comment.
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17625.0
|
2023-01-12 00:00:00 UTC
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TSMC Q4 profit up 78%, beats market expectations
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AAPL
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https://www.nasdaq.com/articles/tsmc-q4-profit-up-78-beats-market-expectations
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nan
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nan
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TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the October-December period rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier.
That compared with the T$289.44 billion average of 21 analyst estimates compiled by Refinitiv.
($1 = 30.4420 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Christopher Cushing)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the October-December period rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. That compared with the T$289.44 billion average of 21 analyst estimates compiled by Refinitiv.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the October-December period rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. ($1 = 30.4420 Taiwan dollars) (Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Christopher Cushing) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the October-December period rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. ($1 = 30.4420 Taiwan dollars) (Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Christopher Cushing) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the October-December period rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. That compared with the T$289.44 billion average of 21 analyst estimates compiled by Refinitiv.
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17626.0
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2023-01-12 00:00:00 UTC
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TSMC Q4 profit rises 78%, beats market expectations
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AAPL
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https://www.nasdaq.com/articles/tsmc-q4-profit-rises-78-beats-market-expectations
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Adds further earnings figures, context
TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for October-December rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier.
That compared with the T$289.44 billion average of 21 analyst estimates compiled by Refinitiv.
TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops. While the shortage has eased, analysts said the firm's dominance in making some of the world's most advanced chips has kept its order book full.
Revenue for the fourth quarter climbed 26.7% to $19.93 billion, versus TSMC's prior estimated range of $19.9 billion to $20.7 billion.
Shares in TSMC fell 27.1% in 2022, but are up 8.5% so far this year giving the company a market value of $412.78 billion. The stock rose 0.4% on Thursday, compared with a 0.1% fall for the benchmark index .TWII.
($1 = 30.4420 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Christopher Cushing)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for October-December rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. Adds further earnings figures, context TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for October-December rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. Adds further earnings figures, context TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. Revenue for the fourth quarter climbed 26.7% to $19.93 billion, versus TSMC's prior estimated range of $19.9 billion to $20.7 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for October-December rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. Adds further earnings figures, context TAIPEI, Jan 12 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips. Revenue for the fourth quarter climbed 26.7% to $19.93 billion, versus TSMC's prior estimated range of $19.9 billion to $20.7 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for October-December rise to T$295.9 billion ($9.72 billion) from T$166.2 billion a year earlier. TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops. Revenue for the fourth quarter climbed 26.7% to $19.93 billion, versus TSMC's prior estimated range of $19.9 billion to $20.7 billion.
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2023-01-12 00:00:00 UTC
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Should You Invest in the Invesco DWA Technology Momentum ETF (PTF)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dwa-technology-momentum-etf-ptf-4
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Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Invesco DWA Technology Momentum ETF (PTF) is a passively managed exchange traded fund launched on 10/12/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $207.81 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
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 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 84.90% of the portfolio. Industrials and Telecom round out the top three.
Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC).
The top 10 holdings account for about 36.76% of total assets under management.
Performance and Risk
The ETF has gained about 4.20% and is down about -22.86% so far this year and in the past one year (as of 01/12/2023), respectively. PTF has traded between $101.47 and $151 during this last 52-week period.
The ETF has a beta of 1.22 and standard deviation of 40.56% for the trailing three-year period, making it a high risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PTF is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.71 billion in assets, Vanguard Information Technology ETF has $40.93 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Invesco DWA Technology Momentum ETF (PTF) is a passively managed exchange traded fund launched on 10/12/2006.
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Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Alternatives Invesco DWA Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Intuit Inc (INTU) accounts for about 4.75% of total assets, followed by Apple Inc (AAPL) and Lattice Semiconductor Corp (LSCC). Click to get this free report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Invesco DWA Technology Momentum ETF (PTF) is a passively managed exchange traded fund launched on 10/12/2006.
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17628.0
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2023-01-12 00:00:00 UTC
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3 Reasons to Buy Apple Stock in 2023
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AAPL
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https://www.nasdaq.com/articles/3-reasons-to-buy-apple-stock-in-2023
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Like many tech companies, Apple (NASDAQ: AAPL) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. While year-over-year declines were primarily fueled by macroeconomic headwinds that affected the whole market, December saw investors grow uneasy over the company's dependence on China for manufacturing. A spike in COVID-19 cases in that country strained production at the factory that produces about 70% of all iPhones, a device that made up 52% of Apple's revenue in fiscal 2022.
Apple stock showed some recovery in January after production returned to 90% capacity, and the company has long-term plans in place to move manufacturing out of China entirely.
Despite recent roadblocks, Apple remains a reliable and resilient stock. The company's shares are still down 24% year over year, making now an excellent time to invest with an exciting year ahead.
Here are three reasons to buy Apple stock in 2023.
1. Apple is showing strength in a challenging year
Rising inflation and interest rates in 2022 triggered a sell-off as numerous companies reported dismal quarterly results. However, Apple seemed to fare better than many of its peers.
While Apple shares tumbled 24% since January 2022, the figure is significantly lower than Alphabet's stock decline of 35%, Amazon's 43%, and Netflix's 40% in the same period. When looking at the companies' free cash flows as of Sept. 30, Apple won out again with its $111.4 billion against Alphabet's $62.5 billion, Amazon's negative $26.3 billion, and Netflix's $717 million.
Moreover, in the third quarter of 2022, almost unwavering demand for Apple's products showed its strength when rivals' PC shipments fell 15%. However, Apple had the only growth among its competitors in the quarter at 40.2%. The same period also saw Microsoft report a slight revenue decline in its PC-focused segment, while Apple's Mac segment grew 25% year over year to $11.5 billion.
2. Apple is entering a high-growth market
Various acquisitions and filed patents over the years have revealed that Apple is planning to move into the virtual/augmented reality (AR/VR) market. More recently, numerous outlets reported that the company will likely announce an AR/VR headset in 2023, as early as spring.
The move is a promising view into Apple's future, as the $25.33 billion AR market is expected to see a 40.9% compound annual growth rate (CAGR) through 2030, according to Grand View Research. Meanwhile, the VR market was worth $21.8 billion in 2021 and will grow at a CAGR of 15% in the same period.
In the past, the tech star has proven particularly skillful at entering new markets and quickly growing its market share to a position of dominance. Without Apple, technology such as smartphones, tablets, smartwatches, and even Bluetooth headphones would likely have experienced significantly slower mainstream adoption.
Even with companies like Meta Platforms and Sony already participating in the VR market with their respective headsets, Apple's past performance in entering new markets proves purchasing its stock could be an investment in the future leader of the industry.
3. Apple is moving away from Intel
This year, Apple will complete its transition away from Intel processors to its own custom-made Apple Silicon chips in its Mac lineup. First announced in June 2020, the new systems on a chip (SoC) have been a bolt of lightning for the company's desktops and laptops, providing significantly more power and better battery life than its Intel computers.
In the second quarter of 2021, Apple's CFO, Luca Maestri, said "more than half" of its Mac and iPad sales in that quarter were to customers who had never owned one before as the more powerful Macs attracted consumer interest. Since Q2 2020, the quarter before Apple Silicon was first announced, the company's Mac revenue increased 116% from $5.3 billion to $11.5 billion in Q4 2022.
Over the past few years, Apple has slowly moved each of its computers to Apple Silicon chips, with devices such as the MacBook Pro, MacBook Air, Mac Mini, and 24-inch iMac already making the move. However, consumers are still anticipating Apple Silicon versions of a beefier Mac Mini, a larger iMac, and a Mac Pro. And rumors have also swirled that a 15-inch MacBook Air could be announced later this year.
Apple has already enjoyed significant revenue boosts from the introduction of Apple Silicon, and completing the transition in 2023 with the release of these final products is an excellent reason to invest in the company this year.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Intel, Meta Platforms, Microsoft, and Netflix. 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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Like many tech companies, Apple (NASDAQ: AAPL) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. While year-over-year declines were primarily fueled by macroeconomic headwinds that affected the whole market, December saw investors grow uneasy over the company's dependence on China for manufacturing. Apple is showing strength in a challenging year Rising inflation and interest rates in 2022 triggered a sell-off as numerous companies reported dismal quarterly results.
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Like many tech companies, Apple (NASDAQ: AAPL) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. Over the past few years, Apple has slowly moved each of its computers to Apple Silicon chips, with devices such as the MacBook Pro, MacBook Air, Mac Mini, and 24-inch iMac already making the move. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Intel, Meta Platforms, Microsoft, and Netflix.
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Like many tech companies, Apple (NASDAQ: AAPL) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. Apple is entering a high-growth market Various acquisitions and filed patents over the years have revealed that Apple is planning to move into the virtual/augmented reality (AR/VR) market. Apple is moving away from Intel This year, Apple will complete its transition away from Intel processors to its own custom-made Apple Silicon chips in its Mac lineup.
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Like many tech companies, Apple (NASDAQ: AAPL) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. Since Q2 2020, the quarter before Apple Silicon was first announced, the company's Mac revenue increased 116% from $5.3 billion to $11.5 billion in Q4 2022. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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17629.0
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2023-01-12 00:00:00 UTC
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1 Warren Buffett Stock Is Cheaper Than It Has Been in Years -- Is 2023 the Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-is-cheaper-than-it-has-been-in-years-is-2023-the-time-to-buy
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Warren Buffett urges investors to be "greedy when others are fearful," and his company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has undoubtedly listened. Berkshire Hathaway was an active buyer of stocks in 2022, with one of its most recent purchases being Taiwan Semiconductor Manufacturing (NYSE: TSM).
Berkshire has loaded up on shares of Taiwan Semi, according to its most recent 13F filing, buying over 60 million shares worth $4.1 billion. After this large purchase, Taiwan Semi is now Berkshire's 10th largest position, making up 1.4% of the company's investment portfolio. With Berkshire loading up on shares, should you? Let's find out.
Image source: Getty Images.
Taiwan Semiconductor's valuation is unreal...
One of the likely reasons that Berkshire bought billions of dollars worth of Taiwan Semi stock is because of the company's valuation. Taiwan Semi is trading at a rock-bottom multiple of 13.3 times earnings. That's the cheapest valuation for the company since 2016! It's also lower than the company's average valuation over its lifetime as a public company -- Taiwan Semi has traded at an average price-to-earnings multiple of 22.4 since 1994.
This is despite the company's incredible dominance in the semiconductor space. Taiwan Semi is the largest chip foundry in the world, with 57% market share in 2021, according to Gartner (NYSE: IT). In other words, Taiwan Semi provides over half of the world's chips, including all of Apple's (NASDAQ: AAPL) iPhone chips. As a result, Taiwan Semi has generated $71.7 billion in revenue along with $17.2 billion in free cash flow over the trailing 12 months.
It won't be surprising if this leadership position is sustained for the long haul, either. Taiwan Semi produces some of the most innovative chips in the world. This requires lots of capital, plus heavy investments in research and development. In the first nine months of 2022, for example, the company spent over $4 billion on research and development and nearly $25.5 billion on buying property and equipment.
There are only a select few businesses that have the ability to spend this much money to produce the gold-standard chips at the scale that Taiwan Semi does, making it difficult for any other rival to achieve this level of scale.
But there's a reason for this
At this valuation, Taiwan Semi might seem like a no-brainer investment. However, shares have plummeted because of a significant risk: China. The threat of China invading Taiwan has spooked investors. It's not an irrational concern, either. Taiwan Semi has 15 of its 16 fabrication facilities in Taiwan and China, so if China were to invade and temporarily suspend activity in these facilities, the company's production would slow dramatically.
However, Taiwan Semi is investing heavily in diversifying its production capabilities. The company recently announced plans to invest $40 billion in building two new fab facilities in the United States. These fabs aren't scheduled to begin production until 2024 and 2026, but it signals that Taiwan Semi is decreasing its reliance on Taiwan alone and that the company is diversifying its production capabilities.
Is the risk worth the potential reward?
It's hard to ignore this dirt-cheap valuation for a company as vital to the global economy as Taiwan Semi is, but the risk of Chinese invasion inhibiting production isn't something to brush over. The uncertainty is high for this investment, but so is the reward.
It's important to remember that this semiconductor stock wouldn't be the only stock getting sold off if this event occurred. Given Taiwan Semi's indispensability to the entire world, many businesses -- including giants like Apple -- would suffer if this risk played out.
This investment is risky and isn't for the faint of heart. However, for investors willing to take on uncertainty to own a leader in a vital industry with incredibly robust competitive advantages, it certainly looks attractive right now. Buffett seems to agree, and if you have a diversified portfolio, this might be a pitch worth swinging at this year.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Jamie Louko has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner and 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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In other words, Taiwan Semi provides over half of the world's chips, including all of Apple's (NASDAQ: AAPL) iPhone chips. Berkshire Hathaway was an active buyer of stocks in 2022, with one of its most recent purchases being Taiwan Semiconductor Manufacturing (NYSE: TSM). It's hard to ignore this dirt-cheap valuation for a company as vital to the global economy as Taiwan Semi is, but the risk of Chinese invasion inhibiting production isn't something to brush over.
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In other words, Taiwan Semi provides over half of the world's chips, including all of Apple's (NASDAQ: AAPL) iPhone chips. After this large purchase, Taiwan Semi is now Berkshire's 10th largest position, making up 1.4% of the company's investment portfolio. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing.
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In other words, Taiwan Semi provides over half of the world's chips, including all of Apple's (NASDAQ: AAPL) iPhone chips. Taiwan Semiconductor's valuation is unreal... One of the likely reasons that Berkshire bought billions of dollars worth of Taiwan Semi stock is because of the company's valuation. These fabs aren't scheduled to begin production until 2024 and 2026, but it signals that Taiwan Semi is decreasing its reliance on Taiwan alone and that the company is diversifying its production capabilities.
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In other words, Taiwan Semi provides over half of the world's chips, including all of Apple's (NASDAQ: AAPL) iPhone chips. Berkshire Hathaway was an active buyer of stocks in 2022, with one of its most recent purchases being Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semiconductor's valuation is unreal... One of the likely reasons that Berkshire bought billions of dollars worth of Taiwan Semi stock is because of the company's valuation.
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17630.0
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2023-01-12 00:00:00 UTC
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Is Meta Platforms Sitting on a $1 Trillion Opportunity?
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AAPL
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https://www.nasdaq.com/articles/is-meta-platforms-sitting-on-a-%241-trillion-opportunity
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Don't be too surprised if you find yourself or a friend spending a lot of money in the metaverse in the near future.
The metaverse could fuel $1 trillion in commerce by 2025, according to Accenture, a research firm. Even if that number proves to be overly optimistic, there's a lot of interest in metaverse applications beyond gaming, according to Accenture's research. Meanwhile, IDC sees the adoption of virtual reality (VR) and augmented reality (AR) headsets growing substantially over the next few years with nearly 84 million new devices expected to be sold over the next four years.
Meta Platforms (NASDAQ: META) is sitting in the driver's seat, with its Oculus headsets accounting for nearly 85% of AR/VR device sales in 2022. If the metaverse does truly turn into a $1 trillion commerce opportunity, it could be a big payday for Meta.
Owning the platform
The goal for Meta isn't just to sell an expensive consumer device; it's to own the platform people use. Becoming a platform owner is extremely lucrative and comes with a lot of power. Just ask Apple (NASDAQ: AAPL).
Apple's control of the iOS ecosystem has come with a lot of benefits. The App Store is particularly profitable, as it takes a 15% to 30% cut of all app sales, in-app purchases, and subscriptions sold in apps. From 2008 through 2021, Apple says it paid out $260 billion total to app developers, which means it's collected tens of billions in revenue itself.
Overall, the App Store is responsible for hundreds of billions in commerce. The most recent update was $643 billion in 2020, according to an independent study cited by Apple. That number has likely grown over the last two years, possibly nearing $1 trillion at this point based on its growth rate.
While it took 15 years for a trillion-dollar ecosystem to grow on Apple's devices, a couple of factors could propel the metaverse to reach that number a lot faster.
First, consider that Apple is only a small piece of total mobile commerce -- the study doesn't account for Android devices or commerce on the mobile web.
Moreover, the kinds of experiences on VR lend themselves to commerce a lot more. Immersive media, fitness programs, travel experiences, and retail are all big areas of interest for consumers. Those generate a lot of in-app sales compared to categories like social media, news, and utilities that often find themselves at the top of mobile app stores.
If Meta can replicate the success of Apple with an app store, it could generate $10 billion to $25 billion in high-margin revenue per year.
The advertising advantage
If consumers are spending a lot of money on a platform, that opens up a massive advertising opportunity. And if there's one thing Meta is good at, it's advertising.
Apple was slow to start capturing the advertising opportunity on iOS. After a false start, it's now set to rake in over $10 billion in ad revenue across its various services by next year.
Considering the advertising acumen of Meta, which generates over $100 billion in ad revenue per year, it could capitalize on the expected rise in metaverse spending. What's more, it has the potential to advertise metaverse applications within Facebook and Instagram and provide superior measurement capabilities compared to competitors as a virtue of owning the platform.
As such, the advertising opportunity on the metaverse could be in the same range as the app store opportunity.
Worth the investment?
Meta continues to plow money into its metaverse hardware and software, but should you put your money into Meta stock?
As the adoption of devices grows over the next few years, we could see several breakout applications that significantly increase engagement with AR and VR. That tipping point is when controlling the platform that 80%-plus of devices run on will show its value, and it has the potential to realize the revenue outlined above.
That said, there's no guarantee wide consumer adoption ever materializes as Meta and research firms like Accenture and IDC expect. Still, the core family of apps business provides a massive cash cow that continues to build on Meta's network advantages, and it's investing in superior ad technology to maintain its lead as a top destination for digital advertising spend. And at Meta's current stock price, the shares look like a bargain with the potential for a massive metaverse business on top.
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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. Adam Levy has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Accenture Plc, Apple, and Meta Platforms. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc, long March 2023 $120 calls on Apple, short January 2025 $310 calls on Accenture Plc, 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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Just ask Apple (NASDAQ: AAPL). Those generate a lot of in-app sales compared to categories like social media, news, and utilities that often find themselves at the top of mobile app stores. What's more, it has the potential to advertise metaverse applications within Facebook and Instagram and provide superior measurement capabilities compared to competitors as a virtue of owning the platform.
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Just ask Apple (NASDAQ: AAPL). See the 10 stocks *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 Accenture Plc, Apple, and Meta Platforms.
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Just ask Apple (NASDAQ: AAPL). If Meta can replicate the success of Apple with an app store, it could generate $10 billion to $25 billion in high-margin revenue per year. See the 10 stocks *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.
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Just ask Apple (NASDAQ: AAPL). The metaverse could fuel $1 trillion in commerce by 2025, according to Accenture, a research firm. The advertising advantage If consumers are spending a lot of money on a platform, that opens up a massive advertising opportunity.
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17631.0
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2023-01-11 00:00:00 UTC
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Is Apple a Screaming Buy Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-screaming-buy-right-now
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nan
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nan
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For much of 2022, Apple (NASDAQ: AAPL) resisted the market sell-off, but eventually, it succumbed. The tech giant finished the year down 27%, ahead of the Nasdaq but behind the S&P 500.
Despite its retreat, the iPhone maker delivered a better performance than most of its big tech peers, reporting revenue growth of 8% for the quarter and the year, even as it faced stiff headwinds from a stronger dollar. Earnings per share growth was slower, up in the fiscal fourth quarter from $1.24 to $1.29, as the company faced inflationary pressure in areas like wages and logistics.
However, after the sell-off, Apple stock looks surprisingly well priced. It currently trades at a price-to-earnings ratio of 21, the cheapest it has been since the pandemic started, only slightly more expensive than that of the S&P 500 at 20.2.
Is Apple a screaming buy? Let's take a look at the debate.
Image source: Getty Images.
Why Apple stock has fallen
There isn't anything particularly alarming in Apple's recent results, but there are a number of reasons why the stock has tumbled over the last few months.
First, the market is increasingly betting on a recession this year as the Federal Reserve continues to raise interest rates. As a seller of higher-end discretionary tech hardware, Apple is at risk of a recession, which would lead consumers to spend less on discretionary products. Even if they needed a new smartphone or computer, they could trade down to a cheaper Apple model or buy one from another company altogether.
Second, Apple has faced a number of challenges in its manufacturing in China. The company said in November that its iPhone factory in Zhengzhou was operating at significantly limited capacity, meaning it expected shipments of its iPhone 14 Pro and Pro Max to be lower in the fiscal first quarter than originally anticipated. The company did say that demand for those phones remains strong. The COVID-19 lockdowns that caused those delays have since ended, so the problem should be temporary. However, Apple also announced plans to move more production out of China.
Finally, the company's revenue approached $400 billion in fiscal 2022, and its growth is expected to be moderate. On such a large base of revenue, it will be difficult to put up 20% revenue growth. However, the valuation seems to reflect the dialed-down growth expectations.
The good news
With an earnings valuation on par with the S&P 500, Apple doesn't need to put up high growth numbers in order to justify its valuation. In fact, the company could easily grow earnings per share by double digits with just modest revenue and share buybacks. Apple has been committed to share buybacks, having reduced shares outstanding by more than 20% over the last five years. With the stock price down, it could get more aggressive with repurchases.
The company's economic moat has also never looked as strong. Apple has gained market share on Android and now claims a majority of market share in the U.S. It remains popular with the youngest generation of consumers; a recent survey by Piper Sandler found that 87% of teens owned an iPhone.
Additionally, there's also the possibility that Apple could introduce a new product, which could be on the horizon. Bloomberg just reported that the company was planning to launch its mixed-reality headset later this year, introducing it at its Worldwide Developer Conference in June.
Details about the headset, including the price, are still unclear, but the new device has the potential to move the needle for Apple.
Is Apple stock a buy?
I've been skeptical of Apple stock in the past as its valuation has looked stretched over much of the pandemic, but with the valuation even with the S&P 500, the stock looks well positioned to outperform over the next few years.
While a recession could deal it a setback, the company seems unlikely to lose market share during a downturn. It continues to improve its core product lineup, raising prices along the way, and the mixed-reality headset could be a significant profit driver in the coming years.
Apple is the world's most valuable brand and has a wide economic moat that should protect its leadership positions in smartphones, tablets, and computers. It deserves a premium valuation.
It's a good buy at the current price.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of January 9, 2023
Jeremy Bowman 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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For much of 2022, Apple (NASDAQ: AAPL) resisted the market sell-off, but eventually, it succumbed. Despite its retreat, the iPhone maker delivered a better performance than most of its big tech peers, reporting revenue growth of 8% for the quarter and the year, even as it faced stiff headwinds from a stronger dollar. Earnings per share growth was slower, up in the fiscal fourth quarter from $1.24 to $1.29, as the company faced inflationary pressure in areas like wages and logistics.
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For much of 2022, Apple (NASDAQ: AAPL) resisted the market sell-off, but eventually, it succumbed. However, after the sell-off, Apple stock looks surprisingly well priced. Bloomberg just reported that the company was planning to launch its mixed-reality headset later this year, introducing it at its Worldwide Developer Conference in June.
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For much of 2022, Apple (NASDAQ: AAPL) resisted the market sell-off, but eventually, it succumbed. Why Apple stock has fallen There isn't anything particularly alarming in Apple's recent results, but there are a number of reasons why the stock has tumbled over the last few months. Is Apple stock a buy?
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For much of 2022, Apple (NASDAQ: AAPL) resisted the market sell-off, but eventually, it succumbed. Is Apple stock a buy? I've been skeptical of Apple stock in the past as its valuation has looked stretched over much of the pandemic, but with the valuation even with the S&P 500, the stock looks well positioned to outperform over the next few years.
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17632.0
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2023-01-11 00:00:00 UTC
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AI Sucks the Oxygen From the Room. Should You Still Buy SoFi Stock?
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AAPL
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https://www.nasdaq.com/articles/ai-sucks-the-oxygen-from-the-room.-should-you-still-buy-sofi-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Buckle up, friends, it’s going to be a long one!
If you’re a sports fan, then you probably know that the college football championship game just happened a few nights ago (and boy, it wasn’t even close, was it?). But more importantly, this championship game was held at SoFi Stadium. Since then, SoFi’s been in the spotlight – and rightfully so.
Great products make for great businesses, which make for great stocks. And that’s exactly what you have with SoFi. Its world-class digitally native consumer finance app is a modern-day dream. And because the company doesn’t have to maintain a physical presence, it can pass those cost-savings onto customers through better yields and higher interest.
We see this as a company that will grow 20% per year into 2030. Yet SOFI stock is trading at 0.9X its book value. Traditional banking giants are trading at larger multiples – while growing at just 2% per year. And it’s all thanks to the major risk-off sentiment that began in 2022.
As soon as that sentiment abates – and it always does – SOFI stock could rocket in a hurry.
The AI Revolution Is Here
Pivoting to artificial intelligence, which we’ve talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation. What does this mean for AI stock investors?
Well, in 2021, the company was worth $14 billion. Less than two years later, it has increased its value by more than 100%. And we’re confident that the launch of ChaptGPT3 was a tipping point for the AI Revolution.
Coding, music creation, copywriting, storytelling – there are already a plethora of things you can do with AI, even in these early stages. And we just hit the fast-forward button.
Considering the state of the markets and the stressful macro backdrop we had in 2022, the launch of many AI platforms went unnoticed. While they’re flying under the radar today, they’ll soon attract tons of users – and value – leading to a categorical boom in AI.
Some trends are unstoppable forces, and it seems that AI is one of them.
TikTok Tops Out – Should You Buy SNAP Stock?
First off, we see short-form video as the future. It’s no secret that we’re big fans of TikTok, but the platform keeps getting banned in certain places, namely on government devices in various U.S. states.
Now, this doesn’t mean TikTok is done. But we do think its ascent is over. Bans are one thing, and widespread media coverage is another. If all media outlets agree on anything, it’s that TikTok is sketchy. And their coverage is likely to encourage users to migrate elsewhere.
As a result, platforms like Snap (SNAP) and Instagram will probably see their usage soar over the next two years. TikTok’s descent will act as an engagement tailwind for these platforms, and they’ll return to continued growth very soon.
The companies that will really thrive in this environment are those that tap into next-gen technology to augment user experience in a way that others cannot, and we think Snap really excels on that front. Get bullish here!
Watch the full episode of Hypergrowth Investing here.
On the date of publication, Seth Kuczinski did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post AI Sucks the Oxygen From the Room. Should You Still Buy SoFi Stock? 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. If you’re a sports fan, then you probably know that the college football championship game just happened a few nights ago (and boy, it wasn’t even close, was it?). The AI Revolution Is Here Pivoting to artificial intelligence, which we’ve talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Great products make for great businesses, which make for great stocks. TikTok Tops Out – Should You Buy SNAP Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. The AI Revolution Is Here Pivoting to artificial intelligence, which we’ve talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation. Should You Still Buy SoFi Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Now, this doesn’t mean TikTok is done. Bans are one thing, and widespread media coverage is another.
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17633.0
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2023-01-11 00:00:00 UTC
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5 Tech ETFs Riding High on Sectors' Comeback to Start 2023
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AAPL
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https://www.nasdaq.com/articles/5-tech-etfs-riding-high-on-sectors-comeback-to-start-2023
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nan
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nan
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After the worst year, the technology sector showed a strong comeback at the start of 2023. Hopes that the Fed will soon wrap up its inflation-fighting campaign have bolstered the risk appetite. Optimism over cooling inflation has compelled investors to buy beaten-up technology stocks.
The technology-heavy Nasdaq Composite Index rallied 2.6% in the initial days of the year, outperforming the other major indices. The S&P 500 and the Dow Jones Industrial Average gained 2% and 1.7%, respectively. As such, tech ETFs have been leading higher, with Valkyrie Bitcoin Miners ETF WGMI stealing the show with a 40.5% rise. This is followed by gains of 33.4% for VanEck Digital Assets Mining ETF DAM, 30.1% for Global X Blockchain ETF BKCH, 29.1% for VanEck Vectors Digital Transformation ETF DAPP and 28% for Bitwise Crypto Industry Innovators ETF BITQ.
Inflation has been easing and consumer confidence is rising. The latest job data showed a deceleration in wage growth, which gave investors hope that the Fed could ease off on its interest-rate increases, resulting in a boost to the tech shares.
Markets are expecting that the Fed could soon signal an end to its rate hiking cycle. A moderation in wage increases and a decline in U.S. services activity in December signal a slowdown in the U.S. economy and buoyed hopes of a less hawkish stance from the Fed. Per the latest data, traders are betting on a 25-bps rate hike at the central bank's upcoming policy meeting in February, with the rate seen slightly below 5% by June (read: 6 Sector ETFs That Show Promise After December Jobs Data).
After a massive decline, tech stocks have become extremely cheap at current valuations. The top 10 tech stocks shed a combined $4.6 trillion in market cap in 2022 as interest rates climbed and growth outlooks soured. The so-called FAAMG cohort — Facebook parent Meta Platforms Inc. META, Amazon.com Inc. AMZN, Apple AAPL, Microsoft MSFT and Alphabet Inc. GOOGL — lost 38% of its market value.
Further, the upside to the technology sector is confirmed by the Zacks Sector Rank in the top 30%, with more than 60% of the industries ranking in the top 37%. This suggests continued outperformance in the sector for the coming months.
Valkyrie Bitcoin Miners ETF (WGMI)
Valkyrie Bitcoin Miners ETF is an actively managed ETF that will invest at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF is an actively managed ETF that holds 24 stocks in its basket with an expense ratio of 0.75%.
Valkyrie Bitcoin Miners ETF has amassed $1.7 million in its asset base while trading in an average daily volume of 5,000 shares.
VanEck Digital Assets Mining ETF (DAM)
VanEck Digital Assets Mining ETF offers exposure to companies participating in the digital assets mining economy by tracking the MVIS Global Digital Assets Mining Index. It holds 20 stocks in its basket with a well-diversified portfolio, as each accounts for no more than 9% share.
VanEck Digital Assets Mining ETF has attracted $0.7 million in its asset base since its inception in May. It charges 50 bps in annual fees and trades in volume of under 1,000 shares per day on average (read: 5 Winning ETF Ideas for Your Portfolio in 2023).
Global X Blockchain ETF (BKCH)
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 24 stocks in its basket with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $41.3 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP)
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 20 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 94,000. DAPP has accumulated $19 million in its asset base.
Bitwise Crypto Industry Innovators ETF (BITQ)
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele (read: Tech ETFs 2022 Low-Down: Dividend Wins, Cryptocurrency Loses).
Holding 27 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top three firms with nearly double-digit exposure each. It charges 85 bps in annual fees from investors and trades in an average daily volume of 148,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $36.5 million in its asset base.
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Global X Blockchain ETF (BKCH): ETF Research Reports
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VanEck Digital Assets Mining ETF (DAM): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The so-called FAAMG cohort — Facebook parent Meta Platforms Inc. META, Amazon.com Inc. AMZN, Apple AAPL, Microsoft MSFT and Alphabet Inc. GOOGL — lost 38% of its market value. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports VanEck Digital Assets Mining ETF (DAM): ETF Research Reports To read this article on Zacks.com click here. The latest job data showed a deceleration in wage growth, which gave investors hope that the Fed could ease off on its interest-rate increases, resulting in a boost to the tech shares.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports VanEck Digital Assets Mining ETF (DAM): ETF Research Reports To read this article on Zacks.com click here. The so-called FAAMG cohort — Facebook parent Meta Platforms Inc. META, Amazon.com Inc. AMZN, Apple AAPL, Microsoft MSFT and Alphabet Inc. GOOGL — lost 38% of its market value. This is followed by gains of 33.4% for VanEck Digital Assets Mining ETF DAM, 30.1% for Global X Blockchain ETF BKCH, 29.1% for VanEck Vectors Digital Transformation ETF DAPP and 28% for Bitwise Crypto Industry Innovators ETF BITQ.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports VanEck Digital Assets Mining ETF (DAM): ETF Research Reports To read this article on Zacks.com click here. The so-called FAAMG cohort — Facebook parent Meta Platforms Inc. META, Amazon.com Inc. AMZN, Apple AAPL, Microsoft MSFT and Alphabet Inc. GOOGL — lost 38% of its market value. This is followed by gains of 33.4% for VanEck Digital Assets Mining ETF DAM, 30.1% for Global X Blockchain ETF BKCH, 29.1% for VanEck Vectors Digital Transformation ETF DAPP and 28% for Bitwise Crypto Industry Innovators ETF BITQ.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports VanEck Digital Assets Mining ETF (DAM): ETF Research Reports To read this article on Zacks.com click here. The so-called FAAMG cohort — Facebook parent Meta Platforms Inc. META, Amazon.com Inc. AMZN, Apple AAPL, Microsoft MSFT and Alphabet Inc. GOOGL — lost 38% of its market value. This is followed by gains of 33.4% for VanEck Digital Assets Mining ETF DAM, 30.1% for Global X Blockchain ETF BKCH, 29.1% for VanEck Vectors Digital Transformation ETF DAPP and 28% for Bitwise Crypto Industry Innovators ETF BITQ.
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17634.0
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2023-01-11 00:00:00 UTC
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After Hours Most Active for Jan 11, 2023 : BEKE, GOOG, KGC, BBBY, C, GERN, AAPL, BLUE, AMZN, MRO, BAC, FIS
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-11-2023-%3A-beke-goog-kgc-bbby-c-gern-aapl-blue-amzn-mro-bac
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -6.56 to 11,395.96. The total After hours volume is currently 107,577,073 shares traded.
The following are the most active stocks for the after hours session:
KE Holdings Inc (BEKE) is unchanged at $18.17, with 5,240,497 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Alphabet Inc. (GOOG) is unchanged at $92.26, with 4,847,009 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Kinross Gold Corporation (KGC) is unchanged at $4.56, with 4,608,809 shares traded. As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
Bed Bath & Beyond Inc. (BBBY) is +0.28 at $3.77, with 3,692,778 shares traded. BBBY's current last sale is 188.5% of the target price of $2.
Citigroup Inc. (C) is -0.03 at $48.68, with 3,658,108 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 $1.18. C is scheduled to provide an earnings report on 1/13/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.18 per share, which represents a 199 percent increase over the EPS one Year Ago
Geron Corporation (GERN) is +0.01 at $3.31, with 3,082,352 shares traded. As reported by Zacks, the current mean recommendation for GERN is in the "buy range".
Apple Inc. (AAPL) is -0.01 at $133.48, with 2,569,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
bluebird bio, Inc. (BLUE) is unchanged at $8.01, with 2,523,118 shares traded. BLUE's current last sale is 94.24% of the target price of $8.5.
Amazon.com, Inc. (AMZN) is +0.09 at $95.18, with 2,309,167 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Marathon Oil Corporation (MRO) is -0.01 at $27.04, with 2,135,425 shares traded. As reported by Zacks, the current mean recommendation for MRO is in the "buy range".
Bank of America Corporation (BAC) is -0.02 at $34.36, with 1,704,229 shares traded.BAC is scheduled to provide an earnings report on 1/13/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.79 per share, which represents a 82 percent increase over the EPS one Year Ago
Fidelity National Information Services, Inc. (FIS) is unchanged at $69.47, with 1,297,628 shares traded. FIS's current last sale is 78.94% of the target price of $88.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.01 at $133.48, with 2,569,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -0.01 at $133.48, with 2,569,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.18 per share, which represents a 199 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.01 at $133.48, with 2,569,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.18 per share, which represents a 199 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.01 at $133.48, with 2,569,401 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -6.56 to 11,395.96.
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17635.0
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2023-01-11 00:00:00 UTC
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Apple may add touch screens to Mac computers - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-may-add-touch-screens-to-mac-computers-bloomberg-news
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nan
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nan
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Adds details from report
Jan 11 (Reuters) - Apple Inc AAPL.O is actively working on adding touch screens to its Mac computers, Bloomberg News reported on Wednesday, citing people familiar with the project.
The first touch-screen Mac could be launched as soon as 2025 as part of an update to Apple's MacBook Pro, the report said.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Maju Samuel and Devika Syamnath)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report Jan 11 (Reuters) - Apple Inc AAPL.O is actively working on adding touch screens to its Mac computers, Bloomberg News reported on Wednesday, citing people familiar with the project. The first touch-screen Mac could be launched as soon as 2025 as part of an update to Apple's MacBook Pro, the report said. (Reporting by Bhanvi Satija in Bengaluru; Editing by Maju Samuel and Devika Syamnath) ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report Jan 11 (Reuters) - Apple Inc AAPL.O is actively working on adding touch screens to its Mac computers, Bloomberg News reported on Wednesday, citing people familiar with the project. The first touch-screen Mac could be launched as soon as 2025 as part of an update to Apple's MacBook Pro, the report said. (Reporting by Bhanvi Satija in Bengaluru; Editing by Maju Samuel and Devika Syamnath) ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report Jan 11 (Reuters) - Apple Inc AAPL.O is actively working on adding touch screens to its Mac computers, Bloomberg News reported on Wednesday, citing people familiar with the project. The first touch-screen Mac could be launched as soon as 2025 as part of an update to Apple's MacBook Pro, the report said. (Reporting by Bhanvi Satija in Bengaluru; Editing by Maju Samuel and Devika Syamnath) ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report Jan 11 (Reuters) - Apple Inc AAPL.O is actively working on adding touch screens to its Mac computers, Bloomberg News reported on Wednesday, citing people familiar with the project. The first touch-screen Mac could be launched as soon as 2025 as part of an update to Apple's MacBook Pro, the report said. Apple did not immediately respond to a Reuters request for comment.
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17636.0
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2023-01-11 00:00:00 UTC
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Technology Sector Update for 01/11/2023: VSAT,BA,MASI,AAPL,ENTG
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-01-11-2023%3A-vsatbamasiaaplentg
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nan
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nan
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Technology stocks continued to advance Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index gaining 0.6%.
In company news, Viasat (VSAT) added 2% after late Tuesday saying Chinese regulators have signed off on plans to equip Boeing (BA) 737-NG airliners with its Ka-band satellite connectivity system, with the new certification providing Viasat with the potential access to around three-quarters of the commercial jets now flying in China.
Masimo (MASI) rose 1.7% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary. Apple shares were 1.8% higher Wednesday afternoon.
Ondas Holdings (ONDS) gained 3.3% after Wednesday saying it will make unspecified job cuts in its American Robotics unit ahead of completing its purchase of industrial drone manufacturer Airobotics before the end of the month.
Entegris (ENTG) climbed 3.2% after it said it would invest around $50 million to increase its production and purification capacity over the next two years at its facilities in Colorado and California ahead of the anticipated increase in demand for its electronic chemicals business.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Masimo (MASI) rose 1.7% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. In company news, Viasat (VSAT) added 2% after late Tuesday saying Chinese regulators have signed off on plans to equip Boeing (BA) 737-NG airliners with its Ka-band satellite connectivity system, with the new certification providing Viasat with the potential access to around three-quarters of the commercial jets now flying in China. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary.
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Masimo (MASI) rose 1.7% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks continued to advance Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index gaining 0.6%. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary.
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Masimo (MASI) rose 1.7% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks continued to advance Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index gaining 0.6%. Ondas Holdings (ONDS) gained 3.3% after Wednesday saying it will make unspecified job cuts in its American Robotics unit ahead of completing its purchase of industrial drone manufacturer Airobotics before the end of the month.
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Masimo (MASI) rose 1.7% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks continued to advance Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index gaining 0.6%. In company news, Viasat (VSAT) added 2% after late Tuesday saying Chinese regulators have signed off on plans to equip Boeing (BA) 737-NG airliners with its Ka-band satellite connectivity system, with the new certification providing Viasat with the potential access to around three-quarters of the commercial jets now flying in China.
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17637.0
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2023-01-11 00:00:00 UTC
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Google parent files redacted motion to dismiss U.S. federal antitrust lawsuit
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AAPL
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https://www.nasdaq.com/articles/google-parent-files-redacted-motion-to-dismiss-u.s.-federal-antitrust-lawsuit
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nan
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nan
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By Diane Bartz
WASHINGTON, Jan 11 (Reuters) - Google parent Alphabet GOOGL.O filed on Wednesday a redacted version of its motion to dismiss a U.S. government lawsuit against it, which argued that the company broke antitrust law to maintain its monopoly in search and search advertising.
The filings on Wednesday show that the company is mounting a vigorous defense against the antitrust cases, which, if successful, could force the tech giant to spin off assets.
In December, Google asked Judge Amit Mehta of the U.S. District Court for the District of Columbia to dismiss both the antitrust case that the Justice Department filed in 2020 along with 11 states as well as a related complaint brought by 35 states led by Colorado. The motions were sealed and redacted versions were filed on Wednesday.
The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law when it paid billions annually to Apple AAPL.O, LG Electronics Inc 066570.KS and other smartphone makers to ensure that Google search was the default.
Google is facing additional allegations of antitrust violations from dozens of states. The lawsuit filed by Colorado and other, which was also filed in 2020, also alleges that Google illegally limits rivals' ability to operate its Search Ads 360 tool, used by advertisers to manage online marketing campaigns. It also argues that Google broke antitrust law to hamper rivals, such as travel-oriented websites.
Google urged the judge to toss out the state lawsuit also on the grounds that the states failed to show evidence that they harmed competition, among others.
Read more:
Biden says Republicans, Democrats need to unite against Big Tech 'abuses' -WSJ
Google asks court to toss out federal antitrust lawsuit
Biden says Republicans, Democrats need to unite against Big Tech 'abuses' -WSJ
(Reporting by Diane Bartz; Editing by Lisa Shumaker)
((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.
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The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law when it paid billions annually to Apple AAPL.O, LG Electronics Inc 066570.KS and other smartphone makers to ensure that Google search was the default. By Diane Bartz WASHINGTON, Jan 11 (Reuters) - Google parent Alphabet GOOGL.O filed on Wednesday a redacted version of its motion to dismiss a U.S. government lawsuit against it, which argued that the company broke antitrust law to maintain its monopoly in search and search advertising. The filings on Wednesday show that the company is mounting a vigorous defense against the antitrust cases, which, if successful, could force the tech giant to spin off assets.
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The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law when it paid billions annually to Apple AAPL.O, LG Electronics Inc 066570.KS and other smartphone makers to ensure that Google search was the default. By Diane Bartz WASHINGTON, Jan 11 (Reuters) - Google parent Alphabet GOOGL.O filed on Wednesday a redacted version of its motion to dismiss a U.S. government lawsuit against it, which argued that the company broke antitrust law to maintain its monopoly in search and search advertising. In December, Google asked Judge Amit Mehta of the U.S. District Court for the District of Columbia to dismiss both the antitrust case that the Justice Department filed in 2020 along with 11 states as well as a related complaint brought by 35 states led by Colorado.
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The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law when it paid billions annually to Apple AAPL.O, LG Electronics Inc 066570.KS and other smartphone makers to ensure that Google search was the default. By Diane Bartz WASHINGTON, Jan 11 (Reuters) - Google parent Alphabet GOOGL.O filed on Wednesday a redacted version of its motion to dismiss a U.S. government lawsuit against it, which argued that the company broke antitrust law to maintain its monopoly in search and search advertising. Read more: Biden says Republicans, Democrats need to unite against Big Tech 'abuses' -WSJ Google asks court to toss out federal antitrust lawsuit Biden says Republicans, Democrats need to unite against Big Tech 'abuses' -WSJ (Reporting by Diane Bartz; Editing by Lisa Shumaker) ((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.
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The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law when it paid billions annually to Apple AAPL.O, LG Electronics Inc 066570.KS and other smartphone makers to ensure that Google search was the default. By Diane Bartz WASHINGTON, Jan 11 (Reuters) - Google parent Alphabet GOOGL.O filed on Wednesday a redacted version of its motion to dismiss a U.S. government lawsuit against it, which argued that the company broke antitrust law to maintain its monopoly in search and search advertising. Google is facing additional allegations of antitrust violations from dozens of states.
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17638.0
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2023-01-11 00:00:00 UTC
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Technology Sector Update for 01/11/2023: MASI,AAPL,ENTG
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-01-11-2023%3A-masiaaplentg
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nan
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nan
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Technology stocks were advancing on Wednesday, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor Index gaining 0.4% this afternoon.
In company news, Masimo (MASI) rose 2.4% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary. Apple shares were 1.6% higher Wednesday afternoon.
Entegris (ENTG) climbed 2.3% after it said it would invest around $50 million to increase its production and purification capacity over the next two years at its facilities in Colorado and California ahead of the anticipated increase in demand for its electronic chemicals business.
Ondas Holdings (ONDS) gained 4.8% after Wednesday saying it will make unspecified job cuts in its American Robotics unit ahead of completing its purchase of industrial drone manufacturer Airobotics before the end of the month.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Masimo (MASI) rose 2.4% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary. Ondas Holdings (ONDS) gained 4.8% after Wednesday saying it will make unspecified job cuts in its American Robotics unit ahead of completing its purchase of industrial drone manufacturer Airobotics before the end of the month.
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In company news, Masimo (MASI) rose 2.4% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks were advancing on Wednesday, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor Index gaining 0.4% this afternoon. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary.
|
In company news, Masimo (MASI) rose 2.4% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks were advancing on Wednesday, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor Index gaining 0.4% this afternoon. Ondas Holdings (ONDS) gained 4.8% after Wednesday saying it will make unspecified job cuts in its American Robotics unit ahead of completing its purchase of industrial drone manufacturer Airobotics before the end of the month.
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In company news, Masimo (MASI) rose 2.4% after a US administrative law judge late Tuesday ruled that Apple (AAPL) infringed one of Masimo patents for pulse oximeters with selected Apple smart watches imported and sold in the US since 2020. Technology stocks were advancing on Wednesday, with the Technology Select Sector SPDR Fund (XLK) rising 1.1% and the Philadelphia Semiconductor Index gaining 0.4% this afternoon. The issue now moves to the US International Trade Commission to determine whether an import ban on Apple watches is necessary.
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17639.0
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2023-01-11 00:00:00 UTC
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Apple Is Making a Headset. Is It a Game Changer?
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AAPL
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https://www.nasdaq.com/articles/apple-is-making-a-headset.-is-it-a-game-changer
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nan
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nan
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Reports indicate that Apple (NASDAQ: AAPL) will introduce a headset this year, taking on Meta Platforms (NASDAQ: META) in this emerging market. Travis Hoium covers whether this is a game changer for Apple or not.
*Stock prices used were the end-of-day prices of Jan. 9, 2023. The video was published on Jan. 11, 2023.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. 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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Reports indicate that Apple (NASDAQ: AAPL) will introduce a headset this year, taking on Meta Platforms (NASDAQ: META) in this emerging market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of 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.
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Reports indicate that Apple (NASDAQ: AAPL) will introduce a headset this year, taking on Meta Platforms (NASDAQ: META) in this emerging market. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Reports indicate that Apple (NASDAQ: AAPL) will introduce a headset this year, taking on Meta Platforms (NASDAQ: META) in this emerging market. See the 10 stocks *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 Apple and Meta Platforms.
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Reports indicate that Apple (NASDAQ: AAPL) will introduce a headset this year, taking on Meta Platforms (NASDAQ: META) in this emerging market. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *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.
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17640.0
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2023-01-11 00:00:00 UTC
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Is Verizon the New Cable Bundle?
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AAPL
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https://www.nasdaq.com/articles/is-verizon-the-new-cable-bundle
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nan
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nan
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Verizon (NYSE: VZ) is no longer just a mobile phone network -- it's providing broadband services and now bundling with streaming providers. This is the new cable bundle, like it or not.
*Stock prices used were the end-of-day prices of Jan. 9, 2023. The video was published on Jan. 11, 2023.
10 stocks we like better than Verizon Communications
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 Verizon Communications 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
Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Comcast and Verizon Communications and 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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See the 10 stocks *Stock Advisor returns as of January 9, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Comcast and Verizon Communications and 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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10 stocks we like better than Verizon Communications When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Comcast and Verizon Communications and 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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See the 10 stocks *Stock Advisor returns as of January 9, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. Their opinions remain their own and are unaffected by The Motley Fool.
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17641.0
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2023-01-11 00:00:00 UTC
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Masimo (MASI) Gets Favorable Ruling in Apple Watch Patent Suit
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AAPL
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https://www.nasdaq.com/articles/masimo-masi-gets-favorable-ruling-in-apple-watch-patent-suit
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nan
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nan
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Masimo MASI announced that a U.S. Administrative Law Judge in Washington, D.C. ruled in favor of the company in a complaint filed with the U.S. International Trade Commission (ITC) against the iPhone-maker, Apple Inc. AAPL. The complaint was filed in 2021, alleging that Apple Inc. had infringed a number of Masimo’s patents including one of its pulse oximeter patents.
The recent ruling states that Apple Inc. has infringed the patent related to pulse oximeter by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components within the United States.
The Apple Watch Series 6, launched in 2020, was the first smartwatch model to incorporate pulse oximeter sensor and AAPL continues to use the sensor in the current Apple Watches. Following the recent court ruling, the U.S. ITC may consider an import ban on these Apple Watches.
Shares of Masimo gained 5.6% during after-hours trading on Jan 10, following the favorable court ruling. The company’s shares have gained 16.4% in the past six months compared with the industry’s increase of 2.8%. The S&P 500 Index however declined 0.3% in the same time period.
Image Source: Zacks Investment Research
Masimo believes that the ruling from the U.S. ITC is likely to restore fairness in the market. The company alleges that the world’s largest publicly traded company, Apple, has a history of infringing other companies’ technologies and repackaging them.
Masimo is the leading manufacturer of pulse oximeters for medical use that revolutionized the industry with its Masimo SET pulse oximetry technology. The company is using this technology in its newly-launched, first wearable device — Masimo W1 — that will provide consumers with accurate, continuous health-related data, including oxygen level, hydration index, and pulse, heart, and respiration rates.
Masimo’s technology is proven to have helped reduce blindness in babies in the neonatal intensive care unit, save lives of post-surgical patients on opioids and COVID patients monitored remotely during clinical studies.
Meanwhile, we note that Apple has also filed counter-allegations in 2022 stating that the MASIMO W1 watche infringes a number of its patents and thus seeks damages, injunctive relief and declaratory relief. Masimo continues to pursue all of its legal remedies in its litigation against Apple and believes that the company has good and substantial defenses to Apple’s claims.
Industry Prospects
Per a report by technavio, the wearables market share in the United States is expected to increase by USD 6.85 billion from 2021 to 2026 at a compound annual growth rate of 8.9%. Factors like preference for wearables electronic devices for payment and integration of artificial intelligence in wearable medical devices are expected to drive the demand for these devices.
Given the market potential, the court ruling may favor Masimo going forward if a ban is imposed on Apple Watches as it will likely impede the growth of one of the leading makers of wearable-devices in the U.S. market.
Notable Developments
Earlier this month, study data published in the Egyptian Journal of Anesthesia showed that continuous SpHb through Masimo Pulse CO-Oximetry indicated clinically acceptable accuracy of Hb measurement compared to invasive Hb, even, in patients with low Hb levels and those undergoing CS with antepartum hemorrhage. This is likely to solidify Masimo’s position in the global real-time patient monitoring space.
Last month, Masimo announced the full-market release of the Hydration Index for the Masimo W1 watch. In the same press release, the company announced that a medical version of Masimo W1 would be available outside the United States for use in telehealth and telemonitoring applications via Masimo SafetyNet and Personal SafetyNet for healthcare providers and payers along with individual use.
Masimo also announced the launch of the expansion of the HEOS platform in December to provide a robust and always-on connection to the Masimo Health secure cloud. This feature will add the ability to aggregate, record and display health data from wearable Masimo continuous and spot-check health and wellness devices.
Masimo Corporation Price
Masimo Corporation price | Masimo Corporation Quote
Zacks Rank & Stocks to Consider
Currently, Masimo carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN and Boston Scientific Corporation BSX.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has gained 6.9% against the industry’s 42.6% decline over the past year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Masimo Corporation (MASI) : Free Stock Analysis Report
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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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Administrative Law Judge in Washington, D.C. ruled in favor of the company in a complaint filed with the U.S. International Trade Commission (ITC) against the iPhone-maker, Apple Inc. AAPL. The Apple Watch Series 6, launched in 2020, was the first smartwatch model to incorporate pulse oximeter sensor and AAPL continues to use the sensor in the current Apple Watches. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Masimo Corporation (MASI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : 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 Boston Scientific Corporation (BSX) : Free Stock Analysis Report Masimo Corporation (MASI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Administrative Law Judge in Washington, D.C. ruled in favor of the company in a complaint filed with the U.S. International Trade Commission (ITC) against the iPhone-maker, Apple Inc. AAPL. The Apple Watch Series 6, launched in 2020, was the first smartwatch model to incorporate pulse oximeter sensor and AAPL continues to use the sensor in the current Apple Watches.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Masimo Corporation (MASI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Administrative Law Judge in Washington, D.C. ruled in favor of the company in a complaint filed with the U.S. International Trade Commission (ITC) against the iPhone-maker, Apple Inc. AAPL. The Apple Watch Series 6, launched in 2020, was the first smartwatch model to incorporate pulse oximeter sensor and AAPL continues to use the sensor in the current Apple Watches.
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Administrative Law Judge in Washington, D.C. ruled in favor of the company in a complaint filed with the U.S. International Trade Commission (ITC) against the iPhone-maker, Apple Inc. AAPL. The Apple Watch Series 6, launched in 2020, was the first smartwatch model to incorporate pulse oximeter sensor and AAPL continues to use the sensor in the current Apple Watches. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Masimo Corporation (MASI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17642.0
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2023-01-11 00:00:00 UTC
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Alphabet (GOOGL) Boosts YouTube Music With Redesigned Library
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-youtube-music-with-redesigned-library
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nan
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nan
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Alphabet’s GOOGL division Google is consistently adding new features to its music-streaming service, YouTube Music.
According to 9TO5Google, Google started rolling out a redesigned Library tab on YouTube Music for iOS and Android users.
By clicking on the View my option on the updated tab, users can switch between Library, Downloads, Uploads and Device files. The tab also shows options like Playlists, Songs, Albums and Artists to let users filter preferred songs.
With the abovementioned features, Google is providing an enhanced experience to Android and iOS users. This is likely to boost the adoption rate of YouTube Music.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing YouTube Music Efforts
Apart from the latest move, Google recently rolled out 2022 Recap features on YouTube Music to let users view personalized music stats of the entire year.
Google also rolled out the redesigned album UI on Android tablet. The redesign version shows the artiste’s name, type of media and the release year on top. Options like download, add to library, play, share and an overflow menu are also included.
Google added a capability whereby users can save queues as playlists. The company also rolled out its Recent Played and Turntable widgets to Android users.
We believe that the growing efforts will continue to contribute well to Google’s parent Alphabet’s Google services’ revenues in the upcoming period.
Revenues from the Google services business increased 2.5% year over year to $61.4 billion, accounting for 88.8% of the total third-quarter revenues.
Competitive Music Streaming Market
The growing music-streaming initiatives are positioning Alphabet well to rapidly penetrate the booming global music-streaming market.
Per a Grand View Research report, the global music streaming market is expected to see a CAGR of 14.7% from 2022 to 2030.
Given the upbeat scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT are also making strong efforts to capitalize on the above-mentioned prospect.
Amazon is gaining strong momentum in the music streaming market on the back of its expanding global footprint. AMZN offers its premium music subscription service Amazon Music Unlimited to customers. With Amazon Music Unlimited, music lovers can listen to any song anytime and anywhere on all types of devices, including smartphone, tablet, PC/Mac, Fire TV and Alexa-enabled devices like Amazon Echo. AMZN has lost 45.6% in the past year.
Shares of Apple have been down 25.3% in the same time frame. Apple’s music-streaming service Apple Music offers a subscription tier powered by Siri named Apple Music Voice Plan. Using Apple Music Voice Plan, subscribers can access millions of songs, playlists, personalized mixes, genre stations and Apple Music Radio. Music listeners can also download the Apple Music app on their Android tablet or Chromebook supporting Android apps.
Spotify provides commercial free music and ad-supported services to customers. Music lovers can enjoy ad-free music and offline playbacks with Spotify Premium service. SPOT users can enjoy the tablet version of Spotify on their iPad or Android tablets. Spotify has lost 61.4% in the past year.
Nevertheless, Google’s growing initiatives toward YouTube Music are expected to help Alphabet gain a competitive edge against aforesaid peers.
Shares of Alphabet have been down 36.7% in the past year compared with the Computer and Technology sector’s decline of 32.5%.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the upbeat scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT are also making strong efforts to capitalize on the above-mentioned prospect. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. By clicking on the View my option on the updated tab, users can switch between Library, Downloads, Uploads and Device files.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the upbeat scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT are also making strong efforts to capitalize on the above-mentioned prospect. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growing YouTube Music Efforts Apart from the latest move, Google recently rolled out 2022 Recap features on YouTube Music to let users view personalized music stats of the entire year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the upbeat scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT are also making strong efforts to capitalize on the above-mentioned prospect. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growing YouTube Music Efforts Apart from the latest move, Google recently rolled out 2022 Recap features on YouTube Music to let users view personalized music stats of the entire year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the upbeat scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT are also making strong efforts to capitalize on the above-mentioned prospect. Alphabet’s GOOGL division Google is consistently adding new features to its music-streaming service, YouTube Music.
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17643.0
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2023-01-11 00:00:00 UTC
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2 Must-Watch Big Tech Earnings Reports
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AAPL
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https://www.nasdaq.com/articles/2-must-watch-big-tech-earnings-reports
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nan
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nan
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As investors try to gauge how 2023 could play out, two telling earnings reports toward the beginning of the year worth watching will be Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META). The tech giants have both seen their stocks crumble over the past year as their sales trends deteriorated. Over the past five months, shares of Apple and Facebook parent Meta Platforms have fallen 25% and 60%, respectively. This compares to a 17% decline for the S&P 500 over this same period. The two companies' earnings reports can help investors see whether these businesses' top lines continued to worsen or demonstrated signs of revitalization -- something that could bode well for Wall Street's view of the consumer.
Ahead of Meta Platforms' fourth-quarter report on Feb. 1 and Apple's fiscal first-quarter update on Feb. 2, here's a quick preview of what to expect from both tech companies.
Apple: iPhone production constraints may weigh on sales
iPhone maker Apple wrapped up fiscal 2022 reporting full-year revenue growth of 7.8%. This was down from 33% growth in fiscal 2021. Notably, however, the company's 8% year-over-year growth in fiscal Q4 was an acceleration from 2% growth in fiscal Q2.
"Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," said Apple chief financial officer Luca Maestri in the company's fiscal fourth-quarter earnings release. But hopes for more strong growth in the company's important holiday quarter waned when Apple said in a Nov. 6 update that COVID-19 restrictions in China negatively impacted iPhone production enough for management to lower its expectations for shipments of its latest iPhone models.
While the degree of the negative impact on Apple's top line is unclear, the consensus analyst forecast calls for a 0.8% year-over-year decline in revenue during the quarter.
Meta Platforms: Revenue could decline again
Facebook parent and digital advertising juggernaut Meta Platforms has had a rough year, with its top line deteriorating significantly. After reporting 38% growth in the fourth quarter of 2021, growth slowed to just 7% in Q1 and then turned negative in Q2 and Q3. Meta's third-quarter revenue fell 4% year over year.
Looking to Q4, management said it expected revenue to be between $30 billion and $32.5 billion, down from about $33.7 billion in the fourth quarter of 2021. Management said factors weighing on the quarter are a foreign exchange headwind, increasing competition, macroeconomic uncertainty, underdeveloped monetization in its popular TikTok-like Reels product, and "signal loss" in the performance of some of its ad products because of changes in Apple's iOS ecosystem.
Analysts, on average, expect Meta's fourth-quarter revenue to decline 6% year over year.
Whatever Apple and Meta report during the first two days of February, it may be a good indicator of how healthy (or not) the consumer is. Both companies' sales are consumer-driven. Apple's product and service sales, of course, are derived primarily from consumer demand. In addition, marketer budgets for Meta Platforms' ad products are driven by their expected response from the consumer to their advertising campaigns. While investors will want more data points beyond these two companies' earnings reports to gauge the current state of the consumer, any outperformance to the upside relative to expectations from these two companies could signal a potentially healthier-than-expected consumer.
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When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As investors try to gauge how 2023 could play out, two telling earnings reports toward the beginning of the year worth watching will be Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META). The two companies' earnings reports can help investors see whether these businesses' top lines continued to worsen or demonstrated signs of revitalization -- something that could bode well for Wall Street's view of the consumer. "Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," said Apple chief financial officer Luca Maestri in the company's fiscal fourth-quarter earnings release.
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As investors try to gauge how 2023 could play out, two telling earnings reports toward the beginning of the year worth watching will be Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META). Apple: iPhone production constraints may weigh on sales iPhone maker Apple wrapped up fiscal 2022 reporting full-year revenue growth of 7.8%. Meta Platforms: Revenue could decline again Facebook parent and digital advertising juggernaut Meta Platforms has had a rough year, with its top line deteriorating significantly.
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As investors try to gauge how 2023 could play out, two telling earnings reports toward the beginning of the year worth watching will be Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META). Ahead of Meta Platforms' fourth-quarter report on Feb. 1 and Apple's fiscal first-quarter update on Feb. 2, here's a quick preview of what to expect from both tech companies. Meta Platforms: Revenue could decline again Facebook parent and digital advertising juggernaut Meta Platforms has had a rough year, with its top line deteriorating significantly.
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As investors try to gauge how 2023 could play out, two telling earnings reports toward the beginning of the year worth watching will be Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META). Apple: iPhone production constraints may weigh on sales iPhone maker Apple wrapped up fiscal 2022 reporting full-year revenue growth of 7.8%. Meta Platforms: Revenue could decline again Facebook parent and digital advertising juggernaut Meta Platforms has had a rough year, with its top line deteriorating significantly.
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17644.0
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2023-01-11 00:00:00 UTC
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Should Schwab U.S. LargeCap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-growth-etf-schg-be-on-your-investing-radar-5
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nan
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nan
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The Schwab U.S. LargeCap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $13.74 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.54%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 58% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN).
The top 10 holdings account for about 56.48% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has gained about 1.37% so far this year and is down about -26.88% in the last one year (as of 01/11/2023). In the past 52-week period, it has traded between $54.19 and $78.83.
The ETF has a beta of 1.08 and standard deviation of 29.71% for the trailing three-year period, making it a medium risk choice in the space. With about 229 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. LargeCap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHG is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $69.23 billion in assets, Invesco QQQ has $148.13 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
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. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Click to get this free report Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $13.74 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). The Schwab U.S. LargeCap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Click to get this free report Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Schwab U.S. LargeCap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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17645.0
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2023-01-11 00:00:00 UTC
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3 Stocks to Buy Before the Bull Market
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-before-the-bull-market
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nan
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nan
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Past history has shown us that a bull market will come as there's always a recovery from every prior downturn. It's not a matter of if, but rather when it will happen. And if you wait for the stock market to heat up again before you buy stocks, there is a danger that you could miss out on a big rally.
To avoid possibly missing out, you should consider investing in beaten-down stocks that you are confident will rally when the bull market arrives. Three stocks that look like good buys right now are Medtronic (NYSE: MDT), Apple (NASDAQ: AAPL), and FedEx (NYSE: FDX). Let's find out a bit more about these three companies and their stocks.
1. Medtronic
Medical device maker Medtronic makes products that treat more than 70 health conditions. But its recent results haven't been all that great because supply chain issues hindered its operations. Sales growth is nearly nonexistent right now and there is little optimism surrounding the healthcare stock of late.
But investing now, while many investors are down on Medtronic, could be an advantageous move to make. Medtronic isn't just trading at a 52-week low, it's also near multi-year lows. The last time it was consistently trading around these levels was in 2018. At less than 15 times future earnings, the stock is also relatively cheap -- the S&P 500 averages a forward price-to-earnings multiple of 17.
Organically, the business is still growing. According to its latest earnings report for the period ending Oct. 28, 2022, Medtronic's sales totaled $7.6 billion and rose 2% organically. But on a reported basis and after factoring in foreign exchange rates, the top line was down 3% compared to the same period a year ago. Medtronic is a global company with its medical devices helping people in 150 countries. But while that creates opportunities, it also means lots of exposure to the ups and downs of foreign exchange.
Once the bull market arrives, this could quickly become a much more coveted stock to own. Not only does Medtronic pay an attractive dividend yield of 3.4% that it has increased for 45 straight years, but the company also has some strong growth prospects. In August 2022, it noted that it had obtained more than 200 product approvals within the past 12 months, which should lead to better growth numbers in the future.
At a discounted price, Medtronic looks to be a good buy right now.
2. Apple
Shares of Apple are under some pressure because they are currently trading near their 52-week lows. In 2022, the stock fell 27% and underperformed the S&P 500 -- something that hasn't happened since 2018 when Apple declined 6.8% and the broad index fell by a more modest rate of 6.2%.
China is a big reason for Apple's struggles because the tech giant depends heavily on the country for its production. China's lockdowns and zero-COVID policies concerned investors about the risks Apple faces by having too much exposure to that part of the world. Diversifying its production is a greater priority for Apple moving forward, and it is going to move some production to Vietnam and India.
Apple's production challenges and disruptions are near-term problems, but these are not issues that should weigh down the business for long. The company has more than $48 billion in cash and marketable securities as of Sept. 24, 2022, and that gives the iPhone and iPad maker plenty of flexibility to adapt and make investments in other countries should it need to strengthen its supply chain. Over the trailing 12 months, the company has also generated $111.4 billion in free cash flow.
The problems Apple is dealing with are temporary in nature and investors are perhaps being overly cautious in the current bear market. As the stock market heats up again, Apple's stock should rally and recoup some of its recent losses.
3. FedEx
FedEx's 33% decline last year makes it the worst-performing stock on this list. A slowing economy and fears of a recession led to investors dumping the stock out of concerns that it would mean fewer products being shipped around the world and less demand for FedEx's services.
And that's happening already -- FedEx's operating income fell 26% to $1.2 billion for the period ending Nov. 30. The company noted that it was "navigating a weaker demand environment" as sales of $22.8 billion were down 3% year over year. FedEx is slashing costs but until the economy shows signs of recovery and demand improves, which is when the bull market may begin to emerge, it could be a challenging road ahead for the company.
In an increasingly global world, demand for e-commerce and shipments just isn't going away. And that's why despite the recent bearishness surrounding FedEx, this can still make for a solid long-term investment. Plus FedEx stock offers a decent dividend yield of 2.5% to give investors an extra incentive to buy and hold.
10 stocks we like better than Medtronic Plc
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 Medtronic Plc 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
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and FedEx. 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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Three stocks that look like good buys right now are Medtronic (NYSE: MDT), Apple (NASDAQ: AAPL), and FedEx (NYSE: FDX). The company has more than $48 billion in cash and marketable securities as of Sept. 24, 2022, and that gives the iPhone and iPad maker plenty of flexibility to adapt and make investments in other countries should it need to strengthen its supply chain. A slowing economy and fears of a recession led to investors dumping the stock out of concerns that it would mean fewer products being shipped around the world and less demand for FedEx's services.
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Three stocks that look like good buys right now are Medtronic (NYSE: MDT), Apple (NASDAQ: AAPL), and FedEx (NYSE: FDX). Medtronic Medical device maker Medtronic makes products that treat more than 70 health conditions. According to its latest earnings report for the period ending Oct. 28, 2022, Medtronic's sales totaled $7.6 billion and rose 2% organically.
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Three stocks that look like good buys right now are Medtronic (NYSE: MDT), Apple (NASDAQ: AAPL), and FedEx (NYSE: FDX). As the stock market heats up again, Apple's stock should rally and recoup some of its recent losses. See the 10 stocks *Stock Advisor returns as of January 9, 2023 David Jagielski has no position in any of the stocks mentioned.
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Three stocks that look like good buys right now are Medtronic (NYSE: MDT), Apple (NASDAQ: AAPL), and FedEx (NYSE: FDX). Apple's production challenges and disruptions are near-term problems, but these are not issues that should weigh down the business for long. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Medtronic Plc wasn't one of them!
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17646.0
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2023-01-11 00:00:00 UTC
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1 Warren Buffett ETF That Could Help You Retire a Millionaire
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-etf-that-could-help-you-retire-a-millionaire
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nan
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nan
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Investing in the stock market isn't easy, especially during periods of volatility. The last year has been rough for many investors, and right now can be a daunting time to buy.
However, now could actually be the buying opportunity of the decade. Some stocks are seeing their lowest prices in years, and if you miss this chance, it could be a long time before we see steep discounts like this again.
To take full advantage of this downturn, though, you'll need the right investments. Whether you're brand new to the stock market or are an experienced investor, there's one Warren Buffett-approved ETF that could potentially make you a millionaire: the S&P 500 ETF.
A Buffett-endorsed investment
An S&P 500 ETF is a fund that aims to mirror the performance of the S&P 500 index. It includes the same stocks as the index itself, or roughly 500 stocks from the largest and strongest corporations in the U.S.
When you own an S&P 500 ETF, you'll own a stake in all 500 companies within the index, including household names like Amazon, Apple, and Microsoft.
Through Berkshire Hathaway, Warren Buffett owns two S&P 500 ETFs: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
He also highly recommends this type of fund for other investors. "In my view, for most people, the best thing to do is to own the S&P 500 index fund," he said during the 2020 Berkshire Hathaway annual meeting.
In 2008, Buffett also made headlines for betting that an S&P 500 index fund could beat actively managed hedge funds. He won that million-dollar bet, with the S&P 500 earning returns of more than 125% over 10 years, while the five hedge funds averaged returns of just 36%.
How an S&P 500 ETF can protect your money
There are several reasons why this type of investment can be a good option for many people. For one, it can help keep your money safer.
No investment is immune to short-term volatility or market downturns. But the S&P 500 itself has a decades-long history of recovering from even the worst crashes, bear markets, and recessions. No matter what the future holds for the market, it's extremely likely the S&P 500 -- and your S&P 500 ETF -- will recover.
^SPX data by YCharts
Another advantage of this investment is that it's low maintenance. With just one ETF, you'll own a diversified collection of stocks from a wide variety of industries. You'll never need to worry about researching companies or deciding when to buy or sell. All you have to do is invest as much as you can afford, then let the fund do the rest.
Reaching millionaire status with an S&P 500 ETF
Despite its relative safety, the S&P 500 ETF could help you make a lot of money over time.
Since its inception in 1993, the SPDR S&P 500 ETF Trust has earned an average rate of return of 9.78% per year, which is on track with the S&P 500 index's roughly 10% average annual return, historically.
If you were investing, say, $250 per month while earning a 10% average annual return, here's approximately how much you could earn depending on how many years you continue to invest:
NUMBER OF YEARS TOTAL SAVINGS
20 $172,000
25 $295,000
30 $493,000
35 $813,000
40 $1,328,000
Source: Author's calculations via Investor.gov.
The more you're able to invest each month, the faster you'll accumulate $1 million. For instance, if you were to invest $500 per month (while still earning a 10% average annual return), you'd reach the million-dollar mark in just over 30 years. Invest $1,000 per month, and it would take roughly 24 years.
Choosing the right investments isn't always easy, but when the market is volatile, it's more important than ever. S&P 500 ETFs can be a smart option for many people, and by investing consistently over the long haul, you could earn more than you might think.
10 stocks we like better than Spdr S&p 500 ETF Trust
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF. 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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Some stocks are seeing their lowest prices in years, and if you miss this chance, it could be a long time before we see steep discounts like this again. "In my view, for most people, the best thing to do is to own the S&P 500 index fund," he said during the 2020 Berkshire Hathaway annual meeting. For instance, if you were to invest $500 per month (while still earning a 10% average annual return), you'd reach the million-dollar mark in just over 30 years.
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Since its inception in 1993, the SPDR S&P 500 ETF Trust has earned an average rate of return of 9.78% per year, which is on track with the S&P 500 index's roughly 10% average annual return, historically. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF. 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.
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Through Berkshire Hathaway, Warren Buffett owns two S&P 500 ETFs: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Since its inception in 1993, the SPDR S&P 500 ETF Trust has earned an average rate of return of 9.78% per year, which is on track with the S&P 500 index's roughly 10% average annual return, historically. 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.
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"In my view, for most people, the best thing to do is to own the S&P 500 index fund," he said during the 2020 Berkshire Hathaway annual meeting. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Vanguard S&P 500 ETF.
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17647.0
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2023-01-11 00:00:00 UTC
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Where do Tech Giants Stand After a Wild COVID Ride?
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AAPL
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https://www.nasdaq.com/articles/where-do-tech-giants-stand-after-a-wild-covid-ride
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nan
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nan
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Global stock markets have been on a rollercoaster ride since the COVID-19 pandemic shook the world. After closing at a record high on February 19, 2020, the U.S. stock market crashed due to the instability caused by an unprecedented pandemic. But, the stock market staged an unexpected comeback very soon and a bull market started on hopes of recovery and government stimulus.
Tech stocks enjoyed a strong rally in 2020 as certain businesses, like e-commerce and cloud computing, gained immensely from pandemic-led tailwinds. In contrast, tech stocks were battered in 2022 amid high interest rates and fears of a looming recession.
Let’s take a look at the stocks of six tech giants and see where they stand compared to their pre-COVID highs (we’ll consider stock prices until February 19, 2020, for pre-COVID highs).
Amazon (AMZN)
Amazon (NASDAQ:AMZN) stock has plunged from its pre-COVID high of $109.30. The stock closed at $89.87 on January 10, 2023, reflecting nearly 46% decline over the past year. It fell out of the trillion-dollar market cap club in November. Amazon shares skyrocketed in 2020 as consumers extensively depended on e-commerce retailers for various goods. However, as the economy reopened gradually, consumers started returning to physical stores, which led to a slowdown in Amazon’s revenue growth. Amazon stock rose just above 2% in 2021, lagging its FAANG peers.
While the company’s Amazon Web Services cloud computing division has been resilient and helped in offsetting the weakness in retail business this year, investors are concerned about the deceleration in AWS and the overall revenue growth.
Is Amazon a Buy, Hold, or Sell?
Wall Street remains bullish about Amazon’s long-term growth prospects based on its dominance in the e-commerce and cloud computing markets. The Street’s Strong Buy consensus rating is based on 36 Buys and three Holds. The average AMZN stock price target of $137.50 implies 53% upside potential.
Apple (AAPL)
Apple (NASDAQ:AAPL) stock, which closed at $130.73 on January 10, 2023, has appreciated compared to its pre-COVID high of $81.96. Shares rose about 35% in 2021, following an 82% rally in 2020. Work, play, and learn-from-home trends drove solid demand for Apple’s Mac and iPads during the pandemic. However, iPhone sales declined in Fiscal 2020 (ended September 26, 2020) in anticipation of newer models.
Despite supply chain issues, Apple’s iPhone sales bounced back strongly in Fiscal 2021. The company’s sales grew over 33% in Fiscal 2021, with strength across all product categories and Apple’s Services business. With fading pandemic tailwinds, persistent supply chain bottlenecks, and the impact of macro pressures on consumer spending, Apple’s sales growth slowed down to 7.8% in Fiscal 2022 (ended September 24, 2022).
What is the Target Price for Apple Stock?
While Apple stock has fallen nearly 25% over the past year, Wall Street continues to be bullish about one of the world’s most innovative companies. The Strong Buy consensus rating for Apple is backed by 22 Buys and five Holds. At $174.71, the average AAPL stock price target implies 33.6% upside potential.
Meta Platforms (META)
Meta Platforms (NASDAQ:META, formerly Facebook) stock has fallen significantly from its pre-COVID high of $224.20 to $132.99 on January 10, 2023. The leading social media platform benefited from high ad spending during the pandemic as businesses rushed to reach a growing online customer base.
However, a slowdown in ad spending following the economic reopening, growing competition from TikTok, and the shift to lower monetization products like Reels have weighed on Meta’s revenue in 2022. Furthermore, Apple’s iOS privacy changes have impacted Meta’s ability to target ads and have cost it billions of dollars. Investors are also concerned about the huge investments made by the company in its Metaverse projects.
Is Meta a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Meta Platforms, with a Moderate Buy consensus rating based on 29 Buys, eight Holds, and three Sells. At $148.08, the average Meta stock price target suggests upside potential of 11.4%. META stock has fallen more than 60% in the past 52 weeks.
Microsoft (MSFT)
Trading at $228.85 as of writing, Microsoft (NASDAQ:MSFT) stock has advanced when compared to its pre-COVID high of $190.70. Nonetheless, the stock has declined over 27% in the past year.
Microsoft has a diversified business model and is well known for its widely used Office 365 software, Windows operating system, hardware offerings, and Azure cloud computing platform. The company gained from rapid digitization and accelerated shift to the cloud triggered by work-from-home mandates during the pandemic.
With the waning of COVID-led favorable trends, MSFT’s revenue growth has slowed down due to a deceleration in Azure growth and lower Windows revenue owing to weakness in the personal computers (PC) market.
Is Microsoft Stock a Buy?
Despite near-term headwinds, Wall Street is positive about Microsoft’s multiple revenue streams and solid fundamentals. The Strong Buy consensus rating for Microsoft stock is backed by 26 Buys and three Holds. The average MSFT stock price target of $286.13 implies 25% upside potential.
Alphabet (GOOGL) (GOOG)
Shares of Google parent Alphabet (NASDAQ:GOOGL) (GOOG) are trading above their pre-COVID high of $76.54 (for GOOGL). Alphabet’s overall revenue grew 41% in 2021 compared to 13% rise in 2020, driven by strength in ad spending during the pandemic. However, high inflation and macro pressures led to a pullback in ad spending this year and impacted revenue from YouTube and Google’s search ads.
Is Alphabet Stock a Buy, Sell, or Hold?
Wall Street is highly bullish about Alphabet based on 32 unanimous Buys. Analysts are confident that the company’s dominant position in the digital ads space will support long-term growth. Additionally, the rapid growth in Google Cloud revenue is worth paying attention though the business is not profitable yet.
At $125.94, the average GOOGL stock price target implies 42.4% upside potential. GOOGL stock has tumbled 37% over the past year.
Tesla (TSLA)
We finally discuss electric vehicle (EV) maker Tesla (NASDAQ:TSLA), which is often considered a tech stock by several investors and Tesla bulls. Supply chain and production disruptions triggered by the COVID-19 resurgence in China and macro pressures have dragged down Tesla stock this year. Also, Tesla CEO Elon Musk’s Twitter acquisition and the subsequent distraction have shaken investor confidence.
Tesla was one of the worst-performing stocks of 2022. It has plunged over 66% in the past 52 weeks to $118.85, as of January 10, 2023. Nevertheless, it’s worth noting that the EV leader’s stock is still trading at a better level than the pre-COVID high of $64.60.
What is the Average Price Target for Tesla?
Despite ongoing economic pressures, several analysts are still optimistic about Tesla’s strong prospects in the lucrative EV market. The consensus Moderate Buy rating for TSLA stock is based on 20 Buys, nine Holds, and two Sells. The average TSLA stock price prediction of $251.48 indicates nearly 111.6% upside potential.
Conclusion
Among the six stocks discussed above, Amazon and Meta Platforms are trading below their pre-COVID highs. Wall Street analysts are looking beyond the near-term macro pressures and are highly optimistic about Amazon, Apple, Microsoft, and Alphabet. Meanwhile, they are cautiously optimistic about Tesla and Meta Platforms.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Apple (NASDAQ:AAPL) stock, which closed at $130.73 on January 10, 2023, has appreciated compared to its pre-COVID high of $81.96. At $174.71, the average AAPL stock price target implies 33.6% upside potential. While the company’s Amazon Web Services cloud computing division has been resilient and helped in offsetting the weakness in retail business this year, investors are concerned about the deceleration in AWS and the overall revenue growth.
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Apple (AAPL) Apple (NASDAQ:AAPL) stock, which closed at $130.73 on January 10, 2023, has appreciated compared to its pre-COVID high of $81.96. At $174.71, the average AAPL stock price target implies 33.6% upside potential. With fading pandemic tailwinds, persistent supply chain bottlenecks, and the impact of macro pressures on consumer spending, Apple’s sales growth slowed down to 7.8% in Fiscal 2022 (ended September 24, 2022).
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Apple (AAPL) Apple (NASDAQ:AAPL) stock, which closed at $130.73 on January 10, 2023, has appreciated compared to its pre-COVID high of $81.96. At $174.71, the average AAPL stock price target implies 33.6% upside potential. Let’s take a look at the stocks of six tech giants and see where they stand compared to their pre-COVID highs (we’ll consider stock prices until February 19, 2020, for pre-COVID highs).
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Apple (AAPL) Apple (NASDAQ:AAPL) stock, which closed at $130.73 on January 10, 2023, has appreciated compared to its pre-COVID high of $81.96. At $174.71, the average AAPL stock price target implies 33.6% upside potential. While the company’s Amazon Web Services cloud computing division has been resilient and helped in offsetting the weakness in retail business this year, investors are concerned about the deceleration in AWS and the overall revenue growth.
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17648.0
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2023-01-11 00:00:00 UTC
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Health Care Sector Update for 01/11/2023: BIOR, MASI, AAPL, AXNX, XLV, IBB
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AAPL
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https://www.nasdaq.com/articles/health-care-sector-update-for-01-11-2023%3A-bior-masi-aapl-axnx-xlv-ibb
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nan
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nan
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Health care stocks were flat to higher premarket Wednesday. The Health Care Select Sector SPDR Fund (XLV) was 0.16% higher and the iShares Biotechnology ETF (IBB) was inactive recently.
Biora Therapeutics (BIOR) was climbing past 20%, extending gains that followed pre-investigational new drug feedback from the US Food and Drug Administration and other program updates earlier this week.
Masimo (MASI) was gaining over 9% in value after saying a US administrative law judge has ruled that Apple (AAPL) infringed one of Masimo's pulse oximeter patents by importing and selling certain Apple watches within the US.
Axonics (AXNX) was over 8% higher after it reported preliminary Q4 revenue of $85.6 million to $86.0 million, up from $53.1 million a year earlier. Analysts polled by Capital IQ forecast $74.3 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Masimo (MASI) was gaining over 9% in value after saying a US administrative law judge has ruled that Apple (AAPL) infringed one of Masimo's pulse oximeter patents by importing and selling certain Apple watches within the US. Health care stocks were flat to higher premarket Wednesday. The Health Care Select Sector SPDR Fund (XLV) was 0.16% higher and the iShares Biotechnology ETF (IBB) was inactive recently.
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Masimo (MASI) was gaining over 9% in value after saying a US administrative law judge has ruled that Apple (AAPL) infringed one of Masimo's pulse oximeter patents by importing and selling certain Apple watches within the US. Health care stocks were flat to higher premarket Wednesday. The Health Care Select Sector SPDR Fund (XLV) was 0.16% higher and the iShares Biotechnology ETF (IBB) was inactive recently.
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Masimo (MASI) was gaining over 9% in value after saying a US administrative law judge has ruled that Apple (AAPL) infringed one of Masimo's pulse oximeter patents by importing and selling certain Apple watches within the US. The Health Care Select Sector SPDR Fund (XLV) was 0.16% higher and the iShares Biotechnology ETF (IBB) was inactive recently. Axonics (AXNX) was over 8% higher after it reported preliminary Q4 revenue of $85.6 million to $86.0 million, up from $53.1 million a year earlier.
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Masimo (MASI) was gaining over 9% in value after saying a US administrative law judge has ruled that Apple (AAPL) infringed one of Masimo's pulse oximeter patents by importing and selling certain Apple watches within the US. Health care stocks were flat to higher premarket Wednesday. The Health Care Select Sector SPDR Fund (XLV) was 0.16% higher and the iShares Biotechnology ETF (IBB) was inactive recently.
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17649.0
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2023-01-11 00:00:00 UTC
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Apple's (AAPL) Plan to Use Homegrown Chips to Hurt Suppliers
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-plan-to-use-homegrown-chips-to-hurt-suppliers
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nan
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nan
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Apple AAPL is planning to put more of its homemade components in its devices as part of its efforts to reduce reliance on suppliers and technology partners like Broadcom AVGO, Qualcomm QCOM, Samsung and LG.
According to the latest report from Bloomberg, Apple is planning to use its custom displays in mobile devices as early as 2024 instead of those currently supplied by Samsung and LG. The company is expected to replace the display in its high-end Apple Watch with its in-house designed display by the end of next year.
The iPhone maker is also planning to ditch Broadcom by designing an important chip in-house in 2025. Apple is expected to have its homegrown cellular modem chips ready by the end of 2024 or early 2025, which will replace modem chips from Qualcomm in its devices.
Apple has moved away from using Intel INTC processors in its MacBooks by using its Apple Silicon. The latest development does not bode well for Broadcom and Qualcomm, as Apple is one of their major revenue contributors.
Apple’s In-house Plan to Give More Control on Supply Chain
Apple’s shares have declined 25.5% in the past year, underperforming the S&P 500’s fall of 19.1%.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple has suffered significantly from the pandemic-related supply-chain constraints and component shortages in the past year. Its holiday season iPhone shipments are expected to suffer from disruptions at its China partner Foxconn’s factory in Zhengzhou.
Apple’s plans to use more homegrown chips will enable it to gain control over its supply chain. It is also diversifying its production base as Apple is set to produce part of its MacBooks in Vietnam beginning as early as May 2023.
Vietnam, along with India, has evolved as the preferred production base for Apple devices. Vietnam already produces AirPods, some iPads and Apple Watch. Apple partner Foxconn has started manufacturing iPhone 14 in the Sriperumbudur facility near Chennai.
With some MacBook production moving out to Vietnam, Apple will have a second production base for all its devices, along with China. The company is expected to move some AirPods and Beats earphone production to India.
Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are the key catalysts for Apple. The company has more than 900 million paid subscriptions across its devices.
Apple’s App Store continues to draw the attention of prominent developers from around the world, helping the company offer appealing new apps that drive App Store traffic. Since 2008, this Zacks Rank #3 (Hold) company has paid $320 billion to developers selling digital goods and services. Further, the growing number of AI-infused apps will attract more subscribers to Apple’s App Store. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is planning to put more of its homemade components in its devices as part of its efforts to reduce reliance on suppliers and technology partners like Broadcom AVGO, Qualcomm QCOM, Samsung and LG. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. According to the latest report from Bloomberg, Apple is planning to use its custom displays in mobile devices as early as 2024 instead of those currently supplied by Samsung and LG.
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Apple AAPL is planning to put more of its homemade components in its devices as part of its efforts to reduce reliance on suppliers and technology partners like Broadcom AVGO, Qualcomm QCOM, Samsung and LG. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple is expected to have its homegrown cellular modem chips ready by the end of 2024 or early 2025, which will replace modem chips from Qualcomm in its devices.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is planning to put more of its homemade components in its devices as part of its efforts to reduce reliance on suppliers and technology partners like Broadcom AVGO, Qualcomm QCOM, Samsung and LG. Apple’s In-house Plan to Give More Control on Supply Chain Apple’s shares have declined 25.5% in the past year, underperforming the S&P 500’s fall of 19.1%.
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Apple AAPL is planning to put more of its homemade components in its devices as part of its efforts to reduce reliance on suppliers and technology partners like Broadcom AVGO, Qualcomm QCOM, Samsung and LG. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s In-house Plan to Give More Control on Supply Chain Apple’s shares have declined 25.5% in the past year, underperforming the S&P 500’s fall of 19.1%.
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17650.0
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2023-01-10 00:00:00 UTC
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1 Green Flag and 1 Red Flag for Apple Stock in 2023
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-and-1-red-flag-for-apple-stock-in-2023
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nan
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nan
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Apple (NASDAQ: AAPL) started 2023 on a sorry note. Shares of the tech giant slipped to their 52-week lows on Jan. 3, driven by concerns that a shortfall in iPhone production due to lockdowns in China will affect the company's results for the December 2022 quarter.
Apple stock is now 27% off its 52-week high. However, the stock has a one-year median price target of $175, according to a consensus estimate of 39 analysts, which points toward a 34% upside from current levels. So, should investors buy Apple stock near its 52-week low based on analysts' projections? Or should they sell the stock in the anticipation that things could get worse? Let's find out.
The red flag for Apple stock
Analysts are worried that the company's quarterly performance for the three months ending in December 2022 may fall below expectations. This may not be surprising, given that iPhone production estimates for the holiday quarter have been dwindling. JPMorgan, for instance, expects Apple to manufacture 75.5 million iPhones in its fiscal first quarter (which ended last month), which is ideally its strongest quarter. That would be roughly 12% lower than the prior-year period's estimated production of 85.5 million iPhones.
Since the iPhone is Apple's biggest product line and produced 52% of its revenue in fiscal 2022, the segment's weakness is likely to weigh heavily on the company's financial performance. Analysts anticipate Apple's revenue to decline 1% year over year in the first quarter of fiscal 2023 to $122.6 billion. Its earnings are expected to shrink to $1.97 per share, compared to $2.10 per share in the prior-year period.
Meanwhile, analysts anticipate Apple's fiscal 2023 revenue to increase just 2.6% to $404 billion, while earnings could grow at a slower pace to $6.20 per share from $6.11 per share in fiscal 2022 (which ended on Sept. 24, 2022). For comparison, Apple's revenue increased 8% over the prior year in fiscal 2022, while earnings were up 9%.
So, the new fiscal year could turn out to be more challenging for the company. That's not surprising, as a recovery in the smartphone market isn't expected until the second half of 2023. Market research firm IDC has slashed its 2023 smartphone shipment forecasts by 70 million units already. The firm expects overall 2023 shipments to increase by 2.8% following a 6.5% decline in 2022.
The softness in the smartphone market, along with the production constraints that Apple faces in China, don't paint a good picture of its iPhone business in the near term. That could send the stock lower.
The green flag investors shouldn't miss
The iPhone, no doubt, plays a key role in determining Apple's fortunes given the product's massive influence over the company's top line, but the services business could help it mitigate the smartphone weakness to some extent in 2023.
That's because the services business is growing impressively on account of Apple's huge installed base of devices. Services revenue was up 14% year over year in fiscal 2022 to $78 billion, outpacing the company's overall revenue growth. The segment accounted for nearly a fifth of the tech giant's revenue last quarter, but its gross margin of 70.5% was well ahead of the 34.6% gross margin of the product business that produced the rest of the company's revenue.
A potential increase in iPhone sales in 2023, along with the addition of new products, such as a rumored mixed-reality headset and a foldable smartphone, could help Apple further expand its already impressive installed base of devices that stood at an estimated 1.8 billion at the beginning of 2022. As a result, Apple's services revenue could keep heading higher, and the segment's fat margin profile should rub off positively on the company's bottom line.
Meanwhile, an improvement in 5G smartphone sales could be another reason why Apple may be able to deliver stronger-than-expected iPhone growth. An estimated 611 million 5G smartphones were sold in 2022, up nearly 15% from the prior year. In 2023, 5G smartphone sales are expected to grow at a faster pace of over 20%.
As Apple is the dominant player in the 5G smartphone space, with a market share of nearly 30%, the faster growth in sales of 5G smartphones could help the company spring a positive surprise.
What should investors do?
While a tepid smartphone market and Apple's reliance on China for 80% of its production capacity are going to be potential headwinds for the stock in 2023, some pockets of positivity could help the company overcome these challenges. Apple's solid position in 5G phones, the growing services business, its rumored product pipeline, its focus on emerging markets, and the company's efforts to move more production out of China are tailwinds that investors should take note of.
The stock's sell-off in the past year has made it cheap. Apple is trading at 21 times trailing earnings, which represents a discount to its five-year average price-to-earnings ratio of 24. Buying this tech stock at its current valuation may turn out to be a smart move in the long run, especially considering that the company is sitting on some notable catalysts that could power its growth for a long time to come.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and JPMorgan Chase. 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) started 2023 on a sorry note. Shares of the tech giant slipped to their 52-week lows on Jan. 3, driven by concerns that a shortfall in iPhone production due to lockdowns in China will affect the company's results for the December 2022 quarter. The green flag investors shouldn't miss The iPhone, no doubt, plays a key role in determining Apple's fortunes given the product's massive influence over the company's top line, but the services business could help it mitigate the smartphone weakness to some extent in 2023.
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Apple (NASDAQ: AAPL) started 2023 on a sorry note. Analysts anticipate Apple's revenue to decline 1% year over year in the first quarter of fiscal 2023 to $122.6 billion. Meanwhile, analysts anticipate Apple's fiscal 2023 revenue to increase just 2.6% to $404 billion, while earnings could grow at a slower pace to $6.20 per share from $6.11 per share in fiscal 2022 (which ended on Sept. 24, 2022).
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Apple (NASDAQ: AAPL) started 2023 on a sorry note. As Apple is the dominant player in the 5G smartphone space, with a market share of nearly 30%, the faster growth in sales of 5G smartphones could help the company spring a positive surprise. While a tepid smartphone market and Apple's reliance on China for 80% of its production capacity are going to be potential headwinds for the stock in 2023, some pockets of positivity could help the company overcome these challenges.
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Apple (NASDAQ: AAPL) started 2023 on a sorry note. Analysts anticipate Apple's revenue to decline 1% year over year in the first quarter of fiscal 2023 to $122.6 billion. Meanwhile, analysts anticipate Apple's fiscal 2023 revenue to increase just 2.6% to $404 billion, while earnings could grow at a slower pace to $6.20 per share from $6.11 per share in fiscal 2022 (which ended on Sept. 24, 2022).
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17651.0
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2023-01-10 00:00:00 UTC
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EXCLUSIVE-Apple supplier BOE plans new factories in Vietnam -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-supplier-boe-plans-new-factories-in-vietnam-sources
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nan
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nan
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By Francesco Guarascio
HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd 000725.SZ, a supplier of both Apple Inc AAPL.O and Samsung Electronics Co Ltd 005930.KS, plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said.
The investment may total up to $400 million, one of them said.
The plan underscores efforts by technology firms led by U.S. iPhone maker Apple and Taiwanese device assembler Foxconn to lower supply chain exposure to China amid trade and geopolitical tension between Beijing and Washington and production disruption caused by China's COVID-19 containment measures.
BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea's Samsung and LG Electronics Inc 066570.KS, the people said, declining to be identified as negotiations were confidential.
BOE declined to comment.
Northern Vietnam has in recent years attracted significant investment from electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including flagship goods from Apple and Samsung.
Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and China's Luxshare Precision Industry 002475.SZ also make or plan to assemble a number of Apple products in the area such as laptop and tablet computers.
BOE plans to rent up to 100 hectares and use 20% for a plant making remote control systems at a cost of $150 million, one of the people said.
The rest would be for displays, with BOE spending $250 million to build a plant on 50 hectares while suppliers would use the remaining 30 hectares, all by 2025, the person said.
BOE plans to make the more sophisticated organic light-emitting diodes (OLED) screens at the site rather than liquid-crystal displays (LCDs), the person said.
Apple, which included BOE in its 2021 list of manufacturing partners, uses OLED screens for its latest iPhone smartphones.
China's biggest display maker by output is set to become the largest supplier of displays for new iPhones by 2024, analyst Kuo Ming-chi at TF International Securities forecast last week.
The U.S. tech giant, however, plans to start making mobile screens in-house by next year, Bloomberg reported on Wednesday.
Apple declined to comment.
BOE's Vietnam plan is not specifically aimed at supplying Apple, the person said.
Customer Samsung, the world's largest smartphone maker, produces half of its handsets in Vietnam while LG has a large operation in the country and is planning new investment.
(Reporting by Francesco Guarascio; Additional reporting by Josh Horwitz and Phuong Nguyen; Editing by Christopher Cushing)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Francesco Guarascio HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd 000725.SZ, a supplier of both Apple Inc AAPL.O and Samsung Electronics Co Ltd 005930.KS, plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. Northern Vietnam has in recent years attracted significant investment from electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including flagship goods from Apple and Samsung. Customer Samsung, the world's largest smartphone maker, produces half of its handsets in Vietnam while LG has a large operation in the country and is planning new investment.
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By Francesco Guarascio HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd 000725.SZ, a supplier of both Apple Inc AAPL.O and Samsung Electronics Co Ltd 005930.KS, plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea's Samsung and LG Electronics Inc 066570.KS, the people said, declining to be identified as negotiations were confidential. Hon Hai Precision Industry Co Ltd (Foxconn) 2317.TW and China's Luxshare Precision Industry 002475.SZ also make or plan to assemble a number of Apple products in the area such as laptop and tablet computers.
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By Francesco Guarascio HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd 000725.SZ, a supplier of both Apple Inc AAPL.O and Samsung Electronics Co Ltd 005930.KS, plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. The plan underscores efforts by technology firms led by U.S. iPhone maker Apple and Taiwanese device assembler Foxconn to lower supply chain exposure to China amid trade and geopolitical tension between Beijing and Washington and production disruption caused by China's COVID-19 containment measures. BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea's Samsung and LG Electronics Inc 066570.KS, the people said, declining to be identified as negotiations were confidential.
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By Francesco Guarascio HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd 000725.SZ, a supplier of both Apple Inc AAPL.O and Samsung Electronics Co Ltd 005930.KS, plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea's Samsung and LG Electronics Inc 066570.KS, the people said, declining to be identified as negotiations were confidential. Northern Vietnam has in recent years attracted significant investment from electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including flagship goods from Apple and Samsung.
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17652.0
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2023-01-10 00:00:00 UTC
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Apple to start using in-house screens from 2024 - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-to-start-using-in-house-screens-from-2024-bloomberg-news
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nan
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nan
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Adds details from report and background
Jan 10 (Reuters) - Apple Inc AAPL.O is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.
The company intends to begin by swapping out the display in the highest-end Apple Watches by the end of next year. Apple plans to eventually bring these displays to other devices as well, including the iPhone, according to the report.
The Cupertino, California-based tech giant is aiming to reduce its reliance on other partners such as Samsung Electronics 005930.KS and LG Corp 003550.KS.
Apple did not immediately respond to a Reuters' request for comment, while Samsung Display, a unit of Samsung Electronics 005930.KS, and LG Display 034220.KS declined to comment.
The report added that the screens would upgrade the current OLED standard to a technology called microLED.
Bloomberg News had reported on Monday that Apple plans to replace Broadcom Inc AVGO.O chips from its devices with an in-house design in 2025.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Sherry Jacob-Phillips)
((rishabh.jaiswal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report and background Jan 10 (Reuters) - Apple Inc AAPL.O is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter. The Cupertino, California-based tech giant is aiming to reduce its reliance on other partners such as Samsung Electronics 005930.KS and LG Corp 003550.KS. Bloomberg News had reported on Monday that Apple plans to replace Broadcom Inc AVGO.O chips from its devices with an in-house design in 2025.
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Adds details from report and background Jan 10 (Reuters) - Apple Inc AAPL.O is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter. Apple did not immediately respond to a Reuters' request for comment, while Samsung Display, a unit of Samsung Electronics 005930.KS, and LG Display 034220.KS declined to comment. Bloomberg News had reported on Monday that Apple plans to replace Broadcom Inc AVGO.O chips from its devices with an in-house design in 2025.
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Adds details from report and background Jan 10 (Reuters) - Apple Inc AAPL.O is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter. Apple plans to eventually bring these displays to other devices as well, including the iPhone, according to the report. Apple did not immediately respond to a Reuters' request for comment, while Samsung Display, a unit of Samsung Electronics 005930.KS, and LG Display 034220.KS declined to comment.
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Adds details from report and background Jan 10 (Reuters) - Apple Inc AAPL.O is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter. The company intends to begin by swapping out the display in the highest-end Apple Watches by the end of next year. Apple plans to eventually bring these displays to other devices as well, including the iPhone, according to the report.
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17653.0
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2023-01-10 00:00:00 UTC
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U.S. judge rules Apple Watch infringed Masimo's pulse oximeter patent
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AAPL
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https://www.nasdaq.com/articles/u.s.-judge-rules-apple-watch-infringed-masimos-pulse-oximeter-patent
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nan
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nan
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Adds comment from Apple
Jan 10 (Reuters) - A U.S. judge ruled that Apple AAPL.O had infringed on one of Masimo Corp's MASI.O pulse oximeter patents by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components, Masimo said on Tuesday.
The United States International Trade Commission (USITC) will now consider whether to implement an import ban on these Apple Watches, the medical device maker said.
"We respectfully disagree with today’s decision, and look forward to a full review by the Commission," Apple said in a statement.
(Reporting by Rahat Sandhu, Shivani Tanna and Akanksha Khushi in Bengaluru; Editing by Janane Venkatraman)
((Rahat.Sandhu@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 comment from Apple Jan 10 (Reuters) - A U.S. judge ruled that Apple AAPL.O had infringed on one of Masimo Corp's MASI.O pulse oximeter patents by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components, Masimo said on Tuesday. The United States International Trade Commission (USITC) will now consider whether to implement an import ban on these Apple Watches, the medical device maker said. "We respectfully disagree with today’s decision, and look forward to a full review by the Commission," Apple said in a statement.
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Adds comment from Apple Jan 10 (Reuters) - A U.S. judge ruled that Apple AAPL.O had infringed on one of Masimo Corp's MASI.O pulse oximeter patents by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components, Masimo said on Tuesday. The United States International Trade Commission (USITC) will now consider whether to implement an import ban on these Apple Watches, the medical device maker said. "We respectfully disagree with today’s decision, and look forward to a full review by the Commission," Apple said in a statement.
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Adds comment from Apple Jan 10 (Reuters) - A U.S. judge ruled that Apple AAPL.O had infringed on one of Masimo Corp's MASI.O pulse oximeter patents by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components, Masimo said on Tuesday. The United States International Trade Commission (USITC) will now consider whether to implement an import ban on these Apple Watches, the medical device maker said. (Reporting by Rahat Sandhu, Shivani Tanna and Akanksha Khushi in Bengaluru; Editing by Janane Venkatraman) ((Rahat.Sandhu@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 comment from Apple Jan 10 (Reuters) - A U.S. judge ruled that Apple AAPL.O had infringed on one of Masimo Corp's MASI.O pulse oximeter patents by importing and selling certain Apple Watches with light-based pulse oximetry functionality and components, Masimo said on Tuesday. The United States International Trade Commission (USITC) will now consider whether to implement an import ban on these Apple Watches, the medical device maker said. "We respectfully disagree with today’s decision, and look forward to a full review by the Commission," Apple said in a statement.
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17654.0
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2023-01-10 00:00:00 UTC
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US STOCKS-Wall St climbs; Powell comments avoid rate policy
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-powell-comments-avoid-rate-policy
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Jan 10 (Reuters) - U.S. stocks edged higher in afternoon trading Tuesday, led by big growth shares, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy.
In his first public appearance of the year, Powell saidat a forum sponsored by the Swedish central bank that the Fed's independence is essential for it to battle inflation.
Recent comments by other Fed officials have supported the view that the central bank needs to remain aggressive in raising interest rates to control inflation. Fed Governor Michelle Bowman said on Tuesday the bank will have to raise interest rates further to combat high inflation.
Investors anxiouslyawaited the U.S. consumer prices index report Thursday, which is expected to show some moderation in year-on-year prices in December.
"There are some indications that inflation is slowing significantly. What investors are really looking for is a gap down in major inflation data that could probably get the Fed's attention," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Traders are betting on a 25-basis point rate hike at the Fed's upcoming policy meeting in February. FEDWATCH
Communications services .SPLRCL and consumer discretionary .SPLRCD were among the day's best performers among sectors.
The Dow Jones Industrial Average .DJI rose 119.1 points, or 0.36%, to 33,636.75, the S&P 500 .SPX gained 20.54 points, or 0.53%, to 3,912.63 and the Nasdaq Composite .IXIC added 82.96 points, or 0.78%, to 10,718.61.
Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O gave the S&P 500 its biggest boost.
Some investors are hoping for signs that the Fed may soon take a break after raising the federal funds rate seven times in 2022.
The World Bank on Tuesday slashed its 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies.
Broadcom Inc AVGO.O shares fell, a day after a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025.
Advancing issues outnumbered decliners on the NYSE by a 2.06-to-1 ratio; on Nasdaq, a 2.31-to-1 ratio favored advancers.
The S&P 500 posted two new 52-week highs and no new lows; the Nasdaq Composite recorded 54 new highs and 25 new lows.
(Additional reporting by Ankika Biswas, Amruta Khandekar and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli, Shounak Dasgupta and Richard Chang)
((caroline.valetkevitch@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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Broadcom Inc AVGO.O shares fell, a day after a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. By Caroline Valetkevitch NEW YORK, Jan 10 (Reuters) - U.S. stocks edged higher in afternoon trading Tuesday, led by big growth shares, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy. Recent comments by other Fed officials have supported the view that the central bank needs to remain aggressive in raising interest rates to control inflation.
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Broadcom Inc AVGO.O shares fell, a day after a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. Fed Governor Michelle Bowman said on Tuesday the bank will have to raise interest rates further to combat high inflation. Traders are betting on a 25-basis point rate hike at the Fed's upcoming policy meeting in February.
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Broadcom Inc AVGO.O shares fell, a day after a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. Recent comments by other Fed officials have supported the view that the central bank needs to remain aggressive in raising interest rates to control inflation. Fed Governor Michelle Bowman said on Tuesday the bank will have to raise interest rates further to combat high inflation.
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Broadcom Inc AVGO.O shares fell, a day after a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. By Caroline Valetkevitch NEW YORK, Jan 10 (Reuters) - U.S. stocks edged higher in afternoon trading Tuesday, led by big growth shares, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy. Recent comments by other Fed officials have supported the view that the central bank needs to remain aggressive in raising interest rates to control inflation.
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17655.0
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2023-01-10 00:00:00 UTC
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ITC Judge Rules Apple Violated U.S. Laws By Infringing Masimo Pulse Oximeter Patent
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AAPL
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https://www.nasdaq.com/articles/itc-judge-rules-apple-violated-u.s.-laws-by-infringing-masimo-pulse-oximeter-patent
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nan
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nan
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(RTTNews) - Masimo (MASI) said that a United States Administrative Law Judge in Washington, D.C. ruled that Apple Inc. (AAPL) violated U.S. trade laws, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe one of Masimo's pulse oximeter patents.
Apple first released its pulse oximeter sensor with the Apple Watch Series 6 in 2020 and continues to use it in the current Apple Watches.
Masimo noted that the United States International Trade Commission will now consider whether to implement an import ban on the Apple Watches.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Masimo (MASI) said that a United States Administrative Law Judge in Washington, D.C. ruled that Apple Inc. (AAPL) violated U.S. trade laws, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe one of Masimo's pulse oximeter patents. Masimo noted that the United States International Trade Commission will now consider whether to implement an import ban on the Apple Watches. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Masimo (MASI) said that a United States Administrative Law Judge in Washington, D.C. ruled that Apple Inc. (AAPL) violated U.S. trade laws, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe one of Masimo's pulse oximeter patents. Apple first released its pulse oximeter sensor with the Apple Watch Series 6 in 2020 and continues to use it in the current Apple Watches. Masimo noted that the United States International Trade Commission will now consider whether to implement an import ban on the Apple Watches.
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(RTTNews) - Masimo (MASI) said that a United States Administrative Law Judge in Washington, D.C. ruled that Apple Inc. (AAPL) violated U.S. trade laws, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe one of Masimo's pulse oximeter patents. Apple first released its pulse oximeter sensor with the Apple Watch Series 6 in 2020 and continues to use it in the current Apple Watches. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Masimo (MASI) said that a United States Administrative Law Judge in Washington, D.C. ruled that Apple Inc. (AAPL) violated U.S. trade laws, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe one of Masimo's pulse oximeter patents. Apple first released its pulse oximeter sensor with the Apple Watch Series 6 in 2020 and continues to use it in the current Apple Watches. Masimo noted that the United States International Trade Commission will now consider whether to implement an import ban on the Apple Watches.
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17656.0
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2023-01-10 00:00:00 UTC
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US STOCKS-Wall St rises as Fed's Powell steers clear of monetary policy outlook
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-feds-powell-steers-clear-of-monetary-policy-outlook
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
Jan 10 (Reuters) - Wall Street's main indexes rose on Tuesday as Federal Reserve Chair Jerome Powell steered clear of commenting on the monetary policy outlook, with focus turning to an upcoming inflation reading scheduled for later this week.
Powell's remarks, which offered no clues on the Fed's plans for future tightening, came as a major relief after two other policymakers on Monday injected a note of caution over the interest rate outlook.
"He (Powell) hasn't disrupted the market in any way and the fact that he stresses the need for political independence while tackling inflation, that's a definite positive for the markets," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York.
Traders held on to bets of a 25-basis point rate hike at the U.S. central bank's upcoming policy meeting in February, with the terminal rate seen slightly below 5% by June. FEDWATCH
Markets have been hoping that the Fed could soon signal an end to its rate hiking cycle following recent signs of a slowdown in the U.S. economy, even as policymakers reiterate the central bank's priority to bring inflation under control.
"The Fed has a little bit more tightening to do," said David Russell, vice president of market intelligence at TradeStation Group, adding that Thursday's inflation report will be crucial in shaping interest rate expectations.
The much-awaited consumer prices index (CPI) report from the U.S. Labor Department is expected to show some moderation in year-on-year prices in December.
The Fed's aggressive monetary policy tightening to curb decades-high inflation hammered U.S. equities in 2022, with the three main indexes logging their steepest annual declines since 2008.
Fed Governor Michelle Bowman said on Tuesday the U.S. central bank will have to raise interest rates further to combat high inflation.
Among major S&P 500 sectors, retailers .SPXRT were up 0.8% and in the lead, while consumer discretionary stocks .SPLRCD rose 0.2%, with Amazon.com Inc AMZN.O driving gains in both the subindexes.
Healthcare stocks .SPXHC rose 0.5% and were also a major boost to the benchmark S&P 500 index.
At 11:59 a.m. ET, the Dow Jones Industrial Average .DJI was up 28.41 points, or 0.08%, at 33,546.06, the S&P 500 .SPX was up 2.71 points, or 0.07%, at 3,894.80, and the Nasdaq Composite .IXIC was up 17.25 points, or 0.16%, at 10,652.90.
Broadcom Inc AVGO.O fell 3.4% on a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025.
Advancing issues outnumbered decliners for a 1.17-to-1 ratio on the NYSE and a 1.62-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 37 new highs and 20 new lows.
(Reporting by Ankika Biswas, Amruta Khandekar and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta)
((Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom Inc AVGO.O fell 3.4% on a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. By Amruta Khandekar and Ankika Biswas Jan 10 (Reuters) - Wall Street's main indexes rose on Tuesday as Federal Reserve Chair Jerome Powell steered clear of commenting on the monetary policy outlook, with focus turning to an upcoming inflation reading scheduled for later this week. FEDWATCH Markets have been hoping that the Fed could soon signal an end to its rate hiking cycle following recent signs of a slowdown in the U.S. economy, even as policymakers reiterate the central bank's priority to bring inflation under control.
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Broadcom Inc AVGO.O fell 3.4% on a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. Traders held on to bets of a 25-basis point rate hike at the U.S. central bank's upcoming policy meeting in February, with the terminal rate seen slightly below 5% by June. The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 37 new highs and 20 new lows.
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Broadcom Inc AVGO.O fell 3.4% on a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. By Amruta Khandekar and Ankika Biswas Jan 10 (Reuters) - Wall Street's main indexes rose on Tuesday as Federal Reserve Chair Jerome Powell steered clear of commenting on the monetary policy outlook, with focus turning to an upcoming inflation reading scheduled for later this week. FEDWATCH Markets have been hoping that the Fed could soon signal an end to its rate hiking cycle following recent signs of a slowdown in the U.S. economy, even as policymakers reiterate the central bank's priority to bring inflation under control.
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Broadcom Inc AVGO.O fell 3.4% on a report that Apple Inc AAPL.O plans to replace a Broadcom chip from its devices with an in-house design in 2025. By Amruta Khandekar and Ankika Biswas Jan 10 (Reuters) - Wall Street's main indexes rose on Tuesday as Federal Reserve Chair Jerome Powell steered clear of commenting on the monetary policy outlook, with focus turning to an upcoming inflation reading scheduled for later this week. Traders held on to bets of a 25-basis point rate hike at the U.S. central bank's upcoming policy meeting in February, with the terminal rate seen slightly below 5% by June.
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17657.0
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2023-01-10 00:00:00 UTC
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Apple To Begin Making In-House Screens In 2024 : Report
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AAPL
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https://www.nasdaq.com/articles/apple-to-begin-making-in-house-screens-in-2024-%3A-report
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) plans to start using its own custom displays in its mobile devices as early as 2024, an effort to reduce its reliance on third-party suppliers and partners, and bring more components in-house, Bloomberg reported citing people familiar with the matter.
According to the report, Apple aims to begin by swapping out the display in the highest-end Apple Watches by the end of next year. The screens upgrade the current OLED or organic light-emitting diode standard to a technology called microLED.
Apple reportedly plans to eventually bring the displays to other devices, including the iPhone.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) plans to start using its own custom displays in its mobile devices as early as 2024, an effort to reduce its reliance on third-party suppliers and partners, and bring more components in-house, Bloomberg reported citing people familiar with the matter. The screens upgrade the current OLED or organic light-emitting diode standard to a technology called microLED. Apple reportedly plans to eventually bring the displays to other devices, including the iPhone.
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(RTTNews) - Apple Inc. (AAPL) plans to start using its own custom displays in its mobile devices as early as 2024, an effort to reduce its reliance on third-party suppliers and partners, and bring more components in-house, Bloomberg reported citing people familiar with the matter. According to the report, Apple aims to begin by swapping out the display in the highest-end Apple Watches by the end of next year. Apple reportedly plans to eventually bring the displays to other devices, including the iPhone.
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(RTTNews) - Apple Inc. (AAPL) plans to start using its own custom displays in its mobile devices as early as 2024, an effort to reduce its reliance on third-party suppliers and partners, and bring more components in-house, Bloomberg reported citing people familiar with the matter. The screens upgrade the current OLED or organic light-emitting diode standard to a technology called microLED. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) plans to start using its own custom displays in its mobile devices as early as 2024, an effort to reduce its reliance on third-party suppliers and partners, and bring more components in-house, Bloomberg reported citing people familiar with the matter. According to the report, Apple aims to begin by swapping out the display in the highest-end Apple Watches by the end of next year. The screens upgrade the current OLED or organic light-emitting diode standard to a technology called microLED.
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17658.0
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2023-01-10 00:00:00 UTC
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Apple (AAPL) Gains But Lags Market: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-but-lags-market%3A-what-you-should-know-4
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $130.73, marking a +0.45% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 9.92% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.93 per share, which would represent a year-over-year decline of 8.1%. Meanwhile, our latest consensus estimate is calling for revenue of $120.48 billion, down 2.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.19 per share and revenue of $404.08 billion. These totals would mark changes of +1.31% and +2.47%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Apple currently has a Forward P/E ratio of 21.02. For comparison, its industry has an average Forward P/E of 8.56, which means Apple is trading at a premium to the group.
We can also see that AAPL currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $130.73, marking a +0.45% move from the previous day. We can also see that AAPL currently has a PEG ratio of 1.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $130.73, marking a +0.45% move from the previous day. We can also see that AAPL currently has a PEG ratio of 1.68.
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In the latest trading session, Apple (AAPL) closed at $130.73, marking a +0.45% move from the previous day. We can also see that AAPL currently has a PEG ratio of 1.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $130.73, marking a +0.45% move from the previous day. We can also see that AAPL currently has a PEG ratio of 1.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17659.0
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2023-01-10 00:00:00 UTC
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Wall St rises as Powell gives no clear comment on monetary policy outlook
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AAPL
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https://www.nasdaq.com/articles/wall-st-rises-as-powell-gives-no-clear-comment-on-monetary-policy-outlook
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook.
Microsoft Corp MSFT.O rose 1.2% after a report stated the software company was in talks to invest $10 bln in ChatGPT creator OpenAI.
The gains pushed up the S&P 500 information technology sector .SPLRCT 0.3%, while a 1.6% rise in Amazon boosted the consumer discretionary sector .SPLRCD.
Boeing Co BA.N dipped 1.3%, pressuring the Dow Jones .DJI, on a report that Morgan Stanley downgraded the U.S. planemaker's rating to "equal weight" from "overweight".
The U.S. central bank's independence from political influence is central to its ability to battle inflation, Powell said on Tuesday.
Powell's remarks failed to assuage investors rattled by remarks from two other Federal Reserve policymakers on Monday.
The comments had dampened hopes that inflation in the United States had peaked and the Fed may soon signal an end to its rate hiking cycle, bolstered by data last week that showed a moderation in wage increases.
"He (Powell) hasn't disrupted the market in any way and the fact that he stresses the need for political independence while tackling inflation, that's a definite positive for the markets," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York.
"But he has not touched upon or given hints about what the Fed is going do in the future on rates."
Money market bets of a 25-bps hike to in the Fed's upcoming policy meeting were unchanged at 75%, with the terminal rate seen slightly below 5% by June. FEDWATCH
Investors are now keenly awaiting the U.S. Labor Department's consumer prices report on Thursday. It is expected to show some moderation in year-on-year consumer prices in December.
The Fed's aggressive monetary policy tightening to curb decades-high inflation hammered U.S. equities in 2022, with the three main indexes logging their steepest annual declines since 2008.
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI was up 111.74 points, or 0.33%, at 33,629.39, the S&P 500 .SPX was up 16.52 points, or 0.42%, at 3,908.61, and the Nasdaq Composite .IXIC was up 74.50 points, or 0.70%, at 10,710.15.
Broadcom Inc AVGO.O fell 3.3% on a report that Apple Inc AAPL.Oplans to replace the former's chip from its devices with an in-house design in 2025.
Advancing issues outnumbered decliners by a 1.32-to-1 ratio on the NYSE and by a 1.75-to-1 ratio on the Nasdaq.
The S&P index recorded 1 new 52-week high and no new lows, while the Nasdaq recorded 27 new highs and 14 new lows.
(Reporting by Ankika Biswas and Amruta Khandekar ; Editing by Shinjini Ganguli)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom Inc AVGO.O fell 3.3% on a report that Apple Inc AAPL.Oplans to replace the former's chip from its devices with an in-house design in 2025. By Ankika Biswas and Amruta Khandekar Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook. The comments had dampened hopes that inflation in the United States had peaked and the Fed may soon signal an end to its rate hiking cycle, bolstered by data last week that showed a moderation in wage increases.
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Broadcom Inc AVGO.O fell 3.3% on a report that Apple Inc AAPL.Oplans to replace the former's chip from its devices with an in-house design in 2025. By Ankika Biswas and Amruta Khandekar Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook. The S&P index recorded 1 new 52-week high and no new lows, while the Nasdaq recorded 27 new highs and 14 new lows.
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Broadcom Inc AVGO.O fell 3.3% on a report that Apple Inc AAPL.Oplans to replace the former's chip from its devices with an in-house design in 2025. By Ankika Biswas and Amruta Khandekar Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook. The comments had dampened hopes that inflation in the United States had peaked and the Fed may soon signal an end to its rate hiking cycle, bolstered by data last week that showed a moderation in wage increases.
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Broadcom Inc AVGO.O fell 3.3% on a report that Apple Inc AAPL.Oplans to replace the former's chip from its devices with an in-house design in 2025. By Ankika Biswas and Amruta Khandekar Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook. Money market bets of a 25-bps hike to in the Fed's upcoming policy meeting were unchanged at 75%, with the terminal rate seen slightly below 5% by June.
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17660.0
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2023-01-10 00:00:00 UTC
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Zacks Industry Outlook Highlights Apple and Lenovo
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AAPL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-apple-and-lenovo
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nan
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nan
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For Immediate Release
Chicago, IL – January 10, 2023 – Today, Zacks Equity Research discusses Apple AAPL and Lenovo Group LNVGY.
Industry: Mini-Computers
Link: https://www.zacks.com/commentary/2036855/2-stocks-to-watch-from-the-challenging-computer-industry
The Zacks Computer – Mini Computers industry is suffering from massive supply-chain and logistical issues, along with several pandemic-related and geopolitical challenges, including the ongoing Russia-Ukraine war. The declining demand for PCs has become a concern for industry participants. Nevertheless, strong demand for high-end laptops is benefiting Apple and Lenovo Group.
Improving the availability of 5G-enabled smartphones has been a key catalyst for industry participants. The growing adoption of tablets among enterprises bodes well for companies like Apple and Lenovo.
The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems.
The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors.
Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow. BYOD has proved more productive as it lowers training time. Moreover, the coronavirus-induced remote-working and online-learning models bode well for industry participants as demand is expected to increase for desktops and laptops.
Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm (Snapdragon-branded), NVIDIA (Tegra X1), Apple (A16 Bionic) and Samsung (Exynos 9609). Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers.
Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #227, which places it in the bottom 9% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since Mar 31, 2022, the Zacks Consensus Estimate for this industry’s 2022 earnings has moved down 2.9%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector, Lags S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector but lagged the S&P 500 index over the past year.
The industry has dropped 27.1% over this period compared with the S&P 500’s decline of 19.8% and the broader sector’s fall of 34%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 19.35X compared with the S&P 500’s 16.92X and the sector’s 19.49X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 20.94X.
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s near-term prospects are driven by the launch of the latest iPhone models, with iPhone 14 Pro witnessing strong demand. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment.
Apple currently has more than 900 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2023 earnings has declined 0.6% to $6.19 per share over the past 30 days. The stock has lost 27.1% in the past year.
Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitization efforts by enterprises worldwide and faster adoption of the hybrid work model.
Lenovo’s healthy cash balance is also helping it increase investments in research & development.
The Zacks Consensus Estimate for fiscal 2023 earnings has been unchanged at $3 per share over the past 30 days. Shares of LNVGY have declined 27.7% in the past year.
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Zacks Investment Research
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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 >>
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
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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For Immediate Release Chicago, IL – January 10, 2023 – Today, Zacks Equity Research discusses Apple AAPL and Lenovo Group LNVGY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – January 10, 2023 – Today, Zacks Equity Research discusses Apple AAPL and Lenovo Group LNVGY. Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets.
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For Immediate Release Chicago, IL – January 10, 2023 – Today, Zacks Equity Research discusses Apple AAPL and Lenovo Group LNVGY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – January 10, 2023 – Today, Zacks Equity Research discusses Apple AAPL and Lenovo Group LNVGY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Outperforms Sector, Lags S&P 500 The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector but lagged the S&P 500 index over the past year.
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17661.0
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2023-01-10 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-3
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nan
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nan
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Since Warren Buffett purchased a controlling stake in Berkshire Hathaway in 1965 and made it the foundation for his investing empire, the stock has seen staggering gains of more than 2,677,400%. That means that you'd now be sitting on a position valued above $26.7 million if you were fortunate enough to own a $1,000 position stake in the company all those years ago and held on to it through the decades.
While Berkshire's market capitalization of roughly $703 billion and status as the world's sixth largest publicly traded company means that its most explosive growth is almost surely in the past, the Oracle of Omaha's company remains one of the best-run investment conglomerates on the planet, and it's absolutely trounced the S&P 500 index across the past year of trading. With that in mind, read on for a look at five Buffett-backed stocks that have what it takes to deliver long-term wins for your portfolio.
Image source: The Motley Fool.
1. Snowflake
Snowflake (NYSE: SNOW) might not be a great fit for every investor. In fact, if you just looked at the company's valuation profile, you might be surprised to see that the data-services specialist has a place in Berkshire's stock holdings.
SNOW PS Ratio (Forward) data by YCharts
With a market cap of roughly $40 billion and the company valued at roughly 19.5 times expected forward sales, Snowflake has a high forward-looking valuation even after a big pullback for its share price over the past year.
Why has Berkshire initiated and maintained a position in a company with a valuation profile that looks so unusual compared to the rest of its holdings? It's probably because Snowflake is solving a crucial problem in today's increasingly data-driven world, and it has a tantalizing long-term growth outlook.
Cloud infrastructure providers including Amazon (NASDAQ: AMZN), Microsoft, and Alphabet don't make it easy for businesses and institutions to combine and analyze data generated from their respective services. Snowflake's data-warehousing platform remedies this issue and allows users to proceed with the full picture, whether for organizational planning and operations or running applications in real time. Because of these advantages, some customers are starting to build apps natively on Snowflake's platform, and the company has a tremendous growth opportunity ahead as demand for its core data-warehousing service increases and more applications are built and scaled on top of its tech.
2. Amazon
After Berkshire Hathaway finally initiated a position in Amazon in 2019, Buffett publicly lamented not buying the e-commerce and cloud-computing leader's stock earlier. But even today, Amazon accounts for just 0.4% of Berkshire's total stock holdings.
With Amazon's share price now down roughly 49% over the last year and 54% from its high, it wouldn't be shocking to see the investment conglomerate increase its holdings in the tech company's stock.
AMZN PS Ratio (Forward) data by YCharts
Facing macroeconomic pressures that have depressed valuations for growth stocks at large and created headwinds for its core online-retail and cloud businesses, Amazon's forward price-to-sales multiple has been pushed below 1.6 -- a level that sees the historically growth-oriented stock trading in value territory.
While economic headwinds and consumer shifts amid the decline of pandemic-related demand are hurting Amazon's sales growth and profitability, the company still looks primed for long-term success. Warehouse and delivery automation offer paths to improved margins in e-commerce, and Amazon Web Services will likely retain a leadership position in the highly important and influential cloud-infrastructure-services market.
Amid the pullback for the broader market, Amazon is one beaten-down stock investors should pounce on.
3. Apple
Mobile computing has completely changed the way that the world communicates and does business. While it wasn't the first company to introduce a smartphone, Apple's (NASDAQ: AAPL) completely changed the game.
But while commodification tends to elevate competition and eat into sales and profit potential, Apple has remained absolutely dominant in the mobile space. The tech giant generates roughly 80% of profits made on smartphone sales worldwide, and it's scored laudable wins in other categories as well.
As with mobile hardware, Apple leads the pack when it comes to profitability and market share in the wearable-technologies category. The company stands as the clear leader in smartwatches, and its Air Pods have also proven to be massive hits.
Apple isn't always the first to the market in consumer product categories, but it doesn't need to be. The company's design expertise and massive brand appeal mean that it often winds up defining entire product categories, and it's been enormously successful in building a software-and-services component that ties its ecosystem together.
4. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM), also know as TSMC, is one of the newest additions to the Berkshire Hathaway stock portfolio. Buffett's company invested in the leading chip fabricator in the third quarter, and it has the distinction of being the only pure-play semiconductor company among Berkshire's holdings.
TSMC stock is a bet on the long-term growth of the semiconductor space, and rising demand for chips looks to be a very safe bet. Rather than competing with other chip players to design the best chips for a given function, TSMC commands a dominant position in semiconductor fabrication. Nearly all of the world's top semiconductor-design companies rely on its manufacturing capabilities.
TSMC controls roughly 55% of the global chip fabrication market. Even more impressive, it manufactures more than 90% of the world's high-performance chips.
With the stock trading at roughly 13.5 times expected earnings and paying a dividend yielding 2.3%, this dominant industry leader offers an attractive risk-reward profile for long-term investors.
5. American Express
American Express (NYSE: AXP) stands as Berkshire's fifth-largest overall stock holding and accounts for approximately 6.9% of its total equity portfolio. Berkshire also owns roughly 20% of AmEx's total outstanding shares, signifying an impressive vote of confidence from the Oracle of Omaha, Co-Chairman Charlie Munger, and their team of analysts.
AXP PE Ratio (Forward) data by YCharts
American Express has built a powerful brand, using membership perks and rewards programs to build customer loyalty. The company also scored wins by focusing on a premium-oriented segment of the credit card and financial-services industry, and its brand cachet is translating to impressive performance among millennial and Generation Z age demographics that bodes well for the future.
With the stock trading at roughly 7 times free cash flow and 14 times expected forward earnings, AmEx is valued at multiples that leave room for long-term capital appreciation. The company also pays a dividend yielding roughly 1.4%, and it's maintained a payout for 33 years straight without implementing a payout cut.
10 stocks we like better than Snowflake
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American Express is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Snowflake, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While it wasn't the first company to introduce a smartphone, Apple's (NASDAQ: AAPL) completely changed the game. Cloud infrastructure providers including Amazon (NASDAQ: AMZN), Microsoft, and Alphabet don't make it easy for businesses and institutions to combine and analyze data generated from their respective services. Because of these advantages, some customers are starting to build apps natively on Snowflake's platform, and the company has a tremendous growth opportunity ahead as demand for its core data-warehousing service increases and more applications are built and scaled on top of its tech.
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While it wasn't the first company to introduce a smartphone, Apple's (NASDAQ: AAPL) completely changed the game. SNOW PS Ratio (Forward) data by YCharts With a market cap of roughly $40 billion and the company valued at roughly 19.5 times expected forward sales, Snowflake has a high forward-looking valuation even after a big pullback for its share price over the past year. With the stock trading at roughly 13.5 times expected earnings and paying a dividend yielding 2.3%, this dominant industry leader offers an attractive risk-reward profile for long-term investors.
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While it wasn't the first company to introduce a smartphone, Apple's (NASDAQ: AAPL) completely changed the game. While Berkshire's market capitalization of roughly $703 billion and status as the world's sixth largest publicly traded company means that its most explosive growth is almost surely in the past, the Oracle of Omaha's company remains one of the best-run investment conglomerates on the planet, and it's absolutely trounced the S&P 500 index across the past year of trading. SNOW PS Ratio (Forward) data by YCharts With a market cap of roughly $40 billion and the company valued at roughly 19.5 times expected forward sales, Snowflake has a high forward-looking valuation even after a big pullback for its share price over the past year.
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While it wasn't the first company to introduce a smartphone, Apple's (NASDAQ: AAPL) completely changed the game. Apple isn't always the first to the market in consumer product categories, but it doesn't need to be. Buffett's company invested in the leading chip fabricator in the third quarter, and it has the distinction of being the only pure-play semiconductor company among Berkshire's holdings.
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17662.0
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2023-01-10 00:00:00 UTC
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2 Growth Stocks Down Over 25% to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/2-growth-stocks-down-over-25-to-buy-in-2023
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nan
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nan
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After a stock market sell-off in 2022, the start of this new year is an excellent time to boost your portfolio by picking up some growth stocks for a bargain. Macroeconomic headwinds over the last 12 months brought steep declines in the tech industry, which also happens to be a market known for its wealth of growth stocks.
As a result, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares are down over 25% year over year. Nevertheless, these companies are home to some of the world's most potent brands, likely to continue dominating for the long term.
With that said, here's why Apple and Alphabet are two growth stocks to buy without hesitation in 2023.
1. Apple
As the company that gave the world the iPhone, popularized tablets, and boosted Bluetooth headphones into mainstream use, Apple's stock is easy to recommend. The company is a formidable presence in any market it enters, garnering attention from investors like Warren Buffett, whose holdings company Berkshire Hathaway has given Apple 36.9% of its portfolio.
Apple's stock tumbled 25% year over year, with December being a particularly ugly month as its shares fell 12.4% in the 30 days leading up to the new year. Investors dragged Apple shares down after news broke that a Chinese factory that manufactures roughly 70% of all iPhones was suffering production issues related to COVID-19 restrictions. Apple's stock has begun to recover since production returned to 90% capacity, and the company has made plans to leave China entirely in the coming years.
Regardless, there's plenty to rally over in terms of the company's future. Countless reports have revealed Apple will likely enter the virtual/augmented reality (VR/AR) markets later this year with a custom-designed headset. The company will join an industry currently dominated by Meta and Sony with their respective VR headsets on the market. However, Apple's headset is expected to be unique with added AR features. Along with its nearly unparalleled brand loyalty and user-friendly connectivity between its products, Apple has excellent tools to counter the competition.
Moreover, according to Grand View Research, the AR market was worth $25.33 billion in 2021 and will see a compound annual growth rate of 40.9% until 2030. Apple's history of successfully entering new markets and quickly rising to dominance could make a step into AR and VR incredibly lucrative for its future.
Despite a sell-off, Apple shares have risen 196% in the last five years, while revenue has increased 48% from $265.60 billion in 2018 to $394.33 in 2022. By almost any metric, it doesn't get much better than this growth stock, making it a must-buy in 2023.
2. Alphabet
Advertising spending began declining in June 2022 as rises in inflation and interest rates led businesses to slash budgets. The steepest decline during the year occurred in July, when ad spending fell 12.7% year over year. However, that figure had improved to a 3.2% decline by October. With nearly 80% of its revenue coming from ads through platforms such as Google, YouTube, and Android, Alphabet shares have fallen 36% since last January alongside market declines.
Despite a challenging year, Alphabet's stock has retained 60% growth since 2018, with revenue rising 88% from $136.82 billion in 2018 and $257.64 billion in 2021. Meanwhile, operating income rose 186% in the same period, from $27.52 billion to $78.71 billion. The Google company has experienced immense growth over the long term, which is promising for its future.
Recent economic headwinds are temporary, with the digital advertising market still having plenty of room to grow in the coming years once they subside. According to research from Omdia, the digital ad market was worth $190 billion in 2022 and will almost double to $362 billion by 2027.
Alphabet has held a leading market share in the industry since at least 2016, even with rising competition from Meta and Amazon. As of 2022, its share came to 28%, positioning the company to profit from the market's growth.
Moreover, in Alphabet's latest quarter, its Google Cloud segment reported a 37.6% increase in revenue of $6.8 billion, growing more than any other cloud computing service in the quarter. The company's participation in the booming industry diversifies its revenue and will likely provide significant gains for the long haul as the market continues to expand.
Despite a difficult year, Alphabet reported $62.5 billion in free cash flow as of Sept. 30. The company's stellar growth since 2018 and ability to overcome last year's hardships suggest it has a promising future, making it a must-buy growth stock in 2023.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Meta Platforms. 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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As a result, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares are down over 25% year over year. Investors dragged Apple shares down after news broke that a Chinese factory that manufactures roughly 70% of all iPhones was suffering production issues related to COVID-19 restrictions. Apple's stock has begun to recover since production returned to 90% capacity, and the company has made plans to leave China entirely in the coming years.
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As a result, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares are down over 25% year over year. Moreover, in Alphabet's latest quarter, its Google Cloud segment reported a 37.6% increase in revenue of $6.8 billion, growing more than any other cloud computing service in the quarter. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Meta Platforms.
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As a result, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares are down over 25% year over year. Apple's stock tumbled 25% year over year, with December being a particularly ugly month as its shares fell 12.4% in the 30 days leading up to the new year. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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As a result, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares are down over 25% year over year. Despite a sell-off, Apple shares have risen 196% in the last five years, while revenue has increased 48% from $265.60 billion in 2018 to $394.33 in 2022. Despite a challenging year, Alphabet's stock has retained 60% growth since 2018, with revenue rising 88% from $136.82 billion in 2018 and $257.64 billion in 2021.
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17663.0
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2023-01-10 00:00:00 UTC
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This Top Chip Stock Is Expanding Into EVs -- Is It a Buy for 2023?
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AAPL
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https://www.nasdaq.com/articles/this-top-chip-stock-is-expanding-into-evs-is-it-a-buy-for-2023
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For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. As an integrated designer and manufacturer of connectivity chips, Skyworks helped power mobile network capabilities for the iPhone, iPad, Apple Watch, and more. Despite years of work to diversify, though, Apple still accounted for a whopping 58% of Skyworks' total revenue in the recently concluded 2022 fiscal year.
Skyworks recently revealed that one of its newer markets is electric vehicles (EVs) and other connected cars. The company expects solid growth from this segment in the coming years, though a recession risk looms large in 2023. Is Skyworks stock a buy for the new year?
From small beginnings, a new segment is born
There are a number of reasons Skyworks Solutions should be interested in diversifying away from Apple. Though a supplier contract is incredibly lucrative, Apple already designs some of the most critical chips in its products, like the M-series processors for the MacBooks. Apple has also been working on its own 5G modem chips for use in the iPhone as it tries to cut ties with Qualcomm.
This isn't to say Apple is at all interested in parting ways with Skyworks, but it's a risk worth bearing in mind given that so much of Skyworks' revenue comes from iOS devices. Plus, while Apple has been a fantastic partner for Skyworks shareholders, it isn't exactly a high-growth market like it was in the previous decade. After a huge initial 5G network upgrade cycle over the last couple of years, Apple device sales are overall likely a single-digit-percentage growth outlet for Skyworks going forward.
Data by YCharts.
That's where the company's "broad markets" segment, which accounts for all chips outside of smartphones, comes in. During the fourth-quarter fiscal 2022 earnings update (for the three months ended September 2022), Skyworks said broad markets were about 36% of total revenue. At a recent tech conference, SVP of Sales and Marketing Carlos Bori said this was about a $2 billion-a-year outlet. Of that $2 billion, automotive chip sales were at an annualized $200 million run rate (or less than 4% of total revenue).
It's a small segment for Skyworks to be sure, but with the EV market gobbling up share of the massive legacy internal combustion engine vehicle market, Bori alluded to this EV and other auto tech segment being about a 30%-a-year growth outlet in the next few years as EVs overtake petrol engines.
Customers include none other than Tesla and China's top EV maker BYD, as well as legacy automakers like Volkswagen and Toyota, to name a few.
Unexplored roads lie ahead for this chipmaker
What exactly do these new EV chips do? Rewind back to 2021, when Skyworks made a transformational bet when it purchased the infrastructure and automotive segment from Silicon Labs. Included in that purchase were traction converters (which make high-voltage battery power usable by an EV motor), battery management and charging system chips, and timing chips used in advanced driver assist systems (ADAS).
These non-wireless connectivity chip designs bring Skyworks into competition with other top automotive chipmakers like Texas Instruments, NXP Semiconductor, and Analog Devices. But Bori said Skyworks' portfolio of products is differentiated, owing to its history as a connectivity chip specialist, including for automakers. Many semiconductor companies have been trying to expand their lineup of designs in recent years, giving their customers the opportunity to order hardware in larger bulk and save money. Perhaps Skyworks will find success in a similar strategy.
At any rate, Skyworks thinks its broad markets portfolio (helped in large part by automotive) will grow at a much faster rate than its large smartphone segment, helping the company overall achieve low-teens-percentage average annual growth in the coming years. Skyworks uses its free cash flow to repurchase lots of stock on top of the dividend it already doles out to shareholders, so earnings per share should grow even faster than that.
With the smartphone market -- especially Android phones -- down in the dumps right now, Skyworks Solutions stock got punished. Shares trade for a measly 12 times trailing 12-month earnings per share, and 17 times trailing 12-month free cash flow. If you believe the company can grow its profitability by a low- to mid-teens percentage over the next three to five years, this stock looks like a wonderful value at the start of 2023.
10 stocks we like better than Skyworks Solutions
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 Skyworks Solutions 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 December 1, 2022
Nicholas Rossolillo and his clients have positions in Apple, Qualcomm, Skyworks Solutions, and Tesla. The Motley Fool has positions in and recommends Apple, BYD, Qualcomm, Tesla, Texas Instruments, and Volkswagen Ag. The Motley Fool recommends NXP Semiconductors, Silicon Laboratories, and Skyworks Solutions 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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For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. After a huge initial 5G network upgrade cycle over the last couple of years, Apple device sales are overall likely a single-digit-percentage growth outlet for Skyworks going forward. These non-wireless connectivity chip designs bring Skyworks into competition with other top automotive chipmakers like Texas Instruments, NXP Semiconductor, and Analog Devices.
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For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. At any rate, Skyworks thinks its broad markets portfolio (helped in large part by automotive) will grow at a much faster rate than its large smartphone segment, helping the company overall achieve low-teens-percentage average annual growth in the coming years. The Motley Fool has positions in and recommends Apple, BYD, Qualcomm, Tesla, Texas Instruments, and Volkswagen Ag.
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For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. It's a small segment for Skyworks to be sure, but with the EV market gobbling up share of the massive legacy internal combustion engine vehicle market, Bori alluded to this EV and other auto tech segment being about a 30%-a-year growth outlet in the next few years as EVs overtake petrol engines. At any rate, Skyworks thinks its broad markets portfolio (helped in large part by automotive) will grow at a much faster rate than its large smartphone segment, helping the company overall achieve low-teens-percentage average annual growth in the coming years.
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For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. It's a small segment for Skyworks to be sure, but with the EV market gobbling up share of the massive legacy internal combustion engine vehicle market, Bori alluded to this EV and other auto tech segment being about a 30%-a-year growth outlet in the next few years as EVs overtake petrol engines. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Skyworks Solutions wasn't one of them!
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17664.0
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2023-01-10 00:00:00 UTC
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Should You Invest in the Vanguard Information Technology ETF (VGT)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-4
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $39.99 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 99.80% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 61.07% of total assets under management.
Performance and Risk
So far this year, VGT has added roughly 1.45%, and is down about -24.81% in the last one year (as of 01/10/2023). During this past 52-week period, the fund has traded between $300.84 and $442.51.
The ETF has a beta of 1.15 and standard deviation of 32.16% for the trailing three-year period, making it a medium risk choice in the space. With about 377 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology 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, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $7.92 billion in assets, Technology Select Sector SPDR ETF has $38.75 billion. IYW has an expense ratio of 0.39% and XLK charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Information Technology ETF (VGT): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): 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 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $39.99 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
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17665.0
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2023-01-10 00:00:00 UTC
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Stock Market News for Jan 10, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-jan-10-2023
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nan
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Wall Street closed mixed on Monday after a choppy session. Market participants were considering a soft landing of the U.S, economy by the Fed. However, some Fed officials comments have dented investors sentiment. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) dropped 0.3% or 112.96 points to close at 33,517.65. Notably, 15 components of the 30-stock index ended in positive territory while the remaining 15 in red. At its session high, the blue-chip index was up more than 305 points.
The tech-heavy Nasdaq Composite finished at 10,635.64, gaining 0.6% due to strong performance of large-cap technology stocks, especially the semiconductor stocks.
The S&P 500 fell 0.1% to end at 3,892.09. Six out of11 broad sectors of the benchmark index closed in negative territory while five ended in positive zone. The Consumer Staples Select Sector SPDR (XLP), the Health Care Select Sector SPDR (XLV) dropped 1% and 1.7%, respectively. On the other hand, the Technology Select Sector SPDR (XLK) rose 1.2%.
The fear-gauge CBOE Volatility Index (VIX) was up 4% to 21.97. A total of 11.35 billion shares were traded on Monday, higher than the last 20-session average of 10.90 billion. Advancers outnumbered decliners on the NYSE by a 1.85-to-1 ratio. On Nasdaq, a 1.48-to-1 ratio favored advancing issues.
Recent Positives
The Department of Labor reported that the nonfarm payroll increased 223,000 in December beating the consensus estimate of 208,000. However, December’s job additions fell below November’s data that were revised downward to 256,000 from 263,000 reported earlier.
Hourly wage rate increased 0.3% in December below the consensus estimate of 0.4%. November’s data was revised downward to 0.4% from 0.6% reported earlier. Year over year, the hourly wage rate increased 4.6% in December compared with the consensus estimate of 5%. The wage rate increased 4.8% year over year in November.
A large section of market participants believe that peak inflation has already achieved. Less-than-expected inflation rates in October and November with respect to several measures have clearly indicated this.
The Institute of Supply Management reported that the services sector index for December plummeted to 49.6% in December from 56.5% in November. The consensus estimate was 55.1%. Any reading below 50% indicates a contraction in services activities. The index contracted for the first time since May 2020, at the onset of the coronavirus pandemic.
A devastated housing market owing to the high mortgage rate, disappointing retail sales in December, the peak festive season, huge inventory accumulation by several retailers, a stiff fall in U.S. manufacturing activities, disappointing sales in December of electric vehicle giant Tesla Inc. TSLA and a likely production cut by the global tech behemoth Apple Inc. AAPL indicated that the U.S. economy is cooling in the desired direction of the Fed. Several U.S. corporate giants have started retrenching manpower significantly at higher level.
Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hawkish Comments From Fed Officials
On Jan 9, in an interview with The Wall Street Journal, San Francisco Fed President Mary Daly said she expects the central bank to boost interest rates above 5% to get inflation down. Daly said “I think something above 5 is absolutely, in my judgment, going to be likely.” Moreover, Atlanta Fed President Raphael Bostic said he expects the benchmark lending rate to rise above 5% in order to combat a sticky inflation.
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
Tesla, Inc. (TSLA) : 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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A devastated housing market owing to the high mortgage rate, disappointing retail sales in December, the peak festive season, huge inventory accumulation by several retailers, a stiff fall in U.S. manufacturing activities, disappointing sales in December of electric vehicle giant Tesla Inc. TSLA and a likely production cut by the global tech behemoth Apple Inc. AAPL indicated that the U.S. economy is cooling in the desired direction of the Fed. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Daly said “I think something above 5 is absolutely, in my judgment, going to be likely.” Moreover, Atlanta Fed President Raphael Bostic said he expects the benchmark lending rate to rise above 5% in order to combat a sticky inflation.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. A devastated housing market owing to the high mortgage rate, disappointing retail sales in December, the peak festive season, huge inventory accumulation by several retailers, a stiff fall in U.S. manufacturing activities, disappointing sales in December of electric vehicle giant Tesla Inc. TSLA and a likely production cut by the global tech behemoth Apple Inc. AAPL indicated that the U.S. economy is cooling in the desired direction of the Fed. Hourly wage rate increased 0.3% in December below the consensus estimate of 0.4%.
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A devastated housing market owing to the high mortgage rate, disappointing retail sales in December, the peak festive season, huge inventory accumulation by several retailers, a stiff fall in U.S. manufacturing activities, disappointing sales in December of electric vehicle giant Tesla Inc. TSLA and a likely production cut by the global tech behemoth Apple Inc. AAPL indicated that the U.S. economy is cooling in the desired direction of the Fed. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Year over year, the hourly wage rate increased 4.6% in December compared with the consensus estimate of 5%.
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A devastated housing market owing to the high mortgage rate, disappointing retail sales in December, the peak festive season, huge inventory accumulation by several retailers, a stiff fall in U.S. manufacturing activities, disappointing sales in December of electric vehicle giant Tesla Inc. TSLA and a likely production cut by the global tech behemoth Apple Inc. AAPL indicated that the U.S. economy is cooling in the desired direction of the Fed. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in green.
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17666.0
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2023-01-10 00:00:00 UTC
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Better Semiconductor Stock: ASML vs. Qualcomm
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AAPL
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https://www.nasdaq.com/articles/better-semiconductor-stock%3A-asml-vs.-qualcomm
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nan
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nan
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ASML (NASDAQ: ASML) and Qualcomm (NASDAQ: QCOM) are both linchpins of the semiconductor sector. ASML's lithography machines, which etch circuit patterns onto silicon wafers, enable chipmakers to manufacture the world's most advanced semiconductors. Qualcomm produces mobile system on chips (SoCs) -- which bundle together CPUs, GPUs, and baseband modems -- for smartphones, cars, and other connected devices.
Both stocks hit their all-time highs in 2021 as the market's ravenous appetite for new chips drove a stampede of bulls into the semiconductor sector. But in 2022, ASML's stock declined 31% as Qualcomm's stock sank 40%.
Image source: Getty Images.
Both companies lost their luster as they grappled with the post-pandemic slowdown in personal computer sales, sluggish demand for new smartphones, and macro headwinds for the enterprise sector. All that pressure indicated a new cyclical downturn in chip sales was starting, while rising interest rates exacerbated that pain by driving investors further away from growth stocks.
But should long-term investors take a contrarian view and buy either of these out-of-favor semiconductor stocks today?
ASML monopolizes a crucial chipmaking technology
ASML is the world's largest producer of lithography systems. It's also the only supplier of extreme ultraviolet (EUV) systems, which are currently used by TSMC, Samsung, and Intel to manufacture the world's smallest and densest chips.
ASML doesn't face any competitors in the EUV space because it took more than two decades to perfect its current systems, which cost about $200 million each and require multiple planes to ship. Its monopolization of that crucial technology gives it unmatched pricing power and the ability to continuously expand its gross margins.
ASML's technology is considered so crucial to semiconductors that the Dutch government, under pressure from the Trump Administration, banned the company from shipping its EUV systems to China in 2019. However, ASML continues to sell its lower-end deep ultraviolet (DUV) systems -- which are used to create older and larger chips -- to Chinese chipmakers.
ASML's annual revenue rose at a compound annual growth rate (CAGR) of 22% between 2016 and 2021, even after it withstood the chip glut in 2019 and the pandemic in 2020, as its gross margin expanded from 44.8% to 52.7%.
Analysts expect ASML's revenue to rise 14% in 2022 and grow 19% in 2023. During its latest investor day last November, the company predicted it could generate 44 billion to 60 billion euros ($64 billion) in revenue in 2030 -- which implies its revenue will grow at a CAGR of 10% to 14% from 2022 to 2030 -- as its gross margin reaches 56% to 60% by the final year.
Qualcomm is trying to expand beyond smartphones
Qualcomm was once the largest maker of mobile SoCs in the world, but it lost its crown to the Taiwanese chipmaker MediaTek in 2020. Qualcomm remains firmly in control of the premium handset market with top-tier customers like Samsung, but it's lost large chunks of the low- to mid-range markets to MediaTek.
Qualcomm also generated more than 10% of its revenue through sales of its baseband modems to Apple (NASDAQ: AAPL) in fiscal 2022 (which ended last September). That's worrisome, because Apple plans to completely replace Qualcomm's modems with its own chips by 2025.
Qualcomm has been diversifying its portfolio with more automotive and Internet of Things (IoT) chips to offset those headwinds, but it still generated two-thirds of its revenue from the smartphone market in fiscal 2022. Therefore, its near-term growth is still tightly tethered to the lengthening upgrade cycles for smartphones.
Between fiscal 2017 and fiscal 2022, Qualcomm's annual revenue rose at a CAGR of 15%, even as it endured the same macro disruptions as ASML. Qualcomm's adjusted pre-tax margins also expanded from 32% to 38% as the rising margins of its chipmaking business offset the shrinking margins of its licensing business. However, analysts expect Qualcomm's revenue to rise at an anemic CAGR of 1% from fiscal 2022 to fiscal 2025 as the smartphone industry deals with a grueling cyclical slowdown.
Looking ahead, Qualcomm's future market share losses to MediaTek (and other smaller mobile chipmakers) and its decoupling from Apple will generate additional headwinds for its core business. The company will continue to expand its auto and IoT businesses, but it will likely generate much slower growth than ASML for the foreseeable future.
The valuations and verdict
ASML trades at 27 times forward earnings and pays a forward dividend yield of 1.2%. Qualcomm trades at just 11 times forward earnings and pays a forward yield of 2.7%.
Qualcomm might initially seem cheaper than ASML, but it deserves to trade at that discount because its near-term prospects are dimmer. Qualcomm has more direct competitors than ASML, its core market faces a cyclical slowdown, and it will need to cope with its loss of Apple's orders. It will also need to ramp up its spending to expand into the auto and IoT markets.
ASML also faces some unpredictable headwinds, including Huawei's development of EUV systems for the Chinese market and more potential restrictions on its DUV sales to China. But ASML's monopolization of the EUV market makes it a crucial cog of the global semiconductor market and a more resilient long-term investment than Qualcomm.
10 stocks we like better than Qualcomm
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Leo Sun has positions in ASML, Apple, and Qualcomm. The Motley Fool has positions in and recommends ASML, Apple, Intel, Qualcomm, and Taiwan Semiconductor Manufacturing. 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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Qualcomm also generated more than 10% of its revenue through sales of its baseband modems to Apple (NASDAQ: AAPL) in fiscal 2022 (which ended last September). ASML doesn't face any competitors in the EUV space because it took more than two decades to perfect its current systems, which cost about $200 million each and require multiple planes to ship. ASML's technology is considered so crucial to semiconductors that the Dutch government, under pressure from the Trump Administration, banned the company from shipping its EUV systems to China in 2019.
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Qualcomm also generated more than 10% of its revenue through sales of its baseband modems to Apple (NASDAQ: AAPL) in fiscal 2022 (which ended last September). ASML monopolizes a crucial chipmaking technology ASML is the world's largest producer of lithography systems. The Motley Fool has positions in and recommends ASML, Apple, Intel, Qualcomm, and Taiwan Semiconductor Manufacturing.
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Qualcomm also generated more than 10% of its revenue through sales of its baseband modems to Apple (NASDAQ: AAPL) in fiscal 2022 (which ended last September). ASML (NASDAQ: ASML) and Qualcomm (NASDAQ: QCOM) are both linchpins of the semiconductor sector. But ASML's monopolization of the EUV market makes it a crucial cog of the global semiconductor market and a more resilient long-term investment than Qualcomm.
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Qualcomm also generated more than 10% of its revenue through sales of its baseband modems to Apple (NASDAQ: AAPL) in fiscal 2022 (which ended last September). ASML monopolizes a crucial chipmaking technology ASML is the world's largest producer of lithography systems. ASML's annual revenue rose at a compound annual growth rate (CAGR) of 22% between 2016 and 2021, even after it withstood the chip glut in 2019 and the pandemic in 2020, as its gross margin expanded from 44.8% to 52.7%.
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17667.0
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2023-01-10 00:00:00 UTC
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After A Rough 2022, What Does 2023 Hold For Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/after-a-rough-2022-what-does-2023-hold-for-apple-stock
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nan
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nan
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The shares of Apple (NASDAQ:AAPL) had a tough 2022, declining by 27% over the year, underperforming the S&P 500 which was down by about 20% over the same period. Although Apple has fared better than big tech peers such as Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Alphabet (NASDAQ:GOOG), it does face multiple headwinds. Firstly, there are concerns about demand for consumer electronics products, with the Covid-19 work-from-home tailwinds easing and the economic picture looking challenging, amid high inflation and rising rates. Apple has also been facing supply chain issues due to Covid-19-related issues in China. Protests at contract manufacturer Foxconn’s factory in Zhengzhou, which produces a vast majority of the popular iPhone 14 Pro and Pro Max devices, are also likely to have impacted Apple’s crucial holiday quarter sales. Apple’s services business is also slowing down. 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. Investors are concerned given that the division is very lucrative, with segment gross margins standing at over 70%, compared to Apple’s overall gross margin of about 43%.
So what’s the outlook like for Apple stock in the near term? While Apple’s revenue growth is likely to slow down in FY23, we believe the long-term picture for the stock remains intact. Apple’s financials have typically proved quite resilient even through economic downturns, given the company’s ecosystem lock-in, the high desirability of its products, and the ability to upsell to existing customers. Apple has also been continuing with its strategy of premiumization launching high-end versions of most of its products including the Apple Watch and AirPods which could help drive margins. We also think that Apple’s service business growth will rebound, as the economy and consumer spending improve and foreign exchange headwinds ease. At the current market price of $125 per share, Apple stock trades at just about 21x forward earnings, which we believe is reasonable given the company’s earnings growth prospects, and solid balance sheet. We continue to remain bullish on Apple stock, with a $166 price estimate which is about 30% 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 -4% -4% 332%
S&P 500 Return -1% -1% 70%
Trefis Multi-Strategy Portfolio 1% 1% 216%
[1] Month-to-date and year-to-date as of 1/6/2023
[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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The shares of Apple (NASDAQ:AAPL) had a tough 2022, declining by 27% over the year, underperforming the S&P 500 which was down by about 20% over the same period. Total [2] AAPL Return -4% -4% 332% S&P 500 Return -1% -1% 70% Trefis Multi-Strategy Portfolio 1% 1% 216% [1] Month-to-date and year-to-date as of 1/6/2023 [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. Firstly, there are concerns about demand for consumer electronics products, with the Covid-19 work-from-home tailwinds easing and the economic picture looking challenging, amid high inflation and rising rates.
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Total [2] AAPL Return -4% -4% 332% S&P 500 Return -1% -1% 70% Trefis Multi-Strategy Portfolio 1% 1% 216% [1] Month-to-date and year-to-date as of 1/6/2023 [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. The shares of Apple (NASDAQ:AAPL) had a tough 2022, declining by 27% over the year, underperforming the S&P 500 which was down by about 20% over the same period. Although Apple has fared better than big tech peers such as Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Alphabet (NASDAQ:GOOG), it does face multiple headwinds.
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Total [2] AAPL Return -4% -4% 332% S&P 500 Return -1% -1% 70% Trefis Multi-Strategy Portfolio 1% 1% 216% [1] Month-to-date and year-to-date as of 1/6/2023 [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. The shares of Apple (NASDAQ:AAPL) had a tough 2022, declining by 27% over the year, underperforming the S&P 500 which was down by about 20% over the same period. Apple has also been continuing with its strategy of premiumization launching high-end versions of most of its products including the Apple Watch and AirPods which could help drive margins.
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Total [2] AAPL Return -4% -4% 332% S&P 500 Return -1% -1% 70% Trefis Multi-Strategy Portfolio 1% 1% 216% [1] Month-to-date and year-to-date as of 1/6/2023 [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. The shares of Apple (NASDAQ:AAPL) had a tough 2022, declining by 27% over the year, underperforming the S&P 500 which was down by about 20% over the same period. While Apple’s revenue growth is likely to slow down in FY23, we believe the long-term picture for the stock remains intact.
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17668.0
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2023-01-10 00:00:00 UTC
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Should You Invest in the iShares U.S. Technology ETF (IYW)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-technology-etf-iyw-5
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nan
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nan
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The iShares U.S. Technology ETF (IYW) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $7.92 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.
The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.50%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 85% of the portfolio, followed by Telecom.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 18.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 62.67% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Technology ETF has gained about 1.33% so far, and is down about -30.04% over the last 12 months (as of 01/10/2023). IYW has traded between $70.72 and $110.79 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 32.88% for the trailing three-year period, making it a medium risk choice in the space. With about 147 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Technology 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, IYW is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $38.75 billion in assets, Vanguard Information Technology ETF has $39.99 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Technology ETF (IYW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 18.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $7.92 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 18.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 18.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 18.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
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17669.0
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2023-01-10 00:00:00 UTC
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Better Buy: Tesla vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-tesla-vs.-amazon
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nan
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nan
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Tesla (NASDAQ: TSLA) and Amazon (NASDAQ: AMZN) were two S&P 500 components that saw their stock prices collapse by at least 50% in 2022. Combined, over $1.5 trillion in value evaporated in just 12 months from these two stocks alone.
Even now, it's hard to know whether the dust is finally starting to settle or more pain lurks ahead. But long-term investors know that powering through bear markets can be one of the most effective ways to compound wealth over time.
Tesla and Amazon are high-profile growth stocks that stand out as compelling buys. Here's why.
Image source: Getty Images.
Look at cash flow
Howard Smith (Tesla): There's no doubt Amazon and Tesla have both been amazingly successful. They are similar in other ways, too. Both generate large amounts of cash that continue to be reinvested in the business. But they are at different stages of business operations, giving investors more of a choice when deciding which may be the better buy now.
Being a less mature company, one would think Tesla would be pouring more of its cash generation into investments to continue to grow its business. But Tesla has actually been generating cash faster than it needs to spend it. The electric vehicle (EV) leader reported more than $6 billion in free cash flow (FCF) -- that is, after capital expenditures -- in the first nine months of 2022. Conversely, Amazon has had nearly $20 billion of negative FCF for the trailing-12-month period ended Sept. 30, 2022.
TSLA Free Cash Flow data by YCharts.
One of the biggest risks of investing in Tesla is that its growth rate doesn't hold up. Increasing competition and slowing global economies could hit demand for Tesla's vehicles. It's clear that Tesla's market share will decrease. The question is how fast the overall EV market itself grows.
Both Amazon and Tesla could have a place in a portfolio right now. Amazon seems to have over-expanded as it added fulfillment centers and employees in recent years. It has recently announced layoffs and looks to be in a contracting part of its business cycle. Much depends on the investor's personal approach. But for new money, it looks like a good time to buy Tesla.
Amazon's business model is unpopular right now
Daniel Foelber (Amazon): One of the reasons Amazon stands out as a particularly compelling buy is that its business model is not doing well in the short term and is out of favor on Wall Street. And when something is out of favor in the short term but works over the long term, it's typically a good buying opportunity.
Amazon's approach is to take any excess cash it generates from its operations and reinvest it to drive growth. It's basically the exact opposite strategy of a company like Apple (NASDAQ: AAPL), which historically uses its FCF to buy back its own stock and pay dividends while maintaining consistent, growing profits. Over the past 10 years, Apple has reduced its share count by a staggering 39.5%, while Amazon has diluted its stock through stock-based compensation and grown its share count by 12.2%. Apple's FCF is also consistently positive and up 150% in the last 10 years, while Amazon's is FCF negative.
AMZN Shares Outstanding data by YCharts.
During times of economic uncertainty, investors gravitate toward stability and value. The capital-intensive nature and risk of Amazon's business model make it a riskier bet than a stock like Apple. And for that reason, it's unsurprising that Amazon is down so much further than Apple from its all-time high over the last few years.
But overall, I think Amazon offers the single most attractive risk/reward on the market right now -- unlike Apple, which I would classify as low risk and moderate reward, or Tesla, which I would label a high risk and high potential reward. I would argue that Amazon is among the few stocks with a low risk and high potential reward.
Amazon has grown to become one of the most powerful brands in the world in multiple business-to-business and business-to-consumer categories. Its e-commerce and logistics are truly unrivaled, and its advertising business is incredibly powerful. Currently, it's the industry leader in cloud IT infrastructure, even with Microsoft and Alphabet aggressively investing to take market share. Throw in Amazon Video, Audible, Twitch, Whole Foods, and a slew of other Amazon subsidiaries, and you have a company that offers investors exposure to a wide swath of industries.
Given everything Amazon offers, I could see it easily becoming and staying the most valuable company in the world over the coming decades, outlasting any recession or economic downturn. That combination of stability and opportunity is simply too good to pass up -- especially with the stock down 54% from its all-time high.
The worst could be yet to come, but both stocks are still buys
Growth stocks like Tesla and Amazon could very well be in for more pain in 2023, even though both are already down big off their highs. Despite this risk, investors are getting good entry points into both stocks. Trying to time the market perfectly by buying a stock on the cheap is a fool's errand. Rather, increasing your savings rate during bear markets and investing in quality companies that you believe can compound over time are habits that can help lead you to lasting wealth.
Tesla and Amazon are facing slowing growth, which could make their performances look poor in the short term. The good news is that both companies' long-term investment theses have arguably gotten much better over the last two years, despite both stock prices being lower.
10 stocks we like better than Tesla
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel Foelber has positions in Alphabet, Amazon.com, and Tesla and has the following options: long January 2025 $170 calls on Amazon.com, long January 2025 $300 calls on Tesla, long January 2025 $90 calls on Amazon.com, short February 2023 $100 calls on Amazon.com, short January 2025 $175 calls on Amazon.com, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla. Howard Smith has positions in Alphabet, Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's basically the exact opposite strategy of a company like Apple (NASDAQ: AAPL), which historically uses its FCF to buy back its own stock and pay dividends while maintaining consistent, growing profits. The electric vehicle (EV) leader reported more than $6 billion in free cash flow (FCF) -- that is, after capital expenditures -- in the first nine months of 2022. Rather, increasing your savings rate during bear markets and investing in quality companies that you believe can compound over time are habits that can help lead you to lasting wealth.
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It's basically the exact opposite strategy of a company like Apple (NASDAQ: AAPL), which historically uses its FCF to buy back its own stock and pay dividends while maintaining consistent, growing profits. The electric vehicle (EV) leader reported more than $6 billion in free cash flow (FCF) -- that is, after capital expenditures -- in the first nine months of 2022. Daniel Foelber has positions in Alphabet, Amazon.com, and Tesla and has the following options: long January 2025 $170 calls on Amazon.com, long January 2025 $300 calls on Tesla, long January 2025 $90 calls on Amazon.com, short February 2023 $100 calls on Amazon.com, short January 2025 $175 calls on Amazon.com, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla.
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It's basically the exact opposite strategy of a company like Apple (NASDAQ: AAPL), which historically uses its FCF to buy back its own stock and pay dividends while maintaining consistent, growing profits. Amazon's business model is unpopular right now Daniel Foelber (Amazon): One of the reasons Amazon stands out as a particularly compelling buy is that its business model is not doing well in the short term and is out of favor on Wall Street. The worst could be yet to come, but both stocks are still buys Growth stocks like Tesla and Amazon could very well be in for more pain in 2023, even though both are already down big off their highs.
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It's basically the exact opposite strategy of a company like Apple (NASDAQ: AAPL), which historically uses its FCF to buy back its own stock and pay dividends while maintaining consistent, growing profits. But long-term investors know that powering through bear markets can be one of the most effective ways to compound wealth over time. The worst could be yet to come, but both stocks are still buys Growth stocks like Tesla and Amazon could very well be in for more pain in 2023, even though both are already down big off their highs.
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17670.0
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2023-01-09 00:00:00 UTC
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Technology Sector Update for 01/09/2023: AAPL,PL,META
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-01-09-2023%3A-aaplplmeta
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nan
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nan
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Technology stocks were posting large gains on Monday, with the Technology Select Sector SPDR Fund (XLK) rising 2.8% and the Philadelphia Semiconductor Index advancing 3.7% this afternoon.
In company news, Apple (AAPL) gained 2.1% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the previous fiscal year. Contract manufacturers Foxconn and Wistron each shipped over $1 billion of the phones over the final nine months of 2022, while Pegatron is expected to ship about $500 million worth of the devices by end-January.
Planet Labs PBC (PL) added 1.8% after the global data company Monday said it has completed its acquisition of privately held climate technology firm Salo Sciences.
Meta Platform (META) rose 1.1% after the oversight board for the company's Facebook unit Monday reversed the decision to remove a post written in Farsi in July against Iran's supreme leader, concluding the slogan "marg bar Khamenei" should be understood as "Down with Khamenei" rather than a credible threat. Meta originally removed the post saying violated its Violence and Incitement community standard.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) gained 2.1% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the previous fiscal year. Planet Labs PBC (PL) added 1.8% after the global data company Monday said it has completed its acquisition of privately held climate technology firm Salo Sciences. Meta Platform (META) rose 1.1% after the oversight board for the company's Facebook unit Monday reversed the decision to remove a post written in Farsi in July against Iran's supreme leader, concluding the slogan "marg bar Khamenei" should be understood as "Down with Khamenei" rather than a credible threat.
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In company news, Apple (AAPL) gained 2.1% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the previous fiscal year. Technology stocks were posting large gains on Monday, with the Technology Select Sector SPDR Fund (XLK) rising 2.8% and the Philadelphia Semiconductor Index advancing 3.7% this afternoon. Planet Labs PBC (PL) added 1.8% after the global data company Monday said it has completed its acquisition of privately held climate technology firm Salo Sciences.
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In company news, Apple (AAPL) gained 2.1% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the previous fiscal year. Technology stocks were posting large gains on Monday, with the Technology Select Sector SPDR Fund (XLK) rising 2.8% and the Philadelphia Semiconductor Index advancing 3.7% this afternoon. Meta Platform (META) rose 1.1% after the oversight board for the company's Facebook unit Monday reversed the decision to remove a post written in Farsi in July against Iran's supreme leader, concluding the slogan "marg bar Khamenei" should be understood as "Down with Khamenei" rather than a credible threat.
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In company news, Apple (AAPL) gained 2.1% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the previous fiscal year. Technology stocks were posting large gains on Monday, with the Technology Select Sector SPDR Fund (XLK) rising 2.8% and the Philadelphia Semiconductor Index advancing 3.7% this afternoon. Contract manufacturers Foxconn and Wistron each shipped over $1 billion of the phones over the final nine months of 2022, while Pegatron is expected to ship about $500 million worth of the devices by end-January.
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17671.0
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2023-01-09 00:00:00 UTC
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Why Microsoft Stock Topped the Market Today
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AAPL
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https://www.nasdaq.com/articles/why-microsoft-stock-topped-the-market-today
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nan
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What happened
Like many big companies, Microsoft (NASDAQ: MSFT) likes to grow even larger by acquisitions. The pace of the software giant's asset buys has slowed of late, but it's still got its eyes on attractively valued prizes. On Monday the company announced its latest acquisition, and investors greeted the news by trading Microsoft stock up by 1% to top the essentially flat S&P 500 index.
So what
Confirming rumors that had been floating around the tech space for several weeks, Microsoft announced on its official blog that it acquired Fungible. The formerly privately held company specializes in data processing units (DPUs), a type of hardware frequently deployed for use in data centers.
The company was founded by onetime Apple software engineer Bertrand Serlet in 2016. Fungible's core product, the Fungible DPU, was also invented that year.
In its post, Microsoft did not specify how much it paid for Fungible. Media reports in December speculated that the tech giant parted with around $190 million to buy the company.
Now what
The post did state that the deal
further signals Microsoft's commitment to long-term differentiated investments in our data center infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing data center server density, optimizing energy efficiency and reducing costs.
Data centers, which as their name implies are facilities that store large amounts of data, are crucial to the modern IT operations of corporations. Although the Fungible acquisition is rather small compared to the overall size of Microsoft, it's an encouraging sign that the company is paying proper attention to, and servicing, its proprietary data center needs.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Monday the company announced its latest acquisition, and investors greeted the news by trading Microsoft stock up by 1% to top the essentially flat S&P 500 index. Now what The post did state that the deal further signals Microsoft's commitment to long-term differentiated investments in our data center infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing data center server density, optimizing energy efficiency and reducing costs. Although the Fungible acquisition is rather small compared to the overall size of Microsoft, it's an encouraging sign that the company is paying proper attention to, and servicing, its proprietary data center needs.
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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 and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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On Monday the company announced its latest acquisition, and investors greeted the news by trading Microsoft stock up by 1% to top the essentially flat S&P 500 index. Now what The post did state that the deal further signals Microsoft's commitment to long-term differentiated investments in our data center infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing data center server density, optimizing energy efficiency and reducing costs. Although the Fungible acquisition is rather small compared to the overall size of Microsoft, it's an encouraging sign that the company is paying proper attention to, and servicing, its proprietary data center needs.
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The formerly privately held company specializes in data processing units (DPUs), a type of hardware frequently deployed for use in data centers. In its post, Microsoft did not specify how much it paid for Fungible. That's right -- they think these 10 stocks are even better buys.
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17672.0
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2023-01-09 00:00:00 UTC
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US STOCKS-S&P 500 near flat as investors weigh chances of less aggressive rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-near-flat-as-investors-weigh-chances-of-less-aggressive-rate-hikes
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Jan 9 (Reuters) - The S&P 500 index .SPXerased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were offset by lingering worries about inflation.
The Dow ended lower, and the Nasdaq Composite .IXIC ended well off the day's highs.
Investors are awaiting comments Tuesday from Fed Chair Jerome Powell, who some strategists expect could say more time is needed to show inflation is under control.
Money market bets were showing 77% odds of a 25-basis point hike in the Fed's February policy meeting. FEDWATCH
A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. "The CPI report this week is going to be essential for fine-tuning the Fed funds futures market."
Investors also may have sold some shares after recent strong market gains, said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago. "You're seeing a little bit of profit-taking ahead of the CPI number due out this week."
The technology sector .SPLRCT gained as Treasury yields fell. Consumer discretionary stocks .SPLRCD also rose, with Amazon.com Inc AMZN.Oup 1.5% after Jefferies said it saw cost pressures easing for the e-commerce giant in the second half of the year.
Also, S&P 500 companies are about to kick off the fourth-quarter earnings period, with results from top U.S. banks expected later this week.
The Dow Jones Industrial Average .DJI fell 112.96 points, or 0.34%, to 33,517.65, the S&P 500 .SPX lost 2.99 points, or 0.08%, to 3,892.09 and the Nasdaq Composite .IXIC added 66.36 points, or 0.63%, to 10,635.65.
Shares of Broadcom Inc AVGO.O fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc AAPL.O plans to drop a Broadcom chip in 2025 and use an in-house design instead.
Friday's jobs report, which showed a moderation in wage increases, lifted hopes that the Fed might become less aggressive in its rate-hike push to reduce inflation.
Tesla Inc TSLA.Oshares rose 5.9% after the electric-vehicle maker indicated longer waiting times for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand.
Macy's Inc M.Nfell 7.7% and Lululemon Athletica Inc LULU.Odropped 9.3% after both retailers issued disappointing holiday-quarter forecasts.
Volume on U.S. exchanges was 11.35 billion shares, compared with the 10.90 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered decliners on the NYSE by a 1.85-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers.
The S&P 500 posted 13 new 52-week highs and two new lows; the Nasdaq Composite recorded 129 new highs and 32 new lows.
(Additional reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Broadcom Inc AVGO.O fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc AAPL.O plans to drop a Broadcom chip in 2025 and use an in-house design instead. By Caroline Valetkevitch NEW YORK, Jan 9 (Reuters) - The S&P 500 index .SPXerased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were offset by lingering worries about inflation. FEDWATCH A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina.
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Shares of Broadcom Inc AVGO.O fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc AAPL.O plans to drop a Broadcom chip in 2025 and use an in-house design instead. The Dow ended lower, and the Nasdaq Composite .IXIC ended well off the day's highs. FEDWATCH A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina.
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Shares of Broadcom Inc AVGO.O fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc AAPL.O plans to drop a Broadcom chip in 2025 and use an in-house design instead. FEDWATCH A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. The Dow Jones Industrial Average .DJI fell 112.96 points, or 0.34%, to 33,517.65, the S&P 500 .SPX lost 2.99 points, or 0.08%, to 3,892.09 and the Nasdaq Composite .IXIC added 66.36 points, or 0.63%, to 10,635.65.
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Shares of Broadcom Inc AVGO.O fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc AAPL.O plans to drop a Broadcom chip in 2025 and use an in-house design instead. By Caroline Valetkevitch NEW YORK, Jan 9 (Reuters) - The S&P 500 index .SPXerased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were offset by lingering worries about inflation. The Dow ended lower, and the Nasdaq Composite .IXIC ended well off the day's highs.
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17673.0
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2023-01-09 00:00:00 UTC
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Apple to drop key Broadcom chip in 2025 for in-house design - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-to-drop-key-broadcom-chip-in-2025-for-in-house-design-bloomberg-news-0
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nan
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Adds shares, details
Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter.
The iPhone maker is also looking to swap out Qualcomm Inc's QCOM.O cellular modem chips with its own by the end of 2024 or early 2025, according to the report.
Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments.
Shares of Broadcom ended 2% lower.
For fiscal 2022, Apple accounted for about 20% of Broadcom's net revenue and contributed at least 10% of revenue for Qualcomm.
Apple has been working to limit its reliance on other chipmakers. With recent models of its Mac computers, the company moved to its own M1 line of chips, replacing those from Intel Corp INTC.O.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((yuvraj.malik@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 shares, details Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. The iPhone maker is also looking to swap out Qualcomm Inc's QCOM.O cellular modem chips with its own by the end of 2024 or early 2025, according to the report. With recent models of its Mac computers, the company moved to its own M1 line of chips, replacing those from Intel Corp INTC.O.
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Adds shares, details Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments. Shares of Broadcom ended 2% lower.
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Adds shares, details Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments. For fiscal 2022, Apple accounted for about 20% of Broadcom's net revenue and contributed at least 10% of revenue for Qualcomm.
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Adds shares, details Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments. Shares of Broadcom ended 2% lower.
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17674.0
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2023-01-09 00:00:00 UTC
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TSLA Stock: Why a $3,300 Self-Driving Stroller Should Have Tesla Investors on Alert
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AAPL
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https://www.nasdaq.com/articles/tsla-stock%3A-why-a-%243300-self-driving-stroller-should-have-tesla-investors-on-alert
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In 2012, Tesla (NASDAQ:TSLA) launched its first mass-production vehicle, the Tesla Model S.
Love or hate the firm (or its controversial boss), the vehicle was a stunning leap forward in electric vehicle technology. The car could travel 265 miles on a single charge and earned the 2013 Motor Trend Car of the Year award. Reviewers noted how the Model S “drives like a sports car… but it’s also as smoothly effortless as a Rolls-Royce.”
“By any measure, the Tesla Model S is a truly remarkable automobile, perhaps the most accomplished all-new luxury car since the original Lexus LS 400. That’s why it’s our 2013 Car of the Year.”
I too, would eventually hop on the Tesla bandwagon and recommend a position in the firm’s fast-growing stock.
Fast forward a decade, however, and everything has changed.
At this year’s highly anticipated Consumer Electronics Show (CES) in Las Vegas, Sony (NYSE:SONY) and Honda (NYSE:HMC) revealed their Afeela concept, an electric vehicle prototype equipped with dozens of sensors (radar, ultrasonic, cameras, etc.) and wall-to-wall screens. Stellantis (NYSE:STLA) subsidiary Ram would also wow attendees with its Ram 1500 Revolution BEV concept — an electric pickup truck ostensibly designed to compete against the Cybertruck. Production models will hit the road as soon as 2024.
Perhaps the most attention-grabbing was Ella’s $3,300 self-driving stroller, an invention promising to provide “effortless walks anywhere,” with an “uncompromising Advanced Parent Assist System.” (I can only assume a version for toy poodles is right around the corner).
“Gluxkind’s AI powered smart stroller wins CES Innovation Award Honoree title and is recognized as the most innovative product in 2023. From a record high 2,000 submissions this year, Ella scored the highest in the category of Vehicle Tech & Advanced Mobility.”
No matter where you look, competitors are beginning to catch up to Tesla’s technologies, design and ability to grab headlines.
In January 2021, I reversed my call on Tesla to a “sell.” And as Tesla continues to squander its lead, investors would do well to follow suit.
A Battery Leader No More
This year’s CES highlighted how far battery technologies have come.
When the Model S first debuted in 2012, it stunned the world with a maximum range between two to three times as far as competitors. An equivalent 2012 Nissan Leaf, for instance, could only travel 100 miles on a single charge.
CEO Elon Musk and his team achieved this feat by producing batteries in house, and programmed them to use all available capacity. As Car and Driver explained in 2020, “In the Model S, that means all 100.0 kWh are available to the owner, rather than always holding some capacity in reserve in the name of battery longevity.” (The 2021 Audi e-tron, by comparison, still only allows users to spend 86.5 kWh of the battery pack’s listed 95.3 kWh).
Tesla’s do-it-yourself approach also allowed the firm to maximize efficiency between its motors, inverters and battery packs. For every 8%-10% of motor efficiency, Tesla researchers found, a vehicle’s range improves by 15%-18%.
At this year’s CES, competitors have begun to steal the spotlight in battery technology. The Ram 1500 BEV pickup will reportedly go on the market with a 500-mile range — equivalent to the priciest Tri Motor Cybertruck and twice as far as Tesla’s entry-level version. And Factorial, the battery developer behind Ram’s extended range, debuted its 100 amp-hour solid-state battery cells.
Meanwhile, Tesla remains wedded to developing Lithium Iron Phosphate (LFP) batteries, a technology that’s cheaper, but also less energy-dense. Vehicles made with LFP batteries will consequently become heavier, less range-efficient and have less towing capacity.
Self-Driving on a Road to Nowhere
Secondly, this year’s CES highlights how Tesla is falling behind in self-driving technologies due to its reliance on camera-only detection.
It’s a simple technology that CEO Elon Musk has repeatedly emphasized.
“The probability of safety will be higher with pure vision than vision with radar, not lower,” Musk told Electrek in June 2021. “Vision has become so good that radar actually reduces signal noise.”
Rival automakers, on the other hand, have largely ignored Musk’s hesitations. LiDAR (light radar), radar, ultrasonic and in-car cameras featured heavily in the Sony/Honda collaboration this year at CES. Even the self-driving Ella stroller at CES appears to have multiple sensors to enhance the several cameras on its frame.
The Tech Factor
Finally, the automakers at CES this year highlighted that Tesla is still a car company, not a software one. In Las Vegas this week, South Korean carmaker Hyundai Motor (OTCMKTS:HYMTF) announced it would use technology developed by Nvidia (NASDAQ:NVDA) to stream games in cars. And China’s BYD (OTCMKTS:BYDDF) and Polestar (NASDAQ:PSNY) are also reportedly working with Nvidia to provide access to over 1,000 game titles.
It’s a similar move to the “holiday update” Tesla performed in December, where it added 1,000 PC games through the Steam platform.
These are hardware firms buying software from other vendors.
The seemingly minor difference plays a major role in share price because of the amount of capital these firms employ. Running 3-stage discounted cash flow (DCF) model on Tesla as a software firm pegs shares anywhere from $175 to $250. Doing the same exercise as a car company drops fair value to $44, a 60% downside.
Can TSLA Stock Return to Stardom?
Many leading firms have found themselves pursuing the wrong technologies before. Apple (NASDAQ:AAPL) almost missed the boat on music streaming after heavily investing in its buy-to-own media strategy. And Microsoft’s (NASDAQ:MSFT) first version of Azure cloud computing failed to include Linux — a mistake that Amazon Web Services took full advantage of.
Nevertheless, Apple and Microsoft eventually changed tack to dominate their industries.
Today, Tesla is facing the same set of challenges. Upstarts and legacy firms alike are eroding the electric vehicle maker’s lead.
CES 2023 is now ringing a loud warning bell: Musk can no longer afford to squander his company’s lead by pursuing second-rate technologies. And unless his firm gets back to wowing customers and CES attendees, Tesla will soon find itself as a peer among legacy carmakers — slogging away in a capital-intensive, low-returning business, miles away from consumer electronics shows.
On the date of publication, Tom Yeung did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
The post TSLA Stock: Why a $3,300 Self-Driving Stroller Should Have Tesla Investors on Alert 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) almost missed the boat on music streaming after heavily investing in its buy-to-own media strategy. From a record high 2,000 submissions this year, Ella scored the highest in the category of Vehicle Tech & Advanced Mobility.” No matter where you look, competitors are beginning to catch up to Tesla’s technologies, design and ability to grab headlines. In Las Vegas this week, South Korean carmaker Hyundai Motor (OTCMKTS:HYMTF) announced it would use technology developed by Nvidia (NASDAQ:NVDA) to stream games in cars.
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Apple (NASDAQ:AAPL) almost missed the boat on music streaming after heavily investing in its buy-to-own media strategy. The car could travel 265 miles on a single charge and earned the 2013 Motor Trend Car of the Year award. At this year’s highly anticipated Consumer Electronics Show (CES) in Las Vegas, Sony (NYSE:SONY) and Honda (NYSE:HMC) revealed their Afeela concept, an electric vehicle prototype equipped with dozens of sensors (radar, ultrasonic, cameras, etc.)
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Apple (NASDAQ:AAPL) almost missed the boat on music streaming after heavily investing in its buy-to-own media strategy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2012, Tesla (NASDAQ:TSLA) launched its first mass-production vehicle, the Tesla Model S. Love or hate the firm (or its controversial boss), the vehicle was a stunning leap forward in electric vehicle technology. Self-Driving on a Road to Nowhere Secondly, this year’s CES highlights how Tesla is falling behind in self-driving technologies due to its reliance on camera-only detection.
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Apple (NASDAQ:AAPL) almost missed the boat on music streaming after heavily investing in its buy-to-own media strategy. A Battery Leader No More This year’s CES highlighted how far battery technologies have come. The Tech Factor Finally, the automakers at CES this year highlighted that Tesla is still a car company, not a software one.
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17675.0
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2023-01-09 00:00:00 UTC
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Apple to drop key Broadcom chip in 2025 for in-house design - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-to-drop-key-broadcom-chip-in-2025-for-in-house-design-bloomberg-news
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nan
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nan
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Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter.
The iPhone-maker is also swapping out Qualcomm Inc QCOM.O for homegrown modems, according to the report.
Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments.
(Reporting by Yuvraj Malik in Bengaluru)
((yuvraj.malik@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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Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. The iPhone-maker is also swapping out Qualcomm Inc QCOM.O for homegrown modems, according to the report. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments.
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Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments. (Reporting by Yuvraj Malik in Bengaluru) ((yuvraj.malik@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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Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments. (Reporting by Yuvraj Malik in Bengaluru) ((yuvraj.malik@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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Jan 9 (Reuters) - Apple Inc AAPL.O plans to drop a Broadcom Inc AVGO.O chip used in its devices in 2025 and use an in-house design instead, Bloomberg News reported on Monday, according to people familiar with the matter. The iPhone-maker is also swapping out Qualcomm Inc QCOM.O for homegrown modems, according to the report. Apple, Broadcom and Qualcomm did not immediately reply to Reuters' requests for comments.
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17676.0
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2023-01-09 00:00:00 UTC
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Technology Sector Update for 01/09/2023: SLAB, AAPL, PL, META
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-01-09-2023%3A-slab-aapl-pl-meta
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nan
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Technology stocks continue to outpace most other sectors on Monday, with the Technology Select Sector SPDR Fund (XLK) late Monday rising 1.0% and the Philadelphia Semiconductor Index advancing 1.7% this afternoon.
In company news, Silicon Laboratories (SLAB) climbed 4% after Wells Fargo raised its price target for the fabless chipmaker's shares by $10 to $155 and also reiterated its overweight rating for the stock.
Apple (AAPL) gained 0.4% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the prior fiscal year, while contract manufacturers Foxconn and Wistron each shipped over $1 billion of the smartphones over the same period.
Planet Labs PBC (PL) added 1.2% after the global data company said it has completed its acquisition of privately held climate technology firm Salo Sciences.
Meta Platform (META) slipped 0.4%, giving back an earlier gain. The oversight board for its Facebook unit reversed the decision to remove a post written in Farsi in July, concluding the slogan "marg bar Khamenei" should be understood as Down with the Iranian supreme leader rather than a credible threat. It previously removed the post saying it violated rules against inciting violence or physical harm.
The views and 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) gained 0.4% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the prior fiscal year, while contract manufacturers Foxconn and Wistron each shipped over $1 billion of the smartphones over the same period. In company news, Silicon Laboratories (SLAB) climbed 4% after Wells Fargo raised its price target for the fabless chipmaker's shares by $10 to $155 and also reiterated its overweight rating for the stock. Planet Labs PBC (PL) added 1.2% after the global data company said it has completed its acquisition of privately held climate technology firm Salo Sciences.
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Apple (AAPL) gained 0.4% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the prior fiscal year, while contract manufacturers Foxconn and Wistron each shipped over $1 billion of the smartphones over the same period. Technology stocks continue to outpace most other sectors on Monday, with the Technology Select Sector SPDR Fund (XLK) late Monday rising 1.0% and the Philadelphia Semiconductor Index advancing 1.7% this afternoon. Meta Platform (META) slipped 0.4%, giving back an earlier gain.
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Apple (AAPL) gained 0.4% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the prior fiscal year, while contract manufacturers Foxconn and Wistron each shipped over $1 billion of the smartphones over the same period. Technology stocks continue to outpace most other sectors on Monday, with the Technology Select Sector SPDR Fund (XLK) late Monday rising 1.0% and the Philadelphia Semiconductor Index advancing 1.7% this afternoon. The oversight board for its Facebook unit reversed the decision to remove a post written in Farsi in July, concluding the slogan "marg bar Khamenei" should be understood as Down with the Iranian supreme leader rather than a credible threat.
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Apple (AAPL) gained 0.4% amid reports the tech giant exported $2.5 billion of iPhones from India from April 1 through the end of 2022, almost double its total for the prior fiscal year, while contract manufacturers Foxconn and Wistron each shipped over $1 billion of the smartphones over the same period. Technology stocks continue to outpace most other sectors on Monday, with the Technology Select Sector SPDR Fund (XLK) late Monday rising 1.0% and the Philadelphia Semiconductor Index advancing 1.7% this afternoon. In company news, Silicon Laboratories (SLAB) climbed 4% after Wells Fargo raised its price target for the fabless chipmaker's shares by $10 to $155 and also reiterated its overweight rating for the stock.
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17677.0
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2023-01-09 00:00:00 UTC
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Why Apple Was Rising Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-was-rising-today
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) were rising on Monday, up 2.4% as of 10:33 a.m. ET, about half a percentage point above the Nasdaq.
Tech stocks got a follow-through rally on top of Friday's surge, which came after some economic data pointed to a still-strong labor market but with decelerating wage growth and moderating services demand. That's what the Federal Reserve wants to see -- an economic cooling to tame inflation, but not so much of one that it affects the job market.
In addition to the positive macroeconomic news, a leading financial publication published a piece about Apple's upcoming AR/VR headset, which it expects will be released in the next few months. An exciting product launch could be the catalyst sending Apple's beaten-down shares above the market today.
So what
Today, Bloomberg reported that Apple now plans to launch its first headset this spring, just before its Worldwide Developers Conference in June. Bloomberg also points out that the company has had a VR headset in development for seven years, and that it initially planned a launch in 2019 before a series of delays.
Most recently, the company sought to release the headset in January, but it looks as though a final delay will put the headset launch sometime midyear. Bloomberg reports that the company will release the headset under the name Reality Pro, that it will have its own operating system (called xrOS), and that the company has already sent the prototype to a few select software developers.
On top of Bloomberg's reporting, The Information recently reported that a distinguishing feature of the new headset will be a battery pack that attaches to the user's waist, which will enable the headset itself to be lighter than those of rivals.
Delays or not, it appears investors are excited about a new product launch. Apple hasn't really released a brand-new type of device since the Apple Watch back in 2015, or, if you count AirPods as a device, 2016; while there were initially some skeptics, the Apple Watch has made a meaningful impact on revenues and profits for the iPhone giant, as have AirPods, despite Apple's already-massive size. Therefore, a new VR headset could continue Apple's streak of successful and meaningful new product launches.
Now what
Given the recent tech sector sell-off and concerns over a potential recession this year, Apple has fallen by nearly a quarter over the past year, and its P/E ratio has compressed from the high 20s to around 21.5 today.
Whether that is cheap enough to be considered a bargain for Apple stock remains to be seen, and it may depend on how bad an upcoming recession will be -- if we even have one. However, a lower stock price combined with a new device launch certainly could be a bullish setup for Warren Buffett's favorite stock in 2023.
10 stocks we like better than Apple
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Billy Duberstein has positions in Apple and has the following options: short January 2023 $210 calls on Apple. The Motley Fool has positions in and recommends Apple. His clients may own shares of the companies mentioned. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Apple (NASDAQ: AAPL) were rising on Monday, up 2.4% as of 10:33 a.m. Tech stocks got a follow-through rally on top of Friday's surge, which came after some economic data pointed to a still-strong labor market but with decelerating wage growth and moderating services demand. In addition to the positive macroeconomic news, a leading financial publication published a piece about Apple's upcoming AR/VR headset, which it expects will be released in the next few months.
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What happened Shares of Apple (NASDAQ: AAPL) were rising on Monday, up 2.4% as of 10:33 a.m. Bloomberg also points out that the company has had a VR headset in development for seven years, and that it initially planned a launch in 2019 before a series of delays. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Billy Duberstein has positions in Apple and has the following options: short January 2023 $210 calls on Apple.
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What happened Shares of Apple (NASDAQ: AAPL) were rising on Monday, up 2.4% as of 10:33 a.m. Apple hasn't really released a brand-new type of device since the Apple Watch back in 2015, or, if you count AirPods as a device, 2016; while there were initially some skeptics, the Apple Watch has made a meaningful impact on revenues and profits for the iPhone giant, as have AirPods, despite Apple's already-massive size. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Billy Duberstein has positions in Apple and has the following options: short January 2023 $210 calls on Apple.
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What happened Shares of Apple (NASDAQ: AAPL) were rising on Monday, up 2.4% as of 10:33 a.m. Bloomberg also points out that the company has had a VR headset in development for seven years, and that it initially planned a launch in 2019 before a series of delays. That's right -- they think these 10 stocks are even better buys.
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17678.0
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2023-01-09 00:00:00 UTC
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2 Stocks to Watch From the Challenging Computer Industry
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-watch-from-the-challenging-computer-industry-1
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nan
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nan
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The Zacks Computer – Mini Computers industry is suffering from massive supply-chain and logistical issues, along with several pandemic-related and geopolitical challenges, including the ongoing Russia-Ukraine war. The declining demand for PCs has become a concern for industry participants. Nevertheless, strong demand for high-end laptops is benefiting Apple AAPL and Lenovo Group LNVGY. Improving the availability of 5G-enabled smartphones has been a key catalyst for industry participants. The growing adoption of tablets among enterprises bodes well for companies like Apple and Lenovo. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow. BYOD has proved more productive as it lowers training time. Moreover, the coronavirus-induced remote-working and online-learning models bode well for industry participants as demand is expected to increase for desktops and laptops.
Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm (Snapdragon-branded), NVIDIA (Tegra X1), Apple (A16 Bionic) and Samsung (Exynos 9609). Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #227, which places it in the bottom 9% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since Mar 31, 2022, the Zacks Consensus Estimate for this industry’s 2022 earnings has moved down 2.9%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector, Lags S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector but lagged the S&P 500 index over the past year.
The industry has dropped 27.1% over this period compared with the S&P 500’s decline of 19.8% and the broader sector’s fall of 34%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 19.35X compared with the S&P 500’s 16.92X and the sector’s 19.49X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 20.94X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s near-term prospects are driven by the launch of the latest iPhone models, with iPhone 14 Pro witnessing strong demand. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment.
Apple currently has more than 900 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2023 earnings has declined 0.6% to $6.19 per share over the past 30 days. The stock has lost 27.1% in the past year.
Price and Consensus: AAPL
Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitalization efforts by enterprises worldwide and faster adoption of the hybrid work model.
Lenovo’s healthy cash balance is also helping it increase investments in research & development.
The Zacks Consensus Estimate for fiscal 2023 earnings has been unchanged at $3 per share over the past 30 days. Shares of LNVGY have declined 27.7% in the past year.
Price and Consensus: LNVGY
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : 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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Price and Consensus: AAPL Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitalization efforts by enterprises worldwide and faster adoption of the hybrid work model. Nevertheless, strong demand for high-end laptops is benefiting Apple AAPL and Lenovo Group LNVGY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : 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 Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, strong demand for high-end laptops is benefiting Apple AAPL and Lenovo Group LNVGY. Price and Consensus: AAPL Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitalization efforts by enterprises worldwide and faster adoption of the hybrid work model.
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Nevertheless, strong demand for high-end laptops is benefiting Apple AAPL and Lenovo Group LNVGY. Price and Consensus: AAPL Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitalization efforts by enterprises worldwide and faster adoption of the hybrid work model. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Nevertheless, strong demand for high-end laptops is benefiting Apple AAPL and Lenovo Group LNVGY. Price and Consensus: AAPL Lenovo: This Zacks Rank #3 company is benefiting from the ongoing digitalization efforts by enterprises worldwide and faster adoption of the hybrid work model. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17679.0
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2023-01-09 00:00:00 UTC
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The Technology Select Sector SPDR Fund Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/the-technology-select-sector-spdr-fund-experiences-big-inflow-2
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $137.2 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 306,010,000 to 307,110,000). Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 1.8%, Apple Inc (Symbol: AAPL) is up about 2.3%, and International Business Machines Corp (Symbol: IBM) is higher by about 0.6%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average:
Looking at the chart above, XLK's low point in its 52 week range is $112.97 per share, with $170.36 as the 52 week high point — that compares with a last trade of $127.44. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
David Einhorn Stock Picks
NERV Stock Predictions
BSTC Price Target
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 1.8%, Apple Inc (Symbol: AAPL) is up about 2.3%, and International Business Machines Corp (Symbol: IBM) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $137.2 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 306,010,000 to 307,110,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 1.8%, Apple Inc (Symbol: AAPL) is up about 2.3%, and International Business Machines Corp (Symbol: IBM) is higher by about 0.6%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $112.97 per share, with $170.36 as the 52 week high point — that compares with a last trade of $127.44. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 1.8%, Apple Inc (Symbol: AAPL) is up about 2.3%, and International Business Machines Corp (Symbol: IBM) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $137.2 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 306,010,000 to 307,110,000). For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $112.97 per share, with $170.36 as the 52 week high point — that compares with a last trade of $127.44.
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Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 1.8%, Apple Inc (Symbol: AAPL) is up about 2.3%, and International Business Machines Corp (Symbol: IBM) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $137.2 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 306,010,000 to 307,110,000). For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $112.97 per share, with $170.36 as the 52 week high point — that compares with a last trade of $127.44.
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17680.0
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2023-01-09 00:00:00 UTC
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TQQQ, XDQQ: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-xdqq%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 12,000,000 units were destroyed, or a 2.0% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is up about 1.8%, and Apple is up by about 2.4%.
And on a percentage change basis, the ETF with the biggest outflow was the XDQQ ETF, which lost 325,000 of its units, representing a 36.1% decline in outstanding units compared to the week prior.
VIDEO: TQQQ, XDQQ: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in morning trading today Microsoft is up about 1.8%, and Apple is up by about 2.4%. And on a percentage change basis, the ETF with the biggest outflow was the XDQQ ETF, which lost 325,000 of its units, representing a 36.1% decline in outstanding units compared to the week prior. VIDEO: TQQQ, XDQQ: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 12,000,000 units were destroyed, or a 2.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the XDQQ ETF, which lost 325,000 of its units, representing a 36.1% decline in outstanding units compared to the week prior. VIDEO: TQQQ, XDQQ: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 12,000,000 units were destroyed, or a 2.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the XDQQ ETF, which lost 325,000 of its units, representing a 36.1% decline in outstanding units compared to the week prior. VIDEO: TQQQ, XDQQ: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 12,000,000 units were destroyed, or a 2.0% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is up about 1.8%, and Apple is up by about 2.4%. And on a percentage change basis, the ETF with the biggest outflow was the XDQQ ETF, which lost 325,000 of its units, representing a 36.1% decline in outstanding units compared to the week prior.
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17681.0
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2023-01-09 00:00:00 UTC
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Nasdaq leads Wall St higher as interest rate worries ease
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AAPL
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https://www.nasdaq.com/articles/nasdaq-leads-wall-st-higher-as-interest-rate-worries-ease
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
Jan 9 (Reuters) - The tech-heavy Nasdaq led gains among the main Wall Street indexes on Monday, boosted by shares of Amazon and Tesla, while signs of a cooling labor market supported bets of a slower pace of interest rate hikes by the Federal Reserve.
Amazon.com Inc AMZN.O rose 3.4% after Jefferies said it saw cost pressures easing for the e-commerce giant in the second half of the year.
Tesla Inc TSLA.O climbed 7.5% after the electric-vehicle maker indicated longer waiting times for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand.
Other rate-sensitive growth stocks like Apple Inc AAPL.O and Alphabet Inc GOOGL.O gained about 1% each as U.S. Treasury yields declined.
The gains pushed technology .SPLRCT to the top of the major S&P 500 sector indexes list. The S&P 500 growth index .IGX was up 3.6%, outperforming a 0.7% rise in its value peers .IVX.
The benchmark S&P 500 .SPX and the Nasdaq .IXIC closed the week higher on Friday after a moderation in wage increases and a decline in U.S. services activity in December buoyed hopes of a less hawkish stance from the Fed as well as a soft landing for the U.S. economy.
"The number of jobs created is working its way down slowly and wages are starting to calm down. Both of those are important for inflation coming under control, without necessarily careening the U.S economy to a recession," said Art Hogan, chief market strategist at B. Riley Financial.
The highly awaited U.S. Labor Department's inflation report on Thursday is expected to show some moderation in year-on-year consumer prices in December.
Money market bets show 75% odds of a 25-basis point hike in the Fed's February policy meeting, with the terminal rate expected just below 5% by June. FEDWATCH
Other economic data such as weekly jobless claims and the University of Michigan's consumer sentiment report will also be in focus this week, as big U.S. banks kick off the quarterly earnings season on Friday.
A slew of Fed officials including Chair Jerome Powell are due to speak this week, with investors parsing their commentary for more clues on the rate-hike trajectory.
U.S.-listed shares of Alibaba Group Holding Ltd BABA.N rose 2.7% on news that Ant Group's founder Jack Ma will give up control of the Chinese fintech giant in an overhaul.
At 9:58 a.m. ET, the Dow Jones Industrial Average .DJI was up 132.40 points, or 0.39%, at 33,763.01, the S&P 500 .SPX was up 33.17 points, or 0.85%, at 3,928.25, and the Nasdaq Composite .IXIC was up 160.39 points, or 1.52%, at 10,729.69.
Macy's Inc M.N and Lululemon Athletica Inc LULU.O dropped 8.7% and 10.3%, respectively, following dour holiday-quarter forecasts from both the retailers.
Other retailers such as Kohl's Corp KSS.N and Nordstrom Inc JWN.N also took a hit, down 4.3% and 2.9%, respectively.
Advancing issues outnumbered decliners for a 3.68-to-1 ratio on the NYSE and a 2.15-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 95 new highs and 14 new lows.
(Reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other rate-sensitive growth stocks like Apple Inc AAPL.O and Alphabet Inc GOOGL.O gained about 1% each as U.S. Treasury yields declined. By Ankika Biswas and Amruta Khandekar Jan 9 (Reuters) - The tech-heavy Nasdaq led gains among the main Wall Street indexes on Monday, boosted by shares of Amazon and Tesla, while signs of a cooling labor market supported bets of a slower pace of interest rate hikes by the Federal Reserve. Tesla Inc TSLA.O climbed 7.5% after the electric-vehicle maker indicated longer waiting times for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand.
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Other rate-sensitive growth stocks like Apple Inc AAPL.O and Alphabet Inc GOOGL.O gained about 1% each as U.S. Treasury yields declined. The highly awaited U.S. Labor Department's inflation report on Thursday is expected to show some moderation in year-on-year consumer prices in December. Money market bets show 75% odds of a 25-basis point hike in the Fed's February policy meeting, with the terminal rate expected just below 5% by June.
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Other rate-sensitive growth stocks like Apple Inc AAPL.O and Alphabet Inc GOOGL.O gained about 1% each as U.S. Treasury yields declined. By Ankika Biswas and Amruta Khandekar Jan 9 (Reuters) - The tech-heavy Nasdaq led gains among the main Wall Street indexes on Monday, boosted by shares of Amazon and Tesla, while signs of a cooling labor market supported bets of a slower pace of interest rate hikes by the Federal Reserve. The benchmark S&P 500 .SPX and the Nasdaq .IXIC closed the week higher on Friday after a moderation in wage increases and a decline in U.S. services activity in December buoyed hopes of a less hawkish stance from the Fed as well as a soft landing for the U.S. economy.
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Other rate-sensitive growth stocks like Apple Inc AAPL.O and Alphabet Inc GOOGL.O gained about 1% each as U.S. Treasury yields declined. By Ankika Biswas and Amruta Khandekar Jan 9 (Reuters) - The tech-heavy Nasdaq led gains among the main Wall Street indexes on Monday, boosted by shares of Amazon and Tesla, while signs of a cooling labor market supported bets of a slower pace of interest rate hikes by the Federal Reserve. The highly awaited U.S. Labor Department's inflation report on Thursday is expected to show some moderation in year-on-year consumer prices in December.
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2023-01-09 00:00:00 UTC
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U.S. Supreme Court lets Meta's WhatsApp pursue 'Pegasus' spyware suit
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https://www.nasdaq.com/articles/u.s.-supreme-court-lets-metas-whatsapp-pursue-pegasus-spyware-suit
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Adds further background on case, paragraphs 3-15
WASHINGTON, Jan 9 (Reuters) - The U.S. Supreme Court on Monday let Meta Platforms Inc's META.O WhatsApp pursue a lawsuit accusing Israel's NSO Group of exploiting a bug in its WhatsApp messaging app to install spy software allowing the surveillance of 1,400 people, including journalists, human rights activists and dissidents.
The justices turned away NSO's appeal of a lower court's decision that the lawsuit could move forward. NSO has argued that it is immune from being sued because it was acting as an agent for unidentified foreign governments when it installed the "Pegasus" spyware.
President Joe Biden's administration had urged the justices to reject NSO's appeal, noting that the U.S. State Department had never before recognized a private entity acting as an agent of a foreign state as being entitled to immunity.
WhatsApp in 2019 sued NSO seeking an injunction and damages, accusing it of accessing WhatsApp servers without permission six months earlier to install the Pegasus software on victims' mobile devices.
NSO has argued that Pegasus helps law enforcement and intelligence agencies fight crime and protect national security and that its technology is intended to help catch terrorists, pedophiles and hardened criminals.
In court papers, NSO said that WhatsApp's notification to users scuttled a foreign government's investigation into an Islamic State militant who was using the app to plan an attack.
In one notorious case, NSO spyware was used - allegedly by the Saudi government - to target the inner circle of Washington Post journalist Jamal Khashoggi shortly before he was murdered at the Saudi consulate in Istanbul.
NSO appealed a trial judge's 2020 refusal to award it "conduct-based immunity," a common law doctrine protecting foreign officials acting in their official capacity.
Upholding that ruling in 2021, the San Francisco-based 9th U.S. Circuit Court of Appeals called it an "easy case" because NSO's mere licensing of Pegasus and offering technical support did not shield it from liability under a federal law called the Foreign Sovereign Immunities Act, which took precedence over common law.
WhatsApp's lawyers said that private entities like NSO are "categorically ineligible" for foreign sovereign immunity.
The Biden administration in a filing in November said the 9th Circuit reached the right result, even though the government was not ready to endorse the circuit court's conclusion that FSIA entirely forecloses any form of immunity under common law.
According to court papers, the accounts of 1,400 WhatsApp users were accessed using the Pegasus tracking software, secretly using their smartphones as surveillance devices.
An investigation published in 2021 by 17 media organizations, led by the Paris-based non-profit journalism group Forbidden Stories, found that the spyware had been used in attempted and successful hacks of smartphones belonging to journalists, government officials and human rights activists on a global scale.
The U.S. government in November 2021 blacklisted NSO and Israel's Candiru, accusing them of providing spyware to governments that used it to "maliciously target" journalists, activists and others.
NSO also is being sued by iPhone maker Apple Inc AAPL.O, accused of violating its user terms and services agreement.
(Reporting by Nate Raymond in Boston; Editing by Will Dunham)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NSO also is being sued by iPhone maker Apple Inc AAPL.O, accused of violating its user terms and services agreement. Adds further background on case, paragraphs 3-15 WASHINGTON, Jan 9 (Reuters) - The U.S. Supreme Court on Monday let Meta Platforms Inc's META.O WhatsApp pursue a lawsuit accusing Israel's NSO Group of exploiting a bug in its WhatsApp messaging app to install spy software allowing the surveillance of 1,400 people, including journalists, human rights activists and dissidents. In court papers, NSO said that WhatsApp's notification to users scuttled a foreign government's investigation into an Islamic State militant who was using the app to plan an attack.
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NSO also is being sued by iPhone maker Apple Inc AAPL.O, accused of violating its user terms and services agreement. NSO appealed a trial judge's 2020 refusal to award it "conduct-based immunity," a common law doctrine protecting foreign officials acting in their official capacity. Circuit Court of Appeals called it an "easy case" because NSO's mere licensing of Pegasus and offering technical support did not shield it from liability under a federal law called the Foreign Sovereign Immunities Act, which took precedence over common law.
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NSO also is being sued by iPhone maker Apple Inc AAPL.O, accused of violating its user terms and services agreement. Adds further background on case, paragraphs 3-15 WASHINGTON, Jan 9 (Reuters) - The U.S. Supreme Court on Monday let Meta Platforms Inc's META.O WhatsApp pursue a lawsuit accusing Israel's NSO Group of exploiting a bug in its WhatsApp messaging app to install spy software allowing the surveillance of 1,400 people, including journalists, human rights activists and dissidents. NSO has argued that it is immune from being sued because it was acting as an agent for unidentified foreign governments when it installed the "Pegasus" spyware.
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NSO also is being sued by iPhone maker Apple Inc AAPL.O, accused of violating its user terms and services agreement. NSO has argued that it is immune from being sued because it was acting as an agent for unidentified foreign governments when it installed the "Pegasus" spyware. Circuit Court of Appeals called it an "easy case" because NSO's mere licensing of Pegasus and offering technical support did not shield it from liability under a federal law called the Foreign Sovereign Immunities Act, which took precedence over common law.
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2023-01-09 00:00:00 UTC
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3 Tech Companies to Watch in 2023
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https://www.nasdaq.com/articles/3-tech-companies-to-watch-in-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For investors in a wide swath of companies, 2022 was a rough year. That said, it was a downright brutal year for those invested in most tech companies.
Indeed, the three stocks on this list are among the mega-cap juggernauts of the tech world. With market capitalizations ranging from $335 billion to more than $2 trillion, these are the companies most investors had on their watch lists (or in their portfolios) in 2022.
However, with the significant rotation out of growth stocks last year, questions remain. Are these stocks worth buying at these levels? Or is 2023 going to be another year where investors are betting off waiting?
In either case, it pays to keep a close eye on how these stocks perform. That’s because whether you’re an active investor with direct exposure to these names, or a passive investor focused on index funds, you’ve probably got exposure to these names. They’re among the heaviest weightings in many index funds, after all.
With that said, let’s dive into why these market-moving tech companies are worth watching in 2023.
GOOG, GOOGL Alphabet $88.16, $87.34
AAPL Apple $129.62
META Meta Platforms $130.02
Alphabet (GOOG, GOOGL)
Source: rvlsoft / Shutterstock.com
Alphabet (NASDAQ:GOOG, GOOGL) has actually proven itself to be more resilient than many of its tech counterparts. This goes double for investors considering the digital advertising space.
Alphabet’s Google search business remains the core pillar of the company’s cash flow-generating machine. However, the company has shown an incredible ability to lessen what could be sub-par growth in the advertising business via the company’s fast-growing Google Could business. Overall, this is a multi-headed tech behemoth with several impressive cash flow centers worth watching.
Analysts have noted that Alphabet has produced annual revenue growth of 23% over the past five years and operational profitability of 27%. These are key metrics to watch in the year to come to see how Alphabet is able to weather the storm. Assuming estimates aren’t missed to a significant degree, this is a stock I think could be poised for a nice medium-term rebound. It’s on my watch list now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
What list of tech companies to buy is complete without talking about Apple (NASDAQ:AAPL)?
This company skipped my watch list and has been a portfolio holding for some time. That’s a good thing, considering Apple’s incredible growth in recent years, spurred by continued revenue diversification across product lines and a very loyal consumer base.
The company’s ongoing troubles with its iPhone plant in China, lower expectations for demand for consumer discretionary goods, and Apple’s relatively high-priced products have made for a negative catalyst soup. Accordingly, in recent days, this stock has hit multi-year lows.
That said, I think apple is certainly worth putting on the watch list right now. Depending on how 2023 shapes up, Apple could be a stock that leads the market out of the gutter it’s in. This is the world’s largest company for a reason and is likely to continue pushing forward, no matter the economic environment.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Last on this list of tech companies worth watching in 2023 is Meta Platforms (NASDAQ:META). A beleaguered stock, to be sure, Meta has had a rough go of things, to say the least.
Now down more than 60% over the past year alone, Meta stock has been hit by a flurry of issues. Whether it’s the company’s all-in (and very expensive) move into the metaverse, its heavy cost profile, or its loss of focus on its core cash flow-producing business, there are reasons why many investors are steering clear of this top tech name.
That said, at these lower levels, I think META stock is a buy. This is a stock that has a lot of bad news priced in. Unless we’re up for the next Great Depression, this is a company that should be at least close to consolidating near the bottom.
Sure, things could get materially worse in 2023. Many expect this coming year to provide more of the same. But for those with a decade-plus investing time horizon, this is a stock I think is worth owning at these levels right now. Or, at least deserves a place on the watch list.
On the date of publication, Chris MacDonald has a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Tech Companies to Watch 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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GOOG, GOOGL Alphabet $88.16, $87.34 AAPL Apple $129.62 META Meta Platforms $130.02 Alphabet (GOOG, GOOGL) Source: rvlsoft / Shutterstock.com Alphabet (NASDAQ:GOOG, GOOGL) has actually proven itself to be more resilient than many of its tech counterparts. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com What list of tech companies to buy is complete without talking about Apple (NASDAQ:AAPL)? On the date of publication, Chris MacDonald has a position in AAPL, META.
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GOOG, GOOGL Alphabet $88.16, $87.34 AAPL Apple $129.62 META Meta Platforms $130.02 Alphabet (GOOG, GOOGL) Source: rvlsoft / Shutterstock.com Alphabet (NASDAQ:GOOG, GOOGL) has actually proven itself to be more resilient than many of its tech counterparts. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com What list of tech companies to buy is complete without talking about Apple (NASDAQ:AAPL)? On the date of publication, Chris MacDonald has a position in AAPL, META.
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GOOG, GOOGL Alphabet $88.16, $87.34 AAPL Apple $129.62 META Meta Platforms $130.02 Alphabet (GOOG, GOOGL) Source: rvlsoft / Shutterstock.com Alphabet (NASDAQ:GOOG, GOOGL) has actually proven itself to be more resilient than many of its tech counterparts. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com What list of tech companies to buy is complete without talking about Apple (NASDAQ:AAPL)? On the date of publication, Chris MacDonald has a position in AAPL, META.
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GOOG, GOOGL Alphabet $88.16, $87.34 AAPL Apple $129.62 META Meta Platforms $130.02 Alphabet (GOOG, GOOGL) Source: rvlsoft / Shutterstock.com Alphabet (NASDAQ:GOOG, GOOGL) has actually proven itself to be more resilient than many of its tech counterparts. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com What list of tech companies to buy is complete without talking about Apple (NASDAQ:AAPL)? On the date of publication, Chris MacDonald has a position in AAPL, META.
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2023-01-09 00:00:00 UTC
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Should Invesco Dynamic Large Cap Growth ETF (PWB) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-invesco-dynamic-large-cap-growth-etf-pwb-be-on-your-investing-radar-5
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Dynamic Large Cap Growth ETF (PWB) is a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $565.37 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
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 0.55%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.31%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 50.40% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL).
The top 10 holdings account for about 35.17% of total assets under management.
Performance and Risk
PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF return is roughly 0.80% so far this year and is down about -21.89% in the last one year (as of 01/09/2023). In the past 52-week period, it has traded between $56.26 and $77.64.
The ETF has a beta of 1 and standard deviation of 28.25% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth 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, PWB is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $68.02 billion in assets, Invesco QQQ has $146.75 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $565.37 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Dynamic Large Cap Growth ETF (PWB) is a passively managed exchange traded fund launched on 03/03/2005.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Dynamic Large Cap Growth ETF (PWB) is a passively managed exchange traded fund launched on 03/03/2005.
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Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Dynamic Large Cap Growth ETF (PWB) is a passively managed exchange traded fund launched on 03/03/2005.
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2023-01-09 00:00:00 UTC
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2 Warren Buffett Stocks That Are No-Brainer Buys and 1 to Avoid Like the Plague
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-are-no-brainer-buys-and-1-to-avoid-like-the-plague
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about building wealth on Wall Street. Since taking the reins as CEO in 1965, he's created almost $690 billion in value for shareholders and overseen a greater than 3,700,000% return in his company's Class A shares (BRK.A).
The Oracle of Omaha also has a knack for outperforming during periods of uncertainty. Whereas the benchmark S&P 500 tumbled 19% in 2022 and entered a bear market, Berkshire Hathaway's stock finished the year higher by 4%.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
As we move headlong into a new year, two Warren Buffett stocks stand out as no-brainer buys that can continue delivering for their shareholders. Meanwhile, the Oracle of Omaha's top holding is one that investors can easily avoid in 2023.
Warren Buffett stock No. 1 that's a no-brainer buy in 2023: Johnson & Johnson
Although it's not a particularly large holding in Berkshire Hathaway's investment portfolio, healthcare conglomerate Johnson & Johnson (NYSE: JNJ) stands head-and-shoulders above its peers as a no-brainer buy in 2023.
To begin with, healthcare stocks tend to be highly defensive. Since we have no control over when we get sick or what ailment(s) we develop, there's always going to be a need for prescription drugs, medical devices, and healthcare services in any economic environment. This steady demand for drugs, devices, and services is what helped J&J grow its adjusted operational earnings every year for 35 years, leading up to the COVID-19 pandemic.
In 2023, Johnson & Johnson will be spinning off its consumer health products division, which will be known as Kenvue. This segment, which includes top-tier brands such as Tylenol and Listerine, generated $11.2 billion in sales through the first nine months of 2022 and produced nearly $2.3 billion in earnings before taxes. J&J will still be the majority shareholder following the upcoming spinoff.
Although J&J's consumer health segment offers strong pricing power and predictable operating cash flow, it's generally a slow-growing division. Not only will this spinoff raise capital for J&J, but it'll place even more emphasis on the company's faster-growing operating segments: pharmaceuticals and medical technology.
The beauty of brand-name drugs is they provide juicy operating margins and account for most of J&J's sales growth. Unfortunately, brand-name drugs offer a finite period of sales exclusivity. Johnson & Johnson counters the possibility of a patent cliff from its drug portfolio by reinvesting in drug development, acquiring new pipeline products, and relying on its medical device segment. As the global population ages, demand for all types of medical devices should climb.
But during a period of heightened uncertainty, it's J&J's balance sheet and capital-return program that really stands outs. Johnson & Johnson has increased its base annual dividend in each of the past 60 years and offers one of the largest dividends in the world, in nominal-dollar terms. Further, it's one of only two publicly traded companies with the highest possible credit rating (AAA) from Standard & Poor's, a division of S&P Global.
A multiple of 17 times Wall Street's consensus earnings in 2023 is a fair price to pay for a phenomenal company like J&J.
Warren Buffett stock No. 2 that's a no-brainer buy in 2023: Paramount Global
The second Warren Buffett stock that's nothing short of a no-brainer buy for the new year is media behemoth Paramount Global (NASDAQ: PARA).
"Clobbered" is perhaps the one word that best describes what happened to media stocks last year. The growing likelihood of a U.S. recession has weakened advertising revenue for legacy TV media operations. Meanwhile, the expensive shift to streaming has led to a lot of red ink for virtually all legacy networks, including Paramount.
But there a number of important catalysts investors seem to be overlooking.
For starters, while advertising is cyclical, the ups and downs associated with ad spending disproportionately favors optimists. That's because economic downturns usually only last a couple of quarters, whereas periods of expansion are measured in years. Skeptics have a tendency to pile on ad-driven businesses when the winds of recession blow. But as is the norm, they overshoot valuations to the downside without factoring in the length of economic recoveries and bull markets. In short, Paramount Global's advertising revenue, while weak at the moment, should be of no concern to patient investors.
Despite segment-based losses, streaming is another bright spot for Paramount. The company closed out the September quarter with 67 million direct-to-consumer subscribers, which represents an increase of 20 million from the prior-year period. Best of all, it's continued to grow the number of paying subs even after losing 3.9 million subscribers when pulling its services out of Russia during the second quarter.
Although Paramount+ rightly gets most of the attention, don't forget about the nation's largest free, ad-supported streaming platform, Pluto TV. If a recession does materialize in the U.S., consumers are more likely to seek ways to reduce their monthly expenses. Pluto TV's freemium model would seem to be a perfect fit for such a scenario. Not surprisingly, average revenue per user and total viewing hours for Pluto TV have both been increasing.
Although media stocks don't turn on a dime, history has shown that bear markets are a smart time to buy stakes in high-quality companies within this industry. At a multiple of 14 times Wall Street's consensus earnings for 2023, Paramount Global looks like an incredible deal.
Image source: Apple.
The Warren Buffett stock to avoid like the plague in the new year: Apple
On the other side of the aisle is a well-known Warren Buffett stock that I believe investors can easily avoid like the plague in 2023. I'm talking about Berkshire Hathaway's top holding, Apple (NASDAQ: AAPL).
To be perfectly fair, Apple isn't a bad company. It's driven by innovation and an exceptionally loyal base of customers. Since introducing 5G-capable iPhones in late 2020, Apple has seen its U.S. smartphone market share soar to around 50%.
Apple is also benefiting from its ongoing shift to subscription services. Apple's services segment is capable of sustained double-digit growth and higher operating margins than its physical products.
Additionally, Apple has repurchased $554 billion worth of its common stock over the past nine years. Not including itself, that's more than the market cap of all but four of the other 499 companies that are part of the S&P 500.
But there are plenty of warning signs, as well. For example, Apple recently ratcheted down efforts to expand production of iPhone 14 since demand didn't meet initial expectations. While some of this can be blamed on persistent overseas supply issues, historically high inflation, and weakening domestic and global economic outlooks, it may also have to do with iPhone 14 offering only minimal design changes from its predecessor.
Another issue for Apple is the Federal Reserve's aggressive shift in monetary policy. In the past, Apple had taken advantage of historically low lending rates to take on debt and use that capital to repurchase its own stock. However, with access to cheap capital effectively gone, it's not out of the question that Apple's share buybacks could slow a bit. These buybacks have been instrumental in lifting the company's earnings per share.
Once again, I'll reiterate, Apple isn't a bad company. But at closer to 21 times Wall Street's forecast earnings in 2023, sales growth of 2% to 3% simply won't cut it. My prediction is we'll see Berkshire Hathaway's largest holding fall below $100 per share this year.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and S&P Global. The Motley Fool recommends Johnson & Johnson and 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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I'm talking about Berkshire Hathaway's top holding, Apple (NASDAQ: AAPL). Although J&J's consumer health segment offers strong pricing power and predictable operating cash flow, it's generally a slow-growing division. Although media stocks don't turn on a dime, history has shown that bear markets are a smart time to buy stakes in high-quality companies within this industry.
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I'm talking about Berkshire Hathaway's top holding, Apple (NASDAQ: AAPL). Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about building wealth on Wall Street. 2 that's a no-brainer buy in 2023: Paramount Global The second Warren Buffett stock that's nothing short of a no-brainer buy for the new year is media behemoth Paramount Global (NASDAQ: PARA).
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I'm talking about Berkshire Hathaway's top holding, Apple (NASDAQ: AAPL). 2 that's a no-brainer buy in 2023: Paramount Global The second Warren Buffett stock that's nothing short of a no-brainer buy for the new year is media behemoth Paramount Global (NASDAQ: PARA). The Warren Buffett stock to avoid like the plague in the new year: Apple On the other side of the aisle is a well-known Warren Buffett stock that I believe investors can easily avoid like the plague in 2023.
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I'm talking about Berkshire Hathaway's top holding, Apple (NASDAQ: AAPL). This steady demand for drugs, devices, and services is what helped J&J grow its adjusted operational earnings every year for 35 years, leading up to the COVID-19 pandemic. 2 that's a no-brainer buy in 2023: Paramount Global The second Warren Buffett stock that's nothing short of a no-brainer buy for the new year is media behemoth Paramount Global (NASDAQ: PARA).
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17686.0
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2023-01-09 00:00:00 UTC
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Hedge Funds Favor These 5 Big Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/hedge-funds-favor-these-5-big-tech-stocks
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nan
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nan
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Shares of big tech companies lost substantial value in the past year due to macro challenges (high inflation and rising interest rates). While inflation has moderated a bit, economic uncertainty and the Fed’s hawkish stance continue to pose challenges. Despite headwinds, hedge fund managers have accumulated shares of Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL) in the last three months.
Using TipRanks’ Hedge Fund Trading Activity tool (it provides hedge fund signals based on data from Form 13-F), let’s find out which of these big tech stocks hedge funds bought in bulk.
Big Tech: Which Stock Did Hedge Funds Buy the Most?
Our tool shows that hedge funds bought more GOOGL stock than any other stock in the last three months. Per the tool, hedge funds bought 129.4M shares of GOOGL. Several hedge fund managers increased their holdings in Google's stock. The list includes Bridgewater Associates’ Ray Dalio, Caxton Associates LP’s Andrew Law, and PYA Waltman Capital, LLC’s J. William Waltman, Jr.
Besides for GOOGL stock, hedge funds acquired 33.2M shares of Microsoft. Further, they bought 26.3M shares of Amazon.
During the same period, hedge funds bought 9.6M shares of Nvidia. Furthermore, they increased their exposure in Apple stock by adding 671.9K shares.
While hedge funds bought GOOGL stock in bulk, should investors follow?
Is GOOGL a Buy, Sell, or Hold?
Along with hedge fund managers, GOOGL stock also has positive signals from Wall Street analysts. It has received 32 unanimous Buy recommendations for a Strong Buy consensus rating on TipRanks. Moreover, these analysts’ average price target of $126.09 implies 44.37% upside potential.
Tigress Financial analyst Ivan Feinseth sees the recent pullback in GOOGL stock as a “major buying opportunity.”
Feinseth is upbeat about the ongoing strength in GOOGL’s Cloud and Search segments. Moreover, he expects the company to benefit from its investments in AI (Artificial Intelligence).
Overall, with positive indicators from hedge funds and analysts, GOOGL stock has a maximum Smart Score of “Perfect 10.” (Stay abreast of the best that TipRanks’ Smart Score has to offer.)
Bottom Line
Hedge fund managers are known to deliver market-beating returns. Thus, retail investors could benefit from following their trades. As for GOOGL stock, positive signals from hedge funds and analysts and the momentum in its core business make it an attractive long-term play.
Find out which stock the biggest hedge fund managers are buying right now.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite headwinds, hedge fund managers have accumulated shares of Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL) in the last three months. Shares of big tech companies lost substantial value in the past year due to macro challenges (high inflation and rising interest rates). While inflation has moderated a bit, economic uncertainty and the Fed’s hawkish stance continue to pose challenges.
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Despite headwinds, hedge fund managers have accumulated shares of Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL) in the last three months. Using TipRanks’ Hedge Fund Trading Activity tool (it provides hedge fund signals based on data from Form 13-F), let’s find out which of these big tech stocks hedge funds bought in bulk. Several hedge fund managers increased their holdings in Google's stock.
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Despite headwinds, hedge fund managers have accumulated shares of Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL) in the last three months. Using TipRanks’ Hedge Fund Trading Activity tool (it provides hedge fund signals based on data from Form 13-F), let’s find out which of these big tech stocks hedge funds bought in bulk. Our tool shows that hedge funds bought more GOOGL stock than any other stock in the last three months.
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Despite headwinds, hedge fund managers have accumulated shares of Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL) in the last three months. Several hedge fund managers increased their holdings in Google's stock. Along with hedge fund managers, GOOGL stock also has positive signals from Wall Street analysts.
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17687.0
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2023-01-09 00:00:00 UTC
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Applied Materials Gained 7% in the Second Half of 2022. Is the Worst Over?
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AAPL
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https://www.nasdaq.com/articles/applied-materials-gained-7-in-the-second-half-of-2022.-is-the-worst-over
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nan
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nan
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What happened
Shares of Applied Materials (NASDAQ: AMAT), one of the leading suppliers of semiconductor manufacturing equipment worldwide, rose 7% in the second half of 2022, according to data from S&P Global Market Intelligence. Despite the 2022 bear market, with the S&P 500 falling sharply late last year, shares of the semiconductor giant rallied because of numerous announcements from its main manufacturing customers.
As of this writing, shares of Applied Materials are down 31.5% over the past 12 months.
So what
Applied Materials develops and sells tools that manufacturers use to produce semiconductors. Companies such as Taiwan Semiconductor Manufacturing, Samsung, and Intel need Applied Materials' equipment to make the most advanced chips on the market, making the products vital for the progression of various industries, including cloud computing, smartphones, and the internet of things (IoT).
Early in 2022, the investment community got worried that a glut of supply would show up in the semiconductor market after the shortages of 2020 and 2021, leading to a decrease in demand for Applied Materials' products. Small supply gluts did show up last year, with companies including Nvidia, Apple, and AMD reducing their chip orders. Investors also probably got spooked by the escalating technology/trade dispute between China and the United States when the latter decided to ban selling certain semiconductor supplies to China. China customers accounted for 28% of Applied Materials' revenue in fiscal 2022, with management stating that the new rules could cause the company to lose $2.5 billion in revenue next fiscal year. For reference, consolidated revenue was $25.8 billion last year.
But throughout the end of 2022, major announcements were made that shine a light on why Applied Materials may have a bright future this decade. Taiwan Semiconductor committed to a new $40 billion plant in Arizona, among many other commitments, while Intel has announced two new $20 billion factories in Ohio and Arizona. Samsung is spending a whopping $355 billion on semiconductors and biopharma over the next five years, the majority of which is going to go to computer chips. A lot of this committed capital from these companies will go toward buying equipment from Applied Materials.
Now what
Applied Materials is one of the most important cogs in the semiconductor supply chain, with minimal competition. The industry has been known to be cyclical, so there is always a risk that the demand for Applied Materials tools will decrease in 2023, which could affect the stock. But over the long term, with its three key manufacturing customers set to spend hundreds of billions of dollars building new factories in Asia and North America, the company looks set to succeed over the long term.
10 stocks we like better than Applied Materials
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 Applied Materials 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 December 1, 2022
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Applied Materials, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. 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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What happened Shares of Applied Materials (NASDAQ: AMAT), one of the leading suppliers of semiconductor manufacturing equipment worldwide, rose 7% in the second half of 2022, according to data from S&P Global Market Intelligence. Early in 2022, the investment community got worried that a glut of supply would show up in the semiconductor market after the shortages of 2020 and 2021, leading to a decrease in demand for Applied Materials' products. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Applied Materials, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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Companies such as Taiwan Semiconductor Manufacturing, Samsung, and Intel need Applied Materials' equipment to make the most advanced chips on the market, making the products vital for the progression of various industries, including cloud computing, smartphones, and the internet of things (IoT). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Applied Materials, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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Companies such as Taiwan Semiconductor Manufacturing, Samsung, and Intel need Applied Materials' equipment to make the most advanced chips on the market, making the products vital for the progression of various industries, including cloud computing, smartphones, and the internet of things (IoT). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Applied Materials, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Applied Materials, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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17688.0
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2023-01-09 00:00:00 UTC
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Apple (AAPL) Expands Fitness+ With New Kickboxing Workout
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-expands-fitness-with-new-kickboxing-workout
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nan
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nan
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Apple AAPL is expanding its Fitness+ content today with the introduction of Kickboxing, a new total-body cardio workout type. Each workout will be 10, 20, or 30 minutes long with no requirement for equipment.
Apart from this, the iPhone maker will launch a brand-new meditation theme, Sleep, which will join nine other themes in the Meditation library that includes Calm, Gratitude, Resilience and Creativity.
To help Fitness+ users wind down before bed and drift off to sleep, Apple is launching a program called Introduction to Meditations for Sleep.
Artist Spotlight will launch workouts featuring music by Beyoncé, including songs from her latest album RENAISSANCE. Moreover, seven new workouts, featuring Beyoncé’s music, will be available across Cycling, Dance, HIIT, Pilates, Strength, Treadmill and Yoga.
Fitness+ will roll out two additional Artist Spotlight offerings: the Foo Fighters on Jan 16, and Bad Bunny on Jan 23.
Fitness+ content is expanding further with the fifth season of Time to Walk, which will feature Golden Globe-nominated actor Jamie Lee Curtis, late-night talk show host Amber Ruffin, Olympic champion figure skater Nathan Chen and German actor Nina Hoss.
Fitness+ will launch two new Collections — 6 Weeks to Restart Your Fitness and Level Up Your Core Training — as well as welcome three new trainers to the team.
Will the Service Segment Boost Apple’s Prospects?
Apple is having a rough time with shares declining 24.8% in the past year, underperforming the S&P 500’s decline of 18%.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
This Zacks Rank #3 (Hold) company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s holiday season iPhone shipments are expected to have suffered from disruptions at its China partner Foxconn’s factory in Zhengzhou.
Moreover, Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year for the December-end quarter.
Apple’s Mac is expected to suffer from a lower PC demand in 2023. However, Mac’s growth rate is expected to outperform market leaders like Lenovo LNVGY, HP HPQ and Dell DELL, similar to third-quarter 2022.
Per IDC data, global shipments totaled 74.3 million units during the third quarter of 2022, down 15% due to sluggish demand and uneven supply. According to Gartner data, PC shipments were 68 million, down 19.5%.
However, the IDC and the Gartner report highlighted that Apple gained market share compared with Lenovo, HP and Dell.
Per IDC, in the third quarter, Lenovo and HP both lost market share. Apple and Asus gained market share. While Lenovo’s market share came down to 22.7% from 23.1% in the year-ago quarter, HP’s market share was 17.1% compared with the year-ago quarter’s 20.2%.
Meanwhile, Apple’s share gained from the year-ago quarter’s 8.2% to 13.5%. In terms of PC shipments, Apple gained 40.2% year over year, while Lenovo, HP and Dell were down 16.1%, 27.8% and 21.2%, respectively.
Apple reported Mac sales of $11.51 billion, up 25.4% from the year-ago quarter and accounted for 12.8% of the total fiscal fourth-quarter sales. The figure beat the consensus mark by 27.73%.
Moreover, the Services portfolio has emerged as the company’s new cash cow. It currently has more than 900 million paid subscribers across its Services portfolio.
However, fiscal first-quarter Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, and weakness in digital advertising and gaming.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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 AAPL is expanding its Fitness+ content today with the introduction of Kickboxing, a new total-body cardio workout type. 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 holiday season iPhone shipments are expected to have suffered from disruptions at its China partner Foxconn’s factory in Zhengzhou.
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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 AAPL is expanding its Fitness+ content today with the introduction of Kickboxing, a new total-body cardio workout type. However, the IDC and the Gartner report highlighted that Apple gained market share compared with Lenovo, HP and Dell.
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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 AAPL is expanding its Fitness+ content today with the introduction of Kickboxing, a new total-body cardio workout type. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote This Zacks Rank #3 (Hold) company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex.
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Apple AAPL is expanding its Fitness+ content today with the introduction of Kickboxing, a new total-body cardio workout type. 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 Mac is expected to suffer from a lower PC demand in 2023.
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17689.0
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2023-01-08 00:00:00 UTC
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2 Top Stocks in Warren Buffett's Secret Portfolio to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-in-warren-buffetts-secret-portfolio-to-buy-now-and-hold-forever
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nan
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nan
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Many investors keep apprised of Warren Buffett's investing decisions by monitoring the quarterly Form 13Fs filed by Berkshire Hathaway. But those disclosures only tell part of the story. Berkshire owns New England Asset Management (NEAM), a financial institution with $5.9 billion in invested assets, but none of those securities will appear in Berkshire's 13F filings. Instead, NEAM files its own Form 13Fs with the Securities and Exchange Commission.
To be perfectly clear, Buffett does not control NEAM's invested assets, at least not directly, but he does run the company that ultimately owns those assets. Here are two stocks from Buffett's "secret portfolio" to buy now and hold forever.
1. PayPal: A leader in digital payments
PayPal Holdings (NASDAQ: PYPL) is the most accepted digital wallet in North America and Europe, and it ranked as the most downloaded finance app worldwide in the first half of 2022. That success stems in large part from its two-sided network. Whereas most payment providers work solely with merchants, PayPal builds relationships with merchants and consumers, and that gives the company a material advantage.
For instance, PayPal has a deeper understanding of consumer spending habits, which enhances its ability to drive sales and combat fraud for merchants. In fact, PayPal pairs the lowest loss rates with the highest authorization rate in the industry, meaning it can identify fraudulent transactions more effectively than any rival.
Additionally, PayPal derives another important benefit from its two-sided network. The company has built trust with merchants and consumers, which drives higher conversion rates, more frequent purchases, and larger average order values. In fact, according to CEO Dan Schulman, PayPal checkout conversion is 34% higher than other checkout options.
Those competitive advantages fueled solid financial results on a relatively consistent basis. Despite the challenging economic environment, PayPal's revenue climbed 10% to $27 billion over the past year, and its free cash rose 13% to $5.7 billion. More importantly, investors have good reason to believe the company can maintain (or accelerate) that momentum.
PayPal values its addressable market at $110 trillion, meaning it has hardly scratched the surface of its potential, and it recently forged new partnerships with Amazon and Apple. U.S. consumers can now check out with Venmo on Amazon, and they will soon be able to use PayPal and Venmo branded cards through Apple Pay. Those partnerships could help PayPal take market share in physical and digital commerce.
Currently, shares trade at 3.3 times sales, a bargain compared to the three-year average of 9.1 times sales. That's why this growth stock is worth buying.
2. Nvidia: A leader in graphics and accelerated computing
Nvidia (NASDAQ: NVDA) has come a long way since inventing the graphics processing unit (GPU) in 1999, a chip that brought revolutionary visual effects to video games. GPUs were built to perform billions or even trillions of calculations simultaneously, meaning they can process a lot of data very quickly. That quality makes them very good at rendering ultra-realistic graphics -- in fact, Nvidia holds more than 90% market share in workstation graphics -- but GPUs have also seen widespread adoption in data centers, where they accelerate complex workloads such as artificial intelligence (AI) and scientific computing.
Today, Nvidia holds more than 90% market share in supercomputer accelerators, and its GPUs have become synonymous with AI infrastructure, according to Forrester Research. Additionally, Nvidia doubled down on its data center business by diversifying its portfolio with high-speed networking solutions and subscription software. For instance, AI Enterprise is a suite of software that streamlines the development of AI applications. Nvidia AI addresses use cases across virtually every industry, including autonomous robots in logistics, intelligent avatars in customer service, and loss prevention in retail.
Unfortunately, the semiconductor industry is cyclical, and economic headwinds have exacerbated that cyclicality. High inflation decreased demand for graphics and data center chips while simultaneously putting upward pressure on operating expenses. That one-two punch led to disappointing financial results for Nvidia over the past year. Revenue rose just 18% to $28.6 billion, and free cash flow dropped 33% to $4.8 billion.
Fortunately, Nvidia is poised to reaccelerate growth when the economic headwinds fade. The company puts its addressable market at $1 trillion, and it should benefit from the continued evolution of technologies like autonomous vehicles, intelligent robots, and the metaverse.
The company also plans to debut its first central processing unit (CPU) this year. Code-named Grace, the CPU is a server chip designed to accelerate tasks like machine learning, and it should reinforce Nvidia's importance in the data center.
Currently, shares trade at about 13 times sales, a meaningful discount compared to the three-year average of 20.3 times sales. At that price, investors should buy a small position in this stock.
10 stocks we like better than PayPal
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 PayPal 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 December 1, 2022
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com, Nvidia, and PayPal. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Nvidia, and PayPal. 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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The company has built trust with merchants and consumers, which drives higher conversion rates, more frequent purchases, and larger average order values. Nvidia AI addresses use cases across virtually every industry, including autonomous robots in logistics, intelligent avatars in customer service, and loss prevention in retail. Code-named Grace, the CPU is a server chip designed to accelerate tasks like machine learning, and it should reinforce Nvidia's importance in the data center.
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Despite the challenging economic environment, PayPal's revenue climbed 10% to $27 billion over the past year, and its free cash rose 13% to $5.7 billion. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Nvidia, and PayPal. 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.
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That quality makes them very good at rendering ultra-realistic graphics -- in fact, Nvidia holds more than 90% market share in workstation graphics -- but GPUs have also seen widespread adoption in data centers, where they accelerate complex workloads such as artificial intelligence (AI) and scientific computing. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Nvidia, and PayPal. 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.
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Berkshire owns New England Asset Management (NEAM), a financial institution with $5.9 billion in invested assets, but none of those securities will appear in Berkshire's 13F filings. The company has built trust with merchants and consumers, which drives higher conversion rates, more frequent purchases, and larger average order values. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Nvidia, and PayPal.
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17690.0
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2023-01-08 00:00:00 UTC
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Can Shiba Inu Reach $1 in 2023?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%241-in-2023
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nan
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nan
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There are a number of dog-inspired cryptocurrencies out there. Dogecoin is probably the first that comes to mind. But there's also Shiba Inu (CRYPTO: SHIB), which has produced a monster return of 529,000% since its launch in August 2020. This remarkable price performance even incorporates SHIB's 90% fall over the past 14 months.
What are the chances that Shiba Inu, currently the 16th most valuable cryptocurrency with a market cap of just under $5 billion (as of this writing), reaches $1 in 2023? Let's take a closer look at how likely, or unlikely, this is.
Background on Shiba Inu
Seeing the limitations with Dogecoin, the dog-themed meme token of its predecessor, the founders of Shiba Inu made its token, SHIB, compatible with the vast Ethereum ecosystem, thus connecting it to different protocols. Shiba Inu launched with an initial supply of 1 quadrillion tokens. But after many were burned, the current total in circulation is 549 trillion, according to coinmarketcap.com.
If these numbers seem absurd, that's because they are. Unlike Bitcoin, for example, that has a fixed supply cap of 21 million, Shiba Inu was made to be intentionally abundant, and this is why the token price is so low. The tokens can be used for payments, but this hasn't really caught on, and only roughly 500 merchants accept SHIB.
That's because Shiba Inu possesses no real competitive edge among the 22,000 cryptos out there. It really only caught on because it rode the meme-stock craze that took over markets in the spring of 2021. Retail investors were enamored of the possibility of getting rich quickly, a poor basis for a sound investing philosophy.
To it's credit, Shiba Inu does have some interesting things in the works that could drive greater utility, such as a Layer2 scaling solution known as Shibarium, as well as a non-fungible token-powered metaverse. But why would any developer or user be attracted to Shiba Inu when they can take their time, talent, and dollars to Ethereum, which has a tremendous number of decentralized applications running on it? In addition, Ethereum has a longer operating history and a more robust development pipeline than Shiba Inu.
A $1 price target isn't likely
As of the evening of Jan. 4, the price of one SHIB token was $0.000008537. If SHIB were to hit $1 by the end of 2023, this would imply a gargantuan return of nearly 12,000,000%. And at $1, Shiba Inu's market cap, assuming there are the same number of tokens outstanding, would total a whopping $549 trillion.
Let's put this ridiculous figure in context. For comparison's sake, Apple, the world's most valuable company, has a current market cap of $2 trillion. And the entire gross domestic product of the U.S., the world's wealthiest country, is $23 trillion.
This makes it almost impossible for Shiba Inu to hit the $1 mark not just in 2023, but ever. In fact, the highest price SHIB has ever been at is just under $0.00009 in October 2021. Hoping for it to reach $1 is a loser's game. Those who were lucky enough to get in at SHIB's launch and ride it on the way up certainly made life-changing returns. But that's a thing of the past.
Investors are better off avoiding this meme token at all costs. If you want to invest in digital assets, stay focused on the most popular ones, like Bitcoin and Ethereum. Additionally, only put a small amount (no more than 1%) of a well-diversified portfolio in these assets. This will help you keep your peace of mind.
10 stocks we like better than Shiba Inu
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 Shiba Inu 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 December 1, 2022
Neil Patel has positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. 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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Unlike Bitcoin, for example, that has a fixed supply cap of 21 million, Shiba Inu was made to be intentionally abundant, and this is why the token price is so low. To it's credit, Shiba Inu does have some interesting things in the works that could drive greater utility, such as a Layer2 scaling solution known as Shibarium, as well as a non-fungible token-powered metaverse. But why would any developer or user be attracted to Shiba Inu when they can take their time, talent, and dollars to Ethereum, which has a tremendous number of decentralized applications running on it?
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What are the chances that Shiba Inu, currently the 16th most valuable cryptocurrency with a market cap of just under $5 billion (as of this writing), reaches $1 in 2023? Background on Shiba Inu Seeing the limitations with Dogecoin, the dog-themed meme token of its predecessor, the founders of Shiba Inu made its token, SHIB, compatible with the vast Ethereum ecosystem, thus connecting it to different protocols. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum.
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Background on Shiba Inu Seeing the limitations with Dogecoin, the dog-themed meme token of its predecessor, the founders of Shiba Inu made its token, SHIB, compatible with the vast Ethereum ecosystem, thus connecting it to different protocols. Unlike Bitcoin, for example, that has a fixed supply cap of 21 million, Shiba Inu was made to be intentionally abundant, and this is why the token price is so low. And at $1, Shiba Inu's market cap, assuming there are the same number of tokens outstanding, would total a whopping $549 trillion.
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And at $1, Shiba Inu's market cap, assuming there are the same number of tokens outstanding, would total a whopping $549 trillion. For comparison's sake, Apple, the world's most valuable company, has a current market cap of $2 trillion. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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17691.0
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2023-01-07 00:00:00 UTC
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3 Apple Stock Predictions for 2023
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AAPL
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https://www.nasdaq.com/articles/3-apple-stock-predictions-for-2023
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nan
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nan
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Over the past several years, Apple (NASDAQ: AAPL) has become the model for what tech companies want to be when they grow up. In the decade leading up to November 2021, Apple's revenue nearly tripled -- a remarkable feat for a company its size -- pushing its stock price up nearly 1,000%.
Oh, how the mighty have fallen. COVID-related lockdowns at its main production facility, 40-year-high inflation, and macroeconomic uncertainty have weighed on the iPhone maker, which has shed 31% of its value and $1 trillion from its market capitalization since early last year.
Despite the current stock price, I believe Apple is poised for a surprisingly strong comeback this year. Here are three predictions about what to expect from Apple in 2023.
Image source: Apple.
1. iPhone growth -- and manufacturing -- bounce back
Late last year, Apple confirmed rumors that had swirled for weeks, saying that "COVID-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max" at the assembly plant in Zhengzhou, China. The company went on to say that the significantly lower capacity resulted in reduced output and shipping delays for many customers.
It's logical to conclude that these issues will weigh on the results of Apple's December quarter, which includes the important holiday shopping season. The company's inability to keep up with strong demand for the premium iPhone 14 models will likely mar what is normally Apple's biggest quarter.
It's important to put those issues -- which are completely out of Apple's control -- into context. Over the preceding year, Apple has had four successive quarters of record revenue. Does that sound like a company in trouble?
Furthermore, Apple has taken steps in recent months to diversify its supply chain. Various media reports suggest the company is moving some of its device production to India, Vietnam, and/or Thailand. In the future, these moves will allow Apple to ramp up production in some locations if constraints force cutbacks in others.
2. Apple continues to lead the worldwide smartphone market
While estimates vary, Apple has long been a leader in the worldwide smartphone market, alternating between No. 2 and No. 1, occasionally swapping places with Samsung. As recently as the 2021 fourth quarter, Apple had a 22% market share, topping Samsung's 19%. It hasn't held the top spot since -- but that only tells part of the story.
Sure, Samsung often leads in terms of the number of phones shipped, but Apple's reputation for quality and premium brand allow the company to charge much more for devices than its rivals -- which gives the iPhone maker the vast majority of revenue and profits in the industry.
In the second quarter of 2022 (the last quarter for which the data was tabulated), Apple collected 40% of the smartphone industry revenue, with Samsung taking up a distant second with 24%, according to Counterpoint Research. The contrast is even starker on the bottom line as Apple captured a massive 80% of operating profits in the industry, leaving Samsung with less than 20%, and crumbs for other rivals.
This makes Apple the clear industry leader, in terms of both revenue and profits. Expect that leadership to continue.
3. Apple's services segment will regain its momentum
Apple raised eyebrows in its fiscal 2022 fourth quarter (which ended Sept. 24), when the company revealed that its seemingly invulnerable services segment had hit a wall. Revenue for this segment grew just 5% year over year -- its slowest rate of growth ever.
Consumers have been feeling the pinch of higher prices at the grocery store and the gas pump, so it's inevitable that something had to give -- but don't expect the services business to be stagnant for long.
Apple recently raised the price of its Apple Music service by $1 (and by $2 for family plans). The company pointed out that the price hike covered increased royalties to the artists. Apple TV+ is also increasing its subscription cost by $2 per month -- the first such increase since it debuted in late 2019. Similarly, the Apple One bundle -- which includes Apple Music, Apple TV+, Apple Arcade, iCloud, and other services -- will raise prices on its individual, family, and premier plans by $1, $2, and $3 per month, respectively.
With more than 900 million paid subscribers and more than 1.8 million active devices in the wild, there will always be a market for Apple's services. Once the economy is on better footing, expect the segment to return to double-digit year-over-year growth.
Bonus prediction: Apple recaptures its $3 trillion market cap
As I pointed out, Apple stock has fallen victim to the bear market, down roughly 31% from its high reached late last year -- and the stock could still fall further. At the same time, Apple has continued to grow revenue, albeit at a more moderate pace. Furthermore, the company's price-to-earnings ratio of 20 is very near that of the S&P 500. That suggests its valuation is pretty reasonable, especially in the context of its ongoing opportunity and history of strong execution.
While much depends on how long the economic uncertainty remains, history suggests that Apple will rebound strongly when macro conditions improve. After shedding more than half its value during the Great Recession, Apple stock soared 164% over the following year. So it may not be going too far out on a limb to say Apple could recapture its $3 trillion market capitalization in 2023.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the past several years, Apple (NASDAQ: AAPL) has become the model for what tech companies want to be when they grow up. COVID-related lockdowns at its main production facility, 40-year-high inflation, and macroeconomic uncertainty have weighed on the iPhone maker, which has shed 31% of its value and $1 trillion from its market capitalization since early last year. Sure, Samsung often leads in terms of the number of phones shipped, but Apple's reputation for quality and premium brand allow the company to charge much more for devices than its rivals -- which gives the iPhone maker the vast majority of revenue and profits in the industry.
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Over the past several years, Apple (NASDAQ: AAPL) has become the model for what tech companies want to be when they grow up. Apple continues to lead the worldwide smartphone market While estimates vary, Apple has long been a leader in the worldwide smartphone market, alternating between No. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Over the past several years, Apple (NASDAQ: AAPL) has become the model for what tech companies want to be when they grow up. Apple's services segment will regain its momentum Apple raised eyebrows in its fiscal 2022 fourth quarter (which ended Sept. 24), when the company revealed that its seemingly invulnerable services segment had hit a wall. Similarly, the Apple One bundle -- which includes Apple Music, Apple TV+, Apple Arcade, iCloud, and other services -- will raise prices on its individual, family, and premier plans by $1, $2, and $3 per month, respectively.
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Over the past several years, Apple (NASDAQ: AAPL) has become the model for what tech companies want to be when they grow up. As recently as the 2021 fourth quarter, Apple had a 22% market share, topping Samsung's 19%. Bonus prediction: Apple recaptures its $3 trillion market cap As I pointed out, Apple stock has fallen victim to the bear market, down roughly 31% from its high reached late last year -- and the stock could still fall further.
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17692.0
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2023-01-07 00:00:00 UTC
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Qualcomm Stock: Bear vs. Bull
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AAPL
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https://www.nasdaq.com/articles/qualcomm-stock%3A-bear-vs.-bull
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nan
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nan
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Qualcomm's (NASDAQ: QCOM) stock stumbled 40% in 2022 as investors fretted over its cooling sales of smartphone chips. The broader cyclical slowdown of the semiconductor sector, rising interest rates, and other macroeconomic headwinds made it even less appealing as investors rotated toward more balanced blue-chip stocks.
But after that steep decline, Qualcomm's stock trades at just 11 times forward earnings, and pays a forward dividend yield of 2.7%. Is it the right time to buy Qualcomm as a turnaround play? Let's review the bear and bull cases to decide.
Image source: Getty Images.
What the bears will tell you about Qualcomm
Qualcomm generates most of its revenue from its chipmaking (QCT) division, which sells mobile SoCs (system on chips), baseband modems, radio frequency (RF) front-end chips, automotive chips, and Internet of Things (IoT) chips. In fiscal 2022 (which ended last September), the QCT segment generated two-thirds of its revenue from the smartphone market.
Global sales of new smartphones have been decelerating following the big 5G upgrade cycle from 2019 to 2021. Ongoing COVID lockdowns in China and inflationary headwinds are exacerbating that slowdown. Qualcomm's QCT revenue rose 64% in fiscal 2021 and grew 39% in fiscal 2022, but it's bracing for a 6% to 13% year-over-year drop in the first quarter of 2023.
A month ago, market research firm IDC predicted that the global smartphone market would "remain challenged through the first half of 2023." That slowdown will also impact Qualcomm's smaller licensing (QTL) division, which generates royalties and licensing revenue from its wireless patents. This segment operates at much higher margins than the QCT unit.
Therefore, the bears believe the simultaneous slowdown of Qualcomm's main revenue and profit engines will make it an unappealing investment in a wobbly sector. Furthermore, Qualcomm still faces stiff competition from MediaTek in the low- to mid-range smartphone market, and it expects to eventually lose Apple (NASDAQ: AAPL) as a top customer by fiscal 2025 as the iPhone maker replaces Qualcomm's baseband modems with its own in-house chips.
Faced with all these challenges, analysts expect Qualcomm's revenue and adjusted EPS to decline 9% and 18%, respectively, in fiscal 2023. That deceleration could prevent Qualcomm from outperforming the market.
What the bulls will tell you about Qualcomm
The bulls believe the smartphone market will gradually recover. Looking beyond the near-term headwinds, IDC expects smartphone sales to start climbing again "across most regions" in the second half of 2023 as more consumers in emerging markets upgrade their aging devices. It also expects carriers in developed markets to sell more devices with bigger promotions, better trade-in offers, and more flexible financing options.
That's why IDC expects global smartphone shipments to rise 2.8% in 2023, compared to a decline of 9.1% in 2022. China's decision to end its draconian zero-COVID policies could also accelerate that recovery. Meanwhile, Qualcomm could rely on its stronger sales of automotive and IoT chips to offset its slower sales of smartphone SoCs and modems. The automotive sector should remain a bright spot as automakers install more chips to power their connected and driverless features. That diversification could also mitigate the impact of Qualcomm's gradual decoupling from Apple.
Lastly, most of the smartphone market's slowdown should occur in the low- to mid-range market. The premium market, which Qualcomm remains firmly in control of, could remain resilient as more consumers pivot toward longer-lasting devices that can be used for several years. Looking beyond Qualcomm's current slowdown, analysts still expect Qualcomm's revenue and adjusted EPS to increase 12% and 20%, respectively, in fiscal 2024. The company also plans to pour billions of dollars into fresh buybacks and dividends even as its near-term revenue growth stagnates.
Which argument makes more sense?
Qualcomm's stock might not recoup all of its 2022 losses this year, but I believe its stock will bottom out at its current levels as investors realize its near-term challenges are merely cyclical and not existential. As one of the world's largest mobile chipmakers, Qualcomm should continue to grow over the long term as more devices (and not just phones) are linked to the internet. In short, Qualcomm is still a great stock to buy for investors who can tune out the noise and ride out the volatility.
10 stocks we like better than Qualcomm
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 Qualcomm 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 December 1, 2022
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple and Qualcomm. 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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Furthermore, Qualcomm still faces stiff competition from MediaTek in the low- to mid-range smartphone market, and it expects to eventually lose Apple (NASDAQ: AAPL) as a top customer by fiscal 2025 as the iPhone maker replaces Qualcomm's baseband modems with its own in-house chips. The broader cyclical slowdown of the semiconductor sector, rising interest rates, and other macroeconomic headwinds made it even less appealing as investors rotated toward more balanced blue-chip stocks. Therefore, the bears believe the simultaneous slowdown of Qualcomm's main revenue and profit engines will make it an unappealing investment in a wobbly sector.
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Furthermore, Qualcomm still faces stiff competition from MediaTek in the low- to mid-range smartphone market, and it expects to eventually lose Apple (NASDAQ: AAPL) as a top customer by fiscal 2025 as the iPhone maker replaces Qualcomm's baseband modems with its own in-house chips. What the bears will tell you about Qualcomm Qualcomm generates most of its revenue from its chipmaking (QCT) division, which sells mobile SoCs (system on chips), baseband modems, radio frequency (RF) front-end chips, automotive chips, and Internet of Things (IoT) chips. Looking beyond Qualcomm's current slowdown, analysts still expect Qualcomm's revenue and adjusted EPS to increase 12% and 20%, respectively, in fiscal 2024.
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Furthermore, Qualcomm still faces stiff competition from MediaTek in the low- to mid-range smartphone market, and it expects to eventually lose Apple (NASDAQ: AAPL) as a top customer by fiscal 2025 as the iPhone maker replaces Qualcomm's baseband modems with its own in-house chips. What the bears will tell you about Qualcomm Qualcomm generates most of its revenue from its chipmaking (QCT) division, which sells mobile SoCs (system on chips), baseband modems, radio frequency (RF) front-end chips, automotive chips, and Internet of Things (IoT) chips. Looking beyond Qualcomm's current slowdown, analysts still expect Qualcomm's revenue and adjusted EPS to increase 12% and 20%, respectively, in fiscal 2024.
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Furthermore, Qualcomm still faces stiff competition from MediaTek in the low- to mid-range smartphone market, and it expects to eventually lose Apple (NASDAQ: AAPL) as a top customer by fiscal 2025 as the iPhone maker replaces Qualcomm's baseband modems with its own in-house chips. What the bears will tell you about Qualcomm Qualcomm generates most of its revenue from its chipmaking (QCT) division, which sells mobile SoCs (system on chips), baseband modems, radio frequency (RF) front-end chips, automotive chips, and Internet of Things (IoT) chips. In fiscal 2022 (which ended last September), the QCT segment generated two-thirds of its revenue from the smartphone market.
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17693.0
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2023-01-07 00:00:00 UTC
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A Fresh Face-Off on the Market Cap Game Show
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AAPL
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https://www.nasdaq.com/articles/a-fresh-face-off-on-the-market-cap-game-show
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nan
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nan
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Small cap, midcap, large cap, megacap...? How do these companies compare? It's not enough to know the share prices; you have to know the market caps! And that's why we play this game -- now with a new "throwdown rule." Play along with our guests, Motley Fool Chief Investment Officer Andy Cross and Motley Fool Senior Analyst Matt Argersinger.
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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When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Stock Advisor returns as of December 1, 2022
This video was recorded on Dec. 21, 2022.
David Gardner: The price per share of a stock tells you almost nothing. It's the price to buy one share of the stock. But how many shares does the company have outstanding? Well, in math, we multiply two multiplicands together, but the price per share is only one multiplicand. If you don't know the other one, well, you can't do any meaningful math or figure out much of the world around you. Fools with a capital F know that you need to know the shares outstanding and then multiply that by the price per share, and now you know the actual full value of the company, its full price tag, its market capitalization: market cap.
Well, to teach this lesson inexorably and unforgettably, we invented a game. That's what we do. The date was August 9, 2017. The Market Cap Game Show was born, and we've been playing it every quarter since and will be rejoined this particular episode by the man who was there at the start -- spoiler alert.
Oh, by the way, you're playing too. I designed it that way so you, dear listener, can play along against my guest stars, against your spouse or partner, against your kids. Well, it's that time of the quarter again: 10 new stocks, three guest stars, Andy Cross, Matt Argersinger, and you, only on this week's Rule Breaker Investing.
[music]
Welcome back to Rule Breaker Investing. I know: holidays, busy week, busy Wednesday. I hear you. Foolish best wishes to you, dear listener, on making the most of these holidays. Most of all, feeling, if you can get there, in the moment, not too nostalgic for the past or too frenetic and anxious in advance of the weekend, family coming too. Hey, or maybe you're headed out to be with family and friends somewhere in the moment to savor this week, this day, this moment, each moment as much as you can. That is my wish for you. I know, busy Wednesday.
This Wednesday also happens to be the penultimate Wednesday of the quarter, and therefore, it is the Market Cap Game Show. Now, Market Cap Game Shows may never score a Bestie most years, and yet they are four of my favorite shows to do every year, this week being no exception.
I'm delighted to be bringing back to the game show two outstanding fellow Fools who played before, but it's been a while. Andy Cross is the chief investment officer at The Motley Fool, working with dozens of fellow investors here to deliver investing guidance to our members. He has 26 years of Foolishness under his belt. Looking forward to one day, just maybe, Andy tells me, winning the Market Cap Game Show. Andy, welcome back.
Andy Cross: Thank you, David. Maybe one day.
David Gardner: Today could be your day.
Andy Cross: Could be.
David Gardner: Matt Argersinger has been an analyst at the Motley Fool for almost 15 years. He currently heads up investing on the Fool's Mogul, Real Estate Winners, and Epic Bundle services. Matt, welcome back to the Market Cap Game Show.
Matt Argersinger: David, it is great to be back, and I think this could be Andy's day, because I'm here.
[laughter]
David Gardner: Well, it's kind of you to say, Matt. Now, longtime listeners will instantly recognize that you are where you should be in the saddle here, back in the saddle again for the Market Cap Game Show. The first several of these that we did starting in 2017, Matt, it was just you and me. Do you remember?
Matt Argersinger: I can't believe it's been more than five years already.
David Gardner: Do you remember how the rules worked back then?
Matt Argersinger: I do. I remember you gave me a company, and I think I had to guess the market cap within a 20% range up or down of the market cap.
David Gardner: That's right. It was pretty much a straight-up question. Players at home could do the same thing, too, right along with you. Indeed, we did that for a year or so until Adam Nelson, longtime listener, said, "The game would be even better if you had two people competing and one of them named a range, and the other said 'inside' or 'outside,'" and the game has changed forever since then. Matt, welcome back to the new format.
Matt Argersinger: All right. I'm excited about that.
David Gardner: Not only is that and has that been our format, but, gentlemen, we are introducing a brand-new rule with this Market Cap Game Show. We like to innovate -- not too often. We don't want to go under the hood too often with his vehicle -- but once a year or so, can the game be improved? We talked about it ahead of time. Do you guys like the new rule?
Andy Cross: I do. I don't know if it's going to give me an edge or not over Matthew, but I do like the added excitement around this rule.
Matt Argersinger: I'm excited. I'm nervous but excited about it.
David Gardner: Good. This is going to innovate off of what happened at the end of last quarter's show. There was a tie, 5 to 5. My two noble contestants played, for the first time, the Stephens sudden death rule. I'm not going to fully explain how that came about now or why we call it the Stephens sudden death rule, but it was a wonderful way to break a tie.
And that format, I decided, isn't as fun as a tiebreaker, which is all that penalty kicks are really worth in soccer. I think most of the time, you actually want to be playing soccer, but for this game, that tiebreaker was actually a fun format to inject into the game itself. We're going to call this the throwdown rule. Let me explain it very briefly.
This hour, we're going to be playing with 10 stocks, and you, dear listener are playing right along with us at home. When you agree or disagree with my contestants you will get a plus 1 along with them when you're right. But when I turn to Matt and turn to Andy throughout this hour, once each over the course of this game -- use it or lose it, guys; you don't have to do that -- Instead of just stating your market cap range, you're actually going to announce a throwdown. With that one stock at that one moment, instead of you being on the spot to come up with the range yourself, both players are going to quietly, after I don't know what, 10 seconds of thought, are going to write down what you believe is the market cap range. You'll do that simultaneously for that stock.
Then, first of all, in order to get a point, you're going to need to be right. The market cap is going to need to be inside your range. But whoever has a tighter, narrower range, whoever is willing to commit to more of the bullseye instead of just the whole target, that player will get the point.
That's how we play sudden death. If you guys tie 5 to 5 this week, we'll do that once again, we'll do that as an 11th final tiebreaker, but within the show itself. At one point for each of you. You can announce throwdown, and that's how it works.
Now, players at home, I want to make sure you know how we're scoring that. Once we get to it, we'll talk about that at the moment. But gentlemen, I say without further ado, let's start your engines, let's do this.
Andy Cross: Rev rev.
[music]
David Gardner: All right. Let me just briefly remind especially new listeners, new players: I'll be mentioning a stock. Neither Andy nor Matt knows what stock is coming. They've been in soundproof chambers. Guys, you haven't been out of your houses for how long?
Matt Argersinger: Years.
Andy Cross: During COVID, certainly.
David Gardner: They have no idea what I'm about to ask them, nor do you at home, but I'll turn to one of my friends here, and that guy will state the market cap range. The other contestant and you playing at home will simply say, "I agree, inside that range, or I disagree, I think it's outside that stated range." If you get that part right, give yourself a plus 1.
That's the Market Cap Game Show. We're focused on the real market caps, real stocks. Nobody knows what's coming.
Andy, let's get started. Andy, which operating system do you favor?
Andy Cross: Apple.
David Gardner: For how long has that been the case?
Andy Cross: It's been the case for probably a decade.
David Gardner: Was there a trigger moment where you decided, you know what, all my [Microsoft (NASDAQ: MSFT)] Windows stuff...?
Andy Cross: I couldn't get over all of the spinning disks and all of the applications I needed to add to my Windows machine for security and Symantex this and that. I just got frustrated with it. I'd read about the simplicity of Apple, having appreciated Apple, having an iPod years ago and all that, but never having the laptop, the MacBook. Finally made the jump when the Fool could support it. Ever since, my whole family is now over to the Apple ecosystem.
David Gardner: I can relate. In fact, for me, Andy, I think my kids are just a little older than yours. It was 2008. It was my daughter saying, "Dad, I want an iPhone." I was like, an iPhone? But I'm all Windows. I've got my Palm Pilot. iPhone? All of a sudden, I got her an iPhone, and then I realized I need to understand the operating system, iOS, which connects to Mac OS, et cetera, so I can totally relate.
Andy, talk about operating systems. What's your favorite operating system for your bank? It's a completely absurd question unless you think about nCino, ticker symbol NCNO, which is basically a company that creates operating systems not for your Mac or your iPhone but for banks themselves.
The company's cloud-based banking software helps financial institutions gain efficiencies from digitizing and streamlining processes and commercial banking, small-business banking, and retail banking. That's pretty much right off their website. BOS, Andy Cross, the bank's operating system, nCino based in Wilmington, North Carolina, ticker symbol, NCNO, a company that came public not so long ago.
Andy, I know you're starting to think about it. Do you have previous association with bank operating systems or specifically nCino?
Andy Cross: No. Just when it did come public, I think there were some conversations among those over on various services. I had never really studied it, haven't looked at it, and I certainly couldn't tell you where the stock price is today. I'm thinking very hard about my range for the market cap.
David Gardner: That's it. You want to think very, very quickly, because I'm about to ask you, Andy Cross, what is your stated market cap range for nCino, ticker symbol NCNO?
Andy Cross: I believe the mark cap range, Matt, is somewhere between $8 billion and $17 billion.
David Gardner: Eight billion dollars to $17 billion. Matt Argersinger and players at home, inside Andy's range or outside Andy's range?
Matt Argersinger: It's a nice wide range. Andy was really furrowing his brow earlier, so I thought I can get them on this maybe outside, but he's given them a wide enough range. I'm going to say it's inside.
Andy Cross: I do furrow my brow almost all the time, I noticed on the Zoom calls.
Matt Argersinger: You're throwing me off, though. I think it's inside that range.
David Gardner: I bet the management team wishes, guys, his market cap was inside that range, but it's been a tough few years for nCino. The company did come public summer of 2020. It was somewhere around $75 a share. Today, it's much closer to $25 a share. So, Andy, there was a place in time not too long ago where I think nCino fit within that market cap range. But the market cap for nCino today is $2.89 billion, $2.9 billion.
Players at home, if you said outside the range, give yourself a plus 1. Matt, unfortunately, you said inside the range, so guess what? Andy gets the plus 1, even though he arguably overestimated the market cap by more than 2x.
Andy Cross: Not arguably, I did. There's no argument about that, so I lucked out on that.
Matt Argersinger: I should have thought recent IPO, though.
Andy Cross: Exactly. I did not as you were giving your logic.
David Gardner: Well, part of the fun of the Market Cap Game Show is that there's always another stock, there's an opportunity for turnabout, which is fair play last I read.
Let's move on to stock Number 2. Matt Argersinger. Matt, I know you have a son, and one of my favorite lesser-used male names as well, because what is his name?
Matt Argersinger: His name is Dutch.
David Gardner: You just showed me an awesome picture. Where were you and Dutch last weekend?
Matt Argersinger: We were at the Tampa Bay Buccaneers game when they were playing the Cincinnati Bengals. We took a quick trip down in Tampa, spent some days at the beach, but I wanted to take my son to an NFL game, his first.
David Gardner: Absolutely spectacular. I know Dutch is a young guy, five years old. Does he like toast?
Matt Argersinger: He loves toast, actually.
David Gardner: Really?
Matt Argersinger: He does. He's very particular about how much it's toasted, too. It has to be toasted a certain way.
David Gardner: Does he have any spreads in mind, things that he hopes would be his toast?
Matt Argersinger: He does. It's got to have at least some strawberry, raspberry jam. Some red jam has got to be on it.
David Gardner: Do you guys have a pet, or has Dutch yet asked for a pet?
Matt Argersinger: We have a pet. Her name is Daisy. She's about seven years old.
David Gardner: You might wonder, why are we talking about toast and pet food, but there's a company, there's probably more than one of them, but there's a long-standing public company that really works hard in both markets these days, J.M. Smucker Company, ticker symbol SJM, has been around since 1897. It was founded as a maker of apple butter. That's right. Ohio Farmer.
You might wonder, Smucker, J.M. Smucker. What's the J.M.? The answer is, Fools everywhere, Jerome Monroe Smucker. Smucker said he'd gotten his apples from apple planted in Ohio by Johnny Appleseed in the 19th century. That's how the J.M. Smucker Company began. These days, they own things like Knott's Berry Farm, Folgers, Dunkin, 9Lives, Kibbles 'N Bits, Meow Mix, lots of stuff for your toast, and lots of stuff for your pets.
Matt Argersinger, I've given you some opportunity now to reflect on that with some of the subbrands of the J.M. Smucker Company. Going strong now in its second century of business. What is your market cap range for the J.M. Smucker Company?
Matt Argersinger: I'm going to go fairly large here. I think I'm going to go $70 billion to $90 billion is my range.
David Gardner: Seventy billion dollars to $90 billion. Andy Cross, players at home, inside Matt's range or outside Matt's range?
Andy Cross: Well, if you listen to Motley Fool Money, you know Smucker is often a topic of conversation with Jason Moser and some others. I hope I can get this right. I'm going to say outside the range.
David Gardner: If you were having to guess which side of the outside, which way would you tell?
Andy Cross: I think Matt's a little bit high. I think he's on the high side.
Matt Argersinger: Oh, man.
David Gardner: Now, Matt spends a lot of his time these days in the world of real estate. Arguably, he's not spending a lot of time researching Smucker's even though toast matters and pet food matters, too. Matt, I may have biased you by talking about the long history of this company, the many brands, and the dogs. I wasn't trying to do that.
Matt Argersinger: The market cap was growing bigger in my head as you listed off each brand.
David Gardner: I wasn't trying to do that. So Matt, specified $70 billion to $90 billion. Market cap for J.M. Smucker is $16.46 billion, 16 and a half billion.
Matt Argersinger: That's so small.
David Gardner: Company that started with apple butter, that ain't bad, but it's an order of magnitude, just about smaller. Matt, that in your mind, Smucker.
Matt Argersinger: I thought there was no way was below 50.
Andy Cross: I was thinking lower than what you said, but even I was somewhere in the 20 range, so I was still on the high side.
David Gardner: I want to apologize to Matt, because I think I pumped these guys up.
Matt Argersinger: No.
David Gardner: I need to be a little bit more restrained.
Matt Argersinger: No, no, no. Don't.
David Gardner: Well, if you said outside that range, that's been the way to play this game so far, because both of my talented contestants have gone high and strong, not trying to further influence you for the game.
As we move on to stock No. 3, Andy 2, Matt 0. Matt, let's get in the game here.
Andy, can you think of any retail brands that have both the high end of their market in their stores and the low end?
Andy Cross: Well, I like Williams-Sonoma and their highest-end, low-end, but most of them specialize either in the very high or the very low. In the middle is very hard to do.
David Gardner: This company is a cosmetics company, and it definitely offers the high end in its stores, but it also has drugstore cosmetics, skincare, and fragrances. It is a long-standing pick thinking on my brother's side of Stock Advisor. It also has its own brands of beauty products and fragrances. I'm thinking of Ulta Beauty. Once Ulta Salons, now Ulta Beauty, ticker symbol ULTA.
Now, I've spent personally zero time in Ulta. I probably should've sent more. It's that time of year where you're looking for something for the woman in your life, that's not a bad place to saunter into. Maybe I'm still headed there sometime later this week. But for now, I'm still never stepped in an Ultra ssalon, but I've seen the growth of the company over time.
Andy, is this a company that you have any real association with?
Andy Cross: Well, this is one that I do know, more familiar with. Although I have not shopped a lot in Ulta, I did last year for Christmas, but I've not shopped a lot, but I do know the history and the story of Ulta and the success. Mary Dillon, who is no longer the CEO there, but came over and really helped to fuel the growth of the last few years.
David Gardner: Did it work well last Christmas?
Andy Cross: I think it did. It was a combination of for my oldest daughter, who was just starting out, and for my wife a little bit, but it wasn't a huge shop. I'm not one of their loyal shoppers that they'd love to have as part of their loyalty card membership program.
Matt Argersinger: Did you join the loyalty card membership program?
Andy Cross: I didn't jump onto it. I'm one of the very few, because I think it's 90% of their sales come from their loyalty membership business.
David Gardner: Somebody who knows this because, I'm not going to say inside and out, Andy, but Andy Cross, what is the market cap range you're going to specify for Ulta Beauty?
Andy Cross: I think the market cap range is in the teens, and so I'm going to say $13 billion to $19 billion is the market cap for Ulta Beauty.
David Gardner: Thirteen to $19 billion. The ticker symbol ULTA, appropriately enough.
Matt Argersinger, players at home, inside or outside Andy's range?
Matt Argersinger: I think Andy knows this company really well. I know he's made some winning recommendations of this stock. I have to go in. He knows the company inside the range.
David Gardner: I'm not going to say that Andy head-gamed you, because you can do that also. If you really know it that and person thinks you really know that it's not the right thing to do to give a proper answer, and Andy might be playing that game.
Andy Cross: I did a head game a little bit, or tried to, Matt, to talk about, but still, I thought I was in the range.
David Gardner: And you weren't far off the market cap of Ulta Beauty today is $22.61 billion, so it was outside the $13 billion to $19 billion range. Andy, I'm giving you another point. Earlier, you expressed a dream that one day you might win the Market Cap Game Show. That day could be this day.
Andy Cross: Well, it's still early in the game. I'm hopeful, but the --
Matt Argersinger: This is the penalty shootout, and I'm France.
Andy Cross: Exactly Well, you look like Mbappe.
Matt Argersinger: Coming up now, Mbappe is coming up right now.
David Gardner: Matt, have you ever been, hung out in an Ulta?
Matt Argersinger: I have never been inside an Ulta, and I have a son. My wife is not crazy about cosmetics, I don't know if it's happening anytime soon.
David Gardner: Well, I'm feeling a little bit bad for Matt and he's down three nothing. It's been years since you came back on the show. I feel like we haven't been very hospitable. How about if we play a word-association game, right now?
Matt Argersinger: Sure.
David Gardner: Right. Because anytime you're a little down your lock and you want somebody to play a word association game.
Matt Argersinger: Of course.
David Gardner: All right. Great. America.
Matt Argersinger: Apple pie.
David Gardner: Corporation.
Matt Argersinger: Profit.
David Gardner: Hospital.
Matt Argersinger: Healthcare.
David Gardner: You've just got the name of the next stock in reverse order: Hospital Corporation of America. Well, that's how it started back in the 1960s. Today, HCA Healthcare is much much bigger about 60 years later. In fact, the wealthiest man in Tennessee today is Tom Frist Junior. He was the son of Tom Frist Senior. They started it together. I feel bad for younger Tom's brother, Bill, because Bill, I guess wasn't there starting with his dad. His brother started his dad. But Bill is the senator, has been a senator from Tennessee, so he's done OK to the Frist. A very wealthy family in and around Nashville, and that's, of course, where HCA Healthcare is based.
America, apple pie, corporation, profits, I get it. Hospital, all you could bring with is healthcare, Matt? It's more word association. I can't judge.
Matt Argersinger: It's all I got.
David Gardner: Well, that's not all you got, because you got something else, Matt. You've got a market cap range in which HCA Healthcare's market cap falls. We hope, Matt Argersinger, ticker symbol is HCA for HCA Healthcare. This is a stock I picked for Stock Advisor. I liked this company a lot. What is your specified market cap range?
Matt Argersinger: I'm probably going big again, but I'm thinking this is a $60 billion to $80 billion market cap.
David Gardner: You going to stick with those round numbers, 60 and 80?
Matt Argersinger: Sixty to 80.
David Gardner: Sixty billion dollars to $80 billion, Andy, is Matt's specified market cap range. Players at home, Andy Cross, inside or outside that range?
Andy Cross: I think Matt's, again, a little high, I'm going to go lower. I think I'm going outside the range.
David Gardner: Matt, score 1, you're back.
Matt Argersinger: All right!
David Gardner: They can't say you got shut out, Matt, because that's not going to always ever happen on this show, but now, it was an excellent guess. In fact, the market cap for HCA is $67.66 billion.
Matt Argersinger: Great guess.
David Gardner: Billion dollars. In fact, while we're recording on Tuesday afternoon, the market caps, they always change. Let's go with $67.67 billion just to make it really memorable. Really nice guess, Matt, $60 billion to $80 billion. Andy Cross 3, Matt Argersinger 1.
Andy, thoughts, hospitals?
Andy Cross: Well, I respect the profession of doctors. My grandfather was a doctor, and I remember when I was looking at careers, as you are, I just remember my mother just said you don't want to be a doctor because you don't want to spend your whole life in hospitals.
Now, I have not spent my life in a hospital. I've been very fortunate from that, except for my kids being born, so I can understand how someone could think like that. However, all the TV shows about hospitals that are on, they make it look so exciting.
David Gardner: Well, I'm thinking to myself, and "Dr. Cross" sounds so cool.
Andy Cross: I could be a Dr. Cross, just not be a doctor hospitals that's my ultimate dream, maybe becoming a doctor.
David Gardner: But just the name, I think here is the brands.
Matt Argersinger: That's why I'm going for it.
David Gardner: That sounds...
Matt Argersinger: That, of course, the guy I can trust.
David Gardner: Yeah. What network do you think that show or streaming is going to be?
Matt Argersinger: It's going to be here. It's to be ABC prime time.
David Gardner: ABC prime time. Dr. Cross. That makes me feel good. Thank you, Matt, and thank you.
David Gardner: Yeah. My dad, who is a lawyer, sat us three little Gardeners down and said "The one thing I won't let any of you be is a lawyer." I don't know what it is with family occupations where you're coached not to do that, whatever Gramps or Dad did, but I think Dad always felt like he didn't create as much as he wanted to do within his job. He is a corporate lawyer. Corporate, Matt, word association: profits.
Matt Argersinger: I know.
David Gardner: He was helping the profits of his law firm, working with the Japanese banking in the '70s and '80s, which is a golden age for Japan coming in and investing in the U.S. As we remember, some people were worried that Japan was going to buy the whole U.S. at that point. But he just said, guys, don't be lawyers. We weren't.
Andy Cross: That's the beauty of our profession, is that even if our kids don't actually become professional investors, you can be an investor for life.
Matt Argersinger: You should be an investor for life.
Andy Cross: That's, I'm excited just to start to do more and more of that.
David Gardner: Really good point.
As you mentioned, by the way, that the stocks that I've been picking, I myself have randomized. Here's what I've actually done. This is the process by which I come up with 10, little known and quite boring. But I sign into fool.com and The Motley Fool services for our premium members. I look at our Screener, and we have hundreds and hundreds of stocks in the Screener that are ranked. I take the top 500, I just call them the Fool 500 in my mind. I randomize two numbers, 437, 78.
I look at those two companies and I decide, which would be more fun for the Market Cap Game Show. So the chances of any given stock, let's say Apple or Etsy, being on a show are probably lower than ever before, because I'm looking, I'm casting a much wider net.
Back in the day, Matt, when you and I first did the show, I would tend to favor all stocks that I picked or I knew because I just knew them, I loved them. But these days, have thrown it much more wide open, and so it's really hard to know what I'll be bringing to any episode of the Market Cap Game Show. We have some obscure ones, including at least one coming up. Anyway, there it is, the Fool 500, that's where these are coming from.
Gentlemen, as we move on to stock No. 5, I'll remind you, I'm not trying to prompt you, Andy, but you each still have your throwdown if you want to throw down.
Andy, how's your car running these days?
Andy Cross: Terribly, David, terrible. I was just thinking this at the drive in. It's more than 10 years old, and I need a brand reboot, and I need just a car reboot.
David Gardner: I'm so sorry to hear that.
Andy Cross: No, that's OK. Thank you for asking. I appreciate the concern. But it can get me from A to B, which is fine. I just worry about like, you know, M and N and Q. That's where I work.
David Gardner: Well, I'm sorry to hear that. Would you like to specify the brand that you sound increasingly disenchanted with?
Andy Cross: Oh, it's a Toyota Prius, and it's served me very well, coming from Maryland to the office when we are coming in. Gas mileage, excellent. I bought it really before the explosion of lot of the EVs.
David Gardner: Yeah.
Andy Cross: That has served me well and is a very reliable, safe car. It's just that after those cars, when they get that old, they start to not run nearly as well.
David Gardner: Yeah. Much is made of this, and I think should be. Matt, Andy, and listeners at home, roughly how many parts are there in an internal combustion engine? I won't quiz you guys because I've asked you enough numbers this hour, but the answer is about around 2,000, maybe more than that. Two thousand moving parts. Two thousand moving parts in an internal combustion engine.
By contrast, an electric vehicle: 18, 18 to 20, so really 20 versus 2,000. We can see why, as these vehicles age, they can be increasingly costly. I think that's another reason to love electric and why I think brands like Toyota, among every other major brand, have more and more EVs coming out these days. Thanks for sharing. You and I hadn't talked. It seems like you're ready to talk about your car.
Andy Cross: As soon as you mentioned "Andy" and "your car," I kicked up driving around the Beltway, what I was thinking just coming in today.
David Gardner: Well, Andy, one company that would probably not do as well if we increasingly go electric and lots and lots of parts seems not as necessary for the future of the automotive world would be LKQ Corporation. That's another past stock pick of mine for Motley Fool Stock Advisor. An American provider of alternative and specialty parts to repair and accessorize automobiles and trucks, et cetera. In fact, LKQ, just checking Wikipedia right now, stands for Like, Kind, and Quality. Not sure I knew that until today years old. The ticker symbol is LKQ.
Let me turn back to Andy. Andy, this is a company -- not trying to influence you too much unless it's toward the good. But I'll just mention: this company, 44,000 employees today. It's grown over the years through acquisitions, 200-plus acquisitions, 44,000 employees. LKQ, by the way, not based too far from HCA Healthcare, both in and around Nashville, Tennessee. Booming business in that area of the country these days.
Andy Cross, I hope your car gets better. Andy Cross, what is your specified market cap range for LKQ Corporation? Ticker symbol LKQ.
Andy Cross: Matt, I'm going with my throwdown on this one.
[sound effect]
David Gardner: Oh my gosh, that's the first time the throwdown sound effect has ever been played [laughs] on this show because that is our first ever throwdown. Andy is using his throwdown right now for LKQ Corporation. As I speak, Andy and Matt are thinking about what their specified ranges are and quietly and secretly writing them down.
This is how you score yourself at home, dear listener. What you're going to do is you, too, right now are going to think about what is your market cap range for LKQ. In order to give yourself a plus 1, you're going to have to get that right. LKQ is going to need to be inside your market cap range.
But in case you think that's all it takes to get a plus 1, I've outwitted you, because you can't just say 0 to $1 trillion and get a plus 1. You're going to need to have a range that is narrower than one of my contestants. You need to beat either Andy or Matt in order to give yourself a plus 1.
I'm not going to say pencils and pens down, Fools, because it looks like my talented contestants have already done that. This is an audio podcast, so listeners will never see this, but how confident, with the show of thumbs, right now, are you guys with the ranges that you've come up with? Matt's thumbs-down. Andy?
Andy Cross: I was thinking about when to use the throwdown through the show. This one I'm struggling with, and I figured a good time for the strategy was when I'm struggling and thinking maybe Matt may not know this one as well. I am...
David Gardner: You yourself are feeling not so confident.
Matt Argersinger: By contrast, I'm waiting for the one I feel supremely confident about. I see how that might work.
David Gardner: Different ways to throw down here. But one throwdown is what you each have.
Andy, you just used yours. Let's find out what you've written down. I'll just turn to you first, knowing that our listeners now have their specified range in mind and fixed. Turning to you then, Andy. Andy, what is your specified market cap range for LKQ Corporation?
Andy Cross: I am between $8 billion and $14 billion.
David Gardner: Eight billion dollars to $14 billion. Matthew Argersinger, LKQ.
Matt Argersinger: I'm almost there. I am $12 billion to $16 billion.
David Gardner: All right. Well, here's the market cap for LKQ Corporation: $4.26 billion. It is $250 million above where Andy had said. It's outside Andy's range, but it is in Matt's range. Matt, plus 1.
Matt, whether you win or not this time -- and it was a tough start, but you're making a comeback -- history will know that you are the first guy ever to score a point in the throwdown. Well done. You're now king of throwdown.
Andy, Great guess. Both of you guys, you were giving me a thumbs-down in terms of your confidence level, and you almost nailed it.
Andy Cross: First contestant and now first throwdown winner, it's like royalty.
Matt Argersinger: I was sitting right around 10, but I wanted to go a little higher than that.
Andy Cross: I was on the lower side even than that. Then I started raising it, just thinking about it. That was fun and I'm so disappointed. I was so close, but I still was outside the range and not even in the tightest range if I had gone even a little bit higher than where I was.
David Gardner: Well, you both did really well, and I have to admit, I'm always going to cheer on whoever's behind, so it's a close, tight finish. Good job, Matt. It's now Andy 3, Matt 2. We're going to move on to stock No. 6.
Before we do, of course, players at home, make sure that, first of all, you had to have LKQ Corporation's market cap within your range, and you're going to have to have had a narrower range than Matt's, $12 billion to $16 billion. I'm I making it a little bit harder for our listeners at home? You bet here, because they're worth in.
All right, let's move on to stock No. 6. Matt, we had such fun playing word association earlier. Should we do it again?
Matt Argersinger: Of course.
David Gardner: All right. Matt, the first word or phrase that comes to mind when I say security.
Matt Argersinger: Stock.
David Gardner: How about cloud?
Matt Argersinger: Software.
David Gardner: SaaS.
Matt Argersinger: Service.
David Gardner: You didn't want to say "down"? Because it feels like all of the SaaS cloud security companies are down, and some very substantially. In fact, many stocks are down, and that's something that we've all had to endure over the year 2022. It has been a very tough year for many companies. This one included.
So security, cloud, SaaS. There're probably multiple directions we could have gone with this one, Matt. But I'm focused here on one of the higher-rated stocks in the Fool 500 today. Yet it is substantially down. I'm going to say two-thirds from where it was a year ago. Zscaler, ticker symbol ZS. Zscaler.
This is a stock I've not picked before, but I certainly had some of my own cloud picks, and I think those stocks are down as well. This company, still not profitable, which is probably part of the vulnerability in markets like these for a company like this, but a company that, I don't know if you just bought and held from the IPO, you're still pretty happy today, but you're not very happy if you bought a year ago today.
Well enough biasing the judge, the caller here. Matt, I don't want to help you out any more than I already have. So, Matt Argersinger, have you spent any time looking or ever thinking about Zscaler?
Matt Argersinger: I never looked at Zscaler. This is going to be...
David Gardner: How are you spending your time these days, Matt? What are you looking at?
Matt Argersinger: Real estate and some dodgy dividend stocks tend to be my bag today. I haven't taken a look at Zscaler.
David Gardner: When you say "dodgy," I'm assuming you're being tongue in cheek.
Matt Argersinger: I meant "stodgy." I have a cold, so it might come out as "dodgy."
David Gardner: I was going to chime in and say I think he said "stodgy," just not "dodgy."
Matt Argersinger: I might have missed the S.
David Gardner: I think most of us would prefer stodgy dividend payers to dodgy dividend payers. I know you spend no time with the dodgy, Matt Argersinger. I love it. Like many of us, you are coming at this with beginner's mind. Zscaler, ticker symbol ZS.
Matt Argersinger, what market cap range do you want to specify here?
Matt Argersinger: I'm going to say $5 billion to $10 billion.
David Gardner: Five billion dollars to $10 billion. Andy, is this a company you've spent some time with?
Andy Cross: Again, unfortunately for the game, this is one that I do own and I have looked at before. I feel like I should have little bit of a leg up, but it doesn't help my record.
David Gardner: Now, I made it a little painful with the throwdown rule for our listeners at home. I feel like I made it a little harder, but you might have made it a little bit easier for them when you say stuff like "I think I know what I'm doing on this one." Let's listen in, because we're all listening to Andy and keying into what his impression of Matt's market cap range was. So again, Zscaler.
Matt, you said $5 billion to $10 billion. Andy, players at home, inside that range or outside that range?
Andy Cross: I'm going outside that range, David.
David Gardner: Sure enough, research should pay. I feel like you've looked at this. You own it. Matt hasn't really liked that. He doesn't own it. I feel like you should have gotten the plus 1 here.
Andy Cross: Well, it didn't help me with Ulta.
David Gardner: It's true, the wily ways of this game sometimes can surprise, which is part of its charm.
Andy, any thoughts about Zscaler these days?
Andy Cross: Well, it's in the cybersecurity business, which obviously has so much momentum behind it. David, you mentioned the challenge with so many high-tech, especially companies like Zscaler, CrowdStrike, those great cyber companies, founder led. Jay Chaudhry at Zscaler's a fabulous thought leader in cybersecurity. But it is under a lot of duress from investors because of the market, the multiple of the stock, and just the volatility around investing in technology these days.
David Gardner: The company has about $1 billion in sales. With its $16 billion market cap, it's still 16 times sales or so. We're talking about a company that is still fairly richly priced, and yet it's a very light business to run. If you can tilt this thing, not just cash flow positive but profitable over time, it could more than earn out its market cap from here.
Andy Cross: Yeah, I think so. We still like it. Generally, when we are thinking about, again, the market opportunity. It's one of those just very volatile technology stocks that has really been punished in the markets these days.
David Gardner: Yeah. This company came public in 2018, not so long ago, friends, around $35 a share. It traded up 10 times to just over $350 by this time last year. A 10-bagger run for three years. And from $350 or so, it's now around, well, about $112 as we talk. It's down two-thirds in value. Not the only stock in the market that's done that. Not the only stock we'll be talking about this Market Cap Game Show.
Anyway, that was stock No. 6. Guys have got it. Andy 4, Matt 2.
Andy Cross: I think that's right.
David Gardner: All right. So we got that number right. Let's move on to stock No. 7. Andy, how did you meet your wife?
Andy Cross: Here at The Motley Fool, David. Jamie worked here with you and Tom on different marketing and press and communications parts of the business, and so we didn't start really dating here at The Motley Fool really until she mostly left, maybe at the end of her tail career here and then.
David Gardner: I still miss her. She was just a wonderful... somebody who really understands public relations and is just fun to have around the office. I assume is fun to have around the house.
Andy Cross: Very. Yeah. When she's not working -- she works now a lot. Obviously very stressed, but she has wonderful fun memories of The Motley Fool and still speaks highly of it.
David Gardner: Well, wonderful. I guess it's fair then say you did not meet online?
Andy Cross: We did not.
David Gardner: But ironically, you met working for an online company.
Andy Cross: Very true.
David Gardner: A lot of people meet online these days, and I think you guys maybe know where we're headed with this next company. When we think about leaders in the space of online matches, how can you not think of Match Group, ticker symbol MTCH? This is a stock I own as well, which means I'm in a little bit of pain this time of year versus a year ago.
But for the long term, this is a company that has really benefited by being at the forefront of the "hey, I met my spouse or partner online" revolution. Which these days -- we've often talked about this in the past on this show -- is the third-most-common way that people meet their spouse or partner online.
No. 1 continues to be through family or friends. "Hey, have you met my roommate?" No. 2 is arranged marriages worldwide. That continues to happen in countries like India at real scale and volume. Happens to the United States of America, too. It's still very much more common than we might think sometimes here in the Western world. But No. 3, from a standing start at zero, probably about 40 years ago. Now No. 3 most common way. And work probably fits into one of those.
Andy Cross, I think you know where I'm headed here. I'm about to ask you what you think the market cap range is for Match Group, ticker symbol MTCH. Now, listeners at home can't see you do this, but it looks like you're, I would say almost grimacing, or you're thinking hard, or you're thinking you should have looked this one up already. Or what are you thinking, Andy?
Andy Cross: Not thinking I should have looked it up.
David Gardner: We're you reminiscing?
Andy Cross: I was pondering. This is my "if I ever had a doctorate," as Matt said, I'm just like constantly the thinker.
Matt Argersinger: Thinking Dr. Cross.
David Gardner: It can be misconstrued sometimes, because I see...
Andy Cross: I've never really spent a lot of time with Match, as successful as they have been in the past.
David Gardner: Have you visited the site at all in recent years?
Andy Cross: Never.
David Gardner: I wonder why.
Andy Cross: Yes, exactly, and just with the explosion, so I'm just thinking about the balance between the growth of that market, but then also just software companies in general contracting and trying to figure out where that fits in my market cap. David and Matthew, I'm going with $22 billion to $28 billion in market cap.
David Gardner: Twenty-two dollars to $28 billion. Ticker symbol MTCH, $22 billion to $28 billion, players at home.
Matt Argersinger, inside or outside that range?
Matt Argersinger: Amazing. I was thinking to myself if I was going to guess $20 billion to $30 billion, so I'm going to say inside Andy's range.
David Gardner: It's actually surprisingly lower than that. Maybe again here, friends, since the stock has gone from $160 late last year to $40 today. It been gut wrenching: a 75% drop. And again, I feel like we keep talking about this across so many different companies. It's not true of the market overall. J.M. Smucker, friends, is not down 75% over the last year, so the world recently has been to the Smuckers and has been against a lot of the Rule Breakers and other kinds of companies we often favor it at The Motley Fool, and I've talked about it a lot this year. I'm down about half from where it was last year, is still in it's companies like these that make up a lot of our portfolios.
The good news here, Fools, is it's not about one year. It's especially not about what's in your rearview mirror here. It's all about where the world is headed. I continue to favor many of the companies that we're talking about this week, and I own Match Group, so I sure hope it's going to make a comeback from its market cap of $11.28 billion.
Well, outside Andy's range, lower.
Andy Cross: I didn't think it'd be that small. I guess because of the stock pullback, really, but just because they are so large in that space.
Matt Argersinger: Like the brand awareness. But I just don't think they'd felt when David and you said it dropped at $40. I'm shocked at that. I just haven't looked at the stock for a long time, but I didn't think it was that low.
Andy Cross: Little more stealing that just the stability and the people.
David Gardner: I guess during COVID, that maybe that wasn't...
Matt Argersinger: What else they have is thinking during COVID, this is probably one of those games against massive popularity.
David Gardner: Well it did, in fact, friends. It went $100 to $180 over the course of the COVID year, and it topped $80 in, around October last year, and now it's at $40, so it's the last three-quarters of its value.
But here's the thing. We've often said this. This, one of the beauties of the Market Cap Game Show from the earliest days, Matt, you and I talked about this Etsy. When you think a stock has a much bigger market cap than it actually has, that maybe you should mean it's headed to your watch list. Because if in your mind -- and I could have easily bought in here, I get to be the game show host. I don't have to make any calls. I love that role for me. But if you're thinking $25 billion in stocks closer to $10 it wasn't at $25 too long ago.
Might be a good buy, at least something to put on the watch list. So again, what's already happened is no longer interesting to most of us and, in some cases recently, it's sad over any meaningful period of time. You are pretty happy as an investor in the stock market and these kinds companies. But what's going to happen next?
Well, a lot of these companies, really good ones, are about half what we thought they would be or should be, and so let's watch what happens in 2023.
Well, we're still stuck here. The near-final week of 2022 where, Andy, you have a 5-to-2 lead. So, Matt, if you want to stop Andy from his dream of winning, you're going to need to get the next three. No pressure.
Andy Cross: No pressure. I can handle that.
David Gardner: Well, let me turn to you then and let's have a short conversation about the S&P 500 -- down, Matt, 15% or so over the past year. Obviously, we've been talking about stocks that are down closer to 60%. This is going to be another one of those.
But I'm wondering, a lot of people are obviously feeling this with stocks in their portfolios right now down 60%. What do you do in those situations, Matt, if you have a stock, God forbid, would you ever have that? I do. But anyway, Matt Argersinger, if you've ever had such a stock, what is your mindset? What's your approach?
Matt Argersinger: It's boring, but my approach doesn't really change, and in a lot of ways, I'm sometimes excited, because if it's a business I love and I've bought and held for a long time, I'm usually interested in buying more of it. But I certainly do have many stocks that are down 50%, 60%.
Because I was thinking about my portfolio, David, and my portfolio, because of the growth over the last decade and because of me working on Stock Advisor, Rule Breakers, and Supernova, as you remember, my portfolio, even though I've been buying a lot of those stodgy -- or dodgy -- dividend stocks, most of my portfolio is still a lot of those Rule Breakers stock yards, companies that you love, I know, and then that are down a lot this year. But there have been such big winners, of course, over the past decade. I'm, in a lot of cases, I'm pretty excited about some of the values, I'm saying.
David Gardner: Well, this particular company is another one of those. This is nearly a household name for many, but it's a stock well down from its recent highs. Of the 10 stocks featured on this edition of the Market Cap Game Show, this is the only one that was there last Market Cap Game Show. So I don't know if you guys were listening at the end of September, but if you were and you thought hard at that moment about Block -- which is what Square renamed itself to with the ticker symbol SQ. I'm seeing Andy smiling, and he's probably recently looked at this. Maybe he was listening three months ago.
Andy Cross: I, unfortunately along the line, and I have not looked at Block recently.
David Gardner: It's hard to say Block. It's still hard for me to say Meta for Facebook. I think I've gotten over the whole Google thing. I think I'd say Alphabet more often than not now. But guys, Block. Can you imagine like the branding forever decision, the decision like we have you down to the final three choices? You've got the management team there. We've done our branding research. We think we have your new corporate name. Block. What do you all think?
Matt Argersinger: Right.
Andy Cross: You hear those stories of companies going through rebrandings, and I do wish to be a fly on the wall of the board conversations for some of those that have gone through, just...
David Gardner: If you're Jack Dorsey, you're probably sitting in that room. You're thinking, well, first of all, I named this Square, so I guess I get that square blocks. But ultimately, he may have loved it. I don't know, clearly. They voted for it and it's today, what was once known as Square. And by the way, the service, serving small and medium-sized businesses, where you can pay directly, is still called Square, and the app is still called Square. But gentlemen, as you know, along with the Metas and Alphabets, Block has recently gone through this transition.
Matt Argersinger: Well, I think I'm going to use this opportunity Andy, to do a throwdown.
[sound effect]
Oh my, I got a good feeling about this one, so let's do it.
David Gardner: I was wondering, now, Matt didn't have to do that. The throwdown is an option that my players, my talented contestants, can use or not, and so I see them diligently scribbling. And you, dear listener at home, you are also right now coming up with your specified market cap range for Block, ticker symbol SQ, very analogous to Alphabet, ticker symbol GOOG still. So yeah, the companies, it's funny they change their names but they don't change their tickers. I wonder why. What does that mean?
Andy Cross: Well, Meta did.
David Gardner: Meta did. You're right, that's right. Now would be Facebook became Meta. Thank you, Andy. That itself is, I'm having fun with this, but when you think about it, is actually a big money decision to change your corporate name but also to change your ticker symbol or not. I don't know what the thought process is, but people are going through it, and it matters, whatever they're doing.
Gentlemen, pencils downish. Andy still scribbling. Matt, you're the one who threw down. Let me turn to you first. What range have you scribbled down for Block, ticker symbol SQ?
Matt Argersinger: Going with $40 billion to $48 billion.
David Gardner: Forty billion dollars to $48 billion. Andy Cross, what is your market cap range for Block?
Andy Cross: That is brilliant, Matt. I'm outside your market range but around it. I'm $35 billion to $50 billion. I'm a little wider here, which could hurt me.
David Gardner: Well, Fools everywhere, the market cap for block is $38.1 billion. And what that means is that Matt, your tight range of $40 billion to $48 billion, just a little high, which invalidates you scoring a point here.
Listeners at home, you're going to need to have had $38.1 billion inside your range, and then you're going to need to beat Andy's range. He had it as $35 billion to $50 billion, a $15 billion range.
Andy, you gave yourself some latitude. You kept it a little bit lower. Because this stock is down, friends, more than 60% from where it was a year ago. And so Andy Cross, you nailed it.
Andy Cross: I was on the higher side, and my first right up here was $50 billion to $70 billion, and then I was what, I think it's lower than that because I was thinking about PayPal and comparing a little bit. And just, I don't mind, I'm not quite sure exactly where PayPal is, but then I said, I think it's more in the $30 billion to $50 billion range.
Matt Argersinger: I had $45 billion to $55 billion as my initial guess. Crossed that out. I came down a little bit too, but not down enough. I'm like the guy on Price Is Right who never gets on the stage because he goes over every time.
David Gardner: I love that guy.
Andy Cross: You just cheer for that guy.
David Gardner: Well, one thing I want to say about this show. It's less popular than The Price Is Right. But I think we're a little more cerebral. I think so. Are you with me?
Matt Argersinger: Totally.
Andy Cross: Dr. Cross is only coming on this game show. [laughs] She's not going on...
Matt Argersinger: Price Is Right.
Andy Cross: Let's get the Price Is Right. But --
David Gardner: Although headed to ABC prime time, I understand again, next fall.
Matt Argersinger: 8:00 p.m. Thursdays.
David Gardner: 8:00 p.m. Thursdays.
Matt Argersinger: Awesome.
Andy Cross: Negotiations.
David Gardner: Well, you can now afford to hire an agent, Andy, because you're going to win this no matter what, you're up 6-2. We've got two stocks left. But you know what, Matt, resilience. Never, ever, ever quit.
Matt Argersinger: Call it resilience or just going to try to get respectability.
David Gardner: Respectability. People tend to just remember the last thing that happens, Matt. We could argue, might be what it's all about, so you can go soft on this one as you wish as we go to stock No. 9.
Andy, have you been playing around with ChatGPT or DALL·E or any of the chatbots of 2022?
Andy Cross: Very interesting. I've asked our Quant team about it, and because I've been reading more and more about it recently, and they have played around with it, our investing Quant team. I personally have not. It is fascinating technology to watch.
David Gardner: Well, I'm glad you're having the Quant team look in, Andy. On last week's show, our Besties of 2022, Dan Pink talked about the significance of ChatGPT, and he said, it was what I recall Dan saying as he said, there was a time in 1989 where I leaned across the transom and my buddy hit his keyboard. I'm like what did you just do and he said, I just sent an email, and Dan said really, how's that work? It's like, well, my friend in Oregon just instantly received my mail that I wrote. And Dan, thinking backward from where we are today, we all chuckled at that.
But moving forward from 1989, it wasn't obvious necessarily that's where the world was headed, but boy, did we had there. And Dan was likening the dawn of the chatbots this year to a similarly impactful revolution forward with AI, the early innings here.
People have talked about AI and machine learning forever, and we have a team and we have some people who are working on that here at the Fool, and many other companies, too, no doubt, including the company we're about to talk about. But it's still so early, and a lot of the things I saw were silly or questionable until I started seeing what ChatGPT can manage, and we talked a little bit about that last week. Sounds like you've had an experience or two. My son, Gabe, typed in a rap battles between me and Shakespeare. I'll be sharing that on next week's show.
Matt Argersinger: Really.
David Gardner: It took five seconds for ChatGPT to come up with it. It is hilariously great. I'm pretty much blown away by what's happening here, so I think we're mark this point in time, December 2022. It all started before this, but the last few months, the dawn of ChatGPT, guys, I think it's really worth paying attention.
Matt Argersinger: Fascinating.
Andy Cross: I should have put in "how to win at using the throwdown in the Market Cap Game" to ChatGPT in when it came out, and I didn't.
David Gardner: I tried stuff like that, and one thing I've picked up from ChatGPT -- and by the way, that's just one of many different chatbots. That's the one I'm talking about right now, but it'll say stuff like I've only fed stuff in through 2021.
Andy, unfortunately, the throwdown rule is brand new in December 2022 year's podcasts, so it's not going to have anything for you for me.
Andy Cross: Not yet
David Gardner: Not yet.
Matt Argersinger: But Dr. Cross in the future will have it.
David Gardner: Well, it is a big revolution out there, and there are some early emergent players, and this is a company that I barely know. But our company knows it and our members do, because it's right there on our Motley Fool premium services Screener. The ticker symbol is STEM, and the company's name is actually the same: Stem.
Stem Incorporated is a global leader in AI-driven clean energy solutions and services. This is a company -- I was about to say its market cap, but I shouldn't do that. This is an earlier-stage company that might start helping Andy, who apparently needs no help this week at all, as he starts to think about the market cap range for Stem, ticker symbol STEM, the global leader in AI-driven clean energy solutions and services.
Andy Cross: I think I will say $3 billion to $4.5 billion in market cap.
David Gardner: Three billion to $4.5 billion for Stem.
Matt Argersinger: Not heard of this one. And I've been saying "inside" all day for Andy's ranges, which have been great. But I think I would go outside for this one.
David Gardner: It is indeed. Early days still for AI. This is a young public company. Its market cap is $1.57 --
Matt Argersinger: Small.
David Gardner: -- billion, and we talked about this earlier. Now, I'm not plugging this company, I haven't researched it myself. It could be the next Rule Breaker. I'm not sure. But if you think it's like a $5 billion company and it's only $1.5 billion, it might be worth putting on a watch list.
Andy, I think Matt and I had not any facility with this company. I know you're our chief investment officer, and now some people might think, he must know everything about every stock, every company. But at the same time, you are familiar with a lot of different services that we offer. Is this a company that you've come across before?
Andy Cross: Well, this one has been pitched to us in some of the conversations we have as analysts, and I think I was anchoring to, over the past year or so when I had not researched it or studied it. So I think I anchored to where it was maybe when we were talking about and didn't adjust for the stock price. So not to make an excuse for my poor decision or poor choice. And congratulations, Matt, on getting that outside of the range.
David Gardner: It wasn't that far.
Andy Cross: Chin up over there.
Matt Argersinger: Did single-digit market billions, which was right where...
Andy Cross: Well, that is true. But anyway, so it's one that I had heard of but have never really looked at it.
David Gardner: Well, this company came public two years ago. I'm just looking at it now. Quiet IPO. I'm not sure anybody noticed it. It was at $10. Somebody then noticed it as the volume picked up hugely. In its second month or so of trading, it went from $10, it touched $50 very briefly at the start of 2021. Today, it's at $10.
Which is a reminder that so often -- in fact, the majority of the time, guys, we've talked about this over the years as fellow Fools. The majority of IPOs are at or below that price they debuted at a year or so later. And this is a company where two years later, it's sitting right at the price where it sleepily IPO'ed.
Certainly an interesting business.When I hear AI and clean energy, I find myself sitting up in my seat going, "I wonder what they're doing over there." I'm guessing there's not much profit yet. That's damn. This is still an early, emerging business -- again, just a one-and-a-half-billion-dollar market cap. But it was good enough for a point for Matt Argersinger, so let's give him 3 and call it 6-3.
Remember, people only really remember what happens right at the end of things, at the beginning and the end. The beginning, Andy scored a point, so some people will always remember that. Some people will always remember that Matt scored the first-ever point of throwdown. But I think a lot of us -- and it's recency bias, it's a problem -- a lot of us are only going to remember stock No. 10.
Matt, how many public companies can you think of that were founded in 1865?
Matt Argersinger: Oh, gosh. I can probably think of three just off the top my head.
David Gardner: Do you want to just throw out one name?
Matt Argersinger: I don't know if they're accurate. Union Pacific.
David Gardner: Union Pacific, that's sounds plausible. I'm not going to go to my best friend, Wikipedia, and ask it right now whether you're right or not because that sounds generally, but that's not the company. This really isn't a quiz, because I would never want any of this is really such an arbitrary question. But if I were to specify an additional clue, that it was founded by an immigrant, no less, a guy who came over from England and decided, "you know, I'm going to plant my feet and my family in American soil and I'm going to start something" that, by the way, in 2022 is still going 160 years later.
Do you think that William Carter, who was born in 1830, do you think he ever could have dreamed that we'd be talking about his company, which recently in 2005, bought OshKosh B'gosh, OshKosh B'gosh clothes? That the Carter's company. Carter's Inc. Kids, Dutch. Kids' clothes. Right, Dutch, maybe a little Matt, little Andy, a little Dave.
For decades, this company has been in business. William Carter, a British immigrant. In fact, he arrived in America on January 28, 1857. Wikipedia, that's where I am right now, is not actually mentioning how this company started or what it did, but let's just assume it was always kids' clothes. Sounds great. It's that time of year where you might want to give a favorite child, grandchild, something under the tree, might want to shop at Carter's, maybe help them out. They need a little bit of help these days. Again, it's been a tough, tough market year, so you can see what we're talking about, gentlemen.
And I'm about to turn to Matt and ask him what his market cap is for Carter's.
Before I do, I want to mention the Carter family itself sold out in the 1990s. Guys, that means they held on to the stock for more than a century, probably fifth, sixth generation of family and finally says, we're done here. But yeah, they bought out if this helps at all, OshKosh B'gosh, for $312 million in 2005. Carter's is a publicly traded company. That ticker symbol, Matt, is CRI.
Matt, what is your specified market range for stock No. 10? Probably the only one people will really remember from this episode. Carter's.
Matt Argersinger: I'm going to go $6 billion to $10 billion for Carter's.
David Gardner: Six billion dollars to $10 billion for Carter's.
Andy, before you give your answer, I don't want to draw it out a little bit, a little bit of drama at the end. What's going through your mind right now as you think about kids' clothing, British immigrants, the end of this episode this week? The holiday season. Are you prepared? What's going through your mind right now?
Andy Cross: Well, I was originally thinking in the high single digits, and then I got distracted by the fact that this will be my first victory on the show before, so I feel good about that. I think I was 0-2, maybe even 0-3 before, so I'm feeling pretty good about that.
David Gardner: Big moment.
Andy Cross: I am thinking a little bit about the holidays. You got me thinking about shopping and my own thing, so I have a lot of stuff going through my mind.
David Gardner: There is a lot, and I want to thank both of you guys ahead of time near the end of this week's show for being here. Because not only did you share with us some of your time, which is precious this time of year, but Matt, you drove about an hour to come into the office today, a commute that we don't ask you -- Actually, we don't ask any of our employees do commutes anymore, but when you take the time and make the time to come in face-to-face, it's appreciated.
It was a lot of fun to do this show physically face-to-face with you. This is the first Market Cap Game Show we've done live in this format for a few years now, so thank you both for being willing to play and, of course, for everybody at home giving us their attention this week.
Andy, Matt said $6 billion to $10 billion. Inside or outside that range?
Andy Cross: You threw me with a wider range than I thought he was going to go with, so I am going to say just inside that range.
David Gardner: [laughs] I guess that's the way this should have ended. That way, everybody can smile, and he gets his first win, but Matt is remembered forever as a guy that's thought No. 10.
Matt Argersinger: That's right.
David Gardner: Not just 9 and 10. You were on a roll of the end of..
Matt Argersinger: If this went to 15, I think...
Andy Cross: It's like if there was a boxing match, you'd be all set in many ways.
David Gardner: Andy did say inside Matt's range. The market cap for Carter's is $2.68 billion, so this is a company... If you think about it, it's almost a little sad. I don't want to be dark here at the end of the year, but imagine a company being around for 157 years, and it's compounded now, finally, to be worth $2.68 billion. I'm not going to do the math on that, but I don't know. Doubling every seven years or so along with the S&P 500, Andy, over the course of that? Should this company be bigger?
Andy Cross: Well, I was just thinking your acquisition of OshKosh B'gosh, the acquisition. I mentioned the price there that was a little bit of anchoring for me trying to think about where they would have paid for that, how large of a business would have had to make that acquisition. But I guess in hindsight, because it has been just a tough market in general, and online commerce, all the shifting consumer habits.
David Gardner: They just don't have stores, but they do do a lot of online businesses, and this might be a good time to take a hard look at Carter's. This is a stock I brought to Stock Advisor. At the time, I liked it, and it was a winner. But I have to say, since it was at $55 10 years ago, it's $70 today, and recently, it's traded over $100. I feel like that it wasn't a great stock pick by me.
Matt Argersinger: Well, but OshKosh B'gosh, at only $312 million.
David Gardner: $312 million in 2005.
Matt Argersinger: Just five. It's still seems small to me. I feel like that brand is bigger than the 312 point.
David Gardner: That might be the theme and the takeaway from this quarter's Market Cap Game Show.
Take a hard look at some of these companies, fellow Fools, because I feel like these prices are pretty good for some of these businesses. To review: I don't do this very often, but nCino, J.M. Smucker, Ulta Beauty, HCA Healthcare, LKQ Corporation. Those were the first five. Zscaler, Match Group, Block, Stem, and Carter's.
Friends, this was a Motley mix from the Fool 500. Lots of different types of companies, which is what makes the Market Cap Game Show.
Guys, you made the Market Cap Game Show with the fun and energy you brought. Andy Cross, Matt Argersinger, thank you both so much for being with me again on the Market Cap Game Show.
Andy Cross: Thanks, David. That was a load of fun, Matt.
Matt Argersinger: It was a big blast.
Andy Cross: Well done.
Matt Argersinger: Awesome.
[music]
David Gardner: We had our Besties last week, which I've often likened to the Oscars. That's the Oscars of this podcast, and Andy, as I gave the 10 Besties to the 10 best podcasts of the year for this podcast, we didn't have any victory speeches. We didn't have anybody receive the award or say something. But Andy Cross, I feel like you started this show by expressing a dream. A dream that you might one day win this show. Now, having achieved this, is there something you want to say to the world?
Andy Cross: Well, I just want to thank David for having me on the show.
David Gardner: Wait, you're going to be sincere? I thought you were joking.
Andy Cross: I'm really sincere, I'm going to be very...
David Gardner: I thought you were joking.
Andy Cross: Of course I'm joking. This is the last show of the year.
David Gardner: Just about, but Andy, I feel like I interrupted you. You were saying something very emotional.
Andy Cross: No, it was all tongue in cheek. But it's a great reminder about just enterprise, I think. Just the lessons of investing and thinking about businesses, the transactions, some you may never have heard of, some unit, and hopefully, people at home or wherever you're listening to are having a lot of fun with this as well too. And it's just fun to give a lot of perspective to businesses, like wow, that's that size? My gosh, that's that size? And that does just add a lots of the fun of investing.
David Gardner: But it does. Some of my favorite, just some of the corporate history. This is something I've said before on this podcast. I feel like corporate history is undertaught in our country. We tend to teach history of war. What are the five causes of World War I? Or we memorize presidents. What about all of the companies that employ all of the people, some of which are hundreds of years old? And I don't still know of any university-endowed chairs that teachers specialize in the stories, the history of private and public companies. But I find each one fascinating. So it was fun to hear about Johnny Appleseed leading to Smucker's today or thinking about 160 years or so of compounding only the $2.6 billion from a British immigrant who had a dream, but all fun stuff.
Matt, in closing, I'm sure you want to express some consolation to those who lose. We all lose all the time. So you lost this time, and a lot of us probably need a little bit of... speak to...
Matt Argersinger: I'm the guy who gives up the no-hitter or something like that or just, I'm happy to say that I was the guy who lost and got Andy's first win.
Andy Cross: Well, let's not forget about the first throwdown champion, too.
Matt Argersinger: You got to respect that.
Andy Cross: They will take it.
David Gardner: Well, thank you again to Andy and to Matt and to you for suffering Fools gladly over this Market Cap Game Show to help close out the year of 2022. We'll be doing your mailbag next week, so that's what's on tap. That'll be actually closing out the year, as it has every year, now in our eighth year for Rule Breaker Investing.
Thanks for joining Andy, Matt, and me. I wish you the best, family and friends, in the week ahead. In the moment, Fool on.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Andy Cross has positions in Alphabet, Block, CrowdStrike, Etsy, Meta Platforms, PayPal, Williams-Sonoma, and Zscaler. David Gardner has positions in Alphabet and Apple. Matthew Argersinger has positions in Alphabet, Block, Etsy, Match Group, and PayPal. The Motley Fool has positions in and recommends Alphabet, Apple, Block, CrowdStrike, Etsy, J. M. Smucker, Match Group, Meta Platforms, PayPal, Stem, Ulta Beauty, Union Pacific, Williams-Sonoma, Zscaler, and nCino. The Motley Fool recommends Carter's, HCA Healthcare, and LKQ 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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BOS, Andy Cross, the bank's operating system, nCino based in Wilmington, North Carolina, ticker symbol, NCNO, a company that came public not so long ago. Jamie worked here with you and Tom on different marketing and press and communications parts of the business, and so we didn't start really dating here at The Motley Fool really until she mostly left, maybe at the end of her tail career here and then. The Motley Fool has positions in and recommends Alphabet, Apple, Block, CrowdStrike, Etsy, J. M. Smucker, Match Group, Meta Platforms, PayPal, Stem, Ulta Beauty, Union Pacific, Williams-Sonoma, Zscaler, and nCino.
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Play along with our guests, Motley Fool Chief Investment Officer Andy Cross and Motley Fool Senior Analyst Matt Argersinger. The Motley Fool has positions in and recommends Alphabet, Apple, Block, CrowdStrike, Etsy, J. M. Smucker, Match Group, Meta Platforms, PayPal, Stem, Ulta Beauty, Union Pacific, Williams-Sonoma, Zscaler, and nCino. The Motley Fool recommends Carter's, HCA Healthcare, and LKQ and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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David Gardner: Somebody who knows this because, I'm not going to say inside and out, Andy, but Andy Cross, what is the market cap range you're going to specify for Ulta Beauty? David Gardner: Sixty billion dollars to $80 billion, Andy, is Matt's specified market cap range. David Gardner: Well, thank you again to Andy and to Matt and to you for suffering Fools gladly over this Market Cap Game Show to help close out the year of 2022.
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3, Andy 2, Matt 0. It's now Andy 3, Matt 2. Andy 4, Matt 2.
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2023-01-07 00:00:00 UTC
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You're Thinking About Going to the Gym, but Are You Thinking About Investing in It?
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AAPL
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https://www.nasdaq.com/articles/youre-thinking-about-going-to-the-gym-but-are-you-thinking-about-investing-in-it
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
The relative strength of Planet Fitness.
How "exercise at home" has been around for decades.
Amazon testing flying drone deliveries in California and Texas.
Plus, Motley Fool analyst Dylan Lewis and senior analyst Asit Sharma discuss what growth stock investors should be considering this year, as well as one business in particular with tailwinds (despite a tough environment).
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 Planet Fitness
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 Planet Fitness 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 December 1, 2022
This video was recorded on Jan. 3, 2022.
Chris Hill: Flying delivery drones are finally here. Yes, really. Motley Fool Money starts now. I'm Chris Hill. Joining me today, Motley Fool senior analyst Jason Moser. Happy New Year.
Jason Moser: Happy New Year to you.
Chris Hill: Let's start the first trading day of 2023 by talking about something that so many people focus on in early January, and that is physical fitness.
Jason Moser: I thought you were going to say taxes or something like that. Just kidding.
Chris Hill: No. I don't want to start the year on a downer.
Jason Moser: Nobody does.
Chris Hill: Although physical fitness isn't necessarily all that fun anyway. You know what? People should just stop listening now. No, I did want to get your thoughts on this because Chris Rondeau, who's the CEO of Planet Fitness, and he's been the CEO for 10 years. He was on CNBC this morning. Like any responsible CEO, he was talking his own book. He was talking about the strength of the Planet Fitness business and when he got a question about Peloton and at-home fitness, I thought he handled it well because he said, look, there's always been a push for at-home fitness, even invoking Richard Simmons and Jane Fonda workout videos, something that younger listeners might be scratching their head at, but older people like you and me nod along and say, I remember that.
But it prompted me to look back at the business of Planet Fitness pre-pandemic, and I guess my question for you is, is this a business that you think is worth a look? Again, there's always enthusiasm for physical fitness at the start of the year. If you can tell me that they're going to retain a high percentage of the new customers they get, then I think I'm more interested, but what do you see when you look at the books of Planet Fitness?
Jason Moser: I think first I probably would have said just no, full stop. This is not a business I'm really interested in and just moving forward. I'm not anti-fitness, don't get me wrong. To your point, it is one where it feels like fitness gets a lot of hype. At the beginning of the year, people are making New Year's resolutions and then it fades and then you hit the reset button and you go back to square one the following year. I think in the case of Planet Fitness, though, it is interesting, I think the story. I think that there's an opportunity there. They quote in their research there are 80% of consumers without a gym membership today and obviously that's a lot of people. One of the things I think we learned through the past couple of years, it's a lesson probably some of us knew, some of us learned, and for some of us, it's been reiterated, it's to be careful investing with that absolute mindset.
What I mean by that is it's saying something like at-home fitness will render gyms obsolete. I think that was a very easy thing to say over the past couple of years but when you take a step back and actually think about it a little bit more deeply, realize that that's a flawed statement. That's not really something that's going to play out. I think we've seen that through the numbers that Peloton continues to record and the, I would call it less-than-enthusiastic rollout of Apple's fitness products. I'm sure there are plenty of Apple diehards out there that use it, but it's certainly not making headlines. Over the past couple of years, at-home fitness made a lot of sense, but you made a very good point there early on and I'm glad that he mentioned it too in that interview.
He's like, you go back to the days when we were kids, we remember the Richard Simmons, Jane Fonda, at-home fitness's always existed in some shape or form. That's not really new. I think what's new is just what technology can do to enhance it and obviously the equipment side of things that makes it a little bit more compelling in certain cases. I was thinking about this from the perspective of some LinkedIn data that we used to tout. Remember when LinkedIn was a publicly traded company and you have LinkedIn and [Meta's] Facebook. It was the early days of social media and we had the social network and the professional network and LinkedIn always touted that data that people wanted to maintain separate identities.
They wanted their professional lives to be separate from their personal lives and that's why LinkedIn didn't feel as threatened by Facebook at the time. I think that made sense, and I think that's held up rather well. I think it extends further out, too. Over the past couple of years, we've seen the benefits of being able to live a hybrid lifestyle and get things done when we needed to get them as opposed to having this siloed existence of work, home, and wherever else you're going to go throughout your days, and your weekends and whatnot. We're seeing this play out of Planet Fitness's numbers. People want to go to the gym. Maybe not everybody, but people want to go to the gym.
Chris Hill: I think that Rondeau and his team are smart by really pushing moderation. One of the things he talked about was, we don't want people joining a Planet Fitness gym and coming seven days a week. That's a recipe for burnout. We want people coming two, three times a week, get a good workout, and that's really the pathway to a longer relationship which is, look, there's so many businesses and Planet Fitness is one of them. Part of what they're dealing with is customer churn. If you're Rondeau, you're looking to get new customers in and keep them for as long as possible.
Jason Moser: I think that's always going to be a challenge for a company like that, for a concept like Planet Fitness. Churn, I think is always just going to be part of the beast there, unfortunately, but when you look at the actual numbers of this business, I was actually pretty impressed. Just looking at it from a numbers perspective, for example, look at their recent 10-K, and you go back to the end of 2021, they recorded 15.2 million members as of the end of 2021 and that compared to 10.6 million at the end of 2017. Now, if you look at the end of this third quarter that they just recently reported, they now stand at 16.6 million members. That membership is growing. When you look at the revenue numbers that they're recording, they fell off a cliff in 2020 for obvious reasons. They recorded $363 million in revenue.
But then it started coming back around 2021, $534 million, trailing 12 months, $782 million in revenue. This is a company that continues to grow. Going back to that 80% number that I quoted earlier, you've got an opportunity there, 80% of consumers without a gym membership. Now, think about this from the perspective of just economics. I mean, at-home fitness is what you make it. But a lot of what it has been made out to be over the past couple of years is buy this killer piece of equipment, subscribe to our service, and you're set for life. Well, I don't think that's going to work because I think people are finding more and more, they actually do want to get out. I think a lot of people are finding they want to maintain separate professional lives, separate personal lives, and separate fitness lives perhaps as well.
But I think just from the perspective of economics, you can right now join a Planet Fitness for one dollar now and $10 a month. Think about the risk that entails versus buying some thousand-plus-dollar piece of equipment. It oftentimes it's far more than that, even refurbished stuff. The economics just make sense for the gym perspective versus the at-home fitness, and so then the consumer has to weigh. Is it the convenience that I want, am I going to just commit myself to this one piece of equipment, or would I rather save a lot of money and have to maybe suck up driving to the gym a couple of times a week, but I'm going to have this whole wide world of equipment services and whatnot that I can benefit from. To me, it's not to say that Planet Fitness is just a no-brainer winner, but it certainly presents a very compelling value proposition for folks who are looking to bring more fitness into their lives.
Chris Hill: Let's move on to a future that's been delayed a couple of years, but it appears to finally be here and I'm referring to the future of flying drone delivery. Amazon is now delivering small packages by flying drones in California and Texas. This is a part of the business referred to as Amazon Prime Air. This is something that I think it was 2016, 2017 that CEO Jeff Bezos was on 60 Minutes touting this. They got the clearance from the FAA in 2020 but now they're testing it in these rural areas of California and Texas. I don't know about you but I'm really curious to see where this goes. Because I can see this not having a huge material effect on the company's bottom line anytime soon. I can however, see depending on how the next 12 months goes, this could be a nice little ripple effect in terms of cost controls.
Jason Moser: Well, yeah, you said I think the key words anytime soon. I don't think this is something that's going to just immediately boom, just change the outlook for a company like Amazon, particularly when you consider how big it is now. But yeah, to your point, it just went from like a seed of an idea in an interview 10 years ago almost to something that's actually now starting to bear fruit. As often as is often the case with Jeff Bezos, it just takes looking at it from a very long-term perspective. That's his forte, is long-term thinking and this is no different. For me, I'm excited as a consumer because I think it really does open up a world of possibilities. We are living in an on-demand world and delivery is just such a key part of that. We're seeing FedEx and UPS deal with those challenges.
We're seeing Amazon jumping there to try to capitalize on the opportunity and soak up some of that excess demand as well. I love the fact that this is making progress and I think it has a lot of potential. It makes sense that they're starting small in areas where it would be relatively easy to manage. Because while they say the drones are autonomous. They're managed by humans, people are overseeing these deliveries and that makes all the sense in the world. There is going to be a point where you wonder will the AI or the machine learning get good enough to where they can scale this because that's ultimately the goal. They've got to figure out how to scale this. You can't have 50,000 people monitoring these deliveries 24/7 which is not cost effective. There are dangers involved. I was reading about one incident here. There was a test site in Oregon, the drone fell from the air, 150-plus feet out of the air and started a brush fire that went across 25 acres.
Chris Hill: That's a problem.
Jason Moser: I mean like that didn't go well. You're going to have to contend with all sorts issues, whether it's other drones, power lines, whatever. But again, we were talking about them, and many people were looking at this 10 years ago thinking there was absolutely no way this is going to work. It's just no. No, it can't happen. We're seeing that it can happen. And I mean, he's getting the green light from the regulators to at least try to build this out to some capacity, and maybe it's something that serves more underserved areas than everywhere.
But ultimately, I think this is just another example of Amazon's philosophy of just taking that uber-long-term view, trying things, knowing that not everything is going to work, but you take lessons away. Again, this is one of those things that really just exists right in their wheelhouse so I suspect it's something they'll continue to work very diligently on and I would imagine that we will see this continue to roll out in the coming years. I think consumers, you need to be excited about that and certainly as an Amazon shareholder, you should be excited about as well.
Chris Hill: One more thing to keep our eyes on Jason Moser. Thanks for being here.
Jason Moser: Thank you.
Chris Hill: Over the next three days, we're going to be taking a closer look at different categories of stocks and what you might want to think about in year ahead if you're considering making an investment. Today, we're starting with growth stocks. Dylan Lewis and Asit Sharma discussing new questions they're asking about growth stocks, and one business that still has tailwinds in a tough environment.
Dylan Lewis: I think when you look back at 2022, there are a lot of takeaways. In general, it's been really tough year for the market. I think there are perhaps more lessons in the growth stock category than almost anywhere else. When you look back over the past year, what do you think of? What are your meditations on the growth area?
Asit Sharma: Yeah, Dylan, so many big-picture things changed that little pieces of investment theses we were making on growth stocks. Those also have changed as well. I think of this as similar to basketball. You see in basketball you've got the three-point shot. You've also got free throws which are worth one point. If the team is really great shooting from the outside, you don't have to worry how good they are at the line when they're making those free throws for one point, but take that away. Suddenly the little things matter more and with the change that we've had in interest rates with inflation being so high. This has an effect on the way investors value growth stocks and there are certain things that you've got to pay a little bit more attention to that play out in an investment thesis.
Dylan Lewis: I think that there are probably a lot of listeners that are in a pretty similar position to me Asit where I started investing in 2014. So much of the macro environment that I grew into and really learned how to invest in was one of money being relatively easily available, of companies being rewarded for growing their addressable market and to some extent, figuring out the bottom line later, what would you give as advice for this new chapter for a lot of people that maybe haven't lived through some of these periods before?
Asit Sharma: Sure Dylan, and same with me. I've been investing for quite a long time, but periods like this has low you in some ways, so you forget the lessons that you know are there, you have to pay attention to. Let's talk through a few of them. One is something you just touched on, which is grabbing market share when interest rates are low and money is flowing, so money is flowing in the capital markets, investors are gladly putting money into growth stocks. People really don't care at what cost a company grabs its market share. The idea is at some point down the road, those cash flows are going to be really valuable if you were investing in a company that's got very persuasive products and services in the marketplace so when that picture changes, the present value of money decreases, interest rates go up, your dollars are worth less in the future.
You start to pay attention, how much is this company really spending to grab that market share? Is it running at a big loss? Because if money is worth less, those future dollars are going to be worth less to me, maybe I don't want to pay so much for that stock today. Another thing I think we should be more in tune with in the growth stock arena, and I'll say here, so many growth stocks are technology-oriented, if not tech stocks themselves, is what yield on your R&D spend, your research and development spend, are you getting? When times are flush, most investors just want to see that a company is spending more and more on research and development as it's increasing its sales.
But in a time like this, we have to see what are you getting for that spend? Are you turning out additional products and services at a regular cadence? Are you increasing your competitive edge? That's very important. Just a few more that I think will make sense to many investors, what is the clarity of future cash flows? In other words, I know this company is going to generate cash flows in the future and look how it's growing, it is conquering its market. But if I can't see the bottom-line return on those revenue dollars, then I should take a pause in an environment like this, I shouldn't just blindly invest in a company. I should be able to see that they're going to be able to scale with profit and generate lots of cash flow, generate profits according to generally accepted accounting principles or GAAP, and just a couple of other things.
The quality of the customer base becomes more important when money starts to curb a bit in terms of investment, you don't want to get as many as customers as possible. If you are in the growth stock arena, fewer hands with deeper pockets makes a lot of sense. You can grow a lot easier that way. Then finally, I'll say to me, something that's very important in an environment like this is to not simply be a challenger company, but to have a path where you can be a dominant top 1, 2, or 3 company in your particular niche or industry. Because when you have that, that points to the stability of those cash flows in the future, you've already achieved the status where you're now deflecting competition rather than being a scrappy upstart that is maybe generating losses now to get there. You tilt a little bit more to the companies that are more clearly becoming these dominant type of companies.
Dylan Lewis: Now Asit, I'm sure there are some listeners that are like me staring at their brokerage account, seeing that there are businesses that maybe a year ago they absolutely loved. Now, maybe they like or love a little bit less, are some of those growth names but maybe aren't profitable. At what point are you willing to accept a business not being profitable? Where does that spend go? You mentioned R&D before. How are you trying to assess a business that maybe doesn't have cash coming in in the way that investors are currently rewarding, but you're willing to accept it because it's checking other boxes.
Asit Sharma: I think for companies that are clearly obtained that market position and maybe have a reason to show big losses on their income statement, it can make sense, and here many of you will already see where I'm headed with this. We're thinking about stock-based compensation. If you know that a company is having a lot of it's SBC, in other words, offering a lot of stock-based compensation to software engineers, to very high-level salespeople, they're building out a direct sales force, for example, that can be acceptable. A company, which is throwing money at their whole equation and being indiscriminate with how they use that stock-based compensation can be a red flag, frankly, because it means that true operating cash flow is never going to be that strong, so it's, again, a question of quality.
That's a case where I think I can be a little more comfortable with a company that has losses today. When we think about the macro picture, which is certainly affecting all of this, there's something else that comes to mind and that is the fact that uncertainty is the defining feature of the macro picture right now. That means that you and I probably are being more careful with what we spend as we see the price of milk going up, but businesses are, too. They're pulling back on their spend. Where I see a company that has something businesses must purchase, digital transformation services, one that I'm particularly fond of, but cybersecurity is another. You can feel a little more comfortable if a company is reaching that dominant position but still generating losses because people have to have that product or service.
Dylan Lewis: Given everything that's happened over the last year or so, I think the Vanguard Growth Index is down 30-plus percent over the last year. By comparison, I think their value index is down about 5% over the last year. It would be easy, I think, for people to swear off growth names, especially because some of the individual stocks in that category are seeing much bigger declines from all-time highs. My confidence isn't shaken in the space. I feel like personally, I'm just refining the approach a little bit. Is that how you and the Stock Advisor team are tending to think about it?
Asit Sharma: For sure. At Stock Advisor, we have two recommendations every month, month in, month out. We're always looking for great businesses. We're looking to rerecommend some of our favorite names that have been beaten up. One of the reasons for this is that you dollar-cost average in a down market, into great companies. It's so hard to see the future. When you've gone through a year like 2022, your mind gets in the weeds, your soul gets in the weeds. You look at that brokerage account, it's all in red. But the ability for us to be able to see past that five years from today, 10 years from today.
If we could jump to those points today, we wish in hindsight that we had taken advantage of the opportunity to buy some of these businesses at a really great point to average out our cost basis, and that leads to those future returns. It's more about tweaking the approach being a little bit more rational. Looking at some of the things I talked about earlier. Still buying great businesses, being a steady buyer in the market is extremely important. It's not about shying away from growth stocks. One thing history shows is that growth stocks drag the market down, but they're also the most resilient on the way back up, and those are times where many investors wish they hadn't stopped buying those quality high-growth companies.
Dylan Lewis: If Asit's impassioned plea right there got you hooked and you are not swearing off growth stocks, don't worry, we have a growth stock idea for you and we're going to talk about a business that you feel like checks a lot of the boxes for a quality growth company, even in this tougher macro environment that we're in, and that's CrowdStrike. Why was this a business that you wanted to surface as a best-in-class growth company?
Asit Sharma: CrowdStrike, No. 1, Dylan, it plays in the cybersecurity arena. I've mentioned that when companies are pulling back on spend, it's a very strong idea to buy those companies that people can't ignore. You really can't ignore the need to have endpoint security within your organization, to protect your network. There's so many different facets to cybersecurity that you have to pay attention to as a business in this networked world. I think it's fun that CrowdStrike itself has a yield on its R&D, which is easy to see. The company has no less than seven different services within this Falcon platform, which is a crowdsourced platform that serves billions of data points every day, and everyone who is a member of CrowdStrike services, everyone who subscribes to their services gets the benefit of this data collection and identification of new threats.
We see that yield on the R&D spend. In addition, CrowdStrike's products are extremely sticky. If you look at their most recent quarterly report, Dylan, they say that subscription customers that have adopted five or more, or six or more, or even seven or more of their modules, equals 60%, 36%, and 21% of their customer base, respectively. As time goes on, they're selling within their platform without much efforts, every upsell you can do to a current customer, obviously is a more efficient spend versus going out and getting a new customer, and this goes back to those favorable unit economics I was talking about at the very beginning of our conversation, you want to grab market share at a reasonable cost. The other things that we like about it in Stock Advisor just the growth rate, the fact that this company is growing its revenue, it's gross profit at 50%-plus year-over-year cadence, it's obviously becoming dominant in its industry.
Lastly, I will say, what's so important in this day and age in this high-inflation, high-interest rate environment is that they've got extremely vigorous cash flow. They do have GAAP net losses. But when you look at actual free cash flow, you take away some of the non-cash expenses like that stock-based compensation, the cash flow yield on this company is really attractive. In this most recent quarter, their cash flow is extremely impressive. In this most recent quarter, the company generated 30% free cash flow yield in comparison to revenues. For every revenue dollar, 30% of that became free cash flow.
Dylan Lewis: To summarize Asit, strong relationship with their customers, decent cash flow and improving business economics, and they are at a crucial crossroads. For most businesses right now it's spend that will not be going away anytime soon.
Asit Sharma: Very well stated Dylan, I wish I could have said that so simpler.
Dylan Lewis: Well, I got to summarize it. I got the easier job here. CrowdStrike is not only a best-in-class growth company from the Stock Advisor team, it's also one of the businesses that Stock Advisor team put together as part of a report for 15 stocks to kick off 2023. That report and a member event that will be tomorrow hits growth, dividend, value, energy and multibagger categories of stocks. If you want more stock ideas and you're not a member, don't worry. We're going to be doing a stock idea every single day this week, checking different boxes. You'll be hearing about dividend and value opportunities later in the week. If you want the full rundown on companies from the Stock Advisor team, just become a Stock Advisor member. You can check things out. The member event will be available for replay. Asit, thank you so much for bringing this company to our listeners and thank you for your view.
Asit Sharma: Thanks a lot, Dylan. This was a great conversation.
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.
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. Asit Sharma has no position in any of the stocks mentioned. Chris Hill has positions in Amazon.com and Apple. Dylan Lewis has positions in Amazon.com and Apple. Jason Moser has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, CrowdStrike, FedEx, Meta Platforms, Peloton Interactive, Planet Fitness, and Uber Technologies. The Motley Fool recommends United Parcel Service and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So much of the macro environment that I grew into and really learned how to invest in was one of money being relatively easily available, of companies being rewarded for growing their addressable market and to some extent, figuring out the bottom line later, what would you give as advice for this new chapter for a lot of people that maybe haven't lived through some of these periods before? The idea is at some point down the road, those cash flows are going to be really valuable if you were investing in a company that's got very persuasive products and services in the marketplace so when that picture changes, the present value of money decreases, interest rates go up, your dollars are worth less in the future. One thing history shows is that growth stocks drag the market down, but they're also the most resilient on the way back up, and those are times where many investors wish they hadn't stopped buying those quality high-growth companies.
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Plus, Motley Fool analyst Dylan Lewis and senior analyst Asit Sharma discuss what growth stock investors should be considering this year, as well as one business in particular with tailwinds (despite a tough environment). I think a lot of people are finding they want to maintain separate professional lives, separate personal lives, and separate fitness lives perhaps as well. One is something you just touched on, which is grabbing market share when interest rates are low and money is flowing, so money is flowing in the capital markets, investors are gladly putting money into growth stocks.
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Another thing I think we should be more in tune with in the growth stock arena, and I'll say here, so many growth stocks are technology-oriented, if not tech stocks themselves, is what yield on your R&D spend, your research and development spend, are you getting? Dylan Lewis: If Asit's impassioned plea right there got you hooked and you are not swearing off growth stocks, don't worry, we have a growth stock idea for you and we're going to talk about a business that you feel like checks a lot of the boxes for a quality growth company, even in this tougher macro environment that we're in, and that's CrowdStrike. CrowdStrike is not only a best-in-class growth company from the Stock Advisor team, it's also one of the businesses that Stock Advisor team put together as part of a report for 15 stocks to kick off 2023.
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One of the things he talked about was, we don't want people joining a Planet Fitness gym and coming seven days a week. This has an effect on the way investors value growth stocks and there are certain things that you've got to pay a little bit more attention to that play out in an investment thesis. Dylan Lewis: If Asit's impassioned plea right there got you hooked and you are not swearing off growth stocks, don't worry, we have a growth stock idea for you and we're going to talk about a business that you feel like checks a lot of the boxes for a quality growth company, even in this tougher macro environment that we're in, and that's CrowdStrike.
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2023-01-07 00:00:00 UTC
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Everyone Is Talking About This Stock. Is It a Good Long-Term Option?
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AAPL
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https://www.nasdaq.com/articles/everyone-is-talking-about-this-stock.-is-it-a-good-long-term-option-6
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nan
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nan
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The streaming wars have never been more intense, characterized by endless viewing options on the market, all vying for consumer attention. One company in particular, Roku (NASDAQ: ROKU), might be an attractive investment because of its agnostic stance on its platform's content services. In other words, the thinking is that as more people cut the cable cord and move to streaming, Roku should benefit.
The business has been in the news lately, prompting investors to reassess whether this streaming stock makes for a good long-term option. Let's take a closer look at what's going on with Roku.
Recent developments
At the Consumer Electronics Show in Las Vegas this past week, Roku CEO Anthony Wood mentioned that the company ended 2022 with 70 million active accounts, up 16% from 60 million at the end of 2021. What's more, he pointed out that the total number of hours streamed on Roku's platform was a whopping 23.9 billion in the fourth quarter, compared to 19.5 billion hours in Q4 2021. These growth trends are a breath of fresh air in what is becoming a difficult macroeconomic environment.
In addition to these positive data points, perhaps the most shocking bit of news was Roku announcing it will launch its own set of branded TVs starting this spring. This follows news in late 2021 from e-commerce juggernaut Amazon that it would be doing the same, introducing its own smart TVs.
I'm surprised by this move from Roku. Selling televisions is a notoriously low-margin business. Prices tend to go down over time, and customers don't have much loyalty when it comes to specific brands. Additionally, Roku will now be competing directly with the third-party TV manufacturers that carry its pre-installed operating system.
However, I can understand what Wood and his team might have been thinking with this strategy. The goal is to raise the number of households Roku is in and continue growing active accounts and hours streamed to increase monetization. Time will tell what will happen.
What should investors do?
Roku operates a three-sided ecosystem that connects viewers, content companies like Netflix and Walt Disney, and advertisers. It sells hardware devices, like its well-known media sticks and upcoming TVs, while also entering into agreements to share advertising and subscription revenue. The business has posted stellar historical top-line gains.
However, profits have been elusive thus far as Roku has focused entirely on growth at the expense of the bottom line. This strategy was generously rewarded in a low-interest-rate environment before 2022, but the tides have shifted. Investors now crave net income and free cash flow, especially in a monetary-tightening environment like the one we're in currently.
Another factor negatively impacting the business is a softer ad market. Behemoths in the digital ad industry, Alphabet and Meta Platforms have both reported a slowdown in their businesses as companies look to significantly cut spending on marketing efforts. And because this is Roku's bread and butter, albeit on a TV, it's also feeling the pain.
Furthermore, Roku has some stiff competition. While it does brag about having the top market share in the U.S. when it comes to TV operating systems, Alphabet, Amazon, and Apple are all battling it out to control the living room. These tech giants have much deeper pockets and can survive for longer when compared to Roku and its quest for profitability.
Therefore, if you're a shareholder who believes that Roku will maintain its lead in the market, benefit from more consumers and viewing hours moving to streaming over time, and ultimately stop bleeding cash, then it makes sense to remain an owner of the stock. A compelling valuation at a price-to-sales ratio of 1.9, it's nearly the cheapest in its history. This also might be an important factor for you.
On the other hand, if you think 2022 is a clear sign of the beginning of the end for Roku -- a new reality where account growth will slow, net income will remain a pipe dream, and competition intensifies -- then this is a stock you should stay away from without any hesitation.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Neil Patel has positions in Alphabet and Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Roku, 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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Behemoths in the digital ad industry, Alphabet and Meta Platforms have both reported a slowdown in their businesses as companies look to significantly cut spending on marketing efforts. Therefore, if you're a shareholder who believes that Roku will maintain its lead in the market, benefit from more consumers and viewing hours moving to streaming over time, and ultimately stop bleeding cash, then it makes sense to remain an owner of the stock. On the other hand, if you think 2022 is a clear sign of the beginning of the end for Roku -- a new reality where account growth will slow, net income will remain a pipe dream, and competition intensifies -- then this is a stock you should stay away from without any hesitation.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Roku, 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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One company in particular, Roku (NASDAQ: ROKU), might be an attractive investment because of its agnostic stance on its platform's content services. Therefore, if you're a shareholder who believes that Roku will maintain its lead in the market, benefit from more consumers and viewing hours moving to streaming over time, and ultimately stop bleeding cash, then it makes sense to remain an owner of the stock. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Roku, and Walt Disney.
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Therefore, if you're a shareholder who believes that Roku will maintain its lead in the market, benefit from more consumers and viewing hours moving to streaming over time, and ultimately stop bleeding cash, then it makes sense to remain an owner of the stock. On the other hand, if you think 2022 is a clear sign of the beginning of the end for Roku -- a new reality where account growth will slow, net income will remain a pipe dream, and competition intensifies -- then this is a stock you should stay away from without any hesitation. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Roku, and Walt Disney.
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17696.0
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2023-01-07 00:00:00 UTC
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3 Compelling Reasons Why Amazon Stock Is a Smarter Pick Than Apple in 2023
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AAPL
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https://www.nasdaq.com/articles/3-compelling-reasons-why-amazon-stock-is-a-smarter-pick-than-apple-in-2023
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nan
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nan
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Warren Buffett and I don't have many things in common. He's much older than I am. He's just a wee bit wealthier, too. However, we do like some of the same stocks.
Apple (NASDAQ: AAPL) ranks by far as the largest stock in Buffett's Berkshire Hathaway portfolio. It's also easily the biggest individual stock in my personal portfolio.
I've owned Apple for years. The stock has delivered tremendous returns for me. I expect that it will continue to be a long-term winner. However, if I had to choose between Apple and Amazon (NASDAQ: AMZN) right now, the nod would definitely go to Amazon. Here are three compelling reasons why Amazon stock is a smarter pick than Apple in 2023.
1. Valuation
Both Apple and Amazon have seen their share prices fall significantly. However, Amazon stock has been hit much harder. While Apple's shares are down 30% over the last 12 months, Amazon has declined nearly 50%. This steep sell-off has given Amazon its most attractive valuation in years.
Sure, Apple's forward price-to-earnings (P/E) ratio of 21 is a lot lower than Amazon's multiple of 41. However, anyone who has followed Amazon for a while knows that the company's earnings can be deceiving because it invests so heavily in growth.
Amazon's price-to-sales (P/S) multiple is the lowest it's been since 2015. The stock also trades at a historically low valuation based on projected cash flow. Meanwhile, Apple's P/S multiple has fallen but remains above the level from early 2020.
2. Likelihood of a new bull market
The S&P 500 has fallen by 19.4% or more seven times in its entire history -- including the 2022 decline. The index has soared back by 20% or more in the year following such a steep decline since 1937. If a new bull market is indeed likely sometime this year, I think that Amazon is in a position to deliver a stronger rebound than Apple.
My reasoning is based in large part on Amazon's bigger drop over the past 12 months. Because Amazon has fallen harder than Apple has, it has more room to run when conditions improve.
More importantly, though, Amazon's performance throughout most of 2022 was more heavily influenced by macroeconomic factors than Apple's was. High inflation and fuel prices directly impacted Amazon's growth last year. Consumers cut back on spending. Organizations using Amazon Web Services (AWS) sought to lower their spending because of economic uncertainty.
A new bull market would signify that investors expect better days ahead. That should work to Amazon's benefit even more than it will for Apple.
3. Near-term growth opportunities
I definitely believe that Apple has solid long-term growth opportunities. The increased adoption of 5G and new augmented reality capabilities should boost iPhone ecosystem sales. However, I think that Amazon has more tangible near-term growth opportunities.
AWS is Amazon's most important growth engine. If a recession is avoided or we only have a brief, mild one, customers could quickly resume their migration of apps and data to the cloud.
Two pending acquisitions represent especially important growth markets for Amazon. The buyout of One Medical for $3.9 billion is a significant step for Amazon in going after the huge healthcare opportunity. Amazon's deal to purchase iRobot for $1.7 billion expands the company's presence in the home device market.
Both Amazon and Apple would likely benefit from increased advertising spending if a major economic downturn is avoided. But Amazon should enjoy an even greater tailwind than Apple because it operates the third-largest digital advertising platform. Amazon's ad business has lots of room for additional growth.
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 December 1, 2022
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and iRobot. 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 (NASDAQ: AAPL) ranks by far as the largest stock in Buffett's Berkshire Hathaway portfolio. Amazon's deal to purchase iRobot for $1.7 billion expands the company's presence in the home device market. 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.
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Apple (NASDAQ: AAPL) ranks by far as the largest stock in Buffett's Berkshire Hathaway portfolio. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and iRobot. 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.
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Apple (NASDAQ: AAPL) ranks by far as the largest stock in Buffett's Berkshire Hathaway portfolio. However, if I had to choose between Apple and Amazon (NASDAQ: AMZN) right now, the nod would definitely go to Amazon. If a new bull market is indeed likely sometime this year, I think that Amazon is in a position to deliver a stronger rebound than Apple.
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Apple (NASDAQ: AAPL) ranks by far as the largest stock in Buffett's Berkshire Hathaway portfolio. However, we do like some of the same stocks. Both Amazon and Apple would likely benefit from increased advertising spending if a major economic downturn is avoided.
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17697.0
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2023-01-07 00:00:00 UTC
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1 Unstoppable Vanguard ETF I'm Stocking Up on in 2023
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AAPL
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https://www.nasdaq.com/articles/1-unstoppable-vanguard-etf-im-stocking-up-on-in-2023
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nan
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nan
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The new year is a fantastic time to re-evaluate your investing strategy. With the market in a slump, now could be a smart time to buy.
It's more important than ever, however, to choose your investments wisely. If a recession is on the horizon, some stocks may not be able to recover. But with the right investments, you can invest now at a steep discount and potentially see significant returns when the market rebounds.
While everyone's investing strategy will differ, there's one ETF I'm stocking up on in 2023: the Vanguard Growth ETF (NYSEMKT: VUG).
How a growth ETF can supercharge your savings
A growth ETF is a fund that only includes stocks with the potential for above-average growth. The Vanguard Growth ETF aims to track the performance of the CRSP U.S. Large Cap Growth Index and includes 247 stocks from a variety of industries.
Nearly half of the fund is comprised of stocks from the tech sector, and the largest holdings include Apple, Microsoft, Amazon, and Alphabet. By investing in this ETF, you'LL own a stake in all of these companies.
The biggest advantage of growth ETFs is that they're often able to beat the market. In fact, since the Vanguard Growth ETF was established in 2004, it's seen returns of more than 313% -- compared to the S&P 500's roughly 233% return in that time frame.
VUG data by YCharts.
In other words, if you had invested $10,000 in the Vanguard Growth ETF in 2004, you'd have more than $41,000 today, versus $33,000 with the S&P 500.
Why now could be a smart time to buy
When the market is in a slump, it can be a daunting time to invest. But right now can actually be a fantastic buying opportunity, as prices are lower than they've been in a long time.
The Vanguard Growth ETF is currently priced at around $209 per share, down from roughly $308 per share one year ago. By investing now, you're buying the same ETF, but at a nearly $100 per-share discount.
Also, when you buy during the downturns, you're primed to take advantage of the market's inevitable rebound. For example, say you had invested in this ETF in early 2009, at its lowest point during the Great Recession. Over the following year alone, you would have seen returns of nearly 70%. Within two years, you would have nearly doubled your money.
VUG data by YCharts.
Of course, nobody can say for certain how this bear market will pan out, and there are no guarantees that this ETF's future performance will be similar to its past. But by investing during the low points, it's easier to take advantage of the market's upswings.
Is this the right ETF for you?
Before you buy, there are a few downsides to consider. For one, this fund can be subject to intense short-term volatility.
All stocks will experience short-term slumps. This ETF, however, is heavily weighted toward tech stocks (which are famous for their ups and downs), so you'll likely see more significant fluctuations.
That's not necessarily a bad thing, as investing is a long-term game. If you're willing to hold this investment for several years (if not decades), the short-term volatility likely won't matter as much. But if the roller coaster of ups and downs would cause you to lose sleep, this ETF may not be the best fit.
Also, it's wise to make sure the rest of your portfolio is well-diversified if you choose to invest in this ETF. Growth ETFs often earn higher returns than their more established counterparts, but they're also riskier. With a balanced portfolio, you can take advantage of these above-average returns, while still limiting your risk.
The Vanguard Growth ETF can be a fantastic addition to your portfolio, and with enough time, it could potentially help you make a lot of money. By understanding the risks and rewards, you can decide whether it's a good fit for you.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF 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 December 1, 2022
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. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nearly half of the fund is comprised of stocks from the tech sector, and the largest holdings include Apple, Microsoft, Amazon, and Alphabet. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard Growth ETF.
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Nearly half of the fund is comprised of stocks from the tech sector, and the largest holdings include Apple, Microsoft, Amazon, and Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard Growth ETF. 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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While everyone's investing strategy will differ, there's one ETF I'm stocking up on in 2023: the Vanguard Growth ETF (NYSEMKT: VUG). How a growth ETF can supercharge your savings A growth ETF is a fund that only includes stocks with the potential for above-average growth. 10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF When our award-winning analyst team has a stock tip, it can pay to listen.
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How a growth ETF can supercharge your savings A growth ETF is a fund that only includes stocks with the potential for above-average growth. Is this the right ETF for you? That's right -- they think these 10 stocks are even better buys.
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17698.0
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2023-01-06 00:00:00 UTC
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Are Growth Stocks in for More Pain in 2023?
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AAPL
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https://www.nasdaq.com/articles/are-growth-stocks-in-for-more-pain-in-2023
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nan
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nan
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By just about every metric, 2022 was a terrible year for growth stocks but a solid one for value stocks.
The Dow Jones Industrial Average outperformed the Nasdaq Composite by the largest margin in over 20 years. Ark Innovation ETF, Cathie Wood's exchange-traded fund, lost 67% of its value in 2022, while Warren Buffett's Berkshire Hathaway gained 4%. And the Vanguard Growth ETF lost 34% of its value last year, while the Vanguard Value ETF fell just 5%.
One of the million-dollar questions of 2023 is whether value stocks can continue outperforming growth stocks. But instead of speculating on short-term trends, there are better questions to ask: What role do you want growth stocks to play in your portfolio? Are they right for you in the first place? If so, what kind of growth stocks give you the best chance to reach your financial goals while aligning your investments with your personal risk tolerance?
We'll discuss these questions and more in this article.
Image source: Getty Images.
Lessons from 2022
2022 was the worst year for the stock market since 2008 and the worst year in many investors' lifetimes. Yet bear markets can help lead you toward lasting wealth as long as you're invested in quality businesses, hold through volatile periods, and continue to save regularly.
Last year illustrated the dangers of gambling instead of investing. Many unprofitable growth stocks and meme stocks saw their valuations balloon to nosebleed levels that could no longer be supported by their fundamentals. Once the dust settled, it was clear that many of these companies simply weren't worth that much, at least not today.
Like the dot-com bust, some notable companies will emerge from the ashes and eclipse their prior all-time highs over time, but it could be many years before those stocks reverse the losses from this bear market. It took Microsoft (NASDAQ: MSFT) over 17 years to finally surpass its 1999 all-time high. And it did so by unlocking new revenue streams, reinventing its business, and becoming an industry leader in several key categories.
Investors looking at growth stocks that are down 70%, 80%, or 90% from their all-time highs shouldn't buy them solely because they are down. Rather, investing only in companies you understand and believe can foster long-term value is important. Just because a company is exciting and growing doesn't mean the stock is a good buy. For a growth stock to continue outperforming the market over time, a rising stock price has to be supported by the fundamentals.
Growth stocks at a good value
When a company's fundamentals keep pace or even exceed its stock price, a growth stock can start to look much more like a value stock. That's exactly what's happening to Microsoft, Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now.
All three stocks have beaten the market over the last five to 10 years. But their recent sell-offs, paired with incredible revenue and profit growth, have compressed the price-to-earnings (P/E) and price-to-free-cash-flow (P/FCF) multiples.
Data by YCharts.
The P/E ratio of the S&P 500 is 19.9 as of this writing, meaning Alphabet now trades at a discount to the market. Apple sports a similar multiple, while Microsoft trades at a slight premium.
Meanwhile, Amazon (NASDAQ: AMZN) may not have consistent profitability or FCF, but the stock is now trading around a 10-year low on a price-to-sales (P/S) and price-to-operating-cash-flow (P/OCF) basis.
I mention these four companies, because they are the largest components of the Nasdaq Composite and tend to be the largest holdings in growth ETFs like the aforementioned Vanguard Growth ETF (the largest growth ETF by net assets). Yet these growth stocks differ wildly from smaller-cap, unprofitable growth names valued at what they could become instead of what they are today.
Foundational growth stocks that are built to last
For most investors, the attractive valuations, wide moats, rock-solid fundamentals, and growth prospects of mega-cap names like Microsoft, Apple, Alphabet, and Amazon stand out right now as compelling risk/reward opportunities that also help you sleep well at night. After all, even Berkshire Hathaway, which normally doesn't invest in growth stocks, recognized the attractive valuation of Apple, and it's now the conglomerate's largest holding today.
For risk-tolerant investors with a long-term horizon, now also could be an excellent time to selectively choose smaller growth stocks, using money you can afford to lose and don't need anytime soon.
It's no secret the biggest gains in the stock market are made by investing in a company early and watching its value compound over time. But to do that, you want to take the pressure off by not making any single position too large and by maintaining a diversified portfolio that avoids the all-or-nothing nature of being invested too heavily in a single stock or sector.
Growth stocks could very well be in for more pain in 2023. And many growth stocks could fail, or at the very least, fail to surpass their highs from 2020 and 2021. Instead of worrying about whether your favorite growth stocks will beat the market this year, a more rewarding endeavor is to follow the business, make sure the investment thesis stays on track, and properly weigh your holdings in a way that suits your risk tolerance.
10 stocks we like better than Microsoft
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 Microsoft 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 December 1, 2022
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. Daniel Foelber has positions in Alphabet and Amazon.com and has the following options: long January 2025 $170 calls on Amazon.com, long January 2025 $90 calls on Amazon.com, short February 2023 $100 calls on Amazon.com, and short January 2025 $175 calls on Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Vanguard Index Funds - Vanguard Growth ETF, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's exactly what's happening to Microsoft, Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now. Like the dot-com bust, some notable companies will emerge from the ashes and eclipse their prior all-time highs over time, but it could be many years before those stocks reverse the losses from this bear market. For risk-tolerant investors with a long-term horizon, now also could be an excellent time to selectively choose smaller growth stocks, using money you can afford to lose and don't need anytime soon.
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That's exactly what's happening to Microsoft, Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now. Daniel Foelber has positions in Alphabet and Amazon.com and has the following options: long January 2025 $170 calls on Amazon.com, long January 2025 $90 calls on Amazon.com, short February 2023 $100 calls on Amazon.com, and short January 2025 $175 calls on Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Vanguard Index Funds - Vanguard Growth ETF, and Vanguard Index Funds - Vanguard Value ETF.
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That's exactly what's happening to Microsoft, Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now. For a growth stock to continue outperforming the market over time, a rising stock price has to be supported by the fundamentals. Growth stocks at a good value When a company's fundamentals keep pace or even exceed its stock price, a growth stock can start to look much more like a value stock.
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That's exactly what's happening to Microsoft, Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now. Investors looking at growth stocks that are down 70%, 80%, or 90% from their all-time highs shouldn't buy them solely because they are down. All three stocks have beaten the market over the last five to 10 years.
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17699.0
|
2023-01-06 00:00:00 UTC
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Why Apple Stock Was the Apple of Investors' Eyes Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-was-the-apple-of-investors-eyes-today
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nan
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nan
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What happened
Buoyed by good U.S. jobs data on Friday, investors were in a bullish mood and willing to consider buying beaten-down tech stocks. This helped push the price of Apple (NASDAQ: AAPL) shares up by 4%, as did a pair of fresh analyst takes on the company.
So what
Before market open Friday morning, Morgan Stanley prognosticator Erik Woodring reiterated his overweight (buy) recommendation on Apple. Actually, buy might be understating the case, as Woodring is maintaining his $175 per share price target, implying potential upside of 35%.
The analyst feels that the $115 to $120 price the stock has traded at recently is a "near-term floor," and is worth considerably more. He added that his research does not indicate weakening demand for Apple products, as many fear given the macroeconomic concerns that have clouded the market lately.
Also on Friday, Woodring's peer Ming-Chi Kuo of TF International weighed in on Apple. Kuo revealed in a post on Medium, citing unnamed supply chain sources, that the tech giant has canceled plans to produce and sell the 2024 iPhone SE 4 model. He said that this was due to "concerns that the performance of the in-house baseband chip may not be up to par" with the Qualcomm chips used in the standard iPhone models.
Now what
The SE line is Apple's budget iPhone model, so investors might be cheered that the company's famously high margins won't sag a bit from those lower-priced products. Meanwhile, many bargain hunters in the market are increasingly considering roughed-up tech stocks like this one to be excellent deals; investors will see if that momentum holds up in the coming days.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This helped push the price of Apple (NASDAQ: AAPL) shares up by 4%, as did a pair of fresh analyst takes on the company. So what Before market open Friday morning, Morgan Stanley prognosticator Erik Woodring reiterated his overweight (buy) recommendation on Apple. Kuo revealed in a post on Medium, citing unnamed supply chain sources, that the tech giant has canceled plans to produce and sell the 2024 iPhone SE 4 model.
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This helped push the price of Apple (NASDAQ: AAPL) shares up by 4%, as did a pair of fresh analyst takes on the company. 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 and Qualcomm.
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This helped push the price of Apple (NASDAQ: AAPL) shares up by 4%, as did a pair of fresh analyst takes on the company. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Volkman has positions in Apple.
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This helped push the price of Apple (NASDAQ: AAPL) shares up by 4%, as did a pair of fresh analyst takes on the company. Now what The SE line is Apple's budget iPhone model, so investors might be cheered that the company's famously high margins won't sag a bit from those lower-priced products. That's right -- they think these 10 stocks are even better buys.
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